Document:

exv4w2

Exhibit 4.2

EXECUTION COPY

     AMENDMENT AND RESTATEMENT AGREEMENT dated as of July 16, 2009
(this “Agreement”), to the Credit Agreement dated as of
June 9, 2008 (as modified and supplemented prior to the date hereof, the
“Original Credit Agreement”), among PLY GEM HOLDINGS, INC., a
Delaware corporation (“Holdings”), PLY GEM INDUSTRIES, INC., a
Delaware corporation (the “Specified U.S. Borrower”), CWD WINDOWS
AND DOORS, INC., a Canadian corporation (the “Canadian Borrower”
and, together with the Specified U.S. Borrower, the “Borrowers”),
the Subsidiaries of the Specified U.S. Borrower from time to time party
thereto as borrowers and guarantors (the “Subsidiary Guarantors”
and, together with Holdings and the Borrowers, the “Reaffirming
Parties”), each lender from time to time party thereto (the
“Lenders”), CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as
Administrative Agent (in such capacity, the “Administrative
Agent”), U.S. Swing Line Lender and U.S. L/C Issuer, GENERAL ELECTRIC
CAPITAL CORPORATION, as Collateral Agent (in such capacity, the
“Collateral Agent”), CREDIT SUISSE, TORONTO BRANCH (“CS
Toronto”), as Canadian Swing Line Lender and Canadian L/C Issuer, and
the other agents party thereto.

          A. Pursuant to the Original Credit Agreement, the Lenders have extended, and have agreed to
extend, credit to the Borrowers.

          B. The Borrowers have requested that the Original Credit Agreement be amended and restated in
the form of the Amended and Restated Credit Agreement attached hereto as Exhibit A (the
“Amended and Restated Credit Agreement”) to, among other things, modify the terms and
conditions of the Original Credit Agreement to allow the U.S. Borrowers to increase the Revolving
Credit Commitments.

          C. Each of the Reaffirming Parties is party to one or more of the Guaranties, the Collateral
Documents and the Intercreditor Agreement (collectively, the “Security Documents”),
pursuant to which, among other things, the Reaffirming Parties Guaranteed the Obligations (or, in
the case of the Canadian Loan Parties, the Canadian Obligations) of the Borrowers under the
Original Credit Agreement and provided security therefor.

          D. Each Reaffirming Party is willing to reaffirm its obligations under the Security
Documents.

          E. For purposes of this Agreement, the following capitalized terms used but not defined in
this Agreement shall have the meanings given them in the Original Credit Agreement: Collateral
Documents, Guaranties, Intercreditor Agreement, Loan Documents and Supermajority Lenders. All
other capitalized terms used but not defined herein shall have the meanings given them in the
Amended and Restated Credit Agreement.

 

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          Accordingly, the parties hereto hereby agree as follows:

          SECTION 1. Amendment and Restatement of the Original Credit Agreement. The Borrowers,
Holdings, the Administrative Agent, the Collateral Agent, CS Toronto and the Supermajority Lenders
agree that the Original Credit Agreement shall be amended and restated on the Restatement Effective
Date (as hereinafter defined) such that, on the Restatement Effective Date, the terms set forth in
Exhibit A hereto shall replace and supersede the terms of the Original Credit Agreement with
respect to the Loans and Letters of Credit outstanding under the Original Credit Agreement. As
used in the Amended and Restated Credit Agreement, the terms “Agreement”, “this Agreement”,
“herein”, “hereinafter”, “hereto”, “hereof” and words of similar import shall, unless the context
otherwise requires, from and after the Restatement Effective Date, mean the Amended and Restated
Credit Agreement. As used in any other Loan Document, from and after the Restatement Effective
Date, all references to the Credit Agreement in such Loan Documents shall, unless the context
otherwise requires, mean the Amended and Restated Credit Agreement.

          SECTION 2. Reaffirmation. Each Reaffirming Party, by its signature below, hereby (a) agrees
that, notwithstanding the effectiveness of this Agreement or the Amended and Restated Credit
Agreement, the Security Documents continue to be in full force and effect, (b) affirms and confirms
its Guarantee of the Obligations (or, in the case of the Canadian Loan Parties, the Canadian
Obligations) and the pledge of and/or grant of a security interest in its assets as Collateral to
secure such Obligations, all as provided in the Security Documents as originally executed, and
acknowledges and agrees that such Guarantee, pledge and/or grant continue in full force and effect
in respect of, and to secure, such Obligations under the Amended and Restated Credit Agreement and
the other Loan Documents and (c) affirms and confirms that all the representations and warranties
made by or relating to it contained in the Amended and Restated Credit Agreement and the other Loan
Documents are true and correct in all material respects (or in all respects in the case of any
representations and warranties qualified by materiality) on and as of the Restatement Effective
Date, except to the extent such representations and warranties expressly relate to an earlier date,
in which case they were true and correct in all material respects (or in all respects in the case
of any representations and warranties qualified by materiality) as of such earlier date.

          SECTION 3. Representations and Warranties. To induce the other parties hereto to enter into
this Agreement, each of Holdings and each Borrower represents and warrants to each of the other
parties hereto, that, at the time of and immediately after giving effect to this Agreement:

          (a) The representations and warranties contained in Article V of the Amended and
Restated Credit Agreement and in each other Loan Document are true and correct in all material
respects (or in all respects in the case of any representations and warranties qualified by
materiality) on and as of the Restatement Effective Date, except to the extent such representations
and warranties expressly relate to an earlier date, in which case they were true and correct in all
material respects (or in all respects in the

 

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case of any representations and warranties qualified by materiality) as of such earlier date;
and

          (b) No Event of Default or Default has occurred and is continuing.

          SECTION 4. Applicable Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED
BY THE LAWS OF THE STATE OF NEW YORK.

          SECTION 5. No Novation. Neither this Agreement nor the effectiveness of the Amended and
Restated Credit Agreement shall extinguish the Obligations for the payment of money outstanding
under the Original Credit Agreement or discharge or release the Lien or priority of any Loan
Document or any other security therefor or any guarantee thereof, and the liens and security
interests in favor of the Collateral Agent for the benefit of the Secured Parties securing payment
of the Obligations are in all respects continuing and in full force and effect with respect to all
Obligations. Nothing herein contained shall be construed as a substitution or novation, or a
payment and reborrowing, or a termination, of the Obligations outstanding under the Original Credit
Agreement or instruments guaranteeing or securing the same, which shall remain in full force and
effect, except as modified hereby or by instruments executed concurrently herewith. Nothing
expressed or implied in this Agreement, the Amended and Restated Credit Agreement or any other
document contemplated hereby or thereby shall be construed as a release or other discharge of the
Borrowers under the Original Credit Agreement or the Borrowers or any other Loan Party under any
Loan Document from any of its obligations and liabilities thereunder, and such obligations are in
all respects continuing with only the terms being modified as provided in this Agreement and in the
Amended and Restated Credit Agreement. The Original Credit Agreement and each of the other Loan
Documents shall remain in full force and effect, until and except as modified hereby. This
Agreement shall constitute a Loan Document for all purposes of the Original Credit Agreement and
the Amended and Restated Credit Agreement.

          SECTION 6. Notices. All notices hereunder shall be given in accordance with the provisions
of Section 10.02 of the Amended and Restated Credit Agreement.

          SECTION 7. Counterparts. This Agreement may be executed in counterparts (and by different
parties hereto on different counterparts), each of which shall constitute an original but all of
which when taken together shall constitute a single contract, and shall become effective as
provided in Section 9 hereof. Delivery of an executed signature page to this Agreement by
facsimile transmission shall be effective as delivery of a manually signed counterpart of this
Agreement.

          SECTION 8. Headings. Section headings used herein are for convenience of reference only, are
not part of this Agreement and are not to affect the construction of, or to be taken into
consideration in interpreting, this Agreement.

          SECTION 9. Effectiveness; Amendment. This Agreement and the Amended and Restated Credit
Agreement shall become effective as of the date (the

 

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“Restatement Effective Date”) on which (i) the Administrative Agent (or its counsel)
shall have received counterparts of this Agreement that, when taken together, bear the signatures
of (a) the Borrowers, (b) Holdings, (c) the Subsidiary Guarantors listed on Schedule I
attached hereto, (d) the Administrative Agent, (e), the Collateral Agent, (f) CS Toronto and (g)
the Supermajority Lenders, (ii) each of the conditions set forth in Sections 4.02(a) and
(b) of the Amended and Restated Credit Agreement shall be satisfied and the Administrative
Agent shall have received a certificate to that effect, dated as of the Restatement Effective Date
and signed by a Responsible Officer of the Specified U.S. Borrower, (iii) the Administrative Agent
shall have received such customary legal opinions, board resolutions and other closing certificates
and documentation as shall be reasonably requested by the Administrative Agent, in each case
consistent with those delivered on the Closing Date under Section 4.01 of the Original
Credit Agreement and (iv) all fees and expenses due and payable to the Administrative Agent or any
Lender on or prior to the Restatement Effective Date, including reimbursement or payment of all
out-of-pocket expenses required to be reimbursed or paid by the Borrowers hereunder or under any
other Loan Document, in each case to the extent invoiced no later than 11:00 a.m. on the
Restatement Effective Date, shall have been paid.

[Remainder of this page intentionally left blank]

 

 

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

	 	 	 	 	 
	 	PLY GEM HOLDINGS, INC.,

as Holdings

 	 
	 	     By:  	/s/ Shawn K. Poe	 
	 	 	Name:  	Shawn K. Poe 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	PLY GEM INDUSTRIES, INC.,

as the Specified U.S. Borrower

 	 
	 	     By:  	/s/ Shawn K. Poe	 
	 	 	Name:  	Shawn K. Poe 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	CWD WINDOWS AND DOORS, INC.,

as the Canadian Borrower

 	 
	 	     By:  	/s/ Shawn K. Poe	 
	 	 	Name:  	Shawn K. Poe 	 
	 	 	Title:  	Secretary 	 
	 
	 	EACH OF THE SUBSIDIARIES LISTED ON

SCHEDULE I-A HERETO, each as a Guarantor

 	 
	 	     By:  	/s/ Shawn K. Poe	 
	 	 	Name:  	Shawn K. Poe 	 
	 	 	Title:  	Secretary of each of the	 
	 	 	above-referenced entities

Signature Page to Amendment and Restatement Agreement

 

 

	 	 	 	 	 	 	 

	 	 	NEW GLAZING INDUSTRIES, LTD.,	 	 
	 	 	as a Guarantor	 	 
	 
	 	 	 	 	 	 
	 	 	By: Glazing Industries Management, L.L.C.,

its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	     By:	 	/s/ Shawn K. Poe	 	 
	 

	 	 	 	 

Name: Shawn K. Poe
	 	 
	 

	 	 	 	Title: Secretary of the General Partner	 	 

Signature Page to Amendment and Restatement Agreement

 

 

	 	 	 	 	 	 	 

	 	 	NEW ALENCO EXTRUSION, LTD.,

as a Guarantor	 	 
	 
	 	 	 	 	 	 
	 	 	By: Alenco Extrusion Management, L.L.C.,
 its
General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	     By:	 	/s/ Shawn K. Poe	 	 
	 

	 	 	 	 

Name: Shawn K. Poe
	 	 
	 

	 	 	 	Title: Secretary of the General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	NEW ALENCO WINDOW, LTD.,

as a Guarantor	 	 
	 
	 	 	 	 	 	 
	 	 	By: Alenco Building
Products Management, L.L.C., 

its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	     By:	 	/s/ Shawn K. Poe	 	 
	 

	 	 	 	 

Name: Shawn K. Poe
	 	 
	 

	 	 	 	Title: Secretary of the General Partner	 	 

Signature Page to Amendment and Restatement Agreement

 

 

	 	 	 	 	 
	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH,

individually and as Administrative Agent,

U.S. Swing Line Lender and U.S. L/C Issuer

 	 
	 	     By:  	
/s/ Robert Hetu	 
	 	 	Name:  	Robert Hetu	 
	 	 	Title:  	Managing Director	 
	 
	 	 	 
	 	     By:  	/s/
Christopher Reo Day
 	 
	 	 	Name:  	Christopher Reo Day	 
	 	 	Title:  	Associate	 
	 

Signature Page to Amendment and Restatement Agreement

 

 

	 	 	 	 	 
	 	GENERAL ELECTRIC CAPITAL CORPORATION,

individually and as Collateral Agent

 	 
	 	     By:  	/s/ William J. Kane	 
	 	 	Name:  	William J. Kane	 
	 	 	Title:  	Duly Authorized Signatory	 
	 

Signature Page to Amendment and Restatement Agreement

 

 

	 	 	 	 	 
	 	CREDIT SUISSE, TORONTO BRANCH, as

Canadian Swing Line Lender, Canadian L/C

Issuer and Canadian Revolving Credit Lender

 	 
	 	By:  	/s/ Alain Daoust	 
	 	 	Name:  	Alain Daoust	 
	 	 	Title:  	Director	 
	 
	 	 	 
	 	By:  	
/s/ Bruce F. Wetherly	 
	 	 	Name:  	Bruce F. Wetherly	 
	 	 	Title:  	Director, Credit Suisse, Toronto Branch	 
	 

Signature Page to Amendment and Restatement Agreement

 

 

	 	 	 	 	 	 	 

	 	 	SIGNATURE PAGE TO AMENDMENT AND

RESTATEMENT AGREEMENT DATED AS OF THE

DATE FIRST ABOVE WRITTEN TO

THE PLY GEM CREDIT AGREEMENT	 	 
	 
	 	 	 	 	 	 
	Name of Lender:

	 		 	 
Bank Midwest, N.A.

	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Damon K. Stelting	 	 
	 

	 	 	 	 

Name: Damon K. Stelting
	 	 
	 

	 	 	 	Title: Vice President Commercial Lending	 	

Signature Page to Amendment and Restatement Agreement

 

 

Schedule I

Subsidiary Guarantors

Schedule I-A

Great Lakes Window, Inc.

Kroy Building Products, Inc.

Napco, Inc.

Variform, Inc.

MWM Holding, Inc.

MW Manufacturers Inc.

AWC Holding Company

Alenco Holding Corporation

AWC Arizona, Inc.

Alenco Interests, L.L.C.

Alenco Extrusion Management, L.L.C.

Alenco Building Products Management, L.L.C.

Alenco Trans, Inc.

Glazing Industries Management, L.L.C.

Alenco Extrusion GA, L.L.C.

Aluminum Scrap Recycle, L.L.C.

Alenco Window GA, L.L.C.

Alcoa Home Exteriors, Inc.

Ply Gem Pacific Windows Corporation

 

 

Schedule I

Schedule I-B

New Alenco Extrusion, Ltd.

New Alenco Window, Ltd.

New Glazing Industries, Ltd.

 

 

Exhibit A

Amended and Restated Credit Agreement

(see attached)

 

 

EXECUTION COPY

 

CREDIT AGREEMENT

Dated as of June 9, 2008,

as Amended and Restated as of July 16, 2009

among

PLY GEM HOLDINGS, INC.,

PLY GEM INDUSTRIES, INC.,

as the Specified U.S. Borrower,

CWD WINDOWS AND DOORS, INC.,

as the Canadian Borrower,

The Other Borrowers Named Herein,

CREDIT SUISSE,

as Administrative Agent, U.S. Swing Line Lender and U.S. L/C Issuer,

GENERAL ELECTRIC CAPITAL CORPORATION,

as Collateral Agent,

CREDIT SUISSE, TORONTO BRANCH

as Canadian Swing Line Lender and Canadian L/C Issuer,

The Other Lenders Party Hereto,

CREDIT SUISSE SECURITIES (USA) LLC,

as Sole Lead Arranger and Sole Bookrunner

and

GENERAL ELECTRIC CAPITAL CORPORATION,

as Syndication Agent

and

UBS Loan Finance LLC,

as Documentation Agent

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	Definitions and Accounting Terms
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01. Defined Terms
	 	 	2	 
	SECTION 1.02. Other Interpretive Provisions
	 	 	59	 
	SECTION 1.03. Accounting Terms
	 	 	60	 
	SECTION 1.04. Rounding
	 	 	61	 
	SECTION 1.05. Times of Day
	 	 	61	 
	SECTION 1.06. Letter of Credit Amounts
	 	 	61	 
	SECTION 1.07. Currency Equivalents Generally
	 	 	61	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	The Commitments and Credit Extensions
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01. The Loans
	 	 	61	 
	SECTION 2.02. Borrowings, Conversions and Continuations of Loans
	 	 	69	 
	SECTION 2.03. Letters of Credit Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of Credit
	 	 	71	 
	SECTION 2.04. Swing Line Loans
	 	 	78	 
	SECTION 2.05. Prepayments
	 	 	85	 
	SECTION 2.06. Termination or Reduction of Commitments
	 	 	87	 
	SECTION 2.07. Repayment of Loans
	 	 	88	 
	SECTION 2.08. Interest
	 	 	88	 
	SECTION 2.09. Fees
	 	 	89	 
	SECTION 2.10. Computation of Interest and Fees; Retroactive Adjustments of Applicable Rate
	 	 	90	 
	SECTION 2.11. Evidence of Debt
	 	 	91	 
	SECTION 2.12. Payments Generally; Administrative Agent’s Clawback
	 	 	91	 
	SECTION 2.13. Sharing of Payments by Lenders
	 	 	94	 
	SECTION 2.14. Nature of Obligations
	 	 	95	 
	SECTION 2.15. Borrower Agent
	 	 	96	 
	SECTION 2.16. Incremental Revolving Credit Commitments
	 	 	97	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	Taxes, Yield Protection and Illegality
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01. Taxes
	 	 	98	 
	SECTION 3.02. Illegality
	 	 	102	 
	SECTION 3.03. Inability to Determine Rates
	 	 	103	 
	SECTION 3.04. Increased Costs; Reserves on Eurodollar Rate Loans
	 	 	103	 

 

2

	 	 	 	 	 
	 	 	Page	 
	SECTION 3.05. Compensation for Losses
	 	 	105	 
	SECTION 3.06. Mitigation Obligations; Replacement of Lenders
	 	 	105	 
	SECTION 3.07. Survival
	 	 	106	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	Conditions Precedent to Credit Extensions
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01. Conditions of Initial Credit Extension
	 	 	106	 
	SECTION 4.02. Conditions to all Credit Extensions
	 	 	113	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	Representations and Warranties
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.01. Existence, Qualification and Power; Compliance with Laws
	 	 	114	 
	SECTION 5.02. Authorization; No Contravention
	 	 	114	 
	SECTION 5.03. Governmental Authorization; Other Consents
	 	 	114	 
	SECTION 5.04. Binding Effect
	 	 	115	 
	SECTION 5.05. Financial Statements; No Material Adverse Effect
	 	 	115	 
	SECTION 5.06. Litigation
	 	 	116	 
	SECTION 5.07. No Default
	 	 	116	 
	SECTION 5.08. Ownership of Property; Liens
	 	 	116	 
	SECTION 5.09. Environmental Compliance
	 	 	116	 
	SECTION 5.10. Insurance
	 	 	117	 
	SECTION 5.11. Taxes
	 	 	118	 
	SECTION 5.12. ERISA Compliance
	 	 	118	 
	SECTION 5.13. Subsidiaries; Equity Interests; Loan Parties
	 	 	119	 
	SECTION 5.14. Margin Regulations; Investment Company Act
	 	 	119	 
	SECTION 5.15. Disclosure
	 	 	119	 
	SECTION 5.16. Compliance with Laws
	 	 	120	 
	SECTION 5.17. Intellectual Property; Licenses, Etc
	 	 	120	 
	SECTION 5.18. Solvency
	 	 	120	 
	SECTION 5.19. Casualty, Etc
	 	 	120	 
	SECTION 5.20. Perfection, Etc
	 	 	120	 
	SECTION 5.21. Senior Debt
	 	 	121	 
	SECTION 5.22. Tax Shelter Regulations
	 	 	121	 
	SECTION 5.23. Anti-Terrorism Law
	 	 	121	 
	SECTION 5.24. Accounts
	 	 	122	 
	SECTION 5.25. Canadian Pension Plans
	 	 	123	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	Affirmative Covenants
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.01. Financial Statements; Borrowing Base
	 	 	123	 
	SECTION 6.02. Certificates; Other Information
	 	 	125	 

 

3

	 	 	 	 	 
	 	 	Page	 
	SECTION 6.03. Notices
	 	 	127	 
	SECTION 6.04. Payment of Obligations
	 	 	128	 
	SECTION 6.05. Preservation of Existence, Etc
	 	 	128	 
	SECTION 6.06. Maintenance of Properties
	 	 	128	 
	SECTION 6.07. Maintenance of Insurance
	 	 	129	 
	SECTION 6.08. Compliance with Laws
	 	 	129	 
	SECTION 6.09. Books and Records
	 	 	129	 
	SECTION 6.10. Inspections; Appraisals
	 	 	129	 
	SECTION 6.11. Use of Proceeds
	 	 	130	 
	SECTION 6.12. Covenant to Guarantee Obligations and Give Security
	 	 	130	 
	SECTION 6.13. Compliance with Environmental Laws
	 	 	134	 
	SECTION 6.14. Further Assurances
	 	 	134	 
	SECTION 6.15. Compliance with Terms of Leaseholds
	 	 	135	 
	SECTION 6.16. Designation as Senior Debt
	 	 	135	 
	SECTION 6.17. Collateral Administration
	 	 	135	 
	SECTION 6.18. Maintenance of Cash Management System
	 	 	137	 
	SECTION 6.19. Collateral Audit
	 	 	137	 
	SECTION 6.20. Post-Closing Matters
	 	 	138	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	 
	 	 	 	 
	Negative Covenants
	 	 	 	 
	 
	 	 	 	 
	SECTION 7.01. Liens
	 	 	138	 
	SECTION 7.02. Investments
	 	 	141	 
	SECTION 7.03. Indebtedness
	 	 	144	 
	SECTION 7.04. Fundamental Changes
	 	 	146	 
	SECTION 7.05. Dispositions
	 	 	147	 
	SECTION 7.06. Restricted Payments
	 	 	149	 
	SECTION 7.07. Change in Nature of Business
	 	 	151	 
	SECTION 7.08. Transactions with Affiliates
	 	 	151	 
	SECTION 7.09. Burdensome Agreements
	 	 	152	 
	SECTION 7.10. Use of Proceeds
	 	 	153	 
	SECTION 7.11. Consolidated Fixed Charge Coverage Ratio
	 	 	153	 
	SECTION 7.12. Amendments of Material Documents
	 	 	153	 
	SECTION 7.13. Accounting Changes
	 	 	153	 
	SECTION 7.14. Prepayments, Etc. of Indebtedness
	 	 	153	 
	SECTION 7.15. Equity Interests of the Specified U.S. Borrower and Subsidiaries
	 	 	154	 
	SECTION 7.16. Designation of Senior Debt
	 	 	154	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	 
	 	 	 	 
	Events of Default and Remedies
	 	 	 	 
	 
	 	 	 	 
	SECTION 8.01. Events of Default
	 	 	154	 
	SECTION 8.02. Remedies upon Event of Default
	 	 	157	 

 

4

	 	 	 	 	 
	 	 	Page	 
	SECTION 8.03. Application of Funds
	 	 	158	 
	SECTION 8.04. Collection Allocation Mechanism
	 	 	160	 
	 
	 	 	 	 
	ARTICLE IX
	 	 	 	 
	 
	 	 	 	 
	The Agents
	 	 	 	 
	 
	 	 	 	 
	SECTION 9.01. Appointment and Authority
	 	 	161	 
	SECTION 9.02. Rights as a Lender
	 	 	162	 
	SECTION 9.03. Exculpatory Provisions
	 	 	162	 
	SECTION 9.04. Reliance by Administrative Agent
	 	 	163	 
	SECTION 9.05. Delegation of Duties
	 	 	164	 
	SECTION 9.06. Resignation of Administrative Agent
	 	 	165	 
	SECTION 9.07. Non-Reliance on Administrative Agent and Other Lenders
	 	 	165	 
	SECTION 9.08. No Other Duties, Etc
	 	 	165	 
	SECTION 9.09. Administrative Agent May File Proofs of Claim
	 	 	165	 
	SECTION 9.10. Collateral and Guaranty Matters
	 	 	166	 
	SECTION 9.11. Secured Cash Management Agreements and Secured Hedge Agreements
	 	 	167	 
	 
	 	 	 	 
	ARTICLE X
	 	 	 	 
	 
	 	 	 	 
	Miscellaneous
	 	 	 	 
	 
	 	 	 	 
	SECTION 10.01. Amendments, Etc
	 	 	168	 
	SECTION 10.02. Notices; Effectiveness; Electronic Communications
	 	 	170	 
	SECTION 10.03. No Waiver; Cumulative Remedies
	 	 	173	 
	SECTION 10.04. Expenses; Indemnity; Damage Waiver
	 	 	174	 
	SECTION 10.05. Payments Set Aside
	 	 	175	 
	SECTION 10.06. Successors and Assigns
	 	 	176	 
	SECTION 10.07. Treatment of Certain Information; Confidentiality
	 	 	180	 
	SECTION 10.08. Right of Setoff
	 	 	181	 
	SECTION 10.09. Interest Rate Limitation
	 	 	181	 
	SECTION 10.10. Counterparts; Integration; Effectiveness
	 	 	182	 
	SECTION 10.11. Survival of Representations and Warranties
	 	 	183	 
	SECTION 10.12. Severability
	 	 	183	 
	SECTION 10.13. Replacement of Lenders
	 	 	183	 
	SECTION 10.14. Governing Law; Jurisdiction; Etc
	 	 	184	 
	SECTION 10.15. Waiver of Jury Trial
	 	 	185	 
	SECTION 10.16. No Advisory or Fiduciary Responsibility
	 	 	185	 
	SECTION 10.17. Electronic Execution of Assignments and Certain Other Documents
	 	 	186	 
	SECTION 10.18. USA Patriot Act Notice
	 	 	186	 
	SECTION 10.19. Judgment Currency
	 	 	186	 
	SECTION 10.20. Language
	 	 	187	 
	SECTION 10.21. Intercreditor Agreement
	 	 	187	 

 

5

All references to Exhibits and Schedules (other than Schedule 2.01) in this Agreement shall be
construed to refer to Exhibits and Schedules to the Original Credit Agreement.

SCHEDULES

	 	 	 

	Schedule 1.01

	 	Existing Letters of Credit
	Schedule 1.01(a)

	 	Sale-Leaseback Properties
	Schedule 2.01

	 	Commitments and Applicable Percentages
	Schedule 4.01(a)(vi)

	 	Mortgaged Properties
	Schedule 5.05

	 	Supplement to Interim Financial Statements
	Schedule 5.06

	 	Litigation
	Schedule 5.08(b)

	 	Owned Real Property
	Schedule 5.08(c)

	 	Leased Real Property
	Schedule 5.09

	 	Environmental Matters
	Schedule 5.13

	 	Subsidiaries and Other Equity Investments; Loan Parties
	Schedule 6.12

	 	Guarantors
	Schedule 6.20

	 	Post-Closing Matters
	Schedule 7.01

	 	Existing Liens
	Schedule 7.02

	 	Existing Investments
	Schedule 7.03(e)

	 	Existing Indebtedness
	Schedule 7.05

	 	Dispositions
	Schedule 7.08

	 	Transactions with Affiliates
	Schedule 10.02

	 	Administrative Agent’s Office, Certain Addresses for Notices

EXHIBITS

	 	 	 

	Exhibit A

	 	Form of Committed Loan Notice
	Exhibit B

	 	Form of Swing Line Loan Notice
	Exhibit C-1

	 	Form of U.S. Revolving Credit Note
	Exhibit C-2

	 	Form of Canadian Revolving Credit Note
	Exhibit D

	 	Form of Compliance Certificate
	Exhibit E-1

	 	Form of Assignment and Assumption
	Exhibit E-2

	 	Form of Administrative Questionnaire
	Exhibit F

	 	Form of U.S. Guaranty
	Exhibit G-1

	 	Form of U.S. Security Agreement
	Exhibit G-2

	 	Form of Canadian Security Agreement
	Exhibit H

	 	Form of Mortgage
	Exhibit I

	 	Form of Intercompany Note
	Exhibit J-1

	 	Form of Opinion — U.S. Counsel to Loan Parties
	Exhibit J-2

	 	Form of Opinion — Counsel to Canadian Loan Parties
	Exhibit J-3

	 	Form of Opinion — Local Counsel to U.S. Loan Parties
	Exhibit K

	 	Form of Borrowing Base Certificate
	Exhibit L

	 	Form of Perfection Certificate

 

1

     This CREDIT AGREEMENT (“Agreement”) is entered into as of
June 9, 2008, and amended and restated as of July 16, 2009, among PLY GEM
HOLDINGS, INC., a Delaware corporation (“Holdings”), PLY GEM
INDUSTRIES, INC., a Delaware corporation (the “Specified U.S.
Borrower” and, in its capacity as the representative of the other
Borrowers pursuant to Section 2.15 hereof, the “Borrower
Agent”), CWD WINDOWS AND DOORS, INC., a Canadian corporation (the
“Canadian Borrower”), the Subsidiaries of the Specified U.S.
Borrower from time to time party hereto as Borrowers and Guarantors, each
Lender from time to time party hereto, CREDIT SUISSE, as Administrative
Agent (in such capacity, the “Administrative Agent”), U.S. Swing
Line Lender and U.S. L/C Issuer, GENERAL ELECTRIC CAPITAL CORPORATION, as
Collateral Agent (in such capacity, the “Collateral Agent”),
CREDIT SUISSE, TORONTO BRANCH, (“CS Toronto”), as Canadian Swing
Line Lender and Canadian L/C Issuer, CREDIT SUISSE SECURITIES (USA) LLC,
as Sole Lead Arranger and Sole Bookrunner, GENERAL ELECTRIC CAPITAL
CORPORATION, as Syndication Agent and UBS LOAN FINANCE LLC, as
Documentation Agent.

Preliminary Statements:

          The parties hereto are party to that certain Original Credit Agreement (such term and other
capitalized terms used in these preliminary statements are defined in Section 1.01 hereof).
Pursuant to the Amendment and Restatement Agreement, and upon satisfaction of the conditions set
forth therein, the Original Credit Agreement is being amended and restated in the form of this
Agreement.

          The Original Credit Agreement established, among other things, the U.S. Revolving Credit
Facility and the Canadian Revolving Credit Facility (in each case, as defined therein), and
permitted the Borrowers to establish, subject to the terms and conditions set forth therein,
Incremental Revolving Credit Commitments (as defined therein). Upon the effectiveness of the
Amendment and Restatement Agreement, the Original Credit Agreement will be amended and restated to,
among other things, increase the Revolving Credit Commitments consisting of U.S. Revolving Credit
Commitments, and decrease the amount of Incremental Revolving Credit Commitments the Borrowers are
permitted to establish to $25,000,000.

          The Borrowers have requested that the Lenders provide a revolving credit facility, and the
Lenders have indicated their willingness to lend and the L/C Issuers have indicated their
willingness to issue letters of credit, in each case, on the terms and subject to the conditions
set forth herein.

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

 

2

ARTICLE I

Definitions and Accounting Terms

          SECTION 1.01. Defined Terms. As used in this Agreement (including the Preliminary
Statements), the following terms shall have the meanings set forth below:

          “2012 Senior Subordinated Notes” means all outstanding 9% unsecured senior
subordinated notes due 2012 issued by the Specified U.S. Borrower pursuant to the 2012 Senior
Subordinated Notes Indenture.

          “2012 Senior Subordinated Notes Indenture” means the Indenture dated as of
February 12, 2004 among U.S. Bank National Association, the Specified U.S. Borrower and certain of
the Guarantors, together with all instruments and other agreements in connection therewith or
otherwise setting forth the terms of the 2012 Senior Subordinated Notes, as may be amended,
supplemented or otherwise modified from time to time in accordance with the terms thereof, but only
to the extent permitted under the terms of the Loan Documents.

          “ABL Priority Collateral” means the “Revolving Facility First Lien Collateral” (as
defined in the Intercreditor Agreement).

          “Account” has the meaning specified in the UCC (or, with respect to a Canadian Loan
Party, the PPSA), and shall include any and all rights of a Loan Party to payment for goods sold or
leased or for services rendered that are not evidenced by an Instrument or Chattel Paper, whether
or not they have been earned by performance.

          “Account Debtor” a Person who is obligated under an Account, Chattel Paper or General
Intangible.

          “Administrative Agent” means Credit Suisse in its capacity as administrative agent
under any of the Loan Documents, or any successor administrative agent and, with respect to matters
relating to the Canadian Revolving Credit Facility, means CS Toronto, in its capacity as Canadian
administrative agent under any of the Loan Documents, or any successor Canadian administrative
agent.

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

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

          “Advisory Agreement” means the General Advisory Agreement dated as of February 12,
2004 between the Specified U.S. Borrower and CXCIC LLC, as amended,

 

3

supplemented or otherwise modified from time to time in accordance with the terms thereof, but
only to the extent permitted under the Loan Documents.

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

          “Agents” means the Administrative Agent and the Collateral Agent.

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

          “Agreement” means this Credit Agreement as modified, amended, supplemented or
restated, and in effect from time to time.

          “Amendment and Restatement Agreement” means the Amendment and Restatement Agreement
dated as of July 16, 2009, among Holdings, the Specified U.S. Borrower, the Canadian Borrower, the
Subsidiaries of the Specified U.S. Borrower party thereto, the Lenders party thereto, the
Administrative Agent, the Collateral Agent, CS Toronto and the other agents party thereto.

          “Anti-Terrorism Laws” has the meaning specified in Section 5.23(a).

          “Applicable Commitment Fee Rate” means, for each fiscal quarter ending after the
Closing Date, (a) 0.50% per annum, if the Average Revolving Credit Facility Balance during the
immediately preceding fiscal quarter is greater than 66% of the Aggregate Commitments outstanding
during such period, (b) 0.625% per annum, if the Average Revolving Credit Facility Balance during
the immediately preceding fiscal quarter is less than or equal to 66% and greater than 33% of the
Aggregate Commitments outstanding during such period, or (c) 0.75%, if the Average Revolving Credit
Facility Balance during the immediately preceding fiscal quarter is less than or equal to 33% of
the Aggregate Commitments outstanding during such period. Notwithstanding the foregoing, until the
fiscal quarter ending on or around March 31, 2009, the Applicable Commitment Fee Rate shall be
0.625%.

          “Applicable Percentage” means, (a) with respect to any U.S. Appropriate Lender at any
time, the percentage (carried out to the ninth decimal place) of the U.S. Revolving Credit Facility
represented by such U.S. Revolving Credit Lender’s U.S. Revolving Credit Commitment at such time
and (b) with respect to any Canadian Appropriate Lender at any time, the percentage (carried out to
the ninth decimal place) of the Canadian Revolving Credit Facility represented by such Canadian
Revolving Credit Lender’s Canadian Revolving Credit Commitment at such time. If the commitment of
each Appropriate Lender to make Revolving Credit Loans and the obligation of each L/C Issuer to
make L/C Credit Extensions have been terminated pursuant to Section 8.02, or if the
Revolving Credit Commitments have expired, then the Applicable Percentage of each Appropriate
Lender in respect of the Revolving Credit Facility shall be determined based on the Applicable
Percentage of such Appropriate Lender in respect of the Revolving Credit Facility most recently in
effect, giving effect to any subsequent assignments. The Applicable Percentage of each Lender in
respect of each Facility is set forth opposite the

 

4

name of such Lender on Schedule 2.01 or in the Assignment and Assumption pursuant to
which such Lender becomes a party hereto, as applicable.

          “Applicable Rate” means, for each fiscal quarter, the applicable percentage per annum
set forth below determined by reference to Average Excess Availability for the immediately
preceding fiscal quarter:

	 	 	 	 	 	 	 	 	 	 	 
	Applicable Rate
	 	 	 	 	Eurodollar Rate, BA	 	Base Rate, Canadian Base
	Pricing	 	Average Excess	 	Rate and Letter of	 	Rate and Canadian Prime
	Level	 	Availability	 	Credit Fees	 	Rate
	1
	 	> $100,000,000	 	 	3.75	%	 	 	2.75	%
	2
	 	< $100,000,000 but > $50,000,000	 	 	4.00	%	 	 	3.00	%
	3
	 	< $50,000,000	 	 	4.25	%	 	 	3.25	%

Notwithstanding the foregoing, (a) during the fiscal quarter in which the Closing Date occurs,
Level 2 shall be deemed to apply, and (b) thereafter and until the fiscal quarter ending on or
around March 31, 2009, for purposes of determining the Applicable Rate, Average Excess Availability
shall be deemed to be not greater than $100,000,000 or less than $50,000,000. Any increase or
decrease in the Applicable Rate resulting from a change in the Average Excess Availability shall
become effective as of the first calendar day of each fiscal quarter. Average Excess Availability
shall be calculated by the Administrative Agent based on the Administrative Agent’s records. If
the Borrowing Base Certificates (including any required financial information in support thereof)
of the Borrowers are not received by the Agents by the date required pursuant to Section
6.01(e) of this Agreement, then, upon the request of the Required Lenders, the Applicable Rate
shall be determined as if the Average Excess Availability for the immediately preceding fiscal
quarter is at Level 3 until such time as such Borrowing Base Certificates and supporting
information are received.

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

          “Appropriate Lender” means, at any time, (a) (i) with respect to the U.S. Revolving
Credit Facility, a Lender that has a Commitment with respect to the U.S. Revolving Credit Facility
or holds a U.S. Revolving Credit Loan at such time (each, a “U.S. Appropriate Lender”),
(ii) with respect to the U.S. Letter of Credit Sublimit, (A) the U.S. L/C Issuer and (B) if any
U.S. Letters of Credit have been issued pursuant to Section 2.01(c), the U.S. Revolving
Credit Lenders and (iii) with respect to the U.S. Swing Line Sublimit, (A) the U.S. Swing Line
Lender and (B) if any U.S. Swing Line Loans are outstanding pursuant to Section 2.04(A)(a),
the U.S. Revolving Credit Lenders and (b) (i) with respect to the Canadian Revolving Credit
Facility, a Lender that has a Commitment with respect to the Canadian Revolving Credit Facility or
holds a Canadian Revolving Credit Loan at such time (each, a “Canadian Appropriate
Lender”), (ii) with respect to the Canadian Letter of Credit Sublimit, (A) the Canadian L/C
Issuer and (B) if any Canadian Letters of Credit have been issued pursuant to Section
2.01(d), the

 

5

Canadian Revolving Credit Lenders and (iii) with respect to the Canadian Swing Line Sublimit,
(A) the Canadian Swing Line Lender and (B) if any Canadian Swing Line Loans are outstanding
pursuant to Section 2.04(B)(a), the Canadian Revolving Credit Lenders.

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

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

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

          “Attributable Indebtedness” means, on any date, (a) in respect of any Capitalized
Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such
Person prepared as of such date in accordance with GAAP, (b) in respect of any Synthetic Lease
Obligation, the capitalized amount of the remaining lease or similar payments under the relevant
lease or other applicable agreement or instrument that would appear on a balance sheet of such
Person prepared as of such date in accordance with GAAP if such lease or other agreement or
instrument were accounted for as a Capitalized Lease and (c) all Synthetic Debt of such Person.

          “Audited Financial Statements” means the audited consolidated balance sheet of
Holdings and its Subsidiaries for the fiscal year ended December 31, 2007 and the related
consolidated statements of income or operations, shareholders’ equity and cash flows for such
fiscal year of Holdings and its Subsidiaries, including the notes thereto.

          “Availability Period” means, with respect to each Revolving Credit Facility, the
period from and including the Closing Date to the earliest of (i) the Maturity Date, (ii) the date
of termination of the applicable Revolving Credit Commitments pursuant to Section 2.06, and
(iii) the date of termination of the commitment of each applicable Appropriate Lender to make
Revolving Credit Loans and of the obligation of the applicable L/C Issuer to make L/C Credit
Extensions pursuant to Section 8.02.

          “Availability Reserve” means, on any date of determination and with respect to the
U.S. Borrowing Base or the Canadian Borrowing Base, as the case may be, the sum (without
duplication) of (a) reserves for deterioration in the salability of inventory; (b) the Rent and
Charges Reserve; (c) the Bank Product Reserve; (d) all accrued Royalties, whether or not then due
and payable by, in the case of the U.S. Borrowing Base, a U.S. Loan Party or, in the case of the
Canadian Borrowing Base, a

 

6

Canadian Loan Party; (e) the aggregate amount of liabilities secured by Liens upon Eligible
Collateral that are senior to the Collateral Agent’s Liens (but imposition of any such reserve
shall not waive an Event of Default arising therefrom); (f) the Canadian Priority Payables Reserve;
(g) reserves for excess dilution; (h) reserves for inventory that is subject to any licensing,
patent, royalty, trademark, trade name or copyright agreement with any third party; and (i) such
additional reserves, in such amounts and with respect to such matters, as the Agents in their
Credit Judgment may elect to impose from time to time; provided that, after the Closing
Date, the Agents may adjust the apportionment of the Availability Reserve between the U.S.
Revolving Credit Facility and the Canadian Revolving Credit Facility in their Credit Judgment at
such time; and provided further that such Availability Reserve shall not be
established or changed except upon not less than five (5) Business Days’ notice to the Borrowers
(unless an Event of Default exists in which event no notice shall be required). The Agents will be
available during such period to discuss any such proposed Availability Reserve or change with the
Borrowers and without limiting the right of the Agents to establish or change such Reserves in the
Agents’ Credit Judgment, the Borrowers may take such action as may be required so that the event,
condition or matter that is the basis for such Availability Reserve no longer exists, in a manner
and to the extent reasonably satisfactory to the Agents. The amount of any Availability Reserve
established by the Agents shall have a reasonable relationship as determined by the Agents in their
Credit Judgment to the event, condition or other matter that is the basis for the Availability
Reserve. Notwithstanding anything herein to the contrary, an Availability Reserve shall not be
established to the extent that it would be duplicative of any specific item excluded as ineligible
in the definitions of Eligible Collateral, but the Agents shall retain the right, subject to the
requirements of this paragraph, to establish an Availability Reserve with respect to prospective
changes in Eligible Collateral that may reasonably be anticipated.

          “Average Excess Availability” means, on any date of determination, the amount of
Excess Availability during a stipulated consecutive Business Day period, calendar day period or
fiscal quarter period divided by the number of Business Days or calendar days, as the case may be,
in such period.

          “Average Revolving Credit Facility Balance” means, for any period for any Facility,
the amount obtained by adding the Outstanding Amount of Loans outstanding under such Facility (less
the Outstanding Amount of any Swing Line Loans under such Facility on such date) and L/C
Obligations under such Facility at the end of each day for the period in question and by dividing
such sum by the number of days in such period.

          “BA Rate” means, for the Interest Period of each BA Rate Loan, the rate of interest
per annum equal to the average annual rate applicable to Canadian Dollar bankers’ acceptances
having an identical or comparable term as the proposed BA Rate Loan displayed and identified as
such on the display referred to as the “CDOR Page” (or any display substituted therefor) of Reuters
Monitor Money Rates Service as at approximately 10:00 a.m. Toronto time on such day (or, if such
day is not a Business Day, as of 10:00 a.m. Toronto time on the immediately preceding Business
Day), plus five (5) basis points; provided that if such rate does not appear on the CDOR
Page at such time

 

7

on such date, the rate for such date will be the rate of interest per annum equivalent to the
annual discount rate (rounded upward to the nearest whole multiple of 1/100 of 1%) as of 10:00 a.m.
Toronto time on such day at which a Canadian chartered bank listed on Schedule 1 of the Bank Act
(Canada) as selected by the Administrative Agent is then offering to purchase Canadian Dollar
bankers’ acceptances accepted by it having such specified term (or a term as closely as possible
comparable to such specified term), plus ten (10) basis points.

          “BA Rate Loan” means any Canadian Revolving Credit Loan denominated in Canadian
Dollars bearing interest at a rate determined by reference to the BA Rate.

          “Bank Product” means any of the following products, services or facilities extended to
any Loan Party: (a) cash management services provided by Cash Management Banks under Cash
Management Agreements and (b) products provided by Hedge Banks under Secured Hedge Agreements;
provided, however, that for any of the foregoing to be included as an “Obligation”
for purposes of a distribution under Section 8.03, the applicable Secured Party and the
Loan Party must have previously provided written notice to the Administrative Agent of (i) the
existence of such Bank Product, (ii) the maximum dollar amount of obligations arising thereunder to
be included as a Bank Product Reserve (the “Bank Product Amount”), and (iii) the
methodology to be used by such parties in determining the Bank Product Debt owing from time to
time. The Bank Product Amount may be changed from time to time upon written notice to the
Administrative Agent by the applicable Secured Party and Loan Party. No Bank Product Amount may be
established or increased at any time that a Default or Event of Default exists and is continuing,
or if a reserve in such amount would cause an Overadvance.

          “Bank Product Amount” has the meaning specified in the definition of “Bank Product”.

          “Bank Product Debt” means Debt and other obligations of a Loan Party relating to Bank
Products.

          “Bank Product Reserve” means, with respect to the U.S. Borrowing Base or the Canadian
Borrowing Base, the aggregate amount of reserves established by the Agents from time to time in
their Credit Judgment in respect of Bank Product Debt of the U.S. Loan Parties or the Canadian Loan
Parties, as the case may be, which shall be at least equal to the sum of all Bank Product Amounts.

          “Base Rate” means for any day a fluctuating rate per annum equal to the highest of (a)
the Federal Funds Rate plus 1/2 of 1%, (b) the Eurodollar Rate in effect on such day for a
one-month Interest Period plus 1% and (c) the rate of interest in effect for such day as determined
from time to time by Credit Suisse as its “prime rate” in effect at its principal office in New
York City. The “prime rate” is a rate set by Credit Suisse based upon various factors including
Credit Suisse’s costs and desired return, general economic conditions and other factors, and is
used as a reference point for pricing some loans, which may be priced at, above, or below such
announced rate. Any change in the

 

8

“prime rate” so determined by Credit Suisse shall take effect at the opening of business on
the day specified by Credit Suisse.

          “Base Rate Loan” means a Revolving Credit Loan that bears interest based on the Base
Rate.

          “BIA” means the Bankruptcy and Insolvency Act (Canada).

          “Bookrunner” means Credit Suisse Securities (USA) LLC, in its capacity as sole lead
arranger and sole bookrunner.

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

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

          “Borrowers” mean the Canadian Borrower and the U.S. Borrowers.

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

          “Borrowing Base” means any of the U.S. Borrowing Base, the Canadian Borrowing Base
and/or the Total Borrowing Base, as the context may require.

          “Borrowing Base Certificate” means a certificate substantially in the form of
Exhibit K.

          “Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact closed in, relative to
matters with respect to the U.S. Revolving Credit Facility, the state where the Administrative
Agent’s Office is located, or relative to matters with respect to the Canadian Revolving Credit
Facility, the jurisdiction where the Administrative Agent’s principal Canadian lending Affiliate or
branch is located and, if such day relates to any Eurodollar Rate Loan, means any such day on which
dealings in Dollar deposits are conducted by and between banks in the London interbank eurodollar
market.

          “CAM” means the mechanism for the allocation and exchange of interests in the Loans,
participations in Letters of Credit and collections thereunder established pursuant to Section
8.04.

          “CAM Exchange” means the exchange of the Lenders’ interests provided for in
Section 8.04.

          “CAM Exchange Date” means the first date after the Closing Date on which there shall
occur (a) any Event of Default under clause (f) or (g) of Section 8.01 with
respect to a Borrower or (b) an acceleration of Loans pursuant to Section 8.02(b).

 

9

          “CAM Percentage” means, as to each Lender, a fraction, expressed as a decimal, of
which (a) the numerator shall be the sum, without duplication, of (i) the Canadian Revolving Credit
Exposure, if any, of such Lender, (ii) the U.S. Revolving Credit Exposure, if any, of such Lender
and (iii) the aggregate amount of any other Obligations otherwise owed to such Lender pursuant to
the Loan Documents, in each case immediately prior to the CAM Exchange Date, and (b) the
denominator shall be the sum of (i) the aggregate U.S. Revolving Credit Exposure of all the
Lenders, (ii) the aggregate Canadian Revolving Exposure of all Lenders and (iii) the aggregate
amount of any other Obligations otherwise owed to any of the Lenders pursuant to the Loan
Documents, in each case immediately prior to the CAM Exchange Date.

          “Canadian Account Control Agreements” means, collectively, the Deposit Account Control
Agreements entered into by the Canadian Loan Parties in favor of the Collateral Agent, each in form
and substance reasonably satisfactory to the Collateral Agent.

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

          “Canadian Base Rate Loan” means any Canadian Revolving Credit Loan denominated in
Dollars bearing interest computed by reference to the Canadian Base Rate.

          “Canadian Benefit Plans” means all employee benefit plans, programs or arrangements of
any nature or kind whatsoever that are not Canadian Pension Plans and are maintained or contributed
to by, or to which there is or may be an obligation to contribute by, any Borrower or its
Subsidiaries in respect of its employees or former employees in Canada.

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

          “Canadian Borrowing Base” means, on any date of determination, an amount (calculated
based on the most recent Borrowing Base Certificate delivered to the Agents in accordance with this
Agreement) equal to

          (a) the sum of

   (i) 85% of the value of the Eligible Receivables of the Canadian Loan Parties,
and

 

10

   (ii) 85% of the NOLV Percentage of the value of the Eligible Inventory of the
Canadian Loan Parties,

          minus

     (b) the Availability Reserve to the extent attributable to the Canadian Loan Parties
in the Agents’ Credit Judgment on such date, provided that, after the Closing Date,
the Agents may adjust the apportionment of the Availability Reserve between the U.S.
Revolving Credit Facility and the Canadian Revolving Credit Facility in their Credit
Judgment.

          “Canadian Cash Management Bank” means any Person that, at the time it enters into a
Cash Management Agreement, is an Agent or a Canadian Lender or an Affiliate of an Agent or a
Canadian Lender, in its capacity as a party to such Cash Management Agreement, in each case in
respect of services provided under such Cash Management Agreement to a Canadian Loan Party.

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

          “Canadian Collateral Documents” means, collectively, the Canadian Security Agreement,
the Canadian Intellectual Property Security Agreement, Canadian Mortgages, the Canadian Account
Control Agreements, each of the collateral assignments, Security Agreement Supplements, IP Security
Agreement Supplements, security agreements, deeds of hypothec, hypothecs, pledge agreements or
other similar agreements delivered to the Collateral Agent pursuant to Section 6.12, and
each of the other agreements, instruments or documents that creates or purports to create a Lien
securing the Canadian Obligations in favor of the Administrative Agent for the benefit of the
Canadian Secured Parties.

          “Canadian Dollar” or “Cdn. $” means Canadian dollars, the lawful currency of
Canada.

          “Canadian Excess Availability” means, at any time, the difference between (a) the
lesser of (i) the Canadian Revolving Credit Facility and (ii) the Canadian Borrowing Base at such
time, as determined from the most recent Borrowing Base Certificate delivered by the Borrower Agent
to the Agents pursuant to Section 6.01(e) hereof minus (b) the Total Canadian Revolving
Credit Outstandings.

          “Canadian Guarantee” means, collectively, the Guarantees made by the Canadian
Subsidiary Guarantors in favor of the Canadian Secured Parties, each in form and substance
reasonably satisfactory to the Administrative Agent, together with each other guarantee and
guarantee supplement delivered pursuant to Section 6.12.

          “Canadian Intellectual Property Security Agreement” has the meaning specified in
Section 4.01(a)(vii).

 

11

          “Canadian L/C Advance” means, with respect to each Canadian Revolving Credit Lender,
such Lender’s funding of its participation in any Canadian L/C Borrowing in accordance with its
Applicable Percentage.

          “Canadian L/C Borrowing” means an extension of credit resulting from a drawing under
any Canadian Letter of Credit which has not been reimbursed on the date when made or refinanced as
a Canadian Revolving Credit Borrowing.

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

          “Canadian L/C Issuer” means CS Toronto in its capacity as issuer of Canadian Letters
of Credit hereunder, or any successor issuer of Canadian Letters of Credit hereunder.

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

          “Canadian Lender” means each financial institution listed on Schedule 2.01 as
a “Canadian Revolving Credit Lender”, as well as any Person that becomes a “Canadian Revolving
Credit Lender” hereunder pursuant to Section 2.16 or 10.06 and, as the context
requires, includes the Canadian Swing Line Lender.

          “Canadian Letter of Credit” means any standby letter of credit or commercial letter of
credit issued hereunder.

          “Canadian Letter of Credit Sublimit” means an amount equal to $3,000,000. The
Canadian Letter of Credit Sublimit is part of, and not in addition to, the Canadian Revolving
Credit Facility.

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

          “Canadian Loan Documents” means, collectively, (a) this Agreement, (b) the Canadian
Revolving Credit Notes, (c) the Canadian Guarantee, (d) the Canadian Collateral Documents, (e) the
Fee Letter and (f) each Issuer Document with respect to a Canadian Letter of Credit.

 

12

          “Canadian Loan Parties” means the Canadian Borrower and the Canadian Subsidiary
Guarantors.

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

          “Canadian Overadvance” has the meaning specified in Section 2.01(g).

          “Canadian Overadvance Loan” means a Canadian Revolving Credit Loan made when an
Overadvance exists or is caused by the funding thereof.

          “Canadian Payment Account” means the Canadian Dollar account and the U.S. Dollar
account of the Collateral Agent to which all monies constituting proceeds of Canadian Collateral
shall be transferred from time to time.

          “Canadian Pension Plans” means each plan, program or arrangement which is required to
be registered as a pension plan under any applicable pension benefits standards or tax statute or
regulation in Canada (or any province or territory thereof) maintained or contributed to by, or to
which there is or may be an obligation to contribute by, any Borrower or its Subsidiaries in
respect of its Canadian employees or former employees.

          “Canadian Prime Rate” means, for any day, a fluctuating rate of interest per annum
equal to the greater of (a) the rate of interest in effect for such day as determined from time to
time by CS Toronto as its “Prime Rate” and (b) the interest rate per annum equal to the sum of (i)
the BA Rate applicable to bankers’ acceptances with a term of 30 days on such day and (ii) 0.50%
per annum. The “Canadian Prime Rate” is a rate set by CS Toronto based upon various factors
including CS Toronto’s costs and desired return, general economic conditions and other factors, and
is used as a reference point for pricing some loans, which may be priced at, above, or below such
announced rate. Any change in the “Canadian Prime Rate” so determined by CS Toronto shall take
effect at the opening of business on the day specified by CS Toronto.

          “Canadian Prime Rate Loan” means any Canadian Revolving Credit Loan denominated in
Canadian Dollars bearing interest computed by reference to the Canadian Prime Rate.

          “Canadian Priority Payables” means, at any time, with respect to the Canadian
Borrowing Base:

 

13

     (a) the amount past due and owing by the Canadian Borrower and any other Canadian Loan
Party, or the accrued amount for which each of the Canadian Borrower and any other Canadian
Loan Party has an obligation to remit to a Governmental Authority or other Person pursuant
to any applicable Law, rule or regulation, in respect of (i) pension fund obligations; (ii)
employment insurance; (iii) goods and services taxes, sales taxes, employee income taxes
and other taxes payable or to be remitted or withheld; (iv) workers’ compensation; (v)
vacation pay; and (vi) other like charges and demands; in each case, in respect of which
any Governmental Authority or other Person may claim a security interest, hypothec, prior
claim, lien, trust or other claim or Lien ranking or capable of ranking in priority to or
pari passu with one or more of the Liens granted in the Collateral Documents; and

     (b) the aggregate amount of any other liabilities of the Canadian Borrower and any
other Canadian Loan Parties (i) in respect of which a trust has been or may be imposed on
any Collateral to provide for payment or (ii) which are secured by a security interest,
hypothec, prior claim, pledge, lien, charge, right, or claim or other Lien on any
Collateral, in each case, pursuant to any applicable law, rule or regulation and which
trust, security interest, hypothec, prior claim, pledge, lien, charge, right, claim or Lien
ranks or is capable of ranking in priority to or pari passu with one or more of the Liens
granted in the Collateral Documents.

          “Canadian Priority Payables Reserve” means, on any date of determination for the
Canadian Borrowing Base, a reserve established from time to time by the Agents in their Credit
Judgment in such amount as the Agents may determine reflects the unpaid or unremitted Canadian
Priority Payables by the Canadian Loan Parties, which would give rise to a Lien with priority under
applicable Laws over the Lien of the Collateral Agent for the benefit of the Canadian Secured
Parties.

          “Canadian Revolving Credit Borrowing” means a borrowing consisting of simultaneous
Canadian Revolving Credit Loans of the same Type and, in the case of Eurodollar Rate Loans and BA
Rate Loans, having the same Interest Period made by each of the Canadian Revolving Credit Lenders
pursuant to Section 2.01(b) and shall be deemed to include any Canadian Overadvance Loan
and, to the extent attributed to the Canadian Collateral in the Agents’ Credit Judgment, Protective
Advance made hereunder.

          “Canadian Revolving Credit Commitment” means, as to each Canadian Revolving Credit
Lender, its obligation to (a) make Canadian Revolving Credit Loans to the Canadian Borrower
pursuant to Section 2.01(b), (b) purchase participations in Canadian L/C Obligations, and
(c) purchase participations in Canadian Swing Line Loans, in an aggregate principal amount at any
one time outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule
2.01 under the caption “Canadian Revolving Credit Commitment” or opposite such caption in the
Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as
such amount may be adjusted from time to time in accordance with this Agreement, including pursuant
to Section 2.16.

 

14

          “Canadian Revolving Credit Exposure” means, with respect to any Appropriate Lender at
any time, the Outstanding Amount of Canadian Revolving Credit Loans of such Lender plus such
Lender’s Applicable Percentage of the Outstanding Amount of Canadian L/C Obligations with respect
to Canadian Letters of Credit plus such Lender’s Applicable Percentage of the Outstanding Amount of
Canadian Swing Line Loans.

          “Canadian Revolving Credit Facility” means, at any time, the aggregate amount of the
Canadian Revolving Credit Lenders’ Canadian Revolving Credit Commitments at such time.

          “Canadian Revolving Credit Lender” means, at any time, any Lender that has a Canadian
Revolving Credit Commitment at such time.

          “Canadian Revolving Credit Loan” has the meaning specified in Section 2.01(b)
and shall be deemed to include any Canadian Overadvance Loan and, to the extent attributed to the
Canadian Collateral in the Agents’ Credit Judgment, Protective Advance made hereunder.

          “Canadian Revolving Credit Note” means a promissory note made by the Canadian Borrower
in favor of a Canadian Appropriate Lender evidencing Canadian Revolving Credit Loans or Canadian
Swing Line Loans, as the case may be, made by such Canadian Revolving Credit Lender, substantially
in the form of Exhibit C-2.

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

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

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

          “Canadian Security Agreement” means, collectively, the Security Agreements and the
deeds of hypothec delivered pursuant to Section 6.12, in each case in respect of the
Canadian Collateral, in each case in form and substance reasonably satisfactory to the
Administrative Agent and as amended.

          “Canadian Subsidiary” means any direct or indirect Subsidiary of the Specified U.S.
Borrower which is incorporated or otherwise organized under the laws of Canada or any province or
territory thereof.

 

15

          “Canadian Subsidiary Guarantor” means each Canadian Subsidiary (other than the
Canadian Borrower or any Excluded Subsidiary) and each Person that shall, at any time after the
date hereof, become a Canadian Subsidiary and execute and deliver a Canadian Guarantee pursuant to
Section 6.12; it being understood that none of the Canadian Borrower or any Canadian
Subsidiary Guarantors shall guarantee any of the U.S. Obligations.

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

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

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

          “Canadian Swing Line Sublimit” means an amount equal to $1,500,000. The Canadian
Swing Line Sublimit is part of, and not in addition to, the Canadian Revolving Credit Facility.

          “Canadian Unfunded Advances/Participations” shall mean (a) with respect to the
Administrative Agent, the aggregate amount, if any (i) made available to the Canadian Borrower on
the assumption that each Canadian Lender has made its portion of the applicable Borrowing available
to the Administrative Agent as contemplated by Section 2.12(b) and (ii) with respect to
which a corresponding amount shall not in fact have been returned to the Administrative Agent by
the Canadian Borrower or made available to the Administrative Agent by any such Canadian Lender,
(b) with respect to the Canadian Swing Line Lender, the aggregate amount, if any, of participations
in respect of any outstanding Canadian Swing Line Loan that shall not have been funded by the
Canadian Revolving Credit Facility Lenders in accordance with Section 2.04(c) and (c) with
respect to the Canadian L/C Issuer, the aggregate amount, if any, of participations in respect of
any outstanding Canadian L/C Borrowing that shall not have been funded by the Canadian Revolving
Credit Facility Lenders in accordance with Sections 2.03(c).

          “Capital Expenditures” means, with respect to any Person for any period, any
expenditure in respect of the purchase or other acquisition of any fixed or capital asset
(excluding normal replacements and maintenance which are properly charged to current operations);
provided, however, that Capital Expenditures shall not include any such
expenditures which constitute (a) a Permitted Acquisition, (b) capital expenditures relating to the
construction or acquisition of any property which has been transferred to a Person that is not a
Borrower pursuant to a sale-leaseback transaction permitted under Section 7.05(f), (c) to
the extent permitted by this Agreement, a reinvestment of the net cash proceeds of any Disposition
(other than any Dispositions under Sections 7.05(b), (f), (h), (i)
and (j)) or any insurance proceeds paid on account of the loss of or damage to the assets
being replaced, substituted, restored or repaired and the reinvestment of the net cash proceeds of
any such Disposition or such insurance proceeds, (d) the purchase price

 

16

of equipment purchased substantially contemporaneously with the trade-in or sale of used or
surplus existing equipment to the extent that the gross amount of such purchase price is reduced by
the credit granted to the seller of such equipment (or for the net proceeds of such sale) for the
equipment being traded in or sold at such time, or (f) capitalized interest relating to the
construction of any fixed assets.

          “Capitalized Leases” means all leases that have been or should be, in accordance with
GAAP, recorded as capitalized leases.

          “Capitalized Lease Obligations” means, at the time any determination thereof is to be
made, the amount of the liability in respect of a Capitalized Lease that would at that time be
required to be capitalized on a balance sheet in accordance with GAAP. Notwithstanding the
foregoing, any obligations under any sale-leaseback transaction (including the Sale-Leaseback
Transaction) in existence on the Closing Date shall not constitute Capitalized Lease Obligations
hereunder.

          “Cash Collateralize” has the meaning specified in Section 2.03(g).

          “Cash Dominion Event” means either (a) the occurrence and continuance of an Event of
Default or (b) the failure of the Loan Parties to maintain Excess Availability of at least the
greater of (i) 15% of the lesser of (A) the Total Borrowing Base and (B) the Aggregate Commitments
and (ii) $20,000,000. For purposes of this Agreement, the occurrence of a Cash Dominion Event
shall be deemed continuing (a) so long as such Event of Default is continuing and has not been
cured or waived, and/or (b) if the Cash Dominion Event arises under clause (b) above, until Excess
Availability is equal to or greater than the greater of (i) 15% of the lesser of (A) the Total
Borrowing Base and (B) the Aggregate Commitments and (ii) $20,000,000 for thirty (30) consecutive
days, in which case a Cash Dominion Event shall no longer be deemed to be continuing for purposes
of this Agreement.

          “Cash Equivalents” means any of the following types of Investments, to the extent
owned by the Borrowers or any of their Subsidiaries free and clear of all Liens (other than Liens
created under the Collateral Documents and other Liens permitted hereunder):

     (a) readily marketable obligations issued or directly and fully guaranteed or insured
by the United States of America (or Canada) or any agency or instrumentality thereof having
maturities of not more than 360 days from the date of acquisition thereof; provided
that the full faith and credit of the United States of America (or Canada, as the case may
be) is pledged in support thereof;

     (b) time deposits with, or insured certificates of deposit or bankers’ acceptances of,
any commercial bank that (i) (A) is a Lender or (B) is organized under the laws of the
United States of America, any state thereof or the District of Columbia (or Canada, as the
case may be) or is the principal banking subsidiary of a bank holding company organized
under the laws of the United States of America, any state thereof or the District of
Columbia (or Canada, as the case

 

17

may be), and is a member of the Federal Reserve System, (ii) issues (or the parent of
which issues) commercial paper rated as described in clause (c) of this definition and
(iii) has combined capital and surplus of at least $500,000,000, in each case with
maturities of not more than 365 days from the date of acquisition thereof;

     (c) commercial paper issued by any Person organized under the laws of any state of the
United States of America (or Canada, as the case may be) and rated at least “Prime-1” (or
the then equivalent grade) by Moody’s or at least “A-1” (or the then equivalent grade) by
S&P, in each case with maturities of not more than 180 days from the date of acquisition
thereof;

     (d) Investments, classified in accordance with GAAP as current assets of the Borrowers
or any of their Subsidiaries, in money market investment programs registered under the
Investment Company Act of 1940, which are administered by financial institutions that have
the highest rating obtainable from either Moody’s or S&P, and the portfolios of which are
limited solely to Investments of the character, quality and maturity described in clauses
(a), (b) and (c) of this definition;

     (e) repurchase agreements entered into by any Person with a bank or trust company
(including any of the Lenders) or recognized securities dealer having capital and surplus
in excess of $500,000,000 for direct obligations issued by or fully guaranteed by the
United States in which such Person shall have a perfected first priority security interest
(subject to no other Liens) and having, on the date of purchase thereof, a fair market
value of at least 100% of the amount of the repurchase obligations; and

     (f) readily marketable direct obligations issued by any state of the United States or
any political subdivision thereof having one of the two highest rating categories
obtainable from either S&P or Moody’s with maturities of not more than twelve (12) months
from the date of acquisition thereof;

provided that instruments equivalent to those referred to in clauses (a) through
(f) above denominated in Canadian Dollars which are comparable in credit quality and tenor
to those referred to above and customarily used by corporations for short term cash management
purposes in Canada shall be permitted to the extent reasonably required in connection with any
business conducted by any Subsidiary organized in Canada.

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

          “Cash Management Bank” means a U.S. Cash Management Bank and/or a Canadian Cash
Management Bank, as the context may require.

 

18

          “CCAA” means the Companies’ Creditors Arrangement Act (Canada), as amended or
otherwise modified from time to time and any rule or regulation issued thereunder.

          “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability
Act of 1980.

          “CERCLIS” means the Comprehensive Environmental Response, Compensation and Liability
Information System maintained by the U.S. Environmental Protection Agency.

          “CFC” means a Person that is a controlled foreign corporation under Section 957 of the
Code.

          “Change in Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change
in any law, rule, regulation or treaty or in the administration, interpretation or application
thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or
directive (whether or not having the force of law) by any Governmental Authority.

          A “Change of Control” shall be deemed to have occurred if:

     (a) Holdings at any time ceases to own 100% of the Equity Interests of the Specified
U.S. Borrower;

     (b) at any time a change of control (as defined in the documentation for any
Indebtedness in an outstanding aggregate principal amount in excess of the Threshold
Amount) shall occur;

     (c) prior to a Qualifying IPO, (i) the Equity Investors cease to own (directly or
indirectly), or to have the power to vote or direct the voting of, Equity Interests of
Holdings representing a majority of the voting power of the total outstanding voting Equity
Interests of Holdings or (ii) the Equity Investors cease to own (directly or indirectly)
Equity Interests representing a majority of the total economic interests of the Equity
Interests of Holdings;

     (d) following a Qualifying IPO, (i) the Equity Investors shall fail to own (directly
or indirectly), or to have the power to vote or direct the voting of, Equity Interests of
Holdings representing more than 35% of the voting power of the total outstanding voting
Equity Interests of Holdings, (ii) the Equity Investors cease to own (directly or
indirectly) Equity Interests representing more than 35% of the total economic interests of
the Equity Interests of Holdings or (iii) any “person” or “group” (as such terms are used
in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than
one or more Equity Investors, is or becomes the beneficial owner (as defined in Rules 13d-3
and 13d-5 under the Securities Exchange Act of 1934, as amended, except for purposes of
this clause such person or group shall be deemed to have “beneficial ownership” of all

 

19

securities that such person or group has the right to acquire, whether such right is
exercisable immediately or only after the passage of time), directly or indirectly, of
voting Equity Interests of Holdings representing more than the voting power of the voting
Equity Interests of Holdings owned by the Equity Investors; or

     (e) following a Qualifying IPO, during any period of two consecutive years,
individuals who at the beginning of such period constituted the Board of Directors of
Holdings (or, if a parent company of Holdings shall have been the subject of such
Qualifying IPO, such parent) (together with any new directors whose election to such Board
of Directors or whose nomination for election was approved by a vote of a majority of the
members of the Board of Directors of Holdings or such parent, which members comprising such
majority are then still in office and were either directors at the beginning of such period
of whose election or nomination for election was previously so approved) cease for any
reason to constitute a majority of the Board of Directors of Holdings or such parent.

     For purpose of this definition, a person shall not be deemed to have beneficial ownership of
Equity Interests subject to a stock purchase agreement, merger agreement or similar agreement until
consummation of the transactions contemplated by such agreement.

          “Closing Date” means June 9, 2008.

          “Code” means the Internal Revenue Code of 1986 as amended from time to time.

          “Collateral” means the U.S. Collateral and the Canadian Collateral.

          “Collateral Agent” means General Electric Capital Corporation, in its capacity as
“collateral agent” pursuant to Section 9.01.

          “Collateral Documents” means the U.S. Collateral Documents and the Canadian Collateral
Documents.

          “Commodities Account Control Agreements” has the meaning specified in the U.S.
Security Agreement and/or the Canadian Security Agreement, as the context may require.

          “Commitment” means a Revolving Credit Commitment.

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

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

 

20

          “Consolidated Amortization Expense” for any period means, with respect to any
specified Person for such period, the amortization expense of such Person and its Subsidiaries for
such period, determined on a consolidated basis in accordance with GAAP.

          “Consolidated Depreciation Expense” for any period means, with respect to any
specified Person for such period, the depreciation expense of such Person and its Subsidiaries for
such period, determined on a consolidated basis in accordance with GAAP.

          “Consolidated EBITDA” means, with respect to any specified Person for any period, the
Consolidated Net Income of such Person for such period and, without duplication, plus: (1)
Consolidated Income Tax Expense; plus (2) Consolidated Amortization Expense (but only to the extent
not included in Consolidated Interest Expense); plus (3) Consolidated Depreciation Expense; plus
(4) Consolidated Interest Expense; plus (5) Restructuring Expenses; plus (6) payments pursuant to
the Advisory Agreement; plus (7) Pro Forma Cost Savings; plus (8) net out-of-pocket costs and
expenses related to acquiring the inventory of a prior supplier of a company in connection with
becoming a provider to such company not to exceed $5,000,000 for any Measurement Period; plus (9)
fees and expenses payable in connection with the amendment and restatement of this Agreement, and
costs payable in connection with the establishment of any incremental facilities permitted
hereunder; plus (10) all other non-cash items reducing the Consolidated Net Income (excluding any
non-cash charge that results in an accrual of a reserve for cash charges in any future period and
excluding write-down or write-off of current assets) for such period, in each case for items (1) to
(10) above, determined on a consolidated basis in accordance with GAAP; minus (11) the aggregate
amount of all non-cash items, determined on a consolidated basis, to the extent such items
increased Consolidated Net Income for such period; provided that the sum of the
Restructuring Expenses and Pro Forma Costs Savings added to the Consolidated Net Income to compute
Consolidated EBITDA in any Measurement Period shall not exceed 15% of such Consolidated EBITDA for
such Measurement Period.

          Notwithstanding the preceding, the provision for items (2) to (9) above of a Subsidiary which
is not a Guarantor of the Specified U.S. Borrower shall be added to Consolidated Net Income to
compute Consolidated EBITDA of the Specified U.S. Borrower only to the extent (and in the same
proportion) deducted in determining Consolidated Net Income and with respect to the portion of
Consolidated Net Income attributable to any Subsidiary (other than any Loan Party) only if a
corresponding amount would be permitted at the date of determination to be distributed to the
Specified U.S. Borrower by such Subsidiary without prior approval (that has not been obtained),
pursuant to the terms of its charter and all agreements, instruments, judgments, decrees, orders,
statutes, rules and governmental regulations applicable to such Subsidiary or its stockholders.

          “Consolidated Fixed Charge Coverage Ratio” means, for any period, the ratio of (a) (i)
Consolidated EBITDA of the Specified U.S. Borrower and its Subsidiaries, less (ii) the aggregate
amount of all Capital Expenditures of or by the Specified U.S.

 

21

Borrower and its Subsidiaries made during such period, less (iii) taxes paid or payable in
cash by the Specified U.S. Borrower and its Subsidiaries with respect to such period to (b) the sum
of (i) the Consolidated Interest Expense of the Specified U.S. Borrower and its Subsidiaries for
such period paid in cash, plus (ii) the aggregate principal amount of all Mandatory Principal
Payments made during such period but excluding (A) any such payments to the extent financed through
the incurrence of additional Indebtedness (other than Loans hereunder) otherwise expressly
permitted under Section 7.02 and (B) Mandatory Principal Payments in respect of the
Existing Credit Facility in each case made on or before the Closing Date, and (iii) the aggregate
principal amount of all Restricted Payments made during such period pursuant to Section
7.06(e), for the most recently complete Measurement Period.

          “Consolidated Income Tax Expense” for any period means, with respect to any specified
Person for any period, the provision for taxes of such Person and its Subsidiaries, determined on a
consolidated basis in accordance with GAAP.

          “Consolidated Interest Expense” for any period means, with respect to any specified
Person for any period, the sum, without duplication, of the total interest expense (less interest
income) of such Person and its Subsidiaries for such period, determined on a consolidated basis in
accordance with GAAP and including without duplication,

     (a) imputed interest on Capitalized Lease Obligations,

     (b) commissions, discounts and other fees and charges owed with respect to letters of
credit securing financial obligations, bankers’ acceptance financing and receivables
financings,

     (c) the net costs associated with Hedging Obligations,

     (d) the interest portion of any deferred payment obligations,

     (e) all other non-cash interest expense,

     (f) capitalized interest,

     (g) the product of (i) all dividend payments on any series of Disqualified Equity
Interests of such Person or any Preferred Stock of any Subsidiary thereof (other than any
such Disqualified Equity Interests or any Preferred Stock held by such Person or a
wholly-owned Subsidiary thereof or to the extent paid in Qualified Equity Interests),
multiplied by (ii) a fraction, the numerator of which is one and the denominator of which
is one minus the then current combined federal, state and local statutory tax rate of such
Person and its Subsidiaries, expressed as a decimal,

     (h) all interest payable with respect to discontinued operations, and

     (i) all interest on any Indebtedness described in clause (e) or (h) of the
definition of “Indebtedness”; provided that such interest shall be included in
Consolidated Interest Expense only to the extent that the amount of the related

 

22

Indebtedness is reflected on the balance sheet of the Specified U.S. Borrower or any
Subsidiary,

less, to the extent included in such total interest expense, (A) the amortization during such
period of capitalized financing costs associated with the Transactions and (B) the amortization
during such period of other capitalized financing costs; provided, however, that,
in the case of clause (B), the aggregate amount of amortization relating to such capitalized
financing costs deducted in calculating Consolidated Interest Expense shall not exceed 5% of the
aggregate amount of the financing giving rise thereto.

Consolidated Interest Expense shall be calculated excluding unrealized gains and losses with
respect to Hedging Obligations.

          “Consolidated Net Income” means, with respect to any specified Person for any period,
the aggregate of the net income (or loss) of such Person and its Subsidiaries for such period, on a
consolidated basis, determined in accordance with GAAP; provided that there shall be
excluded from such net income (or loss) (to the extent otherwise included therein), without
duplication:

     (a) net income (or loss) of any Person (other than a Subsidiary) in which such
specified Person other than the Specified U.S. Borrower and its Subsidiaries has an
ownership interest; provided that, to the extent not previously included,
Consolidated Net Income shall be increased by the amount of dividends or distributions paid
in cash to the specified Person or a Subsidiary thereof;

     (b) except to the extent includible in Consolidated Net Income of the specified Person
pursuant to the foregoing clause (a), the net income (or loss) of any Person that accrued
prior to the date that (i) such Person becomes a Subsidiary or is merged into or
consolidated with the specified Person or a Subsidiary thereof or (ii) the assets of such
Person are acquired by the specified Person or a Subsidiary thereof;

     (c) the net income of any Subsidiary (other than any Loan Party) during such period to
the extent that the declaration or payment of dividends or similar distributions by such
Subsidiary of that income is not permitted by operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or governmental regulation
applicable to that Subsidiary during such period, except that the specified Person’s equity
in a net loss of any such Subsidiary for such period shall be included in determining
Consolidated Net Income;

     (d) any gain (or loss), together with any related provisions for taxes on any such
gain (or the tax effect of any such loss), realized during such period by such specified
Person or any of its Subsidiaries upon (i) the acquisition of any securities, or the
extinguishment of any Indebtedness, of the specified Person and any Subsidiary thereof or
(ii) any Disposition by the specified Person or any Subsidiary thereof;

 

23

     (e) gains and losses due solely to fluctuations in currency values and the related tax
effects according to GAAP;

     (f) unrealized gains and losses with respect to Hedging Obligations;

     (g) the cumulative effect of any change in accounting principles;

     (h) any amortization or write-offs of debt issuance or deferred financing costs,
premiums and prepayment penalties, and other costs and expenses, in each case, paid or
charged during such period to the extent attributable to the Transactions;

     (i) gains and losses realized upon the refinancing of any Indebtedness of the
specified Person or any Subsidiary thereof;

     (j) any extraordinary or nonrecurring gain (or extraordinary or nonrecurring loss),
together with any related provision for taxes on any such extraordinary or nonrecurring
gain (or the tax effect of any such extraordinary or nonrecurring loss), realized by the
specified Person or any Subsidiary during such period thereof;

     (k) non-cash compensation charges or other non-cash expenses or charges arising from
the grant of or issuance or repricing of Equity Interests or other equity-based awards or
any amendment or substitution of any such Equity Interests or other equity-based awards;

     (l) any non-cash goodwill or non-cash asset impairment charges subsequent to the
Closing Date;

     (m) any expenses or reserves for liabilities to the extent that the specified Person
or any Subsidiary thereof is entitled to indemnification therefor under binding agreements;
provided that any liabilities for which the specified Person or such Subsidiary is
not actually indemnified shall reduce Consolidated Net Income in the period in which it is
determined that the specified Person or such Subsidiary will not be indemnified; and

     (n) so long as the specified Person or any Subsidiary file a consolidated tax return,
or are part of a consolidated group for tax purposes, with Holdings or any other holding
company, the excess of (i) the Consolidated Income Tax Expense for such period over (ii)
all tax payments payable for such period by the specified Person and the Subsidiaries
thereof to Holdings or such other holding company under a tax sharing agreement or
arrangement.

     For purposes of this definition of “Consolidated Net Income,” “nonrecurring” means, with
respect to any cash gain or loss, any gain or loss as of any date that is not reasonably likely to
recur within the two years following such date; provided that if there was a gain or loss
similar to such gain or loss within the two years preceding such date, such gain or loss shall not
be deemed nonrecurring.

 

24

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

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

          “Covenant Trigger Event” means, at any time, either (a) the occurrence and continuance
of an Event of Default or (b) the failure of the Loan Parties to maintain Excess Availability of at
least the greater of (i) 15% of the lesser of (A) the Total Borrowing Base and (B) the Aggregate
Commitments and (ii) $20,000,000. For purposes of this Agreement, the occurrence of a Covenant
Trigger Event shall be deemed continuing (a) so long as such Event of Default is continuing and has
not been cured or waived and/or (b) if the Covenant Trigger Event arises under clause (b) above,
until Excess Availability is equal to or greater than the greater of (i) 15% of the lesser of (A)
the Total Borrowing Base and (B) the Aggregate Commitments and (ii) $20,000,000 for thirty
(30) consecutive days, in which case a Covenant Trigger Event shall no longer be deemed to be
continuing for purposes of this Agreement. For purposes of determining whether a Covenant Trigger
Event shall have occurred and is continuing, no greater than 25% of Excess Availability shall be
composed of Canadian Excess Availability and no greater than 25% of the Aggregate Commitments shall
be composed of Commitments of Canadian Lenders.

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

          “Credit Judgment” means the Agents’ commercially reasonable judgment exercised in good
faith, based upon their consideration of any factor that they reasonably believe (a) could
materially adversely affect the quantity, quality, mix or value of Collateral (including any
Applicable Law that may inhibit collection of an Account), the enforceability or priority of the
Collateral Agent’s Liens, or the amount that the Agents and the Lenders could receive in
liquidation of any Collateral; (b) suggests that any collateral report or financial information
delivered by any Loan Party is incomplete, inaccurate or misleading in any material respect;
(c) materially increases the likelihood of any Insolvency Proceeding involving a Loan Party; or (d)
creates or could result in an Event of Default. In exercising such judgment, the Agents may
consider any factors that could materially increase the credit risk of lending to the Borrowers on
the security of the Collateral.

          “CS Toronto” has the meaning specified in the introductory paragraph hereto.

          “Debtor Relief Laws” means the Bankruptcy Code of the United States, the BIA, the CCAA
and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency,

 

25

reorganization, or similar debtor relief Laws of the United States, Canada or other applicable
jurisdictions from time to time in effect and affecting the rights of creditors generally.

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

          “Default Rate” means (a) when used with respect to Obligations other than Letter of
Credit Fees, an interest rate equal to (i) the Base Rate, Canadian Base Rate or Canadian Prime
Rate, as applicable plus (ii) the Applicable Rate, if any, applicable to Base Rate Loans, Canadian
Base Rate Loans or Canadian Prime Rate Loans, as the case may be, under the Revolving Credit
Facility plus (iii) 2% per annum; provided, however, that with respect to a
Eurodollar Rate Loan or a BA Rate Loan, the Default Rate shall be an interest rate equal to the
interest rate (including any Applicable Rate) otherwise applicable to such Loan plus 2% per annum
and (b) when used with respect to Letter of Credit Fees, a rate equal to the Applicable Rate plus
2% per annum.

          “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the
Revolving Credit Loans, participations in L/C Obligations 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, (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 (c) has been deemed insolvent or become the subject
of a bankruptcy or insolvency proceeding.

          “Deposit Account Control Agreements” has the meaning specified in the U.S. Security
Agreement and/or the Canadian Security Agreement, as the context may require.

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

          “Disqualified Equity Interests” means any Equity Interest which, by its terms (or by
the terms of any security or other Equity Interests into which it is convertible or for which it is
exchangeable), or upon the happening of any event or condition (a) matures or is mandatorily
redeemable (other than solely for Equity Interests (other than Disqualified Equity Interests)),
pursuant to a sinking fund obligation or otherwise, (b) is redeemable at the option of the holder
thereof, in whole or in part, (c) provides for the scheduled payments of dividends in cash, or (d)
is or becomes convertible into or exchangeable for Indebtedness or any other Equity Interests that
would constitute Disqualified Equity Interests, in each case, prior to the date that is ninety one
(91) days after the Maturity Date; provided that if such Equity Interest is issued to any
employee or

 

26

to any plan for the benefit of employees of Holdings, the Specified U.S. Borrower or any of
its Subsidiaries or by any such plan to such employees, such Equity Interest shall not constitute a
Disqualified Equity Interest solely because it may be required to be repurchased by Holdings, the
Specified U.S. Borrower or such Subsidiary in order to satisfy applicable statutory or regulatory
obligations; and provided further that any Equity Interest that would constitute a
Disqualified Equity Interest solely because the holders thereof have the right to require Holdings
or the Specified U.S. Borrower to repurchase such Equity Interest upon the occurrence of a change
of control or an asset sale shall not constitute a Disqualified Equity Interest if the terms of
such Equity Interest provide that Holdings or the Specified U.S. Borrower may not repurchase or
redeem any such Equity Interest pursuant to such provisions prior to the repayment in full of the
Obligations.

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

          “Dollar Equivalent” means, at any time, (a) with respect to any amount denominated in
Dollars, such amount, and (b) with respect to any amount denominated in any other currency, the
equivalent amount thereof in Dollars as determined by the Administrative Agent or the L/C Issuers,
as the case may be, at such time on the basis of the Spot Rate in accordance with Section
1.07.

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

          “Dominion Account” means any Deposit Account of a Loan Party at the Collateral Agent
or its Affiliates or branches or another bank acceptable to the Collateral Agent, in each case
which is subject to a Deposit Account Control Agreement and a lockbox or other similar arrangement
in accordance with Section 6.17(a)(iv).

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

          “Eligible Collateral” means, collectively, Eligible Inventory and Eligible
Receivables.

          “Eligible In-Transit Inventory” means, at any time, without duplication of other
Eligible Inventory, Inventory:

     (a) which has been shipped for receipt by any Loan Party within forty-five (45) days
of the date of shipment, but which has not yet been delivered to or on behalf of such Loan
Party;

     (b) for which the purchase order is in the name of a Loan Party and title has passed
to such Loan Party;

     (c) which is insured in accordance with the terms of this Agreement; and

 

27

     (d) which otherwise would constitute Eligible Inventory.

          “Eligible Inventory”  means Inventory of the Loan Parties subject to the
Lien of the Collateral Documents, the value of which shall be determined by taking into
consideration, among other factors, the lowest of its cost and its book value determined in
accordance with GAAP and excluding any portion of cost attributable to intercompany profit among
the Loan Parties and their Affiliates; provided, however, that, subject to the
ability of the Agents to establish other criteria of ineligibility in their Credit Judgment or
modify the criteria established below, unless otherwise approved by the Agents in their Credit
Judgment, none of the following classes of Inventory shall be deemed to be Eligible Inventory:

     (a) Inventory that is obsolete, unusable or otherwise unavailable for sale;

     (b) Inventory consisting of promotional, marketing, packaging or shipping materials
and supplies;

     (c) Inventory that fails to meet all standards imposed by any Governmental Authority
having regulatory authority over such Inventory or its use or sale;

     (d) Inventory (i) with respect to the U.S. Borrowing Base, located outside the United
States and (ii) with respect to the Canadian Borrowing Base, located outside of Canada;

     (e) Inventory that is located on premises owned, leased or rented by a Person that is
not a Loan Party, or is placed on consignment; provided that Inventory placed on
consignment with an aggregate book value of up to $15,000,000 shall consist of Eligible
Inventory if such Inventory is clearly segregated from all Inventory of such Person, all
UCC and PPSA filings deemed necessary or desirable by the Agents have been made, notice has
been given to any secured lender of such Person, and a reasonably satisfactory Lien Waiver
has been delivered to Agents by such Person;

     (f) Inventory with respect to which the representations and warranties set forth in
this Agreement, in the U.S. Security Agreement or in the Canadian Security Agreement
applicable to Inventory are not correct;

     (g) Inventory in respect of which the U.S. Security Agreement or the Canadian Security
Agreement, as applicable, after giving effect to the related filings of financing
statements that have then been made, if any, does not or has ceased to create a valid and
perfected first priority Lien or security interest in favor of the Collateral Agent, on
behalf of the applicable Secured Parties, securing the applicable Obligations;

     (h) it is not either (i) otherwise acceptable to or (ii) subject to a reserve
acceptable to, the Agents, in their Credit Judgment; and

 

28

     (i) in-transit Inventory other than Eligible In-Transit Inventory with an aggregate
book value of up to $5,000,000.

If the Agents deem Inventory ineligible in their Credit Judgment (and not based upon the criteria
set forth above), then the Agents shall give the Borrower Agent two (2) Business Days’ prior notice
thereof (unless an Event of Default exists, in which event no notice shall be required).

          “Eligible Receivables” means Accounts of the Loan Parties subject to the Lien of the
Collateral Documents, the value of which shall be determined by taking into consideration, among
other factors, their book value determined in accordance with GAAP, net of any returns, rebates,
discounts (calculated on the shortest terms), credits, allowances or Taxes (including sales, excise
or other taxes) that have been or could be claimed by the Account Debtor or any other Person;
provided, however, that, subject to the ability of the Agents to establish other
criteria of ineligibility in their Credit Judgment or modify the criteria established below, unless
otherwise approved by the Agents in their Credit Judgment, none of the following classes of
Accounts shall be deemed to be Eligible Receivables:

     (a) Accounts that (i) do not arise out of sales of goods or rendering of services in
the ordinary course of the Borrowers’ or the relevant Subsidiaries’ business, (ii) are not
evidenced by an invoice or other documentation satisfactory to the Agents, (iii) are
contingent upon any Loan Party’s completion of any further performance or (iv) relate to
payments of interest;

     (b) Accounts payable other than in Dollars or, in the case of Canadian Loan Parties,
Dollars or Canadian Dollars, or that are otherwise on terms other than those normal or
customary in the Borrowers’ or the relevant Subsidiaries’ business;

     (c) Accounts arising out of a sale made or services rendered by any Borrower to a
Subsidiary of any Borrower or an Affiliate of any Borrower or to a Person controlled by an
Affiliate of any Borrower (including any employees, officers, directors or stockholders of
such Borrower);

     (d) Accounts (i) more than 90 days past the original invoice date, (ii) more than 60
days past the original due date (other than up to $7,500,000 of Accounts not more than 75
days past the original due date) or (iii) which has been written off the books of such Loan
Party or otherwise designated as uncollectible;

     (e) Accounts owing from any Person from which an aggregate amount of more than 50% of
the Accounts owing therefrom is more than 90 days past original invoice date or more than
60 days past the date due;

     (f) Accounts owing from any Person that exceed 20% of the net amount of all Eligible
Receivables, but only to the extent of such excess;

 

29

     (g) Accounts owing from any Person that (i) has disputed liability for any Account
owing from such Person or has been placed on credit hold due to past due balances or
(ii) has otherwise asserted any claim, demand or liability against a Borrower or any of its
Subsidiaries, whether by action, suit, counterclaim or otherwise;

     (h) Accounts owing from any Person that shall take or be the subject of any action or
proceeding of a type described in Section 8.01(f);

     (i) Accounts (i) owing from any Person that is also a supplier to or creditor of a
Borrower or any of its Subsidiaries unless such Person has waived any right of setoff in a
manner acceptable to the Agents, (ii) representing any manufacturer’s or supplier’s
credits, discounts, incentive plans or similar arrangements entitling a Borrower or any of
its Subsidiaries to discounts on future purchase therefrom, (iii) in respect of which the
related invoice(s) has been reversed;

     (j) Accounts arising out of sales to account debtors outside the United States and
Canada, unless such Accounts are fully backed by an irrevocable letter of credit on terms,
and issued by a financial institution, acceptable to the Agents and such irrevocable letter
of credit is in the possession of the Collateral Agent;

     (k) Accounts arising out of sales on a bill-and-hold, cash in advance or cash on
delivery payment terms, guaranteed sale, sale-or-return, sale on approval or consignment
basis or subject to any right of return, setoff or charge back or Accounts representing any
unapplied cash;

     (l) Accounts owing from an account debtor that is an agency, department or
instrumentality of the United States or any state thereof or Canada or any province or
territory thereof unless the applicable Borrower or its relevant Subsidiary shall have
satisfied the requirements of the Assignment of Claims Act of 1940, or the Financial
Administration Act (Canada) and any similar state, provincial or territorial legislation
and the Agents are satisfied as to the absence of setoffs, counterclaims and other defenses
on the part of such account debtor;

     (m) Accounts with respect to which the representations and warranties set forth in
this Agreement or in the Security Agreement applicable to Accounts are not correct;

     (n) Accounts in respect of which the applicable Security Agreement, after giving
effect to the related filings of financing statements that have then been made, if any,
does not or has ceased to create a valid and perfected first priority lien or security
interest in favor of the Collateral Agent, on behalf of the Secured Parties, securing the
Obligations;

     (o) Accounts that fail to meet all standards imposed by any Governmental Authority
having regulatory authority over such Account;

 

30

     (p) Accounts (i) for which goods giving rise to such Account have not been shipped to
the Account Debtor or for which the services giving rise to such Account have not been
performed or if such Account was invoiced more than once and (ii) with respect to which any
check or other instrument of payment has been uncollected for any reason; and

     (q) it is not either (i) otherwise acceptable to or (ii) subject to a reserve
acceptable to, the Agents, in their Credit Judgment.

If the Agents deem Accounts ineligible in their Credit Judgment (and not based upon the criteria
set forth above), then the Agents shall give the Borrower Agent two (2) Business Days’ prior notice
thereof (unless an Event of Default exists, in which event no notice shall be required).

          “Environmental Laws” means any and all federal, state, provincial, territorial,
municipal, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders,
decrees, permits, licenses, and the common law relating to pollution or the protection of the
environment (including ambient air, indoor air, surface wastes, groundwater, land and subsurface
strata), human health and safety and natural resources including those related to Release or threat
of Release, or exposure to, or generation, storage, treatment, transport, handling, distribution or
disposal of Hazardous Materials.

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

          “Environmental Permit” means any permit, approval, identification number, license or
other authorization required under any Environmental Law.

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

 

31

          “Equity Investors” means the Sponsor, the Management Shareholders, the other
equityholders of Ply Gem Prime Holdings, Inc. and their respective Affiliates and Related Parties
as of the Closing Date.

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

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

          “ERISA Event” means (a) (i) the occurrence of a Reportable Event with respect to a
Pension Plan or (ii) the requirements of Section 4043(b) of ERISA apply with respect to a
contributing sponsor, as defined in Section 4001(a)(13) of ERISA, of a Pension Plan, and an event
described in paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably
expected to occur with respect to such Pension Plan within the following 30 days; (b) a withdrawal
by the Borrowers or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during
a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a
cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a
complete or partial withdrawal by the Borrowers or any ERISA Affiliate from a Multiemployer Plan or
notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent
to terminate, the treatment of a Plan amendment as a termination under Section 4041 or 4041A of
ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer
Plan; (e) an event or condition which constitutes grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer
Plan; (f) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due
but not delinquent under Section 4007 of ERISA, upon the Borrowers or any ERISA Affiliate; (g) the
withdrawal by any Loan Party or any ERISA Affiliate from a Pension Plan that is a multiple employer
or other plan described in Section 4064(a) of ERISA during a plan year for which it was a
substantial employer, as defined in Section 4001(a)(2) of ERISA; (h) the conditions for imposition
of a lien under Section 303(k) of ERISA or other applicable Laws shall have been met with respect
to any Pension Plan or Canadian Pension Plan; or (i) a determination that any Pension Plan is in
“at risk” status (within the meaning of Section 303 of ERISA).

          “Eurodollar Rate” means, for any Interest Period with respect to a Eurodollar Rate
Loan, an interest rate per annum equal to the product of (a) the greater of (x) 2% per annum and
(y) the rate per annum determined by Credit Suisse, at approximately 11:00 a.m. (London time) on
the date which is two Business Days prior to the beginning of such Interest Period (as specified in
the applicable Committed Loan Notice) by reference to the British Bankers’ Association Interest
Settlement Rates for deposits in Dollars (as set forth by any service which has been nominated by
the British Bankers’ Association as an authorized information vendor for the purpose of displaying
such rates) for a period equal to such Interest Period, provided that, to the extent that
an interest rate is not ascertainable pursuant to the foregoing provision of this definition, the

 

32

“Eurodollar Rate” shall be the interest rate per annum, determined by Credit Suisse to be the
average of the rates per annum at which deposits in Dollars are offered for such relevant Interest
Period to major banks in the London interbank market in London, England by Credit Suisse at
approximately 11:00 a.m. (London time) on the date which is two Business Days prior to the
beginning of such Interest Period and (b) Statutory Reserves.

          “Eurodollar Rate Loan” means a Revolving Credit Loan that bears interest at a rate
based on the Eurodollar Rate.

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

          “Excess Availability” means the sum of U.S. Excess Availability and Canadian Excess
Availability.

          “Excluded Accounts” has the meaning specified in the U.S. Security Agreement and/or
the Canadian Security Agreement, as the context may require.

          “Excluded Subsidiary” means, on any date, any Subsidiary of the Specified U.S.
Borrower that has less than $100,000 in total assets; (ii) which does not have any Indebtedness
(including by way of Guarantee) in respect of money borrowed (it being understood, without
limitation to the foregoing, that in no event shall any Subsidiary that provides a Guarantee of the
Senior Secured Notes be an Excluded Subsidiary), and (iii) which is not engaged in any substantial
business activities.

          “Excluded Taxes” means, with respect to any Agent, any Lender, any L/C Issuer or any
other recipient of any payment to be made by or on account of any obligation of a Borrower
hereunder, (a) taxes imposed on or measured by its overall net income or capital (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 or any similar
tax imposed by any other jurisdiction described in clause (a) above, (c) any backup
withholding tax that is required by the Code to be withheld from any amounts payable under this
Agreement, and (d) in the case of a Foreign Lender (other than an assignee pursuant to a request by
the Borrower Agent under Section 10.13 and other than an assignee Lender pursuant to a CAM
Exchange under Section 8.04), any United States withholding tax that (i) is required to be
imposed on amounts payable to such Foreign Lender pursuant to the Laws in force at the time such
Foreign Lender becomes a party hereto (or designates a new Lending Office) or (ii) is attributable
to such Foreign Lender’s failure or inability (other than as a result of a Change in Law) to comply
with clause (B) of Section 3.01(e)(ii), except to the extent that such Foreign
Lender (or its assignor, if any) was entitled, at the time of designation of a new Lending Office
(or assignment), to receive additional amounts from the Borrowers with respect to such withholding
tax pursuant to Section 3.01(a)(ii) or (iii).

 

33

          “Executive Order” has the meaning specified in Section 5.23(a).

          “Existing Credit Agreement” means that certain Fifth Amended and Restated Credit
Agreement, dated as of April 5, 2007, as amended, among the Borrowers, Holdings, UBS AG, Stamford
Branch, as administrative agent and collateral agent and the lender parties and other agents party
thereto.

          “Existing Letters of Credit” means the letters of credit listed on
Schedule 1.01 to the Original Credit Agreement and outstanding on the Closing Date.

          “Facility” means the U.S. Revolving Credit Facility and/or the Canadian Revolving
Credit Facility, as the context may require.

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

          “Fee Letter” means (a) the letter agreement, dated June 2, 2008, among the Specified
U.S. Borrower, the Administrative Agent and the Bookrunner and (b) the letter agreement, dated June
3, 2008, between the Specified U.S. Borrower and the Collateral Agent.

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

          “Foreign Plan” means any employee benefit plan, program, policy, arrangement or
agreement maintained or contributed to by, or entered into with, the Specified U.S. Borrower or any
Subsidiary with respect to employees employed outside the United States.

          “Foreign Subsidiary” means any direct or indirect Subsidiary of the Specified U.S.
Borrower that is not a Domestic Subsidiary.

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

 

34

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

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

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

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

 

35

          “Guarantors” means, collectively, Holdings, the Specified U.S. Borrower, the
Subsidiaries of the Specified U.S. Borrower listed on Schedule 6.12 and each other
Subsidiary of the Specified U.S. Borrower that shall be required to execute and deliver a guaranty
or guaranty supplement pursuant to Section 6.12.

          “Guaranties” means the U.S. Guaranty and the Canadian Guarantee.

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

          “Hedge Bank” means any Person that, at the time it enters into a Swap Contract
permitted under Article VI or VII, is an Agent or a Lender or an Affiliate of an
Agent or a Lender, in its capacity as a party to such Swap Contract.

          “Hedging Obligations” means, with respect to any specified Person, the obligations of
such Person under:

     (a) interest rate swap agreements, interest rate cap agreements, interest rate collar
agreements and other agreements or arrangements designed for the purpose of fixing, hedging
or swapping interest rate risk;

     (b) commodity swap agreements, commodity option agreements, forward contracts and
other agreements or arrangements designed for the purpose of fixing, hedging or swapping
commodity price risk; and

     (c) foreign exchange contracts, currency swap agreements and other agreements or
arrangements designed for the purpose of fixing, hedging or swapping foreign currency
exchange rate risk.

          “Holdings” means Ply Gem Holdings, Inc.

          “Incremental Assumption Agreement” means an Incremental Assumption Agreement in form
and substance reasonably satisfactory to the Administrative Agent, among the Borrowers, the
Administrative Agent and one or more Incremental Revolving Credit Lenders.

          “Incremental Revolving Credit Commitment” means any increased or incremental Revolving
Credit Commitment provided pursuant to Section 2.16.

          “Incremental Revolving Credit Lender” means a Revolving Credit Lender with a Revolving
Credit Commitment or an outstanding Revolving Credit Loan as a result of an Incremental Revolving
Credit Commitment.

 

36

          “Indebtedness” means, as to any Person at a particular time, without duplication, all
of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

     (a) all obligations of such Person for borrowed money and all obligations of such
Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

     (b) the maximum amount of all direct or contingent obligations of such Person arising
under letters of credit (including standby and commercial), bankers’ acceptances, bank
guaranties, surety bonds and similar instruments;

     (c) net obligations of such Person under any Swap Contract;

     (d) all obligations of such Person to pay the deferred purchase price of property or
services (other than trade accounts payable in the ordinary course of business and not past
due for more than 90 days after the date on which such trade account was created);

     (e) indebtedness (excluding prepaid interest thereon) secured by a Lien on property
owned or being purchased by such Person (including indebtedness arising under conditional
sales or other title retention agreements), whether or not such indebtedness shall have
been assumed by such Person or is limited in recourse;

     (f) all Attributable Indebtedness in respect of Capitalized Leases and Synthetic Lease
Obligations of such Person and all Synthetic Debt of such Person;

     (g) all obligations of such Person to purchase, redeem, retire, defease or otherwise
make any payment in respect of any Equity Interest in such Person or any other Person or
any warrant, right or option to acquire such Equity Interest, valued, in the case of a
redeemable preferred interest, at the greater of its voluntary or involuntary liquidation
preference plus accrued and unpaid dividends; and

     (h) all Guarantees of such Person in respect of any of the foregoing;

provided that, “Indebtedness” shall not include any post-closing payment adjustments or
earn-out, non-competition or consulting obligations existing on the Closing Date or incurred in
connection with Investments permitted under Section 7.02(h) or (n) (i) if such
obligations are not required to be reflected as a liability on the balance sheet of the applicable
Person or (ii) if at the time of such Investment, the Specified U.S. Borrower was able to satisfy
the tests in Section 7.02(h) or (n), as applicable, after giving pro forma effect
to the maximum possible payment that could result from such adjustment, earn-out or other
obligation as if paid on the date of consummation of such Investment (as certified to the
Administrative Agent in reasonable detail by a Responsible Officer of the Borrower).

 

37

          For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any
partnership or joint venture (other than a joint venture that is itself a corporation or limited
liability company) in which such Person is a general partner or a joint venturer, unless such
Indebtedness is expressly made non-recourse to such Person. The amount of any net obligation under
any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such
date.

          “Indemnified Taxes” means Taxes other than Excluded Taxes.

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

          “Information” has the meaning specified in Section 10.07.

          “Information Memorandum” means the information memorandum intended to be used by the
Bookrunner in connection with the syndication of the Commitments.

          “Initial Borrowing Base Certificate” means the first Borrowing Base Certificate
delivered by the Borrower Agent to the Agents pursuant to
Section 6.01(e) after completion
of the Required Audit and Appraisal.

          “Intellectual Property Security Agreements” means the U.S. Intellectual Property
Security Agreement and the Canadian Intellectual Property Security Agreement.

          “Intercompany Note” means an intercompany note, substantially in the form of
Exhibit I, executed by the Specified U.S. Borrower and each of its Subsidiaries and
endorsed in blank by each of the U.S. Loan Parties.

          “Intercreditor Agreement” means the Lien Subordination and Intercreditor Agreement
dated as of the Closing Date, among the Collateral Agent, on behalf of the U.S. Secured Parties,
and the Trustee, on behalf of the “Noteholder Secured Parties” (as defined therein), Holdings and
the U.S. Loan Parties.

          “Interest Payment Date” means, (a) as to any Eurodollar Rate Loan or BA Rate Loan, the
last day of each Interest Period applicable to such Loan and the Maturity Date of the Facility
under which such Loan was made; provided, however, that if any Interest Period for
a Eurodollar Rate Loan or a BA Rate Loan exceeds 3 months, the respective dates that fall every 3
months after the beginning of such Interest Period shall also be Interest Payment Dates; and (b) as
to any Base Rate Loan, Canadian Base Rate Loan, Canadian Prime Rate Loan or Swing Line Loan, the
first Business Day of each April, July, October and January and the Maturity Date of the Facility
under which such Loan was made (with Swing Line Loans being deemed made under the Revolving Credit
Facility for purposes of this definition).

          “Interest Period” means, as to each Eurodollar Rate Loan and BA Rate Loan, the period
commencing on the date such Eurodollar Rate Loan or BA Rate Loan is disbursed or converted to or
continued as a Eurodollar Rate Loan or BA Rate Loan, and ending on the date 1, 2, 3 or 6 months
thereafter, as selected by a Borrower in its

 

38

Committed Loan Notice or such other period that is 365 days or less requested by a Borrower
and consented to by all the Appropriate Lenders; provided that:

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

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

     (c) no Interest Period shall extend beyond the Maturity Date of the Facility under
which such Loan was made.

          “Inventory” has the meaning specified in the UCC or the PPSA, as applicable, and shall
include all goods intended for sale or lease by a Loan Party, or for display or demonstration; all
work in process, all raw materials, and other materials and supplies of every nature and
description used or which might be used in connection with the manufacture, printing, packing,
shipping, advertising, selling, leasing or furnishing such goods or otherwise used or consumed in
such Loan Party’s business (but excluding Equipment).

          “Investment” means, as to any Person, any direct or indirect acquisition or investment
by such Person, whether by means of (a) the purchase or other acquisition of Equity Interests of
another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of,
or purchase or other acquisition of any other debt or interest in, another Person, or (c) the
purchase or other acquisition (in one transaction or a series of transactions) of assets of another
Person that constitute a business unit or all or a substantial part of the business of, such
Person. For purposes of covenant compliance, the amount of any Investment shall be the amount
actually invested, without adjustment for subsequent increases or decreases in the value of such
Investment.

          “IP Rights” has the meaning specified in Section 5.17.

          “IP Security Agreement Supplement” means a supplement delivered in connection with any
Intellectual Property Security Agreement, in each case in form and substance reasonably
satisfactory to the Collateral Agent.

          “IRS” means the United States Internal Revenue Service.

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

          “Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit
Application, and any other document, agreement and instrument entered into by

 

39

an L/C Issuer and a Borrower (or any Subsidiary) or in favor of such L/C Issuer and relating
to such Letter of Credit.

          “Junior Financing” has the meaning specified in Section 7.14.

          “Junior Financing Documentation” means the 2012 Senior Subordinated Notes, the 2012
Senior Subordinated Notes Indenture and any documentation governing any other Junior Financing.

          “Laws” means, collectively, all international, foreign, federal, state, provincial,
territorial, municipal and local statutes, treaties, rules, guidelines, regulations, ordinances,
codes and administrative or judicial precedents or authorities, including the interpretation or
administration thereof by any Governmental Authority charged with the enforcement, interpretation
or administration thereof, and all applicable administrative orders, directed duties, requests,
licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each
case having the force of law.

          “L/C Advance” a U.S. L/C Advance and/or a Canadian L/C Advance, as the context may
require.

          “L/C Borrowing” means a U.S. L/C Borrowing and/or a Canadian L/C Borrowing, as the
context may require.

          “L/C Credit Extension” means a U.S. L/C Credit Extension and/or a Canadian L/C Credit
Extension, as the context may require.

          “L/C Issuer” means the U.S. L/C Issuer and/or the Canadian L/C Issuer, as the context
may require.

          “L/C Obligations” means the U.S. L/C Obligations and/or the Canadian L/C Obligations,
as the context may require.

          “Lender” means a U.S. Lender and/or a Canadian Lender, as the context may require.

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

          “Letter of Credit” means a U.S. Letter of Credit and/or a Canadian Letter of Credit,
as the context may require.

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

 

40

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

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

          “Letter of Credit Sublimit” means the U.S. Letter of Credit Sublimit and/or the
Canadian Letter of Credit Sublimit, as the context may require.

          “License” means any license or agreement under which a Loan Party is authorized to use
IP Rights in connection with any manufacture, marketing, distribution or disposition of Collateral,
any use of property or any other conduct of its business.

          “Licensor” means any Person from whom a Loan Party obtains the right to use any IP
Rights.

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

          “Lien Waiver” means an agreement, in form and substance reasonably satisfactory to the
Collateral Agent, by which (a) for any personal property Collateral located on leased premises, the
lessor waives or subordinates any Lien it may have on the Collateral, and agrees to permit the
Collateral Agent to enter upon the premises and remove the Collateral or to use the premises for an
agreed upon period of time to store or dispose of the Collateral; (b) for any Collateral held by a
warehouseman, processor, shipper, customs broker or freight forwarder, such Person waives or
subordinates any Lien it may have on the Collateral, agrees to hold any documents in its possession
relating to the Collateral as agent for the Collateral Agent, and agrees to deliver the Collateral
to the Collateral Agent upon request; and (c) for any Collateral held by a repairman, mechanic or
bailee, such Person acknowledges the Collateral Agent’s Lien, waives or subordinates any Lien it
may have on the Collateral, and agrees to deliver the Collateral to the Collateral Agent upon
request.

          “Loan” means a U.S. Loan and/or a Canadian Loan.

          “Loan Documents” means the U.S. Loan Documents and the Canadian Loan Documents.

          “Loan Parties” means, collectively, each Borrower and each Guarantor.

          “Management Shareholders” means the members of management of the Specified U.S.
Borrower or its Subsidiaries who were investors in Ply Gem Prime Holdings, Inc. on the Closing
Date.

 

41

          “Mandatory Principal Payments” means all regularly scheduled principal payments or
redemptions or similar acquisitions for value of outstanding Indebtedness for borrowed money of any
Borrower or Guarantor.

          “Material Adverse Effect” means (A) a material adverse change in, or a material
adverse effect on, the business, assets, liabilities, operations, condition (financial or
otherwise) operating results of the Specified U.S. Borrower and its Subsidiaries, taken as a whole;
(B) a material impairment of the rights and remedies of or benefits available to the Administrative
Agent or any Lender under any Loan Document, or of the ability of the Borrowers or any Guarantor to
perform its obligations under any Loan Document to which it is a party; or (C) a material adverse
effect upon the legality, validity, binding effect or enforceability against any Borrower or any
Guarantor of any Loan Document to which it is a party.

          “Material Contract” means each contract of the Specified U.S. Borrower or any of its
Subsidiaries relating to any material portion of the Accounts constituting Collateral.

          “Material Foreign Subsidiary” has the meaning specified in Section 6.12(d).

          “Material Real Estate” means any parcel of real property that is fee owned by a U.S.
Loan Party, other than any parcel of real property (i) for which the greater of the cost and the
book value is less than $2,000,000, or (ii) which property is subject to a Lien permitted by
Section 7.01(q) which prohibits the granting of a Lien to the Collateral Agent.

          “March 10-Q” means Holdings’ quarterly report on Form 10-Q filed with the SEC on
May 9, 2008.

          “Maturity Date” means, with respect to each of the U.S. Revolving Credit Facility and
the Canadian Revolving Credit Facility, the fifth anniversary of the Closing Date;
provided, however, that if the 2012 Senior Subordinated Notes shall not have been
refinanced in full on or prior to October 15, 2011 with the proceeds of Permitted Subordinated
Indebtedness or a Permitted Equity Issuance, the Maturity Date shall be October 15, 2011;
provided, further, that if such date is not a Business Day, the Maturity Date shall
be the next preceding Business Day.

          “Measurement Period” means, at any date of determination, the most recently completed
four fiscal quarters of the Specified U.S. Borrower.

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

          “Mortgage” has the meaning specified in Section 4.01(a)(vi).

          “Mortgage Policy” has the meaning specified in Section 4.01(a)(vi)(B).

 

42

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

          “NOLV Percentage” means the net orderly liquidation value of Inventory, expressed as a
percentage, expected to be realized at an orderly, negotiated sale held within a reasonable period
of time, net of all liquidation expenses, as determined from the most recent appraisal of the Loan
Parties’ Inventory performed by an appraiser and on terms satisfactory to the Agents.

          “Noteholder Priority Collateral” means the “Noteholder Collateral” (as defined in the
Intercreditor Agreement).

          “Note” means a Revolving Credit Note.

          “NPL” means the National Priorities List under CERCLA.

          “Obligations” means the U.S. Obligations and the Canadian Obligations.

          “OFAC” has the meaning specified in Section 5.23(b)(v).

          “Original Credit Agreement” means the Credit Agreement dated as of June 9, 2008, among
Holdings, the Specified U.S. Borrower, the Canadian Borrower, the Subsidiaries of the Specified
U.S. Borrower from time to time party thereto as borrowers and guarantors, each lender from time to
time party thereto, the Administrative Agent, the Collateral Agent, CS Toronto and the other agents
party thereto, as modified or supplemented prior to the Restatement Effective Date, including
pursuant to the Incremental Assumption Agreement, dated as of August 14, 2008, among, among others,
Holdings, the Borrowers, General Electric Capital Corporation, as the Incremental Revolving Credit
Lender, and the Administrative Agent.

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

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

 

43

          “Outstanding Amount” means (a) with respect to Revolving Credit Loans and Swing Line
Loans on any date, the Dollar Equivalent amount of the aggregate outstanding principal amount
thereof after giving effect to any borrowings and prepayments or repayments of Revolving Credit
Loans and Swing Line Loans, as the case may be, occurring on such date; and (b) with respect to any
L/C Obligations on any date, the Dollar Equivalent amount of such L/C Obligations on such date
after giving effect to any L/C Credit Extension occurring on such date and any other changes in the
aggregate amount of the L/C Obligations as of such date, including as a result of any
reimbursements by a Borrower of Unreimbursed Amounts. Notwithstanding the foregoing, at the time
of any Canadian Revolving Credit Borrowing, any issuance of Canadian Letters of Credit, any
Canadian L/C Borrowing or any conversion or continuation of a Canadian Loan if (a) such Borrowing,
issuance, conversion or continuation is for a Loan or Letter of Credit denominated in Canadian
dollars or (b) there are any outstanding Canadian Loans or Canadian Letters of Credit denominated
in Canadian dollars, the Administrative Agent shall calculate the Outstanding Amount based on the
Dollar Equivalent on the date of such Borrowing, conversion or continuation to determine whether
such Borrowing complies with the proviso to the first sentences of Sections 2.01(a),
(b), (c) or (d) or Sections 2.04(A)(a) or (B)(a).

          “Overadvance” means a U.S. Overadvance and/or a Canadian Overadvance, as the context
may require.

          “Overadvance Loan” means a U.S. Overadvance Loan and/or a Canadian Overadvance Loan,
as the context may require.

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

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

          “Payment Item” means each check, draft or other item of payment payable to a Loan
Party, including those constituting proceeds of any Collateral.

          “PBGC” means the Pension Benefit Guaranty Corporation (or any successor).

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

 

44

obligation to contribute, or in the case of a multiple employer or other plan described in
Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding five
plan years. For greater certainty, “Pension Plan” does not include any Canadian Pension Plan.

          “Perfection Certificate” shall mean certificates in the form of Exhibit L or
any other form approved by the Administrative Agent, as the same shall be supplemented from time to
time by a Perfection Certificate Supplement or otherwise.

          “Perfection Certificate Supplement” shall mean a perfection certificate supplement in
form and substance reasonably satisfactory to the Administrative Agent.

          “Permitted Acquired Debt” has the meaning specified in Section 7.03(r).

          “Permitted Acquisition” has the meaning specified in Section 7.02(h).

          “Permitted Encumbrances” has the meaning specified in the Mortgages.

          “Permitted Equity Issuance” means any sale or issuance of any Equity Interests (other
than Disqualified Equity Interests) of the Specified U.S. Borrower (or capital contributions in
respect thereof).

          “Permitted Refinancing” means, with respect to any Person, any modification,
refinancing, refunding, renewal or extension of any Indebtedness of such Person; provided
that (a) the principal amount (or accreted value, if applicable) thereof does not exceed the
principal amount (or accreted value, if applicable) of the Indebtedness so modified, refinanced,
refunded, renewed or extended except by an amount equal to a reasonable premium or other reasonable
amount paid, and fees and expenses reasonably incurred, in connection with such modification,
refinancing, refunding, renewal or extension and by an amount equal to any existing commitments
unutilized thereunder (to the extent such commitments could be drawn at the time of such
refinancing in compliance with this Agreement) or as otherwise permitted pursuant to Section
7.03, (b) such modification, refinancing, refunding, renewal or extension has (i) a final
maturity date equal to or later than the final maturity date of, and has a Weighted Average Life to
Maturity equal to or greater than the Weighted Average Life to Maturity of, the Indebtedness being
modified, refinanced, refunded, renewed or extended, (c) if the Indebtedness being modified,
re-financed, refunded, renewed or extended is subordinated in right of payment to the Obligations,
such modification, refinancing, refunding, renewal or extension is subordinated in right of payment
to the Obligations on terms at least as favorable to the Lenders as those contained in the
documentation governing the Indebtedness being modified, refinanced, refunded, renewed or extended,
(d) the terms and conditions (including, if applicable, as to collateral) of any such modified,
refinanced, refunded, renewed or extended Indebtedness are not materially, taken as a whole, less
favorable to the Loan Parties or the Lenders than the terms and conditions of the Indebtedness
being modified, refinanced, refunded, renewed or extended or are on market terms for similar
issuances at the time of such modification, refinancing, refunding, renewal or extension, (e) such
modification, refinancing, refunding, renewal or extension

 

45

is incurred and/or guaranteed by only the Persons who are the obligors on the Indebtedness
being modified, refinanced, refunded, renewed or extended, and (f) at the time thereof, no Default
shall have occurred and be continuing.

          “Permitted Seller Notes” has the meaning specified in Section 7.03(r).

          “Permitted Subordinated Indebtedness” means any unsecured Indebtedness of the
Specified U.S. Borrower that (a) is expressly subordinated to the prior payment in full in cash of
the Obligations on terms and conditions no less favorable to the Lenders than the terms and
conditions of the 2012 Senior Subordinated Notes, (b) will not mature prior to the date that is six
months after the Maturity Date, (c) has no scheduled amortization or payments of principal prior to
the Maturity Date and (d) has covenant, default and remedy provisions no more restrictive, or
mandatory prepayment, repurchase or redemption provisions no more onerous or expansive in scope
than those contained in the 2012 Senior Subordinated Notes Indenture, taken as a whole;
provided any such Indebtedness shall constitute Permitted Subordinated Indebtedness only if
both before and after giving effect to the issuance or incurrence thereof, no Default or Event of
Default shall have occurred and be continuing.

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

          “Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of
ERISA) established by any Borrower or, with respect to any such plan that is subject to Section 412
of the Code or Title IV of ERISA, any ERISA Affiliate. For greater certainty, “Plan” does not
include any Canadian Benefit Plan or Canadian Pension Plan.

          “Platform” has the meaning specified in Section 6.02.

          “Pledged Debt” means any pledged “Pledged Debt” defined in any Security Agreement and
all other indebtedness from time to time owed to the Loan Parties (including, without limitation,
all promissory notes or instruments, if any, evidencing such indebtedness) and required to be
pledged by the Loan Parties pursuant to the Loan Documents.

          “Pledged Equity” means any pledged “Pledged Stock” defined in any Security Agreement
and all other Equity Interests from time to time acquired, owned or held by the Loan Parties
(including, without limitation, the certificates, if any, representing such Equity Interests) and
required to be pledged by the Loan Parties pursuant to the Loan Documents.

          “PPSA” means the Personal Property Security Act of Alberta; provided that, if
perfection or the effect of perfection or non-perfection or the priority of any security interest
in any Collateral is governed by the PPSA as in effect in a Canadian jurisdiction other than
Alberta, or the Civil Code of Quebec, “PPSA” means the Personal Property Security Act as in effect
from time to time in such other jurisdiction or the Civil

 

46

Code of Quebec, as applicable, for purposes of the provisions hereof relating to such
perfection, effect of perfection or non-perfection or priority.

          “Preferred Stock” means, with respect to any Person, any and all preferred or
preference stock or other equity interests (however designated) of such Person whether now
outstanding or issued after the Closing Date.

          “Pro Forma Cost Savings” means, with respect to any Measurement Period, the reductions
in costs that occurred during such Measurement Period that are (a) directly attributable to an
asset acquisition and calculated on a basis that is consistent with Article 11 of Regulation S-X
under the Securities Act of 1933, as amended, or (b) implemented, committed to be implemented or
the commencement of implementation of which has begun in good faith by the business that was the
subject of any such asset acquisition within six months of the date of the asset acquisition and
that are supportable and quantifiable by the underlying records of such business, as if, in the
case of each of clauses (a) and (b), all such reductions in costs had been effected as of the
beginning of such period, decreased by any incremental expenses incurred or to be incurred during
the Measurement Period in order to achieve such reduction in costs.

          “Protective Advance” has the meaning specified in Section 2.01(h).

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

          “Qualified Equity Interests” means any Equity Interests other than Disqualified Equity
Interests; provided that such Equity Interests shall not be deemed Qualified Equity
Interests to the extent sold or owed to a Subsidiary of the Specified U.S. Borrower or financed,
directly or indirectly, using funds (a) borrowed from the Specified U.S. Borrower or any
Subsidiary of the Specified U.S. Borrower until and to the extent such borrowing is repaid or (b)
contributed, extended, guaranteed or advanced by the Specified U.S. Borrower or any Subsidiary of
the Specified U.S. Borrower (including, without limitation, in respect of any employee stock
ownership or benefit plan).

          “Qualifying IPO” means the issuance by Holdings or any parent company that directly or
indirectly holds 100% of the issued and outstanding Equity Interests of Holdings of its common
Equity Interests in an underwritten primary public offering (other than a public offering pursuant
to a registration statement on Form S-8) pursuant to an effective registration statement filed with
the SEC in accordance with the Securities Act (whether alone or in connection with a secondary
public offering) that results in the sale or distribution of at least 15% of the total issued and
outstanding common Equity Interests of Holdings or such parent company.

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

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

 

47

          “Release” means disposing, discharging, injecting, spilling, leaking, leaching,
dumping, emitting, escaping, seeping, or placing into the environment.

          “Rent and Charges Reserve” means (a) with respect to the U.S. Borrowing Base, the
aggregate of (i) all past due rent and other amounts owing by a U.S. Loan Party to any landlord,
warehouseman, processor, repairman, mechanic, shipper, freight forwarder, broker or other Person
who possesses any Eligible Inventory or could assert a Lien on any Eligible Inventory and (ii) a
reserve equal to two months rent that could be payable to any such Person, unless it has executed a
Lien Waiver and (b) with respect to the Canadian Borrowing Base, the aggregate of (i) all past due
rent and other amounts owing by a Canadian Loan Party to any landlord, warehouseman, processor,
repairman, mechanic, shipper, freight forwarder, broker or other Person who possesses any Eligible
Inventory or could assert a Lien on any Eligible Inventory and (ii) a reserve equal to two months
rent that could be payable to any such Person, unless it has executed a Lien Waiver.

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

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

          “Required Audit and Appraisal” means the Agents’ Collateral due diligence review,
including, without limitation, completion of the borrowing base field audit and the inventory
appraisal in respect of the ABL Priority Collateral and the Canadian Collateral and completion of
the review of the cash management and accounting systems, policies and procedures of the Specified
U.S. Borrower and its Subsidiaries, with results reasonably satisfactory to the Agents.

          “Required Canadian Lenders” means, as of any date of determination, Lenders holding
more than 50% of the sum of the (a) Total Canadian Outstandings (with the aggregate amount of each
Canadian Revolving Credit Lender’s risk participation and funded participation in Canadian L/C
Obligations and Canadian Swing Line Loans being deemed “held” by such Appropriate Lender for
purposes of this definition) and (b) aggregate unused Canadian Revolving Credit Commitments;
provided that the unused Canadian Revolving Credit Commitment of, and the portion of the
Total Canadian Outstandings held or deemed held by, any Defaulting Lender shall be excluded for
purposes of making a determination of Required Canadian Lenders.

          “Required Lenders” means, as of any date of determination, Lenders holding more than
50% of the sum of the (a) Total Outstandings (with the aggregate amount of each Revolving Credit
Lender’s risk participation and funded participation in L/C Obligations and Swing Line Loans being
deemed “held” by such Appropriate Lender for purposes of this definition) and (b) aggregate unused
Revolving Credit Commitments; provided that the unused Revolving Credit Commitment of, and
the portion of the Total

 

48

Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of
making a determination of Required Lenders.

          “Required U.S. Lenders” means, as of any date of determination, Lenders holding more
than 50% of the sum of the (a) Total U.S. Outstandings (with the aggregate amount of each U.S.
Revolving Credit Lender’s risk participation and funded participation in U.S. L/C Obligations and
U.S. Swing Line Loans being deemed “held” by such Appropriate Lender for purposes of this
definition) and (b) aggregate unused U.S. Revolving Credit Commitments; provided that the
unused U.S. Revolving Credit Commitment of, and the portion of the Total U.S. Outstandings held or
deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of
Required U.S. Lenders.

          “Responsible Officer” means the chief executive officer, president, vice president,
chief financial officer, treasurer, assistant treasurer or controller of a Loan Party. Any
document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be
conclusively presumed to have been authorized by all necessary corporate, partnership and/or other
action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed
to have acted on behalf of such Loan Party.

          “Restatement Effective Date” means the Restatement Effective Date as such term is
defined in the Amendment and Restatement Agreement.

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

          “Restructuring Expenses” means expenses and charges incurred in connection with
restructuring within the Specified U.S. Borrower and/or one or more of its Subsidiaries, including
in connection with integration of acquired businesses or Persons, disposition of one or more
Subsidiaries or businesses, exiting of one or more lines of businesses and relocation or
consolidation of facilities, including severance, lease termination and other non-ordinary-course,
non-operating costs and expenses in connection therewith.

          “Revolving Credit Borrowing” means a U.S. Revolving Credit Borrowing and/or a Canadian
Revolving Credit Borrowing, as the context may require.

 

49

          “Revolving Credit Commitment” means a U.S. Revolving Credit Commitment and/or a
Canadian Revolving Credit Commitment, as the context may require.

          “Revolving Credit Facility” means the U.S. Revolving Credit Facility and/or the
Canadian Revolving Credit Facility, as the context may require.

          “Revolving Credit Lender” means a U.S. Revolving Credit Lender and/or a Canadian
Revolving Credit Lender, as the context may require.

          “Revolving Credit Loan” means a U.S. Revolving Credit Loan and/or a Canadian Revolving
Credit Loan, as the context may require.

          “Revolving Credit Note” means a U.S. Revolving Credit Note and/or a Canadian Revolving
Credit Note, as the context may require.

          “Royalties” means all royalties, fees, expense reimbursement and other amounts payable
by a Loan Party under a License.

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

          “Sale-Leaseback Documents” shall mean the Deed of Lease Agreement, by and among GP
(MULTI) L.P., a Delaware limited partnership as Landlord, and Ply Gem Industries, Inc., MWM
Holding, Inc., Great Lakes Window, Inc., MWM Manufacturers Inc., Napco Window Systems, Inc., Kroy
Building Products, Inc., Napco, Inc., Thermal-Gard, Inc., as Tenant, dated as of August 27, 2004
and the Lease Agreement by and between PG-NOM (ALBERTA) INC., an Alberta corporation, as nominee
for PG-TRUST (DE), a trust formed under the laws of the State of Delaware, as Landlord and CWD
Windows and Doors, Inc., as Tenant, dated as of August 27, 2004.

          “Sale-Leaseback Properties” shall mean the owned real properties listed on
Schedule 1.01(a).

          “Sale-Leaseback Transaction” shall mean the Sale and Leaseback of the Sale-Leaseback
Properties pursuant to the Sale-Leaseback Documents.

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

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

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

 

50

          “Secured Parties” means the U.S. Secured Parties and the Canadian Secured Parties.

          “Security Agreement” means the U.S. Security Agreement and/or the Canadian Security
Agreement, as the context may require.

          “Security Agreement Supplement” means a supplement delivered in connection with any
Security Agreement, in each case in form and substance reasonably satisfactory to the
Administrative Agent.

          “Securities Account Control Agreements” has the meaning specified in the U.S. Security
Agreement and/or the Canadian Security Agreement, as the context may require.

          “Senior Secured Notes” means the senior secured notes of the Specified U.S. Borrower
in an aggregate principal amount of up to $700,000,000 issued and sold on the Closing Date pursuant
to the Senior Secured Notes Documents and any exchange notes issued in exchange therefor, in each
case, pursuant to the Senior Secured Notes Indenture.

          “Senior Secured Notes Documents” means the Senior Secured Notes Indenture, the
Purchase Agreement dated as of June 2, 2008 among the Specified U.S. Borrower, the Initial
Purchasers (as defined therein) and the guarantors party thereto, the Senior Secured Notes and all
other agreements, instruments and other documents pursuant to which the Senior Secured Notes have
been or will be issued or otherwise setting forth the terms of the Senior Secured Notes.

          “Senior Secured Notes Indenture” means the Indenture, dated as of the Closing Date,
among the Specified U.S. Borrower, as “Issuer” and U.S. Bank National Association, as Trustee.

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

 

51

          “Specified U.S. Borrower” has the meaning specified in the introductory paragraph
hereto.

          “Sponsor” means Caxton-Iseman Capital, Inc. and its Controlled Affiliates.

          “Statutory Reserves” means a fraction (expressed as a decimal), the numerator of which
is the number one and the denominator of which is the number one minus the aggregate of the maximum
reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed
as a decimal established by the Board of Governors of the Federal Reserve System of the United
States (the “Board”) and any other banking authority, domestic or foreign, to which Credit
Suisse or any Lender (including any branch, Affiliate or other fronting office making or holding a
Loan) is subject for Eurocurrency Liabilities (as defined in Regulation D of the Board).
Eurodollar Rate Loans shall be deemed to constitute Eurocurrency Liabilities (as defined in
Regulation D of the Board) and to be subject to such reserve requirements without benefit of or
credit for proration, exemptions or offsets that may be available from time to time to any Lender
under such Regulation D. Statutory Reserves shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.

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

          “Supermajority Lenders” means, as of any date of determination, Lenders holding more
than 66 2/3% of the sum of the (a) Total Outstandings (with the aggregate amount of each Revolving
Credit Lender’s risk participation and funded participation in L/C Obligations and Swing Line Loans
being deemed “held” by such Appropriate Lender for purposes of this definition) and (b) aggregate
unused Revolving Credit Commitments; provided that the unused Revolving Credit Commitment
of, and the portion of the Total Outstandings held or deemed held by, any Defaulting Lender shall
be excluded for purposes of making a determination of Required Lenders.

          “Supplemental Collateral Agent” has the meaning specified in Section 9.05(a).

          “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond price or bond index
swaps or options or forward bond or forward bond price or forward bond index transactions, interest
rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions, currency options,
spot contracts, or

 

52

any other similar transactions or any combination of any of the foregoing (including any
options to enter into any of the foregoing), whether or not any such transaction is governed by or
subject to any master agreement, and (b) any and all transactions of any kind, and the related
confirmations, which are subject to the terms and conditions of, or governed by, any form of master
agreement published by the International Swaps and Derivatives Association, Inc., any International
Foreign Exchange Master Agreement, or any other master agreement (any such master agreement,
together with any related schedules, a “Master Agreement”), including any such obligations
or liabilities under any Master Agreement.

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

          “Swing Line Borrowing” means a U.S. Swing Line Borrowing and/or a Canadian Swing Line
Borrowing, as the context may require.

          “Swing Line Lender” means the U.S. Swing Line Lender and/or the Canadian Swing Line
Lender, as the context may require.

          “Swing Line Loan” means a U.S. Swing Line Loan and/or a Canadian Swing Line Loan, as
the context may require.

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

          “Swing Line Sublimit” means the U.S. Swing Line Sublimit and/or the Canadian Swing
Line Sublimit, as the context may require.

          “Synthetic Debt” means, with respect to any Person as of any date of determination
thereof, all obligations of such Person in respect of transactions entered into by such Person that
are intended to function primarily as a borrowing of funds (including any minority interest
transactions that function primarily as a borrowing) but are not otherwise included in the
definition of “Indebtedness” or as a liability on the consolidated balance sheet of such
Person and its Subsidiaries in accordance with GAAP.

          “Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a
so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or
possession of property (including sale and leaseback transactions), in each case, creating
obligations that do not appear on the balance sheet of such Person but which, upon the application
of any Debtor Relief Laws to such Person,

 

53

would be characterized as the indebtedness of such Person (without regard to accounting
treatment).

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

          “Threshold Amount” means $15,000,000.

          “Total Borrowing Base” means the sum of the U.S. Borrowing Base and the Canadian
Borrowing Base.

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

          “Total Canadian Revolving Credit Outstandings” means the aggregate Outstanding Amount
of all Canadian Revolving Credit Loans, Canadian Swing Line Loans and Canadian L/C Obligations.

          “Total Revolving Credit Outstandings” means the aggregate Outstanding Amount of all
Revolving Credit Loans, Swing Line Loans and L/C Obligations.

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

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

          “Total U.S. Revolving Credit Outstandings” means the aggregate Outstanding Amount of
all U.S. Revolving Credit Loans, U.S. Swing Line Loans and U.S. L/C Obligations.

          “Transaction” means, collectively, (a) the issuance and sale of the Senior Secured
Notes, (b) the entering into and performance by the U.S. Loan Parties and their applicable
Subsidiaries of the Loan Documents and the Senior Secured Notes Documents to which they are or are
intended to be a party, (c) the refinancing of certain outstanding Indebtedness of the Specified
U.S. Borrower and its Subsidiaries and the termination of all commitments with respect thereto and
(d) the payment of the fees and expenses incurred in connection with the consummation of the
foregoing.

          “Trustee” means U.S. Bank National Association, in its capacity as trustee under the
Senior Secured Notes Indenture.

          “Tuck-in Acquisitions” means one or more acquisitions made pursuant to Section
7.02(h) with aggregate consideration for all such acquisitions not to exceed $15,000,000.

 

54

          “Type” means, with respect to a Loan, its character as a Base Rate Loan, Canadian Base
Rate Loan, Canadian Prime Rate Loan, BA Rate Loan or a Eurodollar Rate Loan.

          “UCC” means the Uniform Commercial Code as in effect in the State of New York;
provided that, if perfection or the effect of perfection or non-perfection or the priority
of any security interest in any Collateral is governed by the Uniform Commercial Code as in effect
in a jurisdiction other than the State of New York, “UCC” means the Uniform Commercial Code
as in effect from time to time in such other jurisdiction for purposes of the provisions hereof
relating to such perfection, effect of perfection or non-perfection or priority.

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

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

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

          “U.S. Borrowers” means the Specified U.S. Borrower and each Domestic Subsidiary that
becomes a “Guarantor” hereunder after the Closing Date.

          “U.S. Borrowing Base” means, on any date of determination, an amount (calculated based
on the most recent Borrowing Base Certificate delivered to the Agents in accordance with this
Agreement) equal to

          (a) the sum of

     (i) 85% of the value of the Eligible Receivables of the U.S. Loan Parties, and

     (ii) 85% of the NOLV Percentage of the value of the Eligible Inventory of the
U.S. Loan Parties,

          minus

     (b) the Availability Reserve to the extent attributable to the U.S. Loan Parties in
the Agents’ Credit Judgment on such date, provided that, after the Closing Date,
the Agents may adjust the apportionment of the Availability Reserve between the U.S.
Revolving Credit Facility and the Canadian Revolving Credit Facility in their Credit
Judgment.

          “U.S. Cash Management Bank” means any Person that, at the time it enters into a Cash
Management Agreement, is an Agent, a U.S. Lender or an Affiliate of an Agent or a U.S. Lender, in
its capacity as a party to such Cash Management

 

55

Agreement, in each case in respect of services provided under such Cash Management Agreement
to a U.S. Loan Party.

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

          “U.S. Collateral Documents” means, collectively, the U.S. Security Agreement, the U.S.
Intellectual Property Security Agreement, the U.S. Mortgages, the U.S. Account Control Agreements,
each of the mortgages, collateral assignments, Security Agreement Supplements, IP Security
Agreement Supplements, security agreements, pledge agreements or other similar agreements delivered
to the Collateral Agent pursuant to Section 6.12, and each of the other agreements,
instruments or documents that creates or purports to create a Lien in favor of the Collateral Agent
for the benefit of the U.S. Secured Parties.

          “U.S. Excess Availability” means, at any time, the difference between (a) the lesser
of (i) (A) the U.S. Revolving Credit Facility and (ii) the U.S. Borrowing Base at such time, as
determined from the most recent Borrowing Base Certificate delivered by the Borrower Agent to the
Agents pursuant to Section 6.01(e) hereof minus (b) the Total U.S. Revolving Credit
Outstandings.

          “U.S. Guaranty” means, collectively, the Guarantees made by the Specified U.S.
Borrower and the U.S. Subsidiary Guarantors in favor of the U.S. Secured Parties, substantially in
the form of Exhibit F, together with each other guaranty and guaranty supplement delivered
pursuant to Section 6.12.

          “U.S. Intellectual Property Security Agreement” has the meaning specified in
Section 4.01(a)(vii).

          “U.S. L/C Advance” means, with respect to each U.S. Revolving Credit Lender, such
Lender’s funding of its participation in any U.S. L/C Borrowing in accordance with its Applicable
Percentage.

          “U.S. L/C Borrowing” means an extension of credit resulting from a drawing under any
U.S. Letter of Credit which has not been reimbursed on the date when made or refinanced as a U.S.
Revolving Credit Borrowing.

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

          “U.S. L/C Issuer” means Credit Suisse in its capacity as issuer of U.S. Letters of
Credit hereunder, or any successor issuer of U.S. Letters of Credit hereunder and, with respect to
each Existing Letter of Credit, UBS AG, Stamford Branch, in its capacity as the issuer thereof.

 

56

          “U.S. L/C Obligations” means, as at any date of determination, the aggregate amount
available to be drawn under all outstanding U.S. Letters of Credit plus the aggregate of all
Unreimbursed Amounts, including all U.S. L/C Borrowings. For purposes of computing the amount
available to be drawn under any U.S. Letter of Credit, the amount of such Letter of Credit shall be
determined in accordance with Section 1.06. For all purposes of this Agreement, if on any
date of determination a U.S. Letter of Credit has expired by its terms but any amount may still be
drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be
deemed to be “outstanding” in the amount so remaining available to be drawn.

          “U.S. Lender” means each financial institution listed on Schedule 2.01 as a
“U.S. Revolving Credit Lender”, as well as any Person that becomes a “U.S. Revolving Credit Lender”
hereunder pursuant to Section 2.16 or 10.06 and, as the context requires, includes
the U.S. Swing Line Lender.

          “U.S. Letter of Credit” means any standby letter of credit issued hereunder and shall
include the Existing Letters of Credit. A U.S. Letter of Credit may be a commercial letter of
credit or a standby letter of credit.

          “U.S. Letter of Credit Sublimit” means an amount equal to $13,500,000. The U.S.
Letter of Credit Sublimit is part of, and not in addition to, the U.S. Revolving Credit Facility.

          “U.S. Loan” means an extension of credit by a Lender to the Specified U.S. Borrower
under Article II in the form of a U.S. Revolving Credit Loan or a U.S. Swing Line Loan.

          “U.S. Loan Documents” means, collectively, (a) this Agreement, (b) the U.S. Revolving
Credit Notes, (c) the U.S. Guaranty, (d) the U.S. Collateral Documents, (e) the Intercreditor
Agreement, (f) the Fee Letter and (g) each Issuer Document with respect to a U.S. Letter of Credit.

          “U.S. Loan Party” means any Loan Party that is organized under the laws of one of the
states of the United States of America and that is not a CFC.

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

          “U.S. Overadvance” has the meaning specified in Section 2.01(f).

 

57

          “U.S. Overadvance Loan” means a U.S. Revolving Credit Loan made when an Overadvance
exists or is caused by the funding thereof.

          “U.S. Payment Account” means the account of the Collateral Agent to which all monies
constituting proceeds of U.S. Collateral shall be transferred from time to time.

          “U.S. Revolving Credit Borrowing” means a borrowing consisting of simultaneous U.S.
Revolving Credit Loans of the same Type and, in the case of Eurodollar Rate Loans, having the same
Interest Period made by each of the U.S. Revolving Credit Lenders pursuant to Section
2.01(a) and shall be deemed to include any U.S. Overadvance Loan and U.S. Protective Advance
made hereunder.

          “U.S. Revolving Credit Commitment” means, as to each U.S. Revolving Credit Lender, its
obligation to (a) make U.S. Revolving Credit Loans to the Specified U.S. Borrower pursuant to
Section 2.01(a), (b) purchase participations in U.S. L/C Obligations, and (c) purchase
participations in U.S. Swing Line Loans, in an aggregate principal amount at any one time
outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 2.01
under the caption “U.S. Revolving Credit Commitment” or opposite such caption in the Assignment and
Assumption pursuant to which such Lender becomes a party hereto, as applicable, as such amount may
be adjusted from time to time in accordance with this Agreement, including Section 2.16;
provided, that at any time that that Total Canadian Revolving Credit Outstandings exceed
100% of the Canadian Revolving Credit Commitments, the U.S. Revolving Credit Commitments shall be
temporarily reduced by the amount of such excess until such excess is reduced to zero.

          “U.S. Revolving Credit Exposure” means, with respect to any U.S. Appropriate Lender at
any time, the Outstanding Amount of such Lender’s U.S. Revolving Credit Loans plus such Lender’s
Applicable Percentage of the Outstanding Amount of U.S. L/C Obligations with respect to U.S.
Letters of Credit plus such Lender’s Applicable Percentage of the Outstanding Amount of U.S. Swing
Line Loans.

          “U.S. Revolving Credit Facility” means, at any time, the aggregate amount of the U.S.
Revolving Credit Lenders’ U.S. Revolving Credit Commitments at such time.

          “U.S. Revolving Credit Lender” means, at any time, any Lender that has a U.S.
Revolving Credit Commitment at such time.

          “U.S. Revolving Credit Loan” has the meaning specified in Section 2.01(a) and
shall be deemed to include any U.S. Overadvance Loan and U.S. Protective Advance made hereunder.

          “U.S. Revolving Credit Note” means a promissory note made by the Specified U.S.
Borrower in favor of a U.S. Appropriate Lender evidencing U.S. Revolving Credit Loans or U.S. Swing
Line Loans, as the case may be, made by such U.S. Revolving Credit Lender, substantially in the
form of Exhibit C-1.

 

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

          “U.S. Secured Hedge Agreement” means any Secured Hedge Agreement that is entered into
by and between any U.S. Loan Party and any Hedge Bank.

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

          “U.S. Security Agreement” means the U.S. Security Agreement dated as of the Closing
Date and attached as Exhibit G-1 (together with each other security agreement and security
agreement supplement delivered pursuant to Section 6.12 in respect of the U.S. Collateral,
in each case as amended).

          “U.S. Subsidiary Guarantor” means each Domestic Subsidiary (other than the Specified
U.S. Borrower and any Excluded Subsidiary) and each Person that shall, at any time after the date
hereof, become a Domestic Subsidiary.

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

          “U.S. Swing Line Lender” means Credit Suisse in its capacity as provider of U.S. Swing
Line Loans, or any successor swing line lender hereunder.

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

          “U.S. Swing Line Sublimit” means an amount equal to the lesser of (a) $13,500,000 and
(b) the U.S. Revolving Credit Facility. The U.S. Swing Line Sublimit is part of, and not in
addition to, the U.S. Revolving Credit Facility.

          “U.S. Unfunded Advances/Participations” shall mean (a) with respect to the
Administrative Agent, the aggregate amount, if any (i) made available to the U.S. Borrowers on the
assumption that each U.S. Appropriate Lender has made its portion of the applicable Borrowing
available to the Administrative Agent as contemplated by Section 2.12(b) and (ii) with
respect to which a corresponding amount shall not in fact have been returned to the Administrative
Agent by the U.S. Borrowers or made available to the Administrative Agent by any such U.S.
Appropriate Lender, (b) with respect to the U.S. Swing Line Lender, the aggregate amount, if any,
of participations in respect of any outstanding U.S. Swing Line Loan that shall not have been
funded by the U.S. Revolving Credit Lenders in accordance with Section 2.04(c) and (c) with
respect to any U.S. L/C Issuer, the aggregate amount, if any, of participations in respect of any
outstanding U.S. L/C Borrowing that shall not have been funded by the U.S. Revolving Credit Lenders
in accordance with Sections 2.03(c).

 

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          “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any
date, the number of years obtained by dividing: (i) the sum of the products obtained by
multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or
other required payments of principal, including payment at final maturity, in respect thereof, by
(b) the number of years (calculated to the nearest one-twelfth) that will elapse between such date
and the making of such payment; by (ii) the then outstanding principal amount of such Indebtedness.

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

          (a) The definitions of terms herein shall apply equally to the singular and plural forms of
the terms defined. Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include,” “includes” and
“including” shall be deemed to be followed by the phrase “without limitation.” The word
“will” shall be construed to have the same meaning and effect as the word “shall.”
Unless the context requires otherwise, (i) any definition of or reference to any agreement,
instrument or other document (including any Organization Document) shall be construed as referring
to such agreement, instrument or other document as from time to time amended, supplemented or
otherwise modified (subject to any restrictions on such amendments, supplements or modifications
set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be
construed to include such Person’s successors and assigns, (iii) the words “herein,”
“hereof” and “hereunder,” and words of similar import when used in any Loan
Document, shall be construed to refer to such Loan Document in its entirety and not to any
particular provision thereof, (iv) all references in a Loan Document to Articles, Sections,
Preliminary Statements, Exhibits and Schedules shall be construed to refer to Articles and Sections
of, and Preliminary Statements, Exhibits and Schedules to, the Loan Document in which such
references appear; provided, however, that in this Agreement all references to
Exhibits and Schedules (other than Schedule 2.01) shall be construed to refer to Exhibits
and Schedules to the Original Credit Agreement, (v) any reference to any law shall include all
statutory and regulatory provisions consolidating, amending, replacing or interpreting such law and
any reference to any law or regulation shall, unless otherwise specified, refer to such law or
regulation as amended, modified or supplemented from time to time, (vi) the words “asset”
and “property” shall be construed to have the same meaning and effect and to refer to any
and all tangible and intangible assets and properties, including cash, securities, accounts and
contract rights and (vii) any references herein to “ordinary course of business” or “ordinary
course” shall mean the ordinary course of business of the Loan Parties and their respective
Subsidiaries, consistent with past practices and undertaken in good faith.

          (b) All other terms contained in this Agreement shall have, when the context so indicates,
the meanings provided for by the UCC or the PPSA to the extent the same are used or defined
therein. For purposes of any Collateral located in the Province of Québec or charged by any deed
of hypothec (or any other Collateral Document) and for all other purposes pursuant to which the
interpretation or construction of a Collateral

 

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Document may be subject to the laws of the Province of Québec or a court or tribunal
exercising jurisdiction in the Province of Québec, (i) “personal property” shall be deemed to
include “movable property,” (ii) “real property” shall be deemed to include “immovable property”
and an “easement” shall be deemed to include a “servitude,” (iii) “tangible property” shall be
deemed to include “corporeal property,” (iv) “intangible property” shall be deemed to include
“incorporeal property,” (v) “security interest” and “mortgage” shall be deemed to include a
“hypothec,” (vi) all references to filing, registering or recording financing statements or other
required documents under the UCC or the PPSA shall be deemed to include publication under the Civil
Code of Quebec, and all references to releasing any Lien shall be deemed to include a release,
discharge and mainlevee of a hypothec, (vii) all references to “perfection” of or “perfected” Liens
shall be deemed to include a reference to the “opposability” of such Liens to third parties,
(viii) any “right of offset,” “right of setoff” or similar expression shall be deemed to include a
“right of compensation”, (ix) “goods” shall be deemed to include “corporeal movable property” other
than chattel paper, documents of title, instruments, money and securities, and (x) an “agent” shall
be deemed to include a “mandatary.”

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

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

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

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

 

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

          SECTION 1.05. Times of Day. Unless otherwise specified, all references herein to
times of day shall be references to New York City time (daylight or standard, as applicable).

          SECTION 1.06. Letter of Credit Amounts. Unless otherwise specified herein, the amount
of a Letter of Credit at any time shall be deemed to be the Dollar Equivalent of the stated amount
of such Letter of Credit in effect at such time; provided, however, that with
respect to any Letter of Credit that, by its terms or the terms of any Issuer Document related
thereto, provides for one or more automatic increases in the stated amount thereof, the amount of
such Letter of Credit shall be deemed to be the Dollar Equivalent of the maximum stated amount of
such Letter of Credit after giving effect to all such increases, whether or not such maximum stated
amount is in effect at such time.

          SECTION 1.07. Currency Equivalents Generally. Any amount specified in this Agreement
(other than in Articles II and IX) or any of the other Loan Documents to be in Dollars shall also
include the equivalent of such amount in any currency other than Dollars, such equivalent amount
thereof in the applicable currency to be determined by the Administrative Agent at such time on the
basis of the Spot Rate (as defined below) for the purchase of such currency with Dollars (including
for calculations of Excess Availability). For purposes of this Section 1.07, the “Spot
Rate” for a currency means the rate determined by the Administrative Agent to be the rate quoted by
the Person acting in such capacity as the spot rate for the purchase by such Person of such
currency with another currency through its principal foreign exchange trading office at
approximately 11:00 a.m. on the date two Business Days prior to the date of such determination;
provided that the Administrative Agent may obtain such spot rate from another financial institution
designated by the Administrative Agent if the Person acting in such capacity does not have as of
the date of determination a spot buying rate for any such currency.

ARTICLE II

The Commitments and Credit Extensions

          SECTION 2.01. The Loans. (a) U.S. Revolving Credit Borrowings. Subject to
the terms and conditions set forth herein, each U.S. Appropriate Lender severally agrees to make
loans (each such loan, a “U.S. Revolving Credit Loan”) in Dollars to the Specified U.S.
Borrower from time to time, on any Business Day during the Availability Period, in an aggregate
amount not to exceed at any time outstanding the amount of such Lender’s U.S. Revolving Credit
Commitment; provided, however, that after giving effect to any U.S. Revolving
Credit Borrowing, (i) the Total Revolving Credit Outstandings shall not exceed the lesser of (x)
the Revolving Credit Facility and

 

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(y) the Total Borrowing Base at such time, (ii) the aggregate Outstanding Amount of the U.S.
Revolving Credit Loans of any Lender, plus such U.S. Revolving Credit Lender’s Applicable
Percentage of the Outstanding Amount of all U.S. L/C Obligations, plus such U.S. Revolving Credit
Lender’s Applicable Percentage of the Outstanding Amount of all U.S. Swing Line Loans shall not
exceed such U.S. Revolving Credit Lender’s U.S. Revolving Credit Commitment and (iii) the Total
U.S. Revolving Credit Outstandings shall not exceed the lesser of (x) the U.S. Revolving Credit
Facility and (y) the U.S. Borrowing Base. Within the limits of each U.S. Revolving Credit Lender’s
U.S. Revolving Credit Commitment, and subject to the other terms and conditions hereof, the
Specified U.S. Borrower may borrow under this Section 2.01(a), prepay under
Section 2.05, and reborrow under this Section 2.01(a). U.S. Revolving Credit Loans
may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. The Borrowers and the
Lenders acknowledge the making of Loans under the U.S. Revolving Credit Facility prior to the
Restatement Effective Date under the Original Credit Agreement and agree that, to the extent
outstanding on the Restatement Effective Date, such Loans shall continue to be outstanding under
the U.S. Revolving Credit Facility pursuant to the terms and conditions of this Agreement and the
other Loan Documents.

          (b) Canadian Revolving Credit Borrowings. Subject to the terms and conditions set
forth herein, each Canadian Appropriate Lender severally agrees to make loans (each such loan, a
“Canadian Revolving Credit Loan”) in Dollars and Canadian Dollars to the Canadian Borrower
from time to time, on any Business Day during the Availability Period, in an aggregate amount not
to exceed at any time outstanding the amount of such Lender’s Canadian Revolving Credit Commitment;
provided, however, that after giving effect to any Canadian Revolving Credit
Borrowing, (i) the Total Revolving Credit Outstandings shall not exceed the lesser of (x) the
Revolving Credit Facility and (y) the Total Borrowing Base at such time, (ii) the aggregate
Outstanding Amount of the Canadian Revolving Credit Loans of any Canadian Lender, plus such
Canadian Revolving Credit Lender’s Applicable Percentage of the Outstanding Amount of all Canadian
L/C Obligations, plus such Canadian Revolving Credit Lender’s Applicable Percentage of the
Outstanding Amount of all Canadian Swing Line Loans shall not exceed such Canadian Revolving Credit
Lender’s Canadian Revolving Credit Commitment and (iii) the Total Canadian Revolving Credit
Outstandings shall not exceed the lesser of (x) the Canadian Revolving Credit Facility and (y) the
Canadian Borrowing Base. Within the limits of each Canadian Revolving Credit Lender’s Canadian
Revolving Credit Commitment, and subject to the other terms and conditions hereof, the Canadian
Borrower may borrow under this Section 2.01(b), prepay under Section 2.05, and
reborrow under this Section 2.01(b). Canadian Revolving Credit Loans denominated in
Dollars may be Canadian Base Rate Loans or Eurodollar Rate Loans, as further provided herein.
Canadian Revolving Credit Loans denominated in Canadian Dollars may be Canadian Prime Rate Loans or
BA Rate Loans, as further provided herein. The Borrowers and the Lenders acknowledge the making of
Loans under the Canadian Revolving Credit Facility prior to the Restatement Effective Date under
the Original Credit Agreement and agree that, to the extent outstanding on the Restatement
Effective Date, such Loans shall continue to be outstanding under the Canadian Revolving Credit
Facility pursuant to the terms and conditions of this Agreement and the other Loan Documents.

 

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          (c) U.S. Letter of Credit Commitment. (i) Subject to the terms and conditions set
forth herein, (A) the U.S. L/C Issuer agrees, in reliance upon the agreements of the U.S. Revolving
Credit Lenders set forth in this Section 2.01(c) and Section 2.03, (1) from time to
time on any Business Day during the period from the Closing Date until the Letter of Credit
Expiration Date, to issue U.S. Letters of Credit for the account of the Specified U.S. Borrower or
its Subsidiaries, and to amend or extend U.S. Letters of Credit previously issued by it, in
accordance with Section 2.03(a), and (2) to honor drawings under the U.S. Letters of
Credit; and (B) the U.S. Revolving Credit Lenders severally agree to participate in U.S. Letters of
Credit issued for the account of the Specified U.S. Borrower or its Subsidiaries and any drawings
thereunder; provided that after giving effect to any U.S. L/C Credit Extension with respect
to any U.S. Letter of Credit, (w) the Total Revolving Credit Outstandings shall not exceed the
lesser of (I) the Revolving Credit Facility and (II) the Total Borrowing Base at such time, (x)
the aggregate Outstanding Amount of the U.S. Revolving Credit Loans of any Lender, plus such U.S.
Revolving Credit Lender’s Applicable Percentage of the Outstanding Amount of all U.S. L/C
Obligations, plus such U.S. Revolving Credit Lender’s Applicable Percentage of the Outstanding
Amount of all U.S. Swing Line Loans shall not exceed such U.S. Revolving Credit Lender’s U.S.
Revolving Credit Commitment, (y) the Total U.S. Revolving Credit Outstandings shall not exceed the
lesser of (I) the U.S. Revolving Credit Facility and (II) the U.S. Borrowing Base and (z) the
Outstanding Amount of the U.S. L/C Obligations shall not exceed the U.S. Letter of Credit Sublimit.
Each request by the Specified U.S. Borrower for the issuance or amendment of a U.S. Letter of
Credit shall be deemed to be a representation by the Specified U.S. Borrower that the L/C Credit
Extension so requested complies with the conditions set forth in the proviso to the preceding
sentence. Within the foregoing limits, and subject to the terms and conditions hereof, the
Specified U.S. Borrower’s ability to obtain U.S. Letters of Credit shall be fully revolving, and
accordingly the Specified U.S. Borrower may, during the foregoing period, obtain U.S. Letters of
Credit to replace Letters of Credit that have expired or that have been drawn upon and reimbursed.
All Existing Letters of Credit shall be deemed to have been issued pursuant hereto, and from and
after the Closing Date shall be subject to and governed by the terms and conditions hereof. The
Borrowers and the Lenders acknowledge the issuance of Letters of Credit prior to the Restatement
Effective Date under the Original Credit Agreement and agree that, to the extent outstanding on the
Restatement Effective Date, such Letters of Credit shall continue to be outstanding pursuant to the
terms and conditions of this Agreement and the other Loan Documents. The U.S. L/C Issuer’s
Commitment to issue U.S. Letters of Credit shall automatically terminate on the earlier to occur of
(x) the date of termination of the U.S. Revolving Credit Commitments pursuant to Section
2.06, and (y) the date 30 days prior to the Maturity Date.

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

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

 

64

     (B) the expiry date of such requested Letter of Credit would occur after the
Letter of Credit Expiration Date.

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

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

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

     (C) such Letter of Credit is to be denominated in a currency other than
Dollars; or

     (D) a default of any U.S. Revolving Credit Lender’s obligations to fund under
Section 2.03(b) exists or any U.S. Appropriate Lender is at such time a
Defaulting Lender hereunder, unless the U.S. L/C Issuer has entered into reasonably
satisfactory arrangements with the Specified U.S. Borrower or such Lender to
eliminate the U.S. L/C Issuer’s risk with respect to such Lender.

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

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

          (vi) The U.S. L/C Issuer shall act on behalf of the U.S. Revolving Credit Lenders with respect
to any Letters of Credit issued by it and the documents associated therewith, and the U.S. L/C
Issuer shall have all of the benefits and immunities (A) provided to the Administrative Agent in
Article IX with respect to any acts taken or omissions suffered by the U.S. L/C Issuer in
connection with Letters of Credit issued by it or proposed to be issued by it and Issuer Documents
pertaining to such Letters of Credit

 

65

as fully as if the term “Administrative Agent” as used in Article IX included the U.S.
L/C Issuer with respect to such acts or omissions, and (B) as additionally provided herein with
respect to the U.S. L/C Issuer.

          (d) Canadian Letter of Credit Commitment. (i) Subject to the terms and conditions
set forth herein, (A) the Canadian L/C Issuer agrees, in reliance upon the agreements of the
Canadian Revolving Credit Lenders set forth in this Section 2.01(d) and Section
2.03, (1) from time to time on any Business Day during the period from the Closing Date until
the Letter of Credit Expiration Date, to issue Canadian Letters of Credit for the account of the
Canadian Borrower or any of its Canadian Subsidiaries, and to amend or extend Canadian Letters of
Credit previously issued by it, in accordance with Section 2.03(a), and (2) to honor
drawings under the Canadian Letters of Credit; and (B) the Canadian Revolving Credit Lenders
severally agree to participate in Canadian Letters of Credit issued for the account of the Canadian
Borrower or any of its Canadian Subsidiaries and any drawings thereunder; provided that
after giving effect to any Canadian L/C Credit Extension with respect to any Canadian Letter of
Credit, (w) the Total Revolving Credit Outstandings shall not exceed the lesser of (I) the
Revolving Credit Facility and (II) the Total Borrowing Base at such time, (x) the aggregate
Outstanding Amount of the Canadian Revolving Credit Loans of any Canadian Revolving Credit Lender,
plus such Canadian Revolving Credit Lender’s Applicable Percentage of the Outstanding Amount of all
Canadian L/C Obligations, plus such Canadian Revolving Credit Lender’s Applicable Percentage of the
Outstanding Amount of all Canadian Swing Line Loans shall not exceed such Canadian Revolving Credit
Lender’s Canadian Revolving Credit Commitment, (y) the Total Canadian Revolving Credit Outstandings
shall not exceed the lesser of (I) the Canadian Revolving Credit Facility and (II) the Canadian
Borrowing Base, and (z) the Outstanding Amount of the Canadian L/C Obligations shall not exceed the
Canadian Letter of Credit Sublimit. Each request by the Canadian Borrower for the issuance or
amendment of a Canadian Letter of Credit shall be deemed to be a representation by the Canadian
Borrower that the L/C Credit Extension so requested complies with the conditions set forth in the
proviso to the preceding sentence. Within the foregoing limits, and subject to the terms and
conditions hereof, the Canadian Borrower’s ability to obtain Canadian Letters of Credit shall be
fully revolving, and accordingly the Canadian Borrower may, during the foregoing period, obtain
Canadian Letters of Credit to replace Letters of Credit that have expired or that have been drawn
upon and reimbursed. The Canadian L/C Issuer’s Commitment to issue Canadian Letters of Credit
shall automatically terminate on the earlier to occur of (x) the date of termination of the
Canadian Revolving Credit Commitments pursuant to Section 2.06, and (y) the date 30 days
prior to the Maturity Date.

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

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

 

66

     (B) the expiry date of such requested Letter of Credit would occur after the
Letter of Credit Expiration Date.

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

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

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

     (C) such Letter of Credit is to be denominated in a currency other than
Dollars or Canadian Dollars; or

     (D) a default of any Canadian Revolving Credit Lender’s obligations to fund
under Section 2.03(b) exists or any Canadian Appropriate Lender is at such
time a Defaulting Lender hereunder, unless the Canadian L/C Issuer has entered into
reasonably satisfactory arrangements with the Canadian Borrower or such Lender to
eliminate the Canadian L/C Issuer’s risk with respect to such Lender.

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

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

          (e) The Canadian L/C Issuer shall act on behalf of the Canadian Revolving Credit Lenders with
respect to any Letters of Credit issued by it and the

 

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

          (f) U.S. Overadvances. If the aggregate Outstanding Amount of the U.S. Revolving
Credit Loans exceed the U.S. Borrowing Base (“U.S. Overadvance”) at any time, the excess
amount shall be payable by the U.S. Borrowers on demand by the Administrative Agent, but all such
excess U.S. Revolving Credit Loans shall nevertheless constitute U.S. Obligations secured by the
U.S. Collateral and entitled to all benefits of the Loan Documents. Unless its authority has been
revoked in writing by the Required U.S. Lenders, the Administrative Agent may require the U.S.
Revolving Credit Lenders to honor requests for U.S. Overadvance Loans and to forbear from requiring
the U.S. Borrowers to cure a U.S. Overadvance, when no other Event of Default is known to the
Administrative Agent, as long as (i) the U.S. Overadvance does not continue for more than 45
consecutive days (and no U.S. Overadvance may exist for at least five consecutive days thereafter
before further U.S. Overadvance Loans are required), and (ii) the U.S. Overadvance is not known by
the Administrative Agent to exceed, when taken together with all Canadian Overadvances and all
Protective Advances, the lesser of (x) $10,000,000 and (y) an amount equal to 10% of the Total
Borrowing Base. In no event shall U.S. Overadvance Loans be required that would cause the (A) the
aggregate Outstanding Amount of the U.S. Revolving Credit Loans of any Lender, plus such U.S.
Revolving Credit Lender’s Applicable Percentage of the Outstanding Amount of all U.S. L/C
Obligations, plus such U.S. Revolving Credit Lender’s Applicable Percentage of the Outstanding
Amount of all U.S. Swing Line Loans to exceed such U.S. Revolving Credit Lender’s U.S. Revolving
Credit Commitment or (B) the Total U.S. Revolving Credit Outstandings to exceed (x) the U.S.
Revolving Credit Facility minus (y) the Availability Reserve to the extent attributable to the U.S.
Loan Parties in the Administrative Agent’s Credit Judgment at such time. Any funding of a U.S.
Overadvance Loan or sufferance of a U.S. Overadvance shall not constitute a waiver by the
Administrative Agent or the Lenders of the Event of Default caused thereby. In no event shall any
Borrower or other Loan Party be deemed a beneficiary of this Section nor authorized to enforce any
of its terms. At the Administrative Agent’s discretion, U.S. Overadvance Loans made under this
Section 2.01(f) may be made in the form of U.S. Swing Line Loans in accordance with
Section 2.04(A).

          (g) Canadian Overadvances. If the aggregate Outstanding Amount of the Canadian
Revolving Credit Loans exceed the Canadian Borrowing Base (“Canadian Overadvance”) at any
time, the excess amount shall be payable by the Canadian Borrower on demand by the Administrative
Agent, but all such excess Canadian Revolving Credit Loans shall nevertheless constitute Canadian
Obligations secured by the Collateral and entitled to all benefits of the Loan Documents. Unless
its authority has been revoked in writing by the Required Canadian Lenders, the Administrative
Agent may require the Canadian Revolving Credit Lenders to honor requests for Canadian

 

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Overadvance Loans and to forbear from requiring the Canadian Borrower to cure a Canadian
Overadvance, when no other Event of Default is known to the Administrative Agent, as long as (i)
the Canadian Overadvance does not continue for more than 45 consecutive days (and no Canadian
Overadvance may exist for at least five consecutive days thereafter before further Canadian
Overadvance Loans are required), and (ii) the Canadian Overadvance is not known by the
Administrative Agent to exceed $1,500,000 or, when taken together with all U.S. Overadvances and
all Protective Advances, the lesser of (x) $10,000,000 and (y) 10% of the Total Borrowing Base. In
no event shall Canadian Overadvance Loans be required that would cause the (A) the aggregate
Outstanding Amount of the Canadian Revolving Credit Loans of any Canadian Revolving Credit Lender,
plus such Canadian Revolving Credit Lender’s Applicable Percentage of the Outstanding Amount of all
Canadian L/C Obligations, plus such Canadian Revolving Credit Lender’s Applicable Percentage of the
Outstanding Amount of all Canadian Swing Line Loans to exceed such Canadian Revolving Credit
Lender’s Canadian Revolving Credit Commitment or (B) the Total Canadian Revolving Credit
Outstandings to exceed (x) the Canadian Revolving Credit Facility minus (y) the Availability
Reserve to the extent attributable to the Canadian Loan Parties in the Administrative Agent’s
Credit Judgment at such time. Any funding of a Canadian Overadvance Loan or sufferance of a
Canadian Overadvance shall not constitute a waiver by the Administrative Agent or the Lenders of
the Event of Default caused thereby. In no event shall any Borrower or other Loan Party be deemed
a beneficiary of this Section nor authorized to enforce any of its terms. At the Administrative
Agent’s discretion, Canadian Overadvance Loans made under this Section 2.01(g) may be made
in the form of Canadian Swing Line Loans in accordance with Section 2.04(B).

          (h) Protective Advances. The Agents shall be authorized, in their discretion, at any
time that any conditions in Section 4.02 are not satisfied, to make U.S. Revolving Credit
Loans (any such U.S. Revolving Credit Loans made pursuant to this Section 2.01(h),
“U.S. Protective Advances”) or to cause to be made through CS Toronto as its sub-agent
Canadian Revolving Credit Loans (any such Canadian Revolving Credit Loans made pursuant to this
Section 2.01(h), “Canadian Protective Advances” and, together with the U.S.
Protective Advances, the “Protective Advances”) (a) up to an aggregate amount, when taken
together with all U.S. Overadvances and all Canadian Overadvances, the lesser of (x) $10,000,000
and (y) 10% of the Total Borrowing Base outstanding at any time, if the Agents reasonably deem such
Loans necessary or desirable to preserve or protect Collateral, or to enhance the collectibility or
repayment of Obligations; or (b) to pay any other amounts chargeable to Loan Parties under any Loan
Documents, including costs, fees and expenses. Protective Advances shall constitute Obligations
secured by the Collateral and shall be entitled to all of the benefits of the Loan Documents.
Immediately upon the making of a Protective Advance, each applicable Appropriate Lender shall be
deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Administrative
Agent a risk participation in such Protective Advance in an amount equal to the product of such
applicable Revolving Credit Lender’s Applicable Percentage times the amount of such Protective
Advance. The Agents’ determination that funding of a Protective Advance is appropriate shall be
conclusive. In no event shall Protective Advances cause the aggregate Outstanding Amount of the
Revolving Credit Loans of any Lender, plus such Lender’s Applicable

 

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Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable
Percentage of the Outstanding Amount of all Swing Line Loans to exceed such Lender’s Commitment.

          SECTION 2.02. Borrowings, Conversions and Continuations of Loans. (a) Each Revolving
Credit Borrowing, each conversion of Revolving Credit Loans from one Type to the other, and each
continuation of Eurodollar Rate Loans or BA Rate Loans shall be made upon the applicable Borrower’s
irrevocable notice to the Administrative Agent, which may be given by telephone. Each such notice
must be received by the Administrative Agent not later than 12:00 p.m. (i) three Business Days
prior to the requested date of any Borrowing of, conversion to or continuation of Eurodollar Rate
Loans or BA Rate Loans or of any conversion of Eurodollar Rate Loans or BA Rate Loans to Base Rate
Loans, Canadian Base Rate Loans or Canadian Prime Rate Loans, as the case may be, and (ii) one
Business Day prior to the requested date of any Borrowing of Base Rate Loans, Canadian Base Rate
Loans or Canadian Prime Rate Loans; provided, however, that if the applicable
Borrower wishes to request Eurodollar Rate Loans or BA Rate Loans having an Interest Period other
than 1, 2, 3 or 6 months in duration as provided in the definition of “Interest Period,” the
applicable notice must be received by the Administrative Agent not later than 11:00 a.m. four
Business Days prior to the requested date of such Borrowing, conversion or continuation, whereupon
the Administrative Agent shall give prompt notice to the Appropriate Lenders of such request and
determine whether the requested Interest Period is acceptable to all of them. Not later than 11:00
a.m., three Business Days before the requested date of such Borrowing, conversion or continuation,
the Administrative Agent shall notify the applicable Borrower (which notice may be by telephone)
whether or not the requested Interest Period has been consented to by all the applicable Lenders.
Each telephonic notice by a Borrower pursuant to this Section 2.02(a) must be confirmed
promptly by delivery to the Administrative Agent of a written Committed Loan Notice, appropriately
completed and signed by a Responsible Officer of such Borrower. Each Borrowing of, conversion to
or continuation of Eurodollar Rate Loans or BA Rate Loans shall be in a principal amount of
$1,000,000 or Cdn. $1,000,000, as applicable, or a whole multiple of $200,000 or Cdn. $200,000, as
applicable, in excess thereof. Except as provided in Sections 2.03(a) and 2.04(c),
each Borrowing of or conversion to Base Rate Loans, Canadian Base Rate Loans or Canadian Prime Rate
Loans shall be in a principal amount of $500,000 or Cdn. $500,000, as applicable, or a whole
multiple of $100,000 or Cdn. $100,000, as applicable, in excess thereof. Each Committed Loan
Notice (whether telephonic or written) shall specify (i) whether a Borrower is requesting a
Revolving Credit Borrowing, a conversion of Revolving Credit Loans from one Type to the other, or a
continuation of Eurodollar Rate Loans or BA Rate Loans, (ii) the requested date of the Borrowing,
conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal
amount of Loans to be borrowed, converted or continued, (iv) the Type of Loans to be borrowed or to
which existing Revolving Credit Loans are to be converted, (v) if applicable, the duration of the
Interest Period with respect thereto and (vi) if applicable, the currency of the Borrowing,
continuation or conversion. If a Borrower fails to specify a Type of Loan in a Committed Loan
Notice or if a Borrower fails to give a timely notice requesting a conversion or continuation, then
the applicable Revolving Credit Loans shall be made as, or converted to, Base Rate Loans (in the
case of U.S. Revolving Credit

 

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Loans), Canadian Base Rate Loans (in the case of Canadian Revolving Credit Loans denominated
in Dollars) or Canadian Prime Rate Loans (in the case of Canadian Revolving Credit Loans
denominated in Canadian Dollars). Any such automatic conversion to Base Rate Loans, Canadian Base
Rate Loans or Canadian Prime Rate Loans shall be effective as of the last day of the Interest
Period then in effect with respect to the applicable Eurodollar Rate Loans or BA Rate Loans. If a
Borrower requests a Borrowing of, conversion to, or continuation of Eurodollar Rate Loans or BA
Rate Loans in any such Committed Loan Notice, but fails to specify an Interest Period, it will be
deemed to have specified an Interest Period of 1 month. Notwithstanding anything to the contrary
herein, a Swing Line Loan may not be converted to a Eurodollar Rate Loan or a BA Rate Loan.

          (b) Following receipt of a Committed Loan Notice, the Administrative Agent shall promptly
notify each applicable Lender of the amount of its Applicable Percentage under the applicable
Facility of the applicable Revolving Credit Loans, and if no timely notice of a conversion or
continuation is provided by the applicable Borrower, the Administrative Agent shall notify each
applicable Lender of the details of any automatic conversion to Base Rate Loans, Canadian Base Rate
Loans or Canadian Prime Rate Loans, as applicable, described in Section 2.02(a). In the
case of a Revolving Credit Borrowing, each Appropriate Lender shall make the amount of its Loan
available to the Administrative Agent in immediately available funds at the Administrative Agent’s
Office not later than 1:00 p.m. on the Business Day specified in the applicable Committed Loan
Notice. Upon satisfaction of the applicable conditions set forth in Section 4.02 (and, if
such Borrowing is the initial Credit Extension, Section 4.01), the Administrative Agent
shall make all funds so received available to the applicable Borrower by wire transfer of such
funds in accordance with instructions provided (and reasonably acceptable) to the Administrative
Agent by the applicable Borrower.

          (c) Any Eurodollar Rate Loan and a BA Rate Loan continued or converted other than on the last
day of an Interest Period for such Eurodollar Rate Loan or BA Rate Loan and any continuation or
conversion shall be subject to Section 3.05. During the existence of an Event of Default,
(i) upon notice to the Borrower Agent from the Administrative Agent given at the request of the
Required U.S. Lenders, no outstanding Loans to the U.S. Borrowers may be converted into, or
continued as Eurodollar Rate Loans and (ii) upon notice to the Borrower Agent from the
Administrative Agent given at the request of the Required Canadian Lenders, no outstanding Loans to
the Canadian Borrowers may be converted into, or continued as Eurodollar Rate Loans or BA Rate
Loans.

          (d) The Administrative Agent shall promptly notify the applicable Borrower and the applicable
Lenders of the interest rate applicable to any Interest Period for Eurodollar Rate Loans and BA
Rate Loans upon determination of such interest rate. At any time that Base Rate Loans, Canadian
Base Rate Loans or Canadian Prime Rate Loans are outstanding, the Administrative Agent shall notify
the applicable Borrower and the applicable Lenders of any change in Credit Suisse’s or CS
Toronto’s, as applicable, base rate or prime rate used in determining the Base Rate, Canadian Base
Rate or

 

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Canadian Prime Rate, as applicable, promptly following the announcement of such change.

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

          SECTION 2.03. Letters of Credit Procedures for Issuance and Amendment of Letters of
Credit; Auto-Extension Letters of Credit. (a) (i) Each Letter of Credit shall be issued or
amended, as the case may be, upon the request of the applicable Borrower delivered to the
applicable L/C Issuer (with a copy to the Administrative Agent) in the form of a Letter of Credit
Application, appropriately completed and signed by a Responsible Officer of such Borrower. Such
Letter of Credit Application must be received by the applicable L/C Issuer and the Administrative
Agent not later than 2:00 p.m. at least two Business Days (or such later date and time as the
Administrative Agent and such L/C Issuer may agree in a particular instance in their sole
discretion) prior to the proposed issuance date or date of amendment, as the case may be. In the
case of a request for an initial issuance of a Letter of Credit, such Letter of Credit Application
shall specify in form and detail reasonably satisfactory to the applicable L/C Issuer: (A) the
proposed issuance date of the requested Letter of Credit (which shall be a Business Day); (B) the
amount and currency thereof; (C) the expiry date thereof; (D) the name and address of the
beneficiary thereof; (E) the documents to be presented by such beneficiary in case of any drawing
thereunder; (F) the full text of any certificate to be presented by such beneficiary in case of any
drawing thereunder; (G) the purpose and nature of the requested Letter of Credit; and (H) such
other matters as the applicable L/C Issuer may reasonably require. In the case of a request for an
amendment of any outstanding Letter of Credit, such Letter of Credit Application shall specify in
form and detail reasonably satisfactory to the applicable L/C Issuer (1) the Letter of Credit to be
amended; (2) the proposed date of amendment thereof (which shall be a Business Day); (3) the nature
of the proposed amendment; and (4) such other matters as the applicable L/C Issuer may require.
Additionally, the applicable Borrower shall furnish to the applicable L/C Issuer and the
Administrative Agent such other documents and information pertaining to such requested Letter of
Credit issuance or amendment, including any Issuer Documents, as such L/C Issuer or the
Administrative Agent may reasonably require.

          (ii) Promptly after receipt of any Letter of Credit Application, the applicable L/C Issuer
will confirm with the Administrative Agent (by telephone or in writing) that the Administrative
Agent has received a copy of such Letter of Credit Application from the applicable Borrower and, if
not, such L/C Issuer will provide the Administrative Agent with a copy thereof. Unless the
applicable L/C Issuer has received written notice from any Appropriate Lender under the applicable
Facility, the Administrative Agent or any Loan Party, at least one Business Day prior to the
requested date of issuance or amendment of the applicable Letter of Credit, that one or more
applicable conditions contained in Article IV shall not then be satisfied, then, subject to
the terms and conditions hereof, such L/C Issuer shall, on the requested date, issue a

 

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Letter of Credit for the account of the applicable Borrower (or the applicable Subsidiary) or
enter into the applicable amendment, as the case may be, in each case in accordance with such L/C
Issuer’s usual and customary business practices. Immediately upon the issuance of each U.S. Letter
of Credit, each U.S. Appropriate Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the U.S. L/C Issuer a risk participation in such Letter of
Credit in an amount equal to the product of such Revolving Credit Lender’s Applicable Percentage
times the amount of such Letter of Credit. Immediately upon the issuance of each Canadian
Letter of Credit, each Canadian Appropriate Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the Canadian L/C Issuer a risk participation in such
Letter of Credit in an amount equal to the product of such Revolving Credit Lender’s Applicable
Percentage times the Outstanding Amount of such Letter of Credit.

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

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

          (b) Drawings and Reimbursements; Funding of Participations. (i) Upon receipt from
the beneficiary of any Letter of Credit of any notice of a drawing under such

 

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Letter of Credit, the applicable L/C Issuer shall notify the applicable Borrower and the
Administrative Agent thereof. Not later than 11:00 a.m. on the date of any payment by the
applicable L/C Issuer under a Letter of Credit (each such date, an “Honor Date”), the
applicable Borrower shall reimburse such L/C Issuer through the Administrative Agent in an amount
equal to the amount of such drawing. If the applicable Borrower fails to so reimburse such L/C
Issuer by such time, the Administrative Agent shall promptly notify each Appropriate Lender under
the applicable Facility of the Honor Date, the amount of the unreimbursed drawing (the
“Unreimbursed Amount”), and the amount of such Revolving Credit Lender’s Applicable
Percentage thereof. In such event, the applicable Borrower shall be deemed to have requested a
Revolving Credit Borrowing of Base Rate Loans (in the case of U.S. Letters of Credit) or Canadian
Base Rate Loans or Canadian Prime Rate Loans, as applicable (in the case of Canadian Letters of
Credit) to be disbursed on the Honor Date in an amount equal to the Unreimbursed Amount, without
regard to the minimum and multiples specified in Section 2.02 for the principal amount of
Base Rate Loans, Canadian Base Rate Loans and Canadian Prime Rate Loans, but subject to the amount
of the unutilized portion of the Revolving Credit Commitments under the applicable Facility and the
conditions set forth in Section 4.02 (other than the delivery of a Committed Loan Notice).
Any notice given by an L/C Issuer or the Administrative Agent pursuant to this Section
2.03(c)(i) may be given by telephone if immediately confirmed in writing; provided that
the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of
such notice. In the case of a Letter of Credit denominated in a currency other than Dollars, the
applicable Borrower shall reimburse the applicable L/C Issuer in such currency, unless (A) such L/C
Issuer (at its option) shall have specified in such notice that it will require reimbursement in
Dollars, or (B) in the absence of any such requirement for reimbursement in Dollars, such Borrower
shall have notified such L/C Issuer promptly following receipt of the notice of drawing that such
Borrower will reimburse such L/C Issuer in Dollars. In the case of any such reimbursement in
Dollars of a drawing under a Letter of Credit denominated in a currency other than Dollars, the
applicable L/C Issuer shall notify the applicable Borrower of the Dollar Equivalent of the amount
of the drawing promptly following the determination thereof.

          (ii) Each Appropriate Lender under the applicable Facility shall upon any notice pursuant to
Section 2.03(b)(i) make funds available to the Administrative Agent for the account of the
applicable L/C Issuer at the Administrative Agent’s Office in an amount equal to its Applicable
Percentage of the Unreimbursed Amount not later than 1:00 p.m. on the Business Day specified in
such notice by the Administrative Agent, whereupon, subject to the provisions of Section
2.03(b)(iii), each Appropriate Lender that so makes funds available shall be deemed to have
made a Base Rate Loan, Canadian Base Rate Loan or Canadian Prime Rate Loan, as applicable, to the
applicable Borrower in such amount. The Administrative Agent shall remit the funds so received to
the applicable L/C Issuer.

          (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a Revolving
Credit Borrowing of Base Rate Loans (or Canadian Base Rate Loans or Canadian Prime Rate Loans, as
the case may be) because the conditions set forth in Section 4.02 cannot be satisfied or
for any other reason, the applicable Borrower

 

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shall be deemed to have incurred from the applicable L/C Issuer an L/C Borrowing in the amount of the
Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due and payable on
demand (together with interest) and shall bear interest at the Default Rate. In such event, each
Appropriate Lender’s payment to the Administrative Agent for the account of the applicable L/C
Issuer pursuant to Section 2.03(b)(ii) shall be deemed payment in respect of its
participation in such L/C Borrowing and shall constitute an L/C Advance from such Lender in
satisfaction of its participation obligation under this Section 2.03.

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

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

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

          (c) Repayment of Participations. (i) At any time after an L/C Issuer has made a
payment under any Letter of Credit and has received from any Appropriate

 

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

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

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

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

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

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

     (iv) any payment by the applicable L/C Issuer under such Letter of Credit against
presentation of a draft or certificate that does not strictly comply with the terms of such
Letter of Credit; or any payment made by the applicable L/C Issuer under such Letter of
Credit to any Person purporting to be a trustee in bankruptcy, debtor-in-possession,
assignee for the benefit of creditors, liquidator, receiver,

 

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interim receiver, monitor or other representative of or successor to any beneficiary
or any transferee of such Letter of Credit, including any arising in connection with any
proceeding under any Debtor Relief Law; or

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

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

          (e) Role of L/C Issuer. Each Lender and each Borrower agrees that, in paying any
drawing under a Letter of Credit, no L/C Issuer shall have any responsibility to obtain any
document (other than any sight draft, certificates and documents expressly required by the Letter
of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the
authority of the Person executing or delivering any such document. None of the L/C Issuers, the
Administrative Agent, any of their respective Related Parties nor any correspondent, participant or
assignee of any L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in
connection herewith at the request or with the approval of the Revolving Credit Lenders under the
applicable Facility or the Required U.S. Lenders or Required Canadian Lenders, as applicable;
(ii) any action taken or omitted in the absence of gross negligence or willful misconduct; or (iii)
the due execution, effectiveness, validity or enforceability of any document or instrument related
to any Letter of Credit or Issuer Document. Each Borrower hereby assumes all risks of the acts or
omissions of any beneficiary or transferee with respect to its use of any Letter of Credit;
provided, however, that this assumption is not intended to, and shall not, preclude
such Borrowers’ pursuing such rights and remedies as it may have against the beneficiary or
transferee at law or under any other agreement. None of the L/C Issuers, the Administrative Agent,
any of their respective Related Parties nor any correspondent, participant or assignee of any L/C
Issuer shall be liable or responsible for any of the matters described in clauses (i) through (v)
of Section 2.03(d); provided, however, that anything in such clauses to the
contrary notwithstanding, a Borrower may have a claim against an L/C Issuer, and such L/C Issuer
may be liable to such Borrower, to the extent, but only to the extent, of any direct, as opposed to
consequential or exemplary, damages suffered by such Borrower which such Borrower proves were
caused by such L/C Issuer’s willful misconduct or gross negligence or such L/C Issuer’s willful
failure to pay under any Letter of Credit after the presentation to it by the beneficiary of a
sight draft and certificate(s) strictly complying with the terms and conditions of a Letter of
Credit. In furtherance and not in limitation of the foregoing, the L/C Issuers may accept
documents that appear on their face to be in order, without responsibility for further
investigation, regardless of any notice or information to the contrary, and the L/C Issuers shall
not be responsible for the validity or sufficiency of any

 

77

instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or
the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason.

          (f) Cash Collateral. Upon the request of the Administrative Agent, (i) if an L/C
Issuer has honored any full or partial drawing request under any Letter of Credit and such drawing
has resulted in an L/C Borrowing, or (ii) if, as of the Letter of Credit Expiration Date, any L/C
Obligation for any reason remains outstanding, the applicable Borrowers shall, in each case,
immediately Cash Collateralize the then Outstanding Amount of all applicable L/C Obligations.
Sections 2.05 and  8.02(c) set forth certain additional requirements to deliver Cash
Collateral hereunder. For purposes of this Section 2.03, Section 2.05 and
Section 8.02(c), “Cash Collateralize” means to pledge and deposit with or deliver
or hypothecate to the Collateral Agent, for the benefit of the applicable L/C Issuers and the
Appropriate Lenders, as collateral for the L/C Obligations, cash or deposit account balances
pursuant to documentation in form and substance reasonably satisfactory to the Collateral Agent and
the applicable L/C Issuer (which documents are hereby consented to by the Lenders). Derivatives of
such term have corresponding meanings. Each Borrower hereby grants to the Collateral Agent, for
the benefit of the applicable L/C Issuer and the Appropriate Lenders, a security interest in all
such cash, deposit accounts and all balances therein and all proceeds of the foregoing. Cash
Collateral shall be maintained in blocked, non-interest bearing deposit accounts under the
exclusive control of the Collateral Agent. If at any time the Collateral Agent determines that any
funds held as Cash Collateral are subject to any right or claim of any Person other than the
Collateral Agent or that the total amount of such funds is less than the aggregate Outstanding
Amount of all applicable L/C Obligations, the applicable Borrower will, forthwith upon demand by
the Collateral Agent, pay to the Collateral Agent, as additional funds to be deposited as Cash
Collateral, an amount equal to the excess of (x) such aggregate Outstanding Amount over (y) the
total amount of funds, if any, then held as Cash Collateral that the Collateral Agent determines to
be free and clear of any such right and claim. Upon the drawing of any Letter of Credit for which
funds are on deposit as Cash Collateral, such funds shall be applied, to the extent permitted under
applicable Laws, to reimburse the applicable L/C Issuer.

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

          (h) Letter of Credit Fees. The U.S. Borrowers shall pay to the Administrative Agent
for the account of each U.S. Appropriate Lender in accordance with its Applicable Percentage, and
the Canadian Borrower shall pay to the Administrative Agent for the account of each Canadian
Appropriate Lender in accordance with its Applicable Percentage, a Letter of Credit fee (the
“Letter of Credit Fee”) for each U.S. Letter of Credit or Canadian Letter of Credit, as
applicable, equal to

 

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the Applicable Rate times the daily amount available to be drawn under such Letter of
Credit. For purposes of computing the daily amount available to be drawn under any Letter of
Credit, the amount of such Letter of Credit shall be determined in accordance with Section
1.06. Letter of Credit Fees shall be (i) due and payable on the first Business Day of each
April, July, October and January, commencing with the first such date to occur after the issuance
of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand and (ii)
computed on a quarterly basis in arrears. If there is any change in the Applicable Rate during any
quarter, the daily amount available to be drawn under each Letter of Credit shall be computed and
multiplied by the Applicable Rate separately for each period during such quarter that such
Applicable Rate was in effect. Notwithstanding anything to the contrary contained herein, any
past-due Letter of Credit Fees shall accrue at the Default Rate.

          (i) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer. The
applicable Borrower shall pay directly to the applicable L/C Issuer for its own account a fronting
fee with respect to each Letter of Credit, at the rate of 0.25% per annum, computed on the daily
amount available to be drawn under such Letter of Credit on a quarterly basis in arrears. Such
fronting fee shall be due and payable on the first Business Day of each April, July, October and
January in respect of the most recently-ended quarterly period (or portion thereof, in the case of
the first payment), commencing with the first such date to occur after the issuance of such Letter
of Credit, on the Letter of Credit Expiration Date and thereafter on demand. For purposes of
computing the daily amount available to be drawn under any Letter of Credit, the amount of such
Letter of Credit shall be determined in accordance with Section 1.06. In addition, the
applicable Borrower shall pay directly to the applicable L/C Issuer for its own account the
customary issuance, presentation, amendment and other processing fees, and other standard costs and
charges, of such L/C Issuer relating to letters of credit as from time to time in effect. Such
customary fees and standard costs and charges are due and payable on demand and are nonrefundable.

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

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

          SECTION 2.04. Swing Line Loans.

          (A) (a) The U.S. Swing Line. Subject to the terms and conditions set forth herein,
the U.S. Swing Line Lender agrees, in reliance upon the agreements of the other Lenders set forth
in this Section 2.04(A), to make loans (each such loan, a “U.S. Swing Line Loan”)
in Dollars to the Specified U.S. Borrower from time to time on any

 

79

Business Day during the Availability Period in an aggregate amount not to exceed at any time
outstanding the amount of the U.S. Swing Line Sublimit, notwithstanding the fact that such U.S.
Swing Line Loans, when aggregated with the Applicable Percentage of the Outstanding Amount of U.S.
Revolving Credit Loans and U.S. L/C Obligations of the Lender acting as U.S. Swing Line Lender, may
exceed the amount of such Lender’s U.S. Revolving Credit Commitment; provided,
however, that after giving effect to any U.S. Swing Line Loan, (i) the Total Revolving
Credit Outstandings shall not exceed the lesser of (x) the Revolving Credit Facility and (y) the
Total Borrowing Base at such time, (ii) the aggregate Outstanding Amount of the U.S. Revolving
Credit Loans of any Lender, plus such U.S. Revolving Credit Lender’s Applicable Percentage of the
Outstanding Amount of all U.S. L/C Obligations, plus such U.S. Revolving Credit Lender’s Applicable
Percentage of the Outstanding Amount of all U.S. Swing Line Loans shall not exceed such U.S.
Revolving Credit Lender’s U.S. Revolving Credit Commitment and (iii) the Total U.S. Revolving
Credit Outstandings shall not exceed the lesser of (x) the U.S. Revolving Credit Facility and (y)
the U.S. Borrowing Base; and provided that the Specified U.S. Borrower shall not use the
proceeds of any U.S. Swing Line Loan to refinance any outstanding U.S. Swing Line Loan. Within the
foregoing limits, and subject to the other terms and conditions hereof, the Specified U.S. Borrower
may borrow under this Section 2.04(A), prepay under Section 2.05, and reborrow
under this Section 2.04(A). Each U.S. Swing Line Loan shall bear interest only at a rate
based on the Base Rate. Immediately upon the making of a U.S. Swing Line Loan, each U.S.
Appropriate Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to,
purchase from the U.S. Swing Line Lender a risk participation in such U.S. Swing Line Loan in an
amount equal to the product of such U.S. Revolving Credit Lender’s Applicable Percentage
times the amount of such U.S. Swing Line Loan.

          (b) Borrowing Procedures. Each U.S. Swing Line Borrowing shall be made upon the
Specified U.S. Borrower’s irrevocable notice to the U.S. Swing Line Lender and the Administrative
Agent, which may be given by telephone. Each such notice must be received by the U.S. Swing Line
Lender and the Administrative Agent not later than 12:00 p.m. on the requested borrowing date, and
shall specify (i) the amount to be borrowed and (ii) the requested borrowing date, which shall be a
Business Day. Each such telephonic notice must be confirmed promptly by delivery to the U.S. Swing
Line Lender and the Administrative Agent of a written Swing Line Loan Notice, appropriately
completed and signed by a Responsible Officer of the Specified U.S. Borrower. Promptly after
receipt by the U.S. Swing Line Lender of any telephonic Swing Line Loan Notice, the U.S. Swing Line
Lender will confirm with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has also received such Swing Line Loan Notice and, if not, the U.S. Swing Line
Lender will notify the Administrative Agent (by telephone or in writing) of the contents thereof.
Unless the U.S. Swing Line Lender has received notice (by telephone or in writing) from the
Administrative Agent (including at the request of any U.S. Revolving Credit Lender) prior to 2:00
p.m. on the date of the proposed U.S. Swing Line Borrowing (A) directing the U.S. Swing Line Lender
not to make such Swing Line Loan as a result of the limitations set forth in the first proviso to
the first sentence of Section 2.04(A)(a), or (B) that one or more of the applicable
conditions specified in Article IV is not then satisfied, then, subject to the terms and
conditions hereof, the U.S. Swing Line Lender will, not later than 3:00 p.m. on the

 

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borrowing date specified in such Swing Line Loan Notice, make the amount of its Swing Line
Loan available to the Specified U.S. Borrower.

          (c) Refinancing of U.S. Swing Line Loans. (i) The U.S. Swing Line Lender at any
time in its sole and absolute discretion may request, on behalf of the Specified U.S. Borrower
(which hereby irrevocably authorizes the U.S. Swing Line Lender to so request on its behalf), that
each U.S. Appropriate Lender make a Base Rate Loan in an amount equal to such Lender’s Applicable
Percentage of the amount of U.S. Swing Line Loans then outstanding. Such request shall be made in
writing (which written request shall be deemed to be a Committed Loan Notice for purposes hereof)
and in accordance with the requirements of Section 2.02, without regard to the minimum and
multiples specified therein for the principal amount of Base Rate Loans, but subject to the
unutilized portion of the U.S. Revolving Credit Facility and the conditions set forth in
Section 4.02. The U.S. Swing Line Lender shall furnish the Specified U.S. Borrower with a
copy of the applicable Committed Loan Notice promptly after delivering such notice to the
Administrative Agent. Each U.S. Appropriate Lender shall make an amount equal to its Applicable
Percentage of the amount specified in such Committed Loan Notice available to the Administrative
Agent in immediately available funds for the account of the U.S. Swing Line Lender at the
Administrative Agent’s Office not later than 1:00 p.m. on the day specified in such Committed Loan
Notice, whereupon, subject to Section 2.04(A)(c)(ii), each U.S. Appropriate Lender that so
makes funds available shall be deemed to have made a Base Rate Loan to the Specified U.S. Borrower
in such amount. The Administrative Agent shall remit the funds so received to the U.S. Swing Line
Lender.

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

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

 

81

submitted to any Lender (through the Administrative Agent) with respect to any amounts owing
under this clause (iii) shall be conclusive absent manifest error.

          (iv) If any U.S. Appropriate Lender fails to make available to the Administrative Agent for
the account of the U.S. Swing Line Lender any amount required to be paid by it pursuant to Section
2.04(A)(c)(iii), the U.S. Swing Line Lender shall be entitled, at its sole and absolute
discretion, to recover from the Borrowers (acting through the Administrative Agent), on demand,
such amount with interest thereon for the period from the date such payment is required to the date
on which such payment is immediately available to the U.S. Swing Line Lender at a rate per annum
equal to the Overnight Rate, plus any administrative, processing or similar fees customarily
charged by the U.S. Swing Line Lender in connection with the foregoing.

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

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

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

          (e) Interest for Account of U.S. Swing Line Lender. The U.S. Swing Line Lender shall
be responsible for invoicing the Specified U.S. Borrower for interest on the U.S. Swing Line Loans.
Until each U.S. Appropriate Lender funds its Base Rate Loan or

 

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risk participation pursuant to this Section 2.04(A) to refinance such Revolving Credit
Lender’s Applicable Percentage of any U.S. Swing Line Loan, interest in respect of such Applicable
Percentage shall be solely for the account of the U.S. Swing Line Lender.

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

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

          (b) Borrowing Procedures. Each Canadian Swing Line Borrowing shall be made upon the
Canadian Borrower’s irrevocable notice to the Canadian Swing Line Lender and the Administrative
Agent, which may be given by telephone. Each such notice must be received by the Canadian Swing
Line Lender and the Administrative Agent not later than 12:00 p.m. on the requested borrowing date,
and shall specify (i) the

 

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amount and currency to be borrowed and (ii) the requested borrowing date, which shall be a
Business Day. Each such telephonic notice must be confirmed promptly by delivery to the Canadian
Swing Line Lender and the Administrative Agent of a written Swing Line Loan Notice, appropriately
completed and signed by a Responsible Officer of the Canadian Borrower. Promptly after receipt by
the Canadian Swing Line Lender of any telephonic Swing Line Loan Notice, the Canadian Swing Line
Lender will confirm with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has also received such Swing Line Loan Notice and, if not, the Canadian Swing
Line Lender will notify the Administrative Agent (by telephone or in writing) of the contents
thereof. Unless the Canadian Swing Line Lender has received notice (by telephone or in writing)
from the Administrative Agent (including at the request of any Canadian Revolving Credit Lender)
prior to 2:00 p.m. on the date of the proposed Canadian Swing Line Borrowing (A) directing the
Canadian Swing Line Lender not to make such Swing Line Loan as a result of the limitations set
forth in the first proviso to the first sentence of Section 2.04(B)(a), or (B) that one or
more of the applicable conditions specified in Article IV is not then satisfied, then,
subject to the terms and conditions hereof, the Canadian Swing Line Lender will, not later than
3:00 p.m. on the borrowing date specified in such Swing Line Loan Notice, make the amount of its
Swing Line Loan available to the Canadian Borrower.

          (c) Refinancing of Canadian Swing Line Loans. (i) The Canadian Swing Line Lender at
any time in its sole and absolute discretion (but at least once per week) may request, on behalf of
the Canadian Borrower (which hereby irrevocably authorizes the Canadian Swing Line Lender to so
request on its behalf), that each Canadian Appropriate Lender make a Canadian Base Rate Loan or
Canadian Prime Rate Loan, as applicable, in an amount equal to such Lender’s Applicable Percentage
of the amount of Canadian Swing Line Loans then outstanding. Such request shall be made in writing
(which written request shall be deemed to be a Committed Loan Notice for purposes hereof) and in
accordance with the requirements of Section 2.02, without regard to the minimum and
multiples specified therein for the principal amount of Canadian Base Rate Loans and Canadian Prime
Rate Loans, but subject to the unutilized portion of the Canadian Revolving Credit Facility and the
conditions set forth in Section 4.02. The Canadian Swing Line Lender shall furnish the
Canadian Borrower with a copy of the applicable Committed Loan Notice promptly after delivering
such notice to the Administrative Agent. Each Canadian Appropriate Lender shall make an amount
equal to its Applicable Percentage of the amount specified in such Committed Loan Notice available
to the Administrative Agent in immediately available funds for the account of the Canadian Swing
Line Lender at the Administrative Agent’s Office not later than 1:00 p.m. on the day specified in
such Committed Loan Notice, whereupon, subject to Section 2.04(B)(c)(ii), each Canadian
Appropriate Lender that so makes funds available shall be deemed to have made a Base Rate Loan or
Canadian Prime Rate Loan, as the case may be, to the Canadian Borrower in such amount. The
Administrative Agent shall remit the funds so received to the Canadian Swing Line Lender.

          (ii) If for any reason any Canadian Swing Line Loan cannot be refinanced by such a Canadian
Revolving Credit Borrowing in accordance with Section 2.04(B)(c)(i), the request for
Canadian Base Rate Loans or Canadian Prime Rate Loans submitted by

 

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the Canadian Swing Line Lender as set forth herein shall be deemed to be a request by the
Canadian Swing Line Lender that each of the Canadian Revolving Credit Lenders fund its risk
participation in the relevant Canadian Swing Line Loan and each Canadian Revolving Credit Lender’s
payment to the Administrative Agent for the account of the Canadian Swing Line Lender pursuant to
Section 2.04(B)(c)(i) shall be deemed payment in respect of such participation.

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

          (iv) If any Canadian Appropriate Lender fails to make available to the Administrative Agent
for the account of the Canadian Swing Line Lender any amount required to be paid by it pursuant to
Section 2.04(B)(c)(iii), the Canadian Swing Line Lender shall be entitled, at its sole and
absolute discretion, to recover from the Borrowers (acting through the Administrative Agent), on
demand, such amount with interest thereon for the period from the date such payment is required to
the date on which such payment is immediately available to the Canadian Swing Line Lender at a rate
per annum equal to the Overnight Rate, plus any administrative, processing or similar fees
customarily charged by the Canadian Swing Line Lender in connection with the foregoing.

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

 

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

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

          (e) Interest for Account of Canadian Swing Line Lender. The Canadian Swing Line
Lender shall be responsible for invoicing the Canadian Borrower for interest on the Canadian Swing
Line Loans. Until each Canadian Appropriate Lender funds its Canadian Base Rate Loan or Canadian
Prime Rate Loan, as the case may be, or risk participation pursuant to this Section 2.04(B)
to refinance such Revolving Credit Lender’s Applicable Percentage of any Canadian Swing Line Loan,
interest in respect of such Applicable Percentage shall be solely for the account of the Canadian
Swing Line Lender.

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

          SECTION 2.05. Prepayments. (a) Optional. (i) Subject to the last sentence
of this Section 2.05(a)(i), the Borrowers may, upon notice to the Administrative Agent, at
any time or from time to time voluntarily prepay Revolving Credit Loans in whole or in part without
premium or penalty; provided that (A) such notice must be received by the Administrative
Agent not later than 12:00 p.m. (1) three Business Days prior to any date of prepayment of
Eurodollar Rate Loans or BA Rate Loans and (2) one Business Day prior to any date of prepayment of
Base Rate Loans, Canadian Base Rate Loans and Canadian Prime Rate Loans; (B) any prepayment of
Eurodollar Rate Loans or BA Rate Loans shall be in a principal amount of $1,000,000 or Cdn.
$1,000,000, as applicable, or a whole multiple of $200,000 or Cdn. $200,000, as applicable, in
excess thereof; and (C) any prepayment of Base Rate Loans, Canadian Base Rate Loans and Canadian
Prime Rate Loans shall be in a principal amount of $500,000 or Cdn. $500,000, as applicable, or a
whole multiple of $100,000 or Cdn. $100,000, as applicable, in excess thereof or, in each case, if
less, the entire principal amount thereof then outstanding. Each such notice shall specify the
date and amount of such prepayment and the Type(s)

 

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of Loans to be prepaid and, if Eurodollar Rate Loans or BA Rate Loans are to be prepaid, the
Interest Period(s) of such Loans. The Administrative Agent will promptly notify each Appropriate
Lender of its receipt of each such notice, and of the amount of such Lender’s ratable portion of
such prepayment (based on such Lender’s Applicable Percentage in respect of the relevant Facility).
If such notice is given by a Borrower, such Borrower shall make such prepayment and the payment
amount specified in such notice shall be due and payable on the date specified therein. Any
prepayment of a Eurodollar Rate Loan or a BA Rate Loan shall be accompanied by all accrued interest
on the amount prepaid, together with any additional amounts required pursuant to
Section 3.05.

          (ii) The applicable Borrower may, upon notice to the applicable Swing Line Lender (with a
copy to the Administrative Agent), at any time or from time to time, voluntarily prepay Swing Line
Loans in whole or in part without premium or penalty; provided that (A) such notice must be
received by the applicable Swing Line Lender and the Administrative Agent not later than 12:00 p.m.
on the date of the prepayment. Each such notice shall specify the date and amount of such
prepayment. If such notice is given by a Borrower, such Borrower shall make such prepayment and
the payment amount specified in such notice shall be due and payable on the date specified therein.

          (b) Mandatory. (i) If for any reason the Total Revolving Credit Outstandings at any
time exceed the lesser of (x) the Total Borrowing Base at such time (except as a result of
Overadvance Loans or Protective Advances permitted under Sections 2.01(f), (g) or (h)) and
(y) the Revolving Credit Facility at such time, the Borrowers shall immediately prepay their
respective Revolving Credit Loans, Swing Line Loans and L/C Borrowings and/or Cash Collateralize
their respective L/C Obligations (other than the L/C Borrowings) in an aggregate amount equal to
such excess. If for any reason the Total U.S. Revolving Credit Outstandings at any time exceed the
lesser of (x) the U.S. Borrowing Base at such time (except to the extent constituting U.S.
Overadvance Loans permitted under Section 2.01(f)) and (y) the U.S. Revolving Credit
Facility at such time, the U.S. Borrowers shall immediately prepay U.S. Revolving Credit Loans,
U.S. Swing Line Loans and U.S. L/C Borrowings and/or Cash Collateralize the U.S. L/C Obligations
(other than the U.S. L/C Borrowings) in an aggregate amount equal to such excess. If for any
reason (other than negative fluctuations in Dollar Equivalents of Canadian Dollars) the Total
Canadian Revolving Credit Outstandings at any time exceed the lesser of (x) the Canadian Borrowing
Base at such time (except to the extent constituting Canadian Overadvance Loans permitted under
Section 2.01(g)) and (y) the Canadian Revolving Credit Facility at such time, the Canadian
Borrower shall immediately prepay Canadian Revolving Credit Loans, Canadian Swing Line Loans and
Canadian L/C Borrowings and/or Cash Collateralize the Canadian L/C Obligations (other than the
Canadian L/C Borrowings) in an aggregate amount equal to such excess.

          (ii) If, as a result of any negative fluctuations in the Dollar Equivalent of Canadian
Dollars, the Total Canadian Revolving Credit Outstandings exceeds 110% of the aggregate amount of
the Canadian Revolving Credit Commitments as then in effect, the Canadian Borrower shall, if
requested (through the Administrative Agent) by the Required Canadian Lenders prepay the Canadian
Revolving Credit Loans (or Cash Collateralize the Canadian Letters of Credit) within three (3)
Business Days following

 

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such Borrower’s receipt of such request in such amounts as shall be necessary so that after
giving effect thereto the Total Canadian Revolving Credit Outstandings does not exceed the Canadian
Revolving Credit Commitments.

          SECTION 2.06. Termination or Reduction of Commitments.
(a) Optional. The Specified U.S. Borrower may, upon notice to the Administrative
Agent, terminate the U.S. Revolving Credit Facility, the U.S. Letter of Credit Sublimit, the U.S.
Swing Line Sublimit, or from time to time permanently reduce the U.S. Revolving Credit Facility,
the U.S. Letter of Credit Sublimit, or the U.S. Swing Line Sublimit; and the Canadian Borrower may,
upon notice to the Administrative Agent, terminate the Canadian Revolving Credit Facility, the
Canadian Letter of Credit Sublimit or the Canadian Swing Line Sublimit, or from time to time
permanently reduce the Canadian Revolving Credit Facility, the Canadian Letter of Credit Sublimit
or the Canadian Swing Line Sublimit; provided that (i) any such notice shall be received by
the Administrative Agent not later than 2:00 p.m. two Business Days prior to the date of
termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of
$5,000,000 or any whole multiple of $1,000,000 in excess thereof and (iii) the Borrowers shall not
terminate or reduce (A) the U.S. Revolving Credit Facility if, after giving effect thereto and to
any concurrent prepayments hereunder, the Total U.S. Revolving Credit Outstandings would exceed the
U.S. Revolving Credit Facility, (B) the U.S. Letter of Credit Sublimit if, after giving effect
thereto, the Outstanding Amount of U.S. L/C Obligations not fully Cash Collateralized hereunder
would exceed the U.S. Letter of Credit Sublimit, (C) the U.S. Swing Line Sublimit if, after giving
effect thereto and to any concurrent prepayments hereunder, the Outstanding Amount of U.S. Swing
Line Loans would exceed the U.S. Swing Line Sublimit, (D) the Canadian Revolving Credit Facility
if, after giving effect thereto and to any concurrent prepayments hereunder, the Total Canadian
Revolving Credit Outstandings would exceed the Canadian Revolving Credit Facility, (E) the Canadian
Letter of Credit Sublimit if, after giving effect thereto, the Outstanding Amount of Canadian L/C
Obligations not fully Cash Collateralized hereunder would exceed the Canadian Letter of Credit
Sublimit, (E) the Canadian Swing Line Sublimit if, after giving effect thereto and to any
concurrent prepayments hereunder, the Outstanding Amount of Canadian Swing Line Loans would exceed
the Canadian Swing Line Sublimit or (F) the U.S. Revolving Credit Facility while the Canadian
Revolving Credit Facility remains in effect.

          (b) Mandatory. (i) If after giving effect to any reduction or termination of U.S.
Revolving Credit Commitments under this Section 2.06, the U.S. Letter of Credit Sublimit or
the U.S. Swing Line Sublimit exceeds the U.S. Revolving Credit Facility at such time, the U.S.
Letter of Credit Sublimit and/or the U.S. Swing Line Sublimit, as the case may be, shall be
automatically reduced by the amount of such excess.

          (ii) If after giving effect to any reduction or termination of Canadian Revolving Credit
Commitments under this Section 2.06, the Canadian Letter of Credit Sublimit or the Canadian
Swing Line Sublimit exceeds the Canadian Revolving Credit Facility at such time, the Canadian
Letter of Credit Sublimit and/or the Canadian Swing Line Sublimit, as the case may be, shall be
automatically reduced by the amount of such excess.

 

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          (c) Application of Commitment Reductions; Payment of Fees. The Administrative Agent
will promptly notify the Appropriate Lenders of any termination or reduction of any Letter of
Credit Sublimit, any Swing Line Sublimit or any Revolving Credit Commitment under this Section
2.06. Upon any reduction of the Revolving Credit Commitments, the Revolving Credit Commitment
of each Appropriate Lender shall be reduced by such Lender’s Applicable Percentage of such
reduction amount. All fees in respect of the applicable Revolving Credit Facility accrued until
the effective date of any termination of such Revolving Credit Facility shall be paid on the
effective date of such termination.

          SECTION 2.07. Repayment of Loans. (a) Revolving Credit Loans. The U.S.
Borrowers shall repay to the U.S. Revolving Credit Lenders on the Maturity Date for the U.S.
Revolving Credit Facility the aggregate principal amount of all U.S. Revolving Credit Loans
outstanding on such date. The Canadian Borrower shall repay to the Canadian Revolving Credit
Lenders on the Maturity Date for the Canadian Revolving Credit Facility the aggregate principal
amount of all Canadian Revolving Credit Loans outstanding on such date.

          (b) Swing Line Loans. The U.S. Borrowers shall repay each U.S. Swing Line Loan on
the Maturity Date for the U.S. Revolving Credit Facility. The Canadian Borrower shall repay each
Canadian Swing Line Loan on the Maturity Date for the Canadian Revolving Credit Facility.

          SECTION 2.08. Interest. (a) Subject to the provisions of Section 2.08(b),
(i) each Eurodollar Rate Loan under a Facility shall bear interest on the outstanding principal
amount thereof for each Interest Period at a rate per annum equal to the Eurodollar Rate for such
Interest Period plus the Applicable Rate; (ii) each BA Rate Loan under the Canadian Revolving
Credit Facility shall bear interest on the outstanding principal amount thereof for each Interest
Period at a rate per annum equal to the BA Rate for such Interest Period plus the Applicable Rate;
(iii) each Base Rate Loan under a Facility shall bear interest on the outstanding principal amount
thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the
Applicable Rate; (iv) each Canadian Base Rate Loan under the Canadian Revolving Credit Facility
shall bear interest on the outstanding principal amount thereof from the applicable borrowing date
at a rate per annum equal to the Canadian Base Rate plus the Applicable Rate; (v) each Canadian
Prime Rate Loan under the Canadian Revolving Credit Facility shall bear interest on the outstanding
principal amount thereof from the applicable borrowing date at a rate per annum equal to the
Canadian Prime Rate plus the Applicable Rate; (vi) each U.S. Swing Line Loan shall bear interest on
the outstanding principal amount thereof from the applicable borrowing date at a rate per annum
equal to the Base Rate plus the Applicable Rate for the Revolving Credit Facility; and (vii) each
Canadian Swing Line Loan shall bear interest on the outstanding principal amount thereof from the
applicable borrowing date at a rate per annum equal to the Canadian Base Rate (for Canadian Swing
Line Loans denominated in Dollars) or the Canadian Prime Rate (for Canadian Swing Line Loans
denominated in Canadian Dollars) plus the Applicable Rate for the Revolving Credit Facility.

 

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

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

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

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

          SECTION 2.09. Fees. In addition to certain fees described in Sections 2.03(i)
and (j):

          (a) Commitment Fee. The U.S. Borrowers shall pay to the Administrative Agent for the
account of each U.S. Appropriate Lender in accordance with its Applicable Percentage, a commitment
fee equal to the Applicable Commitment Fee Rate divided by three hundred and sixty (360)
days and multiplied by the number of days in the fiscal quarter and then multiplied
by the amount, if any, by which the Average Revolving Credit Facility Balance with respect to the
U.S. Revolving Credit Facility for such fiscal quarter (or portion thereof that the U.S. Revolving
Credit Commitments are in effect) is less than the aggregate amount of the U.S. Revolving Credit
Commitments; provided that, if the U.S. Revolving Credit Commitments are terminated on a
day other than the first day of a fiscal quarter, then any such fee payable for the fiscal quarter
in which termination shall occur shall be paid on the effective date of such termination and shall
be based upon the number of days that have elapsed during such period. The Canadian Borrower shall
pay to the Administrative Agent for the account of each Canadian Appropriate Lender in accordance
with its Applicable Percentage, a commitment fee equal to the Applicable Commitment Fee Rate
divided by three hundred and sixty (360) days and multiplied by the number of days
in the fiscal quarter and then multiplied by the amount, if any, by which the Average
Revolving Credit Facility Balance with respect to the Canadian Revolving Credit Facility for such
fiscal quarter (or portion thereof that the Canadian Revolving Credit Commitments are in effect) is
less than the aggregate amount of the Canadian Revolving Credit Commitments; provided that,
if the Canadian Revolving Credit Commitments are terminated on a day other than the first day of a
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shall be paid on the effective date of such termination and shall be based upon the number of
days that have elapsed during such period. The commitment fees shall be due and payable quarterly
in arrears on the first Business Day of each April, July, October and January, commencing with the
first such date to occur after the Closing Date, on the last day of the Availability Period for the
Revolving Credit Facility (and, if applicable, thereafter on demand). The commitment fee shall be
calculated quarterly in arrears and if there is any change in the Applicable Commitment Fee Rate
during any quarter, the daily amount shall be computed and multiplied by the Applicable Commitment
Fee Rate for each period during which such Applicable Commitment Fee Rate was in effect, with
effect from the date of the change in such rate pursuant to the definition of Applicable Commitment
Fee Rate. The commitment fee shall accrue at all times, including at any time during which one or
more of the conditions in Article IV is not met.

          (b) Other Fees. (i) The Borrowers shall pay to the Bookrunner, the Administrative
Agent and the Collateral Agent for their own respective accounts fees in the amounts and at the
times specified in the Fee Letter. Such fees shall be fully earned when paid and shall not be
refundable for any reason whatsoever.

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

          SECTION 2.10. Computation of Interest and Fees; Retroactive Adjustments of Applicable
Rate. (a) All computations of interest for Base Rate Loans, Canadian Base Rate Loans and
Canadian Prime Rate Loans when the Base Rate, Canadian Base Rate and/or Canadian Prime Rate is
determined by Credit Suisse’s or CS Toronto’s, as applicable, “prime rate” or “base rate”, and BA
Rate Loans shall be made on the basis of a year of 365/366 days and actual days elapsed. All other
computations of interest and fees shall be made on the basis of a 360-day year and actual days
elapsed (which results in more fees or interest, as applicable, being paid than if computed on the
basis of a 365-day year). Interest shall accrue on each Loan for the day on which the Loan is
made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such
portion is paid, provided that any Loan that is repaid on the same day on which it is made shall,
subject to Section 2.12(a), bear interest for one day. Each determination by the
Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all
purposes, absent manifest error. For the purposes of the Interest Act (Canada), (i) whenever any
interest or fees under this Agreement or any other Loan Document is calculated using a rate based
on a year of 360 days, the rate determined pursuant to such calculation, when expressed as an
annual rate, is equivalent to (x) the applicable rate, (y) multiplied by the actual number of days
in the calendar year commencing on the date such calculation is being made, and (z) divided by 360,
(ii) the principle of deemed reinvestment of interest does not apply to any interest calculation
under this Agreement, and (iii) the rates of interest stipulated in this Agreement are intended to
be nominal rates and not effective rates or yields.

          (b) If, as a result of any restatement of or other adjustment to the financial statements of
the Specified U.S. Borrower or for any other reason, the Borrowers or the

 

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Lenders determine that (i) Average Availability as calculated by a Borrower as of any
applicable date was inaccurate and (ii) a proper calculation of the Average Availability would have
resulted in higher pricing for such period, the applicable Borrowers shall immediately and
retroactively be obligated to pay to the Administrative Agent for the account of the applicable
Lenders or L/C Issuers, as the case may be, promptly on demand by the Administrative Agent (or,
after the occurrence of an actual or deemed entry of an order for relief with respect to any such
Borrower under any Debtor Relief Laws, automatically and without further action by the
Administrative Agent, any Lender or any L/C Issuer), an amount equal to the excess of the amount of
interest and fees that should have been paid for such period over the amount of interest and fees
actually paid for such period. This paragraph shall not limit the rights of the Administrative
Agent, any Lender or any L/C Issuer, as the case may be, under Section 2.03(b)(iii),
2.03(h) or 2.08(b) or under Article VIII. The Borrowers’ obligations under
this paragraph shall survive the termination of the Aggregate Commitments and the repayment of all
other Obligations hereunder.

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

          (b) In addition to the accounts and records referred to in Section 2.11(a), each
Lender and the Administrative Agent shall maintain in accordance with its usual practice accounts
or records evidencing the purchases and sales by such Lender of participations in Letters of Credit
and Swing Line Loans. In the event of any conflict between the accounts and records maintained by
the Administrative Agent and the accounts and records of any Lender in respect of such matters, the
accounts and records of the Administrative Agent shall control in the absence of manifest error.

          SECTION 2.12. Payments Generally; Administrative Agent’s Clawback. (a)
General. All payments to be made by the Borrowers shall be made without condition or
deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly
provided herein, all payments by the Borrowers hereunder shall be made to the Administrative Agent,
for the account of the Appropriate Lenders to which such payment is owed, at the Administrative
Agent’s Office in Dollars or Canadian Dollars, as the case

 

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may be, and in immediately available funds not later than 2:00 p.m. on the date specified
herein. The Administrative Agent will promptly distribute to each Appropriate Lender its
Applicable Percentage in respect of the relevant Facility (or other applicable share as provided
herein) of such payment in like funds as received by wire transfer to such Lender’s Lending Office.
All payments received by the Administrative Agent after 2:00 p.m. shall, in the Administrative
Agent’s sole discretion, be deemed received on the next succeeding Business Day and any applicable
interest or fee shall continue to accrue. Except as otherwise provided, if any payment to be made
by a Borrower shall come due on a day other than a Business Day, payment shall be made on the next
following Business Day, and such extension of time shall be reflected on computing interest or
fees, as the case may be. Any payment required to be made by the Administrative Agent hereunder
shall be deemed to have been made by the time required if the Administrative Agent shall, at or
before such time, have taken the necessary steps to make such payment in accordance with the
regulations or operating procedures of the clearing or settlement system used by the Administrative
Agent to make such payment.

          (b) (i) Funding by Lenders; Presumption by Administrative Agent. Unless the
Administrative Agent shall have received notice from a Lender prior to the proposed date of any
Borrowing of Eurodollar Rate Loans or BA Rate Loans (or, in the case of any Borrowing of Base Rate
Loans, Canadian Base Rate Loans or Canadian Prime Rate Loans, prior to 12:00 noon on the date of
such Borrowing) that such Lender will not make available to the Administrative Agent such Lender’s
share of such Borrowing, the Administrative Agent may assume that such Lender has made such share
available on such date in accordance with Section 2.02 (or, in the case of a Borrowing of
Base Rate Loans, Canadian Base Rate Loans or Canadian Prime Rate Loans, that such Lender has made
such share available in accordance with and at the time required by Section 2.02) and may,
in reliance upon such assumption, make available to the applicable Borrower a corresponding amount.
In such event, if a Lender has not in fact made its share of the applicable Borrowing available to
the Administrative Agent, then the applicable Lender and the applicable Borrower severally agree to
pay to the Administrative Agent forthwith on demand such corresponding amount in immediately
available funds with interest thereon, for each day from and including the date such amount is made
available to such Borrower to but excluding the date of payment to the Administrative Agent, at (A)
in the case of a payment to be made by such Lender, the Overnight Rate, plus any administrative,
processing or similar fees customarily charged by the Administrative Agent in connection with the
foregoing, and (B) in the case of a payment to be made by a Borrower, the interest rate applicable
to Base Rate Loans, Canadian Base Rate Loans or Canadian Prime Rate Loans, as applicable. If such
Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an
overlapping period, the Administrative Agent shall promptly remit to such Borrower the amount of
such interest paid by such Borrower for such period. If such Lender pays its share of the
applicable Borrowing to the Administrative Agent, then the amount so paid shall constitute such
Lender’s Loan included in such Borrowing. Any payment by a Borrower shall be without prejudice to
any claim such Borrower may have against a Lender that shall have failed to make such payment to
the Administrative Agent.

 

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          (ii) Payments by Borrower; Presumptions by Administrative Agent. Unless the
Administrative Agent shall have received notice from a Borrower prior to the time at which any
payment is due to the Administrative Agent for the account of the Lenders or the L/C Issuers
hereunder that such Borrower will not make such payment, the Administrative Agent may assume that
such Borrower has made such payment on such date in accordance herewith and may, in reliance upon
such assumption, distribute to the Appropriate Lenders or the applicable L/C Issuer, as the case
may be, the amount due. In such event, if such Borrower has not in fact made such payment, then
each of the Appropriate Lenders or the applicable L/C Issuer, as the case may be, severally agrees
to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender
or such L/C Issuer, in immediately available funds with interest thereon, for each day from and
including the date such amount is distributed to it to but excluding the date of payment to the
Administrative Agent, at the Overnight Rate.

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

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

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

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

          (f) Insufficient Funds. If at any time insufficient funds are received by and
available to the Administrative Agent to pay fully all amounts of principal, L/C Borrowings,
interest and fees then due hereunder, such funds shall be applied (in each case with respect to the
applicable Facility or Facilities) (i) first, toward payment of interest and fees then due
hereunder (other than in respect of Bank Product Debt), ratably among the parties entitled thereto
in accordance with the amounts of interest and fees then due to such parties, (ii) second,
toward payment of the principal amount of any

 

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Overadvance Loans, ratably among the parties entitled thereto in accordance with the amounts
of principal then due to such parties and (iii) third, toward payment of principal, L/C
Borrowings and other obligations in respect of Bank Product Debt then due hereunder, ratably among
the parties entitled thereto in accordance with the amounts of principal, L/C Borrowings and Bank
Product Debt then due to such parties; provided, however, that the proceeds from
the foreclosure of any Collateral shall be applied as set forth in the Intercreditor Agreement.

          SECTION 2.13. Sharing of Payments by Lenders. If any Lender shall, by exercising any
right of setoff or counterclaim or otherwise, obtain payment in respect of (a) Obligations in
respect of any the Facilities due and payable to such Lender hereunder and under the other Loan
Documents at such time in excess of its ratable share (according to the proportion of (i) the
amount of such Obligations due and payable to such Lender at such time to (ii) the aggregate amount
of the Obligations in respect of the Facilities due and payable to all Lenders hereunder and under
the other Loan Documents at such time) of payments on account of the Obligations in respect of the
Facilities due and payable to all Lenders hereunder and under the other Loan Documents at such time
obtained by all the Lenders at such time or (b) Obligations in respect of any of the Facilities
owing (but not due and payable) to such Lender hereunder and under the other Loan Documents at such
time in excess of its ratable share (according to the proportion of (i) the amount of such
Obligations owing (but not due and payable) to such Lender at such time to (ii) the aggregate
amount of the Obligations in respect of the Facilities owing (but not due and payable) to all
Lenders hereunder and under the other Loan Parties at such time) of payment on account of the
Obligations in respect of the Facilities owing (but not due and payable) to all Lenders hereunder
and under the other Loan Documents at such time obtained by all of the Lenders at such time 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 subparticipations
in L/C Obligations and Swing Line Loans of the other Lenders, or make such other adjustments as
shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably
in accordance with the aggregate amount of Obligations in respect of the Facilities then due and
payable to the Lenders or owing (but not due and payable) to the Lenders, as the case may be;
provided that prior to the CAM Exchange Date, each Lender shall only purchase
participations in Loans, L/C Obligations and Swing Line Loans under the Facility with respect to
which they hold a Commitment; and provided further that:

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

     (ii) the provisions of this Section shall not be construed to apply to (A) any payment
made by a Borrower pursuant to and in accordance with the express terms of this Agreement
or (B) any payment obtained by a Lender as consideration for the assignment of or sale of a
participation in any of its Loans or subparticipations in L/C Obligations or Swing Line
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participant, other than to a Borrower or any Subsidiary thereof (as to which the
provisions of this Section 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 exercise against such Loan Party rights of setoff and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of such Loan Party in the
amount of such participation.

          SECTION 2.14. Nature of Obligations. (a) The U.S. Borrowers agree that all U.S.
Obligations of each U.S. Borrower under or in respect of this Agreement or any other Loan Document
shall be joint and several obligations of all the U.S. Borrowers.

          (b) Each U.S. Borrower waives presentment to, demand of payment from and protest to the other
U.S. Borrowers of any of the U.S. Obligations, and also waives notice of acceptance of its
Obligations and notice of protest for nonpayment. The Obligations of a U.S. Borrower hereunder
shall not be affected by (i) the failure of any Lender or the Administrative Agent to assert any
claim or demand or to enforce any right or remedy against the other U.S. Borrowers under the
provisions of this Agreement or any of the other Loan Documents or otherwise; (ii) any rescission,
waiver, amendment or modification of any of the terms or provisions of this Agreement, any of the
other Loan Documents or any other agreement; or (iii) the failure of any Lender to exercise any
right or remedy against any other U.S. Borrower.

          (c) Each U.S. Borrower further agrees that its agreement hereunder constitutes a promise of
payment when due and not of collection, and waives any right to require that any resort be had by
any Lender to any balance of any deposit account or credit on the books of any Lender in favor of
any other U.S. Borrower or any other Person.

          (d) The Obligations of each U.S. Borrower hereunder shall not be subject to any reduction,
limitation, impairment or termination for any reason, including, without limitation, compromise,
and shall not be subject to any defense or setoff, counterclaim, recoupment or termination
whatsoever by reason of the invalidity, illegality or unenforceability of the Obligations of the
other U.S. Borrowers or otherwise. Without limiting the generality of the foregoing, the
Obligations of each U.S. Borrower hereunder shall not be discharged or impaired or otherwise
affected by the failure of the Administrative Agent or any Lender to assert any claim or demand or
to enforce any remedy under this Agreement or under any other Loan Document or any other agreement,
by any waiver or modification in respect of any thereof, by any default, failure or delay, willful
or otherwise, in the performance of the Obligations of the other U.S. Borrowers, or by any other
act or omission which may or might in any manner or to any extent vary the risk of such Borrower or
otherwise operate as a discharge of such Borrower as a matter of law or equity.

          (e) Each U.S. Borrower further agrees that its Obligations hereunder shall continue to be
effective or be reinstated, as the case may be, if at any time payment, or

 

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any part thereof, of principal of or interest on any Obligation of the other U.S. Borrowers is
rescinded or must otherwise be restored by the Administrative Agent or any Lender upon the
occurrence of any event described in Sections 8.01(f) or (g) in respect of such
Borrower, any of the other U.S. Borrowers or otherwise.

          (f) In furtherance of the foregoing and not in limitation of any other right which the
Administrative Agent or any Lender may have at law or in equity against any U.S. Borrower by virtue
hereof, upon the failure of a U.S. Borrower to pay any Obligation when and as the same shall become
due, whether at maturity, by acceleration, after notice of prepayment or otherwise, each other U.S.
Borrower hereby promises to and will, upon receipt of written demand by the Administrative Agent,
forthwith pay, or cause to be paid, in cash the amount of such unpaid U.S. Obligations, and
thereupon each U.S. Appropriate Lender shall, in a reasonable manner, assign the amount of the U.S.
Obligations of the other U.S. Borrowers owed to it and paid by such Borrower pursuant to this
guarantee to such Borrower, such assignment to be pro tanto to the extent to which the Obligations
in question were discharged by such Borrower, or make such disposition thereof as such Borrower
shall direct (all without recourse to any Lender and without any representation or warranty by any
Lender).

          (g) Upon payment by a U.S. Borrower of any amount as provided above, all rights of such
Borrower against another U.S. Borrower, as the case may be, arising as a result thereof by way of
right of subrogation or otherwise shall in all respects be subordinated and junior in right of
payment to the prior indefeasible payment in full of all the U.S. Obligations to the U.S. Revolving
Credit Lenders.

          (h) Each U.S. Borrower, the Administrative Agent and each other Secured Party, hereby
confirms that it is the intention of all such Persons that the agreement and the Obligations of
each U.S. Borrower hereunder not constitute a fraudulent transfer or conveyance for purposes of
Debtor Relief Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or
any similar foreign, federal or state law to the extent applicable to the agreement and the
Obligations of each U.S. Borrower hereunder. To effectuate the foregoing intention, the
Administrative Agent, the other Secured Parties and the U.S. Borrowers hereby irrevocably agree
that the Obligations of each U.S. Borrower hereunder shall be limited to the maximum amount as will
result in the Obligations of such U.S. Borrower hereunder not constituting a fraudulent transfer or
conveyance. Each U.S. Borrower hereby unconditionally and irrevocably agrees that in the event any
payment shall be required to be made to any Secured Party, such U.S. Borrower will contribute, to
the maximum extent permitted by law, such amounts to each other U.S. Borrower so as to maximize the
aggregate amount paid to the Secured Parties under or in respect of the Loan Documents.

          SECTION 2.15. Borrower Agent. Each Borrower hereby irrevocably appoints the Specified
U.S. Borrower, and the Specified U.S. Borrower agrees to act under this Agreement, as the agent and
representative of itself and each other Borrower for all purposes under this Agreement, including
requesting Borrowings, selecting whether any Loan or portion thereof is to bear interest as a Base
Rate Loan, a Canadian Base Rate Loan, a Canadian Prime Rate Loan or a BA Rate Loan, and receiving
account

 

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statements and other notices and communications to Borrowers (or any of them) from the
Administrative Agent. The Agents may rely, and shall be fully protected in relying, on any
Committed Loan Notice, disbursement instructions, reports, information, Borrowing Base Certificate
or any other notice or communication made or given by the Borrower Agent, whether in its own name,
on behalf of any Borrower or on behalf of “the Borrowers,” and the Agents shall have no obligation
to make any inquiry or request any confirmation from or on behalf of any other Borrower as to the
binding effect on such Borrower of any such Committed Loan Notice, instruction, report,
information, Borrowing Base Certificate or other notice or communication from the Borrower Agent,
nor shall any joint and several character of the Borrowers’ liability for the Obligations be
affected.

          SECTION 2.16. Incremental Revolving Credit Commitments. (a) The Specified U.S.
Borrower may, by written notice to the Administrative Agent (signed by a Responsible Officer of the
Specified U.S. Borrower) from time to time after the Restatement Effective Date, request
Incremental Revolving Credit Commitments in an aggregate amount not to exceed $25,000,000 from one
or more Incremental Revolving Credit Lenders (which may include any existing Lender) willing to
provide such Incremental Revolving Credit Commitments in their own discretion; provided
that each Incremental Revolving Credit Lender shall be subject to the approval of the
Administrative Agent and the Issuing Bank (which approvals shall not be unreasonably withheld)
unless such Incremental Revolving Credit Lender is a Lender, an Affiliate of a Lender or an
Approved Fund. Such notice shall set forth (i) the amount of the Incremental Revolving Credit
Commitments being requested, (ii) whether the request is for U.S. Revolving Credit Commitments or
Canadian Revolving Commitments and (iii) the date on which such Incremental Revolving Credit
Commitments are requested to become effective.

     (b) The Borrowers and each Incremental Revolving Credit Lender shall execute and deliver to
the Administrative Agent an Incremental Assumption Agreement and such other documentation as the
Administrative Agent shall reasonably specify to evidence the Incremental Revolving Credit
Commitment of such Incremental Revolving Credit Lender. Each Incremental Revolving Credit
Commitment shall be on the same terms as the U.S. Revolving Credit Commitments or the Canadian
Revolving Credit Commitments, as applicable.

     (c) Each of the parties hereto hereby agrees that, upon the effectiveness of any Incremental
Assumption Agreement, this Agreement shall be deemed amended to the extent (but only to the extent)
necessary to reflect the existence and terms of the Incremental Revolving Credit Commitments
evidenced thereby as provided for in Section 10.01, including, if applicable, by increasing
the Applicable Rate and the Applicable Commitment Fee Rate if, and to the extent, designated in the
applicable Incremental Assumption Agreement (it being agreed that any such increase in the
Applicable Rate or the Applicable Commitment Fee Rate shall apply equally to the Incremental
Revolving Credit Commitments and to all other Revolving Credit Commitments hereunder (and to all
Revolving Credit Loans made on Letter of Credit participations acquired pursuant thereto)). Any
such deemed amendment may be

 

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memorialized in writing by the Administrative Agent with the Borrowers’ consent (not to be
unreasonably withheld) and furnished to the other parties hereto.

     (d) Notwithstanding the foregoing, no Incremental Revolving Credit Commitment shall become
effective under this Section 2.16 unless (i) on the date of such effectiveness, the
conditions set forth in Section 4.02(a) and (b) shall be satisfied and the
Administrative Agent shall have received a certificate to that effect dated such date and executed
by a Responsible Officer of the Specified U.S. Borrower and (ii) the Administrative Agent shall
have received customary legal opinions, board resolutions and other customary closing certificates
and documentation as required by the relevant Incremental Assumption Agreement and, to the extent
required by the Administrative Agent, consistent with those delivered on the Closing Date under
Section 4.01 and such additional customary documents and filings (including amendments to
the Mortgages and other Collateral Documents and title endorsement bringdowns) as the Agents may
reasonably require to assure that the Revolving Credit Loans in respect of Incremental Revolving
Credit Commitments are secured by the Collateral ratably with the existing Revolving Credit Loans.

     (e) Each of the parties hereto hereby agrees that the Administrative Agent may take any and
all action as may be reasonably necessary to ensure that, after giving effect to any increase
pursuant to this Section 2.16, the outstanding Revolving Credit Loans (if any) are held by
the Revolving Credit Lenders in accordance with their new Applicable Percentages. This may be
accomplished at the discretion of the Administrative Agent, following consultation with the
Specified U.S. Borrower, (i) by requiring the outstanding Revolving Credit Loans to be prepaid with
the proceeds of a new Revolving Credit Borrowing, (ii) by causing non-increasing Revolving Credit
Lenders to assign portions of their outstanding Revolving Credit Loans to new or increasing
Revolving Credit Lenders or (iii) by a combination of the foregoing. Any prepayment or assignment
described in this paragraph (e) shall be subject to Section 3.05, but shall otherwise be
without premium or penalty.

ARTICLE III

Taxes, Yield Protection and Illegality

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

          (ii) If any Borrower or the Administrative Agent shall be required by the Code or other
applicable Law to withhold or deduct any Taxes, including both United

 

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

          (b) Payment of Other Taxes by the Loan Parties. Without limiting the provisions of
subsection (a) above, each Loan Party shall timely pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.

          (c) Tax Indemnifications. (i) Without limiting the provisions of subsection
(a) or (b) above, each Borrower shall, and does hereby, jointly and severally,
indemnify the Administrative Agent, each Lender and each L/C Issuer, and shall make payment in
respect thereof within 10 Business 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 such L/C Issuer, 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 Governmental Authority. A
certificate as to the amount of any such payment or liability delivered to the applicable Borrower
by a Lender or an L/C Issuer (with a copy to the Administrative Agent), or by the Administrative
Agent on its own behalf or on behalf of a Lender or an L/C Issuer, shall be conclusive absent
demonstrable manifest error.

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

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

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

          (ii) Without limiting the generality of the foregoing, if a Borrower is resident for tax
purposes in the United States,

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

     (B) each Foreign Lender that is entitled under the Code or any applicable
treaty to an exemption from or reduction of withholding tax with respect to
payments hereunder or under any other Loan Document shall deliver on or before the
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Agreement (or, in the case of a Participant, on or before the date such
Participant purchases the related participation) and promptly upon the
obsolescence, expiration or invalidity of any form previously delivered by such
Foreign Lender to such Borrower and the Administrative Agent (in such number of
copies as shall be requested by the recipient) on or prior to the date on which
such Foreign Lender becomes a Lender (other than as a result of a CAM Exchange)
under this Agreement (and from time to time thereafter upon the request of such
Borrower or the Administrative Agent, but only if such Foreign Lender is legally
entitled to do so), whichever of the following is applicable:

     (I) duly executed, properly completed originals of Internal Revenue
Service Form W-8BEN or any successor thereto claiming eligibility for
benefits of an income tax treaty to which the United States is a party,

     (II) duly executed, properly completed originals of Internal Revenue
Service Form W-8ECI or any successor thereto,

     (III) duly executed, properly completed originals of Internal Revenue
Service Form W-8IMY or any successor thereto and all required supporting
documentation,

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

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

          (iii) Each Lender (except an assignee Lender pursuant to a CAM Exchange under Section
8.04 (in which case any such Lender shall comply with this Section 3.01(e)(iii) to the
extent practicable)) shall promptly (A) notify the applicable Borrower and the Administrative Agent
of any change in circumstances which would modify or render invalid any claimed exemption or
reduction, and (B) take such steps as shall not be materially disadvantageous to it, in the
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and as may be reasonably necessary (including the re-designation of its Lending Office) to
avoid any requirement of applicable Laws of any jurisdiction that such Borrower or the
Administrative Agent make any withholding or deduction for taxes from amounts payable to such
Lender.

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

          SECTION 3.02. Illegality. If any Lender determines in good faith that any Law has
made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any
Lender or its applicable Lending Office to make, maintain or fund Eurodollar Rate Loans or BA Rate
Loans, or to determine or charge interest rates based upon the Eurodollar Rate or BA Rate, or any
Governmental Authority has imposed material restrictions on the authority of such Lender to
purchase or sell, or to take deposits of, Dollars in the London interbank market, then, on notice
thereof by such Lender to the applicable Borrowers through the Administrative Agent, any obligation
of such Lender to make or continue Eurodollar Rate Loans or BA Rate Loans or to convert Base Rate
Loans or Canadian Base Rate Loans to Eurodollar Rate Loans or Canadian Prime Rate Loans to BA Rate
Loans shall be suspended until such Lender notifies the Administrative Agent and the applicable
Borrower that the circumstances giving rise to such determination no longer exist. Upon receipt of
such notice, the applicable Borrower shall, upon demand from such Lender (with a copy to the
Administrative Agent), prepay or, if applicable, convert all Eurodollar Rate Loans or BA Rate Loans
of such Lender to Base Rate Loans, Canadian Base Rate Loans or Canadian Prime Rate Loans, as
applicable, either on the last day of the Interest Period therefor, if such Lender may lawfully
continue to maintain such Eurodollar Rate Loans or BA Rate Loans to such day, or immediately, if
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Rate Loans or BA Rate Loans. Upon any such prepayment or conversion, the applicable Borrower
shall also pay accrued interest on the amount so prepaid or converted.

          SECTION 3.03. Inability to Determine Rates. If the Required Lenders determine that
for any reason in connection with any request for a Eurodollar Rate Loan or a BA Rate Loan or a
conversion to or continuation thereof that (a) Dollar deposits are not being offered to banks in
the London interbank eurodollar market for the applicable amount and Interest Period of such
Eurodollar Rate Loan, (b) adequate and reasonable means do not exist for determining the Eurodollar
Rate or the BA Rate for any requested Interest Period with respect to a proposed Eurodollar Rate
Loan or BA Rate Loan, (c) the Reuters Screen CDOR Page is not available for the timely
determination of the BA Rate, and the BA Rate cannot otherwise be determined in a timely manner in
accordance with the definition of “BA Rate”, or (d) the Eurodollar Rate or BA Rate for any
requested Interest Period with respect to a proposed Eurodollar Rate Loan or BA Rate Loan does not
adequately and fairly reflect the cost to such Lenders of funding such Loan, the Administrative
Agent will promptly so notify the applicable Borrowers and each Lender. Thereafter, the obligation
of the Lenders to make or maintain Eurodollar Rate Loans or BA Rate Loans shall be suspended until
the Administrative Agent (upon the instruction of the Required Lenders) revokes such notice. Upon
receipt of such notice, the applicable Borrower may revoke any pending request for a Borrowing of,
conversion to or continuation of Eurodollar Rate Loans or BA Rate Loans or, failing that, will be
deemed to have converted such request into a request for a Committed Borrowing of Base Rate Loans,
Canadian Base Rate Loans or Canadian Prime Rate Loans, as applicable, in the amount specified
therein.

          SECTION 3.04. Increased Costs; Reserves on Eurodollar Rate Loans. (a) Increased
Costs Generally. Except for Taxes, which are covered in Section 3.01, 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
contemplated by Section 3.04(e)) or any L/C Issuer; or

     (ii) impose on any Lender or any L/C Issuer or the London interbank market any other
condition, cost or expense affecting this Agreement or Eurodollar Rate Loans or BA Rate
Loans 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 Eurodollar Rate Loan or BA Rate Loan (or of maintaining its obligation to make any
such Loan), or to increase the cost to such Lender or such L/C Issuer of participating in, issuing
or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue
any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender or
such L/C Issuer hereunder (whether of principal, interest or any other amount) then, upon request
of such Lender or such L/C

 

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Issuer, the applicable Borrower will pay to such Lender or such L/C Issuer, as the case may be,
such additional amount or amounts as will compensate such Lender or such L/C Issuer, as the case
may be, for such additional costs incurred or reduction suffered.

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

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

          (d) Delay in Requests. Failure or delay on the part of any Lender or any L/C Issuer
to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a
waiver of such Lender’s or such L/C Issuer’s right to demand such compensation, provided
that a Borrower shall not be required to compensate a Lender or an L/C Issuer pursuant to the
foregoing provisions of this Section for any increased costs incurred or reductions suffered more
than nine months prior to the date that such Lender or such L/C Issuer, as the case may be,
notifies such Borrower of the Change in Law giving rise to such increased costs or reductions and
of such Lender’s or such L/C Issuer’s intention to claim compensation therefor (except that, if the
Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month
period referred to above shall be extended to include the period of retroactive effect thereof);
provided further that, a Borrower shall not be required to compensate a Lender or
an L/C Issuer for increased costs or reductions suffered more than nine months after such Change in
Law, except that in the case of any such change having retroactive effect, such period shall be
extended until nine months after the Lender becomes aware of such change.

          (e) Reserves on Eurodollar Rate Loans. Each applicable Borrower shall pay to each
Appropriate Lender, as long as such Lender shall be required to maintain

 

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reserves with respect to liabilities or assets consisting of or including Eurocurrency funds
or deposits (currently known as “Eurocurrency liabilities”), additional interest on the unpaid
principal amount of each Eurodollar Rate Loan equal to the actual costs of such reserves allocated
to such Loan by such Lender (as determined by such Lender in good faith, which determination shall
be conclusive), which shall be due and payable on each date on which interest is payable on such
Loan, provided a Borrower shall have received at least 10 days’ prior notice (with a copy
to the Administrative Agent) of such additional interest from such Lender. If a Lender fails to
give notice 10 days prior to the relevant Interest Payment Date, such additional interest shall be
due and payable 10 days from receipt of such notice.

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

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

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

     (c) any assignment of a Eurodollar Rate Loan or BA Rate Loan on a day other than the
last day of the Interest Period therefor as a result of a request by such Borrower pursuant
to Section 10.13; or

     (d) the occurrence of a CAM Exchange pursuant to Section 8.04;

but excluding any loss of anticipated profits or and any loss or expense arising from the
liquidation or reemployment of funds obtained by it to maintain such Loan or from fees payable to
terminate the deposits from which such funds were obtained. The Borrowers shall also pay any
customary administrative fees charged by such Lender in connection with the foregoing.

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

          SECTION 3.06. Mitigation Obligations; Replacement of Lenders.
(a) Designation of a Different Lending Office. If any Lender requests compensation

 

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

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

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

ARTICLE IV

Conditions Precedent to Credit Extensions

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

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

     (i) executed counterparts of this Agreement in sufficient number for distribution to
the Administrative Agent, the Collateral Agent and each Borrower;

     (ii) a Note executed by each applicable Borrower in favor of each Lender requesting a
Note;

     (iii) the Intercreditor Agreement duly executed by the Collateral Agent, the Trustee
and the Loan Parties;

 

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     (iv) the U.S. Guaranty duly executed by Holdings, the Specified U.S. Borrower and each
U.S. Subsidiary Guarantor;

     (v) (1) the U.S. Security Agreement duly executed by the Administrative Agent, the
Collateral Agent and each U.S. Loan Party and (2) the Canadian Security Agreement duly
executed by the Administrative Agent, the Collateral Agent and each Canadian Loan Party, in
each case together with:

     (A) written evidence reasonably satisfactory to the Administrative Agent that
certificates representing the Pledged Equity referred to therein accompanied by
undated stock powers executed in blank and instruments evidencing the Pledged Debt
indorsed in blank have been delivered to the Noteholder Collateral Agent (as
defined therein), acting as gratuitous bailee of the Collateral Agent,

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

     (C) completed requests for information, dated on or before the date of the
initial Credit Extension, listing all effective financing statements filed in the
jurisdictions referred to in clause (B) above that name any Loan Party as debtor,
together with copies of such other financing statements, and such information shall
reveal no material judgments and no Liens on the Collateral except Liens permitted
under Section 7.01 hereunder or Liens discharged on or prior to the Closing
Date pursuant to a pay-off letter,

     (D) evidence of the completion of all other actions, recordings and filings of
or with respect to the Security Agreement that the Collateral Agent may deem
necessary or desirable in order to perfect the Liens created thereby,

     (E) evidence that all other action that the Collateral Agent may deem
necessary or desirable in order to perfect the Liens created under the Security
Agreement has been taken (including receipt of duly executed payoff letters, UCC-3
termination statements and landlords’ and bailees’ waiver and consent agreements);
and

     (F) the Perfection Certificate, along with completed Schedules thereto, duly
executed by Holdings, the Specified U.S. Borrower and the Canadian Borrower;

provided, that, notwithstanding anything in this Section 4.01(a)(v) to the
contrary, solely with respect to any non-U.S. Collateral, if the perfection of the Collateral
Agent’s security interest in such Collateral may not be accomplished prior to the Closing Date

 

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without undue burden or expense and without the taking of any action that goes beyond commercial
reasonableness, then the delivery of documents and instruments for perfection of such security
interests shall not constitute a condition precedent to the availability of the Revolving Credit
Facility to the U.S. Borrowers (but shall continue to be conditions precedent to the availability
of the Revolving Credit Facility to the Canadian Borrower), and the Loan Parties hereby agree to
deliver or cause to be delivered such documents and instruments, and take or cause to be taken such
other actions as may be required to perfect such security interests within 30 days after the
Closing Date; provided further that in each case, the Administrative Agent may, in
its sole discretion, grant extensions of such time period;

     (vi) deeds of trust, trust deeds, deeds to secure debt, and mortgages, in
substantially the form of Exhibit H (with such changes as may be reasonably
satisfactory to the Administrative Agent and its counsel to account for local law matters)
and otherwise in form and substance reasonably satisfactory to the Administrative Agent and
covering the properties listed on Schedule 4.01(a)(vi) (together with the
Assignments of Leases and Rents referred to therein and each other mortgage delivered
pursuant to Section 6.12, in each case as amended, the “Mortgages”), duly
executed by the appropriate Loan Party, together with:

     (A) evidence that counterparts of the Mortgages have been duly executed,
acknowledged and delivered and are in form suitable for filing or recording in all
filing or recording offices that the Administrative Agent may deem necessary or
desirable in order to create a valid (junior only to the Liens securing the Senior
Secured Notes) and subsisting Lien on the property described therein in favor of
the Administrative Agent for the benefit of the Secured Parties and that all
filing, documentary, stamp, intangible and recording taxes and fees have been paid,

     (B) fully paid American Land Title Association Lender’s Extended Coverage
title insurance policies (the “Mortgage Policies”) in form and substance,
with endorsements (together with any of the following (i) a zoning endorsement,
(ii) a zoning compliance letter from the applicable municipality or (iii) a zoning
report from Planning and Zoning Resources Corporation, in each case satisfactory to
the Administrative Agent in its reasonable discretion) and in amounts acceptable to
the Administrative Agent in its reasonable discretion (such amount not to exceed
the value of the property in cases where tie-in endorsements are available or, if
not available, 10% of the value of such property), issued, coinsured and reinsured
by title insurers reasonably acceptable to the Administrative Agent, insuring the
Mortgages to be valid and subsisting Liens on the property described therein, free
and clear of all defects (including, but not limited to, mechanics’ and
materialmen’s Liens) and encumbrances, excepting only Permitted Encumbrances and
other Liens permitted under the Loan Documents, and providing for such other
affirmative insurance (including endorsements for future advances under the Loan
Documents, for mechanics’ and materialmen’s Liens and for zoning of the applicable

 

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property) and such coinsurance and direct access reinsurance as the
Administrative Agent may reasonably deem necessary or desirable,

     (C) American Land Title Association/American Congress on Surveying and Mapping
form surveys, for which all necessary fees (where applicable) have been paid, and
dated (i) no more than 30 days before the day of the initial Credit Extension,
certified to the Administrative Agent and the issuer of the Mortgage Policies in a
manner satisfactory to the Administrative Agent by a land surveyor duly registered
and licensed in the States in which the property described in such surveys is
located and acceptable to the Administrative Agent or (ii) an earlier date together
with an affidavit from the applicable Borrower and survey coverage and survey
endorsements from title insurers reasonably acceptable to the Administrative
Agent), showing all buildings and other improvements, any off-site improvements,
the location of any easements, parking spaces, rights of way, building set-back
lines and other dimensional regulations and the absence of encroachments, either by
such improvements or on to such property, and other defects, other than Liens
permitted under Section 7.03(h), encroachments and other defects reasonably
acceptable to the Administrative Agent; provided that notwithstanding
anything in this clause (C) to the contrary, to the extent that the Mortgage
Policies for the properties listed on Schedule 4.01(a)(v)(i) hereto include
no survey exception without the need to comply with this clause (C), this clause
(C) shall not apply with respect to such property,

     (D) a favorable opinion of local counsel to the Loan Parties in the states in
which the Properties are located, addressed to the Administrative Agent, the
Collateral Agent and each Lender, with respect to the enforceability and perfection
of the Mortgages and any related fixture filings, substantially in the form of
Exhibit J-3 (with such changes as may be reasonably satisfactory to the
Administrative Agent and its counsel, including changes to account for local law
matters), and with respect to such other matters concerning the Loan Parties and
the Loan Documents as the Required Lenders may reasonably request,

     (E) evidence of the insurance required by the terms of the Mortgages, and

     (F) such other consents, agreements and confirmations of lessors and third
parties as the Collateral Agent may reasonably deem necessary or desirable and
evidence that all other actions that the Collateral Agent may reasonably deem
necessary or desirable in order to create valid and subsisting Liens on the
property described in the Mortgages has been taken;

provided, that, notwithstanding anything in this Section 4.01(a)(vi) to the
contrary, no mortgages, title insurance policies, surveys or other customary documentation relating
to

 

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real property Collateral (the “Real Estate Collateral Deliverables”), will be delivered
prior to or on the Closing Date and the delivery of such Real Estate Collateral Deliverable shall
not constitute a condition precedent to the availability of the Revolving Credit Facility, and the
Loan Parties hereby agree to deliver such Real Estate Collateral Deliverable (including related
legal opinions as to matters of (i) enforceability and perfection of the Mortgages and any related
fixture filings, and (ii) corporate formalities, as the Administrative Agent may reasonably
request) within the earlier of 120 days after the Closing Date and the time at which any such real
property Collateral secures, or Real Estate Collateral Deliverable is delivered in respect of, the
Senior Secured Notes; provided further that in each case, the Administrative Agent
may, in its sole discretion, grant extensions of such time period;

     (vii) (1) an intellectual property security agreement, in substantially the form of
Exhibit B to the U.S. Security Agreement (together with each other intellectual
property security agreement and intellectual property security agreement supplement
delivered pursuant to Section 6.12, in each case as amended, the “U.S.
Intellectual Property Security Agreement”) and (2) an intellectual property security
agreement, in substantially the form of Exhibit B to the Canadian Security Agreement
(together with each other intellectual property security agreement and intellectual
property security agreement supplement delivered pursuant to Section 6.12, in each
case as amended, the “Canadian Intellectual Property Security Agreement”), duly
executed by each U.S. Loan Party and Canadian Loan Party, as applicable, together with
evidence that all action that the Collateral Agent may deem necessary or desirable in order
to perfect the Liens created under the U.S. Intellectual Property Security Agreement and
the Canadian Intellectual Property Security Agreement has been taken;

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

     (ix) such documents and certifications as the Agents may reasonably require to
evidence that each Loan Party is duly organized or formed, and that each Loan Party is
validly existing, in good standing and qualified to engage in business in each jurisdiction
where its ownership, lease or operation of properties or the conduct of its business
requires such qualification, except to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect;

     (x) a favorable opinion of Paul, Weiss, Rifkind, Wharton & Garrison LLP, counsel to
the Loan Parties, addressed to the Agents and each Lender, as to the matters set forth in
Exhibit J-1 and such other matters concerning the Loan Parties and the Loan
Documents as the Administrative Agent may reasonably request;

 

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     (xi) a favorable opinion of Bennett Jones LLP, Canadian counsel to the Loan Parties,
addressed to the Agents and each Lender, as to the matters set forth in Exhibit J-2
and such other matters concerning the Canadian Loan Parties and the Canadian Loan Documents
as the Administrative Agent may reasonably request;

     (xii) favorable opinions of local counsel to the Loan Parties in the United States
(other than in such jurisdictions as are addressed in Schedule 6.20) addressed to
the Administrative Agent and each Lender, as to such matters concerning the Loan Parties
and the Loan Documents as the Administrative Agent may reasonably request;

     (xiii) a certificate signed by a Responsible Officer of each of the Specified U.S.
Borrower and the Canadian Borrower certifying (A) that the conditions specified in
Sections 4.02(a), (b) and (d) have been satisfied and (B) that there has
been no event or circumstance since the date of the Audited Financial Statements that has
had or could be reasonably expected to have, either individually or in the aggregate, a
Material Adverse Effect;

     (xiv) the Administrative Agent shall have received certification as to the
consolidated financial condition and solvency of Holdings and its subsidiaries (after
giving effect to the Transaction and the incurrence of indebtedness related thereto), from
the chief financial officer of Holdings;

     (xv) evidence that all insurance required to be maintained pursuant to the Loan
Documents has been obtained and is in effect, together with endorsements naming the
Collateral Agent, on behalf of the Lenders, as an additional insured or loss payee, as the
case may be, under all insurance policies maintained with respect to the assets and
properties of the Loan Parties that constitutes Collateral (and the Required Lenders shall
be reasonably satisfied with the amount, types and terms and conditions of all insurance
maintained by the Loan Parties and their subsidiaries); and

     (xvi) such other assurances, certificates, documents, consents or opinions as the
Administrative Agent, the Collateral Agent, the L/C Issuers, the Swing Line Lenders or any
Lender reasonably may require.

          (b) (i) All fees (to the extent invoiced) required to be paid to the Agents (including the
fees and expenses of counsel (including any local counsel) for the Agents) and the Bookrunner on or
before the Closing Date shall have been paid and (ii) all fees required to be paid to the Lenders
on or before the Closing Date shall have been paid.

          (c) Receipt of all governmental, shareholder and third party consents and approvals necessary
in connection with the Transaction and the related financings and other transactions contemplated
hereby.

          (d) There shall not have occurred since December 31, 2007 any event or condition that has had
or could be reasonably expected, either individually or in the

 

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aggregate, to have a Material Adverse Effect; provided that neither (i) the Company’s
financial results for its fiscal quarter ending March 29, 2008, as disclosed in the March 10-Q nor
(ii) any event occurring prior to March 29, 2008 as and to the extent specifically described in the
March 10-Q as to which there has been no adverse change in status or effect on the Company from
that set forth in the March 10-Q shall be deemed to constitute a Material Adverse Effect;
provided further that the March 29, 2008 financial results and such other events
may be considered in determining whether a Material Adverse Effect exists in a future period or on
a cumulative basis.

          (e) The absence of any action, suit, investigation or proceeding pending or, to the knowledge
of the Borrowers, threatened in any court or before any arbitrator or governmental authority that
could reasonably be expected to have a Material Adverse Effect.

          (f) The Administrative Agent shall have received a certificate from the chief financial
officer of Holdings setting forth computations in reasonable detail satisfactory to the
Administrative Agent demonstrating the incremental amount of Indebtedness the Specified U.S.
Borrower would be permitted to incur on the Closing Date under the 2012 Senior Subordinated Notes
Indenture.

          (g) The Senior Secured Notes shall have been issued on the terms and conditions set forth in
the Senior Secured Notes Offering Memorandum delivered to the Administrative Agent on June 2, 2008
and to the extent not set forth in such offering memorandum, on terms and conditions reasonably
satisfactory to the Administrative Agent.

          (h) Excess Availability on the Closing Date (after giving effect to the Transaction) shall
not be less than $25,000,000.

          (i) The Lenders shall have received all documentation and other information required by
regulatory authorities under applicable “know your customer” and anti-money laundering rules and
regulations, including without limitation the PATRIOT Act.

          (j) All indebtedness and other amounts due or outstanding in respect of the Existing Credit
Agreement shall have been (or substantially simultaneously with the Closing Date shall be) paid in
full, all commitments in respect thereof terminated and all guarantees thereof and security
therefor discharged and released. After giving effect to the Transactions and the other
transactions contemplated hereby, Holdings and its subsidiaries shall have outstanding no
Indebtedness or preferred stock other than (a) the loans and other extensions of credit under the
Revolving Credit Facility, (b) the Senior Secured Notes, (c) the 2012 Senior Subordinated Notes and
(d) other Indebtedness permitted hereunder or previously identified to the Bookrunner.

Without limiting the generality of the provisions of the last paragraph of Section 9.03,
for purposes of determining compliance with the conditions specified in this Section 4.01,
each Lender that has signed this Agreement shall be deemed to have consented to,

 

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approved or accepted or to be satisfied with, each document or other matter required thereunder to
be consented to or approved by or acceptable or reasonably satisfactory to a Lender unless the
Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date
specifying its objection thereto.

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

          (a) The representations and warranties of each Borrower and each other Loan Party contained
in Article V or any other Loan Document shall be true and correct in all material respects
(or in all respects in the case of any representations and warranties qualified by materiality) on
and as of the date of such Credit Extension, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they shall be true and correct in
all material respects (or in all respects in the case of any representations and warranties
qualified by materiality) as of such earlier date, and except that for purposes of this Section
4.02, the representations and warranties contained in Sections 5.05(a) and (b)
shall be deemed to refer to the most recent statements furnished pursuant to Sections
6.01(a) and (b), respectively.

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

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

          (d) (i) The lesser of (A) the Total Borrowing Base and (B) the Revolving Credit Facility,
exceeds the Outstanding Amount of the Revolving Credit Loans, Swing Line Loans and L/C Obligations
at such time, after giving effect to such Credit Extension, (ii) the lesser of (A) the U.S.
Borrowing Base and (B) the U.S. Revolving Credit Facility, exceeds the Outstanding Amount of the
U.S. Revolving Credit Loans, U.S. Swing Line Loans and U.S. L/C Obligations at such time, after
giving effect to such Credit Extension and (iii) the lesser of (A) the Canadian Borrowing Base and
(B) the Canadian Revolving Credit Facility, exceeds the Outstanding Amount of the Canadian
Revolving Credit Loans, Canadian Swing Line Loans and Canadian L/C Obligations at such time, after
giving effect to such Credit Extension.

          (e) The making of such Credit Extension shall not cause the Borrower to be in default under
the covenants (including the restrictions on liens and debt) contained in any document evidencing
Junior Financing and each document evidencing Indebtedness incurred pursuant to Section
7.03(a), (b), (c) or (e).

          Each Request for Credit Extension (other than a Committed Loan Notice requesting only a
conversion of Loans to the other Type or a continuation of Eurodollar Rate Loans) submitted by a
Borrower shall be deemed to be a representation and

 

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warranty that the conditions specified in Sections 4.02(a), (b) and (d) have
been satisfied on and as of the date of the applicable Credit Extension.

ARTICLE V

Representations and Warranties

          Each of Holdings and each Borrower represents and warrants to the Administrative Agent and the
Lenders that:

          SECTION 5.01. Existence, Qualification and Power; Compliance with Laws. Each Loan
Party and each of its Subsidiaries (a) is a Person duly organized or formed, validly existing and
in good standing under the Laws of the jurisdiction of its incorporation or organization, (b) has
all requisite power and authority to (i) own or lease its assets and carry on its business and (ii)
execute, deliver and perform its obligations under the Loan Documents to which it is a party, and
(c) is duly qualified and in good standing under the Laws of each jurisdiction where its ownership,
lease or operation of properties or the conduct of its business requires such qualification, except
in each case referred to in clause (c) to the extent that failure to do so could not reasonably be
expected to have a Material Adverse Effect.

          SECTION 5.02. Authorization; No Contravention. The execution, delivery and
performance by each Loan Party of each Loan Document to which such Person is a party are within
such Loan Party’s corporate or other powers, have been duly authorized by all necessary corporate
or other organizational action, and do not and will not (a) contravene the terms of any of such
Person’s Organization Documents, (b) conflict with or result in any breach or contravention of, or
the creation of any Lien under (other than as permitted by Section 7.01), or require any
payment to be made under (i) any Contractual Obligation to which such Person is a party or
affecting such Person or the properties of such Person or any of its Subsidiaries or (ii) any
material order, injunction, writ or decree of any Governmental Authority or any arbitral award to
which such Person or its property is subject; or (c) violate any Law; except with respect to any
conflict, breach or contravention or payment (but not creation of Liens) referred to in clause
(b)(i), to the extent that such conflict, breach, contravention or payment could not reasonably be
expected to have a Material Adverse Effect.

          SECTION 5.03. Governmental Authorization; Other Consents. No approval, consent,
exemption, authorization, or other action by, or notice to, or filing with, any Governmental
Authority or any other Person is necessary or required in connection with (a) the execution,
delivery or performance by, or enforcement against, any Loan Party of this Agreement or any other
Loan Document, (b) the grant by any Loan Party of the Liens granted by it pursuant to the
Collateral Documents, (c) the perfection or maintenance of the Liens created under the Collateral
Documents (including the priority thereof) or (d) the exercise by any Agent or any Lender of its
rights under the Loan Documents or the remedies in respect of the Collateral pursuant to the
Collateral Documents, except for (i) filings necessary to perfect the Liens on the Collateral
granted by the Loan Parties in favor of the Collateral Agent (which filings are disclosed in the

 

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Perfection Certificate) or (ii) the approvals, consents, exemptions, authorizations, actions,
notices and filings which have been duly obtained, taken, given or made and are in full force and
effect.

          SECTION 5.04. Binding Effect. This Agreement and each other Loan Document has been
duly executed and delivered by each Loan Party that is party thereto. This Agreement and each
other Loan Document constitutes, a legal, valid and binding obligation of such Loan Party,
enforceable against each Loan Party that is party thereto in accordance with its terms, except as
such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership,
moratorium or other laws affecting creditors’ rights generally and by general principles of equity.

          SECTION 5.05. Financial Statements; No Material Adverse Effect.
(a) The Audited Financial Statements (i) were prepared in accordance with GAAP consistently
applied throughout the period covered thereby, except as otherwise expressly noted therein and (ii)
fairly present in all material respects the financial condition of Holdings and its consolidated
Subsidiaries as of the date thereof and their results of operations for the period covered thereby
in accordance with GAAP consistently applied throughout the period covered thereby, except as
otherwise expressly noted therein. During the period from December 31, 2007 to and including the
Closing Date, there has been (i) no sale, transfer or other disposition by Holdings or any of its
consolidated Subsidiaries of any material part of the business or property of Holdings and its
consolidated Subsidiaries, taken as a whole and (ii) no purchase or other acquisition by any of
them of any business or property (including any Equity Interests of any other Person) material in
relation to the consolidated financial condition of Holdings and its consolidated Subsidiaries,
taken as a whole, in each case, which is not reflected in the foregoing financial statements or in
the notes thereto or has not otherwise been disclosed in writing to the Lenders prior to the
Closing Date. From December 31, 2007 to the Closing Date, except as set forth on Schedule
5.05 to the Original Credit Agreement, Holdings and its Subsidiaries have not incurred any
material Indebtedness or other liabilities, direct or contingent, that, in accordance with GAAP,
would be required to be disclosed in Holdings’ financial statements.

          (b) The unaudited consolidated balance sheet of Holdings and its Subsidiaries dated March 29,
2008, and the related consolidated statements of income or operations, stockholder’s investment and
cash flows for the fiscal quarter ended on that date (i) were prepared in accordance with GAAP
consistently applied through the period covered thereby, except as otherwise expressly noted
therein, and (ii) fairly present the financial condition of Holdings and its Subsidiaries as of the
date thereof and their results of operations for the period covered thereby, subject, in the case
of clauses (i) and (ii), to the absence of footnotes and to normal year-end audit adjustments.

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

 

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          (d) The consolidated forecasted balance sheets, statements of income and cash flows of
Holdings and its Subsidiaries delivered pursuant to Section 4.01 or Section 6.01(d)
were prepared in good faith on the basis of the assumptions stated therein, which assumptions were
reasonable in light of the conditions existing at the time of delivery of such forecasts; it being
understood that actual results may vary from such forecasts and that such variations may be
material.

          SECTION 5.06. Litigation. Except as set forth on Schedule 5.06 to the
Original Credit Agreement, there are no actions, suits, proceedings, claims or disputes pending or,
to the knowledge of any Borrower, threatened or contemplated, at law, in equity, in arbitration or
before any Governmental Authority, by or against Holdings or any of its Subsidiaries or against any
of their properties or revenues that (a) purport to affect or pertain to this Agreement or any
other Loan Document or (b) either individually or in the aggregate, could reasonably be expected to
have a Material Adverse Effect.

          SECTION 5.07. No Default. None of Holdings, the Specified U.S. Borrower or any
Subsidiary is in default under or with respect to, or a party to, any Contractual Obligation that
could, either individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.

          SECTION 5.08. Ownership of Property; Liens. (a) Each Loan Party and each of its
Subsidiaries has good record and indefeasible title in fee simple to, or valid leasehold interests
in, all real property, free and clear of all Liens except for minor defects in title that do not
materially interfere with its ability to conduct its business or to utilize such assets for their
intended purposes and Liens permitted by Section 7.01.

          (b) Set forth on Schedule 5.08(b) to the Original Credit Agreement is a complete and
accurate list of all real property owned by any Loan Party or any of its Subsidiaries located in
the United States or Canada, as of the Closing Date, showing as of the Closing Date the street
address (to the extent available), county or other relevant jurisdiction, state and record owner.

          (c) Set forth on Schedule 5.08(c) to the Original Credit Agreement is a complete and
accurate list of all material leases of domestic and Canadian real property located in the U.S. or
Canada under which any Loan Party or any of its Subsidiaries is the lessee as of the Closing Date,
showing as of the Closing Date the street address, county or other relevant jurisdiction (to the
extent available), state, lessor and lessee. Each such lease is the legal, valid and binding
obligation of the lessee thereof, enforceable in accordance with its terms.

          SECTION 5.09. Environmental Compliance. Except as specifically disclosed on
Schedule 5.09 to the Original Credit Agreement.

          (a) Each Loan Party and each of its Subsidiaries, and each Subsidiary of their operations and
properties is, and for the past three years, has been, in compliance with all applicable
Environmental Laws except to the extent any non-compliance could not reasonably be expected to
result in a material liability.

 

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          (b) Except as could not reasonably be expected to result in a material liability, there are
no pending actions, claims, notices of violation or potential responsibility, or proceedings
alleging liability under or non-compliance with any Environmental Law on the part of any Loan Party
or any of its Subsidiaries.

          (c) Except as could not reasonably be expected to have a Material Adverse Effect, (i) none of
the properties currently or, to the knowledge of any Loan Party formerly, owned or operated by any
Loan Party or any of its Subsidiaries is listed or to the knowledge of any Loan Party proposed for
listing on the NPL or on the CERCLIS or any analogous foreign, state, provincial, territorial,
municipal or local list; (ii) there are no and never have been any underground or aboveground
storage tanks or any surface impoundments, septic tanks, pits, sumps or lagoons in which Hazardous
Materials are being or have been treated, stored or disposed on any property currently owned or
operated by any Loan Party or any of its Subsidiaries or, to its knowledge, on any property
formerly owned or operated by any Loan Party or any of its Subsidiaries in each case, that would
reasonably be expected to result in a material liability; (iii) there is no asbestos or
asbestos-containing material in friable form or condition on any property currently owned or
operated by any Loan Party or any of its Subsidiaries; and (iv) Hazardous Materials have not been
Released on, under or from any property currently or, to their knowledge, formerly owned or
operated by any Loan Party or any of its Subsidiaries except for such releases, discharges or
disposal that were in material compliance with Environmental Laws.

          (d) None of the properties of the Loan Parties contain any Hazardous Materials in amounts or
concentrations which (i) constitute a violation of or (ii) could give rise to liability under,
Environmental Laws, which violations and liabilities, in the aggregate, could reasonably be
expected to result in a Material Adverse Effect.

          (e) Neither any Loan Party nor any of its Subsidiaries is undertaking, and has not completed,
either individually or together with other potentially responsible parties, any investigation or
assessment or response or other corrective action relating to any actual or threatened Release of
Hazardous Materials at, on, under or from any location, either voluntarily or pursuant to the order
of any Governmental Authority or the requirements of any Environmental Law except for any such
investigations, assessments, responses or other actions that, in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

          (f) Except as disclosed on Schedule 5.09 to the Original Credit Agreement, all
Hazardous Materials generated, used, treated, handled or stored at, or transported to or from, any
property currently or formerly owned or operated by any Loan Party or any of its Subsidiaries have
been disposed of in a manner which would not reasonably expected to result in a Material Adverse
Effect.

          SECTION 5.10. Insurance. The properties of each Loan Party and its Subsidiaries are
insured with financially sound and reputable insurance companies, in such amounts (after giving
effect to any self-insurance reasonable and customary for similarly situated Persons engaged in the
same or similar businesses as Specified U.S.

 

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Borrower and its Subsidiaries) with such deductibles and covering such risks as are
customarily carried by prudent companies engaged in similar businesses and owning similar
properties in localities where each Loan Party or the applicable Subsidiary operates and as
required by Sections 6.07 and 6.18.

          SECTION 5.11. Taxes. Each Loan Party and its Subsidiaries have filed all federal and
material provincial and material state, territorial, foreign and other material tax returns and
reports required to be filed, and have paid all federal and material provincial and material state,
territorial and other material taxes, assessments, fees and other governmental charges levied or
imposed upon them or their properties, income or assets otherwise due and payable, except those (a)
which are not overdue by more than 45 days or (b) which are being contested in good faith by
appropriate proceedings diligently conducted and for which adequate reserves have been provided in
accordance with GAAP.

          SECTION 5.12. ERISA Compliance. (a) Except as could not reasonably be expected to
result in a material liability to the Borrowers, each Plan is in compliance in all material
respects with the applicable provisions of ERISA, the Code and other applicable Federal or state
Laws. Except as could not reasonably be expected to result in a material liability to the
Borrowers, each Plan that is intended to qualify under Section 401(a) of the Code has received a
favorable determination letter from the IRS, or has been established pursuant to a prototype plan
that has received a favorable opinion letter from the IRS or an application for such a letter is
currently being processed by the IRS with respect thereto and, to the knowledge of any Borrower,
nothing has occurred which would prevent, or cause the loss of, such qualification. Except as
could not reasonably be expected to result in a material liability to the Borrowers, each Loan
Party and each ERISA Affiliate have made all required contributions to each Plan subject to Section
412 of the Code, and no application for a funding waiver or an extension of any amortization period
pursuant to Section 412 of the Code has been made with respect to any Plan.

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

          (c) (i) No ERISA Event has occurred within the prior 2 years or, to the knowledge of the
Borrowers, is reasonably expected to occur; (ii) no Pension Plan has an “accumulated funding
deficiency” (as defined in Section 412 of the Code), whether or not waived, and no application for
a waiver of the minimum funding standard has been filed with respect to any Pension Plan; (iii)
neither any Loan Party 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); (iv) neither any Loan Party 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

 

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Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; (v) neither any Loan
Party nor any ERISA Affiliate has engaged in a transaction that could be subject to Sections 4069
or 4212(c) of ERISA; and (vi) the present value of all accumulated benefit obligations of all
underfunded Pension Plans (based on the assumptions used for purposes of Statement of Financial
Accounting Standards No. 87) did not, as of the date of the most recent financial statements
reflecting such amounts, exceed by more than $40,000,000 the fair market value of the assets of all
such underfunded Pension Plans; except, with respect to each of the foregoing clauses of this
Section 5.12(c), as could not reasonably be expected, individually or in the aggregate, to
result in a Material Adverse Effect.

          (d) Except where noncompliance would not reasonably be expected to result in a Material
Adverse Effect, each Foreign Plan has been maintained in substantial compliance with its terms and
with the requirements of any and all applicable laws, statutes, rules, regulations and orders and
has been maintained, where required, in good standing with applicable Governmental Authorities, and
neither the Specified U.S. Borrower nor any Subsidiary have incurred any material obligation in
connection with the termination of or withdrawal from any Foreign Plan.

          SECTION 5.13. Subsidiaries; Equity Interests; Loan Parties. As of the Closing Date,
each Loan Party has no Subsidiaries other than those specifically disclosed in Schedule
5.13 to the Original Credit Agreement, and all of the outstanding Equity Interests in such
Subsidiaries have been validly issued, are fully paid and non-assessable and are owned free and
clear of all Liens except (i) those created under the Collateral Documents, (ii) Liens securing the
Senior Secured Notes and (iii) any nonconsensual Lien that is permitted under Section 7.01.
As of the Closing Date, no Loan Party has any equity investments in any other corporation or
entity other than those specifically disclosed in Schedule 5.13 to the Original Credit
Agreement.

          SECTION 5.14. Margin Regulations; Investment Company Act. (a) The Borrowers are not
engaged and will not engage, principally or as one of their important activities, in the business
of purchasing or carrying margin stock (within the meaning of Regulation U issued by the FRB), or
extending credit for the purpose of purchasing or carrying margin stock and no Credit Extension
will be used to purchase or carry any margin stock or to extend credit to others for the purpose of
purchasing or carrying any margin stock. Holdings and the Borrowers do not own any margin stock.

          (b) None of Holdings, the Specified U.S. Borrower, any Person Controlling Holdings, the
Specified U.S. Borrower or any Subsidiary is or is required to be registered as an “investment
company” under the Investment Company Act of 1940.

          SECTION 5.15. Disclosure. No report, financial statement, certificate or other
information (including, without limitation, the Information Memorandum) furnished (whether in
writing or orally) by or on behalf of any Loan Party to the Administrative Agent or any Lender in
connection with the transactions contemplated hereby and the negotiation of this Agreement or
delivered hereunder or any other Loan Document (as modified or supplemented by other information so
furnished) contains any

 

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material misstatement of fact or omits to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not materially
misleading; provided that, with respect to projected financial information, Holdings and
the Specified U.S. Borrower represent only that such information was prepared in good faith based
upon assumptions believed to be reasonable at the time of preparation; it being understood that
such projections may vary from actual results and that such variances may be material.

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

          SECTION 5.17. Intellectual Property; Licenses, Etc. Each Loan Party and its
Subsidiaries own, or possess the right to use, all of the trademarks, service marks, trade names,
copyrights, patents, patent rights, franchises, licenses and other intellectual property rights
(collectively, “IP Rights”) that are necessary for the operation of their respective
businesses as currently conducted, without, to the knowledge of the Borrowers, conflict with the
rights of any other Person, except to the extent such conflicts or failures to own or possess such
rights, either individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect. No claim or litigation regarding any of the foregoing is pending or, to
the knowledge of the Borrowers, threatened, which, either individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect.

          SECTION 5.18. Solvency. Each Loan Party is, individually and together with its
Subsidiaries on a consolidated basis, Solvent.

          SECTION 5.19. Casualty, Etc. Neither the business nor the properties of any Loan
Party or any of its Subsidiaries are affected by any fire, explosion, accident, strike, lockout or
other labor dispute, drought, storm, hail, earthquake, embargo, act of God or of the public enemy
or other casualty (whether or not covered by insurance) that could reasonably be expected to have a
Material Adverse Effect.

          SECTION 5.20. Perfection, Etc. All filings and other actions necessary or desirable
to perfect and protect the Liens in the Collateral created under the Collateral Documents and to
render such Liens opposable to third parties have been or will be, during the periods required by
the Loan Documents, duly made or taken and are in full force and effect, and the Collateral
Documents are effective to create in favor of (i) the Collateral Agent for the benefit of the
Secured Parties and (ii) the Collateral Agent for the benefit of the Canadian Secured Parties, a
valid and, together with such filings and other actions, perfected first priority Lien in the U.S.
Collateral and the Canadian Collateral, respectively, securing the payment of the Secured
Obligations (in the case of the U.S. Collateral) and the Canadian Obligations (in the case of the
Canadian Collateral), subject

 

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to Liens permitted by Section 7.01. The Loan Parties are the legal and beneficial
owners of the Collateral free and clear of any Lien, except for the Liens created under the Loan
Documents and permitted by Section 7.01.

          SECTION 5.21. Senior Debt. The Obligations constitute “Senior Debt” and “Designated
Senior Debt” under and as defined in the 2012 Senior Subordinated Notes Indenture.

          SECTION 5.22. Tax Shelter Regulations. The Specified U.S. Borrower does not intend to
treat the Loans and/or Letters of Credit and related transactions as being a “reportable
transaction” (within the meaning of Treasury Regulation Section 1.6011-4). In the event the
Specified U.S. Borrower determines to take any action inconsistent with such intention, it will
promptly notify the Administrative Agent thereof. If the Specified U.S. Borrower so notifies the
Administrative Agent, the Specified U.S. Borrower acknowledges that one or more of the Lenders may
treat its Loans and/or its interest in Swing Line Loans and/or Letters of Credit as part of a
transaction that is subject to Treasury Regulation Section 301.6112-1, and such Lender or Lenders,
as applicable, may maintain the lists and other records required by such Treasury Regulation.

          SECTION 5.23. Anti-Terrorism Law. (a) No Loan Party and, to the knowledge of the
Borrowers, none of their Affiliates is in violation of any laws relating to terrorism or money
laundering (“Anti-Terrorism Laws”), including Executive Order No. 13224 on Terrorist Financing,
effective September 24, 2001 (the “Executive Order”), the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law
107-56 or the Proceeds of Crime (Money-Laundering) and Terrorist Financing Act (Canada).

          (b) No Loan Party and to the knowledge of the Loan Parties, no Affiliate or broker or other
agent of any Loan Party acting or benefiting in any capacity in connection with the Loans is any of
the following:

     (i) a person that is listed in the annex to, or is otherwise subject to the provisions
of, the Executive Order;

     (ii) a person owned or controlled by, or acting for or on behalf of, any person that
is listed in the annex to, or is otherwise subject to the provisions of, the Executive
Order;

     (iii) a person with which any Lender is prohibited from dealing or otherwise engaging
in any transaction by any Anti-Terrorism Law;

     (iv) a person that commits, threatens or conspires to commit or supports “terrorism”
as defined in the Executive Order; or

     (v) a person that is named as a “specially designated national and blocked person” on
the most current list published by the U.S. Treasury Department Office of Foreign Assets
Control (“OFAC”) at its official website or any

 

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replacement website or other replacement official publication of such list or
similarly named by any similar foreign Governmental Authority.

          (c) No Loan Party and, to the knowledge of the Borrowers, no broker or other agent of any
Loan Party acting in any capacity in connection with the Loans (i) conducts any business or engages
in making or receiving any contribution of funds, goods or services to or for the benefit of any
person described in paragraph (b) above, (ii) deals in, or otherwise engages in any transaction
relating to, any property or interests in property blocked pursuant to the Executive Order, or
(iii) engages in or conspires to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any
Anti-Terrorism Law.

          SECTION 5.24. Accounts. Without limiting the provisions of Section 5.15 or
the statements contained in any Borrowing Base Certificate, each Borrower hereby represents and
warrants that the statements in each Borrowing Base Certificate are or will be when such Borrowing
Base Certificate is delivered true and correct in all material respects. The Agents may rely, in
determining which Accounts are Eligible Receivables, on all statements and representations made by
the Borrowers with respect thereto. Each Borrower warrants, with respect to each Account at the
time it is shown as an Eligible Receivable in a Borrowing Base Certificate, that:

     (a) it is genuine and in all respects what it purports to be, and is not evidenced by
a judgment;

     (b) it arises out of a completed, bona fide sale and delivery of goods in the ordinary
course of business, and substantially in accordance with any purchase order, contract or
other document relating thereto;

     (c) it is for a sum certain, maturing as stated in the invoice covering such sale, a
copy of which has been furnished or is available to the Administrative Agent on request;

     (d) it is not subject to any offset, Lien (other than the Collateral Agent’s Lien and
the Trustee’s Lien), deduction, defense, dispute, counterclaim or other adverse condition
except as arising in the ordinary course of business and disclosed to the Administrative
Agent; and it is absolutely owing by the Account Debtor, without contingency in any
respect;

     (e) no purchase order, agreement, document or Applicable Law restricts assignment of
the Account to the Administrative Agent (regardless of whether, under the UCC or the PPSA,
the restriction is ineffective), and the applicable Borrower is the sole payee or
remittance party shown on the invoice;

     (f) no extension, compromise, settlement, modification, credit, deduction or return
has been authorized with respect to the Account, except discounts or allowances granted in
the ordinary course of business for prompt payment that are reflected on the face of the
invoice related thereto and in the reports submitted to the Administrative Agent hereunder;
and

 

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     (g) to the best of each Borrower’s knowledge, (i) there are no facts or circumstances
that are reasonably likely to impair the enforceability or collectibility of such Account;
(ii) the Account Debtor had the capacity to contract when the Account arose, continues to
meet the applicable Borrower’s customary credit standards, is Solvent, is not contemplating
or subject to an Insolvency Proceeding, and has not failed, or suspended or ceased doing
business; and (iii) there are no proceedings or actions threatened or pending against any
Account Debtor that could reasonably be expected to have a material adverse effect on the
Account Debtor’s financial condition.

          SECTION 5.25. Canadian Pension Plans. Except as could not reasonably be expected to
result in a material liability to the Borrowers, the Canadian Pension Plans are duly registered
under the Income Tax Act (Canada) and all other applicable laws which require registration and no
event has occurred which is reasonably likely to cause the loss of such registered status. All
material obligations of each Loan Party (including fiduciary, funding, investment and
administration obligations) required to be performed in connection with the Canadian Pension Plans
and Canadian Benefit Plans and any funding agreements therefor have been performed in a timely
fashion, except where (i) the failure to do so could not reasonably be expected to have a Material
Adverse Effect and (ii) no Lien (other than Liens permitted pursuant to Section 7.01) is
created thereby. There have been no improper withdrawals or applications of the assets of the
Canadian Pension Plans or the Canadian Benefit Plans by any Loan Party or its Affiliates except
where such withdrawals or applications could not reasonably be expected to have a Material Adverse
Effect. There are no material outstanding disputes involving any Loan Party or its Affiliates
concerning the assets of the Canadian Pension Plans or the Canadian Benefit Plans except where such
disputes could not reasonably be expected to have a Material Adverse Effect. Except as could not
reasonably be expected to result in a material liability to the Borrowers, each of the Canadian
Pension Plans was fully funded on a solvency basis as of the date of the most recent actuarial
valuations filed with Government Authorities.

ARTICLE VI

Affirmative Covenants

          So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder (other than any contingent indemnification obligation as to which no claim has been
asserted) shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding,
each of Holdings and the Specified U.S. Borrower shall, and shall (except in the case of the
covenants set forth in Sections 6.01, 6.02 and 6.03) cause each Subsidiary
to:

          SECTION 6.01. Financial Statements; Borrowing Base. Deliver to the Administrative
Agent for further distribution to each Lender:

     (a) as soon as available, but in any event within ninety (90) days after the end of
each fiscal year of Holdings (or, if earlier, the date on which Holdings’

 

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Form 10-K would be required to be filed with the SEC (after giving effect to any
extension)), a consolidated balance sheet of Holdings and its Subsidiaries as at the end of
such fiscal year, and the related consolidated statements of income or operations, changes
in stockholder’s investment, and cash flows for such fiscal year, setting forth in each
case in comparative form the figures for the previous fiscal year, all in reasonable detail
and prepared in accordance with GAAP, audited and accompanied by a report and opinion of
KPMG LLP or any other independent certified public accountant of nationally recognized
standing, which report and opinion shall be prepared in accordance with generally accepted
auditing standards and shall not be subject to any “going concern” or like qualification or
exception or any qualification or exception as to the scope of such audit;

     (b) as soon as available, but in any event within forty-five (45) days after the end
of each of the first three (3) fiscal quarters of each fiscal year of Holdings (or, if
earlier, the date on which Holdings’ 10-Q would be required to be filed with the SEC (after
giving effect to any extension)), a consolidated balance sheet of Holdings and its
Subsidiaries as at the end of such fiscal quarter, and the related consolidated statements
of income or operations, changes in stockholders’ investment, and cash flows for such
fiscal quarter and for the portion of the fiscal year then ended, setting forth in each
case in comparative form the figures for the corresponding fiscal quarter of the previous
fiscal year and the corresponding portion of the previous fiscal year, all in reasonable
detail and certified by a Responsible Officer of Holdings as fairly presenting in all
material respects the financial condition, results of operations, shareholders’ equity and
cash flows of Holdings and its Subsidiaries in accordance with GAAP, subject only to normal
year-end audit adjustments and the absence of footnotes;

     (c) at the time of delivery of the financial statements provided for in Sections
6.01(a) and (b) above, a management’s discussion and analysis of the financial
condition and results of operation for such fiscal quarter or fiscal year, as the case may
be, as compared to the previous fiscal period; provided that a copy of Holdings’
Form 10-K or Form 10-Q for the applicable period shall be deemed to satisfy such
requirement;

     (d) as soon as available, but in any event within forty-five (45) days after the end
of each of the first 11 months of each fiscal year of Holdings, a monthly summary income
statement including revenue, gross profit and EBITDA (calculated in a manner reasonably
consistent with the definition of Consolidated EBITDA) of Holdings and its Subsidiaries on
a consolidated basis as of the end of such month;

     (e) as soon as available, but in any event no later than 60 days after the end of each
fiscal year, forecasts prepared by management of Holdings, of consolidated balance sheets,
income statements and cash flow statements of Holdings and its Subsidiaries. All forecasts
delivered hereunder shall be prepared on an annual basis for the fiscal year following such
fiscal year then ended);

 

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     (f) (i) with respect to the Initial Borrowing Base Certificate, on or before August
15, 2008 and (ii) thereafter, on or before the 15th Business Day after the end of each
fiscal month of Holdings (which monthly Borrowing Base Certificate shall be furnished
regardless of whether weekly Borrowing Base Certificates are required to be furnished
pursuant to the second succeeding sentence), the Borrower Agent shall deliver to the Agents
(and the Administrative Agent shall promptly deliver same to the Lenders) a Borrowing Base
Certificate in respect of each of the U.S. Borrowing Base and the Canadian Borrowing Base,
prepared as of the close of business of the previous month. All calculations of Excess
Availability in any Borrowing Base Certificate shall originally be made by the Borrowers
and certified by a Responsible Officer of each of the Specified U.S. Borrower and the
Canadian Borrower, provided that the Agents may from time to time review and adjust any
such calculation in their Credit Judgment to the extent the calculation is not made in
accordance with this Agreement or does not accurately reflect the Availability Reserve.
Upon the occurrence and during the continuation of a Cash Dominion Event, the Borrowers
shall deliver to Agents a weekly Borrowing Base Certificate within three (3) Business Days
after the end of each calendar week (each calendar week deemed, for purposes hereof, to end
on a Friday), updated as of the close of business on the last Business Day of the
immediately preceding calendar week (it being understood that inventory amounts shown in
such Borrowing Base Certificate will be based on the inventory amount for the most recently
ended month) unless the Agents otherwise agree. Borrowing Base Certificates shall be
delivered with such supporting documentation and additional reports with respect to the
U.S. Borrowing Base and the Canadian Borrowing Base as the Agents shall reasonably request.

          SECTION 6.02. Certificates; Other Information. Deliver to the Administrative Agent
for further distribution to each Lender:

     (a) no later than five (5) days after the delivery of the financial statements
referred to in Section 6.01(a), a certificate of its independent certified public
accountants certifying such financial statements and stating that in making the examination
necessary therefor no knowledge was obtained of any Event of Default under Section
7.11 or, if any such Event of Default shall exist, stating the nature and status of
such event;

     (b) concurrently with the delivery of the financial statements referred to in
Sections 6.01(a) and (b), (i) a duly completed Compliance Certificate
signed by a Responsible Officer of U.S. Borrower including, during each Covenant Trigger
Event, in the event of any change in generally accepted accounting principles used in the
preparation of such financial statements, if necessary for the determination of compliance
with Section 7.11, a statement of reconciliation conforming such financial
statements to GAAP and (ii) a description of each event, condition or circumstance during
the last fiscal quarter covered by such Compliance Certificate requiring a mandatory
prepayment under Section 2.05(b);

 

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     (c) promptly after the same are available, (i) copies of each annual report, proxy
statement, (ii) copies of all annual, regular, periodic and special reports and
registration statements which the Specified U.S. Borrower or Holdings may file or be
required to file, copies of any report, filing or communication with the SEC under Section
13 or 15(d) of the Securities Exchange Act of 1934, or with any Governmental Authority that
may be substituted therefor, or with any national securities exchange, and (iii) a copy of
any final “management letter” received by any Loan Party from its certified public
accountants identifying any significant deficiencies in the design or operation of internal
controls which could materially adversely affect Holdings’ ability to record, process,
summarize and report financial data, and the management’s responses thereto (provided that
such disclosure by Holdings is authorized by such accountants (and Holdings agrees to
request that such certified public accountants permit such disclosure));

     (d) promptly after the furnishing thereof, copies of any requests or notices received
by any Loan Party (other than in the ordinary course of business) from, or statements or
reports furnished to, any holder of debt securities of any Loan Party or of any of its
Subsidiaries pursuant to the terms of any Junior Financing Documentation or the Senior
Secured Notes in a principal amount greater than the Threshold Amount and not otherwise
required to be furnished to the Lenders pursuant to any other clause of this Section
6.02;

     (e) promptly after the receipt thereof by any Loan Party or any of its Subsidiaries,
copies of each notice or other correspondence received from the SEC (or comparable agency
in any applicable non-U.S. jurisdiction) concerning any material investigation or other
material inquiry by such agency regarding financial or other operational results of any
Loan Party or any of its Subsidiaries;

     (f) promptly after the assertion or occurrence thereof, notice of any occurrence,
event or action that could result in a material Environmental Liability on the part of any
Loan Party or any of its Subsidiaries or of any noncompliance by any Loan Party or any of
its Subsidiaries with any Environmental Law or Environmental Permit;

     (g) concurrently with any delivery of financial statements under
Section 6.01(a), a certificate of a Responsible Officer setting forth the
information required pursuant to the Perfection Certificate Supplement or confirming that
there has been no change in such information since the date of the Perfection Certificate
or latest Perfection Certificate Supplement;

     (h) promptly after U.S. Borrower has notified the Administrative Agent of any
intention by U.S. Borrower to treat the Loans and/or Letters of Credit and related
transactions as being a “reportable transaction” (within the meaning of Treasury Regulation
Section 1.6011-4), a duly completed copy of IRS Form 8886 or any successor form;

 

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     (i) promptly following the Administrative Agent’s request therefor, all documentation
and other information that the Administrative Agent reasonably requests on its behalf or on
behalf of any Lender in order to comply with its ongoing obligations under applicable “know
your customer” and anti-money laundering rules and regulations, including the PATRIOT Act;
and

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

          Each Borrower hereby acknowledges that (a) the Administrative Agent and/or the Bookrunner will
make available to the Lenders and the L/C Issuers materials and/or information provided by or on
behalf of the Borrowers hereunder (collectively, “Borrower Materials”) by posting the
Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and
(b) certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to
receive material non-public information with respect to the Borrowers or their Affiliates, or the
respective securities of any of the foregoing, and who may be engaged in investment and other
market-related activities with respect to such Persons’ securities. Each Borrower hereby agrees
that it will use commercially reasonable efforts to identify that portion of the Borrower Materials
that may be distributed to the Public Lenders and that (w) all such Borrower Materials shall be
clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC”
shall appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,”
each Borrower shall be deemed to have authorized the Administrative Agent, the Bookrunner, the L/C
Issuers and the Lenders to treat such Borrower Materials as not containing any material non-public
information (although it may be sensitive and proprietary) with respect to the Borrowers or their
securities for purposes of United States Federal and state securities laws (provided,
however, that to the extent such Borrower Materials constitute Information, they shall be
treated as set forth in Section 10.07); (y) all Borrower Materials marked “PUBLIC” are
permitted to be made available through a portion of the Platform designated “Public Side
Information;” and (z) the Administrative Agent and the Bookrunner shall be entitled to treat any
Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of
the Platform not designated “Public Side Information.” Except for such Compliance Certificates,
the Administrative Agent shall have no obligation to request the delivery or to maintain copies of
the documents referred to above, and in any event shall have no responsibility to monitor
compliance by any Borrower with any such request for delivery, and each Lender shall be solely
responsible for requesting delivery to it or maintaining its copies of such documents.

          SECTION 6.03. Notices. Promptly after obtaining knowledge thereof notify the
Administrative Agent for further distribution to each Lender:

     (a) of the occurrence of any Default or Event of Default; and

 

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     (b) of any matter that has resulted or could reasonably be expected to result in a
Material Adverse Effect, including arising out of or resulting from (i) breach or
non-performance of, or any default under, a Contractual Obligation of any Loan Party or any
Subsidiary, (ii) any dispute, litigation, investigation, proceeding or suspension between
any Loan Party or any Subsidiary and any Governmental Authority, (iii) the commencement of,
or any material development in, any litigation or proceeding materially affecting any Loan
Party or any Subsidiary, including pursuant to any applicable Environmental Laws and or in
respect of material IP Rights, or (iv) the occurrence of any ERISA Event or similar event
with respect to a Foreign Plan.

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

          SECTION 6.04. Payment of Obligations. Pay, discharge or otherwise satisfy as the same
shall become due and payable, all its obligations and liabilities, including (a) all material Tax
liabilities, assessments and governmental charges or levies upon it or its properties or assets,
unless the same are being contested in good faith by appropriate proceedings diligently conducted
and adequate reserves in accordance with GAAP are being maintained by the Borrowers or such
Subsidiary; (b) all material lawful claims which, if unpaid, would by law become a Lien upon its
property, unless such claims would not become a Lien on the Collateral and the same are being
contested in good faith by appropriate proceedings diligently conducted and adequate reserves in
accordance with GAAP are being maintained by the Specified Borrowers or such Subsidiary; and
(c) all Indebtedness in excess of the Threshold Amount, as and when due and payable (after giving
effect to any applicable grace periods), but subject to any subordination provisions contained in
any instrument or agreement evidencing such Indebtedness.

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

          SECTION 6.06. Maintenance of Properties. (a) Maintain, preserve and protect all of
its material properties and equipment necessary in the operation of its business in good working
order, repair and condition, ordinary wear and tear excepted

 

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and casualty or condemnation excepted, and (b) make all necessary renewals, replacements,
modifications, improvements, upgrades, extensions and additions thereof or thereto in accordance
with prudent industry practice.

          SECTION 6.07. Maintenance of Insurance. Maintain (a) with financially sound and
reputable insurance companies, insurance with respect to its properties and business against loss
or damage of the kinds customarily insured against by Persons engaged in the same or similar
business, of such types and in such amounts (after giving effect to any self-insurance reasonable
and customary for similarly situated Persons engaged in the same or similar businesses as the
Specified U.S. Borrower and its Subsidiaries) as are customarily carried under similar
circumstances by such other Persons and (b) without limitation to the foregoing, the insurance
arrangements in respect of the Collateral required by the Security Agreements. If any portion of
any real property subject to any Mortgage is located in an area identified by the Federal Emergency
Management Agency as an area having special flood hazards and in which flood insurance has been
made available under the National Flood Insurance Act of 1968 (or any amendment or successor act
thereto), then the applicable Loan Party (or its relevant Subsidiary) shall maintain, or cause to
be maintained, with a financially sound and reputable insurer, flood insurance in an amount
sufficient to comply with all applicable rules and regulations promulgated pursuant to such Act.

          SECTION 6.08. Compliance with Laws. Comply in all material respects with the
requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its
business or property, except if the failure to comply therewith could not reasonably be expected to
have a Material Adverse Effect.

          SECTION 6.09. Books and Records. Maintain proper books of record and account, in
which full, true and correct entries in conformity with GAAP consistently applied shall be made of
all financial transactions and matters involving the assets and business of the Specified U.S.
Borrower or such Subsidiary, as the case may be.

          SECTION 6.10. Inspections; Appraisals. (a) Permit the Agents from time to time,
subject (except when an Event of Default has occurred and is continuing) to reasonable notice and
normal business hours, to visit and inspect the properties of any Borrower or Subsidiary, inspect,
audit and make extracts from Holdings’, any Borrower’s or Subsidiary’s books and records, and
discuss with its officers, employees, agents, advisors and independent accountants Holdings’ or
such Borrower’s or Subsidiary’s business, financial condition, assets, prospects and results of
operations. Lenders may participate in any such visit or inspection, at their own expense.
Neither the Agents nor any Lender shall have any duty to any Borrower to make any inspection, nor
to share any results of any inspection, appraisal or report with any Borrower. Borrowers
acknowledge that all inspections, appraisals and reports are prepared by the Agents and Lenders for
their purposes, and Borrowers shall not be entitled to rely upon them.

          (b) Reimburse the Agents for all charges, costs and expenses of the Agents in connection with
(i) field examinations, verifications and evaluations of any Loan Party’s books and records or any
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deem appropriate, up to twice per fiscal year; and (ii) appraisals of Inventory up to twice
per fiscal year (or, in each case with respect to clauses (i) and (ii) three times per fiscal year
if the third audit and/or appraisal occurs during a period when Excess Availability is less than
25% of the Total Borrowing Base); provided, however, that if a field examination or
appraisal is initiated while an Event of Default has occurred and is continuing, all charges, costs
and expenses therefor shall be reimbursed by Borrowers without regard to such limits;
provided further that the limitations on the number of examinations and appraisals
in a fiscal year shall be without giving effect to examinations and appraisals in connection with
the Required Audit and Appraisal. Subject to and without limiting the foregoing, Borrowers
specifically agree to pay any Agent’s then standard charges for each day that an employee of such
Agent or its branches or Affiliates is engaged in any examination activities, and shall pay the
standard charges of such Agent’s internal appraisal group. This Section shall not be construed to
limit the Agents’ right to conduct examinations or to obtain appraisals at any time in its
discretion, nor to use third parties for such purposes.

          SECTION 6.11. Use of Proceeds. The Borrowers will use the proceeds of each Credit
Extension for general corporate purposes not in contravention of any Law or of any Loan Document.

          SECTION 6.12. Covenant to Guarantee Obligations and Give Security.
(a) Upon the formation or acquisition of any new direct or indirect Subsidiaries (other than
Excluded Subsidiaries) by any U.S. Loan Party or upon any Domestic Subsidiary ceasing to meet the
definition of an Excluded Subsidiary or upon the acquisition of any Material Real Estate, or,
subject to the terms of the Intercreditor Agreement, upon the granting of any Lien to secure the
Senior Secured Notes (in which case if the assets covered thereby do not constitute ABL Priority
Collateral the provisions of this Section shall be deemed to refer to a second-priority security
interest junior to the Lien securing the Senior Secured Notes on the terms set forth in the
Intercreditor Agreement), the Borrower Agent shall promptly notify the Administrative Agent thereof
and if such property, in the reasonable judgment of the Administrative Agent, shall not already be
subject to a perfected Lien in favor of the Administrative Agent, for the benefit of the Secured
Parties, then the applicable Loan Parties shall, in each case at the applicable Borrower’s expense:

     (i) in connection with the formation or acquisition of a Subsidiary or upon any
Domestic Subsidiary which was an Excluded Subsidiary ceasing for any reason to meet the
definition thereof, within thirty (30) days after such formation, acquisition, or change of
status or such longer period as the Administrative Agent may agree in its sole discretion,
(A) cause each such Subsidiary that is not a Foreign Subsidiary (or a Subsidiary of a
Foreign Subsidiary) to duly execute and deliver to the Administrative Agent a guaranty or
guaranty supplement, in form and substance reasonably satisfactory to the Administrative
Agent, guaranteeing the other Loan Parties’ obligations under the Loan Documents, and
(B) subject to Section 6.12(c), deliver all certificates representing the Pledged
Equity of each such Subsidiary owned by a U.S. Loan Party, accompanied by undated stock
powers or other appropriate instruments of transfer executed in blank, and all

 

 

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instruments evidencing the Pledged Debt of each such Subsidiary owned by a U.S. Loan
Party, indorsed in blank to the Collateral Agent, together with, if requested by the
Agents, supplements to the U.S. Security Agreement with respect to the pledge of any Equity
Interests or Indebtedness; provided that only 65% of Equity Interests of any
Foreign Subsidiary owned by a U.S. Loan Party shall be required to be pledged as Collateral
if such Foreign Subsidiary is a “controlled foreign corporation” for U.S. federal income
tax purposes,

     (ii) within ten (10) Business Days after such request, formation or acquisition, or
such longer period as the Administrative Agent may agree in its sole discretion, furnish to
the Administrative Agent a Perfection Certificate Supplement,

     (iii) within thirty (30) days (or, in the case of IP Security Agreement Supplements,
45 days) after such request, formation or acquisition or change of status, or such longer
period as the Administrative Agent may agree in its sole discretion, duly execute and
deliver, and cause each such Subsidiary that is not a Foreign Subsidiary (or a Subsidiary
of a Foreign Subsidiary) to duly execute and deliver, to the Collateral Agent Mortgages
encumbering Material Real Estate, Security Agreement Supplements, IP Security Agreement
Supplements and other security agreements, as specified by and in form and substance
reasonably satisfactory to the Collateral Agent (consistent with the U.S. Security
Agreement, IP Security Agreement and Mortgages), securing payment of all the Obligations
and constituting Liens on all such properties,

     (iv) within thirty (30) days (or, in the case of IP Security Agreement Supplements, 45
days) after such request, formation, acquisition or change of status, or such longer period
as the Administrative Agent may agree in its sole discretion, take, and cause such
Subsidiary that is not a Foreign Subsidiary (or a Subsidiary of a Foreign Subsidiary) to
take, whatever action (including, without limitation, the recording of Mortgages on
Material Real Estate, the filing of UCC or PPSA financing statements, the giving of notices
and the endorsement of notices on title documents and delivery of stock and membership
interest certificates and the delivery of fully-executed Deposit Account Control
Agreements, Securities Account Control Agreements and Commodity Account Control Agreements)
may be necessary or advisable in the reasonable opinion of the Administrative Agent to vest
in the Collateral Agent (or in any representative of the Collateral Agent designated by it)
valid and subsisting Liens on the properties purported to be subject to the Mortgages on
Material Real Estate, Security Agreement Supplements, IP Security Agreement Supplements and
security agreements delivered pursuant to this Section 6.12, enforceable against
all third parties in accordance with their terms,

     (v) within thirty (30) days after the request of the Administrative Agent, or such
longer period as the Administrative Agent may agree in its sole discretion, deliver to the
Administrative Agent, signed copies of opinions, addressed to the Agents and the other
Secured Parties, of counsel for the Loan Parties reasonably

 

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acceptable to the Administrative Agent as to such matters as the Administrative Agent
may reasonably request,

     (vi) as promptly as practicable after the request of the Administrative Agent, to the
Administrative Agent with respect to each parcel of real property on which Mortgages on
Material Real Estate that is the subject of such request, title insurance in scope, form
and substance reasonably satisfactory to the applicable Agents and, to the extent
available, land surveys and environmental assessment reports, and

          (b) Upon the formation or acquisition of any new direct or indirect Subsidiaries that are
Canadian Subsidiaries (other than Excluded Subsidiaries) by any Canadian Loan Party or upon the
acquisition of any Canadian Loan Party, the Canadian Borrower shall promptly notify the
Administrative Agent thereof and the Canadian Borrower shall, subject to applicable laws, in each
case, at the Canadian Borrower’s expense:

     (i) in connection with the formation or acquisition of a Subsidiary that is not an
Excluded Subsidiary, within thirty (30) days after such formation, acquisition or change of
status or such longer period as the Administrative Agent may agree in its sole discretion,
(A) cause each such Subsidiary (if it has not already done so) to duly execute and deliver
to the Administrative Agent a guaranty or guaranty supplement, in form and substance
reasonably satisfactory to the Administrative Agent, guaranteeing the other Canadian Loan
Parties’ obligations under the Loan Documents, and (B) subject to Section 6.12(c),
deliver all certificates representing the Pledged Interests of each such Subsidiary owned
by a Canadian Loan Party, accompanied by undated stock powers or other appropriate
instruments of transfer executed in blank, and all instruments evidencing the Pledged Debt
of each such Subsidiary owned by a Canadian Loan Party, indorsed in blank to the Collateral
Agent, together with, if requested by the Collateral Agent, supplements to the Canadian
Security Agreement with respect to the pledge of any Equity Interests or Indebtedness,

     (ii) within ten (10) days after such request, formation or acquisition, or such longer
period as the Administrative Agent may agree in its sole discretion, furnish to each
Administrative Agent a Perfection Certificate Supplement,

     (iii) within thirty (30) days (or, in the case of IP Security Agreement Supplements,
45 days) after such request, formation or acquisition or change of status, or such longer
period as the Administrative Agent may agree in its sole discretion, duly execute and
deliver (if it has not already done so), and cause each such Subsidiary that is a Canadian
Subsidiary to duly execute and deliver, to the Collateral Agent Mortgages encumbering
Material Real Estate, new Canadian Security Agreements and/or Canadian Security Agreement
Supplements, IP Security Agreement Supplements and other security agreements charging a
Lien in such Subsidiaries’ assets, as specified by and in form and substance reasonably
satisfactory to the Collateral Agent (consistent with the Canadian Security

 

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Agreement, IP Security Agreement and Mortgages), securing payment of all the Canadian
Obligations under the Loan Documents and constituting Liens on all such properties,

     (iv) within thirty (30) days (or, in the case of IP Security Agreement Supplements, 45
days) after such request, formation, acquisition or change of status, or such longer period
as the Administrative Agent may agree in its sole discretion, take, and cause such
Subsidiary that is a Canadian Subsidiary or such parent to take (if it has not already done
so), whatever action (including, without limitation, the recording of Mortgages on Material
Real Estate, the filing of PPSA or UCC financing statements and other similar filings in
all applicable jurisdictions, the giving of notices and the endorsement of notices on title
documents and delivery of stock and membership interest certificates and the delivery of
fully-executed Deposit Account Control Agreements, Securities Account Control Agreements
and Commodity Account Control Agreements) may be necessary or advisable in the reasonable
opinion of the Administrative Agent to vest in the Collateral Agent (or in any
representative of the Collateral Agent designated by it) valid and subsisting Liens on the
assets purported to be subject to the Mortgages on Material Real Estate, the Canadian
Security Agreement Supplements, IP Security Agreement Supplements and other security
agreements delivered pursuant to this Section 6.12, enforceable against all third
parties in accordance with their terms, and

     (v) within thirty (30) days after the request of the Administrative Agent, or such
longer period as the Administrative Agent may agree in its sole discretion, deliver to the
Administrative Agent signed copies of opinions, addressed to the Agents and the other
Canadian Secured Parties, of counsel for the Loan Parties reasonably acceptable to the
Administrative Agent as to such matters as the Administrative Agent may reasonably request;

          (c) At any time and from time to time, promptly execute and deliver any and all further
instruments and documents and take all such other action as the Agents in their reasonable judgment
may deem necessary or desirable in obtaining the full benefits of, or (as applicable) in perfecting
and preserving the Liens of, such guaranties, Mortgages, Security Agreement Supplements, IP
Security Agreement Supplements and other security and pledge agreements.

          (d) Notwithstanding the foregoing, (x) the Collateral Agent shall not perfect its Lien in any
assets (other than (1) ABL Priority Collateral and (2) Noteholder Priority Collateral that secures
the Senior Secured Notes) as to which the Agents and the Borrowers agree that the cost of
perfecting such Lien (including any mortgage, stamp, intangibles or other tax) are excessive in
relation to the benefit to the Secured Parties of the security afforded thereby and (y) the Loan
Parties shall not be required to take any action to pledge any Equity Interests of a Foreign
Subsidiary unless such Foreign Subsidiary (i) is pledged to secure the Senior Secured Notes or (ii)
has either (A) gross revenues (on a consolidated basis with its Subsidiaries) for the most recently
ended period of four consecutive fiscal quarters equal to or greater than 2.5% of the

 

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consolidated gross revenues of Holdings and its Subsidiaries for such period or (B) total
assets (on a consolidated basis with its Subsidiaries) at the end of the most recently completed
fiscal quarter equal to or greater than 2.5% of consolidated total assets of Holdings and its
Subsidiaries as at such date (any such Subsidiary, a “Material Foreign Subsidiary”).

          SECTION 6.13. Compliance with Environmental Laws. (a) Except, in each case, to the
extent that the failure to do so could not reasonably be expected to result in a material
liability, comply, and take all commercially reasonable steps to cause all lessees and other
Persons operating or occupying its properties to comply with all applicable Environmental Laws and
Environmental Permits; obtain and renew all Environmental Permits necessary for its operations and
properties; and conduct any investigation, study, sampling and testing, and undertake any cleanup,
removal, remedial or other action necessary to address Hazardous Materials at, on, under or
emanating from any of its properties, in accordance with the requirements of all applicable
Environmental Laws.

          (b) If a Default caused by reason of a breach of Section 5.09 or Section
6.13(a) shall have occurred and be continuing for more than 20 days without the Borrowers and
their Subsidiaries commencing activities reasonably appropriate to cure such Default or contest, in
good faith, the asserted basis for such Event of Default, at the written request of the
Administrative Agent, provide to the Lenders within 45 days after such request, or within 90 days
if soil and/or ground water sampling is appropriate, at the expense of the Loan Party, an
environmental assessment report for any property owned or operated by any Borrower or any of its
Subsidiaries, including, where appropriate, any soil and/or groundwater sampling, reasonably
relating to any matters that are the subject of such Default, prepared by an environmental
consulting firm of the Borrowers’ reasonable selection and, in form and substance, reasonably
acceptable to the Administrative Agent, indicating as relevant the presence or absence of Hazardous
Materials and the estimated cost to address any non-compliance with or conduct any response or
other corrective action with respect to such Hazardous Material required under any Environmental
Law.

          SECTION 6.14. Further Assurances. Promptly upon request by the Administrative Agent,
or any Lender through the Administrative Agent, (i) correct any material defect or error that may
be discovered in the execution, acknowledgment, filing or recordation of any Loan Document or other
document or instrument relating to any Collateral, and (ii) do, execute, acknowledge, deliver,
record, re-record, file, re-file, register and re-register any and all such further acts, deeds,
certificates, assurances and other instruments as the Administrative Agent, or any Lender through
the Administrative Agent, may reasonably require from time to time in order to (A) carry out more
effectively the purposes of the Loan Documents, (B) perfect and maintain the validity,
effectiveness and priority of any of the Collateral Documents and any of the Liens intended to be
created thereunder or (C) assure, convey, grant, assign, transfer, preserve, protect and confirm
more effectively unto the Secured Parties the rights granted or now or hereafter intended to be
granted to the Secured Parties under any Loan Document, and cause each of its Subsidiaries to do
so.

 

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          SECTION 6.15. Compliance with Terms of Leaseholds. Make all payments and otherwise
perform all obligations in respect of all leases of real property of the Loan Parties material to
the business of the Loan Parties, keep such leases in full force and effect and not allow such
leases to lapse or be terminated or any rights to renew such leases to be forfeited or cancelled,
notify the Administrative Agent of any receipt of any notice of material default by any party with
respect to such leases and cooperate with the Administrative Agent in all respects to cure any such
material default, and cause each of its Subsidiaries to do so, except, in any case, (a) where the
failure to do so, either individually or in the aggregate, could not be reasonably likely to have a
Material Adverse Effect or (b) for terminations, lapses and amendments in the ordinary course of
business.

          SECTION 6.16. Designation as Senior Debt. Designate all Obligations as “Designated
Senior Debt” or the equivalent designation under, and as defined in, all Junior Financing
Documentation.

          SECTION 6.17. Collateral Administration. (a) Administration of Accounts.
(i) Records and Schedules of Accounts. Each Loan Party shall keep accurate and complete
records of its Accounts, including all payments and collections thereon, and shall submit to the
Administrative Agent sales, collection, reconciliation and other reports in form reasonably
satisfactory to the Administrative Agent, on such periodic basis as the Administrative Agent may
reasonably request. The Borrower Agent shall also provide to the Administrative Agent, on or
before the 15th Business Day of each month, a detailed aged trial balance of all Loan Party
Accounts as of the end of the preceding month, specifying each Account’s Account Debtor name and
address, amount, invoice date and due date, showing any discount, allowance, credit, authorized
return or dispute, and including such proof of delivery, copies of invoices and invoice registers,
copies of related documents, repayment histories, status reports and other information as the
Administrative Agent may reasonably request. If Accounts in an aggregate face amount of $5,000,000
or more cease to be Eligible Receivables, the Borrower Agent shall notify the Administrative Agent
of such occurrence promptly (and in any event within three Business Days) after any Loan Party has
knowledge thereof.

          (ii) Taxes. If an Account of any Loan Party includes a charge for any Taxes, the
Administrative Agent is authorized, in its discretion, to pay the amount thereof to the proper
taxing authority for the account of such Loan Party and to charge the Borrowers therefor;
provided, however, that neither the Administrative Agent nor the Lenders shall be
liable for any Taxes that may be due from the Loan Parties or with respect to any Collateral.

          (iii) Account Verification. Whether or not a Default or Event of Default or a Cash
Dominion Event exists, the Agents shall have the right at any time, in the name of such Agent, any
designee of such Agent or any Loan Party, to verify the validity, amount or any other matter
relating to any Accounts of the Loan Party by mail, telephone or otherwise. The Loan Parties shall
cooperate fully with the Agents in an effort to facilitate and promptly conclude any such
verification process.

 

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          (iv) Maintenance of Accounts. The Loan Parties shall maintain one or more Dominion
Accounts, each pursuant to a lockbox or other arrangement acceptable to the Agents, with such banks
as may be selected by applicable Loan Parties and be reasonably acceptable to Agents. The Loan
Parties shall enter into Deposit Account Control Agreements with each bank at which a Deposit
Account (other than an Excluded Account) is maintained by which such bank shall, upon notice from
the Collateral Agent of the occurrence and continuation of a Cash Dominion Event or an Event of
Default, immediately transfer to the U.S. Payment Account all monies deposited to a Dominion
Account constituting proceeds of U.S. Collateral and to the Canadian Payment Account all monies
deposited to a Dominion Account constituting proceeds of Canadian Collateral. All funds deposited
in each Dominion Account shall be subject to the Collateral Agent’s Lien. The Loan Parties shall
obtain the agreement (in favor of and in form and content reasonably satisfactory to the
Administrative Agent) by each bank at which a Dominion Account is maintained to waive any offset
rights against the funds deposited into such Dominion Account, except offset rights in respect of
charges incurred in the administration of such Dominion Account. None of the Agents nor the
Lenders shall assume any responsibility, absent gross negligence and wilfull misconduct, to any
Loan Party for such lockbox arrangement or, upon the occurrence and during the continuation of a
Cash Dominion Event or Event of Default, any Dominion Account, including any claim of accord and
satisfaction or release with respect to deposits accepted by any bank thereunder.

          (v) Collection of Accounts; Proceeds of Collateral. All Payment Items received by
any Loan Party in respect of its Accounts, together with the proceeds of any other Collateral,
shall be held by such Loan Party as trustee of an express trust for the Collateral Agent’s benefit;
such Loan Party shall immediately deposit same in kind in a Dominion Account for application to the
applicable Obligations in accordance with the terms of this Agreement and the applicable Security
Agreement. The Collateral Agent retains the right at all times that a Default or an Event of
Default exists to notify Account Debtors of any Loan Party that Accounts have been assigned to the
Collateral Agent and to collect Accounts directly in its own name and to charge to the Borrowers
the collection costs and expenses incurred by the Collateral Agent or Lenders, including reasonable
attorneys’ fees. Upon the occurrence and during the continuation of a Cash Dominion Event or an
Event of Default, all monies properly deposited in the U.S. Payment Account shall be deemed to be
voluntary prepayments of U.S. Obligations and applied to reduce outstanding Obligations and all
monies properly deposited in the Canadian Payment Account shall be deemed to be voluntary
prepayments of Canadian Obligations and applied to reduce outstanding Canadian Obligations.

          (vi) Asset Sales Proceeds Accounts. None of Holdings, the Specified U.S. Borrower or
any of its Subsidiaries shall deposit any funds or credit any amounts into any “Asset Sales
Proceeds Account” (as defined in the Intercreditor Agreement), other than proceeds of Noteholder
Priority Collateral.

          (b) Administration of Inventory. (i) Records and Reports of Inventory.
Each Loan Party shall keep accurate and complete records of its Inventory, including costs and
withdrawals and additions, and shall submit to the Agents inventory and

 

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reconciliation reports in form reasonably satisfactory to the Agents, on such periodic basis
as the Agents may request. Each Loan Party shall conduct a physical inventory at least once per
calendar year (and on a more frequent basis if requested by the Agents when an Event of Default
exists) and/or periodic cycle counts consistent with historical practices, and shall provide to the
Agents a report based on each such inventory and count promptly upon completion thereof, together
with such supporting information as the Agents may request. The Agents may participate in and
observe each physical count.

          (ii) Returns of Inventory. No Loan Party shall return any Inventory to a supplier,
vendor or other Person, whether for cash, credit or otherwise, unless (a) such return is in the
ordinary course of business; (b) no Default, Event of Default or Overadvance exists or would result
therefrom; and (c) the Agents are promptly notified if the aggregate value of all Inventory
returned in any month exceeds $3,500,000.

          (iii) Acquisition, Sale and Maintenance. The Loan Parties shall use, store and
maintain all Inventory with reasonable care and caution, in accordance with applicable standards of
any insurance and in conformity with all Applicable Law, and shall make current rent payments
(within applicable grace periods provided for in leases) at all locations where any Collateral is
located.

          SECTION 6.18. Maintenance of Cash Management System. (a) The applicable schedule to
the Perfection Certificate sets forth all Deposit Accounts maintained by the Loan Parties,
including all Dominion Accounts. On or prior to the date that is 60 days after the Closing Date,
or such later date as may be agreed by the Agents in their sole discretion, each Loan Party shall
take all actions necessary to establish the Collateral Agent’s control of and Lien on each such
Deposit Account (other than an Excluded Account). Each Loan Party shall be the sole account holder
of each Deposit Account (other than an Excluded Account) and shall not allow any other Person
(other than the Administrative Agent) to have control over or a Lien on a Deposit Account (other
than an Excluded Account) or any property deposited therein.

          (b) Within sixty (60) days after the Closing Date, or such later date as may be agreed to by
the Agents in their sole discretion, the Loan Parties shall have delivered to the Collateral Agent
Deposit Account Control Agreements, Securities Account Control Agreements and Commodities Account
Control Agreements for all of the Deposit Accounts, Securities Accounts and Commodities Accounts,
respectively, of the Loan Parties (other than Excluded Accounts), duly executed by each applicable
Loan Party and the applicable depositary bank or securities intermediary.

          (c) Upon the occurrence and during the continuation of a Cash Dominion Event, the Loan
Parties shall cause any and all funds and financial assets held in or credited to each deposit
account and each securities account to be swept into the Payment Account on a daily basis (or at
other frequencies as agreed by the Collateral Agent).

          SECTION 6.19. Collateral Audit. The Loan Parties shall cause the Required Audit and
Appraisal to be completed within 45 days after the Closing Date or such later date as may be agreed
by the Agents in their sole discretion. In connection

 

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with the Required Audit and Appraisal, Holdings and the Specified U.S. Borrower shall
cooperate in a manner reasonably satisfactory to the Agents, including by providing access to its
assets and the assets of its Subsidiaries.

          SECTION 6.20. Post-Closing Matters. The Loan Parties shall have taken, or shall have
caused to be taken, each action set forth on Schedule 6.20 to the Original Credit Agreement
within the time period set forth on Schedule 6.20 to the Original Credit Agreement for such
action; provided that, the Administrative Agent shall be permitted to grant extensions of the time
periods set forth thereon in its sole discretion.

ARTICLE VII

Negative Covenants

          So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder (other than any contingent indemnification obligation as to which no claim has been
asserted) shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding,
Holdings and each Borrower shall not, nor shall they permit any of their Subsidiaries to, directly
or indirectly:

          SECTION 7.01. Liens. Create, incur, assume or suffer to exist any Lien upon any of
its property, assets or revenues, whether now owned or hereafter acquired, or sign or file or
authorize the filing under the UCC, the PPSA, the Civil Code of Quebec or similar law of any
jurisdiction a financing statement or similar filing or registration that names Holdings, the
Borrowers or any of their respective Subsidiaries as debtor, or sign any security agreement
authorizing any secured party thereunder to file such financing statement or similar filing or
registration, other than the following:

     (a) Liens pursuant to any Loan Document;

     (b) Liens securing the Senior Secured Notes, subject to the terms of the Intercreditor
Agreement;

     (c) Liens existing on the Closing Date and listed on Schedule 7.01 to the
Original Credit Agreement and any modifications, replacements, renewals or extensions
thereof; provided that (i) the Lien does not extend to any additional property
other than (A) after-acquired property that is affixed or incorporated into the property
covered by such Lien and (B) proceeds and products thereof and (ii) the renewal, extension,
refinancing or replacements of the obligations secured or benefited by such Liens is
permitted by Section 7.03;

     (d) Liens for Taxes, assessments or governmental charges which are not required to be
paid pursuant to Section 6.04;

     (e) statutory Liens of landlords, carriers, warehousemen, mechanics, materialmen,
repairmen, processors or other like Liens arising in the ordinary course of business which
secure amounts not overdue for a period of more than thirty (30) days or if more than
thirty (30) days overdue, are unfiled and no other

 

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action has been taken to enforce such Lien or which are being contested in good faith
and by appropriate proceedings diligently conducted which proceedings have the effect of
preventing the forfeiture or sale of the property subject to such Lien, if adequate
reserves with respect thereto are maintained on the books of the applicable Person in
accordance with GAAP;

     (f) (i) pledges or deposits in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other social security legislation, other
than any Lien imposed by ERISA or in respect of Canadian Pension Plans and (ii) pledges and
deposits in the ordinary course of business securing liability for reimbursement or
indemnification obligations of (including obligations in respect of letters of credit or
bank guarantees for the benefit of) insurance carriers providing property, casualty or
liability insurance to Holdings, the Specified U.S. Borrower or any of its Subsidiaries;

     (g) deposits to secure the performance of bids, trade contracts, governmental
contracts and leases (other than Indebtedness for borrowed money), statutory obligations,
surety, stay, customs and appeal bonds, performance bonds and other obligations of a like
nature incurred in the ordinary course of business and not in connection with Indebtedness
for money borrowed;

     (h) easements, rights-of-way, restrictions, encroachments, protrusions and other
similar encumbrances and minor title defects affecting real property which, in the
aggregate, do not in any case materially interfere with the ordinary conduct of the
business of the applicable Person;

     (i) Liens securing judgments for the payment of money not constituting an Event of
Default under Section 8.01(h) and not yet required to be paid pursuant to
Section 6.04;

     (j) Liens securing Indebtedness permitted under Section 7.03(h);
provided that (i) such Liens attach concurrently with or within one hundred eighty
(180) days after the acquisition, repair, replacement or improvement (as applicable) of the
property subject to such Liens, (ii) such Liens do not at any time encumber any property
other than the property financed by such Indebtedness and the proceeds and the products
thereof and (iii) with respect to Capitalized Leases, such Liens do not at any time extend
to or cover any assets other than the assets subject to such Capitalized Leases;
provided that individual financings of equipment provided by one lender may be
cross-collateralized to other financings of equipment provided by such lender on customary
terms;

     (k) leases, licenses, subleases or sublicenses in respect of real property granted to
others in the ordinary course of business and not interfering in any material respect with
the business of Holdings, the Specified U.S. Borrower or any of its Subsidiaries;

 

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

     (m) Liens that are contractual rights of set-off (i) relating to the establishment of
depository relations with banks not given in connection with the issuance of Indebtedness,
(ii) relating to pooled deposit or sweep accounts of Holdings, the Specified U.S. Borrower
or any Subsidiary to permit satisfaction of overdraft or similar obligations incurred in
the ordinary course of business of Holdings, the Specified U.S. Borrower or any Subsidiary
or (iii) relating to purchase orders and other agreements entered into with customers of
Holdings, the Specified U.S. Borrower or any Subsidiary in the ordinary course of business;

     (n) Liens (i) on cash advances in favor of the seller of any property to be acquired
in an Investment permitted pursuant to Sections 7.02(h) and (n) to be
applied against the purchase price for such Investment, and (ii) consisting of an agreement
to Dispose of any property in a Disposition permitted under Section 7.05, in each
case, solely to the extent such Investment or Disposition, as the case may be, would have
been permitted on the date of the creation of such Lien;

     (o) Liens on property of any Foreign Subsidiary (other than a Canadian Subsidiary)
securing Indebtedness of such Foreign Subsidiary to the extent permitted under Section
7.03(i);

     (p) Liens in favor of Holdings, the Specified U.S. Borrower or a Subsidiary of the
Specified U.S. Borrower securing Indebtedness permitted under Section 7.03(g);
provided that if such Liens are on any property of a U.S. Loan Party, such Liens
are in favor of a U.S. Loan Party and if such Liens are on any property of a Canadian Loan
Party, such Liens are in favor of a Loan Party;

     (q) Liens existing on property at the time of its acquisition or existing on the
property of any Person that becomes a Subsidiary after the Closing Date; provided
that (i) such Lien was not created in contemplation of such acquisition or such Person
becoming a Subsidiary, (ii) such Lien does not extend to or cover any other assets or
property (other than the proceeds or products thereof), and (iii) the Indebtedness secured
thereby is permitted under Section 7.03(h) or Section 7.03(r) (and is
permitted to be secured);

     (r) Liens not extending to any ABL Priority Collateral or Canadian Collateral arising
from precautionary UCC or PPSA financing statement (or the foreign equivalent thereof)
filings regarding operating leases entered into by a U.S. Borrower or any of its
Subsidiaries as lessees in the ordinary course of business;

     (s) any interest or title of a lessor, sublessor, licensee, sublicensee, licensor or
sublicensor under any lease or license agreement in the ordinary course of business
permitted by this Agreement;

 

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     (t) Liens not extending to any ABL Priority Collateral or Canadian Collateral arising
out of conditional sale, title retention, consignment or similar arrangements for sale of
goods entered into by the Specified U.S. Borrower or any of its Subsidiaries in the
ordinary course of business permitted by this Agreement;

     (u) Liens not extending to any ABL Priority Collateral or Canadian Collateral
encumbering reasonable customary initial deposits and margin deposits and similar Liens
attaching to commodity trading accounts or other brokerage accounts incurred in the
ordinary course of business and not for speculative purposes;

     (v) Permitted Encumbrances;

     (w) other Liens securing Indebtedness and other obligations outstanding in an
aggregate principal amount not to exceed $10,000,000 (none of which shall be secured by
Liens on the ABL Priority Collateral or the Canadian Collateral); and

     (x) Liens deemed to exist in connection with Investments in repurchase agreements
permitted under Section 7.02.

          SECTION 7.02. Investments. Make or hold any Investments, except:

     (a) Investments held by Holdings, the Specified U.S. Borrower or any Subsidiary in
Cash Equivalents;

     (b) loans or advances to officers, directors and employees of Holdings, the Specified
U.S. Borrower and any Subsidiaries in an aggregate amount not to exceed $5,000,000 at any
time outstanding;

     (c) Investments (i) by the Specified U.S. Borrower or any of its Subsidiaries in any
U.S. Loan Party, (ii) by any Canadian Loan Party (x) in any other Canadian Loan Party and
(y) in any Foreign Subsidiary that is a Subsidiary but not a Loan Party in an amount not to
exceed $2,500,000 at any time outstanding, (iii) by any Subsidiary that is not a Loan Party
in any other such Subsidiary, (iv) by the Specified U.S. Borrower or any Subsidiary that is
a Loan Party in any Subsidiary that is not a U.S. Loan Party in an aggregate amount not to
exceed $2,500,000 at any time outstanding and (v) by the Specified U.S. Borrower or any
Subsidiary in any Foreign Subsidiary consisting of (A) the contribution of Equity Interests
of any other Foreign Subsidiary held directly by the Specified U.S. Borrower or such
Subsidiary in exchange for Indebtedness, Equity Interests or a combination thereof of the
Foreign Subsidiary to which such contribution is made, provided that if such Equity
Interests are of a Canadian Loan Party, such contribution is to a Canadian Loan Party; or
(B) the exchange of Equity Interests in any Foreign Subsidiary for Indebtedness of such
Foreign Subsidiary;

     (d) Investments consisting of extensions of credit in the nature of accounts
receivable or notes receivable arising from the grant of trade credit in the ordinary

 

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course of business, and Investments received in satisfaction or partial satisfaction
thereof from financially troubled account debtors;

     (e) [Reserved].

     (f) Investments existing on the Closing Date and set forth on Schedule 7.02 to
the Original Credit Agreement and any modification, replacement, renewal or extension
thereof; provided that the amount of the original Investment is not increased
except as otherwise permitted by this Section 7.02;

     (g) Investments in Swap Contracts permitted under Section 7.03;

     (h) the purchase or other acquisition of all or substantially all of the property and
assets or business of, any Person or of assets constituting a business unit, a line of
business or division of such Person, or all of the Equity Interests in a Person that, upon
the consummation thereof, will be owned directly by the Specified U.S. Borrower or one or
more of its wholly owned Subsidiaries (including, without limitation, as a result of a
merger or consolidation); provided that, with respect to each purchase or other
acquisition made pursuant to this Section 7.02(h) (each, a “Permitted
Acquisition”):

     (A) each applicable Loan Party and any such newly created or acquired
Subsidiary shall comply with the applicable requirements of Section 6.12;

     (B) the board of directors of such acquired Person or its selling equity
holders in existence at the time such purchase or acquisition is commenced shall
have approved such purchase or other acquisition;

     (C) immediately before and immediately after giving effect to any such
purchase or other acquisition, (1) no Default shall have occurred and be
continuing, (2) Excess Availability shall exceed 25% of the lesser of the Total
Borrowing Base and the Aggregate Commitments (or, in the case of a Tuck-in
Acquisition, 15% of the lesser of the Total Borrowing Base and the Aggregate
Commitments) and (3) unless such acquisition is a Tuck-in Acquisition, the
Specified U.S. Borrower shall be in pro forma compliance with the covenant set
forth in Section 7.11 (whether or not such covenant is otherwise applicable under
this Agreement at such time);

     (D) the Specified U.S. Borrower shall have delivered to the Administrative
Agent, on behalf of the Lenders, at least one (1) Business Day prior to the date on
which any such purchase or other acquisition is to be consummated, a certificate of
a Responsible Officer, certifying that all of the requirements set forth in this
clause (h) have been satisfied or will be satisfied on or prior to the
consummation of such purchase or other acquisition; and

 

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     (E) except to the extent the purchase price therefor is paid by a Foreign
Subsidiary, the fair market value of all property acquired in Permitted
Acquisitions which is contributed to or owned by Subsidiaries that are not U.S.
Loan Parties shall be deemed to be an Investment permitted only to the extent made
pursuant to Section 7.02(c)(iv).

     Notwithstanding anything to the contrary herein, unless the Agents shall otherwise agree in
their sole discretion, no Inventory or Accounts acquired in a Permitted Acquisition shall be
included in the Borrowing Base until the Agents have completed a field audit and inventory
appraisal in scope and with results satisfactory to them and until the Agents shall have received
duly executed Deposit Account Control Agreements, Securities Account Control Agreements and
Commodity Account Control Agreements with respect to the bank accounts, securities accounts and
commodities accounts of the acquired businesses.

     (i) Investments that U.S. Borrower has elected to be treated as Restricted Payments
that are permitted by Section 7.06;

     (j) Investments in the ordinary course of business consisting of (i) endorsements for
collection or deposit and (ii) customary trade arrangements with customers consistent with
past practices;

     (k) Investments (including debt obligations and Equity Interests) received in
connection with the bankruptcy or reorganization of suppliers and customers and in
settlement of delinquent obligations of, and other disputes with, customers and suppliers
arising in the ordinary course of business and upon the foreclosure with respect to any
secured Investment or other transfer of title with respect to any secured Investment;

     (l) the licensing, sublicensing or contribution of IP Rights pursuant to joint
marketing arrangements with Persons other than Holdings, the Specified U.S. Borrower and
its Subsidiaries in the ordinary course of business;

     (m) loans and advances to Holdings in lieu of, and not in excess of the amount of
(after giving effect to any other loans, advances or Restricted Payments in respect
thereof), Restricted Payments to the extent permitted to be made to Holdings in accordance
with Section 7.06;

     (n) other Investments so long as immediately before and immediately after giving
effect to any such Investment, (i) no Event of Default has occurred and is continuing, (ii)
Excess Availability shall exceed 25% of the lesser of the Total Borrowing Base and the
Aggregate Commitments and (iii) the Specified U.S. Borrower shall be in pro forma
compliance with the covenant set forth in Section 7.11 (whether or not such covenant is
otherwise applicable under this Agreement at such time) and shall have delivered to the
Administrative Agent a pro forma Compliance Certificate demonstrating such compliance; and

 

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     (o) other Investments in an aggregate amount not to exceed $5,000,000 during the term
of this Agreement.

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

     (a) in the case of the Specified U.S. Borrower and the U.S. Subsidiary Guarantors, the
2012 Senior Subordinated Notes;

     (b) in the case of the Specified U.S. Borrower and the U.S. Subsidiary Guarantors, the
Senior Secured Notes in an aggregate principal amount not to exceed $700,000,000 and any
Permitted Refinancings thereof;

     (c) in the case of the Loan Parties, Permitted Subordinated Indebtedness in an
aggregate principal amount not to exceed $50,000,000 at any time outstanding; provided that
the Loan Parties may incur additional Permitted Subordinated Indebtedness as long as
immediately after giving effect thereto, (i) no Event of Default has occurred and is
continuing, (ii) Excess Availability shall be more than 25% of the lesser of the Total
Borrowing Base and the Aggregate Commitments and (iii) the Specified U.S. Borrower shall be
in pro forma compliance with the covenant set forth in Section 7.11 (whether or not such
covenant is otherwise applicable under this Agreement at such time) as if such Indebtedness
were incurred on the first day of the relevant Measurement Period;

     (d) Indebtedness of the Loan Parties under the Loan Documents;

     (e) Indebtedness outstanding on the Closing Date and listed on Schedule
7.03(e) to the Original Credit Agreement and any modifications, refinancings,
refundings, renewals, replacements or extensions thereof; provided that (A) the
amount of such Indebtedness is not increased at the time of such modification, refinancing,
refunding, renewal or extension except by an amount equal to a reasonable premium or other
reasonable amount paid, and fees and expenses reasonably incurred, in connection with such
refinancing or as otherwise permitted pursuant to this Section 7.03, and (B) the
terms and conditions (including, if applicable, as to collateral and subordination) of any
such modified, extending, refunding or refinancing Indebtedness are not materially less
favorable to the Loan Parties or the Lenders than the terms and conditions of the
Indebtedness being modified, extended, refunded or refinanced;

     (f) Guarantees of the Specified U.S. Borrower and its Subsidiaries in respect of
Indebtedness of the Specified U.S. Borrower or such Subsidiary otherwise permitted under
this Section 7.03(f); provided that (i) if such Guarantee is a Guarantee of
Indebtedness of a U.S. Loan Party by any Subsidiary, such Subsidiary is a U.S. Loan Party
or such Subsidiary shall have also provided a Guarantee of the Obligations substantially on
the terms set forth in the U.S. Guaranty, (ii) if such Guarantee is a Guarantee of
Indebtedness of a Canadian Loan Party by any Subsidiary, such Subsidiary is a Loan Party or
such Subsidiary

 

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shall have also provided a Guarantee of the Canadian Obligations substantially on the
terms set forth in the Canadian Guarantee, (iii) if such Guarantee is of Indebtedness of a
Subsidiary that is not a U.S. Loan Party, such Guarantee shall be deemed to be an
Investment under Section 7.02 and (iv) if such Indebtedness is subordinated to the
Obligations, such Guarantee shall be also be subordinated to the Obligations on terms no
less favorable to the Lenders;

     (g) Indebtedness of (A) any U.S. Loan Party owing to any other U.S. Loan Party, (B)
any Canadian Loan Party owing to any other Loan Party, (C) any Subsidiary that is not a
Loan Party owing to (1) any other Subsidiary that is not a Loan Party or (2) Holdings or a
Loan Party in respect of an Investment permitted under Section 7.02(c) or
(n), and (D) any Loan Party owing to any Subsidiary which is not a Loan Party;
provided that all such Indebtedness of any Loan Party in this clause (v)(D)
must be expressly subordinated to the Obligations or the Canadian Obligations on the terms
set forth in the Guaranties, as applicable and be represented by the Intercompany Note;

     (h) Attributable Indebtedness and purchase money obligations (including obligations in
respect of mortgage, industrial revenue bond, industrial development bond and similar
financings) to finance the purchase, repair or improvement of fixed or capital assets
within the limitations set forth in Section 7.01(i) and any Permitted Refinancing
thereof; provided, however, that the aggregate amount of all such
Indebtedness at any one time outstanding shall not exceed $15,000,000;

     (i) Indebtedness of Foreign Subsidiaries (other than Canadian Subsidiaries) in an
aggregate principal amount at any time outstanding for all such Persons taken together not
exceeding $2,500,000;

     (j) Indebtedness in respect of Swap Contracts designed to hedge against foreign
exchange rates or commodities pricing risks incurred in the ordinary course of business and
not for speculative purposes or in respect of interest rates;

     (k) unsecured Indebtedness consisting of promissory notes issued by any Loan Party to
current or former officers, directors and employees, their respective estates, spouses or
former spouses to finance the purchase or redemption of Equity Interests of Holdings or Ply
Gem Prime Holdings, Inc. permitted by Section 7.06;

     (l) unsecured Indebtedness incurred by the Specified U.S. Borrower or its Subsidiaries
in a Permitted Acquisition or Disposition under agreements providing for customary
adjustments of the purchase price;

     (m) Cash Management Obligations and other Indebtedness in respect of endorsements for
collection or deposit, netting services, overdraft protections and similar arrangements in
each case in connection with deposit accounts provided

 

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that such Indebtedness is extinguished within ten Business Days after its incurrence;

     (n) unsecured Indebtedness of the Specified U.S. Borrower and its Subsidiaries in an
aggregate principal amount not to exceed $50,000,000 at any time outstanding;

     (o) Indebtedness consisting of (A) the financing of insurance premiums, (B)
take-or-pay obligations contained in supply arrangements and (C) customary indemnification
obligations, in each case, incurred in the ordinary course of business and not in
connection with debt for money borrowed;

     (p) Indebtedness incurred by the Specified U.S. Borrower or any of its Subsidiaries
constituting reimbursement obligations with respect to letters of credit issued in the
ordinary course of business in respect of workers compensation claims, health, disability
or other employee benefits or property, casualty or liability insurance or self-insurance
or other Indebtedness with respect to reimbursement-type obligations regarding workers
compensation claims in the ordinary course of business; provided that upon the
drawing of such letters of credit or the incurrence of such Indebtedness, such obligations
are reimbursed within 30 days following such drawing or incurrence;

     (q) obligations in respect of performance and surety bonds and performance and
completion guarantees provided by the Specified U.S. Borrower or any of its Subsidiaries or
obligations in respect of letters of credit related thereto, in each case in the ordinary
course of business consistent with past practice and not in connection with debt for money
borrowed; and

     (r) (A) Indebtedness of the Specified U.S. Borrower or a Subsidiary assumed in
connection with any Permitted Acquisition (and not created in contemplation thereof) not to
exceed $15,000,000 in the aggregate outstanding at any time (which shall not be secured by
any ABL Priority Collateral or Canadian Collateral or any other property besides a single
asset or group of related assets specifically identified in the documentation for such
Indebtedness) (“Permitted Acquired Debt”) and (B) Indebtedness of the Specified
U.S. Borrower owed to the seller of any property acquired in a Permitted Acquisition on an
unsecured subordinated basis (on terms no less favorable to the Lenders than the terms of
the 2012 Senior Subordinated Notes) not to exceed $20,000,000 in the aggregate outstanding
at any time (“Permitted Seller Notes”).

          SECTION 7.04. Fundamental Changes. Merge, dissolve, liquidate, amalgamate,
consolidate with or into another Person, or Dispose of (whether in one transaction or in a series
of transactions) all or substantially all of its assets (whether now owned or hereafter acquired)
to or in favor of any Person, except that, so long as no Default exists or would result therefrom:

 

147

     (a) any Subsidiary may merge with (i) the Specified U.S. Borrower (including a merger,
the purpose of which is to reorganize the Specified U.S. Borrower into a new jurisdiction
which is a State of the United States of America), provided that the Specified U.S.
Borrower shall be the continuing or surviving Person or the surviving Person shall
expressly assume the obligations of the Specified U.S. Borrower pursuant to documents
reasonably acceptable to the Administrative Agent, or (ii) any one or more other
Subsidiaries, provided that when any U.S. Subsidiary Guarantor is merging with
another Subsidiary (which is not a U.S. Subsidiary Guarantor), the U.S. Subsidiary
Guarantor shall be the continuing or surviving Person;

     (b) any Canadian Subsidiary may merge or amalgamate with (i) the Canadian Borrower
(including a merger or amalgamation, the purpose of which is to reorganize the Canadian
Borrower into a new jurisdiction which is a province or territory of Canada),
provided that the Canadian Borrower shall be the continuing or surviving Person or
the surviving Person shall expressly assume the obligations of the Canadian Borrower
pursuant to documents reasonably acceptable to the Administrative Agent, or (ii) any one or
more other Subsidiaries, provided that when any Canadian Subsidiary Guarantor is
merging or amalgamating with another Subsidiary, a Guarantor shall be the continuing or
surviving Person;

     (c) (i) any Subsidiary may Dispose of all or substantially all of its assets (upon
voluntary dissolution, liquidation or otherwise) to the Specified U.S. Borrower or to
another Subsidiary; provided that if the transferor in such a transaction is a
Guarantor, then the transferee must be a Loan Party and if the transferee is not the
Specified U.S. Borrower or a U.S. Subsidiary Guarantor, such transfer must be in the
ordinary course of business consistent with past practice, and (ii) any Subsidiary that is
not a U.S. Subsidiary Guarantor may Dispose of all or substantially all of its assets (upon
voluntary liquidation or otherwise) to the Canadian Borrower or another Subsidiary;
provided that if the transferor in such transaction is a Canadian Loan Party, then
the transferee must be a Loan Party;

     (d) any Subsidiary may merge or amalgamate with or Dispose of all or substantially all
of its assets to any other Person in order to effect an Investment permitted pursuant to
Section 7.02; provided that if the continuing or surviving Person shall be
a Subsidiary, such Subsidiary and each of its Subsidiaries shall have complied with the
applicable requirements of Section 6.12; and

     (e) a merger, amalgamation, dissolution, liquidation, consolidation or Disposition,
the purpose of which is to effect a Disposition permitted pursuant to Section 7.05
(other than clause (e) thereof).

          SECTION 7.05. Dispositions. Make any Disposition or enter into any agreement to make
any Disposition, except:

 

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     (a) Dispositions of obsolete or worn out property, whether now owned or hereafter
acquired, in the ordinary course of business and Dispositions of property no longer used in
the conduct of the business of the Specified U.S. Borrower and its Subsidiaries;

     (b) Dispositions of Inventory in the ordinary course of business;

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

     (d) Dispositions of property by any Subsidiary to the Specified U.S. Borrower or to a
Subsidiary; provided that (A) if the transferor of such property is a U.S. Loan
Party either (i) the transferee is a U.S. Loan Party or (ii) to the extent such transaction
constitutes an Investment, such transaction is permitted under Section 7.02 and (B)
if the transferor of such property is a Canadian Loan Party either (i) the transferee is a
Loan Party or (ii) to the extent such transaction constitutes an Investment, such
transaction is permitted under Section 7.02;

     (e) Dispositions permitted by Sections 7.04 and 7.06 (solely with
respect to reissuances of Equity Interests of treasury stock of the Specified U.S.
Borrower);

     (f) Dispositions by the Specified U.S. Borrower and its Subsidiaries of property
pursuant to sale-leaseback transactions; provided that (i) the fair market value of
all property so Disposed of shall not exceed $15,000,000 from and after the Closing Date
and (ii) the purchase price for such property shall be paid to the Specified U.S. Borrower
or such Subsidiary for not less than 75% cash consideration (for the avoidance of doubt, it
being understood that cash used to prepay or escrow rent shall be cash consideration);

     (g) Dispositions of Cash Equivalents;

     (h) Dispositions of (i) defaulted Accounts of financially-troubled debtors in
connection with the collection or compromise thereof and (ii) with 10 days’ prior notice to
the Administrative Agent, other Accounts as to which the applicable Loan Party has
reasonable concerns as to credit quality;

     (i) licensing or sublicensing of IP Rights in the ordinary course of business;

     (j) leases, subleases, licenses or sublicenses of property in the ordinary course of
business and which do not materially interfere with the business of the Specified U.S.
Borrower and its Subsidiaries;

     (k) Dispositions by the Specified U.S. Borrower and its Subsidiaries not otherwise
permitted under this Section 7.05; provided that (i) at the time of such

 

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Disposition, no Event of Default shall exist or would result from such Disposition,
(ii) the aggregate fair market value of all property Disposed of in reliance on this
clause (k) shall not exceed $30,000,000 since the Closing Date (excluding any
property Disposed of in a Disposition or series of related Dispositions involving property
with an aggregate fair market value of less than $1,500,000), and (iii) the purchase price
for such property shall be paid to the Specified U.S. Borrower or such Subsidiary for not
less than 75% cash consideration; provided further that, notwithstanding
the foregoing, with respect to a one-time sale of non-core assets in an aggregate amount
not to exceed $20,000,000 pursuant to this Section 7.05(k), the purchase price for such
property shall be paid to the Specified U.S. Borrower or such Subsidiary for not less than
50% cash consideration; and

     (l) Dispositions of assets set forth on Schedule 7.05 to the Original Credit
Agreement;

provided, however, that any Disposition of any property pursuant to this
Section 7.05 (except pursuant to Sections 7.05(d)(A)(i), (d)(B)(i),
(e), (h) and (j)), shall be for no less than the fair market value
of such property at the time of such Disposition. To the extent any Collateral is Disposed
of as expressly permitted by this Section 7.05 (other than to a Loan Party), such
Collateral shall be sold free and clear of the Liens created by the Loan Documents, and the
Collateral Agent shall be authorized to take any actions deemed appropriate in order to
effect the foregoing.

          SECTION 7.06. Restricted Payments. Declare or make, directly or indirectly, any
Restricted Payment, except:

     (a) each Subsidiary may make Restricted Payments to the Specified U.S. Borrower and to
Subsidiaries (and, in the case of a Payment by a non-wholly-owned Subsidiary, to the
Specified U.S. Borrower and any Subsidiary and to each other owner of Equity Interests of
such Subsidiary based on their relative ownership interests);

     (b) Holdings, the Specified U.S. Borrower and each Subsidiary may declare and make
dividend payments or other distributions payable solely in the Equity Interests (other than
Disqualified Equity Interests) of such Person;

     (c) to the extent constituting Restricted Payments, the Specified U.S. Borrower and
its Subsidiaries may enter into transactions expressly permitted by Section 7.04,
7.08, or 7.14;

     (d) the Specified U.S. Borrower and any Subsidiary of the Specified U.S. Borrower may
make Restricted Payments to Holdings:

     (i) the proceeds of which will be used to pay the tax liability for the relevant
jurisdiction in respect of consolidated, combined, unitary or affiliated returns for the
relevant jurisdiction of Holdings attributable to the Specified U.S.

 

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Borrower and its Subsidiaries determined as if the U.S. Specified Borrower and its
Subsidiaries filed separately;

     (ii) the proceeds of which shall be used by Holdings to pay its (or to make a
Restricted Payment to any direct or indirect parent company of the Specified U.S. Borrower
to enable it to pay) operating expenses incurred in the ordinary course of business and
other corporate overhead costs and expenses (including, without limitation, administrative,
legal, accounting and similar expenses provided by third parties), which are reasonable and
customary and incurred in the ordinary course of business, in an aggregate amount not to
exceed $2,000,000 in any fiscal year plus any reasonable and customary indemnification
claims made by directors or officers of Holdings or any direct or indirect parent company
of the Specified U.S. Borrower attributable to the ownership or operations of the Specified
U.S. Borrower and its Subsidiaries;

     (iii) the proceeds of which shall be used by Holdings to pay (or to make a Restricted
Payment to any direct or indirect parent company of the Specified U.S. Borrower to enable
it to pay to enable it to pay) its franchise taxes;

     (iv) the proceeds of which will be used to repurchase the Equity Interests of Holdings
from, or to make a Restricted Payment to any direct or indirect parent company of the
Specified U.S. Borrower to enable it to repurchase its Equity Interests from, directors,
employees or members of management of Holdings or any direct or indirect parent company of
the Specified U.S. Borrower, the Specified U.S. Borrower or any Subsidiary (or their
estate, family members, spouse and/or former spouse), in an aggregate amount not in excess
of $5,000,000 in any calendar year plus the proceeds of any key-man life insurance
maintained by Holdings, the Specified U.S. Borrower or any of its Subsidiaries;
provided that the Specified U.S. Borrower may carry-over and make in any subsequent
calendar year or years, in addition to the amount for such calendar year, the amount not
utilized in the prior calendar year or years up to a maximum of $15,000,000; or

     (v) the proceeds of which shall be used by Holdings or any direct or indirect parent
company of the Specified U.S. Borrower to pay fees and expenses (other than to Affiliates)
certified to the Administrative Agent by an Officer of the Specified U.S. Borrower and
related to any unsuccessful equity or debt offering.

     (e) in addition to the foregoing Restricted Payments, the Specified U.S. Borrower may
make additional Restricted Payments to Holdings the proceeds of which may be utilized by
Holdings to make additional Restricted Payments so long as before and after giving effect
thereto (i) no Event of Default has occurred and is continuing, (ii) Excess Availability
shall be more than 25% of the lesser of the Total Borrowing Base and the Aggregate
Commitments and (iii) the Specified U.S. Borrower shall be in pro forma compliance with the
covenant set forth in Section 7.11 (whether or not such covenant is otherwise applicable
under this Agreement at such time) and shall have delivered to the Administrative Agent a
pro forma Compliance Certificate demonstrating such compliance; provided, that

 

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if the proceeds of such Restricted Payment are to be and are promptly applied to make
a payment of the type described in Section 7.14, the Restricted Payment to Holdings under
this clause (e) to allow it to make those payments shall be subject only to the criteria
for the applicable type of payment set forth in Section 7.14;

     (f) repurchases of Equity Interests of the Specified U.S. Borrower deemed to occur
upon the non-cash exercise of stock options and warrants; and

     (g) so long as no Default shall have occurred and be continuing or would result
therefrom, the Specified U.S. Borrower may make Restricted Payments with the net cash
proceeds from any Permitted Equity Issuance received since the Closing Date, to the extent
such proceeds were received within 90 days prior to the date of such Restricted Payment and
held in segregated account pending application pursuant to this clause (g).

          SECTION 7.07. Change in Nature of Business. (a) In respect of Holdings, engage in
any business activities or have any assets or liabilities other than its ownership of the Equity
Interests of the Specified U.S. Borrower and liabilities incidental thereto, including its
liabilities as a Guarantor pursuant to the U.S. Guaranty, the Senior Secured Notes Documents and
the 2012 Senior Subordinated Notes Indenture and any other Permitted Indebtedness.

          (b) In respect of the Specified U.S. Borrower and its Subsidiaries, engage in any material
line of business substantially different from those lines of business conducted by the Specified
U.S. Borrower and its Subsidiaries on the Closing Date or any business reasonably related or
ancillary thereto.

          SECTION 7.08. Transactions with Affiliates. Enter into any transaction of any kind
with any Affiliate of the Specified U.S. Borrower, whether or not in the ordinary course of
business, other than (a) transactions (i) between or among Loan Parties, (ii) between or among
Subsidiaries that are not Loan Parties and (iii) between or among the Loan Parties, the
Subsidiaries and/or any joint venture in which any of them owns an interest, in each case, in the
ordinary course of business, (b) on fair and reasonable terms substantially as favorable to the
applicable Borrower or such Subsidiary as would be obtainable by the applicable Borrower or such
Subsidiary at the time in a comparable arm’s-length transaction with a Person other than an
Affiliate, (c) the payment of fees, expenses and other payments made in connection with the
consummation of the Transactions, (d) so long as no Covenant Trigger Event shall have occurred and
be continuing, the payment of fees to the Sponsor pursuant to the Advisory Agreement, (e) equity
issuances by the Specified U.S. Borrower permitted under Section 7.06, (f) loans and other
transactions by the Specified U.S. Borrower and its Subsidiaries to the extent permitted under
Section 7.06 or clauses (b), (c) and (m) of Section 7.02,
(g) customary fees may be paid to any directors of the Specified U.S. Borrower and reimbursement of
reasonable out-of-pocket costs of the directors of the Specified U.S. Borrower, (h) the Specified
U.S. Borrower and its Subsidiaries may enter into employment and severance arrangements with
officers and employees in the ordinary course of business, (i) the payment of customary fees and
reasonable out-of-pocket cost to, and indemnities

 

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provided on behalf of, directors, officers, employees and consultants of the Specified U.S.
Borrower and the Subsidiaries in the ordinary course of business to the extent attributable to the
ownership or operation of the Specified U.S. Borrower and its Subsidiaries, as determined in good
faith by the board of directors of the Specified U.S. Borrower or senior management thereof, (j)
transactions pursuant to permitted agreements in existence on the Closing Date and set forth on
Schedule 7.08 to the Original Credit Agreement or any amendment thereto to the extent such
an amendment is not adverse to the Lenders in any material respect, (k) dividends, redemptions and
repurchases permitted under Section 7.06, and (l) payments by the Specified U.S. Borrower
and any Subsidiaries to the Sponsor made for any customary financial advisory, financing,
underwriting or placement services or in respect of other investment banking activities, including
in connection with acquisitions or divestitures, which payments are (A) pursuant to the Advisory
Agreement as in effect on the Closing Date and (B) approved by the majority of the members of the
board of directors or a majority of the disinterested members of the board of directors of the
Specified U.S. Borrower, in each case in good faith.

          SECTION 7.09. Burdensome Agreements. Enter into or permit to exist any Contractual
Obligation (other than this Agreement or any other Loan Document) that limits the ability (a) of
any Subsidiary of the Specified U.S. Borrower to make Restricted Payments to the Specified U.S.
Borrower or any Guarantor or to otherwise transfer property to or invest in any Borrower or any
Guarantor, except for any agreement in effect (i) (x) on the Closing Date and (y) to the extent
Contractual Obligations permitted by clause (x) are set forth in an agreement evidencing
Indebtedness, are set forth in any agreement evidencing any permitted renewal, extension or
refinancing of such Indebtedness so long as such renewal, extension or refinancing does not expand
the scope of such Contractual Obligation, (ii) at the time any Person becomes a Subsidiary, so long
as such agreement was not entered into solely in contemplation of such Person becoming a
Subsidiary, (iii) representing Indebtedness of a Subsidiary which is not a Loan Party which is
permitted by Section 7.03, or (iv) in connection with any Disposition permitted by
Section 7.05 relating solely to the assets to be disposed of, and (b) of the Specified U.S.
Borrower or any Loan Party to create, incur, assume or suffer to exist Liens on property of such
Person for the benefit of the Lenders with respect to the Revolving Credit Facility and the
Obligations or under the Loan Documents except for (i) negative pledges and restrictions on Liens
in favor of any holder of Indebtedness permitted under Section 7.03 but solely to the
extent any negative pledge relates to the property subject to a Lien permitted by Section
7.01 or (ii) customary restrictions on leases, subleases, licenses or asset sale agreements
otherwise permitted hereby so long as such restrictions may relate to the assets subject thereto;
provided, however, that clauses (a) and (b) shall not prohibit Contractual
Obligations that (i) are customary provisions in joint venture agreements and other similar
agreements applicable to joint ventures permitted under Section 7.02 and applicable solely
to such joint venture entered into in the ordinary course of business, or (ii) apply only to the
property or assets securing Indebtedness permitted to be secured by such property or assets by
Section 7.01 and Section 7.03, (iii) are customary provisions restricting
subletting or assignment of any lease governing a leasehold interest, (iv) are customary provisions
restricting assignment of any agreement entered into in the ordinary course of business and (v) are
restrictions on cash

 

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or other deposits imposed by customers under contracts entered into in the ordinary course of business.

          SECTION 7.10. Use of Proceeds. Use the proceeds of any Credit Extension, whether
directly or indirectly, to purchase or carry margin stock (within the meaning of Regulation U of
the FRB) or to extend credit to others for the purpose of purchasing or carrying margin stock or to
refund Indebtedness originally incurred for such purpose.

          SECTION 7.11. Consolidated Fixed Charge Coverage Ratio. At any time when a Covenant
Trigger Event shall have occurred and be continuing, permit the Consolidated Fixed Charge Coverage
Ratio as of the end of the most recently completed Measurement Period of Holdings for which
financial statements have been delivered by Holdings pursuant to Section 6.01 and for each
Measurement Period thereafter until such Covenant Trigger Event shall cease to be continuing, to be
less than 1.1:1.0.

          SECTION 7.12. Amendments of Material Documents. Amend (a) any of its Organization
Documents, (b) the Advisory Agreement, (c) the 2012 Senior Subordinated Notes Indenture or any
other agreement relating to Junior Financing or (d) the Senior Secured Notes Documents, in each
case in a manner materially adverse to the Agents or the Lenders.

          SECTION 7.13. Accounting Changes. Make any change in the periods covered by Holdings’
fiscal year.

          SECTION 7.14. Prepayments, Etc. of Indebtedness. (a) Prepay, redeem, purchase,
defease or otherwise satisfy prior to the scheduled maturity thereof in any manner any of the
Senior Secured Notes, the 2012 Senior Subordinated Notes, Permitted Seller Notes and any Permitted
Subordinated Indebtedness (collectively, “Junior Financing”) or make any payment in violation of
any subordination terms of any Junior Financing Documentation, except so long as no Default shall
have occurred and is continuing or would result therefrom (i) the prepayment, redemption, purchase
or defeasance of any such Junior Financing with the net cash proceeds of any Permitted Subordinated
Indebtedness or Permitted Equity Issuance to the extent that such proceeds were received within 180
days prior to the date of such prepayment, redemption, purchase or defeasance and held in a
segregated account pending application pursuant to this Section 7.14, (ii) the conversion of any
Junior Financing to Equity Interests (other than Disqualified Equity Interests) and (iii) the
prepayment, redemption, purchase or defeasance of any such Junior Financing, so long as immediately
before and immediately after giving effect thereto (A) no Default shall have occurred and be
continuing or would result therefrom, (B) Excess Availability shall be at least 25% of the lesser
of the Total Borrowing Base and the Aggregate Commitments and (C) the Specified U.S. Borrower would
be in pro forma compliance with the covenant set forth in Section 7.11 (whether or not such
covenant is otherwise applicable at such time), provided that in each case such payment is also
permitted under the Senior Secured Notes Indenture or (b) amend, modify or change in any manner
materially adverse to the interests of the Administrative Agent or the Lenders any term or
condition of any Junior Financing Documentation.

 

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          SECTION 7.15. Equity Interests of the Specified U.S. Borrower and Subsidiaries. (a)
(i) Permit the Specified U.S. Borrower or any of its Subsidiaries to own directly or indirectly
less than 100% of the Equity Interests of any of the Domestic Subsidiaries and Canadian
Subsidiaries except as a result of or in connection with a dissolution, merger, consolidation or
Disposition of a Subsidiary permitted by Section 7.04 or 7.05 or an Investment in
any Person permitted under Section 7.02; or

          (b) Permit the Specified U.S. Borrower or any of its Subsidiaries to own directly or
indirectly less than 80% of the Equity Interests of any of the Foreign Subsidiaries (other than
Canadian Subsidiaries) which are Subsidiaries except (A) to qualify directors where required by
applicable Law or to satisfy other requirements of applicable Law with respect to the ownership of
Equity Interests of Foreign Subsidiaries or (B) as a result of or in connection with a dissolution,
merger, amalgamation, consolidation or disposition of a Subsidiary permitted by Section
7.04 and 7.05 or an Investment in any Person permitted under Section 7.02; or

          (c) Create, incur, assume or suffer to exist any Lien on any Equity Interests of any Borrower
(other than Liens pursuant to the Loan Documents and non-consensual Liens arising solely by
operation of law and customary restrictions in joint venture agreements).

          SECTION 7.16. Designation of Senior Debt. Designate any other Indebtedness (other
than the Senior Secured Notes) of the Specified U.S. Borrower or any of its Subsidiaries as
“Designated Senior Debt” (or any comparable term) under, and as defined in, the 2012 Senior
Subordinated Notes Indenture or any other applicable Junior Financing Documentation.

ARTICLE VIII

Events of Default and Remedies

          SECTION 8.01. Events of Default. The occurrence of the following shall constitute an
Event of Default:

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

     (b) Specific Covenants. (i) Any Loan Party fails to perform or observe any
term, covenant or agreement contained in any of Sections 6.03(a),
6.05 (but only with respect to Holdings’, the Specified U.S. Borrower’s or the
Canadian Borrower’s existence), 6.11, 6.17(a)(iv), (v) or
(vi), 6.19, 6.20 or Article VII (after notice), (ii) any of the
Guarantors fails to perform or observe any term,

 

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covenant
or agreement contained in Sections 1.05 and 1.06 of the
respective Mortgages to which it is a party (after notice); or

     (c) Other Defaults. (i) Any Loan Party fails to perform or observe any term,
covenant or agreement contained in Section 6.01(e) and 6.10 on its part to
be performed or observed and such failure continues for two Business Days; (ii) any Loan
Party fails to perform or observe any term, covenant or agreement contained in any of
Sections 6.01(a), (b), (c) or (d), 6.17 (other
than Sections 6.17(a)(iv), (v), (vi) or (b)(ii)) on its
part to be performed or observed and such failure continues for five Business Days; (iii)
any Loan Party fails to perform or observe any term, covenant or agreement contained in
Section 6.07 on its part to be performed or observed and such failure continues for
10 Business Days; or (iv) any Loan Party fails to perform or observe any other covenant or
agreement (not specified in Section 8.01(a) or (b), (c)(i),
(c)(ii) or (c)(iii) above) contained in any Loan Document on its part to be
performed or observed and such failure continues for 30 days after notice thereof by the
Administrative Agent to the Specified U.S. Borrower; or

     (d) Representations and Warranties. Any representation, warranty,
certification or statement of fact made or deemed made by or on behalf of any Borrower or
any other Loan Party herein, in any other Loan Document or any amendments or modification
thereof or waiver thereunder, or in any report, Borrowing Base Certificate or in any
document delivered in connection herewith or therewith shall be incorrect or misleading in
any material respect when made or deemed made; or

     (e) Cross-Default. (i) Any Loan Party or any Subsidiary thereof (A) fails to
make any payment (after giving effect to any applicable grace periods) when due (whether by
scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of
any Indebtedness or Guarantee (other than Indebtedness hereunder and Indebtedness under
Swap Contracts) having an aggregate principal amount (including undrawn committed or
available amounts and including amounts owing to all creditors under any combined or
syndicated credit arrangement) of more than the Threshold Amount, or (B) fails to observe
or perform any other agreement or condition relating to any such Indebtedness or Guarantee
or contained in any instrument or agreement evidencing, securing or relating thereto, or
any other event occurs, the effect of which default or other event is to cause, or to
permit the holder or holders of such Indebtedness or the beneficiary or beneficiaries of
such Guarantee (or a trustee or agent on behalf of such holder or holders or beneficiary or
beneficiaries) to cause, with the giving of notice if required, such Indebtedness to be
demanded or to become due or to be repurchased, prepaid, defeased or redeemed
(automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such
Indebtedness to be made, prior to its stated maturity, or such Guarantee to become payable
or cash collateral in respect thereof to be demanded; or (ii) there occurs under any Swap
Contract an Early Termination Date (as defined in such Swap Contract) resulting from (A)
any event of default under such Swap Contract as to which a Loan Party or

 

156

any Subsidiary thereof is the Defaulting Party (as defined in such Swap Contract) or (B)
any Termination Event (as so defined) under such Swap Contract as to which a Loan Party or
any Subsidiary thereof is an Affected Party (as so defined) and, in either event, the Swap
Termination Value owed by such Loan Party or such Subsidiary as a result thereof is greater
than the Threshold Amount; or

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

     (g) Inability to Pay Debts; Attachment. (i) Any Loan Party or any Subsidiary
thereof becomes unable or admits in writing its inability or fails generally to pay its
debts as they become due, or (ii) any writ or warrant of attachment or execution or similar
process is issued or levied against all or any material part of the property of any such
Person and is not released, vacated or fully bonded within 45 days after its issue or levy;
or

     (h) Judgments. There is entered against any Loan Party or any Subsidiary
thereof (i) one or more final judgments or orders for the payment of money in an aggregate
amount (as to all such judgments and orders) exceeding the Threshold Amount (to the extent
not covered by independent third-party insurance as to which the insurer is rated at least
“A” by A.M. Best Company, has been notified of the potential claim and does not dispute
coverage), or (ii) any one or more non-monetary final judgments that have, or could
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect
and, in either case, (A) enforcement proceedings are commenced by any creditor upon such
judgment or order, or (B) there is a period of 45 consecutive days during which a stay of
enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect;
or

     (i) ERISA. (i) An ERISA Event occurs with respect to a Pension Plan,
Multiemployer Plan or, to the extent applicable, a Canadian Pension Plan, which has
resulted or could reasonably be expected to result in liability of the Borrowers under
Title IV of ERISA to the Pension Plan, Multiemployer Plan, Canadian Pension Plan or the
PBGC or other applicable Governmental Authority that could reasonably be expected to result
in a Material Adverse Effect, (ii) any Borrower or any ERISA Affiliate fails to pay when
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applicable grace period, any installment payment with respect to its withdrawal
liability under Section 4201 of ERISA under a Multiemployer Plan that could reasonably be
expected to result in a Material Adverse Effect or (iii) any Canadian Loan Party fails to
make a required contribution in respect of a Canadian Pension Plan and such failure gives
rise to a Lien that is not permitted under Section 7.01; or

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

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

     (l) Collateral Documents. Any Collateral Document after delivery thereof
pursuant to Section 4.01 or 6.12 or the terms of the Loan Documents shall
for any reason (other than pursuant to the terms thereof) cease to create a valid and
perfected first priority Lien (subject to Liens permitted by Section 7.01 and the
Intercreditor Agreement) on the Collateral purported to be covered thereby; or

     (m) Subordination. (i) The subordination provisions of the 2012 Senior
Subordinated Notes Indenture or the documents evidencing or governing any other
subordinated Indebtedness (the “Subordination Provisions”) shall, in whole or in
part, terminate, cease to be effective or cease to be legally valid, binding and
enforceable against any holder of the applicable subordinated Indebtedness; or (ii) any
Borrower or any other Loan Party shall, directly or indirectly, disavow or contest in any
manner (A) the effectiveness, validity or enforceability of any of the Subordination
Provisions, (B) that the Subordination Provisions exist for the benefit of the
Administrative Agent, the Lenders and the L/C Issuers or (C) that all payments of principal
of or premium and interest on the applicable subordinated Indebtedness, or realized from
the liquidation of any property of any Loan Party, shall be subject to any of the
Subordination Provisions.

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

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

     (b) declare the unpaid principal amount of all outstanding Loans, all interest accrued
and unpaid thereon, and all other amounts owing or payable

 

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hereunder or under any other Loan Document to be immediately due and payable, without
presentment, demand, protest or other notice of any kind, all of which are hereby expressly
waived by each Borrower; and

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

          If any Event of Default occurs and is continuing, the Collateral Agent may, and at the request
of the Required Lenders shall, exercise on behalf of itself, the Administrative Agent, the Lenders
and the L/C Issuers all rights and remedies available to it, the Administrative Agent, the Lenders
and the L/C Issuers under the Loan Documents;

provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to the Specified U.S. Borrower or the Canadian Borrower under any
Debtor Relief Laws, the obligation of each Lender to make Loans and any obligation of the L/C
Issuers to make L/C Credit Extensions shall automatically terminate, the unpaid principal amount of
all outstanding Loans and all interest and other amounts as aforesaid shall automatically become
due and payable, and the obligation of the Borrowers to Cash Collateralize the L/C Obligations as
aforesaid shall automatically become effective, in each case without further act of any Agent or
any Lender.

          SECTION 8.03. Application of Funds. After the occurrence and during the continuance
of an Event of Default, at the election of the Administrative Agent or the Required Lenders (or
after the Loans have become immediately due and payable and the L/C Obligations have been required
to be Cash Collateralized as set forth in the proviso to Section 8.02), any amounts
received on account of the Obligations shall be applied, subject to the Intercreditor Agreement, by
the Administrative Agent in the following order:

     (a) With respect to amounts received from or on account of any U.S. Loan Party, or in
respect of any U.S. Collateral,

     First, to payment of all costs and expenses incurred by the
Administrative Agent and the Collateral Agent (in their respective capacities as
such hereunder or under any other U.S. Loan Document) in connection with the
collection, sale, foreclosure or realization upon any U.S. Collateral or otherwise
in connection with this Agreement, any other U.S. Loan Document or any of the U.S.
Obligations, including all court costs and the fees and expenses of its agents and
legal counsel, the repayment of all advances made by the Administrative Agent
and/or the Collateral Agent hereunder or under any other U.S. Loan Document on
behalf of Holdings or any U.S. Subsidiary Guarantor and any other costs or expenses
incurred in connection with the exercise of any right or remedy hereunder or under
any other U.S. Loan Document;

 

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     Second, to payment in full of U.S. Unfunded Advances/Participations
(the amounts so applied to be distributed between or among the Administrative
Agent, the U.S. Swing Line Lender and the U.S. L/C Issuer pro rata in accordance
with the amounts of U.S. Unfunded Advances/Participations owed to them on the date
of such distribution);

     Third, to payment in full of all other U.S. Obligations (the amounts
so applied to be distributed among the U.S. Secured Parties pro rata in accordance
with the amounts of the U.S. Obligations owed to them on the date of any such
distribution);

     Fourth, to the Canadian Obligations in the order set forth in Section
8.03(b);

     Fifth, as provided for under the Intercreditor Agreement; and

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

     (b) With respect to amounts received from or on account of any Canadian Loan Party or
in respect of any Canadian Collateral, or, after all of the U.S. Obligations set forth in
clauses first through third above have been indefeasibly paid in full in
accordance with Section 8.03(a), from or on account of any U.S. Loan Party, or in
respect of any U.S. Collateral,

     First, to payment of that of all costs and expenses incurred by the
Administrative Agent and the Collateral Agent (in their respective capacities as
such hereunder or under any other Canadian Loan Document) in connection with the
collection, sale, foreclosure or realization upon any Canadian Collateral or
otherwise in connection with this Agreement, any other Canadian Loan Document or
any of the Canadian Obligations, including all court costs and the fees and
expenses of its agents and legal counsel, the repayment of all advances made by the
Administrative Agent and/or the Collateral Agent hereunder or under any other
Canadian Loan Document on behalf of any Guarantor and any other costs or expenses
incurred in connection with the exercise of any right or remedy hereunder or under
any other Canadian Loan Document;

     Second, to payment in full of Canadian Unfunded
Advances/Participations (the amounts so applied to be distributed between or among
the Administrative Agent, the Canadian Swing Line Lender and the Canadian L/C
Issuer pro rata in accordance with the amounts of Canadian Unfunded
Advances/Participations owed to them on the date of such distribution);

     Third, to payment in full of all other Canadian Obligations (the
amounts so applied to be distributed among the Canadian Secured Parties

 

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pro rata in accordance with the amounts of the Canadian Obligations owed to
them on the date of any such distribution);

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

Subject to Section 2.03(c), amounts used to Cash Collateralize the aggregate undrawn amount
of Letters of Credit pursuant to Section 8.03(a) above, and Section 8.03(b) above,
shall be applied to satisfy drawings under such Letters of Credit as they occur. If any amount
remains on deposit as Cash Collateral after all Letters of Credit have either been fully drawn or
expired, such remaining amount shall be applied to the other Obligations, if any, in the order set
forth above.

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

          SECTION 8.04. Collection Allocation Mechanism. (a) On the CAM Exchange Date, (i)
each U.S. Revolving Credit Lender shall immediately be deemed to have acquired (and shall promptly
make payment therefor to the Administrative Agent in accordance with Section
2.04(A)(c)(ii)) participations in the U.S. Swing Line Loans in an amount equal to such U.S.
Revolving Lender’s Applicable Percentage of each U.S. Swing Line Loan outstanding on such date,
(ii) each U.S. Revolving Credit Lender shall immediately be deemed to have acquired (and shall
promptly make payment therefor to the Administrative Agent in accordance with Section 2.03)
participations in the Outstanding Amount of U.S. L/C Obligations with respect to each U.S. Letter
of Credit in an amount equal to such U.S. Revolving Credit Lender’s Applicable Percentage of the
aggregate amount available to be drawn under such U.S. Letter of Credit, (iii) each Canadian
Revolving Credit Lender shall immediately be deemed to have acquired (and shall promptly make
payment therefor to the Administrative Agent in accordance with Section 2.04(B)(c)(ii))
participations in the Canadian Swing Line Loans in an amount equal to such Canadian Lender’s
Applicable Percentage of each Canadian Swing Line Loan outstanding on such date, (iv) each Canadian
Revolving Credit Lender shall immediately be deemed to have acquired (and shall promptly make
payment therefor to the Administrative Agent in accordance with Section 2.03)
participations in the Outstanding Amount of Canadian L/C Obligations with respect to each Canadian
Letter of Credit in an amount equal to such Canadian Revolving Credit Lender’s Applicable
Percentage of the aggregate amount available to be drawn under such Canadian Letter of Credit, (v)
simultaneously with the automatic conversions pursuant to clause (vi) below, the Lenders shall
automatically and without further act (and without regard to the

 

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provisions of Section 10.04) be deemed to have exchanged interests in the Loans (other
than the Swing Line Loans) and participations in the Swing Line Loans and Letters of Credit, such
that in lieu of the interest of each Lender in each Loan, and L/C Obligations in which it shall
participate as of such date (including such Lender’s interest in the Obligations, Guaranties and
Collateral of each Loan Party in respect of each such Loan and L/C Obligations), such Lender shall
hold an interest in every one of the Loans (other than the Swing Line Loans) and a participation in
every one of the Swing Line Loans and all of the L/C Obligations (including the Obligations,
Guaranties and Collateral of each Loan Party in respect of each such Loan), whether or not such
Lender shall previously have participated therein, equal to such Lender’s CAM Percentage thereof
and (vi) simultaneously with the deemed exchange of interests pursuant to clause (v) above, the
interest in the Loans denominated in Canadian Dollars to be received in such deemed exchange shall
be converted into Obligations denominated in Dollars and on and after such date all amounts
accruing and owed to Lenders in respect of such Obligations shall accrue and be payable in Dollars
at the rates otherwise applicable hereunder. Each Lender and each Loan Party hereby consents and
agrees to the CAM Exchange, and each Lender agrees that the CAM Exchange shall be binding upon its
successors and assigns and any person that acquires a participation in its interests in any Loan or
any participation in any Swing Line Loan or Letter of Credit. Each Loan Party agrees from time to
time to execute and deliver to the Administrative Agent all such promissory notes and other
instruments and documents as the Administrative Agent shall reasonably request to evidence and
confirm the respective interests of the Lenders after giving effect to the CAM Exchange, and each
Lender agrees to surrender any promissory notes originally received by it in connection with its
Loans hereunder to the Administrative Agent against delivery of any promissory notes evidencing its
interests in the Loans so executed and delivered; provided, however, that the
failure of any Loan Party to execute or deliver or of any Lender to accept any such promissory
note, instrument or document shall not affect the validity or effectiveness of the CAM Exchange.

          (b) As a result of the CAM Exchange, upon and after the CAM Exchange Date, each payment
received by the Administrative Agent pursuant to any Loan Document in respect of any of the
Obligations, and each distribution made by the Administrative Agent in respect of the Obligations,
shall be distributed to the Lenders pro rata in accordance with their respective CAM Percentages.
Any direct payment received by a Lender upon or after the CAM Exchange Date, including by way of
setoff, in respect of an Obligation shall be paid over to the Administrative Agent for distribution
to the Lenders in accordance herewith.

ARTICLE IX

The Agents

          SECTION 9.01. Appointment and Authority. (a) Each of the Lenders (including in its
capacities as a potential Hedge Bank and a potential Cash Management Bank) and each L/C Issuer
hereby irrevocably appoints the Administrative Agent and the Collateral Agent to act on its behalf
as its agents hereunder and under the other Loan Documents and authorizes the Agents to take such
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such powers as are delegated to the Agents by the terms hereof or thereof, together with such
actions and powers as are reasonably incidental thereto. Except for Section 9.06, the
provisions of this Article are solely for the benefit of the Agents, the Lenders and the L/C
Issuers, and neither the Borrowers nor any other Loan Parties shall have rights as a third party
beneficiary of any of such provisions.

          (b) For the purposes of creating a solidarité active in accordance with Article 1541 of the
Civil Code of Quebec between each Secured Party, taken individually, on the one hand, and the
Agents, on the other hand, each Loan Party and each such Secured Party acknowledges and agrees with
the Administrative Agent that such Secured Party and the Agents are hereby conferred the legal
status of solidary creditors of each such Loan Party in respect of all Obligations owed by each
such Loan Party to the Agents and such Secured Party hereunder and under the other Loan Documents
(collectively, the “Solidary Claim”) and that, accordingly, but subject (for the avoidance
of doubt) to Articles 1542 and 1543 of the Civil Code of Québec, each such Loan Party is
irrevocably bound towards the Agents and each Secured Party in respect of the entire Solidary Claim
of the Agents and such Secured Party. As a result of the foregoing, the parties hereto acknowledge
that the Agents and each Secured Party shall at all times have a valid and effective right of
action for the entire Solidary Claim of the Agents and such Secured Party and the right to give
full acquittance for it. Accordingly, and without limiting the generality of the foregoing, each
Agent, as solidary creditor with each Secured Party, shall at all times have a valid and effective
right of action in respect of the Solidary Claim and the right to give a full acquittance for same.
By its execution of the Loan Documents to which it is a party, each such Loan Party and Secured
Party not a party hereto shall also be deemed to have accepted the stipulations hereinabove
provided. The parties further agree and acknowledge that such Liens (hypothecs) under the
Collateral Documents and the other Loan Documents shall be granted to the Collateral Agent, for its
own benefit and for the benefit of the Secured Parties, as solidary creditor as hereinabove set
forth.

          SECTION 9.02. Rights as a Lender. Each Person serving as an 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 an Agent and the term “Lender” or “Lenders” shall, unless otherwise
expressly indicated or unless the context otherwise requires, include the Person serving as an
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 Borrower or any Subsidiary or other Affiliate
thereof as if such Person were not an Agent hereunder and without any duty to account therefor to
the Lenders.

          SECTION 9.03. Exculpatory Provisions. The Agents 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, neither Agent:

     (a) shall be subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing;

 

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     (b) shall 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 such Agent is required to exercise as directed in writing by the
Required Lenders, Required U.S. Lenders or Required Canadian 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 such Agent shall not be required to take any action that,
in its opinion or the opinion of its counsel, may expose such Agent to liability or that is
contrary to any Loan Document or applicable law; and

     (c) shall, 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 Borrower or any of its Affiliates that is communicated to or obtained by
the Person serving as an Agent or any of its Affiliates in any capacity.

          Neither Agent shall 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 such Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Sections 10.01 and 8.02) or (ii) in the absence of its
own gross negligence or willful misconduct. Neither Agent shall be deemed to have written
knowledge of any Default unless and until notice describing such Default is given to such Agent by
a Borrower, a Lender or an L/C Issuer.

          Neither Agent shall be responsible for or have any duty to ascertain or inquire into (i) any
statement, warranty or representation made in or in connection with this Agreement or any other
Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder
or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of
the covenants, agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this
Agreement, any other Loan Document or any other agreement, instrument or document, or the creation,
perfection or priority of any Lien purported to be created by the Collateral Documents, (v) the
value or the sufficiency of any Collateral, or (v) the satisfaction of any condition set forth in
Article IV or elsewhere herein, other than to confirm receipt of items expressly required
to be delivered to the Agents.

          SECTION 9.04. Reliance by Administrative Agent. The Agents 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 Agents 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 an L/C Issuer, the Administrative
Agent may

 

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

          SECTION 9.05. Delegation of Duties. (a) Each 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 individual(s) or institution(s) as separate trustee(s), co-trustee(s), collateral
agent(s), collateral sub-agent(s) or collateral co-agent(s) (any such additional individual or
institution being referred to herein as a “Supplemental Collateral Agent”) appointed by
such Agent. Each Agent and any such sub-agent may perform any and all of its duties and exercise
its rights and powers by or through their respective Related Parties. The exculpatory provisions
of this Article shall apply to any such sub-agent and to the Related Parties of the Agents 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 Agents.

          (b) In the event that the Collateral Agent appoints a Supplemental Collateral Agent with
respect to any Collateral, (i) each and every right, power, privilege or duty expressed or intended
by this Agreement or any of the other Loan Documents to be exercised by or vested in or conveyed to
the Collateral Agent with respect to such Collateral shall be exercisable by and vest in such
Supplemental Collateral Agent to the extent, and only to the extent, necessary to enable such
Supplemental Collateral Agent to exercise such rights, powers and privileges with respect to such
Collateral and to perform such duties with respect to such Collateral, and every covenant and
obligation contained in the Loan Documents and necessary to the exercise or performance thereof by
such Supplemental Collateral Agent shall run to and be enforceable by either the Collateral Agent
or such Supplemental Collateral Agent, and (ii) the provisions of this Article and of Section
10.04 that refer to the Collateral Agent shall inure to the benefit of such Supplemental
Collateral Agent and all references therein to the Collateral Agent shall be deemed to be
references to the Collateral Agent and/or such Supplemental Collateral Agent, as the context may
require.

          (c) Should any instrument in writing from any Loan Party be required by any Supplemental
Collateral Agent so appointed by the Collateral Agent for more fully and certainly vesting in and
confirming to him or it such rights, powers, privileges and duties, such Loan Party shall execute,
acknowledge and deliver any and all such instruments promptly upon request by the Collateral Agent.
In case any Supplemental Collateral Agent, or a successor thereto, shall die, become incapable of
acting, resign or be removed, all the rights, powers, privileges and duties of such Supplemental
Collateral Agent, to the extent permitted by law, shall vest in and be exercised by the Collateral
Agent until the appointment of a new Supplemental Collateral Agent.

 

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          SECTION 9.06. Resignation of Administrative Agent. Each Agent may at any time give
notice of its resignation to the Lenders, the L/C Issuers and the Borrowers. Upon receipt of any
such notice of resignation, the Required Lenders shall have the right, with consent of with the
Specified U.S. Borrower (so long as no Event of Default has occurred and be continuing), to appoint
a successor, which shall be a bank with an office in the United States, or an Affiliate of any such
bank with an office in the United States and Canada. If no such successor shall have been so
appointed by the Required Lenders and shall have accepted such appointment within 30 days after the
retiring Agent gives notice of its resignation, then the retiring Agent may on behalf of the
Lenders and the L/C Issuers, appoint a successor Agent meeting the qualifications set forth above.
Upon the acceptance of a successor’s appointment as Agent hereunder, such successor shall succeed
to and become vested with all of the rights, powers, privileges and duties of the retiring (or
retired) Agent and the retiring Agent shall be discharged from all of its duties and obligations
hereunder or under the other Loan Documents (if not already discharged therefrom as provided above
in this Section). The fees payable by the Borrowers to a successor Agent shall be the same as
those payable to its predecessor unless otherwise agreed between the Borrowers and such successor.
After the retiring Agent’s resignation hereunder and under the other Loan Documents, the provisions
of this Article and Section 10.04 shall continue in effect for the benefit of such retiring
Agent, its sub-agents and their respective Related Parties in respect of any actions taken or
omitted to be taken by any of them while the retiring Agent was acting as Agent.

          SECTION 9.07. Non-Reliance on Administrative Agent and Other Lenders. Each Lender
and each L/C Issuer acknowledges that it has, independently and without reliance upon either 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 each L/C Issuer also acknowledges that it will, independently and without reliance
upon either Agent or any other Lender or any of their Related Parties and based on such documents
and information as it shall from time to time deem appropriate, continue to make its own decisions
in taking or not taking action under or based upon this Agreement, any other Loan Document or any
related agreement or any document furnished hereunder or thereunder.

          SECTION 9.08. No Other Duties, Etc. Anything herein to the contrary notwithstanding,
none of the Bookrunner or the Syndication Agent listed on the cover page hereof shall have any
powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except
in its capacity, as applicable, as the Administrative Agent, the Collateral Agent, a Lender or an
L/C Issuer hereunder.

          SECTION 9.09. Administrative Agent May File Proofs of Claim. In case of the pendency
of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Loan
Party, the Administrative Agent (irrespective of whether the principal of any Loan or L/C
Obligation shall then be due and payable as herein expressed or by declaration or otherwise and
irrespective of whether the Administrative Agent shall have made any demand on any Borrower) shall
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     (a) to file and prove a claim for the whole amount of the principal and interest owing
and unpaid in respect of the Loans, L/C Obligations and all other Obligations that are
owing and unpaid and to file such other documents as may be necessary or advisable in order
to have the claims of the Lenders, the L/C Issuers and the Administrative Agent (including
any claim for the reasonable compensation, expenses, disbursements and advances of the
Lenders, the L/C Issuers and the Administrative Agent and their respective agents and
counsel and all other amounts due the Lenders, the L/C Issuers and the Administrative Agent
under Sections 2.03(h) and (i), 2.09 and 10.04) allowed in
such judicial proceeding; and

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

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

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

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

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

 

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     (b) to release any Guarantor from its obligations under the Guaranties if such Person
ceases to be a Subsidiary as a result of a transaction permitted hereunder; and

     (c) to subordinate any Lien on any property granted to or held by the Collateral Agent
under any Loan Document to the holder of any Lien on such property that is permitted by
Section 7.01(i).

          Upon request by the Collateral Agent at any time, the Required Lenders will confirm in writing
the Collateral Agent’s authority to release or subordinate its interest in particular types or
items of property, or to release any Guarantor from its obligations under a Guaranty pursuant to
this Section 9.10. In each case as specified in this Section 9.10, the Collateral
Agent will, at the Borrowers’ expense, execute and deliver to the applicable Loan Party such
documents as such Loan Party may reasonably request to evidence the release of such item of
Collateral from the assignment and security interest granted under the Collateral Documents or to
subordinate its interest in such item, or to release such Guarantor from its obligations under the
Guaranties, in each case in accordance with the terms of the Loan Documents and this Section
9.10.

          SECTION 9.11. Secured Cash Management Agreements and Secured Hedge Agreements. No
Cash Management Bank or Hedge Bank that obtains the benefits of Section 8.03, of any
Guaranty or any Collateral by virtue of the provisions hereof or of any Guaranty or any Collateral
Document shall have any right to notice of any action or to consent to, direct or object to any
action hereunder or under any other Loan Document or otherwise in respect of the Collateral
(including the release or impairment of any Collateral) other than in its capacity as a Lender and,
in such case, only to the extent expressly provided in the Loan Documents. Notwithstanding any
other provision of this Article IX to the contrary, the Administrative Agent shall not be required
to verify the payment of, or that other reasonably satisfactory arrangements have been made with
respect to, Obligations arising under Secured Cash Management Agreements and Secured Hedge
Agreements unless the Administrative Agent has received written notice of such Obligations,
together with such supporting documentation as the Administrative Agent may request, from the
applicable Cash Management Bank or Hedge Bank, as the case may be. Upon the request of the
Administrative Agent at any time, the Hedge Banks and the Cash Management Banks shall provide to
the Administrative Agent a summary of outstanding obligations under any Cash Management Agreements
or Swap Contracts secured by a Lien on any asset of any Loan Party, as of such date as may be
reasonably requested by the Administrative Agent, showing the aggregate amount of such obligations
determined on a marked-to-market basis and such other information reasonably requested by the
Administrative Agent. At the request of the Administrative Agent from time to time, the Hedge
Banks and the Cash Management Banks shall provide to the Administrative Agent copies of any Cash
Management Agreements or Swap Contracts pursuant to which obligations secured by a Lien on any
asset of any Loan Party have been incurred.

 

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ARTICLE X

Miscellaneous

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

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

     (b) increase the aggregate Commitments under the Revolving Credit Facility to an
amount greater than $200,000,000 without the consent of each Lender;

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

     (d) reduce the principal of, or the rate of interest specified herein on, any Loan or
L/C Borrowing, or (subject to clause (iv) of the second proviso to this Section 10.01) any
fees or other amounts payable hereunder or under any other Loan Document without the
written consent of each Lender entitled to such amount; provided, however,
that only the consent of the Required Lenders and the Administrative Agent shall be
necessary to waive any obligation of the Borrowers to pay interest or Letter of Credit Fees
at the Default Rate;

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

     (f) change (i) any provision of this Section 10.01 or (ii) the definition of
“Required Lenders”, “Required U.S. Lenders”, “Required Canadian Lenders” or “Supermajority
Lenders” or any other provision hereof specifying the number or percentage of Lenders
required to amend, waive or otherwise modify any rights hereunder or make any determination
or grant any consent hereunder (other than the definitions specified in clause (ii) of this
Section 10.01(f)), without the written consent of each Lender;

     (g) release all or substantially all of the Collateral in any transaction or series of
related transactions, without the written consent of each Lender (unless all Obligations
have been paid in full in cash and the Commitments terminated);

 

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

     (i) amend, modify or waive any provision of this Agreement, in each case governing the
rights of the Lenders under any Facility, without the written consent of Lenders holding a
majority in interest of the obligations under such Facility, if such amendment,
modification or waiver, or such provision, by its express terms applies only to such
Facility (or only to the Lenders thereunder) and if such amendment, modification or waiver
adversely affects the Lenders under such Facility;

     (j) increase the advance rates set forth in the definition of the terms “U.S.
Borrowing Base” or “Canadian Borrowing Base”, or reduce the amounts set forth in the
definition of the terms “Cash Dominion Event” or “Covenant Trigger Event”, without the
written consent of the Supermajority Lenders;

     (k) change or otherwise modify the eligibility criteria, eligible asset classes,
reserves, sublimits in respect of any Borrowing Base, or add new asset categories to any
Borrowing Base, or otherwise cause any Borrowing Base or availability under the Revolving
Credit Facility provided for herein to be increased, in each case without the written
consent of the Supermajority Lenders; provided that this clause (k) shall
not limit the discretion of the Administrative Agent to change, establish or eliminate any
reserves, to add assets acquired in a Permitted Acquisition to any Borrowing Base or to
otherwise exercise its discretion or Credit Judgment in respect of any determination
expressly provided hereunder to be made by the Administrative Agent in its discretion or
Credit Judgment, all to the extent otherwise set forth herein; or

     (l) amend, modify or change the provisions of Section 8.04 or the definition
of “CAM Percentage” without the written consent of each Lender;

provided, further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the applicable L/C Issuer in addition to the Lenders required above, affect
the rights or duties of such L/C Issuer under this Agreement or any Issuer Document relating to any
Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless
in writing and signed by the applicable Swing Line Lender in addition to the Lenders required
above, affect the rights or duties of such Swing Line Lender under this Agreement; (iii) no
amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in
addition to the Lenders required above, affect the rights or duties of the Administrative Agent
under this Agreement or any other Loan Document; and (iv) the Fee Letter may be amended, or rights
or privileges thereunder waived, in a writing executed only by the parties thereto.
Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to
approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of
such Lender may not be increased or extended without the consent of such Lender.

 

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          If any Lender does not consent to a proposed amendment, waiver, consent or release with
respect to any Loan Document that requires the consent of more than the Required Lenders and that
has been approved by the Required Lenders, the Borrowers may replace such non-consenting Lender in
accordance with Section 10.13; provided that such amendment, waiver, consent or
release can be effected as a result of the assignment contemplated by such Section (together with
all other such assignments required by the Borrowers to be made pursuant to this paragraph).

          Each Loan Party acknowledges the agreements set forth in the Fee Letter and agrees that it
will execute and deliver such amendments to the Loan Documents as shall be deemed advisable by the
Bookrunner to give effect to the provisions of the Fee Letter. Notwithstanding anything to the
contrary in this Section 10.01, the Administrative Agent and the Loan Parties shall be
permitted to execute and deliver such amendments and such amendments shall become effective without
any further action or consent of any other party to any Loan Document if the same is not objected
to in writing by the Required Lenders within five (5) Business Days following receipt of notice
thereof.

          Subject to the restrictions set forth in the foregoing subparagraphs 10.01(a) to (j),
but notwithstanding anything else to the contrary contained in this Section 10.01, (a) with
respect to any provision contained in this Agreement relating to any Facility, the Administrative
Agent, the Borrowers and a majority in interest of the Lenders under such Facility shall be
permitted to amend such provision, without the consent of any other Lender, solely to the extent
reasonably necessary or advisable to (i) comply with Applicable Law relating to such Facility or
(ii) better implement the intentions of this Agreement with respect to such Facility, and, in the
case of any amendment made pursuant to this clause (ii), solely to the extent that such amendment
does not impair the rights, obligations or interests of any other Lender under this Agreement in
any material respect and (b) at any time on or before the date that is sixty (60) days after the
Closing Date, the Administrative Agent and the Borrowers shall have jointly identified an obvious
error or any error or omission of a technical or immaterial nature, in each case, in any provision
of the Loan Documents, then the Administrative Agent and the Borrowers shall be permitted to amend
such provision and such amendment shall become effective without any further action or consent of
any other party to any Loan Document if the same is not objected to in writing by the Required
Lenders within five (5) Business Days following receipt of notice thereof.

          Notwithstanding the foregoing provisions of this Section 10.01, technical and conforming
modifications to the Loan Documents may be made with the consent of the Borrowers and the
Administrative Agent to the extent necessary to integrate any Incremental Revolving Credit
Commitments on substantially the same basis as the Revolving Credit Commitments.

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

 

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sent by telecopier as follows, and all notices and other communications expressly permitted
hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

     (i) if to the Borrowers, the Borrower Agent, the Administrative Agent, the Collateral
Agent, the L/C Issuers or the Swing Line Lenders, to the address, telecopier number,
electronic mail address or telephone number specified for such Person on Schedule
10.02 to the Original Credit Agreement; and

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

Notices and other communications sent by hand or overnight courier service, or mailed by certified
or registered mail, shall be deemed to have been given when received; notices and other
communications sent by telecopier shall be deemed to have been given when sent (except that, if not
given during normal business hours for the recipient, shall be deemed to have been given at the
opening of business on the next business day for the recipient). Notices and other communications
delivered through electronic communications to the extent provided in subsection (b) below shall be
effective as provided in such subsection (b).

          Each Loan Party located outside of the U.S. hereby irrevocably appoints the Borrower Agent as
its agent to receive on behalf of such Loan Party and its property service of copies of the summons
and complaint and any other process which may be served in any such action or proceeding. Such
service may be made by mailing or delivering a copy of such process to such Loan Party in care of
the Borrower Agent at the Borrower Agent’s address specified in this Agreement, and such Loan Party
hereby irrevocably authorizes and directs the Borrower Agent to accept such service on its behalf.
As an alternative method of service, each Loan Party also irrevocably consents to the service of
any and all process in any such action or proceeding by the mailing of copies of such process to
such Loan Party at its address specified in this Agreement.

          (b) Electronic Communications. Notices and other communications to the Lenders and
the L/C Issuers 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 any L/C
Issuer pursuant to Article II if such Lender or such L/C Issuer, as applicable, has
notified the Administrative Agent that it is incapable of receiving notices under such Article by
electronic communication. The Administrative Agent or the Borrowers may, in their 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

 

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“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.

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

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

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

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

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

          SECTION 10.04. Expenses; Indemnity; Damage Waiver. (a) Costs and Expenses.
The Borrowers shall pay (i) all reasonable out-of-pocket expenses incurred by the Bookrunner,
Administrative Agent, the Collateral Agent and their respective Affiliates (including the
reasonable fees, charges and disbursements of counsel for the Agents and the Bookrunner), in
connection with the syndication of the credit facilities provided for herein, the preparation,
negotiation, execution, delivery and administration of this Agreement and the other Loan Documents
or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the
transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable
out-of-pocket expenses incurred by each L/C Issuer in connection with the issuance, amendment,
renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all
out-of-pocket expenses incurred by any Agent, any Lender or any L/C Issuer (including the fees,
charges and disbursements of any counsel for the Agents, any Lender or any L/C Issuer) in
connection with the enforcement or protection of its rights (A) in connection with this Agreement
and the other Loan Documents, including its rights under this Section, or (B) in connection with
Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses
incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of
Credit.

          (b) Indemnification by the Borrowers. The Borrowers shall jointly and severally
indemnify each Agent (and any sub-agent thereof), each Lender and each L/C Issuer, and each Related
Party of any of the foregoing Persons (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities
and reasonably related expenses (including the reasonable fees, charges and disbursements of any
counsel for any Indemnitee) incurred by any Indemnitee or asserted against any Indemnitee by any
third party or by any Borrower or any other Loan Party arising out of, in connection with, or as a
result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement
or instrument contemplated hereby or thereby, the performance by the parties hereto of their
respective obligations hereunder or thereunder or the consummation of the transactions contemplated
hereby or thereby, or, in the case of any Agent (and any sub-agent thereof) and its Related Parties
only, the administration of this Agreement and the other Loan Documents, (ii) any Loan or Letter of
Credit or the use or proposed use of the proceeds therefrom (including any refusal by any L/C
Issuer to honor a demand for payment under a Letter of Credit if the documents presented in
connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii)
any actual or alleged presence or release of Hazardous Materials on or from any property owned or
operated by any Borrower or any of its Subsidiaries, or any Environmental Liability related in any
way to any Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory, whether brought by a third party or by any Borrower or any
other Loan Party or any such Borrower’s or such Loan Party’s directors, shareholders or creditors,
and regardless of whether any Indemnitee is a party

 

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thereto; provided that such indemnity shall not, as to any Indemnitee, be available to
the extent that such losses, claims, damages, liabilities or related expenses 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.

          (c) Reimbursement by Lenders. To the extent that any Borrower for any reason fails
to indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by
it to any Agent (or any sub-agent thereof), any L/C Issuer or any Related Party of any of the
foregoing, each Lender severally agrees to pay to such Agent (or any such sub-agent), such L/C
Issuer or such Related Party, as the case may be, such Lender’s Applicable Percentage (determined
as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such
unpaid amount, provided that the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted against the Agent (or
any such sub-agent) or any L/C Issuer in its capacity as such, or against any Related Party of any
of the foregoing acting for the Agent (or any such sub-agent) or any L/C Issuer in connection with
such capacity. The obligations of the Lenders under this subsection (c) are subject to the
provisions of Section 2.12(d).

          (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable law, no Borrower shall assert, and hereby waives, any claim against any Indemnitee, on
any theory of liability, for special, indirect, consequential or punitive damages (as opposed to
direct or actual damages) arising out of, in connection with, or as a result of, this Agreement,
any other Loan Document or any agreement or instrument contemplated hereby, the transactions
contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof.
No Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the
use by unintended recipients of any information or other materials distributed to such unintended
recipients by such Indemnitee through telecommunications, electronic or other information
transmission systems in connection with this Agreement or the other Loan Documents or the
transactions contemplated hereby or thereby other than for direct or actual damages resulting from
the gross negligence or willful misconduct of such Indemnitee as determined by a final and
nonappealable judgment of a court of competent jurisdiction.

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

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

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

          SECTION 10.06. Successors and Assigns. (a) Successors and Assigns Generally.
The provisions of this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns permitted hereby, except that neither the
Borrowers nor any other Loan Parties 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 10.06(b), (ii) by way of
participation in accordance with the provisions of Section 10.06(d), or (iii) by way of
pledge or assignment of a security interest subject to the restrictions of Section 10.06(f)
(and any other attempted assignment or transfer by any party hereto shall be null and void).
Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in subsection (d) of this Section and, to the extent expressly
contemplated hereby, the Related Parties of each of the Agents, each L/C Issuer and the Lenders)
any legal or equitable right, remedy or claim under or by reason of this Agreement.

          (b) Assignments by Lenders. Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment(s) and the Loans (including for purposes of this Section
10.06(b), participations in L/C Obligations and in Swing Line Loans) at the time owing to it);
provided that any such assignment shall be subject to the following conditions:

          (i) Minimum Amounts. (A)in the case of an assignment of the entire remaining amount
of the assigning Lender’s Commitment under any Facility and the Loans at the time owing to it under
such Facility or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved
Fund, no minimum amount need be assigned; and

     (B) in any case not described in subsection (b)(i)(A) of this Section, the
aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) or, if the Commitment is not then in effect,

 

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the principal outstanding balance of the Loans of the assigning Lender subject
to each such assignment, determined as of the date the Assignment and Assumption
with respect to such assignment is delivered to the Administrative Agent or, if
“Trade Date” is specified in the Assignment and Assumption, as of the Trade Date,
shall not be less than $1,000,000, unless each of the Administrative Agent and, so
long as no Event of Default has occurred and is continuing, the applicable Borrower
otherwise consents (each such consent not to be unreasonably withheld or delayed);
provided, however, that concurrent assignments to members of an
Assignee Group and concurrent assignments from members of an Assignee Group to a
single Eligible Assignee (or to an Eligible Assignee and members of its Assignee
Group) will be treated as a single assignment for purposes of determining whether
such minimum amount has been met;

          (ii) Proportionate Amounts. Each partial assignment shall be made as an assignment
of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement
with respect to the Loans or the Commitment assigned, except that this clause (ii) shall not (A)
apply to any Swing Line Lender’s rights and obligations in respect of the applicable Swing Line
Loans or (B) prohibit any Lender from assigning all or a portion of its rights and obligations
among separate Facilities on a non-pro rata basis.

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

     (A) the consent of the applicable Borrower (such consent not to be
unreasonably withheld or delayed) shall be required unless (1) an Event of Default
has occurred and is continuing at the time of such assignment (2) such assignment
is to a Lender, an Affiliate of a Lender or an Approved Fund or (3) during the
primary syndication of the Loans and Commitments;

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

     (C) the consent of the applicable L/C Issuer (such consent not to be
unreasonably withheld or delayed) shall be required for any assignment that
increases the obligation of the assignee to participate in exposure under one or
more Letters of Credit (whether or not then outstanding); and

     (D) the consent of the applicable Swing Line Lender (such consent not to be
unreasonably withheld or delayed) shall be required for any assignment in respect
of the Revolving Credit Facility.

 

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

          (v) No Assignment to Borrower. No such assignment shall be made to a Borrower or any
Borrower’s Affiliates or Subsidiaries.

          (vi) No Assignment to Natural Persons. No such assignment shall be made to a natural
person.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c)
of this Section, from and after the effective date specified in each Assignment and Assumption, the
assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be
entitled to the benefits of Sections 3.01, 3.04, 3.05 and 10.04
with respect to facts and circumstances occurring prior to the effective date of such assignment.
Upon request, the applicable Borrower (at its expense) shall execute and deliver a Note to the
assignee Lender. Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this subsection shall be treated for purposes of this Agreement
as a sale by such Lender of a participation in such rights and obligations in accordance with
Section 10.06(d). No assignee (including an assignee that is already a Lender hereunder at
the time of the assignment) shall be entitled to receive any greater amount pursuant to Section
3.01 than that to which the assignor would have been entitled to receive had no such assignment
occurred.

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

 

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          (d) Participations. Any Lender may at any time, without the consent of, or notice
to, any Borrower or the Administrative Agent, sell participations to any Person (other than a
natural person or any Borrower or any Borrower’s Affiliates or Subsidiaries) (each, a
“Participant”) in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans (including such Lender’s
participations in L/C Obligations and/or Swing Line Loans) owing to it); provided that (i)
such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of such obligations and
(iii) the Borrowers, the Administrative Agent, the Lenders and the L/C Issuer shall continue to
deal solely and directly with such Lender in connection with such Lender’s rights and obligations
under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to enforce this Agreement
and to approve any amendment, modification or waiver of any provision of this Agreement;
provided that such agreement or instrument may provide that such Lender will not, without
the consent of the Participant, agree to any amendment, waiver or other modification described in
the first proviso to Section 10.01 that affects such Participant. Subject to
subsection (e) of this Section, each Borrower agrees that each Participant shall be
entitled to the benefits of Sections 3.01, 3.04 and 3.05 to the same extent
as if it were a Lender and had acquired its interest by assignment pursuant to Section
10.06(b). To the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 10.08 as though it were a Lender, provided such Participant
agrees to be subject to Section 2.13 as though it were a Lender.

          (e) Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Section 3.01 or 3.04 than the applicable Lender
would have been entitled to receive with respect to the participation sold to such Participant. A
Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the
benefits of Section 3.01 unless the applicable Borrower is notified of the participation
sold to such Participant and such Participant agrees, for the benefit of such Borrower, to comply
with Section 3.01(e) as though it were a Lender.

          (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement (including under its Note, if any) to
secure obligations of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender
from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as
a party hereto.

          (g) Resignation as L/C Issuer or Swing Line Lender after Assignment. Notwithstanding
anything to the contrary contained herein, if at any time Credit Suisse assigns all of its
Revolving Credit Commitment and Revolving Credit Loans pursuant to Section 10.06(b), Credit
Suisse may, (i) upon 30 days’ notice to the Borrowers and the Lenders, resign as U.S. L/C Issuer
and Canadian L/C Issuer and/or (ii) upon 30 days’ notice to the Borrowers, resign as U.S. Swing
Line Lender and Canadian Swing Line Lender. In the event of any such resignation as L/C Issuer or
Swing Line Lender, the Borrower Agent shall be entitled to appoint from among the Lenders a
successor L/C

 

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Issuer or Swing Line Lender hereunder; provided, however, that no failure by
the Borrower Agent to appoint any such successor shall affect the resignation of Credit Suisse as
L/C Issuer or Swing Line Lender, as the case may be. If Credit Suisse resigns as L/C Issuer, it
shall retain all the rights, powers, privileges and duties of an L/C Issuer hereunder with respect
to all Letters of Credit outstanding as of the effective date of its resignation as L/C Issuer and
all L/C Obligations with respect thereto (including the right to require the Lenders to make Base
Rate Loans, Canadian Base Rate Loans or Canadian Prime Rate Loans, as applicable, or fund risk
participations in Unreimbursed Amounts pursuant to Section 2.03(c)). If Credit Suisse
resigns as Swing Line Lender, it shall retain all the rights of a Swing Line Lender provided for
hereunder with respect to Swing Line Loans made by it and outstanding as of the effective date of
such resignation, including the right to require the Lenders to make Base Rate Loans, Canadian Base
Rate Loans or Canadian Prime Rate Loans, as applicable, or fund risk participations in outstanding
Swing Line Loans pursuant to Section 2.04(c). Upon the appointment of a successor L/C
Issuer and/or Swing Line Lender, (a) such successor shall succeed to and become vested with all of
the rights, powers, privileges and duties of the retiring L/C Issuer or Swing Line Lender, as the
case may be, and (b) the successor L/C Issuer shall issue letters of credit in substitution for the
Letters of Credit, if any, outstanding at the time of such succession or make other arrangements
satisfactory to Credit Suisse to effectively assume the obligations of Credit Suisse with respect
to such Letters of Credit.

          SECTION 10.07. Treatment of Certain Information; Confidentiality. Each of the
Administrative Agent, the Collateral Agent, the Lenders and the L/C Issuers agrees to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed (a)
to its Affiliates and to its and its Affiliates’ respective partners, directors, officers,
employees, agents, advisors and representatives (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such Information and instructed
to keep such Information confidential), (b) to the extent requested by any regulatory authority
purporting to have jurisdiction over it (including any self-regulatory authority, such as the
National Association of Insurance Commissioners), (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies hereunder or under any other Loan Document or any
action or proceeding relating to this Agreement or any other Loan Document or the enforcement of
rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the
same as those of this Section, to (i) any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any
actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating
to any Borrower and its obligations, (g) with the consent of the applicable Borrower or (h) to the
extent such Information (i) becomes publicly available other than as a result of a breach of this
Section or (ii) becomes available to the Administrative Agent, the Collateral Agent, any Lender,
any L/C Issuer or any of their respective Affiliates on a nonconfidential basis from a source other
than a Borrower. In addition, the Administrative Agent, each Joint Bookrunner and each Lender may
disclose the existence of this Agreement and the information about this Agreement to market data
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181

the lending industry, and service providers in connection with the administration and
management of this Agreement and the other Loan Documents.

          For purposes of this Section, “Information” means all information received from any
Loan Party or any Subsidiary thereof relating to any Loan Party or any Subsidiary thereof or their
respective businesses, other than any such information that is available to the Administrative
Agent, the Collateral Agent, any Lender or any L/C Issuer on a nonconfidential basis prior to
disclosure by any Loan Party or any Subsidiary thereof, provided that, in the case of
information received from a Loan Party or any such Subsidiary after the date hereof, such
information is clearly identified at the time of delivery as confidential. Any Person required to
maintain the confidentiality of Information as provided in this Section shall be considered to have
complied with its obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord to its own
confidential information.

          Each of the Administrative Agent, the Collateral Agent, the Lenders and the L/C Issuers
acknowledges that (a) the Information may include material non-public information concerning the
Borrowers or a Subsidiary, as the case may be, (b) it has developed compliance procedures regarding
the use of material non-public information and (c) it will handle such material non-public
information in accordance with applicable Law, including United States Federal and state securities
Laws.

          SECTION 10.08. Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender, each L/C Issuer and each of their respective Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted by applicable law, to
set off and apply any and all deposits (general or special, time or demand, provisional or final,
in whatever currency) at any time held and other obligations (in whatever currency) at any time
owing by such Lender, such L/C Issuer or any such Affiliate to or for the credit or the account of
any Borrower or any other Loan Party against any and all of the obligations of such Borrower or
such Loan Party now or hereafter existing under this Agreement or any other Loan Document to such
Lender or such L/C Issuer, irrespective of whether or not such Lender or such L/C Issuer shall have
made any demand under this Agreement or any other Loan Document and although such obligations of
such Borrower or such Loan Party may be contingent or unmatured or are owed to a branch or office
of such Lender or such L/C Issuer different from the branch or office holding such deposit or
obligated on such indebtedness. The rights of each Lender, each L/C Issuer and their respective
Affiliates under this Section are in addition to other rights and remedies (including other rights
of setoff) that such Lender, such L/C Issuer or their respective Affiliates may have. Each Lender
and each L/C Issuer agrees to notify the applicable Borrower and the Administrative Agent promptly
after any such setoff and application, provided that the failure to give such notice shall not
affect the validity of such setoff and application. No Lender shall set off against any Dominion
Account without the prior consent of Collateral Agent.

          SECTION 10.09. Interest Rate Limitation. Notwithstanding anything to the contrary
contained in any Loan Document, the interest paid or agreed to be paid under

 

182

the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by
applicable Law (the “Maximum Rate”). If the Administrative Agent or any Lender shall
receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied
to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the applicable
Borrowers. In determining whether the interest contracted for, charged, or received by the
Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted
by applicable Law, (a) characterize any payment that is not principal as an expense, fee, or
premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c)
amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest
throughout the contemplated term of the Obligations hereunder. Without limiting the generality of
the foregoing, if any provision of any of the Loan Documents would obligate Canadian Loan Parties
to make any payment of interest with respect to the Canadian Obligations in an amount or calculated
at a rate which would be prohibited by applicable Law or would result in the receipt of interest
with respect to the Canadian Obligations at a criminal rate (as such terms are construed under the
Criminal Code (Canada)), then notwithstanding such provision, such amount or rates shall be deemed
to have been adjusted with retroactive effect to the maximum amount or rate of interest, as the
case may be, as would not be so prohibited by law or so result in a receipt by the applicable
recipient of interest with respect to the Canadian Obligations at a criminal rate, such adjustment
to be effected, to the extent necessary, as follows: (i) first, by reducing the amount or rates of
interest required to be paid to the applicable recipient under the Loan Documents; and (ii)
thereafter, by reducing any fees, commissions, premiums and other amounts required to be paid to
the applicable recipient which would constitute interest with respect to the Canadian Obligations
for purposes of Section 347 of the Criminal Code (Canada). Notwithstanding the foregoing, and
after giving effect to all adjustments contemplated thereby, if the applicable recipient shall have
received an amount in excess of the maximum permitted by that section of the Criminal Code
(Canada), then Canadian Loan Parties shall be entitled, by notice in writing to the Administrative
Agent, to obtain reimbursement from the applicable recipient in an amount equal to such excess, and
pending such reimbursement, such amount shall be deemed to be an amount payable by the applicable
recipient to the applicable Canadian Loan Party. Any amount or rate of interest with respect to
the Canadian Obligations referred to in this Section 10.09 shall be determined in
accordance with generally accepted actuarial practices and principles as an effective annual rate
of interest over the term that any Canadian Revolving Credit Loans to the Canadian Borrower remain
outstanding on the assumption that any charges, fees or expenses that fall within the meaning of
“interest” (as defined in the Criminal Code (Canada)) shall, if they relate to a specific period of
time, be prorated over that period of time and otherwise be prorated over the period from the
Closing Date to the date of payment in full of the Canadian Obligations, and, in the event of a
dispute, a certificate of a Fellow of the Canadian Institute of Actuaries appointed by the
Administrative Agent shall be conclusive, absent manifest error, for the purposes of such
determination.

          SECTION 10.10. Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto in different counterparts), each of which
shall constitute an original, but all of which when taken

 

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together shall constitute a single contract. This Agreement, the other Loan Documents and the
Fee Letter, constitute the entire contract among the parties relating to the subject matter hereof
and supersede any and all previous agreements and understandings, oral or written, relating to the
subject matter hereof. Except as provided in Section 4.01, this Agreement shall become
effective when it shall have been executed by the Administrative Agent and when the Administrative
Agent shall have received counterparts hereof that, when taken together, bear the signatures of
each of the other parties hereto. Delivery of an executed counterpart of a signature page of this
Agreement by telecopy or in “pdf” or similar format by electronic mail shall be effective as
delivery of a manually executed counterpart of this Agreement.

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

          SECTION 10.12. Severability. If any provision of this Agreement or the other Loan
Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and
enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not
be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to
replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect
of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.
The invalidity of a provision in a particular jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

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

     (a) such Borrower shall have paid to the Administrative Agent the assignment fee
specified in Section 10.06(b);

 

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     (b) such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and L/C Advances, accrued interest thereon, accrued fees and all
other amounts payable to it hereunder and under the other Loan Documents (including any
amounts under Section 3.05) from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or such Borrower (in the case of all other
amounts);

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

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

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

          SECTION 10.14. Governing Law; Jurisdiction; Etc. (a) GOVERNING LAW. THIS AGREEMENT
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

          (b) Submission to Jurisdiction. EACH BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY
AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT
OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS 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 WILL BE HEARD
AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
IN SUCH FEDERAL COURT; PROVIDED THAT NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN
DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR ANY L/C ISSUER MAY
OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT AGAINST ANY BORROWER OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY
JURISDICTION. 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.

 

185

          (c) Waiver of Venue. EACH BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT
MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF
THIS SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION
OR PROCEEDING IN ANY SUCH COURT.

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

          SECTION 10.15. Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT
OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          SECTION 10.16. No Advisory or Fiduciary Responsibility. In connection with all
aspects of each transaction contemplated hereby (including in connection with any amendment, waiver
or other modification hereof or of any other Loan Document), each Borrower and each other Loan
Party acknowledges and agrees, and acknowledges its Affiliates’ understanding, that: (i) (A) the
arranging and other services regarding this Agreement provided by the Administrative Agent and the
Bookrunner are arm’s-length commercial transactions between the Borrowers, the other Loan Parties
and their respective Affiliates, on the one hand, and the Administrative Agent and the Bookrunner
on the other hand, (B) each Borrower and each other Loan Party has consulted its own legal,
accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) each
Borrower and each other Loan Party is capable of evaluating, and understands and accepts, the
terms, risks and conditions of the transactions contemplated hereby and by the other Loan
Documents; (ii) (A) each Agent and each Arranger is and has been acting solely as a principal and,
except as expressly agreed in writing by the relevant parties, has not been, is not, and will not
be acting as an advisor, agent or fiduciary for

 

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any Borrower, any other Loan Party or any of their respective Affiliates, or any other Person
and (B) neither Agent, nor any Arranger, has any obligation to any Borrower, any other Loan Party
or any of their respective Affiliates with respect to the transactions contemplated hereby except
those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Agents
and the Bookrunner and their respective Affiliates may be engaged in a broad range of transactions
that involve interests that differ from those of the Borrowers, the other Loan Parties and their
respective Affiliates, and neither the Agents nor any Arranger has any obligation to disclose any
of such interests to any Borrower, any other Loan Party or any of their respective Affiliates. To
the fullest extent permitted by law, each Borrower and each other Loan Party hereby waives and
releases any claims that it may have against the Agent and the Bookrunner with respect to any
breach or alleged breach of agency or fiduciary duty in connection with any aspect of any
transaction contemplated hereby.

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

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

          SECTION 10.19. Judgment Currency. If for the purpose of obtaining judgment in any
court it is necessary to convert an amount due hereunder in the currency in which it is due (the
“Original Currency”) into another currency (the “Second Currency”), the rate of
exchange applied shall be that at which, in accordance with normal banking procedures, the
Administrative Agent could purchase in the New York foreign exchange market, the Original Currency
with the Second Currency on the date two (2) Business Days preceding that on which judgment is
given. Each Loan Party agrees that its obligation in respect of any Original Currency due from it
hereunder shall, notwithstanding any judgment or payment in such other currency, be discharged only
to

 

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the extent that, on the Business Day following the date the Administrative Agent receives
payment of any sum so adjudged to be due hereunder in the Second Currency, the Administrative Agent
may, in accordance with normal banking procedures, purchase, in the New York foreign exchange
market, the Original Currency with the amount of the Second Currency so paid; and if the amount of
the Original Currency so purchased or could have been so purchased is less than the amount
originally due in the Original Currency, each Loan Party agrees as a separate obligation and
notwithstanding any such payment or judgment to indemnify the Administrative Agent and the
Appropriate Lenders against such loss. The term “rate of exchange” in this Section 10.19
means the spot rate at which the Administrative Agent, in accordance with normal practices, is able
on the relevant date to purchase the Original Currency with the Second Currency, and includes any
premium and costs of exchange payable in connection with such purchase.

          SECTION 10.20. Language. The parties have requested that this Agreement and the other
documents contemplated hereby or relating hereto be drawn up in the English language. Les parties
ont requis que cette convention ainsi que tous les documents qui y sont envisagés ou qui s’y
rapportent soient rédigés en langue anglaise.

          SECTION 10.21. Intercreditor Agreement. Reference is made to the Lien Subordination
and Intercreditor Agreement dated as of June 9, 2008, among General Electric Capital Corporation,
as collateral agent for the Revolving Facility Secured Parties referred to therein; U.S. Bank
National Association, as Trustee and as Noteholder Collateral Agent; Ply Gem Holdings, Inc.; Ply
Gem Industries, Inc.; and the other subsidiaries of Ply Gem Industries, Inc. named therein (the
“Intercreditor Agreement”). Each Lender hereunder (a) consents to the subordination of Liens
provided for in the Intercreditor Agreement, (b) agrees that it will be bound by and will take no
actions contrary to the provisions of the Intercreditor Agreement and (c) authorizes and instructs
the Collateral Agent to enter into the Intercreditor Agreement as Collateral Agent and on behalf of
such Lender. The foregoing provisions are intended as an inducement to the Noteholders to acquire
the Notes of the Specified U.S. Borrower and such Noteholders are intended third party
beneficiaries of such provisions and the provisions of the Intercreditor Agreement.

[Remainder of Page Intentionally Blank]

 

Schedule 1.01 — Existing Letters of Credit

	 	 	 	 	 	 	 	 	 	 	 
	Issuer	 	Beneficiary	 	Letter of Credit No.	 	Amount	 	Exp Date
	UBS, AG

	 	Tokio Marine and
Nichido Fire Insurance
Co.
	 	WALIA00263
	 	 	60,000.00	 	 	01-27-09 No
extension
	UBS, AG

	 	Union Fire Insurance Co
of Pittsburgh various
insurance cos
	 	DP36ZAYRL
	 	 	1,600,000.00	 	 	01-27-09 No
extension
	UBS, AG

	 	Ohio Environmental
Protection Agency
	 	WALI-A01315-1POZ
	 	 	900,000.00	 	 	2-12-08 No extension
	UBS, AG

	 	Saint-Gobain Corporation
	 	WALI-A01820-1BRL
	 	 	886,000.00	 	 	9-26-08 No extension
	UBS, AG

	 	Weston CA II LLC
	 	WALI-A02236-1POZ
	 	 	500,000.00	 	 	2-01-09

 

 

Schedule 1.01(a) — Sale-Leaseback Properties

	1.	 	The Deed of Lease Agreement, by and among GP (MULTI) L.P., a Delaware limited
partnership as Landlord, and Ply Gem Industries, Inc., MWM Holding, Inc., Great Lakes
Window, Inc., MWM Holding, Inc., MW Manufacturers Inc., Napco Window Systems, Inc., Kroy
Building Products, Inc., Napco, Inc., Thermal-Gard, Inc., as Tenant, dated as of August
27, 2004, covering the properties located at:

	 	a)	 	30499 Tracy Road, Toledo, OH
	 
	 	b)	 	2719 N. Division Avenue, York, NE
	 
	 	c)	 	15159 Andrew Jackson Highway, Fair Bluff, NC
	 
	 	d)	 	125 McFann Road, Valencia, PA
	 
	 	e)	 	303 W. Major, Kearney, MO
	 
	 	f)	 	91 Variform Drive, Martinsburg, WV
	 
	 	g)	 	Rocky Mount Window Plant No. 1, 433 North Main Street, Rocky Mount, VA
	 
	 	h)	 	Rocky Mount Training Center, 433 North Main Street, Rocky Mount, VA

	2.	 	The Lease Agreement by and between PG-NOM (ALBERTA) INC., an Alberta
corporation, as nominee for PG-TRUST (DE), a trust formed under the laws of the State of
Delaware, as Landlord and CWD Windows and Doors, Inc. as Tenant, dated as of August 27,
2004, covering the properties located at:

	 	a)	 	2008 — 48th St. S.E., Calgary, AB
	 
	 	b)	 	2110 — 48th St. S.E., Calgary, AB
	 
	 	c)	 	2264 — 48th St. S.E., Calgary, AB
	 
	 	d)	 	2007 — 48th St. S.E., Calgary, AB
	 
	 	e)	 	2015 — 48th St. S.E., Calgary, AB
	 
	 	f)	 	2035 — 48th St. S.E., Calgary, AB
	 
	 	g)	 	2101 — 50th St. S.E., Calgary, AB
	 
	 	h)	 	2109/17 — 50th St. S.E., Calgary, AB
	 
	 	i)	 	2121 — 50th St. S.E., Calgary, AB
	 
	 	j)	 	2125 — 50th St. S.E., Calgary, AB
	 
	 	k)	 	2139 — 50th St. S.E., Calgary, AB

 

 

 

Schedule 2.01

COMMITMENT AND APPLICABLE PERCENTAGES

U.S. Revolving Credit Facility

	 	 	 	 	 	 	 	 	 
	 	 	U.S. Revolving Credit	 	U.S. Revolving Credit
	Lender	 	Commitment	 	Applicable Percentage
	Total
	 	$	160,000,000.00	 	 	 	100.000000000	%

Canadian Revolving Credit Facility

	 	 	 	 	 	 	 	 	 
	 	 	Canadian Revolving Credit	 	Canadian Revolving Credit
	Lender	 	Commitment	 	Applicable Percentage
	Total
	 	$	15,000,000.00	 	 	 	100.000000000	%

 

 

 

			
	 	 	Schedule 4.01(a)(vii) — Mortgaged Property

	 	 	 	 	 	 	 
	Mortgagor	 	Address	 	County	 	State
	MW Manufacturers
Inc.

	 	n/a
	 	Lee
	 	Mississippi
	 
	 	 	 	 	 	 
	Ply Gem Industries,
Inc., MWM Holding,
Inc., Great Lakes
Window, Inc., MW
Manufactures Inc.,
Kroy Building
Products, Inc.,
Napco, Inc. and
Variform, Inc.

	 	n/a
	 	Clay
	 	Missouri
	 
	 	 	 	 	 	 
	Ply Gem Industries,
Inc., MWM Holding,
Inc., Great Lakes
Window, Inc., MW
Manufactures Inc.,
Kroy Building
Products, Inc.,
Napco, Inc. and
Variform, Inc.

	 	n/a
	 	Columbus
	 	North Carolina
	 
	 	 	 	 	 	 
	Variform, Inc.

	 	n/a
	 	Marion
	 	Tennessee
	 
	 	 	 	 	 	 
	Ply Gem Industries,
Inc., MWM Holding,

    Inc., Great Lakes
Window, Inc., MW
Manufactures Inc.,
Kroy Building
Products, Inc. and
Variform, Inc.

	 	n/a
	 	Franklin
	 	Virginia
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	2008-48 Street SE,

Calgary, Alberta,

Canada
	 	N/A	 	 
	 
	 	 	 	 	 	 
	Alcoa Home
Exteriors, Inc.

	 	185 Johnson Drive
	 	Augusta
	 	Stuarts Draft, Virginia
	 
	 	 	 	 	 	 
	Alcoa Home
Exteriors, Inc.

	 	2405 Campbell Road
	 	Shelby
	 	Sidney, Ohio
	 
	 	 	 	 	 	 
	Alcoa Home
Exteriors, Inc.

	 	100 Cellwood Road
	 	Cherokee
	 	Gaffney, South Carolina

 

 

Schedule 5.05 — Supplement to Interim Financial Statements

None.

 

 

Schedule 5.06 — Litigation

None.

 

 

Schedule 5.08(b) — Owned Real Property

	 	 	 
	Loan Party	 	Address
	Variform, Inc.

	 	1274 Industrial Blvd.
	 

	 	Jasper, TN 37347-5200
	 
	 	 
	CWD Windows and Doors, Inc.

	 	331 – 105 St.
	 

	 	Saskatoon, SK
	 
	 	 
	MW Manufacturers, Inc.

	 	Fayetteville Cutting Operation
	 

	 	400-408 Pine Street
	 

	 	Fayetteville, NC 28302
	 
	 	 
	 

	 	Storage shed and unimproved land located on
noncontiguous parcels, portions of Tracts #1
and #2 as recorded in Deed Book 893, page 547,
Beaverdam Township (Hoffman), Richmond County,
NC 28347
	 
	 	 
	Alenco Extrusion GA, L.L.C.

	 	407 Dividend Drive
	 

	 	Peachtree City, GA 30269-1905
	 
	 	 
	Alcoa Home Exteriors, Inc.

	 	1601 Commerce Blvd.
	 

	 	Denison, TX 75020-19052
	 

	 	185 Johnson Drive
	 

	 	Stuarts Draft, VA 24477-3100
	 

	 	100 Cellwood Place
	 

	 	Gaffney, SC 29340-4723
	 

	 	2405 Campbell Road
	 

	 	Sidney, OH 45365-9529

 

			
	2	 	As of the Closing Date, this property is
subject to sale agreement, pursuant to which this property will be sold on or
prior to June 30, 2008.

 

 

Schedule 5.08(c)(i) Leased Real Property (lessee)

	 	 	 
	Loan Party	 	Address
	Ply Gem Industries, Inc.

	 	90 Inip Drive, Inwood, NY
	 

	 	95 Inip Drive, Inwood, NY
	 

	 	5020 Weston Parkway, Suite 400
	 

	 	Cary, NC 27513
	 
	 	 
	Great Lakes Window, Inc.

	 	30499 Tracy Road, Toledo, OH
	 

	 	7171 Reuthinger Road, Toledo, OH (option)
	 

	 	228 Huron Toledo, OH
	 
	 	 
	Kroy Building Products, Inc.

	 	2719 N. Division Avenue, York, NE
	 

	 	15159 Andrew Jackson Highway

Fair Bluff, NC
	 

	 	1857 Evans Road, Cary, NC
	 
	 	 
	Napco, Inc.

	 	125 McFann Road, Valencia, PA
	 
	 	 
	Variform, Inc.

	 	303 W. Major, Kearney, MO
	 

	 	91 Variform Drive, Martinsburg, WV
	 

	 	1600 N. State Rte 291, Carefree Industrial Park,
Independence, MO
	 

	 	5550 Winchester Ave., WV
	 
	 	 
	CWD Windows and Doors, Inc.

	 	2008 – 48th St. S.E., Calgary, AB
	 

	 	2110 – 48th St. S.E., Calgary, AB
	 

	 	2264 – 48th St. S.E., Calgary, AB
	 

	 	2007 – 48th St. S.E., Calgary, AB
	 

	 	2015 – 48th St. S.E., Calgary, AB
	 

	 	2035 – 48th St. S.E., Calgary, AB
	 

	 	2101 – 50th St. S.E., Calgary, AB
	 

	 	2109/17 – 50th St. S.E., Calgary, AB
	 

	 	2121 – 50th St. S.E., Calgary, AB
	 

	 	2125 – 50th St. S.E., Calgary, AB
	 

	 	2139 – 50th St. S.E., Calgary, AB
	 

	 	18703 111th Ave., Edmonton, AB
	 

	 	Bay 108, 6901 –98th St., Clairmont, AB
	 

	 	1889 – 6th Ave., Medicine Hat, AB
	 

	 	8,4622 – 61st St., Red Deer, AB
	 

	 	197 Leonard St. N., Regina, SK
	 
	 	 
	MW Manufacturers, Inc.

	 	Rocky Mount Window Plant No. 1, 433 North
Main Street, Rocky Mount, VA 24151
	 

	 	Rocky Mount Training Center, 433 North Main

Street, Rocky Mount, VA 24151
	 

	 	Rocky Mount Window Plant No. 3 at 520
Weaver Street, Rocky Mount, VA 24151
	 

	 	Property located at Green and Triangle Streets in
Lee, Mississippi
	 

	 	2.02 acres of real property located in Fayetteville,
North Carolina
	 

	 	0.05 acres of real property located in
Rocky Mount, Virginia
	 

	 	0.14 acres of real property located in
Rocky Mount, Virginia
	 

	 	Private road in Rocky Mount, Virginia
	 

	 	0.2 acres of real property in Rocky Mount,
Virginia

 

 

	 	 	 
	Loan Party	 	Address
	 

	 	Real property located at the corner of N. Main
Street and Southern Railroad in Rocky Mount,
Virginia
	 

	 	Real property located at 350 State Street in
Rocky Mount, Virginia
	 

	 	Real property located at 315 Pell Avenue in
Rocky Mount, Virginia
	 

	 	Real property located at 129 Pell Avenue in
Rocky Mount, Virginia
	 

	 	999A Grand Avenue, Hammonton, New Jersey.
(Lease of the Patriot facility)
	 
	 	 
	Alenco Window GA, L.L.C.

	 	319 Dividend Drive
	 

	 	Peachtree City, Georgia 30269
	 
	 	 
	New Alenco Window, Ltd.

	 	615 Carson Street, Bryan, Texas 77801
	 
	 	 
	New Alenco Extrusion, Ltd.

	 	Northpoint Business Park, 2870 North Harvey

Mitchell Parkway, Bryan, Texas
	 
	 	 
	New Glazing Industries, Ltd.

	 	Inwood Business Center at 1110 Inwood Road,
Suite 101, Dallas, Texas 75247
	 

	 	12901 Nicholson Road, Suite 330
Farmers Branch, Texas 75234
	 
	 	 
	AWC Arizona, Inc.

	 	3830 E. Wier, Phoenix, Arizona
	 
	 	 
	Alcoa Home Exteriors, Inc.

	 	2011 McGregor, Denison, Texas
	 

	 	1590 Omega Drive, Pittsburgh, Pennsylvania
	 

	 	4500 Omega Drive, Pittsburgh, Pennsylvania
	 

	 	805 Victory Trail Road

Gaffney, South Carolina
	 

	 	2605 S.H. 91 North, Denison, Texas
	 

	 	3345 and 3365 Juanita Dr., Denison, Texas
	 

	 	For certain premises commonly known as 1132-
1134 Stinson Blvd., Minnesota.
	 

	 	1864 Old Georgia Highway

Gaffney, South Carolina
	 
	 	 
	Ply Gem Pacific Windows Corporation

	 	3010 Ramco Road
	 

	 	West Sacramento, California 95691
	 

	 	5001 D Street NW, Auburn, Washington 98001
	 

	 	235 Radio Road, Corona, California 92879
	 

	 	Building G, Tualatin Corporate
Center, Phase
III, 20131 SW 95th Place, Tualatin, Oregon
97062
	 

	 	401 South Enterprise Boulevard

Lebanon, Indiana 46052

 

 

Schedule 5.09 — Environmental Matters

None.

 

 

Schedule 5.13 — Subsidiaries and Other Equity Investments; Loan Parties

 

 

Schedule 6.12 — Guarantors

Alcoa Home Exteriors, Inc.

Alenco Building Products Management, L.L.C.

Alenco Extrusion GA, L.L.C.

Alenco Extrusion Management, L.L.C.

Alenco Holding Corporation

Alenco Interests, L.L.C.

Alenco Trans, Inc.

Alenco Window GA, L.L.C.

Aluminum Scrap Recycle, L.L.C.

AWC Arizona, Inc.

AWC Holding Company

Glazing Industries Management, L.L.C.

Great Lakes Window, Inc.

Kroy Building Products, Inc.

MW Manufacturers Inc.

MWM Holding, Inc.

Napco, Inc.

New Alenco Extrusion, Ltd.

New Alenco Window, Ltd.

New Glazing Industries, Ltd.

Ply Gem Holdings, Inc.

Ply Gem Industries, Inc.

Ply Gem Pacific Windows Corporation

Variform, Inc.

 

 

Schedule 6.20 — Post-Closing Matters

1. Within one Business Day after the Closing Date, the Borrowers shall deliver to the
Administrative Agent a certificate of compliance with respect to the Canadian Borrower.

2. Within one Business Day after the Closing Date, Bennett Jones shall deliver, on behalf of the
Borrowers, to the Administrative Agent confirmation that the requisite registration under the PPSA
with respect to the Canadian Borrower has been completed.

3. Within five Business Days after the Closing Date or such later time as the Administrative Agent
may permit in writing, the Borrowers shall deliver to the Trustee for the benefit of the Secured
Parties pursuant to the Intercreditor Agreement a certificate representing 100% of the issued and
outstanding common stock of Ply Gem Pacific Windows Corporation issued to Ply Gem Industries, Inc.,
together with an undated stock power executed in blank by a duly authorized officer of Ply Gem
Industries, Inc.

4. Within five Business Days after the Closing Date or such later time as the Administrative Agent
may permit in writing, the Borrowers shall deliver to the Trustee for the benefit of the Secured
Parties pursuant to the Intercreditor Agreement an Intercompany Note evidencing any Indebtedness of
a Loan Party owning to another Loan Party outstanding upon the Closing Date.

5. Within five Business Days after the Closing Date or such later time as the Administrative Agent
may permit in writing, the Borrowers shall deliver to the Administrative Agent, a Confirmation of
Security Interest in Intellectual Property duly executed by Alcoa Home Exteriors, Inc., Ply Gem
Pacific Windows Corporation, Kroy Building Products, Inc. and Variform, Inc.

6. Within ten Business Days of the Closing Date or such later time as the Administrative Agent may
permit in writing, the Borrowers shall deliver to the Administrative Agent notice of termination of
blocked account agreements duly executed by Ply Gem Industries, Inc. and UBS AG, Stamford Branch.

7. Within seven Business Days after the Closing Date or such later time as the Administrative Agent
may permit in writing, the Borrowers shall effect the proper release of the Saskatchewan PPSA
registration against the Canadian Borrower to the extent it is not a permitted Lien under Section
7.01 of the Credit Agreement.

8. The Borrowers shall use commercially reasonable efforts to cause Broan-Nutone Canada to
discharge the trade name “CWD Windows and Doors” within thirty days after the Closing Date.

9. Within thirty days after the Closing Date, the Canadian Borrower will deliver to the Agents (i)
an agreement pursuant to which it submits to the non-exclusive jurisdiction of the courts of the
State of New York sitting in New York County and of the United States Court of the Southern
District of New York, and any appellate court from any thereof, in any action or proceeding arising
out of relating to any Loan Document, or for recognition

 

 

or enforcement of any judgment and (ii) provides a supplemental opinion in relation thereto from
Bennett Jones LLP, each in form and substance reasonably satisfactory to the Agents.

 

 

Schedule 7.01 — Existing Liens

None.

 

 

Schedule 7.02 — Existing Investments

None.

 

 

Schedule 7.03(e) — Existing Indebtedness

None.

 

 

Schedule 7.05 — Dispositions

1. The property located at 1601 Commerce Blvd., Denison, Texas

 

 

Schedule 7.08 — Transactions with Affiliates

	1.	 	General Advisory Agreement, between Holdings and Caxton-Iseman Capital, LLC, pursuant to
which Caxton-Iseman acquisition and financial advisory services in exchange for certain annual
and transaction fees.
	 
	2.	 	Debt Financing Advisory Agreement, between Holdings and Caxton-Iseman Capital, LLC, pursuant
to which Caxton-Iseman was paid a debt financing arrangement and advisory fee, equal to
$11.400,000 in connection with acquisition of Ply Gem Industries, Inc., in the first quarter
of 2004.
	 
	3.	 	During 2006, Holdings received an equity investment of approximately $500,000 million from
JPG Investments, LLC, an affiliate of The GeMROI Company, an outside sales agency that
represents, among other products and companies, MW windows for which Holdings pays GeMROI a
sales commission for their services. During 2007 and 2006, Holdings paid GeMROI approximately
$1,800,000 and $2,100,000, respectively, in sales commission for their services.

 

 

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

	 	 	 

	Borrower Agent or any Borrower:

	 	Ply Gem Industries, Inc.
	 

	 	5020 Western Parkway
	 

	 	Suite 400
	 

	 	Cary, NC 27513,
	 

	 	Attention of Chief Financial Officer &
	 

	 	General Counsel
	 

	 	Tel: (919) 677-4020
	 
	 	 
	Administrative Agent, U.S. Swingline
Lender or U.S. L/C Issuer

	 	Credit Suisse, as Administrative Agent

Eleven Madison Avenue
	 

	 	New York, NY 10010
	 

	 	ATTN: Agency Group
	 

	 	Telecopy: (212) 325-8304
	 
	 	 
	Canadian Swingline Lender or
Canadian L/C Issuer

	 	1 First Canadian Place, Suite 3000
P.O. Box 301
	 

	 	Toronto, Ontario, Canada
	 

	 	M5X 1C9
	 

	 	Tel: (416) 352-4655
	 

	 	Telecopy: (416) 352-4688
	 

	 	Attention of Nicholas Lam, Assistant
	 

	 	Vice President, Loan Operations
	 
	 	 
	Collateral Agent

	 	General Electric Capital Corporation
	 

	 	500 W. Monroe St. 16th Floor
	 

	 	Chicago, IL 60661
	 

	 	Attn: Account Manager Ply Gem
	 

	 	Industries

 

 

EXHIBIT A

FORM OF

COMMITTED LOAN NOTICE

Credit Suisse,

      as Administrative Agent for the Lenders referred to below

Eleven Madison Avenue

New York, NY 10010

Attention: Agency Group

[•], 200[•]1

Ladies and Gentlemen:

          Reference is made to that certain Credit Agreement (as amended, restated, extended,
supplemented or otherwise modified in writing from time to time, the “Credit Agreement”) dated as
of June 9, 2008 among Ply Gem Industries, Inc. a Delaware corporation (the “Specified U.S.
Borrower”), CWD Windows and Doors, Inc., (the “Canadian Borrower”), Ply Gem Holdings, Inc., a
Delaware corporation, the Subsidiaries of the Borrower from time to time party thereto, the Lenders
parties thereto, Credit Suisse, as Administrative Agent, U.S. Swing Line Lender and U.S. L/C
Issuer, General Electric Capital Corporation, as Collateral Agent, Credit Suisse, Toronto Branch,
as Canadian Swing Line Lender and Canadian L/C Issuer, and Credit Suisse Securities (USA) LLC, as
Sole Lead Arranger and Sole Bookrunner. Capitalized terms used herein and not otherwise defined
herein have the meanings specified in the Credit Agreement.

          The undersigned hereby gives you notice pursuant to Section 2.02 of the Credit Agreement
that it requests a Borrowing under the Credit Agreement, and in that connection sets forth below
the terms on which such Borrowing is requested to be made:

	 	o	 	A Borrowing
of                                         Revolving Credit Loans

(U.S. or Canadian)

	 	o	 	A conversion of                                         

 

			
	1	 	Must be notified in writing or by telephone
(with such telephonic notification to be confirmed promptly by delivery to the
Administrative Agent of a written Committed Loan Notice, appropriately
completed and signed by a Responsible Officer of such Borrower) (i) in the case
of any Borrowing of, conversion to or continuation of Eurodollar Rate Loans or
BA Rate Loans or of any conversion of Eurodollar Rate Loans or BA Rate Loans to
Base Rate Loans, Canadian Base Rate Loans or Canadian Prime Rate Loans, as the
case may be, not later than 12:00 p.m. three (3) Business Days before the date
of the proposed Borrowing or (ii) in the case of any Borrowing of Base Rate
Loans, Canadian Base Rate Loans or Canadian Prime Rate Loans, not later than
12:00 p.m one (1) Business Day before the date of the proposed Borrowing;
provided, however, that if the applicable Borrower wishes to request
Eurodollar Rate Loans or BA Rate Loans having an Interest Period other than 1,
2, 3 or 6 months in duration as provided in the definition of “Interest
Period,” the applicable notice must be received by the Administrative Agent not
later than 11:00 a.m. four (4) Business Days prior to the requested date of
such Borrowing, conversion or continuation, whereupon the Administrative Agent
shall give prompt notice to the Appropriate Lenders of such request and
determine whether the requested Interest Period is acceptable to all of them.

 

 

EXHIBIT A

(Type of Loans)

	 	o	 	A continuation of
                                         Rate Loans

(Eurodollar or BA)

1. On                                                             (which shall be a Business Day) (the “Date of Borrowing
”).

2. In the principal amount of [$/Cdn.$]                                                             .

3. Comprised of                                                             .

[Type of Loan Requested]

4. [For Eurodollar Rate Loans and BA Rate Loans] With an Interest Period of                      months.

5. Account Number and Location                                               

               The [U.S.][Canadian] Revolving Credit Borrowing requested herein complies with the proviso in
the first sentence of Section 2.01[(a)][(b)] of the Credit Agreement.

[Insert the following paragraph for new Borrowings only (not conversions or continuations)]

               The [Specified U.S.][Canadian] Borrower hereby represents and warrants that the
conditions specified in Sections 4.02(a), (b) and (d) of the Credit Agreement shall be satisfied on
and as of the Date of Borrowing.

	 	 	 	 	 
	 	[Ply Gem Industries, Inc.] [CWD
Windows and Doors, Inc.]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

2

 

EXHIBIT B

FORM OF

SWING LINE LOAN NOTICE

Credit Suisse,

      as Administrative Agent for the Lenders referred to below

Eleven Madison Avenue

New York, NY 10010

Attention: Agency Group

[•], 200[•]1

Ladies and Gentlemen:

          Reference is made to that certain Credit Agreement (as amended, restated, extended,
supplemented or otherwise modified in writing from time to time, the “Credit Agreement”) dated as
of June 9, 2008 among Ply Gem Industries, Inc. a Delaware corporation (the “Specified U.S.
Borrower”), CWD Windows and Doors, Inc., (the “Canadian Borrower”), Ply Gem Holdings, Inc., a
Delaware corporation, the Subsidiaries of the Borrower from time to time party thereto, the Lenders
parties thereto, Credit Suisse, as Administrative Agent, U.S. Swing Line Lender and U.S. L/C
Issuer, General Electric Capital Corporation, as Collateral Agent, Credit Suisse, Toronto Branch,
as Canadian Swing Line Lender and Canadian L/C Issuer, and Credit Suisse Securities (USA) LLC, as
Sole Lead Arranger and Sole Bookrunner. Capitalized terms used herein and not otherwise defined
herein have the meanings specified in the Credit Agreement.

          The undersigned hereby gives you notice pursuant to Section 2.04(b) of the Credit Agreement
that it requests a Borrowing under the Credit Agreement, and in that connection sets forth below
the terms on which such Borrowing is requested to be made:

     1. On                                         (which shall be a Business Day) (the “Date of Borrowing”).

     2. A [U.S.] [Canadian] Swing Line Borrowing.

     3 In the amount of [$] [Cdn. $]                                         .

          The [U.S.][Canadian] Swing Line Borrowing requested herein complies with the proviso in the
first sentence of Section 2.04[(A)(a)][(B)(a)] of the Credit Agreement.

 

			
	1	 	Must be notified in writing or by telephone
(with such telephonic notification to be confirmed promptly by delivery to the
Administrative Agent of a written Swing Line Loan Notice, appropriately
completed and signed by a Responsible Officer of such Borrower) (i) in the case
of a U.S. Swing Line Borrowing, not later than 12:00 p.m. on the date of the
proposed Borrowing or (ii) in the case of a Canadian Swing Line Borrowing, not
later than 12:00 p.m. on the date of the proposed Borrowing.

 

 

EXHIBIT B

          The [Specified U.S.][Canadian] Borrower hereby represents and warrants that the
conditions specified in Sections 4.02(a), (b) and (d) of the Credit Agreement shall be satisfied on
and as of the Date of Borrowing.

	 	 	 	 	 
	 	[Ply Gem Industries, Inc.] [CWD
Windows and Doors, Inc.]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT C-1

FORM OF

U.S. REVOLVING CREDIT NOTE

	 	 	 	 	 

	$[     ]

	 	 
	 	New York, New York
	 
	 	 	 	 
	 

	 	 	 	[•], 200[•]

          FOR VALUE RECEIVED, the undersigned, PLY GEM INDUSTRIES, INC., a Delaware corporation (the
“Borrower”), HEREBY PROMISES TO PAY TO [ ] (the “Lender”) or its registered assigns, at the
office of Credit Suisse (the “Administrative Agent”) at Eleven Madison Avenue, New York, New York
10010, on the dates and in the amounts set forth in the Credit Agreement dated as of June 9, 2008
(as the same may be amended, amended and restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”), among the Borrower, CWD Windows and Doors, Inc., (the “Canadian
Borrower”), Ply Gem Holdings, Inc., a Delaware corporation, the Subsidiaries of the Borrower from
time to time party thereto, the Lenders parties thereto, Credit Suisse, as Administrative Agent,
and General Electric Capital Corporation, as Collateral Agent, in lawful money of the United States
of America in immediately available funds, the aggregate unpaid principal amount of all U.S. Loans
made by the Lender to the Borrower pursuant to the Credit Agreement and to pay interest from the
date of such U.S. Loans on the principal amount thereof from time to time outstanding, in like
funds, at said office, at the rate or rates per annum and payable on the dates provided in the
Credit Agreement. Terms used but not defined herein shall have the meanings assigned to them in
the Credit Agreement.

          Except as otherwise provided in Section 2.04(A)(f) of the Credit Agreement with
respect to U.S. Swing Line Loans, all payments of principal and interest with respect to the U.S.
Loans made by the Lender shall be made to the Administrative Agent for the account of the Lender in
Dollars in immediately available funds at the Administrative Agent’s Office. If any amount is not
paid in full when due hereunder, such unpaid amount shall bear interest, to be paid upon demand,
from the due date thereof until the date of actual payment (and before as well as after judgment)
computed at the per annum rate set forth in the Credit Agreement.

          The Borrower, for itself, its successors and assigns, hereby waives diligence, presentment,
demand, protest and notice of any kind whatsoever. The nonexercise by the holder hereof of any of
its rights hereunder in any particular instance shall not constitute a waiver thereof in that or
any subsequent instance.

          This U.S. Revolving Credit Note is one of the Revolving Credit Notes referred to in the Credit
Agreement, is entitled to the benefits thereof and may be prepaid in whole or in part subject to
the terms and conditions therein. This U.S. Revolving Credit Note is also entitled to the benefits
of the U.S. Guaranty and is secured by the U.S. Collateral. The Credit Agreement also contains
provisions for the acceleration of the maturity hereof upon the happening of certain events, for
mandatory prepayment of the principal hereof prior to the maturity hereof and for the amendment or
waiver of certain provisions of the Credit Agreement, all upon the terms and conditions therein
specified. U.S. Loans made by the Lender shall be evidenced by one or more loan accounts or records
maintained by the Lender in the ordinary course of business. The Lender may also attach schedules
to this U.S. Revolving Credit Note and endorse thereon the date, amount and maturity of its U.S.
Loans and payments with respect thereto. THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

 

 

EXHIBIT C-1

	 	 	 	 	 
	 	PLY GEM INDUSTRIES, INC.

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

2

 

EXHIBIT C-2

FORM OF

CANADIAN REVOLVING CREDIT NOTE

	 	 	 	 	 

	$[       ]

	 	 
	 	New York, New York
	 
	 	 	 	 
	 

	 	 	 	[•], 200[•]

          FOR VALUE RECEIVED, the undersigned, CWD WINDOWS AND DOORS, INC. (the “Borrower”), HEREBY
PROMISES TO PAY TO [ ] (the “Lender”) or its registered assigns, in accordance with the
provisions of the Credit Agreement (as hereinafter defined) the principal amount of each Canadian
Loan from time to time made by the Lender to the Borrower under the Credit Agreement dated as of
June 9, 2008 (as amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the “Credit Agreement”), among the Borrower, Ply Gem Industries, Inc., a Delaware
corporation, Ply Gem Holdings, Inc., a Delaware corporation, the Subsidiaries of the Borrower from
time to time party thereto, the Lenders (as defined in the Credit Agreement) parties thereto,
Credit Suisse, as Administrative Agent, and General Electric Capital Corporation, as Collateral
Agent, in lawful money of the United States of America, or Canadian dollars, as applicable, in
immediately available funds, the aggregate unpaid principal amount of all Canadian Loans made by
the Lender to the Borrower pursuant to the Credit Agreement and to pay interest from the date of
such Canadian Loans on the principal amount thereof from time to time outstanding, in like funds,
at said office, at the rate or rates per annum and payable on the dates provided in the Credit
Agreement. Terms used but not defined herein shall have the meanings assigned to them in the
Credit Agreement.

          Except as otherwise provided in Section 2.04(B)(f) of the Credit Agreement with
respect to Canadian Swing Line Loans, all payments of principal and interest with respect to the
Canadian Loans made by the Lender shall be made to the Administrative Agent for the account of the
Lender in [U.S.][Canadian] Dollars in immediately available funds at the Administrative Agent’s
Office. If any amount is not paid in full when due hereunder, such unpaid amount shall bear
interest, to be paid upon demand, from the due date thereof until the date of actual payment (and
before as well as after judgment) computed at the per annum rate set forth in the Credit Agreement.

          The Borrower, for itself, its successors and assigns, hereby waives diligence, presentment,
demand, nonpayment, protest and notice of any kind whatsoever. The nonexercise by the holder
hereof of any of its rights hereunder in any particular instance shall not constitute a waiver
thereof in that or any subsequent instance.

          This Canadian Revolving Credit Note is one of the Revolving Credit Notes referred to in the
Credit Agreement, is entitled to the benefits thereof and may be prepaid in whole or in part
subject to the terms and conditions therein. This Canadian Revolving Credit Note is also entitled
to the benefits of the U.S. Guaranty and is secured by the U.S. Collateral and the Canadian
Collateral. The Credit Agreement also contains provisions for the acceleration of the maturity
hereof upon the happening of certain events, for mandatory prepayment of the principal hereof prior
to the maturity hereof and for the amendment or waiver of certain provisions of the Credit
Agreement, all upon the terms and conditions therein specified. Canadian Loans made by the Lender
shall be evidenced by one or more loan accounts or records maintained by the Lender in the ordinary
course of business. The Lender may also attach schedules to this Canadian Revolving Credit Note and
endorse thereon the date, amount and maturity of its Canadian Loans and payments with respect
thereto. THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF
NEW YORK.

 

 

EXHIBIT C-2

	 	 	 	 	 
	 	CWD WINDOWS AND DOORS, INC.

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT D

FORM OF COMPLIANCE CERTIFICATE

To: Credit Suisse, as Administrative Agent

               Financial Statement Date:                                         ,                    

Ladies and Gentlemen:

          Reference is made to that certain Credit Agreement dated as of June 9, 2008 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to time, the “Credit
Agreement”) among Ply Gem Industries, Inc. a Delaware corporation (the “Borrower”), CWD Windows and
Doors, Inc., Ply Gem Holdings, Inc. (“Holdings”), the Subsidiaries of the Borrower from time to
time party thereto, the Lenders parties thereto, Credit Suisse, as Administrative Agent, U.S. Swing
Line Lender and U.S. L/C Issuer, General Electric Capital Corporation, as Collateral Agent, Credit
Suisse, Toronto Branch, as Canadian Swing Line Lender and Canadian L/C Issuer, and Credit Suisse
Securities (USA) LLC, as Sole Lead Arranger and Sole Bookrunner. Capitalized terms used herein and
not otherwise defined herein have the meanings specified in the Credit Agreement.

          The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the
                                         of the Borrower, and that, as such, he/she is authorized to execute and
deliver this Compliance Certificate to the Administrative Agent on the behalf of the Borrower, and
that:

          [Use following paragraph 1 for fiscal year-end financial statements]

          1. [The Borrower has delivered the year-end audited consolidated financial statements required
by Section 6.01(a) of the Credit Agreement for the fiscal year of the Borrower ended as of
the above date, together with the report and opinion of [KPMG LLP][an independent certified public
accountant of nationally recognized standing] required by such section, prepared in accordance with
generally accepted auditing standards and not subject to any “going concern” or like qualification
or exception or any qualification or exception as to the scope of the audit.]

          [Use following paragraph 1 for fiscal quarter-end financial statements]

          1. [The Borrower has delivered the unaudited consolidated financial statements required by
Section 6.01(b) of the Credit Agreement for the fiscal quarter of the Borrower ended as of
the above date. Such consolidated financial statements fairly present in all material respects the
financial condition, results of operations, shareholders’ equity and cash flows of the Borrower and
its Subsidiaries in accordance with GAAP as at such date and for such period, subject only to
normal year-end audit adjustments and the absence of footnotes.]

          [Add the following statement to paragraph 1 when a Covenant Trigger Event has occurred and is
continuing and there has been a change in generally accepted accounting principles used in the
preparation of such financial documents]

          [There has been a change in the generally accepted accounting principles used in the
preparation of such financial statements, and a statement of reconciliation conforming such
financial statements to GAAP is attached hereto.]

 

 

EXHIBIT D

          2. The undersigned has reviewed and is familiar with the terms of the Credit Agreement and
has made, or has caused to be made under his/her supervision, a detailed review of the transactions
and condition (financial or otherwise) of the Borrower and its Subsidiaries during the accounting
period covered by such financial statements.

          3. A review of the activities of the Borrower and its Subsidiaries during such fiscal period
has been made under the supervision of the undersigned with a view to determining whether during
such fiscal period the Borrower and the other Loan Parties performed and observed all its
Obligations under the Loan Documents, and

[select one:]

          [to the best knowledge of the undersigned, during such fiscal period the Borrower and the
other Loan Parties performed and observed each covenant and condition of the Loan Documents
applicable to it, and no Default has occurred and is continuing.]

—or—

          [to the best knowledge of the undersigned, the following covenants or conditions have not been
performed or observed and the following is a list of each such Default and its nature and status:]

[Insert the following paragraph for new Borrowings only (not conversions or continuations)]

          4. The representations and warranties of the Borrower and the other Loan Parties contained in
Article V of the Credit Agreement or any other Loan Document, are true and correct in all
material respects on and as of the date hereof, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they are true and correct as of
such earlier date, and except that for purposes of this Compliance Certificate, the representations
and warranties contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement
shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b),
respectively, of Section 6.01 of the Credit Agreement, including the statements in
connection with which this Compliance Certificate is delivered.

          5. [If applicable] The financial covenant analyses and information set forth on Schedules
1 and 2 attached hereto are true and accurate on and as of the date of this Compliance
Certificate.

          IN WITNESS WHEREOF, the undersigned has executed this Compliance Certificate as of
                    ,                    .

	 	 	 	 	 
	 	PLY GEM INDUSTRIES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

SCHEDULE 1 TO EXHIBIT D

                    For the Quarter/Year ended                                        ,                    (“Statement Date”)

SCHEDULE 1

to the Compliance Certificate

($ in 000’s)

I. Section 7.11 — Consolidated Fixed Charge Coverage Ratio.

	 	 	 	 	 	 	 	 	 

	A.

	 	 	1.	 	 	Consolidated EBITDA for Measurement
Period ending on above
date (“Subject Period”):
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	The aggregate amount of all Capital Expenditures made during
Subject Period:
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	Taxes paid or payable in cash with respect to the Subject Period:
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	4.	 	 	Line I.A.1 — (Line I.A.2 + Line I.A.3)
	 	$                    
	 
	 	 	 	 	 	 	 	 
	B.	 	 	The sum of:
	 
	 	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	Consolidated Interest Expense for Subject Period paid in cash:
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	The aggregate principal amount of all Mandatory Principal
Payments made during such period, but excluding (A) any
such payments to the extent financed through the incurrence
of additional Indebtedness (other than Loans under the Credit
Agreement) otherwise expressly permitted under Section 7.02
and (B) Mandatory Principal Payments in respect of the Existing
Credit Facility in each case made on or before the Closing Date
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	The aggregate principal amount of all Restricted Payments made
during the Subject Period pursuant to Section 7.06(e) of the Credit
Agreement
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	4.	 	 	Line II.B.1 + Line II.B.2 + Line II.B.3
	 	$                    
	 
	 	 	 	 	 	 	 	 
	C.	 	 	Consolidated Fixed Charge Coverage Ratio (Line I.A.4 ÷ Line I.B.4):	 	$                    
	 
	 	 	 	 	 	 	 	 
	 	 	Minimum required:

	 	 	 
	Four Fiscal Quarters Ending	 	Minimum Consolidated Interest Coverage Ratio
	When a Covenant Trigger Event

	 	                    1.1 to 1.0
	has occurred and is continuing
	 	 

 

 

SCHEDULE 2 TO EXHIBIT D

                    For the Quarter/Year ended                                        ,                    (“Statement Date”)

SCHEDULE 2

to the Compliance Certificate

($ in 000’s)

Consolidated EBITDA

(in accordance with the definition Consolidated EBITDA as set forth in the Credit Agreement)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Twelve
	Consolidated	 	Quarter	 	Quarter	 	Quarter	 	Quarter	 	Months
	EBITDA	 	Ended	 	Ended	 	Ended	 	Ended	 	Ended
	Consolidated Net 

Income
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	+ Consolidated Net 

Income Tax Expense
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	+ Consolidated 

Amortization 

Expense (to the 

extent not included 

in Consolidated 

Interest Expense)
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	+ Restructuring 

Expenses
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	+ payments pursuant
to the Advisory
Agreement
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	+ Pro Forma Cost 

Savings
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	+ net out-of-pocket
costs and expenses
related to acquiring
the inventory of a
prior supplier of a
company in
connection with
becoming a provider
to such company (not
to exceed $5,000,000
for any Measurement
Period)
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	+ all other non-cash 

items reducing the 

Consolidated Net 

Income (excluding 

any non-cash charge 

that results in an
	 	 	 	 	 	 	 	 

 

 

SCHEDULE 2 TO EXHIBIT D

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Twelve
	Consolidated	 	Quarter	 	Quarter	 	Quarter	 	Quarter	 	Months
	EBITDA	 	Ended	 	Ended	 	Ended	 	Ended	 	Ended
	accrual of a reserve
for cash charges in
any future period
and
excluding write-down and write-off
of current assets)
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	— the aggregate
amount of all non-cash items,
determined on a
consolidated basis,
to
the extent such
items
increased
Consolidated Net
Income for such
period3
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	= Consolidated

EBITDA
	 	 	 	 	 	 	 	 

 

			
	3	 	The sum of the Restructuring Expenses and Pro
Forma Costs Savings added to the Consolidated Net Income to compute
Consolidated EBITA in any Measurement Period shall not exceed 15% of such
Consolidated EBITDA for such Measurement Period.

2

 

EXHIBIT E-1

[FORM OF]

ASSIGNMENT AND ASSUMPTION

          This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective
Date set forth below and is entered into by and between [the][each] Assignor identified in item 1
below ([the][each, an]4 “Assignor”) and [the][each] Assignee identified in item 2 below
([the][each, an] “Assignee”). [It is understood and agreed that the rights and obligations of [the
Assignors][the Assignees] hereunder are several and not joint.] Capitalized terms used but not
defined herein shall have the meanings given to them in the Credit Agreement identified below (as
amended, amended and restated supplemented or otherwise modified from time to time, the “Credit
Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms
and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by
reference and made a part of this Assignment and Assumption as if set forth herein in full.

          For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the
Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and
assumes from [the Assignor][the respective Assignors], subject to and in accordance with the
Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below (i) all of [the Assignor’s][the respective Assignors’]
rights and obligations in [its capacity as a Lender][their respective capacities as Lenders] under
the Credit Agreement and any other documents or instruments delivered pursuant thereto to the
extent related to the amount and percentage interest identified below of all of such outstanding
rights and obligations of [the Assignor][the respective Assignors] under the respective facilities
identified below (including, without limitation, the Letters of Credit and the Swing Line Loans
included in such facilities) and (ii) to the extent permitted to be assigned under applicable law,
all claims, suits, causes of action and any other right of [the Assignor (in its capacity as a
Lender)][the respective Assignors (in their respective capacities as Lenders)] against any Person,
whether known or unknown, arising under or in connection with the Credit Agreement, any other
documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in
any way based on or related to any of the foregoing, including contract claims, tort claims,
malpractice claims, statutory claims and all other claims at law or in equity related to the rights
and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and
assigned by [the][any] Assignor to [the][any] Assignee pursuant to clauses (i) and (ii) above being
referred to herein collectively as [the][an] “Assigned Interest”). Such sale and assignment is
without recourse to [the][any] Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by [the][any] Assignor.

	 	 	 	 	 	 	 

	1.

	 	Assignor[s]:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	2.

	 	Assignee[s]:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 

     [for each Assignee, indicate [Affiliate][Approved Fund] of [identify Lender]]

 

			
	4	 	Select as applicable.

 

 

EXHIBIT E-1

	 	 	 	 	 	 	 

	3.

	 	Borrower[s]:	 	 	 	 
	 

	 	 	 	 

	 	 

4.         Administrative Agent: Credit Suisse, as administrative agent under the Credit Agreement.

	 	 	 	 	 

	5.

	 	Credit Agreement:
	 	The Credit Agreement (as amended, restated, extended, supplemented or
otherwise modified in writing from time to time, the “Credit Agreement”) dated as of June 9,
2008 among Ply Gem Industries, Inc. a Delaware corporation (the “Specified U.S. Borrower”),
CWD Windows and Doors, Inc., (the “Canadian Borrower”), Ply Gem Holdings, Inc., a Delaware
corporation, the Subsidiaries of the Borrower from time to time party thereto, the Lenders
parties thereto, Credit Suisse, as Administrative Agent, U.S. Swing Line Lender and U.S. L/C
Issuer, General Electric Capital Corporation, as Collateral Agent, Credit Suisse, Toronto
Branch, as Canadian Swing Line Lender and Canadian L/C Issuer, and Credit Suisse Securities
(USA) LLC, as Sole Lead Arranger and Sole Bookrunner.
	 
	 	 	 	 
	6.

	 	Assigned Interest:	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Aggregate	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Amount of	 	Amount of	 	Percentage	 	 
	 	 	 	 	 	 	 	 	 	 	Commitment	 	Commitment	 	Assigned of	 	 
	 	 	 	 	 	 	Facility	 	/Loans for	 	/Loans	 	Commitment	 	CUSIP
	Assignor[s] 5	 	Assignee[s] 6	 	Assigned 7	 	all Lenders 8	 	Assigned 9	 	/Loans 10	 	Number
	 
	 	 	 	 	 	 	 	 	 	$	 	 	 	$	 	 	 	 	%	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	$	 	 	 	$	 	 	 	 	%	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	$	 	 	 	$	 	 	 	 	%	 	 	 	 	 

 

			
	5	 	List each Assignor, as appropriate
	 
	6	 	List each Assignee, as appropriate
	 
	7	 	Fill in the appropriate terminology for the
types of facilities under the Credit Agreement that are being assigned under
this Assignment (e.g. U.S. Revolving Credit Loan, Canadian Revolving Credit
Loan etc)
	 
	8	 	Amounts in this column and in the column
immediately to the right to be adjusted by the counterparties to take into
account any payments or prepayments made between the Trade Date and the
Effective Date.
	 
	9	 	Set forth, to at least 9 decimal places, as a
percentage of the Commitment/Loans of all Lenders thereunder.
	 
	10	 	To be completed if the Assignor and the
Assignee intend that the minimum assignment amount is to be determined as of
the Trade Date.

 

 

EXHIBIT E-1

Effective Date:                      ___, 20___[TO BE INSERTED BY THE ADMINISTRATIVE AGENT AND WHICH
SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 	 	 	 	 	 	 

	 	 	ASSIGNOR[S]	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	[NAME OF ASSIGNOR]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Name:
	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	[NAME OF ASSIGNOR]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Name:
	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	ASSIGNEE[S]	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	[NAME OF ASSIGNEE]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Name:
	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	[NAME OF ASSIGNEE]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Name:
	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 

2

 

EXHIBIT E-2

FORM OF

ADMINISTRATIVE QUESTIONNAIRE

PLY GEM INDUSTRIES, INC.

	 	 	 
	Agent Information	 	Agent Closing Contact
	 

	Credit Suisse

	 	Fay Rollins
	Eleven Madison Avenue

	 	Tel: 212-325-9041
	New York, NY 10010

	 	Fax: 212-538-3477 Desktop: 212-743-1422
	 

	 	E-Mail: fay.rollins@credit-suisse.com

	 	 	 	 	 
	Agent Wire Instructions	 	 	 	 
	Bank of New York

	ABA 021000018

	Account Name: CS Agency Cayman Account

	Account Number: 8900492627

It is very important that all of the requested information be completed accurately and
that this questionnaire be returned promptly. If your institution is sub-allocating its
allocation, please fill out an administrative questionnaire for each legal entity.

Legal Name of Lender to appear in Documentation:

 

	 	 	 

	Signature Block Information:
	 	 
	 

	 	 

	 	 	 	 	 	 	 	 	 

	       •  Signing Credit Agreement

	 	 

	 	Yes
	 	 

	 	No
	 
	 	 	 	 	 	 	 	 
	       •  Coming in via Assignment

	 	 

	 	Yes
	 	 

	 	No

	 	 	 

	Type of Lender:
	 	 
	 

	 	 

(Bank, Asset Manager, Broker/Dealer, CLO/CDO; Finance Company, Hedge Fund, Insurance, Mutual Fund,
Pension Fund, Other Regulated Investment Fund, Special Purpose Vehicle, Other-please specify)

	 	 	 

	Lender Parent:
	 	 
	 

	 	 

	 	 	 	 	 
	Lender
Domestic Address	 	 	 	Lender Eurodollar Address
	 
	 	 	 	 
	 

	 	 
	 	  

	 
	 	 	 	 
	 

	 	 
	 	  

	 
	 	 	 	 
	 

	 	 
	 	  

 

 

EXHIBIT E-2

Contacts/Notification Methods: Borrowings, Paydowns, Interest, Fees, etc.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Primary Credit Contact	 	 	 	Secondary Credit Contact	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Company:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Telephone:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Facsimile:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	E-Mail Address:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Primary Operations Contact	 	 	 	Secondary Operations Contact	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Company:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 

Lender’s Domestic Wire Instructions

	 	 	 	 	 

	Bank Name:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	ABA/Routing No.:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Account Name:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Account No.:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	FFC Account Name:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	FFC Account No.:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Attention:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Reference:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 

 

 

EXHIBIT E-2

Tax Documents

NON-U.S. LENDER INSTITUTIONS:

I. Corporations:

If your institution is incorporated outside of the United States for U.S. federal income tax
purposes, and is the beneficial owner of the interest and other income it receives, you
must complete one of the following three tax forms, as applicable to your institution: a.) Form
W-8BEN (Certificate of Foreign Status of Beneficial Owner), b.) Form W-8ECI (Income Effectively
Connected to a U.S. Trade or Business), or c.) Form W-8EXP (Certificate of Foreign Government or
Governmental Agency).

A U.S. taxpayer identification number is required for any institution submitting Form W-8ECI. It
is also required on Form W-8BEN for certain institutions claiming the benefits of a tax treaty with
the U.S. Please refer to the instructions when completing the form applicable to your institution.
In addition, please be advised that U.S. tax regulations do not permit the acceptance of faxed
forms. An original tax form must be submitted.

II. Flow-Through Entities:

If your institution is organized outside the U.S., and is classified for U.S. federal income tax
purposes as either a Partnership, Trust, Qualified or Non-Qualified Intermediary, or other non-U.S.
flow-through entity, an original Form W-8IMY (Certificate of Foreign Intermediary, Foreign
Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding) must be completed
by the intermediary together with a withholding statement. Flow-through entities other than
Qualified Intermediaries are required to include tax forms for each of the underlying beneficial
owners.

Please refer to the instructions when completing this form. In addition, please be advised that
U.S. tax regulations do not permit the acceptance of faxed forms. Original tax form(s) must be
submitted.

U.S. LENDER INSTITUTIONS:

If your institution is incorporated or organized within the United States, you must
complete and return Form W-9 (Request for Taxpayer Identification Number and Certification).
Please be advised that we request that you submit an original Form W-9.

Pursuant to the language contained in the tax section of the Credit Agreement, the applicable tax
form for your institution must be completed and returned prior to the first payment of income.
Failure to provide the proper tax form when requested may subject your institution to U.S. tax
withholding.

 

 

EXHIBIT F

FORM OF GUARANTY

[See Exhibit 4.8 to the Company’s Form 10-Q,
dated August 11, 2008 (File No. 333-114041-07)]

 

 

EXHIBIT G-1

FORM OF U.S. SECURITY AGREEMENT

[See Exhibit 4.7 to the Company’s Form 10-Q,
dated August 11, 2008 (File No. 333-114041-07)]

 

 

EXHIBIT G-2

FORM OF CANADIAN SECURITY AGREEMENT

[See Exhibit 4.10 to the Company’s Form 10-Q,
dated August 11, 2008 (File No. 333-114041-07)]

 

 

EXHIBIT H

 

[FORM OF]

[LEASEHOLD] MORTGAGE, ASSIGNMENT OF LEASES AND RENTS, SECURITY

AGREEMENT AND FINANCING STATEMENT

From

[MORTGAGOR]

To

GENERAL ELECTRIC CAPITAL CORPORATION

 

Dated: [•], 2008

Premises: [City, State] Site #[•]

[•] County

 

 

 

 

     THIS [LEASEHOLD] MORTGAGE, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT
AND FINANCING STATEMENT dated as of [•], 2008 (this “Mortgage”), by [MORTGAGOR], a
[•] having an office at [•] (the “Mortgagor”), to GENERAL ELECTRIC CAPITAL
CORPORATION, a [•], having an office at [•] (the “Mortgagee”) as Collateral Agent
for the Secured Parties (as such terms are defined below).

WITNESSETH THAT:

     Reference is made to (i) the Credit Agreement dated as of June 9, 2008 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”), among Ply Gem
Holdings, Inc., a Delaware corporation (“Holdings”), Ply Gem Industries, Inc., a Delaware
corporation (the “Specified U.S. Borrower”), CWD Windows and Doors, Inc., a Canadian corporation
(the “Canadian Borrower”), the Subsidiaries (such term and each other capitalized term used but not
defined herein having the meaning given to it in the Credit Agreement) of the Specified U.S.
Borrower from time to time party thereto as Borrowers and Guarantors, each Lender from time to time
party thereto, Credit Suisse, as Administrative Agent (in such capacity, the “Administrative
Agent”), U.S. Swing Line Lender and U.S. L/C Issuer, General Electric Capital Corporation, as
Collateral Agent (in such capacity, the “Collateral Agent”), Credit Suisse Toronto Branch, as
Canadian Swing Line Lender and Canadian L/C Issuer, Credit Suisse Securities (USA) LLC, as Sole
Lead Arranger and Sole Bookrunner, [•], as Syndication Agent and [•], as Documentation Agent, (ii)
the U.S. Security Agreement dated as of June 9, 2008 (as amended, supplemented or otherwise
modified from time to time, the “U.S. Security Agreement”), among the Specified U.S. Borrower,
Holdings, the other Persons listed on Schedule I thereto, the Additional Grantors (as defined
therein), Collateral Agent and Administrative Agent and (iii) the U.S. Guaranty dated as of June 9,
2008 (as amended, supplemented or otherwise modified from time to time, the “U.S. Guaranty”), among
the Specified U.S. Borrower, Holdings, the Subsidiaries of the Specified U.S. Borrower listed on
Schedule I thereto and Collateral Agent.

     In the Credit Agreement, (i) the Lenders have agreed to make Revolving Credit Loans to the
Borrowers, (ii) the Swing Line Lenders have agreed to make Swing Line Loans to the Borrowers and
(iii) the L/C Issuers have issued or have agreed to issue from time to time Letters of Credit for
the account of the Borrowers, in each case pursuant to, upon the terms, and subject to the
conditions specified in, the Credit Agreement. Subject to the terms of the Credit Agreement, the
Borrowers may borrow, prepay and reborrow Revolving Credit Loans. The Credit Agreement provides
that the sum of the principal amount of the Loans and the Letters of Credit from time to time
outstanding and secured hereby shall not exceed $[•]1

     [Mortgagor is a Borrower and will derive substantial benefit from the making of the Loans by
the Lenders and the issuance of the Letters of Credit by the L/C Issuers. In order to induce the
Lenders to make Loans and the L/C Issuers to issue Letters of Credit, the

 

			
	1	 	Modify as appropriate for certain states such as
New York where revolving loans may not be secured by the Mortgage due to the
mortgage recording tax requirements.

 

 

Mortgagor has agreed to grant this Mortgage to secure, among other things, the due and
punctual payment and performance of all of the Obligations (as defined below) of the Borrowers
under the Credit Agreement pursuant to the terms of the U.S. Guaranty and the U.S. Security
Agreement.

     Mortgagor is a wholly owned Subsidiary of [the Specified U.S. Borrower / a Borrower /
Holdings] and will derive substantial benefit from the making of the Loans by the Lenders and the
issuance of the Letters of Credit by the L/C Issuers. In order to induce the Lenders to make Loans
and the L/C Issuers to issue Letters of Credit, the Mortgagor has agreed to guarantee, among other
things, the due and punctual payment and performance of all of the Obligations (as defined below)
of the Borrowers under the Credit Agreement pursuant to the terms of the U.S. Guaranty and the U.S.
Security Agreement.]2

     The obligations of the Lenders and the L/C Issuers to extend credit to the Borrowers, the
Hedge Banks to enter into Secured Hedge Agreements and the Cash Management Banks to enter into
Secured Cash Management Agreements, are conditioned upon, among other things, the execution and
delivery by the Mortgagor of this Mortgage in the form hereof to secure the Obligations.

     Pursuant to the requirements of the Credit Agreement, the Mortgagor is granting this Mortgage
to create a lien on and a security interest in the Mortgaged Property (as hereinafter defined) to
secure the performance and payment by the Mortgagor of the Obligations (as hereinafter defined).
The Credit Agreement also requires the granting by other Loan Parties of mortgages, deeds of trust
and/or deeds to secure debt (the “Other Mortgages”) that create liens on and security interests in
certain real and personal property other than the Mortgaged Property to secure the performance of
the Obligations.

     As used in this Mortgage, the following terms have the meanings specified below:

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

 

			
	2	 	Only one of the two immediately preceding
paragraphs should appear in any particular Mortgage. The first bracketed
paragraph should be inserted if Mortgagor is a Borrower. The second brackted
paragraph should be inserted if Mortgagor is Guarantor of the Obligations.

3

 

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

     “Obligations” means the U.S. Obligations and the Canadian Obligations.

     “Secured Parties” means the U.S. Secured Parties and the Canadian Secured Parties.

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

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

Granting Clauses

     NOW, THEREFORE, IN CONSIDERATION OF the foregoing and in order to secure the due and punctual
payment and performance of the Obligations for the benefit of the Secured Parties, Mortgagor hereby
grants, conveys, mortgages, assigns and pledges to the Mortgagee, a mortgage lien on and a security
interest in, all the following described property (the “Mortgaged Property”) whether now owned or
held or hereafter acquired:

     (1) [insert in fee mortgage: the land more particularly described on Exhibit A hereto
(the “Land”), together with all rights appurtenant thereto, including the easements over
certain other adjoining land granted by any easement agreements, covenant or restrictive
agreements and all air rights, mineral rights, water rights, oil and gas rights and
development rights, if any, relating thereto, and also together with all of the other
easements, rights, privileges, interests, hereditaments and appurtenances thereunto
belonging or in any way appertaining and all of the estate, right, title, interest, claim
or demand whatsoever of Mortgagor therein and in the streets and ways adjacent thereto,
either in law or in equity, in possession or expectancy, now or hereafter acquired (the
“Premises”); / insert in leasehold

4

 

mortgage: all of Mortgagor’s right, title and interest in and to that certain lease
covering and encumbering that certain real property described on Exhibit A hereto (the
“Land”), which lease is more specifically described on Exhibit B hereto (as amended or
modified from time to time, the “Subject Lease”), together with all rights of Mortgagor
under the Subject Lease;]

     [insert in leasehold mortgage: (2) all of Mortgagor’s right, title and interest in
and to the leasehold estate in the Land created by the Subject Lease, together with all
rights appurtenant to the Land, including the easements over certain other adjoining land
granted by any easement agreements, covenant or restrictive agreements and all air rights,
mineral rights, water rights, oil and gas rights and development rights, if any, relating
thereto, and also together with all of the other easements, rights, privileges, interests,
hereditaments and appurtenances thereunto belonging or in any way appertaining and all of
the estate, right, title, interest, claim or demand whatsoever of Mortgagor therein and in
the streets and ways adjacent thereto, either in law or in equity, in possession or
expectancy, now or hereafter acquired (the “Premises”);]

     (2) all of Morgagor’s right, title and interest in and to all buildings, improvements,
structures, paving, parking areas, walkways and landscaping now or hereafter erected or
located upon the Land, and all fixtures of every kind and type affixed to the Premises or
attached to or forming part of any structures, buildings or improvements and replacements
thereof now or hereafter erected or located upon the Land (the “Improvements”);

     (3) all of Morgagor’s right, title and interest in and to all apparatus, movable
appliances, building materials, equipment, fittings, furnishings, furniture, machinery and
other articles of tangible personal property of every kind and nature, and replacements
thereof, now or at any time hereafter placed upon or used in any way in connection with the
use, enjoyment, occupancy or operation of the Improvements or the Premises, including all
of Mortgagor’s books and records relating thereto and including all pumps, tanks, goods,
machinery, tools, equipment, lifts (including fire sprinklers and alarm systems, fire
prevention or control systems, cleaning rigs, air conditioning, heating, boilers,
refrigerating, electronic monitoring, water, loading, unloading, lighting, power,
sanitation, waste removal, entertainment, communications, computers, recreational, window
or structural, maintenance, truck or car repair and all other equipment of every kind),
restaurant, bar and all other indoor or outdoor furniture (including tables, chairs,
booths, serving stands, planters, desks, sofas, racks, shelves, lockers and cabinets), bar
equipment, glasses, cutlery, uniforms, linens, memorabilia and other decorative items,
furnishings, appliances, supplies, inventory, rugs, carpets and other floor coverings,
draperies, drapery rods and brackets, awnings, venetian blinds, partitions, chandeliers and
other lighting fixtures, freezers, refrigerators, walk-in coolers, signs (indoor and
outdoor), computer systems, cash registers and inventory control systems, and all other
apparatus, equipment, furniture, furnishings, and articles used in connection with the use
or operation of the Improvements or the Premises, it being understood that the enumeration
of any specific articles of property shall in no way result in or be held to

5

 

exclude any items of property not specifically mentioned (the property referred to in
this subparagraph (3), the “Personal Property”);

     (4) all of Morgagor’s right, title and interest in and to all general intangibles
owned by Mortgagor and relating to design, development, operation, management and use of
the Premises or the Improvements, all certificates of occupancy, zoning variances,
building, use or other permits, approvals, authorizations and consents obtained from and
all materials prepared for filing or filed with any governmental agency in connection with
the development, use, operation or management of the Premises and Improvements, all
construction, service, engineering, consulting, leasing, architectural and other similar
contracts concerning the design, construction, management, operation, occupancy and/or use
of the Premises and Improvements, all architectural drawings, plans, specifications, soil
tests, feasibility studies, appraisals, environmental studies, engineering reports and
similar materials relating to any portion of or all of the Premises and Improvements, and
all payment and performance bonds or warranties or guarantees relating to the Premises or
the Improvements, all to the extent assignable (the “Permits, Plans and Warranties”);

     (5) all of Morgagor’s right, title and interest in and to all now or hereafter
existing leases or licenses (under which Mortgagor is landlord or licensor) and subleases
(under which Mortgagor is sublandlord), concession, management, mineral or other agreements
of a similar kind that permit the use or occupancy of the Premises or the Improvements for
any purpose in return for any payment, or the extraction or taking of any gas, oil, water
or other minerals from the Premises in return for payment of any fee, rent or royalty
(collectively, “Leases”), and all agreements or contracts for the sale or other disposition
of all or any part of the Premises or the Improvements, now or hereafter entered into by
Mortgagor, together with all charges, fees, income, issues, profits, receipts, rents,
revenues or royalties payable thereunder (“Rents”);

     (6) all of Morgagor’s right, title and interest in and to all real estate tax refunds
and all proceeds of the conversion, voluntary or involuntary, of any of the Mortgaged
Property into cash or liquidated claims (“Proceeds”), including Proceeds of insurance
maintained by the Mortgagor and condemnation awards, any awards that may become due by
reason of the taking by eminent domain or any transfer in lieu thereof of the whole or any
part of the Premises or Improvements or any rights appurtenant thereto, and any awards for
change of grade of streets, together with any and all moneys now or hereafter on deposit
for the payment of real estate taxes, assessments or common area charges levied against the
Mortgaged Property, unearned premiums on policies of fire and other insurance maintained by
the Mortgagor covering any interest in the Mortgaged Property or required by the Credit
Agreement; and

     (7) all of Morgagor’s right, title and interest in and to all extensions,
improvements, betterments, renewals, substitutes and replacements of and all additions and
appurtenances to, the Land, the Premises, the Improvements, the Personal Property, the
Permits, Plans and Warranties and the Leases, hereinafter acquired by or released to the
Mortgagor or constructed, assembled or placed by the

6

 

Mortgagor on the Land, the Premises or the Improvements, and all conversions of the
security constituted thereby, immediately upon such acquisition, release, construction,
assembling, placement or conversion, as the case may be, and in each such case, without any
further mortgage, deed of trust, conveyance, assignment or other act by the Mortgagor, all
of which shall become subject to the lien of this Mortgage as fully and completely, and
with the same effect, as though now owned by the Mortgagor and specifically described
herein.

     TO HAVE AND TO HOLD the Mortgaged Property unto the Mortgagee, its successors and assigns, for
the ratable benefit of the Secured Parties, forever, subject only to those Liens permitted under
Section 7.01 of the Credit Agreement (the “Permitted Encumbrances”) and to satisfaction and release
as provided in Section 3.04.

ARTICLE I

Representations, Warranties and Covenants of Mortgagor

     Mortgagor agrees, covenants, represents and/or warrants as follows:

     SECTION 1.01. Title, Mortgage Lien. (a) [insert in fee mortgage: Mortgagor has good
and marketable fee simple title to, or other applicable type of ownership interest in, the
Mortgaged Property, subject only to Permitted Encumbrances / insert in leasehold mortgage:
Mortgagor is lawfully seized and possessed of, and has a valid, subsisting leasehold estate in, the
Subject Lease, subject only to Permitted Encumbrances.]

     (b) The execution and delivery of this Mortgage is within Mortgagor’s corporate powers and
has been duly authorized by all necessary corporate and, if required, stockholder action. This
Mortgage has been duly executed and delivered by Mortgagor and constitutes a legal, valid and
binding obligation of Mortgagor, enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights
generally and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law.

     (c) The execution, delivery and recordation of this Mortgage (i) do not require any consent
or approval of, registration or filing with, or any other action by, any Governmental Authority,
except such as have been obtained or made and are in full force and effect and except filings
necessary to perfect the lien of this Mortgage, (ii) will not violate any applicable law or
regulation or the charter, by-laws or other organizational documents of Mortgagor or any order of
any Governmental Authority, (iii) will not violate or result in a default under any indenture,
agreement or other instrument binding upon Mortgagor or its assets, or give rise to a right
thereunder to require any payment to be made by Mortgagor, and (iv) will not result in the creation
or imposition of any Lien on any asset of Mortgagor, except the lien of this Mortgage.

     (d) This Mortgage and the Uniform Commercial Code Financing Statements described in Section
1.09 of this Mortgage, when duly recorded in the public records

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identified in the Perfection Certificate will create a valid, perfected and enforceable lien
upon and security interest in all of the Mortgaged Property.

     (e) Mortgagor will forever warrant and defend its title to the Mortgaged Property, the rights
of Mortgagee therein under this Mortgage and the validity and priority of the lien of this Mortgage
thereon against the claims of all persons and parties except those having rights under Permitted
Encumbrances to the extent of those rights.

     SECTION 1.02. Credit Agreement. This Mortgage is given pursuant to the Credit
Agreement. Mortgagor expressly covenants and agrees to pay when due, and to timely perform, and to
cause the other Loan Parties to pay when due, and to timely perform, the Obligations in accordance
with the terms of the Loan Documents.

     SECTION 1.03. Payment of Taxes, and Other Obligations. (a) Mortgagor will pay and
discharge from time to time prior to the time when the same shall become delinquent, and before any
interest or penalty accrues thereon or attaches thereto, all Taxes and other obligations with
respect to the Mortgaged Property or any part thereof or upon the Rents from the Mortgaged Property
or arising in respect of the occupancy, use or possession thereof in accordance with, and to the
extent required by, the Credit Agreement.

     (b) In the event of the passage of any state, Federal, municipal or other governmental law,
order, rule or regulation subsequent to the date hereof (i) deducting from the value of real
property for the purpose of taxation any lien or encumbrance thereon or in any manner changing or
modifying the laws now in force governing the taxation of this Mortgage or debts secured by
mortgages or deeds of trust (other than laws governing income, franchise and similar taxes
generally) or the manner of collecting taxes thereon and (ii) imposing a tax to be paid by
Mortgagee, either directly or indirectly, on this Mortgage or any of the Loan Documents, or
requiring an amount of taxes to be withheld or deducted therefrom, Mortgagor will promptly (i)
notify Mortgagee of such event, (ii) enter into such further instruments as Mortgagee may determine
are reasonably necessary or desirable to obligate Mortgagor to make any additional payments
necessary to put the Lenders and Secured Parties in the same financial position they would have
been if such law, order, rule or regulation had not been passed and (iii) make such additional
payments to Mortgagee for the benefit of the Lenders and Secured Parties.

     SECTION 1.04. Maintenance of Mortgaged Property. Mortgagor will maintain the
Improvements and the Personal Property in the manner required by the Credit Agreement.

     SECTION 1.05. Insurance. Mortgagor will keep or cause to be kept the Improvements and
Personal Property insured against such risks, and in the manner, described in Section 8 of the U.S.
Security Agreement and shall purchase such additional insurance as may be required from time to
time pursuant to Section 6.07 of the Credit Agreement. Federal Emergency Management Agency
Standard Flood Hazard Determination Forms will be purchased by Mortgagor for each Mortgaged
Property on which Improvements are located. If any portion of Improvements constituting part of
the Mortgaged Property is located in an area identified as a special flood hazard area by Federal
Emergency Management Agency or other applicable agency, Mortgagor will purchase flood insurance in
an amount reasonably

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satisfactory to Mortgagee, but in no event less than the maximum limit of coverage available
under the National Flood Insurance Act of 1968, as amended.

     SECTION 1.06. Casualty Condemnation/Eminent Domain. Mortgagor shall give Mortgagee
prompt written notice of any casualty or other damage to the Mortgaged Property or any proceeding
for the taking of the Mortgaged Property or any portion thereof or interest therein under power of
eminent domain or by condemnation or any similar proceeding in accordance with, and to the extent
required by, the Credit Agreement. Any net proceeds received by or on behalf of the Mortgagor in
respect of any such casualty, damage or taking shall, unless the portion of the Mortgaged Property
damaged is covered by Section 7.05(a) of the Credit Agreement, constitute trust funds held by the
Mortgagor for the benefit of the Secured Parties to be applied to repair, restore or replace the
Mortgaged Property.

     SECTION 1.07. Assignment of Leases and Rents. (a) Mortgagor hereby irrevocably and
absolutely grants, transfers and assigns all of its right title and interest in all Leases,
together with any and all extensions and renewals thereof for purposes of securing and discharging
the performance by Mortgagor of the Obligations. Mortgagor has not assigned or executed any
assignment of, and will not assign or execute any assignment of, any Leases or the Rents payable
thereunder to anyone other than Mortgagee.

     (b) All Leases shall be subordinate to the lien of this Mortgage. Mortgagor will not enter
into, modify or amend any Lease if such Lease, as entered into, modified or amended, will not be
subordinate to the lien of this Mortgage.

     (c) Subject to Section 1.07(d), Mortgagor has assigned and transferred to Mortgagee all of
Mortgagor’s right, title and interest in and to the Rents now or hereafter arising from each Lease
heretofore or hereafter made or agreed to by Mortgagor, it being intended that this assignment
establish, subject to Section 1.07(d), an absolute transfer and assignment of all Rents and all
Leases to Mortgagee and not merely to grant a security interest therein. Subject to Section
1.07(d), Mortgagee may in Mortgagor’s name and stead (with or without first taking possession of
any of the Mortgaged Property personally or by receiver as provided herein) operate the Mortgaged
Property and rent, lease or let all or any portion of any of the Mortgaged Property to any party or
parties at such rental and upon such terms as Mortgagee shall, in its sole discretion, determine,
and may collect and have the benefit of all of said Rents arising from or accruing at any time
thereafter or that may thereafter become due under any Lease.

     (d) So long as an Event of Default shall not have occurred and be continuing, Mortgagee will
not exercise any of its rights under Section 1.07(c), and Mortgagor shall receive and collect the
Rents accruing under any Lease; but after the happening and during the continuance of any Event of
Default, Mortgagee may, at its option, receive and collect all Rents and enter upon the Premises
and Improvements through its officers, agents, employees or attorneys for such purpose and for the
operation and maintenance thereof. Mortgagor hereby irrevocably authorizes and directs each
tenant, if any, and each successor, if any, to the interest of any tenant under any Lease,
respectively, to rely upon any notice of a claimed Event of Default sent by Mortgagee to any such
tenant or any of such tenant’s successors in interest, and thereafter to pay Rents to Mortgagee
without any obligation or right to inquire

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as to whether an Event of Default actually exists and even if some notice to the contrary is
received from the Mortgagor, who shall have no right or claim against any such tenant or successor
in interest for any such Rents so paid to Mortgagee. Each tenant or any of such tenant’s
successors in interest from whom Mortgagee or any officer, agent, attorney or employee of Mortgagee
shall have collected any Rents, shall be authorized to pay Rents to Mortgagor only after such
tenant or any of their successors in interest shall have received written notice from Mortgagee
that the Event of Default is no longer continuing, unless and until a further notice of an Event of
Default is given by Mortgagee to such tenant or any of its successors in interest.

     (e) Mortgagee will not become a mortgagee in possession so long as it does not enter or take
actual possession of the Mortgaged Property. In addition, Mortgagee shall not be responsible or
liable for performing any of the obligations of the landlord under any Lease, for any waste by any
tenant, or others, for any dangerous or defective conditions of any of the Mortgaged Property, for
negligence in the management, upkeep, repair or control of any of the Mortgaged Property or any
other act or omission by any other person.

     (f) Mortgagor shall furnish to Mortgagee, within 30 days after a request by Mortgagee to do
so, a written statement containing the names of all tenants, subtenants and concessionaires of the
Premises or Improvements, the terms of any Lease, the space occupied and the rentals and/or other
amounts payable thereunder.

     SECTION 1.08. Restrictions on Transfers and Encumbrances. Mortgagor shall not
directly or indirectly sell, convey, alienate, assign, lease, sublease, license, mortgage, pledge,
encumber or otherwise transfer, create, consent to or suffer the creation of any lien, charge or
other form of encumbrance upon any interest in or any part of the Mortgaged Property that is not a
Permitted Encumbrance, or be divested of its title to the Mortgaged Property or any interest
therein in any manner or way, whether voluntarily or involuntarily (other than resulting from a
condemnation), or engage in any common, cooperative, joint, time-sharing or other congregate
ownership of all or part thereof, except in each case in accordance with and to the extent
permitted by the Credit Agreement; provided, that Mortgagor may, in the ordinary course of
business and in accordance with reasonable commercial standards, enter into easement or covenant
agreements that relate to and/or benefit the operation of the Mortgaged Property and that do not
materially and adversely affect the value, use or operation of the Mortgaged Property.

     SECTION 1.09. Security Agreement. This Mortgage is both a mortgage of real property
and a grant of a security interest in personal property, and shall constitute and serve as a
“Security Agreement” within the meaning of the uniform commercial code as adopted in the state
wherein the Premises are located (“UCC”). Mortgagor has hereby granted unto Mortgagee a security
interest in and to all the Mortgaged Property described in this Mortgage that is not real property,
and simultaneously with the recording of this Mortgage, Mortgagor has filed or will file UCC
financing statements, and will file continuation statements prior to the lapse thereof, at the
appropriate offices in the jurisdiction of formation of the Mortgagor to perfect the security
interest granted by this Mortgage in all the Mortgaged Property that is not real property.
Mortgagor hereby appoints Mortgagee as its true and lawful attorney-in-fact and agent, for
Mortgagor and in its name, place and stead, in any and all capacities, to

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execute any document and to file the same in the appropriate offices (to the extent it may
lawfully do so), and to perform each and every act and thing reasonably requisite and necessary to
be done to perfect the security interest contemplated by the preceding sentence. Mortgagee shall
have all rights with respect to the part of the Mortgaged Property that is the subject of a
security interest afforded by the UCC in addition to, but not in limitation of, the other rights
afforded Mortgagee hereunder and under the Guarantee and Collateral Agreement.

     SECTION 1.10. Filing and Recording. Mortgagor will cause this Mortgage, the UCC
financing statements referred to in Section 1.09, any other security instrument creating a security
interest in or evidencing the lien hereof upon the Mortgaged Property and each UCC continuation
statement and instrument of further assurance to be filed, registered or recorded and, if
necessary, refiled, rerecorded and reregistered, in such manner and in such places as may be
required by any present or future law in order to publish notice of and fully to perfect the lien
hereof upon, and the security interest of Mortgagee in, the Mortgaged Property until this Mortgage
is terminated and released in full in accordance with Section 3.04 hereof. Mortgagor will pay all
filing, registration and recording fees, all Federal, state, county and municipal recording,
documentary or intangible taxes and other taxes, duties, imposts, assessments and charges, and all
reasonable expenses incidental to or arising out of or in connection with the execution, delivery
and recording of this Mortgage, UCC continuation statements any mortgage supplemental hereto, any
security instrument with respect to the Personal Property, Permits, Plans and Warranties and
Proceeds or any instrument of further assurance.

     SECTION 1.11. Further Assurances. Upon demand by Mortgagee, Mortgagor will, at the
cost of Mortgagor and without expense to Mortgagee, do, execute, acknowledge and deliver all such
further acts, deeds, conveyances, mortgages, assignments, notices of assignment, transfers and
assurances as Mortgagee shall from time to time reasonably require for the better assuring,
conveying, assigning, transferring and confirming unto Mortgagee the property and rights hereby
conveyed or assigned or intended now or hereafter so to be, or which Mortgagor may be or may
hereafter become bound to convey or assign to Mortgagee, or for carrying out the intention or
facilitating the performance of the terms of this Mortgage, or for filing, registering or recording
this Mortgage, and on demand, Mortgagor will also execute and deliver and hereby appoints Mortgagee
as its true and lawful attorney-in-fact and agent, for Mortgagor and in its name, place and stead,
in any and all capacities, to execute and file to the extent it may lawfully do so, one or more
financing statements, chattel mortgages or comparable security instruments reasonably requested by
Mortgagee to evidence more effectively the lien hereof upon the Personal Property and to perform
each and every act and thing requisite and necessary to be done to accomplish the same.

     SECTION 1.12. Additions to Mortgaged Property. All right, title and interest of
Mortgagor in and to all extensions, improvements, betterments, renewals, substitutions and
replacements of, and all additions and appurtenances to, the Mortgaged Property hereafter acquired
by or released to Mortgagor or constructed, assembled or placed by Mortgagor upon the Premises or
the Improvements, and all conversions of the security constituted thereby, immediately upon such
acquisition, release, construction, assembling, placement or conversion, as the case may be, and in
each such case without any further mortgage,

11

 

conveyance, assignment or other act by Mortgagor, shall become subject to the lien and
security interest of this Mortgage as fully and completely and with the same effect as though now
owned by Mortgagor and specifically described in the grant of the Mortgaged Property above, but at
any and all times Mortgagor will execute and deliver to Mortgagee any and all such further
assurances, mortgages, conveyances or assignments thereof as Mortgagee may reasonably require for
the purpose of expressly and specifically subjecting the same to the lien and security interest of
this Mortgage.

     SECTION 1.13. No Claims Against Mortgagee. Nothing contained in this Mortgage shall
constitute any consent or request by Mortgagee, express or implied, for the performance of any
labor or services or the furnishing of any materials or other property in respect of the Mortgaged
Property or any part thereof, nor as giving Mortgagor any right, power or authority to contract for
or permit the performance of any labor or services or the furnishing of any materials or other
property in such fashion as would permit the making of any claim against Mortgagee in respect
thereof.

     SECTION 1.14. Fixture Filing. (a) Certain portions of the Mortgaged Property are or
will become “fixtures” (as that term is defined in the UCC) on the Land, and this Mortgage, upon
being filed for record in the real estate records of the county wherein such fixtures are situated,
shall operate also as a financing statement filed as a fixture filing in accordance with the
applicable provisions of said UCC upon such portions of the Mortgaged Property that are or become
fixtures.

     (b) The real property to which the fixtures relate is described in Exhibit A attached hereto.
[The record owner of the real property described in Exhibit A attached hereto is
Mortgagor.]3 The name, type of organization and jurisdiction of organization of the
debtor for purposes of this financing statement are the name, type of organization and jurisdiction
of organization of the Mortgagor set forth in the first paragraph of this Mortgage, and the name of
the secured party for purposes of this financing statement is the name of the Mortgagee set forth
in the first paragraph of this Mortgage. The mailing address of the Mortgagor/debtor is the
address of the Mortgagor set forth in the first paragraph of this Mortgage. The mailing address of
the Mortgagee/secured party from which information concerning the security interest hereunder may
be obtained is the address of the Mortgagee set forth in the first paragraph of this Mortgage.
Mortgagor’s organizational identification number is [•].

ARTICLE II

Defaults and Remedies

     SECTION 2.01. Events of Default. Any Event of Default under the Credit Agreement (as
such term is defined therein) shall constitute an Event of Default under this Mortgage.

 

			
	3	 	Modify as appropriate for Leasehold Mortgage.

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     SECTION 2.02. Demand for Payment. If an Event of Default shall occur and be
continuing, then, upon written demand of Mortgagee, Mortgagor will pay to Mortgagee all amounts due
hereunder and under the Credit Agreement and the other Loan Documents and such further amount as
shall be sufficient to cover the costs and expenses of collection, including attorneys’ fees,
disbursements and expenses incurred by Mortgagee, and Mortgagee shall be entitled and empowered to
institute an action or proceedings at law or in equity for the collection of the sums so due and
unpaid, to prosecute any such action or proceedings to judgment or final decree, to enforce any
such judgment or final decree against Mortgagor and to collect, in any manner provided by law, all
moneys adjudged or decreed to be payable.

     SECTION 2.03. Rights To Take Possession, Operate and Apply Revenues. (a) If an Event
of Default shall occur and be continuing, Mortgagor shall, upon demand of Mortgagee, forthwith
surrender to Mortgagee actual possession of the Mortgaged Property and, if and to the extent not
prohibited by applicable law, Mortgagee itself, or by such officers or agents as it may appoint,
may then enter and take possession of all the Mortgaged Property without the appointment of a
receiver or an application therefor, exclude Mortgagor and its agents and employees wholly
therefrom, and have access to the books, papers and accounts of Mortgagor.

     (b) If Mortgagor shall for any reason fail to surrender or deliver the Mortgaged Property or
any part thereof after such demand by Mortgagee, Mortgagee may to the extent not prohibited by
applicable law, obtain a judgment or decree conferring upon Mortgagee the right to immediate
possession or requiring Mortgagor to deliver immediate possession of the Mortgaged Property to
Mortgagee, to the entry of which judgment or decree Mortgagor hereby specifically consents.
Mortgagor will pay to Mortgagee, upon demand, all reasonable expenses of obtaining such judgment or
decree, including reasonable compensation to Mortgagee’s attorneys and agents with interest thereon
at the rate per annum applicable to overdue amounts under the Credit Agreement as provided in
Section 2.08(b) of the Credit Agreement (the “Interest Rate”); and all such expenses and
compensation shall, until paid, be secured by this Mortgage.

     (c) Upon every such entry or taking of possession, Mortgagee may, to the extent not
prohibited by applicable law, hold, store, use, operate, manage and control the Mortgaged Property,
conduct the business thereof and, from time to time, (i) make all necessary and proper maintenance,
repairs, renewals, replacements, additions, betterments and improvements thereto and thereon, (ii)
purchase or otherwise acquire additional fixtures, personalty and other property, (iii) insure or
keep the Mortgaged Property insured, (iv) manage and operate the Mortgaged Property and exercise
all the rights and powers of Mortgagor to the same extent as Mortgagor could in its own name or
otherwise with respect to the same, or (v) enter into any and all agreements with respect to the
exercise by others of any of the powers herein granted Mortgagee, all as may from time to time be
directed or determined by Mortgagee to be in its best interest and Mortgagor hereby appoints
Mortgagee as its true and lawful attorney-in-fact and agent, for Mortgagor and in its name, place
and stead, in any and all capacities, to perform any of the foregoing acts. Mortgagee may collect
and receive all the Rents, issues, profits and revenues from the Mortgaged Property, including
those past due as well as those accruing thereafter, and, after deducting (i) all

13

 

expenses of taking, holding, managing and operating the Mortgaged Property (including
compensation for the services of all persons employed for such purposes), (ii) the costs of all
such maintenance, repairs, renewals, replacements, additions, betterments, improvements, purchases
and acquisitions, (iii) the costs of insurance, (iv) such taxes, assessments and other similar
charges as Mortgagee may at its option pay, (v) other proper charges upon the Mortgaged Property or
any part thereof and (vi) the compensation, expenses and disbursements of the attorneys and agents
of Mortgagee, Mortgagee shall apply the remainder of the moneys and proceeds so received first to
the payment of the Mortgagee for the satisfaction of the Obligations, and second, if there is any
surplus, to Mortgagor, subject to the entitlement of others thereto under applicable law.

     (d) Whenever, before any sale of the Mortgaged Property under Section 2.06, all Obligations
that are then due shall have been paid and all Events of Default fully cured, Mortgagee will
surrender possession of the Mortgaged Property back to Mortgagor, its successors or assigns. The
same right of taking possession shall, however, arise again if any subsequent Event of Default
shall occur and be continuing.

     SECTION 2.04. Right To Cure Mortgagor’s Failure to Perform. Should Mortgagor fail in
the payment, performance or observance of any term, covenant or condition required by this Mortgage
or the Credit Agreement (with respect to the Mortgaged Property), Mortgagee may pay, perform or
observe the same, and all payments made or costs or expenses incurred by Mortgagee in connection
therewith shall be secured hereby and shall be, without demand, immediately repaid by Mortgagor to
Mortgagee with interest thereon at the Interest Rate. Mortgagee shall be the judge using
reasonable discretion of the necessity for any such actions and of the amounts to be paid.
Mortgagee is hereby empowered to enter and to authorize others to enter upon the Premises or the
Improvements or any part thereof for the purpose of performing or observing any such defaulted
term, covenant or condition without having any obligation to so perform or observe and without
thereby becoming liable to Mortgagor, to any person in possession holding under Mortgagor or to any
other person.

     SECTION 2.05. Right to a Receiver. If an Event of Default shall occur and be
continuing, Mortgagee, upon application to a court of competent jurisdiction, shall be entitled as
a matter of right to the appointment of a receiver to take possession of and to operate the
Mortgaged Property and to collect and apply the Rents. The receiver shall have all of the rights
and powers permitted under the laws of the state wherein the Mortgaged Property is located.
Mortgagor shall pay to Mortgagee upon demand all reasonable expenses, including receiver’s fees,
reasonable attorney’s fees and disbursements, costs and agent’s compensation incurred pursuant to
the provisions of this Section 2.05; and all such expenses shall be secured by this Mortgage and
shall be, without demand, immediately repaid by Mortgagor to Mortgagee with interest thereon at the
Interest Rate.

     SECTION 2.06. Foreclosure and Sale. (a) If an Event of Default shall occur and be
continuing, Mortgagee may elect to sell the Mortgaged Property or any part of the Mortgaged
Property by exercise of the power of foreclosure or of sale granted to Mortgagee by applicable law
or this Mortgage. In such case, Mortgagee may commence a civil action to foreclose this Mortgage,
or it may proceed and sell the Mortgaged Property to satisfy any Obligation. Mortgagee or an
officer appointed by a judgment of foreclosure to sell the

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Mortgaged Property, may sell all or such parts of the Mortgaged Property as may be chosen by
Mortgagee at the time and place of sale fixed by it in a notice of sale, either as a whole or in
separate lots, parcels or items as Mortgagee shall deem expedient, and in such order as it may
determine, at public auction to the highest bidder. Mortgagee or an officer appointed by a
judgment of foreclosure to sell the Mortgaged Property may postpone any foreclosure or other sale
of all or any portion of the Mortgaged Property by public announcement at such time and place of
sale, and from time to time thereafter may postpone such sale by public announcement or
subsequently noticed sale. Without further notice, Mortgagee or an officer appointed to sell the
Mortgaged Property may make such sale at the time fixed by the last postponement, or may, in its
discretion, give a new notice of sale. Any person, including Mortgagor or Mortgagee or any
designee or affiliate thereof, may purchase at such sale.

     (b) The Mortgaged Property may be sold subject to unpaid taxes and Permitted Encumbrances,
and, after deducting all costs, fees and expenses of Mortgagee (including costs of evidence of
title in connection with the sale), Mortgagee or an officer that makes any sale shall apply the
proceeds of sale in the manner set forth in Section 2.08.

     (c) Any foreclosure or other sale of less than the whole of the Mortgaged Property or any
defective or irregular sale made hereunder shall not exhaust the power of foreclosure or of sale
provided for herein; and subsequent sales may be made hereunder until the Obligations have been
satisfied, or the entirety of the Mortgaged Property has been sold.

     (d) If an Event of Default shall occur and be continuing, Mortgagee may instead of, or in
addition to, exercising the rights described in Section 2.06(a) above and either with or without
entry or taking possession as herein permitted, proceed by a suit or suits in law or in equity or
by any other appropriate proceeding or remedy (i) to specifically enforce payment of some or all of
the Obligations, or the performance of any term, covenant, condition or agreement of this Mortgage
or any other Loan Document or any other right, or (ii) to pursue any other remedy available to
Mortgagee, all as Mortgagee shall determine most effectual for such purposes.

     SECTION 2.07. Other Remedies. (a) In case an Event of Default shall occur and be
continuing, Mortgagee may also exercise, to the extent not prohibited by law, any or all of the
remedies available to a secured party under the UCC.

     (b) In connection with a sale of the Mortgaged Property or any Personal Property and the
application of the proceeds of sale as provided in Section 2.08, Mortgagee shall be entitled to
enforce payment of and to receive up to the principal amount of the Obligations, plus all other
charges, payments and costs due under this Mortgage, and to recover a deficiency judgment for any
portion of the aggregate principal amount of the Obligations remaining unpaid, with interest.

     SECTION 2.08. Application of Sale Proceeds and Rents. After any foreclosure sale of
all or any of the Mortgaged Property, Mortgagee shall receive and apply the proceeds of the sale
together with any Rents that may have been collected and any other sums that then may be held by
Mortgagee under this Mortgage as follows:

15

 

     First, to payment of that of all costs and expenses incurred by the Mortgagee
and Administrative Agent and the Collateral Agent (in their respective capacities as such
hereunder or under any other U.S. Loan Document) in connection with the collection, sale,
foreclosure or realization upon any Mortgaged Property or otherwise in connection with this
Mortgage, any other U.S. Loan Document or any of the U.S. Obligations, including all court
costs and the fees and expenses of its agents and legal counsel, the repayment of all
advances made by the Mortgagee, Administrative Agent and/or the Collateral Agent hereunder
or under any other U.S. Loan Document on behalf of Holdings or any U.S. Subsidiary
Guarantor and any other costs of expenses incurred in connection with the exercise of any
right or remedy hereunder or under any other U.S. Loan Document;

     Second, to payment in full of U.S. Unfunded Advances/Participations (the
amounts so applied to be distributed between or among the Administrative Agent, the U.S.
Swing Line Lender and the U.S. L/C Issuer pro rata in accordance with the amounts of U.S.
Unfunded Advances/Participations owed to them on the date of such distribution);

     Third, to payment in full of all other U.S. Obligations (the amounts so
applied to be distributed among the U.S. Secured Parties pro rata in accordance with the
amounts of the U.S. Obligations owed to them on the date of any such distribution);

     Fourth, to the Canadian Obligations in the order set forth in Section 8.03(b)
of the Credit Agreement;

     Fifth, as provided for under the Intercreditor Agreement; and

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

The Mortgagee shall have absolute discretion as to the time of application of any such proceeds,
moneys or balances in accordance with this Mortgage. Upon any sale of the Mortgaged Property by
the Mortgagee (including pursuant to a power of sale granted by statute or under a judicial
proceeding), the receipt of the Mortgagee or of the officer making the sale shall be a sufficient
discharge to the purchaser or purchasers of the Mortgaged Property so sold and such purchaser or
purchasers shall not be obligated to see to the application of any part of the purchase money paid
over to the Mortgagee or such officer or be answerable in any way for the misapplication thereof.

     SECTION 2.09. Mortgagor as Tenant Holding Over. If Mortgagor remains in possession of
any of the Mortgaged Property after any foreclosure sale by Mortgagee, at Mortgagee’s election
Mortgagor shall be deemed a tenant holding over and shall forthwith surrender possession to the
purchaser or purchasers at such sale or be summarily dispossessed or evicted according to
provisions of law applicable to tenants holding over.

     SECTION 2.10. Waiver of Appraisement, Valuation, Stay, Extension and Redemption Laws.
Mortgagor waives, to the extent not prohibited by law, (i) the benefit of all laws now existing or
that hereafter may be enacted (x) providing for any appraisement or

16

 

valuation of any portion of the Mortgaged Property and/or (y) in any way extending the time
for the enforcement or the collection of amounts due under any of the Obligations or creating or
extending a period of redemption from any sale made in collecting said debt or any other amounts
due Mortgagee, (ii) any right to at any time insist upon, plead, claim or take the benefit or
advantage of any law now or hereafter in force providing for any homestead exemption, stay, statute
of limitations, extension or redemption, or sale of the Mortgaged Property as separate tracts,
units or estates or as a single parcel in the event of foreclosure or notice of deficiency, and
(iii) all rights of redemption, valuation, appraisement, stay of execution, notice of election to
mature or declare due the whole of or each of the Obligations and marshaling in the event of
foreclosure of this Mortgage.

     SECTION 2.11. Discontinuance of Proceedings. In case Mortgagee shall proceed to
enforce any right, power or remedy under this Mortgage by foreclosure, entry or otherwise, and such
proceedings shall be discontinued or abandoned for any reason, or shall be determined adversely to
Mortgagee, then and in every such case Mortgagor and Mortgagee shall be restored to their former
positions and rights hereunder, and all rights, powers and remedies of Mortgagee shall continue as
if no such proceeding had been taken.

     SECTION 2.12. Suits To Protect the Mortgaged Property. Mortgagee shall have power (a)
to institute and maintain suits and proceedings to prevent any impairment of the Mortgaged Property
by any acts that may be unlawful or in violation of this Mortgage, (b) to preserve or protect its
interest in the Mortgaged Property and in the Rents arising therefrom and (c) to restrain the
enforcement of or compliance with any legislation or other governmental enactment, rule or order
that may be unconstitutional or otherwise invalid if the enforcement of or compliance with such
enactment, rule or order would impair the security or be prejudicial to the interest of Mortgagee
hereunder.

     SECTION 2.13. Filing Proofs of Claim. In case of any receivership, insolvency,
bankruptcy, reorganization, arrangement, adjustment, composition or other proceedings affecting
Mortgagor, Mortgagee shall, to the extent permitted by law, be entitled to file such proofs of
claim and other documents as may be necessary or advisable in order to have the claims of Mortgagee
allowed in such proceedings for the Obligations secured by this Mortgage at the date of the
institution of such proceedings and for any interest accrued, late charges and additional interest
or other amounts due or that may become due and payable hereunder after such date.

     SECTION 2.14. Possession by Mortgagee. Notwithstanding the appointment of any
receiver, liquidator or trustee of Mortgagor, any of its property or the Mortgaged Property,
Mortgagee shall be entitled, to the extent not prohibited by law, to remain in possession and
control of all parts of the Mortgaged Property now or hereafter granted under this Mortgage to
Mortgagee in accordance with the terms hereof and applicable law.

     SECTION 2.15. Waiver. (a) No delay or failure by Mortgagee to exercise any right,
power or remedy accruing upon any breach or Event of Default shall exhaust or impair any such
right, power or remedy or be construed to be a waiver of any such breach or Event of Default or
acquiescence therein; and every right, power and remedy given by this Mortgage to Mortgagee may be
exercised from time to time and as often as may be deemed expedient

17

 

by Mortgagee. No consent or waiver by Mortgagee to or of any breach or Event of Default by
Mortgagor in the performance of the Obligations shall be deemed or construed to be a consent or
waiver to or of any other breach or Event of Default in the performance of the same or of any other
Obligations by Mortgagor hereunder. No failure on the part of Mortgagee to complain of any act or
failure to act or to declare an Event of Default, irrespective of how long such failure continues,
shall constitute a waiver by Mortgagee of its rights hereunder or impair any rights, powers or
remedies consequent on any future Event of Default by Mortgagor.

     (b) Even if Mortgagee (i) grants some forbearance or an extension of time for the payment of
any sums secured hereby, (ii) takes other or additional security for the payment of any sums
secured hereby, (iii) waives or does not exercise some right granted herein or under the Loan
Documents, (iv) releases a part of the Mortgaged Property from this Mortgage, (v) agrees to change
some of the terms, covenants, conditions or agreements of any of the Loan Documents, (vi) consents
to the filing of a map, plat or replat affecting the Premises, (vii) consents to the granting of an
easement or other right affecting the Premises or (viii) makes or consents to an agreement
subordinating Mortgagee’s lien on the Mortgaged Property hereunder; no such act or omission shall
preclude Mortgagee from exercising any other right, power or privilege herein granted or intended
to be granted in the event of any breach or Event of Default then made or of any subsequent
default; nor, except as otherwise expressly provided in an instrument executed by Mortgagee, shall
this Mortgage be altered thereby. In the event of the sale or transfer by operation of law or
otherwise of all or part of the Mortgaged Property, Mortgagee is hereby authorized and empowered to
deal with any vendee or transferee with reference to the Mortgaged Property secured hereby, or with
reference to any of the terms, covenants, conditions or agreements hereof, as fully and to the same
extent as it might deal with the original parties hereto and without in any way releasing or
discharging any liabilities, obligations or undertakings.

     SECTION 2.16. Waiver of Trial by Jury. To the fullest extent permitted by applicable
law, Mortgagor and Mortgagee each hereby irrevocably and unconditionally waive trial by jury in any
action, claim, suit or proceeding relating to this Mortgage and for any counterclaim brought
therein. Mortgagor hereby waives all rights to interpose any counterclaim in any suit brought by
Mortgagee hereunder and all rights to have any such suit consolidated with any separate suit,
action or proceeding.

     SECTION 2.17. Remedies Cumulative. No right, power or remedy conferred upon or
reserved to Mortgagee by this Mortgage is intended to be exclusive of any other right, power or
remedy, and each and every such right, power and remedy shall be cumulative and concurrent and in
addition to any other right, power and remedy given hereunder or now or hereafter existing at law
or in equity or by statute.

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ARTICLE III

Miscellaneous

     SECTION 3.01. Partial Invalidity. In the event any one or more of the provisions
contained in this Mortgage shall for any reason be held to be invalid, illegal or unenforceable in
any respect, such validity, illegality or unenforceability shall, at the option of Mortgagee, not
affect any other provision of this Mortgage, and this Mortgage shall be construed as if such
invalid, illegal or unenforceable provision had never been contained herein or therein.

     SECTION 3.02. Notices. All notices and communications hereunder shall be in writing
and given to Mortgagor in accordance with the terms of the Credit Agreement at the address set
forth on the first page of this Mortgage and to the Mortgagee as provided in the Credit Agreement.

     SECTION 3.03. Successors and Assigns. All of the grants, covenants, terms, provisions
and conditions herein shall run with the Premises and the Improvements and shall apply to, bind and
inure to, the benefit of the permitted successors and assigns of Mortgagor and the successors and
assigns of Mortgagee.

     SECTION 3.04. Satisfaction and Cancelation. (a) The conveyance to Mortgagee of the
Mortgaged Property as security created and consummated by this Mortgage shall be null and void when
(i) the termination of the Aggregate Commitments and payment in full of all Obligations (other than
(A) contingent indemnification obligations and (B) obligations and liabilities under Secured Cash
Management Agreements and Secured Hedge Agreements as to which arrangements satisfactory to the
applicable Cash Management Bank or Hedge Bank shall have been made) and (ii) the expiration or
termination of all Letters of Credit (other than Letters of Credit as to which other arrangements
satisfactory to the Collateral Agent and the applicable L/C Issuer shall have been made).

     (b) Upon any sale, transfer or other disposition of any Mortgaged Property permitted by, and
in accordance with, the terms of the Loan Documents, or upon the effectiveness of any consent to
the release of the security interest granted hereby in any Mortgagd Property pursuant to Section
9.10 of the Credit Agreement, or upon the release of Mortgagor from its obligations under the U.S.
Guaranty, if any, in accordance with the terms of the Loan Documents, the Mortgagee will, at
Mortgagor’s expense, execute and deliver to Mortgagor such documents as Mortgagor shall reasonably
request to evidence the release of such Mortgaged Property from the Lien and security interest
granted hereby; provided, however, that (i) at the time of such request and such release no Default
shall have occurred and be continuing and (ii) Mortgagor shall have delivered to the Collateral
Agent, at least ten Business Days prior to the date of the proposed release, a written request for
release describing the Mortgaged Property and the terms of the sale, transfer or other disposition
in reasonable detail, including, without limitation, the price thereof and any expenses in
connection therewith, together with a form of release for execution by the Mortgagee and a
certificate of Mortgagor to the effect that the transaction is in compliance with the Loan
Documents and as to such other matters as the Mortgagee may request and (iii) the proceeds of any
such sale, lease, transfer or other disposition required to be applied, or any payment to

19

 

be made in connection therewith, in accordance with Section 2.05 of the Credit Agreement
shall, to the extent so required, be paid or made to, or in accordance with the instructions of,
the Mortgagee when and as required under Section 2.05 of the Credit Agreement.

     (c) In connection with any termination or release pursuant to paragraph (a) or (b) above, the
Mortgagee shall promptly execute and deliver to Mortgagor, at Mortgagor’s expense, all such
documents that Mortgagor shall reasonably request to evidence such termination or release, or at
Mortgagor’s reasonable request, to implement an assignment of such Mortgage. Any execution and
delivery of documents pursuant to this Section 3.04 shall be without recourse to or representation
or warranty by the Mortgagee or any Secured Party. Without limiting the provisions of Section 3.05
of the U.S. Guaranty, the Borrowers shall reimburse the Mortgagee upon demand for all costs and out
of pocket expenses, including the fees, charges and expenses of counsel, incurred by it in
connection with any action contemplated by this Section 3.04.

     SECTION 3.05 Definitions. As used in this Mortgage, the singular shall include the
plural as the context requires and the following words and phrases shall have the following
meanings: (a) “including” shall mean “including but not limited to”; (b) “provisions” shall mean
“provisions, terms, covenants and/or conditions”; (c) “lien” shall mean “lien, charge, encumbrance,
security interest, mortgage or deed of trust”; (d) “obligation” shall mean “obligation, duty,
covenant and/or condition”; and (e) “any of the Mortgaged Property” shall mean “the Mortgaged
Property or any part thereof or interest therein”. Any act that Mortgagee is permitted to perform
hereunder may be performed at any time and from time to time by Mortgagee or any person or entity
designated by Mortgagee. Any act that is prohibited to Mortgagor hereunder is also prohibited to
all lessees of any of the Mortgaged Property. Each appointment of Mortgagee as attorney-in-fact
for Mortgagor under the Mortgage is irrevocable, with power of substitution and coupled with an
interest. Subject to the applicable provisions hereof, Mortgagee has the right to refuse to grant
its consent, approval or acceptance or to indicate its satisfaction, in its sole discretion,
whenever such consent, approval, acceptance or satisfaction is required hereunder.

     SECTION 3.06. Multisite Real Estate Transaction. Mortgagor acknowledges that this
Mortgage is one of a number of Other Mortgages and Security Documents that secure the Obligations.
Mortgagor agrees that the lien of this Mortgage shall be absolute and unconditional and shall not
in any manner be affected or impaired by any acts or omissions whatsoever of Mortgagee, and without
limiting the generality of the foregoing, the lien hereof shall not be impaired by any acceptance
by the Mortgagee of any security for or guarantees of any of the Obligations hereby secured, or by
any failure, neglect or omission on the part of Mortgagee to realize upon or protect any Obligation
or indebtedness hereby secured or any collateral security therefor including the Other Mortgages
and other Security Documents. The lien hereof shall not in any manner be impaired or affected by
any release (except as to the property released), sale, pledge, surrender, compromise, settlement,
renewal, extension, indulgence, alteration, changing, modification or disposition of any of the
Obligations secured or of any of the collateral security therefor, including the Other Mortgages
and other Security Documents or of any guarantee thereof, and Mortgagee may at its discretion
foreclose, exercise any power of sale, or exercise any other remedy available to it under any or
all of the Other Mortgages and other Security Documents without first

20

 

exercising or enforcing any of its rights and remedies hereunder. Such exercise of
Mortgagee’s rights and remedies under any or all of the Other Mortgages and other Security
Documents shall not in any manner impair the indebtedness hereby secured or the lien of this
Mortgage and any exercise of the rights or remedies of Mortgagee hereunder shall not impair the
lien of any of the Other Mortgages and other Security Documents or any of Mortgagee’s rights and
remedies thereunder. Mortgagor specifically consents and agrees that Mortgagee may exercise its
rights and remedies hereunder and under the Other Mortgages and other Security Documents separately
or concurrently and in any order that it may deem appropriate and waives any rights of subrogation.

     SECTION
3.07. No Oral Modification. This Mortgage may not be changed or terminated
orally. Any agreement made by Mortgagor and Mortgagee after the date of this Mortgage relating to
this Mortgage shall be superior to the rights of the holder of any intervening or subordinate
Mortgage, lien or encumbrance.

     SECTION 3.08. Intercreditor Agreement. Reference is made to the Lien Subordination
and Intercreditor Agreement dated as of June 9, 2008, among General Electric Capital Corporation,
as Collateral Agent for the Revolving Facility Secured Parties referred to therein, U.S. Bank
National Association, as Trustee and as Noteholder Collateral Agent, Ply Gem Holdings, Inc., Ply
Gem Industries, Inc. and the subsidiaries of Ply Gem Industries, Inc. named therein (the
“Intercreditor Agreement”). Notwithstanding any other provision contained herein, this Mortgage,
the Liens created hereby and the rights, remedies, duties and obligations provided for herein are
subject in all respects to the provisions of the Intercreditor Agreement and, to the extent
provided therein, the applicable Senior Secured Obligations Security Documents (as defined in the
Intercreditor Agreement). In the event of any conflict or inconsistency between the provisions of
this Mortgage and the Intercreditor Agreement, the provisions of the Intercreditor Agreement shall
control.

ARTICLE IV

Particular Provisions

     This Mortgage is subject to the following provisions relating to the particular laws of the
state wherein the Premises are located:

     SECTION 4.01. Applicable Law; Certain Particular Provisions. This Mortgage shall be
governed by and construed in accordance with the internal law of the state where the Mortgaged
Property is located, except that Mortgagor expressly acknowledges that by their terms, the Credit
Agreement and other Loan Documents (aside from those Other Mortgages to be recorded outside New
York) shall be governed by the internal law of the State of New York, without regard to principles
of conflict of law. Mortgagor and Mortgagee agree to submit to jurisdiction and the laying of
venue for any suit on this Mortgage in the state where the Mortgaged Property is located. The
terms and provisions set forth in Appendix A attached hereto are hereby incorporated by reference
as though fully set forth herein. In the

21

 

event of any conflict between the terms and provisions contained in the body of this Mortgage
and the terms and provisions set forth in Appendix A, the terms and provisions set forth in
Appendix A shall govern and control.

ARTICLE V

[insert in leasehold mortgage:

Subject Lease

     SECTION 5.01. The Subject Lease. (a) The Subject Lease is a valid and subsisting
lease of that portion of the Premises demised thereunder for the term therein set forth, is in full
force and effect in accordance with the terms thereof, and has not been modified except as
expressly set forth herein. No material default exists by Mortgagor, or to Mortgagor’s knowledge,
by the lessor, and to the best knowledge of Mortgagor, no event or act has occurred and no
condition exists which with the passage of time or the giving of notice or both would constitute a
default, under the Subject Lease by Mortgagor, or to Mortgagor’s knowledge, by the lessor.

          (b) Without the prior written consent of Mortgagee, Mortgagor will not modify, amend, or in
any way alter the terms of the Subject Lease if such modification, amendment or alteration would
increase the monetary obligations of the Mortgagor under the Subject Lease in any material respect
or otherwise be adverse in any material respect to the interests of Mortgagee or the value of the
Mortgaged Property. Except to the extent permitted under the Credit Agreement, without the prior
written consent of Mortgagee, Mortgagor will not (i) in any way cancel, release, terminate,
surrender or reduce the term of the Subject Lease, (ii) fail to exercise any option to renew or
extend the term of the Subject Lease, (iii) waive, excuse, condone or in any way release or
discharge the lessor under the Subject Lease of or from the obligations, covenants, conditions and
agreements by said lessor to be done and performed and (iv) consent to the subordination of the
Subject Lease to any mortgage. Any attempt on the part of Mortgagor to do any of the foregoing
without such written consent of Mortgagee shall be null and void and of no effect and shall
constitute a Default hereunder.

          (c) Mortgagor shall at all times promptly and faithfully keep and perform in all material
respects, or cause to be kept and performed in all material respects, all the covenants and
conditions contained in the Subject Lease by the lessee therein to be kept and performed and shall
in all material respects conform to and comply with the terms and conditions of the Subject Lease
and Mortgagor further covenants that it will not do or permit anything to be done, the doing of
which, or refrain from doing anything, the omission of which, will impair the security of this
Mortgage or will be reason for declaring a default under the Subject Lease.

          (d) Mortgagor shall give Mortgagee prompt notice in writing of any default on the part of the
lessor under the Subject Lease or of the receipt by Mortgagor of any notice

22

 

of default from the lessor thereunder by providing to Mortgagee a copy of any such notice
received by Mortgagor from such lessor and this shall be done without regard to the fact that
Mortgagee may be entitled to such notice directly from the lessor. Mortgagor shall promptly notify
Mortgagee of any default under the Subject Lease by lessor or giving of any notice by the lessor to
Mortgagor of such lessor’s intention to end the term thereof. Mortgagor shall furnish to Mortgagee
promptly upon Mortgagee’s request any and all information concerning the performance by Mortgagor
of the covenants of the Subject Lease and shall permit Mortgagee or its representative at all
reasonable times, upon reasonable notice, to make investigation or examination concerning the
performance by Mortgagor of the covenants of the Subject Lease. Mortgagor shall deposit with
Mortgagee an exact copy of any notice, communication, plan, specification or other instrument or
document received or given by Mortgagor in any way relating to or affecting the Subject Lease which
may concern or affect the estate of the lessor or the lessee in or under the Subject Lease or the
property leased thereby.

          (e) Notwithstanding any other provision of this Mortgage, Mortgagee may (but shall not be
obligated to) take any such action Mortgagee deems necessary or desirable to cure, in whole or in
part, any failure of compliance by Mortgagor under the Subject Lease; and upon the receipt by
Mortgagee from Mortgagor or the lessor under the Subject Lease of any written notice of default by
Mortgagor as the lessee thereunder, Mortgagor may rely thereon, and such notice shall constitute
full authority and protection to Mortgagee for any action taken or omitted to be taken in good
faith reliance thereon. All sums, including reasonable attorneys’ fees, so expended by the
Mortgagee to cure or prevent any such default, or expended to sustain the lien of this Mortgage or
its priority, shall be deemed secured by this Mortgage and shall be paid by the Mortgagor on
demand, with interest accruing thereon at the Interest Rate. Mortgagor hereby expressly grants to
Mortgagee (subject to the terms of the Subject Lease), and agrees that Mortgagee shall have, the
absolute and immediate right to enter in and upon the Land and the Improvements or any part thereof
to such extent and as often as Mortgagee, in its discretion, deems necessary or desirable in order
to cure any such default or alleged default by Mortgagor.

          (f) Upon the occurrence and continuance of any Event of Default, all options, election,
consents and approval rights conferred upon Mortgagor as lessee under the Subject Lease, together
with the right of termination, cancelation, modification, change, supplement, alteration or
amendment of the Subject Lease, all of which have been assigned for collateral purposes to
Mortgagee, shall automatically vest exclusively in and be exercisable solely by Mortgagee.

          (g) Mortgagor will give Mortgagee prompt written notice of the commencement of any
arbitration or appraisal proceeding under and pursuant to the provisions of the Subject Lease.
Following the occurrence and during the continuance of an Event of Default, Mortgagee shall have
the right, but not the obligation, to intervene and participate in any such proceeding and
Mortgagor shall confer with Mortgagee to the extent which Mortgagee deems necessary for the
protection of Mortgagee. Mortgagor may compromise any dispute or approval which is the subject of
an arbitration or appraisal proceeding with the prior written consent of Mortgagee which approval
will not be unreasonably withheld or delayed.

23

 

          (h) So long as this Mortgage is in effect, there shall be no merger of the Subject Lease or
any interest therein, or of the leasehold estate created thereby, with the fee estate in the Land
or any portion thereof by reason of the fact that the Subject Lease or such interest therein may be
held directly or indirectly by or for the account of any person who shall hold the lessor’s fee
estate in the Land or any portion thereof or any interest of the lessor under the Subject Lease.
In case the Mortgagor acquires fee title to the Land, this Mortgage shall attach to and cover and
be a lien upon the fee title acquired, and such fee title shall, without further assignment,
mortgage or conveyance, become and be subject to the lien of and covered by this Mortgage.
Mortgagor shall notify Mortgagee of any such acquisition and, on written request by Mortgagee,
shall cause to be executed and recorded all such other and further assurances or other instruments
in writing as may in the reasonable opinion of Mortgagee be necessary or appropriate to effect the
intent and meaning hereof and shall deliver to Mortgagee an endorsement to Mortgagee’s loan title
insurance policy insuring that such fee title or other estate is subject to the lien of this
Mortgage.

          (i) If any action or proceeding shall be instituted to evict Mortgagor or to recover
possession of any leasehold parcel or any part thereof or interest therein or any action or
proceeding otherwise affecting the Subject Lease or this Mortgage shall be instituted, then
Mortgagor will, immediately upon service thereof on or to Mortgagor, deliver to Mortgagee a notice
of motion, order to show cause and of all other provisions, pleadings, and papers, however
designated, served in any such action or proceeding.

          (j) The lien of this Mortgage shall attach to all of Mortgagor’s rights and remedies at any
time arising under or pursuant to Subsection 365(h) of the Bankruptcy Code, 11 U.S.C. 365(h), as
the same may hereafter be amended (the “Bankruptcy Code”), including, without limitation, all of
Mortgagor’s rights to remain in possession of each leasehold parcel.

          (k) Mortgagor hereby unconditionally assigns, transfers and sets over to Mortgagee all of
Mortgagor’s claims and rights to the payment of damages arising from any rejection of the Subject
Lease by the lessor or any other fee owner of any leasehold parcel or any portion thereof under the
Bankruptcy Code. Mortgagee shall have the right to proceed in its own name or in the name of
Mortgagor in respect of any claim, suit, action or proceeding relating to the rejection of the
Subject Lease, including, without limitation, the right to file and prosecute, without joining or
the joinder of Mortgagor, any proofs of claim, complaints, motions, applications, notices and other
documents, in any case with respect to the lessor or any fee owner of all or a portion of any
leasehold parcel under the Bankruptcy Code. This assignment constitutes a present, irrevocable and
unconditional assignment of the foregoing claims, rights and remedies, and shall continue in effect
until all of the Obligations shall have been satisfied and discharged in full. Any amounts
received by Mortgagee as damages arising out of the rejection of the Subject Lease as aforesaid
shall be applied first to all costs and expenses of Mortgagee (including, without limitation,
reasonable attorneys’ fees) incurred in connection with the exercise of any of its rights or
remedies under this paragraph. Mortgagor shall promptly make, execute, acknowledge and deliver, in
form and substance satisfactory to Mortgagee, a UCC financing statement (Form UCC-1) and all such
additional instruments, agreements and other documents, as may at any time hereafter be required by
Mortgagee to effectuate and carry out the assignment pursuant to this paragraph.

24

 

          (l) If pursuant to Subsection 365(h)(2) of the Bankruptcy Code, 11 U.S.C. § 365(h)(2),
Mortgagor shall seek to offset against the rent reserved in the Subject Lease the amount of any
damages caused by the nonperformance by the lessor or any fee owner of any of their respective
obligations under such Subject Lease after the rejection by the lessor or any fee owner of such
Subject Lease under the Bankruptcy Code, then Mortgagor shall, prior to effecting such offset,
notify Mortgagee of its intent to do so, setting forth the amount proposed to be so offset and the
basis therefor. Mortgagee shall have the right to object to all or any part of such offset that,
in the reasonable judgment of Mortgagee, would constitute a breach of such Subject Lease, and in
the event of such objection, Mortgagor shall not effect any offset of the amounts so objected to by
Mortgagee. Neither Mortgagee’s failure to object as aforesaid nor any objection relating to such
offset shall constitute an approval of any such offset by Mortgagee.

          (m) If any action, proceeding, motion or notice shall be commenced or filed in respect of the
lessor or any fee owner of any leasehold parcel, or any portion thereof or interest therein, or the
Subject Lease in connection with any case under the Bankruptcy Code, then Mortgagee shall have the
option, exercisable upon written notice from Mortgagee to Mortgagor, to conduct and control any
such litigation with counsel of Mortgagee’s choice. Mortgagee may proceed in its own name or in
the name of Mortgagor in connection with any such litigation, and Mortgagor agrees to execute any
and all powers, authorizations, consents or other documents required by Mortgagee in connection
therewith. Mortgagor shall, upon demand, pay to Mortgagee all reasonable costs and expenses
(including attorneys’ fees) paid or incurred by Mortgagee in connection with the prosecution or
conduct of any such proceedings. Mortgagor shall not commence any action, suit, proceeding or
case, or file any application or make any motion, in respect of the Subject Lease in any such case
under Bankruptcy Code without the prior written consent of Mortgagee.

          (n) Mortgagor shall, after obtaining knowledge thereof, promptly notify Mortgagee of any
filing by or against the lessor or fee owner of any leasehold parcel of a petition under the
Bankruptcy Code. Mortgagor shall promptly deliver to Mortgagee, following receipt, copies of any
and all notices, summonses, pleadings, applications and other documents received by Mortgagor in
connection with any such petition and any proceedings relating thereto.

          (o) If there shall be filed by or against Mortgagor a petition under the Bankruptcy Code and
Mortgagor, as lessee under a Subject Lease, shall determine to reject such Subject Lease pursuant
to Section 365(a) of the Bankruptcy Code, then Mortgagor shall give Mortgagee not less than twenty
days’ prior notice of the date on which Mortgagor shall apply to the Bankruptcy Court for authority
to reject such Subject Lease. Mortgagee shall have the right, but not the obligation, to serve
upon Mortgagor within such twenty day period a notice stating that Mortgagee demands that Mortgagor
assume and assign such Subject Lease to Mortgagee pursuant to Section 365 of the Bankruptcy Code.
If Mortgagee shall serve upon Mortgagor the notice described in the preceding sentence, Mortgagor
shall not seek to reject such Subject Lease and shall comply with the demand provided for in the
preceding sentence.

25

 

          (p) Effective upon the entry of an order for relief with respect to Mortgagor under the
Bankruptcy Code, Mortgagor hereby assigns and transfers to Mortgagee a non-exclusive right to apply
to the Bankruptcy Court under subsection 365(d)(4) of the Bankruptcy Code for an order extending
the period during which the Subject Lease may be rejected or assumed.]

26

 

          IN WITNESS WHEREOF, this Mortgage has been duly executed and delivered to Mortgagee by
Mortgagor on the date of the acknowledgment attached hereto.

	 	 	 	 	 
	 	[MORTGAGOR], a [•],

 	 
	 	     by:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Attest:

	 	 	 	 	 

	by:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

[Corporate Seal]

27

 

Exhibit A

to Mortgage

Description of the Land

 

 

Exhibit B

to Mortgage

[Description of Subject Lease]

 

 

EXHIBIT I

FORM OF

INTERCOMPANY NOTE

                    ,                      
[•], 200[•]                    

          Each of the parties identified on the signature page(s) hereto (each a “Note Party”) hereby
promises to pay, on demand, to the order of each applicable Obligee (as defined below), in lawful
money of [the United States of America][Canada], at such location in [the United States of
America][Canada] as the applicable Obligee shall from time to time designate, all amounts as may be
owing from time to time by each such Note Party (in such capacity, an “Obligor”) to each other Note
Party (in such capacity, an “Obligee”) in respect of Indebtedness (as such term is defined in the
Credit Agreement dated June 9, 2008 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the “Credit Agreement”) dated as of June 9, 2008 among Ply
Gem Industries, Inc. a Delaware corporation (the “Specified U.S. Borrower”), CWD Windows and Doors,
Inc., (the “Canadian Borrower”), Ply Gem Holdings, Inc., a Delaware corporation, the Subsidiaries
of the Borrower from time to time party thereto, the Lenders parties thereto, Credit Suisse, as
Administrative Agent, U.S. Swing Line Lender and U.S. L/C Issuer, General Electric Capital
Corporation, as Collateral Agent, Credit Suisse, Toronto Branch, as Canadian Swing Line Lender and
Canadian L/C Issuer, and Credit Suisse Securities (USA) LLC, as Sole Lead Arranger and Sole
Bookrunner), together with interest thereon at such rate as may be agreed upon from time to time.
Capitalized terms used herein and not otherwise defined herein have the meanings specified in the
Credit Agreement.

          Each Obligor promises to pay interest on the unpaid principal amount of any Indebtedness
evidenced hereby until paid at such rate per annum as shall be agreed upon from time to time by
each applicable Obligor and Obligee.

          Each Obligee is hereby authorized to record all amounts owing by the Obligors to such Obligee,
all of which shall be evidenced by this Note, and all repayments thereof, in its books and records
in according with its usual practice, such books and records constituting prima facie evidence of
the accuracy of the information contained therein; provided, however, that the failure of
any Obligee to record such information shall not affect any Obligor’s obligations.

          Each Obligor hereby waives diligence, presentment, demand, protest or notice of any kind in
connection with this Note. All payments under this Note shall be made without offset, counterclaim
or deduction of any kind.

          No amendment, modification or waiver of, or consent with respect to, any provision of this
Note shall in any event be effective against any Note Party unless the same shall be in writing and
signed and delivered by such Note Party. This Note shall be construed as a separate agreement with
respect to each Note Party and may be amended, modified, supplemented, waived or released with
respect to any Note Party without the approval of any Note Party and without affecting the
obligations of any Note Party hereunder.

          This Note may be pledged by any of the Note Parties to secure the payment and performance of
obligations of such Note Party to any person or entity (each such person or entity, a “Secured
Party”). Each Note Party hereby acknowledges and agrees that any Secured Party may, pursuant to
such agreement as in effect between any Note Party and any Secured Party from time to time,
exercise all rights provided in such agreements with respect to this Note.

 

 

EXHIBIT I

          THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

	 	 	 	 	 
	 	 	 
	 	By  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT J-1

June 9, 2008

To the Lenders party to the

  Credit Agreement referred to below,

  Credit Suisse, as Agent and

  General Electric Capital Corporation, as Collateral Agent

Ladies and Gentlemen:

          We have acted as special counsel to Ply Gem Industries, Inc., a Delaware corporation (the
“U.S. Borrower”), Ply Gem Holdings, Inc., a Delaware corporation (the “Parent
Guarantor”), CWD Windows and Doors, Inc., a Canadian corporation (the “Canadian
Borrower”; and together with the U.S. Borrower, the “Borrowers”) and each subsidiary of
the U.S. Borrower the name and jurisdiction of organization of which are set forth on
Schedule 1 to this letter (the “Subsidiaries” and, together with the U.S. Borrower,
the Parent Guarantor, and the Canadian Borrower, the “Principal Parties”), in connection
with the Credit Agreement (the “Credit Agreement”), dated as of June 9, 2008, among the
Borrowers, the financial institutions listed on the signature pages of the Credit Agreement (the
“Lenders”), Credit Suisse, as Administrative Agent (the “Agent”), and General
Electric Capital Corporation, as collateral agent (the “Collateral Agent”). This opinion
is being furnished to you at the request of the Borrowers as provided by Section 4.01(a)(xi) of the
Credit Agreement. Capitalized terms used and not otherwise defined have the respective meanings
given those terms in the Credit Agreement.
In connection with this opinion, we have examined originals, or copies certified or otherwise
identified to our satisfaction, of the following documents, each dated as of the date of this
letter except as otherwise noted (collectively, the “Documents”):

	 	1.	 	the Credit Agreement;

 

 

	 	2.	 	the Notes issued on the date hereof;
	 
	 	3.	 	the U.S. Guaranty;
	 
	 	4.	 	the U.S. Security Agreement (the “Security
Agreement”);
	 
	 	5.	 	the U.S. Intellectual Property Security Agreement
(“IP Security Agreement”); and
	 
	 	6.	 	the Lien Subordination and Intercreditor Agreement

          In addition, we have examined: (i) those corporate or limited liability company records of
the Principal Parties organized under the laws of Delaware (collectively, the “Delaware
Parties”) that we have considered appropriate, including copies of the certificate of
incorporation and by-laws or certificate of formation and limited liability company agreement of
each Delaware Party certified by it as in effect on the date of this letter (collectively, the
“Charter Documents”) and copies of resolutions of the board of directors or members of each
Delaware Party certified by it; and (ii) those other certificates, agreements and documents that we
deemed relevant and necessary as a basis for our opinion. We have also relied upon the factual
matters contained in the representations and warranties of the Principal Parties made in the
Documents and upon certificates of public officials and the Principal Parties.

In our examination of the documents referred to above, we have assumed, without independent
investigation, the genuineness of all signatures, the legal capacity of all individuals who have
executed any of the documents reviewed by us, the authenticity of all documents submitted to us as
originals, the conformity to the originals of all documents submitted to us as certified,
photostatic, reproduced or conformed copies of valid existing agreements or other documents, the
authenticity of the latter documents

2

 

and that the statements regarding matters of fact in the certificates, records, agreements,
instruments and documents that we have examined are accurate and complete. We have also assumed,
without independent investigation, the enforceability of the Documents against each party other
than the Principal Parties.

          In addition, in the case of each Principal Party which is not a Delaware Party, we have
assumed, without independent investigation, that (i) the Principal Party is validly existing and in
good standing under the laws of its jurisdiction of organization, (ii) the Principal Party has all
necessary corporate or partnership power and authority to execute, deliver and perform its
obligations under each Document to which it is a party, (iii) the execution, delivery and
performance of each Document have been duly authorized by all necessary corporate or partnership
action and do not violate its charter or other organizational documents or the laws of its
jurisdiction of organization and (iv) each Document has been duly executed and delivered by it
under the laws of its jurisdiction of organization.

          Whenever we indicate that our opinion is based upon our knowledge or words of similar import,
our opinion is based solely on the actual knowledge of the attorneys in this firm who are
representing the U.S. Borrower in connection with the Credit Agreement and without any independent
verification or investigation.

          Based upon the foregoing, and subject to the assumptions, exceptions and qualifications stated
below, we are of the opinion that:

          1. Each of the Delaware Parties which is a Delaware corporation is validly existing and in
good standing under the laws of the State of Delaware. Each of

3

 

the Delaware Parties which is a limited liability company is duly formed, validly existing and
in good standing under the laws of the State of Delaware.

          2. Each Delaware Party has all necessary corporate or limited liability company power and
authority to execute, deliver and perform its obligations under each Document to which it is a
party. The execution, delivery and performance by each Delaware Party of each Document to which it
is a party have been duly authorized by all necessary corporate or limited liability company action
on the part of the Delaware Party and do not violate its Charter Documents.

          3. Each Document has been duly executed and delivered by each Principal Party which is a party
to it. Each Document constitutes the legal, valid and binding obligation of each Principal Party
which is a party to it, enforceable against that Principal Party in accordance with its terms.

          4. The execution and delivery by each Principal Party of each of the Documents to which it is
a party and the performance by the Principal Party of its obligations under the Documents do not
(i) violate any Covered Law (as defined below) (including Regulations U or X of the Board of
Governors of the Federal Reserve System of the United States), (ii) violate any order, writ,
injunction or decree of which we have knowledge of any court or governmental authority or agency
binding upon the Principal Party or to which the Principal Party is subject, (iii) breach or result
in a default under any agreement or instrument listed on Schedule 2 to which the Principal
Party is a party or by which the Principal Party is bound, or (iv) result in the creation or
imposition of any Lien upon any of the assets of the Principal Party under the terms of any such
agreement

4

 

or instrument (except for Liens in favor of the Collateral Agent for the benefit of the
Secured Parties contemplated by the Documents).

          5. Except for filings which are necessary to perfect the security interests granted under the
Documents and any other filings, authorizations or approvals as are specifically provided for in
the Documents, no authorizations or approvals of, and no filings with, any governmental or
regulatory authority or agency are necessary under any Covered Law for the execution, delivery or
performance by any Principal Party of the Documents to which it is a party.

          6. None of the Principal Parties is required to be registered as an “investment company”
within the meaning of the Investment Company Act of 1940, as amended.

          7. After giving effect to the Loans on the date of this letter, and assuming that US Bank
Trust National Association, as bailee for the Collateral Agent, has, at the date of this letter,
possession of the certificates representing the capital stock of the U.S. Borrower and certain of
its Subsidiaries described on Schedule 3 to this letter (the “Pledged Stock”) in
the State of New York, together with related stock powers which have been duly executed in blank by
the applicable Borrower or Guarantor that own the Pledged Stock, and maintains continuous
possession of the Pledged Stock and stock powers in the State of New York, the Collateral Agent has
a valid and perfected security interest, for the benefit of the Secured Parties, to secure the
Obligations (as defined in the Security Agreement), in all right, title and interest of the U.S.
Borrower and the applicable Guarantors in and to the Pledged Stock (the “Pledged Stock Security
Interest”).

5

 

          8. After giving effect to the making of the Loans on the date of this letter, the Security
Agreement creates a valid security interest in favor of the Collateral Agent, for the benefit of
the Lenders and the Collateral Agent, to secure the Obligations (as defined in the Security
Agreement), in all right, title and interest of the Borrowers, the Parent Guarantor and the
Subsidiaries (the “Debtors”) in and to the Collateral (as defined in the Security
Agreement), to the extent that Article 9 of the Uniform Commercial Code of the State of New York
(the “NY-UCC”) is applicable (the “Security Interest”). For each Debtor that is a
corporation or limited liability company organized under the laws of the State of Delaware (the
“DE Debtors”), the UCC-1 financing statements attached hereto as Schedule 4 to this
letter (the “Principal Financing Statements”) are in appropriate form for filing. For the
DE Debtors, the Office of the Secretary of State of the State of Delaware is the office in the
State of Delaware in which filings are required to perfect the Security Interest to the extent that
it can be perfected by filing under the Uniform Commercial Code of the State of Delaware (the
“DE-UCC”). Assuming the Principal Financing Statements have been duly transmitted for
filing to the Office of the Secretary of State of the State of Delaware, with the appropriate
filing fees tendered, or duly accepted for filing by that Office, then to the extent that a
security interest in the Collateral may be perfected by filing under the DE-UCC, those filings have
resulted in the perfection of the Security Interest.

          9. After giving effect to the making of the Loans on the date of this letter, the Security
Agreement creates a valid security interest in favor of the Collateral Agent, for the benefit of
the Secured Parties, to secure the Obligations (as defined in the Credit Agreement), in all right,
title and interest of the Debtors in and to the registered

6

 

U.S. trademarks, the registration numbers of which are listed in Schedule B to the Security
Agreement (the “Trademark Collateral”), the U.S. patents, the patent numbers of which are
listed in Schedule A to the Security Agreement (the “Patent Collateral”), and the
registered U.S. copyrights, the registration numbers of which are listed on Schedule C to the
Security Agreement (the “Copyright Collateral” and, together with the Trademark Collateral
and the Patent Collateral, the “IP Collateral”), to the extent that Article 9 of the NY-UCC
is applicable, assuming that each trademark, patent and copyright that comprises the IP Collateral
is valid and is owned by the relevant Debtor (the “IP Security Interest”).

          10. For each Debtor that is a corporation, limited liability company or limited partnership
organized in the United States, assuming that (i) the Security Agreement creates a valid security
interest in favor of the Collateral Agent, for the benefit of the Secured Parties, to secure the
Obligations (as defined in the Security Agreement) in the IP Collateral (as hereinafter defined),
and assuming that the IP Security Interest is a perfected security interest under the laws of the
States in which each Debtor is organized, to the extent that such law governs the perfection of a
security interest in the IP Collateral, (ii) in the case of the Trademark Collateral, the
registration of each trademark has been duly effected and maintained in the United States Patent
and Trademark Office (the “PTO”) under Title 15 of the United States Code, (iii) in the
case of the Patent Collateral, the term of each patent has been duly maintained by timely payment
to the PTO of applicable maintenance fees under Title 35 of the United States Code, (iv) in the
case of the Copyright Collateral, the registration of each copyright has been duly effected and
maintained in the copyright office of the United States Library of

7

 

Congress (the “Copyright Office”) under Title 17 of the United States Code, and (v)
the IP Security Agreement is duly acknowledged by the Debtors and properly filed with and recorded
by the PTO (or the Copyright Office, in the case of the Copyright Collateral), and payment is made
of the required filing fees and charges, within three months (or one month in the case of the
Copyright Collateral) after the date of their execution, the IP Security Interest will be a
perfected security interest.

          This opinion is subject to the following assumptions, exceptions and qualifications:

          (a) The enforceability of the Documents may be: (i) subject to bankruptcy, insolvency,
reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’
rights generally; (ii) subject to general principles of equity (regardless of whether
enforceability is considered in a proceeding at law or in equity); and (iii) subject to the
qualification that certain remedial provisions of the Security Agreement, are or may be
unenforceable in whole or in part under the laws of the State of New York, but the inclusion of
such provisions does not make the remedies afforded by the Security Agreement inadequate for the
practical realization of the rights and benefits purported to be provided by the Security Agreement
except for the economic consequences resulting from any delay imposed by, or any procedure required
by, applicable New York laws, rules, regulations and court decisions and by constitutional
requirements in and of the State of New York.

          (b) We express no opinion as to: (i) the enforceability of the Guaranty purporting to
preserve and maintain the liability of any party to the Guaranty despite the fact that the
guarantied debt is unenforceable due to illegality; (ii) the enforceability of

8

 

any provisions contained in the Documents that purport to establish (or may be construed to
establish) evidentiary standards; (iii) the enforceability of any provisions contained in the
Security Agreement or the Guaranty that constitute waivers which are prohibited under Section 9-602
of the NY-UCC; (iv) the enforceability of forum selection clauses in the federal courts; or (v)
Section 10.19 of the Credit Agreement to the extent not consistent with Section 27(b) of the New
York Judiciary Law.

          (c) With respect to paragraphs 7 through 10, we express no opinion as to: (i) any Principal
Party’s right, title or interest in or to any Collateral; (ii) except as specifically set forth in
paragraph 10, the perfection and effect of perfection or non-perfection of a security interest in
the Collateral to the extent subject to any laws other than the laws of the State of New York or
the DE-UCC; (iii) the perfection of security interests in fixtures, as-extracted collateral, timber
to be cut and ownership interests in real property cooperative organizations; (iv) the creation,
validity, perfection (except as specifically set forth in paragraph 10), priority or enforceability
of any security interest sought to be created in any items of property to the extent that a
security interest in them is excluded from the coverage of Article 9 of the NY-UCC or the DE-UCC;
or (v) the validity, priority or enforceability of the trademarks, patents and copyrights that
comprise the IP Collateral. In addition, (x) except as specifically set forth in paragraphs 7, 8
and 10, above, we express no opinion as to the perfection of any security interest and (y) we
express no opinion as to the priority of any security interest.

          (d) We wish to point out that in the case of proceeds (as defined in Article 9 of the DE-UCC),
the continuation of perfection of any security interest in them is limited to the extent set forth
in Section 9-315 of the DE-UCC.

9

 

          (e) We call to your attention the fact that (i) Article 9 of the DE-UCC requires the filing of
continuation statements within the period of six months prior to the expiration of each five year
period from the date of the original filing of financing statements in order to maintain the
effectiveness of the filings referred to in this opinion, and (ii) additional filings may be
necessary if any Debtor changes its name, identity or corporate structure or the jurisdiction in
which it is organized.

          This opinion is limited to the laws of the State of New York, the General Corporation Law of
the State of Delaware, the Limited Liability Company Act of the State of Delaware, the Uniform
Commercial Code of the State of Delaware and the federal laws of the United States of America that,
in each case, in our experience, are normally applicable to credit transactions of the type
contemplated by the Credit Agreement (collectively, the “Covered Laws”). This opinion is
rendered only with respect to the laws, and the rules, regulations and orders under those laws,
that are currently in effect. Please be advised that no member of this firm is admitted to
practice in the State of Delaware.

          This opinion is furnished by us solely for your benefit in connection with the transactions
referred to in the Credit Agreement and may not be circulated to, or relied upon by, any other
Person, except that it may be circulated to any prospective Lender in accordance with the Credit
Agreement and may be relied upon by any person who, in the future, becomes a Lender.

	 	 	 

	 

	 	Very truly yours,
	 
	 	 
	 

	 	PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP

10

 

SCHEDULE 1

SUBSIDIARIES WHICH ARE

PRINCIPAL PARTIES

	 	 	 	 	 
	 	 	 	 	Jurisdiction of
	Name of Subsidiary	 	Type of Entity	 	Organization_
	Great Lakes Window, Inc.

	 	Corporation
	 	Ohio
	Kroy Building Products, Inc.

	 	Corporation
	 	Delaware
	Napco, Inc.

	 	Corporation
	 	Delaware
	Variform, Inc.

	 	Corporation
	 	Missouri
	MWM Holding, Inc.

	 	Corporation
	 	Delaware
	MW Manufacturers Inc.

	 	Corporation
	 	Delaware
	AWC Holding Company

	 	Corporation
	 	Delaware
	Alenco Holding Corporation

	 	Corporation
	 	Delaware
	AWC Arizona, Inc.

	 	Corporation
	 	Delaware
	Alenco Interests, L.L.C.

	 	Limited Liability Company
	 	Delaware
	Alenco Extrusion Management, L.L.C.

	 	Limited Liability Company
	 	Delaware
	Alenco Building Products Management, L.L.C.

	 	Limited Liability Company
	 	Delaware
	Alenco Trans, Inc.

	 	Corporation
	 	Delaware
	Glazing Industries Management, L.L.C.

	 	Limited Liability Company
	 	Delaware
	New Alenco Extrusion, Ltd.

	 	Limited Partnership
	 	Texas
	New Alenco Window, Ltd.

	 	Limited Partnership
	 	Texas
	New Glazing Industries, Ltd.

	 	Limited Partnership
	 	Texas
	Alenco Extrusion GA, L.L.C.

	 	Limited Liability Company
	 	Delaware
	Aluminum Scrap Recycle, L.L.C.

	 	Limited Liability Company
	 	Delaware
	Alenco Window GA, L.L.C.

	 	Limited Liability Company
	 	Delaware
	Alcoa Home Exteriors, Inc.

	 	Corporation
	 	Ohio
	Ply Gem Pacific Windows Corporation

	 	Corporation
	 	Delaware

11

 

SCHEDULE 2

AGREEMENTS AND INSTRUMENTS

	1.	 	Indenture, dated as of June 9, 2008, among US Bank Trust National Association, as trustee,
the U.S. Borrower, as issuer, and the Principal Parties which are parties thereto.

	2.	 	Indenture, dated as of February 12, 2004 as supplemented on August 27, 2004, among U.S. Bank
National Association, as trustee, the U.S. Borrower, as issuer, and the Principal Parties
which are parties thereto.

12

 

SCHEDULE 3

PLEDGED STOCK

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Certificate	 	No. Shares/
	Issuer	 	Record Owner	 	No.	 	Interest
	Ply Gem Industries, Inc.

	 	Ply Gem Holdings, Inc.
	 	 3
	 	100 shares of

Common Stock

	Great Lakes Window, Inc.

	 	Ply Gem Industries, Inc.
	 	 2
	 	 	100	 
	Alcoa Home Exteriors, Inc.

	 	Ply Gem Industries, Inc.
	 	 49
	 	275 shares of

Common Stock

	Kroy Building Products, Inc.

	 	Ply Gem Industries, Inc.
	 	 001
	 	 	100	 
	Napco, Inc.

	 	Ply Gem Industries, Inc.
	 	 2
	 	 	20	 
	Variform, Inc.

	 	Ply Gem Industries, Inc.
	 	 24
	 	2,732 shares of

Common Stock

	CWD Windows and Doors, Inc.

	 	Ply Gem Industries, Inc.
	 	 C-2
	 	 	130	 
	MWM Holding, Inc.

	 	Ply Gem Industries, Inc.
	 	 C-1
	 	10,000 shares of

Common Stock

	AWC Holding Company

	 	Ply Gem Industries, Inc.
	 	 A-35
	 	16,286.81 shares 

of Class A 

Stock Common

	Ply Gem Pacific Windows 

Corporation

	 	Ply Gem Industries, Inc.
	 	 C-2
	 	 	100	 
	AWC Arizona, Inc

	 	Alenco Holding Corporation
	 	 1
	 	 	100	 
	Alenco Trans, Inc.

	 	Alenco Holding Corporation
	 	 3
	 	 	1000	 
	Alenco Holding Corporation

	 	AWC Holding Company
	 	 312
	 	 	100	 
	MW Manufacturers Inc.

	 	MWM Holding, Inc.
	 	 1
	 	 	1,000	 

13

 

SCHEDULE 4

PRINCIPAL FINANCING STATEMENTS

[See attached.]

14

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A.NAME & PHONE OF
CONTACT AT FILER [optional] UCC Filings800-828-0938 B.SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207 THE ABOVE SPACE IS FOR
FILING OFFICE USE ONLY 1.DEBTOR’S EXACT FULL LEGAL NAME-insertonl/anfidebtornamo(1aor 1b)-do
notabbreviateorcombinenames 1a. ORGANIZATION’S NAME PLY GEM HOLDINGS, INC.___OR 1 b. INDIVIDUAL’S
LASTNAMEl FIRST NAMEI MIDDLE NAMEI SUFFIX 1 c. MAILING ADDRESSCITYSTATE I POSTAL CODECOUNTRY 500
PARK AVENUE, FLOOR 8NEW YORKNY 10022 Id. SEE INSTRUCTIONSIADD1 INFO RE he. TYPEOF ORGANIZATION1f.
JURISDICTION OF ORGANIZATION1 g. ORGANIZATIONAL ID #. if any 1 gSST1“11 CorporationDelawareQ^
2.ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME ¦ insert only ene debtor nama (2a of 2b) — do not
abbreviate or combine names 2a. ORGANIZATION’S NAME 0R 2b. INDIVIDUAL’S LAST NAMEI FIRST
NAMEIMIDDLE NAME| SUFFIX 2c. MAILING ADDRESSCÏTYSTATE I POSTAL CODECOUNTRY 2d SEE INSTRUCTIONSI
ADD’L INFO RE 12e. TYPE OF ORGANIZATION2f. JURISDICTION OF ORGANIZATION2g. ORGANIZATIONAL ID #. it
any ORGANIZATION | DEBTOR|[ NONE 3.SECURED PARTYS NAME (or NAME oHOTALASSIGNEEol ASSIGNOR
S<P).insertonlyorje, secured party name (3a or 3b) 3a. ORGANIZATION’S NAME GENERAL ELECTRIC
CAPITAL CORPORATION, AS COLLATERAL AGENT OP,^ 3B. INDIVIDUAL’S LAST NAMEFIRST NAMEMIDDLE NAMESUFFIX
3C. M AILING ADDRESS CJTYSTATE IPOSTAL CODECOUNTRY ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W.
rUinATCiIFf.(\(.6\ MONROE ST., 16TH FLOORUlUAUU IL,OUDOI 4.This FINANCING STATEMENT covers the
following collateral: ALL ASSETS 5.ALTERNATIVE DESIGNATION inapplicable]:
LESSEE/LESSORICONSIGNEBCONSIGNOR | BAILEE/BAILOR |~ SELLER/BUYER |3 AG. LIEN HNQN-UCCFILING 6.f-]
T” ^NANCING STVTEMENT it to be dim ïro77ëcörö^7ö77êcö7deö7irnhe7SEïr""^T7^nêïn I I ESTATE RECORDS
Attach AddendumM anolicabtel I fADDITlnNAI FEE1l/ODtionallI JAII Oebtors | |Debtor1| |Debtor2 8.
OPTIONAL FILER REFERENCE DATAF#225955 2164-440 — DE — Secretary of StateA#338547 FILING OFFICE COPY
— UCC FINANCING STATEMENT (FORM UCC1) (REV. 05/22/02)

 

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A.NAME & PHONE OF CONTACT
AT FILER [optional] UCC Filings800-828-0938 B.SEND ACKNOWLEDGMENT TO: (Name and Address)
[National Corporate ResearchI 41 State Street, Suite 600 Albany, NY 12207 LJ
^___^^___lil___^_^^^_^^^^^^^___THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1.DEBTOR’SEXACTFULLLEGALNAME’insertonlyoilfidebtomame(1aor1b)-donotabbreviateorcombinenames 1a.
ORGANIZATION’S NAME PLY GEM INDUSTRIES, INC. OR 1b. INDIVIDUAL’S LAST NAMEI FIRST NAMEI MIDDLE
NAMEI SUFFIX 1 c. MAILING ADDRESSCITYSTATE I POSTAL CODECOUNTRY 5020 WESTON PARKWAY, SUITE
400CARYNC |27513 1d. SEE INSTRUCTIONSI ADD’L INFO RE 11 e. TYPE OF ORGANIZATION11. JURISDICTION
OF ORGANIZATION1g. ORGANIZATIONAL ID #, it any IggiSr10” | Corporation^elaware,Q^ 2.ADDITIONAL
DEBTOR’S EXACT FULL LEGAL NAME — insert only ans debtor name (2a Of 2b) — do not abbreviate or
combine names 2a. ORGANIZATION’S NAME f«3. 2b. INDIVIDUAL’S LAST NAMEI FIRST NAMEMIDDLE
NAMESUFFIX 2c. MAILING ADDRESSCÎTYSTATE I POSTAL CODECOUNTRY 2d. SEE INSTRUCTIONSI ADD’L INFO RE
12». TYPE OF ORGANIZATION2f. JURISDICTION OF ORGANIZATION2g. ORGANIZATIONAL ID #. if any
ORGANIZATION I DEBTOR|||flNONE 3.SECURED PARTYS NAME
(orNAMEofTOTALASSIGNEEolASSlONORSrP)-insertonly rag secured party narn»(3a or 3b) 3a.
ORGANIZATIONS NAME GENERAL ELECTRIC CAPITAL CORPORATION, AS COLLATERAL AGENT Qp ,,___3b.
INDIVIDUAL’S LAST NAMEFIRST NAMEIMIDDLENAMESUFFIX 3c. MAILING ADDRESSCTTYSTATE IPOSTAL
CODECOUNTRY ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W. ruIrArnIT/cn^i MONROE ST.. 16TH
FLOORIHHAUUILOUOOl 4.This FINANCING STATEMENT covers the following collateral: ALL ASSETS
5.ALTERNATIVE DESIGNATION \jtapplicable)! ILESSEE/LESSOR [~| CONSIGNEE/CONSIGNOR | IBAILEBBAILOR
M SELLER/BUYER |~1AG. LIEN [___NON-UCC FILING “ërn’î’ls FINANCING STATEMENT is to be filed [tor
record] (or rerordedîrnttiëTSËÂL I 7 Check to REQUEST SEARCH REPORT(S) on Oebtor(s) r~|.
TTTM“n^^^TT L L ,, I IFSTATFRFCOROS Atfnh Addendum[if applicable! I “ADDITIONAL FEE!fontionanI I
All Debtors [| Debtor 1 | |Debtor 2 8. OPTIONAL FILER REFERENCE DATAF#225956 2164-440 — DE -
Secretary of StateA#338548 FILING OFFICE COPY — UCC FINANCING STATEMENT (FORM UCC1) (REV.
05/22/02)

 

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A.NAME & PHONE OF CONTACT
AT FILER [optional] UCC Filings800-828-0938 B.SEND ACKNOWLEDGMENT TO: (Name and Address)
        .National Corporate ResearchI 41 State Street, Suite 600 Albany, NY 12207 LJ
___^^_^___^^^___^___^^___THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY 1.DEBTOR’S EXACT
FULL LEGAL NAME-insertonlyoi)e.debtorname (1a or1b)-donotabbreviateorcamb.nenames 1a.
ORGANIZATIONS NAME KROY BUILDING PRODUCTS, INC. OR 1 b. INDIVIDUAL’S LAST NAME[FIRST NAME[MIDDLE
NAME(SUFFIX 1c. MAILING ADDRESSCITYSTATE [POSTAL CODECOUNTRY 2600 GRAND BLVD., SUITE 900KANSAS
CITYMO 64108 1d. SEE INSTRUCTIONS| ADD’L INFO RE |1e. TYPE OF ORGANIZATION1f. JURISDICTION OF
ORGANIZATION1g. ORGANIZATIONAL ID #, if any ISr0” |CorporationDelaware,Q^ 2.ADDITIONAL DEBTOR’S
EXACT FULL LEGAL NAME — insert only one debtor name (2a or 2b) — do not abbreviate or combina
names 2a. ORGANIZATION’S NAME (-)D.___2b. INDIVIDUAL’S LAST NAME[FIRST NAME[MIDDLE NAME[SUFFIX
2c. MAILING ADDRESSCITYSTATE [POSTAL CODECOUNTRY 2d. SEE INSTRUCTIONSI ADD’L INFO RE 12e. TYPE
OF ORGANIZATION2t. JURISDICTION OF ORGANIZATION2g. ORGANIZATIONAL ID #, if any ORGANIZATION |
DEBTOR|||QNONE 3.SECURED PARTY’S NAME (or NAME olTOTAL ASSIGNEE of ASSIGNOR S/P)-insert only om
secured party name (3a Of 3b) 3a. ORGANIZATION’S NAME GENERAL ELECTRIC CAPITAL CORPORATION, AS
COLLATERAL AGENT Qp ^_,. 3b. INDIVIDUAL’S LAST NAMEFIRST NAMEMIDDLE NAMESUFFIX 3c. MAILING
ADDRESS CITY STATE IPOSTAL CODE COUNTRY ATTN: ACCOUNT MANAGER PLV GEM INDUSTRIES, 500 W.
fui^Ai-n ir £f\&(.ï — MONROE ST., I6TH FLOORL-HH-AUUILOUOOl 4.This FINANCING STATEMENT covers
the following collateral: ALL ASSETS 5.ALTERNATIVE DESIGNATION [il’applicable]:|~lLESSEEfl.ESSOR
[""[cONSIGNEE/CONSIGNOR I .BAILEE/BAILOR flsELLER/BUYER HAG. LIEN |~|NQN-UCCFILING
TITTTRSTINANCING STATEMENT is to be filed /tor record! (or recorded) in the REAL 17. Check to
REQUEST SEARCH REPORT(S) on Debtor(s) “PiTM"-~~TLT^ P~L . U ESTATE RECORDS Attach Add^mW
applicable I IASDITIONAI FEE1.optional!LI All Debtor. | | Debtor 1 |_|Debtor 2 8. OPTIONAL FILER
REFERENCE DATAF#225958 2164-440 — DE — Secretary of StateA#338550 FILING OFFICE COPY — UCC
FINANCING STATEMENT (FORM UCC1) (REV. 05/22/02)

 

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A.NAME & PHONE OF CONTACT
AT FILER [optional] UCC Filings800-828-0938 B.SEND ACKNOWLEDGMENT TO: (Name and Address)
        .National Corporate Research 41 State Street, Suite 600 Albany, NY 12207 LJ
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY 1.DEBTOR’S
EXACT FULL LEGAL NAME- insert onlyojie. debtor name (1aoMb)-donot abbreviate orcombinenames 1a.
ORGANIZATIONS NAME NAPCO, INC. OR 1 b. INDIVIDUAL’S LAST NAMEI FIRST NAMEIMIDDLE NAMEJ SUFFIX 1
c. MAILING ADDRESSCÎTYSTATE | POSTAL CODECOUNTRY 2600 GRAND BLVD., SUITE 900KANSAS CITYMO 64108
1d SEE INSTRUCTIONSI ADD’L INFO RE 11e. TYPE OF ORGANIZATION1(. JURISDICTION OF ORGANIZATION1j.
ORGANIZATIONAL ID*, if any ferTM | Corporation|Delaware(Q^ 2.ADDITIONAL DEBTOR’S EXACT FULL LEGAL
NAME — insert only ffle, debtor name (2a or 2b) ¦ do not abbreviate or combine names 2a.
ORGANIZATION’S NAME /~\p, 2b. INDIVIDUAL’S LAST NAMEI FIRST NAMEIMIDDLE NAMEJ SUFFIX 2c. MAILING
ADDRESSCÏÏYSTATE I POSTAL CODECOUNTRY 2d. SEE INSTRUCTIONSI ADD’L INFO RE 12e. TYPE OF
ORGANIZATION2f. JURISDICTION OF ORGANIZATION2g. ORGANIZATIONAL ID #, if any ORGANIZATION
[DEBTOR|||| )NONE 3.SECURED PARTYS NAME (or NAMEofTOTALASSIGNEE of ASSIGNOR S/P)-insert only
ofle secured partyname (3a or3b) 3a. ORGANIZATION’S NAME GENERAL ELECTRIC CAPITAL CORPORATION,
AS COLLATERAL AGENT OR 11, 3b. INDIVIDUAL’S LAST NAMEFIRST NAMEMIDDLE NAMESUFFIX 3c. MAILING
ADDRESS CTFY STATE IPOSTAL CODE COUNTRY ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W. PUIOAPA
II f.(\f.d\ — MONROE ST., I6TH FLOORtHILAUUILQUOD I 4.This FINANCING STATEMENT covers the
following collateral: ALL ASSETS 5.ALTERNATIVE DESIGNATION [if applicable]: 7|lESSEE/LESSOR
|~|CONSIGNEE/CONSIGNOR T IBAILEBBAILOR HsELLERfBUYER |AG. LIEN [~ NQN-UCC FILING 6.r~l This
FINANCING STATEMENT is to be filed [for record] (or recorded) In the REAL I 7. Check to REQUEST
SEARCH REPORT(S) on Debtor(s) fl ‘ t Pli Ù * IHr. .. -I IFSTATE RECORDS. Attach Addendumfif
applicable! I CADDITIONAt FgElfontionaflI I All Debtors I I Debtor 1| | Debtor 2 8. OPTIONAL
FILER REFERENCE DATAF#225959 2164-440 — DE — Secretary of StateA#338 551 FILING OFFICE COPY —
UCC FINANCING STATEMENT (FORM UCC1) (REV. 05/22/02)

 

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A.NAME & PHONE OF
CONTACTAT FILER [optional] UCC Filings800-828-0938 B.SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207 LJ
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^THE ABOVE SPACE IS FOR FIUNG OFFICE USE ONLY 1.DEBTOR’S EXACT
FULL LEGAL NAME- insert onlyanfi debtor name (1aor1b)-donotabbreviateorcambine names 1a.
ORGANIZATION’S NAME MWM HOLDING, INC. OR 1b. INDIVIDUAL’S LAST NAMEI FIRST NAMEIMIDDLE
NAMEISUFFIX 1c. MAILING ADDRESSCITYSTATE I POSTAL CODECOUNTRY 433 NORTH MAIN STREETROCKY MOUNTVA
24151 Id. SEE INSTRUCTIONSI ADD’L INFO RE 11». TYPE OF ORGANIZATION1f. JURISDICTION OF
ORGANIZATION1 g. ORGANIZATIONAL ID #, if any IggiSrTM |Corporationpelaware,Q^ 2.ADDITIONAL DE
BTOR’S EXACT FULL LEGAL NAME — insert only apt debtor name (2a or 2b) — do not abbreviate or
combine names 2a. ORGANIZATION’S NAME 0R 2b. INDIVIDUAL’S LAST NAMEI FIRST NAMEIMIDDLE
NAME[SUFFIX 2c MAILING ADDRESSCITYSTATE I POSTAL CODECOUNTRY 2d. SEE INSTRUCTIONSI ADD’L INFO RE
12e. TYPE OF ORGANIZATION21. JURISDICTION OF ORGANIZATION2g. ORGANIZATIONAL ID#, if any
ORGANIZATION._, | DEBTOR|||I I NONE 3.SECURED PARTVS NAME (orNAMEofTOTAL ASSIGNEE of ASSIGNOR
S/PHnsert only am secured party nam»(3a or 3b) 3a. ORGANIZATION’S NAME GENERAL ELECTRIC CAPITAL
CORPORATION, AS COLLATERAL AGENT no..,,___, 3b. INDIVIDUAL’S LAST NAMEFIRST NAMEMIDDLE NAMESUFFIX
3c. MAILING ADDRESS CÏÏY STATE IPOSTAL CODECOUNTRY ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500
W. PUIfArn II /rn^i — MONROE ST., 16TH FLOORLH1LAUUIL |OUOOI| 4.This FINANCING STATEMENT covers
the following collateral: ALL ASSETS 5.ALTERNATIVE DESIGNATION pf applicable): HLESSEEAESSOR | |
CONSIGNEE/CONSIGNOR [“IBAILEBBAILQR [~j SELLER/BUYER T^ AG. LIEN LlNON-UCC FILING “oTn^u^WANaNG
STATEMENT is to be filed [for record) (or recorded) in tile REAL I 7 Check to REQUEST
SCAT5CT7R“EPORT(S) on Debtor(s) r~|~~OT^ I “L t ,, I 1ESTATE RECORDS A«»ch Artd.nHumfrf
applicable! I lADDrnoNAL FEE1foPtionall|J All Debtors U Debtor 1 LjD°°t°r2 8. OPTIONAL FILER
REFERENCE DATAF# 2 2 5 9 61 2164-440 — DE — Secretary of StateA#338553 FILING OFFICE COPY — UCC
FINANCING STATEMENT (FORM UCC1) (REV. 05/22/02)

 

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A.NAME 4 PHONE OF CONTACT
AT FILER [optional) UCC Filings800-828-0938 B.SEND ACKNOWLEDGMENT TO: (Name and Address)
iNational Corporate Research 41 State Street, Suite 600 Albany, NY 12207 LJ
___^^^_^___^___^_^___^_^^___^^___THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY 1.DEBTOR’S EXACT
FULL LEGAL NAME- insert only fine debtornama(1aor1b)-do not abbreviateorcombinenames 1a.
ORGANIZATION’S NAME MW MANUFACTURERS INC. 0R 1 b. INDIVIDUAL’S LAST NAMEI FIRST NAME[MIDDLE
NAMEI SUFFIX 1c. MAILING ADDRESSCITYSTATE I POSTAL CODECOUNTRY 433 NORTH MAIN STREETROCKY
MOUNTVA 24151 1d. SEF INSTRUCTIONSI ADD’L INFO RE 11e, TYPE OF ORGANIZATION1f. JURISDICTION OF
ORGANIZATION1g. ORGANIZATIONAL ID tt, if any I^^NIZATION | corp0rationpelawarejQ^ 2.ADDITIONAL
DEBTOR’S EXACT FULL LEGAL NAME — insert only ens debtor name (2a or 2b) — do not abbreviate or
combine names 2a. ORGANIZATION’S NAME no,,___., 2b. INDIVIDUAL’S LAST NAMEI FIRST NAMEIMIDDLE
NAMEI SUFFIX 2c. MAILING ADDRESSCÎTYSTATE I POSTAL CODECOUNTRY 2d. SEEINSTRUCTtOMSI ADD’L INFO
RE 12e. TYPE OF ORGANIZATION2f. JURISDICTION OF ORGANIZATION2g. ORGANIZATIONAL ID #, if any
ORGANIZATION___I DEBTOR|||M NONE 3.SECURED PARTY’S NAME(orNAlv1EofTOTALASSIGNEEof ASSIGNOR
S/P)-in5ertonlyfing secured party name (3aor3b) 3a. ORGANIZATION’S NAME GENERAL ELECTRIC CAPITAL
CORPORATION, AS COLLATERAL AGENT OR1,, 3b. INDIVIDUAL’S LAST NAMEFIRST NAMEMIDDLE NAMESUFFIX 3c.
MAILING ADDRESS CITY STATE IPOSTAL CODE COUNTRY ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W.
ninn\rr\ II CC\C£\ — MONROE ST., I6TH FLOORIHHAOUILOUOOl A.This FINANCING STATEMENT covers the
following collateral’. ALL ASSETS 5. ALTERNATIVE DESIGNATION (If applicable]: LESSEE/LESSOR fl
CONSIGNEE/CONSIGNOR |~| BAILEE/BAILOR [ |SELLER/BUYER | AG. LIENNON-UCC FILING 6.1’
llniaHNANCINGSTATEMENTistobêTlSalroTTcordlforrecord^dTlnTrTREAL I 7. Check to REQUEST SEARCH
REPORT(S) on OoRôr(s)—rf ‘^TT~^TT^~~T U ESTATE RECORDS. Attach AddendumW apolicabl.! I
TAPPITIONAL FEE1foorjonallI I All Debtors | |Debtorl| |Debtor2 B.OPTIONAL FILER REFERENCE
DATAF#225963 2164-440 — DE — Secretary of StateA#338555 FILING OFFICE COPY — UCC FINANCING
STATEMENT (FORM UCC1) (REV. 05/22/02)

 

 

	UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
A. NAME & PHONE OF CONTACT AT FILER [optional]
UCC Filings 800-828-0938
B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207
L
I THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do not abbreviate or
commendams
1a. ORGANIZATION’S NAME
AWC HOLDING COMPANY
OR 1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX
1c. MAILING ADDRESS  •  CITY STATE            POSTAL CODE COUNTRY
615 CARSON STREET BRYAN TX 77801
1d SEE INSTRUCTIONS ADD’L IN FORE 1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g.
ORGANIZATIONAL 1D#, if any
ORGANIZATION Corporation Delaware nqne
2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME — insert only an debtor name (2a or 2b) — do not
abbreviate of combine names
2a. ORGANIZATION’S NAME
OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
2c. MAILING ADDRESS CITY STATE I POSTAL CODE COUNTRY
2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF ORGANIZATION 2g.
ORGANIZATIONAL ID #, If any
ORGANIZATION
[debtor            I none
3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an secured party
name (3a or 3b)
3a. ORGANIZATION’S NAME
GENERAL ELECTRIC CAPITAL CORPORATION, AS COLLATERAL AGENT
3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX
3c. MAILING ADDRESS
CITY
STATE (POSTAL CODE            COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
— MONROE ST., 16TH FLOOR CHICAGO IL 6066I
4. This FINANCING STATEMENT covers the following collateral:
ALL ASSETS

 

 

	UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
A. NAME & PHONE OF CONTACT AT FILER [optional]
UCC Filings 800-828-0938
B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207
L
I THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do not abbreviate or
commendams
1a. ORGANIZATION’S NAME
ALLENCO HOLDING CORPORATION
OR 1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX
1c. MAILING ADDRESS  •  CITY STATE            POSTAL CODE COUNTRY
615 CARSON STREET BRYAN TX 77801
1d SEE INSTRUCTIONS ADD’L IN FORE 1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g.
ORGANIZATIONAL 1D#, if any
ORGANIZATION Corporation Delaware nqne
2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME — insert only an debtor name (2a or 2b) — do not
abbreviate of combine names
2a. ORGANIZATION’S NAME
OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
2c. MAILING ADDRESS CITY STATE I POSTAL CODE COUNTRY
2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF ORGANIZATION 2g.
ORGANIZATIONAL ID #, If any
ORGANIZATION
[debtor            I none
3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an secured party
name (3a or 3b)
3a. ORGANIZATION’S NAME
GENERAL ELECTRIC CAPITAL CORPORATION, AS COLLATERAL AGENT
3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX
3c. MAILING ADDRESS
CITY
STATE (POSTAL CODE            COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
— MONROE ST., 16TH FLOOR CHICAGO IL 6066I
4. This FINANCING STATEMENT covers the following collateral:
ALL ASSETS

 

 

	UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
A. NAME & PHONE OF CONTACT AT FILER [optional]
UCC Filings 800-828-0938
B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207
L
I THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do not abbreviate or
commendams
1a. ORGANIZATION’S NAME
AWC ARIZONIA INC.
OR 1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX
1c. MAILING ADDRESS  •  CITY STATE            POSTAL CODE COUNTRY
3830 E. WEIR A VENUE PHOENIX AZ 58040
1d SEE INSTRUCTIONS ADD’L IN FORE 1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g.
ORGANIZATIONAL 1D#, if any
ORGANIZATION Corporation Delaware nqne
2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME — insert only an debtor name (2a or 2b) — do not
abbreviate of combine names
2a. ORGANIZATION’S NAME
OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
2c. MAILING ADDRESS CITY STATE I POSTAL CODE COUNTRY
2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF ORGANIZATION 2g.
ORGANIZATIONAL ID #, If any
ORGANIZATION
[debtor            I none
3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an secured party
name (3a or 3b)
3a. ORGANIZATION’S NAME
GENERAL ELECTRIC CAPITAL CORPORATION, AS COLLATERAL AGENT
3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX
3c. MAILING ADDRESS
CITY
STATE (POSTAL CODE            COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
— MONROE ST., 16TH FLOOR CHICAGO IL 6066I
4. This FINANCING STATEMENT covers the following collateral:
ALL ASSETS

 

 

	UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
A. NAME & PHONE OF CONTACT AT FILER [optional]
UCC Filings 800-828-0938
B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207
L
I THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do not abbreviate or
commendams
1a. ORGANIZATION’S NAME
ALENCO INTERESTS, L.L.C.
OR 1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX
1c. MAILING ADDRESS  •  CITY STATE            POSTAL CODE COUNTRY
615 CARSON STREET BRYAN TX 77801
1d SEE INSTRUCTIONS ADD’L IN FORE 1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g.
ORGANIZATIONAL 1D#, if any
ORGANIZATION Corporation Delaware nqne
2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME — insert only an debtor name (2a or 2b) — do not
abbreviate of combine names
2a. ORGANIZATION’S NAME
OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
2c. MAILING ADDRESS CITY STATE I POSTAL CODE COUNTRY
2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF ORGANIZATION 2g.
ORGANIZATIONAL ID #, If any
ORGANIZATION
[debtor            I none
3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an secured party
name (3a or 3b)
3a. ORGANIZATION’S NAME
GENERAL ELECTRIC CAPITAL CORPORATION, AS COLLATERAL AGENT
3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX
3c. MAILING ADDRESS
CITY
STATE (POSTAL CODE            COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
— MONROE ST., 16TH FLOOR CHICAGO IL 6066I
4. This FINANCING STATEMENT covers the following collateral:
ALL ASSETS

 

 

	UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
A. NAME & PHONE OF CONTACT AT FILER [optional]
UCC Filings 800-828-0938
B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207
L
I THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do not abbreviate or
commendams
1a. ORGANIZATION’S NAME
ALENCO EXTRUSION MANAGEMENT, L.L.C.
OR 1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX
1c. MAILING ADDRESS  •  CITY STATE            POSTAL CODE COUNTRY
615 CARSON STREET BRYAN TX 77801
1d SEE INSTRUCTIONS ADD’L IN FORE 1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g.
ORGANIZATIONAL 1D#, if any
ORGANIZATION Corporation Delaware nqne
2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME — insert only an debtor name (2a or 2b) — do not
abbreviate of combine names
2a. ORGANIZATION’S NAME
OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
2c. MAILING ADDRESS CITY STATE I POSTAL CODE COUNTRY
2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF ORGANIZATION 2g.
ORGANIZATIONAL ID #, If any
ORGANIZATION
[debtor            I none
3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an secured party
name (3a or 3b)
3a. ORGANIZATION’S NAME
GENERAL ELECTRIC CAPITAL CORPORATION, AS COLLATERAL AGENT
3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX
3c. MAILING ADDRESS
CITY
STATE (POSTAL CODE            COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
— MONROE ST., 16TH FLOOR CHICAGO IL 6066I
4. This FINANCING STATEMENT covers the following collateral:
ALL ASSETS

 

 

	UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
A. NAME & PHONE OF CONTACT AT FILER [optional]
UCC Filings 800-828-0938
B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207
L
I THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do not abbreviate or
commendams
1a. ORGANIZATION’S NAME
ALENCO BUILDING PRODUCTS MANAGEMENT, L.L.C.
OR 1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX
1c. MAILING ADDRESS  •  CITY STATE            POSTAL CODE COUNTRY
615 CARSON STREET BRYAN TX 77801
1d SEE INSTRUCTIONS ADD’L IN FORE 1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g.
ORGANIZATIONAL 1D#, if any
ORGANIZATION Corporation Delaware nqne
2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME — insert only an debtor name (2a or 2b) — do not
abbreviate of combine names
2a. ORGANIZATION’S NAME
OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
2c. MAILING ADDRESS CITY STATE I POSTAL CODE COUNTRY
2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF ORGANIZATION 2g.
ORGANIZATIONAL ID #, If any
ORGANIZATION
[debtor            I none
3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an secured party
name (3a or 3b)
3a. ORGANIZATION’S NAME
GENERAL ELECTRIC CAPITAL CORPORATION, AS COLLATERAL AGENT
3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX
3c. MAILING ADDRESS
CITY
STATE (POSTAL CODE            COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
— MONROE ST., 16TH FLOOR CHICAGO IL 6066I
4. This FINANCING STATEMENT covers the following collateral:
ALL ASSETS

 

 

	UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
A. NAME & PHONE OF CONTACT AT FILER [optional]
UCC Filings 800-828-0938
B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207
L
I THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do not abbreviate or
commendams
1a. ORGANIZATION’S NAME
GLAXZING INDUSTRIES MANAGEMENT, L.L.C.
OR 1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX
1c. MAILING ADDRESS  •  CITY STATE            POSTAL CODE COUNTRY
615 CARSON STREET BRYAN TX 77801
1d SEE INSTRUCTIONS ADD’L IN FORE 1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g.
ORGANIZATIONAL 1D#, if any
ORGANIZATION Corporation Delaware nqne
2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME — insert only an debtor name (2a or 2b) — do not
abbreviate of combine names
2a. ORGANIZATION’S NAME
OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
2c. MAILING ADDRESS CITY STATE I POSTAL CODE COUNTRY
2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF ORGANIZATION 2g.
ORGANIZATIONAL ID #, If any
ORGANIZATION
[debtor            I none
3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an secured party
name (3a or 3b)
3a. ORGANIZATION’S NAME
GENERAL ELECTRIC CAPITAL CORPORATION, AS COLLATERAL AGENT
3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX
3c. MAILING ADDRESS
CITY
STATE (POSTAL CODE            COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
— MONROE ST., 16TH FLOOR CHICAGO IL 6066I
4. This FINANCING STATEMENT covers the following collateral:
ALL ASSETS

 

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A. NAME & PHONE OF
CONTACT AT FILER [optional] UCC Filings 800-828-0938 B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207 L I THE ABOVE SPACE IS FOR
FILING OFFICE USE ONLY 1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do
not abbreviate or commendams 1a. ORGANIZATION’S NAME ALENCO TRANS INC,  OR  1b.
INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX 1c. MAILING ADDRESS  •  CITY STATE
POSTAL CODE COUNTRY 615 CARSON STREET BRYAN TX |77801 1d SEE INSTRUCTIONS ADD’L IN FORE 1e.
TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g. ORGANIZATIONAL 1D#, if any ORGANIZATION
Corporation Delaware |  nqne  2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME — insert only an
debtor name (2a or 2b) — do not abbreviate of combine names 2a. ORGANIZATION’S NAME OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 2c. MAILING ADDRESS CITY STATE I POSTAL
CODE COUNTRY 2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF
ORGANIZATION 2g. ORGANIZATIONAL ID #, If any ORGANIZATION  [debtor  I
 none  3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an
secured party name (3a or 3b) 3a. ORGANIZATION’S NAME GENERAL ELECTRIC CAPITAL CORPORATION, AS
COLLATERAL AGENT 3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX 3c. MAILING ADDRESS
CITY            STATE (POSTAL CODE
COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
—  MONROE ST., 16TH FLOOR CHICAGO |IL |6066I | 4. This FINANCING STATEMENT covers the
following collateral: ALL ASSETS

 

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A. NAME & PHONE OF CONTACT
AT FILER [optional] UCC Filings 800-828-0938 B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207 L I THE ABOVE SPACE IS FOR
FILING OFFICE USE ONLY 1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do
not abbreviate or commendams 1a. ORGANIZATION’S NAME            ALENCO EXTRUSION GA, LLC INC,
 OR  1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX 1c. MAILING ADDRESS  •  CITY
STATE            POSTAL CODE COUNTRY 315 DIVIDED DRIVE PEACHTREE CITY GA 30269 1d SEE INSTRUCTIONS
ADD’L IN FORE 1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g. ORGANIZATIONAL 1D#, if
any ORGANIZATION Corporation Delaware |  nqne  2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL
NAME — insert only an debtor name (2a or 2b) — do not abbreviate of combine names 2a.
ORGANIZATION’S NAME OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 2c. MAILING ADDRESS CITY STATE I POSTAL
CODE COUNTRY 2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF
ORGANIZATION 2g. ORGANIZATIONAL ID #, If any ORGANIZATION  [debtor  I
 none  3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an
secured party name (3a or 3b) 3a. ORGANIZATION’S NAME GENERAL ELECTRIC CAPITAL CORPORATION, AS
COLLATERAL AGENT 3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX 3c. MAILING ADDRESS
CITY            STATE (POSTAL CODE
COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
—  MONROE ST., 16TH FLOOR CHICAGO |IL |6066I | 4. This FINANCING STATEMENT covers the
following collateral: ALL ASSETS

 

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A. NAME & PHONE OF CONTACT
AT FILER [optional] UCC Filings 800-828-0938 B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207 L I THE ABOVE SPACE IS FOR
FILING OFFICE USE ONLY 1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do
not abbreviate or commendams 1a. ORGANIZATION’S NAME            ALUMINUM SCRAPE RECYCLE,
LLC OR  1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX 1c. MAILING ADDRESS  •
CITY STATE            POSTAL CODE COUNTRY 615 CARSON STREET BRYAN TX |77801 1d SEE INSTRUCTIONS
ADD’L IN FORE 1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g. ORGANIZATIONAL 1D#, if
any ORGANIZATION Corporation Delaware |  nqne  2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL
NAME — insert only an debtor name (2a or 2b) — do not abbreviate of combine names 2a.
ORGANIZATION’S NAME OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 2c. MAILING ADDRESS CITY STATE I POSTAL
CODE COUNTRY 2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF
ORGANIZATION 2g. ORGANIZATIONAL ID #, If any ORGANIZATION  [debtor  I
 none  3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an
secured party name (3a or 3b) 3a. ORGANIZATION’S NAME GENERAL ELECTRIC CAPITAL CORPORATION, AS
COLLATERAL AGENT 3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX 3c. MAILING ADDRESS
CITY            STATE (POSTAL CODE
COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
—  MONROE ST., 16TH FLOOR CHICAGO |IL |6066I | 4. This FINANCING STATEMENT covers the
following collateral: ALL ASSETS

 

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A. NAME & PHONE OF CONTACT
AT FILER [optional] UCC Filings 800-828-0938 B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207 L I THE ABOVE SPACE IS FOR
FILING OFFICE USE ONLY 1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do
not abbreviate or commendams 1a. ORGANIZATION’S NAME            ALENCO WINDOW GA, L.L.C.  OR
1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX 1c. MAILING ADDRESS  •  CITY STATE
POSTAL CODE COUNTRY 319 DIVIDED DRIVE PEACHTREE CITY GA 30269 1d SEE INSTRUCTIONS ADD’L IN FORE
1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g. ORGANIZATIONAL 1D#, if any ORGANIZATION
Corporation Delaware |  nqne  2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME — insert only an
debtor name (2a or 2b) — do not abbreviate of combine names 2a. ORGANIZATION’S NAME OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 2c. MAILING ADDRESS CITY STATE I POSTAL
CODE COUNTRY 2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF
ORGANIZATION 2g. ORGANIZATIONAL ID #, If any ORGANIZATION  [debtor  I
 none  3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an
secured party name (3a or 3b) 3a. ORGANIZATION’S NAME GENERAL ELECTRIC CAPITAL CORPORATION, AS
COLLATERAL AGENT 3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX 3c. MAILING ADDRESS
CITY            STATE (POSTAL CODE
COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
—  MONROE ST., 16TH FLOOR CHICAGO |IL |6066I | 4. This FINANCING STATEMENT covers the
following collateral: ALL ASSETS

 

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A. NAME & PHONE OF CONTACT
AT FILER [optional] UCC Filings 800-828-0938 B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207 L I THE ABOVE SPACE IS FOR
FILING OFFICE USE ONLY 1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do
not abbreviate or commendams 1a. ORGANIZATION’S NAME PLY GYM PACFIC WINDOWS CORPORATION
 OR  1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX 1c. MAILING ADDRESS  •  CITY
STATE            POSTAL CODE COUNTRY 5001 D STREET NW AUBURN WA 98001 1d SEE INSTRUCTIONS ADD’L IN
FORE 1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g. ORGANIZATIONAL 1D#, if any
ORGANIZATION Corporation Delaware |  nqne  2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME -
insert only an debtor name (2a or 2b) — do not abbreviate of combine names 2a. ORGANIZATION’S NAME
OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 2c. MAILING ADDRESS CITY STATE I POSTAL
CODE COUNTRY 2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF
ORGANIZATION 2g. ORGANIZATIONAL ID #, If any ORGANIZATION  [debtor  I
 none  3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an
secured party name (3a or 3b) 3a. ORGANIZATION’S NAME GENERAL ELECTRIC CAPITAL CORPORATION, AS
COLLATERAL AGENT 3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX 3c. MAILING ADDRESS
CITY            STATE (POSTAL CODE
COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
—  MONROE ST., 16TH FLOOR CHICAGO |IL |6066I | 4. This FINANCING STATEMENT covers the
following collateral: ALL ASSETS

 

 

EXHIBIT J-2

	 	 	 

	

	 	4500 Bankers Hall East, 855 — 2nd Street SW 

Calgary, Alberta, Canada T2P 4K7 
Tel: 403.298.3100 Fax: 403.265.7219

www.bennettjones.ca

June 9, 2008

General Electric Corporation 

500 W. Monroe Street. 16th Floor

Chicago Illinois 60661

-and-

Credit Suisse

Eleven Madison Avenue

New York, NY 10010

-and-

Fasken Martineau DuMoulin LLP

Suite 3700, 66 Wellington St. W

Toronto, Alberta 

M5K 1N6

Dear Sirs:

Re: CWD Windows and Doors, Inc.

We have acted as Alberta counsel for CWD Windows and Doors, Inc., as Canadian Borrower (the
“Canadian Borrower”) and Ply Gem Industries, Inc. as the Specified U.S. Borrower
(collectively referred to herein as the “Borrowers”) in connection with the authorization,
execution and delivery of the Credit Documents (defined below).

This opinion letter is being issued and delivered to the addressees hereof pursuant to
Section 4.01(a)(xii) of the Credit Agreement (defined below).

Scope of Enquiry

In order to render the opinions expressed in this opinion letter, we have examined
originals or copies of the following documents:

	(a)	 	Credit Agreement dated as of June 9, 2008 (the “Credit Agreement”) among the
Borrowers, the other borrowers named therein, Credit Suisse, as administrative

CALGARY   •   TORONTO   •   EDMONTON

 

- 2 -

	 	 	agent on its own behalf and on behalf of the Lenders (as defined therein), U.S.
swingline lender and U.S. L/C issuer, Credit Suisse, Toronto Branch, as Canadian swingline
lender and Canadian L/C issuer, Credit Suisse Securities (U.S.A.) LLC, as sole lead
arranger and sole bookrunner, the syndicate agent named therein and General Electric
Capital Corporation, as collateral agent (for and on behalf and for the benefit of itself
and the Lenders, the “Collateral Agent” and together with the Lenders, the “Secured
Parties”);
	 
	(b)	 	Lien Subordination and Intercreditor Agreement dated as of June 9, 2008 between inter alia
the Collateral Agent, U.S. Bank National Association, the Specified U.S. Borrower, Ply Gem
Holdings, Inc. and the Canadian Borrower, as subsidiary of Ply Gem Industries, Inc. (the
“Intercreditor Agreement”);
	 
	(c)	 	Security Agreement dated as of June 9, 2008 among the Canadian Borrower and the Collateral
Agent;
	 
	(d)	 	Intellectual Property Security Agreement dated as of June 9, 2008 among the Canadian
Borrower and the Collateral Agent;
	 
	(e)	 	Confirmation of Security Interest in Intellectual Property provided by the Canadian Borrower
dated as of June 9, 2008 (the “Confirmation”);
	 
	(f)	 	Certificate of Compliance dated June 9, 2008 issued by Industry Canada in respect of the
Canadian Borrower (the “Certificate of Compliance”);
	 
	(g)	 	Certificate of Status dated June 4, 2008 issued by the Registrar of Corporations for Alberta
in respect of the Canadian Borrower (the “Certificate of Status”);
	 
	(h)	 	the Financing statements (“Alberta Verification Statements”) attached hereto as Schedule ‘B’
to be filed at the Alberta Personal Property Registry (the “APPR”) pursuant to the provisions
of the Personal Property Security Act (Alberta) and the Personal Property Security Act
Regulation (Alberta) (collectively, the “APPSA”) details of which are set out in Schedule A
hereto (the “Financing Statements”);
	 
	(i)	 	a Secretary’s Certificate — Borrowers dated June 2, 2008 issued by the President of CWD
Windows and Doors, Inc. of the Canadian Borrower relating to the Canadian Borrower and, inter
alia, matters of corporate status, incumbency of officers and directors and corporate power
and authority and attaching certified copies of (A) a resolution of the board of directors of
the Canadian Borrower authorizing the execution and delivery of each of the Credit Documents
to which it is a party and the performance by the Canadian Borrower of its obligations
thereunder, (B) the articles (the “Articles”) and bylaws (the “Bylaws”) of the Canadian
Borrower;

 

- 3 -

We have also made such investigations, examined such certificates of public authorities, and
corporate officers and directors, corporate records and other documents certified or otherwise
identified to our satisfaction, and have considered such questions of law, as we have considered
necessary and appropriate as a basis for providing the opinions expressed herein.

Applicable Law

The opinions expressed below are limited to the laws, statutes and regulations of the Province of
Alberta, including the federal laws, statutes and regulations of Canada applicable in the Province
of Alberta in force on the date of this opinion letter (collectively, “Alberta Law”).

Without limiting the generality of the immediately preceding paragraph, (i) we express no opinion
with respect to the laws of any other jurisdiction to the extent that those laws may govern the
validity, perfection, effect of perfection or non-perfection or enforcement of the security
interests created by the Alberta Security Documents as a result of the application of the conflict
of laws rules of Alberta (the “Applicable Canadian Law”), including, without limitation, Sections 5
to 8.1 inclusive of the APPSA, and (ii) we express no opinion whether, pursuant to those conflict
of laws rules, any Applicable Canadian Law would govern the validity, perfection, effect of
perfection or non-perfection or enforcement of those security interests. In addition, we express no
opinion as to whether Applicable Canadian Law would govern the validity, perfection, effect of
perfection or non-perfection or enforcement of the Security Interests including for certainty any
floating or registered mortgage or charge on real property, except as specifically set forth
herein.

Our opinion expressed in paragraph 1 is expressed solely in reliance upon the Certificate of
Compliance and our opinion expressed in paragraph 2 is expressed solely in reliance upon the
Certificate of Status.

Defined Terms

In this opinion letter (i) “Credit Documents” means all of the documents listed as items (a) to
(e), inclusive, in the Scope of Enquiry section of this opinion letter, (ii) “Alberta Security
Documents” means the documents listed as items (c) and (d) in the Scope of Enquiry section of this
opinion letter (iii) “New York Law Documents” means all of the documents listed as items (a) and
(b), inclusive, in the Scope of Enquiry section of this opinion letter inclusive of this opinion
letter and (iv) references to “Collateral” have the meaning given to such term in the applicable
Alberta Security Document.

 

- 4 -

To the extent the context so admits, words and expressions defined in the APPSA and the
regulations issued thereunder and grammatical variations thereof, are used in this opinion letter
with the same respective defined meanings.

Assumptions

As a basis for our opinions, we have made the following assumptions:

	(a)	 	all signatures on documents submitted to us are genuine, all documents submitted to us as
originals are authentic and complete, and all documents submitted to us as copies conform to
authentic and complete original documents;
	 
	(b)	 	all facts set forth in official public records and certificates and other documents supplied
by public officials or otherwise conveyed to us by public officials are and remain at all
material times complete, true and accurate;
	 
	(c)	 	the Certificate of Compliance is conclusive evidence that the Canadian Borrower is
incorporated under the Canada Business Corporations Act; (the “CBCA”)
	 
	(d)	 	the Certificate of Status is conclusive evidence that the Canadian Borrower is incorporated
under the Business Corporations Act (Alberta) (the “ABCA”);
	 
	(e)	 	all facts set forth and statements made in certificates supplied by the President of the
Canadian Borrower are and remain at all material times complete, true and accurate;
	 
	(f)	 	all relevant individuals had full legal capacity at all relevant times;
	 
	(g)	 	none of the documents (including, without limitation, the Credit Documents), originals or
copies of which we have examined has been amended, and there are no agreements or
understandings between the parties, written or oral, and there is no usage of trade or course
of prior dealing between the parties that would, in either case, define, supplement or
qualify the terms of the Credit Documents;
	 
	(h)	 	for the purposes of our opinions expressed in paragraph 8 below, (i) the parties to the
Alberta Security Documents have not agreed to postpone the time for attachment of the
security interests contemplated to be created thereby, (ii) value has been given to the
Canadian Borrower, and (iii) the Secured Parties have not done anything to release or
discharge any Security Interest in respect of any Collateral;
	 
	(i)	 	the Credit Documents constitute legal, valid and binding obligations of each party thereto,
other than the Canadian Borrower, enforceable against them in accordance with their
respective terms;

 

- 5 -

	(j)	 	each of the New York Law Documents constitute legal, valid and binding obligations of
the parties thereto under the laws of the State of New York (“New York Law”) enforceable
against the parties thereto in accordance with the terms of the respective New York
Document under New York Law and would be enforced under New York Law as written and the
provisions thereof would be given the same meaning under New York Law that would be given
if the respective New York Law Document were governed by Alberta Law;
	 
	(k)	 	each party to the Credit Documents (other than the Canadian Borrower) is a validly existing
legal person under the laws governing its existence, has all requisite capacity, power and
authority to execute, deliver and perform the Credit Documents to which it is a party, has
taken all necessary corporate, statutory, regulatory and other action to authorize the
execution, delivery and performance by it of such Credit Documents to which it is a party and
has duly executed and delivered such Credit Documents; and
	 
	(l)	 	the execution and delivery by each party to the Credit Documents executed or, as applicable,
delivered by it outside of the Provinces of Alberta comply with the requirements relating to
the execution and delivery of documents under the laws of the jurisdiction in which such
Credit Document was executed or, as applicable, delivered.

Opinions

Based and relying on the foregoing and subject to the qualifications outlined below, we are of the
opinion that:

	1.	 	The Canadian Borrower is incorporated under the CBCA, is not discontinued and has not been
dissolved under the CBCA.
	 
	2.	 	The Canadian Borrower is registered in Alberta and is a valid and subsisting
extra-provincial corporation under the ABCA.
	 
	3.	 	The Canadian Borrower has the corporate power and capacity to own property and assets, to
carry on business, to execute, deliver, grant the security and incur the obligations
contemplated by and perform its obligations under the Credit Documents.
	 
	4.	 	The Canadian Borrower has taken all necessary corporate action to authorize the execution
and delivery of, grant of security contemplated by, and the performance of its obligations
under the Credit Documents and has duly executed and delivered the Credit Documents.

 

- 6 -

	5.	 	The execution and delivery of the Credit Documents by the Canadian Borrower and the
consummation of the loan and security transactions contemplated by the Credit Documents
and the performance by the Canadian Borrower of its obligations thereunder do not
contravene, violate or result in a breach of:

	 	(a)	 	the CBCA or the Articles or the Bylaws of the Canadian Borrower; or
	 
	 	(b)	 	any other Alberta Law.

	6.	 	No authorization, permit, consent, license, approval, acknowledgment, order or exemption
from, registration or filing with, or notice to any government department or agency or other
regulatory body or authority under Alberta Law is required to permit the Canadian Borrower to
borrow under the Credit Agreement, or to permit the Canadian Borrower to execute and deliver
the Credit Documents, to perform its obligations under the Credit Documents or to grant the
security contemplated under the Credit Documents except for registrations and filings
necessary to establish and protect the priority of the security interests created by the
Alberta Security Documents.
	 
	7.	 	The Alberta Security Documents constitute legal, valid and binding obligations of the
Canadian Borrower, enforceable against it in accordance with their terms.
	 
	8.	 	The Alberta Security Documents create valid security interests in favour of the Collateral
Agent, in the Collateral comprised of personal property to which the APPSA applies and in
which a security interest may be granted under the APPSA (the “Alberta Personal Property
Collateral”) in which the Canadian Borrower now has rights which secures the payment and
performance of its obligations under the Credit Agreement. The Alberta Security Documents are
sufficient to create valid security interests in Alberta Personal Property Collateral in
which the Canadian Borrower hereafter acquires rights when those rights are acquired.
	 
	9.	 	Once the Financing Statements have been filed with the Alberta Personal Property Registry
registration will have been made in all public offices provided for under Alberta Law where
such registration is necessary to preserve, protect or perfect the security interests created
in favour of the Collateral Agent in the Alberta Personal Property Collateral under the
Alberta Security Documents. Except as provided in Schedule A, no renewal or amendment of such
registrations are required.
	 
	10.	 	The choice of New York Law as the governing law of each of the New York Law Documents is a
valid choice of law under the laws of Alberta and of Canada applicable therein (“Alberta Law”) provided that it was not made with a view to avoiding the consequences of the laws of
any other jurisdiction and that choice is

 

- 7 -

	 	 	not otherwise contrary to public policy, as such term is interpreted under Alberta Law
(“Public Policy”). In any proceeding brought before a court of competent jurisdiction (an
“Alberta Court”) in the Province of Alberta (the “Alberta Jurisdiction”) for the
enforcement of the New York Law Documents, New York Law (being the stated governing laws of
such documents) would, to the extent specifically pleaded and proven as a fact by expert
evidence, be applied by the Alberta Court to all issues which under the conflict of laws
rules of the Province of Alberta and the federal laws of Canada applicable therein are to
be determined in accordance with the proper or governing law of a contract provided that
the Alberta Court finds that such choice of law is bona fide (in the sense that it was not
made with a view to avoiding the consequences of the law of the jurisdiction with which the
transaction has its most real and substantial connection), and except that in any such
proceeding the Alberta Court:

	 	(a)	 	will apply those laws of the Province of Alberta which the Alberta Court
would characterize as procedural and will not apply those laws of the State of New
York which the Alberta Court would characterize as procedural;
	 
	 	(b)	 	will not apply those laws of the State of New York which the Alberta Court
would characterize as revenue, expropriatory, penal or similar laws (and based solely
on our review of the plain words used in the New York Law Documents and Alberta Law
but without any knowledge of the New York Law, we are not aware of any laws which
would be so characterized and would not be applied by the Alberta Court in enforcing
the New York Law Documents against the Canadian Borrower); and
	 
	 	(c)	 	will not apply those laws of the State of New York, the application of which
would be inconsistent with Public Policy. Based solely on our review of the plain
words used in the New York Law Documents and Alberta Law, but without any knowledge
of New York Law, we have no reason to believe that any of the terms of the New York
Law Documents are contrary to Public Policy or that it would be contrary to Public
Policy for an Alberta Court to hear an action or proceeding to enforce the New York
Law Documents in the Province of Alberta.

	11.	 	Alberta Law would permit an action to be brought before an Alberta Court to enforce, without
re-litigation of the merits of any claim that is the subject of such judgment, a final and
conclusive in personam judgment (the “New York Judgment”) of a New York court of competent
jurisdiction (the “New York Court”) against the Canadian Borrower related to the Credit
Agreement of the Notes which is not impeachable as void or voidable under New York Law for a
sum certain in money (including a judgment issued in an action commenced and maintained in
accordance with the provisions of the New York Law Documents

 

- 8 -

	 	 	respecting submission to jurisdiction, choice of venue and service of process to the extent that
such provisions are enforceable under New York Law), provided that:

	 	(a)	 	the court rendering the New York Judgment had jurisdiction over the defendant and the
subject matter of the proceedings according to the conflict of laws rules as recognized by
Alberta Courts (and an express, contractual submission to jurisdiction is sufficient for this
purpose);
	 
	 	(b)	 	the New York Judgment was not obtained by fraud, or in a manner contrary to natural justice
or contrary to any order made by The Attorney General of Canada under the Foreign
Extraterritorial Measures Act (Canada) or by the Competition Tribunal under the Competition
Act (Canada) in respect of certain judgments referred to therein;
	 
	 	(c)	 	the enforcement of the New York Judgment would not be inconsistent with Public Policy;
	 
	 	(d)	 	the New York Judgment is not in respect of a revenue,
expropriatory, penal or similar law of
a foreign jurisdiction;
	 
	 	(e)	 	the action on the New York Judgment is brought in Alberta within the applicable limitation
period or periods;
	 
	 	(f)	 	the New York Judgment does not conflict with another final and conclusive judgment in or
relating to the same cause of action in a different jurisdiction;
	 
	 	(g)	 	in the case of a judgment obtained by default, there has been no manifest error in the
granting of such judgment;
	 
	 	(h)	 	the New York Judgment has neither been satisfied nor is it for any other reason not a
subsisting judgment; and
	 
	 	(i)	 	the Canadian Borrower subject to the New York Judgment was duly served with process leading
up to judgment or appeared to defend such process.

 

- 9 -

Qualifications

The opinions expressed in this opinion letter are subject to the following qualifications:

General Qualifications

	(a)	 	The legality, validity, binding effect and enforceability of each Alberta Security Document
or any judgment (including any New York Judgment) arising out of or in connection with each
Alberta Security Document may be limited by applicable bankruptcy, insolvency, winding-up,
reorganization, arrangement, moratorium, limitation, preference or other similar laws of
general application relating to or affecting the enforcement of the rights of creditors
generally. Without limiting the generality of the foregoing:

	 	(i)	 	the provisions in each Alberta Security Document relating to payment of costs
and expenses or indemnification may be unenforceable to the extent that an Alberta
Court decides that any payment required thereunder would derogate from the court’s
discretion in respect of the costs of and incidental to a proceeding or a step in a
proceeding, or would be inconsistent with the court’s determination by whom and to
what extent such costs shall be paid and counsel fees are subject to taxation;
	 
	 	(ii)	 	under the Judgement Interest Act (Alberta) interest after judgment may be
limited to a rate which is less than a rate specified in any Alberta Security
Document;
	 
	 	(iii)	 	section 347 of the Criminal Code (Canada) prohibits the payment of
“interest” at a “criminal rate” (as such terms are defined therein) - currently 60%
per annum; and
	 
	 	(iv)	 	under the provisions of the Currency Act (Canada), courts in Canada are
precluded from rendering any monetary judgments in any currency other than the lawful
currency of Canada and such judgments may be based on a rate of exchange in existence
on a date other than the date of payment.

	(b)	 	The legality, validity, binding effect and enforceability of each Alberta Security Document
may be limited by general principles of equity, and no opinion is given as to any specific
remedy that may be granted, imposed or rendered (including equitable remedies such as
specific performance and injunction). Without limiting the generality of the foregoing:

	 	(i)	 	notwithstanding any provisions of the Alberta Security Documents that
provide that certain certifications or determinations of fact be binding on the
parties, any certificate or determination provided thereunder may be

 

- 10 -

	 	 	 	subject to challenge in a court on the grounds of fraud, collusion, mistake on the
face of the certificate, or mistake on the basis that the certificate differed in
any material respect from the certificate contemplated in such provision;

	 	(ii)	 	any provision of any Alberta Security Document that provides for interest to
be paid at a higher rate after than before default, that provides for a forfeiture of
a deposit or any other property or that provides for a particular calculation of
damages upon breach may not be enforceable if it is interpreted by an Alberta Court
to be a penalty or if the Alberta Court determines that relief from forfeiture is
appropriate;
	 
	 	(iii)	 	a waiver or release of or limitation on rights or remedies available to the
Secured Parties in respect of future actions or omissions of any Secured Party, or
any agent or receiver and manager appointed by or on the application of any Secured
Party, may not be enforced by an Alberta Court;
	 
	 	(iv)	 	the enforceability of any Alberta Security Document may be limited by general
principles of law and equity relating to the conduct of a Secured Party prior to the
execution of, or in the administration or performance of that Alberta Security
Document, including, without limitation, (i) fraud, duress or undue influence,
misrepresentation and deceit, (ii) estoppel and waiver, (iii) laches and (iv)
reasonableness and good faith in the exercise of discretionary powers; and
	 
	 	(v)	 	the enforceability of any Alberta Security Document may be limited if there
has been any mutual mistake of fact.

	(c)	 	Provisions in the Alberta Security Documents purporting to sever invalid or unenforceable
provisions may not be enforceable as an Alberta Court may reserve to itself a decision as to
whether any provision is severable or otherwise of no force or effect.
	 
	(d)	 	No opinion is expressed as to the enforceability of any provision in any Alberta Security
Document which suggests that modifications, amendments or waivers that are not in writing
will not be effective, which purports to prevent the exercise of a right or set-off, a
defence by counterclaim or other rights or which provides that remedies may be exercised
cumulatively.
	 
	(e)	 	Our opinions in paragraph 6 only address statutes and regulations of general application in
the Province of Alberta and do not address or extend to (i) any necessary authorization,
permit consent, license, approval, acknowledgment,

 

- 11 -

	 	 	order or exemption from, registration or filing with, or notice to, any government
department or agency or any regulatory body or authority required by the Canadian Borrower
under Alberta Law in order to carry on its particular business, or (ii) any agreement the
Canadian Borrower may have entered into with, or any decision, order or award made by, any
government department or agency or any regulatory body or authority of the Province of
Alberta or of Canada.
	 
	(f)	 	An Alberta Court reserves the right to decline jurisdiction in any action relating to the
Credit Documents on the basis that the Province of Alberta is an inconvenient forum or that
concurrent or prior proceedings have been brought elsewhere, notwithstanding any waiver of
the right to raise such objection or defence in the Credit Documents.
	 
	(g)	 	The provisions of the Alberta Security Documents relating to the choice of Alberta law may
not be recognized if, or to the extent it is determined that, such choice of law was made to
evade mandatory provisions or public policy considerations of the law of another jurisdiction.
	 
	(h)	 	No opinion is expressed in this opinion letter on the application or compliance with
Section 510 of the Bank Act (Canada). Notwithstanding the foregoing, pursuant to Section 988
of the Bank Act (Canada), a contravention of Section 510 does not invalidate any Credit
Document if it is entered into in contravention of Section 510.
	 
	(i)	 	No opinion is expressed with respect to any provision of any Credit Document which requires
any obligation under the Credit Documents to be performed in any jurisdiction outside the
Province of Alberta where its performance will be illegal, unlawful, against public policy or
ineffective by virtue of the laws of that jurisdiction.
	 
	(j)	 	We express no opinion on the enforceability of any provisions of the Alberta Security
Documents which are inconsistent with or contrary to any provision of the Credit Agreement.

General Security Qualifications

	(k)	 	No opinion is expressed in this opinion letter with respect to any security interest in
Collateral that it is not identifiable or traceable or in any proceeds of Collateral that are
not identifiable or traceable.
	 
	(l)	 	No opinion is expressed as to whether a security interest may be created in permits, quotas,
licenses or intellectual property which are held by or issued to the Canadian Borrower to the
extent the same do not constitute property or prohibit assignment.

 

- 12 -

	(m)	 	No opinion is expressed in this opinion letter on any security interest expressed to
be created in property, or expressed to be creating an interest in property, to which the
APPSA does not apply in accordance with the provisions of the APPSA, or the validity of
which is not governed by the APPSA in accordance with sections 5 to 8.1 of the APPSA.
	 
	(n)	 	No opinion is expressed in this opinion letter on any mortgage, charge or security interest
to the extent it constitutes a transfer of interest or claim in any policy of insurance or
contract of annuity.
	 
	(o)	 	No opinion is expressed in this opinion letter on the creation, validity, effect or
perfection of any mortgage, charge or security interest in real property, or any personal
property that is or becomes a fixture or any building materials that are or become affixed to
real property.
	 
	(p)	 	The APPSA may affect the enforcement of certain rights and remedies contained in the Alberta
Security Documents to the extent those rights and remedies are inconsistent with or contrary
to the provisions of the APPSA. The APPSA also imposes certain obligations on secured parties
(including the duty to exercise rights and perform duties in good faith and in a commercially
reasonable manner). Provisions in the Security Agreements which purport to waive or vary any
rights given to the Canadian Borrower under, or obligations imposed on any Secured Party
under, the APPSA may not be effective or enforceable.
	 
	(q)	 	No opinion is expressed in this opinion letter as to title to, rights in or the beneficial
interest of the Canadian Borrower or any other person in any real or personal property or as
to the priority of any mortgage, charge or security interest contained in or to be granted
pursuant to any Alberta Security Document. Our opinions expressed in paragraph 8 do not
address priority or the fact that more particularized registrations may be made relative to
certain types of Collateral specified in each APPSA (such as motor vehicles and serial number
goods) which would afford greater protection to the Secured Parties against competing claims
to the same type of Collateral.
	 
	(r)	 	No opinion is expressed as to whether a security interest may be created in collateral
consisting of agreement, other than a receivable or account (as defined in the APPSA) to the
extent that the terms thereof prohibit assignment or require a consent, approval or
authorization which has not been made or given. An assignment of a debt or account will not
be binding on the obligor to the extent that such debtor or account is paid or is otherwise
discharged before notice of assignment is given to the obligor, together with the direction
to pay the same to the Lender.

 

- 13 -

	(s)	 	A receiver or receiver and manager appointed pursuant to any Alberta Security Document
may, for certain purposes, be treated by an Alberta or Alberta Court as being the agent of
the Collateral Agent and not solely the agent of the Canadian Borrower (and the Collateral
Agent may not be deemed to be acting as the agent and attorney of the Canadian Borrower in
making such appointment), notwithstanding any provision in any Alberta Security Document to
the contrary.
	 
	(t)	 	An Alberta Court or a Alberta Court may require that the Canadian Borrower be given a
reasonable time to make payment of any amount demanded under the Alberta Security Document to
which it is party, and the Collateral Agent may be precluded from enforcing the security
created under the Alberta Security Documents during such period of time.
	 
	(u)	 	No opinion is expressed in this opinion letter as to whether it may be necessary in
connection with the enforcement of any Alberta Security Document for any Secured Party or any
other persons proposing to acquire, own or operate all or any part of the property secured
thereunder to give any notice or obtain or effect any licence, franchise, permit, consent,
approval, registration or other authorization or exemption in connection therewith.
	 
	(v)	 	A security interest, mortgage or charge in (i) any goods purchased under any licence, (ii)
an approval, privilege, quota, franchise, permit or lease, (iii) an instrument, contract,
account or agreement, (iv) investment property or (v) property subject to any of the Canada
Shipping Act (Canada), the Copyright Act (Canada), the Integrated Circuits Topography Act
(Canada), the Industrial Designs Act (Canada), the Patent Act (Canada), the Plant Breeders ’
Rights Act (Canada), the Canada Transportation Act (Canada), the Trade-marks Act (Canada),
the Financial Administration Act (Canada), the Land Titles Act (Alberta), the Registry Act
(Alberta), the Railways Act (Alberta), the Land Title Act (Alberta), the Petroleum and
Natural Gas Act (Alberta), the Coal Act (Alberta) or the Mineral Tenure Act (Alberta) ( (the
“Special Property Statutes”) may not be perfected, valid, binding or enforceable because of
the nature or terms of such property, or to the extent the nature or terms of such property
or any statute or regulation require a consent, approval, acknowledgment, notice or other
authorization or registration which has not been given or made.
	 
	(w)	 	No opinion is expressed in this opinion letter as to (i) the validity, effect or
enforceability under any of the Special Property Statutes of any security interest, mortgage
or charge expressed to be created in favour of the Collateral Agent under any Alberta
Security Document in any real or personal property of the Canadian Borrower or (ii) any
required registration, filing, recording or notice under any of the Special Property Statutes
in respect of such security interest in any personal property subject to the Special Property
Statutes.

 

- 14 -

	(x)	 	Our opinions in paragraphs 9 do not address any of the following matters:

	 	(i)	 	any required registration, filing, recording or notice in respect of any
fixtures, goods that may become fixtures, crops, minerals or hydrocarbons to be
extracted, or timber to be cut; or
	 
	 	(ii)	 	any required caution filing or other registration, filing, recording or
notice which may be required in certain circumstances where goods are intended to be
brought or are brought into the Province of Alberta.

	(y)	 	No opinion is expressed on the effect of any provision of the Alberta Security Documents
that deems the Collateral Agent, any other Secured Party, or any agent or receiver and
manager appointed by any of them, to have exercised reasonable care or to have acted in a
commercially reasonable manner.
	 
	(z)	 	No opinion is expressed on the effect or enforceability of any agreement by the Canadian
Borrower contained in the Alberta Security Documents that any action or inaction by the
Collateral Agent, or any agent or receiver and manager appointed by or on the application of
the Collateral Agent, is commercially reasonable or not commercially unreasonable.
	 
	(aa)	 	the validity of the security interests in personal property:

	 	(i)	 	in respect of: (A) goods (as defined in the APPSA); and (B) possessory
security interests in chattel paper, negotiable documents of title, instruments or
money (as such terms are defined in the APPSA) is, subject to paragraph (ii)(B)
below, governed by the laws of the jurisdiction where such personal property is
situated when the security interests attach and in this regard we have assumed such
personal property was situated in the Province of Alberta at the time of attachment;
	 
	 	(ii)	 	in respect of: (A) intangibles (as defined in the APPSA); (B) goods which are
of a kind that are normally used in more than one jurisdiction (if such goods are
equipment (as defined in the APPSA) or are inventory (as defined in the APPSA) leased
or held for lease by the Canadian Borrower to others); and (C) a non-possessory
security interest in chattel paper, negotiable documents of title, instruments or
money, is governed by the laws of the jurisdiction where the Canadian Borrower is
located (as determined in the PPSA) at the time the security interests attach and in
this regard, we have assumed that the Canadian Borrower was located in the Province of
Alberta at the time of attachment; and
	 
	 	(iii)	 	in respect of investment property (as defined in the APPSA), is governed by
the laws of the jurisdiction:

 

- 15 -

	 	(A)	 	where the certificate is located in the case of certificated
securities (as defined in the APPSA);
	 
	 	(B)	 	the issuer’s jurisdiction in the case of uncertificated
securities (as defined in the APPSA);
	 
	 	(C)	 	the security intermediary’s jurisdiction in the case of a
security entitlement or a securities account (as such terms are defined in
the APPSA); or
	 
	 	(D)	 	the futures intermediary’s jurisdiction in the case of a
futures contract or a futures account (as such terms are defined in the
APPSA),

	 	 	 	in each case determined at the time the security interests attach.

Transaction Specific Qualifications

	(bb)	 	No opinion is expressed on the validity, effect or enforceability of any waiver of jury trial
contained in any Credit Document.
	 
	(cc)	 	No opinion is expressed on the validity or effect of any service of process served in
accordance with the provisions of any Credit Document if such service is not made in
compliance with the Rules of Civil Procedure for the Province of Alberta.
	 
	(dd)	 	Except as expressly set forth herein, we express no opinion as to the perfection or ranking
of the Security Interests nor as to any registrations, filings or recordings of the Security
Documents or the security interests which may be required under the laws of the Province of
Alberta.

Reliance

This opinion is given for the sole benefit of the addressees and their respective successors and
assigns in connection with the transactions contemplated in the Credit Agreement and may not be
relied upon by any other party or in respect of any other transaction without our express written
consent.

Yours truly,

 

 

SCHEDULE “A”

APPSA REGISTRATIONS

The registration period of the Financing Statements will expire, and the security interests
perfected thereby will become unperfected, 7 years from the date of registration unless the
registration period is extended prior to that time by registration under the APPSA of financing
change statements designated as a renewal. We assume no responsibility for registering these
financing change statements or for reminding you of the date by which it must be registered.

Any change in the name of the Canadian Borrower and any transfer by the Canadian Borrower of any
collateral will require the filing of a financing change statement under the APPSA:

	 	(a)	 	within 15 days of the transfer if the Collateral Agent consented to the transfer; or
	 
	 	(b)	 	within 30 days after the later of (i) the transfer, if the Collateral Agent
had prior knowledge of the transfer and if the Collateral Agent had, at the time of
the transfer, the information required to register a financing change statement and
(ii) the day the Collateral Agent learns the information required to register a
financing change statement; or
	 
	 	(c)	 	within 30 days after the Collateral Agent learns of the change of name and the
new name of the Canadian Borrower.

We assume no responsibility for making this type of registration nor for notifying you if
circumstances arise which necessitate this type of registration.

Additional registrations may be required in other jurisdictions if any of the collateral is
removed from Alberta or if the Canadian Borrower moves its principal place of business or other
locations.

 

 

	Financing Statement PPSA Security Agreement or Sale of Goods Acts s.26(2) or Factors Act
s.9(2) Type of Registration (Select one only) SA PPSA Security Agreement 1. What is the term of
Registration? Infinity 1 — 25 years 2. Does it cover Trust Indenture? Yes No sg Sale
of Goods Act s. 26(2) or Factors Act s.9(2) 1. What is the term of Registration? or Infinity 1 — 25
years : Debtor One Select one Business Individual Business Name or Last Name First Name Middle
Name CWD Windows and Doors, Inc. Street Address City Province Postal Code Birthdate yyyy/mm/dd
2008 — 48th Street S.E. Calgary Alberta T2B 2E5 Known) Debtor Two Select one Business
Individual Business Name or Last Name First Name Middle Name Street Address City Province Postal
Code Birthdate yyyy/mm/dd (if known) Secured Party Select one Business Individual secured
Party Code Business Name or Last Name First Name Middle Name General Electric Capital
Corporation Street Address City Province Postal Code 1500 W. Monroe St. 16th Floor Chicago
Illinois 60661 Collateral -Serial Number Gpods (If PPSA, applicableqnty Serial Number Year (yyyy)
Make and Model Category : General- Collateral All of the Debtor’s present and
after-acquired personal property Your Reference Number Authorized Signature Name of Person
Authorized to Complete this Form (PRINT) Telephone Number Call Box Number Date of Submission
(yyyy/mm/dd) REG3318 (2007/01) Reent 0ffiCe Use 0ny Page of

 

 

	Debtor/Secured Party Solicitor/Agent Additions Debtor” Setecf one Business Individual Business
Name or Last Name First Name Middle Name I General Electric Capital Corporation, as Collateral
Agent l Street Address City Province Postal Code 1500 W. Monroe St. 16th Floor Chicago Illinois
60661 If Court Order, Gender ? VmlramlM indicate Occupation M F Debtor Select one
Business ED Individual Business Name or Last Name First Name Middle Name Street Address City
Province Postal Code If Court Order, Of known) indicate Occupation , ,
M F Debtor Select one ED Business ED Individual Business Name or Last Name First Name
Middle Name Street Address City Province Postal Code If Court Orrior Gender Birthdate yyyy/mm/dd
iruourturaer,(ifknown) , indicate Occupation M F Secured Party Select one
Business ED Individual Secured Business Name or Last Name First Name Middle Name Party Code Street
Address City Province Postal Code Secured Party Select one, EH Business Individual Secured Business
Name or Last Name First Name Middle Name Party Code Street Address City Province Postal Code
Solicitor/Agent (If Court Order or Receiver’s Report) Personal Property Registry (P.P.R.) Party
Code Name in Full Street Address City Province Postal Code Telephone Number Fax Number Call Box
Number Reference Number Date of Submission (yyyy/mm/dd) REG3319 (2007/01) Registry Agent Office Use
Only Page of

 

 

EXHIBIT J-3

June 9, 2008

Attorneys at Law

Baton Rouge

Birmingham

Houston

Jackson

Memphis

Mobile

Nashville

New Orleans

Washington, DC

Credit Suisse, as Administrative Agent

General Electric Capital Corporation, as Collateral Agent

to the Lenders referred to below

Eleven Madison Avenue

New York, New York 10010-3629

			
	Re:	 	Credit Agreement (“Credit Agreement”) dated as of
June 9, 2008, by and among Ply Gem Holdings, Inc., a Delaware corporation
(“Holdings”), Ply Gen Industries Inc., a Delaware corporation
(the “Specified U.S. Borrower”), CWD Windows and Door, Inc., a
Canadian corporation (the “Canadian Borrower”), the subsidiaries
of the specified U.S. Borrower from time to time party hereto as
Borrowers and Guarantors, each Lender from time to time party thereto
(the “Lenders”), Credit Suisse (the “Administrative
Agent”), as Administrative Agent for the Lenders, and General
Electric Capital Corporation, (the “Collateral Agent”), as
Collateral Agent for the Lenders, Credit Suisse, Toronto Branch, as
Canadian Swing Line Lender and Canadian L/C Issuer and Credit Suisse
Securities (USA) LLC, a sole Lead Arranger and Sole Bookrunner, as
Syndication Agent, and Documentation Agent.

Ladies and Gentlemen:

     We have been engaged as special legal counsel to New Alenco Extrusion, Ltd., a
Texas limited partnership, New Alenco Window, Ltd., a Texas limited partnership,
and New Glazing Industries, Ltd., a Texas limited partnership (each individually a
“Partnership,” and collectively, the “Partnerships”) for the
purpose of delivering a legal opinion in connection with the Partnerships’
execution and delivery of each of the documents defined as the Credit Documents on
Schedule I hereto (collectively, the “Credit Documents”), to which
each Partnership is a party.

     This opinion is being furnished to you pursuant to Section 4.01(a)(xiii) of
the Credit Agreement. Except as otherwise defined herein and in Schedule I
hereto, capitalized terms used herein have the meanings assigned to such terms in
the Credit Agreement. Other terms that are defined in the Uniform Commercial Code
as in effect in the State of Texas (the “Texas UCC”) have the same meaning
when used herein unless otherwise indicated by the context in which such terms are
so used.

     In arriving at the opinions expressed below, we have examined and relied on an
original or copy, identified to our satisfaction, of each of the Credit Documents.
In addition, we have examined the Credit Agreement and such other documents and
partnership records (collectively, the “Other

One Houston Center • 1221 McKinney, Suite 4400 • Houston, Texas 77010 • (713) 652.5151 • Fax (713) 652.5152 • www.adamsandreese.com

 

 

June 9, 2008

Page 2

Documents”) and such questions of law as we have deemed necessary or appropriate for the
purposes of this opinion. As to facts material to our opinion, we have made no independent
investigation of such facts and have relied on such certificates from officers and representatives
of the Partnerships, and from public officials, as we have deemed necessary or appropriate for the
basis of this opinion. In making the foregoing examinations, we have assumed that, as to the
factual matters, all representations and warranties and other factual statements made in the Credit
Documents (other than those which are expressed herein as our opinions) were and are true, correct
and complete in all material respects, and we made no independent investigation of such matters. We
have assumed that any representation or statement qualified by “the best of knowledge” of the party
making such representation or statement, or by similar qualification, is correct without such
qualification. As to all matters in which a person or entity making a representation referred to
above has represented that such person or entity either is not a party to, or does not have, or is
not aware of, any plan or intention, understanding or agreement, we have assumed that there is in
fact no such plan, intention, understanding or agreement. Moreover, to the extent that any of the
Other Documents is governed by the laws of any jurisdiction other than the jurisdictions that are
the subject of this opinion, our opinion relating to those Other Documents is based solely upon the
plain meaning of their language without regard to interpretation or construction that might be
indicated by the laws governing those Other Documents.

     We do not represent the Partnerships on a general or regular basis and, accordingly, have no
detailed information concerning its respective businesses or operations. Therefore, nothing
contained herein should be construed as an opinion regarding the Partnerships or their operations
satisfying or otherwise complying with any local laws or ordinances or laws or ordinances of
general application pertaining to the particular business and operations of the Partnerships.

     In rendering the opinions herein set forth, we have assumed, with your permission, and
without independent investigation on our part, the following:

     (i) each of the Other Documents examined by us has been duly authorized, executed and
delivered by each of the parties thereto, that each such party has the requisite power and
authority to execute, deliver, and perform the Other Documents, and that the Other
Documents constitute the legal, valid and binding obligation of each such party thereto
enforceable against it in accordance with its terms;

     (ii) the Credit Documents have been duly authorized by each of the parties thereto
(other than the Partnerships), that each such party (other than the Partnerships) has the
requisite power and authority to execute, deliver and perform the Credit Documents to which
it is a party, that the Credit Documents have been duly authorized, executed and delivered
by each of the parties thereto (other than the Partnerships), and that the Credit Documents
constitute the legal, valid and binding obligations of each party thereto, enforceable in
accordance with their terms;

 

 

June 9, 2008

Page 3

     (iii) the Credit Agreement has been duly authorized by each of the parties thereto,
that each such party has the requisite power and authority to execute, deliver and perform
the Credit Agreement to which it is a party, that the Credit Agreement has been duly
authorized, executed and delivered by each of the parties thereto, and that the Credit
Agreement constitutes the legal, valid and binding obligations of each party thereto,
enforceable in accordance with their terms;

     (iv) the legal capacity of natural persons;

     (v) that the laws of any jurisdiction other than the jurisdictions that are the
subject of this opinion do not affect the terms of the Credit Agreement and the Credit
Documents;

     (vi) there are no extrinsic agreements or understandings among the parties to the
Credit Agreement and the Credit Documents that would modify, amend or affect the
interpretation of the terms of the Credit Agreement and the Credit Documents or the
respective rights or obligations of the parties thereunder;

     (vii) the Collateral Agent and Administrative Agent have been and are the duly
appointed agents of each of the Lenders pursuant to the Credit Agreement and the applicable
Credit Documents, and the names of the Collateral Agent and Administrative Agent are as set
forth in the Credit Agreement and the Credit Documents;

     (viii) that each party to the Credit Agreement and the Credit Documents has received
adequate consideration under applicable law for its execution and delivery thereof; and

     (ix) all documents submitted to us as originals are authentic, all documents submitted
to us as certified or photostatic copies conform to the authentic original documents, all
signatures on all documents submitted to us for examination are genuine, the Credit
Agreement and the Credit Documents will be executed in the form received, and all public
records reviewed are accurate and complete.

     Based upon the foregoing, and in reliance thereon, and subject to the assumptions,
qualifications, exceptions and limitations set forth herein, we are of the opinion, having due
regard for such legal consideration as we deem relevant, that:

     1. Each Partnership is a limited partnership, validly existing and in good standing under the
laws of the State of Texas. This opinion is based solely upon the certificates relating to each
Partnership issued by the Secretary of State of the State of Texas dated June 3, 2008, and Texas
Comptroller of Public Accounts dated June 3, 2008, and such opinion is limited to the meaning
ascribed to such certificates.

 

 

June 9, 2008

Page 4

     2. Each Partnership:

          (a) has the requisite limited partnership power and authority (i) to execute and deliver the
Credit Documents to which such Partnership is a party, (ii) to perform its obligations under the
Credit Documents to which such Partnership is a party, and (iii) to our knowledge, to own its
properties and conduct its business;

          (b) has taken the limited partnership action necessary to authorize the execution and
delivery of, and performance of its agreements in, the Credit Documents to which such Partnership
is a party; and

          (c) has executed and delivered each of the Credit Documents to which such Partnership is a
party.

     3. The execution and delivery of, and performance by each Partnership of its obligations
under each Credit Document to which it is a party do not:

          (a) violate the Certificate of Limited Partnership or the Agreement of Limited Partnership of
such Partnership; or

          (b) to our knowledge, violate any Applicable Laws (defined below), in each case, which would
have a Material Adverse Effect (defined below).

     For purposes of this opinion, the term “Material Adverse Effect” when used in
connection with any Partnership means any change, effect or circumstance that is materially
adverse to the business, assets, financial condition or results of operation of such Partnership.

     4. All Government Approvals (defined below) required for the execution and delivery of the
Credit Documents to which such Partnership is a party, have been obtained or made, except as
described in paragraph 6 below.

     5. The U.S. Security Agreement is effective to create a security interest in right, title,
and interest of each Partnership in the Article 9 Collateral (as defined below) in favor of the
Collateral Agent.

     6. (a) Under the Texas UCC (including the choice of laws provisions thereof) while a debtor
is “located” in a jurisdiction, the local law of that jurisdiction governs the perfection of a
security interest in that portion of the Article 9 Collateral in which a security interest may be
perfected by filing a financing statement under the UCC as in effect in the state of filing of
such debtor (the “Filing Collateral”). Under the Texas UCC, the Partnerships are each
“located” in Texas, therefore, the local law of Texas governs perfection of a security interest in
Partnerships’ rights in the Filing Collateral.

 

 

June 9, 2008

Page 5

          (b) Upon the filing of the fully authorized financing statements, attached hereto as
Exhibits A-1, A-2 and A-3 (the “Financing Statements”), in the office of the
Secretary of the State of Texas, the security interest created under the U.S. Security Agreement
with respect to the Partnerships’ right, title, and interest in the Filing Collateral will be
perfected. Each of the Financing Statements is in proper form for filing in the office of the
Secretary of the State of the State of Texas. As used herein the term “Article 9
Collateral” means the Collateral (as defined in the U.S. Security Agreement, and herein defined
as the “Collateral”) to the extent that such Collateral is property in which a security
interest may be created under Article 9 of the Texas UCC.

          The opinions set forth above are subject in all respects to the following qualifications,
exceptions, assumptions and limitations:

     (a) (i) We express no opinion as to the creation or perfection of the Collateral
Agent’s security interests in any Article 9 Collateral constituting accounts that are due
from the United States of America or any state of the United States of America or any
agency or department of the United States of America. We also express no opinion as to the
sufficiency of any description of any commercial tort claims included in the Article 9
Collateral. (ii) We further note that, in the case of any exercise of remedies by the
Collateral Agent under the U.S. Security Agreement that would result in a transfer of the
ownership of the property of any Partnership, such transfer may be subject to compliance
with the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

     (b) Other than as set forth in paragraphs 5 and 6 above, we express no opinion as to
the creation, perfection or priority of any security interest. The opinion set forth in
paragraph 6 above regarding the perfection of security interests is subject to the
following:

	 	(1)	 	We have assumed: (a) value has been given for
all security interests and liens created under the Credit Agreement and
the Credit Documents; (b) all descriptions reasonably and accurately
identify the property being described or intended to be described; (c)
each Partnership has the power to transfer rights in the properties in
which it is purporting to grant a security interest within the meaning
of the Texas UCC; (d) the Article 9 Collateral does not constitute (i)
consumer goods, (ii) timber to be cut, (iii) farm products, (iv)
fixtures, or (v) as-extracted collateral; and (e) each Partnership is
not a transmitting utility under the Texas UCC.
	 
	 	(2)	 	We call to your attention that Sections 9.301
and 9.316 of the Texas UCC, contain and refer to rules under which the
laws of jurisdictions other than Texas would apply to the perfection,
and the effect of perfection or nonperfection, of a security interest.
We further call to your attention that Sections 9.310 and 9.312 of the
Texas UCC

 

 

June 9, 2008

Page 6

	 	 	 	describe situations in which filing is not necessary or is
ineffective to perfect a security interest.
	 
	 	(3)	 	The perfection of the Collateral Agent’s
security interest in any proceeds of the Article 9 Collateral will be
limited as provided in Section 9.315 of the Texas UCC.
	 
	 	(4)	 	We call to your attention that: (a) under
Section 9.316 of the Texas UCC, perfection of any security interest in
the Article 9 Collateral will lapse (i) wherein the time perfections
would have ceased under the law of the applicable jurisdiction, (ii)
four months after the Partnership changes its location to another
jurisdiction or (iii) one year after the Partnership transfers the
Article 9 Collateral to a Person (as defined in the Texas UCC) who
thereby becomes a debtor under the Credit Agreement and the Credit
Documents and who is located in another jurisdiction, unless, in
either case, appropriate steps are taken to perfect such security
interest in such other jurisdiction before the expiration of such
four-month or one-year period, as applicable; (b) under Section 9.507
of the Texas UCC, if the Partnership changes its name so as to make
the Financing Statements seriously misleading, then perfection will
lapse as to any Article 9 Collateral acquired more than four months
after such change unless one or more appropriate financing statements
indicating the new name of such Partnership are properly filed before
the expiration of such four-month period which renders the Financing
Statement not seriously misleading; and (c) Section 9.508 of the Texas
UCC requires the filing of a new financing statement to continue
perfection when the financing statement becomes seriously misleading
as a result of the difference between the name of an original debtor
and a new debtor.
	 
	 	(5)	 	We note that the effectiveness or perfection of
the security interests in the Article 9 Collateral may be impaired,
lost or adversely affected as to such property, or portions thereof,
that (A) as provided in Section 9.336 of the Texas UCC, lose its or
their identity or become part of a product or mass, (B) pursuant to
Section 9.320 of the Texas UCC, are goods purchased by a buyer in the
ordinary course of business, (C) pursuant to Section 9.321 of the Texas
UCC, are general intangibles licensed or goods leased in the ordinary
course of business, (D) are goods purchased by a buyer other than in
the ordinary course of business as provided in Section 9.323(d) of the
Texas UCC, (E) are chattel paper, instruments, documents, securities,
financial assets or security entitlements with respect to which a
purchaser may take free of a security interest under Sections 9.330 and
9.331 of the Texas

 

 

June 9, 2008

Page 7

	 	 	 	UCC, or (F) are goods with respect to which certain buyers may take
free of a security interest under Section 9.337 of the Texas UCC.
	 
	 	(6)	 	We express no opinion with respect to the
effect of applicable law providing for liens securing the claims of
mechanics, materialmen, contractors and other like persons, liens for
wages, and liens securing claims of governmental authorities for taxes
and similar liens which may be applicable to the Article 9 Collateral.

     (c) We express no opinion with respect to the effect of:

	 	(1)	 	Section 552 of the Bankruptcy Code (11 U.S.C.
§552) (relating to property acquired by a pledgor after the
commencement of a case under the United States Bankruptcy Code with
respect to such pledgor) or Section 506(c) of the Bankruptcy Code (11
U.S.C. §506(c)) (relating to certain costs and expenses of a trustee
in preserving or disposing of collateral);
	 
	 	(2)	 	in the case of property which becomes
collateral after the date hereof, Section 547 of the United States
Bankruptcy Code (the “Bankruptcy Code”) which provides that a
transfer is not made until the debtor has rights in the property
transferred, so a security interest in after-acquired property which
is security for other than a contemporaneous advance may be treated as
a voidable preference under the conditions (and subject to the
exceptions) provided by Section 547; and
	 
	 	(3)	 	Section 364 of the Bankruptcy Code which
provides that the extension of secured credit after the commencement
of a case under the Bankruptcy Code requires court approval.

     (d) In rendering the opinions expressed in this opinion letter, we have made no
examination of and express no opinion with respect to: (i) title to or, except as to
adequacy of form, the legal descriptions of any Collateral; (ii) the nature or extent of the
Partnership’s rights in, or title to, any Collateral; or (iii) the existence or
non-existence of liens, security interests, charges or encumbrances thereon or therein
actually of record. We have not independently verified the existence, condition, location or
ownership of any Collateral. Additionally, we express no opinion as to Collateral to the
extent that (as stated in Section 9-109 of the Texas UCC) Article 9 of the Texas UCC is not
applicable or which is subject to a state statute or a statute or treaty of the United
States which provides for a certificate of title or national or international registration.

     (e) The opinions expressed herein are as of the date hereof only, and we assume no
obligation to update or supplement such opinions to reflect any fact or circumstance that

 

 

June 9, 2008

Page 8

may hereafter come to our attention, or any amendment to the Credit Agreement or the Credit
Documents that may hereafter become effective, or any change in law that may hereafter
occur or become effective.

     (f) We do not assume responsibility for (i) the accuracy and completeness or fairness
of any information of a factual nature; including, but not limited to, financial information
furnished or representations and warranties contained in the Credit Agreement or the Credit
Documents or (ii) the fulfillment, completion or performance of any covenants or agreements
contained in the Credit Agreement or the Credit Documents.

     (g) With respect to references herein to “known to us”, “to our knowledge” or words or
phrases of similar import (whether or not modified by any additional phrases), such
references mean the actual, current knowledge that those attorneys of this firm who devoted
substantive attention to the transactions to which this opinion relates (not to the
knowledge of the firm generally) have obtained from the following, which constituted the
examination for the purposes of the applicable opinions: (i) their review of documents in
connection with rendering this opinion, and the due diligence performed in connection
therewith, which review and due diligence were limited to reviewing the Credit Agreement,
the Credit Documents and Other Documents, the exhibits and schedules thereto, the
organizational documents of the Partnerships and certificates of officers of the
Partnerships and which due diligence did not include any examination of courts, boards,
other tribunals or public records with respect to any litigation, investigation or
proceedings, or judgments, orders or decrees, in any event applicable to the Partnerships
or any of their respective properties, (ii) their participation (if any) in the negotiation
of the Credit Agreement or the Credit Documents and (iii) representations and warranties of
the Partnerships set forth in the Credit Agreement or the Credit Documents, or otherwise
made to us in certifications and other writings. Except as otherwise stated in this
opinion, we have undertaken no independent investigation or verification of such matters.

     (h) For purposes of our opinion, “Applicable Laws” means those laws of the
State of Texas which, in our experience, are normally applicable to transactions of the
type contemplated by the Credit Agreement and the Credit Documents. Furthermore, the term
“Applicable Laws” does not include, and we express no opinion with regard to any:
(i) statutes, administrative decisions, ordinances, rules and regulations of any political
subdivision (whether at the federal, state, regional or local level); (ii) conflict of law
principles and choice-of-law statutes and rules; (iii) statutes, laws, rules and
regulations relating to: (A) pollution or protection of the environment, (B) zoning, land
use, usury, building or construction, (C) occupational, safety and health or other similar
matters, (D) labor, employee rights and benefits, including the Employment Retirement
Income Security Act of 1974, as amended, (E) the regulation of utilities, or matters
pertaining to the acquisition, transaction, transportation, storage, or use of energy
sources used in connection therewith or generated thereby, (F) antitrust, unfair
competition and trade, including but not limited to the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, (G) taxation or other

 

 

June 9, 2008

Page 9

similar matters, (H) copyright, patent and trademark, (I) securities, (J) fiduciary duty
requirements, (K) fraudulent transfer or fraudulent conveyance, (L) racketeering, and (M)
the regulation of banks or the conduct of their business; (iv) the Foreign Corrupt Practices
Act; and (v) the Uniting and Strengthening America by Producing Appropriate Tools Required
to Intercept and Obstruct Terrorism Act, and in each case with respect to each of the
foregoing, (X) as construed or enforced pursuant to any judicial, arbitral or other decision
or pronouncement, (Y) as in effect in any jurisdiction, and (Z) including, without
limitation, any and all authorizations, permits, consents, applications, license, approvals,
filings, registrations, publications, exemptions and the like required by any of them.

     (i) For purposes of our opinion, “Government Approvals” means any order, consent,
approval, license, authorization or validation of, filing, recording, or restriction with,
notice to or exemption by, any Texas governmental authority pursuant to any Applicable
Laws.

     (j) This opinion is limited to the laws of the State of Texas.

     This letter constitutes a legal opinion letter issued by our firm only as to the matters set
forth above, and should not be construed as a guarantee, warranty or as any other type of document
or instrument. In this regard, it is only our professional judgment as to the specific questions
of law addressed, based on our professional knowledge and judgment at this time and is prepared
and rendered in accordance with the standard of care applicable to opinion letters issued by law
firms and/or lawyers located in the State of Texas.

     The opinions herein have been furnished to Administrative Agent, Collateral Agent and the
Lenders and are solely for the benefit of the Administrative Agent, Collateral Agent and the
Lenders and their respective assigns and participants, and may not be quoted to or relied upon by
(x) any other person or (y) by you or any other person in any other context without the prior
written consent of the undersigned.

Very truly yours,

Adams and Reese LLP

 

 

June 9, 2008

To the Lenders party to the 
Credit
Agreement referred to below, 
Credit
Suisse, as Agent and 
General Electric
Capital Corporation, as Collateral Agent

			
	Re:	 	Ply Gem Industries, Inc. — $150,000,000 Senior Secured Revolving
Credit Facility (the “Credit Agreement”)

Ladies and Gentlemen:

     We have acted as special counsel in the State of Ohio (the “State”) to Great
Lakes Window, Inc., an Ohio corporation (“GLW”), and Alcoa Home Exteriors, Inc., an
Ohio corporation (“AHE”) (each a “Company” and collectively, the “Companies”), in
connection with (i) the execution and delivery by each Company as a “Grantor” of the
U.S. Security Agreement dated June 9, 2008 (the “Security Agreement”) among Ply Gem
Industries, Inc., a Delaware corporation (the “U.S. Borrower”), Ply Gem Holdings,
Inc. (“Holdings”), each of the Grantors named in the Security Agreement (the
“Grantors”), Credit Suisse as administrative agent (the “Agent”) and General
Electric Capital Corporation, as collateral agent (the “Collateral Agent”), (ii) the
execution and delivery by each Company as a “Guarantor” of the U.S. Guaranty dated
June 9, 2008 (the “Guarantee”) among the U.S. Borrower, Holdings, each of the
Guarantors named in the U.S. Guaranty and the Collateral Agent, (iii) the execution
and delivery by each Company of the Lien Subordination and Intercreditor Agreement
dated June 9, 2008 (the “Intercreditor Agreement”) among the Collateral Agent, U.S.
Bank National Association, as trustee and noteholder collateral agent, the U.S.
Borrower, Holdings and certain subsidiaries of the U.S. Borrower and (iv) the
consummation of the transactions contemplated by the Credit Agreement, among, among
others, the U.S. Borrower, Holdings, CWD Windows and Doors, Inc., as the Canadian
borrower, certain banks and financial institutions from time to time party thereto
as lenders, the Collateral Agent and the Agent, for the sole purpose of rendering
certain opinions relative to laws of the State with regard to the Companies and, in
particular, with regard to the Guarantee and the Security Agreement (the
Intercreditor Agreement, the Guarantee, the Security Agreement, and the Intellectual
Property Security Agreement by U.S. Borrower, Holdings, the Grantors (as defined
therein, in favor of Collateral Agent dated June 9, 2008, are collectively referred
to hereinafter as the “Security Documents”).

     Initial capitalized terms not otherwise defined herein, unless the context
clearly requires a different meaning, shall have the meaning ascribed to such terms
in the Security Agreement.

 

 

The Lenders,

Credit Suisse, as Agent and

General Electric Capital Corporation, as Collateral Agent

June 9, 2008

Page 2

     In addition to the Security Documents, in rendering our opinions we have reviewed and
relied upon: (x) the financing statements attached hereto on Schedule I (the “Financing
Statements”); (y) the certificate of the Secretary of the Companies as attached hereto as Exhibit
“A” (the “Officer Certificate”) with regard to the matters certified therein, inclusive of the
articles of incorporation, as amended, of each Company (the “Articles”), the bylaws, as amended,
of GLW (the “GLW Bylaws”), the regulations, as amended, of AHE (the “AHE Regulations”), each as
attached to the Officer Certificate (collectively, the Articles, GLW Bylaws, and the AHE
Regulations, the “Organizational Documents”), and the relevant resolutions of the Board of
Directors of each Company as attached to the Officer Certificate; and (z) such other certificates,
documents, and records as we have deemed relevant to our opinions and the factual assumptions
underlying the legal conclusions set forth herein.

     Whenever our opinion with respect to the existence or absence of facts is indicated to be
based on our knowledge or awareness as indicated by the use of the words “to our knowledge” or
“known to us,” we are referring to the actual, present knowledge of the particular Marshall &
Melhorn, LLC attorneys who have represented each Company and are indicating that during the course
of such representation no information has come to the attention of such attorneys which would give
such attorneys current actual knowledge of the existence of the facts so qualified. The term
“knowledge” further does not confirm nor is it intended to imply that the lawyers drafting this
opinion letter have made inquiry of one or more representatives of the Companies. Except as
expressly set forth herein, we have not undertaken any independent investigation, examination or
inquiry to determine the existence or absence of any facts (and have not caused the review of any
court file or indices) and no inference as to our knowledge concerning any facts should be drawn
as a result of the limited purpose of rendering this opinion letter. As such, we have not been
requested nor have we reviewed any agreement or other instrument to which either Company is a
party or by which any of the Companies’ properties or assets are bound except as expressly
referenced herein.

I. ASSUMPTIONS

     The opinions rendered in this letter are based upon the following assumptions, together with
such additional assumptions and qualifications as may be more specifically set forth in other
sections of this letter (collectively, “Assumptions”).

	 	1.	 	The negotiation, execution, delivery and performance of the Security Documents
were and
will be free from any fraud, misrepresentation, duress or criminal activity on the
part of any
party.
	 
	 	2.	 	All signatures on all original documents are genuine and authentic. All
documents that were
submitted to us as originals are authentic, true, accurate and complete. All
documents that
were submitted to us as certified or photographic copies conform to the original
documents,
which are themselves authentic, true, accurate and complete.
	 
	 	3.	 	All certificates and other statements, documents and records reviewed by us are
accurate and
complete, and all representations, warranties, schedules and exhibits contained in
the Security
Documents, with respect to the factual matters set forth therein, are accurate and
complete.

 

 

The Lenders,

Credit Suisse, as Agent and

General Electric Capital Corporation, as Collateral Agent

June 9, 2008

Page 3

	 	4.	 	Neither the Agent, the Collateral Agent nor any Lender has actual knowledge
that any of the factual assumptions or opinions contained herein are incorrect.
	 
	 	5.	 	All documents have been duly authorized, executed and delivered by all parties
(other than the Companies) and are enforceable against them in accordance with their respective
terms.
	 
	 	6.	 	Each natural person executing any of the Security Documents is legally
competent to do so,
and all signatures of the parties on the Security Documents are genuine.
	 
	 	7.	 	There are no other agreements or understandings (other than the Security
Documents and the
Credit Agreement) between or among Companies, the Grantors, the Agent, the Collateral
Agent nor any Lender that would expand, modify or otherwise affect the terms of the
Security
Documents or the respective rights or obligations of the parties thereunder and that
the
Security Documents and the Credit Agreement correctly and completely set forth the
complete
understanding of all parties thereto;
	 
	 	8.	 	Each of the Security Documents has been executed and delivered in the form reviewed by
us.

II. OPINIONS

     Subject to the foregoing Assumptions and the Limitations set forth below,
it is our opinion that:

	 	1.	 	The Companies (a) are Ohio corporations, duly organized and validly existing and
in good
standing under the laws of the State, (b) each has all requisite corporate or other
power and
authority to own its property and carry on its business in the State as now being
conducted,
and (c) each is qualified to do business and is in good standing
in the State.
	 
	 	2.	 	The Companies have all requisite corporate or other power and authority to
execute, deliver
and perform all of their respective obligations under the Security Documents to which
each is
a party.
	 
	 	3.	 	Each of the Security Documents to which each Company is a party have been duly
and validly
authorized, executed and delivered by the respective Company.
	 
	 	4.	 	The execution, delivery and compliance by the Companies with all of the
provisions of the
Security Documents and the performance of their respective obligations thereunder
will not
result in a violation of each Company’s respective Organizational Documents or, to
our
knowledge:, (i) any law of the State of Ohio, or (ii) any judgment, order or decree
of any Ohio
court or regulatory authority applicable to the Companies or their respective assets
or
properties.
	 
	 	5.	 	To our knowledge, other than the filing of the Financing Statements in the Office of the
Ohio

 

 

The Lenders,

Credit Suisse, as Agent and

General Electric Capital Corporation, as Collateral Agent

June 9, 2008

Page 4

	 	 	 	Secretary of State, no consent, approval, license or exemption by, or order
or authorization of, or filing, recording or registration with, any Ohio
governmental authority or regulatory body is required in connection with the
execution, delivery and performance by the Companies of each Security Document to
which it is a party.
	 
	 	6.	 	The provisions of the Security Documents are sufficient to create in favor
of the Collateral Agent for the benefit of the Secured Parties (as defined in the
Credit Agreement) a security interest in all right, title and interest of the
Companies in those items and types of collateral described in the Security Documents
(the “Collateral”) in which the Companies have rights and in which a security
interest may be created under Article 9 of the Ohio Uniform Commercial Code as
collateral security for the payment of the Obligations (as defined in the Credit
Agreement). The Financing Statements are in proper form for filing and, when filed in
the Office of the Ohio Secretary of State, are sufficient to perfect the security
interests created by the Security Documents in all right, title and interest of the
Company in those items and types of Collateral listed therein in which a security
interest may be perfected by the filing of a financing statement under the Uniform
Commercial Code as in effect in the State of Ohio.

III. LIMITATIONS

     The foregoing opinion is subject to the following exceptions and limitations (collectively,
“Limitations”):

	 	1.	 	The enforcement and enforceability of the Security Documents and of the rights
and remedies
set forth therein are subject to established and evolving principles of equity
(whether applied
by a court of law or equity), commercial reasonableness, conscionability, good faith
and fair
dealing and to the limitations imposed by applicable law on: (i) the exercise and
availability of
remedies and defenses; (ii) the enforceability of purported waivers of rights and
defenses; and
(iii) the availability of equitable remedies and defenses generally.
	 
	 	2.	 	Our opinions above relating to the existence and good standing of each Company
under the
laws of the State of Ohio are based solely on the Good Standing Certificates issued
by the
Ohio Secretary of State dated May 30, 2008.
	 
	 	3.	 	The opinions expressed in this opinion letter are limited to the laws of the
State of Ohio and
the federal laws of the United States of America, and we assume no responsibility as
to the
applicability or the effect of any other laws. No opinion is expressed herein with
respect to
any laws of any county, city or other political subdivision of the State of Ohio.
	 
	 	4.	 	Our opinions set forth in this opinion letter are based upon the facts in
existence and laws in
effect on the date hereof and we expressly disclaim any obligation to update our
opinions
herein, regardless of whether changes in such facts or laws come to our attention
after the
delivery hereof.

 

 

The Lenders,

Credit Suisse, as Agent and

General Electric Capital Corporation, as Collateral Agent

June 9, 2008

Page 5

	 	5.	 	Insofar as our opinion relates to enforceability of any Security Document, such
opinion is subject to the qualifications that such enforceability may be limited by (i)
all applicable bankruptcy, insolvency (including, without limitation, all laws relating
to fraudulent conveyances and fraudulent transfers), receivership, reorganization,
moratorium, liquidation, conservation, dissolution or similar laws affecting the
enforcement of creditors’ rights generally, (ii) the rights of the United States under
the Federal Tax Lien Act of 1966, as amended, (iii) the application of general
principles of equity, including, without limitation, concepts of materiality,
reasonableness, unconscionability, diligence, good faith and fair dealing, regardless
of whether such enforceability is considered in a proceeding at law or in equity, and
(iv) certain laws and judicial decisions that may limit or make unavailable certain of
the rights and remedies provided in the Security Documents, except that such laws and
decisions do not, in our opinion, materially interfere with the practical realization
of the benefits contemplated by the Security Documents except for the economic
consequence of any procedural delay with may result from such laws
and decisions.
	 
	 	6.	 	No opinion is given on the enforceability of any provisions in the Security
Documents
obligating any party to pay attorneys’ fees and expenses.
	 
	 	7.	 	No opinion is given on the enforceability of any due on sale clause; due on
encumbrance
clause; prepayment or make-whole premium in the event that it is held to be a
penalty, an
unreasonable charge or anything other than a valid liquidated damages clause by a
reviewing
court.
	 
	 	8.	 	No opinion is given on the validity, binding effect or enforceability of
provisions, if any, in
the Security Documents that waive objection to jurisdiction or the manner of service
of
process; confess a judgment or authorize another to confess a judgment; establish
jurisdiction
or venue for disputes and causes of action; waive the right to trial by jury; create
self-help
remedies; impose indemnity liability on others for acts or omissions of the parties
thereto;
establish indemnities or transfer or attempt to transfer liabilities or risks under
any
environmental laws or regulations; appoint any person as attorney-in-fact; waive
rights to
contest a judgment or waive rights to notice and a court trial; or waive the right to
assert lack
of consideration or waive the requirements of good faith, notice and commercial
reasonableness under the Uniform Commercial Code (Chapter 1309 of the Ohio Revised
Code) (the “Ohio UCC”).
	 
	 	9.	 	We also express no opinion as to the following matters:

	 	(i)	 	(1) title to or rights in any of the Collateral, (2) the
perfection of any lien or security interest except as expressly set forth
above, or (3) the priority of any lien or security interest;
	 
	 	(ii)	 	The (a) creation of any security interest purported to be granted in or in
respect of the

 

 

The Lenders,

Credit Suisse, as Agent and

General Electric Capital Corporation, as Collateral Agent

June 9, 2008

Page 6

	 	 	 	following: (i) any real property or equipment used in farming
operations, farm products, crops, timber to be cut, as-extracted collateral,
or rights therein; (ii) policies of insurance (other than as proceeds of
Collateral), receivables due from any government or agency thereof, inventory
which is subject to any negotiable documents of title (such as negotiable
bills of lading or warehouse receipts), consumer goods, beneficial interests
in a trust, letters of credit or accounts resulting from the sale of any of
the foregoing; or (iii) any other property or assets, the creation of a
security interest in which is excluded from the coverage of the Ohio UCC, and
(b) the perfection of any security interest purported to be granted in (i)
any of the assets described under clause (a) above, (ii) except as
specifically provided herein, the effect of federal laws related to
“know-how,” copyrights, patents, trademarks, service marks, licenses, trade
secrets, trade names and other intellectual property, or (iii) any other
property or assets, the perfection of a security interest in which is subject
to (x) a statute or treaty of the United States which provides for a national
or international registration or a national or international certificate of
title for the perfection by recordation of a security interest therein or
which specifies a place of filing different from that specified in the Ohio
Revised Code for filing to perfect or record such security interest, (y) a
certificate of title statute, or (z) the laws of any jurisdiction other than
the State of Ohio or the United States;
	 
	 	(iii)	 	The enforceability of any lien on or security interest in any Collateral:

	 	(a)	 	consisting of goods of a consignor who has
delivered such goods to either
Company under a true consignment (as distinguished from a consignment
intended as security); and
	 
	 	(b)	 	as against a “buyer in the ordinary course of
business” (within the meaning
of the Ohio UCC) of the Collateral.

	 	(iv)	 	The continuation and perfection of the Collateral Agent’s
security interest in the proceeds of the Collateral are limited to the extent
set forth in the Ohio UCC;
	 
	 	(v)	 	We express no opinion as to any actions that may be required to
be taken periodically under the Ohio UCC or any other applicable law for the
effectiveness of any financing statements, or the validity or perfection of any
security interest, to be maintained;
	 
	 	(vi)	 	A security interest in any Collateral that constitutes
after-acquired collateral does not attach until the Company has rights in such
after-acquired Collateral;
	 
	 	(vii)	 	In the case of property which becomes part of the Collateral
after the date hereof, Section 552 of the Bankruptcy Reform Act of 1978, as
amended (the “Bankruptcy Code”) limits the extent to which property acquired
by a debtor after the

 

 

The Lenders,

Credit Suisse, as Agent and

General Electric Capital Corporation, as Collateral Agent

June 9, 2008

Page 7

	 	 	 	commencement of a case under the Bankruptcy Code may be subject to a
security interest arising from a security agreement entered into by the
debtor before the commencement of such case;
	 
	 	(viii)	 	In the case of property which becomes part of the Collateral after the date
hereof, Section 547 of the Bankruptcy Code provides that a transfer is not
made until the debtor has rights in the property transferred, so a security
interest in after-acquired property which is security for other than a
contemporaneous advance may be treated as a voidable preference under the
conditions (and subject to the exceptions) provided by Section 547 of the
Bankruptcy Code;
	 
	 	(ix)	 	The rights of the Collateral Agent with respect to Collateral
consisting of accounts, instruments, licenses, leases, contracts or other
agreements will be subject to the claims, rights and defenses of the other
parties thereto against the Companies;
	 
	 	(x)	 	In the case of any Collateral consisting of licenses or
permits issued by governmental authorities or other persons or entities, the
Companies may not have sufficient rights therein for the security interest of
the Collateral Agent to attach and, even if the Companies have sufficient
rights for the security interest of the Collateral Agent to attach, the
exercise of remedies may be limited by the terms of the license or permit or
require the consent of the governmental authority issuing such license or
permit;
	 
	 	(xi)	 	We note that, if any of the Collateral is evidenced by
instruments or tangible chattel paper or any other property in which a security
interest may be perfected by taking possession (in each case as defined, and as
provided for, in the Ohio UCC), the local law of the jurisdiction where such
property is located will govern the priority of a possessory security interest
in such property and the effect of perfection or non-perfection of a
non-possessory security interest in such property;
	 
	 	(xii)	 	Notwithstanding that Sections 1309.406(D), 1309.407(A) and
1309.408(A) of the Ohio Revised Code render ineffective terms in agreements
which prohibit, restrict or require the consent of the person obligated thereon
to the assignment, transfer of, or the creation, attachment, perfection or
enforcement of a security interest therein or which provide that any such
assignment, transfer, creation, attachment or enforcement gives rise to a
default, breach, right of recoupment, claim, defense, termination, right of
termination or remedy thereunder, such ineffectiveness may nonetheless be
limited as provided in Section 1309.408(C) of the Ohio Revised Code; and
	 
	 	(xiii)	 	The opinions set forth above may also be limited by Sections 1309.320,
1309.323, 1309.335, and 1309.336 of the Ohio Revised Code.

     This opinion is furnished by us solely for your benefit and your respective successors and
assignees

 

 

	The Lenders,

Credit Suisse, as Agent and

General Electric Capital Corporation, as Collateral Agent

June 9, 2008

Page 8

upon the understanding that we are not hereby assuming any professional responsibility to any other
person whatsoever. The opinions expressed herein may not be used or relied upon by any other
person, nor may this letter or any copies of this letter be furnished to any third party, filed
with a governmental agency, quoted, cited or otherwise referred to without our prior written
consent, other than to bank regulatory authorities or as otherwise required by law. This opinion is
given as of the date hereof, and we hereby undertake no, and disclaim any, obligation to advise you
of any change in any matters set forth herein or upon which this opinion is based. This opinion is
provided as a legal opinion only, and not as a guaranty or warranty of the matters discussed
herein.

Very truly yours,

Marshall & Melhorn, LLC

 

 

June 9, 2008

To the Lenders party to the revolving credit agreement referred to below,
Credit Suisse, as Agent and General Electric Capital Corporation, as Collateral
Agent (as defined in the Credit Agreement)

     Re: Ply Gem Industries, Inc. $150,000,000 Credit
Facility

Ladies and Gentlemen:

     We have acted as special counsel in the State of Missouri to Variform, Inc., a
Missouri corporation (the “Company”), in connection with the execution and delivery of
the $150,000,000 Credit Agreement dated as of June 9, 2008 (the
“Credit Agreement”),
by and among Ply Gem Holdings, Inc., a Delaware corporation,
(“Holdings”), Ply Gem
Industries, Inc., a Delaware corporation (the “Specified U.S.
Borrower”), CWD Windows
and Doors, Inc., a Canadian corporation (the “Canadian
Borrower”),  the Company and
the other Subsidiaries of the Specified U.S. Borrower from time to time party hereto
as Borrowers and Guarantors, the financial institutions that are parties thereto as
lenders (collectively, the “Lenders”), and Credit
Suisse, (the “Administrative
Agent”), as Administrative Agent for the Lenders, and General Electric Capital
Corporation (the “Collateral Agent”), as Collateral Agent for the Secured Parties. In
rendering the opinions hereinafter set forth, we have reviewed, among other things,
originals or copies of the following documents (collectively, the
“Documents”):

     (a) the executed Credit Agreement;

     (b) the U.S. Security Agreement dated as of June 9, 2008 among the
Specified
U.S. Borrower, Holdings, the Subsidiaries of the Specified U.S. Borrower
listed on
Schedule I thereto, the Collateral Agent and the Administrative Agent (the
“Security
Agreement”);

     (c) the UCC financing statement described in Schedule A attached hereto
(the “Financing Statement”) relating to the Security Agreement;

     (d) the U.S. Guaranty dated as of June 9, 2008 among Specified U.S.
Borrower, Holdings, the Subsidiaries of the Specified U.S. Borrower listed
on the Annex
thereto and the Collateral Agent;

Kansas
City • Overland Park • St. Louis • Jefferson City • Springfield • Boulder • Washington D.C.* • New york • Denver • Clayton

*Lathrop & Gage DC pllc-Affiliate

 

 

June 9, 2008

Page 2

     (e) the Intellectual Property Security Agreement dated as of June 9, 2008
among the Specified U.S. Borrower, Holdings, the Subsidiaries of the Specified U.S.
Borrower listed on the Annex thereto and the Collateral Agent; and

     (f) the Lien Subordination and Intercreditor Agreement dated as of June 9,
2008, among the Collateral Agent, U.S. Bank National Association, as Trustee and
Noteholder Collateral Agent, the Specified U.S. Borrower, Holdings, and the
Subsidiaries
of the Specified U.S. Borrower listed on Schedule I thereto.

     Unless otherwise defined herein, capitalized terms used herein shall have the meanings
assigned to such terms in the Credit Agreement.

     We are familiar with the corporate proceedings taken by the Company in connection with the
agreements and documents described above and the transactions contemplated thereby. We have
reviewed the articles of incorporation of the Company and all amendments thereto and the Bylaws of
the Company. We have received a certificate of the Secretary of State of Missouri regarding the
good standing of the Company in the State of Missouri. As to matters of law, we express no opinion
as to any matter relating to the laws of any jurisdiction other than the laws of the State of
Missouri.

     We have relied upon the representations made by officers of the Company, including but not
limited to those set forth in the Secretary’s Certificate of even date herewith, as to matters of
fact, upon the accuracy of the factual information set forth in all of the documents referred to
in this opinion and upon certain certificates of public officials.

     We have assumed (i) due authorization, execution and delivery of the agreements and documents
referred to in this opinion by all parties thereto other than the Company, (ii) the enforceability
of all such agreements and documents against all parties thereto, (iii) the power and full legal
right of all such parties other than the Company (without approvals, authorizations, consents or
other orders of any public or private body or board) to execute and deliver all such agreements
and documents and perform all such parties’ obligations thereunder, (iv) that the Company has
rights in the Collateral (as defined in the Security Agreement) in which it has granted a security
interest in the Security Agreement (the “Company Collateral”) and (v) that none of the Company
Collateral is described in Section 9-501(a)(l) of the Uniform Commercial Code as enacted in the
State of Missouri (the “Missouri UCC”). We also have assumed the genuineness of all signatures on
such documents, the authenticity of all documents submitted to us as originals and the conformity
to original documents of all documents submitted to us as copies.

 

 

June 9, 2008

Page 3

     Based upon, and subject to, the foregoing, we are of the opinion that:

     1. The Company is validly existing as a corporation and in good standing under the
laws of the State of Missouri.

     2. The Company has the corporate power and authority to (i) execute and deliver the
Documents, (ii) perform its obligations under the Documents to which it is a party, and (iii)
conduct its business as described in the Annual Report or Form 10-K filed by Ply Gem Holdings,
Inc. with the Securities and Exchange Commission on March 25, 2008, in the section captioned,
“Description of the Business — Siding, Fencing, Railing and Decking Segment.” The execution
and delivery of the Documents to which it is a party by the Company and the performance by the
Company of its obligations thereunder have been duly authorized by all necessary corporate
action on the part of the Company. The Documents to which the Company is a party have been
duly executed and delivered by the Company.

     3. There is no provision in the articles of incorporation or the bylaws of the
Company or in any Missouri statute, rule or regulation binding on the Company that would be
violated by the Company’s execution and delivery of the Documents to which it is a party, nor
do any of the foregoing prohibit performance by the Company of any term, provision, condition,
covenant or other obligation of the Company contained therein.

     4. Assuming the Financing Statement has been properly filed in the office of the
Missouri Secretary of State, no termination statement has been filed with respect to the
Financing Statement and the security interest has not otherwise been released as to any of the
Company Collateral, the security interest granted in the Security Agreement, securing the
Obligations in that portion of the Company Collateral in which a security interest may be
perfected by filing a financing statement in Missouri under the Missouri UCC, is duly
perfected.

     5. The Collateral Agent is permitted, under the laws of Missouri, to exercise
remedies under the Security Agreement for the realization of any of the Collateral in its own
name, as Collateral Agent, without naming all of the Lenders in any applicable legal
proceeding.

     6. The parties’ choice of New York law to govern the Documents, except as
otherwise required by mandatory choice of law rules of the Missouri UCC, would be a valid and
effective choice of law under the laws of Missouri, and adherence to existing judicial
precedents
would lead a Missouri state court or federal court sitting in Missouri that applied Missouri
law to
give effect to such choice of law to govern the parties’ contractual obligations. The only
exceptions would be that remedies provided by the laws of any jurisdiction other than Missouri
would be governed by the laws of such jurisdiction and that if the court, pursuant to the
principles set forth in Section 187 of the Restatement (Second) of Conflict of Laws,
determined
either (i) that the State of New York had no substantial relationship to the parties or the
transaction and there was not otherwise a reasonable basis for the parties’ choice, or (ii)
that the
application of New York law was contrary to a fundamental policy of a jurisdiction that had an

 

 

June 9, 2008

Page 4

interest with respect to the particular issue being considered that was materially greater than the
interest therein of the State of New York and the law of such jurisdiction would govern in the
absence of an effective choice of law by the parties, then the court would not give effect to the
parties’ choice. In addition, such a court might apply the law of Missouri if the issue in
controversy had never been determined in New York. If such a court took the approach of Section
1-105(1) of the Missouri UCC, the choice of law provision in the Documents would be enforceable,
except for certain limited exceptions, unless the State of New York did not bear a “reasonable
relation” to the transaction (although no reported decision by a Missouri court describes what
constitutes a “reasonable relation” under Section 1-105(1) of the UCC). The foregoing assumes that
the choice of New York law to govern the Documents was bona fide and devoid of fraud.

     The opinions set forth above are subject to the following qualifications:

     A. In the event of foreclosure under the Security Agreement, the rights, titles and
interests of any purchaser will be subject to statutory and equitable redemption rights.

     B. We have made no examination of the title to the Company Collateral or any other
property of the Company (collectively, the “Property”), and we express no opinion (i) as to
the
Company’s title to and rights in the Property and (ii) as to whether the description of the
property
included in the Security Agreement or the Financing Statement is accurate and complete.

     C. We express no opinion with respect to any environmental laws, rules, or
regulations, or any laws or regulations governing the sale or issuance of securities.

     D. Our opinion regarding the corporate power of the Company to enter into and
perform its obligations under the U.S. Guaranty is subject to the qualification that such
power
may be affected by Article 11, Section 7 of the Missouri Constitution, which provides that “No
corporation shall issue stock or bonds or other obligations for the payment of money, except
for
money paid, labor done or property actually received . . . .” The quoted provision of Article
11,
Section 7 of the Missouri Constitution has not been judicially interpreted with respect to its
effect on a guaranty executed by a corporation incorporated under Missouri law. Nonetheless,
it
is our opinion that the Company’s entry into and performance of its obligations under the U.S.
Guaranty are within the corporate power of the Company.

     This opinion letter is being furnished to you and your permitted successors and assigns for
your and their use and the use of your and their respective counsel in connection with the
Transactions contemplated by the Documents. No other parties may rely on this opinion except that
it may be circulated to any prospective Lender or Agent in accordance with the Credit Agreement
and may be relied upon by any person who, in the future, becomes a Lender or Agent. No other use
of this opinion may be made without our prior written consent.

 

 

June 9, 2008

Page 5

     The opinions set forth in this opinion letter are effective as of the date hereof. We express
no opinions other than as herein expressly set forth, and no expansion of our opinions may be made
by implication or otherwise. We do not undertake to advise you of any matter within the scope of
this opinion letter which comes to our attention after the delivery of this opinion letter and
disclaim any responsibility to advise you of future changes in law or fact which may affect the
above opinions. This opinion letter is solely for your use in connection with the transaction
indicated above and is not to be relied upon by any other person or quoted from in whole or in part
without the express written consent of this firm.

Very truly yours,

 

 

SCHEDULE A

The UCC financing statement relating to the Security Agreement for Variform, Inc. is attached to
this schedule.

 

 

	UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
A. NAME & PHONE OF CONTACT AT FILER [optional]
UCC Filings 518-434-0938
B. SEND ACKNOWLEDGMENT TO: (Name and Address)
(National Corporate Research I
41 State Street Suite 600 Albany, NY 12207
L J
THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1. DEBTORS EXACT FULL LEGAL NAME — insertonlyonedebtor name (1 aoc 1 b) -do not abbreviate or combine names
1a. ORGANIZATIONS NAME
- VARIFORM, INC.
OR 1b. INDIVIDUALSLASTNAME. I FIRST NAME IMIDDLENAMEI SUFFIX
1c. MAILING ADDRESS CITY STATE I POSTAL CODE COUNTRY
2600 GRAND BLVD., SUITE 900 KANSAS CITY MO 64108
1d SEE INSTRUCTIONS I ADDL INFO RE Me. TYPE OF ORGANIZATION 1f JURISDICTION OF ORGANIZATION 1 g. ORGANIZATIONAL ID , if any
gTA0NRZATION Corporation [Missouri ,00111906 r-]NONE
2. ADDITIONAL DEBTORS EXACT FULL LEGAL NAME — insert only one debtor name (2a or 2b) — do not abbreviate or combine names
2a. organizations name
or 2b. individuals last name i first name imiddle name i suffix
2c. mailing address city state i postal code country
2d see instructions addl info re i 2e type of organization 2f. jurisdiction of organization 2g. organizational id , if any
organization _
debtor            unone
3. SECURED PARTYS NAME (orNAMEofTOTAL ASSIGNEE of ASSIGNOR S/P)-insertonlyane. secured party name (3a or 3b)
3a. ORGANIZATIONS NAME
U.S. BANK NATIONAL ASSOCIATION, AS NOTEHOLDER COLLATERAL AGENT
OR
3b. INDIVIDUALS LAST NAME FIRST NAME MIDDLE NAME SUFFIX
3c MAILING ADDRESS CITY STATE [POSTAL CODE COUNTRY
ATTN: CORPORATE TRUST SERVICES, 60 LIVINGSTON c nAiir iv/ixt cc 1 at iim
- avenue,EP-MN-WS3C ST. PAUL MN [55107-2292 [
4. This FINANCING STATEMENT covers the following collateral:
ALL ASSETS
5. ALTERNATIVE DESIGNATION [if applicable]:LESSEE/LESSOR M CONSIGNEE/CONSIGNOR LjsAILEBBAILOR SELLER/BUYER JAG. LIEN flNON-UPC FILING
TTrTiisTiNAcTNGTATEETTsToTeTlfflfoneOTrdHcTTecoTddTi
        .ETJgECRflgtja]djlejjonj_jf1gelic
8. OPTIONAL FILER REFERENCE DATA F 2 2 5 9 97
2164-440 — MO — Secretary of State a 33 8 613
FILING OFFICE COPY- UCC FINANCING STATEMENT (FORM UCC1) (REV. 05/22/02)

 

 

EXHIBIT K

COMPANY NAME

Report No. 1           As of:

					
	 	 	 	 	 
	BORROWING BASE CERTIFICATE
	 	INPUT CELLS — Enter ACTUAL Amounts
	 	 

COLLATERAL ACTIVITY

	 	 	 	 	 	 	 	 	 
	ACCOUNTS RECEIVABLE:	 	Total	 
	 	1	 	 	Beginning Accounts Receivable Balance
	 	 	0.00	 
	 	2	 	 	Gross Sales (Invoices)
	 	 	0.00	 
	 	3	 	 	Debit Memos/Others Adjustments
	 	 	0.00	 
	 	4	 	 	Credit Memos/Other Adjustments
	 	 	0.00	 
	 	5	 	 	TOTAL NET SALES (2+3-4)
	 	 	0.00	 
	 	 	 	 	 
	 	 	 	 
	 	6	 	 	A/R Collections
	 	 	0.00	 
	 	7	 	 	Non A/R Collections
	 	 	0.00	 
	 	8	 	 	Discounts/Allowances
	 	 	0.00	 
	 	9	 	 	TOTAL DEDUCTIONS (6+7+8)
	 	 	0.00	 
	 	10	 	 	Net Ending Balance
	 	 	0.00	 
	 	11	 	 	Less: Ineligible Accounts
	 	 	0.00	 
	 	12	 	 	Total Eligible Accounts Receivable
	 	 	0.00	 
	 	13	 	 	Accounts Receivable availability @ 85%
	 	 	0.00	 
	 	 	 	 	 
	 	 	 	 
	 	14	 	 	A/R AVAILABLE
	 	 	0.00	 
	 
	RAW MATERIALS INVENTORY:	 	TOTAL	 
	 	15	 	 	Gross Raw Materials Inventory Balance
	 	 	0.00	 
	 	16	 	 	Ineligible Raw Materials Inventory
	 	 	0.00	 
	 	17	 	 	Eligible Raw Materials Inventory
	 	 	0.00	 
	 	18	 	 	Inventory Availability @ 0% of Line 17 - Test One
	 	 	0.00	 
	 	19	 	 	Net Book Value of Raw Materials multiplied by RM NOLV Percent
	 	 	0.00	 
	 	 	 	 	Net Book Value of RM 0.00 NOLV Percentage
	 	 	 	 
	 	20	 	 	Inventory Availability @ 85% of Line 19 - Test Two
	 	 	0.00	 
	 	21	 	 	INVENTORY AVAILABLE (Lesser of Line 18 and Line 20)
	 	 	0.00	 
	 
	WORK IN PROCESS INVENTORY:	 	TOTAL	 
	 	22	 	 	Gross Work in Process Inventory Balance
	 	 	0.00	 
	 	23	 	 	Ineligible Work in Process Inventory
	 	 	0.00	 
	 	24	 	 	Eligible Work in Process Inventory
	 	 	0.00	 
	 	25	 	 	Inventory Availability @ 0% of Line 24 - Test One
	 	 	0.00	 
	 	26	 	 	Net Book Value of WIP Inventory multiplied by NOLV Percent on Raw Materials
	 	 	0.00	 
	 	 	 	 	Net Book Value of WIP 0.00 NOLV Percentage
	 	 	 	 
	 	27	 	 	Inventory Availability @ 85% of Line 26 - Test Two
	 	 	0.00	 
	 	28	 	 	INVENTORY AVAILABLE (Lesser of Line 25 and Line 27)
	 	 	0.00	 
	 
	FINISHED GOODS INVENTORY:	 	TOTAL	 
	 	29	 	 	Gross Finished Goods Inventory Balance
	 	 	0.00	 
	 	30	 	 	Ineligible Finished Goods Inventory
	 	 	0.00	 

Page 1

 

	 	 	 	 	 	 	 	 	 
	FINISHED GOODS INVENTORY:	 	TOTAL	 
	 	31	 	 	Eligible Finished Goods Inventory
	 	 	0.00	 
	 	32	 	 	Inventory Availability @ of Line 31 - Test One
	 	 	0.00	 
	 	33	 	 	Net Book Value of Finished Goods Inventory multiplied by FG NOLV Percent
	 	 	0.00	 
	 	 	 	 	Net Book Value of WIP 0.00 NOLV Percentage
	 	 	 	 
	 	34	 	 	Inventory Availability @ 85% of Line 33 - Test Two
	 	 	0.00	 
	 	35	 	 	INVENTORY AVAILABLE (Lesser of Line 32 and Line 34)
	 	 	0.00	 
	 	 	 	 	 
	 	 	 	 
	 	36	 	 	TOTAL INVENTORY AVAILABLE (Lesser of sum of line 21, 28 and 35 or $XX,000,000)
	 	 	0.00	 
	 	 	 	 	 
	 	 	 	 
	 	37	 	 	AVAILABLE A/R AND INVENTORY:
	 	 	0.00	 
	 	38	 	 	GROSS AVAILABLE (LESSER OF LINE 37 OR $XX,000,000)
	 	 	0.00	 
	 	 	 	 	 
	 	 	 	 
	REVOLVING LOAN ACTIVITY:	 	 	0.00	 
	 	39	 	 	Beginning Loan Balance
	 	 	0.00	 
	 	40	 	 	Total Collections
	 	 	0.00	 
	 	41	 	 	Advance Requirements
	 	 	0.00	 
	 	42	 	 	Interest, Fees, Other Adjustments
	 	 	0.00	 
	 	43	 	 	Ending Loan Balance
	 	 	0.00	 
	 	 	 	 	 
	 	 	 	 
	 	44	 	 	LETTER OF CREDIT BALANCE (@100%)
	 	 	0.00	 
	 	45	 	 	OTHER
RESERVES                        (@100%)
	 	 	0.00	 
	 	46	 	 	OTHER RESERVES                        (@100%)
	 	 	0.00	 
	 	 	 	 	 
	 	 	 	 
	 	47	 	 	TOTAL AVAILABLE TO BORROW
	 	$	0.00	 

THE UNDERSIGNED REPRESENTS AND WARRANTS THAT THE FOREGOING INFORMATION IS TRUE, COMPLETE AND
CORRECT, AND THAT THE COLLATERAL REFLECTED HEREIN COMPLIES WITH THE CONDITIONS, TERMS, WARRANTIES,
REPRESENTATIONS AND COVENANTS SET FORTH IN THE CREDIT AGREEMENT BETWEEN THE UNDERSIGNED AND GE
CAPITAL CORP. AS AGENT AND ANY SUPPLEMENTS AND AMENDMENTS, IF ANY, THERETO (THE “CREDIT
AGREEMENT”). THE PROVISIONS OF THIS CERTIFICATE SHALL NOT BE CONSTRUED TO AMEND OR OTHERWISE MODIFY
ANY BORROWING BASE OR ELIGIBILITY CRITERIA SET FORTH IN THE CREDIT AGREEMENT. THE AVAILABILITY
RATES SET FORTH ABOVE, ALONG WITH THE RESERVES ARE SUBJECT TO ADJUSTMENT IN ACCORDANCE WITH THE
CREDIT AGREEMENT.

	 	 	 

	 

	 	Prepared by:
	 
	 	 
	          BORROWER:

	 	Authorized Signature:

Page 2

 

Reconciliations

INPUT CELLS — Enter ACTUAL Amounts

Client Reporting

Collateral Reconciliation (1)

	 	 	 	 	 	 	 

	General Ledger A/R Balance:
	 	(as of                     )	 	 	0.00	 
	 
	 	 	 	 	 	 
	Balance per Aging:
	 	 	 	 	0.00	 
	 
	 	 	 	 	 
	Difference:
	 	 	 	 	0.00	 
	 
	 	 	 	 	 	 
	Explanation of Differences:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Description
	 	Amount	 	 	 	 
	 
	 	 	 	 	0.00	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	0.00	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	0.00	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Total Unreconciled Difference
(Change calc depending on if GL or Aging is higher)	 	 	0.00	 
	 
	 	 	 	 	 	 
	General Ledger Inventory Balance:
	 	(as of                     )	 	 	0.00	 
	 
	 	 	 	 	 	 
	Balance per Inventory Report:
	 	 	 	 	0.00	 
	 
	 	 	 	 	 
	Difference:
	 	 	 	 	0.00	 
	 
	 	 	 	 	 	 
	Explanation of Difference:
	 	 	 	 	 	 
	Description
	 	Amount	 	 	 	 
	 
	 	 	 	 	0.00	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	0.00	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	0.00	 
	 	 	 	 	 	 
	Total Unreconciled Difference
(Change calc depending on if GL or Perpetual is higher)	 	 	0.00	 
	 
	 	 	 	 	 

					
	 	 	 	 	 
	 
	 	Authorized Signer:                                         
	 	Date:                               

 

			
	(1)	 	To be prepared at each month-end only.

Page 1

 

	 	 	 	 	 	 	 

	 	 	 	 	INPUT CELLS —
Enter ACTUAL Report#
	Inventory Report

	 	Date:
	 	 	 	 

	 	 	 	 	 
	Inventory	 	 
	Composition	 	Total
	Raw Materials
	 	 	0.00	 
	Work In Process
	 	 	0.00	 
	Finished Goods
	 	 	0.00	 
	 
	 	 	 	 
	Total Inventory
	 	 	0.00	 
	 
	 	 	 	 
	 
	 	 	 	 
	INELIGIBLE RAW MATERIALS
	 	 	 	 
	Excess/Slow Moving
	 	 	0.00	 
	Packing or Shipping Materials
	 	 	0.00	 
	Inventory in violation of applicable regulations/laws
	 	 	0.00	 
	Non US/CDN Inventory
	 	 	0.00	 
	Consignment or offsite locations where Lien Waivers not obtained
	 	 	0.00	 
	Unperfected Liens
	 	 	0.00	 
	Inaccuracies in Credit Agreement or Security Agreement
	 	 	0.00	 
	In Transit (other than Eligible In-Transit)
	 	 	0.00	 
	Other Ineligible
	 	 	0.00	 
	Other Ineligible
	 	 	0.00	 
	 
	 	 	 	 
	TOTAL RM INELIGIBLES
	 	 	0.00	 
	 
	 	 	 	 
	 
	 	 	 	 
	INELIGIBLE WORK IN PROCESS
	 	 	 	 
	Work In Process ineligible
	 	 	0.00	 
	 
	 	 	 	 
	TOTAL WIP INELIGIBLES
	 	 	0.00	 
	 
	 	 	 	 
	 
	 	 	 	 
	INELIGIBLE FINISHED GOODS
	 	 	 	 
	Excess/Slow Moving
	 	 	0.00	 
	Packing or Shipping Materials
	 	 	0.00	 
	Inventory in violation of applicable regulations/laws
	 	 	0.00	 
	Non US/CDN Inventory
	 	 	0.00	 
	Consignment or offsite locations where Lien Waivers not obtained
	 	 	0.00	 
	Unperfected Liens
	 	 	0.00	 
	Inaccuracies in Credit Agreement or Security Agreement
	 	 	0.00	 
	In Transit (other than Eligible In-Transit)
	 	 	0.00	 
	Other Ineligible
	 	 	0.00	 
	Other Ineligible
	 	 	0.00	 

 

 

	 	 	 	 	 
	Inventory	 	 
	Composition	 	Total
	TOTAL FG INELIGIBLES
	 	 	0.00	 
	 
	 	 	 	 
	 
	 	 	0.00	 
	 
	 	 	 	 
	 
	 	 	 	 
	RESERVES
	 	 	 	 
	Rent
	 	 	0.00	 
	Other
	 	 	0.00	 
	Other
	 	 	0.00	 
	 
	 	 	 	 
	TOTAL RESERVES
	 	 	0.00	 
	 
	 	 	 	 

 

 

			
	 	 	 
	 	 	INPUT CELLS — Enter ACTUAL Amounts          

Ineligible Detail per Credit Agreement

Aging Date:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Accounts Receivable:	 	 	 	 	 	 	 	 	 	 	 	 	 	Total
	(a)	 	Outside ordinary course of business, no invoice, contingent, interest payment
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(b)	 	Payable not in US/CDN currency or not on customary terms
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(c)	 	Sales/Services to or for benefit of Subsidiary or Affiliate
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(d)	 	Past due beyond time limit and/or written-off/uncollectible
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(e)	 	Any Person more than 50% of Accounts owed are past due beyond time limit
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(f)	 	Accounts more than 20% of net Eligibles (to extent of excess)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(g)	 	Disputed accounts/Claim against borrower
	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0	 
	(h)	 	Accounts owing from Person subject to insolvency proceedings
	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0	 
	(i)	 	Supplier/creditor Accounts
	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0	 
	(j)	 	Non US/CDN Debtors
	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0	 
	(k)	 	Bill-on-hold, cash in advance, etc.
	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0	 
	(l)	 	Government account debtors
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(m)	 	Inaccuracies in Credit Agreement or Security Agreement
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(n)	 	Unperfected liens
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(o)	 	Accounts in violation of applicable regulations/laws
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(p)	 	Unshipped goods or uncollected checks
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(q)	 	Unacceptable or subject to a reserve acceptable to Agents
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Total A/R Ineligible
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cross Age 25% Rule Worksheet:	 	Total	 	Past Due	 	Additional	 	25% of	 	 	 	 
	Customer Name	 	Balance	 	Amount	 	Ineligible	 	Balance	 	 	 	 
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	YES
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	YES
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	YES
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	YES
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	YES
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	YES
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	YES
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	YES
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	YES
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	YES
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Ineligible
	 	 	 	 	 	 	 	 	 	 	0	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Eligible Foreign Receivables in Excess of Caps Worksheet	 	 	 	 	 	 	 	 	 	 
	($0.0MM cap per account and $0MM aggregate cap)	 	Remaining	 	 	 	 	 	Amount	 	Total Eligible
	Customer Name	 	Eligible Balance	 	Cap	 	Over Cap	 	Balance
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total over individual account cap of $0.0MM
	 	 	 	 	 	 	 	 	 	 	0	 	 	 	 	 
	Total Eligible (cap of $0MM)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	Total over aggregate cap of $0MM
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Ineligible
	 	 	 	 	 	 	 	 	 	 	0	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Concentration Caps Worksheet	 	 	 	 	 	 	 	 	 	 
	(Greater of $X.XMM or 00% of eligible accounts)	 	 	 	 	 	 	 	 	 	 
	00% Concentration Limit ($)	 	 	 	 	 	Remaining	 	Concentration	 	Additional
	Customer Name	 	 	 	Eligible Balance	 	Limit	 	Ineligible
	 
	 	 	 	 	 	 	0	 	 	 	4,000,000	 	 	 	0	 
	 
	 	 	 	 	 	 	0	 	 	 	4,000,000	 	 	 	0	 
	 
	 	 	 	 	 	 	0	 	 	 	4,000,000	 	 	 	0	 
	 
	 	 	 	 	 	 	0	 	 	 	4,000,000	 	 	 	0	 
	 
	 	 	 	 	 	 	0	 	 	 	4,000,000	 	 	 	0	 

 

 

EXHIBIT L

PERFECTION CERTIFICATE

     Reference is made to the Indenture (as amended, supplemented or otherwise modified from time
to time, the “Indenture”) dated as of [•], 2008 among Ply Gem Industries, Inc., a Delaware
corporation (the “Issuer”), Ply Gem Holdings, Inc., a Delaware corporation (“Holdings” and,
together with the Issuer and the Subsidiary Guarantors, the “Grantors”), and [•], as trustee and
collateral agent (in such capacity, the “Collateral Agent”) and as collateral agent. Capitalized
terms used but not defined herein have the meanings set forth in either the Indenture or the
Collateral Agreement referred to therein, as applicable.

     The undersigned Responsible Officers of Holdings and the Issuer hereby certify to the
Administrative Agent and each other Secured Party as follows:

1. Names. (a) The exact legal name of each Grantor, as such name appears in its
respective certificate of formation, is as follows:

	 	 	 	 	 
	 	 	Exact Legal Name of Each Grantor	 	 
	 	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 

     (b) Set forth below is each other legal name each Grantor has had in the past five years,
together with the date of the relevant change:

	 	 	 	 	 
	 	 	Other Legal Name in Past 5	 	Date of Name
	Grantor	 	Years	 	Change
	 	 	 	 	 
	 
	 	 
	 	 
	 	 	 	 	 
	 
	 	 
	 	 
	 	 	 	 	 
	 
	 	 
	 	 

     (c) Except as set forth in Schedule 1 hereto, no Grantor has changed its identity or
corporate structure in any way within the past five years. Changes in identity or corporate
structure would include mergers, consolidations and acquisitions, as well as any change in the
form, nature or jurisdiction of organization. If any such change has

 

17

occurred, include in Schedule 1 the information required by Sections 1 and 2 of this certificate as
to each acquiree or constituent party to a merger or consolidation.

     (d) The following is a list of all other names (including trade names or similar
appellations) used by each Grantor or any of its divisions or other business units in connection
with the conduct of its business or the ownership of its properties at any time during the past
five years:

	 	 	 
	Grantor	 	Other Name Used
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 

     (e) Set forth below is the Organizational Identification Number, if any, issued by the
jurisdiction of formation of each Grantor that is a registered organization:

	 	 	 
	Grantor	 	Organizational Identification Number
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 

     (f) Set forth below is the Federal Taxpayer Identification Number of each
Grantor14:

	 	 	 
	Grantor	 	Federal Taxpayer Identification Number
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 

 

			
	14	 	Only necessary for filing in North Dakota and South Dakota.

 

18

2. Current Locations. (a) The chief executive office of each Grantor is located at the
address set forth opposite its name below:

	 	 	 	 	 	 	 
	Grantor	 	Mailing Address	 	County	 	State
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 

     (b) Set forth below opposite the name of each Grantor are all locations where such Grantor
maintains any books or records relating to any Accounts Receivable (with each location at which
chattel paper, if any, is kept being indicated by an “*”):

	 	 	 	 	 	 	 
	Grantor	 	Mailing Address	 	County	 	State
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 

     (c) The jurisdiction of formation of each Grantor that is a registered organization is set
forth opposite its name below:

	 	 	 
	Grantor	 	Jurisdiction
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 

     (d) Set forth below opposite the name of each Grantor are all the locations where such
Grantor maintains any Equipment or other Collateral not identified above:

	 	 	 	 	 	 	 
	Grantor	 	Mailing Address	 	County	 	State
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 

 

19

     (e) Set forth below opposite the name of each Grantor are all the places of business of such
Grantor not identified in paragraph (a), (b), (c) or (d) above:

	 	 	 	 	 	 	 
	Grantor	 	Mailing Address	 	County	 	State
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 

     (f) Set forth below is a list of all real property held by each Grantor, whether owned or
leased, the name of the Grantor that owns or leases said property and the fair market value
apportioned to each site:

	 	 	 	 	 	 	 
	Address	 	Owned/Leased	 	Entity	 	Value
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 

     (g) Set forth below opposite the name of each Grantor are the names and addresses of all
Persons other than such Grantor that have possession of any of the Collateral of such Grantor:

	 	 	 	 	 	 	 
	Grantor	 	Mailing Address	 	County	 	State
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 

 

20

3. Unusual Transactions. All Accounts have been originated by the Grantors and all
Inventory has been acquired by the Grantors in the ordinary course of business.

4. File Search Reports. File search reports have been obtained from each Uniform
Commercial Code filing office identified with respect to such Grantor in Section 2 hereof, and such
search reports reflect no liens against any of the Collateral other than those permitted under the
Indenture.

5. UCC Filings. Financing statements in substantially the form of Schedule 5 hereto have
been prepared for filing in the proper Uniform Commercial Code filing office in the jurisdiction in
which each Grantor is located and, to the extent any of the collateral is comprised of fixtures,
timber to be cut or as extracted collateral from the wellhead or minehead, in the proper local
jurisdiction, in each case as set forth with respect to such Grantor in Section 2 hereof.

6. Schedule of Filings. Attached hereto as Schedule 6 is a schedule setting forth, with
respect to the filings described in Section 5 above, each filing and the filing office in which
such filing is to be made.

7. Stock Ownership and other Equity Interests. Attached hereto as Schedule 7 is a true
and correct list of all the issued and outstanding stock, partnership interests, limited liability
company membership interests or other Equity Interests held by, directly or indirectly, Holdings,
the Issuer or any Subsidiary and the record and beneficial owners of such stock, partnership
interests, membership interests or other Equity Interests. Also set forth on Schedule 7 is each
equity investment held by, directly or indirectly, Holdings, the Issuer or any Subsidiary that
represents 50% or less of the Equity Interests of the entity in which such investment was made.

8. Debt Instruments. Attached hereto as Schedule 8 is a true and correct list of all
promissory notes and other evidence of indebtedness held by Holdings, the Issuer and each
Subsidiary that are required to be pledged under the Guarantee and Collateral Agreement, including
all intercompany notes between Holdings and any subsidiary of Holdings and any subsidiary of
Holdings and any other such subsidiary.

9. Deposit Accounts. Attached hereto as Schedule 9 is a true and correct list of deposit
accounts, brokerage accounts or securities investment accounts maintained by any Grantor, including
the name and address of the depositary institution, the type of account, and the account number.

10. Assignment of Claims Act. Attached hereto as Schedule 10 is a true and correct list
of all written contracts between the Issuer or any Subsidiary and the United States government or
any department or agency thereof that have a remaining value of at least $5,000,000, setting forth
the contract number, name and address of contracting officer (or other party to whom a notice of
assignment under the Assignment of Claims Act should

 

21

be sent), contract start date and end date,
agency with which the contract was entered into, and a description of the contract type.

11. Advances. Attached hereto as Schedule 11 is (a) a true and correct list of all
advances made by Holdings to any subsidiary of Holdings or made by any subsidiary of Holdings to
Holdings or to any other subsidiary of Holdings (other than those identified on Schedule 8), which
advances will be on and after the date hereof evidenced by one or more intercompany notes pledged
to the Administrative Agent under the Guarantee and Collateral Agreement and (b) a true and correct
list of all unpaid intercompany transfers of goods sold and delivered by or to any Grantor.

12. Mortgage Filings. Attached hereto as Schedule 12 is a schedule setting forth, with
respect to each mortgaged property, (a) the exact name of the person that owns such property as
such name appears in its certificate of incorporation or other organizational document, (b) if
different from the name identified pursuant to clause (a), the exact name of the current record
owner of such property reflected in the records of the filing office for such property identified
pursuant to the following clause and (c) the filing office in which a mortgage with respect to such
property must be filed or recorded in order for the Administrative Agent to obtain a perfected
security interest therein.

13. Intellectual Property. Attached hereto as Schedule 13A in proper form for filing with
the United States Patent and Trademark Office is a schedule setting forth all of each Grantor’s
Patents, Patent Licenses, Trademarks and Trademark Licenses, including the name of the registered
owner, the registration number and the expiration date of each Patent, Patent License, Trademark
and Trademark License owned by any Grantor. Attached hereto as Schedule 13B in proper form for
filing with the United States Copyright Office is a schedule setting forth all of each Grantor’s
Copyrights and Copyright Licenses, including the name of the registered owner, the registration
number and the expiration date of each Copyright or Copyright License owned by any Grantor.

14. Commercial Tort Claims. Attached hereto as Schedule 14 is a true and correct list of
commercial tort claims in excess of $500,000 held by any Grantor, including a brief description
thereof.

 

22

          IN WITNESS WHEREOF, the undersigned have duly executed this certificate on this [•] day of
[•].

	 	 	 	 	 
	 	Ply Gem Industries, Inc.,

 	 
	 	by  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Ply Gem Holdings, Inc.,

 	 
	 	by  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

SCHEDULE 1

Changes in Identity or Corporate Structure Within Past Five Years

 

 

SCHEDULE 5

UCC Financing Statements

 

 

SCHEDULE 6

UCC Filings and Filing Offices

 

 

SCHEDULE 7

Stock Ownership and Other Equity Interests

 

 

SCHEDULE 8

Debt Instruments

 

 

SCHEDULE 9

Deposit Accounts

 

 

SCHEDULE 10

Government Contracts

 

 

SCHEDULE 11

Advances

 

 

SCHEDULE 12

Mortgage Filings

 

 

SCHEDULE 13A

Patents, Patent Licenses, Trademarks and Trademark Licenses

 

 

SCHEDULE 13B

Copyrights and Copyright Licenses

 

 

SCHEDULE 14

Commercial Tort Claimsexv4w3

Exhibit 4.3

Execution Copy

 

CREDIT AGREEMENT

Dated as of June 9, 2008

among

PLY GEM HOLDINGS, INC.,

PLY GEM INDUSTRIES, INC.,

as the Specified U.S. Borrower,

CWD WINDOWS AND DOORS, INC.,

as the Canadian Borrower,

The Other Borrowers Named Herein,

CREDIT SUISSE,

as Administrative Agent, U.S. Swing Line Lender and U.S. L/C Issuer,

GENERAL ELECTRIC CAPITAL CORPORATION,

as Collateral Agent,

CREDIT SUISSE, TORONTO BRANCH

as Canadian Swing Line Lender and Canadian L/C Issuer,

The Other Lenders Party Hereto,

CREDIT SUISSE SECURITIES (USA) LLC,

as Sole Lead Arranger and Sole Bookrunner

and

GENERAL ELECTRIC CAPITAL CORPORATION,

as Syndication Agent

and

UBS Loan Finance LLC,

as Documentation Agent

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I

	 
	 	 	 	 
	Definitions and Accounting Terms

	 
	 	 	 	 
	SECTION 1.01. Defined Terms
	 	 	6	 
	SECTION 1.02. Other Interpretive Provisions
	 	 	63	 
	SECTION 1.03. Accounting Terms
	 	 	64	 
	SECTION 1.04. Rounding
	 	 	65	 
	SECTION 1.05. Times of Day
	 	 	65	 
	SECTION 1.06. Letter of Credit Amounts
	 	 	65	 
	SECTION 1.07. Currency Equivalents Generally
	 	 	65	 
	 
	 	 	 	 
	ARTICLE II

	 
	 	 	 	 
	The Commitments and Credit Extensions

	 
	 	 	 	 
	SECTION 2.01. The Loans
	 	 	66	 
	SECTION 2.02. Borrowings, Conversions and Continuations of Loans
	 	 	73	 
	SECTION 2.03. Letters of Credit Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of Credit
	 	 	75	 
	SECTION 2.04. Swing Line Loans
	 	 	82	 
	SECTION 2.05. Prepayments
	 	 	89	 
	SECTION 2.06. Termination or Reduction of Commitments
	 	 	91	 
	SECTION 2.07. Repayment of Loans
	 	 	92	 
	SECTION 2.08. Interest
	 	 	92	 
	SECTION 2.09. Fees
	 	 	93	 
	SECTION 2.10. Computation of Interest and Fees; Retroactive Adjustments of Applicable Rate
	 	 	94	 
	SECTION 2.11. Evidence of Debt
	 	 	95	 
	SECTION 2.12. Payments Generally; Administrative Agent’s Clawback
	 	 	95	 
	SECTION 2.13. Sharing of Payments by Lenders
	 	 	98	 
	SECTION 2.14. Nature of Obligations
	 	 	99	 
	SECTION 2.15. Borrower Agent
	 	 	100	 
	SECTION 2.16. Incremental Revolving Credit Commitments
	 	 	101	 
	 
	 	 	 	 
	ARTICLE III

	 
	 	 	 	 
	Taxes, Yield Protection and Illegality

	 
	 	 	 	 
	SECTION 3.01. Taxes
	 	 	102	 
	SECTION 3.02. Illegality
	 	 	106	 
	SECTION 3.03. Inability to Determine Rates
	 	 	106	 
	SECTION 3.04. Increased Costs; Reserves on Eurodollar Rate Loans
	 	 	107	 

 

2

	 	 	 	 	 
	 	 	Page	 
	SECTION 3.05. Compensation for Losses
	 	 	108	 
	SECTION 3.06. Mitigation Obligations; Replacement of Lenders
	 	 	109	 
	SECTION 3.07. Survival
	 	 	110	 
	 
	 	 	 	 
	ARTICLE IV

	 
	 	 	 	 
	Conditions Precedent to Credit Extensions

	 
	 	 	 	 
	SECTION 4.01. Conditions of Initial Credit Extension
	 	 	110	 
	SECTION 4.02. Conditions to all Credit Extensions
	 	 	116	 
	 
	 	 	 	 
	ARTICLE V

	 
	 	 	 	 
	Representations and Warranties

	 
	 	 	 	 
	SECTION 5.01. Existence, Qualification and Power; Compliance with Laws
	 	 	118	 
	SECTION 5.02. Authorization; No Contravention
	 	 	118	 
	SECTION 5.03. Governmental Authorization; Other Consents
	 	 	118	 
	SECTION 5.04. Binding Effect
	 	 	118	 
	SECTION 5.05. Financial Statements; No Material Adverse Effect
	 	 	119	 
	SECTION 5.06. Litigation
	 	 	119	 
	SECTION 5.07. No Default
	 	 	120	 
	SECTION 5.08. Ownership of Property; Liens
	 	 	120	 
	SECTION 5.09. Environmental Compliance
	 	 	120	 
	SECTION 5.10. Insurance
	 	 	121	 
	SECTION 5.11. Taxes
	 	 	121	 
	SECTION 5.12. ERISA Compliance
	 	 	121	 
	SECTION 5.13. Subsidiaries; Equity Interests; Loan Parties
	 	 	123	 
	SECTION 5.14. Margin Regulations; Investment Company Act
	 	 	123	 
	SECTION 5.15. Disclosure
	 	 	123	 
	SECTION 5.16. Compliance with Laws
	 	 	123	 
	SECTION 5.17. Intellectual Property; Licenses, Etc
	 	 	123	 
	SECTION 5.18. Solvency
	 	 	124	 
	SECTION 5.19. Casualty, Etc
	 	 	124	 
	SECTION 5.20. Perfection, Etc
	 	 	124	 
	SECTION 5.21. Senior Debt
	 	 	124	 
	SECTION 5.22. Tax Shelter Regulations
	 	 	124	 
	SECTION 5.23. Anti-Terrorism Law
	 	 	124	 
	SECTION 5.24. Accounts
	 	 	125	 
	SECTION 5.25. Canadian Pension Plans
	 	 	126	 
	 
	 	 	 	 
	ARTICLE VI

	 
	 	 	 	 
	Affirmative Covenants

	 
	 	 	 	 
	SECTION 6.01. Financial Statements; Borrowing Base
	 	 	127	 
	SECTION 6.02. Certificates; Other Information
	 	 	129	 

 

3

	 	 	 	 	 
	 	 	Page	 
	SECTION 6.03. Notices
	 	 	131	 
	SECTION 6.04. Payment of Obligations
	 	 	131	 
	SECTION 6.05. Preservation of Existence, Etc
	 	 	132	 
	SECTION 6.06. Maintenance of Properties
	 	 	132	 
	SECTION 6.07. Maintenance of Insurance
	 	 	132	 
	SECTION 6.08. Compliance with Laws
	 	 	132	 
	SECTION 6.09. Books and Records
	 	 	133	 
	SECTION 6.10. Inspections; Appraisals
	 	 	133	 
	SECTION 6.11. Use of Proceeds
	 	 	133	 
	SECTION 6.12. Covenant to Guarantee Obligations and Give Security
	 	 	133	 
	SECTION 6.13. Compliance with Environmental Laws
	 	 	137	 
	SECTION 6.14. Further Assurances
	 	 	138	 
	SECTION 6.15. Compliance with Terms of Leaseholds
	 	 	138	 
	SECTION 6.16. Designation as Senior Debt
	 	 	138	 
	SECTION 6.17. Collateral Administration
	 	 	138	 
	SECTION 6.18. Maintenance of Cash Management System
	 	 	140	 
	SECTION 6.19. Collateral Audit
	 	 	141	 
	SECTION 6.20. Post-Closing Matters
	 	 	141	 
	 
	 	 	 	 
	ARTICLE VII

	 
	 	 	 	 
	Negative Covenants

	 
	 	 	 	 
	SECTION 7.01. Liens
	 	 	141	 
	SECTION 7.02. Investments
	 	 	144	 
	SECTION 7.03. Indebtedness
	 	 	147	 
	SECTION 7.04. Fundamental Changes
	 	 	150	 
	SECTION 7.05. Dispositions
	 	 	151	 
	SECTION 7.06. Restricted Payments
	 	 	152	 
	SECTION 7.07. Change in Nature of Business
	 	 	154	 
	SECTION 7.08. Transactions with Affiliates
	 	 	154	 
	SECTION 7.09. Burdensome Agreements
	 	 	155	 
	SECTION 7.10. Use of Proceeds
	 	 	156	 
	SECTION 7.11. Consolidated Fixed Charge Coverage Ratio
	 	 	156	 
	SECTION 7.12. Amendments of Material Documents
	 	 	156	 
	SECTION 7.13. Accounting Changes
	 	 	156	 
	SECTION 7.14. Prepayments, Etc. of Indebtedness
	 	 	156	 
	SECTION 7.15. Equity Interests of the Specified U.S. Borrower and Subsidiaries
	 	 	156	 
	SECTION 7.16. Designation of Senior Debt
	 	 	157	 
	 
	 	 	 	 
	ARTICLE VIII

	 
	 	 	 	 
	Events of Default and Remedies

	 
	 	 	 	 
	SECTION 8.01. Events of Default
	 	 	157	 
	SECTION 8.02. Remedies upon Event of Default
	 	 	160	 
	SECTION 8.03. Application of Funds
	 	 	161	 

 

4

	 	 	 	 	 
	 	 	Page	 
	SECTION 8.04. Collection Allocation Mechanism
	 	 	163	 
	 
	 	 	 	 
	ARTICLE IX

	 
	 	 	 	 
	The Agents

	 
	 	 	 	 
	SECTION 9.01. Appointment and Authority
	 	 	164	 
	SECTION 9.02. Rights as a Lender
	 	 	165	 
	SECTION 9.03. Exculpatory Provisions
	 	 	165	 
	SECTION 9.04. Reliance by Administrative Agent
	 	 	166	 
	SECTION 9.05. Delegation of Duties
	 	 	166	 
	SECTION 9.06. Resignation of Administrative Agent
	 	 	167	 
	SECTION 9.07. Non-Reliance on Administrative Agent and Other Lenders
	 	 	168	 
	SECTION 9.08. No Other Duties, Etc
	 	 	168	 
	SECTION 9.09. Administrative Agent May File Proofs of Claim
	 	 	168	 
	SECTION 9.10. Collateral and Guaranty Matters
	 	 	169	 
	SECTION 9.11. Secured Cash Management Agreements and Secured Hedge Agreements
	 	 	170	 
	 
	 	 	 	 
	ARTICLE X

	 
	 	 	 	 
	Miscellaneous

	 
	 	 	 	 
	SECTION 10.01. Amendments, Etc
	 	 	170	 
	SECTION 10.02. Notices; Effectiveness; Electronic Communications
	 	 	173	 
	SECTION 10.03. No Waiver; Cumulative Remedies
	 	 	176	 
	SECTION 10.04. Expenses; Indemnity; Damage Waiver
	 	 	176	 
	SECTION 10.05. Payments Set Aside
	 	 	178	 
	SECTION 10.06. Successors and Assigns
	 	 	178	 
	SECTION 10.07. Treatment of Certain Information; Confidentiality
	 	 	183	 
	SECTION 10.08. Right of Setoff
	 	 	184	 
	SECTION 10.09. Interest Rate Limitation
	 	 	184	 
	SECTION 10.10. Counterparts; Integration; Effectiveness
	 	 	185	 
	SECTION 10.11. Survival of Representations and Warranties
	 	 	185	 
	SECTION 10.12. Severability
	 	 	185	 
	SECTION 10.13. Replacement of Lenders
	 	 	186	 
	SECTION 10.14. Governing Law; Jurisdiction; Etc
	 	 	186	 
	SECTION 10.15. Waiver of Jury Trial
	 	 	187	 
	SECTION 10.16. No Advisory or Fiduciary Responsibility
	 	 	188	 
	SECTION 10.17. Electronic Execution of Assignments and Certain Other Documents
	 	 	188	 
	SECTION 10.18. USA Patriot Act Notice
	 	 	188	 
	SECTION 10.19. Judgment Currency
	 	 	189	 
	SECTION 10.20. Language
	 	 	189	 
	SECTION 10.21. Intercreditor Agreement
	 	 	189	 

 

5

	 	 	 

	SCHEDULES
	 	 
	 
	 	 
	Schedule 1.01

	 	Existing Letters of Credit
	Schedule 1.01(a)

	 	Sale-Leaseback Properties
	Schedule 2.01

	 	Commitments and Applicable Percentages
	Schedule 4.01(a)(vi)

	 	Mortgaged Properties
	Schedule 5.05

	 	Supplement to Interim Financial Statements
	Schedule 5.06

	 	Litigation
	Schedule 5.08(b)

	 	Owned Real Property
	Schedule 5.08(c)

	 	Leased Real Property
	Schedule 5.09

	 	Environmental Matters
	Schedule 5.13

	 	Subsidiaries and Other Equity Investments; Loan Parties
	Schedule 6.12

	 	Guarantors
	Schedule 6.20

	 	Post-Closing Matters
	Schedule 7.01

	 	Existing Liens
	Schedule 7.02

	 	Existing Investments
	Schedule 7.03(e)

	 	Existing Indebtedness
	Schedule 7.05

	 	Dispositions
	Schedule 7.08

	 	Transactions with Affiliates
	Schedule 10.02

	 	Administrative Agent’s Office, Certain Addresses for Notices
	 
	 	 
	EXHIBITS
	 	 
	 
	 	 
	Exhibit A

	 	Form of Committed Loan Notice
	Exhibit B

	 	Form of Swing Line Loan Notice
	Exhibit C-1

	 	Form of U.S. Revolving Credit Note
	Exhibit C-2

	 	Form of Canadian Revolving Credit Note
	Exhibit D

	 	Form of Compliance Certificate
	Exhibit E-1

	 	Form of Assignment and Assumption
	Exhibit E-2

	 	Form of Administrative Questionnaire
	Exhibit F

	 	Form of U.S. Guaranty
	Exhibit G-1

	 	Form of U.S. Security Agreement
	Exhibit G-2

	 	Form of Canadian Security Agreement
	Exhibit H

	 	Form of Mortgage
	Exhibit I

	 	Form of Intercompany Note
	Exhibit J-1

	 	Form of Opinion — U.S. Counsel to Loan Parties
	Exhibit J-2

	 	Form of Opinion - Counsel to Canadian Loan Parties
	Exhibit J-3

	 	Form of Opinion — Local Counsel to U.S. Loan Parties
	Exhibit K

	 	Form of Borrowing Base Certificate
	Exhibit L

	 	Form of Perfection Certificate

 

6

     This CREDIT AGREEMENT (“Agreement”) is entered into as of
June 9, 2008, among PLY GEM HOLDINGS, INC., a Delaware corporation
(“Holdings”), PLY GEM INDUSTRIES, INC., a Delaware corporation
(the “Specified U.S. Borrower” and, in its capacity as the
representative of the other Borrowers pursuant to Section 2.15
hereof, the “Borrower Agent”), CWD WINDOWS AND DOORS, INC., a
Canadian corporation (the “Canadian Borrower”), the Subsidiaries
of the Specified U.S. Borrower from time to time party hereto as Borrowers
and Guarantors, each Lender from time to time party hereto, CREDIT SUISSE,
as Administrative Agent (in such capacity, the “Administrative
Agent”), U.S. Swing Line Lender and U.S. L/C Issuer, GENERAL ELECTRIC
CAPITAL CORPORATION, as Collateral Agent (in such capacity, the
“Collateral Agent”), CREDIT SUISSE, TORONTO BRANCH, (“CS
Toronto”), as Canadian Swing Line Lender and Canadian L/C Issuer,
CREDIT SUISSE SECURITIES (USA) LLC, as Sole Lead Arranger and Sole
Bookrunner, GENERAL ELECTRIC CAPITAL CORPORATION, as Syndication Agent and
UBS LOAN FINANCE LLC, as Documentation Agent.

Preliminary Statements:

          The Specified U.S. Borrower and its Subsidiaries intend to refinance certain Indebtedness
under the Existing Credit Agreement, and to pay transaction fees and expenses in connection
therewith, through the issuance and sale of the Senior Secured Notes and the entering into of the
Revolving Credit Facility described herein.

          In furtherance of the foregoing, the Borrowers have requested that the Lenders provide a
revolving credit facility, and the Lenders have indicated their willingness to lend and the L/C
Issuers have indicated their willingness to issue letters of credit, in each case, on the terms and
subject to the conditions set forth herein.

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

ARTICLE I

Definitions and Accounting Terms

          SECTION 1.01. Defined Terms. As used in this Agreement (including the Preliminary
Statements), the following terms shall have the meanings set forth below:

          “2012 Senior Subordinated Notes” means all outstanding 9% unsecured senior
subordinated notes due 2012 issued by the Specified U.S. Borrower pursuant to the 2012 Senior
Subordinated Notes Indenture.

 

7

          “2012 Senior Subordinated Notes Indenture” means the Indenture dated as of
February 12, 2004 among U.S. Bank National Association, the Specified U.S. Borrower and certain of
the Guarantors, together with all instruments and other agreements in connection therewith or
otherwise setting forth the terms of the 2012 Senior Subordinated Notes, as may be amended,
supplemented or otherwise modified from time to time in accordance with the terms thereof, but only
to the extent permitted under the terms of the Loan Documents.

          “ABL Priority Collateral” means the “Revolving Facility First Lien Collateral” (as
defined in the Intercreditor Agreement).

          “Account” has the meaning specified in the UCC (or, with respect to a Canadian Loan
Party, the PPSA), and shall include any and all rights of a Loan Party to payment for goods sold or
leased or for services rendered that are not evidenced by an Instrument or Chattel Paper, whether
or not they have been earned by performance.

          “Account Debtor” a Person who is obligated under an Account, Chattel Paper or General
Intangible.

          “Administrative Agent” means Credit Suisse in its capacity as administrative agent
under any of the Loan Documents, or any successor administrative agent and, with respect to matters
relating to the Canadian Revolving Credit Facility, means CS Toronto, in its capacity as Canadian
administrative agent under any of the Loan Documents, or any successor Canadian administrative
agent.

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

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

          “Advisory Agreement” means the General Advisory Agreement dated as of February 12,
2004 between the Specified U.S. Borrower and CXCIC LLC, as amended, supplemented or otherwise
modified from time to time in accordance with the terms thereof, but only to the extent permitted
under the Loan Documents.

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

          “Agents” means the Administrative Agent and the Collateral Agent.

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

 

8

          “Agreement” means this Credit Agreement as modified, amended, supplemented or
restated, and in effect from time to time.

          “Anti-Terrorism Laws” has the meaning specified in Section 5.23(a).

          “Applicable Commitment Fee Rate” means, for each fiscal quarter ending after the
Closing Date, (a) 0.50% per annum, if the Average Revolving Credit Facility Balance during the
immediately preceding fiscal quarter is greater than 66% of the Aggregate Commitments outstanding
during such period, (b) 0.625% per annum, if the Average Revolving Credit Facility Balance during
the immediately preceding fiscal quarter is less than or equal to 66% and greater than 33% of the
Aggregate Commitments outstanding during such period, or (c) 0.75%, if the Average Revolving Credit
Facility Balance during the immediately preceding fiscal quarter is less than or equal to 33% of
the Aggregate Commitments outstanding during such period. Notwithstanding the foregoing, until the
fiscal quarter ending on or around March 31, 2009, the Applicable Commitment Fee Rate shall be
0.625%.

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

          “Applicable Rate” means for each fiscal quarter, the applicable percentage per annum
set forth below determined by reference to Average Excess Availability for the immediately
preceding fiscal quarter:

	 	 	 	 	 	 	 
	 	 	Applicable Rate	 	 
	 	 	 	 	Eurodollar Rate, BA	 	Base Rate, Canadian
	 	 	Average Excess	 	Rate and Letter of	 	Base Rate and
	Pricing Level	 	Availability	 	Credit Fees	 	Canadian Prime Rate
	1
	 	≥ $100,000,000
	 	2.75%
	 	1.75%
	2
	 	< $100,000,000 but ≥ $50,000,000
	 	3.00%
	 	2.00%
	3
	 	< $50,000,000
	 	3.25%
	 	2.25%

 

9

Notwithstanding the foregoing, (a) during the fiscal quarter in which the Closing Date occurs,
Level 2 shall be deemed to apply, and (b) thereafter and until the fiscal quarter ending on or
around March 31, 2009, for purposes of determining the Applicable Rate, Average Excess Availability
shall be deemed to be not greater than $100,000,000 or less than $50,000,000. Any increase or
decrease in the Applicable Rate resulting from a change in the Average Excess Availability shall
become effective as of the first calendar day of each fiscal quarter. Average Excess Availability
shall be calculated by the Administrative Agent based on the Administrative Agent’s records. If
the Borrowing Base Certificates (including any required financial information in support thereof)
of the Borrowers are not received by the Agents by the date required pursuant to Section
6.01(e) of this Agreement, then, upon the request of the Required Lenders, the Applicable Rate
shall be determined as if the Average Excess Availability for the immediately preceding fiscal
quarter is at Level 3 until such time as such Borrowing Base Certificates and supporting
information are received.

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

          “Appropriate Lender” means, at any time, (a) (i) with respect to the U.S. Revolving
Credit Facility, a Lender that has a Commitment with respect to the U.S. Revolving Credit Facility
or holds a U.S. Revolving Credit Loan at such time, (ii) with respect to the U.S. Letter of Credit
Sublimit, (A) the U.S. L/C Issuer and (B) if any U.S. Letters of Credit have been issued pursuant
to Section 2.01(c), the U.S. Revolving Credit Lenders and (iii) with respect to the U.S.
Swing Line Sublimit, (A) the U.S. Swing Line Lender and (B) if any U.S. Swing Line Loans are
outstanding pursuant to Section 2.04(A)(a), the U.S. Revolving Credit Lenders and (b) (i)
with respect to the Canadian Revolving Credit Facility, a Lender that has a Commitment with respect
to the Canadian Revolving Credit Facility or holds a Canadian Revolving Credit Loan at such time,
(ii) with respect to the Canadian Letter of Credit Sublimit, (A) the Canadian L/C Issuer and (B) if
any Canadian Letters of Credit have been issued pursuant to Section 2.01(d), the Canadian
Revolving Credit Lenders and (iii) with respect to the Canadian Swing Line Sublimit, (A) the
Canadian Swing Line Lender and (B) if any Canadian Swing Line Loans are outstanding pursuant to
Section 2.04(B)(a), the Canadian Revolving Credit Lenders.

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

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

          “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an Eligible Assignee (with the consent of any party whose consent is required by
Section 10.06(b)), and accepted by the Administrative Agent, in

 

10

substantially the form of Exhibit E-1 or any other form approved by the Administrative
Agent.

          “Attributable Indebtedness” means, on any date, (a) in respect of any Capitalized
Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such
Person prepared as of such date in accordance with GAAP, (b) in respect of any Synthetic Lease
Obligation, the capitalized amount of the remaining lease or similar payments under the relevant
lease or other applicable agreement or instrument that would appear on a balance sheet of such
Person prepared as of such date in accordance with GAAP if such lease or other agreement or
instrument were accounted for as a Capitalized Lease and (c) all Synthetic Debt of such Person.

          “Audited Financial Statements” means the audited consolidated balance sheet of
Holdings and its Subsidiaries for the fiscal year ended December 31, 2007 and the related
consolidated statements of income or operations, shareholders’ equity and cash flows for such
fiscal year of Holdings and its Subsidiaries, including the notes thereto.

          “Availability Period” means, with respect to each Revolving Credit Facility, the
period from and including the Closing Date to the earliest of (i) the Maturity Date, (ii) the date
of termination of the applicable Revolving Credit Commitments pursuant to Section 2.06, and
(iii) the date of termination of the commitment of each applicable Appropriate Lender to make
Revolving Credit Loans and of the obligation of the applicable L/C Issuer to make L/C Credit
Extensions pursuant to Section 8.02.

          “Availability Reserve” means, on any date of determination and with respect to the
U.S. Borrowing Base or the Canadian Borrowing Base, as the case may be, the sum (without
duplication) of (a) reserves for deterioration in the salability of inventory; (b) the Rent and
Charges Reserve; (c) the Bank Product Reserve; (d) all accrued Royalties, whether or not then due
and payable by, in the case of the U.S. Borrowing Base, a U.S. Loan Party or, in the case of the
Canadian Borrowing Base, a Canadian Loan Party; (e) the aggregate amount of liabilities secured by
Liens upon Eligible Collateral that are senior to the Collateral Agent’s Liens (but imposition of
any such reserve shall not waive an Event of Default arising therefrom); (f) the Canadian Priority
Payables Reserve; (g) reserves for excess dilution; (h) reserves for inventory that is subject to
any licensing, patent, royalty, trademark, trade name or copyright agreement with any third party;
and (i) such additional reserves, in such amounts and with respect to such matters, as the Agents
in their Credit Judgment may elect to impose from time to time; provided that, after the
Closing Date, the Agents may adjust the apportionment of the Availability Reserve between the U.S.
Revolving Credit Facility and the Canadian Revolving Credit Facility in their Credit Judgment at
such time; and provided further that such Availability Reserve shall not be
established or changed except upon not less than five (5) Business Days’ notice to the Borrowers
(unless an Event of Default exists in which event no notice shall be required). The Agents will be
available during such period to discuss any such proposed Availability Reserve or change with the
Borrowers and without limiting the right of the Agents to establish or change such Reserves in the
Agents’ Credit Judgment, the Borrowers may take such action as may be required so that

 

11

the event, condition or matter that is the basis for such Availability Reserve no longer
exists, in a manner and to the extent reasonably satisfactory to the Agents. The amount of any
Availability Reserve established by the Agents shall have a reasonable relationship as determined
by the Agents in their Credit Judgment to the event, condition or other matter that is the basis
for the Availability Reserve. Notwithstanding anything herein to the contrary, an Availability
Reserve shall not be established to the extent that it would be duplicative of any specific item
excluded as ineligible in the definitions of Eligible Collateral, but the Agents shall retain the
right, subject to the requirements of this paragraph, to establish an Availability Reserve with
respect to prospective changes in Eligible Collateral that may reasonably be anticipated.

          “Average Excess Availability” means, on any date of determination, the amount of
Excess Availability during a stipulated consecutive Business Day period, calendar day period or
fiscal quarter period divided by the number of Business Days or calendar days, as the case may be,
in such period.

          “Average Revolving Credit Facility Balance” means, for any period, the amount obtained
by adding the Outstanding Amount of Loans (less the Outstanding Amount of any Swing Line Loans on
such date) and L/C Obligations at the end of each day for the period in question and by dividing
such sum by the number of days in such period.

          “BA Rate” means, for the Interest Period of each BA Rate Loan, the rate of interest
per annum equal to the average annual rate applicable to Canadian Dollar bankers’ acceptances
having an identical or comparable term as the proposed BA Rate Loan displayed and identified as
such on the display referred to as the “CDOR Page” (or any display substituted therefor) of Reuters
Monitor Money Rates Service as at approximately 10:00 a.m. Toronto time on such day (or, if such
day is not a Business Day, as of 10:00 a.m. Toronto time on the immediately preceding Business
Day), plus five (5) basis points; provided that if such rate does not appear on the CDOR
Page at such time on such date, the rate for such date will be the rate of interest per annum
equivalent to the annual discount rate (rounded upward to the nearest whole multiple of 1/100 of
1%) as of 10:00 a.m. Toronto time on such day at which a Canadian chartered bank listed on Schedule
1 of the Bank Act (Canada) as selected by the Administrative Agent is then offering to purchase
Canadian Dollar bankers’ acceptances accepted by it having such specified term (or a term as
closely as possible comparable to such specified term), plus ten (10) basis points.

          “BA Rate Loan” means any Canadian Revolving Credit Loan denominated in Canadian
Dollars bearing interest at a rate determined by reference to the BA Rate.

          “Bank Product” means any of the following products, services or facilities extended to
any Loan Party: (a) cash management services provided by Cash Management Banks under Cash
Management Agreements and (b) products provided by Hedge Banks under Secured Hedge Agreements;
provided, however, that for any of the foregoing to be included as an “Obligation”
for purposes of a distribution under

 

12

Section 8.03, the applicable Secured Party and the Loan Party must have previously
provided written notice to the Administrative Agent of (i) the existence of such Bank Product,
(ii) the maximum dollar amount of obligations arising thereunder to be included as a Bank Product
Reserve (the “Bank Product Amount”), and (iii) the methodology to be used by such parties
in determining the Bank Product Debt owing from time to time. The Bank Product Amount may be
changed from time to time upon written notice to the Administrative Agent by the applicable Secured
Party and Loan Party. No Bank Product Amount may be established or increased at any time that a
Default or Event of Default exists and is continuing, or if a reserve in such amount would cause an
Overadvance.

          “Bank Product Amount” has the meaning specified in the definition of “Bank Product”.

          “Bank Product Debt” means Debt and other obligations of a Loan Party relating to Bank
Products.

          “Bank Product Reserve” means, with respect to the U.S. Borrowing Base or the Canadian
Borrowing Base, the aggregate amount of reserves established by the Agents from time to time in
their Credit Judgment in respect of Bank Product Debt of the U.S. Loan Parties or the Canadian Loan
Parties, as the case may be, which shall be at least equal to the sum of all Bank Product Amounts.

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

          “Base Rate Loan” means a Revolving Credit Loan that bears interest based on the Base
Rate.

          “BIA” means the Bankruptcy and Insolvency Act (Canada).

          “Bookrunner” means Credit Suisse Securities (USA) LLC, in its capacity as sole lead
arranger and sole bookrunner.

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

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

          “Borrowers” mean the Canadian Borrower and the U.S. Borrowers.

 

13

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

          “Borrowing Base” means any of the U.S. Borrowing Base, the Canadian Borrowing Base
and/or the Total Borrowing Base, as the context may require.

          “Borrowing Base Certificate” means a certificate substantially in the form of
Exhibit K.

          “Borrowing Base Condition” means (a) the completion of the Required Audit and
Appraisal and (b) the delivery of the Initial Borrowing Base Certificate in form and substance
reasonably acceptable to the Agents.

          “Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact closed in, relative to
matters with respect to the U.S. Revolving Credit Facility, the state where the Administrative
Agent’s Office is located, or relative to matters with respect to the Canadian Revolving Credit
Facility, the jurisdiction where the Administrative Agent’s principal Canadian lending Affiliate or
branch is located and, if such day relates to any Eurodollar Rate Loan, means any such day on which
dealings in Dollar deposits are conducted by and between banks in the London interbank eurodollar
market.

          “CAM” means the mechanism for the allocation and exchange of interests in the Loans,
participations in Letters of Credit and collections thereunder established pursuant to Section
8.04.

          “CAM Exchange” means the exchange of the Lenders’ interests provided for in
Section 8.04.

          “CAM Exchange Date” means the first date after the Closing Date on which there shall
occur (a) any Event of Default under clause (f) or (g) of Section 8.01 with
respect to a Borrower or (b) an acceleration of Loans pursuant to Section 8.02(b).

          “CAM Percentage” means, as to each Lender, a fraction, expressed as a decimal, of
which (a) the numerator shall be the sum, without duplication, of (i) the Canadian Revolving Credit
Exposure, if any, of such Lender, (ii) the U.S. Revolving Credit Exposure, if any, of such Lender
and (iii) the aggregate amount of any other Obligations otherwise owed to such Lender pursuant to
the Loan Documents, in each case immediately prior to the CAM Exchange Date, and (b) the
denominator shall be the sum of (i) the aggregate U.S. Revolving Credit Exposure of all the
Lenders, (ii) the aggregate Canadian Revolving Exposure of all Lenders and (iii) the aggregate
amount of any other Obligations otherwise owed to any of the Lenders pursuant to the Loan
Documents, in each case immediately prior to the CAM Exchange Date.

          “Canadian Account Control Agreements” means, collectively, the Deposit Account Control
Agreements entered into by the Canadian Loan Parties in favor of the Collateral Agent, each in form
and substance reasonably satisfactory to the Collateral Agent.

 

14

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

          “Canadian Base Rate Loan” means any Canadian Revolving Credit Loan denominated in
Dollars bearing interest computed by reference to the Canadian Base Rate.

          “Canadian Benefit Plans” means all employee benefit plans, programs or arrangements of
any nature or kind whatsoever that are not Canadian Pension Plans and are maintained or contributed
to by, or to which there is or may be an obligation to contribute by, any Borrower or its
Subsidiaries in respect of its employees or former employees in Canada.

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

          “Canadian Borrowing Base” means, on any date of determination, an amount (calculated
based on the most recent Borrowing Base Certificate delivered to the Agents in accordance with this
Agreement) equal to

     (a) the sum of

     (i) 85% of the value of the Eligible Receivables of the Canadian Loan Parties,
and

     (ii) 85% of the NOLV Percentage of the value of the Eligible Inventory of the
Canadian Loan Parties,

          minus

     (b) the Availability Reserve to the extent attributable to the Canadian Loan Parties
in the Agents’ Credit Judgment on such date, provided that, after the Closing Date,
the Agents may adjust the apportionment of the Availability Reserve between the U.S.
Revolving Credit Facility and the Canadian Revolving Credit Facility in their Credit
Judgment;”

provided, further that, notwithstanding anything herein to the contrary: until the
Borrowing Base Condition has been satisfied, the “Canadian Borrowing Base” shall be deemed to be
$15,000,000.

 

15

          “Canadian Cash Management Bank” means any Person that, at the time it enters into a
Cash Management Agreement, is an Agent or a Canadian Lender or an Affiliate of an Agent or a
Canadian Lender, in its capacity as a party to such Cash Management Agreement, in each case in
respect of services provided under such Cash Management Agreement to a Canadian Loan Party.

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

          “Canadian Collateral Documents” means, collectively, the Canadian Security Agreement,
the Canadian Intellectual Property Security Agreement, Canadian Mortgages, the Canadian Account
Control Agreements, each of the collateral assignments, Security Agreement Supplements, IP Security
Agreement Supplements, security agreements, deeds of hypothec, hypothecs, pledge agreements or
other similar agreements delivered to the Collateral Agent pursuant to Section 6.12, and
each of the other agreements, instruments or documents that creates or purports to create a Lien
securing the Canadian Obligations in favor of the Administrative Agent for the benefit of the
Canadian Secured Parties.

          “Canadian Dollar” or “Cdn. $” means Canadian dollars, the lawful currency of
Canada.

          “Canadian Excess Availability” means, at any time, the difference between (a) the
lesser of (i) the Canadian Revolving Credit Facility and (ii) the Canadian Borrowing Base at such
time, as determined from the most recent Borrowing Base Certificate delivered by the Borrower Agent
to the Agents pursuant to Section 6.01(e) hereof minus (b) the Total Canadian Revolving
Credit Outstandings.

          “Canadian Guarantee” means, collectively, the Guarantees made by the Canadian
Subsidiary Guarantors in favor of the Canadian Secured Parties, each in form and substance
reasonably satisfactory to the Administrative Agent, together with each other guarantee and
guarantee supplement delivered pursuant to Section 6.12.

          “Canadian Intellectual Property Security Agreement” has the meaning specified in
Section 4.01(a)(vii).

          “Canadian L/C Advance” means, with respect to each Canadian Revolving Credit Lender,
such Lender’s funding of its participation in any Canadian L/C Borrowing in accordance with its
Applicable Percentage.

          “Canadian L/C Borrowing” means an extension of credit resulting from a drawing under
any Canadian Letter of Credit which has not been reimbursed on the date when made or refinanced as
a Canadian Revolving Credit Borrowing.

 

16

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

          “Canadian L/C Issuer” means CS Toronto in its capacity as issuer of Canadian Letters
of Credit hereunder, or any successor issuer of Canadian Letters of Credit hereunder.

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

          “Canadian Lender” means each financial institution listed on Schedule 2.01 as
a “Canadian Revolving Credit Lender”, as well as any Person that becomes a “Canadian Revolving
Credit Lender” hereunder pursuant to Section 10.06 and, as the context requires, includes
the Canadian Swing Line Lender.

          “Canadian Letter of Credit” means any standby letter of credit or commercial letter of
credit issued hereunder.

          “Canadian Letter of Credit Sublimit” means an amount equal to $3,000,000. The
Canadian Letter of Credit Sublimit is part of, and not in addition to, the Canadian Revolving
Credit Facility.

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

          “Canadian Loan Documents” means, collectively, (a) this Agreement, (b) the Canadian
Revolving Credit Notes, (c) the Canadian Guarantee, (d) the Canadian Collateral Documents, (e) the
Fee Letter and (f) each Issuer Document with respect to a Canadian Letter of Credit.

          “Canadian Loan Parties” means the Canadian Borrower and the Canadian Subsidiary
Guarantors.

          “Canadian Obligations” means all advances to, and debts, liabilities, obligations,
covenants and duties of, any Canadian Loan Party arising under any Loan Document or otherwise with
respect to any Canadian Loan, Canadian Letter of Credit, Canadian Secured Cash Management Agreement
or Canadian Secured Hedge Agreement, whether direct or indirect (including those acquired by
assumption), absolute or

 

17

contingent, due or to become due, now existing or hereafter arising and including interest and
fees that accrue after the commencement by or against any Canadian Loan Party or any Affiliate
thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such
proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.

          “Canadian Overadvance” has the meaning specified in Section 2.01(g).

          “Canadian Overadvance Loan” means a Canadian Revolving Credit Loan made when an
Overadvance exists or is caused by the funding thereof.

          “Canadian Payment Account” means the Canadian Dollar account and the U.S. Dollar
account of the Collateral Agent to which all monies constituting proceeds of Canadian Collateral
shall be transferred from time to time.

          “Canadian Pension Plans” means each plan, program or arrangement which is required to
be registered as a pension plan under any applicable pension benefits standards or tax statute or
regulation in Canada (or any province or territory thereof) maintained or contributed to by, or to
which there is or may be an obligation to contribute by, any Borrower or its Subsidiaries in
respect of its Canadian employees or former employees.

          “Canadian Prime Rate” means, for any day, a fluctuating rate of interest per annum
equal to the greater of (a) the rate of interest in effect for such day as determined from time to
time by CS Toronto as its “Prime Rate” and (b) the interest rate per annum equal to the sum of (i)
the BA Rate applicable to bankers’ acceptances with a term of 30 days on such day and (ii) 0.50%
per annum. The “Canadian Prime Rate” is a rate set by CS Toronto based upon various factors
including CS Toronto’s costs and desired return, general economic conditions and other factors, and
is used as a reference point for pricing some loans, which may be priced at, above, or below such
announced rate. Any change in the “Canadian Prime Rate” so determined by CS Toronto shall take
effect at the opening of business on the day specified by CS Toronto.

          “Canadian Prime Rate Loan” means any Canadian Revolving Credit Loan denominated in
Canadian Dollars bearing interest computed by reference to the Canadian Prime Rate.

          “Canadian Priority Payables” means, at any time, with respect to the Canadian
Borrowing Base:

     (a) the amount past due and owing by the Canadian Borrower and any other Canadian Loan
Party, or the accrued amount for which each of the Canadian Borrower and any other Canadian
Loan Party has an obligation to remit to a Governmental Authority or other Person pursuant
to any applicable Law, rule or regulation, in respect of (i) pension fund obligations; (ii)
employment insurance; (iii) goods and services taxes, sales taxes, employee income taxes
and other taxes payable or to be remitted or withheld; (iv) workers’ compensation; (v)
vacation pay; and (vi) other like charges and demands; in each case, in respect of which

 

18

any Governmental Authority or other Person may claim a security interest, hypothec,
prior claim, lien, trust or other claim or Lien ranking or capable of ranking in priority
to or pari passu with one or more of the Liens granted in the Collateral Documents; and

     (b) the aggregate amount of any other liabilities of the Canadian Borrower and any
other Canadian Loan Parties (i) in respect of which a trust has been or may be imposed on
any Collateral to provide for payment or (ii) which are secured by a security interest,
hypothec, prior claim, pledge, lien, charge, right, or claim or other Lien on any
Collateral, in each case, pursuant to any applicable law, rule or regulation and which
trust, security interest, hypothec, prior claim, pledge, lien, charge, right, claim or Lien
ranks or is capable of ranking in priority to or pari passu with one or more of the Liens
granted in the Collateral Documents.

          “Canadian Priority Payables Reserve” means, on any date of determination for the
Canadian Borrowing Base, a reserve established from time to time by the Agents in their Credit
Judgment in such amount as the Agents may determine reflects the unpaid or unremitted Canadian
Priority Payables by the Canadian Loan Parties, which would give rise to a Lien with priority under
applicable Laws over the Lien of the Collateral Agent for the benefit of the Canadian Secured
Parties.

          “Canadian Revolving Credit Borrowing” means a borrowing consisting of simultaneous
Canadian Revolving Credit Loans of the same Type and, in the case of Eurodollar Rate Loans and BA
Rate Loans, having the same Interest Period made by each of the Canadian Revolving Credit Lenders
pursuant to Section 2.01(a) and shall be deemed to include any Canadian Overadvance Loan
and, to the extent attributed to the Canadian Collateral in the Agents’ Credit Judgment, Protective
Advance made hereunder.

          “Canadian Revolving Credit Commitment” means, as to each Canadian Revolving Credit
Lender, its obligation to (a) make Canadian Revolving Credit Loans to the Canadian Borrower
pursuant to Section 2.01(a), (b) purchase participations in Canadian L/C Obligations, and
(c) purchase participations in Canadian Swing Line Loans, in an aggregate principal amount at any
one time outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule
2.01 under the caption “Canadian Revolving Credit Commitment” or opposite such caption in the
Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as
such amount may be adjusted from time to time in accordance with this Agreement, including pursuant
to Section 2.16.

          “Canadian Revolving Credit Exposure” means, with respect to any Appropriate Lender at
any time, the Outstanding Amount of Canadian Revolving Credit Loans of such Lender plus such
Lender’s Applicable Percentage of the Outstanding Amount of Canadian L/C Obligations with respect
to Canadian Letters of Credit plus such Lender’s Applicable Percentage of the Outstanding Amount of
Canadian Swing Line Loans.

 

19

          “Canadian Revolving Credit Facility” means, at any time, the aggregate amount of the
Canadian Revolving Credit Lenders’ Canadian Revolving Credit Commitments at such time.

          “Canadian Revolving Credit Lender” means, at any time, any Lender that has a Canadian
Revolving Credit Commitment at such time.

          “Canadian Revolving Credit Loan” has the meaning specified in Section 2.01(a)
and shall be deemed to include any Canadian Overadvance Loan and, to the extent attributed to the
Canadian Collateral in the Agents’ Credit Judgment, Protective Advance made hereunder.

          “Canadian Revolving Credit Note” means a promissory note made by the Canadian Borrower
in favor of a Canadian Appropriate Lender evidencing Canadian Revolving Credit Loans or Canadian
Swing Line Loans, as the case may be, made by such Canadian Revolving Credit Lender, substantially
in the form of Exhibit C-2.

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

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

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

          “Canadian Security Agreement” means, collectively, the Security Agreements and the
deeds of hypothec delivered pursuant to Section 6.12, in each case in respect of the
Canadian Collateral, in each case in form and substance reasonably satisfactory to the
Administrative Agent and as amended.

          “Canadian Subsidiary” means any direct or indirect Subsidiary of the Specified U.S.
Borrower which is incorporated or otherwise organized under the laws of Canada or any province or
territory thereof.

          “Canadian Subsidiary Guarantor” means each Canadian Subsidiary (other than the
Canadian Borrower or any Excluded Subsidiary) and each Person that shall, at any time after the
date hereof, become a Canadian Subsidiary and execute and deliver a Canadian Guarantee pursuant to
Section 6.12; it being understood that none of the Canadian Borrower or any Canadian
Subsidiary Guarantors shall guarantee any of the U.S. Obligations.

 

20

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

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

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

          “Canadian Swing Line Sublimit” means an amount equal to $1,500,000. The Canadian
Swing Line Sublimit is part of, and not in addition to, the Canadian Revolving Credit Facility.

          “Canadian Unfunded Advances/Participations” shall mean (a) with respect to the
Administrative Agent, the aggregate amount, if any (i) made available to the Canadian Borrower on
the assumption that each Canadian Lender has made its portion of the applicable Borrowing available
to the Administrative Agent as contemplated by Section 2.12(b) and (ii) with respect to
which a corresponding amount shall not in fact have been returned to the Administrative Agent by
the Canadian Borrower or made available to the Administrative Agent by any such Canadian Lender,
(b) with respect to the Canadian Swing Line Lender, the aggregate amount, if any, of participations
in respect of any outstanding Canadian Swing Line Loan that shall not have been funded by the
Canadian Revolving Credit Facility Lenders in accordance with Section 2.04(c) and (c) with
respect to the Canadian L/C Issuer, the aggregate amount, if any, of participations in respect of
any outstanding Canadian L/C Borrowing that shall not have been funded by the Canadian Revolving
Credit Facility Lenders in accordance with Sections 2.03(c).

          “Capital Expenditures” means, with respect to any Person for any period, any
expenditure in respect of the purchase or other acquisition of any fixed or capital asset
(excluding normal replacements and maintenance which are properly charged to current operations);
provided, however, that Capital Expenditures shall not include any such
expenditures which constitute (a) a Permitted Acquisition, (b) capital expenditures relating to the
construction or acquisition of any property which has been transferred to a Person that is not a
Borrower pursuant to a sale-leaseback transaction permitted under Section 7.05(f), (c) to
the extent permitted by this Agreement, a reinvestment of the net cash proceeds of any Disposition
(other than any Dispositions under Sections 7.05(b), (f), (h), (i)
and (j)) or any insurance proceeds paid on account of the loss of or damage to the assets
being replaced, substituted, restored or repaired and the reinvestment of the net cash proceeds of
any such Disposition or such insurance proceeds, (d) the purchase price of equipment purchased
substantially contemporaneously with the trade-in or sale of used or surplus existing equipment to
the extent that the gross amount of such purchase price is reduced by the credit granted to the
seller of such equipment (or for the net proceeds of such sale) for the equipment being traded in
or sold at such time, or (f) capitalized interest relating to the construction of any fixed assets.

 

21

          “Capitalized Leases” means all leases that have been or should be, in accordance with
GAAP, recorded as capitalized leases.

          “Capitalized Lease Obligations” means, at the time any determination thereof is to be
made, the amount of the liability in respect of a Capitalized Lease that would at that time be
required to be capitalized on a balance sheet in accordance with GAAP. Notwithstanding the
foregoing, any obligations under any sale-leaseback transaction (including the Sale-Leaseback
Transaction) in existence on the Closing Date shall not constitute Capitalized Lease Obligations
hereunder.

          “Cash Collateralize” has the meaning specified in Section 2.03(g).

          “Cash Dominion Event” means either (a) the occurrence and continuance of an Event of
Default or (b) the failure of the Loan Parties to maintain Excess Availability of at least 15% of
the Aggregate Commitments. For purposes of this Agreement, the occurrence of a Cash Dominion Event
shall be deemed continuing (a) so long as such Event of Default is continuing and has not been
cured or waived, and/or (b) if the Cash Dominion Event arises under clause (b) above, until Excess
Availability is equal to or greater than 15% of the Aggregate Commitments for thirty (30)
consecutive days, in which case a Cash Dominion Event shall no longer be deemed to be continuing
for purposes of this Agreement.

          “Cash Equivalents” means any of the following types of Investments, to the extent
owned by the Borrowers or any of their Subsidiaries free and clear of all Liens (other than Liens
created under the Collateral Documents and other Liens permitted hereunder):

     (a) readily marketable obligations issued or directly and fully guaranteed or insured
by the United States of America (or Canada) or any agency or instrumentality thereof having
maturities of not more than 360 days from the date of acquisition thereof; provided
that the full faith and credit of the United States of America (or Canada, as the case may
be) is pledged in support thereof;

     (b) time deposits with, or insured certificates of deposit or bankers’ acceptances of,
any commercial bank that (i) (A) is a Lender or (B) is organized under the laws of the
United States of America, any state thereof or the District of Columbia (or Canada, as the
case may be) or is the principal banking subsidiary of a bank holding company organized
under the laws of the United States of America, any state thereof or the District of
Columbia (or Canada, as the case may be), and is a member of the Federal Reserve System,
(ii) issues (or the parent of which issues) commercial paper rated as described in
clause (c) of this definition and (iii) has combined capital and surplus of at least
$500,000,000, in each case with maturities of not more than 365 days from the date of
acquisition thereof;

     (c) commercial paper issued by any Person organized under the laws of any state of the
United States of America (or Canada, as the case may be) and

 

22

rated at least “Prime-1” (or the then equivalent grade) by Moody’s or at least “A-1”
(or the then equivalent grade) by S&P, in each case with maturities of not more than 180
days from the date of acquisition thereof;

     (d) Investments, classified in accordance with GAAP as current assets of the Borrowers
or any of their Subsidiaries, in money market investment programs registered under the
Investment Company Act of 1940, which are administered by financial institutions that have
the highest rating obtainable from either Moody’s or S&P, and the portfolios of which are
limited solely to Investments of the character, quality and maturity described in clauses
(a), (b) and (c) of this definition;

     (e) repurchase agreements entered into by any Person with a bank or trust company
(including any of the Lenders) or recognized securities dealer having capital and surplus
in excess of $500,000,000 for direct obligations issued by or fully guaranteed by the
United States in which such Person shall have a perfected first priority security interest
(subject to no other Liens) and having, on the date of purchase thereof, a fair market
value of at least 100% of the amount of the repurchase obligations; and

     (f) readily marketable direct obligations issued by any state of the United States or
any political subdivision thereof having one of the two highest rating categories
obtainable from either S&P or Moody’s with maturities of not more than twelve (12) months
from the date of acquisition thereof;

provided that instruments equivalent to those referred to in clauses (a) through
(f) above denominated in Canadian Dollars which are comparable in credit quality and tenor
to those referred to above and customarily used by corporations for short term cash management
purposes in Canada shall be permitted to the extent reasonably required in connection with any
business conducted by any Subsidiary organized in Canada.

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

          “Cash Management Bank” means a U.S. Cash Management Bank and/or a Canadian Cash
Management Bank, as the context may require.

          “CCAA” means the Companies’ Creditors Arrangement Act (Canada), as amended or
otherwise modified from time to time and any rule or regulation issued thereunder.

          “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability
Act of 1980.

          “CERCLIS” means the Comprehensive Environmental Response, Compensation and Liability
Information System maintained by the U.S. Environmental Protection Agency.

 

23

          “CFC” means a Person that is a controlled foreign corporation under Section 957 of the
Code.

          “Change in Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change
in any law, rule, regulation or treaty or in the administration, interpretation or application
thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or
directive (whether or not having the force of law) by any Governmental Authority.

          A “Change of Control” shall be deemed to have occurred if:

     (a) Holdings at any time ceases to own 100% of the Equity Interests of the Specified
U.S. Borrower;

     (b) at any time a change of control (as defined in the documentation for any
Indebtedness in an outstanding aggregate principal amount in excess of the Threshold
Amount) shall occur;

     (c) prior to a Qualifying IPO, (i) the Equity Investors cease to own (directly or
indirectly), or to have the power to vote or direct the voting of, Equity Interests of
Holdings representing a majority of the voting power of the total outstanding voting Equity
Interests of Holdings or (ii) the Equity Investors cease to own (directly or indirectly)
Equity Interests representing a majority of the total economic interests of the Equity
Interests of Holdings;

     (d) following a Qualifying IPO, (i) the Equity Investors shall fail to own (directly
or indirectly), or to have the power to vote or direct the voting of, Equity Interests of
Holdings representing more than 35% of the voting power of the total outstanding voting
Equity Interests of Holdings, (ii) the Equity Investors cease to own (directly or
indirectly) Equity Interests representing more than 35% of the total economic interests of
the Equity Interests of Holdings or (iii) any “person” or “group” (as such terms are used
in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than
one or more Equity Investors, is or becomes the beneficial owner (as defined in Rules 13d-3
and 13d-5 under the Securities Exchange Act of 1934, as amended, except for purposes of
this clause such person or group shall be deemed to have “beneficial ownership” of all
securities that such person or group has the right to acquire, whether such right is
exercisable immediately or only after the passage of time), directly or indirectly, of
voting Equity Interests of Holdings representing more than the voting power of the voting
Equity Interests of Holdings owned by the Equity Investors; or

     (e) following a Qualifying IPO, during any period of two consecutive years,
individuals who at the beginning of such period constituted the Board of Directors of
Holdings (or, if a parent company of Holdings shall have been the subject of such
Qualifying IPO, such parent) (together with any new directors whose election to such Board
of Directors or whose nomination for election was

 

24

approved by a vote of a majority of the members of the Board of Directors of Holdings
or such parent, which members comprising such majority are then still in office and were
either directors at the beginning of such period of whose election or nomination for
election was previously so approved) cease for any reason to constitute a majority of the
Board of Directors of Holdings or such parent.

     For purpose of this definition, a person shall not be deemed to have beneficial ownership of
Equity Interests subject to a stock purchase agreement, merger agreement or similar agreement until
consummation of the transactions contemplated by such agreement.

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

          “Code” means the Internal Revenue Code of 1986 as amended from time to time.

          “Collateral” means the U.S. Collateral and the Canadian Collateral.

          “Collateral Agent” means General Electric Capital Corporation, in its capacity as
“collateral agent” pursuant to Section 9.01.

          “Collateral Documents” means the U.S. Collateral Documents and the Canadian Collateral
Documents.

          “Commodities Account Control Agreements” has the meaning specified in the U.S.
Security Agreement and/or the Canadian Security Agreement, as the context may require.

          “Commitment” means a Revolving Credit Commitment.

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

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

          “Consolidated Amortization Expense” for any period means, with respect to any
specified Person for such period, the amortization expense of such Person and its Subsidiaries for
such period, determined on a consolidated basis in accordance with GAAP.

          “Consolidated Depreciation Expense” for any period means, with respect to any
specified Person for such period, the depreciation expense of such Person and its

 

25

Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP.

          “Consolidated EBITDA” means, with respect to any specified Person for any period, the
Consolidated Net Income of such Person for such period and, without duplication, plus: (1)
Consolidated Income Tax Expense; plus (2) Consolidated Amortization Expense (but only to the extent
not included in Consolidated Interest Expense); plus (3) Consolidated Depreciation Expense; plus
(4) Consolidated Interest Expense; plus (5) Restructuring Expenses; plus (6) payments pursuant to
the Advisory Agreement; plus (7) Pro Forma Cost Savings; plus (8) net out-of-pocket costs and
expenses related to acquiring the inventory of a prior supplier of a company in connection with
becoming a provider to such company not to exceed $5,000,000 for any Measurement Period; plus (9)
all other non-cash items reducing the Consolidated Net Income (excluding any non-cash charge that
results in an accrual of a reserve for cash charges in any future period and excluding write-down
or write-off of current assets) for such period, in each case for items (1) to (9) above,
determined on a consolidated basis in accordance with GAAP; minus (10) the aggregate amount of all
non-cash items, determined on a consolidated basis, to the extent such items increased Consolidated
Net Income for such period; provided that the sum of the Restructuring Expenses and Pro
Forma Costs Savings added to the Consolidated Net Income to compute Consolidated EBITDA in any
Measurement Period shall not exceed 15% of such Consolidated EBITDA for such Measurement Period.

          Notwithstanding the preceding, the provision for items (2) to (9) above of a Subsidiary which
is not a Guarantor of the Specified U.S. Borrower shall be added to Consolidated Net Income to
compute Consolidated EBITDA of the Specified U.S. Borrower only to the extent (and in the same
proportion) deducted in determining Consolidated Net Income and with respect to the portion of
Consolidated Net Income attributable to any Subsidiary (other than any Loan Party) only if a
corresponding amount would be permitted at the date of determination to be distributed to the
Specified U.S. Borrower by such Subsidiary without prior approval (that has not been obtained),
pursuant to the terms of its charter and all agreements, instruments, judgments, decrees, orders,
statutes, rules and governmental regulations applicable to such Subsidiary or its stockholders.

          “Consolidated Fixed Charge Coverage Ratio” means, for any period, the ratio of (a) (i)
Consolidated EBITDA of the Specified U.S. Borrower and its Subsidiaries, less (ii) the aggregate
amount of all Capital Expenditures of or by the Specified U.S. Borrower and its Subsidiaries made
during such period, less (iii) taxes paid or payable in cash by the Specified U.S. Borrower and its
Subsidiaries with respect to such period to (b) the sum of (i) the Consolidated Interest Expense of
the Specified U.S. Borrower and its Subsidiaries for such period paid in cash, plus (ii) the
aggregate principal amount of all Mandatory Principal Payments made during such period but
excluding (A) any such payments to the extent financed through the incurrence of additional
Indebtedness (other than Loans hereunder) otherwise expressly permitted under Section 7.02
and (B) Mandatory Principal Payments in respect of the Existing Credit Facility in each case made
on or before the Closing Date, and (iii) the aggregate principal amount of all

 

26

Restricted Payments made during such period pursuant to Section 7.06(e), for the most
recently complete Measurement Period.

          “Consolidated Income Tax Expense” for any period means, with respect to any specified
Person for any period, the provision for taxes of such Person and its Subsidiaries, determined on a
consolidated basis in accordance with GAAP.

          “Consolidated Interest Expense” for any period means, with respect to any specified
Person for any period, the sum, without duplication, of the total interest expense (less interest
income) of such Person and its Subsidiaries for such period, determined on a consolidated basis in
accordance with GAAP and including without duplication,

     (a) imputed interest on Capitalized Lease Obligations,

     (b) commissions, discounts and other fees and charges owed with respect to letters of
credit securing financial obligations, bankers’ acceptance financing and receivables
financings,

     (c) the net costs associated with Hedging Obligations,

     (d) the interest portion of any deferred payment obligations,

     (e) all other non-cash interest expense,

     (f) capitalized interest,

     (g) the product of (i) all dividend payments on any series of Disqualified Equity
Interests of such Person or any Preferred Stock of any Subsidiary thereof (other than any
such Disqualified Equity Interests or any Preferred Stock held by such Person or a
wholly-owned Subsidiary thereof or to the extent paid in Qualified Equity Interests),
multiplied by (ii) a fraction, the numerator of which is one and the denominator of which
is one minus the then current combined federal, state and local statutory tax rate of such
Person and its Subsidiaries, expressed as a decimal,

     (h) all interest payable with respect to discontinued operations, and

     (i) all interest on any Indebtedness described in clause (e) or (h) of the
definition of “Indebtedness”; provided that such interest shall be included in
Consolidated Interest Expense only to the extent that the amount of the related
Indebtedness is reflected on the balance sheet of the Specified U.S. Borrower or any
Subsidiary,

less, to the extent included in such total interest expense, (A) the amortization during such
period of capitalized financing costs associated with the Transactions and (B) the amortization
during such period of other capitalized financing costs; provided, however, that,
in the case of clause (B), the aggregate amount of amortization relating to such capitalized
financing costs deducted in calculating Consolidated Interest Expense shall not exceed 5% of the
aggregate amount of the financing giving rise thereto.

 

27

Consolidated Interest Expense shall be calculated excluding unrealized gains and losses with
respect to Hedging Obligations.

          “Consolidated Net Income” means, with respect to any specified Person for any period,
the aggregate of the net income (or loss) of such Person and its Subsidiaries for such period, on a
consolidated basis, determined in accordance with GAAP; provided that there shall be
excluded from such net income (or loss) (to the extent otherwise included therein), without
duplication:

     (a) net income (or loss) of any Person (other than a Subsidiary) in which such
specified Person other than the Specified U.S. Borrower and its Subsidiaries has an
ownership interest; provided that, to the extent not previously included,
Consolidated Net Income shall be increased by the amount of dividends or distributions paid
in cash to the specified Person or a Subsidiary thereof;

     (b) except to the extent includible in Consolidated Net Income of the specified Person
pursuant to the foregoing clause (a), the net income (or loss) of any Person that accrued
prior to the date that (i) such Person becomes a Subsidiary or is merged into or
consolidated with the specified Person or a Subsidiary thereof or (ii) the assets of such
Person are acquired by the specified Person or a Subsidiary thereof;

     (c) the net income of any Subsidiary (other than any Loan Party) during such period to
the extent that the declaration or payment of dividends or similar distributions by such
Subsidiary of that income is not permitted by operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or governmental regulation
applicable to that Subsidiary during such period, except that the specified Person’s equity
in a net loss of any such Subsidiary for such period shall be included in determining
Consolidated Net Income;

     (d) any gain (or loss), together with any related provisions for taxes on any such
gain (or the tax effect of any such loss), realized during such period by such specified
Person or any of its Subsidiaries upon (i) the acquisition of any securities, or the
extinguishment of any Indebtedness, of the specified Person and any Subsidiary thereof or
(ii) any Disposition by the specified Person or any Subsidiary thereof;

     (e) gains and losses due solely to fluctuations in currency values and the related tax
effects according to GAAP;

     (f) unrealized gains and losses with respect to Hedging Obligations;

     (g) the cumulative effect of any change in accounting principles;

     (h) any amortization or write-offs of debt issuance or deferred financing costs,
premiums and prepayment penalties, and other costs and expenses, in each

 

28

case, paid or charged during such period to the extent attributable to the
Transactions;

     (i) gains and losses realized upon the refinancing of any Indebtedness of the
specified Person or any Subsidiary thereof;

     (j) any extraordinary or nonrecurring gain (or extraordinary or nonrecurring loss),
together with any related provision for taxes on any such extraordinary or nonrecurring
gain (or the tax effect of any such extraordinary or nonrecurring loss), realized by the
specified Person or any Subsidiary during such period thereof;

     (k) non-cash compensation charges or other non-cash expenses or charges arising from
the grant of or issuance or repricing of Equity Interests or other equity-based awards or
any amendment or substitution of any such Equity Interests or other equity-based awards;

     (l) any non-cash goodwill or non-cash asset impairment charges subsequent to the
Closing Date;

     (m) any expenses or reserves for liabilities to the extent that the specified Person
or any Subsidiary thereof is entitled to indemnification therefor under binding agreements;
provided that any liabilities for which the specified Person or such Subsidiary is
not actually indemnified shall reduce Consolidated Net Income in the period in which it is
determined that the specified Person or such Subsidiary will not be indemnified; and

     (n) so long as the specified Person or any Subsidiary file a consolidated tax return,
or are part of a consolidated group for tax purposes, with Holdings or any other holding
company, the excess of (i) the Consolidated Income Tax Expense for such period over (ii)
all tax payments payable for such period by the specified Person and the Subsidiaries
thereof to Holdings or such other holding company under a tax sharing agreement or
arrangement.

     For purposes of this definition of “Consolidated Net Income,” “nonrecurring” means, with
respect to any cash gain or loss, any gain or loss as of any date that is not reasonably likely to
recur within the two years following such date; provided that if there was a gain or loss
similar to such gain or loss within the two years preceding such date, such gain or loss shall not
be deemed nonrecurring.

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

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

 

29

          “Covenant Trigger Event” means, at any time, either (a) the occurrence and continuance
of an Event of Default or (b) the failure of the Loan Parties to maintain Excess Availability of at
least 15% of the Aggregate Commitments. For purposes of this Agreement, the occurrence of a
Covenant Trigger Event shall be deemed continuing (a) so long as such Event of Default is
continuing and has not been cured or waived and/or (b) if the Covenant Trigger Event arises under
clause (b) above, until Excess Availability is equal to or greater than 15% of the Aggregate
Commitments for thirty (30) consecutive days, in which case a Covenant Trigger Event shall no
longer be deemed to be continuing for purposes of this Agreement. For purposes of determining
whether a Covenant Trigger Event shall have occurred and is continuing, no greater than 25% of
Excess Availability shall be composed of Canadian Excess Availability and no greater than 25% of
the Aggregate Commitments shall be composed of Commitments of Canadian Lenders.

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

          “Credit Judgment” means the Agents’ commercially reasonable judgment exercised in good
faith, based upon their consideration of any factor that they reasonably believe (a) could
materially adversely affect the quantity, quality, mix or value of Collateral (including any
Applicable Law that may inhibit collection of an Account), the enforceability or priority of the
Collateral Agent’s Liens, or the amount that the Agents and the Lenders could receive in
liquidation of any Collateral; (b) suggests that any collateral report or financial information
delivered by any Loan Party is incomplete, inaccurate or misleading in any material respect;
(c) materially increases the likelihood of any Insolvency Proceeding involving a Loan Party; or (d)
creates or could result in an Event of Default. In exercising such judgment, the Agents may
consider any factors that could materially increase the credit risk of lending to the Borrowers on
the security of the Collateral.

          “CS Toronto” has the meaning specified in the introductory paragraph hereto.

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

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

          “Default Rate” means (a) when used with respect to Obligations other than Letter of
Credit Fees, an interest rate equal to (i) the Base Rate, Canadian Base Rate or Canadian Prime
Rate, as applicable plus (ii) the Applicable Rate, if any, applicable to

 

30

Base Rate Loans, Canadian Base Rate Loans or Canadian Prime Rate Loans, as the case may be,
under the Revolving Credit Facility plus (iii) 2% per annum; provided, however,
that with respect to a Eurodollar Rate Loan or a BA Rate Loan, the Default Rate shall be an
interest rate equal to the interest rate (including any Applicable Rate) otherwise applicable to
such Loan plus 2% per annum and (b) when used with respect to Letter of Credit Fees, a rate equal
to the Applicable Rate plus 2% per annum.

          “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the
Revolving Credit Loans, participations in L/C Obligations 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, (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 (c) has been deemed insolvent or become the subject
of a bankruptcy or insolvency proceeding.

          “Deposit Account Control Agreements” has the meaning specified in the U.S. Security
Agreement and/or the Canadian Security Agreement, as the context may require.

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

          “Disqualified Equity Interests” means any Equity Interest which, by its terms (or by
the terms of any security or other Equity Interests into which it is convertible or for which it is
exchangeable), or upon the happening of any event or condition (a) matures or is mandatorily
redeemable (other than solely for Equity Interests (other than Disqualified Equity Interests)),
pursuant to a sinking fund obligation or otherwise, (b) is redeemable at the option of the holder
thereof, in whole or in part, (c) provides for the scheduled payments of dividends in cash, or (d)
is or becomes convertible into or exchangeable for Indebtedness or any other Equity Interests that
would constitute Disqualified Equity Interests, in each case, prior to the date that is ninety one
(91) days after the Maturity Date; provided that if such Equity Interest is issued to any
employee or to any plan for the benefit of employees of Holdings, the Specified U.S. Borrower or
any of its Subsidiaries or by any such plan to such employees, such Equity Interest shall not
constitute a Disqualified Equity Interest solely because it may be required to be repurchased by
Holdings, the Specified U.S. Borrower or such Subsidiary in order to satisfy applicable statutory
or regulatory obligations; and provided further that any Equity Interest that would
constitute a Disqualified Equity Interest solely because the holders thereof have the right to
require Holdings or the Specified U.S. Borrower to repurchase such Equity Interest upon the
occurrence of a change of control or an asset sale shall not constitute a Disqualified Equity
Interest if the terms of such Equity Interest provide that Holdings or the Specified U.S. Borrower
may not repurchase or redeem any such Equity Interest pursuant to such provisions prior to the
repayment in full of the Obligations.

 

31

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

          “Dollar Equivalent” means, at any time, (a) with respect to any amount denominated in
Dollars, such amount, and (b) with respect to any amount denominated in any other currency, the
equivalent amount thereof in Dollars as determined by the Administrative Agent or the L/C Issuers,
as the case may be, at such time on the basis of the Spot Rate in accordance with Section
1.07.

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

          “Dominion Account” means any Deposit Account of a Loan Party at the Collateral Agent
or its Affiliates or branches or another bank acceptable to the Collateral Agent, in each case
which is subject to a Deposit Account Control Agreement and a lockbox or other similar arrangement
in accordance with Section 6.17(a)(iv).

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

          “Eligible Collateral” means, collectively, Eligible Inventory and Eligible
Receivables.

          “Eligible In-Transit Inventory” means, at any time, without duplication of other
Eligible Inventory, Inventory:

     (a) which has been shipped for receipt by any Loan Party within forty-five (45) days
of the date of shipment, but which has not yet been delivered to or on behalf of such Loan
Party;

     (b) for which the purchase order is in the name of a Loan Party and title has passed
to such Loan Party;

     (c) which is insured in accordance with the terms of this Agreement; and

     (d) which otherwise would constitute Eligible Inventory.

          “Eligible Inventory”  means Inventory of the Loan Parties subject to the
Lien of the Collateral Documents, the value of which shall be determined by taking into
consideration, among other factors, the lowest of its cost and its book value determined in
accordance with GAAP and excluding any portion of cost attributable to intercompany profit among
the Loan Parties and their Affiliates; provided, however, that, subject to the
ability of the Agents to establish other criteria of ineligibility in their Credit Judgment or
modify the criteria established below, unless otherwise approved by the Agents in their Credit
Judgment, none of the following classes of Inventory shall be deemed to be Eligible Inventory:

 

32

     (a) Inventory that is obsolete, unusable or otherwise unavailable for sale;

     (b) Inventory consisting of promotional, marketing, packaging or shipping materials
and supplies;

     (c) Inventory that fails to meet all standards imposed by any Governmental Authority
having regulatory authority over such Inventory or its use or sale;

     (d) Inventory (i) with respect to the U.S. Borrowing Base, located outside the United
States and (ii) with respect to the Canadian Borrowing Base, located outside of Canada;

     (e) Inventory that is located on premises owned, leased or rented by a Person that is
not a Loan Party, or is placed on consignment; provided that Inventory placed on
consignment with an aggregate book value of up to $15,000,000 shall consist of Eligible
Inventory if such Inventory is clearly segregated from all Inventory of such Person, all
UCC and PPSA filings deemed necessary or desirable by the Agents have been made, notice has
been given to any secured lender of such Person, and a reasonably satisfactory Lien Waiver
has been delivered to Agents by such Person;

     (f) Inventory with respect to which the representations and warranties set forth in
this Agreement, in the U.S. Security Agreement or in the Canadian Security Agreement
applicable to Inventory are not correct;

     (g) Inventory in respect of which the U.S. Security Agreement or the Canadian Security
Agreement, as applicable, after giving effect to the related filings of financing
statements that have then been made, if any, does not or has ceased to create a valid and
perfected first priority Lien or security interest in favor of the Collateral Agent, on
behalf of the applicable Secured Parties, securing the applicable Obligations;

     (h) it is not either (i) otherwise acceptable to or (ii) subject to a reserve
acceptable to, the Agents, in their Credit Judgment; and

     (i) in-transit Inventory other than Eligible In-Transit Inventory with an aggregate
book value of up to $5,000,000.

If the Agents deem Inventory ineligible in their Credit Judgment (and not based upon the criteria
set forth above), then the Agents shall give the Borrower Agent two (2) Business Days’ prior notice
thereof (unless an Event of Default exists, in which event no notice shall be required).

          “Eligible Receivables” means Accounts of the Loan Parties subject to the Lien of the
Collateral Documents, the value of which shall be determined by taking into consideration, among
other factors, their book value determined in accordance with GAAP, net of any returns, rebates,
discounts (calculated on the shortest terms), credits,

 

33

allowances or Taxes (including sales, excise or other taxes) that have been or could be
claimed by the Account Debtor or any other Person; provided, however, that, subject
to the ability of the Agents to establish other criteria of ineligibility in their Credit Judgment
or modify the criteria established below, unless otherwise approved by the Agents in their Credit
Judgment, none of the following classes of Accounts shall be deemed to be Eligible Receivables:

     (a) Accounts that (i) do not arise out of sales of goods or rendering of services in
the ordinary course of the Borrowers’ or the relevant Subsidiaries’ business, (ii) are not
evidenced by an invoice or other documentation satisfactory to the Agents, (iii) are
contingent upon any Loan Party’s completion of any further performance or (iv) relate to
payments of interest;

     (b) Accounts payable other than in Dollars or, in the case of Canadian Loan Parties,
Dollars or Canadian Dollars, or that are otherwise on terms other than those normal or
customary in the Borrowers’ or the relevant Subsidiaries’ business;

     (c) Accounts arising out of a sale made or services rendered by any Borrower to a
Subsidiary of any Borrower or an Affiliate of any Borrower or to a Person controlled by an
Affiliate of any Borrower (including any employees, officers, directors or stockholders of
such Borrower);

     (d) Accounts (i) more than 90 days past the original invoice date, (ii) more than 60
days past the original due date (other than up to $7,500,000 of Accounts not more than 75
days past the original due date) or (iii) which has been written off the books of such Loan
Party or otherwise designated as uncollectible;

     (e) Accounts owing from any Person from which an aggregate amount of more than 50% of
the Accounts owing therefrom is more than 90 days past original invoice date or more than
60 days past the date due;

     (f) Accounts owing from any Person that exceed 20% of the net amount of all Eligible
Accounts, but only to the extent of such excess;

     (g) Accounts owing from any Person that (i) has disputed liability for any Account
owing from such Person or has been placed on credit hold due to past due balances or
(ii) has otherwise asserted any claim, demand or liability against a Borrower or any of its
Subsidiaries, whether by action, suit, counterclaim or otherwise;

     (h) Accounts owing from any Person that shall take or be the subject of any action or
proceeding of a type described in Section 8.01(f);

     (i) Accounts (i) owing from any Person that is also a supplier to or creditor of a
Borrower or any of its Subsidiaries unless such Person has waived any right of setoff in a
manner acceptable to the Agents, (ii) representing any manufacturer’s or supplier’s
credits, discounts, incentive plans or similar

 

34

arrangements entitling a Borrower or any of its Subsidiaries to discounts on future
purchase therefrom, (iii) in respect of which the related invoice(s) has been reversed;

     (j) Accounts arising out of sales to account debtors outside the United States and
Canada, unless such Accounts are fully backed by an irrevocable letter of credit on terms,
and issued by a financial institution, acceptable to the Agents and such irrevocable letter
of credit is in the possession of the Collateral Agent;

     (k) Accounts arising out of sales on a bill-and-hold, cash in advance or cash on
delivery payment terms, guaranteed sale, sale-or-return, sale on approval or consignment
basis or subject to any right of return, setoff or charge back or Accounts representing any
unapplied cash;

     (l) Accounts owing from an account debtor that is an agency, department or
instrumentality of the United States or any state thereof or Canada or any province or
territory thereof unless the applicable Borrower or its relevant Subsidiary shall have
satisfied the requirements of the Assignment of Claims Act of 1940, or the Financial
Administration Act (Canada) and any similar state, provincial or territorial legislation
and the Agents are satisfied as to the absence of setoffs, counterclaims and other defenses
on the part of such account debtor;

     (m) Accounts with respect to which the representations and warranties set forth in
this Agreement or in the Security Agreement applicable to Accounts are not correct;

     (n) Accounts in respect of which the applicable Security Agreement, after giving
effect to the related filings of financing statements that have then been made, if any,
does not or has ceased to create a valid and perfected first priority lien or security
interest in favor of the Collateral Agent, on behalf of the Secured Parties, securing the
Obligations;

     (o) Accounts that fail to meet all standards imposed by any Governmental Authority
having regulatory authority over such Account;

     (p) Accounts (i) for which goods giving rise to such Account have not been shipped to
the Account Debtor or for which the services giving rise to such Account have not been
performed or if such Account was invoiced more than once and (ii) with respect to which any
check or other instrument of payment has been uncollected for any reason; and

     (q) it is not either (i) otherwise acceptable to or (ii) subject to a reserve
acceptable to, the Agents, in their Credit Judgment.

If the Agents deem Accounts ineligible in their Credit Judgment (and not based upon the criteria
set forth above), then the Agents shall give the Borrower Agent two (2) Business Days’ prior notice
thereof (unless an Event of Default exists, in which event no notice shall be required).

 

35

          “Environmental Laws” means any and all federal, state, provincial, territorial,
municipal, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders,
decrees, permits, licenses, and the common law relating to pollution or the protection of the
environment (including ambient air, indoor air, surface wastes, groundwater, land and subsurface
strata), human health and safety and natural resources including those related to Release or threat
of Release, or exposure to, or generation, storage, treatment, transport, handling, distribution or
disposal of Hazardous Materials.

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

          “Environmental Permit” means any permit, approval, identification number, license or
other authorization required under any Environmental Law.

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

          “Equity Investors” means the Sponsor, the Management Shareholders, the other
equityholders of Ply Gem Prime Holdings, Inc. and their respective Affiliates and Related Parties
as of the Closing Date.

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

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

          “ERISA Event” means (a) (i) the occurrence of a Reportable Event with respect to a
Pension Plan or (ii) the requirements of Section 4043(b) of ERISA apply with respect to a
contributing sponsor, as defined in Section 4001(a)(13) of ERISA, of a Pension Plan, and an event
described in paragraph (9), (10), (11), (12) or (13) of

 

36

Section 4043(c) of ERISA is reasonably expected to occur with respect to such Pension Plan
within the following 30 days; (b) a withdrawal by the Borrowers or any ERISA Affiliate from a
Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial
employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated
as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by the
Borrowers or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer
Plan is in reorganization; (d) the filing of a notice of intent to terminate, the treatment of a
Plan amendment as a termination under Section 4041 or 4041A of ERISA, or the commencement of
proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or
condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; (f) the imposition
of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under
Section 4007 of ERISA, upon the Borrowers or any ERISA Affiliate; (g) the withdrawal by any Loan
Party or any ERISA Affiliate from a Pension Plan that is a multiple employer or other plan
described in Section 4064(a) of ERISA during a plan year for which it was a substantial employer,
as defined in Section 4001(a)(2) of ERISA; (h) the conditions for imposition of a lien under
Section 303(k) of ERISA or other applicable Laws shall have been met with respect to any Pension
Plan or Canadian Pension Plan; or (i) a determination that any Pension Plan is in “at risk” status
(within the meaning of Section 303 of ERISA).

          “Eurodollar Rate” means, for any Interest Period with respect to a Eurodollar Rate
Loan, an interest rate per annum equal to the product of (a) the rate per annum determined by
Credit Suisse, at approximately 11:00 a.m. (London time) on the date which is two Business Days
prior to the beginning of such Interest Period (as specified in the applicable Committed Loan
Notice) by reference to the British Bankers’ Association Interest Settlement Rates for deposits in
Dollars (as set forth by any service which has been nominated by the British Bankers’ Association
as an authorized information vendor for the purpose of displaying such rates) for a period equal to
such Interest Period, provided that, to the extent that an interest rate is not
ascertainable pursuant to the foregoing provision of this definition, the “Eurodollar Rate” shall
be the interest rate per annum, determined by Credit Suisse to be the average of the rates per
annum at which deposits in Dollars are offered for such relevant Interest Period to major banks in
the London interbank market in London, England by Credit Suisse at approximately 11:00 a.m. (London
time) on the date which is two Business Days prior to the beginning of such Interest Period and (b)
Statutory Reserves.

          “Eurodollar Rate Loan” means a Revolving Credit Loan that bears interest at a rate
based on the Eurodollar Rate.

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

          “Excess Availability” means the sum of U.S. Excess Availability and Canadian Excess
Availability.

 

37

          “Excluded Accounts” has the meaning specified in the U.S. Security Agreement and/or
the Canadian Security Agreement, as the context may require.

          “Excluded Subsidiary” means, on any date, any Subsidiary of the Specified U.S.
Borrower that has less than $100,000 in total assets; (ii) which does not have any Indebtedness
(including by way of Guarantee) in respect of money borrowed (it being understood, without
limitation to the foregoing, that in no event shall any Subsidiary that provides a Guarantee of the
Senior Secured Notes be an Excluded Subsidiary), and (iii) which is not engaged in any substantial
business activities.

          “Excluded Taxes” means, with respect to any Agent, any Lender, any L/C Issuer or any
other recipient of any payment to be made by or on account of any obligation of a Borrower
hereunder, (a) taxes imposed on or measured by its overall net income or capital (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 or any similar
tax imposed by any other jurisdiction described in clause (a) above, (c) any backup
withholding tax that is required by the Code to be withheld from any amounts payable under this
Agreement, and (d) in the case of a Foreign Lender (other than an assignee pursuant to a request by
the Borrower Agent under Section 10.13 and other than an assignee Lender pursuant to a CAM
Exchange under Section 8.04), any United States withholding tax that (i) is required to be
imposed on amounts payable to such Foreign Lender pursuant to the Laws in force at the time such
Foreign Lender becomes a party hereto (or designates a new Lending Office) or (ii) is attributable
to such Foreign Lender’s failure or inability (other than as a result of a Change in Law) to comply
with clause (B) of Section 3.01(e)(ii), except to the extent that such Foreign
Lender (or its assignor, if any) was entitled, at the time of designation of a new Lending Office
(or assignment), to receive additional amounts from the Borrowers with respect to such withholding
tax pursuant to Section 3.01(a)(ii) or (iii).

          “Executive Order” has the meaning specified in Section 5.23(a).

          “Existing Credit Agreement” means that certain Fifth Amended and Restated Credit
Agreement, dated as of April 5, 2007, as amended, among the Borrowers, Holdings, UBS AG, Stamford
Branch, as administrative agent and collateral agent and the lender parties and other agents party
thereto.

          “Existing Letters of Credit” means the letters of credit listed on
Schedule 1.01 and outstanding on the Closing Date.

          “Facility” means the U.S. Revolving Credit Facility and/or the Canadian Revolving
Credit Facility, as the context may require.

          “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of

 

38

the Federal Reserve System arranged by Federal funds brokers on such day, as published by the
Federal Reserve Bank of New York on the Business Day next succeeding such day; provided
that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate
on such transactions on the next preceding Business Day as so published on the next succeeding
Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the
Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole
multiple of 1/100 of 1%) charged to Credit Suisse on such day on such transactions as determined by
the Administrative Agent.

          “Fee Letter” means (a) the letter agreement, dated June 2, 2008, among the Specified
U.S. Borrower, the Administrative Agent and the Bookrunner and (b) the letter agreement, dated June
3, 2008, between the Specified U.S. Borrower and the Collateral Agent.

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

          “Foreign Plan” means any employee benefit plan, program, policy, arrangement or
agreement maintained or contributed to by, or entered into with, the Specified U.S. Borrower or any
Subsidiary with respect to employees employed outside the United States.

          “Foreign Subsidiary” means any direct or indirect Subsidiary of the Specified U.S.
Borrower that is not a Domestic Subsidiary.

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

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

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

          “Governmental Authority” means the government of the United States, Canada or any
other nation, or of any political subdivision thereof, whether state, provincial, territorial,
municipal or local, and any agency, authority, instrumentality, regulatory body, court, central
bank or other entity exercising executive, legislative,

 

39

judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government (including any supra-national bodies such as the European Union or the European Central
Bank).

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

          “Guarantors” means, collectively, Holdings, the Specified U.S. Borrower, the
Subsidiaries of the Specified U.S. Borrower listed on Schedule 6.12 and each other
Subsidiary of the Specified U.S. Borrower that shall be required to execute and deliver a guaranty
or guaranty supplement pursuant to Section 6.12.

          “Guaranties” means the U.S. Guaranty and the Canadian Guarantee.

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

          “Hedge Bank” means any Person that, at the time it enters into a Swap Contract
permitted under Article VI or VII, is an Agent or a Lender or an Affiliate of an
Agent or a Lender, in its capacity as a party to such Swap Contract.

 

40

          “Hedging Obligations” means, with respect to any specified Person, the obligations of
such Person under:

     (a) interest rate swap agreements, interest rate cap agreements, interest rate collar
agreements and other agreements or arrangements designed for the purpose of fixing, hedging
or swapping interest rate risk;

     (b) commodity swap agreements, commodity option agreements, forward contracts and
other agreements or arrangements designed for the purpose of fixing, hedging or swapping
commodity price risk; and

     (c) foreign exchange contracts, currency swap agreements and other agreements or
arrangements designed for the purpose of fixing, hedging or swapping foreign currency
exchange rate risk.

          “Holdings” means Ply Gem Holdings, Inc.

          “Incremental Assumption Agreement” means an Incremental Assumption Agreement in form
and substance reasonably satisfactory to the Administrative Agent, among the Borrowers, the
Administrative Agent and one or more Incremental Revolving Credit Lenders.

          “Incremental Revolving Credit Commitment” means any increased or incremental Revolving
Credit Commitment provided pursuant to Section 2.16.

          “Incremental Revolving Credit Lender” means a Revolving Credit Lender with a Revolving
Credit Commitment or an outstanding Revolving Credit Loan as a result of an Incremental Revolving
Credit Commitment.

          “Indebtedness” means, as to any Person at a particular time, without duplication, all
of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

     (a) all obligations of such Person for borrowed money and all obligations of such
Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

     (b) the maximum amount of all direct or contingent obligations of such Person arising
under letters of credit (including standby and commercial), bankers’ acceptances, bank
guaranties, surety bonds and similar instruments;

     (c) net obligations of such Person under any Swap Contract;

     (d) all obligations of such Person to pay the deferred purchase price of property or
services (other than trade accounts payable in the ordinary course of business and not past
due for more than 90 days after the date on which such trade account was created);

 

41

     (e) indebtedness (excluding prepaid interest thereon) secured by a Lien on
property owned or being purchased by such Person (including indebtedness arising under
conditional sales or other title retention agreements), whether or not such indebtedness
shall have been assumed by such Person or is limited in recourse;

     (f) all Attributable Indebtedness in respect of Capitalized Leases and Synthetic Lease
Obligations of such Person and all Synthetic Debt of such Person;

     (g) all obligations of such Person to purchase, redeem, retire, defease or otherwise
make any payment in respect of any Equity Interest in such Person or any other Person or
any warrant, right or option to acquire such Equity Interest, valued, in the case of a
redeemable preferred interest, at the greater of its voluntary or involuntary liquidation
preference plus  accrued and unpaid dividends; and

     (h) all Guarantees of such Person in respect of any of the foregoing;

provided that, “Indebtedness” shall not include any post-closing payment adjustments or
earn-out, non-competition or consulting obligations existing on the Closing Date or incurred in
connection with Investments permitted under Section 7.02(h) or (n) (i) if such
obligations are not required to be reflected as a liability on the balance sheet of the applicable
Person or (ii) if at the time of such Investment, the Specified U.S. Borrower was able to satisfy
the tests in Section 7.02(h) or (n), as applicable, after giving pro forma effect
to the maximum possible payment that could result from such adjustment, earn-out or other
obligation as if paid on the date of consummation of such Investment (as certified to the
Administrative Agent in reasonable detail by a Responsible Officer of the Borrower).

          For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any
partnership or joint venture (other than a joint venture that is itself a corporation or limited
liability company) in which such Person is a general partner or a joint venturer, unless such
Indebtedness is expressly made non-recourse to such Person. The amount of any net obligation under
any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such
date.

          “Indemnified Taxes” means Taxes other than Excluded Taxes.

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

          “Information” has the meaning specified in Section 10.07.

          “Information Memorandum” means the information memorandum intended to be used by the
Bookrunner in connection with the syndication of the Commitments.

 

42

          “Initial Borrowing Base Certificate” means the first Borrowing Base Certificate
delivered by the Borrower Agent to the Agents pursuant to
Section 6.01(e) after completion
of the Required Audit and Appraisal.

          “Intellectual Property Security Agreements” means the U.S. Intellectual Property
Security Agreement and the Canadian Intellectual Property Security Agreement.

          “Intercompany Note” means an intercompany note, substantially in the form of
Exhibit I, executed by the Specified U.S. Borrower and each of its Subsidiaries and
endorsed in blank by each of the U.S. Loan Parties.

          “Intercreditor Agreement” means the Lien Subordination and Intercreditor Agreement
dated as of the date hereof, among the Collateral Agent, on behalf of the U.S. Secured Parties, and
the Trustee, on behalf of the “Noteholder Secured Parties” (as defined therein), Holdings and the
U.S. Loan Parties.

          “Interest Payment Date” means, (a) as to any Eurodollar Rate Loan or BA Rate Loan, the
last day of each Interest Period applicable to such Loan and the Maturity Date of the Facility
under which such Loan was made; provided, however, that if any Interest Period for
a Eurodollar Rate Loan or a BA Rate Loan exceeds 3 months, the respective dates that fall every 3
months after the beginning of such Interest Period shall also be Interest Payment Dates; and (b) as
to any Base Rate Loan, Canadian Base Rate Loan, Canadian Prime Rate Loan or Swing Line Loan, the
first Business Day of each April, July, October and January and the Maturity Date of the Facility
under which such Loan was made (with Swing Line Loans being deemed made under the Revolving Credit
Facility for purposes of this definition).

          “Interest Period” means, as to each Eurodollar Rate Loan and BA Rate Loan, the period
commencing on the date such Eurodollar Rate Loan or BA Rate Loan is disbursed or converted to or
continued as a Eurodollar Rate Loan or BA Rate Loan, and ending on the date 1, 2, 3 or 6 months
thereafter, as selected by a Borrower in its Committed Loan Notice or such other period that is 365
days or less requested by a Borrower and consented to by all the Appropriate Lenders;
provided that:

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

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

     (c) no Interest Period shall extend beyond the Maturity Date of the Facility under
which such Loan was made.

 

43

          “Inventory” has the meaning specified in the UCC or the PPSA, as applicable, and shall
include all goods intended for sale or lease by a Loan Party, or for display or demonstration; all
work in process, all raw materials, and other materials and supplies of every nature and
description used or which might be used in connection with the manufacture, printing, packing,
shipping, advertising, selling, leasing or furnishing such goods or otherwise used or consumed in
such Loan Party’s business (but excluding Equipment).

          “Investment” means, as to any Person, any direct or indirect acquisition or investment
by such Person, whether by means of (a) the purchase or other acquisition of Equity Interests of
another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of,
or purchase or other acquisition of any other debt or interest in, another Person, or (c) the
purchase or other acquisition (in one transaction or a series of transactions) of assets of another
Person that constitute a business unit or all or a substantial part of the business of, such
Person. For purposes of covenant compliance, the amount of any Investment shall be the amount
actually invested, without adjustment for subsequent increases or decreases in the value of such
Investment.

          “IP Rights” has the meaning specified in Section 5.17.

          “IP Security Agreement Supplement” means a supplement delivered in connection with any
Intellectual Property Security Agreement, in each case in form and substance reasonably
satisfactory to the Collateral Agent.

          “IRS” means the United States Internal Revenue Service.

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

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

          “Junior Financing” has the meaning specified in Section 7.14.

          “Junior Financing Documentation” means the 2012 Senior Subordinated Notes, the 2012
Senior Subordinated Notes Indenture and any documentation governing any other Junior Financing.

          “Laws” means, collectively, all international, foreign, federal, state, provincial,
territorial, municipal and local statutes, treaties, rules, guidelines, regulations, ordinances,
codes and administrative or judicial precedents or authorities, including the interpretation or
administration thereof by any Governmental Authority charged with the enforcement, interpretation
or administration thereof, and all applicable administrative orders, directed duties, requests,
licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each
case having the force of law.

 

44

          “L/C Advance” a U.S. L/C Advance and/or a Canadian L/C Advance, as the context may
require.

          “L/C Borrowing” means a U.S. L/C Borrowing and/or a Canadian L/C Borrowing, as the
context may require.

          “L/C Credit Extension” means a U.S. L/C Credit Extension and/or a Canadian L/C Credit
Extension, as the context may require.

          “L/C Issuer” means the U.S. L/C Issuer and/or the Canadian L/C Issuer, as the context
may require.

          “L/C Obligations” means the U.S. L/C Obligations and/or the Canadian L/C Obligations,
as the context may require.

          “Lender” means a U.S. Lender and/or a Canadian Lender, as the context may require.

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

          “Letter of Credit” means a U.S. Letter of Credit and/or a Canadian Letter of Credit,
as the context may require.

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

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

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

          “Letter of Credit Sublimit” means the U.S. Letter of Credit Sublimit and/or the
Canadian Letter of Credit Sublimit, as the context may require.

          “License” means any license or agreement under which a Loan Party is authorized to use
IP Rights in connection with any manufacture, marketing, distribution or disposition of Collateral,
any use of property or any other conduct of its business.

          “Licensor” means any Person from whom a Loan Party obtains the right to use any IP
Rights.

          “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge, or preference, priority or

 

45

other security interest or preferential arrangement in the nature of a security interest of
any kind or nature whatsoever (including any conditional sale or other title retention agreement,
any easement, right of way or other encumbrance on title to real property, and any financing lease
having substantially the same economic effect as any of the foregoing).

          “Lien Waiver” means an agreement, in form and substance reasonably satisfactory to the
Collateral Agent, by which (a) for any personal property Collateral located on leased premises, the
lessor waives or subordinates any Lien it may have on the Collateral, and agrees to permit the
Collateral Agent to enter upon the premises and remove the Collateral or to use the premises for an
agreed upon period of time to store or dispose of the Collateral; (b) for any Collateral held by a
warehouseman, processor, shipper, customs broker or freight forwarder, such Person waives or
subordinates any Lien it may have on the Collateral, agrees to hold any documents in its possession
relating to the Collateral as agent for the Collateral Agent, and agrees to deliver the Collateral
to the Collateral Agent upon request; and (c) for any Collateral held by a repairman, mechanic or
bailee, such Person acknowledges the Collateral Agent’s Lien, waives or subordinates any Lien it
may have on the Collateral, and agrees to deliver the Collateral to the Collateral Agent upon
request.

          “Loan” means a U.S. Loan and/or a Canadian Loan.

          “Loan Documents” means the U.S. Loan Documents and the Canadian Loan Documents.

          “Loan Parties” means, collectively, each Borrower and each Guarantor.

          “Management Shareholders” means the members of management of the Specified U.S.
Borrower or its Subsidiaries who were investors in Ply Gem Prime Holdings, Inc. on the Closing
Date.

          “Mandatory Principal Payments” means all regularly scheduled principal payments or
redemptions or similar acquisitions for value of outstanding Indebtedness for borrowed money of any
Borrower or Guarantor.

          “Material Adverse Effect” means (A) a material adverse change in, or a material
adverse effect on, the business, assets, liabilities, operations, condition (financial or
otherwise) operating results of the Specified U.S. Borrower and its Subsidiaries, taken as a whole;
(B) a material impairment of the rights and remedies of or benefits available to the Administrative
Agent or any Lender under any Loan Document, or of the ability of the Borrowers or any Guarantor to
perform its obligations under any Loan Document to which it is a party; or (C) a material adverse
effect upon the legality, validity, binding effect or enforceability against any Borrower or any
Guarantor of any Loan Document to which it is a party.

          “Material Contract” means each contract of the Specified U.S. Borrower or any of its
Subsidiaries relating to any material portion of the Accounts constituting Collateral.

 

46

          “Material Foreign Subsidiary” has the meaning specified in Section 6.12(d).

          “Material Real Estate” means any parcel of real property that is fee owned by a U.S.
Loan Party, other than any parcel of real property (i) for which the greater of the cost and the
book value is less than $2,000,000, or (ii) which property is subject to a Lien permitted by
Section 7.01(q) which prohibits the granting of a Lien to the Collateral Agent.

          “March 10-Q” means Holdings’ quarterly report on Form 10-Q filed with the SEC on May
9, 2008.

          “Maturity Date” means, with respect to each of the U.S. Revolving Credit Facility and
the Canadian Revolving Credit Facility, the fifth anniversary of the Closing Date;
provided, however, that if the 2012 Senior Subordinated Notes shall not have been
refinanced in full on or prior to October 15, 2011 with the proceeds of Permitted Subordinated
Indebtedness or a Permitted Equity Issuance, the Maturity Date shall be October 15, 2011;
provided, further, that if such date is not a Business Day, the Maturity Date shall
be the next preceding Business Day.

          “Measurement Period” means, at any date of determination, the most recently completed
four fiscal quarters of the Specified U.S. Borrower.

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

          “Mortgage” has the meaning specified in Section 4.01(a)(vi).

          “Mortgage Policy” has the meaning specified in Section 4.01(a)(vi)(B).

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

          “NOLV Percentage” means the net orderly liquidation value of Inventory, expressed as a
percentage, expected to be realized at an orderly, negotiated sale held within a reasonable period
of time, net of all liquidation expenses, as determined from the most recent appraisal of the Loan
Parties’ Inventory performed by an appraiser and on terms satisfactory to the Agents.

          “Noteholder Priority Collateral” means the “Noteholder Collateral” (as defined in the
Intercreditor Agreement).

          “Note” means a Revolving Credit Note.

          “NPL” means the National Priorities List under CERCLA.

 

47

          “Obligations” means the U.S. Obligations and the Canadian Obligations.

          “OFAC” has the meaning specified in Section 5.23(b)(v).

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

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

          “Outstanding Amount” means (a) with respect to Revolving Credit Loans and Swing Line
Loans on any date, the Dollar Equivalent amount of the aggregate outstanding principal amount
thereof after giving effect to any borrowings and prepayments or repayments of Revolving Credit
Loans and Swing Line Loans, as the case may be, occurring on such date; and (b) with respect to any
L/C Obligations on any date, the Dollar Equivalent amount of such L/C Obligations on such date
after giving effect to any L/C Credit Extension occurring on such date and any other changes in the
aggregate amount of the L/C Obligations as of such date, including as a result of any
reimbursements by a Borrower of Unreimbursed Amounts. Notwithstanding the foregoing, at the time
of any Canadian Revolving Credit Borrowing, any issuance of Canadian Letters of Credit, any
Canadian L/C Borrowing or any conversion or continuation of a Canadian Loan if (a) such Borrowing,
issuance, conversion or continuation is for a Loan or Letter of Credit denominated in Canadian
dollars or (b) there are any outstanding Canadian Loans or Canadian Letters of Credit denominated
in Canadian dollars, the Administrative Agent shall calculate the Outstanding Amount based on the
Dollar Equivalent on the date of such Borrowing, conversion or continuation to determine whether
such Borrowing complies with the proviso to the first sentences of Sections 2.01(a),
(b), (c) or (d) or Sections 2.04(A)(a) or (B)(a).

          “Overadvance” means a U.S. Overadvance and/or a Canadian Overadvance, as the context
may require.

          “Overadvance Loan” means a U.S. Overadvance Loan and/or a Canadian Overadvance Loan,
as the context may require.

 

48

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

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

          “Payment Item” means each check, draft or other item of payment payable to a Loan
Party, including those constituting proceeds of any Collateral.

          “PBGC” means the Pension Benefit Guaranty Corporation (or any successor).

          “Pension Plan” means any “employee pension benefit plan” (as such term is defined in
Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and
is sponsored or maintained by any Borrower or any ERISA Affiliate or to which any 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 time
during the immediately preceding five plan years. For greater certainty, “Pension Plan” does not
include any Canadian Pension Plan.

          “Perfection Certificate” shall mean certificates in the form of Exhibit L or
any other form approved by the Administrative Agent, as the same shall be supplemented from time to
time by a Perfection Certificate Supplement or otherwise.

          “Perfection Certificate Supplement” shall mean a perfection certificate supplement in
form and substance reasonably satisfactory to the Administrative Agent.

          “Permitted Acquired Debt” has the meaning specified in Section 7.03(r).

          “Permitted Acquisition” has the meaning specified in Section 7.02(h).

          “Permitted Encumbrances” has the meaning specified in the Mortgages.

          “Permitted Equity Issuance” means any sale or issuance of any Equity Interests (other
than Disqualified Equity Interests) of the Specified U.S. Borrower (or capital contributions in
respect thereof).

          “Permitted Refinancing” means, with respect to any Person, any modification,
refinancing, refunding, renewal or extension of any Indebtedness of such Person; provided
that (a) the principal amount (or accreted value, if applicable) thereof does not exceed the
principal amount (or accreted value, if applicable) of the

 

49

Indebtedness so modified, refinanced, refunded, renewed or extended except by an amount equal
to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred,
in connection with such modification, refinancing, refunding, renewal or extension and by an amount
equal to any existing commitments unutilized thereunder (to the extent such commitments could be
drawn at the time of such refinancing in compliance with this Agreement) or as otherwise permitted
pursuant to Section 7.03, (b) such modification, refinancing, refunding, renewal or
extension has (i) a final maturity date equal to or later than the final maturity date of, and has
a Weighted Average Life to Maturity equal to or greater than the Weighted Average Life to Maturity
of, the Indebtedness being modified, refinanced, refunded, renewed or extended, (c) if the
Indebtedness being modified, re-financed, refunded, renewed or extended is subordinated in right of
payment to the Obligations, such modification, refinancing, refunding, renewal or extension is
subordinated in right of payment to the Obligations on terms at least as favorable to the Lenders
as those contained in the documentation governing the Indebtedness being modified, refinanced,
refunded, renewed or extended, (d) the terms and conditions (including, if applicable, as to
collateral) of any such modified, refinanced, refunded, renewed or extended Indebtedness are not
materially, taken as a whole, less favorable to the Loan Parties or the Lenders than the terms and
conditions of the Indebtedness being modified, refinanced, refunded, renewed or extended or are on
market terms for similar issuances at the time of such modification, refinancing, refunding,
renewal or extension, (e) such modification, refinancing, refunding, renewal or extension is
incurred and/or guaranteed by only the Persons who are the obligors on the Indebtedness being
modified, refinanced, refunded, renewed or extended, and (f) at the time thereof, no Default shall
have occurred and be continuing.

          “Permitted Seller Notes” has the meaning specified in Section 7.03(r).

          “Permitted Subordinated Indebtedness” means any unsecured Indebtedness of the
Specified U.S. Borrower that (a) is expressly subordinated to the prior payment in full in cash of
the Obligations on terms and conditions no less favorable to the Lenders than the terms and
conditions of the 2012 Senior Subordinated Notes, (b) will not mature prior to the date that is six
months after the Maturity Date, (c) has no scheduled amortization or payments of principal prior to
the Maturity Date and (d) has covenant, default and remedy provisions no more restrictive, or
mandatory prepayment, repurchase or redemption provisions no more onerous or expansive in scope
than those contained in the 2012 Senior Subordinated Notes Indenture, taken as a whole;
provided any such Indebtedness shall constitute Permitted Subordinated Indebtedness only if
both before and after giving effect to the issuance or incurrence thereof, no Default or Event of
Default shall have occurred and be continuing.

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

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

 

50

For greater certainty, “Plan” does not include any Canadian Benefit Plan or Canadian Pension
Plan.

          “Platform” has the meaning specified in Section 6.02.

          “Pledged Debt” means any pledged “Pledged Debt” defined in any Security Agreement and
all other indebtedness from time to time owed to the Loan Parties (including, without limitation,
all promissory notes or instruments, if any, evidencing such indebtedness) and required to be
pledged by the Loan Parties pursuant to the Loan Documents.

          “Pledged Equity” means any pledged “Pledged Stock” defined in any Security Agreement
and all other Equity Interests from time to time acquired, owned or held by the Loan Parties
(including, without limitation, the certificates, if any, representing such Equity Interests) and
required to be pledged by the Loan Parties pursuant to the Loan Documents.

          “PPSA” means the Personal Property Security Act of Alberta; provided that, if
perfection or the effect of perfection or non-perfection or the priority of any security interest
in any Collateral is governed by the PPSA as in effect in a Canadian jurisdiction other than
Alberta, or the Civil Code of Quebec, “PPSA” means the Personal Property Security Act as in effect
from time to time in such other jurisdiction or the Civil Code of Quebec, as applicable, for
purposes of the provisions hereof relating to such perfection, effect of perfection or
non-perfection or priority.

          “Preferred Stock” means, with respect to any Person, any and all preferred or
preference stock or other equity interests (however designated) of such Person whether now
outstanding or issued after the Closing Date.

          “Pro Forma Cost Savings” means, with respect to any Measurement Period, the reductions
in costs that occurred during such Measurement Period that are (a) directly attributable to an
asset acquisition and calculated on a basis that is consistent with Article 11 of Regulation S-X
under the Securities Act of 1933, as amended, or (b) implemented, committed to be implemented or
the commencement of implementation of which has begun in good faith by the business that was the
subject of any such asset acquisition within six months of the date of the asset acquisition and
that are supportable and quantifiable by the underlying records of such business, as if, in the
case of each of clauses (a) and (b), all such reductions in costs had been effected as of the
beginning of such period, decreased by any incremental expenses incurred or to be incurred during
the Measurement Period in order to achieve such reduction in costs.

          “Protective Advance” has the meaning specified in Section 2.01(h).

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

          “Qualified Equity Interests” means any Equity Interests other than Disqualified Equity
Interests; provided that such Equity Interests shall not be deemed Qualified Equity
Interests to the extent sold or owed to a Subsidiary of the Specified U.S.

 

51

Borrower or financed, directly or indirectly, using funds (a) borrowed from the Specified U.S.
Borrower or any Subsidiary of the Specified U.S. Borrower until and to the extent such borrowing
is repaid or (b) contributed, extended, guaranteed or advanced by the Specified U.S. Borrower or
any Subsidiary of the Specified U.S. Borrower (including, without limitation, in respect of any
employee stock ownership or benefit plan).

          “Qualifying IPO” means the issuance by Holdings or any parent company that directly or
indirectly holds 100% of the issued and outstanding Equity Interests of Holdings of its common
Equity Interests in an underwritten primary public offering (other than a public offering pursuant
to a registration statement on Form S-8) pursuant to an effective registration statement filed with
the SEC in accordance with the Securities Act (whether alone or in connection with a secondary
public offering) that results in the sale or distribution of at least 15% of the total issued and
outstanding common Equity Interests of Holdings or such parent company.

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

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

          “Release” means disposing, discharging, injecting, spilling, leaking, leaching,
dumping, emitting, escaping, seeping, or placing into the environment.

          “Rent and Charges Reserve” means (a) with respect to the U.S. Borrowing Base, the
aggregate of (i) all past due rent and other amounts owing by a U.S. Loan Party to any landlord,
warehouseman, processor, repairman, mechanic, shipper, freight forwarder, broker or other Person
who possesses any Eligible Inventory or could assert a Lien on any Eligible Inventory and (ii) a
reserve equal to two months rent that could be payable to any such Person, unless it has executed a
Lien Waiver and (b) with respect to the Canadian Borrowing Base, the aggregate of (i) all past due
rent and other amounts owing by a Canadian Loan Party to any landlord, warehouseman, processor,
repairman, mechanic, shipper, freight forwarder, broker or other Person who possesses any Eligible
Inventory or could assert a Lien on any Eligible Inventory and (ii) a reserve equal to two months
rent that could be payable to any such Person, unless it has executed a Lien Waiver.

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

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

          “Required Audit and Appraisal” means the Agents’ Collateral due diligence review,
including, without limitation, completion of the borrowing base field audit and the inventory
appraisal in respect of the ABL Priority Collateral and the

 

52

Canadian Collateral and completion of the review of the cash management and accounting
systems, policies and procedures of the Specified U.S. Borrower and its Subsidiaries, with results
reasonably satisfactory to the Agents.

          “Required Canadian Lenders” means, as of any date of determination, Lenders holding
more than 50% of the sum of the (a) Total Canadian Outstandings (with the aggregate amount of each
Canadian Revolving Credit Lender’s risk participation and funded participation in Canadian L/C
Obligations and Canadian Swing Line Loans being deemed “held” by such Appropriate Lender for
purposes of this definition) and (b) aggregate unused Canadian Revolving Credit Commitments;
provided that the unused Canadian Revolving Credit Commitment of, and the portion of the
Total Canadian Outstandings held or deemed held by, any Defaulting Lender shall be excluded for
purposes of making a determination of Required Canadian Lenders.

          “Required Lenders” means, as of any date of determination, Lenders holding more than
50% of the sum of the (a) Total Outstandings (with the aggregate amount of each Revolving Credit
Lender’s risk participation and funded participation in L/C Obligations and Swing Line Loans being
deemed “held” by such Appropriate Lender for purposes of this definition) and (b) aggregate unused
Revolving Credit Commitments; provided that the unused Revolving Credit Commitment of, and
the portion of the Total Outstandings held or deemed held by, any Defaulting Lender shall be
excluded for purposes of making a determination of Required Lenders.

          “Required U.S. Lenders” means, as of any date of determination, Lenders holding more
than 50% of the sum of the (a) Total U.S. Outstandings (with the aggregate amount of each U.S.
Revolving Credit Lender’s risk participation and funded participation in U.S. L/C Obligations and
U.S. Swing Line Loans being deemed “held” by such Appropriate Lender for purposes of this
definition) and (b) aggregate unused U.S. Revolving Credit Commitments; provided that the
unused U.S. Revolving Credit Commitment of, and the portion of the Total U.S. Outstandings held or
deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of
Required U.S. Lenders.

          “Responsible Officer” means the chief executive officer, president, vice president,
chief financial officer, treasurer, assistant treasurer or controller of a Loan Party. Any
document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be
conclusively presumed to have been authorized by all necessary corporate, partnership and/or other
action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed
to have acted on behalf of such Loan Party.

          “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any capital stock or other Equity Interest of any
Person or any of its Subsidiaries, or any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase, redemption, retirement,
defeasance, acquisition, cancellation or termination of any such capital stock or other Equity
Interest, or on account of any return of capital to

 

53

any Person’s stockholders, partners or members (or the equivalent of any thereof), or any
option, warrant or other right to acquire any such dividend or other distribution or payment.

          “Restructuring Expenses” means expenses and charges incurred in connection with
restructuring within the Specified U.S. Borrower and/or one or more of its Subsidiaries, including
in connection with integration of acquired businesses or Persons, disposition of one or more
Subsidiaries or businesses, exiting of one or more lines of businesses and relocation or
consolidation of facilities, including severance, lease termination and other non-ordinary-course,
non-operating costs and expenses in connection therewith.

          “Revolving Credit Borrowing” means a U.S. Revolving Credit Borrowing and/or a Canadian
Revolving Credit Borrowing, as the context may require.

          “Revolving Credit Commitment” means a U.S. Revolving Credit Commitment and/or a
Canadian Revolving Credit Commitment, as the context may require.

          “Revolving Credit Facility” means the U.S. Revolving Credit Facility and/or the
Canadian Revolving Credit Facility, as the context may require.

          “Revolving Credit Lender” means a U.S. Appropriate Lender and/or a Canadian Revolving
Credit Lender, as the context may require.

          “Revolving Credit Loan” has a U.S. Revolving Credit Loan and/or a Canadian Revolving
Credit Loan, as the context may require.

          “Revolving Credit Note” means a U.S. Revolving Credit Note and/or a Canadian Revolving
Credit Note, as the context may require.

          “Royalties” means all royalties, fees, expense reimbursement and other amounts payable
by a Loan Party under a License.

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

          “Sale-Leaseback Documents” shall mean the Deed of Lease Agreement, by and among GP
(MULTI) L.P., a Delaware limited partnership as Landlord, and Ply Gem Industries, Inc., MWM
Holding, Inc., Great Lakes Window, Inc., MWM Manufacturers Inc., Napco Window Systems, Inc., Kroy
Building Products, Inc., Napco, Inc., Thermal-Gard, Inc., as Tenant, dated as of August 27, 2004
and the Lease Agreement by and between PG-NOM (ALBERTA) INC., an Alberta corporation, as nominee
for PG-TRUST (DE), a trust formed under the laws of the State of Delaware, as Landlord and CWD
Windows and Doors, Inc., as Tenant, dated as of August 27, 2004.

          “Sale-Leaseback Properties” shall mean the owned real properties listed on Schedule
1.01(a).

 

54

          “Sale-Leaseback Transaction” shall mean the Sale and Leaseback of the Sale-Leaseback
Properties pursuant to the Sale-Leaseback Documents.]

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

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

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

          “Secured Parties” means the U.S. Secured Parties and the Canadian Secured Parties.

          “Security Agreement” means the U.S. Security Agreement and/or the Canadian Security
Agreement, as the context may require.

          “Security Agreement Supplement” means a supplement delivered in connection with any
Security Agreement, in each case in form and substance reasonably satisfactory to the
Administrative Agent.

          “Securities Account Control Agreements” has the meaning specified in the U.S. Security
Agreement and/or the Canadian Security Agreement, as the context may require.

          “Senior Secured Notes” means the senior secured notes of the Specified U.S. Borrower
in an aggregate principal amount of up to $700,000,000 issued and sold on the Closing Date pursuant
to the Senior Secured Notes Documents and any exchange notes issued in exchange therefor, in each
case, pursuant to the Senior Secured Notes Indenture.

          “Senior Secured Notes Documents” means the Senior Secured Notes Indenture, the
Purchase Agreement dated as of June 2, 2008 among the Specified U.S. Borrower, the Initial
Purchasers (as defined therein) and the guarantors party thereto, the Senior Secured Notes and all
other agreements, instruments and other documents pursuant to which the Senior Secured Notes have
been or will be issued or otherwise setting forth the terms of the Senior Secured Notes.

          “Senior Secured Notes Indenture” means the Indenture, dated as of the date hereof,
among the Specified U.S. Borrower, as “Issuer” and U.S. Bank National Association, as Trustee.

          “Solvent” and “Solvency” mean, with respect to any Person on any date of
determination, that on such date (a) the fair value of the property of such Person is greater than
the total amount of liabilities, including contingent liabilities, of such Person, (b) the present
fair salable value of the assets of such Person is not less than the amount that will

 

55

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

          “Specified U.S. Borrower” has the meaning specified in the introductory paragraph
hereto.

          “Sponsor” means Caxton-Iseman Capital, Inc. and its Controlled Affiliates.

          “Statutory Reserves” means a fraction (expressed as a decimal), the numerator of which
is the number one and the denominator of which is the number one minus the aggregate of the maximum
reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed
as a decimal established by the Board of Governors of the Federal Reserve System of the United
States (the “Board”) and any other banking authority, domestic or foreign, to which Credit
Suisse or any Lender (including any branch, Affiliate or other fronting office making or holding a
Loan) is subject for Eurocurrency Liabilities (as defined in Regulation D of the Board).
Eurodollar Rate Loans shall be deemed to constitute Eurocurrency Liabilities (as defined in
Regulation D of the Board) and to be subject to such reserve requirements without benefit of or
credit for proration, exemptions or offsets that may be available from time to time to any Lender
under such Regulation D. Statutory Reserves shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.

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

          “Supermajority Lenders” means, as of any date of determination, Lenders holding more
than 66 2/3% of the sum of the (a) Total Outstandings (with the aggregate amount of each Revolving
Credit Lender’s risk participation and funded participation in L/C Obligations and Swing Line Loans
being deemed “held” by such Appropriate Lender for purposes of this definition) and (b) aggregate
unused Revolving Credit Commitments; provided that the unused Revolving Credit Commitment
of, and the portion of the Total

 

56

Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of
making a determination of Required Lenders.

          “Supplemental Collateral Agent” has the meaning specified in Section 9.05(a).

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

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

          “Swing Line Borrowing” means a U.S. Swing Line Borrowing and/or a Canadian Swing Line
Borrowing, as the context may require.

          “Swing Line Lender” means the U.S. Swing Line Lender and/or the Canadian Swing Line
Lender, as the context may require.

          “Swing Line Loan” means a U.S. Swing Line Loan and/or a Canadian Swing Line Loan, as
the context may require.

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

          “Swing Line Sublimit” means the U.S. Swing Line Sublimit and/or the Canadian Swing
Line Sublimit, as the context may require.

 

57

          “Synthetic Debt” means, with respect to any Person as of any date of determination
thereof, all obligations of such Person in respect of transactions entered into by such Person that
are intended to function primarily as a borrowing of funds (including any minority interest
transactions that function primarily as a borrowing) but are not otherwise included in the
definition of “Indebtedness” or as a liability on the consolidated balance sheet of such
Person and its Subsidiaries in accordance with GAAP.

          “Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a
so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or
possession of property (including sale and leaseback transactions), in each case, creating
obligations that do not appear on the balance sheet of such Person but which, upon the application
of any Debtor Relief Laws to such Person, would be characterized as the indebtedness of such Person
(without regard to accounting treatment).

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

          “Threshold Amount” means $15,000,000.

          “Total Borrowing Base” means the sum of the U.S. Borrowing Base and the Canadian
Borrowing Base; provided that, notwithstanding anything herein to the contrary, until the
Borrowing Base Condition has been satisfied, the Total Borrowing Base shall be deemed to be
$75,000,000.

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

          “Total Canadian Revolving Credit Outstandings” means the aggregate Outstanding Amount
of all Canadian Revolving Credit Loans, Canadian Swing Line Loans and Canadian L/C Obligations.

          “Total Revolving Credit Outstandings” means the aggregate Outstanding Amount of all
Revolving Credit Loans, Swing Line Loans and L/C Obligations.

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

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

          “Total U.S. Revolving Credit Outstandings” means the aggregate Outstanding Amount of
all U.S. Revolving Credit Loans, U.S. Swing Line Loans and U.S. L/C Obligations.

 

58

          “Transaction” means, collectively, (a) the issuance and sale of the Senior Secured
Notes, (b) the entering into and performance by the U.S. Loan Parties and their applicable
Subsidiaries of the Loan Documents and the Senior Secured Notes Documents to which they are or are
intended to be a party, (c) the refinancing of certain outstanding Indebtedness of the Specified
U.S. Borrower and its Subsidiaries and the termination of all commitments with respect thereto and
(d) the payment of the fees and expenses incurred in connection with the consummation of the
foregoing.

          “Trustee” means U.S. Bank National Association, in its capacity as trustee under the
Senior Secured Notes Indenture.

          “Tuck-in Acquisitions” means one or more acquisitions made pursuant to Section
7.02(h) with aggregate consideration for all such acquisitions not to exceed $15,000,000.

          “Type” means, with respect to a Loan, its character as a Base Rate Loan, Canadian Base
Rate Loan, Canadian Prime Rate Loan, BA Rate Loan or a Eurodollar Rate Loan.

          “UCC” means the Uniform Commercial Code as in effect in the State of New York;
provided that, if perfection or the effect of perfection or non-perfection or the priority
of any security interest in any Collateral is governed by the Uniform Commercial Code as in effect
in a jurisdiction other than the State of New York, “UCC” means the Uniform Commercial Code
as in effect from time to time in such other jurisdiction for purposes of the provisions hereof
relating to such perfection, effect of perfection or non-perfection or priority.

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

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

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

          “U.S. Borrowers” means the Specified U.S. Borrower and each Domestic Subsidiary that
becomes a “Guarantor” hereunder after the Closing Date.

          “U.S. Borrowing Base” means, on any date of determination, an amount (calculated based
on the most recent Borrowing Base Certificate delivered to the Agents in accordance with this
Agreement) equal to

          (a) the sum of

     (i) 85% of the value of the Eligible Receivables of the U.S. Loan Parties, and

 

59

     (ii) 85% of the NOLV Percentage of the value of the Eligible Inventory of the
U.S. Loan Parties,

minus

          (b) the Availability Reserve to the extent attributable to the U.S. Loan Parties in
the Agents’ Credit Judgment on such date, provided that, after the Closing Date,
the Agents may adjust the apportionment of the Availability Reserve between the U.S.
Revolving Credit Facility and the Canadian Revolving Credit Facility in their Credit
Judgment;

provided, further that, notwithstanding anything herein to the contrary, (i) until
the Borrowing Base Condition has been satisfied, the U.S. Borrowing Base shall be deemed to be
$75,000,000 and (ii) for purposes of calculating Excess Availability on the Closing Date, the U.S.
Borrowing Base shall be deemed to be $60,000,000 and Total Borrowing Base shall be deemed to be
$75,000,000.

          “U.S. Cash Management Bank” means any Person that, at the time it enters into a Cash
Management Agreement, is an Agent, a U.S. Lender or an Affiliate of an Agent or a U.S. Lender, in
its capacity as a party to such Cash Management Agreement, in each case in respect of services
provided under such Cash Management Agreement to a U.S. Loan Party.

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

          “U.S. Collateral Documents” means, collectively, the U.S. Security Agreement, the U.S.
Intellectual Property Security Agreement, the U.S. Mortgages, the U.S. Account Control Agreements,
each of the mortgages, collateral assignments, Security Agreement Supplements, IP Security
Agreement Supplements, security agreements, pledge agreements or other similar agreements delivered
to the Collateral Agent pursuant to Section 6.12, and each of the other agreements,
instruments or documents that creates or purports to create a Lien in favor of the Collateral Agent
for the benefit of the U.S. Secured Parties.

          “U.S. Excess Availability” means, at any time, the difference between (a) the lesser
of (i) (A) the U.S. Revolving Credit Facility and (ii) the U.S. Borrowing Base at such time, as
determined from the most recent Borrowing Base Certificate delivered by the Borrower Agent to the
Agents pursuant to Section 6.01(e) hereof minus (b) the Total U.S. Revolving Credit
Outstandings.

          “U.S. Guaranty” means, collectively, the Guarantees made by the Specified U.S.
Borrower and the U.S. Subsidiary Guarantors in favor of the U.S. Secured Parties, substantially in
the form of Exhibit F, together with each other guaranty and guaranty supplement delivered
pursuant to Section 6.12.

 

60

          “U.S. Intellectual Property Security Agreement” has the meaning specified in
Section 4.01(a)(vii).

          “U.S. L/C Advance” means, with respect to each U.S. Revolving Credit Lender, such
Lender’s funding of its participation in any U.S. L/C Borrowing in accordance with its Applicable
Percentage.

          “U.S. L/C Borrowing” means an extension of credit resulting from a drawing under any
U.S. Letter of Credit which has not been reimbursed on the date when made or refinanced as a U.S.
Revolving Credit Borrowing.

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

          “U.S. L/C Issuer” means Credit Suisse in its capacity as issuer of U.S. Letters of
Credit hereunder, or any successor issuer of U.S. Letters of Credit hereunder and, with respect to
each Existing Letter of Credit, UBS AG, Stamford Branch, in its capacity as the issuer thereof.

          “U.S. L/C Obligations” means, as at any date of determination, the aggregate amount
available to be drawn under all outstanding U.S. Letters of Credit plus the aggregate of all
Unreimbursed Amounts, including all U.S. L/C Borrowings. For purposes of computing the amount
available to be drawn under any U.S. Letter of Credit, the amount of such Letter of Credit shall be
determined in accordance with Section 1.06. For all purposes of this Agreement, if on any
date of determination a U.S. Letter of Credit has expired by its terms but any amount may still be
drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be
deemed to be “outstanding” in the amount so remaining available to be drawn.

          “U.S. Lender” means each financial institution listed on Schedule 2.01 as a
“U.S. Revolving Credit Lender”, as well as any Person that becomes a “U.S. Revolving Credit Lender”
hereunder pursuant to Section 10.06 and, as the context requires, includes the U.S. Swing
Line Lender.

          “U.S. Letter of Credit” means any standby letter of credit issued hereunder and shall
include the Existing Letters of Credit. A U.S. Letter of Credit may be a commercial letter of
credit or a standby letter of credit.

          “U.S. Letter of Credit Sublimit” means an amount equal to $13,500,000. The U.S.
Letter of Credit Sublimit is part of, and not in addition to, the U.S. Revolving Credit Facility.

          “U.S. Loan” means an extension of credit by a Lender to the Specified U.S. Borrower
under Article II in the form of a U.S. Revolving Credit Loan or a U.S. Swing Line Loan.

 

61

          “U.S. Loan Documents” means, collectively, (a) this Agreement, (b) the U.S. Revolving
Credit Notes, (c) the U.S. Guaranty, (d) the U.S. Collateral Documents, (e) the Intercreditor
Agreement, (f) the Fee Letter and (g) each Issuer Document with respect to a U.S. Letter of Credit.

          “U.S. Loan Party” means any Loan Party that is organized under the laws of one of the
states of the United States of America and that is not a CFC.

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

          “U.S. Overadvance” has the meaning specified in Section 2.01(f).

          “U.S. Overadvance Loan” means a U.S. Revolving Credit Loan made when an Overadvance
exists or is caused by the funding thereof.

          “U.S. Payment Account” means the account of the Collateral Agent to which all monies
constituting proceeds of U.S. Collateral shall be transferred from time to time.

          “U.S. Revolving Credit Borrowing” means a borrowing consisting of simultaneous U.S.
Revolving Credit Loans of the same Type and, in the case of Eurodollar Rate Loans, having the same
Interest Period made by each of the U.S. Revolving Credit Lenders pursuant to Section
2.01(a) and shall be deemed to include any U.S. Overadvance Loan and U.S. Protective Advance
made hereunder.

          “U.S. Revolving Credit Commitment” means, as to each U.S. Revolving Credit Lender, its
obligation to (a) make U.S. Revolving Credit Loans to the Specified U.S. Borrower pursuant to
Section 2.01(a), (b) purchase participations in U.S. L/C Obligations, and (c) purchase
participations in U.S. Swing Line Loans, in an aggregate principal amount at any one time
outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 2.01
under the caption “U.S. Revolving Credit Commitment” or opposite such caption in the Assignment and
Assumption pursuant to which such Lender becomes a party hereto, as applicable, as such amount may
be adjusted from time to time in accordance with this Agreement, including Section 2.16;
provided, that at any time that that Total Canadian Revolving Credit Outstandings exceed
100% of the Canadian Revolving Credit Commitments, the U.S. Revolving Credit Commitments shall be
temporarily reduced by the amount of such excess until such excess is reduced to zero.

 

62

          “U.S. Revolving Credit Exposure” means, with respect to any U.S. Appropriate Lender at
any time, the Outstanding Amount of such Lender’s U.S. Revolving Credit Loans plus such Lender’s
Applicable Percentage of the Outstanding Amount of U.S. L/C Obligations with respect to U.S.
Letters of Credit plus such Lender’s Applicable Percentage of the Outstanding Amount of U.S. Swing
Line Loans.

          “U.S. Revolving Credit Facility” means, at any time, the aggregate amount of the U.S.
Revolving Credit Lenders’ U.S. Revolving Credit Commitments at such time.

          “U.S. Revolving Credit Lender” means, at any time, any Lender that has a U.S.
Revolving Credit Commitment at such time.

          “U.S. Revolving Credit Loan” has the meaning specified in Section 2.01(a) and
shall be deemed to include any U.S. Overadvance Loan and U.S. Protective Advance made hereunder.

          “U.S. Revolving Credit Note” means a promissory note made by the Specified U.S.
Borrower in favor of a U.S. Appropriate Lender evidencing U.S. Revolving Credit Loans or U.S. Swing
Line Loans, as the case may be, made by such U.S. Revolving Credit Lender, substantially in the
form of Exhibit C-1.

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

          “U.S. Secured Hedge Agreement” means any Secured Hedge Agreement that is entered into
by and between any U.S. Loan Party and any Hedge Bank.

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

          “U.S. Security Agreement” means the U.S. Security Agreement substantially in the form
of Exhibit G-1 (together with each other security agreement and security agreement
supplement delivered pursuant to Section 6.12 in respect of the U.S. Collateral, in each
case as amended).

          “U.S. Subsidiary Guarantor” means each Domestic Subsidiary (other than the Specified
U.S. Borrower and any Excluded Subsidiary) and each Person that shall, at any time after the date
hereof, become a Domestic Subsidiary.

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

 

63

          “U.S. Swing Line Lender” means Credit Suisse in its capacity as provider of U.S. Swing
Line Loans, or any successor swing line lender hereunder.

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

          “U.S. Swing Line Sublimit” means an amount equal to the lesser of (a) $13,500,000 and
(b) the U.S. Revolving Credit Facility. The U.S. Swing Line Sublimit is part of, and not in
addition to, the U.S. Revolving Credit Facility.

          “U.S. Unfunded Advances/Participations” shall mean (a) with respect to the
Administrative Agent, the aggregate amount, if any (i) made available to the U.S. Borrowers on the
assumption that each U.S. Lender has made its portion of the applicable Borrowing available to the
Administrative Agent as contemplated by Section 2.12(b) and (ii) with respect to which a
corresponding amount shall not in fact have been returned to the Administrative Agent by the U.S.
Borrowers or made available to the Administrative Agent by any such U.S. Lender, (b) with respect
to the U.S. Swing Line Lender, the aggregate amount, if any, of participations in respect of any
outstanding U.S. Swing Line Loan that shall not have been funded by the U.S. Revolving Credit
Facility Lenders in accordance with Section 2.04(c) and (c) with respect to any U.S. L/C
Issuer, the aggregate amount, if any, of participations in respect of any outstanding U.S. L/C
Borrowing that shall not have been funded by the U.S. Revolving Credit Facility Lenders in
accordance with Sections 2.03(c).

          “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any
date, the number of years obtained by dividing: (i) the sum of the products obtained by
multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or
other required payments of principal, including payment at final maturity, in respect thereof, by
(b) the number of years (calculated to the nearest one-twelfth) that will elapse between such date
and the making of such payment; by (ii) the then outstanding principal amount of such Indebtedness.

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

          (a) The definitions of terms herein shall apply equally to the singular and plural forms of
the terms defined. Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include,” “includes” and
“including” shall be deemed to be followed by the phrase “without limitation.” The word
“will” shall be construed to have the same meaning and effect as the word “shall.”
Unless the context requires otherwise, (i) any definition of or reference to any agreement,
instrument or other document (including any Organization Document) shall be construed as referring
to such agreement, instrument or other document as from time to time amended, supplemented or
otherwise modified (subject to any restrictions on such amendments, supplements or modifications
set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be
construed to include such Person’s successors and assigns, (iii) the words “herein,”
“hereof” and “hereunder,” and

 

64

words of similar import when used in any Loan Document, shall be construed to refer to such
Loan Document in its entirety and not to any particular provision thereof, (iv) all references in a
Loan Document to Articles, Sections, Preliminary Statements, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Preliminary Statements, Exhibits and Schedules
to, the Loan Document in which such references appear, (v) any reference to any law shall include
all statutory and regulatory provisions consolidating, amending, replacing or interpreting such law
and any reference to any law or regulation shall, unless otherwise specified, refer to such law or
regulation as amended, modified or supplemented from time to time, (vi) the words “asset”
and “property” shall be construed to have the same meaning and effect and to refer to any
and all tangible and intangible assets and properties, including cash, securities, accounts and
contract rights and (vii) any references herein to “ordinary course of business” or “ordinary
course” shall mean the ordinary course of business of the Loan Parties and their respective
Subsidiaries, consistent with past practices and undertaken in good faith.

          (b) All other terms contained in this Agreement shall have, when the context so indicates,
the meanings provided for by the UCC or the PPSA to the extent the same are used or defined
therein. For purposes of any Collateral located in the Province of Québec or charged by any deed
of hypothec (or any other Collateral Document) and for all other purposes pursuant to which the
interpretation or construction of a Collateral Document may be subject to the laws of the Province
of Québec or a court or tribunal exercising jurisdiction in the Province of Québec, (i) “personal
property” shall be deemed to include “movable property,” (ii) “real property” shall be deemed to
include “immovable property” and an “easement” shall be deemed to include a “servitude,” (iii)
”tangible property” shall be deemed to include “corporeal property,” (iv) “intangible property”
shall be deemed to include “incorporeal property,” (v) “security interest” and “mortgage” shall be
deemed to include a “hypothec,” (vi) all references to filing, registering or recording financing
statements or other required documents under the UCC or the PPSA shall be deemed to include
publication under the Civil Code of Quebec, and all references to releasing any Lien shall be
deemed to include a release, discharge and mainlevee of a hypothec, (vii) all references to
“perfection” of or “perfected” Liens shall be deemed to include a reference to the “opposability”
of such Liens to third parties, (viii) any “right of offset,” “right of setoff” or similar
expression shall be deemed to include a “right of compensation”, (ix) “goods” shall be deemed to
include “corporeal movable property” other than chattel paper, documents of title, instruments,
money and securities, and (x) an “agent” shall be deemed to include a “mandatary.”

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

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

          SECTION 1.03. Accounting Terms. (a) Generally. All accounting terms not
specifically or completely defined herein shall be construed in conformity with, and all

 

65

financial data (including financial ratios and other financial calculations) required to be
submitted pursuant to this Agreement shall be prepared in conformity with, GAAP applied on a
consistent basis, as in effect from time to time, applied in a manner consistent with that used in
preparing the Audited Financial Statements, except as otherwise specifically prescribed herein.

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

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

          SECTION 1.05. Times of Day. Unless otherwise specified, all references herein to
times of day shall be references to New York City time (daylight or standard, as applicable).

          SECTION 1.06. Letter of Credit Amounts. Unless otherwise specified herein, the amount
of a Letter of Credit at any time shall be deemed to be the Dollar Equivalent of the stated amount
of such Letter of Credit in effect at such time; provided, however, that with
respect to any Letter of Credit that, by its terms or the terms of any Issuer Document related
thereto, provides for one or more automatic increases in the stated amount thereof, the amount of
such Letter of Credit shall be deemed to be the Dollar Equivalent of the maximum stated amount of
such Letter of Credit after giving effect to all such increases, whether or not such maximum stated
amount is in effect at such time.

          SECTION 1.07. Currency Equivalents Generally. Any amount specified in this Agreement
(other than in Articles II and IX) or any of the other Loan Documents to be in Dollars shall also
include the equivalent of such amount in any currency other than Dollars, such equivalent amount
thereof in the applicable currency to be determined by the Administrative Agent at such time on the
basis of the Spot Rate (as defined below) for the purchase of such currency with Dollars (including
for calculations of Excess Availability). For purposes of this Section 1.07, the “Spot
Rate” for a currency means the rate determined by the Administrative Agent to be the rate quoted by
the Person acting in such capacity as the spot rate for the purchase by such Person of such
currency with another currency through its principal foreign exchange trading office at
approximately 11:00 a.m. on the date two Business Days prior to the date of such determination;
provided that the Administrative Agent may obtain such

 

66

spot rate from another financial institution designated by the Administrative Agent if the
Person acting in such capacity does not have as of the date of determination a spot buying rate for
any such currency.

ARTICLE II

The Commitments and Credit Extensions

          SECTION 2.01. The Loans. (a) U.S. Revolving Credit Borrowings. Subject to
the terms and conditions set forth herein, each U.S. Appropriate Lender severally agrees to make
loans (each such loan, a “U.S. Revolving Credit Loan”) in Dollars to the Specified U.S.
Borrower from time to time, on any Business Day during the Availability Period, in an aggregate
amount not to exceed at any time outstanding the amount of such Lender’s U.S. Revolving Credit
Commitment; provided, however, that after giving effect to any U.S. Revolving
Credit Borrowing, (i) the Total Revolving Credit Outstandings shall not exceed the lesser of (x)
the Revolving Credit Facility and (y) the Total Borrowing Base at such time, (ii) the aggregate
Outstanding Amount of the U.S. Revolving Credit Loans of any Lender, plus such U.S. Revolving
Credit Lender’s Applicable Percentage of the Outstanding Amount of all U.S. L/C Obligations, plus
such U.S. Revolving Credit Lender’s Applicable Percentage of the Outstanding Amount of all U.S.
Swing Line Loans shall not exceed such U.S. Revolving Credit Lender’s U.S. Revolving Credit
Commitment and (iii) the Total U.S. Revolving Credit Outstandings shall not exceed the lesser of
(x) the U.S. Revolving Credit Facility and (y) the U.S. Borrowing Base. Within the limits of each
U.S. Revolving Credit Lender’s U.S. Revolving Credit Commitment, and subject to the other terms and
conditions hereof, the Specified U.S. Borrower may borrow under this Section 2.01(a),
prepay under Section 2.05, and reborrow under this Section 2.01(a). U.S. Revolving
Credit Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein.

          (b) Canadian Revolving Credit Borrowings. Subject to the terms and conditions set
forth herein, each Canadian Appropriate Lender severally agrees to make loans (each such loan, a
“Canadian Revolving Credit Loan”) in Dollars and Canadian Dollars to the Canadian Borrower
from time to time, on any Business Day during the Availability Period, in an aggregate amount not
to exceed at any time outstanding the amount of such Lender’s Canadian Revolving Credit Commitment;
provided, however, that after giving effect to any Canadian Revolving Credit
Borrowing, (i) the Total Revolving Credit Outstandings shall not exceed the lesser of (x) the
Revolving Credit Facility and (y) the Total Borrowing Base at such time, (ii) the aggregate
Outstanding Amount of the Canadian Revolving Credit Loans of any Canadian Lender, plus such
Canadian Revolving Credit Lender’s Applicable Percentage of the Outstanding Amount of all Canadian
L/C Obligations, plus such Canadian Revolving Credit Lender’s Applicable Percentage of the
Outstanding Amount of all Canadian Swing Line Loans shall not exceed such Canadian Revolving Credit
Lender’s Canadian Revolving Credit Commitment and (iii) the Total Canadian Revolving Credit
Outstandings shall not exceed the lesser of (x) the Canadian Revolving Credit Facility and (y) the
Canadian Borrowing Base. Within the limits of each Canadian Revolving Credit Lender’s Canadian
Revolving Credit Commitment, and subject to the other terms and conditions hereof, the Canadian
Borrower may borrow under this Section 2.01(b), prepay under Section 2.05,

 

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and reborrow under this Section 2.01(b). Canadian Revolving Credit Loans denominated
in Dollars may be Canadian Base Rate Loans or Eurodollar Rate Loans, as further provided herein.
Canadian Revolving Credit Loans denominated in Canadian Dollars may be Canadian Prime Rate Loans or
BA Rate Loans, as further provided herein.

          (c) U.S. Letter of Credit Commitment. (i) Subject to the terms and conditions set
forth herein, (A) the U.S. L/C Issuer agrees, in reliance upon the agreements of the U.S. Revolving
Credit Lenders set forth in this Section 2.01(c) and Section 2.03, (1) from time to
time on any Business Day during the period from the Closing Date until the Letter of Credit
Expiration Date, to issue U.S. Letters of Credit for the account of the Specified U.S. Borrower or
its Subsidiaries, and to amend or extend U.S. Letters of Credit previously issued by it, in
accordance with Section 2.03(a), and (2) to honor drawings under the U.S. Letters of
Credit; and (B) the U.S. Revolving Credit Lenders severally agree to participate in U.S. Letters of
Credit issued for the account of the Specified U.S. Borrower or its Subsidiaries and any drawings
thereunder; provided that after giving effect to any U.S. L/C Credit Extension with respect
to any U.S. Letter of Credit, (w) the Total Revolving Credit Outstandings shall not exceed the
lesser of (I) the Revolving Credit Facility and (II) the Total Borrowing Base at such time, (x)
the aggregate Outstanding Amount of the U.S. Revolving Credit Loans of any Lender, plus such U.S.
Revolving Credit Lender’s Applicable Percentage of the Outstanding Amount of all U.S. L/C
Obligations, plus such U.S. Revolving Credit Lender’s Applicable Percentage of the Outstanding
Amount of all U.S. Swing Line Loans shall not exceed such U.S. Revolving Credit Lender’s U.S.
Revolving Credit Commitment, (y) the Total U.S. Revolving Credit Outstandings shall not exceed the
lesser of (I) the U.S. Revolving Credit Facility and (II) the U.S. Borrowing Base, and (z) the
Outstanding Amount of the U.S. L/C Obligations shall not exceed the U.S. Letter of Credit Sublimit.
Each request by the Specified U.S. Borrower for the issuance or amendment of a U.S. Letter of
Credit shall be deemed to be a representation by the Specified U.S. Borrower that the L/C Credit
Extension so requested complies with the conditions set forth in the proviso to the preceding
sentence. Within the foregoing limits, and subject to the terms and conditions hereof, the
Specified U.S. Borrower’s ability to obtain U.S. Letters of Credit shall be fully revolving, and
accordingly the Specified U.S. Borrower may, during the foregoing period, obtain U.S. Letters of
Credit to replace Letters of Credit that have expired or that have been drawn upon and reimbursed.
All Existing Letters of Credit shall be deemed to have been issued pursuant hereto, and from and
after the Closing Date shall be subject to and governed by the terms and conditions hereof. The
U.S. L/C Issuer’s Commitment to issue U.S. Letters of Credits shall automatically terminate on the
earlier to occur of (x) the date of termination of the U.S. Revolving Credit Commitments pursuant
to Section 2.06, and (y) the date 30 days prior to the Maturity Date.

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

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

 

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     (B) the expiry date of such requested Letter of Credit would occur after the
Letter of Credit Expiration Date.

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

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

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

     (C) such Letter of Credit is to be denominated in a currency other than
Dollars; or

     (D) a default of any U.S. Revolving Credit Lender’s obligations to fund under
Section 2.03(b) exists or any U.S. Appropriate Lender is at such time a
Defaulting Lender hereunder, unless the U.S. L/C Issuer has entered into reasonably
satisfactory arrangements with the Specified U.S. Borrower or such Lender to
eliminate the U.S. L/C Issuer’s risk with respect to such Lender.

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

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

          (vi) The U.S. L/C Issuer shall act on behalf of the U.S. Revolving Credit Lenders with respect
to any Letters of Credit issued by it and the documents associated therewith, and the U.S. L/C
Issuer shall have all of the benefits and immunities (A) provided to the Administrative Agent in
Article IX with respect to any acts taken or omissions suffered by the U.S. L/C Issuer in
connection with Letters of Credit issued by it or proposed to be issued by it and Issuer Documents
pertaining to such Letters of Credit

 

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as fully as if the term “Administrative Agent” as used in Article IX included the U.S.
L/C Issuer with respect to such acts or omissions, and (B) as additionally provided herein with
respect to the U.S. L/C Issuer.

          (d) Canadian Letter of Credit Commitment. (i) Subject to the terms and conditions
set forth herein, (A) the Canadian L/C Issuer agrees, in reliance upon the agreements of the
Canadian Revolving Credit Lenders set forth in this Section 2.01(d) and Section
2.03, (1) from time to time on any Business Day during the period from the Closing Date until
the Letter of Credit Expiration Date, to issue Canadian Letters of Credit for the account of the
Canadian Borrower or any of its Canadian Subsidiaries, and to amend or extend Canadian Letters of
Credit previously issued by it, in accordance with Section 2.03(a), and (2) to honor
drawings under the Canadian Letters of Credit; and (B) the Canadian Revolving Credit Lenders
severally agree to participate in Canadian Letters of Credit issued for the account of the Canadian
Borrower or any of its Canadian Subsidiaries and any drawings thereunder; provided that
after giving effect to any Canadian L/C Credit Extension with respect to any Canadian Letter of
Credit, (w) the Total Revolving Credit Outstandings shall not exceed the lesser of (I) the
Revolving Credit Facility and (II) the Total Borrowing Base at such time, (x) the aggregate
Outstanding Amount of the Canadian Revolving Credit Loans of any Canadian Revolving Credit Lender,
plus such Canadian Revolving Credit Lender’s Applicable Percentage of the Outstanding Amount of all
Canadian L/C Obligations, plus such Canadian Revolving Credit Lender’s Applicable Percentage of the
Outstanding Amount of all Canadian Swing Line Loans shall not exceed such Canadian Revolving Credit
Lender’s Canadian Revolving Credit Commitment, (y) the Total Canadian Revolving Credit Outstandings
shall not exceed the lesser of (I) the Canadian Revolving Credit Facility and (II) the Canadian
Borrowing Base, and (z) the Outstanding Amount of the Canadian L/C Obligations shall not exceed the
Canadian Letter of Credit Sublimit. Each request by the Canadian Borrower for the issuance or
amendment of a Canadian Letter of Credit shall be deemed to be a representation by the Canadian
Borrower that the L/C Credit Extension so requested complies with the conditions set forth in the
proviso to the preceding sentence. Within the foregoing limits, and subject to the terms and
conditions hereof, the Canadian Borrower’s ability to obtain Canadian Letters of Credit shall be
fully revolving, and accordingly the Canadian Borrower may, during the foregoing period, obtain
Canadian Letters of Credit to replace Letters of Credit that have expired or that have been drawn
upon and reimbursed. The Canadian L/C Issuer’s Commitment to issue Canadian Letters of Credits
shall automatically terminate on the earlier to occur of (x) the date of termination of the
Canadian Revolving Credit Commitments pursuant to Section 2.06, and (y) the date 30 days
prior to the Maturity Date.

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

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

 

70

     (B) the expiry date of such requested Letter of Credit would occur after the
Letter of Credit Expiration Date.

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

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

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

     (C) such Letter of Credit is to be denominated in a currency other than
Dollars or Canadian Dollars; or

     (D) a default of any Canadian Revolving Credit Lender’s obligations to fund
under Section 2.03(b) exists or any Canadian Appropriate Lender is at such
time a Defaulting Lender hereunder, unless the Canadian L/C Issuer has entered into
reasonably satisfactory arrangements with the Canadian Borrower or such Lender to
eliminate the Canadian L/C Issuer’s risk with respect to such Lender.

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

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

          (e) The Canadian L/C Issuer shall act on behalf of the Canadian Revolving Credit Lenders with
respect to any Letters of Credit issued by it and the

 

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

          (f) U.S. Overadvances. If the aggregate Outstanding Amount of the U.S. Revolving
Credit Loans exceed the U.S. Borrowing Base (“U.S. Overadvance”) at any time, the excess
amount shall be payable by U.S. Borrowers on demand by the Administrative Agent, but all such
excess U.S. Revolving Credit Loans shall nevertheless constitute U.S. Obligations secured by the
U.S. Collateral and entitled to all benefits of the Loan Documents. Unless its authority has been
revoked in writing by Required U.S. Lenders, the Administrative Agent may require the U.S.
Revolving Credit Lenders to honor requests for U.S. Overadvance Loans and to forbear from requiring
the U.S. Borrowers to cure a U.S. Overadvance, when no other Event of Default is known to the
Administrative Agent, as long as (i) the U.S. Overadvance does not continue for more than 45
consecutive days (and no U.S. Overadvance may exist for at least five consecutive days thereafter
before further U.S. Overadvance Loans are required), and (ii) the U.S. Overadvance is not known by
the Administrative Agent to exceed, when taken together with all Canadian Overadvances and all
Protective Advances, the lesser of (x) $10,000,000 and (y) an amount equal to 10% of the Total
Borrowing Base. In no event shall U.S. Overadvance Loans be required that would cause the (A) the
aggregate Outstanding Amount of the U.S. Revolving Credit Loans of any Lender, plus such U.S.
Revolving Credit Lender’s Applicable Percentage of the Outstanding Amount of all U.S. L/C
Obligations, plus such U.S. Revolving Credit Lender’s Applicable Percentage of the Outstanding
Amount of all U.S. Swing Line Loans to exceed such U.S. Revolving Credit Lender’s U.S. Revolving
Credit Commitment or (B) the Total U.S. Revolving Credit Outstandings to exceed (x) the U.S.
Revolving Credit Facility minus (y) the Availability Reserve to the extent attributable to the U.S.
Loan Parties in the Administrative Agent’s Credit Judgment at such time. Any funding of a U.S.
Overadvance Loan or sufferance of a U.S. Overadvance shall not constitute a waiver by the
Administrative Agent or the Lenders of the Event of Default caused thereby. In no event shall any
Borrower or other Loan Party be deemed a beneficiary of this Section nor authorized to enforce any
of its terms. At the Administrative Agent’s discretion, U.S. Overadvance Loans made under this
Section 2.01(f) may be made in the form of U.S. Swing Line Loans in accordance with
Section 2.04(A).

          (g) Canadian Overadvances. If the aggregate Outstanding Amount of the Canadian
Revolving Credit Loans exceed the Canadian Borrowing Base (“Canadian Overadvance”) at any
time, the excess amount shall be payable by the Canadian Borrower on demand by the Administrative
Agent, but all such excess Canadian Revolving Credit Loans shall nevertheless constitute Canadian
Obligations secured by the Collateral and entitled to all benefits of the Loan Documents. Unless
its authority has been revoked in writing by the Required Canadian Lenders, the Administrative
Agent may require the Canadian Revolving Credit Lenders to honor requests for Canadian

 

72

Overadvance Loans and to forbear from requiring the Canadian Borrower to cure a Canadian
Overadvance, when no other Event of Default is known to the Administrative Agent, as long as (i)
the Canadian Overadvance does not continue for more than 45 consecutive days (and no Canadian
Overadvance may exist for at least five consecutive days thereafter before further Canadian
Overadvance Loans are required), and (ii) the Canadian Overadvance is not known by the
Administrative Agent to exceed $1,500,000 or, when taken together with all U.S. Overadvances and
all Protective Advances, the lesser of (x) $10,000,000 and (y) 10% of the Total Borrowing Base. In
no event shall Canadian Overadvance Loans be required that would cause the (A) the aggregate
Outstanding Amount of the Canadian Revolving Credit Loans of any Canadian Revolving Credit Lender,
plus such Canadian Revolving Credit Lender’s Applicable Percentage of the Outstanding Amount of all
Canadian L/C Obligations, plus such Canadian Revolving Credit Lender’s Applicable Percentage of the
Outstanding Amount of all Canadian Swing Line Loans to exceed such Canadian Revolving Credit
Lender’s Canadian Revolving Credit Commitment or (B) the Total Canadian Revolving Credit
Outstandings to exceed (x) the Canadian Revolving Credit Facility minus (y) the Availability
Reserve to the extent attributable to the Canadian Loan Parties in the Administrative Agent’s
Credit Judgment at such time. Any funding of a Canadian Overadvance Loan or sufferance of a
Canadian Overadvance shall not constitute a waiver by the Administrative Agent or the Lenders of
the Event of Default caused thereby. In no event shall any Borrower or other Loan Party be deemed
a beneficiary of this Section nor authorized to enforce any of its terms. At the Administrative
Agent’s discretion, Canadian Overadvance Loans made under this Section 2.01(g) may be made
in the form of Canadian Swing Line Loans in accordance with Section 2.04(B).

          (h) Protective Advances. The Agents shall be authorized, in their discretion, at any
time that any conditions in Section 4.02 are not satisfied, to make U.S. Revolving Credit
Loans (any such U.S. Revolving Credit Loans made pursuant to this Section 2.01(h),
“U.S. Protective Advances”) or to cause to be made through CS Toronto as its sub-agent
Canadian Revolving Credit Loans (any such Canadian Revolving Credit Loans made pursuant to this
Section 2.01(h), “Canadian Protective Advances” and, together with the U.S.
Protective Advances, the “Protective Advances”) (a) up to an aggregate amount, when taken
together with all U.S. Overadvances and all Canadian Overadvances, the lesser of (x) $10,000,000
and (y) 10% of the Total Borrowing Base outstanding at any time, if the Agents reasonably deem such
Loans necessary or desirable to preserve or protect Collateral, or to enhance the collectibility or
repayment of Obligations; or (b) to pay any other amounts chargeable to Loan Parties under any Loan
Documents, including costs, fees and expenses. Protective Advances shall constitute Obligations
secured by the Collateral and shall be entitled to all of the benefits of the Loan Documents.
Immediately upon the making of a Protective Advance, each applicable Appropriate Lender shall be
deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Administrative
Agent a risk participation in such Protective Advance in an amount equal to the product of such
applicable Revolving Credit Lender’s Applicable Percentage times the amount of such Protective
Advance. The Agents’ determination that funding of a Protective Advance is appropriate shall be
conclusive. In no event shall Protective Advances cause the aggregate Outstanding Amount of the
Revolving Credit Loans of any Lender, plus such Lender’s Applicable

 

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Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable
Percentage of the Outstanding Amount of all Swing Line Loans to exceed such Lender’s Commitment.

          SECTION 2.02. Borrowings, Conversions and Continuations of Loans. (a) Each Revolving
Credit Borrowing, each conversion of Revolving Credit Loans from one Type to the other, and each
continuation of Eurodollar Rate Loans or BA Rate Loans shall be made upon the applicable Borrower’s
irrevocable notice to the Administrative Agent, which may be given by telephone. Each such notice
must be received by the Administrative Agent not later than 12:00 p.m. (i) three Business Days
prior to the requested date of any Borrowing of, conversion to or continuation of Eurodollar Rate
Loans or BA Rate Loans or of any conversion of Eurodollar Rate Loans or BA Rate Loans to Base Rate
Loans, Canadian Base Rate Loans or Canadian Prime Rate Loans, as the case may be, and (ii) one
Business Day prior to the requested date of any Borrowing of Base Rate Loans, Canadian Base Rate
Loans or Canadian Prime Rate Loans; provided, however, that if the applicable
Borrower wishes to request Eurodollar Rate Loans or BA Rate Loans having an Interest Period other
than 1, 2, 3 or 6 months in duration as provided in the definition of “Interest Period,” the
applicable notice must be received by the Administrative Agent not later than 11:00 a.m. four
Business Days prior to the requested date of such Borrowing, conversion or continuation, whereupon
the Administrative Agent shall give prompt notice to the Appropriate Lenders of such request and
determine whether the requested Interest Period is acceptable to all of them. Not later than 11:00
a.m., three Business Days before the requested date of such Borrowing, conversion or continuation,
the Administrative Agent shall notify the applicable Borrower (which notice may be by telephone)
whether or not the requested Interest Period has been consented to by all the applicable Lenders.
Each telephonic notice by a Borrower pursuant to this Section 2.02(a) must be confirmed
promptly by delivery to the Administrative Agent of a written Committed Loan Notice, appropriately
completed and signed by a Responsible Officer of such Borrower. Each Borrowing of, conversion to
or continuation of Eurodollar Rate Loans or BA Rate Loans shall be in a principal amount of
$1,000,000 or Cdn. $1,000,000, as applicable, or a whole multiple of $200,000 or Cdn. $200,000, as
applicable, in excess thereof. Except as provided in Sections 2.03(a) and 2.04(c),
each Borrowing of or conversion to Base Rate Loans, Canadian Base Rate Loans or Canadian Prime Rate
Loans shall be in a principal amount of $500,000 or Cdn. $500,000, as applicable, or a whole
multiple of $100,000 or Cdn. $100,000, as applicable, in excess thereof. Each Committed Loan
Notice (whether telephonic or written) shall specify (i) whether a Borrower is requesting a
Revolving Credit Borrowing, a conversion of Revolving Credit Loans from one Type to the other, or a
continuation of Eurodollar Rate Loans or BA Rate Loans, (ii) the requested date of the Borrowing,
conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal
amount of Loans to be borrowed, converted or continued, (iv) the Type of Loans to be borrowed or to
which existing Revolving Credit Loans are to be converted, (v) if applicable, the duration of the
Interest Period with respect thereto and (vi) if applicable, the currency of the Borrowing,
continuation or conversion. If a Borrower fails to specify a Type of Loan in a Committed Loan
Notice or if a Borrower fails to give a timely notice requesting a conversion or continuation, then
the applicable Revolving Credit Loans shall be made as, or converted to, Base Rate Loans (in the
case of U.S. Revolving Credit Loans), Canadian Base Rate Loans (in the case of Canadian Revolving
Credit Loans denominated in Dollars) or Canadian Prime Rate Loans (in the case of Canadian
Revolving Credit Loans denominated in Canadian Dollars). Any such automatic conversion to Base
Rate

 

74

Loans, Canadian Base Rate Loans or Canadian Prime Rate Loans shall be effective as of the last
day of the Interest Period then in effect with respect to the applicable Eurodollar Rate Loans or
BA Rate Loans. If a Borrower requests a Borrowing of, conversion to, or continuation of Eurodollar
Rate Loans or BA Rate Loans in any such Committed Loan Notice, but fails to specify an Interest
Period, it will be deemed to have specified an Interest Period of 1 month. Notwithstanding
anything to the contrary herein, a Swing Line Loan may not be converted to a Eurodollar Rate Loan
or a BA Rate Loan.

          (b) Following receipt of a Committed Loan Notice, the Administrative Agent shall promptly
notify each applicable Lender of the amount of its Applicable Percentage under the applicable
Facility of the applicable Revolving Credit Loans, and if no timely notice of a conversion or
continuation is provided by the applicable Borrower, the Administrative Agent shall notify each
applicable Lender of the details of any automatic conversion to Base Rate Loans, Canadian Base Rate
Loans or Canadian Prime Rate Loans, as applicable, described in Section 2.02(a). In the
case of a Revolving Credit Borrowing, each Appropriate Lender shall make the amount of its Loan
available to the Administrative Agent in immediately available funds at the Administrative Agent’s
Office not later than 1:00 p.m. on the Business Day specified in the applicable Committed Loan
Notice. Upon satisfaction of the applicable conditions set forth in Section 4.02 (and, if
such Borrowing is the initial Credit Extension, Section 4.01), the Administrative Agent
shall make all funds so received available to the applicable Borrower by wire transfer of such
funds in accordance with instructions provided (and reasonably acceptable) to the Administrative
Agent by the applicable Borrower.

          (c) Any Eurodollar Rate Loan and a BA Rate Loan continued or converted other than on the last
day of an Interest Period for such Eurodollar Rate Loan or BA Rate Loan and any continuation or
conversion shall be subject to Section 3.05. During the existence of an Event of Default,
(i) upon notice to the Borrower Agent from the Administrative Agent given at the request of the
Required U.S. Lenders, no outstanding Loans to the U.S. Borrowers may be converted into, or
continued as Eurodollar Rate Loans and (ii) upon notice to the Borrower Agent from the
Administrative Agent given at the request of the Required Canadian Lenders, no outstanding Loans to
the Canadian Borrowers may be converted into, or continued as Eurodollar Rate Loans or BA Rate
Loans.

          (d) The Administrative Agent shall promptly notify the applicable Borrower and the applicable
Lenders of the interest rate applicable to any Interest Period for Eurodollar Rate Loans and BA
Rate Loans upon determination of such interest rate. At any time that Base Rate Loans, Canadian
Base Rate Loans or Canadian Prime Rate Loans are outstanding, the Administrative Agent shall notify
the applicable Borrower and the applicable Lenders of any change in Credit Suisse’s or CS
Toronto’s, as applicable, base rate or prime rate used in determining the Base Rate, Canadian Base
Rate or Canadian Prime Rate, as applicable, promptly following the announcement of such change.

          (e) After giving effect to all Revolving Credit Borrowings, all conversions of Revolving
Credit Loans from one Type to the other, and all continuations

 

75

of Revolving Credit Loans as the same Type, there shall not be more than ten Interest Periods
in effect in respect of the Revolving Credit Facility.

          (f) Anything in this Section 2.02 to the contrary notwithstanding, no Borrower may
select Interest Periods for Eurodollar Rate Loans and BA Rate Loans that have a duration of more
than 1 month during the period from the date hereof to June 30, 2008 (or such earlier date as shall
be specified by the Administrative Agent in a notice to the Borrower Agent and the Lenders).

          SECTION 2.03. Letters of Credit Procedures for Issuance and Amendment of Letters of
Credit; Auto-Extension Letters of Credit. (a) (i) Each Letter of Credit shall be issued or
amended, as the case may be, upon the request of the applicable Borrower delivered to the
applicable L/C Issuer (with a copy to the Administrative Agent) in the form of a Letter of Credit
Application, appropriately completed and signed by a Responsible Officer of such Borrower. Such
Letter of Credit Application must be received by the applicable L/C Issuer and the Administrative
Agent not later than 2:00 p.m. at least two Business Days (or such later date and time as the
Administrative Agent and such L/C Issuer may agree in a particular instance in their sole
discretion) prior to the proposed issuance date or date of amendment, as the case may be. In the
case of a request for an initial issuance of a Letter of Credit, such Letter of Credit Application
shall specify in form and detail reasonably satisfactory to the applicable L/C Issuer: (A) the
proposed issuance date of the requested Letter of Credit (which shall be a Business Day); (B) the
amount and currency thereof; (C) the expiry date thereof; (D) the name and address of the
beneficiary thereof; (E) the documents to be presented by such beneficiary in case of any drawing
thereunder; (F) the full text of any certificate to be presented by such beneficiary in case of any
drawing thereunder; (G) the purpose and nature of the requested Letter of Credit; and (H) such
other matters as the applicable L/C Issuer may reasonably require. In the case of a request for an
amendment of any outstanding Letter of Credit, such Letter of Credit Application shall specify in
form and detail reasonably satisfactory to the applicable L/C Issuer (1) the Letter of Credit to be
amended; (2) the proposed date of amendment thereof (which shall be a Business Day); (3) the nature
of the proposed amendment; and (4) such other matters as the applicable L/C Issuer may require.
Additionally, the applicable Borrower shall furnish to the applicable L/C Issuer and the
Administrative Agent such other documents and information pertaining to such requested Letter of
Credit issuance or amendment, including any Issuer Documents, as such L/C Issuer or the
Administrative Agent may reasonably require.

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

 

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with such L/C Issuer’s usual and customary business practices. Immediately upon the issuance
of each U.S. Letter of Credit, each U.S. Appropriate Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the U.S. L/C Issuer a risk participation
in such Letter of Credit in an amount equal to the product of such Revolving Credit Lender’s
Applicable Percentage times the amount of such Letter of Credit. Immediately upon the
issuance of each Canadian Letter of Credit, each Canadian Appropriate Lender shall be deemed to,
and hereby irrevocably and unconditionally agrees to, purchase from the Canadian L/C Issuer a risk
participation in such Letter of Credit in an amount equal to the product of such Revolving Credit
Lender’s Applicable Percentage times the Outstanding Amount of such Letter of Credit.

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

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

          (b) Drawings and Reimbursements; Funding of Participations. (i) Upon receipt from
the beneficiary of any Letter of Credit of any notice of a drawing under such Letter of Credit, the
applicable L/C Issuer shall notify the applicable Borrower and the Administrative Agent thereof.
Not later than 11:00 a.m. on the date of any payment by

 

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the applicable L/C Issuer under a Letter of Credit (each such date, an “Honor Date”),
the applicable Borrower shall reimburse such L/C Issuer through the Administrative Agent in an
amount equal to the amount of such drawing. If the applicable Borrower fails to so reimburse such
L/C Issuer by such time, the Administrative Agent shall promptly notify each Appropriate Lender
under the applicable Facility of the Honor Date, the amount of the unreimbursed drawing (the
“Unreimbursed Amount”), and the amount of such Revolving Credit Lender’s Applicable
Percentage thereof. In such event, the applicable Borrower shall be deemed to have requested a
Revolving Credit Borrowing of Base Rate Loans (in the case of U.S. Letters of Credit) or Canadian
Base Rate Loans or Canadian Prime Rate Loans, as applicable (in the case of Canadian Letters of
Credit) to be disbursed on the Honor Date in an amount equal to the Unreimbursed Amount, without
regard to the minimum and multiples specified in Section 2.02 for the principal amount of
Base Rate Loans, Canadian Base Rate Loans and Canadian Prime Rate Loans, but subject to the amount
of the unutilized portion of the Revolving Credit Commitments under the applicable Facility and the
conditions set forth in Section 4.02 (other than the delivery of a Committed Loan Notice).
Any notice given by an L/C Issuer or the Administrative Agent pursuant to this Section
2.03(c)(i) may be given by telephone if immediately confirmed in writing; provided that
the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of
such notice. In the case of a Letter of Credit denominated in a currency other than Dollars, the
applicable Borrower shall reimburse the applicable L/C Issuer in such currency, unless (A) such L/C
Issuer (at its option) shall have specified in such notice that it will require reimbursement in
Dollars, or (B) in the absence of any such requirement for reimbursement in Dollars, such Borrower
shall have notified such L/C Issuer promptly following receipt of the notice of drawing that such
Borrower will reimburse such L/C Issuer in Dollars. In the case of any such reimbursement in
Dollars of a drawing under a Letter of Credit denominated in a currency other than Dollars, the
applicable L/C Issuer shall notify the applicable Borrower of the Dollar Equivalent of the amount
of the drawing promptly following the determination thereof.

          (ii) Each Appropriate Lender under the applicable Facility shall upon any notice pursuant to
Section 2.03(b)(i) make funds available to the Administrative Agent for the account of the
applicable L/C Issuer at the Administrative Agent’s Office in an amount equal to its Applicable
Percentage of the Unreimbursed Amount not later than 1:00 p.m. on the Business Day specified in
such notice by the Administrative Agent, whereupon, subject to the provisions of Section
2.03(b)(iii), each Appropriate Lender that so makes funds available shall be deemed to have
made a Base Rate Loan, Canadian Base Rate Loan or Canadian Prime Rate Loan, as applicable, to the
applicable Borrower in such amount. The Administrative Agent shall remit the funds so received to
the applicable L/C Issuer.

          (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a Revolving
Credit Borrowing of Base Rate Loans (or Canadian Base Rate Loans or Canadian Prime Rate Loans, as
the case may be) because the conditions set forth in Section 4.02 cannot be satisfied or
for any other reason, the applicable Borrower shall be deemed to have incurred from the applicable
L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is not so refinanced,
which L/C Borrowing

 

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shall be due and payable on demand (together with interest) and shall bear interest at the Default Rate.
In such event, each Appropriate Lender’s payment to the Administrative Agent for the account of the
applicable L/C Issuer pursuant to Section 2.03(b)(ii) shall be deemed payment in respect of
its participation in such L/C Borrowing and shall constitute an L/C Advance from such Lender in
satisfaction of its participation obligation under this Section 2.03.

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

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

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

          (c) Repayment of Participations. (i) At any time after an L/C Issuer has made a
payment under any Letter of Credit and has received from any Appropriate Lender such Lender’s L/C
Advance in respect of such payment in accordance with Section 2.03(b), if the
Administrative Agent receives for the account of such L/C Issuer

 

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any payment in respect of the related Unreimbursed Amount or interest thereon (whether
directly from a Borrower or otherwise, including proceeds of Cash Collateral applied thereto by the
Administrative Agent), the Administrative Agent will distribute to such Lender its Applicable
Percentage thereof in the same funds as those received by the Administrative Agent.

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

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

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

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

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

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

 

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or any transferee of such Letter of Credit, including any arising in connection with
any proceeding under any Debtor Relief Law; or

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

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

          (e) Role of L/C Issuer. Each Lender and each Borrower agrees that, in paying any
drawing under a Letter of Credit, no L/C Issuer shall have any responsibility to obtain any
document (other than any sight draft, certificates and documents expressly required by the Letter
of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the
authority of the Person executing or delivering any such document. None of the L/C Issuers, the
Administrative Agent, any of their respective Related Parties nor any correspondent, participant or
assignee of any L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in
connection herewith at the request or with the approval of the Revolving Credit Lenders under the
applicable Facility or the Required U.S. Lenders or Required Canadian Lenders, as applicable; (ii)
any action taken or omitted in the absence of gross negligence or willful misconduct; or (iii) the
due execution, effectiveness, validity or enforceability of any document or instrument related to
any Letter of Credit or Issuer Document. Each Borrower hereby assumes all risks of the acts or
omissions of any beneficiary or transferee with respect to its use of any Letter of Credit;
provided, however, that this assumption is not intended to, and shall not, preclude
such Borrowers’ pursuing such rights and remedies as it may have against the beneficiary or
transferee at law or under any other agreement. None of the L/C Issuers, the Administrative Agent,
any of their respective Related Parties nor any correspondent, participant or assignee of any L/C
Issuer shall be liable or responsible for any of the matters described in clauses (i) through (v)
of Section 2.03(d); provided, however, that anything in such clauses to the
contrary notwithstanding, a Borrower may have a claim against an L/C Issuer, and such L/C Issuer
may be liable to such Borrower, to the extent, but only to the extent, of any direct, as opposed to
consequential or exemplary, damages suffered by such Borrower which such Borrower proves were
caused by such L/C Issuer’s willful misconduct or gross negligence or such L/C Issuer’s willful
failure to pay under any Letter of Credit after the presentation to it by the beneficiary of a
sight draft and certificate(s) strictly complying with the terms and conditions of a Letter of
Credit. In furtherance and not in limitation of the foregoing, the L/C Issuers may accept
documents that appear on their face to be in order, without responsibility for further
investigation, regardless of any notice or information to the contrary, and the L/C Issuers shall
not be responsible for the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign a Letter of Credit

 

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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.

          (f) Cash Collateral. Upon the request of the Administrative Agent, (i) if an L/C
Issuer has honored any full or partial drawing request under any Letter of Credit and such drawing
has resulted in an L/C Borrowing, or (ii) if, as of the Letter of Credit Expiration Date, any L/C
Obligation for any reason remains outstanding, the applicable Borrowers shall, in each case,
immediately Cash Collateralize the then Outstanding Amount of all applicable L/C Obligations.
Sections 2.05 and 8.02(c) set forth certain additional requirements to deliver Cash
Collateral hereunder. For purposes of this Section 2.03, Section 2.05 and
Section 8.02(c), “Cash Collateralize” means to pledge and deposit with or deliver
or hypothecate to the Collateral Agent, for the benefit of the applicable L/C Issuers and the
Appropriate Lenders, as collateral for the L/C Obligations, cash or deposit account balances
pursuant to documentation in form and substance reasonably satisfactory to the Collateral Agent and
the applicable L/C Issuer (which documents are hereby consented to by the Lenders). Derivatives of
such term have corresponding meanings. Each Borrower hereby grants to the Collateral Agent, for
the benefit of the applicable L/C Issuer and the Appropriate Lenders, a security interest in all
such cash, deposit accounts and all balances therein and all proceeds of the foregoing. Cash
Collateral shall be maintained in blocked, non-interest bearing deposit accounts under the
exclusive control of the Collateral Agent. If at any time the Collateral Agent determines that any
funds held as Cash Collateral are subject to any right or claim of any Person other than the
Collateral Agent or that the total amount of such funds is less than the aggregate Outstanding
Amount of all applicable L/C Obligations, the applicable Borrower will, forthwith upon demand by
the Collateral Agent, pay to the Collateral Agent, as additional funds to be deposited as Cash
Collateral, an amount equal to the excess of (x) such aggregate Outstanding Amount over (y) the
total amount of funds, if any, then held as Cash Collateral that the Collateral Agent determines to
be free and clear of any such right and claim. Upon the drawing of any Letter of Credit for which
funds are on deposit as Cash Collateral, such funds shall be applied, to the extent permitted under
applicable Laws, to reimburse the applicable L/C Issuer.

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

          (h) Letter of Credit Fees. The U.S. Borrowers shall pay to the Administrative Agent
for the account of each U.S. Appropriate Lender in accordance with its Applicable Percentage, and
the Canadian Borrower shall pay to the Administrative Agent for the account of each Canadian
Appropriate Lender in accordance with its Applicable Percentage, a Letter of Credit fee (the
“Letter of Credit Fee”) for each U.S. Letter of Credit or Canadian Letter of Credit, as
applicable, equal to the Applicable Rate times the daily amount available to be drawn under
such Letter of

 

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Credit. For purposes of computing the daily amount available to be drawn under any Letter of
Credit, the amount of such Letter of Credit shall be determined in accordance with Section
1.06. Letter of Credit Fees shall be (i) due and payable on the first Business Day of each
April, July, October and January, commencing with the first such date to occur after the issuance
of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand and (ii)
computed on a quarterly basis in arrears. If there is any change in the Applicable Rate during any
quarter, the daily amount available to be drawn under each Letter of Credit shall be computed and
multiplied by the Applicable Rate separately for each period during such quarter that such
Applicable Rate was in effect. Notwithstanding anything to the contrary contained herein, any
past-due Letter of Credit Fees shall accrue at the Default Rate.

          (i) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer. The
applicable Borrower shall pay directly to the applicable L/C Issuer for its own account a fronting
fee with respect to each Letter of Credit, at the rate of 0.25% per annum, computed on the daily
amount available to be drawn under such Letter of Credit on a quarterly basis in arrears. Such
fronting fee shall be due and payable on the first Business Day of each April, July, October and
January in respect of the most recently-ended quarterly period (or portion thereof, in the case of
the first payment), commencing with the first such date to occur after the issuance of such Letter
of Credit, on the Letter of Credit Expiration Date and thereafter on demand. For purposes of
computing the daily amount available to be drawn under any Letter of Credit, the amount of such
Letter of Credit shall be determined in accordance with Section 1.06. In addition, the
applicable Borrower shall pay directly to the applicable L/C Issuer for its own account the
customary issuance, presentation, amendment and other processing fees, and other standard costs and
charges, of such L/C Issuer relating to letters of credit as from time to time in effect. Such
customary fees and standard costs and charges are due and payable on demand and are nonrefundable.

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

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

          SECTION 2.04. Swing Line Loans.

          (A) (a) The U.S. Swing Line. Subject to the terms and conditions set forth herein,
the U.S. Swing Line Lender agrees, in reliance upon the agreements of the other Lenders set forth
in this Section 2.04(A), to make loans (each such loan, a “U.S. Swing Line Loan”)
in Dollars to the Specified U.S. Borrower from time to time on any Business Day during the
Availability Period in an aggregate amount not to exceed at any

 

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time outstanding the amount of the U.S. Swing Line Sublimit, notwithstanding the fact that
such U.S. Swing Line Loans, when aggregated with the Applicable Percentage of the Outstanding
Amount of U.S. Revolving Credit Loans and U.S. L/C Obligations of the Lender acting as U.S. Swing
Line Lender, may exceed the amount of such Lender’s U.S. Revolving Credit Commitment;
provided, however, that after giving effect to any U.S. Swing Line Loan, (i) the
Total Revolving Credit Outstandings shall not exceed the lesser of (x) the Revolving Credit
Facility and (y) the Total Borrowing Base at such time, (ii) the aggregate Outstanding Amount of
the U.S. Revolving Credit Loans of any Lender, plus such U.S. Revolving Credit Lender’s Applicable
Percentage of the Outstanding Amount of all U.S. L/C Obligations, plus such U.S. Revolving Credit
Lender’s Applicable Percentage of the Outstanding Amount of all U.S. Swing Line Loans shall not
exceed such U.S. Revolving Credit Lender’s U.S. Revolving Credit Commitment and (iii) the Total
U.S. Revolving Credit Outstandings shall not exceed the lesser of (x) the U.S. Revolving Credit
Facility and (y) the U.S. Borrowing Base; and provided that, at no time prior to the
satisfaction of the Borrowing Base Condition shall Total U.S. Outstandings or Total Outstandings
exceed $75,000,000; and provided further that the Specified U.S. Borrower shall not
use the proceeds of any U.S. Swing Line Loan to refinance any outstanding U.S. Swing Line Loan.
Within the foregoing limits, and subject to the other terms and conditions hereof, the Specified
U.S. Borrower may borrow under this Section 2.04(A), prepay under Section 2.05, and
reborrow under this Section 2.04(A). Each U.S. Swing Line Loan shall bear interest only at
a rate based on the Base Rate. Immediately upon the making of a U.S. Swing Line Loan, each U.S.
Appropriate Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to,
purchase from the U.S. Swing Line Lender a risk participation in such U.S. Swing Line Loan in an
amount equal to the product of such U.S. Revolving Credit Lender’s Applicable Percentage
times the amount of such U.S. Swing Line Loan.

          (b) Borrowing Procedures. Each U.S. Swing Line Borrowing shall be made upon the
Specified U.S. Borrower’s irrevocable notice to the U.S. Swing Line Lender and the Administrative
Agent, which may be given by telephone. Each such notice must be received by the U.S. Swing Line
Lender and the Administrative Agent not later than 12:00 p.m. on the requested borrowing date, and
shall specify (i) the amount to be borrowed and (ii) the requested borrowing date, which shall be a
Business Day. Each such telephonic notice must be confirmed promptly by delivery to the U.S. Swing
Line Lender and the Administrative Agent of a written Swing Line Loan Notice, appropriately
completed and signed by a Responsible Officer of the Specified U.S. Borrower. Promptly after
receipt by the U.S. Swing Line Lender of any telephonic Swing Line Loan Notice, the U.S. Swing Line
Lender will confirm with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has also received such Swing Line Loan Notice and, if not, the U.S. Swing Line
Lender will notify the Administrative Agent (by telephone or in writing) of the contents thereof.
Unless the U.S. Swing Line Lender has received notice (by telephone or in writing) from the
Administrative Agent (including at the request of any U.S. Revolving Credit Lender) prior to 2:00
p.m. on the date of the proposed U.S. Swing Line Borrowing (A) directing the U.S. Swing Line Lender
not to make such Swing Line Loan as a result of the limitations set forth in the first proviso to
the first sentence of Section 2.04(A)(a), or (B) that one or more of the applicable
conditions specified in Article IV is not then satisfied, then, subject to the terms and

 

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conditions hereof, the U.S. Swing Line Lender will, not later than 3:00 p.m. on the borrowing
date specified in such Swing Line Loan Notice, make the amount of its Swing Line Loan available to
the Specified U.S. Borrower.

          (c) Refinancing of U.S. Swing Line Loans. (i) The U.S. Swing Line Lender at any
time in its sole and absolute discretion may request, on behalf of the Specified U.S. Borrower
(which hereby irrevocably authorizes the U.S. Swing Line Lender to so request on its behalf), that
each U.S. Appropriate Lender make a Base Rate Loan in an amount equal to such Lender’s Applicable
Percentage of the amount of U.S. Swing Line Loans then outstanding. Such request shall be made in
writing (which written request shall be deemed to be a Committed Loan Notice for purposes hereof)
and in accordance with the requirements of Section 2.02, without regard to the minimum and
multiples specified therein for the principal amount of Base Rate Loans, but subject to the
unutilized portion of the U.S. Revolving Credit Facility and the conditions set forth in
Section 4.02. The U.S. Swing Line Lender shall furnish the Specified U.S. Borrower with a
copy of the applicable Committed Loan Notice promptly after delivering such notice to the
Administrative Agent. Each U.S. Appropriate Lender shall make an amount equal to its Applicable
Percentage of the amount specified in such Committed Loan Notice available to the Administrative
Agent in immediately available funds for the account of the U.S. Swing Line Lender at the
Administrative Agent’s Office not later than 1:00 p.m. on the day specified in such Committed Loan
Notice, whereupon, subject to Section 2.04(A)(c)(ii), each U.S. Appropriate Lender that so
makes funds available shall be deemed to have made a Base Rate Loan to the Specified U.S. Borrower
in such amount. The Administrative Agent shall remit the funds so received to the U.S. Swing Line
Lender.

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

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

          (iv) If any U.S. Appropriate Lender fails to make available to the Administrative Agent for
the account of the U.S. Swing Line Lender any amount required to be paid by it pursuant to Section
2.04(A)(c)(iii), the U.S. Swing Line Lender shall be entitled, at its sole and absolute
discretion, to recover from the Borrowers (acting through the Administrative Agent), on demand,
such amount with interest thereon for the period from the date such payment is required to the date
on which such payment is immediately available to the U.S. Swing Line Lender at a rate per annum
equal to the Overnight Rate, plus any administrative, processing or similar fees customarily
charged by the U.S. Swing Line Lender in connection with the foregoing.

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

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

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

          (e) Interest for Account of U.S. Swing Line Lender. The U.S. Swing Line Lender shall
be responsible for invoicing the Specified U.S. Borrower for interest on the

 

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U.S. Swing Line Loans. Until each U.S. Appropriate Lender funds its Base Rate Loan or risk
participation pursuant to this Section 2.04(A) to refinance such Revolving Credit Lender’s
Applicable Percentage of any U.S. Swing Line Loan, interest in respect of such Applicable
Percentage shall be solely for the account of the U.S. Swing Line Lender.

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

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

          (b) Borrowing Procedures. Each Canadian Swing Line Borrowing shall be made upon the
Canadian Borrower’s irrevocable notice to the Canadian Swing Line Lender and the Administrative
Agent, which may be given by telephone. Each such notice must be received by the Canadian Swing
Line Lender and the Administrative

 

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Agent not later than 12:00 p.m. on the requested borrowing date, and shall specify (i) the
amount and currency to be borrowed and (ii) the requested borrowing date, which shall be a Business
Day. Each such telephonic notice must be confirmed promptly by delivery to the Canadian Swing Line
Lender and the Administrative Agent of a written Swing Line Loan Notice, appropriately completed
and signed by a Responsible Officer of the Canadian Borrower. Promptly after receipt by the
Canadian Swing Line Lender of any telephonic Swing Line Loan Notice, the Canadian Swing Line Lender
will confirm with the Administrative Agent (by telephone or in writing) that the Administrative
Agent has also received such Swing Line Loan Notice and, if not, the Canadian Swing Line Lender
will notify the Administrative Agent (by telephone or in writing) of the contents thereof. Unless
the Canadian Swing Line Lender has received notice (by telephone or in writing) from the
Administrative Agent (including at the request of any Canadian Revolving Credit Lender) prior to
2:00 p.m. on the date of the proposed Canadian Swing Line Borrowing (A) directing the Canadian
Swing Line Lender not to make such Swing Line Loan as a result of the limitations set forth in the
first proviso to the first sentence of Section 2.04(B)(a), or (B) that one or more of the
applicable conditions specified in Article IV is not then satisfied, then, subject to the
terms and conditions hereof, the Canadian Swing Line Lender will, not later than 3:00 p.m. on the
borrowing date specified in such Swing Line Loan Notice, make the amount of its Swing Line Loan
available to the Canadian Borrower.

          (c) Refinancing of Canadian Swing Line Loans. (i) The Canadian Swing Line Lender at
any time in its sole and absolute discretion (but at least once per week) may request, on behalf of
the Canadian Borrower (which hereby irrevocably authorizes the Canadian Swing Line Lender to so
request on its behalf), that each Canadian Appropriate Lender make a Canadian Base Rate Loan or
Canadian Prime Rate Loan, as applicable, in an amount equal to such Lender’s Applicable Percentage
of the amount of Canadian Swing Line Loans then outstanding. Such request shall be made in writing
(which written request shall be deemed to be a Committed Loan Notice for purposes hereof) and in
accordance with the requirements of Section 2.02, without regard to the minimum and
multiples specified therein for the principal amount of Canadian Base Rate Loans and Canadian Prime
Rate Loans, but subject to the unutilized portion of the Canadian Revolving Credit Facility and the
conditions set forth in Section 4.02. The Canadian Swing Line Lender shall furnish the
Canadian Borrower with a copy of the applicable Committed Loan Notice promptly after delivering
such notice to the Administrative Agent. Each Canadian Appropriate Lender shall make an amount
equal to its Applicable Percentage of the amount specified in such Committed Loan Notice available
to the Administrative Agent in immediately available funds for the account of the Canadian Swing
Line Lender at the Administrative Agent’s Office not later than 1:00 p.m. on the day specified in
such Committed Loan Notice, whereupon, subject to Section 2.04(B)(c)(ii), each Canadian
Appropriate Lender that so makes funds available shall be deemed to have made a Base Rate Loan or
Canadian Prime Rate Loan, as the case may be, to the Canadian Borrower in such amount. The
Administrative Agent shall remit the funds so received to the Canadian Swing Line Lender.

          (ii) If for any reason any Canadian Swing Line Loan cannot be refinanced by such a Canadian
Revolving Credit Borrowing in accordance with Section 2.04(B)(c)(i),

 

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the request for Canadian Base Rate Loans or Canadian Prime Rate Loans submitted by the
Canadian Swing Line Lender as set forth herein shall be deemed to be a request by the Canadian
Swing Line Lender that each of the Canadian Revolving Credit Lenders fund its risk participation in
the relevant Canadian Swing Line Loan and each Canadian Revolving Credit Lender’s payment to the
Administrative Agent for the account of the Canadian Swing Line Lender pursuant to Section
2.04(B)(c)(i) shall be deemed payment in respect of such participation.

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

          (iv) If any Canadian Appropriate Lender fails to make available to the Administrative Agent
for the account of the Canadian Swing Line Lender any amount required to be paid by it pursuant to
Section 2.04(B)(c)(iii), the Canadian Swing Line Lender shall be entitled, at its sole and
absolute discretion, to recover from the Borrowers (acting through the Administrative Agent), on
demand, such amount with interest thereon for the period from the date such payment is required to
the date on which such payment is immediately available to the Canadian Swing Line Lender at a rate
per annum equal to the Overnight Rate, plus any administrative, processing or similar fees
customarily charged by the Canadian Swing Line Lender in connection with the foregoing.

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

 

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

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

          (e) Interest for Account of Canadian Swing Line Lender. The Canadian Swing Line
Lender shall be responsible for invoicing the Canadian Borrower for interest on the Canadian Swing
Line Loans. Until each Canadian Appropriate Lender funds its Canadian Base Rate Loan or Canadian
Prime Rate Loan, as the case may be, or risk participation pursuant to this Section 2.04(B)
to refinance such Revolving Credit Lender’s Applicable Percentage of any Canadian Swing Line Loan,
interest in respect of such Applicable Percentage shall be solely for the account of the Canadian
Swing Line Lender.

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

          SECTION 2.05. Prepayments. (a) Optional. (i) Subject to the last sentence
of this Section 2.05(a)(i), the Borrowers may, upon notice to the Administrative Agent, at
any time or from time to time voluntarily prepay Revolving Credit Loans in whole or in part without
premium or penalty; provided that (A) such notice must be received by the Administrative
Agent not later than 12:00 p.m. (1) three Business Days prior to any date of prepayment of
Eurodollar Rate Loans or BA Rate Loans and (2) one Business Day prior to any date of prepayment of
Base Rate Loans, Canadian Base Rate Loans and Canadian Prime Rate Loans; (B) any prepayment of
Eurodollar Rate Loans or BA Rate Loans shall be in a principal amount of $1,000,000 or Cdn.
$1,000,000, as applicable, or a whole multiple of $200,000 or Cdn. $200,000, as applicable, in
excess thereof; and (C) any prepayment of Base Rate Loans, Canadian Base Rate Loans and Canadian
Prime Rate Loans shall be in a principal amount of $500,000 or Cdn. $500,000, as applicable, or a
whole multiple of $100,000 or Cdn. $100,000, as applicable, in excess thereof or, in each case, if
less, the entire principal amount thereof then outstanding. Each such notice shall specify the
date and amount of such prepayment and the Type(s) of Loans to be prepaid and, if Eurodollar Rate
Loans or BA Rate Loans are to be

 

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prepaid, the Interest Period(s) of such Loans. The Administrative Agent will promptly notify
each Appropriate Lender of its receipt of each such notice, and of the amount of such Lender’s
ratable portion of such prepayment (based on such Lender’s Applicable Percentage in respect of the
relevant Facility). If such notice is given by a Borrower, such Borrower shall make such
prepayment and the payment amount specified in such notice shall be due and payable on the date
specified therein. Any prepayment of a Eurodollar Rate Loan or a BA Rate Loan shall be accompanied
by all accrued interest on the amount prepaid, together with any additional amounts required
pursuant to Section 3.05.

          (ii) The applicable Borrower may, upon notice to the applicable Swing Line Lender (with a copy
to the Administrative Agent), at any time or from time to time, voluntarily prepay Swing Line Loans
in whole or in part without premium or penalty; provided that (A) such notice must be
received by the applicable Swing Line Lender and the Administrative Agent not later than 12:00 p.m.
on the date of the prepayment. Each such notice shall specify the date and amount of such
prepayment. If such notice is given by a Borrower, such Borrower shall make such prepayment and
the payment amount specified in such notice shall be due and payable on the date specified therein.

          (b) Mandatory. (i) If for any reason the Total Revolving Credit Outstandings at any
time exceed the lesser of (x) the Borrowing Base at such time (except as a result of Overadvance
Loans or Protective Advances permitted under Section 2.01(f) or 2.01(g)) and (y) the
Revolving Credit Facility at such time, the Borrowers shall immediately prepay their respective
Revolving Credit Loans, Swing Line Loans and L/C Borrowings and/or Cash Collateralize their
respective L/C Obligations (other than the L/C Borrowings) in an aggregate amount equal to such
excess. If for any reason the Total U.S. Revolving Credit Outstandings at any time exceed the
lesser of (x) the U.S. Borrowing Base at such time (except to the extent constituting U.S.
Overadvance Loans permitted under Section 2.01(f)) and (y) the U.S. Revolving Credit
Facility at such time, the U.S. Borrowers shall immediately prepay U.S. Revolving Credit Loans,
U.S. Swing Line Loans and U.S. L/C Borrowings and/or Cash Collateralize the U.S. L/C Obligations
(other than the U.S. L/C Borrowings) in an aggregate amount equal to such excess. If for any
reason (other than negative fluctuations in Dollar Equivalents of Canadian Dollars) the Total
Canadian Revolving Credit Outstandings at any time exceed the lesser of (x) the Canadian Borrowing
Base at such time (except to the extent constituting Canadian Overadvance Loans permitted under
Section 2.01(g)) and (y) the Canadian Revolving Credit Facility at such time, the Canadian
Borrower shall immediately prepay Canadian Revolving Credit Loans, Canadian Swing Line Loans and
Canadian L/C Borrowings and/or Cash Collateralize the Canadian L/C Obligations (other than the
Canadian L/C Borrowings) in an aggregate amount equal to such excess.

          (ii) If, as a result of any negative fluctuations in the Dollar Equivalent of Canadian
Dollars, the Total Canadian Revolving Credit Outstandings exceeds 110% of the aggregate amount of
the Canadian Revolving Credit Commitments as then in effect, the Canadian Borrower shall, if
requested (through the Administrative Agent) by the Required Canadian Lenders prepay the Canadian
Revolving Credit Loans (or Cash Collateralize the Canadian Letters of Credit) within three (3)
Business Days following such Borrower’s receipt of such request in such amounts as shall be
necessary so that

 

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after giving effect thereto the Total Canadian Revolving Credit Outstandings does not exceed
the Canadian Revolving Credit Commitments.

          SECTION 2.06. Termination or Reduction of Commitments.
(a) Optional. The Specified U.S. Borrower may, upon notice to the Administrative
Agent, terminate the U.S. Revolving Credit Facility, the U.S. Letter of Credit Sublimit, the U.S.
Swing Line Sublimit, or from time to time permanently reduce the U.S. Revolving Credit Facility,
the U.S. Letter of Credit Sublimit, or the U.S. Swing Line Sublimit; and the Canadian Borrower may,
upon notice to the Administrative Agent, terminate the Canadian Revolving Credit Facility, the
Canadian Letter of Credit Sublimit or the Canadian Swing Line Sublimit, or from time to time
permanently reduce the Canadian Revolving Credit Facility, the Canadian Letter of Credit Sublimit
or the Canadian Swing Line Sublimit provided that (i) any such notice shall be received by
the Administrative Agent not later than 2:00 p.m. two Business Days prior to the date of
termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of
$5,000,000 or any whole multiple of $1,000,000 in excess thereof and (iii) the Borrowers shall not
terminate or reduce (A) the U.S. Revolving Credit Facility if, after giving effect thereto and to
any concurrent prepayments hereunder, the Total U.S. Revolving Credit Outstandings would exceed the
U.S. Revolving Credit Facility, (B) the U.S. Letter of Credit Sublimit if, after giving effect
thereto, the Outstanding Amount of U.S. L/C Obligations not fully Cash Collateralized hereunder
would exceed the U.S. Letter of Credit Sublimit, (C) the U.S. Swing Line Sublimit if, after giving
effect thereto and to any concurrent prepayments hereunder, the Outstanding Amount of U.S. Swing
Line Loans would exceed the U.S. Swing Line Sublimit, (D) the Canadian Revolving Credit Facility
if, after giving effect thereto and to any concurrent prepayments hereunder, the Total Canadian
Revolving Credit Outstandings would exceed the Canadian Revolving Credit Facility, (E) the Canadian
Letter of Credit Sublimit if, after giving effect thereto, the Outstanding Amount of Canadian L/C
Obligations not fully Cash Collateralized hereunder would exceed the Canadian Letter of Credit
Sublimit, (E) the Canadian Swing Line Sublimit if, after giving effect thereto and to any
concurrent prepayments hereunder, the Outstanding Amount of Canadian Swing Line Loans would exceed
the Canadian Swing Line Sublimit or (F) the U.S. Revolving Credit Facility while the Canadian
Revolving Credit Facility remains in effect.

          (b) Mandatory. (i) If after giving effect to any reduction or termination of U.S.
Revolving Credit Commitments under this Section 2.06, the U.S. Letter of Credit Sublimit or
the U.S. Swing Line Sublimit exceeds the U.S. Revolving Credit Facility at such time, the U.S.
Letter of Credit Sublimit and/or the U.S. Swing Line Sublimit, as the case may be, shall be
automatically reduced by the amount of such excess.

          (ii) If after giving effect to any reduction or termination of Canadian Revolving Credit
Commitments under this Section 2.06, the Canadian Letter of Credit Sublimit or the Canadian
Swing Line Sublimit exceeds the Canadian Revolving Credit Facility at such time, the Canadian
Letter of Credit Sublimit and/or the Canadian Swing Line Sublimit, as the case may be, shall be
automatically reduced by the amount of such excess.

          (c) Application of Commitment Reductions; Payment of Fees. The Administrative Agent
will promptly notify the Appropriate Lenders of any termination or

 

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reduction of any Letter of Credit Sublimit, any Swing Line Sublimit or any Revolving Credit
Commitment under this Section 2.06. Upon any reduction of the Revolving Credit
Commitments, the Revolving Credit Commitment of each Appropriate Lender shall be reduced by such
Lender’s Applicable Percentage of such reduction amount. All fees in respect of the applicable
Revolving Credit Facility accrued until the effective date of any termination of such Revolving
Credit Facility shall be paid on the effective date of such termination.

          SECTION 2.07. Repayment of Loans. (a) Revolving Credit Loans. The U.S.
Borrowers shall repay to the U.S. Revolving Credit Lenders on the Maturity Date for the U.S.
Revolving Credit Facility the aggregate principal amount of all U.S. Revolving Credit Loans
outstanding on such date. The Canadian Borrower shall repay to the Canadian Revolving Credit
Lenders on the Maturity Date for the Canadian Revolving Credit Facility the aggregate principal
amount of all Canadian Revolving Credit Loans outstanding on such date.

          (b) Swing Line Loans. The U.S. Borrowers shall repay each U.S. Swing Line Loan on the
Maturity Date for the U.S. Revolving Credit Facility. The Canadian Borrower shall repay each
Canadian Swing Line Loan on the Maturity Date for the Canadian Revolving Credit Facility.

          SECTION 2.08. Interest. (a) Subject to the provisions of Section 2.08(b),
(i) each Eurodollar Rate Loan under a Facility shall bear interest on the outstanding principal
amount thereof for each Interest Period at a rate per annum equal to the Eurodollar Rate for such
Interest Period plus the Applicable Rate; (ii) each BA Rate Loan under the Canadian Revolving
Credit Facility shall bear interest on the outstanding principal amount thereof for each Interest
Period at a rate per annum equal to the BA Rate for such Interest Period plus the Applicable Rate;
(iii) each Base Rate Loan under a Facility shall bear interest on the outstanding principal amount
thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the
Applicable Rate; (iv) each Canadian Base Rate Loan under the Canadian Revolving Credit Facility
shall bear interest on the outstanding principal amount thereof from the applicable borrowing date
at a rate per annum equal to the Canadian Base Rate plus the Applicable Rate; (v) each Canadian
Prime Rate Loan under the Canadian Revolving Credit Facility shall bear interest on the outstanding
principal amount thereof from the applicable borrowing date at a rate per annum equal to the
Canadian Prime Rate plus the Applicable Rate; (vi) each U.S. Swing Line Loan shall bear interest on
the outstanding principal amount thereof from the applicable borrowing date at a rate per annum
equal to the Base Rate plus the Applicable Rate for the Revolving Credit Facility; and (vii) each
Canadian Swing Line Loan shall bear interest on the outstanding principal amount thereof from the
applicable borrowing date at a rate per annum equal to the Canadian Base Rate (for Canadian Swing
Line Loans denominated in Dollars) or the Canadian Prime Rate (for Canadian Swing Line Loans
denominated in Canadian Dollars) plus the Applicable Rate for the Revolving Credit Facility.

          (b) (i) If any amount of principal of any Loan is not paid when due (without regard to any
applicable grace periods), whether at stated maturity, by acceleration or otherwise, then unless
otherwise agreed by the Required Lenders, the interest on such amount shall thereafter bear
interest at a fluctuating interest rate per

 

93

annum at all times equal to the Default Rate to the fullest extent permitted by applicable
Laws.

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

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

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

          SECTION 2.09. Fees. In addition to certain fees described in Sections 2.03(i)
and (j):

          (a) Commitment Fee. The U.S. Borrowers shall pay to the Administrative Agent for the
account of each U.S. Appropriate Lender in accordance with its Applicable Percentage, a commitment
fee equal to the Applicable Commitment Fee Rate divided by three hundred and sixty (360)
days and multiplied by the number of days in the fiscal quarter and then multiplied
by the amount, if any, by which the Average Revolving Credit Facility Balance with respect to the
U.S. Revolving Credit Facility for such fiscal quarter (or portion thereof that the U.S. Revolving
Credit Commitments are in effect) is less than the aggregate amount of the U.S. Revolving Credit
Commitments; provided that, if the U.S. Revolving Credit Commitments are terminated on a
day other than the first day of a fiscal quarter, then any such fee payable for the fiscal quarter
in which termination shall occur shall be paid on the effective date of such termination and shall
be based upon the number of days that have elapsed during such period. The Canadian Borrower shall
pay to the Administrative Agent for the account of each Canadian Appropriate Lender in accordance
with its Applicable Percentage, a commitment fee equal to the Applicable Commitment Fee Rate
divided by three hundred and sixty (360) days and multiplied by the number of days
in the fiscal quarter and then multiplied by the amount, if any, by which the Average
Revolving Credit Facility Balance with respect to the Canadian Revolving Credit Facility for such
fiscal quarter (or portion thereof that the Canadian Revolving Credit Commitments are in effect) is
less than the aggregate amount of the Canadian Revolving Credit Commitments; provided that,
if the Canadian Revolving Credit Commitments are terminated on a day other than the first day of a
fiscal quarter, then any such fee payable for the fiscal quarter in which termination shall occur
shall be paid on the effective date of such termination and shall be based upon the number of days
that have elapsed during such period. The commitment fees shall be due and payable quarterly in
arrears on the first Business Day of each April, July, October and January, commencing with the
first such date to occur after the Closing Date, on the

 

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last day of the Availability Period for the Revolving Credit Facility (and, if applicable,
thereafter on demand). The commitment fee shall be calculated quarterly in arrears and if there is
any change in the Applicable Commitment Fee Rate during any quarter, the daily amount shall be
computed and multiplied by the Applicable Commitment Fee Rate for each period during which such
Applicable Commitment Fee Rate was in effect, with effect from the date of the change in such rate
pursuant to the definition of Applicable Commitment Fee Rate. The commitment fee shall accrue at
all times, including at any time during which one or more of the conditions in Article IV
is not met.

          (b) Other Fees. (i) The Borrowers shall pay to the Bookrunner, the Administrative
Agent and the Collateral Agent for their own respective accounts fees in the amounts and at the
times specified in the Fee Letter. Such fees shall be fully earned when paid and shall not be
refundable for any reason whatsoever.

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

          SECTION 2.10. Computation of Interest and Fees; Retroactive Adjustments of Applicable
Rate. (a) All computations of interest for Base Rate Loans, Canadian Base Rate Loans and
Canadian Prime Rate Loans when the Base Rate, Canadian Base Rate and/or Canadian Prime Rate is
determined by Credit Suisse’s or CS Toronto’s, as applicable, “prime rate” or “base rate”, and BA
Rate Loans shall be made on the basis of a year of 365/366 days and actual days elapsed. All other
computations of interest and fees shall be made on the basis of a 360-day year and actual days
elapsed (which results in more fees or interest, as applicable, being paid than if computed on the
basis of a 365-day year). Interest shall accrue on each Loan for the day on which the Loan is
made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such
portion is paid, provided that any Loan that is repaid on the same day on which it is made shall,
subject to Section 2.12(a), bear interest for one day. Each determination by the
Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all
purposes, absent manifest error. For the purposes of the Interest Act (Canada), (i) whenever any
interest or fees under this Agreement or any other Loan Document is calculated using a rate based
on a year of 360 days, the rate determined pursuant to such calculation, when expressed as an
annual rate, is equivalent to (x) the applicable rate, (y) multiplied by the actual number of days
in the calendar year commencing on the date such calculation is being made, and (z) divided by 360,
(ii) the principle of deemed reinvestment of interest does not apply to any interest calculation
under this Agreement, and (iii) the rates of interest stipulated in this Agreement are intended to
be nominal rates and not effective rates or yields.

          (b) If, as a result of any restatement of or other adjustment to the financial statements of
the Specified U.S. Borrower or for any other reason, the Borrowers or the Lenders determine that
(i) Average Availability as calculated by a Borrower as of any applicable date was inaccurate and
(ii) a proper calculation of the Average Availability would have resulted in higher pricing for
such period, the applicable Borrowers shall immediately and retroactively be obligated to pay to
the Administrative Agent for the account of the applicable Lenders or L/C Issuers, as the case may
be, promptly on

 

95

demand by the Administrative Agent (or, after the occurrence of an actual or deemed entry of
an order for relief with respect to any such Borrower under any Debtor Relief Laws, automatically
and without further action by the Administrative Agent, any Lender or any L/C Issuer), an amount
equal to the excess of the amount of interest and fees that should have been paid for such period
over the amount of interest and fees actually paid for such period. This paragraph shall not limit
the rights of the Administrative Agent, any Lender or any L/C Issuer, as the case may be, under
Section 2.03(b)(iii), 2.03(h) or 2.08(b) or under Article VIII.
The Borrowers’ obligations under this paragraph shall survive the termination of the Aggregate
Commitments and the repayment of all other Obligations hereunder.

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

          (b) In addition to the accounts and records referred to in Section 2.11(a), each
Lender and the Administrative Agent shall maintain in accordance with its usual practice accounts
or records evidencing the purchases and sales by such Lender of participations in Letters of Credit
and Swing Line Loans. In the event of any conflict between the accounts and records maintained by
the Administrative Agent and the accounts and records of any Lender in respect of such matters, the
accounts and records of the Administrative Agent shall control in the absence of manifest error.

          SECTION 2.12. Payments Generally; Administrative Agent’s Clawback. (a)
General. All payments to be made by the Borrowers shall be made without condition or
deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly
provided herein, all payments by the Borrowers hereunder shall be made to the Administrative Agent,
for the account of the Appropriate Lenders to which such payment is owed, at the Administrative
Agent’s Office in Dollars or Canadian Dollars, as the case may be, and in immediately available
funds not later than 2:00 p.m. on the date specified herein. The Administrative Agent will
promptly distribute to each Appropriate Lender its Applicable Percentage in respect of the relevant
Facility (or other applicable share as provided herein) of such payment in like funds as received
by wire transfer to such Lender’s Lending Office. All payments received by the Administrative
Agent after 2:00 p.m. shall, in the Administrative

 

96

Agent’s sole discretion, be deemed received on the next succeeding Business Day and any
applicable interest or fee shall continue to accrue. Except as otherwise provided, if any payment
to be made by a Borrower shall come due on a day other than a Business Day, payment shall be made
on the next following Business Day, and such extension of time shall be reflected on computing
interest or fees, as the case may be. Any payment required to be made by the Administrative Agent
hereunder shall be deemed to have been made by the time required if the Administrative Agent shall,
at or before such time, have taken the necessary steps to make such payment in accordance with the
regulations or operating procedures of the clearing or settlement system used by the Administrative
Agent to make such payment.

          (b) (i) Funding by Lenders; Presumption by Administrative Agent. Unless the
Administrative Agent shall have received notice from a Lender prior to the proposed date of any
Borrowing of Eurodollar Rate Loans or BA Rate Loans (or, in the case of any Borrowing of Base Rate
Loans, Canadian Base Rate Loans or Canadian Prime Rate Loans, prior to 12:00 noon on the date of
such Borrowing) that such Lender will not make available to the Administrative Agent such Lender’s
share of such Borrowing, the Administrative Agent may assume that such Lender has made such share
available on such date in accordance with Section 2.02 (or, in the case of a Borrowing of
Base Rate Loans, Canadian Base Rate Loans or Canadian Prime Rate Loans, that such Lender has made
such share available in accordance with and at the time required by Section 2.02) and may,
in reliance upon such assumption, make available to the applicable Borrower a corresponding amount.
In such event, if a Lender has not in fact made its share of the applicable Borrowing available to
the Administrative Agent, then the applicable Lender and the applicable Borrower severally agree to
pay to the Administrative Agent forthwith on demand such corresponding amount in immediately
available funds with interest thereon, for each day from and including the date such amount is made
available to such Borrower to but excluding the date of payment to the Administrative Agent, at (A)
in the case of a payment to be made by such Lender, the Overnight Rate, plus any administrative,
processing or similar fees customarily charged by the Administrative Agent in connection with the
foregoing, and (B) in the case of a payment to be made by a Borrower, the interest rate applicable
to Base Rate Loans, Canadian Base Rate Loans or Canadian Prime Rate Loans, as applicable. If such
Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an
overlapping period, the Administrative Agent shall promptly remit to such Borrower the amount of
such interest paid by such Borrower for such period. If such Lender pays its share of the
applicable Borrowing to the Administrative Agent, then the amount so paid shall constitute such
Lender’s Loan included in such Borrowing. Any payment by a Borrower shall be without prejudice to
any claim such Borrower may have against a Lender that shall have failed to make such payment to
the Administrative Agent.

          (ii) Payments by Borrower; Presumptions by Administrative Agent. Unless the
Administrative Agent shall have received notice from a Borrower prior to the time at which any
payment is due to the Administrative Agent for the account of the Lenders or the L/C Issuers
hereunder that such Borrower will not make such payment, the Administrative Agent may assume that
such Borrower has made such payment on such date in accordance herewith and may, in reliance upon
such assumption, distribute to the Appropriate Lenders or the applicable L/C Issuer, as the case
may be, the amount

 

97

due. In such event, if such Borrower has not in fact made such payment, then each of the
Appropriate Lenders or the applicable L/C Issuer, as the case may be, severally agrees to repay to
the Administrative Agent forthwith on demand the amount so distributed to such Lender or such L/C
Issuer, in immediately available funds with interest thereon, for each day from and including the
date such amount is distributed to it to but excluding the date of payment to the Administrative
Agent, at the Overnight Rate.

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

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

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

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

          (f) Insufficient Funds. If at any time insufficient funds are received by and
available to the Administrative Agent to pay fully all amounts of principal, L/C Borrowings,
interest and fees then due hereunder, such funds shall be applied (in each case with respect to the
applicable Facility or Facilities) (i) first, toward payment of interest and fees then due
hereunder (other than in respect of Bank Product Debt), ratably among the parties entitled thereto
in accordance with the amounts of interest and fees then due to such parties, (ii) second,
toward payment of the principal amount of any Overadvance Loans, ratably among the parties entitled
thereto in accordance with the amounts of principal then due to such parties and (iii)
third, toward payment of principal, L/C Borrowings and other obligations in respect of Bank
Product Debt then due hereunder, ratably among the parties entitled thereto in accordance with the
amounts of principal, L/C Borrowings and Bank Product Debt then due to such parties;
provided, however, that the proceeds from the foreclosure of any Collateral shall
be applied as set forth in the Intercreditor Agreement.

 

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          SECTION 2.13. Sharing of Payments by Lenders. If any Lender shall, by exercising any
right of setoff or counterclaim or otherwise, obtain payment in respect of (a) Obligations in
respect of any the Facilities due and payable to such Lender hereunder and under the other Loan
Documents at such time in excess of its ratable share (according to the proportion of (i) the
amount of such Obligations due and payable to such Lender at such time to (ii) the aggregate amount
of the Obligations in respect of the Facilities due and payable to all Lenders hereunder and under
the other Loan Documents at such time) of payments on account of the Obligations in respect of the
Facilities due and payable to all Lenders hereunder and under the other Loan Documents at such time
obtained by all the Lenders at such time or (b) Obligations in respect of any of the Facilities
owing (but not due and payable) to such Lender hereunder and under the other Loan Documents at such
time in excess of its ratable share (according to the proportion of (i) the amount of such
Obligations owing (but not due and payable) to such Lender at such time to (ii) the aggregate
amount of the Obligations in respect of the Facilities owing (but not due and payable) to all
Lenders hereunder and under the other Loan Parties at such time) of payment on account of the
Obligations in respect of the Facilities owing (but not due and payable) to all Lenders hereunder
and under the other Loan Documents at such time obtained by all of the Lenders at such time 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 subparticipations
in L/C Obligations and Swing Line Loans of the other Lenders, or make such other adjustments as
shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably
in accordance with the aggregate amount of Obligations in respect of the Facilities then due and
payable to the Lenders or owing (but not due and payable) to the Lenders, as the case may be;
provided that prior to the CAM Exchange Date, each Lender shall only purchase
participations in Loans, L/C Obligations and Swing Line Loans under the Facility with respect to
which they hold a Commitment; and provided further that:

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

     (ii) the provisions of this Section shall not be construed to apply to (A) any payment
made by a Borrower pursuant to and in accordance with the express terms of this Agreement
or (B) any payment obtained by a Lender as consideration for the assignment of or sale of a
participation in any of its Loans or subparticipations in L/C Obligations or Swing Line
Loans to any assignee or participant, other than to a Borrower or any Subsidiary thereof
(as to which the provisions of this Section 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 exercise against such Loan Party rights of setoff and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of such Loan Party in the
amount of such participation.

 

99

          SECTION 2.14. Nature of Obligations. (a) The U.S. Borrowers agree that all U.S.
Obligations of each U.S. Borrower under or in respect of this Agreement or any other Loan Document
shall be joint and several obligations of all the U.S. Borrowers.

          (b) Each U.S. Borrower waives presentment to, demand of payment from and protest to the other
U.S. Borrowers of any of the U.S. Obligations, and also waives notice of acceptance of its
Obligations and notice of protest for nonpayment. The Obligations of a U.S. Borrower hereunder
shall not be affected by (i) the failure of any Lender or the Administrative Agent to assert any
claim or demand or to enforce any right or remedy against the other U.S. Borrowers under the
provisions of this Agreement or any of the other Loan Documents or otherwise; (ii) any rescission,
waiver, amendment or modification of any of the terms or provisions of this Agreement, any of the
other Loan Documents or any other agreement; or (iii) the failure of any Lender to exercise any
right or remedy against any other U.S. Borrower.

          (c) Each U.S. Borrower further agrees that its agreement hereunder constitutes a promise of
payment when due and not of collection, and waives any right to require that any resort be had by
any Lender to any balance of any deposit account or credit on the books of any Lender in favor of
any other U.S. Borrower or any other Person.

          (d) The Obligations of each U.S. Borrower hereunder shall not be subject to any reduction,
limitation, impairment or termination for any reason, including, without limitation, compromise,
and shall not be subject to any defense or setoff, counterclaim, recoupment or termination
whatsoever by reason of the invalidity, illegality or unenforceability of the Obligations of the
other U.S. Borrowers or otherwise. Without limiting the generality of the foregoing, the
Obligations of each U.S. Borrower hereunder shall not be discharged or impaired or otherwise
affected by the failure of the Administrative Agent or any Lender to assert any claim or demand or
to enforce any remedy under this Agreement or under any other Loan Document or any other agreement,
by any waiver or modification in respect of any thereof, by any default, failure or delay, willful
or otherwise, in the performance of the Obligations of the other U.S. Borrowers, or by any other
act or omission which may or might in any manner or to any extent vary the risk of such Borrower or
otherwise operate as a discharge of such Borrower as a matter of law or equity.

          (e) Each U.S. Borrower further agrees that its Obligations hereunder shall continue to be
effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of
principal of or interest on any Obligation of the other U.S. Borrowers is rescinded or must
otherwise be restored by the Administrative Agent or any Lender upon the occurrence of any event
described in Sections 8.01(f) or (g) in respect of such Borrower, any of the other
U.S. Borrowers or otherwise.

          (f) In furtherance of the foregoing and not in limitation of any other right which the
Administrative Agent or any Lender may have at law or in equity against any U.S. Borrower by virtue
hereof, upon the failure of a U.S. Borrower to pay any Obligation when and as the same shall become
due, whether at maturity, by acceleration,

 

100

after notice of prepayment or otherwise, each other U.S. Borrower hereby promises to and will,
upon receipt of written demand by the Administrative Agent, forthwith pay, or cause to be paid, in
cash the amount of such unpaid U.S. Obligations, and thereupon each U.S. Appropriate Lender shall,
in a reasonable manner, assign the amount of the U.S. Obligations of the other U.S. Borrowers owed
to it and paid by such Borrower pursuant to this guarantee to such Borrower, such assignment to be
pro tanto to the extent to which the Obligations in question were discharged by such Borrower, or
make such disposition thereof as such Borrower shall direct (all without recourse to any Lender and
without any representation or warranty by any Lender).

          (g) Upon payment by a U.S. Borrower of any amount as provided above, all rights of such
Borrower against another U.S. Borrower, as the case may be, arising as a result thereof by way of
right of subrogation or otherwise shall in all respects be subordinated and junior in right of
payment to the prior indefeasible payment in full of all the U.S. Obligations to the U.S. Revolving
Credit Lenders.

          (h) Each U.S. Borrower, the Administrative Agent and each other Secured Party, hereby confirms
that it is the intention of all such Persons that the agreement and the Obligations of each U.S.
Borrower hereunder not constitute a fraudulent transfer or conveyance for purposes of Debtor Relief
Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar
foreign, federal or state law to the extent applicable to the agreement and the Obligations of each
U.S. Borrower hereunder. To effectuate the foregoing intention, the Administrative Agent, the
other Secured Parties and the U.S. Borrowers hereby irrevocably agree that the Obligations of each
U.S. Borrower hereunder shall be limited to the maximum amount as will result in the Obligations of
such U.S. Borrower hereunder not constituting a fraudulent transfer or conveyance. Each U.S.
Borrower hereby unconditionally and irrevocably agrees that in the event any payment shall be
required to be made to any Secured Party, such U.S. Borrower will contribute, to the maximum extent
permitted by law, such amounts to each other U.S. Borrower so as to maximize the aggregate amount
paid to the Secured Parties under or in respect of the Loan Documents.

          SECTION 2.15. Borrower Agent. Each Borrower hereby irrevocably appoints the Specified
U.S. Borrower, and the Specified U.S. Borrower agrees to act under this Agreement, as the agent and
representative of itself and each other Borrower for all purposes under this Agreement, including
requesting Borrowings, selecting whether any Loan or portion thereof is to bear interest as a Base
Rate Loan, a Canadian Base Rate Loan, a Canadian Prime Rate Loan or a BA Rate Loan, and receiving
account statements and other notices and communications to Borrowers (or any of them) from the
Administrative Agent. The Agents may rely, and shall be fully protected in relying, on any
Committed Loan Notice, disbursement instructions, reports, information, Borrowing Base Certificate
or any other notice or communication made or given by the Borrower Agent, whether in its own name,
on behalf of any Borrower or on behalf of “the Borrowers,” and the Agents shall have no obligation
to make any inquiry or request any confirmation from or on behalf of any other Borrower as to the
binding effect on such Borrower of any such Committed Loan Notice, instruction, report,
information, Borrowing Base Certificate or other notice or communication from the Borrower

 

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Agent, nor shall any joint and several character of the Borrowers’ liability for the
Obligations be affected.

          SECTION 2.16. Incremental Revolving Credit Commitments. (a) The Specified U.S.
Borrower may, by written notice to the Administrative Agent (signed by a Responsible Officer of the
Specified U.S. Borrower) from time to time, request Incremental Revolving Credit Commitments in an
aggregate amount not to exceed $65,000,0001 from one or more Incremental Revolving
Credit Lenders (which may include any existing Lender) willing to provide such Incremental
Revolving Credit Commitments in their own discretion; provided that each Incremental
Revolving Credit Lender shall be subject to the approval of the Administrative Agent and the
Issuing Bank (which approvals shall not be unreasonably withheld) unless such Incremental Revolving
Credit Lender is a Lender, an Affiliate of a Lender or an Approved Fund. Such notice shall set
forth (i) the amount of the Incremental Revolving Credit Commitments being requested, (ii) whether
the request is for U.S. Revolving Credit Commitments or Canadian Revolving Commitments and (iii)
the date on which such Incremental Revolving Credit Commitments are requested to become effective.

     (b) The Borrowers and each Incremental Revolving Credit Lender shall execute and deliver to
the Administrative Agent an Incremental Assumption Agreement and such other documentation as the
Administrative Agent shall reasonably specify to evidence the Incremental Revolving Credit
Commitment of such Incremental Revolving Credit Lender. Each Incremental Revolving Credit
Commitment shall be on the same terms as the Revolving Credit Commitments.

     (c) Each of the parties hereto hereby agrees that, upon the effectiveness of any Incremental
Assumption Agreement, this Agreement shall be deemed amended to the extent (but only to the extent)
necessary to reflect the existence and terms of the Incremental Revolving Credit Commitments
evidenced thereby as provided for in Section 10.1. Any such deemed amendment may be
memorialized in writing by the Administrative Agent with the Borrowers’ consent (not to be
unreasonably withheld) and furnished to the other parties hereto.

     (d) Notwithstanding the foregoing, no Incremental Revolving Credit Commitment shall become
effective under this Section 2.16 unless (i) on the date of such effectiveness, the
conditions set forth in Section 4.02(a) and (b) shall be satisfied and the
Administrative Agent shall have received a certificate to that effect dated such date and executed
by a Responsible Officer of the Specified U.S. Borrower, (ii) on the date of such effectiveness,
the Specified U.S. Borrower shall be in pro forma compliance with the covenant set forth in
Section 7.11 (whether or not such covenant is otherwise applicable under this Agreement at
such time) and (iii) the Administrative Agent shall have received customary legal opinions, board
resolutions and other customary closing certificates and documentation as required by the relevant
Incremental Assumption Agreement and, to the extent required by the Administrative Agent,
consistent with those delivered on the

 

			
	1	 	This assumes there are $135 of Aggregate
Commitments on the Closing Date.

 

102

Closing Date under Section 4.01 and such additional customary documents and filings
(including amendments to the Mortgages and other Collateral Documents and title endorsement
bringdowns) as the Agents may reasonably require to assure that the Revolving Credit Loans in
respect of Incremental Revolving Credit Commitments are secured by the Collateral ratably with the
existing Revolving Credit Loans.

     (e) Each of the parties hereto hereby agrees that the Administrative Agent may take any and
all action as may be reasonably necessary to ensure that, after giving effect to any increase
pursuant to this Section 2.16, the outstanding Revolving Credit Loans (if any) are held by
the Revolving Credit Lenders in accordance with their new Applicable Percentages. This may be
accomplished at the discretion of the Administrative Agent, following consultation with the
Specified U.S. Borrower, (i) by requiring the outstanding Revolving Credit Loans to be prepaid with
the proceeds of a new Revolving Credit Borrowing, (ii) by causing non-increasing Revolving Credit
Lenders to assign portions of their outstanding Revolving Credit Loans to new or increasing
Revolving Credit Lenders or (iii) by a combination of the foregoing. Any prepayment or assignment
described in this paragraph (e) shall be subject to Section 3.05, but shall otherwise be
without premium or penalty.

ARTICLE III

Taxes, Yield Protection and Illegality

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

          (ii) If any Borrower or the Administrative Agent shall be required by the Code or other
applicable Law to withhold or deduct any Taxes, including both United States Federal backup
withholding and withholding taxes, from any payment, then (A) such Borrower or the Administrative
Agent shall withhold or make such deductions as are determined by such Borrower or the
Administrative Agent to be required based upon the information and documentation it has received
pursuant to subsection (e) below, (B) such Borrower or the Administrative Agent shall
timely pay the full amount withheld or deducted to the relevant Governmental Authority in
accordance with the Code or other applicable Law, and (C) to the extent that the withholding or
deduction is made on account of Indemnified Taxes or Other Taxes, the sum payable by such Borrower
shall be increased as necessary so that after any required withholding or the making of all
required deductions attributable to an Indemnified Tax or Other Tax (including deductions
applicable to additional sums payable under this Section) the Administrative

 

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Agent, Lender or L/C Issuer, as the case may be, receives an amount equal to the sum it would
have received had no such withholding or deduction been made.

          (b) Payment of Other Taxes by the Loan Parties. Without limiting the provisions of
subsection (a) above, each Loan Party shall timely pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.

          (c) Tax Indemnifications. (i) Without limiting the provisions of subsection
(a) or (b) above, each Borrower shall, and does hereby, jointly and severally,
indemnify the Administrative Agent, each Lender and each L/C Issuer, and shall make payment in
respect thereof within 10 Business 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 such L/C Issuer, 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 Governmental Authority. A
certificate as to the amount of any such payment or liability delivered to the applicable Borrower
by a Lender or an L/C Issuer (with a copy to the Administrative Agent), or by the Administrative
Agent on its own behalf or on behalf of a Lender or an L/C Issuer, shall be conclusive absent
demonstrable manifest error.

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

          (d) Evidence of Payments. Upon request by a Borrower or the Administrative Agent, as
the case may be, after any payment of Taxes by such Borrower or the Administrative Agent to a
Governmental Authority as provided in this Section 3.01, such Borrower shall deliver to the
Administrative Agent or the Administrative Agent shall deliver to such Borrower, as the case may
be, the original or a certified copy of a

 

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receipt issued by such Governmental Authority evidencing such payment, a copy of any return
required by Laws to report such payment or other evidence of such payment reasonably satisfactory
to such Borrower or the Administrative Agent.

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

          (ii) Without limiting the generality of the foregoing, if a Borrower is resident for tax
purposes in the United States,

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

     (B) each Foreign Lender that is entitled under the Code or any applicable
treaty to an exemption from or reduction of withholding tax with respect to
payments hereunder or under any other Loan Document shall deliver on or before the
date such Lender becomes a party to this Agreement (or, in the case of a
Participant, on or before the date such Participant purchases the related
participation) and promptly upon the obsolescence, expiration or invalidity of any
form previously delivered by such Foreign Lender to such Borrower and the
Administrative Agent (in such number of copies as shall be requested by the
recipient) on or prior to the date on which such Foreign Lender becomes a Lender
(other than as a result of a CAM Exchange) under this Agreement (and from time to
time thereafter upon the request of such Borrower or the Administrative Agent, but
only if such Foreign Lender is legally entitled to do so), whichever of the
following is applicable:

 

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     (I) duly executed, properly completed originals of Internal Revenue
Service Form W-8BEN or any successor thereto claiming eligibility for
benefits of an income tax treaty to which the United States is a party,

     (II) duly executed, properly completed originals of Internal Revenue
Service Form W-8ECI or any successor thereto,

     (III) duly executed, properly completed originals of Internal Revenue
Service Form W-8IMY or any successor thereto and all required supporting
documentation,

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

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

          (iii) Each Lender (except an assignee Lender pursuant to a CAM Exchange under Section
8.04 (in which case any such Lender shall comply with this Section 3.01(e)(iii) to the
extent practicable)) shall promptly (A) notify the applicable Borrower and the Administrative Agent
of any change in circumstances which would modify or render invalid any claimed exemption or
reduction, and (B) take such steps as shall not be materially disadvantageous to it, in the
reasonable judgment of such Lender, and as may be reasonably necessary (including the
re-designation of its Lending Office) to avoid any requirement of applicable Laws of any
jurisdiction that such Borrower or the Administrative Agent make any withholding or deduction for
taxes from amounts payable to such Lender.

          (f) Treatment of Certain Refunds. Unless required by applicable Laws, at no time
shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of a
Lender or an L/C Issuer, or have any obligation to pay to any Lender or any L/C Issuer, any refund
of Taxes withheld or deducted from funds paid for the account of such Lender or such L/C Issuer, as
the case may be. If the Administrative Agent, any Lender or any L/C Issuer determines, in its
reasonable discretion, that it has received a

 

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refund of any Taxes or Other Taxes as to which it has been indemnified by a Borrower with
respect to which a Borrower has paid additional amounts pursuant to this Section, it shall pay to
such Borrower an amount equal to such refund (but only to the extent of indemnity payments made, or
additional amounts paid, by such Borrower under this Section with respect to the Taxes or Other
Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent,
such Lender or such L/C Issuer, as the case may be, and without interest (other than any interest
paid by the relevant Governmental Authority with respect to such refund), provided that
such Borrower, upon the request of the Administrative Agent, such Lender or such L/C Issuer, agrees
to repay the amount paid over to such Borrower (plus any penalties, interest or other charges
imposed by the relevant Governmental Authority) to the Administrative Agent, such Lender or such
L/C Issuer if the Administrative Agent, such Lender or such L/C Issuer is required to repay such
refund to such Governmental Authority. This subsection shall not be construed to require the
Administrative Agent, any Lender or any L/C Issuer to make available its tax returns (or any other
information relating to its taxes that it deems confidential) to any Borrower or any other Person.

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

          SECTION 3.03. Inability to Determine Rates. If the Required Lenders determine that
for any reason in connection with any request for a Eurodollar Rate Loan or a BA Rate Loan or a
conversion to or continuation thereof that (a) Dollar deposits are not being offered to banks in
the London interbank eurodollar market for the applicable amount and Interest Period of such
Eurodollar Rate Loan, (b) adequate and reasonable means do not exist for determining the Eurodollar
Rate or the BA Rate for any requested Interest Period with respect to a proposed Eurodollar Rate
Loan or BA Rate Loan, (c) the Reuters Screen CDOR Page is not available for the timely
determination of the BA Rate, and the BA Rate cannot otherwise be determined in a timely manner in
accordance with the definition of “BA Rate”, or

 

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(d) the Eurodollar Rate or BA Rate for any requested Interest Period with respect to a
proposed Eurodollar Rate Loan or BA Rate Loan does not adequately and fairly reflect the cost to
such Lenders of funding such Loan, the Administrative Agent will promptly so notify the applicable
Borrowers and each Lender. Thereafter, the obligation of the Lenders to make or maintain
Eurodollar Rate Loans or BA Rate Loans shall be suspended until the Administrative Agent (upon the
instruction of the Required Lenders) revokes such notice. Upon receipt of such notice, the
applicable Borrower may revoke any pending request for a Borrowing of, conversion to or
continuation of Eurodollar Rate Loans or BA Rate Loans or, failing that, will be deemed to have
converted such request into a request for a Committed Borrowing of Base Rate Loans, Canadian Base
Rate Loans or Canadian Prime Rate Loans, as applicable, in the amount specified therein.

          SECTION 3.04. Increased Costs; Reserves on Eurodollar Rate Loans. (a) Increased
Costs Generally. Except for Taxes, which are covered in Section 3.01, 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
contemplated by Section 3.04(e)) or any L/C Issuer; or

     (ii) impose on any Lender or any L/C Issuer or the London interbank market any other
condition, cost or expense affecting this Agreement or Eurodollar Rate Loans or BA Rate
Loans 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 Eurodollar Rate Loan or BA Rate Loan (or of maintaining its obligation to make any
such Loan), or to increase the cost to such Lender or such L/C Issuer of participating in, issuing
or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue
any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender or
such L/C Issuer hereunder (whether of principal, interest or any other amount) then, upon request
of such Lender or such L/C Issuer, the applicable Borrower will pay to such Lender or such L/C
Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or
such L/C Issuer, as the case may be, for such additional costs incurred or reduction suffered.

          (b) Capital Requirements. If any Lender or any L/C Issuer determines that any Change
in Law affecting such Lender or such L/C Issuer or any Lending Office of such Lender or such
Lender’s or such L/C Issuer’s holding company, if any, regarding capital requirements has or would
have the effect of reducing the rate of return on such Lender’s or such L/C Issuer’s capital or on
the capital of such Lender’s or such L/C Issuer’s holding company, if any, as a consequence of this
Agreement, the Commitments of such Lender or the Loans made by, or participations in Letters of
Credit held by, such Lender, or the Letters of Credit issued by such L/C Issuer, to a level below
that which such Lender or such L/C Issuer or such Lender’s or such L/C Issuer’s holding company

 

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could have achieved but for such Change in Law (taking into consideration such Lender’s or
such L/C Issuer’s policies and the policies of such Lender’s or such L/C Issuer’s holding company
with respect to capital adequacy), then from time to time the applicable Borrower will pay to such
Lender or such L/C Issuer, as the case may be, such additional amount or amounts as will compensate
such Lender or such L/C Issuer or such Lender’s or such L/C Issuer’s holding company for any such
reduction suffered.

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

          (d) Delay in Requests. Failure or delay on the part of any Lender or any L/C Issuer
to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a
waiver of such Lender’s or such L/C Issuer’s right to demand such compensation, provided
that a Borrower shall not be required to compensate a Lender or an L/C Issuer pursuant to the
foregoing provisions of this Section for any increased costs incurred or reductions suffered more
than nine months prior to the date that such Lender or such L/C Issuer, as the case may be,
notifies such Borrower of the Change in Law giving rise to such increased costs or reductions and
of such Lender’s or such L/C Issuer’s intention to claim compensation therefor (except that, if the
Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month
period referred to above shall be extended to include the period of retroactive effect thereof);
provided further that, a Borrower shall not be required to compensate a Lender or
an L/C Issuer for increased costs or reductions suffered more than nine months after such Change in
Law, except that in the case of any such change having retroactive effect, such period shall be
extended until nine months after the Lender becomes aware of such change.

          (e) Reserves on Eurodollar Rate Loans. Each applicable Borrower shall pay to each
Appropriate Lender, as long as such Lender shall be required to maintain reserves with respect to
liabilities or assets consisting of or including Eurocurrency funds or deposits (currently known as
“Eurocurrency liabilities”), additional interest on the unpaid principal amount of each Eurodollar
Rate Loan equal to the actual costs of such reserves allocated to such Loan by such Lender (as
determined by such Lender in good faith, which determination shall be conclusive), which shall be
due and payable on each date on which interest is payable on such Loan, provided a Borrower
shall have received at least 10 days’ prior notice (with a copy to the Administrative Agent) of
such additional interest from such Lender. If a Lender fails to give notice 10 days prior to the
relevant Interest Payment Date, such additional interest shall be due and payable 10 days from
receipt of such notice.

          SECTION 3.05. Compensation for Losses. Upon demand of any Lender (with a copy to the
Administrative Agent) from time to time, the applicable Borrower shall promptly

 

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compensate such Lender for and hold such Lender harmless from any loss, cost or expense
incurred by it as a result of:

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

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

     (c) any assignment of a Eurodollar Rate Loan or BA Rate Loan on a day other than the
last day of the Interest Period therefor as a result of a request by such Borrower pursuant
to Section 10.13; or

     (d) the occurrence of a CAM Exchange pursuant to Section 8.04;

but excluding any loss of anticipated profits or and any loss or expense arising from the
liquidation or reemployment of funds obtained by it to maintain such Loan or from fees payable to
terminate the deposits from which such funds were obtained. The Borrowers shall also pay any
customary administrative fees charged by such Lender in connection with the foregoing.

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

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

 

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Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Appropriate
Lender in connection with any such designation or assignment.

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

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

ARTICLE IV

Conditions Precedent to Credit Extensions

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

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

     (i) executed counterparts of this Agreement in sufficient number for distribution to
the Administrative Agent, the Collateral Agent and each Borrower;

     (ii) a Note executed by each applicable Borrower in favor of each Lender requesting a
Note;

     (iii) the Intercreditor Agreement duly executed by the Collateral Agent, the Trustee
and the Loan Parties;

     (iv) the U.S. Guaranty duly executed by Holdings, the Specified U.S. Borrower and each
U.S. Subsidiary Guarantor;

     (v) (1) the U.S. Security Agreement duly executed by the Administrative Agent, the
Collateral Agent and each U.S. Loan Party and (2) the Canadian Security Agreement duly
executed by the Administrative Agent, the Collateral Agent and each Canadian Loan Party, in
each case together with:

     (A) written evidence reasonably satisfactory to the Administrative Agent that
certificates representing the Pledged Equity referred to therein accompanied by
undated stock powers executed in blank and instruments evidencing the Pledged Debt
indorsed in blank have been delivered to the

 

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Noteholder Collateral Agent (as defined therein), acting as gratuitous bailee
of the Collateral Agent,

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

     (C) completed requests for information, dated on or before the date of the
initial Credit Extension, listing all effective financing statements filed in the
jurisdictions referred to in clause (B) above that name any Loan Party as debtor,
together with copies of such other financing statements, and such information shall
reveal no material judgments and no Liens on the Collateral except Liens permitted
under Section 7.01 hereunder or Liens discharged on or prior to the Closing
Date pursuant to a pay-off letter,

     (D) evidence of the completion of all other actions, recordings and filings of
or with respect to the Security Agreement that the Collateral Agent may deem
necessary or desirable in order to perfect the Liens created thereby,

     (E) evidence that all other action that the Collateral Agent may deem
necessary or desirable in order to perfect the Liens created under the Security
Agreement has been taken (including receipt of duly executed payoff letters, UCC-3
termination statements and landlords’ and bailees’ waiver and consent agreements);
and

     (F) the Perfection Certificate, along with completed Schedules thereto, duly
executed by Holdings, the Specified U.S. Borrower and the Canadian Borrower;

provided, that, notwithstanding anything in this Section 4.01(a)(v) to the
contrary, solely with respect to any non-U.S. Collateral, if the perfection of the Collateral
Agent’s security interest in such Collateral may not be accomplished prior to the Closing Date
without undue burden or expense and without the taking of any action that goes beyond commercial
reasonableness, then the delivery of documents and instruments for perfection of such security
interests shall not constitute a condition precedent to the availability of the Revolving Credit
Facility to the U.S. Borrowers (but shall continue to be conditions precedent to the availability
of the Revolving Credit Facility to the Canadian Borrower), and the Loan Parties hereby agree to
deliver or cause to be delivered such documents and instruments, and take or cause to be taken such
other actions as may be required to perfect such security interests within 30 days after the
Closing Date; provided further that in each case, the Administrative Agent may, in
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     (vi) deeds of trust, trust deeds, deeds to secure debt, and mortgages, in
substantially the form of Exhibit H (with such changes as may be reasonably
satisfactory to the Administrative Agent and its counsel to account for local law matters)
and otherwise in form and substance reasonably satisfactory to the Administrative Agent and
covering the properties listed on Schedule 4.01(a)(vi) (together with the
Assignments of Leases and Rents referred to therein and each other mortgage delivered
pursuant to Section 6.12, in each case as amended, the “Mortgages”), duly
executed by the appropriate Loan Party, together with:

     (A) evidence that counterparts of the Mortgages have been duly executed,
acknowledged and delivered and are in form suitable for filing or recording in all
filing or recording offices that the Administrative Agent may deem necessary or
desirable in order to create a valid (junior only to the Liens securing the Senior
Secured Notes) and subsisting Lien on the property described therein in favor of
the Administrative Agent for the benefit of the Secured Parties and that all
filing, documentary, stamp, intangible and recording taxes and fees have been paid,

     (B) fully paid American Land Title Association Lender’s Extended Coverage
title insurance policies (the “Mortgage Policies”) in form and substance,
with endorsements (together with any of the following (i) a zoning endorsement,
(ii) a zoning compliance letter from the applicable municipality or (iii) a zoning
report from Planning and Zoning Resources Corporation, in each case satisfactory to
the Administrative Agent in its reasonable discretion) and in amounts acceptable to
the Administrative Agent in its reasonable discretion (such amount not to exceed
the value of the property in cases where tie-in endorsements are available or, if
not available, 10% of the value of such property), issued, coinsured and reinsured
by title insurers reasonably acceptable to the Administrative Agent, insuring the
Mortgages to be valid and subsisting Liens on the property described therein, free
and clear of all defects (including, but not limited to, mechanics’ and
materialmen’s Liens) and encumbrances, excepting only Permitted Encumbrances and
other Liens permitted under the Loan Documents, and providing for such other
affirmative insurance (including endorsements for future advances under the Loan
Documents, for mechanics’ and materialmen’s Liens and for zoning of the applicable
property) and such coinsurance and direct access reinsurance as the Administrative
Agent may reasonably deem necessary or desirable,

     (C) American Land Title Association/American Congress on Surveying and Mapping
form surveys, for which all necessary fees (where applicable) have been paid, and
dated (i) no more than 30 days before the day of the initial Credit Extension,
certified to the Administrative Agent and the issuer of the Mortgage Policies in a
manner satisfactory to the Administrative Agent by a land surveyor duly registered
and licensed in the States in which the property described in such surveys is
located and acceptable to the Administrative Agent or (ii) an earlier date together
with

 

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an affidavit from the applicable Borrower and survey coverage and survey
endorsements from title insurers reasonably acceptable to the Administrative
Agent), showing all buildings and other improvements, any off-site improvements,
the location of any easements, parking spaces, rights of way, building set-back
lines and other dimensional regulations and the absence of encroachments, either by
such improvements or on to such property, and other defects, other than Liens
permitted under Section 7.03(h), encroachments and other defects reasonably
acceptable to the Administrative Agent; provided that notwithstanding
anything in this clause (C) to the contrary, to the extent that the Mortgage
Policies for the properties listed on Schedule 4.01(a)(v)(i) hereto include
no survey exception without the need to comply with this clause (C), this clause
(C) shall not apply with respect to such property,

     (D) a favorable opinion of local counsel to the Loan Parties in the states in
which the Properties are located, addressed to the Administrative Agent, the
Collateral Agent and each Lender, with respect to the enforceability and perfection
of the Mortgages and any related fixture filings, substantially in the form of
Exhibit J-3 (with such changes as may be reasonably satisfactory to the
Administrative Agent and its counsel, including changes to account for local law
matters), and with respect to such other matters concerning the Loan Parties and
the Loan Documents as the Required Lenders may reasonably request,

     (E) evidence of the insurance required by the terms of the Mortgages, and

     (F) such other consents, agreements and confirmations of lessors and third
parties as the Collateral Agent may reasonably deem necessary or desirable and
evidence that all other actions that the Collateral Agent may reasonably deem
necessary or desirable in order to create valid and subsisting Liens on the
property described in the Mortgages has been taken;

provided, that, notwithstanding anything in this Section 4.01(a)(vi) to the
contrary, no mortgages, title insurance policies, surveys or other customary documentation relating
to real property Collateral (the “Real Estate Collateral Deliverables”), will be delivered
prior to or on the Closing Date and the delivery of such Real Estate Collateral Deliverable shall
not constitute a condition precedent to the availability of the Revolving Credit Facility, and the
Loan Parties hereby agree to deliver such Real Estate Collateral Deliverable (including related
legal opinions as to matters of (i) enforceability and perfection of the Mortgages and any related
fixture filings, and (ii) corporate formalities, as the Administrative Agent may reasonably
request) within the earlier of 120 days after the Closing Date and the time at which any such real
property Collateral secures, or Real Estate Collateral Deliverable is delivered in respect of, the
Senior Secured Notes; provided further that in each case, the Administrative Agent
may, in its sole discretion, grant extensions of such time period;

 

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     (vii) (1) an intellectual property security agreement, in substantially the form of
Exhibit B to the U.S. Security Agreement (together with each other intellectual
property security agreement and intellectual property security agreement supplement
delivered pursuant to Section 6.12, in each case as amended, the “U.S.
Intellectual Property Security Agreement”) and (2) an intellectual property security
agreement, in substantially the form of Exhibit B to the Canadian Security Agreement
(together with each other intellectual property security agreement and intellectual
property security agreement supplement delivered pursuant to Section 6.12, in each
case as amended, the “Canadian Intellectual Property Security Agreement”), duly
executed by each U.S. Loan Party and Canadian Loan Party, as applicable, together with
evidence that all action that the Collateral Agent may deem necessary or desirable in order
to perfect the Liens created under the U.S. Intellectual Property Security Agreement and
the Canadian Intellectual Property Security Agreement has been taken;

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

     (ix) such documents and certifications as the Agents may reasonably require to
evidence that each Loan Party is duly organized or formed, and that each Loan Party is
validly existing, in good standing and qualified to engage in business in each jurisdiction
where its ownership, lease or operation of properties or the conduct of its business
requires such qualification, except to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect;

     (x) a favorable opinion of Paul, Weiss, Rifkind, Wharton & Garrison LLP, counsel to
the Loan Parties, addressed to the Agents and each Lender, as to the matters set forth in
Exhibit J-1 and such other matters concerning the Loan Parties and the Loan
Documents as the Administrative Agent may reasonably request;

     (xi) a favorable opinion of Bennett Jones LLP, Canadian counsel to the Loan Parties,
addressed to the Agents and each Lender, as to the matters set forth in Exhibit J-2
and such other matters concerning the Canadian Loan Parties and the Canadian Loan Documents
as the Administrative Agent may reasonably request;

     (xii) favorable opinions of local counsel to the Loan Parties in the United States
(other than in such jurisdictions as are addressed in Schedule 6.20) addressed to
the Administrative Agent and each Lender, as to such matters concerning the Loan Parties
and the Loan Documents as the Administrative Agent may reasonably request;

 

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     (xiii) a certificate signed by a Responsible Officer of each of the Specified U.S.
Borrower and the Canadian Borrower certifying (A) that the conditions specified in
Sections 4.02(a), (b) and (d) have been satisfied and (B) that there has
been no event or circumstance since the date of the Audited Financial Statements that has
had or could be reasonably expected to have, either individually or in the aggregate, a
Material Adverse Effect;

     (xiv) the Administrative Agent shall have received certification as to the
consolidated financial condition and solvency of Holdings and its subsidiaries (after
giving effect to the Transaction and the incurrence of indebtedness related thereto), from
the chief financial officer of Holdings;

     (xv) evidence that all insurance required to be maintained pursuant to the Loan
Documents has been obtained and is in effect, together with endorsements naming the
Collateral Agent, on behalf of the Lenders, as an additional insured or loss payee, as the
case may be, under all insurance policies maintained with respect to the assets and
properties of the Loan Parties that constitutes Collateral (and the Required Lenders shall
be reasonably satisfied with the amount, types and terms and conditions of all insurance
maintained by the Loan Parties and their subsidiaries); and

     (xvi) such other assurances, certificates, documents, consents or opinions as the
Administrative Agent, the Collateral Agent, the L/C Issuers, the Swing Line Lenders or any
Lender reasonably may require.

          (b) (i) All fees (to the extent invoiced) required to be paid to the Agents (including the
fees and expenses of counsel (including any local counsel) for the Agents) and the Bookrunner on or
before the Closing Date shall have been paid and (ii) all fees required to be paid to the Lenders
on or before the Closing Date shall have been paid.

          (c) Receipt of all governmental, shareholder and third party consents and approvals necessary
in connection with the Transaction and the related financings and other transactions contemplated
hereby.

          (d) There shall not have occurred since December 31, 2007 any event or condition that has had
or could be reasonably expected, either individually or in the aggregate, to have a Material
Adverse Effect; provided that neither (i) the Company’s financial results for its fiscal
quarter ending March 29, 2008, as disclosed in the March 10-Q nor (ii) any event occurring prior to
March 29, 2008 as and to the extent specifically described in the March 10-Q as to which there has
been no adverse change in status or effect on the Company from that set forth in the March 10-Q
shall be deemed to constitute a Material Adverse Effect; provided further that the
March 29, 2008 financial results and such other events may be considered in determining whether a
Material Adverse Effect exists in a future period or on a cumulative basis.

          (e) The absence of any action, suit, investigation or proceeding pending or, to the knowledge
of the Borrowers, threatened in any court or before any arbitrator or

 

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governmental authority that could reasonably be expected to have a Material Adverse Effect.

          (f) The Administrative Agent shall have received a certificate from the chief financial
officer of Holdings setting forth computations in reasonable detail satisfactory to the
Administrative Agent demonstrating the incremental amount of Indebtedness the Specified U.S.
Borrower would be permitted to incur on the Closing Date under the 2012 Senior Subordinated Notes
Indenture.

          (g) The Senior Secured Notes shall have been issued on the terms and conditions set forth in
the Senior Secured Notes Offering Memorandum delivered to the Administrative Agent on June 2, 2008
and to the extent not set forth in such offering memorandum, on terms and conditions reasonably
satisfactory to the Administrative Agent.

          (h) Excess Availability on the Closing Date (after giving effect to the Transaction) shall not
be less than $25,000,000.

          (i) The Lenders shall have received all documentation and other information required by
regulatory authorities under applicable “know your customer” and anti-money laundering rules and
regulations, including without limitation the PATRIOT Act.

          (j) All indebtedness and other amounts due or outstanding in respect of the Existing Credit
Agreement shall have been (or substantially simultaneously with the Closing Date shall be) paid in
full, all commitments in respect thereof terminated and all guarantees thereof and security
therefor discharged and released. After giving effect to the Transactions and the other
transactions contemplated hereby, Holdings and its subsidiaries shall have outstanding no
Indebtedness or preferred stock other than (a) the loans and other extensions of credit under the
Revolving Credit Facility, (b) the Senior Secured Notes, (c) the 2012 Senior Subordinated Notes and
(d) other Indebtedness permitted hereunder or previously identified to the Bookrunner.

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

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

 

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          (a) The representations and warranties of each Borrower and each other Loan Party contained in
Article V or any other Loan Document shall be true and correct
in all material respects (or in all respects in the case of any representations and warranties
qualified by materiality) on and as of the date of such Credit Extension, except to the extent that
such representations and warranties specifically refer to an earlier date, in which case they shall
be true and correct in all material respects (or in all respects in the case of any representations
and warranties qualified by materiality) as of such earlier date, and except that for purposes of
this Section 4.02, the representations and warranties contained in Sections 5.05(a)
and (b) shall be deemed to refer to the most recent statements furnished pursuant to
Sections 6.01(a) and (b), respectively.

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

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

          (d) (i) The lesser of (A) the Total Borrowing Base and (B) the Revolving Credit Facility,
exceeds the Outstanding Amount of the Revolving Credit Loans, Swing Line Loans and L/C Obligations
at such time, after giving effect to such Credit Extension, (ii) the lesser of (A) the U.S.
Borrowing Base and (B) the U.S. Revolving Credit Facility, exceeds the Outstanding Amount of the
U.S. Revolving Credit Loans, U.S. Swing Line Loans and U.S. L/C Obligations at such time, after
giving effect to such Credit Extension and (iii) the lesser of (A) the Canadian Borrowing Base and
(B) the Canadian Revolving Credit Facility, exceeds the Outstanding Amount of the Canadian
Revolving Credit Loans, Canadian Swing Line Loans and Canadian L/C Obligations at such time, after
giving effect to such Credit Extension.

          (e) The making of such Credit Extension shall not cause the Borrower to be in default under
the covenants (including the restrictions on liens and debt) contained in any document evidencing
Junior Financing and each document evidencing Indebtedness incurred pursuant to Section
7.03(a), (b), (c) or (e).

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

ARTICLE V

Representations and Warranties

          Each of Holdings and each Borrower represents and warrants to the Administrative Agent and the
Lenders that:

 

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          SECTION 5.01. Existence, Qualification and Power; Compliance with Laws. Each Loan
Party and each of its Subsidiaries (a) is a Person duly organized or formed, validly existing and
in good standing under the Laws of the jurisdiction of its incorporation or
organization, (b) has all requisite power and authority to (i) own or lease its assets and
carry on its business and (ii) execute, deliver and perform its obligations under the Loan
Documents to which it is a party, and (c) is duly qualified and in good standing under the Laws of
each jurisdiction where its ownership, lease or operation of properties or the conduct of its
business requires such qualification, except in each case referred to in clause (c) to the extent
that failure to do so could not reasonably be expected to have a Material Adverse Effect.

          SECTION 5.02. Authorization; No Contravention. The execution, delivery and
performance by each Loan Party of each Loan Document to which such Person is a party are within
such Loan Party’s corporate or other powers, have been duly authorized by all necessary corporate
or other organizational action, and do not and will not (a) contravene the terms of any of such
Person’s Organization Documents, (b) conflict with or result in any breach or contravention of, or
the creation of any Lien under (other than as permitted by Section 7.01), or require any
payment to be made under (i) any Contractual Obligation to which such Person is a party or
affecting such Person or the properties of such Person or any of its Subsidiaries or (ii) any
material order, injunction, writ or decree of any Governmental Authority or any arbitral award to
which such Person or its property is subject; or (c) violate any Law; except with respect to any
conflict, breach or contravention or payment (but not creation of Liens) referred to in clause
(b)(i), to the extent that such conflict, breach, contravention or payment could not reasonably be
expected to have a Material Adverse Effect.

          SECTION 5.03. Governmental Authorization; Other Consents. No approval, consent,
exemption, authorization, or other action by, or notice to, or filing with, any Governmental
Authority or any other Person is necessary or required in connection with (a) the execution,
delivery or performance by, or enforcement against, any Loan Party of this Agreement or any other
Loan Document, (b) the grant by any Loan Party of the Liens granted by it pursuant to the
Collateral Documents, (c) the perfection or maintenance of the Liens created under the Collateral
Documents (including the priority thereof) or (d) the exercise by any Agent or any Lender of its
rights under the Loan Documents or the remedies in respect of the Collateral pursuant to the
Collateral Documents, except for (i) filings necessary to perfect the Liens on the Collateral
granted by the Loan Parties in favor of the Collateral Agent (which filings are disclosed in the
Perfection Certificate) or (ii) the approvals, consents, exemptions, authorizations, actions,
notices and filings which have been duly obtained, taken, given or made and are in full force and
effect.

          SECTION 5.04. Binding Effect. This Agreement and each other Loan Document has been
duly executed and delivered by each Loan Party that is party thereto. This Agreement and each
other Loan Document constitutes, a legal, valid and binding obligation of such Loan Party,
enforceable against each Loan Party that is party thereto in accordance with its terms, except as
such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership,
moratorium or other laws affecting creditors’ rights generally and by general principles of equity.

 

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          SECTION 5.05. Financial Statements; No Material Adverse Effect. (a) The Audited Financial Statements (i) were prepared in accordance with GAAP consistently
applied throughout the period covered thereby, except as otherwise expressly noted therein and (ii)
fairly present in all material respects the financial condition of Holdings and its consolidated
Subsidiaries as of the date thereof and their results of operations for the period covered
thereby in accordance with GAAP consistently applied throughout the period covered thereby, except
as otherwise expressly noted therein. During the period from December 31, 2007 to and including
the Closing Date, there has been (i) no sale, transfer or other disposition by Holdings or any of
its consolidated Subsidiaries of any material part of the business or property of Holdings and its
consolidated Subsidiaries, taken as a whole and (ii) no purchase or other acquisition by any of
them of any business or property (including any Equity Interests of any other Person) material in
relation to the consolidated financial condition of Holdings and its consolidated Subsidiaries,
taken as a whole, in each case, which is not reflected in the foregoing financial statements or in
the notes thereto or has not otherwise been disclosed in writing to the Lenders prior to the
Closing Date. From December 31, 2007 to the Closing Date, except as set forth on Schedule
5.05, Holdings and its Subsidiaries have not incurred any material Indebtedness or other
liabilities, direct or contingent, that, in accordance with GAAP, would be required to be disclosed
in Holdings’ financial statements.

          (b) The unaudited consolidated balance sheet of Holdings and its Subsidiaries dated March 29,
2008, and the related consolidated statements of income or operations, stockholder’s investment and
cash flows for the fiscal quarter ended on that date (i) were prepared in accordance with GAAP
consistently applied through the period covered thereby ,except as otherwise expressly noted
therein, and (ii) fairly present the financial condition of Holdings and its Subsidiaries as of the
date thereof and their results of operations for the period covered thereby, subject, in the case
of clauses (i) and (ii), to the absence of footnotes and to normal year-end audit adjustments.

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

          (d) The consolidated forecasted balance sheets, statements of income and cash flows of
Holdings and its Subsidiaries delivered pursuant to Section 4.01 or Section 6.01(d)
were prepared in good faith on the basis of the assumptions stated therein, which assumptions were
reasonable in light of the conditions existing at the time of delivery of such forecasts; it being
understood that actual results may vary from such forecasts and that such variations may be
material.

          SECTION 5.06. Litigation. Except as set forth on Schedule 5.06, there are no
actions, suits, proceedings, claims or disputes pending or, to the knowledge of any Borrower,
threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority,
by or against Holdings or any of its Subsidiaries or against any of their properties or revenues
that (a) purport to affect or pertain to this Agreement or any other Loan Document or (b) either
individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

 

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          SECTION 5.07. No Default. None of Holdings, the Specified U.S. Borrower or any
Subsidiary is in default under or with respect to, or a party to, any Contractual Obligation that
could, either individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.

          SECTION 5.08. Ownership of Property; Liens. (a) Each Loan Party and each of its
Subsidiaries has good record and indefeasible title in fee simple to, or valid leasehold interests
in, all real property, free and clear of all Liens except for minor defects in title that do not
materially interfere with its ability to conduct its business or to utilize such assets for their
intended purposes and Liens permitted by Section 7.01.

          (b)
Set forth on Schedule 5.08(b) is a complete and accurate list of all real property
owned by any Loan Party or any of its Subsidiaries located in the United States or Canada, as of
the Closing Date, showing as of the date hereof the street address (to the extent available),
county or other relevant jurisdiction, state and record owner.

          (c) Set forth on Schedule 5.08(c) is a complete and accurate list of all material
leases of domestic and Canadian real property located in the U.S. or Canada under which any Loan
Party or any of its Subsidiaries is the lessee as of the Closing Date, showing as of the date
hereof the street address, county or other relevant jurisdiction (to the extent available), state,
lessor and lessee. Each such lease is the legal, valid and binding obligation of the lessee
thereof, enforceable in accordance with its terms.

          SECTION 5.09. Environmental Compliance. Except as specifically disclosed on
Schedule 5.09,

          (a) Each Loan Party and each of its Subsidiaries, and each Subsidiary of their operations and
properties is, and for the past three years, has been, in compliance with all applicable
Environmental Laws except to the extent any non-compliance could not reasonably be expected to
result in a material liability.

          (b) Except as could not reasonably be expected to result in a material liability, there are no
pending actions, claims, notices of violation or potential responsibility, or proceedings alleging
liability under or non-compliance with any Environmental Law on the part of any Loan Party or any
of its Subsidiaries.

          (c) Except as could not reasonably be expected to have a Material Adverse Effect, (i) none of
the properties currently or, to the knowledge of any Loan Party formerly, owned or operated by any
Loan Party or any of its Subsidiaries is listed or to the knowledge of any Loan Party proposed for
listing on the NPL or on the CERCLIS or any analogous foreign, state, provincial, territorial,
municipal or local list; (ii) there are no and never have been any underground or aboveground
storage tanks or any surface impoundments, septic tanks, pits, sumps or lagoons in which Hazardous
Materials are being or have been treated, stored or disposed on any property currently owned or
operated by any Loan Party or any of its Subsidiaries or, to its knowledge, on any property
formerly owned or operated by any Loan Party or any of its Subsidiaries in each case, that would
reasonably be expected to result in a material liability; (iii) there is

 

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no asbestos or
asbestos-containing material in friable form or condition on any property currently owned or
operated by any Loan Party or any of its Subsidiaries; and (iv) Hazardous Materials have not been
Released on, under or from any property currently or, to their knowledge, formerly owned or
operated by any Loan Party or any of its
Subsidiaries except for such releases, discharges or disposal that were in material compliance
with Environmental Laws.

          (d) None of the properties of the Loan Parties contain any Hazardous Materials in amounts or
concentrations which (i) constitute a violation of or (ii) could give rise to liability under,
Environmental Laws, which violations and liabilities, in the aggregate, could reasonably be
expected to result in a Material Adverse Effect.

          (e) Neither any Loan Party nor any of its Subsidiaries is undertaking, and has not completed,
either individually or together with other potentially responsible parties, any investigation or
assessment or response or other corrective action relating to any actual or threatened Release of
Hazardous Materials at, on, under or from any location, either voluntarily or pursuant to the order
of any Governmental Authority or the requirements of any Environmental Law except for any such
investigations, assessments, responses or other actions that, in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

          (f) Except as disclosed on Schedule 5.09, all Hazardous Materials generated, used,
treated, handled or stored at, or transported to or from, any property currently or formerly owned
or operated by any Loan Party or any of its Subsidiaries have been disposed of in a manner which
would not reasonably expected to result in a Material Adverse Effect.

          SECTION 5.10. Insurance. The properties of each Loan Party and its Subsidiaries are
insured with financially sound and reputable insurance companies, in such amounts (after giving
effect to any self-insurance reasonable and customary for similarly situated Persons engaged in the
same or similar businesses as Specified U.S. Borrower and its Subsidiaries) with such deductibles
and covering such risks as are customarily carried by prudent companies engaged in similar
businesses and owning similar properties in localities where each Loan Party or the applicable
Subsidiary operates and as required by Sections 6.07 and 6.18.

          SECTION 5.11. Taxes. Each Loan Party and its Subsidiaries have filed all federal and
material provincial and material state, territorial, foreign and other material tax returns and
reports required to be filed, and have paid all federal and material provincial and material state,
territorial and other material taxes, assessments, fees and other governmental charges levied or
imposed upon them or their properties, income or assets otherwise due and payable, except those (a)
which are not overdue by more than 45 days or (b) which are being contested in good faith by
appropriate proceedings diligently conducted and for which adequate reserves have been provided in
accordance with GAAP.

          SECTION 5.12. ERISA Compliance. (a) Except as could not reasonably be expected to
result in a material liability to the Borrowers, each Plan is in compliance in all

 

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material
respects with the applicable provisions of ERISA, the Code and other applicable Federal or state
Laws. Except as could not reasonably be expected to result in a material liability to the
Borrowers, each Plan that is intended to qualify under Section 401(a) of the Code has received a
favorable determination letter from the IRS, or has been established pursuant to a
prototype plan that has received a favorable opinion letter from the IRS or an application for
such a letter is currently being processed by the IRS with respect thereto and, to the knowledge of
any Borrower, nothing has occurred which would prevent, or cause the loss of, such qualification.
Except as could not reasonably be expected to result in a material liability to the Borrowers, each
Loan Party and each ERISA Affiliate have made all required contributions to each Plan subject to
Section 412 of the Code, and no application for a funding waiver or an extension of any
amortization period pursuant to Section 412 of the Code has been made with respect to any Plan.

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

          (c) (i) No ERISA Event has occurred within the prior 2 years or, to the knowledge of the
Borrowers, is reasonably expected to occur; (ii) no Pension Plan has an “accumulated funding
deficiency” (as defined in Section 412 of the Code), whether or not waived, and no application for
a waiver of the minimum funding standard has been filed with respect to any Pension Plan; (iii)
neither any Loan Party 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); (iv) neither any Loan Party 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; (v) neither any Loan Party nor any ERISA
Affiliate has engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA;
and (vi) the present value of all accumulated benefit obligations of all underfunded Pension Plans
(based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87)
did not, as of the date of the most recent financial statements reflecting such amounts, exceed by
more than $40,000,000 the fair market value of the assets of all such underfunded Pension Plans;
except, with respect to each of the foregoing clauses of this Section 5.12(c), as could not
reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect.

          (d) Except where noncompliance would not reasonably be expected to result in a Material
Adverse Effect, each Foreign Plan has been maintained in substantial compliance with its terms and
with the requirements of any and all applicable laws, statutes, rules, regulations and orders and
has been maintained, where required, in good standing with applicable Governmental Authorities, and
neither the Specified U.S.

 

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Borrower nor any Subsidiary have incurred any material obligation in
connection with the termination of or withdrawal from any Foreign Plan.

          SECTION 5.13. Subsidiaries; Equity Interests; Loan Parties. As of the Closing Date,
each Loan Party has no Subsidiaries other than those specifically disclosed in Schedule
5.13, and all of the outstanding Equity Interests in such Subsidiaries have been
validly issued, are fully paid and non-assessable and are owned free and clear of all Liens except
(i) those created under the Collateral Documents, (ii) Liens securing the Senior Secured Notes and
(iii) any nonconsensual Lien that is permitted under Section 7.01. As of the Closing Date,
no Loan Party has any equity investments in any other corporation or entity other than those
specifically disclosed in Schedule 5.13.

          SECTION 5.14. Margin Regulations; Investment Company Act. (a) The Borrowers are not
engaged and will not engage, principally or as one of their important activities, in the business
of purchasing or carrying margin stock (within the meaning of Regulation U issued by the FRB), or
extending credit for the purpose of purchasing or carrying margin stock and no Credit Extension
will be used to purchase or carry any margin stock or to extend credit to others for the purpose of
purchasing or carrying any margin stock. Holdings and the Borrowers do not own any margin stock.

          (b) None of Holdings, the Specified U.S. Borrower, any Person Controlling Holdings, the
Specified U.S. Borrower or any Subsidiary is or is required to be registered as an “investment
company” under the Investment Company Act of 1940.

          SECTION 5.15. Disclosure. No report, financial statement, certificate or other
information (including, without limitation, the Information Memorandum) furnished (whether in
writing or orally) by or on behalf of any Loan Party to the Administrative Agent or any Lender in
connection with the transactions contemplated hereby and the negotiation of this Agreement or
delivered hereunder or any other Loan Document (as modified or supplemented by other information so
furnished) contains any material misstatement of fact or omits to state any material fact necessary
to make the statements therein, in the light of the circumstances under which they were made, not
materially misleading; provided that, with respect to projected financial information,
Holdings and the Specified U.S. Borrower represent only that such information was prepared in good
faith based upon assumptions believed to be reasonable at the time of preparation; it being
understood that such projections may vary from actual results and that such variances may be
material.

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

          SECTION 5.17. Intellectual Property; Licenses, Etc. Each Loan Party and its
Subsidiaries own, or possess the right to use, all of the trademarks, service marks, trade names,
copyrights, patents, patent rights, franchises, licenses and other intellectual property rights

 

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(collectively, “IP Rights”) that are necessary for the operation of their respective
businesses as currently conducted, without, to the knowledge of the Borrowers, conflict with the
rights of any other Person, except to the extent such conflicts or failures to own or possess such
rights, either individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect. No claim or litigation regarding any of the foregoing is pending or, to
the knowledge of
the Borrowers, threatened, which, either individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

          SECTION 5.18. Solvency. Each Loan Party is, individually and together with its
Subsidiaries on a consolidated basis, Solvent.

          SECTION 5.19. Casualty, Etc. Neither the business nor the properties of any Loan
Party or any of its Subsidiaries are affected by any fire, explosion, accident, strike, lockout or
other labor dispute, drought, storm, hail, earthquake, embargo, act of God or of the public enemy
or other casualty (whether or not covered by insurance) that could reasonably be expected to have a
Material Adverse Effect.

          SECTION 5.20. Perfection, Etc. All filings and other actions necessary or desirable
to perfect and protect the Liens in the Collateral created under the Collateral Documents and to
render such Liens opposable to third parties have been or will be, during the periods required by
the Loan Documents, duly made or taken and are in full force and effect, and the Collateral
Documents are effective to create in favor of (i) the Collateral Agent for the benefit of the
Secured Parties and (ii) the Collateral Agent for the benefit of the Canadian Secured Parties, a
valid and, together with such filings and other actions, perfected first priority Lien in the U.S.
Collateral and the Canadian Collateral, respectively, securing the payment of the Secured
Obligations (in the case of the U.S. Collateral) and the Canadian Obligations (in the case of the
Canadian Collateral), subject to Liens permitted by Section 7.01. The Loan Parties are the
legal and beneficial owners of the Collateral free and clear of any Lien, except for the Liens
created under the Loan Documents and permitted by Section 7.01.

          SECTION 5.21. Senior Debt. The Obligations constitute “Senior Debt” and “Designated
Senior Debt” under and as defined in the 2012 Senior Subordinated Notes Indenture.

          SECTION 5.22. Tax Shelter Regulations. The Specified U.S. Borrower does not intend to
treat the Loans and/or Letters of Credit and related transactions as being a “reportable
transaction” (within the meaning of Treasury Regulation Section 1.6011-4). In the event the
Specified U.S. Borrower determines to take any action inconsistent with such intention, it will
promptly notify the Administrative Agent thereof. If the Specified U.S. Borrower so notifies the
Administrative Agent, the Specified U.S. Borrower acknowledges that one or more of the Lenders may
treat its Loans and/or its interest in Swing Line Loans and/or Letters of Credit as part of a
transaction that is subject to Treasury Regulation Section 301.6112-1, and such Lender or Lenders,
as applicable, may maintain the lists and other records required by such Treasury Regulation.

          SECTION 5.23. Anti-Terrorism Law. (a) No Loan Party and, to the knowledge of the
Borrowers, none of their Affiliates is in violation of any laws relating to terrorism or

 

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money
laundering (“Anti-Terrorism Laws”), including Executive Order No. 13224 on Terrorist Financing,
effective September 24, 2001 (the “Executive Order”), the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law
107-56 or the Proceeds of Crime (Money-Laundering) and Terrorist Financing Act (Canada).

          (b) No Loan Party and to the knowledge of the Loan Parties, no Affiliate or broker or other
agent of any Loan Party acting or benefiting in any capacity in connection with the Loans is any of
the following:

     (i) a person that is listed in the annex to, or is otherwise subject to the provisions
of, the Executive Order;

     (ii) a person owned or controlled by, or acting for or on behalf of, any person that
is listed in the annex to, or is otherwise subject to the provisions of, the Executive
Order;

     (iii) a person with which any Lender is prohibited from dealing or otherwise engaging
in any transaction by any Anti-Terrorism Law;

     (iv) a person that commits, threatens or conspires to commit or supports “terrorism”
as defined in the Executive Order; or

     (v) a person that is named as a “specially designated national and blocked person” on
the most current list published by the U.S. Treasury Department Office of Foreign Assets
Control (“OFAC”) at its official website or any replacement website or other
replacement official publication of such list or similarly named by any similar foreign
Governmental Authority.

          (c) No Loan Party and, to the knowledge of the Borrowers, no broker or other agent of any Loan
Party acting in any capacity in connection with the Loans (i) conducts any business or engages in
making or receiving any contribution of funds, goods or services to or for the benefit of any
person described in paragraph (b) above, (ii) deals in, or otherwise engages in any transaction
relating to, any property or interests in property blocked pursuant to the Executive Order, or
(iii) engages in or conspires to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any
Anti-Terrorism Law.

          SECTION 5.24. Accounts. Without limiting the provisions of Section 5.15 or
the statements contained in any Borrowing Base Certificate, each Borrower hereby represents and
warrants that the statements in each Borrowing Base Certificate are or will be when such Borrowing
Base Certificate is delivered true and correct in all material respects. The Agents may rely, in
determining which Accounts are Eligible Accounts, on all statements and representations made by the
Borrowers with respect thereto. Each Borrower warrants, with respect to each Account at the time
it is shown as an Eligible Account in a Borrowing Base Certificate, that:

 

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     (a) it is genuine and in all respects what it purports to be, and is not evidenced by
a judgment;

     (b) it arises out of a completed, bona fide sale and delivery of goods in the ordinary
course of business, and substantially in accordance with any purchase order, contract or
other document relating thereto;

     (c) it is for a sum certain, maturing as stated in the invoice covering such sale, a
copy of which has been furnished or is available to the Administrative Agent on request;

     (d) it is not subject to any offset, Lien (other than the Collateral Agent’s Lien and
the Trustee’s Lien), deduction, defense, dispute, counterclaim or other adverse condition
except as arising in the ordinary course of business and disclosed to the Administrative
Agent; and it is absolutely owing by the Account Debtor, without contingency in any
respect;

     (e) no purchase order, agreement, document or Applicable Law restricts assignment of
the Account to the Administrative Agent (regardless of whether, under the UCC or the PPSA,
the restriction is ineffective), and the applicable Borrower is the sole payee or
remittance party shown on the invoice;

     (f) no extension, compromise, settlement, modification, credit, deduction or return
has been authorized with respect to the Account, except discounts or allowances granted in
the ordinary course of business for prompt payment that are reflected on the face of the
invoice related thereto and in the reports submitted to the Administrative Agent hereunder;
and

     (g) to the best of each Borrower’s knowledge, (i) there are no facts or circumstances
that are reasonably likely to impair the enforceability or collectibility of such Account;
(ii) the Account Debtor had the capacity to contract when the Account arose, continues to
meet the applicable Borrower’s customary credit standards, is Solvent, is not contemplating
or subject to an Insolvency Proceeding, and has not failed, or suspended or ceased doing
business; and (iii) there are no proceedings or actions threatened or pending against any
Account Debtor that could reasonably be expected to have a material adverse effect on the
Account Debtor’s financial condition.

          SECTION 5.25. Canadian Pension Plans. Except as could not reasonably be expected to
result in a material liability to the Borrowers, the Canadian Pension Plans are duly registered
under the Income Tax Act (Canada) and all other applicable laws which require registration and no
event has occurred which is reasonably likely to cause the loss of such registered status. All
material obligations of each Loan Party (including fiduciary, funding, investment and
administration obligations) required to be performed in connection with the Canadian Pension Plans
and Canadian Benefit Plans and any funding agreements therefor have been performed in a timely
fashion, except where (i) the failure to do so could not reasonably be expected to have a Material
Adverse Effect and (ii) no Lien (other than Liens permitted

 

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pursuant to Section 7.01) is
created thereby. There have been no improper withdrawals or applications of the assets of the
Canadian Pension Plans or the Canadian Benefit Plans by any Loan Party or its Affiliates except
where such withdrawals or applications could not reasonably be expected to have a Material Adverse
Effect. There are no material outstanding disputes involving any Loan Party or its Affiliates
concerning the assets of the Canadian Pension Plans or the Canadian Benefit Plans except where such
disputes could not reasonably be expected to have a Material Adverse Effect. Except as could not
reasonably be expected to result in a
material liability to the Borrowers, each of the Canadian Pension Plans was fully funded on a
solvency basis as of the date of the most recent actuarial valuations filed with Government
Authorities.

ARTICLE VI

Affirmative Covenants

          So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder (other than any contingent indemnification obligation as to which no claim has been
asserted) shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding,
each of Holdings and the Specified U.S. Borrower shall, and shall (except in the case of the
covenants set forth in Sections 6.01, 6.02 and 6.03) cause each Subsidiary
to:

          SECTION 6.01. Financial Statements; Borrowing Base. Deliver to the Administrative
Agent for further distribution to each Lender:

     (a) as soon as available, but in any event within ninety (90) days after the end of
each fiscal year of Holdings (or, if earlier, the date on which Holdings’ Form 10-K would
be required to be filed with the SEC (after giving effect to any extension)), a
consolidated balance sheet of Holdings and its Subsidiaries as at the end of such fiscal
year, and the related consolidated statements of income or operations, changes in
stockholder’s investment, and cash flows for such fiscal year, setting forth in each case
in comparative form the figures for the previous fiscal year, all in reasonable detail and
prepared in accordance with GAAP, audited and accompanied by a report and opinion of KPMG
LLP or any other independent certified public accountant of nationally recognized standing,
which report and opinion shall be prepared in accordance with generally accepted auditing
standards and shall not be subject to any “going concern” or like qualification or
exception or any qualification or exception as to the scope of such audit;

     (b) as soon as available, but in any event within forty-five (45) days after the end
of each of the first three (3) fiscal quarters of each fiscal year of Holdings (or, if
earlier, the date on which Holdings’ 10-Q would be required to be filed with the SEC (after
giving effect to any extension)), a consolidated balance sheet of Holdings and its
Subsidiaries as at the end of such fiscal quarter, and the related consolidated statements
of income or operations, changes in stockholders’ investment, and cash flows for such
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year then ended, setting forth in each
case in comparative form the figures for the corresponding fiscal quarter of the previous
fiscal year and the corresponding portion of the previous fiscal year, all in reasonable
detail and certified by a Responsible Officer of Holdings as fairly presenting in all
material respects the financial condition, results of operations, shareholders’ equity and
cash flows of Holdings and its Subsidiaries in accordance with GAAP, subject only to normal
year-end audit adjustments and the absence of footnotes;

     (c) at the time of delivery of the financial statements provided for in Sections
6.01(a) and (b) above, a management’s discussion and analysis of the financial
condition and results of operation for such fiscal quarter or fiscal year, as the case may
be, as compared to the previous fiscal period; provided that a copy of Holdings’
Form 10-K or Form 10-Q for the applicable period shall be deemed to satisfy such
requirement;

     (d) as soon as available, but in any event within forty-five (45) days after the end
of each of the first 11 months of each fiscal year of Holdings, a monthly summary income
statement including revenue, gross profit and EBITDA (calculated in a manner reasonably
consistent with the definition of Consolidated EBITDA) of Holdings and its Subsidiaries on
a consolidated basis as of the end of such month;

     (e) as soon as available, but in any event no later than 60 days after the end of each
fiscal year, forecasts prepared by management of Holdings, of consolidated balance sheets,
income statements and cash flow statements of Holdings and its Subsidiaries. All forecasts
delivered hereunder shall be prepared on an annual basis for the fiscal year following such
fiscal year then ended);

     (f) (i) with respect to the Initial Borrowing Base Certificate, on or before August
15, 2008 and (ii) thereafter, on or before the 15th Business Day after the end of each
fiscal month of Holdings (which monthly Borrowing Base Certificate shall be furnished
regardless of whether weekly Borrowing Base Certificates are required to be furnished
pursuant to the second succeeding sentence), the Borrower Agent shall deliver to the Agents
(and the Administrative Agent shall promptly deliver same to the Lenders) a Borrowing Base
Certificate in respect of each of the U.S. Borrowing Base and the Canadian Borrowing Base,
prepared as of the close of business of the previous month. All calculations of Excess
Availability in any Borrowing Base Certificate shall originally be made by the Borrowers
and certified by a Responsible Officer of each of the Specified U.S. Borrower and the
Canadian Borrower, provided that the Agents may from time to time review and adjust any
such calculation in their Credit Judgment to the extent the calculation is not made in
accordance with this Agreement or does not accurately reflect the Availability Reserve.
Upon the occurrence and during the continuation of a Cash Dominion Event, the Borrowers
shall deliver to Agents a weekly Borrowing Base Certificate within three (3) Business Days
after the end of each calendar week (each calendar week deemed, for purposes hereof, to end
on a Friday), updated as of the close of business on the last Business Day of the

 

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immediately preceding calendar week (it being understood that inventory amounts shown in
such Borrowing Base Certificate will be based on the inventory amount for the most recently
ended month) unless the Agents otherwise agree. Borrowing Base Certificates shall be
delivered with such supporting documentation and additional reports with respect to the
U.S. Borrowing Base and the Canadian Borrowing Base as the Agents shall reasonably request.

          SECTION 6.02. Certificates; Other Information. Deliver to the Administrative Agent
for further distribution to each Lender:

     (a) no later than five (5) days after the delivery of the financial statements
referred to in Section 6.01(a), a certificate of its independent certified public
accountants certifying such financial statements and stating that in making the examination
necessary therefor no knowledge was obtained of any Event of Default under Section
7.11 or, if any such Event of Default shall exist, stating the nature and status of
such event;

     (b) concurrently with the delivery of the financial statements referred to in
Sections 6.01(a) and (b), (i) a duly completed Compliance Certificate
signed by a Responsible Officer of U.S. Borrower including, during each Covenant Trigger
Event, in the event of any change in generally accepted accounting principles used in the
preparation of such financial statements, if necessary for the determination of compliance
with Section 7.11, a statement of reconciliation conforming such financial
statements to GAAP and (ii) a description of each event, condition or circumstance during
the last fiscal quarter covered by such Compliance Certificate requiring a mandatory
prepayment under Section 2.05(b);

     (c) promptly after the same are available, (i) copies of each annual report, proxy
statement, (ii) copies of all annual, regular, periodic and special reports and
registration statements which the Specified U.S. Borrower or Holdings may file or be
required to file, copies of any report, filing or communication with the SEC under Section
13 or 15(d) of the Securities Exchange Act of 1934, or with any Governmental Authority that
may be substituted therefor, or with any national securities exchange, and (iii) a copy of
any final “management letter” received by any Loan Party from its certified public
accountants identifying any significant deficiencies in the design or operation of internal
controls which could materially adversely affect Holdings’ ability to record, process,
summarize and report financial data, and the management’s responses thereto (provided that
such disclosure by Holdings is authorized by such accountants (and Holdings agrees to
request that such certified public accountants permit such disclosure));

     (d) promptly after the furnishing thereof, copies of any requests or notices received
by any Loan Party (other than in the ordinary course of business) from, or statements or
reports furnished to, any holder of debt securities of any Loan Party or of any of its
Subsidiaries pursuant to the terms of any Junior Financing Documentation or the Senior
Secured Notes in a principal amount greater than the

 

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Threshold Amount and not otherwise
required to be furnished to the Lenders pursuant to any other clause of this Section
6.02;

     (e) promptly after the receipt thereof by any Loan Party or any of its Subsidiaries,
copies of each notice or other correspondence received from the SEC (or comparable agency
in any applicable non-U.S. jurisdiction) concerning any material investigation or other
material inquiry by such agency regarding financial or other operational results of any
Loan Party or any of its Subsidiaries;

     (f) promptly after the assertion or occurrence thereof, notice of any occurrence,
event or action that could result in a material Environmental Liability on the part of any
Loan Party or any of its Subsidiaries or of any noncompliance by any Loan Party or any of
its Subsidiaries with any Environmental Law or Environmental Permit;

     (g) concurrently with any delivery of financial statements under Section
6.01(a), a certificate of a Responsible Officer setting forth the information required
pursuant to the Perfection Certificate Supplement or confirming that there has been no
change in such information since the date of the Perfection Certificate or latest
Perfection Certificate Supplement;

     (h) promptly after U.S. Borrower has notified the Administrative Agent of any
intention by U.S. Borrower to treat the Loans and/or Letters of Credit and related
transactions as being a “reportable transaction” (within the meaning of Treasury Regulation
Section 1.6011-4), a duly completed copy of IRS Form 8886 or any successor form;

     (i) promptly following the Administrative Agent’s request therefor, all documentation
and other information that the Administrative Agent reasonably requests on its behalf or on
behalf of any Lender in order to comply with its ongoing obligations under applicable “know
your customer” and anti-money laundering rules and regulations, including the PATRIOT Act;
and

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

          Each Borrower hereby acknowledges that (a) the Administrative Agent and/or the Bookrunner will
make available to the Lenders and the L/C Issuers materials and/or information provided by or on
behalf of the Borrowers hereunder (collectively, “Borrower Materials”) by posting the
Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and
(b) certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to
receive material non-public information with respect to the Borrowers or their Affiliates, or the
respective securities of any of the foregoing, and who may be engaged in investment and other
market-related activities with respect to such Persons’ securities. Each Borrower hereby agrees
that it will use

 

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commercially reasonable efforts to identify that portion of the Borrower Materials
that may be distributed to the Public Lenders and that (w) all such Borrower Materials shall be
clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC”
shall appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,”
each Borrower shall be deemed to have authorized the Administrative Agent, the Bookrunner, the L/C
Issuers and the Lenders to treat such Borrower Materials as not containing any material non-public
information (although it may be sensitive and proprietary) with respect to the Borrowers or their
securities for purposes of United States Federal and state securities laws (provided,
however, that to the
extent such Borrower Materials constitute Information, they shall be treated as set forth in
Section 10.07); (y) all Borrower Materials marked “PUBLIC” are permitted to be made
available through a portion of the Platform designated “Public Side Information;” and (z) the
Administrative Agent and the Bookrunner shall be entitled to treat any Borrower Materials that are
not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated
“Public Side Information.” Except for such Compliance Certificates, the Administrative Agent shall
have no obligation to request the delivery or to maintain copies of the documents referred to
above, and in any event shall have no responsibility to monitor compliance by any Borrower with any
such request for delivery, and each Lender shall be solely responsible for requesting delivery to
it or maintaining its copies of such documents.

          SECTION 6.03. Notices. Promptly after obtaining knowledge thereof notify the
Administrative Agent for further distribution to each Lender:

     (a) of the occurrence of any Default or Event of Default; and

     (b) of any matter that has resulted or could reasonably be expected to result in a
Material Adverse Effect, including arising out of or resulting from (i) breach or
non-performance of, or any default under, a Contractual Obligation of any Loan Party or any
Subsidiary, (ii) any dispute, litigation, investigation, proceeding or suspension between
any Loan Party or any Subsidiary and any Governmental Authority, (iii) the commencement of,
or any material development in, any litigation or proceeding materially affecting any Loan
Party or any Subsidiary, including pursuant to any applicable Environmental Laws and or in
respect of material IP Rights, or (iv) the occurrence of any ERISA Event or similar event
with respect to a Foreign Plan.

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

          SECTION 6.04. Payment of Obligations. Pay, discharge or otherwise satisfy as the same
shall become due and payable, all its obligations and liabilities, including (a) all material Tax
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or assets,
unless the same are being contested in good faith by appropriate proceedings diligently conducted
and adequate reserves in accordance with GAAP are being maintained by the Borrowers or such
Subsidiary; (b) all material lawful claims which, if unpaid, would by law become a Lien upon its
property, unless such claims would not become a Lien on the Collateral and the same are being
contested in good faith by appropriate proceedings diligently conducted and adequate reserves in
accordance with GAAP are being maintained by the Specified Borrowers or such Subsidiary; and (c)
all Indebtedness in excess of the Threshold Amount, as and when due and payable (after giving
effect to any applicable grace periods), but subject to
any subordination provisions contained in any instrument or agreement evidencing such
Indebtedness.

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

          SECTION 6.06. Maintenance of Properties. (a) Maintain, preserve and protect all of
its material properties and equipment necessary in the operation of its business in good working
order, repair and condition, ordinary wear and tear excepted and casualty or condemnation excepted,
and (b) make all necessary renewals, replacements, modifications, improvements, upgrades,
extensions and additions thereof or thereto in accordance with prudent industry practice.

          SECTION 6.07. Maintenance of Insurance. Maintain (a) with financially sound and
reputable insurance companies, insurance with respect to its properties and business against loss
or damage of the kinds customarily insured against by Persons engaged in the same or similar
business, of such types and in such amounts (after giving effect to any self-insurance reasonable
and customary for similarly situated Persons engaged in the same or similar businesses as the
Specified U.S. Borrower and its Subsidiaries) as are customarily carried under similar
circumstances by such other Persons and (b) without limitation to the foregoing, the insurance
arrangements in respect of the Collateral required by the Security Agreements. If any portion of
any real property subject to any Mortgage is located in an area identified by the Federal Emergency
Management Agency as an area having special flood hazards and in which flood insurance has been
made available under the National Flood Insurance Act of 1968 (or any amendment or successor act
thereto), then the applicable Loan Party (or its relevant Subsidiary) shall maintain, or cause to
be maintained, with a financially sound and reputable insurer, flood insurance in an amount
sufficient to comply with all applicable rules and regulations promulgated pursuant to such Act.

          SECTION 6.08. Compliance with Laws. Comply in all material respects with the
requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to

 

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its
business or property, except if the failure to comply therewith could not reasonably be expected to
have a Material Adverse Effect.

          SECTION 6.09. Books and Records. Maintain proper books of record and account, in
which full, true and correct entries in conformity with GAAP consistently applied shall be made of
all financial transactions and matters involving the assets and business of the Specified U.S.
Borrower or such Subsidiary, as the case may be.

          SECTION 6.10. Inspections; Appraisals. (a) Permit the Agents from time to time,
subject (except when an Event of Default has occurred and is continuing) to reasonable notice and
normal business hours, to visit and inspect the properties of any Borrower or Subsidiary, inspect,
audit and make extracts from Holdings’, any Borrower’s or Subsidiary’s books and records, and
discuss with its officers, employees, agents, advisors and independent accountants Holdings’ or
such Borrower’s or Subsidiary’s business, financial condition, assets, prospects and results of
operations. Lenders may participate in any such visit or inspection, at their own expense.
Neither the Agents nor any Lender shall have any duty to any Borrower to make any inspection, nor
to share any results of any inspection, appraisal or report with any Borrower. Borrowers
acknowledge that all inspections, appraisals and reports are prepared by the Agents and Lenders for
their purposes, and Borrowers shall not be entitled to rely upon them.

          (b) Reimburse the Agents for all charges, costs and expenses of the Agents in connection with
(i) field examinations, verifications and evaluations of any Loan Party’s books and records or any
other financial or Collateral matters as the Agents deem appropriate, up to twice per fiscal year;
and (ii) appraisals of Inventory up to twice per fiscal year (or, in each case with respect to
clauses (i) and (ii) three times per fiscal year if the third audit and/or appraisal occurs during
a period when Excess Availability is less than 25% of the Total Borrowing Base); provided,
however, that if a field examination or appraisal is initiated while an Event of Default
has occurred and is continuing, all charges, costs and expenses therefor shall be reimbursed by
Borrowers without regard to such limits; provided further that the limitations on
the number of examinations and appraisals in a fiscal year shall be without giving effect to
examinations and appraisals in connection with the Required Audit and Appraisal. Subject to and
without limiting the foregoing, Borrowers specifically agree to pay any Agent’s then standard
charges for each day that an employee of such Agent or its branches or Affiliates is engaged in any
examination activities, and shall pay the standard charges of such Agent’s internal appraisal
group. This Section shall not be construed to limit the Agents’ right to conduct examinations or
to obtain appraisals at any time in its discretion, nor to use third parties for such purposes.

          SECTION 6.11. Use of Proceeds. The Borrowers will use the proceeds of each Credit
Extension for general corporate purposes not in contravention of any Law or of any Loan Document.

          SECTION 6.12. Covenant to Guarantee Obligations and Give Security.
(a) Upon the formation or acquisition of any new direct or indirect Subsidiaries (other than
Excluded Subsidiaries) by any U.S. Loan Party or upon any Domestic Subsidiary ceasing to

 

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meet the
definition of an Excluded Subsidiary or upon the acquisition of any Material Real Estate, or,
subject to the terms of the Intercreditor Agreement, upon the granting of any Lien to secure the
Senior Secured Notes (in which case if the assets covered thereby do not constitute ABL Priority
Collateral the provisions of this Section shall be deemed to refer to a second-priority security
interest junior to the Lien securing the Senior Secured Notes on the terms set forth in the
Intercreditor Agreement), the Borrower Agent shall promptly notify the Administrative Agent thereof
and if such property, in the reasonable judgment of the Administrative Agent, shall not already be
subject to a perfected Lien in favor of the
Administrative Agent, for the benefit of the Secured Parties, then the applicable Loan Parties
shall, in each case at the applicable Borrower’s expense:

     (i) in connection with the formation or acquisition of a Subsidiary or upon any
Domestic Subsidiary which was an Excluded Subsidiary ceasing for any reason to meet the
definition thereof, within thirty (30) days after such formation, acquisition, or change of
status or such longer period as the Administrative Agent may agree in its sole discretion,
(A) cause each such Subsidiary that is not a Foreign Subsidiary (or a Subsidiary of a
Foreign Subsidiary) to duly execute and deliver to the Administrative Agent a guaranty or
guaranty supplement, in form and substance reasonably satisfactory to the Administrative
Agent, guaranteeing the other Loan Parties’ obligations under the Loan Documents, and (B)
subject to Section 6.12(c), deliver all certificates representing the Pledged
Equity of each such Subsidiary owned by a U.S. Loan Party, accompanied by undated stock
powers or other appropriate instruments of transfer executed in blank, and all instruments
evidencing the Pledged Debt of each such Subsidiary owned by a U.S. Loan Party, indorsed in
blank to the Collateral Agent, together with, if requested by the Agents, supplements to
the U.S. Security Agreement with respect to the pledge of any Equity Interests or
Indebtedness; provided that only 65% of Equity Interests of any Foreign Subsidiary
owned by a U.S. Loan Party shall be required to be pledged as Collateral if such Foreign
Subsidiary is a “controlled foreign corporation” for U.S. federal income tax purposes,

     (ii) within ten (10) Business Days after such request, formation or acquisition, or
such longer period as the Administrative Agent may agree in its sole discretion, furnish to
the Administrative Agent a Perfection Certificate Supplement,

     (iii) within thirty (30) days (or, in the case of IP Security Agreement Supplements,
45 days) after such request, formation or acquisition or change of status, or such longer
period as the Administrative Agent may agree in its sole discretion, duly execute and
deliver, and cause each such Subsidiary that is not a Foreign Subsidiary (or a Subsidiary
of a Foreign Subsidiary) to duly execute and deliver, to the Collateral Agent Mortgages
encumbering Material Real Estate, Security Agreement Supplements, IP Security Agreement
Supplements and other security agreements, as specified by and in form and substance
reasonably satisfactory to the Collateral Agent (consistent with the U.S. Security
Agreement, IP Security Agreement and Mortgages), securing payment of all the Obligations
and constituting Liens on all such properties,

 

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     (iv) within thirty (30) days (or, in the case of IP Security Agreement Supplements, 45
days) after such request, formation, acquisition or change of status, or such longer period
as the Administrative Agent may agree in its sole discretion, take, and cause such
Subsidiary that is not a Foreign Subsidiary (or a Subsidiary of a Foreign Subsidiary) to
take, whatever action (including, without limitation, the recording of Mortgages on
Material Real Estate, the filing of UCC or PPSA financing statements, the giving of notices
and the endorsement of
notices on title documents and delivery of stock and membership interest certificates
and the delivery of fully-executed Deposit Account Control Agreements, Securities Account
Control Agreements and Commodity Account Control Agreements) may be necessary or advisable
in the reasonable opinion of the Administrative Agent to vest in the Collateral Agent (or
in any representative of the Collateral Agent designated by it) valid and subsisting Liens
on the properties purported to be subject to the Mortgages on Material Real Estate,
Security Agreement Supplements, IP Security Agreement Supplements and security agreements
delivered pursuant to this Section 6.12, enforceable against all third parties in
accordance with their terms,

     (v) within thirty (30) days after the request of the Administrative Agent, or such
longer period as the Administrative Agent may agree in its sole discretion, deliver to the
Administrative Agent, signed copies of opinions, addressed to the Agents and the other
Secured Parties, of counsel for the Loan Parties reasonably acceptable to the
Administrative Agent as to such matters as the Administrative Agent may reasonably request,

     (vi) as promptly as practicable after the request of the Administrative Agent, to the
Administrative Agent with respect to each parcel of real property on which Mortgages on
Material Real Estate that is the subject of such request, title insurance in scope, form
and substance reasonably satisfactory to the applicable Agents and, to the extent
available, land surveys and environmental assessment reports, and

          (b) Upon the formation or acquisition of any new direct or indirect Subsidiaries that are
Canadian Subsidiaries (other than Excluded Subsidiaries) by any Canadian Loan Party or upon the
acquisition of any Canadian Loan Party, the Canadian Borrower shall promptly notify the
Administrative Agent thereof and the Canadian Borrower shall, subject to applicable laws, in each
case, at the Canadian Borrower’s expense:

     (i) in connection with the formation or acquisition of a Subsidiary that is not an
Excluded Subsidiary, within thirty (30) days after such formation, acquisition or change of
status or such longer period as the Administrative Agent may agree in its sole discretion,
(A) cause each such Subsidiary (if it has not already done so) to duly execute and deliver
to the Administrative Agent a guaranty or guaranty supplement, in form and substance
reasonably satisfactory to the Administrative Agent, guaranteeing the other Canadian Loan
Parties’ obligations under the Loan Documents, and (B) subject to Section 6.12(c),
deliver

 

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all certificates representing the Pledged Interests of each such Subsidiary owned
by a Canadian Loan Party, accompanied by undated stock powers or other appropriate
instruments of transfer executed in blank, and all instruments evidencing the Pledged Debt
of each such Subsidiary owned by a Canadian Loan Party, indorsed in blank to the Collateral
Agent, together with, if requested by the Collateral Agent, supplements to the Canadian
Security Agreement with respect to the pledge of any Equity Interests or Indebtedness,

     (ii) within ten (10) days after such request, formation or acquisition, or such longer
period as the Administrative Agent may agree in its sole discretion, furnish to each
Administrative Agent a Perfection Certificate Supplement,

     (iii) within thirty (30) days (or, in the case of IP Security Agreement Supplements,
45 days) after such request, formation or acquisition or change of status, or such longer
period as the Administrative Agent may agree in its sole discretion, duly execute and
deliver (if it has not already done so), and cause each such Subsidiary that is a Canadian
Subsidiary to duly execute and deliver, to the Collateral Agent Mortgages encumbering
Material Real Estate, new Canadian Security Agreements and/or Canadian Security Agreement
Supplements, IP Security Agreement Supplements and other security agreements charging a
Lien in such Subsidiaries’ assets, as specified by and in form and substance reasonably
satisfactory to the Collateral Agent (consistent with the Canadian Security Agreement, IP
Security Agreement and Mortgages), securing payment of all the Canadian Obligations under
the Loan Documents and constituting Liens on all such properties,

     (iv) within thirty (30) days (or, in the case of IP Security Agreement Supplements, 45
days) after such request, formation, acquisition or change of status, or such longer period
as the Administrative Agent may agree in its sole discretion, take, and cause such
Subsidiary that is a Canadian Subsidiary or such parent to take (if it has not already done
so), whatever action (including, without limitation, the recording of Mortgages on Material
Real Estate, the filing of PPSA or UCC financing statements and other similar filings in
all applicable jurisdictions, the giving of notices and the endorsement of notices on title
documents and delivery of stock and membership interest certificates and the delivery of
fully-executed Deposit Account Control Agreements, Securities Account Control Agreements
and Commodity Account Control Agreements) may be necessary or advisable in the reasonable
opinion of the Administrative Agent to vest in the Collateral Agent (or in any
representative of the Collateral Agent designated by it) valid and subsisting Liens on the
assets purported to be subject to the Mortgages on Material Real Estate, the Canadian
Security Agreement Supplements, IP Security Agreement Supplements and other security
agreements delivered pursuant to this Section 6.12, enforceable against all third
parties in accordance with their terms, and

     (v) within thirty (30) days after the request of the Administrative Agent, or such
longer period as the Administrative Agent may agree in its sole discretion,

 

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deliver to the
Administrative Agent signed copies of opinions, addressed to the Agents and the other
Canadian Secured Parties, of counsel for the Loan Parties reasonably acceptable to the
Administrative Agent as to such matters as the Administrative Agent may reasonably request;

          (c) At any time and from time to time, promptly execute and deliver any and all further
instruments and documents and take all such other action as the Agents in their reasonable judgment
may deem necessary or desirable in obtaining the full benefits
of, or (as applicable) in perfecting and preserving the Liens of, such guaranties, Mortgages,
Security Agreement Supplements, IP Security Agreement Supplements and other security and pledge
agreements.

          (d) Notwithstanding the foregoing, (x) the Collateral Agent shall not perfect its Lien in any
assets (other than (1) ABL Priority Collateral and (2) Noteholder Priority Collateral that secures
the Senior Secured Notes) as to which the Agents and the Borrowers agree that the cost of
perfecting such Lien (including any mortgage, stamp, intangibles or other tax) are excessive in
relation to the benefit to the Secured Parties of the security afforded thereby and (y) the Loan
Parties shall not be required to take any action to pledge any Equity Interests of a Foreign
Subsidiary unless such Foreign Subsidiary (i) is pledged to secure the Senior Secured Notes or (ii)
has either (A) gross revenues (on a consolidated basis with its Subsidiaries) for the most recently
ended period of four consecutive fiscal quarters equal to or greater than 2.5% of the consolidated
gross revenues of Holdings and its Subsidiaries for such period or (B) total assets (on a
consolidated basis with its Subsidiaries) at the end of the most recently completed fiscal quarter
equal to or greater than 2.5% of consolidated total assets of Holdings and its Subsidiaries as at
such date (any such Subsidiary, a “Material Foreign Subsidiary”).

          SECTION 6.13. Compliance with Environmental Laws. (a) Except, in each case, to the
extent that the failure to do so could not reasonably be expected to result in a material
liability, comply, and take all commercially reasonable steps to cause all lessees and other
Persons operating or occupying its properties to comply with all applicable Environmental Laws and
Environmental Permits; obtain and renew all Environmental Permits necessary for its operations and
properties; and conduct any investigation, study, sampling and testing, and undertake any cleanup,
removal, remedial or other action necessary to address Hazardous Materials at, on, under or
emanating from any of its properties, in accordance with the requirements of all applicable
Environmental Laws.

          (b) If a Default caused by reason of a breach of Section 5.09 or Section
6.13(a) shall have occurred and be continuing for more than 20 days without the Borrowers and
their Subsidiaries commencing activities reasonably appropriate to cure such Default or contest, in
good faith, the asserted basis for such Event of Default, at the written request of the
Administrative Agent, provide to the Lenders within 45 days after such request, or within 90 days
if soil and/or ground water sampling is appropriate, at the expense of the Loan Party, an
environmental assessment report for any property owned or operated by any Borrower or any of its
Subsidiaries, including, where appropriate, any soil and/or groundwater sampling, reasonably
relating to any matters that are the subject

 

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of such Default, prepared by an environmental
consulting firm of the Borrowers’ reasonable selection and, in form and substance, reasonably
acceptable to the Administrative Agent, indicating as relevant the presence or absence of Hazardous
Materials and the estimated cost to address any non-compliance with or conduct any response or
other corrective action with respect to such Hazardous Material required under any Environmental
Law.

          SECTION 6.14. Further Assurances. Promptly upon request by the Administrative Agent,
or any Lender through the Administrative Agent, (i) correct any material defect or error that may
be discovered in the execution, acknowledgment, filing or recordation of any Loan Document or other
document or instrument relating to any Collateral, and (ii) do, execute, acknowledge, deliver,
record, re-record, file, re-file, register and re-register any and all such further acts, deeds,
certificates, assurances and other instruments as the Administrative Agent, or any Lender through
the Administrative Agent, may reasonably require from time to time in order to (A) carry out more
effectively the purposes of the Loan Documents, (B) perfect and maintain the validity,
effectiveness and priority of any of the Collateral Documents and any of the Liens intended to be
created thereunder or (C) assure, convey, grant, assign, transfer, preserve, protect and confirm
more effectively unto the Secured Parties the rights granted or now or hereafter intended to be
granted to the Secured Parties under any Loan Document, and cause each of its Subsidiaries to do
so.

          SECTION 6.15. Compliance with Terms of Leaseholds. Make all payments and otherwise
perform all obligations in respect of all leases of real property of the Loan Parties material to
the business of the Loan Parties, keep such leases in full force and effect and not allow such
leases to lapse or be terminated or any rights to renew such leases to be forfeited or cancelled,
notify the Administrative Agent of any receipt of any notice of material default by any party with
respect to such leases and cooperate with the Administrative Agent in all respects to cure any such
material default, and cause each of its Subsidiaries to do so, except, in any case, (a) where the
failure to do so, either individually or in the aggregate, could not be reasonably likely to have a
Material Adverse Effect or (b) for terminations, lapses and amendments in the ordinary course of
business.

          SECTION 6.16. Designation as Senior Debt. Designate all Obligations as “Designated
Senior Debt” or the equivalent designation under, and as defined in, all Junior Financing
Documentation.

          SECTION 6.17. Collateral Administration. (a) Administration of Accounts.
(i) Records and Schedules of Accounts. Each Loan Party shall keep accurate and complete
records of its Accounts, including all payments and collections thereon, and shall submit to the
Administrative Agent sales, collection, reconciliation and other reports in form reasonably
satisfactory to the Administrative Agent, on such periodic basis as the Administrative Agent may
reasonably request. The Borrower Agent shall also provide to the Administrative Agent, on or
before the 15th Business Day of each month, a detailed aged trial balance of all Loan Party
Accounts as of the end of the preceding month, specifying each Account’s Account Debtor name and
address, amount, invoice date and due date, showing any discount, allowance, credit, authorized
return or dispute, and including such proof of delivery, copies of invoices and invoice registers,
copies of related documents, repayment histories, status reports and other

 

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information as the
Administrative Agent may reasonably request. If Accounts in an aggregate face amount of $5,000,000
or more cease to be Eligible Receivables, the Borrower Agent shall notify the Administrative Agent
of such occurrence promptly (and in any event within three Business Days) after any Loan Party has
knowledge thereof.

          (ii) Taxes. If an Account of any Loan Party includes a charge for any Taxes, the
Administrative Agent is authorized, in its discretion, to pay the amount thereof
to the proper taxing authority for the account of such Loan Party and to charge the Borrowers
therefor; provided, however, that neither the Administrative Agent nor the Lenders
shall be liable for any Taxes that may be due from the Loan Parties or with respect to any
Collateral.

          (iii) Account Verification. Whether or not a Default or Event of Default or a Cash
Dominion Event exists, the Agents shall have the right at any time, in the name of such Agent, any
designee of such Agent or any Loan Party, to verify the validity, amount or any other matter
relating to any Accounts of the Loan Party by mail, telephone or otherwise. The Loan Parties shall
cooperate fully with the Agents in an effort to facilitate and promptly conclude any such
verification process.

          (iv) Maintenance of Accounts. The Loan Parties shall maintain one or more Dominion
Accounts, each pursuant to a lockbox or other arrangement acceptable to the Agents, with such banks
as may be selected by applicable Loan Parties and be reasonably acceptable to Agents. The Loan
Parties shall enter into Deposit Account Control Agreements with each bank at which a Deposit
Account (other than an Excluded Account) is maintained by which such bank shall, upon notice from
the Collateral Agent of the occurrence and continuation of a Cash Dominion Event or an Event of
Default, immediately transfer to the U.S. Payment Account all monies deposited to a Dominion
Account constituting proceeds of U.S. Collateral and to the Canadian Payment Account all monies
deposited to a Dominion Account constituting proceeds of Canadian Collateral. All funds deposited
in each Dominion Account shall be subject to the Collateral Agent’s Lien. The Loan Parties shall
obtain the agreement (in favor of and in form and content reasonably satisfactory to the
Administrative Agent) by each bank at which a Dominion Account is maintained to waive any offset
rights against the funds deposited into such Dominion Account, except offset rights in respect of
charges incurred in the administration of such Dominion Account. None of the Agents nor the
Lenders shall assume any responsibility, absent gross negligence and wilfull misconduct, to any
Loan Party for such lockbox arrangement or, upon the occurrence and during the continuation of a
Cash Dominion Event or Event of Default, any Dominion Account, including any claim of accord and
satisfaction or release with respect to deposits accepted by any bank thereunder.

          (v) Collection of Accounts; Proceeds of Collateral. All Payment Items received by
any Loan Party in respect of its Accounts, together with the proceeds of any other Collateral,
shall be held by such Loan Party as trustee of an express trust for the Collateral Agent’s benefit;
such Loan Party shall immediately deposit same in kind in a Dominion Account for application to the
applicable Obligations in accordance with the terms of this Agreement and the applicable Security
Agreement. The Collateral Agent

 

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retains the right at all times that a Default or an Event of
Default exists to notify Account Debtors of any Loan Party that Accounts have been assigned to the
Collateral Agent and to collect Accounts directly in its own name and to charge to the Borrowers
the collection costs and expenses incurred by the Collateral Agent or Lenders, including reasonable
attorneys’ fees. Upon the occurrence and during the continuation of a Cash Dominion Event or an
Event of Default, all monies properly deposited in the U.S. Payment Account shall be deemed to be
voluntary prepayments of U.S. Obligations and applied to reduce
outstanding Obligations and all monies properly deposited in the Canadian Payment Account
shall be deemed to be voluntary prepayments of Canadian Obligations and applied to reduce
outstanding Canadian Obligations.

          (vi) Asset Sales Proceeds Accounts. None of Holdings, the Specified U.S. Borrower or
any of its Subsidiaries shall deposit any funds or credit any amounts into any “Asset Sales
Proceeds Account” (as defined in the Intercreditor Agreement), other than proceeds of Noteholder
Priority Collateral.

          (b) Administration of Inventory. (i) Records and Reports of Inventory. Each
Loan Party shall keep accurate and complete records of its Inventory, including costs and
withdrawals and additions, and shall submit to the Agents inventory and reconciliation reports in
form reasonably satisfactory to the Agents, on such periodic basis as the Agents may request. Each
Loan Party shall conduct a physical inventory at least once per calendar year (and on a more
frequent basis if requested by the Agents when an Event of Default exists) and/or periodic cycle
counts consistent with historical practices, and shall provide to the Agents a report based on each
such inventory and count promptly upon completion thereof, together with such supporting
information as the Agents may request. The Agents may participate in and observe each physical
count.

          (ii) Returns of Inventory. No Loan Party shall return any Inventory to a supplier,
vendor or other Person, whether for cash, credit or otherwise, unless (a) such return is in the
ordinary course of business; (b) no Default, Event of Default or Overadvance exists or would result
therefrom; and (c) the Agents are promptly notified if the aggregate value of all Inventory
returned in any month exceeds $3,500,000.

          (iii) Acquisition, Sale and Maintenance. The Loan Parties shall use, store and
maintain all Inventory with reasonable care and caution, in accordance with applicable standards of
any insurance and in conformity with all Applicable Law, and shall make current rent payments
(within applicable grace periods provided for in leases) at all locations where any Collateral is
located.

          SECTION 6.18. Maintenance of Cash Management System. (a) The applicable schedule to
the Perfection Certificate sets forth all Deposit Accounts maintained by the Loan Parties,
including all Dominion Accounts. On or prior to the date that is 60 days after the Closing Date,
or such later date as may be agreed by the Agents in their sole discretion, each Loan Party shall
take all actions necessary to establish the Collateral Agent’s control of and Lien on each such
Deposit Account (other than an Excluded Account). Each Loan Party shall be the sole account holder
of each Deposit Account (other than an Excluded Account) and shall

 

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not allow any other Person
(other than the Administrative Agent) to have control over or a Lien on a Deposit Account (other
than an Excluded Account) or any property deposited therein.

          (b) Within sixty (60) days after the Closing Date, or such later date as may be agreed to by
the Agents in their sole discretion, the Loan Parties shall have delivered to the Collateral Agent
Deposit Account Control Agreements, Securities Account Control Agreements and Commodities Account
Control Agreements for all of the Deposit Accounts, Securities Accounts and Commodities Accounts,
respectively, of
the Loan Parties (other than Excluded Accounts), duly executed by each applicable Loan Party
and the applicable depositary bank or securities intermediary.

          (c) Upon the occurrence and during the continuation of a Cash Dominion Event, the Loan Parties
shall cause any and all funds and financial assets held in or credited to each deposit account and
each securities account to be swept into the Payment Account on a daily basis (or at other
frequencies as agreed by the Collateral Agent).

          SECTION 6.19. Collateral Audit. The Loan Parties shall cause the Required Audit and
Appraisal to be completed within 45 days after the Closing Date or such later date as may be agreed
by the Agents in their sole discretion. In connection with the Required Audit and Appraisal,
Holdings and the Specified U.S. Borrower shall cooperate in a manner reasonably satisfactory to the
Agents, including by providing access to its assets and the assets of its Subsidiaries.

          SECTION 6.20. Post-Closing Matters. The Loan Parties shall have taken, or shall have
caused to be taken, each action set forth on Schedule 6.20 within the time period set forth
on Schedule 6.20 for such action; provided that, the Administrative Agent shall be
permitted to grant extensions of the time periods set forth thereon in its sole discretion.

ARTICLE VII

Negative Covenants

          So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder (other than any contingent indemnification obligation as to which no claim has been
asserted) shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding,
Holdings and each Borrower shall not, nor shall they permit any of their Subsidiaries to, directly
or indirectly:

          SECTION 7.01. Liens. Create, incur, assume or suffer to exist any Lien upon any of
its property, assets or revenues, whether now owned or hereafter acquired, or sign or file or
authorize the filing under the UCC, the PPSA, the Civil Code of Quebec or similar law of any
jurisdiction a financing statement or similar filing or registration that names Holdings, the
Borrowers or any of their respective Subsidiaries as debtor, or sign any security agreement
authorizing any secured party thereunder to file such financing statement or similar filing or
registration, other than the following:

          (a) Liens pursuant to any Loan Document;

 

 

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     (b) Liens securing the Senior Secured Notes, subject to the terms of the Intercreditor
Agreement;

     (c) Liens existing on the Closing Date and listed on Schedule 7.01 and any
modifications, replacements, renewals or extensions thereof; provided that (i) the
Lien does not extend to any additional property other than (A) after-acquired property that
is affixed or incorporated into the property covered by such Lien and (B) proceeds and
products thereof and (ii) the renewal, extension, refinancing or replacements of the
obligations secured or benefited by such Liens is permitted by Section 7.03;

     (d) Liens for Taxes, assessments or governmental charges which are not required to be
paid pursuant to Section 6.04;

     (e) statutory Liens of landlords, carriers, warehousemen, mechanics, materialmen,
repairmen, processors or other like Liens arising in the ordinary course of business which
secure amounts not overdue for a period of more than thirty (30) days or if more than
thirty (30) days overdue, are unfiled and no other action has been taken to enforce such
Lien or which are being contested in good faith and by appropriate proceedings diligently
conducted which proceedings have the effect of preventing the forfeiture or sale of the
property subject to such Lien, if adequate reserves with respect thereto are maintained on
the books of the applicable Person in accordance with GAAP;

     (f) (i) pledges or deposits in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other social security legislation, other
than any Lien imposed by ERISA or in respect of Canadian Pension Plans and (ii) pledges and
deposits in the ordinary course of business securing liability for reimbursement or
indemnification obligations of (including obligations in respect of letters of credit or
bank guarantees for the benefit of) insurance carriers providing property, casualty or
liability insurance to Holdings, the Specified U.S. Borrower or any of its Subsidiaries;

     (g) deposits to secure the performance of bids, trade contracts, governmental
contracts and leases (other than Indebtedness for borrowed money), statutory obligations,
surety, stay, customs and appeal bonds, performance bonds and other obligations of a like
nature incurred in the ordinary course of business and not in connection with Indebtedness
for money borrowed;

     (h) easements, rights-of-way, restrictions, encroachments, protrusions and other
similar encumbrances and minor title defects affecting real property which, in the
aggregate, do not in any case materially interfere with the ordinary conduct of the
business of the applicable Person;

     (i) Liens securing judgments for the payment of money not constituting an Event of
Default under Section 8.01(h) and not yet required to be paid pursuant to
Section 6.04;

 

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     (j) Liens securing Indebtedness permitted under Section 7.03(h);
provided that (i) such Liens attach concurrently with or within one hundred eighty
(180) days after the acquisition, repair, replacement or improvement (as applicable) of the
property subject to such Liens, (ii) such Liens do not at any time encumber any property
other than the property financed by such Indebtedness and the proceeds and the products
thereof and (iii) with respect to Capitalized Leases, such Liens do not at any time extend
to or cover any assets other than the assets subject to such Capitalized Leases;
provided that individual financings of equipment provided by one lender may be
cross-collateralized to other financings of equipment provided by such lender on customary
terms;

     (k) leases, licenses, subleases or sublicenses in respect of real property granted to
others in the ordinary course of business and not interfering in any material respect with
the business of Holdings, the Specified U.S. Borrower or any of its Subsidiaries;

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

     (m) Liens that are contractual rights of set-off (i) relating to the establishment of
depository relations with banks not given in connection with the issuance of Indebtedness,
(ii) relating to pooled deposit or sweep accounts of Holdings, the Specified U.S. Borrower
or any Subsidiary to permit satisfaction of overdraft or similar obligations incurred in
the ordinary course of business of Holdings, the Specified U.S. Borrower or any Subsidiary
or (iii) relating to purchase orders and other agreements entered into with customers of
Holdings, the Specified U.S. Borrower or any Subsidiary in the ordinary course of business;

     (n) Liens (i) on cash advances in favor of the seller of any property to be acquired
in an Investment permitted pursuant to Sections 7.02(h) and (n) to be
applied against the purchase price for such Investment, and (ii) consisting of an agreement
to Dispose of any property in a Disposition permitted under Section 7.05, in each
case, solely to the extent such Investment or Disposition, as the case may be, would have
been permitted on the date of the creation of such Lien;

     (o) Liens on property of any Foreign Subsidiary (other than a Canadian Subsidiary)
securing Indebtedness of such Foreign Subsidiary to the extent permitted under Section
7.03(i);

     (p) Liens in favor of Holdings, the Specified U.S. Borrower or a Subsidiary of the
Specified U.S. Borrower securing Indebtedness permitted under Section 7.03(g);
provided that if such Liens are on any property of a U.S. Loan Party, such Liens
are in favor of a U.S. Loan Party and if such Liens are on any property of a Canadian Loan
Party, such Liens are in favor of a Loan Party;

 

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     (q) Liens existing on property at the time of its acquisition or existing on the
property of any Person that becomes a Subsidiary after the date hereof; provided
that (i) such Lien was not created in contemplation of such acquisition or such Person
becoming a Subsidiary, (ii) such Lien does not extend to or cover any other assets or
property (other than the proceeds or products thereof), and (iii) the Indebtedness secured
thereby is permitted under Section 7.03(h) or Section 7.03(r) (and is
permitted to be secured);

     (r) Liens not extending to any ABL Priority Collateral or Canadian Collateral arising
from precautionary UCC or PPSA financing statement (or the foreign equivalent thereof)
filings regarding operating leases entered into by a U.S. Borrower or any of its
Subsidiaries as lessees in the ordinary course of business;

     (s) any interest or title of a lessor, sublessor, licensee, sublicensee, licensor or
sublicensor under any lease or license agreement in the ordinary course of business
permitted by this Agreement;

     (t) Liens not extending to any ABL Priority Collateral or Canadian Collateral arising
out of conditional sale, title retention, consignment or similar arrangements for sale of
goods entered into by the Specified U.S. Borrower or any of its Subsidiaries in the
ordinary course of business permitted by this Agreement;

     (u) Liens not extending to any ABL Priority Collateral or Canadian Collateral
encumbering reasonable customary initial deposits and margin deposits and similar Liens
attaching to commodity trading accounts or other brokerage accounts incurred in the
ordinary course of business and not for speculative purposes;

     (v) Permitted Encumbrances;

     (w) other Liens securing Indebtedness and other obligations outstanding in an
aggregate principal amount not to exceed $10,000,000 (none of which shall be secured by
Liens on the ABL Priority Collateral or the Canadian Collateral); and

     (x) Liens deemed to exist in connection with Investments in repurchase agreements
permitted under Section 7.02.

          SECTION 7.02. Investments. Make or hold any Investments, except:

     (a) Investments held by Holdings, the Specified U.S. Borrower or any Subsidiary in
Cash Equivalents;

     (b) loans or advances to officers, directors and employees of Holdings, the Specified
U.S. Borrower and any Subsidiaries in an aggregate amount not to exceed $5,000,000 at any
time outstanding;

     (c) Investments (i) by the Specified U.S. Borrower or any of its Subsidiaries in any
U.S. Loan Party, (ii) by any Canadian Loan Party (x) in any

 

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other Canadian Loan Party and (y) in any Foreign Subsidiary that is a Subsidiary but
not a Loan Party in an amount not to exceed $2,500,000 at any time outstanding, (iii) by
any Subsidiary that is not a Loan Party in any other such Subsidiary, (iv) by the Specified
U.S. Borrower or any Subsidiary that is a Loan Party in any Subsidiary that is not a U.S.
Loan Party in an aggregate amount not to exceed $2,500,000 at any time outstanding and (v)
by the Specified U.S. Borrower or any Subsidiary in any Foreign Subsidiary consisting of
(A) the contribution of Equity Interests of any other Foreign Subsidiary held directly by
the Specified U.S. Borrower or such Subsidiary in exchange for Indebtedness, Equity
Interests or a combination thereof of the Foreign Subsidiary to which such contribution is
made, provided that if such Equity Interests are of a Canadian Loan Party, such
contribution is to a Canadian Loan Party; or (B) the exchange of Equity Interests in any
Foreign Subsidiary for Indebtedness of such Foreign Subsidiary;

     (d) Investments consisting of extensions of credit in the nature of accounts
receivable or notes receivable arising from the grant of trade credit in the ordinary
course of business, and Investments received in satisfaction or partial satisfaction
thereof from financially troubled account debtors;

     (e) [Reserved].

     (f) Investments existing on the Closing Date and set forth on Schedule 7.02
and any modification, replacement, renewal or extension thereof; provided that the
amount of the original Investment is not increased except as otherwise permitted by this
Section 7.02;

     (g) Investments in Swap Contracts permitted under Section 7.03;

     (h) after the Borrowing Base Condition has been satisfied, the purchase or other
acquisition of all or substantially all of the property and assets or business of, any
Person or of assets constituting a business unit, a line of business or division of such
Person, or all of the Equity Interests in a Person that, upon the consummation thereof,
will be owned directly by the Specified U.S. Borrower or one or more of its wholly owned
Subsidiaries (including, without limitation, as a result of a merger or consolidation);
provided that, with respect to each purchase or other acquisition made pursuant to
this Section 7.02(h) (each, a “Permitted Acquisition”):

     (A) each applicable Loan Party and any such newly created or acquired
Subsidiary shall comply with the applicable requirements of Section 6.12;

     (B) the board of directors of such acquired Person or its selling equity
holders in existence at the time such purchase or acquisition is commenced shall
have approved such purchase or other acquisition;

 

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     (C) immediately before and immediately after giving effect to any such
purchase or other acquisition, (1) no Default shall have occurred and be
continuing, (2) Excess Availability shall exceed 25% of the Aggregate Commitments
(or, in the case of a Tuck-in Acquisition, 15% of the Aggregate Commitments) and
(3) unless such acquisition is a Tuck-in Acquisition, the Specified U.S. Borrower
shall be in pro forma compliance with the covenant set forth in Section
7.11 (whether or not such covenant is otherwise applicable under this Agreement
at such time);

     (D) the Specified U.S. Borrower shall have delivered to the Administrative
Agent, on behalf of the Lenders, at least one (1) Business Day prior to the date on
which any such purchase or other acquisition is to be consummated, a certificate of
a Responsible Officer, certifying that all of the requirements set forth in this
clause (h) have been satisfied or will be satisfied on or prior to the
consummation of such purchase or other acquisition; and

     (E) except to the extent the purchase price therefor is paid by a Foreign
Subsidiary, the fair market value of all property acquired in Permitted
Acquisitions which is contributed to or owned by Subsidiaries that are not U.S.
Loan Parties shall be deemed to be an Investment permitted only to the extent made
pursuant to Section 7.02(c)(iv).

     Notwithstanding anything to the contrary herein, unless the Agents shall otherwise agree in
their sole discretion, no Inventory or Accounts acquired in a Permitted Acquisition shall be
included in the Borrowing Base until the Agents have completed a field audit and inventory
appraisal in scope and with results satisfactory to them and until the Agents shall have received
duly executed Deposit Account Control Agreements, Securities Account Control Agreements and
Commodity Account Control Agreements with respect to the bank accounts, securities accounts and
commodities accounts of the acquired businesses.

     (i) Investments that U.S. Borrower has elected to be treated as Restricted Payments
that are permitted by Section 7.06;

     (j) Investments in the ordinary course of business consisting of (i) endorsements for
collection or deposit and (ii) customary trade arrangements with customers consistent with
past practices;

     (k) Investments (including debt obligations and Equity Interests) received in
connection with the bankruptcy or reorganization of suppliers and customers and in
settlement of delinquent obligations of, and other disputes with, customers and suppliers
arising in the ordinary course of business and upon the foreclosure with respect to any
secured Investment or other transfer of title with respect to any secured Investment;

 

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     (l) the licensing, sublicensing or contribution of IP Rights pursuant to joint
marketing arrangements with Persons other than Holdings, the Specified U.S. Borrower and
its Subsidiaries in the ordinary course of business;

     (m) loans and advances to Holdings in lieu of, and not in excess of the amount of
(after giving effect to any other loans, advances or Restricted Payments in respect
thereof), Restricted Payments to the extent permitted to be made to Holdings in accordance
with Section 7.06;

     (n) other Investments so long as immediately before and immediately after giving
effect to any such Investment, (i) no Event of Default has occurred and is continuing, (ii)
Excess Availability shall exceed 25% of the Aggregate Commitments and (iii) the Specified
U.S. Borrower shall be in pro forma compliance with the covenant set forth in Section
7.11 (whether or not such covenant is otherwise applicable under this Agreement at such
time) and shall have delivered to the Administrative Agent a pro forma Compliance
Certificate demonstrating such compliance; and

     (o) other Investments in an aggregate amount not to exceed $5,000,000 during the term
of this Agreement.

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

     (a) in the case of the Specified U.S. Borrower and the U.S. Subsidiary Guarantors, the
2012 Senior Subordinated Notes;

     (b) in the case of the Specified U.S. Borrower and the U.S. Subsidiary Guarantors, the
Senior Secured Notes in an aggregate principal amount not to exceed $700,000,000 and any
Permitted Refinancings thereof;

     (c) in the case of the Loan Parties, Permitted Subordinated Indebtedness in an
aggregate principal amount not to exceed $50,000,000 at any time outstanding;
provided that the Loan Parties may incur additional Permitted Subordinated
Indebtedness as long as immediately after giving effect thereto, (i) no Event of Default
has occurred and is continuing, (ii) Excess Availability shall be more than 25% of the
Aggregate Commitments and (iii) the Specified U.S. Borrower shall be in pro forma
compliance with the covenant set forth in Section 7.11 (whether or not such
covenant is otherwise applicable under this Agreement at such time) as if such Indebtedness
were incurred on the first day of the relevant Measurement Period;

     (d) Indebtedness of the Loan Parties under the Loan Documents;

     (e) Indebtedness outstanding on the Closing Date and listed on Schedule
7.03(e) and any modifications, refinancings, refundings, renewals, replacements or
extensions thereof; provided that (A) the amount of such Indebtedness is not
increased at the time of such modification, refinancing,

 

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refunding,
renewal or extension except by an amount equal to a reasonable premium or other reasonable amount
paid, and fees and expenses reasonably incurred, in connection with such refinancing or as
otherwise permitted pursuant to this Section 7.03, and (B) the terms and conditions
(including, if applicable, as to collateral and subordination) of any such modified,
extending, refunding or refinancing Indebtedness are not materially less favorable to the
Loan Parties or the Lenders than the terms and conditions of the Indebtedness being
modified, extended, refunded or refinanced;

     (f) Guarantees of the Specified U.S. Borrower and its Subsidiaries in respect of
Indebtedness of the Specified U.S. Borrower or such Subsidiary otherwise permitted under
this Section 7.03(f); provided that (i) if such Guarantee is a Guarantee of
Indebtedness of a U.S. Loan Party by any Subsidiary, such Subsidiary is a U.S. Loan Party
or such Subsidiary shall have also provided a Guarantee of the Obligations substantially on
the terms set forth in the U.S. Guaranty, (ii) if such Guarantee is a Guarantee of
Indebtedness of a Canadian Loan Party by any Subsidiary, such Subsidiary is a Loan Party or
such Subsidiary shall have also provided a Guarantee of the Canadian Obligations
substantially on the terms set forth in the Canadian Guarantee, (iii) if such Guarantee is
of Indebtedness of a Subsidiary that is not a U.S. Loan Party, such Guarantee shall be
deemed to be an Investment under Section 7.02 and (iv) if such Indebtedness is
subordinated to the Obligations, such Guarantee shall be also be subordinated to the
Obligations on terms no less favorable to the Lenders;

     (g) Indebtedness of (A) any U.S. Loan Party owing to any other U.S. Loan Party, (B)
any Canadian Loan Party owing to any other Loan Party, (C) any Subsidiary that is not a
Loan Party owing to (1) any other Subsidiary that is not a Loan Party or (2) Holdings or a
Loan Party in respect of an Investment permitted under Section 7.02(c) or
(n), and (D) any Loan Party owing to any Subsidiary which is not a Loan Party;
provided that all such Indebtedness of any Loan Party in this clause (v)(D)
must be expressly subordinated to the Obligations or the Canadian Obligations on the terms
set forth in the Guaranties, as applicable and be represented by the Intercompany Note;

     (h) Attributable Indebtedness and purchase money obligations (including obligations in
respect of mortgage, industrial revenue bond, industrial development bond and similar
financings) to finance the purchase, repair or improvement of fixed or capital assets
within the limitations set forth in Section 7.01(i) and any Permitted Refinancing
thereof; provided, however, that the aggregate amount of all such
Indebtedness at any one time outstanding shall not exceed $15,000,000;

     (i) Indebtedness of Foreign Subsidiaries (other than Canadian Subsidiaries) in an
aggregate principal amount at any time outstanding for all such Persons taken together not
exceeding $2,500,000;

 

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     (j) Indebtedness in respect of Swap Contracts designed to hedge against foreign
exchange rates or commodities pricing risks incurred in the ordinary course of business and
not for speculative purposes or in respect of interest rates;

     (k) unsecured Indebtedness consisting of promissory notes issued by any Loan Party to
current or former officers, directors and employees, their respective estates, spouses or
former spouses to finance the purchase or redemption of Equity Interests of Holdings or Ply
Gem Prime Holdings, Inc. permitted by Section 7.06;

     (l) unsecured Indebtedness incurred by the Specified U.S. Borrower or its Subsidiaries
in a Permitted Acquisition or Disposition under agreements providing for customary
adjustments of the purchase price;

     (m) Cash Management Obligations and other Indebtedness in respect of endorsements for
collection or deposit, netting services, overdraft protections and similar arrangements in
each case in connection with deposit accounts provided that such Indebtedness is
extinguished within ten Business Days after its incurrence;

     (n) unsecured Indebtedness of the Specified U.S. Borrower and its Subsidiaries in an
aggregate principal amount not to exceed $50,000,000 at any time outstanding;

     (o) Indebtedness consisting of (A) the financing of insurance premiums, (B)
take-or-pay obligations contained in supply arrangements and (C) customary indemnification
obligations, in each case, incurred in the ordinary course of business and not in
connection with debt for money borrowed;

     (p) Indebtedness incurred by the Specified U.S. Borrower or any of its Subsidiaries
constituting reimbursement obligations with respect to letters of credit issued in the
ordinary course of business in respect of workers compensation claims, health, disability
or other employee benefits or property, casualty or liability insurance or self-insurance
or other Indebtedness with respect to reimbursement-type obligations regarding workers
compensation claims in the ordinary course of business; provided that upon the
drawing of such letters of credit or the incurrence of such Indebtedness, such obligations
are reimbursed within 30 days following such drawing or incurrence;

     (q) obligations in respect of performance and surety bonds and performance and
completion guarantees provided by the Specified U.S. Borrower or any of its Subsidiaries or
obligations in respect of letters of credit related thereto, in each case in the ordinary
course of business consistent with past practice and not in connection with debt for money
borrowed; and

     (r) (A) Indebtedness of the Specified U.S. Borrower or a Subsidiary assumed in
connection with any Permitted Acquisition (and not created in contemplation thereof) not to
exceed $15,000,000 in the aggregate outstanding at

 

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any time (which shall not be secured by any ABL Priority Collateral or Canadian
Collateral or any other property besides a single asset or group of related assets
specifically identified in the documentation for such Indebtedness) (“Permitted
Acquired Debt”) and (B) Indebtedness of the Specified U.S. Borrower owed to the seller
of any property acquired in a Permitted Acquisition on an unsecured subordinated basis (on
terms no less favorable to the Lenders than the terms of the 2012 Senior Subordinated
Notes) not to exceed $20,000,000 in the aggregate outstanding at any time (“Permitted
Seller Notes”).

          SECTION 7.04. Fundamental Changes. Merge, dissolve, liquidate, amalgamate,
consolidate with or into another Person, or Dispose of (whether in one transaction or in a series
of transactions) all or substantially all of its assets (whether now owned or hereafter acquired)
to or in favor of any Person, except that, so long as no Default exists or would result therefrom:

     (a) any Subsidiary may merge with (i) the Specified U.S. Borrower (including a merger,
the purpose of which is to reorganize the Specified U.S. Borrower into a new jurisdiction
which is a State of the United States of America), provided that the Specified U.S.
Borrower shall be the continuing or surviving Person or the surviving Person shall
expressly assume the obligations of the Specified U.S. Borrower pursuant to documents
reasonably acceptable to the Administrative Agent, or (ii) any one or more other
Subsidiaries, provided that when any U.S. Subsidiary Guarantor is merging with
another Subsidiary (which is not a U.S. Subsidiary Guarantor), the U.S. Subsidiary
Guarantor shall be the continuing or surviving Person;

     (b) any Canadian Subsidiary may merge or amalgamate with (i) the Canadian Borrower
(including a merger or amalgamation, the purpose of which is to reorganize the Canadian
Borrower into a new jurisdiction which is a province or territory of Canada),
provided that the Canadian Borrower shall be the continuing or surviving Person or
the surviving Person shall expressly assume the obligations of the Canadian Borrower
pursuant to documents reasonably acceptable to the Administrative Agent, or (ii) any one or
more other Subsidiaries, provided that when any Canadian Subsidiary Guarantor is
merging or amalgamating with another Subsidiary, a Guarantor shall be the continuing or
surviving Person;

     (c) (i) any Subsidiary may Dispose of all or substantially all of its assets (upon
voluntary dissolution, liquidation or otherwise) to the Specified U.S. Borrower or to
another Subsidiary; provided that if the transferor in such a transaction is a
Guarantor, then the transferee must be a Loan Party and if the transferee is not the
Specified U.S. Borrower or a U.S. Subsidiary Guarantor, such transfer must be in the
ordinary course of business consistent with past practice, and (ii) any Subsidiary that is
not a U.S. Subsidiary Guarantor may Dispose of all or substantially all of its assets (upon
voluntary liquidation or otherwise) to the Canadian Borrower or another Subsidiary;
provided that if the transferor in such transaction is a Canadian Loan Party, then
the transferee must be a Loan Party;

 

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     (d) any Subsidiary may merge or amalgamate with or Dispose of all or substantially all
of its assets to any other Person in order to effect an Investment permitted pursuant to
Section 7.02; provided that if the continuing or surviving Person shall be
a Subsidiary, such Subsidiary and each of its Subsidiaries shall have complied with the
applicable requirements of Section 6.12; and

     (e) a merger, amalgamation, dissolution, liquidation, consolidation or Disposition,
the purpose of which is to effect a Disposition permitted pursuant to Section 7.05
(other than clause (e) thereof).

          SECTION 7.05. Dispositions. Make any Disposition or enter into any agreement to make
any Disposition, except:

     (a) Dispositions of obsolete or worn out property, whether now owned or hereafter
acquired, in the ordinary course of business and Dispositions of property no longer used in
the conduct of the business of the Specified U.S. Borrower and its Subsidiaries;

     (b) Dispositions of Inventory in the ordinary course of business;

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

     (d) Dispositions of property by any Subsidiary to the Specified U.S. Borrower or to a
Subsidiary; provided that (A) if the transferor of such property is a U.S. Loan
Party either (i) the transferee is a U.S. Loan Party or (ii) to the extent such transaction
constitutes an Investment, such transaction is permitted under Section 7.02 and (B)
if the transferor of such property is a Canadian Loan Party either (i) the transferee is a
Loan Party or (ii) to the extent such transaction constitutes an Investment, such
transaction is permitted under Section 7.02;

     (e) Dispositions permitted by Sections 7.04 and 7.06 (solely with
respect to reissuances of Equity Interests of treasury stock of the Specified U.S.
Borrower);

     (f) Dispositions by the Specified U.S. Borrower and its Subsidiaries of property
pursuant to sale-leaseback transactions; provided that (i) the fair market value of
all property so Disposed of shall not exceed $15,000,000 from and after the Closing Date
and (ii) the purchase price for such property shall be paid to the Specified U.S. Borrower
or such Subsidiary for not less than 75% cash consideration;

     (g) Dispositions of Cash Equivalents;

     (h) Dispositions of (i) defaulted Accounts of financially-troubled debtors in
connection with the collection or compromise thereof and (ii) with 10 days’

 

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prior notice to the Administrative Agent, other Accounts as to which the applicable
Loan Party has reasonable concerns as to credit quality;

     (i) licensing or sublicensing of IP Rights in the ordinary course of business;

     (j) leases, subleases, licenses or sublicenses of property in the ordinary course of
business and which do not materially interfere with the business of the Specified U.S.
Borrower and its Subsidiaries;

     (k) Dispositions by the Specified U.S. Borrower and its Subsidiaries not otherwise
permitted under this Section 7.05; provided that (i) at the time of such
Disposition, no Event of Default shall exist or would result from such Disposition, (ii)
the aggregate fair market value of all property Disposed of in reliance on this clause
(k) shall not exceed $30,000,000 since the Closing Date (excluding any property
Disposed of in a Disposition or series of related Dispositions involving property with an
aggregate fair market value of less than $1,500,000), and (iii) the purchase price for such
property shall be paid to the Specified U.S. Borrower or such Subsidiary for not less than
75% cash consideration; and

     (l) Dispositions of assets set forth on Schedule 7.05;

provided, however, that any Disposition of any property pursuant to this
Section 7.05 (except pursuant to Sections 7.05(d)(A)(i), (d)(B)(i),
(e), (h) and (j)), shall be for no less than the fair market value
of such property at the time of such Disposition. To the extent any Collateral is Disposed
of as expressly permitted by this Section 7.05 (other than to a Loan Party), such
Collateral shall be sold free and clear of the Liens created by the Loan Documents, and the
Collateral Agent shall be authorized to take any actions deemed appropriate in order to
effect the foregoing.

          SECTION 7.06. Restricted Payments. Declare or make, directly or indirectly, any
Restricted Payment, except:

     (a) each Subsidiary may make Restricted Payments to the Specified U.S. Borrower and to
Subsidiaries (and, in the case of a Payment by a non-wholly-owned Subsidiary, to the
Specified U.S. Borrower and any Subsidiary and to each other owner of Equity Interests of
such Subsidiary based on their relative ownership interests);

     (b) Holdings, the Specified U.S. Borrower and each Subsidiary may declare and make
dividend payments or other distributions payable solely in the Equity Interests (other than
Disqualified Equity Interests) of such Person;

     (c) to the extent constituting Restricted Payments, the Specified U.S. Borrower and
its Subsidiaries may enter into transactions expressly permitted by Section 7.04,
7.08, or 7.14;

 

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     (d) the Specified U.S. Borrower and any Subsidiary of the Specified U.S. Borrower may
make Restricted Payments to Holdings:

     (i) the proceeds of which will be used to pay the tax liability for the relevant
jurisdiction in respect of consolidated, combined, unitary or affiliated returns for the
relevant jurisdiction of Holdings attributable to the Specified U.S. Borrower and its
Subsidiaries determined as if the U.S. Specified Borrower and its Subsidiaries filed
separately;

     (ii) the proceeds of which shall be used by Holdings to pay its (or to make a
Restricted Payment to any direct or indirect parent company of the Specified U.S. Borrower
to enable it to pay) operating expenses incurred in the ordinary course of business and
other corporate overhead costs and expenses (including, without limitation, administrative,
legal, accounting and similar expenses provided by third parties), which are reasonable and
customary and incurred in the ordinary course of business, in an aggregate amount not to
exceed $2,000,000 in any fiscal year plus any reasonable and customary indemnification
claims made by directors or officers of Holdings or any direct or indirect parent company
of the Specified U.S. Borrower attributable to the ownership or operations of the Specified
U.S. Borrower and its Subsidiaries;

     (iii) the proceeds of which shall be used by Holdings to pay (or to make a Restricted
Payment to any direct or indirect parent company of the Specified U.S. Borrower to enable
it to pay to enable it to pay) its franchise taxes;

     (iv) the proceeds of which will be used to repurchase the Equity Interests of Holdings
from, or to make a Restricted Payment to any direct or indirect parent company of the
Specified U.S. Borrower to enable it to repurchase its Equity Interests from, directors,
employees or members of management of Holdings or any direct or indirect parent company of
the Specified U.S. Borrower, the Specified U.S. Borrower or any Subsidiary (or their
estate, family members, spouse and/or former spouse), in an aggregate amount not in excess
of $5,000,000 in any calendar year plus the proceeds of any key-man life insurance
maintained by Holdings, the Specified U.S. Borrower or any of its Subsidiaries;
provided that the Specified U.S. Borrower may carry-over and make in any subsequent
calendar year or years, in addition to the amount for such calendar year, the amount not
utilized in the prior calendar year or years up to a maximum of $15,000,000; or

     (v) the proceeds of which shall be used by Holdings or any direct or indirect parent
company of the Specified U.S. Borrower to pay fees and expenses (other than to Affiliates)
certified to the Administrative Agent by an Officer of the Specified U.S. Borrower and
related to any unsuccessful equity or debt offering.

     (e) in addition to the foregoing Restricted Payments, after the Borrowing Base
Condition has been satisfied, the Specified U.S. Borrower may make additional Restricted
Payments to Holdings the proceeds of which may be utilized by Holdings to make additional
Restricted Payments so long as before and after

 

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giving effect thereto (i) no Event of Default has occurred and is continuing, (ii)
Excess Availability shall be more than 25% of the Aggregate Commitments and (iii) the
Specified U.S. Borrower shall be in pro forma compliance with the covenant set forth in
Section 7.11 (whether or not such covenant is otherwise applicable under this
Agreement at such time) and shall have delivered to the Administrative Agent a pro forma
Compliance Certificate demonstrating such compliance; provided, that if the
proceeds of such Restricted Payment are to be and are promptly applied to make a payment of
the type described in Section 7.14, the Restricted Payment to Holdings under this
clause (e) to allow it to make those payments shall be subject only to the criteria
for the applicable type of payment set forth in Section 7.14;

     (f) repurchases of Equity Interests of the Specified U.S. Borrower deemed to occur
upon the non-cash exercise of stock options and warrants; and

     (g) so long as no Default shall have occurred and be continuing or would result
therefrom, the Specified U.S. Borrower may make Restricted Payments with the net cash
proceeds from any Permitted Equity Issuance received since the Closing Date, to the extent
such proceeds were received within 90 days prior to the date of such Restricted Payment and
held in segregated account pending application pursuant to this clause (g).

          SECTION 7.07. Change in Nature of Business. (a) In respect of Holdings, engage in
any business activities or have any assets or liabilities other than its ownership of the Equity
Interests of the Specified U.S. Borrower and liabilities incidental thereto, including its
liabilities as a Guarantor pursuant to the U.S. Guaranty, the Senior Secured Notes Documents and
the 2012 Senior Subordinated Notes Indenture and any other Permitted Indebtedness.

          (b) In respect of the Specified U.S. Borrower and its Subsidiaries, engage in any material
line of business substantially different from those lines of business conducted by the Specified
U.S. Borrower and its Subsidiaries on the date hereof or any business reasonably related or
ancillary thereto.

          SECTION 7.08. Transactions with Affiliates. Enter into any transaction of any kind
with any Affiliate of the Specified U.S. Borrower, whether or not in the ordinary course of
business, other than (a) transactions (i) between or among Loan Parties, (ii) between or among
Subsidiaries that are not Loan Parties and (iii) between or among the Loan Parties, the
Subsidiaries and/or any joint venture in which any of them owns an interest, in each case, in the
ordinary course of business, (b) on fair and reasonable terms substantially as favorable to the
applicable Borrower or such Subsidiary as would be obtainable by the applicable Borrower or such
Subsidiary at the time in a comparable arm’s-length transaction with a Person other than an
Affiliate, (c) the payment of fees, expenses and other payments made in connection with the
consummation of the Transactions, (d) so long as no Covenant Trigger Event shall have occurred and
be continuing, the payment of fees to the Sponsor pursuant to the Advisory Agreement, (e) equity
issuances by the Specified U.S. Borrower permitted under Section 7.06, (f) loans and other
transactions by the Specified U.S. Borrower and its Subsidiaries to the extent permitted under
Section 7.06 or clauses (b), (c), (e) and (m) of
Section 7.02, (g) customary fees

 

155

may be paid to any directors of the Specified U.S. Borrower and reimbursement of reasonable
out-of-pocket costs of the directors of the Specified U.S. Borrower, (h) the Specified U.S.
Borrower and its Subsidiaries may enter into employment and severance arrangements with officers
and employees in the ordinary course of business, (i) the payment of customary fees and reasonable
out-of-pocket cost to, and indemnities provided on behalf of, directors, officers, employees and
consultants of the Specified U.S. Borrower and the Subsidiaries in the ordinary course of business
to the extent attributable to the ownership or operation of the Specified U.S. Borrower and its
Subsidiaries, as determined in good faith by the board of directors of the Specified U.S. Borrower
or senior management thereof, (j) transactions pursuant to permitted agreements in existence on the
Closing Date and set forth on Schedule 7.08 or any amendment thereto to the extent such an
amendment is not adverse to the Lenders in any material respect, (k) dividends, redemptions and
repurchases permitted under Section 7.06, and (l) payments by the Specified U.S. Borrower
and any Subsidiaries to the Sponsor made for any customary financial advisory, financing,
underwriting or placement services or in respect of other investment banking activities, including
in connection with acquisitions or divestitures, which payments are (A) pursuant to the Advisory
Agreement as in effect on the Closing Date and (B) approved by the majority of the members of the
board of directors or a majority of the disinterested members of the board of directors of the
Specified U.S. Borrower, in each case in good faith.

          SECTION 7.09. Burdensome Agreements. Enter into or permit to exist any Contractual
Obligation (other than this Agreement or any other Loan Document) that limits the ability (a) of
any Subsidiary of the Specified U.S. Borrower to make Restricted Payments to the Specified U.S.
Borrower or any Guarantor or to otherwise transfer property to or invest in any Borrower or any
Guarantor, except for any agreement in effect (i) (x) on the date hereof and (y) to the extent
Contractual Obligations permitted by clause (x) are set forth in an agreement evidencing
Indebtedness, are set forth in any agreement evidencing any permitted renewal, extension or
refinancing of such Indebtedness so long as such renewal, extension or refinancing does not expand
the scope of such Contractual Obligation, (ii) at the time any Person becomes a Subsidiary, so long
as such agreement was not entered into solely in contemplation of such Person becoming a
Subsidiary, (iii) representing Indebtedness of a Subsidiary which is not a Loan Party which is
permitted by Section 7.03, or (iv) in connection with any Disposition permitted by
Section 7.05 relating solely to the assets to be disposed of, and (b) of the Specified U.S.
Borrower or any Loan Party to create, incur, assume or suffer to exist Liens on property of such
Person for the benefit of the Lenders with respect to the Revolving Credit Facility and the
Obligations or under the Loan Documents except for (i) negative pledges and restrictions on Liens
in favor of any holder of Indebtedness permitted under Section 7.03 but solely to the
extent any negative pledge relates to the property subject to a Lien permitted by Section
7.01 or (ii) customary restrictions on leases, subleases, licenses or asset sale agreements
otherwise permitted hereby so long as such restrictions may relate to the assets subject thereto;
provided, however, that clauses (a) and (b) shall not prohibit Contractual
Obligations that (i) are customary provisions in joint venture agreements and other similar
agreements applicable to joint ventures permitted under Section 7.02 and applicable solely
to such joint venture entered into in the ordinary course of business, or (ii) apply only to the
property or assets securing Indebtedness permitted to be secured by such property or assets by
Section 7.01 and Section 7.03, (iii) are customary provisions restricting
subletting or assignment of any lease governing a leasehold interest, (iv) are customary provisions
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entered into in the ordinary course of business and (v) are restrictions on cash or other
deposits imposed by customers under contracts entered into in the ordinary course of business.

          SECTION 7.10. Use of Proceeds. Use the proceeds of any Credit Extension, whether
directly or indirectly, to purchase or carry margin stock (within the meaning of Regulation U of
the FRB) or to extend credit to others for the purpose of purchasing or carrying margin stock or to
refund Indebtedness originally incurred for such purpose.

          SECTION 7.11. Consolidated Fixed Charge Coverage Ratio. At any time when a Covenant
Trigger Event shall have occurred and be continuing, permit the Consolidated Fixed Charge Coverage
Ratio as of the end of the most recently completed Measurement Period of Holdings for which
financial statements have been delivered by Holdings pursuant to Section 6.01 and for each
Measurement Period thereafter until such Covenant Trigger Event shall cease to be continuing, to be
less than 1.1:1.0.

          SECTION 7.12. Amendments of Material Documents. Amend (a) any of its Organization
Documents, (b) the Advisory Agreement, (c) the 2012 Senior Subordinated Notes Indenture or any
other agreement relating to Junior Financing or (d) the Senior Secured Notes Documents, in each
case in a manner materially adverse to the Agents or the Lenders.

          SECTION 7.13. Accounting Changes. Make any change in the periods covered by Holdings’
fiscal year.

          SECTION 7.14. Prepayments, Etc. of Indebtedness. (a) Prepay, redeem, purchase,
defease or otherwise satisfy prior to the scheduled maturity thereof in any manner any of the
Senior Secured Notes, the 2012 Senior Subordinated Notes, Permitted Seller Notes and any Permitted
Subordinated Indebtedness (collectively, “Junior Financing”) or make any payment in
violation of any subordination terms of any Junior Financing Documentation, except so long as no
Default shall have occurred and is continuing or would result therefrom (i) the prepayment,
redemption, purchase or defeasance of any such Junior Financing with the net cash proceeds of any
Permitted Subordinated Indebtedness or Permitted Equity Issuance to the extent that such proceeds
were received within 180 days prior to the date of such prepayment, redemption, purchase or
defeasance and held in a segregated account pending application pursuant to this Section
7.14, (ii) the conversion of any Junior Financing to Equity Interests (other than Disqualified
Equity Interests) and (iii) the prepayment, redemption, purchase or defeasance of any such Junior
Financing, so long as immediately before and immediately after giving effect thereto (A) no Default
shall have occurred and be continuing or would result therefrom, (B) Excess Availability shall be
at least 25% of the Aggregate Commitments and (C) the Specified U.S. Borrower would be in pro forma
compliance with the covenant set forth in Section 7.11 (whether or not such covenant is
otherwise applicable at such time), provided that in each case such payment is also
permitted under the Senior Secured Notes Indenture or (b) amend, modify or change in any manner
materially adverse to the interests of the Administrative Agent or the Lenders any term or
condition of any Junior Financing Documentation.

          SECTION 7.15. Equity Interests of the Specified U.S. Borrower and Subsidiaries. (a)
(i) Permit the Specified U.S. Borrower or any of its Subsidiaries to own

 

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directly or indirectly less than 100% of the Equity Interests of any of the Domestic
Subsidiaries and Canadian Subsidiaries except as a result of or in connection with a dissolution,
merger, consolidation or Disposition of a Subsidiary permitted by Section 7.04 or
7.05 or an Investment in any Person permitted under Section 7.02; or

          (b) Permit the Specified U.S. Borrower or any of its Subsidiaries to own directly or
indirectly less than 80% of the Equity Interests of any of the Foreign Subsidiaries (other than
Canadian Subsidiaries) which are Subsidiaries except (A) to qualify directors where required by
applicable Law or to satisfy other requirements of applicable Law with respect to the ownership of
Equity Interests of Foreign Subsidiaries or (B) as a result of or in connection with a dissolution,
merger, amalgamation, consolidation or disposition of a Subsidiary permitted by Section
7.04 and 7.05 or an Investment in any Person permitted under Section 7.02; or

          (c) Create, incur, assume or suffer to exist any Lien on any Equity Interests of any Borrower
(other than Liens pursuant to the Loan Documents and non-consensual Liens arising solely by
operation of law and customary restrictions in joint venture agreements).

          SECTION 7.16. Designation of Senior Debt. Designate any other Indebtedness (other
than the Senior Secured Notes) of the Specified U.S. Borrower or any of its Subsidiaries as
“Designated Senior Debt” (or any comparable term) under, and as defined in, the 2012 Senior
Subordinated Notes Indenture or any other applicable Junior Financing Documentation.

ARTICLE VIII

Events of Default and Remedies

          SECTION 8.01. Events of Default. The occurrence of the following shall constitute an
Event of Default:

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

     (b) Specific Covenants. (i) Any Loan Party fails to perform or observe any
term, covenant or agreement contained in any of Sections 6.03(a),
6.05 (but only with respect to Holdings’, the Specified U.S. Borrower’s or the
Canadian Borrower’s existence), 6.11, 6.17(a)(iv), (v) or
(vi), 6.19, 6.20 or Article VII (after notice), (ii) any of the
Guarantors fails to perform or observe any term, covenant or agreement contained in
Sections 1.05 and 1.06 of the respective Mortgages to which it is a party
(after notice); or

 

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     (c) Other Defaults. (i) Any Loan Party fails to perform or observe any term,
covenant or agreement contained in Section 6.01(e) and 6.10 on its part to
be performed or observed and such failure continues for two Business Days; (ii) any Loan
Party fails to perform or observe any term, covenant or agreement contained in any of
Sections 6.01(a), (b), (c) or (d), 6.17 (other
than Sections 6.17(a)(iv), (v), (vi) or (b)(ii)) on its
part to be performed or observed and such failure continues for five Business Days; (iii)
any Loan Party fails to perform or observe any term, covenant or agreement contained in
Section 6.07 on its part to be performed or observed and such failure continues for
10 Business Days; or (iv) any Loan Party fails to perform or observe any other covenant or
agreement (not specified in Section 8.01(a) or (b), (c)(i),
(c)(ii) or (c)(iii) above) contained in any Loan Document on its part to be
performed or observed and such failure continues for 30 days after notice thereof by the
Administrative Agent to the Specified U.S. Borrower; or

     (d) Representations and Warranties. Any representation, warranty,
certification or statement of fact made or deemed made by or on behalf of any Borrower or
any other Loan Party herein, in any other Loan Document or any amendments or modification
thereof or waiver thereunder, or in any report, Borrowing Base Certificate or in any
document delivered in connection herewith or therewith shall be incorrect or misleading in
any material respect when made or deemed made; or

     (e) Cross-Default. (i) Any Loan Party or any Subsidiary thereof (A) fails to
make any payment (after giving effect to any applicable grace periods) when due (whether by
scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of
any Indebtedness or Guarantee (other than Indebtedness hereunder and Indebtedness under
Swap Contracts) having an aggregate principal amount (including undrawn committed or
available amounts and including amounts owing to all creditors under any combined or
syndicated credit arrangement) of more than the Threshold Amount, or (B) fails to observe
or perform any other agreement or condition relating to any such Indebtedness or Guarantee
or contained in any instrument or agreement evidencing, securing or relating thereto, or
any other event occurs, the effect of which default or other event is to cause, or to
permit the holder or holders of such Indebtedness or the beneficiary or beneficiaries of
such Guarantee (or a trustee or agent on behalf of such holder or holders or beneficiary or
beneficiaries) to cause, with the giving of notice if required, such Indebtedness to be
demanded or to become due or to be repurchased, prepaid, defeased or redeemed
(automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such
Indebtedness to be made, prior to its stated maturity, or such Guarantee to become payable
or cash collateral in respect thereof to be demanded; or (ii) there occurs under any Swap
Contract an Early Termination Date (as defined in such Swap Contract) resulting from (A)
any event of default under such Swap Contract as to which a Loan Party or any Subsidiary
thereof is the Defaulting Party (as defined in such Swap Contract) or (B) any Termination
Event (as so defined) under such Swap Contract as to which a Loan Party or any Subsidiary
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and, in either event, the Swap Termination Value owed by such Loan Party or such Subsidiary as
a result thereof is greater than the Threshold Amount; or

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

     (g) Inability to Pay Debts; Attachment. (i) Any Loan Party or any Subsidiary
thereof becomes unable or admits in writing its inability or fails generally to pay its
debts as they become due, or (ii) any writ or warrant of attachment or execution or similar
process is issued or levied against all or any material part of the property of any such
Person and is not released, vacated or fully bonded within 45 days after its issue or levy;
or

     (h) Judgments. There is entered against any Loan Party or any Subsidiary
thereof (i) one or more final judgments or orders for the payment of money in an aggregate
amount (as to all such judgments and orders) exceeding the Threshold Amount (to the extent
not covered by independent third-party insurance as to which the insurer is rated at least
“A” by A.M. Best Company, has been notified of the potential claim and does not dispute
coverage), or (ii) any one or more non-monetary final judgments that have, or could
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect
and, in either case, (A) enforcement proceedings are commenced by any creditor upon such
judgment or order, or (B) there is a period of 45 consecutive days during which a stay of
enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect;
or

     (i) ERISA. (i) An ERISA Event occurs with respect to a Pension Plan,
Multiemployer Plan or, to the extent applicable, a Canadian Pension Plan, which has
resulted or could reasonably be expected to result in liability of the Borrowers under
Title IV of ERISA to the Pension Plan, Multiemployer Plan, Canadian Pension Plan or the
PBGC or other applicable Governmental Authority that could reasonably be expected to result
in a Material Adverse Effect, (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
that could reasonably be expected to result in a Material Adverse Effect or (iii) any

 

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Canadian Loan Party fails to make a required contribution in respect of a Canadian
Pension Plan and such failure gives rise to a Lien that is not permitted under Section
7.01; or

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

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

     (l) Collateral Documents. Any Collateral Document after delivery thereof
pursuant to Section 4.01 or 6.12 or the terms of the Loan Documents shall
for any reason (other than pursuant to the terms thereof) cease to create a valid and
perfected first priority Lien (subject to Liens permitted by Section 7.01 and the
Intercreditor Agreement) on the Collateral purported to be covered thereby; or

     (m) Subordination. (i) The subordination provisions of the 2012 Senior
Subordinated Notes Indenture or the documents evidencing or governing any other
subordinated Indebtedness (the “Subordination Provisions”) shall, in whole or in
part, terminate, cease to be effective or cease to be legally valid, binding and
enforceable against any holder of the applicable subordinated Indebtedness; or (ii) any
Borrower or any other Loan Party shall, directly or indirectly, disavow or contest in any
manner (A) the effectiveness, validity or enforceability of any of the Subordination
Provisions, (B) that the Subordination Provisions exist for the benefit of the
Administrative Agent, the Lenders and the L/C Issuers or (C) that all payments of principal
of or premium and interest on the applicable subordinated Indebtedness, or realized from
the liquidation of any property of any Loan Party, shall be subject to any of the
Subordination Provisions.

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

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

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

 

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

          If any Event of Default occurs and is continuing, the Collateral Agent may, and at the request
of the Required Lenders shall, exercise on behalf of itself, the Administrative Agent, the Lenders
and the L/C Issuers all rights and remedies available to it, the Administrative Agent, the Lenders
and the L/C Issuers under the Loan Documents;

provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to the Specified U.S. Borrower or the Canadian Borrower under any
Debtor Relief Laws, the obligation of each Lender to make Loans and any obligation of the L/C
Issuers to make L/C Credit Extensions shall automatically terminate, the unpaid principal amount of
all outstanding Loans and all interest and other amounts as aforesaid shall automatically become
due and payable, and the obligation of the Borrowers to Cash Collateralize the L/C Obligations as
aforesaid shall automatically become effective, in each case without further act of any Agent or
any Lender.

          SECTION 8.03. Application of Funds. After the occurrence and during the continuance
of an Event of Default, at the election of the Administrative Agent or the Required Lenders (or
after the Loans have become immediately due and payable and the L/C Obligations have been required
to be Cash Collateralized as set forth in the proviso to Section 8.02), any amounts
received on account of the Obligations shall be applied, subject to the Intercreditor Agreement, by
the Administrative Agent in the following order:

     (a) With respect to amounts received from or on account of any U.S. Loan Party, or in
respect of any U.S. Collateral,

     First, to payment of that of all costs and expenses incurred by the
Administrative Agent and the Collateral Agent (in their respective capacities as
such hereunder or under any other U.S. Loan Document) in connection with the
collection, sale, foreclosure or realization upon any U.S. Collateral or otherwise
in connection with this Agreement, any other U.S. Loan Document or any of the U.S.
Obligations, including all court costs and the fees and expenses of its agents and
legal counsel, the repayment of all advances made by the Administrative Agent
and/or the Collateral Agent hereunder or under any other U.S. Loan Document on
behalf of Holdings or any U.S. Subsidiary Guarantor and any other costs of expenses
incurred in connection with the exercise of any right or remedy hereunder or under
any other U.S. Loan Document;

     Second, to payment in full of U.S. Unfunded Advances/Participations
(the amounts so applied to be distributed between or among the Administrative
Agent, the U.S. Swing Line Lender and the U.S. L/C Issuer pro rata in accordance
with the amounts of U.S. Unfunded Advances/Participations owed to them on the date
of such distribution);

 

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     Third, to payment in full of all other U.S. Obligations (the amounts
so applied to be distributed among the U.S. Secured Parties pro rata in accordance
with the amounts of the U.S. Obligations owed to them on the date of any such
distribution);

     Fourth, to the Canadian Obligations in the order set forth in Section
8.03(b); and

     Fifth, as provided for under the Intercreditor Agreement; and

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

     (b) With respect to amounts received from or on account of any Canadian Loan Party or
in respect of any Canadian Collateral, or, after all of the U.S. Obligations set forth in
clauses first through third above have been indefeasibly paid in full in
accordance with Section 8.03(a), from or on account of any U.S. Loan Party, or in
respect of any U.S. Collateral,

     First, to payment of that of all costs and expenses incurred by the
Administrative Agent and the Collateral Agent (in their respective capacities as
such hereunder or under any other Canadian Loan Document) in connection with the
collection, sale, foreclosure or realization upon any Canadian Collateral or
otherwise in connection with this Agreement, any other Canadian Loan Document or
any of the Canadian Obligations, including all court costs and the fees and
expenses of its agents and legal counsel, the repayment of all advances made by the
Administrative Agent and/or the Collateral Agent hereunder or under any other
Canadian Loan Document on behalf of any Guarantor and any other costs of expenses
incurred in connection with the exercise of any right or remedy hereunder or under
any other Canadian Loan Document;

     Second, to payment in full of Canadian Unfunded
Advances/Participations (the amounts so applied to be distributed between or among
the Administrative Agent, the Canadian Swing Line Lender and the Canadian L/C
Issuer pro rata in accordance with the amounts of Canadian Unfunded
Advances/Participations owed to them on the date of such distribution);

     Third, to payment in full of all other Canadian Obligations (the
amounts so applied to be distributed among the Canadian Secured Parties pro rata in
accordance with the amounts of the Canadian Obligations owed to them on the date of
any such distribution);

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

 

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Subject to Section 2.03(c), amounts used to Cash Collateralize the aggregate undrawn amount
of Letters of Credit pursuant to Section 8.03(a) above, and Section 8.03(b) above,
shall be applied to satisfy drawings under such Letters of Credit as they occur. If any amount
remains on deposit as Cash Collateral after all Letters of Credit have either been fully drawn or
expired, such remaining amount shall be applied to the other Obligations, if any, in the order set
forth above.

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

          SECTION 8.04. Collection Allocation Mechanism. (a) On the CAM Exchange Date, (i)
each U.S. Revolving Credit Lender shall immediately be deemed to have acquired (and shall promptly
make payment therefor to the Administrative Agent in accordance with Section
2.04(A)(c)(ii)) participations in the U.S. Swing Line Loans in an amount equal to such U.S.
Revolving Lender’s Applicable Percentage of each U.S. Swing Line Loan outstanding on such date,
(ii) each U.S. Revolving Credit Lender shall immediately be deemed to have acquired (and shall
promptly make payment therefor to the Administrative Agent in accordance with Section 2.03)
participations in the Outstanding Amount of U.S. L/C Obligations with respect to each U.S. Letter
of Credit in an amount equal to such U.S. Revolving Credit Lender’s Applicable Percentage of the
aggregate amount available to be drawn under such U.S. Letter of Credit, (iii) each Canadian
Revolving Credit Lender shall immediately be deemed to have acquired (and shall promptly make
payment therefor to the Administrative Agent in accordance with Section 2.04(B)(c)(ii))
participations in the Canadian Swing Line Loans in an amount equal to such Canadian Lender’s
Applicable Percentage of each Canadian Swing Line Loan outstanding on such date, (iv) each Canadian
Revolving Credit Lender shall immediately be deemed to have acquired (and shall promptly make
payment therefor to the Administrative Agent in accordance with Section 2.03)
participations in the Outstanding Amount of Canadian L/C Obligations with respect to each Canadian
Letter of Credit in an amount equal to such Canadian Revolving Credit Lender’s Applicable
Percentage of the aggregate amount available to be drawn under such Canadian Letter of Credit, (v)
simultaneously with the automatic conversions pursuant to clause (vi) below, the Lenders shall
automatically and without further act (and without regard to the provisions of Section
10.04) be deemed to have exchanged interests in the Loans (other than the Swing Line Loans) and
participations in the Swing Line Loans and Letters of Credit, such that in lieu of the interest of
each Lender in each Loan, and L/C Obligations in which it shall participate as of such date
(including such Lender’s interest in the Obligations, Guaranties and Collateral of each Loan Party
in respect of each such Loan and L/C Obligations), such Lender shall hold an interest in every one
of the Loans (other than the Swing Line Loans) and a participation in every one of the Swing Line
Loans and all of the L/C Obligations (including the Obligations, Guaranties and Collateral of each
Loan Party in respect

 

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of each such Loan), whether or not such Lender shall previously have participated therein,
equal to such Lender’s CAM Percentage thereof and (vi) simultaneously with the deemed exchange of
interests pursuant to clause (v) above, the interest in the Loans denominated in Canadian Dollars
to be received in such deemed exchange shall be converted into Obligations denominated in Dollars
and on and after such date all amounts accruing and owed to Lenders in respect of such Obligations
shall accrue and be payable in Dollars at the rates otherwise applicable hereunder. Each Lender
and each Loan Party hereby consents and agrees to the CAM Exchange, and each Lender agrees that the
CAM Exchange shall be binding upon its successors and assigns and any person that acquires a
participation in its interests in any Loan or any participation in any Swing Line Loan or Letter of
Credit. Each Loan Party agrees from time to time to execute and deliver to the Administrative
Agent all such promissory notes and other instruments and documents as the Administrative Agent
shall reasonably request to evidence and confirm the respective interests of the Lenders after
giving effect to the CAM Exchange, and each Lender agrees to surrender any promissory notes
originally received by it in connection with its Loans hereunder to the Administrative Agent
against delivery of any promissory notes evidencing its interests in the Loans so executed and
delivered; provided, however, that the failure of any Loan Party to execute or
deliver or of any Lender to accept any such promissory note, instrument or document shall not
affect the validity or effectiveness of the CAM Exchange:

          (b) As a result of the CAM Exchange, upon and after the CAM Exchange Date, each payment
received by Administrative Agent pursuant to any Loan Document in respect of any of the
Obligations, and each distribution made by the Administrative Agent in respect of the Obligations,
shall be distributed to the Lenders pro rata in accordance with their respective CAM Percentages.
Any direct payment received by a Lender upon or after the CAM Exchange Date, including by way of
setoff, in respect of an Obligation shall be paid over to the Administrative Agent for distribution
to the Lenders in accordance herewith.

ARTICLE IX

The Agents

          SECTION 9.01. Appointment and Authority. (a) Each of the Lenders (including in its
capacities as a potential Hedge Bank and a potential Cash Management Bank) and each L/C Issuer
hereby irrevocably appoints the Administrative Agent and the Collateral Agent to act on its behalf
as its agents hereunder and under the other Loan Documents and authorizes the Agents to take such
actions on its behalf and to exercise such powers as are delegated to the Agents by the terms
hereof or thereof, together with such actions and powers as are reasonably incidental thereto.
Except for Section 9.06, the provisions of this Article are solely for the benefit of the
Agents, the Lenders and the L/C Issuers, and neither the Borrowers nor any other Loan Parties shall
have rights as a third party beneficiary of any of such provisions.

          (b) For the purposes of creating a solidarité active in accordance with Article 1541 of the
Civil Code of Quebec between each Secured Party, taken individually, on the one hand, and the
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Secured Party acknowledges and agrees with the Administrative Agent that such Secured Party
and the Agents are hereby conferred the legal status of solidary creditors of each such Loan Party
in respect of all Obligations owed by each such Loan Party to the Agents and such Secured Party
hereunder and under the other Loan Documents (collectively, the “Solidary Claim”) and that,
accordingly, but subject (for the avoidance of doubt) to Articles 1542 and 1543 of the Civil Code
of Québec, each such Loan Party is irrevocably bound towards the Agents and each Secured Party in
respect of the entire Solidary Claim of the Agents and such Secured Party. As a result of the
foregoing, the parties hereto acknowledge that the Agents and each Secured Party shall at all times
have a valid and effective right of action for the entire Solidary Claim of the Agents and such
Secured Party and the right to give full acquittance for it. Accordingly, and without limiting the
generality of the foregoing, each Agent, as solidary creditor with each Secured Party, shall at all
times have a valid and effective right of action in respect of the Solidary Claim and the right to
give a full acquittance for same. By its execution of the Loan Documents to which it is a party,
each such Loan Party and Secured Party not a party hereto shall also be deemed to have accepted the
stipulations hereinabove provided. The parties further agree and acknowledge that such Liens
(hypothecs) under the Collateral Documents and the other Loan Documents shall be granted to the
Collateral Agent, for its own benefit and for the benefit of the Secured Parties, as solidary
creditor as hereinabove set forth.

          SECTION 9.02. Rights as a Lender. Each Person serving as an 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 an Agent and the term “Lender” or “Lenders” shall, unless otherwise
expressly indicated or unless the context otherwise requires, include the Person serving as an
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 Borrower or any Subsidiary or other Affiliate
thereof as if such Person were not an Agent hereunder and without any duty to account therefor to
the Lenders.

          SECTION 9.03. Exculpatory Provisions. The Agents 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, neither Agent:

     (a) shall not be subject to any fiduciary or other implied duties, regardless of
whether a 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 such Agent is required to exercise as directed in
writing by the Required Lenders, Required U.S. Lenders or Required Canadian 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 such Agent shall not be required to
take any action that, in its opinion or the opinion of its counsel, may expose such Agent
to liability or that is contrary to any Loan Document or applicable law; and

 

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     (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 Borrower or any of its Affiliates that is communicated to or
obtained by the Person serving as an Agent or any of its Affiliates in any capacity.

          Neither 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 such Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Sections 10.01 and 8.02) or (ii) in the absence of its
own gross negligence or willful misconduct. Neither Agent shall be deemed to not have written
knowledge of any Default unless and until notice describing such Default is given to such Agent by
a Borrower, a Lender or an L/C Issuer.

          Neither Agent shall not be responsible for or have any duty to ascertain or inquire into (i)
any statement, warranty or representation made in or in connection with this Agreement or any other
Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder
or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of
the covenants, agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this
Agreement, any other Loan Document or any other agreement, instrument or document, or the creation,
perfection or priority of any Lien purported to be created by the Collateral Documents, (v) the
value or the sufficiency of any Collateral, or (v) the satisfaction of any condition set forth in
Article IV or elsewhere herein, other than to confirm receipt of items expressly required
to be delivered to the Agents.

          SECTION 9.04. Reliance by Administrative Agent. The Agents 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 Agents 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 an L/C Issuer, the Administrative
Agent may presume that such condition is reasonably satisfactory to such Lender or such L/C Issuer
unless the Administrative Agent shall have received notice to the contrary from such Lender or such
L/C Issuer prior to the making of such Loan or the issuance of such Letter of Credit. Each Agent
may consult with legal counsel (who may be counsel for the Borrowers), independent accountants and
other experts selected by it, and shall not be liable for any action taken or not taken by it in
accordance with the advice of any such counsel, accountants or experts.

          SECTION 9.05. Delegation of Duties. (a) Each 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 individual(s) or institution(s) as separate trustee(s), co-trustee(s),

 

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collateral agent(s), collateral sub-agent(s) or collateral co-agent(s) (any such additional
individual or institution being referred to herein as a “Supplemental Collateral Agent”)
appointed by such Agent. Each Agent and any such sub-agent may perform any and all of its duties
and exercise its rights and powers by or through their respective Related Parties. The exculpatory
provisions of this Article shall apply to any such sub-agent and to the Related Parties of the
Agents 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 Agents.

          (b) In the event that the Collateral Agent appoints a Supplemental Collateral Agent with
respect to any Collateral, (i) each and every right, power, privilege or duty expressed or intended
by this Agreement or any of the other Loan Documents to be exercised by or vested in or conveyed to
the Collateral Agent with respect to such Collateral shall be exercisable by and vest in such
Supplemental Collateral Agent to the extent, and only to the extent, necessary to enable such
Supplemental Collateral Agent to exercise such rights, powers and privileges with respect to such
Collateral and to perform such duties with respect to such Collateral, and every covenant and
obligation contained in the Loan Documents and necessary to the exercise or performance thereof by
such Supplemental Collateral Agent shall run to and be enforceable by either the Collateral Agent
or such Supplemental Collateral Agent, and (ii) the provisions of this Article and of Section
10.04 that refer to the Collateral Agent shall inure to the benefit of such Supplemental
Collateral Agent and all references therein to the Collateral Agent shall be deemed to be
references to the Collateral Agent and/or such Supplemental Collateral Agent, as the context may
require.

          (c) Should any instrument in writing from any Loan Party be required by any Supplemental
Collateral Agent so appointed by the Collateral Agent for more fully and certainly vesting in and
confirming to him or it such rights, powers, privileges and duties, such Loan Party shall execute,
acknowledge and deliver any and all such instruments promptly upon request by the Collateral Agent.
In case any Supplemental Collateral Agent, or a successor thereto, shall die, become incapable of
acting, resign or be removed, all the rights, powers, privileges and duties of such Supplemental
Collateral Agent, to the extent permitted by law, shall vest in and be exercised by the Collateral
Agent until the appointment of a new Supplemental Collateral Agent.

          SECTION 9.06. Resignation of Administrative Agent. Each Agent may at any time give
notice of its resignation to the Lenders, the L/C Issuers and the Borrowers. Upon receipt of any
such notice of resignation, the Required Lenders shall have the right, with consent of with the
Specified U.S. Borrower (so long as no Event of Default has occurred and be continuing), to appoint
a successor, which shall be a bank with an office in the United States, or an Affiliate of any such
bank with an office in the United States and Canada. If no such successor shall have been so
appointed by the Required Lenders and shall have accepted such appointment within 30 days after the
retiring Agent gives notice of its resignation, then the retiring Agent may on behalf of the
Lenders and the L/C Issuers, appoint a successor Agent meeting the qualifications set forth above.
Upon the acceptance of a successor’s appointment as Agent hereunder, such successor shall succeed
to and become vested with all of the rights, powers, privileges and duties of the retiring (or
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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 Agent shall be the same as those payable to its predecessor unless
otherwise agreed between the Borrowers and such successor. After the retiring Agent’s resignation
hereunder and under the other Loan Documents, the provisions of this Article and Section
10.04 shall continue in effect for the benefit of such retiring Agent, its sub-agents and their
respective Related Parties in respect of any actions taken or omitted to be taken by any of them
while the retiring Agent was acting as Agent.

          SECTION 9.07. Non-Reliance on Administrative Agent and Other Lenders. Each Lender
and each L/C Issuer acknowledges that it has, independently and without reliance upon either 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 each L/C Issuer also acknowledges that it will, independently and without reliance
upon either Agent or any other Lender or any of their Related Parties and based on such documents
and information as it shall from time to time deem appropriate, continue to make its own decisions
in taking or not taking action under or based upon this Agreement, any other Loan Document or any
related agreement or any document furnished hereunder or thereunder.

          SECTION 9.08. No Other Duties, Etc. Anything herein to the contrary notwithstanding,
none of the Bookrunner or the Syndication Agent listed on the cover page hereof shall have any
powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except
in its capacity, as applicable, as the Administrative Agent, the Collateral Agent, a Lender or an
L/C Issuer hereunder.

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

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

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

 

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

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

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

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

     (b) to release any Guarantor from its obligations under the Guaranties if such Person
ceases to be a Subsidiary as a result of a transaction permitted hereunder; and

     (c) to subordinate any Lien on any property granted to or held by the Collateral Agent
under any Loan Document to the holder of any Lien on such property that is permitted by
Section 7.01(i).

          Upon request by the Collateral Agent at any time, the Required Lenders will confirm in writing
the Collateral Agent’s authority to release or subordinate its interest in particular types or
items of property, or to release any Guarantor from its obligations under a Guaranty pursuant to
this Section 9.10. In each case as specified in this Section 9.10, the Collateral
Agent will, at the Borrowers’ expense, execute and deliver to the applicable Loan Party such
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request to evidence the release of such item of Collateral from the assignment and security
interest granted under the Collateral Documents or to subordinate its interest in such item, or to
release such Guarantor from its obligations under the Guaranties, in each case in accordance with
the terms of the Loan Documents and this Section 9.10.

          SECTION 9.11. Secured Cash Management Agreements and Secured Hedge Agreements. No
Cash Management Bank or Hedge Bank that obtains the benefits of Section 8.03, the any
Guaranty or any Collateral by virtue of the provisions hereof or of any Guaranty or any Collateral
Document shall have any right to notice of any action or to consent to, direct or object to any
action hereunder or under any other Loan Document or otherwise in respect of the Collateral
(including the release or impairment of any Collateral) other than in its capacity as a Lender and,
in such case, only to the extent expressly provided in the Loan Documents. Notwithstanding any
other provision of this Article IX to the contrary, the Administrative Agent shall not be required
to verify the payment of, or that other reasonably satisfactory arrangements have been made with
respect to, Obligations arising under Secured Cash Management Agreements and Secured Hedge
Agreements unless the Administrative Agent has received written notice of such Obligations,
together with such supporting documentation as the Administrative Agent may request, from the
applicable Cash Management Bank or Hedge Bank, as the case may be. Upon the request of the
Administrative Agent at any time, the Hedge Banks and the Cash Management Banks shall provide to
the Administrative Agent a summary of outstanding obligations under any Cash Management Agreements
or Swap Contracts secured by a Lien on any asset of any Loan Party, as of such date as may be
reasonably requested by the Administrative Agent, showing the aggregate amount of such obligations
determined on a marked-to-market basis and such other information reasonably requested by the
Administrative Agent. At the request of the Administrative Agent from time to time, the Hedge
Banks and the Cash Management Banks shall provide to the Administrative Agent copies of any Cash
Management Agreements or Swap Contracts pursuant to which obligations secured by a Lien on any
asset of any Loan Party have been incurred.

ARTICLE X

Miscellaneous

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

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

 

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     (b) increase the aggregate Commitments under the Revolving Credit Facility to an
amount greater than $200,000,000 without the consent of each Lender;

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

     (d) reduce the principal of, or the rate of interest specified herein on, any Loan or
L/C Borrowing, or (subject to clause (iv) of the second proviso to this Section 10.01) any
fees or other amounts payable hereunder or under any other Loan Document without the
written consent of each Lender entitled to such amount; provided, however,
that only the consent of the Required Lenders and the Administrative Agent shall be
necessary to waive any obligation of the Borrowers to pay interest or Letter of Credit Fees
at the Default Rate;

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

     (f) change (i) any provision of this Section 10.01 or the definition of
“Required Lenders”, “Required U.S. Lenders”, “Required Canadian Lenders” or “Supermajority
Lenders” or any other provision hereof specifying the number or percentage of Lenders
required to amend, waive or otherwise modify any rights hereunder or make any determination
or grant any consent hereunder (other than the definitions specified in clause (ii) of this
Section 10.01(g)), without the written consent of each Lender;

     (g) release all or substantially all of the Collateral in any transaction or series of
related transactions, without the written consent of each Lender (unless all Obligations
have been paid in full in cash and the Commitments terminated);

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

     (i) amend, modify or waive any provision of this Agreement, in each case governing the
rights of the Lenders under any Facility, without the written consent of Lenders holding a
majority in interest of the obligations under such Facility, if such amendment,
modification or waiver, or such provision, by its express terms applies only to such
Facility (or only to the Lenders thereunder) and if such amendment, modification or waiver
adversely affects the Lenders under such Facility;

     (j) increase the advance rates set forth in the definition of the terms “U.S.
Borrowing Base” or “Canadian Borrowing Base”, or reduce the amounts set forth

 

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in the definition of the terms “Cash Dominion Event” or “Covenant Trigger Event”,
without the written consent of the Supermajority Lenders;

     (k) change or otherwise modify the eligibility criteria, eligible asset classes,
reserves, sublimits in respect of any Borrowing Base, or add new asset categories to any
Borrowing Base, or otherwise cause any Borrowing Base or availability under the Revolving
Credit Facility provided for herein to be increased, in each case without the written
consent of the Supermajority Lenders; provided that this clause (j) shall
not limit the discretion of the Administrative Agent to change, establish or eliminate any
reserves, to add assets acquired in a Permitted Acquisition to any Borrowing Base or to
otherwise exercise its discretion or Credit Judgment in respect of any determination
expressly provided hereunder to be made by the Administrative Agent in its discretion or
Credit Judgment, all to the extent otherwise set forth herein; or

     (l) amend, modify or change the provisions of Section 8.04 or the definition
of “CAM Percentage” without the written consent of each Lender;

provided, further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the applicable L/C Issuer in addition to the Lenders required above, affect
the rights or duties of such L/C Issuer under this Agreement or any Issuer Document relating to any
Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless
in writing and signed by the applicable Swing Line Lender in addition to the Lenders required
above, affect the rights or duties of such Swing Line Lender under this Agreement; (iii) no
amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in
addition to the Lenders required above, affect the rights or duties of the Administrative Agent
under this Agreement or any other Loan Document; and (iv) the Fee Letter may be amended, or rights
or privileges thereunder waived, in a writing executed only by the parties thereto.
Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to
approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of
such Lender may not be increased or extended without the consent of such Lender.

          If any Lender does not consent to a proposed amendment, waiver, consent or release with
respect to any Loan Document that requires the consent of more than the Required Lenders and that
has been approved by the Required Lenders, the Borrowers may replace such non-consenting Lender in
accordance with Section 10.13; provided that such amendment, waiver, consent or
release can be effected as a result of the assignment contemplated by such Section (together with
all other such assignments required by the Borrowers to be made pursuant to this paragraph).

          Each Loan Party acknowledges the agreements set forth in the Fee Letter and agrees that it
will execute and deliver such amendments to the Loan Documents as shall be deemed advisable by the
Bookrunner to give effect to the provisions of the Fee Letter. Notwithstanding anything to the
contrary in this Section 10.01, the Administrative Agent and the Loan Parties shall be
permitted to execute and deliver such amendments and such amendments shall become effective without
any further action or

 

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consent of any other party to any Loan Document if the same is not objected to in writing by
the Required Lenders within five (5) Business Days following receipt of notice thereof.

          Subject to the restrictions set forth in the foregoing subparagraphs 10.01(a) to (j),
but notwithstanding anything else to the contrary contained in this Section 10.01, (a) with
respect to any provision contained in this Agreement relating to any Facility, the Administrative
Agent, the Borrowers and a majority in interest of the Lenders under such Facility shall be
permitted to amend such provision, without the consent of any other Lender, solely to the extent
reasonably necessary or advisable to (i) comply with Applicable Law relating to such Facility or
(ii) better implement the intentions of this Agreement with respect to such Facility, and, in the
case of any amendment made pursuant to this clause (ii), solely to the extent that such amendment
does not impair the rights, obligations or interests of any other Lender under this Agreement in
any material respect and (b) at any time on or before the date that is sixty (60) days after the
Closing Date, the Administrative Agent and the Borrowers shall have jointly identified an obvious
error or any error or omission of a technical or immaterial nature, in each case, in any provision
of the Loan Documents, then the Administrative Agent and the Borrowers shall be permitted to amend
such provision and such amendment shall become effective without any further action or consent of
any other party to any Loan Document if the same is not objected to in writing by the Required
Lenders within five (5) Business Days following receipt of notice thereof.

          Notwithstanding the foregoing provisions of this Section 10.01, technical and conforming
modifications to the Loan Documents may be made with the consent of the Borrowers and the
Administrative Agent to the extent necessary to integrate any Incremental Revolving Credit
Commitments on substantially the same basis as the Revolving Credit Commitments.

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

     (i) if to the Borrowers, the Borrower Agent, the Administrative Agent, the Collateral
Agent, the L/C Issuers or the Swing Line Lenders, to the address, telecopier number,
electronic mail address or telephone number specified for such Person on Schedule
10.02; and

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

Notices and other communications sent by hand or overnight courier service, or mailed by certified
or registered mail, shall be deemed to have been given when received; notices and other
communications sent by telecopier shall be deemed to have been given

 

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when sent (except that, if not given during normal business hours for the recipient, shall be
deemed to have been given at the opening of business on the next business day for the recipient).
Notices and other communications delivered through electronic communications to the extent provided
in subsection (b) below shall be effective as provided in such subsection (b).

          Each Loan Party located outside of the U.S. hereby irrevocably appoints the Borrower Agent as
its agent to receive on behalf of such Loan Party and its property service of copies of the summons
and complaint and any other process which may be served in any such action or proceeding. Such
service may be made by mailing or delivering a copy of such process to such Loan Party in care of
the Borrower Agent at the Borrower Agent’s address specified in this Agreement, and such Loan Party
hereby irrevocably authorizes and directs the Borrower Agent to accept such service on its behalf.
As an alternative method of service, each Loan Party also irrevocably consents to the service of
any and all process in any such action or proceeding by the mailing of copies of such process to
such Loan Party at its address specified in this Agreement.

          (b) Electronic Communications. Notices and other communications to the Lenders and
the L/C Issuers 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 any L/C
Issuer pursuant to Article II if such Lender or such L/C Issuer, as applicable, has
notified the Administrative Agent that it is incapable of receiving notices under such Article by
electronic communication. The Administrative Agent or the Borrowers may, in their 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.

          (c) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR
THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE
BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED

 

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OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY
ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM. In no event shall the
Agents or the Bookrunner or any of their Related Parties (collectively, the “Agent
Parties”) have any liability to the Borrowers or any other Loan Parties, any Lender, any L/C
Issuer or any other Person for losses, claims, damages, liabilities or expenses of any kind
(whether in tort, contract or otherwise) arising out of the Borrowers’ or any Agent’s or any
Arranger’s transmission of Borrower Materials through the Internet, except to the extent that such
losses, claims, damages, liabilities or expenses are determined by a court of competent
jurisdiction by a final and nonappealable judgment to have resulted from the gross negligence or
willful misconduct of such Agent Party; provided, however, that in no event shall
any Agent Party have any liability to any Borrower, any other Loan Party, any Lender, any L/C
Issuer or any other Person for indirect, special, incidental, consequential or punitive damages (as
opposed to direct or actual damages).

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

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

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

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

          SECTION 10.04. Expenses; Indemnity; Damage Waiver. (a) Costs and Expenses.
The Borrowers shall pay (i) all reasonable out-of-pocket expenses incurred by the Bookrunner,
Administrative Agent, the Collateral Agent and their respective Affiliates (including the
reasonable fees, charges and disbursements of counsel for the Agents and the Bookrunner), in
connection with the syndication of the credit facilities provided for herein, the preparation,
negotiation, execution, delivery and administration of this Agreement and the other Loan Documents
or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the
transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable
out-of-pocket expenses incurred by each L/C Issuer in connection with the issuance, amendment,
renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all
out-of-pocket expenses incurred by any Agent, any Lender or any L/C Issuer (including the fees,
charges and disbursements of any counsel for the Agents, any Lender

 

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or any L/C Issuer) in connection with the enforcement or protection of its rights (A) in
connection with this Agreement and the other Loan Documents, including its rights under this
Section, or (B) in connection with Loans made or Letters of Credit issued hereunder, including all
such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect
of such Loans or Letters of Credit.

          (b) Indemnification by the Borrowers. The Borrowers shall jointly and severally
indemnify each Agent (and any sub-agent thereof), each Lender and each L/C Issuer, and each Related
Party of any of the foregoing Persons (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities
and reasonably related expenses (including the reasonable fees, charges and disbursements of any
counsel for any Indemnitee) incurred by any Indemnitee or asserted against any Indemnitee by any
third party or by any Borrower or any other Loan Party arising out of, in connection with, or as a
result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement
or instrument contemplated hereby or thereby, the performance by the parties hereto of their
respective obligations hereunder or thereunder or the consummation of the transactions contemplated
hereby or thereby, or, in the case of any Agent (and any sub-agent thereof) and its Related Parties
only, the administration of this Agreement and the other Loan Documents, (ii) any Loan or Letter of
Credit or the use or proposed use of the proceeds therefrom (including any refusal by any L/C
Issuer to honor a demand for payment under a Letter of Credit if the documents presented in
connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii)
any actual or alleged presence or release of Hazardous Materials on or from any property owned or
operated by any Borrower or any of its Subsidiaries, or any Environmental Liability related in any
way to any Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory, whether brought by a third party or by any Borrower or any
other Loan Party or any such Borrower’s or such Loan Party’s directors, shareholders or creditors,
and regardless of whether any Indemnitee is a party thereto; provided that such indemnity
shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses 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.

          (c) Reimbursement by Lenders. To the extent that any Borrower for any reason fails
to indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by
it to any Agent (or any sub-agent thereof), any L/C Issuer or any Related Party of any of the
foregoing, each Lender severally agrees to pay to such Agent (or any such sub-agent), such L/C
Issuer or such Related Party, as the case may be, such Lender’s Applicable Percentage (determined
as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such
unpaid amount, provided that the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted against the Agent (or
any such sub-agent) or any L/C Issuer in its capacity as such, or against any Related Party of any
of the foregoing acting for the Agent (or any such sub-agent) or any L/C Issuer in

 

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connection with such capacity. The obligations of the Lenders under this subsection (c) are
subject to the provisions of Section 2.12(d).

          (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable law, no Borrower shall assert, and hereby waives, any claim against any Indemnitee, on
any theory of liability, for special, indirect, consequential or punitive damages (as opposed to
direct or actual damages) arising out of, in connection with, or as a result of, this Agreement,
any other Loan Document or any agreement or instrument contemplated hereby, the transactions
contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof.
No Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the
use by unintended recipients of any information or other materials distributed to such unintended
recipients by such Indemnitee through telecommunications, electronic or other information
transmission systems in connection with this Agreement or the other Loan Documents or the
transactions contemplated hereby or thereby other than for direct or actual damages resulting from
the gross negligence or willful misconduct of such Indemnitee as determined by a final and
nonappealable judgment of a court of competent jurisdiction.

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

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

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

          SECTION 10.06. Successors and Assigns. (a) Successors and Assigns Generally.
The provisions of this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns permitted hereby, except that neither the
Borrowers nor any other Loan Parties may assign or otherwise transfer any of its

 

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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 10.06(b),
(ii) by way of participation in accordance with the provisions of Section 10.06(d), or
(iii) by way of pledge or assignment of a security interest subject to the restrictions of
Section 10.06(f) (and any other attempted assignment or transfer by any party hereto shall
be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer
upon any Person (other than the parties hereto, their respective successors and assigns permitted
hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent
expressly contemplated hereby, the Related Parties of each of the Agents, each L/C Issuer and the
Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

          (b) Assignments by Lenders. Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment(s) and the Loans (including for purposes of this Section
10.06(b), participations in L/C Obligations and in Swing Line Loans) at the time owing to it);
provided that any such assignment shall be subject to the following conditions:

          (i) Minimum Amounts. (A)in the case of an assignment of the entire remaining amount
of the assigning Lender’s Commitment under any Facility and the Loans at the time owing to it under
such Facility or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved
Fund, no minimum amount need be assigned; and

     (B) in any case not described in subsection (b)(i)(A) of this Section, the
aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) or, if the Commitment is not then in effect, the principal
outstanding balance of the Loans of the assigning Lender subject to each such
assignment, determined as of the date the Assignment and Assumption with respect to
such assignment is delivered to the Administrative Agent or, if “Trade Date” is
specified in the Assignment and Assumption, as of the Trade Date, shall not be less
than $1,000,000, unless each of the Administrative Agent and, so long as no Event
of Default has occurred and is continuing, the applicable Borrower otherwise
consents (each such consent not to be unreasonably withheld or delayed);
provided, however, that concurrent assignments to members of an
Assignee Group and concurrent assignments from members of an Assignee Group to a
single Eligible Assignee (or to an Eligible Assignee and members of its Assignee
Group) will be treated as a single assignment for purposes of determining whether
such minimum amount has been met;

          (ii) Proportionate Amounts. Each partial assignment shall be made as an assignment
of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement
with respect to the Loans or the Commitment assigned, except that this clause (ii) shall not (A)
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respect of the applicable Swing Line Loans or (B) prohibit any Lender from assigning all or a
portion of its rights and obligations among separate Facilities on a non-pro rata basis.

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

     (A) the consent of the applicable Borrower (such consent not to be
unreasonably withheld or delayed) shall be required unless (1) an Event of Default
has occurred and is continuing at the time of such assignment (2) such assignment
is to a Lender, an Affiliate of a Lender or an Approved Fund or (3) during the
primary syndication of the Loans and Commitments;

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

     (C) the consent of the applicable L/C Issuer (such consent not to be
unreasonably withheld or delayed) shall be required for any assignment that
increases the obligation of the assignee to participate in exposure under one or
more Letters of Credit (whether or not then outstanding); and

     (D) the consent of the applicable Swing Line Lender (such consent not to be
unreasonably withheld or delayed) shall be required for any assignment in respect
of the Revolving Credit Facility.

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

          (v) No Assignment to Borrower. No such assignment shall be made to a Borrower or any
Borrower’s Affiliates or Subsidiaries.

          (vi) No Assignment to Natural Persons. No such assignment shall be made to a natural
person.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c)
of this Section, from and after the effective date specified in each Assignment and Assumption, the
assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by
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Assumption, be released from its obligations under this Agreement (and, in the case of an
Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the
benefits of Sections 3.01, 3.04, 3.05 and 10.04 with respect to
facts and circumstances occurring prior to the effective date of such assignment. Upon request,
the applicable Borrower (at its expense) shall execute and deliver a Note to the assignee Lender.
Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not
comply with this subsection shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with Section
10.06(d). No assignee (including an assignee that is already a Lender hereunder at the time of
the assignment) shall be entitled to receive any greater amount pursuant to Section 3.01
than that to which the assignor would have been entitled to receive had no such assignment
occurred.

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

          (d) Participations. Any Lender may at any time, without the consent of, or notice
to, any Borrower or the Administrative Agent, sell participations to any Person (other than a
natural person or any Borrower or any Borrower’s Affiliates or Subsidiaries) (each, a
“Participant”) in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans (including such Lender’s
participations in L/C Obligations and/or Swing Line Loans) owing to it); provided that (i)
such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of such obligations and
(iii) the Borrowers, the Administrative Agent, the Lenders and the L/C Issuer shall continue to
deal solely and directly with such Lender in connection with such Lender’s rights and obligations
under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to enforce this Agreement
and to approve any amendment, modification or waiver of any provision of this Agreement;
provided that such agreement or instrument may provide that such Lender will not, without
the consent of the Participant, agree to any amendment, waiver or other modification described in
the first proviso to Section 10.01 that affects such Participant. Subject to
subsection (e) of this Section, each Borrower agrees that each Participant shall be
entitled to the benefits of Sections 3.01, 3.04 and 3.05 to the same

 

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extent as if it were a Lender and had acquired its interest by assignment pursuant to
Section 10.06(b). To the extent permitted by law, each Participant also shall be entitled
to the benefits of Section 10.08 as though it were a Lender, provided such
Participant agrees to be subject to Section 2.13 as though it were a Lender.

          (e) Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Section 3.01 or 3.04 than the applicable Lender
would have been entitled to receive with respect to the participation sold to such Participant. A
Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the
benefits of Section 3.01 unless the applicable Borrower is notified of the participation
sold to such Participant and such Participant agrees, for the benefit of such Borrower, to comply
with Section 3.01(e) as though it were a Lender.

          (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement (including under its Note, if any) to
secure obligations of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender
from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as
a party hereto.

          (g) Resignation as L/C Issuer or Swing Line Lender after Assignment. Notwithstanding
anything to the contrary contained herein, if at any time Credit Suisse assigns all of its
Revolving Credit Commitment and Revolving Credit Loans pursuant to Section 10.06(b), Credit
Suisse may, (i) upon 30 days’ notice to the Borrowers and the Lenders, resign as U.S. L/C Issuer
and Canadian L/C Issuer and/or (ii) upon 30 days’ notice to the Borrowers, resign as U.S. Swing
Line Lender and Canadian Swing Line Lender. In the event of any such resignation as L/C Issuer or
Swing Line Lender, the Borrower Agent shall be entitled to appoint from among the Lenders a
successor L/C Issuer or Swing Line Lender hereunder; provided, however, that no
failure by the Borrower Agent to appoint any such successor shall affect the resignation of Credit
Suisse as L/C Issuer or Swing Line Lender, as the case may be. If Credit Suisse resigns as L/C
Issuer, it shall retain all the rights, powers, privileges and duties of an L/C Issuer hereunder
with respect to all Letters of Credit outstanding as of the effective date of its resignation as
L/C Issuer and all L/C Obligations with respect thereto (including the right to require the Lenders
to make Base Rate Loans, Canadian Base Rate Loans or Canadian Prime Rate Loans, as applicable, or
fund risk participations in Unreimbursed Amounts pursuant to Section 2.03(c)). If Credit
Suisse resigns as Swing Line Lender, it shall retain all the rights of a Swing Line Lender provided
for hereunder with respect to Swing Line Loans made by it and outstanding as of the effective date
of such resignation, including the right to require the Lenders to make Base Rate Loans, Canadian
Base Rate Loans or Canadian Prime Rate Loans, as applicable, or fund risk participations in
outstanding Swing Line Loans pursuant to Section 2.04(c). Upon the appointment of a
successor L/C Issuer and/or Swing Line Lender, (a) such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer or Swing
Line Lender, as the case may be, and (b) the successor L/C Issuer shall issue letters of credit in
substitution for the Letters of Credit, if any, outstanding at the time of such

 

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succession or make other arrangements satisfactory to Credit Suisse to effectively assume the
obligations of Credit Suisse with respect to such Letters of Credit.

          SECTION 10.07. Treatment of Certain Information; Confidentiality. Each of the
Administrative Agent, the Collateral Agent, the Lenders and the L/C Issuers agrees to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed (a)
to its Affiliates and to its and its Affiliates’ respective partners, directors, officers,
employees, agents, advisors and representatives (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such Information and instructed
to keep such Information confidential), (b) to the extent requested by any regulatory authority
purporting to have jurisdiction over it (including any self-regulatory authority, such as the
National Association of Insurance Commissioners), (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies hereunder or under any other Loan Document or any
action or proceeding relating to this Agreement or any other Loan Document or the enforcement of
rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the
same as those of this Section, to (i) any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any
actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating
to any Borrower and its obligations, (g) with the consent of the applicable Borrower or (h) to the
extent such Information (i) becomes publicly available other than as a result of a breach of this
Section or (ii) becomes available to the Administrative Agent, the Collateral Agent, any Lender,
any L/C Issuer or any of their respective Affiliates on a nonconfidential basis from a source other
than a Borrower. In addition, the Administrative Agent, each Joint Bookrunner and each Lender may
disclose the existence of this Agreement and the information about this Agreement to market data
collectors, similar service providers to the lending industry, and service providers in connection
with the administration and management of this Agreement and the other Loan Documents.

          For purposes of this Section, “Information” means all information received from any
Loan Party or any Subsidiary thereof relating to any Loan Party or any Subsidiary thereof or their
respective businesses, other than any such information that is available to the Administrative
Agent, the Collateral Agent, any Lender or any L/C Issuer on a nonconfidential basis prior to
disclosure by any Loan Party or any Subsidiary thereof, provided that, in the case of
information received from a Loan Party or any such Subsidiary after the date hereof, such
information is clearly identified at the time of delivery as confidential. Any Person required to
maintain the confidentiality of Information as provided in this Section shall be considered to have
complied with its obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord to its own
confidential information.

          Each of the Administrative Agent, the Collateral Agent, the Lenders and the L/C Issuers
acknowledges that (a) the Information may include material non-public information concerning the
Borrowers or a Subsidiary, as the case may be, (b) it has developed compliance procedures regarding
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and (c) it will handle such material non-public information in accordance with applicable Law,
including United States Federal and state securities Laws.

          SECTION 10.08. Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender, each L/C Issuer and each of their respective Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted by applicable law, to
set off and apply any and all deposits (general or special, time or demand, provisional or final,
in whatever currency) at any time held and other obligations (in whatever currency) at any time
owing by such Lender, such L/C Issuer or any such Affiliate to or for the credit or the account of
any Borrower or any other Loan Party against any and all of the obligations of such Borrower or
such Loan Party now or hereafter existing under this Agreement or any other Loan Document to such
Lender or such L/C Issuer, irrespective of whether or not such Lender or such L/C Issuer shall have
made any demand under this Agreement or any other Loan Document and although such obligations of
such Borrower or such Loan Party may be contingent or unmatured or are owed to a branch or office
of such Lender or such L/C Issuer different from the branch or office holding such deposit or
obligated on such indebtedness. The rights of each Lender, each L/C Issuer and their respective
Affiliates under this Section are in addition to other rights and remedies (including other rights
of setoff) that such Lender, such L/C Issuer or their respective Affiliates may have. Each Lender
and each L/C Issuer agrees to notify the applicable Borrower and the Administrative Agent promptly
after any such setoff and application, provided that the failure to give such notice shall not
affect the validity of such setoff and application. No Lender shall set off against any Dominion
Account without the prior consent of Collateral Agent.

          SECTION 10.09. Interest Rate Limitation. Notwithstanding anything to the contrary
contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents
shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the
“Maximum Rate”). If the Administrative Agent or any Lender shall receive interest in an
amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the
Loans or, if it exceeds such unpaid principal, refunded to the applicable Borrowers. In
determining whether the interest contracted for, charged, or received by the Administrative Agent
or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law,
(a) characterize any payment that is not principal as an expense, fee, or premium rather than
interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate,
allocate, and spread in equal or unequal parts the total amount of interest throughout the
contemplated term of the Obligations hereunder. Without limiting the generality of the foregoing,
if any provision of any of the Loan Documents would obligate Canadian Loan Parties to make any
payment of interest with respect to the Canadian Obligations in an amount or calculated at a rate
which would be prohibited by applicable Law or would result in the receipt of interest with respect
to the Canadian Obligations at a criminal rate (as such terms are construed under the Criminal Code
(Canada)), then notwithstanding such provision, such amount or rates shall be deemed to have been
adjusted with retroactive effect to the maximum amount or rate of interest, as the case may be, as
would not be so prohibited by law or so result in a receipt by the applicable recipient of interest
with respect to the Canadian Obligations at a criminal rate, such adjustment to be effected, to the
extent necessary, as follows: (i) first, by reducing the amount or rates of interest required to
be paid to the applicable recipient under the Loan Documents; and (ii) thereafter, by reducing any
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amounts required to be paid to the applicable recipient which would constitute interest with
respect to the Canadian Obligations for purposes of Section 347 of the Criminal Code (Canada).
Notwithstanding the foregoing, and after giving effect to all adjustments contemplated thereby, if
the applicable recipient shall have received an amount in excess of the maximum permitted by that
section of the Criminal Code (Canada), then Canadian Loan Parties shall be entitled, by notice in
writing to the Administrative Agent, to obtain reimbursement from the applicable recipient in an
amount equal to such excess, and pending such reimbursement, such amount shall be deemed to be an
amount payable by the applicable recipient to the applicable Canadian Loan Party. Any amount or
rate of interest with respect to the Canadian Obligations referred to in this Section 10.09
shall be determined in accordance with generally accepted actuarial practices and principles as an
effective annual rate of interest over the term that any Canadian Revolving Credit Loans to the
Canadian Borrower remain outstanding on the assumption that any charges, fees or expenses that fall
within the meaning of “interest” (as defined in the Criminal Code (Canada)) shall, if they relate
to a specific period of time, be prorated over that period of time and otherwise be prorated over
the period from the Closing Date to the date of payment in full of the Canadian Obligations, and,
in the event of a dispute, a certificate of a Fellow of the Canadian Institute of Actuaries
appointed by the Administrative Agent shall be conclusive, absent manifest error, for the purposes
of such determination.

          SECTION 10.10. Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto in different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single
contract. This Agreement, the other Loan Documents and the Fee Letter, constitute the entire
contract among the parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter hereof. Except as
provided in Section 4.01, this Agreement shall become effective when it shall have been
executed by the Administrative Agent and when the Administrative Agent shall have received
counterparts hereof that, when taken together, bear the signatures of each of the other parties
hereto. Delivery of an executed counterpart of a signature page of this Agreement by telecopy or
in “pdf” or similar format by electronic mail shall be effective as delivery of a manually executed
counterpart of this Agreement.

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

          SECTION 10.12. Severability. If any provision of this Agreement or the other Loan
Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and
enforceability of the remaining provisions of this Agreement and the other Loan Documents

 

186

shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith
negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the
economic effect of which comes as close as possible to that of the illegal, invalid or
unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.

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

     (a) such Borrower shall have paid to the Administrative Agent the assignment fee
specified in Section 10.06(b);

     (b) such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and L/C Advances, accrued interest thereon, accrued fees and all
other amounts payable to it hereunder and under the other Loan Documents (including any
amounts under Section 3.05) from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or such Borrower (in the case of all other
amounts);

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

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

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

          SECTION 10.14. Governing Law; Jurisdiction; Etc. (a) GOVERNING LAW. THIS AGREEMENT
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

          (b) Submission to Jurisdiction. EACH BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY
AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT
OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY

 

187

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
WILL BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, IN SUCH FEDERAL COURT; PROVIDED THAT NOTHING IN THIS AGREEMENT OR IN ANY
OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR ANY L/C
ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT AGAINST ANY BORROWER OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY
JURISDICTION. 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.

          (c) Waiver of Venue. EACH BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT
MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF
THIS SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION
OR PROCEEDING IN ANY SUCH COURT.

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

          SECTION 10.15. Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT
OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN

 

188

DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

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

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

          SECTION 10.18. USA Patriot Act Notice. Each Lender that is subject to the Act (as
hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender)
hereby notifies the Loan Parties that pursuant to the requirements of the USA Patriot Act (Title
III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain,
verify and record information that identifies each Loan Party, which information includes the name
and address of each Loan Party and other information that will allow such

 

189

Lender or the Administrative Agent, as applicable, to identify each Loan Party in accordance
with the Act. Each Borrower shall, promptly following a request by the Administrative Agent or any
Lender, provide all documentation and other information that the Administrative Agent or such
Lender requests in order to comply with its ongoing obligations under applicable “know your
customer” an anti-money laundering rules and regulations, including the Act.

          SECTION 10.19. Judgment Currency. If for the purpose of obtaining judgment in any
court it is necessary to convert an amount due hereunder in the currency in which it is due (the
“Original Currency”) into another currency (the “Second Currency”), the rate of
exchange applied shall be that at which, in accordance with normal banking procedures, the
Administrative Agent could purchase in the New York foreign exchange market, the Original Currency
with the Second Currency on the date two (2) Business Days preceding that on which judgment is
given. Each Loan Party agrees that its obligation in respect of any Original Currency due from it
hereunder shall, notwithstanding any judgment or payment in such other currency, be discharged only
to the extent that, on the Business Day following the date the Administrative Agent receives
payment of any sum so adjudged to be due hereunder in the Second Currency, the Administrative Agent
may, in accordance with normal banking procedures, purchase, in the New York foreign exchange
market, the Original Currency with the amount of the Second Currency so paid; and if the amount of
the Original Currency so purchased or could have been so purchased is less than the amount
originally due in the Original Currency, each Loan Party agrees as a separate obligation and
notwithstanding any such payment or judgment to indemnify the Administrative Agent and the
Appropriate Lenders against such loss. The term “rate of exchange” in this Section 10.19
means the spot rate at which the Administrative Agent, in accordance with normal practices, is able
on the relevant date to purchase the Original Currency with the Second Currency, and includes any
premium and costs of exchange payable in connection with such purchase.

          SECTION 10.20. Language. The parties have requested that this Agreement and the other
documents contemplated hereby or relating hereto be drawn up in the English language. Les parties
ont requis que cette convention ainsi que tous les documents qui y sont envisagés ou qui s’y
rapportent soient rédigés en langue anglaise.

          SECTION 10.21. Intercreditor Agreement. Reference is made to the Lien Subordination
and Intercreditor Agreement dated as of June 9, 2008, among General Electric Capital Corporation,
as collateral agent for the Revolving Facility Secured Parties referred to therein; U.S. Bank
National Association, as Trustee and as Noteholder Collateral Agent; Ply Gem Holdings Inc.; Ply Gem
Industries, Inc.; and the other subsidiaries of Ply Gem Industries, Inc. named therein (the
“Intercreditor Agreement”). Each Lender hereunder (a) consents to the subordination of Liens
provided for in the Intercreditor Agreement, (b) agrees that it will be bound by and will take no
actions contrary to the provisions of the Intercreditor Agreement and (c) authorizes and instructs
the Collateral Agent to enter into the Intercreditor Agreement as Collateral Agent and on behalf of
such Lender. The foregoing provisions are intended as an inducement to the Noteholders to acquire
the Notes of the Specified U.S. Borrower and such Noteholders are intended third party
beneficiaries of such provisions and the provisions of the Intercreditor Agreement.

 

190

[Remainder of Page Intentionally Blank]

 

 

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

	 	 	 	 	 	 	 

	 	 	PLY GEM HOLDINGS, INC.,	 	 
	 	 	as Holdings	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	/s/ Shawn K. Poe	 	
	 

	 	 	 	 

Name:  Shawn K. Poe
	 	 
	 

	 	 	 	Title: Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	PLY GEM INDUSTRIES, INC.,	 	 
	 	 	as the Specified U.S. Borrower	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	/s/ Shawn K. Poe	 	 
	 

	 	 	 	 

Name: Shawn K. Poe
	 	 
	 

	 	 	 	Title: Chief Financial Officer	 	
	 
	 	 	 	 	 	 
	 	 	CWD WINDOWS AND DOORS, INC.,	 	 
	 	 	as the Canadian Borrower	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	/s/ Shawn K. Poe	 	 
	 

	 	 	 	 

Name: Shawn K. Poe
	 	 
	 

	 	 	 	Title: Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH,	 	 
	 	 	individually and as Administrative Agent	 	 
	 
	 

	 	by	 	/s/ Ian Nalitt	 	 
	 

	 	 	 	 

Name: Ian Nalitt
	 	 
	 

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 

 

 

192

	 	 	 	 	 	 	 

	 

	 	by	 	/s/ Christopher Reo Day	 	 
	 

	 	 	 	 

Name: Christopher Reo Day
	 	 
	 

	 	 	 	Title: Associate	 	 
	 
	 	 	 	 	 	 
	 	 	CREDIT SUISSE, TORONTO BRANCH, 
as
Canadian Swing Line Lender,
 Canadian L/C
Issuer and Canadian
 Revolving Credit Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	/s/ Alain Daoust	 	 
	 

	 	 	 	 

Name: Alain Daoust
	 	 
	 

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	/s/ Bruce F. Wetherly	 	 
	 

	 	 	 	 

Name: Bruce F. Wetherly
	 	 
	 

	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 	 	GENERAL ELECTRIC CAPITAL CORPORATION,	 	 
	 	 	individually and as Collateral Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	by	 	/s/ William J. Kane	 	 
	 

	 	 	 	 

Name: William J. Kane
	 	 
	 

	 	 	 	Title: Duly Authorized Signatory	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.,

as Lender

 	 
	 	 	by  	 	/s/ Peter S. Predun
 	 	 
	 	 	 	 	Name: Peter S. Predun 	 	 
	 	 	 	 	Title: Executive Director 	 	 
	 	 	 	 	 	 	 
	 	 	UBS LOAN FINANCE LLC,

as Lender

 	 	 
	 	 	by  	 	/s/ David B. Julie
 	 	 
	 	 	 	 	Name: David B. Julie 	 	 
	 	 	 	 	Title: Associate Director 	 	 
	 	 	 	 	 	 	 
	 	 	by  	 	                                                 /s/ Mary E. Evans
 	 	 
	 	 	 	 	Name: Mary E. Evans 	 	 
	 	 	 	 	Title: Associate Director 	 	 
	 	 	 	 	 	 	 
	 	 	UBS AG CANADA BRANCH,

as Lender

 	 	 
	 	 	by  	 	/s/ Stephen Gerry
 	 	 
	 	 	 	 	Name: Stephen Gerry 	 	 
	 	 	 	 	Title: Director 	 	 
	 	 	 	 	 	 	 
	 	 	by  	 	                                                 /s/ Amy Fung
 	 	 
	 	 	 	 	Name: Amy
Fung 	 	 
	 	 	 	 	Title: Director 	 	 
	 	 	 	 	 	 	 
	 	 	BANK MIDWEST, N.A.,

as Lender

 	 	 
	 	 	by  	 	/s/ Damon K. Stelting
 	 	 
	 	 	 	 	Name: Damon K. Stelting 	 	 
	 	 	 	 	Title: Vice President 	 	 
	 	 	 	 	 	 	 

 

 

 

Schedule 1.01 — Existing Letters of Credit

	 	 	 	 	 	 	 	 	 	 	 
	Issuer	 	Beneficiary	 	Letter of Credit No.	 	Amount	 	Exp Date
	UBS, AG

	 	Tokio Marine and
Nichido Fire Insurance
Co.
	 	WALIA00263
	 	 	60,000.00	 	 	01-27-09 No
extension
	UBS, AG

	 	Union Fire Insurance Co
of Pittsburgh various
insurance cos
	 	DP36ZAYRL
	 	 	1,600,000.00	 	 	01-27-09 No
extension
	UBS, AG

	 	Ohio Environmental
Protection Agency
	 	WALI-A01315-1POZ
	 	 	900,000.00	 	 	2-12-08 No extension
	UBS, AG

	 	Saint-Gobain Corporation
	 	WALI-A01820-1BRL
	 	 	886,000.00	 	 	9-26-08 No extension
	UBS, AG

	 	Weston CA II LLC
	 	WALI-A02236-1POZ
	 	 	500,000.00	 	 	2-01-09

 

 

 

Schedule 1.01(a) — Sale-Leaseback Properties

	1.	 	The Deed of Lease Agreement, by and among GP (MULTI) L.P., a Delaware limited
partnership as Landlord, and Ply Gem Industries, Inc., MWM Holding, Inc., Great Lakes
Window, Inc., MWM Holding, Inc., MW Manufacturers Inc., Napco Window Systems, Inc., Kroy
Building Products, Inc., Napco, Inc., Thermal-Gard, Inc., as Tenant, dated as of August
27, 2004, covering the properties located at:

	 	a)	 	30499 Tracy Road, Toledo, OH
	 
	 	b)	 	2719 N. Division Avenue, York, NE
	 
	 	c)	 	15159 Andrew Jackson Highway, Fair Bluff, NC
	 
	 	d)	 	125 McFann Road, Valencia, PA
	 
	 	e)	 	303 W. Major, Kearney, MO
	 
	 	f)	 	91 Variform Drive, Martinsburg, WV
	 
	 	g)	 	Rocky Mount Window Plant No. 1, 433 North Main Street, Rocky Mount, VA
	 
	 	h)	 	Rocky Mount Training Center, 433 North Main Street, Rocky Mount, VA

	2.	 	The Lease Agreement by and between PG-NOM (ALBERTA) INC., an Alberta
corporation, as nominee for PG-TRUST (DE), a trust formed under the laws of the State of
Delaware, as Landlord and CWD Windows and Doors, Inc. as Tenant, dated as of August 27,
2004, covering the properties located at:

	 	a)	 	2008 — 48th St. S.E., Calgary, AB
	 
	 	b)	 	2110 — 48th St. S.E., Calgary, AB
	 
	 	c)	 	2264 — 48th St. S.E., Calgary, AB
	 
	 	d)	 	2007 — 48th St. S.E., Calgary, AB
	 
	 	e)	 	2015 — 48th St. S.E., Calgary, AB
	 
	 	f)	 	2035 — 48th St. S.E., Calgary, AB
	 
	 	g)	 	2101 — 50th St. S.E., Calgary, AB
	 
	 	h)	 	2109/17 — 50th St. S.E., Calgary, AB
	 
	 	i)	 	2121 — 50th St. S.E., Calgary, AB
	 
	 	j)	 	2125 — 50th St. S.E., Calgary, AB
	 
	 	k)	 	2139 — 50th St. S.E., Calgary, AB

 

 

Schedule 2.01

COMMITMENTS AND APPLICABLE PERCENTAGES

U.S. Revolving Credit Facility

	 	 	 	 	 	 	 	 	 
	 	 	Revolving Credit	 	Revolving Credit
	                        Lender	 	Commitment	 	Applicable Percentage
	General Electric Capital Corporation
	 	$	44,444,444.44	 	 	 	37.037037037	%
	UBS Loan Finance LLC
	 	$	22,222,222.22	 	 	 	18.518518519	%
	Credit Suisse, Cayman Islands Branch
	 	$	15,000,000.01	 	 	 	12.500000008	%
	Goldman Sachs Credit Partners L.P.
	 	$	13,333,333.33	 	 	 	11.111111111	%
	JPMorgan Chase Bank, N.A.
	 	$	15,000,000.00	 	 	 	12.500000000	%
	Bank Midwest, N.A.
	 	$	10,000,000.00	 	 	 	8.333333333	%
	 
	 	 	 	 	 	 	 	 
	Total
	 	$	120,000,000.00	 	 	 	100.000000000	%

Canadian Revolving Credit Facility

	 	 	 	 	 	 	 	 	 
	 	 	Revolving Credit	 	Revolving Credit Applicable
	                        Lender	 	Commitment1	 	Percentage
	GE Canada Finance
Holding Company
	 	$	5,555,555.56	 	 	 	37.037037037	%
	UBS AG, Canada Branch
	 	$	2,777,777.78	 	 	 	18.518518519	%
	Credit Suisse, Toronto
Branch
	 	$	4,999,999.99	 	 	 	33.333333267	%
	Goldman Sachs Credit
Partners L.P.
	 	$	1,666,666.67	 	 	 	11.111111111	%
	JPMorgan Chase Bank, N.A.
	 	$	0.00 0.00	 	 	 	0000000	%
	Bank Midwest, N.A.
	 	$	0.00 0.00	 	 	 	0000000	%
	 
	 	 	 	 	 	 	 	 
	Total
	 	$	15,000,000.00	 	 	 	100.000000000	%

 

			
	1	 	All quoted in U.S. Dollars

 

 

 

			
	 	 	Schedule 4.01(a)(vii) — Mortgaged Property

	 	 	 	 	 	 	 
	Mortgagor	 	Address	 	County	 	State
	MW Manufacturers
Inc.

	 	n/a
	 	Lee
	 	Mississippi
	 
	 	 	 	 	 	 
	Ply Gem Industries,
Inc., MWM Holding,
Inc., Great Lakes
Window, Inc., MW
Manufactures Inc.,
Kroy Building
Products, Inc.,
Napco, Inc. and
Variform, Inc.

	 	n/a
	 	Clay
	 	Missouri
	 
	 	 	 	 	 	 
	Ply Gem Industries,
Inc., MWM Holding,
Inc., Great Lakes
Window, Inc., MW
Manufactures Inc.,
Kroy Building
Products, Inc.,
Napco, Inc. and
Variform, Inc.

	 	n/a
	 	Columbus
	 	North Carolina
	 
	 	 	 	 	 	 
	Variform, Inc.

	 	n/a
	 	Marion
	 	Tennessee
	 
	 	 	 	 	 	 
	Ply Gem Industries,
Inc., MWM Holding,

    Inc., Great Lakes
Window, Inc., MW
Manufactures Inc.,
Kroy Building
Products, Inc. and
Variform, Inc.

	 	n/a
	 	Franklin
	 	Virginia
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	2008-48 Street SE,

Calgary, Alberta,

Canada
	 	N/A	 	 
	 
	 	 	 	 	 	 
	Alcoa Home
Exteriors, Inc.

	 	185 Johnson Drive
	 	Augusta
	 	Stuarts Draft, Virginia
	 
	 	 	 	 	 	 
	Alcoa Home
Exteriors, Inc.

	 	2405 Campbell Road
	 	Shelby
	 	Sidney, Ohio
	 
	 	 	 	 	 	 
	Alcoa Home
Exteriors, Inc.

	 	100 Cellwood Road
	 	Cherokee
	 	Gaffney, South Carolina

 

 

Schedule 5.05 — Supplement to Interim Financial Statements

None.

 

 

Schedule 5.06 — Litigation

None.

 

 

Schedule 5.08(b) — Owned Real Property

	 	 	 
	Loan Party	 	Address
	Variform, Inc.

	 	1274 Industrial Blvd.
	 

	 	Jasper, TN 37347-5200
	 
	 	 
	CWD Windows and Doors, Inc.

	 	331 – 105 St.
	 

	 	Saskatoon, SK
	 
	 	 
	MW Manufacturers, Inc.

	 	Fayetteville Cutting Operation
	 

	 	400-408 Pine Street
	 

	 	Fayetteville, NC 28302
	 
	 	 
	 

	 	Storage shed and unimproved land located on
noncontiguous parcels, portions of Tracts #1
and #2 as recorded in Deed Book 893, page 547,
Beaverdam Township (Hoffman), Richmond County,
NC 28347
	 
	 	 
	Alenco Extrusion GA, L.L.C.

	 	407 Dividend Drive
	 

	 	Peachtree City, GA 30269-1905
	 
	 	 
	Alcoa Home Exteriors, Inc.

	 	1601 Commerce Blvd.
	 

	 	Denison, TX 75020-19052
	 

	 	185 Johnson Drive
	 

	 	Stuarts Draft, VA 24477-3100
	 

	 	100 Cellwood Place
	 

	 	Gaffney, SC 29340-4723
	 

	 	2405 Campbell Road
	 

	 	Sidney, OH 45365-9529

 

			
	2	 	As of the Closing Date, this property is
subject to sale agreement, pursuant to which this property will be sold on or
prior to June 30, 2008.

 

 

Schedule 5.08(c)(i) Leased Real Property (lessee)

	 	 	 
	Loan Party	 	Address
	Ply Gem Industries, Inc.

	 	90 Inip Drive, Inwood, NY
	 

	 	95 Inip Drive, Inwood, NY
	 

	 	5020 Weston Parkway, Suite 400
	 

	 	Cary, NC 27513
	 
	 	 
	Great Lakes Window, Inc.

	 	30499 Tracy Road, Toledo, OH
	 

	 	7171 Reuthinger Road, Toledo, OH (option)
	 

	 	228 Huron Toledo, OH
	 
	 	 
	Kroy Building Products, Inc.

	 	2719 N. Division Avenue, York, NE
	 

	 	15159 Andrew Jackson Highway

Fair Bluff, NC
	 

	 	1857 Evans Road, Cary, NC
	 
	 	 
	Napco, Inc.

	 	125 McFann Road, Valencia, PA
	 
	 	 
	Variform, Inc.

	 	303 W. Major, Kearney, MO
	 

	 	91 Variform Drive, Martinsburg, WV
	 

	 	1600 N. State Rte 291, Carefree Industrial Park,
Independence, MO
	 

	 	5550 Winchester Ave., WV
	 
	 	 
	CWD Windows and Doors, Inc.

	 	2008 – 48th St. S.E., Calgary, AB
	 

	 	2110 – 48th St. S.E., Calgary, AB
	 

	 	2264 – 48th St. S.E., Calgary, AB
	 

	 	2007 – 48th St. S.E., Calgary, AB
	 

	 	2015 – 48th St. S.E., Calgary, AB
	 

	 	2035 – 48th St. S.E., Calgary, AB
	 

	 	2101 – 50th St. S.E., Calgary, AB
	 

	 	2109/17 – 50th St. S.E., Calgary, AB
	 

	 	2121 – 50th St. S.E., Calgary, AB
	 

	 	2125 – 50th St. S.E., Calgary, AB
	 

	 	2139 – 50th St. S.E., Calgary, AB
	 

	 	18703 111th Ave., Edmonton, AB
	 

	 	Bay 108, 6901 –98th St., Clairmont, AB
	 

	 	1889 – 6th Ave., Medicine Hat, AB
	 

	 	8,4622 – 61st St., Red Deer, AB
	 

	 	197 Leonard St. N., Regina, SK
	 
	 	 
	MW Manufacturers, Inc.

	 	Rocky Mount Window Plant No. 1, 433 North
Main Street, Rocky Mount, VA 24151
	 

	 	Rocky Mount Training Center, 433 North Main

Street, Rocky Mount, VA 24151
	 

	 	Rocky Mount Window Plant No. 3 at 520
Weaver Street, Rocky Mount, VA 24151
	 

	 	Property located at Green and Triangle Streets in
Lee, Mississippi
	 

	 	2.02 acres of real property located in Fayetteville,
North Carolina
	 

	 	0.05 acres of real property located in
Rocky Mount, Virginia
	 

	 	0.14 acres of real property located in
Rocky Mount, Virginia
	 

	 	Private road in Rocky Mount, Virginia
	 

	 	0.2 acres of real property in Rocky Mount,
Virginia

 

 

	 	 	 
	Loan Party	 	Address
	 

	 	Real property located at the corner of N. Main
Street and Southern Railroad in Rocky Mount,
Virginia
	 

	 	Real property located at 350 State Street in
Rocky Mount, Virginia
	 

	 	Real property located at 315 Pell Avenue in
Rocky Mount, Virginia
	 

	 	Real property located at 129 Pell Avenue in
Rocky Mount, Virginia
	 

	 	999A Grand Avenue, Hammonton, New Jersey.
(Lease of the Patriot facility)
	 
	 	 
	Alenco Window GA, L.L.C.

	 	319 Dividend Drive
	 

	 	Peachtree City, Georgia 30269
	 
	 	 
	New Alenco Window, Ltd.

	 	615 Carson Street, Bryan, Texas 77801
	 
	 	 
	New Alenco Extrusion, Ltd.

	 	Northpoint Business Park, 2870 North Harvey

Mitchell Parkway, Bryan, Texas
	 
	 	 
	New Glazing Industries, Ltd.

	 	Inwood Business Center at 1110 Inwood Road,
Suite 101, Dallas, Texas 75247
	 

	 	12901 Nicholson Road, Suite 330
Farmers Branch, Texas 75234
	 
	 	 
	AWC Arizona, Inc.

	 	3830 E. Wier, Phoenix, Arizona
	 
	 	 
	Alcoa Home Exteriors, Inc.

	 	2011 McGregor, Denison, Texas
	 

	 	1590 Omega Drive, Pittsburgh, Pennsylvania
	 

	 	4500 Omega Drive, Pittsburgh, Pennsylvania
	 

	 	805 Victory Trail Road

Gaffney, South Carolina
	 

	 	2605 S.H. 91 North, Denison, Texas
	 

	 	3345 and 3365 Juanita Dr., Denison, Texas
	 

	 	For certain premises commonly known as 1132-
1134 Stinson Blvd., Minnesota.
	 

	 	1864 Old Georgia Highway

Gaffney, South Carolina
	 
	 	 
	Ply Gem Pacific Windows Corporation

	 	3010 Ramco Road
	 

	 	West Sacramento, California 95691
	 

	 	5001 D Street NW, Auburn, Washington 98001
	 

	 	235 Radio Road, Corona, California 92879
	 

	 	Building G, Tualatin Corporate
Center, Phase
III, 20131 SW 95th Place, Tualatin, Oregon
97062
	 

	 	401 South Enterprise Boulevard

Lebanon, Indiana 46052

 

 

Schedule 5.09 — Environmental Matters

None.

 

 

Schedule 5.13 — Subsidiaries and Other Equity Investments; Loan Parties

 

 

Schedule 6.12 — Guarantors

Alcoa Home Exteriors, Inc.

Alenco Building Products Management, L.L.C.

Alenco Extrusion GA, L.L.C.

Alenco Extrusion Management, L.L.C.

Alenco Holding Corporation

Alenco Interests, L.L.C.

Alenco Trans, Inc.

Alenco Window GA, L.L.C.

Aluminum Scrap Recycle, L.L.C.

AWC Arizona, Inc.

AWC Holding Company

Glazing Industries Management, L.L.C.

Great Lakes Window, Inc.

Kroy Building Products, Inc.

MW Manufacturers Inc.

MWM Holding, Inc.

Napco, Inc.

New Alenco Extrusion, Ltd.

New Alenco Window, Ltd.

New Glazing Industries, Ltd.

Ply Gem Holdings, Inc.

Ply Gem Industries, Inc.

Ply Gem Pacific Windows Corporation

Variform, Inc.

 

 

Schedule 6.20 — Post-Closing Matters

1. Within one Business Day after the Closing Date, the Borrowers shall deliver to the
Administrative Agent a certificate of compliance with respect to the Canadian Borrower.

2. Within one Business Day after the Closing Date, Bennett Jones shall deliver, on behalf of the
Borrowers, to the Administrative Agent confirmation that the requisite registration under the PPSA
with respect to the Canadian Borrower has been completed.

3. Within five Business Days after the Closing Date or such later time as the Administrative Agent
may permit in writing, the Borrowers shall deliver to the Trustee for the benefit of the Secured
Parties pursuant to the Intercreditor Agreement a certificate representing 100% of the issued and
outstanding common stock of Ply Gem Pacific Windows Corporation issued to Ply Gem Industries, Inc.,
together with an undated stock power executed in blank by a duly authorized officer of Ply Gem
Industries, Inc.

4. Within five Business Days after the Closing Date or such later time as the Administrative Agent
may permit in writing, the Borrowers shall deliver to the Trustee for the benefit of the Secured
Parties pursuant to the Intercreditor Agreement an Intercompany Note evidencing any Indebtedness of
a Loan Party owning to another Loan Party outstanding upon the Closing Date.

5. Within five Business Days after the Closing Date or such later time as the Administrative Agent
may permit in writing, the Borrowers shall deliver to the Administrative Agent, a Confirmation of
Security Interest in Intellectual Property duly executed by Alcoa Home Exteriors, Inc., Ply Gem
Pacific Windows Corporation, Kroy Building Products, Inc. and Variform, Inc.

6. Within ten Business Days of the Closing Date or such later time as the Administrative Agent may
permit in writing, the Borrowers shall deliver to the Administrative Agent notice of termination of
blocked account agreements duly executed by Ply Gem Industries, Inc. and UBS AG, Stamford Branch.

7. Within seven Business Days after the Closing Date or such later time as the Administrative Agent
may permit in writing, the Borrowers shall effect the proper release of the Saskatchewan PPSA
registration against the Canadian Borrower to the extent it is not a permitted Lien under Section
7.01 of the Credit Agreement.

8. The Borrowers shall use commercially reasonable efforts to cause Broan-Nutone Canada to
discharge the trade name “CWD Windows and Doors” within thirty days after the Closing Date.

9. Within thirty days after the Closing Date, the Canadian Borrower will deliver to the Agents (i)
an agreement pursuant to which it submits to the non-exclusive jurisdiction of the courts of the
State of New York sitting in New York County and of the United States Court of the Southern
District of New York, and any appellate court from any thereof, in any action or proceeding arising
out of relating to any Loan Document, or for recognition

 

 

or enforcement of any judgment and (ii) provides a supplemental opinion in relation thereto from
Bennett Jones LLP, each in form and substance reasonably satisfactory to the Agents.

 

 

Schedule 7.01 — Existing Liens

None.

 

 

Schedule 7.02 — Existing Investments

None.

 

 

Schedule 7.03(e) — Existing Indebtedness

None.

 

 

Schedule 7.05 — Dispositions

1. The property located at 1601 Commerce Blvd., Denison, Texas

 

 

Schedule 7.08 — Transactions with Affiliates

	1.	 	General Advisory Agreement, between Holdings and Caxton-Iseman Capital, LLC, pursuant to
which Caxton-Iseman acquisition and financial advisory services in exchange for certain annual
and transaction fees.
	 
	2.	 	Debt Financing Advisory Agreement, between Holdings and Caxton-Iseman Capital, LLC, pursuant
to which Caxton-Iseman was paid a debt financing arrangement and advisory fee, equal to
$11.400,000 in connection with acquisition of Ply Gem Industries, Inc., in the first quarter
of 2004.
	 
	3.	 	During 2006, Holdings received an equity investment of approximately $500,000 million from
JPG Investments, LLC, an affiliate of The GeMROI Company, an outside sales agency that
represents, among other products and companies, MW windows for which Holdings pays GeMROI a
sales commission for their services. During 2007 and 2006, Holdings paid GeMROI approximately
$1,800,000 and $2,100,000, respectively, in sales commission for their services.

 

 

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

	 	 	 

	Borrower Agent or any Borrower:

	 	Ply Gem Industries, Inc.
	 

	 	5020 Western Parkway
	 

	 	Suite 400
	 

	 	Cary, NC 27513,
	 

	 	Attention of Chief Financial Officer &
	 

	 	General Counsel
	 

	 	Tel: (919) 677-4020
	 
	 	 
	Administrative Agent, U.S. Swingline
Lender or U.S. L/C Issuer

	 	Credit Suisse, as Administrative Agent

Eleven Madison Avenue
	 

	 	New York, NY 10010
	 

	 	ATTN: Agency Group
	 

	 	Telecopy: (212) 325-8304
	 
	 	 
	Canadian Swingline Lender or
Canadian L/C Issuer

	 	1 First Canadian Place, Suite 3000
P.O. Box 301
	 

	 	Toronto, Ontario, Canada
	 

	 	M5X 1C9
	 

	 	Tel: (416) 352-4655
	 

	 	Telecopy: (416) 352-4688
	 

	 	Attention of Nicholas Lam, Assistant
	 

	 	Vice President, Loan Operations
	 
	 	 
	Collateral Agent

	 	General Electric Capital Corporation
	 

	 	500 W. Monroe St. 16th Floor
	 

	 	Chicago, IL 60661
	 

	 	Attn: Account Manager Ply Gem
	 

	 	Industries

 

 

EXHIBIT A

FORM OF

COMMITTED LOAN NOTICE

Credit Suisse,

      as Administrative Agent for the Lenders referred to below

Eleven Madison Avenue

New York, NY 10010

Attention: Agency Group

[•], 200[•]1

Ladies and Gentlemen:

          Reference is made to that certain Credit Agreement (as amended, restated, extended,
supplemented or otherwise modified in writing from time to time, the “Credit Agreement”) dated as
of June 9, 2008 among Ply Gem Industries, Inc. a Delaware corporation (the “Specified U.S.
Borrower”), CWD Windows and Doors, Inc., (the “Canadian Borrower”), Ply Gem Holdings, Inc., a
Delaware corporation, the Subsidiaries of the Borrower from time to time party thereto, the Lenders
parties thereto, Credit Suisse, as Administrative Agent, U.S. Swing Line Lender and U.S. L/C
Issuer, General Electric Capital Corporation, as Collateral Agent, Credit Suisse, Toronto Branch,
as Canadian Swing Line Lender and Canadian L/C Issuer, and Credit Suisse Securities (USA) LLC, as
Sole Lead Arranger and Sole Bookrunner. Capitalized terms used herein and not otherwise defined
herein have the meanings specified in the Credit Agreement.

          The undersigned hereby gives you notice pursuant to Section 2.02 of the Credit Agreement
that it requests a Borrowing under the Credit Agreement, and in that connection sets forth below
the terms on which such Borrowing is requested to be made:

	 	o	 	A Borrowing
of                                         Revolving Credit Loans

(U.S. or Canadian)

	 	o	 	A conversion of                                         

 

			
	1	 	Must be notified in writing or by telephone
(with such telephonic notification to be confirmed promptly by delivery to the
Administrative Agent of a written Committed Loan Notice, appropriately
completed and signed by a Responsible Officer of such Borrower) (i) in the case
of any Borrowing of, conversion to or continuation of Eurodollar Rate Loans or
BA Rate Loans or of any conversion of Eurodollar Rate Loans or BA Rate Loans to
Base Rate Loans, Canadian Base Rate Loans or Canadian Prime Rate Loans, as the
case may be, not later than 12:00 p.m. three (3) Business Days before the date
of the proposed Borrowing or (ii) in the case of any Borrowing of Base Rate
Loans, Canadian Base Rate Loans or Canadian Prime Rate Loans, not later than
12:00 p.m one (1) Business Day before the date of the proposed Borrowing;
provided, however, that if the applicable Borrower wishes to request
Eurodollar Rate Loans or BA Rate Loans having an Interest Period other than 1,
2, 3 or 6 months in duration as provided in the definition of “Interest
Period,” the applicable notice must be received by the Administrative Agent not
later than 11:00 a.m. four (4) Business Days prior to the requested date of
such Borrowing, conversion or continuation, whereupon the Administrative Agent
shall give prompt notice to the Appropriate Lenders of such request and
determine whether the requested Interest Period is acceptable to all of them.

 

 

EXHIBIT A

(Type of Loans)

	 	o	 	A continuation of
                                         Rate Loans

(Eurodollar or BA)

1. On                                                             (which shall be a Business Day) (the “Date of Borrowing
”).

2. In the principal amount of [$/Cdn.$]                                                             .

3. Comprised of                                                             .

[Type of Loan Requested]

4. [For Eurodollar Rate Loans and BA Rate Loans] With an Interest Period of                      months.

5. Account Number and Location                                               

               The [U.S.][Canadian] Revolving Credit Borrowing requested herein complies with the proviso in
the first sentence of Section 2.01[(a)][(b)] of the Credit Agreement.

[Insert the following paragraph for new Borrowings only (not conversions or continuations)]

               The [Specified U.S.][Canadian] Borrower hereby represents and warrants that the
conditions specified in Sections 4.02(a), (b) and (d) of the Credit Agreement shall be satisfied on
and as of the Date of Borrowing.

	 	 	 	 	 
	 	[Ply Gem Industries, Inc.] [CWD
Windows and Doors, Inc.]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

2

 

EXHIBIT B

FORM OF

SWING LINE LOAN NOTICE

Credit Suisse,

      as Administrative Agent for the Lenders referred to below

Eleven Madison Avenue

New York, NY 10010

Attention: Agency Group

[•], 200[•]1

Ladies and Gentlemen:

          Reference is made to that certain Credit Agreement (as amended, restated, extended,
supplemented or otherwise modified in writing from time to time, the “Credit Agreement”) dated as
of June 9, 2008 among Ply Gem Industries, Inc. a Delaware corporation (the “Specified U.S.
Borrower”), CWD Windows and Doors, Inc., (the “Canadian Borrower”), Ply Gem Holdings, Inc., a
Delaware corporation, the Subsidiaries of the Borrower from time to time party thereto, the Lenders
parties thereto, Credit Suisse, as Administrative Agent, U.S. Swing Line Lender and U.S. L/C
Issuer, General Electric Capital Corporation, as Collateral Agent, Credit Suisse, Toronto Branch,
as Canadian Swing Line Lender and Canadian L/C Issuer, and Credit Suisse Securities (USA) LLC, as
Sole Lead Arranger and Sole Bookrunner. Capitalized terms used herein and not otherwise defined
herein have the meanings specified in the Credit Agreement.

          The undersigned hereby gives you notice pursuant to Section 2.04(b) of the Credit Agreement
that it requests a Borrowing under the Credit Agreement, and in that connection sets forth below
the terms on which such Borrowing is requested to be made:

     1. On                                         (which shall be a Business Day) (the “Date of Borrowing”).

     2. A [U.S.] [Canadian] Swing Line Borrowing.

     3 In the amount of [$] [Cdn. $]                                         .

          The [U.S.][Canadian] Swing Line Borrowing requested herein complies with the proviso in the
first sentence of Section 2.04[(A)(a)][(B)(a)] of the Credit Agreement.

 

			
	1	 	Must be notified in writing or by telephone
(with such telephonic notification to be confirmed promptly by delivery to the
Administrative Agent of a written Swing Line Loan Notice, appropriately
completed and signed by a Responsible Officer of such Borrower) (i) in the case
of a U.S. Swing Line Borrowing, not later than 12:00 p.m. on the date of the
proposed Borrowing or (ii) in the case of a Canadian Swing Line Borrowing, not
later than 12:00 p.m. on the date of the proposed Borrowing.

 

 

EXHIBIT B

          The [Specified U.S.][Canadian] Borrower hereby represents and warrants that the
conditions specified in Sections 4.02(a), (b) and (d) of the Credit Agreement shall be satisfied on
and as of the Date of Borrowing.

	 	 	 	 	 
	 	[Ply Gem Industries, Inc.] [CWD
Windows and Doors, Inc.]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT C-1

FORM OF

U.S. REVOLVING CREDIT NOTE

	 	 	 	 	 

	$[     ]

	 	 
	 	New York, New York
	 
	 	 	 	 
	 

	 	 	 	[•], 200[•]

          FOR VALUE RECEIVED, the undersigned, PLY GEM INDUSTRIES, INC., a Delaware corporation (the
“Borrower”), HEREBY PROMISES TO PAY TO [ ] (the “Lender”) or its registered assigns, at the
office of Credit Suisse (the “Administrative Agent”) at Eleven Madison Avenue, New York, New York
10010, on the dates and in the amounts set forth in the Credit Agreement dated as of June 9, 2008
(as the same may be amended, amended and restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”), among the Borrower, CWD Windows and Doors, Inc., (the “Canadian
Borrower”), Ply Gem Holdings, Inc., a Delaware corporation, the Subsidiaries of the Borrower from
time to time party thereto, the Lenders parties thereto, Credit Suisse, as Administrative Agent,
and General Electric Capital Corporation, as Collateral Agent, in lawful money of the United States
of America in immediately available funds, the aggregate unpaid principal amount of all U.S. Loans
made by the Lender to the Borrower pursuant to the Credit Agreement and to pay interest from the
date of such U.S. Loans on the principal amount thereof from time to time outstanding, in like
funds, at said office, at the rate or rates per annum and payable on the dates provided in the
Credit Agreement. Terms used but not defined herein shall have the meanings assigned to them in
the Credit Agreement.

          Except as otherwise provided in Section 2.04(A)(f) of the Credit Agreement with
respect to U.S. Swing Line Loans, all payments of principal and interest with respect to the U.S.
Loans made by the Lender shall be made to the Administrative Agent for the account of the Lender in
Dollars in immediately available funds at the Administrative Agent’s Office. If any amount is not
paid in full when due hereunder, such unpaid amount shall bear interest, to be paid upon demand,
from the due date thereof until the date of actual payment (and before as well as after judgment)
computed at the per annum rate set forth in the Credit Agreement.

          The Borrower, for itself, its successors and assigns, hereby waives diligence, presentment,
demand, protest and notice of any kind whatsoever. The nonexercise by the holder hereof of any of
its rights hereunder in any particular instance shall not constitute a waiver thereof in that or
any subsequent instance.

          This U.S. Revolving Credit Note is one of the Revolving Credit Notes referred to in the Credit
Agreement, is entitled to the benefits thereof and may be prepaid in whole or in part subject to
the terms and conditions therein. This U.S. Revolving Credit Note is also entitled to the benefits
of the U.S. Guaranty and is secured by the U.S. Collateral. The Credit Agreement also contains
provisions for the acceleration of the maturity hereof upon the happening of certain events, for
mandatory prepayment of the principal hereof prior to the maturity hereof and for the amendment or
waiver of certain provisions of the Credit Agreement, all upon the terms and conditions therein
specified. U.S. Loans made by the Lender shall be evidenced by one or more loan accounts or records
maintained by the Lender in the ordinary course of business. The Lender may also attach schedules
to this U.S. Revolving Credit Note and endorse thereon the date, amount and maturity of its U.S.
Loans and payments with respect thereto. THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

 

 

EXHIBIT C-1

	 	 	 	 	 
	 	PLY GEM INDUSTRIES, INC.

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

2

 

EXHIBIT C-2

FORM OF

CANADIAN REVOLVING CREDIT NOTE

	 	 	 	 	 

	$[       ]

	 	 
	 	New York, New York
	 
	 	 	 	 
	 

	 	 	 	[•], 200[•]

          FOR VALUE RECEIVED, the undersigned, CWD WINDOWS AND DOORS, INC. (the “Borrower”), HEREBY
PROMISES TO PAY TO [ ] (the “Lender”) or its registered assigns, in accordance with the
provisions of the Credit Agreement (as hereinafter defined) the principal amount of each Canadian
Loan from time to time made by the Lender to the Borrower under the Credit Agreement dated as of
June 9, 2008 (as amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the “Credit Agreement”), among the Borrower, Ply Gem Industries, Inc., a Delaware
corporation, Ply Gem Holdings, Inc., a Delaware corporation, the Subsidiaries of the Borrower from
time to time party thereto, the Lenders (as defined in the Credit Agreement) parties thereto,
Credit Suisse, as Administrative Agent, and General Electric Capital Corporation, as Collateral
Agent, in lawful money of the United States of America, or Canadian dollars, as applicable, in
immediately available funds, the aggregate unpaid principal amount of all Canadian Loans made by
the Lender to the Borrower pursuant to the Credit Agreement and to pay interest from the date of
such Canadian Loans on the principal amount thereof from time to time outstanding, in like funds,
at said office, at the rate or rates per annum and payable on the dates provided in the Credit
Agreement. Terms used but not defined herein shall have the meanings assigned to them in the
Credit Agreement.

          Except as otherwise provided in Section 2.04(B)(f) of the Credit Agreement with
respect to Canadian Swing Line Loans, all payments of principal and interest with respect to the
Canadian Loans made by the Lender shall be made to the Administrative Agent for the account of the
Lender in [U.S.][Canadian] Dollars in immediately available funds at the Administrative Agent’s
Office. If any amount is not paid in full when due hereunder, such unpaid amount shall bear
interest, to be paid upon demand, from the due date thereof until the date of actual payment (and
before as well as after judgment) computed at the per annum rate set forth in the Credit Agreement.

          The Borrower, for itself, its successors and assigns, hereby waives diligence, presentment,
demand, nonpayment, protest and notice of any kind whatsoever. The nonexercise by the holder
hereof of any of its rights hereunder in any particular instance shall not constitute a waiver
thereof in that or any subsequent instance.

          This Canadian Revolving Credit Note is one of the Revolving Credit Notes referred to in the
Credit Agreement, is entitled to the benefits thereof and may be prepaid in whole or in part
subject to the terms and conditions therein. This Canadian Revolving Credit Note is also entitled
to the benefits of the U.S. Guaranty and is secured by the U.S. Collateral and the Canadian
Collateral. The Credit Agreement also contains provisions for the acceleration of the maturity
hereof upon the happening of certain events, for mandatory prepayment of the principal hereof prior
to the maturity hereof and for the amendment or waiver of certain provisions of the Credit
Agreement, all upon the terms and conditions therein specified. Canadian Loans made by the Lender
shall be evidenced by one or more loan accounts or records maintained by the Lender in the ordinary
course of business. The Lender may also attach schedules to this Canadian Revolving Credit Note and
endorse thereon the date, amount and maturity of its Canadian Loans and payments with respect
thereto. THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF
NEW YORK.

 

 

EXHIBIT C-2

	 	 	 	 	 
	 	CWD WINDOWS AND DOORS, INC.

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT D

FORM OF COMPLIANCE CERTIFICATE

To: Credit Suisse, as Administrative Agent

               Financial Statement Date:                                         ,                    

Ladies and Gentlemen:

          Reference is made to that certain Credit Agreement dated as of June 9, 2008 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to time, the “Credit
Agreement”) among Ply Gem Industries, Inc. a Delaware corporation (the “Borrower”), CWD Windows and
Doors, Inc., Ply Gem Holdings, Inc. (“Holdings”), the Subsidiaries of the Borrower from time to
time party thereto, the Lenders parties thereto, Credit Suisse, as Administrative Agent, U.S. Swing
Line Lender and U.S. L/C Issuer, General Electric Capital Corporation, as Collateral Agent, Credit
Suisse, Toronto Branch, as Canadian Swing Line Lender and Canadian L/C Issuer, and Credit Suisse
Securities (USA) LLC, as Sole Lead Arranger and Sole Bookrunner. Capitalized terms used herein and
not otherwise defined herein have the meanings specified in the Credit Agreement.

          The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the
                                         of the Borrower, and that, as such, he/she is authorized to execute and
deliver this Compliance Certificate to the Administrative Agent on the behalf of the Borrower, and
that:

          [Use following paragraph 1 for fiscal year-end financial statements]

          1. [The Borrower has delivered the year-end audited consolidated financial statements required
by Section 6.01(a) of the Credit Agreement for the fiscal year of the Borrower ended as of
the above date, together with the report and opinion of [KPMG LLP][an independent certified public
accountant of nationally recognized standing] required by such section, prepared in accordance with
generally accepted auditing standards and not subject to any “going concern” or like qualification
or exception or any qualification or exception as to the scope of the audit.]

          [Use following paragraph 1 for fiscal quarter-end financial statements]

          1. [The Borrower has delivered the unaudited consolidated financial statements required by
Section 6.01(b) of the Credit Agreement for the fiscal quarter of the Borrower ended as of
the above date. Such consolidated financial statements fairly present in all material respects the
financial condition, results of operations, shareholders’ equity and cash flows of the Borrower and
its Subsidiaries in accordance with GAAP as at such date and for such period, subject only to
normal year-end audit adjustments and the absence of footnotes.]

          [Add the following statement to paragraph 1 when a Covenant Trigger Event has occurred and is
continuing and there has been a change in generally accepted accounting principles used in the
preparation of such financial documents]

          [There has been a change in the generally accepted accounting principles used in the
preparation of such financial statements, and a statement of reconciliation conforming such
financial statements to GAAP is attached hereto.]

 

 

EXHIBIT D

          2. The undersigned has reviewed and is familiar with the terms of the Credit Agreement and
has made, or has caused to be made under his/her supervision, a detailed review of the transactions
and condition (financial or otherwise) of the Borrower and its Subsidiaries during the accounting
period covered by such financial statements.

          3. A review of the activities of the Borrower and its Subsidiaries during such fiscal period
has been made under the supervision of the undersigned with a view to determining whether during
such fiscal period the Borrower and the other Loan Parties performed and observed all its
Obligations under the Loan Documents, and

[select one:]

          [to the best knowledge of the undersigned, during such fiscal period the Borrower and the
other Loan Parties performed and observed each covenant and condition of the Loan Documents
applicable to it, and no Default has occurred and is continuing.]

—or—

          [to the best knowledge of the undersigned, the following covenants or conditions have not been
performed or observed and the following is a list of each such Default and its nature and status:]

[Insert the following paragraph for new Borrowings only (not conversions or continuations)]

          4. The representations and warranties of the Borrower and the other Loan Parties contained in
Article V of the Credit Agreement or any other Loan Document, are true and correct in all
material respects on and as of the date hereof, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they are true and correct as of
such earlier date, and except that for purposes of this Compliance Certificate, the representations
and warranties contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement
shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b),
respectively, of Section 6.01 of the Credit Agreement, including the statements in
connection with which this Compliance Certificate is delivered.

          5. [If applicable] The financial covenant analyses and information set forth on Schedules
1 and 2 attached hereto are true and accurate on and as of the date of this Compliance
Certificate.

          IN WITNESS WHEREOF, the undersigned has executed this Compliance Certificate as of
                    ,                    .

	 	 	 	 	 
	 	PLY GEM INDUSTRIES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

SCHEDULE 1 TO EXHIBIT D

                    For the Quarter/Year ended                                        ,                    (“Statement Date”)

SCHEDULE 1

to the Compliance Certificate

($ in 000’s)

I. Section 7.11 — Consolidated Fixed Charge Coverage Ratio.

	 	 	 	 	 	 	 	 	 

	A.

	 	 	1.	 	 	Consolidated EBITDA for Measurement
Period ending on above
date (“Subject Period”):
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	The aggregate amount of all Capital Expenditures made during
Subject Period:
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	Taxes paid or payable in cash with respect to the Subject Period:
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	4.	 	 	Line I.A.1 — (Line I.A.2 + Line I.A.3)
	 	$                    
	 
	 	 	 	 	 	 	 	 
	B.	 	 	The sum of:
	 
	 	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	Consolidated Interest Expense for Subject Period paid in cash:
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	The aggregate principal amount of all Mandatory Principal
Payments made during such period, but excluding (A) any
such payments to the extent financed through the incurrence
of additional Indebtedness (other than Loans under the Credit
Agreement) otherwise expressly permitted under Section 7.02
and (B) Mandatory Principal Payments in respect of the Existing
Credit Facility in each case made on or before the Closing Date
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	The aggregate principal amount of all Restricted Payments made
during the Subject Period pursuant to Section 7.06(e) of the Credit
Agreement
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	4.	 	 	Line II.B.1 + Line II.B.2 + Line II.B.3
	 	$                    
	 
	 	 	 	 	 	 	 	 
	C.	 	 	Consolidated Fixed Charge Coverage Ratio (Line I.A.4 ÷ Line I.B.4):	 	$                    
	 
	 	 	 	 	 	 	 	 
	 	 	Minimum required:

	 	 	 
	Four Fiscal Quarters Ending	 	Minimum Consolidated Interest Coverage Ratio
	When a Covenant Trigger Event

	 	                    1.1 to 1.0
	has occurred and is continuing
	 	 

 

 

SCHEDULE 2 TO EXHIBIT D

                    For the Quarter/Year ended                                        ,                    (“Statement Date”)

SCHEDULE 2

to the Compliance Certificate

($ in 000’s)

Consolidated EBITDA

(in accordance with the definition Consolidated EBITDA as set forth in the Credit Agreement)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Twelve
	Consolidated	 	Quarter	 	Quarter	 	Quarter	 	Quarter	 	Months
	EBITDA	 	Ended	 	Ended	 	Ended	 	Ended	 	Ended
	Consolidated Net 

Income
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	+ Consolidated Net 

Income Tax Expense
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	+ Consolidated 

Amortization 

Expense (to the 

extent not included 

in Consolidated 

Interest Expense)
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	+ Restructuring 

Expenses
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	+ payments pursuant
to the Advisory
Agreement
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	+ Pro Forma Cost 

Savings
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	+ net out-of-pocket
costs and expenses
related to acquiring
the inventory of a
prior supplier of a
company in
connection with
becoming a provider
to such company (not
to exceed $5,000,000
for any Measurement
Period)
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	+ all other non-cash 

items reducing the 

Consolidated Net 

Income (excluding 

any non-cash charge 

that results in an
	 	 	 	 	 	 	 	 

 

 

SCHEDULE 2 TO EXHIBIT D

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Twelve
	Consolidated	 	Quarter	 	Quarter	 	Quarter	 	Quarter	 	Months
	EBITDA	 	Ended	 	Ended	 	Ended	 	Ended	 	Ended
	accrual of a reserve
for cash charges in
any future period
and
excluding write-down and write-off
of current assets)
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	— the aggregate
amount of all non-cash items,
determined on a
consolidated basis,
to
the extent such
items
increased
Consolidated Net
Income for such
period3
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	= Consolidated

EBITDA
	 	 	 	 	 	 	 	 

 

			
	3	 	The sum of the Restructuring Expenses and Pro
Forma Costs Savings added to the Consolidated Net Income to compute
Consolidated EBITA in any Measurement Period shall not exceed 15% of such
Consolidated EBITDA for such Measurement Period.

2

 

EXHIBIT E-1

[FORM OF]

ASSIGNMENT AND ASSUMPTION

          This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective
Date set forth below and is entered into by and between [the][each] Assignor identified in item 1
below ([the][each, an]4 “Assignor”) and [the][each] Assignee identified in item 2 below
([the][each, an] “Assignee”). [It is understood and agreed that the rights and obligations of [the
Assignors][the Assignees] hereunder are several and not joint.] Capitalized terms used but not
defined herein shall have the meanings given to them in the Credit Agreement identified below (as
amended, amended and restated supplemented or otherwise modified from time to time, the “Credit
Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms
and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by
reference and made a part of this Assignment and Assumption as if set forth herein in full.

          For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the
Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and
assumes from [the Assignor][the respective Assignors], subject to and in accordance with the
Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below (i) all of [the Assignor’s][the respective Assignors’]
rights and obligations in [its capacity as a Lender][their respective capacities as Lenders] under
the Credit Agreement and any other documents or instruments delivered pursuant thereto to the
extent related to the amount and percentage interest identified below of all of such outstanding
rights and obligations of [the Assignor][the respective Assignors] under the respective facilities
identified below (including, without limitation, the Letters of Credit and the Swing Line Loans
included in such facilities) and (ii) to the extent permitted to be assigned under applicable law,
all claims, suits, causes of action and any other right of [the Assignor (in its capacity as a
Lender)][the respective Assignors (in their respective capacities as Lenders)] against any Person,
whether known or unknown, arising under or in connection with the Credit Agreement, any other
documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in
any way based on or related to any of the foregoing, including contract claims, tort claims,
malpractice claims, statutory claims and all other claims at law or in equity related to the rights
and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and
assigned by [the][any] Assignor to [the][any] Assignee pursuant to clauses (i) and (ii) above being
referred to herein collectively as [the][an] “Assigned Interest”). Such sale and assignment is
without recourse to [the][any] Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by [the][any] Assignor.

	 	 	 	 	 	 	 

	1.

	 	Assignor[s]:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	2.

	 	Assignee[s]:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 

     [for each Assignee, indicate [Affiliate][Approved Fund] of [identify Lender]]

 

			
	4	 	Select as applicable.

 

 

EXHIBIT E-1

	 	 	 	 	 	 	 

	3.

	 	Borrower[s]:	 	 	 	 
	 

	 	 	 	 

	 	 

4.         Administrative Agent: Credit Suisse, as administrative agent under the Credit Agreement.

	 	 	 	 	 

	5.

	 	Credit Agreement:
	 	The Credit Agreement (as amended, restated, extended, supplemented or
otherwise modified in writing from time to time, the “Credit Agreement”) dated as of June 9,
2008 among Ply Gem Industries, Inc. a Delaware corporation (the “Specified U.S. Borrower”),
CWD Windows and Doors, Inc., (the “Canadian Borrower”), Ply Gem Holdings, Inc., a Delaware
corporation, the Subsidiaries of the Borrower from time to time party thereto, the Lenders
parties thereto, Credit Suisse, as Administrative Agent, U.S. Swing Line Lender and U.S. L/C
Issuer, General Electric Capital Corporation, as Collateral Agent, Credit Suisse, Toronto
Branch, as Canadian Swing Line Lender and Canadian L/C Issuer, and Credit Suisse Securities
(USA) LLC, as Sole Lead Arranger and Sole Bookrunner.
	 
	 	 	 	 
	6.

	 	Assigned Interest:	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Aggregate	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Amount of	 	Amount of	 	Percentage	 	 
	 	 	 	 	 	 	 	 	 	 	Commitment	 	Commitment	 	Assigned of	 	 
	 	 	 	 	 	 	Facility	 	/Loans for	 	/Loans	 	Commitment	 	CUSIP
	Assignor[s] 5	 	Assignee[s] 6	 	Assigned 7	 	all Lenders 8	 	Assigned 9	 	/Loans 10	 	Number
	 
	 	 	 	 	 	 	 	 	 	$	 	 	 	$	 	 	 	 	%	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	$	 	 	 	$	 	 	 	 	%	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	$	 	 	 	$	 	 	 	 	%	 	 	 	 	 

 

			
	5	 	List each Assignor, as appropriate
	 
	6	 	List each Assignee, as appropriate
	 
	7	 	Fill in the appropriate terminology for the
types of facilities under the Credit Agreement that are being assigned under
this Assignment (e.g. U.S. Revolving Credit Loan, Canadian Revolving Credit
Loan etc)
	 
	8	 	Amounts in this column and in the column
immediately to the right to be adjusted by the counterparties to take into
account any payments or prepayments made between the Trade Date and the
Effective Date.
	 
	9	 	Set forth, to at least 9 decimal places, as a
percentage of the Commitment/Loans of all Lenders thereunder.
	 
	10	 	To be completed if the Assignor and the
Assignee intend that the minimum assignment amount is to be determined as of
the Trade Date.

 

 

EXHIBIT E-1

Effective Date:                      ___, 20___[TO BE INSERTED BY THE ADMINISTRATIVE AGENT AND WHICH
SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 	 	 	 	 	 	 

	 	 	ASSIGNOR[S]	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	[NAME OF ASSIGNOR]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Name:
	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	[NAME OF ASSIGNOR]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Name:
	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	ASSIGNEE[S]	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	[NAME OF ASSIGNEE]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Name:
	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	[NAME OF ASSIGNEE]
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Name:
	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 

2

 

EXHIBIT E-2

FORM OF

ADMINISTRATIVE QUESTIONNAIRE

PLY GEM INDUSTRIES, INC.

	 	 	 
	Agent Information	 	Agent Closing Contact
	 

	Credit Suisse

	 	Fay Rollins
	Eleven Madison Avenue

	 	Tel: 212-325-9041
	New York, NY 10010

	 	Fax: 212-538-3477 Desktop: 212-743-1422
	 

	 	E-Mail: fay.rollins@credit-suisse.com

	 	 	 	 	 
	Agent Wire Instructions	 	 	 	 
	Bank of New York

	ABA 021000018

	Account Name: CS Agency Cayman Account

	Account Number: 8900492627

It is very important that all of the requested information be completed accurately and
that this questionnaire be returned promptly. If your institution is sub-allocating its
allocation, please fill out an administrative questionnaire for each legal entity.

Legal Name of Lender to appear in Documentation:

 

	 	 	 

	Signature Block Information:
	 	 
	 

	 	 

	 	 	 	 	 	 	 	 	 

	       •  Signing Credit Agreement

	 	 

	 	Yes
	 	 

	 	No
	 
	 	 	 	 	 	 	 	 
	       •  Coming in via Assignment

	 	 

	 	Yes
	 	 

	 	No

	 	 	 

	Type of Lender:
	 	 
	 

	 	 

(Bank, Asset Manager, Broker/Dealer, CLO/CDO; Finance Company, Hedge Fund, Insurance, Mutual Fund,
Pension Fund, Other Regulated Investment Fund, Special Purpose Vehicle, Other-please specify)

	 	 	 

	Lender Parent:
	 	 
	 

	 	 

	 	 	 	 	 
	Lender
Domestic Address	 	 	 	Lender Eurodollar Address
	 
	 	 	 	 
	 

	 	 
	 	  

	 
	 	 	 	 
	 

	 	 
	 	  

	 
	 	 	 	 
	 

	 	 
	 	  

 

 

EXHIBIT E-2

Contacts/Notification Methods: Borrowings, Paydowns, Interest, Fees, etc.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Primary Credit Contact	 	 	 	Secondary Credit Contact	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Company:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Telephone:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Facsimile:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	E-Mail Address:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Primary Operations Contact	 	 	 	Secondary Operations Contact	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Company:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

	 	 	 	 

Lender’s Domestic Wire Instructions

	 	 	 	 	 

	Bank Name:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	ABA/Routing No.:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Account Name:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Account No.:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	FFC Account Name:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	FFC Account No.:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Attention:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Reference:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 

 

 

EXHIBIT E-2

Tax Documents

NON-U.S. LENDER INSTITUTIONS:

I. Corporations:

If your institution is incorporated outside of the United States for U.S. federal income tax
purposes, and is the beneficial owner of the interest and other income it receives, you
must complete one of the following three tax forms, as applicable to your institution: a.) Form
W-8BEN (Certificate of Foreign Status of Beneficial Owner), b.) Form W-8ECI (Income Effectively
Connected to a U.S. Trade or Business), or c.) Form W-8EXP (Certificate of Foreign Government or
Governmental Agency).

A U.S. taxpayer identification number is required for any institution submitting Form W-8ECI. It
is also required on Form W-8BEN for certain institutions claiming the benefits of a tax treaty with
the U.S. Please refer to the instructions when completing the form applicable to your institution.
In addition, please be advised that U.S. tax regulations do not permit the acceptance of faxed
forms. An original tax form must be submitted.

II. Flow-Through Entities:

If your institution is organized outside the U.S., and is classified for U.S. federal income tax
purposes as either a Partnership, Trust, Qualified or Non-Qualified Intermediary, or other non-U.S.
flow-through entity, an original Form W-8IMY (Certificate of Foreign Intermediary, Foreign
Flow-Through Entity, or Certain U.S. Branches for United States Tax Withholding) must be completed
by the intermediary together with a withholding statement. Flow-through entities other than
Qualified Intermediaries are required to include tax forms for each of the underlying beneficial
owners.

Please refer to the instructions when completing this form. In addition, please be advised that
U.S. tax regulations do not permit the acceptance of faxed forms. Original tax form(s) must be
submitted.

U.S. LENDER INSTITUTIONS:

If your institution is incorporated or organized within the United States, you must
complete and return Form W-9 (Request for Taxpayer Identification Number and Certification).
Please be advised that we request that you submit an original Form W-9.

Pursuant to the language contained in the tax section of the Credit Agreement, the applicable tax
form for your institution must be completed and returned prior to the first payment of income.
Failure to provide the proper tax form when requested may subject your institution to U.S. tax
withholding.

 

 

EXHIBIT F

FORM OF GUARANTY

[See Exhibit 4.8 to the Company’s Form 10-Q,
dated August 11, 2008 (File No. 333-114041-07)]

 

 

EXHIBIT G-1

FORM OF U.S. SECURITY AGREEMENT

[See Exhibit 4.7 to the Company’s Form 10-Q,
dated August 11, 2008 (File No. 333-114041-07)]

 

 

EXHIBIT G-2

FORM OF CANADIAN SECURITY AGREEMENT

[See Exhibit 4.10 to the Company’s Form 10-Q,
dated August 11, 2008 (File No. 333-114041-07)]

 

 

EXHIBIT H

 

[FORM OF]

[LEASEHOLD] MORTGAGE, ASSIGNMENT OF LEASES AND RENTS, SECURITY

AGREEMENT AND FINANCING STATEMENT

From

[MORTGAGOR]

To

GENERAL ELECTRIC CAPITAL CORPORATION

 

Dated: [•], 2008

Premises: [City, State] Site #[•]

[•] County

 

 

 

 

     THIS [LEASEHOLD] MORTGAGE, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT
AND FINANCING STATEMENT dated as of [•], 2008 (this “Mortgage”), by [MORTGAGOR], a
[•] having an office at [•] (the “Mortgagor”), to GENERAL ELECTRIC CAPITAL
CORPORATION, a [•], having an office at [•] (the “Mortgagee”) as Collateral Agent
for the Secured Parties (as such terms are defined below).

WITNESSETH THAT:

     Reference is made to (i) the Credit Agreement dated as of June 9, 2008 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”), among Ply Gem
Holdings, Inc., a Delaware corporation (“Holdings”), Ply Gem Industries, Inc., a Delaware
corporation (the “Specified U.S. Borrower”), CWD Windows and Doors, Inc., a Canadian corporation
(the “Canadian Borrower”), the Subsidiaries (such term and each other capitalized term used but not
defined herein having the meaning given to it in the Credit Agreement) of the Specified U.S.
Borrower from time to time party thereto as Borrowers and Guarantors, each Lender from time to time
party thereto, Credit Suisse, as Administrative Agent (in such capacity, the “Administrative
Agent”), U.S. Swing Line Lender and U.S. L/C Issuer, General Electric Capital Corporation, as
Collateral Agent (in such capacity, the “Collateral Agent”), Credit Suisse Toronto Branch, as
Canadian Swing Line Lender and Canadian L/C Issuer, Credit Suisse Securities (USA) LLC, as Sole
Lead Arranger and Sole Bookrunner, [•], as Syndication Agent and [•], as Documentation Agent, (ii)
the U.S. Security Agreement dated as of June 9, 2008 (as amended, supplemented or otherwise
modified from time to time, the “U.S. Security Agreement”), among the Specified U.S. Borrower,
Holdings, the other Persons listed on Schedule I thereto, the Additional Grantors (as defined
therein), Collateral Agent and Administrative Agent and (iii) the U.S. Guaranty dated as of June 9,
2008 (as amended, supplemented or otherwise modified from time to time, the “U.S. Guaranty”), among
the Specified U.S. Borrower, Holdings, the Subsidiaries of the Specified U.S. Borrower listed on
Schedule I thereto and Collateral Agent.

     In the Credit Agreement, (i) the Lenders have agreed to make Revolving Credit Loans to the
Borrowers, (ii) the Swing Line Lenders have agreed to make Swing Line Loans to the Borrowers and
(iii) the L/C Issuers have issued or have agreed to issue from time to time Letters of Credit for
the account of the Borrowers, in each case pursuant to, upon the terms, and subject to the
conditions specified in, the Credit Agreement. Subject to the terms of the Credit Agreement, the
Borrowers may borrow, prepay and reborrow Revolving Credit Loans. The Credit Agreement provides
that the sum of the principal amount of the Loans and the Letters of Credit from time to time
outstanding and secured hereby shall not exceed $[•]1

     [Mortgagor is a Borrower and will derive substantial benefit from the making of the Loans by
the Lenders and the issuance of the Letters of Credit by the L/C Issuers. In order to induce the
Lenders to make Loans and the L/C Issuers to issue Letters of Credit, the

 

			
	1	 	Modify as appropriate for certain states such as
New York where revolving loans may not be secured by the Mortgage due to the
mortgage recording tax requirements.

 

 

Mortgagor has agreed to grant this Mortgage to secure, among other things, the due and
punctual payment and performance of all of the Obligations (as defined below) of the Borrowers
under the Credit Agreement pursuant to the terms of the U.S. Guaranty and the U.S. Security
Agreement.

     Mortgagor is a wholly owned Subsidiary of [the Specified U.S. Borrower / a Borrower /
Holdings] and will derive substantial benefit from the making of the Loans by the Lenders and the
issuance of the Letters of Credit by the L/C Issuers. In order to induce the Lenders to make Loans
and the L/C Issuers to issue Letters of Credit, the Mortgagor has agreed to guarantee, among other
things, the due and punctual payment and performance of all of the Obligations (as defined below)
of the Borrowers under the Credit Agreement pursuant to the terms of the U.S. Guaranty and the U.S.
Security Agreement.]2

     The obligations of the Lenders and the L/C Issuers to extend credit to the Borrowers, the
Hedge Banks to enter into Secured Hedge Agreements and the Cash Management Banks to enter into
Secured Cash Management Agreements, are conditioned upon, among other things, the execution and
delivery by the Mortgagor of this Mortgage in the form hereof to secure the Obligations.

     Pursuant to the requirements of the Credit Agreement, the Mortgagor is granting this Mortgage
to create a lien on and a security interest in the Mortgaged Property (as hereinafter defined) to
secure the performance and payment by the Mortgagor of the Obligations (as hereinafter defined).
The Credit Agreement also requires the granting by other Loan Parties of mortgages, deeds of trust
and/or deeds to secure debt (the “Other Mortgages”) that create liens on and security interests in
certain real and personal property other than the Mortgaged Property to secure the performance of
the Obligations.

     As used in this Mortgage, the following terms have the meanings specified below:

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

 

			
	2	 	Only one of the two immediately preceding
paragraphs should appear in any particular Mortgage. The first bracketed
paragraph should be inserted if Mortgagor is a Borrower. The second brackted
paragraph should be inserted if Mortgagor is Guarantor of the Obligations.

3

 

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

     “Obligations” means the U.S. Obligations and the Canadian Obligations.

     “Secured Parties” means the U.S. Secured Parties and the Canadian Secured Parties.

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

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

Granting Clauses

     NOW, THEREFORE, IN CONSIDERATION OF the foregoing and in order to secure the due and punctual
payment and performance of the Obligations for the benefit of the Secured Parties, Mortgagor hereby
grants, conveys, mortgages, assigns and pledges to the Mortgagee, a mortgage lien on and a security
interest in, all the following described property (the “Mortgaged Property”) whether now owned or
held or hereafter acquired:

     (1) [insert in fee mortgage: the land more particularly described on Exhibit A hereto
(the “Land”), together with all rights appurtenant thereto, including the easements over
certain other adjoining land granted by any easement agreements, covenant or restrictive
agreements and all air rights, mineral rights, water rights, oil and gas rights and
development rights, if any, relating thereto, and also together with all of the other
easements, rights, privileges, interests, hereditaments and appurtenances thereunto
belonging or in any way appertaining and all of the estate, right, title, interest, claim
or demand whatsoever of Mortgagor therein and in the streets and ways adjacent thereto,
either in law or in equity, in possession or expectancy, now or hereafter acquired (the
“Premises”); / insert in leasehold

4

 

mortgage: all of Mortgagor’s right, title and interest in and to that certain lease
covering and encumbering that certain real property described on Exhibit A hereto (the
“Land”), which lease is more specifically described on Exhibit B hereto (as amended or
modified from time to time, the “Subject Lease”), together with all rights of Mortgagor
under the Subject Lease;]

     [insert in leasehold mortgage: (2) all of Mortgagor’s right, title and interest in
and to the leasehold estate in the Land created by the Subject Lease, together with all
rights appurtenant to the Land, including the easements over certain other adjoining land
granted by any easement agreements, covenant or restrictive agreements and all air rights,
mineral rights, water rights, oil and gas rights and development rights, if any, relating
thereto, and also together with all of the other easements, rights, privileges, interests,
hereditaments and appurtenances thereunto belonging or in any way appertaining and all of
the estate, right, title, interest, claim or demand whatsoever of Mortgagor therein and in
the streets and ways adjacent thereto, either in law or in equity, in possession or
expectancy, now or hereafter acquired (the “Premises”);]

     (2) all of Morgagor’s right, title and interest in and to all buildings, improvements,
structures, paving, parking areas, walkways and landscaping now or hereafter erected or
located upon the Land, and all fixtures of every kind and type affixed to the Premises or
attached to or forming part of any structures, buildings or improvements and replacements
thereof now or hereafter erected or located upon the Land (the “Improvements”);

     (3) all of Morgagor’s right, title and interest in and to all apparatus, movable
appliances, building materials, equipment, fittings, furnishings, furniture, machinery and
other articles of tangible personal property of every kind and nature, and replacements
thereof, now or at any time hereafter placed upon or used in any way in connection with the
use, enjoyment, occupancy or operation of the Improvements or the Premises, including all
of Mortgagor’s books and records relating thereto and including all pumps, tanks, goods,
machinery, tools, equipment, lifts (including fire sprinklers and alarm systems, fire
prevention or control systems, cleaning rigs, air conditioning, heating, boilers,
refrigerating, electronic monitoring, water, loading, unloading, lighting, power,
sanitation, waste removal, entertainment, communications, computers, recreational, window
or structural, maintenance, truck or car repair and all other equipment of every kind),
restaurant, bar and all other indoor or outdoor furniture (including tables, chairs,
booths, serving stands, planters, desks, sofas, racks, shelves, lockers and cabinets), bar
equipment, glasses, cutlery, uniforms, linens, memorabilia and other decorative items,
furnishings, appliances, supplies, inventory, rugs, carpets and other floor coverings,
draperies, drapery rods and brackets, awnings, venetian blinds, partitions, chandeliers and
other lighting fixtures, freezers, refrigerators, walk-in coolers, signs (indoor and
outdoor), computer systems, cash registers and inventory control systems, and all other
apparatus, equipment, furniture, furnishings, and articles used in connection with the use
or operation of the Improvements or the Premises, it being understood that the enumeration
of any specific articles of property shall in no way result in or be held to

5

 

exclude any items of property not specifically mentioned (the property referred to in
this subparagraph (3), the “Personal Property”);

     (4) all of Morgagor’s right, title and interest in and to all general intangibles
owned by Mortgagor and relating to design, development, operation, management and use of
the Premises or the Improvements, all certificates of occupancy, zoning variances,
building, use or other permits, approvals, authorizations and consents obtained from and
all materials prepared for filing or filed with any governmental agency in connection with
the development, use, operation or management of the Premises and Improvements, all
construction, service, engineering, consulting, leasing, architectural and other similar
contracts concerning the design, construction, management, operation, occupancy and/or use
of the Premises and Improvements, all architectural drawings, plans, specifications, soil
tests, feasibility studies, appraisals, environmental studies, engineering reports and
similar materials relating to any portion of or all of the Premises and Improvements, and
all payment and performance bonds or warranties or guarantees relating to the Premises or
the Improvements, all to the extent assignable (the “Permits, Plans and Warranties”);

     (5) all of Morgagor’s right, title and interest in and to all now or hereafter
existing leases or licenses (under which Mortgagor is landlord or licensor) and subleases
(under which Mortgagor is sublandlord), concession, management, mineral or other agreements
of a similar kind that permit the use or occupancy of the Premises or the Improvements for
any purpose in return for any payment, or the extraction or taking of any gas, oil, water
or other minerals from the Premises in return for payment of any fee, rent or royalty
(collectively, “Leases”), and all agreements or contracts for the sale or other disposition
of all or any part of the Premises or the Improvements, now or hereafter entered into by
Mortgagor, together with all charges, fees, income, issues, profits, receipts, rents,
revenues or royalties payable thereunder (“Rents”);

     (6) all of Morgagor’s right, title and interest in and to all real estate tax refunds
and all proceeds of the conversion, voluntary or involuntary, of any of the Mortgaged
Property into cash or liquidated claims (“Proceeds”), including Proceeds of insurance
maintained by the Mortgagor and condemnation awards, any awards that may become due by
reason of the taking by eminent domain or any transfer in lieu thereof of the whole or any
part of the Premises or Improvements or any rights appurtenant thereto, and any awards for
change of grade of streets, together with any and all moneys now or hereafter on deposit
for the payment of real estate taxes, assessments or common area charges levied against the
Mortgaged Property, unearned premiums on policies of fire and other insurance maintained by
the Mortgagor covering any interest in the Mortgaged Property or required by the Credit
Agreement; and

     (7) all of Morgagor’s right, title and interest in and to all extensions,
improvements, betterments, renewals, substitutes and replacements of and all additions and
appurtenances to, the Land, the Premises, the Improvements, the Personal Property, the
Permits, Plans and Warranties and the Leases, hereinafter acquired by or released to the
Mortgagor or constructed, assembled or placed by the

6

 

Mortgagor on the Land, the Premises or the Improvements, and all conversions of the
security constituted thereby, immediately upon such acquisition, release, construction,
assembling, placement or conversion, as the case may be, and in each such case, without any
further mortgage, deed of trust, conveyance, assignment or other act by the Mortgagor, all
of which shall become subject to the lien of this Mortgage as fully and completely, and
with the same effect, as though now owned by the Mortgagor and specifically described
herein.

     TO HAVE AND TO HOLD the Mortgaged Property unto the Mortgagee, its successors and assigns, for
the ratable benefit of the Secured Parties, forever, subject only to those Liens permitted under
Section 7.01 of the Credit Agreement (the “Permitted Encumbrances”) and to satisfaction and release
as provided in Section 3.04.

ARTICLE I

Representations, Warranties and Covenants of Mortgagor

     Mortgagor agrees, covenants, represents and/or warrants as follows:

     SECTION 1.01. Title, Mortgage Lien. (a) [insert in fee mortgage: Mortgagor has good
and marketable fee simple title to, or other applicable type of ownership interest in, the
Mortgaged Property, subject only to Permitted Encumbrances / insert in leasehold mortgage:
Mortgagor is lawfully seized and possessed of, and has a valid, subsisting leasehold estate in, the
Subject Lease, subject only to Permitted Encumbrances.]

     (b) The execution and delivery of this Mortgage is within Mortgagor’s corporate powers and
has been duly authorized by all necessary corporate and, if required, stockholder action. This
Mortgage has been duly executed and delivered by Mortgagor and constitutes a legal, valid and
binding obligation of Mortgagor, enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights
generally and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law.

     (c) The execution, delivery and recordation of this Mortgage (i) do not require any consent
or approval of, registration or filing with, or any other action by, any Governmental Authority,
except such as have been obtained or made and are in full force and effect and except filings
necessary to perfect the lien of this Mortgage, (ii) will not violate any applicable law or
regulation or the charter, by-laws or other organizational documents of Mortgagor or any order of
any Governmental Authority, (iii) will not violate or result in a default under any indenture,
agreement or other instrument binding upon Mortgagor or its assets, or give rise to a right
thereunder to require any payment to be made by Mortgagor, and (iv) will not result in the creation
or imposition of any Lien on any asset of Mortgagor, except the lien of this Mortgage.

     (d) This Mortgage and the Uniform Commercial Code Financing Statements described in Section
1.09 of this Mortgage, when duly recorded in the public records

7

 

identified in the Perfection Certificate will create a valid, perfected and enforceable lien
upon and security interest in all of the Mortgaged Property.

     (e) Mortgagor will forever warrant and defend its title to the Mortgaged Property, the rights
of Mortgagee therein under this Mortgage and the validity and priority of the lien of this Mortgage
thereon against the claims of all persons and parties except those having rights under Permitted
Encumbrances to the extent of those rights.

     SECTION 1.02. Credit Agreement. This Mortgage is given pursuant to the Credit
Agreement. Mortgagor expressly covenants and agrees to pay when due, and to timely perform, and to
cause the other Loan Parties to pay when due, and to timely perform, the Obligations in accordance
with the terms of the Loan Documents.

     SECTION 1.03. Payment of Taxes, and Other Obligations. (a) Mortgagor will pay and
discharge from time to time prior to the time when the same shall become delinquent, and before any
interest or penalty accrues thereon or attaches thereto, all Taxes and other obligations with
respect to the Mortgaged Property or any part thereof or upon the Rents from the Mortgaged Property
or arising in respect of the occupancy, use or possession thereof in accordance with, and to the
extent required by, the Credit Agreement.

     (b) In the event of the passage of any state, Federal, municipal or other governmental law,
order, rule or regulation subsequent to the date hereof (i) deducting from the value of real
property for the purpose of taxation any lien or encumbrance thereon or in any manner changing or
modifying the laws now in force governing the taxation of this Mortgage or debts secured by
mortgages or deeds of trust (other than laws governing income, franchise and similar taxes
generally) or the manner of collecting taxes thereon and (ii) imposing a tax to be paid by
Mortgagee, either directly or indirectly, on this Mortgage or any of the Loan Documents, or
requiring an amount of taxes to be withheld or deducted therefrom, Mortgagor will promptly (i)
notify Mortgagee of such event, (ii) enter into such further instruments as Mortgagee may determine
are reasonably necessary or desirable to obligate Mortgagor to make any additional payments
necessary to put the Lenders and Secured Parties in the same financial position they would have
been if such law, order, rule or regulation had not been passed and (iii) make such additional
payments to Mortgagee for the benefit of the Lenders and Secured Parties.

     SECTION 1.04. Maintenance of Mortgaged Property. Mortgagor will maintain the
Improvements and the Personal Property in the manner required by the Credit Agreement.

     SECTION 1.05. Insurance. Mortgagor will keep or cause to be kept the Improvements and
Personal Property insured against such risks, and in the manner, described in Section 8 of the U.S.
Security Agreement and shall purchase such additional insurance as may be required from time to
time pursuant to Section 6.07 of the Credit Agreement. Federal Emergency Management Agency
Standard Flood Hazard Determination Forms will be purchased by Mortgagor for each Mortgaged
Property on which Improvements are located. If any portion of Improvements constituting part of
the Mortgaged Property is located in an area identified as a special flood hazard area by Federal
Emergency Management Agency or other applicable agency, Mortgagor will purchase flood insurance in
an amount reasonably

8

 

satisfactory to Mortgagee, but in no event less than the maximum limit of coverage available
under the National Flood Insurance Act of 1968, as amended.

     SECTION 1.06. Casualty Condemnation/Eminent Domain. Mortgagor shall give Mortgagee
prompt written notice of any casualty or other damage to the Mortgaged Property or any proceeding
for the taking of the Mortgaged Property or any portion thereof or interest therein under power of
eminent domain or by condemnation or any similar proceeding in accordance with, and to the extent
required by, the Credit Agreement. Any net proceeds received by or on behalf of the Mortgagor in
respect of any such casualty, damage or taking shall, unless the portion of the Mortgaged Property
damaged is covered by Section 7.05(a) of the Credit Agreement, constitute trust funds held by the
Mortgagor for the benefit of the Secured Parties to be applied to repair, restore or replace the
Mortgaged Property.

     SECTION 1.07. Assignment of Leases and Rents. (a) Mortgagor hereby irrevocably and
absolutely grants, transfers and assigns all of its right title and interest in all Leases,
together with any and all extensions and renewals thereof for purposes of securing and discharging
the performance by Mortgagor of the Obligations. Mortgagor has not assigned or executed any
assignment of, and will not assign or execute any assignment of, any Leases or the Rents payable
thereunder to anyone other than Mortgagee.

     (b) All Leases shall be subordinate to the lien of this Mortgage. Mortgagor will not enter
into, modify or amend any Lease if such Lease, as entered into, modified or amended, will not be
subordinate to the lien of this Mortgage.

     (c) Subject to Section 1.07(d), Mortgagor has assigned and transferred to Mortgagee all of
Mortgagor’s right, title and interest in and to the Rents now or hereafter arising from each Lease
heretofore or hereafter made or agreed to by Mortgagor, it being intended that this assignment
establish, subject to Section 1.07(d), an absolute transfer and assignment of all Rents and all
Leases to Mortgagee and not merely to grant a security interest therein. Subject to Section
1.07(d), Mortgagee may in Mortgagor’s name and stead (with or without first taking possession of
any of the Mortgaged Property personally or by receiver as provided herein) operate the Mortgaged
Property and rent, lease or let all or any portion of any of the Mortgaged Property to any party or
parties at such rental and upon such terms as Mortgagee shall, in its sole discretion, determine,
and may collect and have the benefit of all of said Rents arising from or accruing at any time
thereafter or that may thereafter become due under any Lease.

     (d) So long as an Event of Default shall not have occurred and be continuing, Mortgagee will
not exercise any of its rights under Section 1.07(c), and Mortgagor shall receive and collect the
Rents accruing under any Lease; but after the happening and during the continuance of any Event of
Default, Mortgagee may, at its option, receive and collect all Rents and enter upon the Premises
and Improvements through its officers, agents, employees or attorneys for such purpose and for the
operation and maintenance thereof. Mortgagor hereby irrevocably authorizes and directs each
tenant, if any, and each successor, if any, to the interest of any tenant under any Lease,
respectively, to rely upon any notice of a claimed Event of Default sent by Mortgagee to any such
tenant or any of such tenant’s successors in interest, and thereafter to pay Rents to Mortgagee
without any obligation or right to inquire

9

 

as to whether an Event of Default actually exists and even if some notice to the contrary is
received from the Mortgagor, who shall have no right or claim against any such tenant or successor
in interest for any such Rents so paid to Mortgagee. Each tenant or any of such tenant’s
successors in interest from whom Mortgagee or any officer, agent, attorney or employee of Mortgagee
shall have collected any Rents, shall be authorized to pay Rents to Mortgagor only after such
tenant or any of their successors in interest shall have received written notice from Mortgagee
that the Event of Default is no longer continuing, unless and until a further notice of an Event of
Default is given by Mortgagee to such tenant or any of its successors in interest.

     (e) Mortgagee will not become a mortgagee in possession so long as it does not enter or take
actual possession of the Mortgaged Property. In addition, Mortgagee shall not be responsible or
liable for performing any of the obligations of the landlord under any Lease, for any waste by any
tenant, or others, for any dangerous or defective conditions of any of the Mortgaged Property, for
negligence in the management, upkeep, repair or control of any of the Mortgaged Property or any
other act or omission by any other person.

     (f) Mortgagor shall furnish to Mortgagee, within 30 days after a request by Mortgagee to do
so, a written statement containing the names of all tenants, subtenants and concessionaires of the
Premises or Improvements, the terms of any Lease, the space occupied and the rentals and/or other
amounts payable thereunder.

     SECTION 1.08. Restrictions on Transfers and Encumbrances. Mortgagor shall not
directly or indirectly sell, convey, alienate, assign, lease, sublease, license, mortgage, pledge,
encumber or otherwise transfer, create, consent to or suffer the creation of any lien, charge or
other form of encumbrance upon any interest in or any part of the Mortgaged Property that is not a
Permitted Encumbrance, or be divested of its title to the Mortgaged Property or any interest
therein in any manner or way, whether voluntarily or involuntarily (other than resulting from a
condemnation), or engage in any common, cooperative, joint, time-sharing or other congregate
ownership of all or part thereof, except in each case in accordance with and to the extent
permitted by the Credit Agreement; provided, that Mortgagor may, in the ordinary course of
business and in accordance with reasonable commercial standards, enter into easement or covenant
agreements that relate to and/or benefit the operation of the Mortgaged Property and that do not
materially and adversely affect the value, use or operation of the Mortgaged Property.

     SECTION 1.09. Security Agreement. This Mortgage is both a mortgage of real property
and a grant of a security interest in personal property, and shall constitute and serve as a
“Security Agreement” within the meaning of the uniform commercial code as adopted in the state
wherein the Premises are located (“UCC”). Mortgagor has hereby granted unto Mortgagee a security
interest in and to all the Mortgaged Property described in this Mortgage that is not real property,
and simultaneously with the recording of this Mortgage, Mortgagor has filed or will file UCC
financing statements, and will file continuation statements prior to the lapse thereof, at the
appropriate offices in the jurisdiction of formation of the Mortgagor to perfect the security
interest granted by this Mortgage in all the Mortgaged Property that is not real property.
Mortgagor hereby appoints Mortgagee as its true and lawful attorney-in-fact and agent, for
Mortgagor and in its name, place and stead, in any and all capacities, to

10

 

execute any document and to file the same in the appropriate offices (to the extent it may
lawfully do so), and to perform each and every act and thing reasonably requisite and necessary to
be done to perfect the security interest contemplated by the preceding sentence. Mortgagee shall
have all rights with respect to the part of the Mortgaged Property that is the subject of a
security interest afforded by the UCC in addition to, but not in limitation of, the other rights
afforded Mortgagee hereunder and under the Guarantee and Collateral Agreement.

     SECTION 1.10. Filing and Recording. Mortgagor will cause this Mortgage, the UCC
financing statements referred to in Section 1.09, any other security instrument creating a security
interest in or evidencing the lien hereof upon the Mortgaged Property and each UCC continuation
statement and instrument of further assurance to be filed, registered or recorded and, if
necessary, refiled, rerecorded and reregistered, in such manner and in such places as may be
required by any present or future law in order to publish notice of and fully to perfect the lien
hereof upon, and the security interest of Mortgagee in, the Mortgaged Property until this Mortgage
is terminated and released in full in accordance with Section 3.04 hereof. Mortgagor will pay all
filing, registration and recording fees, all Federal, state, county and municipal recording,
documentary or intangible taxes and other taxes, duties, imposts, assessments and charges, and all
reasonable expenses incidental to or arising out of or in connection with the execution, delivery
and recording of this Mortgage, UCC continuation statements any mortgage supplemental hereto, any
security instrument with respect to the Personal Property, Permits, Plans and Warranties and
Proceeds or any instrument of further assurance.

     SECTION 1.11. Further Assurances. Upon demand by Mortgagee, Mortgagor will, at the
cost of Mortgagor and without expense to Mortgagee, do, execute, acknowledge and deliver all such
further acts, deeds, conveyances, mortgages, assignments, notices of assignment, transfers and
assurances as Mortgagee shall from time to time reasonably require for the better assuring,
conveying, assigning, transferring and confirming unto Mortgagee the property and rights hereby
conveyed or assigned or intended now or hereafter so to be, or which Mortgagor may be or may
hereafter become bound to convey or assign to Mortgagee, or for carrying out the intention or
facilitating the performance of the terms of this Mortgage, or for filing, registering or recording
this Mortgage, and on demand, Mortgagor will also execute and deliver and hereby appoints Mortgagee
as its true and lawful attorney-in-fact and agent, for Mortgagor and in its name, place and stead,
in any and all capacities, to execute and file to the extent it may lawfully do so, one or more
financing statements, chattel mortgages or comparable security instruments reasonably requested by
Mortgagee to evidence more effectively the lien hereof upon the Personal Property and to perform
each and every act and thing requisite and necessary to be done to accomplish the same.

     SECTION 1.12. Additions to Mortgaged Property. All right, title and interest of
Mortgagor in and to all extensions, improvements, betterments, renewals, substitutions and
replacements of, and all additions and appurtenances to, the Mortgaged Property hereafter acquired
by or released to Mortgagor or constructed, assembled or placed by Mortgagor upon the Premises or
the Improvements, and all conversions of the security constituted thereby, immediately upon such
acquisition, release, construction, assembling, placement or conversion, as the case may be, and in
each such case without any further mortgage,

11

 

conveyance, assignment or other act by Mortgagor, shall become subject to the lien and
security interest of this Mortgage as fully and completely and with the same effect as though now
owned by Mortgagor and specifically described in the grant of the Mortgaged Property above, but at
any and all times Mortgagor will execute and deliver to Mortgagee any and all such further
assurances, mortgages, conveyances or assignments thereof as Mortgagee may reasonably require for
the purpose of expressly and specifically subjecting the same to the lien and security interest of
this Mortgage.

     SECTION 1.13. No Claims Against Mortgagee. Nothing contained in this Mortgage shall
constitute any consent or request by Mortgagee, express or implied, for the performance of any
labor or services or the furnishing of any materials or other property in respect of the Mortgaged
Property or any part thereof, nor as giving Mortgagor any right, power or authority to contract for
or permit the performance of any labor or services or the furnishing of any materials or other
property in such fashion as would permit the making of any claim against Mortgagee in respect
thereof.

     SECTION 1.14. Fixture Filing. (a) Certain portions of the Mortgaged Property are or
will become “fixtures” (as that term is defined in the UCC) on the Land, and this Mortgage, upon
being filed for record in the real estate records of the county wherein such fixtures are situated,
shall operate also as a financing statement filed as a fixture filing in accordance with the
applicable provisions of said UCC upon such portions of the Mortgaged Property that are or become
fixtures.

     (b) The real property to which the fixtures relate is described in Exhibit A attached hereto.
[The record owner of the real property described in Exhibit A attached hereto is
Mortgagor.]3 The name, type of organization and jurisdiction of organization of the
debtor for purposes of this financing statement are the name, type of organization and jurisdiction
of organization of the Mortgagor set forth in the first paragraph of this Mortgage, and the name of
the secured party for purposes of this financing statement is the name of the Mortgagee set forth
in the first paragraph of this Mortgage. The mailing address of the Mortgagor/debtor is the
address of the Mortgagor set forth in the first paragraph of this Mortgage. The mailing address of
the Mortgagee/secured party from which information concerning the security interest hereunder may
be obtained is the address of the Mortgagee set forth in the first paragraph of this Mortgage.
Mortgagor’s organizational identification number is [•].

ARTICLE II

Defaults and Remedies

     SECTION 2.01. Events of Default. Any Event of Default under the Credit Agreement (as
such term is defined therein) shall constitute an Event of Default under this Mortgage.

 

			
	3	 	Modify as appropriate for Leasehold Mortgage.

12

 

     SECTION 2.02. Demand for Payment. If an Event of Default shall occur and be
continuing, then, upon written demand of Mortgagee, Mortgagor will pay to Mortgagee all amounts due
hereunder and under the Credit Agreement and the other Loan Documents and such further amount as
shall be sufficient to cover the costs and expenses of collection, including attorneys’ fees,
disbursements and expenses incurred by Mortgagee, and Mortgagee shall be entitled and empowered to
institute an action or proceedings at law or in equity for the collection of the sums so due and
unpaid, to prosecute any such action or proceedings to judgment or final decree, to enforce any
such judgment or final decree against Mortgagor and to collect, in any manner provided by law, all
moneys adjudged or decreed to be payable.

     SECTION 2.03. Rights To Take Possession, Operate and Apply Revenues. (a) If an Event
of Default shall occur and be continuing, Mortgagor shall, upon demand of Mortgagee, forthwith
surrender to Mortgagee actual possession of the Mortgaged Property and, if and to the extent not
prohibited by applicable law, Mortgagee itself, or by such officers or agents as it may appoint,
may then enter and take possession of all the Mortgaged Property without the appointment of a
receiver or an application therefor, exclude Mortgagor and its agents and employees wholly
therefrom, and have access to the books, papers and accounts of Mortgagor.

     (b) If Mortgagor shall for any reason fail to surrender or deliver the Mortgaged Property or
any part thereof after such demand by Mortgagee, Mortgagee may to the extent not prohibited by
applicable law, obtain a judgment or decree conferring upon Mortgagee the right to immediate
possession or requiring Mortgagor to deliver immediate possession of the Mortgaged Property to
Mortgagee, to the entry of which judgment or decree Mortgagor hereby specifically consents.
Mortgagor will pay to Mortgagee, upon demand, all reasonable expenses of obtaining such judgment or
decree, including reasonable compensation to Mortgagee’s attorneys and agents with interest thereon
at the rate per annum applicable to overdue amounts under the Credit Agreement as provided in
Section 2.08(b) of the Credit Agreement (the “Interest Rate”); and all such expenses and
compensation shall, until paid, be secured by this Mortgage.

     (c) Upon every such entry or taking of possession, Mortgagee may, to the extent not
prohibited by applicable law, hold, store, use, operate, manage and control the Mortgaged Property,
conduct the business thereof and, from time to time, (i) make all necessary and proper maintenance,
repairs, renewals, replacements, additions, betterments and improvements thereto and thereon, (ii)
purchase or otherwise acquire additional fixtures, personalty and other property, (iii) insure or
keep the Mortgaged Property insured, (iv) manage and operate the Mortgaged Property and exercise
all the rights and powers of Mortgagor to the same extent as Mortgagor could in its own name or
otherwise with respect to the same, or (v) enter into any and all agreements with respect to the
exercise by others of any of the powers herein granted Mortgagee, all as may from time to time be
directed or determined by Mortgagee to be in its best interest and Mortgagor hereby appoints
Mortgagee as its true and lawful attorney-in-fact and agent, for Mortgagor and in its name, place
and stead, in any and all capacities, to perform any of the foregoing acts. Mortgagee may collect
and receive all the Rents, issues, profits and revenues from the Mortgaged Property, including
those past due as well as those accruing thereafter, and, after deducting (i) all

13

 

expenses of taking, holding, managing and operating the Mortgaged Property (including
compensation for the services of all persons employed for such purposes), (ii) the costs of all
such maintenance, repairs, renewals, replacements, additions, betterments, improvements, purchases
and acquisitions, (iii) the costs of insurance, (iv) such taxes, assessments and other similar
charges as Mortgagee may at its option pay, (v) other proper charges upon the Mortgaged Property or
any part thereof and (vi) the compensation, expenses and disbursements of the attorneys and agents
of Mortgagee, Mortgagee shall apply the remainder of the moneys and proceeds so received first to
the payment of the Mortgagee for the satisfaction of the Obligations, and second, if there is any
surplus, to Mortgagor, subject to the entitlement of others thereto under applicable law.

     (d) Whenever, before any sale of the Mortgaged Property under Section 2.06, all Obligations
that are then due shall have been paid and all Events of Default fully cured, Mortgagee will
surrender possession of the Mortgaged Property back to Mortgagor, its successors or assigns. The
same right of taking possession shall, however, arise again if any subsequent Event of Default
shall occur and be continuing.

     SECTION 2.04. Right To Cure Mortgagor’s Failure to Perform. Should Mortgagor fail in
the payment, performance or observance of any term, covenant or condition required by this Mortgage
or the Credit Agreement (with respect to the Mortgaged Property), Mortgagee may pay, perform or
observe the same, and all payments made or costs or expenses incurred by Mortgagee in connection
therewith shall be secured hereby and shall be, without demand, immediately repaid by Mortgagor to
Mortgagee with interest thereon at the Interest Rate. Mortgagee shall be the judge using
reasonable discretion of the necessity for any such actions and of the amounts to be paid.
Mortgagee is hereby empowered to enter and to authorize others to enter upon the Premises or the
Improvements or any part thereof for the purpose of performing or observing any such defaulted
term, covenant or condition without having any obligation to so perform or observe and without
thereby becoming liable to Mortgagor, to any person in possession holding under Mortgagor or to any
other person.

     SECTION 2.05. Right to a Receiver. If an Event of Default shall occur and be
continuing, Mortgagee, upon application to a court of competent jurisdiction, shall be entitled as
a matter of right to the appointment of a receiver to take possession of and to operate the
Mortgaged Property and to collect and apply the Rents. The receiver shall have all of the rights
and powers permitted under the laws of the state wherein the Mortgaged Property is located.
Mortgagor shall pay to Mortgagee upon demand all reasonable expenses, including receiver’s fees,
reasonable attorney’s fees and disbursements, costs and agent’s compensation incurred pursuant to
the provisions of this Section 2.05; and all such expenses shall be secured by this Mortgage and
shall be, without demand, immediately repaid by Mortgagor to Mortgagee with interest thereon at the
Interest Rate.

     SECTION 2.06. Foreclosure and Sale. (a) If an Event of Default shall occur and be
continuing, Mortgagee may elect to sell the Mortgaged Property or any part of the Mortgaged
Property by exercise of the power of foreclosure or of sale granted to Mortgagee by applicable law
or this Mortgage. In such case, Mortgagee may commence a civil action to foreclose this Mortgage,
or it may proceed and sell the Mortgaged Property to satisfy any Obligation. Mortgagee or an
officer appointed by a judgment of foreclosure to sell the

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Mortgaged Property, may sell all or such parts of the Mortgaged Property as may be chosen by
Mortgagee at the time and place of sale fixed by it in a notice of sale, either as a whole or in
separate lots, parcels or items as Mortgagee shall deem expedient, and in such order as it may
determine, at public auction to the highest bidder. Mortgagee or an officer appointed by a
judgment of foreclosure to sell the Mortgaged Property may postpone any foreclosure or other sale
of all or any portion of the Mortgaged Property by public announcement at such time and place of
sale, and from time to time thereafter may postpone such sale by public announcement or
subsequently noticed sale. Without further notice, Mortgagee or an officer appointed to sell the
Mortgaged Property may make such sale at the time fixed by the last postponement, or may, in its
discretion, give a new notice of sale. Any person, including Mortgagor or Mortgagee or any
designee or affiliate thereof, may purchase at such sale.

     (b) The Mortgaged Property may be sold subject to unpaid taxes and Permitted Encumbrances,
and, after deducting all costs, fees and expenses of Mortgagee (including costs of evidence of
title in connection with the sale), Mortgagee or an officer that makes any sale shall apply the
proceeds of sale in the manner set forth in Section 2.08.

     (c) Any foreclosure or other sale of less than the whole of the Mortgaged Property or any
defective or irregular sale made hereunder shall not exhaust the power of foreclosure or of sale
provided for herein; and subsequent sales may be made hereunder until the Obligations have been
satisfied, or the entirety of the Mortgaged Property has been sold.

     (d) If an Event of Default shall occur and be continuing, Mortgagee may instead of, or in
addition to, exercising the rights described in Section 2.06(a) above and either with or without
entry or taking possession as herein permitted, proceed by a suit or suits in law or in equity or
by any other appropriate proceeding or remedy (i) to specifically enforce payment of some or all of
the Obligations, or the performance of any term, covenant, condition or agreement of this Mortgage
or any other Loan Document or any other right, or (ii) to pursue any other remedy available to
Mortgagee, all as Mortgagee shall determine most effectual for such purposes.

     SECTION 2.07. Other Remedies. (a) In case an Event of Default shall occur and be
continuing, Mortgagee may also exercise, to the extent not prohibited by law, any or all of the
remedies available to a secured party under the UCC.

     (b) In connection with a sale of the Mortgaged Property or any Personal Property and the
application of the proceeds of sale as provided in Section 2.08, Mortgagee shall be entitled to
enforce payment of and to receive up to the principal amount of the Obligations, plus all other
charges, payments and costs due under this Mortgage, and to recover a deficiency judgment for any
portion of the aggregate principal amount of the Obligations remaining unpaid, with interest.

     SECTION 2.08. Application of Sale Proceeds and Rents. After any foreclosure sale of
all or any of the Mortgaged Property, Mortgagee shall receive and apply the proceeds of the sale
together with any Rents that may have been collected and any other sums that then may be held by
Mortgagee under this Mortgage as follows:

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     First, to payment of that of all costs and expenses incurred by the Mortgagee
and Administrative Agent and the Collateral Agent (in their respective capacities as such
hereunder or under any other U.S. Loan Document) in connection with the collection, sale,
foreclosure or realization upon any Mortgaged Property or otherwise in connection with this
Mortgage, any other U.S. Loan Document or any of the U.S. Obligations, including all court
costs and the fees and expenses of its agents and legal counsel, the repayment of all
advances made by the Mortgagee, Administrative Agent and/or the Collateral Agent hereunder
or under any other U.S. Loan Document on behalf of Holdings or any U.S. Subsidiary
Guarantor and any other costs of expenses incurred in connection with the exercise of any
right or remedy hereunder or under any other U.S. Loan Document;

     Second, to payment in full of U.S. Unfunded Advances/Participations (the
amounts so applied to be distributed between or among the Administrative Agent, the U.S.
Swing Line Lender and the U.S. L/C Issuer pro rata in accordance with the amounts of U.S.
Unfunded Advances/Participations owed to them on the date of such distribution);

     Third, to payment in full of all other U.S. Obligations (the amounts so
applied to be distributed among the U.S. Secured Parties pro rata in accordance with the
amounts of the U.S. Obligations owed to them on the date of any such distribution);

     Fourth, to the Canadian Obligations in the order set forth in Section 8.03(b)
of the Credit Agreement;

     Fifth, as provided for under the Intercreditor Agreement; and

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

The Mortgagee shall have absolute discretion as to the time of application of any such proceeds,
moneys or balances in accordance with this Mortgage. Upon any sale of the Mortgaged Property by
the Mortgagee (including pursuant to a power of sale granted by statute or under a judicial
proceeding), the receipt of the Mortgagee or of the officer making the sale shall be a sufficient
discharge to the purchaser or purchasers of the Mortgaged Property so sold and such purchaser or
purchasers shall not be obligated to see to the application of any part of the purchase money paid
over to the Mortgagee or such officer or be answerable in any way for the misapplication thereof.

     SECTION 2.09. Mortgagor as Tenant Holding Over. If Mortgagor remains in possession of
any of the Mortgaged Property after any foreclosure sale by Mortgagee, at Mortgagee’s election
Mortgagor shall be deemed a tenant holding over and shall forthwith surrender possession to the
purchaser or purchasers at such sale or be summarily dispossessed or evicted according to
provisions of law applicable to tenants holding over.

     SECTION 2.10. Waiver of Appraisement, Valuation, Stay, Extension and Redemption Laws.
Mortgagor waives, to the extent not prohibited by law, (i) the benefit of all laws now existing or
that hereafter may be enacted (x) providing for any appraisement or

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valuation of any portion of the Mortgaged Property and/or (y) in any way extending the time
for the enforcement or the collection of amounts due under any of the Obligations or creating or
extending a period of redemption from any sale made in collecting said debt or any other amounts
due Mortgagee, (ii) any right to at any time insist upon, plead, claim or take the benefit or
advantage of any law now or hereafter in force providing for any homestead exemption, stay, statute
of limitations, extension or redemption, or sale of the Mortgaged Property as separate tracts,
units or estates or as a single parcel in the event of foreclosure or notice of deficiency, and
(iii) all rights of redemption, valuation, appraisement, stay of execution, notice of election to
mature or declare due the whole of or each of the Obligations and marshaling in the event of
foreclosure of this Mortgage.

     SECTION 2.11. Discontinuance of Proceedings. In case Mortgagee shall proceed to
enforce any right, power or remedy under this Mortgage by foreclosure, entry or otherwise, and such
proceedings shall be discontinued or abandoned for any reason, or shall be determined adversely to
Mortgagee, then and in every such case Mortgagor and Mortgagee shall be restored to their former
positions and rights hereunder, and all rights, powers and remedies of Mortgagee shall continue as
if no such proceeding had been taken.

     SECTION 2.12. Suits To Protect the Mortgaged Property. Mortgagee shall have power (a)
to institute and maintain suits and proceedings to prevent any impairment of the Mortgaged Property
by any acts that may be unlawful or in violation of this Mortgage, (b) to preserve or protect its
interest in the Mortgaged Property and in the Rents arising therefrom and (c) to restrain the
enforcement of or compliance with any legislation or other governmental enactment, rule or order
that may be unconstitutional or otherwise invalid if the enforcement of or compliance with such
enactment, rule or order would impair the security or be prejudicial to the interest of Mortgagee
hereunder.

     SECTION 2.13. Filing Proofs of Claim. In case of any receivership, insolvency,
bankruptcy, reorganization, arrangement, adjustment, composition or other proceedings affecting
Mortgagor, Mortgagee shall, to the extent permitted by law, be entitled to file such proofs of
claim and other documents as may be necessary or advisable in order to have the claims of Mortgagee
allowed in such proceedings for the Obligations secured by this Mortgage at the date of the
institution of such proceedings and for any interest accrued, late charges and additional interest
or other amounts due or that may become due and payable hereunder after such date.

     SECTION 2.14. Possession by Mortgagee. Notwithstanding the appointment of any
receiver, liquidator or trustee of Mortgagor, any of its property or the Mortgaged Property,
Mortgagee shall be entitled, to the extent not prohibited by law, to remain in possession and
control of all parts of the Mortgaged Property now or hereafter granted under this Mortgage to
Mortgagee in accordance with the terms hereof and applicable law.

     SECTION 2.15. Waiver. (a) No delay or failure by Mortgagee to exercise any right,
power or remedy accruing upon any breach or Event of Default shall exhaust or impair any such
right, power or remedy or be construed to be a waiver of any such breach or Event of Default or
acquiescence therein; and every right, power and remedy given by this Mortgage to Mortgagee may be
exercised from time to time and as often as may be deemed expedient

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by Mortgagee. No consent or waiver by Mortgagee to or of any breach or Event of Default by
Mortgagor in the performance of the Obligations shall be deemed or construed to be a consent or
waiver to or of any other breach or Event of Default in the performance of the same or of any other
Obligations by Mortgagor hereunder. No failure on the part of Mortgagee to complain of any act or
failure to act or to declare an Event of Default, irrespective of how long such failure continues,
shall constitute a waiver by Mortgagee of its rights hereunder or impair any rights, powers or
remedies consequent on any future Event of Default by Mortgagor.

     (b) Even if Mortgagee (i) grants some forbearance or an extension of time for the payment of
any sums secured hereby, (ii) takes other or additional security for the payment of any sums
secured hereby, (iii) waives or does not exercise some right granted herein or under the Loan
Documents, (iv) releases a part of the Mortgaged Property from this Mortgage, (v) agrees to change
some of the terms, covenants, conditions or agreements of any of the Loan Documents, (vi) consents
to the filing of a map, plat or replat affecting the Premises, (vii) consents to the granting of an
easement or other right affecting the Premises or (viii) makes or consents to an agreement
subordinating Mortgagee’s lien on the Mortgaged Property hereunder; no such act or omission shall
preclude Mortgagee from exercising any other right, power or privilege herein granted or intended
to be granted in the event of any breach or Event of Default then made or of any subsequent
default; nor, except as otherwise expressly provided in an instrument executed by Mortgagee, shall
this Mortgage be altered thereby. In the event of the sale or transfer by operation of law or
otherwise of all or part of the Mortgaged Property, Mortgagee is hereby authorized and empowered to
deal with any vendee or transferee with reference to the Mortgaged Property secured hereby, or with
reference to any of the terms, covenants, conditions or agreements hereof, as fully and to the same
extent as it might deal with the original parties hereto and without in any way releasing or
discharging any liabilities, obligations or undertakings.

     SECTION 2.16. Waiver of Trial by Jury. To the fullest extent permitted by applicable
law, Mortgagor and Mortgagee each hereby irrevocably and unconditionally waive trial by jury in any
action, claim, suit or proceeding relating to this Mortgage and for any counterclaim brought
therein. Mortgagor hereby waives all rights to interpose any counterclaim in any suit brought by
Mortgagee hereunder and all rights to have any such suit consolidated with any separate suit,
action or proceeding.

     SECTION 2.17. Remedies Cumulative. No right, power or remedy conferred upon or
reserved to Mortgagee by this Mortgage is intended to be exclusive of any other right, power or
remedy, and each and every such right, power and remedy shall be cumulative and concurrent and in
addition to any other right, power and remedy given hereunder or now or hereafter existing at law
or in equity or by statute.

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ARTICLE III

Miscellaneous

     SECTION 3.01. Partial Invalidity. In the event any one or more of the provisions
contained in this Mortgage shall for any reason be held to be invalid, illegal or unenforceable in
any respect, such validity, illegality or unenforceability shall, at the option of Mortgagee, not
affect any other provision of this Mortgage, and this Mortgage shall be construed as if such
invalid, illegal or unenforceable provision had never been contained herein or therein.

     SECTION 3.02. Notices. All notices and communications hereunder shall be in writing
and given to Mortgagor in accordance with the terms of the Credit Agreement at the address set
forth on the first page of this Mortgage and to the Mortgagee as provided in the Credit Agreement.

     SECTION 3.03. Successors and Assigns. All of the grants, covenants, terms, provisions
and conditions herein shall run with the Premises and the Improvements and shall apply to, bind and
inure to, the benefit of the permitted successors and assigns of Mortgagor and the successors and
assigns of Mortgagee.

     SECTION 3.04. Satisfaction and Cancelation. (a) The conveyance to Mortgagee of the
Mortgaged Property as security created and consummated by this Mortgage shall be null and void when
(i) the termination of the Aggregate Commitments and payment in full of all Obligations (other than
(A) contingent indemnification obligations and (B) obligations and liabilities under Secured Cash
Management Agreements and Secured Hedge Agreements as to which arrangements satisfactory to the
applicable Cash Management Bank or Hedge Bank shall have been made) and (ii) the expiration or
termination of all Letters of Credit (other than Letters of Credit as to which other arrangements
satisfactory to the Collateral Agent and the applicable L/C Issuer shall have been made).

     (b) Upon any sale, transfer or other disposition of any Mortgaged Property permitted by, and
in accordance with, the terms of the Loan Documents, or upon the effectiveness of any consent to
the release of the security interest granted hereby in any Mortgagd Property pursuant to Section
9.10 of the Credit Agreement, or upon the release of Mortgagor from its obligations under the U.S.
Guaranty, if any, in accordance with the terms of the Loan Documents, the Mortgagee will, at
Mortgagor’s expense, execute and deliver to Mortgagor such documents as Mortgagor shall reasonably
request to evidence the release of such Mortgaged Property from the Lien and security interest
granted hereby; provided, however, that (i) at the time of such request and such release no Default
shall have occurred and be continuing and (ii) Mortgagor shall have delivered to the Collateral
Agent, at least ten Business Days prior to the date of the proposed release, a written request for
release describing the Mortgaged Property and the terms of the sale, transfer or other disposition
in reasonable detail, including, without limitation, the price thereof and any expenses in
connection therewith, together with a form of release for execution by the Mortgagee and a
certificate of Mortgagor to the effect that the transaction is in compliance with the Loan
Documents and as to such other matters as the Mortgagee may request and (iii) the proceeds of any
such sale, lease, transfer or other disposition required to be applied, or any payment to

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be made in connection therewith, in accordance with Section 2.05 of the Credit Agreement
shall, to the extent so required, be paid or made to, or in accordance with the instructions of,
the Mortgagee when and as required under Section 2.05 of the Credit Agreement.

     (c) In connection with any termination or release pursuant to paragraph (a) or (b) above, the
Mortgagee shall promptly execute and deliver to Mortgagor, at Mortgagor’s expense, all such
documents that Mortgagor shall reasonably request to evidence such termination or release, or at
Mortgagor’s reasonable request, to implement an assignment of such Mortgage. Any execution and
delivery of documents pursuant to this Section 3.04 shall be without recourse to or representation
or warranty by the Mortgagee or any Secured Party. Without limiting the provisions of Section 3.05
of the U.S. Guaranty, the Borrowers shall reimburse the Mortgagee upon demand for all costs and out
of pocket expenses, including the fees, charges and expenses of counsel, incurred by it in
connection with any action contemplated by this Section 3.04.

     SECTION 3.05 Definitions. As used in this Mortgage, the singular shall include the
plural as the context requires and the following words and phrases shall have the following
meanings: (a) “including” shall mean “including but not limited to”; (b) “provisions” shall mean
“provisions, terms, covenants and/or conditions”; (c) “lien” shall mean “lien, charge, encumbrance,
security interest, mortgage or deed of trust”; (d) “obligation” shall mean “obligation, duty,
covenant and/or condition”; and (e) “any of the Mortgaged Property” shall mean “the Mortgaged
Property or any part thereof or interest therein”. Any act that Mortgagee is permitted to perform
hereunder may be performed at any time and from time to time by Mortgagee or any person or entity
designated by Mortgagee. Any act that is prohibited to Mortgagor hereunder is also prohibited to
all lessees of any of the Mortgaged Property. Each appointment of Mortgagee as attorney-in-fact
for Mortgagor under the Mortgage is irrevocable, with power of substitution and coupled with an
interest. Subject to the applicable provisions hereof, Mortgagee has the right to refuse to grant
its consent, approval or acceptance or to indicate its satisfaction, in its sole discretion,
whenever such consent, approval, acceptance or satisfaction is required hereunder.

     SECTION 3.06. Multisite Real Estate Transaction. Mortgagor acknowledges that this
Mortgage is one of a number of Other Mortgages and Security Documents that secure the Obligations.
Mortgagor agrees that the lien of this Mortgage shall be absolute and unconditional and shall not
in any manner be affected or impaired by any acts or omissions whatsoever of Mortgagee, and without
limiting the generality of the foregoing, the lien hereof shall not be impaired by any acceptance
by the Mortgagee of any security for or guarantees of any of the Obligations hereby secured, or by
any failure, neglect or omission on the part of Mortgagee to realize upon or protect any Obligation
or indebtedness hereby secured or any collateral security therefor including the Other Mortgages
and other Security Documents. The lien hereof shall not in any manner be impaired or affected by
any release (except as to the property released), sale, pledge, surrender, compromise, settlement,
renewal, extension, indulgence, alteration, changing, modification or disposition of any of the
Obligations secured or of any of the collateral security therefor, including the Other Mortgages
and other Security Documents or of any guarantee thereof, and Mortgagee may at its discretion
foreclose, exercise any power of sale, or exercise any other remedy available to it under any or
all of the Other Mortgages and other Security Documents without first

20

 

exercising or enforcing any of its rights and remedies hereunder. Such exercise of
Mortgagee’s rights and remedies under any or all of the Other Mortgages and other Security
Documents shall not in any manner impair the indebtedness hereby secured or the lien of this
Mortgage and any exercise of the rights or remedies of Mortgagee hereunder shall not impair the
lien of any of the Other Mortgages and other Security Documents or any of Mortgagee’s rights and
remedies thereunder. Mortgagor specifically consents and agrees that Mortgagee may exercise its
rights and remedies hereunder and under the Other Mortgages and other Security Documents separately
or concurrently and in any order that it may deem appropriate and waives any rights of subrogation.

     SECTION
3.07. No Oral Modification. This Mortgage may not be changed or terminated
orally. Any agreement made by Mortgagor and Mortgagee after the date of this Mortgage relating to
this Mortgage shall be superior to the rights of the holder of any intervening or subordinate
Mortgage, lien or encumbrance.

     SECTION 3.08. Intercreditor Agreement. Reference is made to the Lien Subordination
and Intercreditor Agreement dated as of June 9, 2008, among General Electric Capital Corporation,
as Collateral Agent for the Revolving Facility Secured Parties referred to therein, U.S. Bank
National Association, as Trustee and as Noteholder Collateral Agent, Ply Gem Holdings, Inc., Ply
Gem Industries, Inc. and the subsidiaries of Ply Gem Industries, Inc. named therein (the
“Intercreditor Agreement”). Notwithstanding any other provision contained herein, this Mortgage,
the Liens created hereby and the rights, remedies, duties and obligations provided for herein are
subject in all respects to the provisions of the Intercreditor Agreement and, to the extent
provided therein, the applicable Senior Secured Obligations Security Documents (as defined in the
Intercreditor Agreement). In the event of any conflict or inconsistency between the provisions of
this Mortgage and the Intercreditor Agreement, the provisions of the Intercreditor Agreement shall
control.

ARTICLE IV

Particular Provisions

     This Mortgage is subject to the following provisions relating to the particular laws of the
state wherein the Premises are located:

     SECTION 4.01. Applicable Law; Certain Particular Provisions. This Mortgage shall be
governed by and construed in accordance with the internal law of the state where the Mortgaged
Property is located, except that Mortgagor expressly acknowledges that by their terms, the Credit
Agreement and other Loan Documents (aside from those Other Mortgages to be recorded outside New
York) shall be governed by the internal law of the State of New York, without regard to principles
of conflict of law. Mortgagor and Mortgagee agree to submit to jurisdiction and the laying of
venue for any suit on this Mortgage in the state where the Mortgaged Property is located. The
terms and provisions set forth in Appendix A attached hereto are hereby incorporated by reference
as though fully set forth herein. In the

21

 

event of any conflict between the terms and provisions contained in the body of this Mortgage
and the terms and provisions set forth in Appendix A, the terms and provisions set forth in
Appendix A shall govern and control.

ARTICLE V

[insert in leasehold mortgage:

Subject Lease

     SECTION 5.01. The Subject Lease. (a) The Subject Lease is a valid and subsisting
lease of that portion of the Premises demised thereunder for the term therein set forth, is in full
force and effect in accordance with the terms thereof, and has not been modified except as
expressly set forth herein. No material default exists by Mortgagor, or to Mortgagor’s knowledge,
by the lessor, and to the best knowledge of Mortgagor, no event or act has occurred and no
condition exists which with the passage of time or the giving of notice or both would constitute a
default, under the Subject Lease by Mortgagor, or to Mortgagor’s knowledge, by the lessor.

          (b) Without the prior written consent of Mortgagee, Mortgagor will not modify, amend, or in
any way alter the terms of the Subject Lease if such modification, amendment or alteration would
increase the monetary obligations of the Mortgagor under the Subject Lease in any material respect
or otherwise be adverse in any material respect to the interests of Mortgagee or the value of the
Mortgaged Property. Except to the extent permitted under the Credit Agreement, without the prior
written consent of Mortgagee, Mortgagor will not (i) in any way cancel, release, terminate,
surrender or reduce the term of the Subject Lease, (ii) fail to exercise any option to renew or
extend the term of the Subject Lease, (iii) waive, excuse, condone or in any way release or
discharge the lessor under the Subject Lease of or from the obligations, covenants, conditions and
agreements by said lessor to be done and performed and (iv) consent to the subordination of the
Subject Lease to any mortgage. Any attempt on the part of Mortgagor to do any of the foregoing
without such written consent of Mortgagee shall be null and void and of no effect and shall
constitute a Default hereunder.

          (c) Mortgagor shall at all times promptly and faithfully keep and perform in all material
respects, or cause to be kept and performed in all material respects, all the covenants and
conditions contained in the Subject Lease by the lessee therein to be kept and performed and shall
in all material respects conform to and comply with the terms and conditions of the Subject Lease
and Mortgagor further covenants that it will not do or permit anything to be done, the doing of
which, or refrain from doing anything, the omission of which, will impair the security of this
Mortgage or will be reason for declaring a default under the Subject Lease.

          (d) Mortgagor shall give Mortgagee prompt notice in writing of any default on the part of the
lessor under the Subject Lease or of the receipt by Mortgagor of any notice

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of default from the lessor thereunder by providing to Mortgagee a copy of any such notice
received by Mortgagor from such lessor and this shall be done without regard to the fact that
Mortgagee may be entitled to such notice directly from the lessor. Mortgagor shall promptly notify
Mortgagee of any default under the Subject Lease by lessor or giving of any notice by the lessor to
Mortgagor of such lessor’s intention to end the term thereof. Mortgagor shall furnish to Mortgagee
promptly upon Mortgagee’s request any and all information concerning the performance by Mortgagor
of the covenants of the Subject Lease and shall permit Mortgagee or its representative at all
reasonable times, upon reasonable notice, to make investigation or examination concerning the
performance by Mortgagor of the covenants of the Subject Lease. Mortgagor shall deposit with
Mortgagee an exact copy of any notice, communication, plan, specification or other instrument or
document received or given by Mortgagor in any way relating to or affecting the Subject Lease which
may concern or affect the estate of the lessor or the lessee in or under the Subject Lease or the
property leased thereby.

          (e) Notwithstanding any other provision of this Mortgage, Mortgagee may (but shall not be
obligated to) take any such action Mortgagee deems necessary or desirable to cure, in whole or in
part, any failure of compliance by Mortgagor under the Subject Lease; and upon the receipt by
Mortgagee from Mortgagor or the lessor under the Subject Lease of any written notice of default by
Mortgagor as the lessee thereunder, Mortgagor may rely thereon, and such notice shall constitute
full authority and protection to Mortgagee for any action taken or omitted to be taken in good
faith reliance thereon. All sums, including reasonable attorneys’ fees, so expended by the
Mortgagee to cure or prevent any such default, or expended to sustain the lien of this Mortgage or
its priority, shall be deemed secured by this Mortgage and shall be paid by the Mortgagor on
demand, with interest accruing thereon at the Interest Rate. Mortgagor hereby expressly grants to
Mortgagee (subject to the terms of the Subject Lease), and agrees that Mortgagee shall have, the
absolute and immediate right to enter in and upon the Land and the Improvements or any part thereof
to such extent and as often as Mortgagee, in its discretion, deems necessary or desirable in order
to cure any such default or alleged default by Mortgagor.

          (f) Upon the occurrence and continuance of any Event of Default, all options, election,
consents and approval rights conferred upon Mortgagor as lessee under the Subject Lease, together
with the right of termination, cancelation, modification, change, supplement, alteration or
amendment of the Subject Lease, all of which have been assigned for collateral purposes to
Mortgagee, shall automatically vest exclusively in and be exercisable solely by Mortgagee.

          (g) Mortgagor will give Mortgagee prompt written notice of the commencement of any
arbitration or appraisal proceeding under and pursuant to the provisions of the Subject Lease.
Following the occurrence and during the continuance of an Event of Default, Mortgagee shall have
the right, but not the obligation, to intervene and participate in any such proceeding and
Mortgagor shall confer with Mortgagee to the extent which Mortgagee deems necessary for the
protection of Mortgagee. Mortgagor may compromise any dispute or approval which is the subject of
an arbitration or appraisal proceeding with the prior written consent of Mortgagee which approval
will not be unreasonably withheld or delayed.

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          (h) So long as this Mortgage is in effect, there shall be no merger of the Subject Lease or
any interest therein, or of the leasehold estate created thereby, with the fee estate in the Land
or any portion thereof by reason of the fact that the Subject Lease or such interest therein may be
held directly or indirectly by or for the account of any person who shall hold the lessor’s fee
estate in the Land or any portion thereof or any interest of the lessor under the Subject Lease.
In case the Mortgagor acquires fee title to the Land, this Mortgage shall attach to and cover and
be a lien upon the fee title acquired, and such fee title shall, without further assignment,
mortgage or conveyance, become and be subject to the lien of and covered by this Mortgage.
Mortgagor shall notify Mortgagee of any such acquisition and, on written request by Mortgagee,
shall cause to be executed and recorded all such other and further assurances or other instruments
in writing as may in the reasonable opinion of Mortgagee be necessary or appropriate to effect the
intent and meaning hereof and shall deliver to Mortgagee an endorsement to Mortgagee’s loan title
insurance policy insuring that such fee title or other estate is subject to the lien of this
Mortgage.

          (i) If any action or proceeding shall be instituted to evict Mortgagor or to recover
possession of any leasehold parcel or any part thereof or interest therein or any action or
proceeding otherwise affecting the Subject Lease or this Mortgage shall be instituted, then
Mortgagor will, immediately upon service thereof on or to Mortgagor, deliver to Mortgagee a notice
of motion, order to show cause and of all other provisions, pleadings, and papers, however
designated, served in any such action or proceeding.

          (j) The lien of this Mortgage shall attach to all of Mortgagor’s rights and remedies at any
time arising under or pursuant to Subsection 365(h) of the Bankruptcy Code, 11 U.S.C. 365(h), as
the same may hereafter be amended (the “Bankruptcy Code”), including, without limitation, all of
Mortgagor’s rights to remain in possession of each leasehold parcel.

          (k) Mortgagor hereby unconditionally assigns, transfers and sets over to Mortgagee all of
Mortgagor’s claims and rights to the payment of damages arising from any rejection of the Subject
Lease by the lessor or any other fee owner of any leasehold parcel or any portion thereof under the
Bankruptcy Code. Mortgagee shall have the right to proceed in its own name or in the name of
Mortgagor in respect of any claim, suit, action or proceeding relating to the rejection of the
Subject Lease, including, without limitation, the right to file and prosecute, without joining or
the joinder of Mortgagor, any proofs of claim, complaints, motions, applications, notices and other
documents, in any case with respect to the lessor or any fee owner of all or a portion of any
leasehold parcel under the Bankruptcy Code. This assignment constitutes a present, irrevocable and
unconditional assignment of the foregoing claims, rights and remedies, and shall continue in effect
until all of the Obligations shall have been satisfied and discharged in full. Any amounts
received by Mortgagee as damages arising out of the rejection of the Subject Lease as aforesaid
shall be applied first to all costs and expenses of Mortgagee (including, without limitation,
reasonable attorneys’ fees) incurred in connection with the exercise of any of its rights or
remedies under this paragraph. Mortgagor shall promptly make, execute, acknowledge and deliver, in
form and substance satisfactory to Mortgagee, a UCC financing statement (Form UCC-1) and all such
additional instruments, agreements and other documents, as may at any time hereafter be required by
Mortgagee to effectuate and carry out the assignment pursuant to this paragraph.

24

 

          (l) If pursuant to Subsection 365(h)(2) of the Bankruptcy Code, 11 U.S.C. § 365(h)(2),
Mortgagor shall seek to offset against the rent reserved in the Subject Lease the amount of any
damages caused by the nonperformance by the lessor or any fee owner of any of their respective
obligations under such Subject Lease after the rejection by the lessor or any fee owner of such
Subject Lease under the Bankruptcy Code, then Mortgagor shall, prior to effecting such offset,
notify Mortgagee of its intent to do so, setting forth the amount proposed to be so offset and the
basis therefor. Mortgagee shall have the right to object to all or any part of such offset that,
in the reasonable judgment of Mortgagee, would constitute a breach of such Subject Lease, and in
the event of such objection, Mortgagor shall not effect any offset of the amounts so objected to by
Mortgagee. Neither Mortgagee’s failure to object as aforesaid nor any objection relating to such
offset shall constitute an approval of any such offset by Mortgagee.

          (m) If any action, proceeding, motion or notice shall be commenced or filed in respect of the
lessor or any fee owner of any leasehold parcel, or any portion thereof or interest therein, or the
Subject Lease in connection with any case under the Bankruptcy Code, then Mortgagee shall have the
option, exercisable upon written notice from Mortgagee to Mortgagor, to conduct and control any
such litigation with counsel of Mortgagee’s choice. Mortgagee may proceed in its own name or in
the name of Mortgagor in connection with any such litigation, and Mortgagor agrees to execute any
and all powers, authorizations, consents or other documents required by Mortgagee in connection
therewith. Mortgagor shall, upon demand, pay to Mortgagee all reasonable costs and expenses
(including attorneys’ fees) paid or incurred by Mortgagee in connection with the prosecution or
conduct of any such proceedings. Mortgagor shall not commence any action, suit, proceeding or
case, or file any application or make any motion, in respect of the Subject Lease in any such case
under Bankruptcy Code without the prior written consent of Mortgagee.

          (n) Mortgagor shall, after obtaining knowledge thereof, promptly notify Mortgagee of any
filing by or against the lessor or fee owner of any leasehold parcel of a petition under the
Bankruptcy Code. Mortgagor shall promptly deliver to Mortgagee, following receipt, copies of any
and all notices, summonses, pleadings, applications and other documents received by Mortgagor in
connection with any such petition and any proceedings relating thereto.

          (o) If there shall be filed by or against Mortgagor a petition under the Bankruptcy Code and
Mortgagor, as lessee under a Subject Lease, shall determine to reject such Subject Lease pursuant
to Section 365(a) of the Bankruptcy Code, then Mortgagor shall give Mortgagee not less than twenty
days’ prior notice of the date on which Mortgagor shall apply to the Bankruptcy Court for authority
to reject such Subject Lease. Mortgagee shall have the right, but not the obligation, to serve
upon Mortgagor within such twenty day period a notice stating that Mortgagee demands that Mortgagor
assume and assign such Subject Lease to Mortgagee pursuant to Section 365 of the Bankruptcy Code.
If Mortgagee shall serve upon Mortgagor the notice described in the preceding sentence, Mortgagor
shall not seek to reject such Subject Lease and shall comply with the demand provided for in the
preceding sentence.

25

 

          (p) Effective upon the entry of an order for relief with respect to Mortgagor under the
Bankruptcy Code, Mortgagor hereby assigns and transfers to Mortgagee a non-exclusive right to apply
to the Bankruptcy Court under subsection 365(d)(4) of the Bankruptcy Code for an order extending
the period during which the Subject Lease may be rejected or assumed.]

26

 

          IN WITNESS WHEREOF, this Mortgage has been duly executed and delivered to Mortgagee by
Mortgagor on the date of the acknowledgment attached hereto.

	 	 	 	 	 
	 	[MORTGAGOR], a [•],

 	 
	 	     by:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Attest:

	 	 	 	 	 

	by:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

[Corporate Seal]

27

 

Exhibit A

to Mortgage

Description of the Land

 

 

Exhibit B

to Mortgage

[Description of Subject Lease]

 

 

EXHIBIT I

FORM OF

INTERCOMPANY NOTE

                    ,                      
[•], 200[•]                    

          Each of the parties identified on the signature page(s) hereto (each a “Note Party”) hereby
promises to pay, on demand, to the order of each applicable Obligee (as defined below), in lawful
money of [the United States of America][Canada], at such location in [the United States of
America][Canada] as the applicable Obligee shall from time to time designate, all amounts as may be
owing from time to time by each such Note Party (in such capacity, an “Obligor”) to each other Note
Party (in such capacity, an “Obligee”) in respect of Indebtedness (as such term is defined in the
Credit Agreement dated June 9, 2008 (as amended, restated, extended, supplemented or otherwise
modified in writing from time to time, the “Credit Agreement”) dated as of June 9, 2008 among Ply
Gem Industries, Inc. a Delaware corporation (the “Specified U.S. Borrower”), CWD Windows and Doors,
Inc., (the “Canadian Borrower”), Ply Gem Holdings, Inc., a Delaware corporation, the Subsidiaries
of the Borrower from time to time party thereto, the Lenders parties thereto, Credit Suisse, as
Administrative Agent, U.S. Swing Line Lender and U.S. L/C Issuer, General Electric Capital
Corporation, as Collateral Agent, Credit Suisse, Toronto Branch, as Canadian Swing Line Lender and
Canadian L/C Issuer, and Credit Suisse Securities (USA) LLC, as Sole Lead Arranger and Sole
Bookrunner), together with interest thereon at such rate as may be agreed upon from time to time.
Capitalized terms used herein and not otherwise defined herein have the meanings specified in the
Credit Agreement.

          Each Obligor promises to pay interest on the unpaid principal amount of any Indebtedness
evidenced hereby until paid at such rate per annum as shall be agreed upon from time to time by
each applicable Obligor and Obligee.

          Each Obligee is hereby authorized to record all amounts owing by the Obligors to such Obligee,
all of which shall be evidenced by this Note, and all repayments thereof, in its books and records
in according with its usual practice, such books and records constituting prima facie evidence of
the accuracy of the information contained therein; provided, however, that the failure of
any Obligee to record such information shall not affect any Obligor’s obligations.

          Each Obligor hereby waives diligence, presentment, demand, protest or notice of any kind in
connection with this Note. All payments under this Note shall be made without offset, counterclaim
or deduction of any kind.

          No amendment, modification or waiver of, or consent with respect to, any provision of this
Note shall in any event be effective against any Note Party unless the same shall be in writing and
signed and delivered by such Note Party. This Note shall be construed as a separate agreement with
respect to each Note Party and may be amended, modified, supplemented, waived or released with
respect to any Note Party without the approval of any Note Party and without affecting the
obligations of any Note Party hereunder.

          This Note may be pledged by any of the Note Parties to secure the payment and performance of
obligations of such Note Party to any person or entity (each such person or entity, a “Secured
Party”). Each Note Party hereby acknowledges and agrees that any Secured Party may, pursuant to
such agreement as in effect between any Note Party and any Secured Party from time to time,
exercise all rights provided in such agreements with respect to this Note.

 

 

EXHIBIT I

          THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

	 	 	 	 	 
	 	 	 
	 	By  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT J-1

June 9, 2008

To the Lenders party to the

  Credit Agreement referred to below,

  Credit Suisse, as Agent and

  General Electric Capital Corporation, as Collateral Agent

Ladies and Gentlemen:

          We have acted as special counsel to Ply Gem Industries, Inc., a Delaware corporation (the
“U.S. Borrower”), Ply Gem Holdings, Inc., a Delaware corporation (the “Parent
Guarantor”), CWD Windows and Doors, Inc., a Canadian corporation (the “Canadian
Borrower”; and together with the U.S. Borrower, the “Borrowers”) and each subsidiary of
the U.S. Borrower the name and jurisdiction of organization of which are set forth on
Schedule 1 to this letter (the “Subsidiaries” and, together with the U.S. Borrower,
the Parent Guarantor, and the Canadian Borrower, the “Principal Parties”), in connection
with the Credit Agreement (the “Credit Agreement”), dated as of June 9, 2008, among the
Borrowers, the financial institutions listed on the signature pages of the Credit Agreement (the
“Lenders”), Credit Suisse, as Administrative Agent (the “Agent”), and General
Electric Capital Corporation, as collateral agent (the “Collateral Agent”). This opinion
is being furnished to you at the request of the Borrowers as provided by Section 4.01(a)(xi) of the
Credit Agreement. Capitalized terms used and not otherwise defined have the respective meanings
given those terms in the Credit Agreement.
In connection with this opinion, we have examined originals, or copies certified or otherwise
identified to our satisfaction, of the following documents, each dated as of the date of this
letter except as otherwise noted (collectively, the “Documents”):

	 	1.	 	the Credit Agreement;

 

 

	 	2.	 	the Notes issued on the date hereof;
	 
	 	3.	 	the U.S. Guaranty;
	 
	 	4.	 	the U.S. Security Agreement (the “Security
Agreement”);
	 
	 	5.	 	the U.S. Intellectual Property Security Agreement
(“IP Security Agreement”); and
	 
	 	6.	 	the Lien Subordination and Intercreditor Agreement

          In addition, we have examined: (i) those corporate or limited liability company records of
the Principal Parties organized under the laws of Delaware (collectively, the “Delaware
Parties”) that we have considered appropriate, including copies of the certificate of
incorporation and by-laws or certificate of formation and limited liability company agreement of
each Delaware Party certified by it as in effect on the date of this letter (collectively, the
“Charter Documents”) and copies of resolutions of the board of directors or members of each
Delaware Party certified by it; and (ii) those other certificates, agreements and documents that we
deemed relevant and necessary as a basis for our opinion. We have also relied upon the factual
matters contained in the representations and warranties of the Principal Parties made in the
Documents and upon certificates of public officials and the Principal Parties.

In our examination of the documents referred to above, we have assumed, without independent
investigation, the genuineness of all signatures, the legal capacity of all individuals who have
executed any of the documents reviewed by us, the authenticity of all documents submitted to us as
originals, the conformity to the originals of all documents submitted to us as certified,
photostatic, reproduced or conformed copies of valid existing agreements or other documents, the
authenticity of the latter documents

2

 

and that the statements regarding matters of fact in the certificates, records, agreements,
instruments and documents that we have examined are accurate and complete. We have also assumed,
without independent investigation, the enforceability of the Documents against each party other
than the Principal Parties.

          In addition, in the case of each Principal Party which is not a Delaware Party, we have
assumed, without independent investigation, that (i) the Principal Party is validly existing and in
good standing under the laws of its jurisdiction of organization, (ii) the Principal Party has all
necessary corporate or partnership power and authority to execute, deliver and perform its
obligations under each Document to which it is a party, (iii) the execution, delivery and
performance of each Document have been duly authorized by all necessary corporate or partnership
action and do not violate its charter or other organizational documents or the laws of its
jurisdiction of organization and (iv) each Document has been duly executed and delivered by it
under the laws of its jurisdiction of organization.

          Whenever we indicate that our opinion is based upon our knowledge or words of similar import,
our opinion is based solely on the actual knowledge of the attorneys in this firm who are
representing the U.S. Borrower in connection with the Credit Agreement and without any independent
verification or investigation.

          Based upon the foregoing, and subject to the assumptions, exceptions and qualifications stated
below, we are of the opinion that:

          1. Each of the Delaware Parties which is a Delaware corporation is validly existing and in
good standing under the laws of the State of Delaware. Each of

3

 

the Delaware Parties which is a limited liability company is duly formed, validly existing and
in good standing under the laws of the State of Delaware.

          2. Each Delaware Party has all necessary corporate or limited liability company power and
authority to execute, deliver and perform its obligations under each Document to which it is a
party. The execution, delivery and performance by each Delaware Party of each Document to which it
is a party have been duly authorized by all necessary corporate or limited liability company action
on the part of the Delaware Party and do not violate its Charter Documents.

          3. Each Document has been duly executed and delivered by each Principal Party which is a party
to it. Each Document constitutes the legal, valid and binding obligation of each Principal Party
which is a party to it, enforceable against that Principal Party in accordance with its terms.

          4. The execution and delivery by each Principal Party of each of the Documents to which it is
a party and the performance by the Principal Party of its obligations under the Documents do not
(i) violate any Covered Law (as defined below) (including Regulations U or X of the Board of
Governors of the Federal Reserve System of the United States), (ii) violate any order, writ,
injunction or decree of which we have knowledge of any court or governmental authority or agency
binding upon the Principal Party or to which the Principal Party is subject, (iii) breach or result
in a default under any agreement or instrument listed on Schedule 2 to which the Principal
Party is a party or by which the Principal Party is bound, or (iv) result in the creation or
imposition of any Lien upon any of the assets of the Principal Party under the terms of any such
agreement

4

 

or instrument (except for Liens in favor of the Collateral Agent for the benefit of the
Secured Parties contemplated by the Documents).

          5. Except for filings which are necessary to perfect the security interests granted under the
Documents and any other filings, authorizations or approvals as are specifically provided for in
the Documents, no authorizations or approvals of, and no filings with, any governmental or
regulatory authority or agency are necessary under any Covered Law for the execution, delivery or
performance by any Principal Party of the Documents to which it is a party.

          6. None of the Principal Parties is required to be registered as an “investment company”
within the meaning of the Investment Company Act of 1940, as amended.

          7. After giving effect to the Loans on the date of this letter, and assuming that US Bank
Trust National Association, as bailee for the Collateral Agent, has, at the date of this letter,
possession of the certificates representing the capital stock of the U.S. Borrower and certain of
its Subsidiaries described on Schedule 3 to this letter (the “Pledged Stock”) in
the State of New York, together with related stock powers which have been duly executed in blank by
the applicable Borrower or Guarantor that own the Pledged Stock, and maintains continuous
possession of the Pledged Stock and stock powers in the State of New York, the Collateral Agent has
a valid and perfected security interest, for the benefit of the Secured Parties, to secure the
Obligations (as defined in the Security Agreement), in all right, title and interest of the U.S.
Borrower and the applicable Guarantors in and to the Pledged Stock (the “Pledged Stock Security
Interest”).

5

 

          8. After giving effect to the making of the Loans on the date of this letter, the Security
Agreement creates a valid security interest in favor of the Collateral Agent, for the benefit of
the Lenders and the Collateral Agent, to secure the Obligations (as defined in the Security
Agreement), in all right, title and interest of the Borrowers, the Parent Guarantor and the
Subsidiaries (the “Debtors”) in and to the Collateral (as defined in the Security
Agreement), to the extent that Article 9 of the Uniform Commercial Code of the State of New York
(the “NY-UCC”) is applicable (the “Security Interest”). For each Debtor that is a
corporation or limited liability company organized under the laws of the State of Delaware (the
“DE Debtors”), the UCC-1 financing statements attached hereto as Schedule 4 to this
letter (the “Principal Financing Statements”) are in appropriate form for filing. For the
DE Debtors, the Office of the Secretary of State of the State of Delaware is the office in the
State of Delaware in which filings are required to perfect the Security Interest to the extent that
it can be perfected by filing under the Uniform Commercial Code of the State of Delaware (the
“DE-UCC”). Assuming the Principal Financing Statements have been duly transmitted for
filing to the Office of the Secretary of State of the State of Delaware, with the appropriate
filing fees tendered, or duly accepted for filing by that Office, then to the extent that a
security interest in the Collateral may be perfected by filing under the DE-UCC, those filings have
resulted in the perfection of the Security Interest.

          9. After giving effect to the making of the Loans on the date of this letter, the Security
Agreement creates a valid security interest in favor of the Collateral Agent, for the benefit of
the Secured Parties, to secure the Obligations (as defined in the Credit Agreement), in all right,
title and interest of the Debtors in and to the registered

6

 

U.S. trademarks, the registration numbers of which are listed in Schedule B to the Security
Agreement (the “Trademark Collateral”), the U.S. patents, the patent numbers of which are
listed in Schedule A to the Security Agreement (the “Patent Collateral”), and the
registered U.S. copyrights, the registration numbers of which are listed on Schedule C to the
Security Agreement (the “Copyright Collateral” and, together with the Trademark Collateral
and the Patent Collateral, the “IP Collateral”), to the extent that Article 9 of the NY-UCC
is applicable, assuming that each trademark, patent and copyright that comprises the IP Collateral
is valid and is owned by the relevant Debtor (the “IP Security Interest”).

          10. For each Debtor that is a corporation, limited liability company or limited partnership
organized in the United States, assuming that (i) the Security Agreement creates a valid security
interest in favor of the Collateral Agent, for the benefit of the Secured Parties, to secure the
Obligations (as defined in the Security Agreement) in the IP Collateral (as hereinafter defined),
and assuming that the IP Security Interest is a perfected security interest under the laws of the
States in which each Debtor is organized, to the extent that such law governs the perfection of a
security interest in the IP Collateral, (ii) in the case of the Trademark Collateral, the
registration of each trademark has been duly effected and maintained in the United States Patent
and Trademark Office (the “PTO”) under Title 15 of the United States Code, (iii) in the
case of the Patent Collateral, the term of each patent has been duly maintained by timely payment
to the PTO of applicable maintenance fees under Title 35 of the United States Code, (iv) in the
case of the Copyright Collateral, the registration of each copyright has been duly effected and
maintained in the copyright office of the United States Library of

7

 

Congress (the “Copyright Office”) under Title 17 of the United States Code, and (v)
the IP Security Agreement is duly acknowledged by the Debtors and properly filed with and recorded
by the PTO (or the Copyright Office, in the case of the Copyright Collateral), and payment is made
of the required filing fees and charges, within three months (or one month in the case of the
Copyright Collateral) after the date of their execution, the IP Security Interest will be a
perfected security interest.

          This opinion is subject to the following assumptions, exceptions and qualifications:

          (a) The enforceability of the Documents may be: (i) subject to bankruptcy, insolvency,
reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’
rights generally; (ii) subject to general principles of equity (regardless of whether
enforceability is considered in a proceeding at law or in equity); and (iii) subject to the
qualification that certain remedial provisions of the Security Agreement, are or may be
unenforceable in whole or in part under the laws of the State of New York, but the inclusion of
such provisions does not make the remedies afforded by the Security Agreement inadequate for the
practical realization of the rights and benefits purported to be provided by the Security Agreement
except for the economic consequences resulting from any delay imposed by, or any procedure required
by, applicable New York laws, rules, regulations and court decisions and by constitutional
requirements in and of the State of New York.

          (b) We express no opinion as to: (i) the enforceability of the Guaranty purporting to
preserve and maintain the liability of any party to the Guaranty despite the fact that the
guarantied debt is unenforceable due to illegality; (ii) the enforceability of

8

 

any provisions contained in the Documents that purport to establish (or may be construed to
establish) evidentiary standards; (iii) the enforceability of any provisions contained in the
Security Agreement or the Guaranty that constitute waivers which are prohibited under Section 9-602
of the NY-UCC; (iv) the enforceability of forum selection clauses in the federal courts; or (v)
Section 10.19 of the Credit Agreement to the extent not consistent with Section 27(b) of the New
York Judiciary Law.

          (c) With respect to paragraphs 7 through 10, we express no opinion as to: (i) any Principal
Party’s right, title or interest in or to any Collateral; (ii) except as specifically set forth in
paragraph 10, the perfection and effect of perfection or non-perfection of a security interest in
the Collateral to the extent subject to any laws other than the laws of the State of New York or
the DE-UCC; (iii) the perfection of security interests in fixtures, as-extracted collateral, timber
to be cut and ownership interests in real property cooperative organizations; (iv) the creation,
validity, perfection (except as specifically set forth in paragraph 10), priority or enforceability
of any security interest sought to be created in any items of property to the extent that a
security interest in them is excluded from the coverage of Article 9 of the NY-UCC or the DE-UCC;
or (v) the validity, priority or enforceability of the trademarks, patents and copyrights that
comprise the IP Collateral. In addition, (x) except as specifically set forth in paragraphs 7, 8
and 10, above, we express no opinion as to the perfection of any security interest and (y) we
express no opinion as to the priority of any security interest.

          (d) We wish to point out that in the case of proceeds (as defined in Article 9 of the DE-UCC),
the continuation of perfection of any security interest in them is limited to the extent set forth
in Section 9-315 of the DE-UCC.

9

 

          (e) We call to your attention the fact that (i) Article 9 of the DE-UCC requires the filing of
continuation statements within the period of six months prior to the expiration of each five year
period from the date of the original filing of financing statements in order to maintain the
effectiveness of the filings referred to in this opinion, and (ii) additional filings may be
necessary if any Debtor changes its name, identity or corporate structure or the jurisdiction in
which it is organized.

          This opinion is limited to the laws of the State of New York, the General Corporation Law of
the State of Delaware, the Limited Liability Company Act of the State of Delaware, the Uniform
Commercial Code of the State of Delaware and the federal laws of the United States of America that,
in each case, in our experience, are normally applicable to credit transactions of the type
contemplated by the Credit Agreement (collectively, the “Covered Laws”). This opinion is
rendered only with respect to the laws, and the rules, regulations and orders under those laws,
that are currently in effect. Please be advised that no member of this firm is admitted to
practice in the State of Delaware.

          This opinion is furnished by us solely for your benefit in connection with the transactions
referred to in the Credit Agreement and may not be circulated to, or relied upon by, any other
Person, except that it may be circulated to any prospective Lender in accordance with the Credit
Agreement and may be relied upon by any person who, in the future, becomes a Lender.

	 	 	 

	 

	 	Very truly yours,
	 
	 	 
	 

	 	PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP

10

 

SCHEDULE 1

SUBSIDIARIES WHICH ARE

PRINCIPAL PARTIES

	 	 	 	 	 
	 	 	 	 	Jurisdiction of
	Name of Subsidiary	 	Type of Entity	 	Organization_
	Great Lakes Window, Inc.

	 	Corporation
	 	Ohio
	Kroy Building Products, Inc.

	 	Corporation
	 	Delaware
	Napco, Inc.

	 	Corporation
	 	Delaware
	Variform, Inc.

	 	Corporation
	 	Missouri
	MWM Holding, Inc.

	 	Corporation
	 	Delaware
	MW Manufacturers Inc.

	 	Corporation
	 	Delaware
	AWC Holding Company

	 	Corporation
	 	Delaware
	Alenco Holding Corporation

	 	Corporation
	 	Delaware
	AWC Arizona, Inc.

	 	Corporation
	 	Delaware
	Alenco Interests, L.L.C.

	 	Limited Liability Company
	 	Delaware
	Alenco Extrusion Management, L.L.C.

	 	Limited Liability Company
	 	Delaware
	Alenco Building Products Management, L.L.C.

	 	Limited Liability Company
	 	Delaware
	Alenco Trans, Inc.

	 	Corporation
	 	Delaware
	Glazing Industries Management, L.L.C.

	 	Limited Liability Company
	 	Delaware
	New Alenco Extrusion, Ltd.

	 	Limited Partnership
	 	Texas
	New Alenco Window, Ltd.

	 	Limited Partnership
	 	Texas
	New Glazing Industries, Ltd.

	 	Limited Partnership
	 	Texas
	Alenco Extrusion GA, L.L.C.

	 	Limited Liability Company
	 	Delaware
	Aluminum Scrap Recycle, L.L.C.

	 	Limited Liability Company
	 	Delaware
	Alenco Window GA, L.L.C.

	 	Limited Liability Company
	 	Delaware
	Alcoa Home Exteriors, Inc.

	 	Corporation
	 	Ohio
	Ply Gem Pacific Windows Corporation

	 	Corporation
	 	Delaware

11

 

SCHEDULE 2

AGREEMENTS AND INSTRUMENTS

	1.	 	Indenture, dated as of June 9, 2008, among US Bank Trust National Association, as trustee,
the U.S. Borrower, as issuer, and the Principal Parties which are parties thereto.

	2.	 	Indenture, dated as of February 12, 2004 as supplemented on August 27, 2004, among U.S. Bank
National Association, as trustee, the U.S. Borrower, as issuer, and the Principal Parties
which are parties thereto.

12

 

SCHEDULE 3

PLEDGED STOCK

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Certificate	 	No. Shares/
	Issuer	 	Record Owner	 	No.	 	Interest
	Ply Gem Industries, Inc.

	 	Ply Gem Holdings, Inc.
	 	 3
	 	100 shares of

Common Stock

	Great Lakes Window, Inc.

	 	Ply Gem Industries, Inc.
	 	 2
	 	 	100	 
	Alcoa Home Exteriors, Inc.

	 	Ply Gem Industries, Inc.
	 	 49
	 	275 shares of

Common Stock

	Kroy Building Products, Inc.

	 	Ply Gem Industries, Inc.
	 	 001
	 	 	100	 
	Napco, Inc.

	 	Ply Gem Industries, Inc.
	 	 2
	 	 	20	 
	Variform, Inc.

	 	Ply Gem Industries, Inc.
	 	 24
	 	2,732 shares of

Common Stock

	CWD Windows and Doors, Inc.

	 	Ply Gem Industries, Inc.
	 	 C-2
	 	 	130	 
	MWM Holding, Inc.

	 	Ply Gem Industries, Inc.
	 	 C-1
	 	10,000 shares of

Common Stock

	AWC Holding Company

	 	Ply Gem Industries, Inc.
	 	 A-35
	 	16,286.81 shares 

of Class A 

Stock Common

	Ply Gem Pacific Windows 

Corporation

	 	Ply Gem Industries, Inc.
	 	 C-2
	 	 	100	 
	AWC Arizona, Inc

	 	Alenco Holding Corporation
	 	 1
	 	 	100	 
	Alenco Trans, Inc.

	 	Alenco Holding Corporation
	 	 3
	 	 	1000	 
	Alenco Holding Corporation

	 	AWC Holding Company
	 	 312
	 	 	100	 
	MW Manufacturers Inc.

	 	MWM Holding, Inc.
	 	 1
	 	 	1,000	 

13

 

SCHEDULE 4

PRINCIPAL FINANCING STATEMENTS

[See attached.]

14

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A.NAME & PHONE OF
CONTACT AT FILER [optional] UCC Filings800-828-0938 B.SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207 THE ABOVE SPACE IS FOR
FILING OFFICE USE ONLY 1.DEBTOR’S EXACT FULL LEGAL NAME-insertonl/anfidebtornamo(1aor 1b)-do
notabbreviateorcombinenames 1a. ORGANIZATION’S NAME PLY GEM HOLDINGS, INC.___OR 1 b. INDIVIDUAL’S
LASTNAMEl FIRST NAMEI MIDDLE NAMEI SUFFIX 1 c. MAILING ADDRESSCITYSTATE I POSTAL CODECOUNTRY 500
PARK AVENUE, FLOOR 8NEW YORKNY 10022 Id. SEE INSTRUCTIONSIADD1 INFO RE he. TYPEOF ORGANIZATION1f.
JURISDICTION OF ORGANIZATION1 g. ORGANIZATIONAL ID #. if any 1 gSST1“11 CorporationDelawareQ^
2.ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME ¦ insert only ene debtor nama (2a of 2b) — do not
abbreviate or combine names 2a. ORGANIZATION’S NAME 0R 2b. INDIVIDUAL’S LAST NAMEI FIRST
NAMEIMIDDLE NAME| SUFFIX 2c. MAILING ADDRESSCÏTYSTATE I POSTAL CODECOUNTRY 2d SEE INSTRUCTIONSI
ADD’L INFO RE 12e. TYPE OF ORGANIZATION2f. JURISDICTION OF ORGANIZATION2g. ORGANIZATIONAL ID #. it
any ORGANIZATION | DEBTOR|[ NONE 3.SECURED PARTYS NAME (or NAME oHOTALASSIGNEEol ASSIGNOR
S<P).insertonlyorje, secured party name (3a or 3b) 3a. ORGANIZATION’S NAME GENERAL ELECTRIC
CAPITAL CORPORATION, AS COLLATERAL AGENT OP,^ 3B. INDIVIDUAL’S LAST NAMEFIRST NAMEMIDDLE NAMESUFFIX
3C. M AILING ADDRESS CJTYSTATE IPOSTAL CODECOUNTRY ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W.
rUinATCiIFf.(\(.6\ MONROE ST., 16TH FLOORUlUAUU IL,OUDOI 4.This FINANCING STATEMENT covers the
following collateral: ALL ASSETS 5.ALTERNATIVE DESIGNATION inapplicable]:
LESSEE/LESSORICONSIGNEBCONSIGNOR | BAILEE/BAILOR |~ SELLER/BUYER |3 AG. LIEN HNQN-UCCFILING 6.f-]
T” ^NANCING STVTEMENT it to be dim ïro77ëcörö^7ö77êcö7deö7irnhe7SEïr""^T7^nêïn I I ESTATE RECORDS
Attach AddendumM anolicabtel I fADDITlnNAI FEE1l/ODtionallI JAII Oebtors | |Debtor1| |Debtor2 8.
OPTIONAL FILER REFERENCE DATAF#225955 2164-440 — DE — Secretary of StateA#338547 FILING OFFICE COPY
— UCC FINANCING STATEMENT (FORM UCC1) (REV. 05/22/02)

 

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A.NAME & PHONE OF CONTACT
AT FILER [optional] UCC Filings800-828-0938 B.SEND ACKNOWLEDGMENT TO: (Name and Address)
[National Corporate ResearchI 41 State Street, Suite 600 Albany, NY 12207 LJ
^___^^___lil___^_^^^_^^^^^^^___THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1.DEBTOR’SEXACTFULLLEGALNAME’insertonlyoilfidebtomame(1aor1b)-donotabbreviateorcombinenames 1a.
ORGANIZATION’S NAME PLY GEM INDUSTRIES, INC. OR 1b. INDIVIDUAL’S LAST NAMEI FIRST NAMEI MIDDLE
NAMEI SUFFIX 1 c. MAILING ADDRESSCITYSTATE I POSTAL CODECOUNTRY 5020 WESTON PARKWAY, SUITE
400CARYNC |27513 1d. SEE INSTRUCTIONSI ADD’L INFO RE 11 e. TYPE OF ORGANIZATION11. JURISDICTION
OF ORGANIZATION1g. ORGANIZATIONAL ID #, it any IggiSr10” | Corporation^elaware,Q^ 2.ADDITIONAL
DEBTOR’S EXACT FULL LEGAL NAME — insert only ans debtor name (2a Of 2b) — do not abbreviate or
combine names 2a. ORGANIZATION’S NAME f«3. 2b. INDIVIDUAL’S LAST NAMEI FIRST NAMEMIDDLE
NAMESUFFIX 2c. MAILING ADDRESSCÎTYSTATE I POSTAL CODECOUNTRY 2d. SEE INSTRUCTIONSI ADD’L INFO RE
12». TYPE OF ORGANIZATION2f. JURISDICTION OF ORGANIZATION2g. ORGANIZATIONAL ID #. if any
ORGANIZATION I DEBTOR|||flNONE 3.SECURED PARTYS NAME
(orNAMEofTOTALASSIGNEEolASSlONORSrP)-insertonly rag secured party narn»(3a or 3b) 3a.
ORGANIZATIONS NAME GENERAL ELECTRIC CAPITAL CORPORATION, AS COLLATERAL AGENT Qp ,,___3b.
INDIVIDUAL’S LAST NAMEFIRST NAMEIMIDDLENAMESUFFIX 3c. MAILING ADDRESSCTTYSTATE IPOSTAL
CODECOUNTRY ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W. ruIrArnIT/cn^i MONROE ST.. 16TH
FLOORIHHAUUILOUOOl 4.This FINANCING STATEMENT covers the following collateral: ALL ASSETS
5.ALTERNATIVE DESIGNATION \jtapplicable)! ILESSEE/LESSOR [~| CONSIGNEE/CONSIGNOR | IBAILEBBAILOR
M SELLER/BUYER |~1AG. LIEN [___NON-UCC FILING “ërn’î’ls FINANCING STATEMENT is to be filed [tor
record] (or rerordedîrnttiëTSËÂL I 7 Check to REQUEST SEARCH REPORT(S) on Oebtor(s) r~|.
TTTM“n^^^TT L L ,, I IFSTATFRFCOROS Atfnh Addendum[if applicable! I “ADDITIONAL FEE!fontionanI I
All Debtors [| Debtor 1 | |Debtor 2 8. OPTIONAL FILER REFERENCE DATAF#225956 2164-440 — DE -
Secretary of StateA#338548 FILING OFFICE COPY — UCC FINANCING STATEMENT (FORM UCC1) (REV.
05/22/02)

 

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A.NAME & PHONE OF CONTACT
AT FILER [optional] UCC Filings800-828-0938 B.SEND ACKNOWLEDGMENT TO: (Name and Address)
        .National Corporate ResearchI 41 State Street, Suite 600 Albany, NY 12207 LJ
___^^_^___^^^___^___^^___THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY 1.DEBTOR’S EXACT
FULL LEGAL NAME-insertonlyoi)e.debtorname (1a or1b)-donotabbreviateorcamb.nenames 1a.
ORGANIZATIONS NAME KROY BUILDING PRODUCTS, INC. OR 1 b. INDIVIDUAL’S LAST NAME[FIRST NAME[MIDDLE
NAME(SUFFIX 1c. MAILING ADDRESSCITYSTATE [POSTAL CODECOUNTRY 2600 GRAND BLVD., SUITE 900KANSAS
CITYMO 64108 1d. SEE INSTRUCTIONS| ADD’L INFO RE |1e. TYPE OF ORGANIZATION1f. JURISDICTION OF
ORGANIZATION1g. ORGANIZATIONAL ID #, if any ISr0” |CorporationDelaware,Q^ 2.ADDITIONAL DEBTOR’S
EXACT FULL LEGAL NAME — insert only one debtor name (2a or 2b) — do not abbreviate or combina
names 2a. ORGANIZATION’S NAME (-)D.___2b. INDIVIDUAL’S LAST NAME[FIRST NAME[MIDDLE NAME[SUFFIX
2c. MAILING ADDRESSCITYSTATE [POSTAL CODECOUNTRY 2d. SEE INSTRUCTIONSI ADD’L INFO RE 12e. TYPE
OF ORGANIZATION2t. JURISDICTION OF ORGANIZATION2g. ORGANIZATIONAL ID #, if any ORGANIZATION |
DEBTOR|||QNONE 3.SECURED PARTY’S NAME (or NAME olTOTAL ASSIGNEE of ASSIGNOR S/P)-insert only om
secured party name (3a Of 3b) 3a. ORGANIZATION’S NAME GENERAL ELECTRIC CAPITAL CORPORATION, AS
COLLATERAL AGENT Qp ^_,. 3b. INDIVIDUAL’S LAST NAMEFIRST NAMEMIDDLE NAMESUFFIX 3c. MAILING
ADDRESS CITY STATE IPOSTAL CODE COUNTRY ATTN: ACCOUNT MANAGER PLV GEM INDUSTRIES, 500 W.
fui^Ai-n ir £f\&(.ï — MONROE ST., I6TH FLOORL-HH-AUUILOUOOl 4.This FINANCING STATEMENT covers
the following collateral: ALL ASSETS 5.ALTERNATIVE DESIGNATION [il’applicable]:|~lLESSEEfl.ESSOR
[""[cONSIGNEE/CONSIGNOR I .BAILEE/BAILOR flsELLER/BUYER HAG. LIEN |~|NQN-UCCFILING
TITTTRSTINANCING STATEMENT is to be filed /tor record! (or recorded) in the REAL 17. Check to
REQUEST SEARCH REPORT(S) on Debtor(s) “PiTM"-~~TLT^ P~L . U ESTATE RECORDS Attach Add^mW
applicable I IASDITIONAI FEE1.optional!LI All Debtor. | | Debtor 1 |_|Debtor 2 8. OPTIONAL FILER
REFERENCE DATAF#225958 2164-440 — DE — Secretary of StateA#338550 FILING OFFICE COPY — UCC
FINANCING STATEMENT (FORM UCC1) (REV. 05/22/02)

 

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A.NAME & PHONE OF CONTACT
AT FILER [optional] UCC Filings800-828-0938 B.SEND ACKNOWLEDGMENT TO: (Name and Address)
        .National Corporate Research 41 State Street, Suite 600 Albany, NY 12207 LJ
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY 1.DEBTOR’S
EXACT FULL LEGAL NAME- insert onlyojie. debtor name (1aoMb)-donot abbreviate orcombinenames 1a.
ORGANIZATIONS NAME NAPCO, INC. OR 1 b. INDIVIDUAL’S LAST NAMEI FIRST NAMEIMIDDLE NAMEJ SUFFIX 1
c. MAILING ADDRESSCÎTYSTATE | POSTAL CODECOUNTRY 2600 GRAND BLVD., SUITE 900KANSAS CITYMO 64108
1d SEE INSTRUCTIONSI ADD’L INFO RE 11e. TYPE OF ORGANIZATION1(. JURISDICTION OF ORGANIZATION1j.
ORGANIZATIONAL ID*, if any ferTM | Corporation|Delaware(Q^ 2.ADDITIONAL DEBTOR’S EXACT FULL LEGAL
NAME — insert only ffle, debtor name (2a or 2b) ¦ do not abbreviate or combine names 2a.
ORGANIZATION’S NAME /~\p, 2b. INDIVIDUAL’S LAST NAMEI FIRST NAMEIMIDDLE NAMEJ SUFFIX 2c. MAILING
ADDRESSCÏÏYSTATE I POSTAL CODECOUNTRY 2d. SEE INSTRUCTIONSI ADD’L INFO RE 12e. TYPE OF
ORGANIZATION2f. JURISDICTION OF ORGANIZATION2g. ORGANIZATIONAL ID #, if any ORGANIZATION
[DEBTOR|||| )NONE 3.SECURED PARTYS NAME (or NAMEofTOTALASSIGNEE of ASSIGNOR S/P)-insert only
ofle secured partyname (3a or3b) 3a. ORGANIZATION’S NAME GENERAL ELECTRIC CAPITAL CORPORATION,
AS COLLATERAL AGENT OR 11, 3b. INDIVIDUAL’S LAST NAMEFIRST NAMEMIDDLE NAMESUFFIX 3c. MAILING
ADDRESS CTFY STATE IPOSTAL CODE COUNTRY ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W. PUIOAPA
II f.(\f.d\ — MONROE ST., I6TH FLOORtHILAUUILQUOD I 4.This FINANCING STATEMENT covers the
following collateral: ALL ASSETS 5.ALTERNATIVE DESIGNATION [if applicable]: 7|lESSEE/LESSOR
|~|CONSIGNEE/CONSIGNOR T IBAILEBBAILOR HsELLERfBUYER |AG. LIEN [~ NQN-UCC FILING 6.r~l This
FINANCING STATEMENT is to be filed [for record] (or recorded) In the REAL I 7. Check to REQUEST
SEARCH REPORT(S) on Debtor(s) fl ‘ t Pli Ù * IHr. .. -I IFSTATE RECORDS. Attach Addendumfif
applicable! I CADDITIONAt FgElfontionaflI I All Debtors I I Debtor 1| | Debtor 2 8. OPTIONAL
FILER REFERENCE DATAF#225959 2164-440 — DE — Secretary of StateA#338 551 FILING OFFICE COPY —
UCC FINANCING STATEMENT (FORM UCC1) (REV. 05/22/02)

 

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A.NAME & PHONE OF
CONTACTAT FILER [optional] UCC Filings800-828-0938 B.SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207 LJ
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^THE ABOVE SPACE IS FOR FIUNG OFFICE USE ONLY 1.DEBTOR’S EXACT
FULL LEGAL NAME- insert onlyanfi debtor name (1aor1b)-donotabbreviateorcambine names 1a.
ORGANIZATION’S NAME MWM HOLDING, INC. OR 1b. INDIVIDUAL’S LAST NAMEI FIRST NAMEIMIDDLE
NAMEISUFFIX 1c. MAILING ADDRESSCITYSTATE I POSTAL CODECOUNTRY 433 NORTH MAIN STREETROCKY MOUNTVA
24151 Id. SEE INSTRUCTIONSI ADD’L INFO RE 11». TYPE OF ORGANIZATION1f. JURISDICTION OF
ORGANIZATION1 g. ORGANIZATIONAL ID #, if any IggiSrTM |Corporationpelaware,Q^ 2.ADDITIONAL DE
BTOR’S EXACT FULL LEGAL NAME — insert only apt debtor name (2a or 2b) — do not abbreviate or
combine names 2a. ORGANIZATION’S NAME 0R 2b. INDIVIDUAL’S LAST NAMEI FIRST NAMEIMIDDLE
NAME[SUFFIX 2c MAILING ADDRESSCITYSTATE I POSTAL CODECOUNTRY 2d. SEE INSTRUCTIONSI ADD’L INFO RE
12e. TYPE OF ORGANIZATION21. JURISDICTION OF ORGANIZATION2g. ORGANIZATIONAL ID#, if any
ORGANIZATION._, | DEBTOR|||I I NONE 3.SECURED PARTVS NAME (orNAMEofTOTAL ASSIGNEE of ASSIGNOR
S/PHnsert only am secured party nam»(3a or 3b) 3a. ORGANIZATION’S NAME GENERAL ELECTRIC CAPITAL
CORPORATION, AS COLLATERAL AGENT no..,,___, 3b. INDIVIDUAL’S LAST NAMEFIRST NAMEMIDDLE NAMESUFFIX
3c. MAILING ADDRESS CÏÏY STATE IPOSTAL CODECOUNTRY ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500
W. PUIfArn II /rn^i — MONROE ST., 16TH FLOORLH1LAUUIL |OUOOI| 4.This FINANCING STATEMENT covers
the following collateral: ALL ASSETS 5.ALTERNATIVE DESIGNATION pf applicable): HLESSEEAESSOR | |
CONSIGNEE/CONSIGNOR [“IBAILEBBAILQR [~j SELLER/BUYER T^ AG. LIEN LlNON-UCC FILING “oTn^u^WANaNG
STATEMENT is to be filed [for record) (or recorded) in tile REAL I 7 Check to REQUEST
SCAT5CT7R“EPORT(S) on Debtor(s) r~|~~OT^ I “L t ,, I 1ESTATE RECORDS A«»ch Artd.nHumfrf
applicable! I lADDrnoNAL FEE1foPtionall|J All Debtors U Debtor 1 LjD°°t°r2 8. OPTIONAL FILER
REFERENCE DATAF# 2 2 5 9 61 2164-440 — DE — Secretary of StateA#338553 FILING OFFICE COPY — UCC
FINANCING STATEMENT (FORM UCC1) (REV. 05/22/02)

 

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A.NAME 4 PHONE OF CONTACT
AT FILER [optional) UCC Filings800-828-0938 B.SEND ACKNOWLEDGMENT TO: (Name and Address)
iNational Corporate Research 41 State Street, Suite 600 Albany, NY 12207 LJ
___^^^_^___^___^_^___^_^^___^^___THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY 1.DEBTOR’S EXACT
FULL LEGAL NAME- insert only fine debtornama(1aor1b)-do not abbreviateorcombinenames 1a.
ORGANIZATION’S NAME MW MANUFACTURERS INC. 0R 1 b. INDIVIDUAL’S LAST NAMEI FIRST NAME[MIDDLE
NAMEI SUFFIX 1c. MAILING ADDRESSCITYSTATE I POSTAL CODECOUNTRY 433 NORTH MAIN STREETROCKY
MOUNTVA 24151 1d. SEF INSTRUCTIONSI ADD’L INFO RE 11e, TYPE OF ORGANIZATION1f. JURISDICTION OF
ORGANIZATION1g. ORGANIZATIONAL ID tt, if any I^^NIZATION | corp0rationpelawarejQ^ 2.ADDITIONAL
DEBTOR’S EXACT FULL LEGAL NAME — insert only ens debtor name (2a or 2b) — do not abbreviate or
combine names 2a. ORGANIZATION’S NAME no,,___., 2b. INDIVIDUAL’S LAST NAMEI FIRST NAMEIMIDDLE
NAMEI SUFFIX 2c. MAILING ADDRESSCÎTYSTATE I POSTAL CODECOUNTRY 2d. SEEINSTRUCTtOMSI ADD’L INFO
RE 12e. TYPE OF ORGANIZATION2f. JURISDICTION OF ORGANIZATION2g. ORGANIZATIONAL ID #, if any
ORGANIZATION___I DEBTOR|||M NONE 3.SECURED PARTY’S NAME(orNAlv1EofTOTALASSIGNEEof ASSIGNOR
S/P)-in5ertonlyfing secured party name (3aor3b) 3a. ORGANIZATION’S NAME GENERAL ELECTRIC CAPITAL
CORPORATION, AS COLLATERAL AGENT OR1,, 3b. INDIVIDUAL’S LAST NAMEFIRST NAMEMIDDLE NAMESUFFIX 3c.
MAILING ADDRESS CITY STATE IPOSTAL CODE COUNTRY ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W.
ninn\rr\ II CC\C£\ — MONROE ST., I6TH FLOORIHHAOUILOUOOl A.This FINANCING STATEMENT covers the
following collateral’. ALL ASSETS 5. ALTERNATIVE DESIGNATION (If applicable]: LESSEE/LESSOR fl
CONSIGNEE/CONSIGNOR |~| BAILEE/BAILOR [ |SELLER/BUYER | AG. LIENNON-UCC FILING 6.1’
llniaHNANCINGSTATEMENTistobêTlSalroTTcordlforrecord^dTlnTrTREAL I 7. Check to REQUEST SEARCH
REPORT(S) on OoRôr(s)—rf ‘^TT~^TT^~~T U ESTATE RECORDS. Attach AddendumW apolicabl.! I
TAPPITIONAL FEE1foorjonallI I All Debtors | |Debtorl| |Debtor2 B.OPTIONAL FILER REFERENCE
DATAF#225963 2164-440 — DE — Secretary of StateA#338555 FILING OFFICE COPY — UCC FINANCING
STATEMENT (FORM UCC1) (REV. 05/22/02)

 

 

	UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
A. NAME & PHONE OF CONTACT AT FILER [optional]
UCC Filings 800-828-0938
B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207
L
I THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do not abbreviate or
commendams
1a. ORGANIZATION’S NAME
AWC HOLDING COMPANY
OR 1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX
1c. MAILING ADDRESS  •  CITY STATE            POSTAL CODE COUNTRY
615 CARSON STREET BRYAN TX 77801
1d SEE INSTRUCTIONS ADD’L IN FORE 1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g.
ORGANIZATIONAL 1D#, if any
ORGANIZATION Corporation Delaware nqne
2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME — insert only an debtor name (2a or 2b) — do not
abbreviate of combine names
2a. ORGANIZATION’S NAME
OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
2c. MAILING ADDRESS CITY STATE I POSTAL CODE COUNTRY
2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF ORGANIZATION 2g.
ORGANIZATIONAL ID #, If any
ORGANIZATION
[debtor            I none
3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an secured party
name (3a or 3b)
3a. ORGANIZATION’S NAME
GENERAL ELECTRIC CAPITAL CORPORATION, AS COLLATERAL AGENT
3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX
3c. MAILING ADDRESS
CITY
STATE (POSTAL CODE            COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
— MONROE ST., 16TH FLOOR CHICAGO IL 6066I
4. This FINANCING STATEMENT covers the following collateral:
ALL ASSETS

 

 

	UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
A. NAME & PHONE OF CONTACT AT FILER [optional]
UCC Filings 800-828-0938
B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207
L
I THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do not abbreviate or
commendams
1a. ORGANIZATION’S NAME
ALLENCO HOLDING CORPORATION
OR 1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX
1c. MAILING ADDRESS  •  CITY STATE            POSTAL CODE COUNTRY
615 CARSON STREET BRYAN TX 77801
1d SEE INSTRUCTIONS ADD’L IN FORE 1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g.
ORGANIZATIONAL 1D#, if any
ORGANIZATION Corporation Delaware nqne
2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME — insert only an debtor name (2a or 2b) — do not
abbreviate of combine names
2a. ORGANIZATION’S NAME
OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
2c. MAILING ADDRESS CITY STATE I POSTAL CODE COUNTRY
2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF ORGANIZATION 2g.
ORGANIZATIONAL ID #, If any
ORGANIZATION
[debtor            I none
3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an secured party
name (3a or 3b)
3a. ORGANIZATION’S NAME
GENERAL ELECTRIC CAPITAL CORPORATION, AS COLLATERAL AGENT
3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX
3c. MAILING ADDRESS
CITY
STATE (POSTAL CODE            COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
— MONROE ST., 16TH FLOOR CHICAGO IL 6066I
4. This FINANCING STATEMENT covers the following collateral:
ALL ASSETS

 

 

	UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
A. NAME & PHONE OF CONTACT AT FILER [optional]
UCC Filings 800-828-0938
B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207
L
I THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do not abbreviate or
commendams
1a. ORGANIZATION’S NAME
AWC ARIZONIA INC.
OR 1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX
1c. MAILING ADDRESS  •  CITY STATE            POSTAL CODE COUNTRY
3830 E. WEIR A VENUE PHOENIX AZ 58040
1d SEE INSTRUCTIONS ADD’L IN FORE 1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g.
ORGANIZATIONAL 1D#, if any
ORGANIZATION Corporation Delaware nqne
2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME — insert only an debtor name (2a or 2b) — do not
abbreviate of combine names
2a. ORGANIZATION’S NAME
OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
2c. MAILING ADDRESS CITY STATE I POSTAL CODE COUNTRY
2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF ORGANIZATION 2g.
ORGANIZATIONAL ID #, If any
ORGANIZATION
[debtor            I none
3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an secured party
name (3a or 3b)
3a. ORGANIZATION’S NAME
GENERAL ELECTRIC CAPITAL CORPORATION, AS COLLATERAL AGENT
3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX
3c. MAILING ADDRESS
CITY
STATE (POSTAL CODE            COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
— MONROE ST., 16TH FLOOR CHICAGO IL 6066I
4. This FINANCING STATEMENT covers the following collateral:
ALL ASSETS

 

 

	UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
A. NAME & PHONE OF CONTACT AT FILER [optional]
UCC Filings 800-828-0938
B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207
L
I THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do not abbreviate or
commendams
1a. ORGANIZATION’S NAME
ALENCO INTERESTS, L.L.C.
OR 1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX
1c. MAILING ADDRESS  •  CITY STATE            POSTAL CODE COUNTRY
615 CARSON STREET BRYAN TX 77801
1d SEE INSTRUCTIONS ADD’L IN FORE 1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g.
ORGANIZATIONAL 1D#, if any
ORGANIZATION Corporation Delaware nqne
2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME — insert only an debtor name (2a or 2b) — do not
abbreviate of combine names
2a. ORGANIZATION’S NAME
OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
2c. MAILING ADDRESS CITY STATE I POSTAL CODE COUNTRY
2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF ORGANIZATION 2g.
ORGANIZATIONAL ID #, If any
ORGANIZATION
[debtor            I none
3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an secured party
name (3a or 3b)
3a. ORGANIZATION’S NAME
GENERAL ELECTRIC CAPITAL CORPORATION, AS COLLATERAL AGENT
3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX
3c. MAILING ADDRESS
CITY
STATE (POSTAL CODE            COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
— MONROE ST., 16TH FLOOR CHICAGO IL 6066I
4. This FINANCING STATEMENT covers the following collateral:
ALL ASSETS

 

 

	UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
A. NAME & PHONE OF CONTACT AT FILER [optional]
UCC Filings 800-828-0938
B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207
L
I THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do not abbreviate or
commendams
1a. ORGANIZATION’S NAME
ALENCO EXTRUSION MANAGEMENT, L.L.C.
OR 1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX
1c. MAILING ADDRESS  •  CITY STATE            POSTAL CODE COUNTRY
615 CARSON STREET BRYAN TX 77801
1d SEE INSTRUCTIONS ADD’L IN FORE 1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g.
ORGANIZATIONAL 1D#, if any
ORGANIZATION Corporation Delaware nqne
2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME — insert only an debtor name (2a or 2b) — do not
abbreviate of combine names
2a. ORGANIZATION’S NAME
OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
2c. MAILING ADDRESS CITY STATE I POSTAL CODE COUNTRY
2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF ORGANIZATION 2g.
ORGANIZATIONAL ID #, If any
ORGANIZATION
[debtor            I none
3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an secured party
name (3a or 3b)
3a. ORGANIZATION’S NAME
GENERAL ELECTRIC CAPITAL CORPORATION, AS COLLATERAL AGENT
3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX
3c. MAILING ADDRESS
CITY
STATE (POSTAL CODE            COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
— MONROE ST., 16TH FLOOR CHICAGO IL 6066I
4. This FINANCING STATEMENT covers the following collateral:
ALL ASSETS

 

 

	UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
A. NAME & PHONE OF CONTACT AT FILER [optional]
UCC Filings 800-828-0938
B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207
L
I THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do not abbreviate or
commendams
1a. ORGANIZATION’S NAME
ALENCO BUILDING PRODUCTS MANAGEMENT, L.L.C.
OR 1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX
1c. MAILING ADDRESS  •  CITY STATE            POSTAL CODE COUNTRY
615 CARSON STREET BRYAN TX 77801
1d SEE INSTRUCTIONS ADD’L IN FORE 1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g.
ORGANIZATIONAL 1D#, if any
ORGANIZATION Corporation Delaware nqne
2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME — insert only an debtor name (2a or 2b) — do not
abbreviate of combine names
2a. ORGANIZATION’S NAME
OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
2c. MAILING ADDRESS CITY STATE I POSTAL CODE COUNTRY
2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF ORGANIZATION 2g.
ORGANIZATIONAL ID #, If any
ORGANIZATION
[debtor            I none
3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an secured party
name (3a or 3b)
3a. ORGANIZATION’S NAME
GENERAL ELECTRIC CAPITAL CORPORATION, AS COLLATERAL AGENT
3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX
3c. MAILING ADDRESS
CITY
STATE (POSTAL CODE            COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
— MONROE ST., 16TH FLOOR CHICAGO IL 6066I
4. This FINANCING STATEMENT covers the following collateral:
ALL ASSETS

 

 

	UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
A. NAME & PHONE OF CONTACT AT FILER [optional]
UCC Filings 800-828-0938
B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207
L
I THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do not abbreviate or
commendams
1a. ORGANIZATION’S NAME
GLAXZING INDUSTRIES MANAGEMENT, L.L.C.
OR 1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX
1c. MAILING ADDRESS  •  CITY STATE            POSTAL CODE COUNTRY
615 CARSON STREET BRYAN TX 77801
1d SEE INSTRUCTIONS ADD’L IN FORE 1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g.
ORGANIZATIONAL 1D#, if any
ORGANIZATION Corporation Delaware nqne
2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME — insert only an debtor name (2a or 2b) — do not
abbreviate of combine names
2a. ORGANIZATION’S NAME
OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX
2c. MAILING ADDRESS CITY STATE I POSTAL CODE COUNTRY
2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF ORGANIZATION 2g.
ORGANIZATIONAL ID #, If any
ORGANIZATION
[debtor            I none
3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an secured party
name (3a or 3b)
3a. ORGANIZATION’S NAME
GENERAL ELECTRIC CAPITAL CORPORATION, AS COLLATERAL AGENT
3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX
3c. MAILING ADDRESS
CITY
STATE (POSTAL CODE            COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
— MONROE ST., 16TH FLOOR CHICAGO IL 6066I
4. This FINANCING STATEMENT covers the following collateral:
ALL ASSETS

 

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A. NAME & PHONE OF
CONTACT AT FILER [optional] UCC Filings 800-828-0938 B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207 L I THE ABOVE SPACE IS FOR
FILING OFFICE USE ONLY 1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do
not abbreviate or commendams 1a. ORGANIZATION’S NAME ALENCO TRANS INC,  OR  1b.
INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX 1c. MAILING ADDRESS  •  CITY STATE
POSTAL CODE COUNTRY 615 CARSON STREET BRYAN TX |77801 1d SEE INSTRUCTIONS ADD’L IN FORE 1e.
TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g. ORGANIZATIONAL 1D#, if any ORGANIZATION
Corporation Delaware |  nqne  2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME — insert only an
debtor name (2a or 2b) — do not abbreviate of combine names 2a. ORGANIZATION’S NAME OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 2c. MAILING ADDRESS CITY STATE I POSTAL
CODE COUNTRY 2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF
ORGANIZATION 2g. ORGANIZATIONAL ID #, If any ORGANIZATION  [debtor  I
 none  3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an
secured party name (3a or 3b) 3a. ORGANIZATION’S NAME GENERAL ELECTRIC CAPITAL CORPORATION, AS
COLLATERAL AGENT 3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX 3c. MAILING ADDRESS
CITY            STATE (POSTAL CODE
COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
—  MONROE ST., 16TH FLOOR CHICAGO |IL |6066I | 4. This FINANCING STATEMENT covers the
following collateral: ALL ASSETS

 

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A. NAME & PHONE OF CONTACT
AT FILER [optional] UCC Filings 800-828-0938 B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207 L I THE ABOVE SPACE IS FOR
FILING OFFICE USE ONLY 1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do
not abbreviate or commendams 1a. ORGANIZATION’S NAME            ALENCO EXTRUSION GA, LLC INC,
 OR  1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX 1c. MAILING ADDRESS  •  CITY
STATE            POSTAL CODE COUNTRY 315 DIVIDED DRIVE PEACHTREE CITY GA 30269 1d SEE INSTRUCTIONS
ADD’L IN FORE 1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g. ORGANIZATIONAL 1D#, if
any ORGANIZATION Corporation Delaware |  nqne  2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL
NAME — insert only an debtor name (2a or 2b) — do not abbreviate of combine names 2a.
ORGANIZATION’S NAME OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 2c. MAILING ADDRESS CITY STATE I POSTAL
CODE COUNTRY 2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF
ORGANIZATION 2g. ORGANIZATIONAL ID #, If any ORGANIZATION  [debtor  I
 none  3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an
secured party name (3a or 3b) 3a. ORGANIZATION’S NAME GENERAL ELECTRIC CAPITAL CORPORATION, AS
COLLATERAL AGENT 3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX 3c. MAILING ADDRESS
CITY            STATE (POSTAL CODE
COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
—  MONROE ST., 16TH FLOOR CHICAGO |IL |6066I | 4. This FINANCING STATEMENT covers the
following collateral: ALL ASSETS

 

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A. NAME & PHONE OF CONTACT
AT FILER [optional] UCC Filings 800-828-0938 B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207 L I THE ABOVE SPACE IS FOR
FILING OFFICE USE ONLY 1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do
not abbreviate or commendams 1a. ORGANIZATION’S NAME            ALUMINUM SCRAPE RECYCLE,
LLC OR  1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX 1c. MAILING ADDRESS  •
CITY STATE            POSTAL CODE COUNTRY 615 CARSON STREET BRYAN TX |77801 1d SEE INSTRUCTIONS
ADD’L IN FORE 1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g. ORGANIZATIONAL 1D#, if
any ORGANIZATION Corporation Delaware |  nqne  2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL
NAME — insert only an debtor name (2a or 2b) — do not abbreviate of combine names 2a.
ORGANIZATION’S NAME OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 2c. MAILING ADDRESS CITY STATE I POSTAL
CODE COUNTRY 2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF
ORGANIZATION 2g. ORGANIZATIONAL ID #, If any ORGANIZATION  [debtor  I
 none  3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an
secured party name (3a or 3b) 3a. ORGANIZATION’S NAME GENERAL ELECTRIC CAPITAL CORPORATION, AS
COLLATERAL AGENT 3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX 3c. MAILING ADDRESS
CITY            STATE (POSTAL CODE
COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
—  MONROE ST., 16TH FLOOR CHICAGO |IL |6066I | 4. This FINANCING STATEMENT covers the
following collateral: ALL ASSETS

 

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A. NAME & PHONE OF CONTACT
AT FILER [optional] UCC Filings 800-828-0938 B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207 L I THE ABOVE SPACE IS FOR
FILING OFFICE USE ONLY 1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do
not abbreviate or commendams 1a. ORGANIZATION’S NAME            ALENCO WINDOW GA, L.L.C.  OR
1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX 1c. MAILING ADDRESS  •  CITY STATE
POSTAL CODE COUNTRY 319 DIVIDED DRIVE PEACHTREE CITY GA 30269 1d SEE INSTRUCTIONS ADD’L IN FORE
1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g. ORGANIZATIONAL 1D#, if any ORGANIZATION
Corporation Delaware |  nqne  2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME — insert only an
debtor name (2a or 2b) — do not abbreviate of combine names 2a. ORGANIZATION’S NAME OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 2c. MAILING ADDRESS CITY STATE I POSTAL
CODE COUNTRY 2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF
ORGANIZATION 2g. ORGANIZATIONAL ID #, If any ORGANIZATION  [debtor  I
 none  3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an
secured party name (3a or 3b) 3a. ORGANIZATION’S NAME GENERAL ELECTRIC CAPITAL CORPORATION, AS
COLLATERAL AGENT 3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX 3c. MAILING ADDRESS
CITY            STATE (POSTAL CODE
COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
—  MONROE ST., 16TH FLOOR CHICAGO |IL |6066I | 4. This FINANCING STATEMENT covers the
following collateral: ALL ASSETS

 

 

	UCC FINANCING STATEMENT FOLLOW INSTRUCTIONS (front and back) CAREFULLY A. NAME & PHONE OF CONTACT
AT FILER [optional] UCC Filings 800-828-0938 B. SEND ACKNOWLEDGMENT TO: (Name and Address)
National Corporate Research 41 State Street, Suite 600 Albany, NY 12207 L I THE ABOVE SPACE IS FOR
FILING OFFICE USE ONLY 1. DEBTOR’S EXACT FULL LEGAL NAME- insert only one debtor name(1aor1b)-do
not abbreviate or commendams 1a. ORGANIZATION’S NAME PLY GYM PACFIC WINDOWS CORPORATION
 OR  1b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME I SUFFIX 1c. MAILING ADDRESS  •  CITY
STATE            POSTAL CODE COUNTRY 5001 D STREET NW AUBURN WA 98001 1d SEE INSTRUCTIONS ADD’L IN
FORE 1e. TYPE OF ORGANIZATION .  JURISDICTION OF ORGANIZATION 1g. ORGANIZATIONAL 1D#, if any
ORGANIZATION Corporation Delaware |  nqne  2. ADDITIONAL DEBTOR’S EXACT FULL LEGAL NAME -
insert only an debtor name (2a or 2b) — do not abbreviate of combine names 2a. ORGANIZATION’S NAME
OR
2b. INDIVIDUAL’S LAST NAME FIRST NAME MIDDLE NAME SUFFIX 2c. MAILING ADDRESS CITY STATE I POSTAL
CODE COUNTRY 2d SEE INSTRUCTIONS ADDLE INFO RE 12e. TYPE OF ORGANIZATION 21. JURISDICTION OF
ORGANIZATION 2g. ORGANIZATIONAL ID #, If any ORGANIZATION  [debtor  I
 none  3. SECURED PARTY’S NAME (or NAME of TOTAL ASSIGNEE of ASSIGN OR S/P)-insert only an
secured party name (3a or 3b) 3a. ORGANIZATION’S NAME GENERAL ELECTRIC CAPITAL CORPORATION, AS
COLLATERAL AGENT 3b. INDIVIDUAL’S LAST NAME [FIRST NAME [MIDDLE NAME SUFFIX 3c. MAILING ADDRESS
CITY            STATE (POSTAL CODE
COUNTRY
ATTN: ACCOUNT MANAGER PLY GEM INDUSTRIES, 500 W
—  MONROE ST., 16TH FLOOR CHICAGO |IL |6066I | 4. This FINANCING STATEMENT covers the
following collateral: ALL ASSETS

 

 

EXHIBIT J-2

	 	 	 

	

	 	4500 Bankers Hall East, 855 — 2nd Street SW 

Calgary, Alberta, Canada T2P 4K7 
Tel: 403.298.3100 Fax: 403.265.7219

www.bennettjones.ca

June 9, 2008

General Electric Corporation 

500 W. Monroe Street. 16th Floor

Chicago Illinois 60661

-and-

Credit Suisse

Eleven Madison Avenue

New York, NY 10010

-and-

Fasken Martineau DuMoulin LLP

Suite 3700, 66 Wellington St. W

Toronto, Alberta 

M5K 1N6

Dear Sirs:

Re: CWD Windows and Doors, Inc.

We have acted as Alberta counsel for CWD Windows and Doors, Inc., as Canadian Borrower (the
“Canadian Borrower”) and Ply Gem Industries, Inc. as the Specified U.S. Borrower
(collectively referred to herein as the “Borrowers”) in connection with the authorization,
execution and delivery of the Credit Documents (defined below).

This opinion letter is being issued and delivered to the addressees hereof pursuant to
Section 4.01(a)(xii) of the Credit Agreement (defined below).

Scope of Enquiry

In order to render the opinions expressed in this opinion letter, we have examined
originals or copies of the following documents:

	(a)	 	Credit Agreement dated as of June 9, 2008 (the “Credit Agreement”) among the
Borrowers, the other borrowers named therein, Credit Suisse, as administrative

CALGARY   •   TORONTO   •   EDMONTON

 

- 2 -

	 	 	agent on its own behalf and on behalf of the Lenders (as defined therein), U.S.
swingline lender and U.S. L/C issuer, Credit Suisse, Toronto Branch, as Canadian swingline
lender and Canadian L/C issuer, Credit Suisse Securities (U.S.A.) LLC, as sole lead
arranger and sole bookrunner, the syndicate agent named therein and General Electric
Capital Corporation, as collateral agent (for and on behalf and for the benefit of itself
and the Lenders, the “Collateral Agent” and together with the Lenders, the “Secured
Parties”);
	 
	(b)	 	Lien Subordination and Intercreditor Agreement dated as of June 9, 2008 between inter alia
the Collateral Agent, U.S. Bank National Association, the Specified U.S. Borrower, Ply Gem
Holdings, Inc. and the Canadian Borrower, as subsidiary of Ply Gem Industries, Inc. (the
“Intercreditor Agreement”);
	 
	(c)	 	Security Agreement dated as of June 9, 2008 among the Canadian Borrower and the Collateral
Agent;
	 
	(d)	 	Intellectual Property Security Agreement dated as of June 9, 2008 among the Canadian
Borrower and the Collateral Agent;
	 
	(e)	 	Confirmation of Security Interest in Intellectual Property provided by the Canadian Borrower
dated as of June 9, 2008 (the “Confirmation”);
	 
	(f)	 	Certificate of Compliance dated June 9, 2008 issued by Industry Canada in respect of the
Canadian Borrower (the “Certificate of Compliance”);
	 
	(g)	 	Certificate of Status dated June 4, 2008 issued by the Registrar of Corporations for Alberta
in respect of the Canadian Borrower (the “Certificate of Status”);
	 
	(h)	 	the Financing statements (“Alberta Verification Statements”) attached hereto as Schedule ‘B’
to be filed at the Alberta Personal Property Registry (the “APPR”) pursuant to the provisions
of the Personal Property Security Act (Alberta) and the Personal Property Security Act
Regulation (Alberta) (collectively, the “APPSA”) details of which are set out in Schedule A
hereto (the “Financing Statements”);
	 
	(i)	 	a Secretary’s Certificate — Borrowers dated June 2, 2008 issued by the President of CWD
Windows and Doors, Inc. of the Canadian Borrower relating to the Canadian Borrower and, inter
alia, matters of corporate status, incumbency of officers and directors and corporate power
and authority and attaching certified copies of (A) a resolution of the board of directors of
the Canadian Borrower authorizing the execution and delivery of each of the Credit Documents
to which it is a party and the performance by the Canadian Borrower of its obligations
thereunder, (B) the articles (the “Articles”) and bylaws (the “Bylaws”) of the Canadian
Borrower;

 

- 3 -

We have also made such investigations, examined such certificates of public authorities, and
corporate officers and directors, corporate records and other documents certified or otherwise
identified to our satisfaction, and have considered such questions of law, as we have considered
necessary and appropriate as a basis for providing the opinions expressed herein.

Applicable Law

The opinions expressed below are limited to the laws, statutes and regulations of the Province of
Alberta, including the federal laws, statutes and regulations of Canada applicable in the Province
of Alberta in force on the date of this opinion letter (collectively, “Alberta Law”).

Without limiting the generality of the immediately preceding paragraph, (i) we express no opinion
with respect to the laws of any other jurisdiction to the extent that those laws may govern the
validity, perfection, effect of perfection or non-perfection or enforcement of the security
interests created by the Alberta Security Documents as a result of the application of the conflict
of laws rules of Alberta (the “Applicable Canadian Law”), including, without limitation, Sections 5
to 8.1 inclusive of the APPSA, and (ii) we express no opinion whether, pursuant to those conflict
of laws rules, any Applicable Canadian Law would govern the validity, perfection, effect of
perfection or non-perfection or enforcement of those security interests. In addition, we express no
opinion as to whether Applicable Canadian Law would govern the validity, perfection, effect of
perfection or non-perfection or enforcement of the Security Interests including for certainty any
floating or registered mortgage or charge on real property, except as specifically set forth
herein.

Our opinion expressed in paragraph 1 is expressed solely in reliance upon the Certificate of
Compliance and our opinion expressed in paragraph 2 is expressed solely in reliance upon the
Certificate of Status.

Defined Terms

In this opinion letter (i) “Credit Documents” means all of the documents listed as items (a) to
(e), inclusive, in the Scope of Enquiry section of this opinion letter, (ii) “Alberta Security
Documents” means the documents listed as items (c) and (d) in the Scope of Enquiry section of this
opinion letter (iii) “New York Law Documents” means all of the documents listed as items (a) and
(b), inclusive, in the Scope of Enquiry section of this opinion letter inclusive of this opinion
letter and (iv) references to “Collateral” have the meaning given to such term in the applicable
Alberta Security Document.

 

- 4 -

To the extent the context so admits, words and expressions defined in the APPSA and the
regulations issued thereunder and grammatical variations thereof, are used in this opinion letter
with the same respective defined meanings.

Assumptions

As a basis for our opinions, we have made the following assumptions:

	(a)	 	all signatures on documents submitted to us are genuine, all documents submitted to us as
originals are authentic and complete, and all documents submitted to us as copies conform to
authentic and complete original documents;
	 
	(b)	 	all facts set forth in official public records and certificates and other documents supplied
by public officials or otherwise conveyed to us by public officials are and remain at all
material times complete, true and accurate;
	 
	(c)	 	the Certificate of Compliance is conclusive evidence that the Canadian Borrower is
incorporated under the Canada Business Corporations Act; (the “CBCA”)
	 
	(d)	 	the Certificate of Status is conclusive evidence that the Canadian Borrower is incorporated
under the Business Corporations Act (Alberta) (the “ABCA”);
	 
	(e)	 	all facts set forth and statements made in certificates supplied by the President of the
Canadian Borrower are and remain at all material times complete, true and accurate;
	 
	(f)	 	all relevant individuals had full legal capacity at all relevant times;
	 
	(g)	 	none of the documents (including, without limitation, the Credit Documents), originals or
copies of which we have examined has been amended, and there are no agreements or
understandings between the parties, written or oral, and there is no usage of trade or course
of prior dealing between the parties that would, in either case, define, supplement or
qualify the terms of the Credit Documents;
	 
	(h)	 	for the purposes of our opinions expressed in paragraph 8 below, (i) the parties to the
Alberta Security Documents have not agreed to postpone the time for attachment of the
security interests contemplated to be created thereby, (ii) value has been given to the
Canadian Borrower, and (iii) the Secured Parties have not done anything to release or
discharge any Security Interest in respect of any Collateral;
	 
	(i)	 	the Credit Documents constitute legal, valid and binding obligations of each party thereto,
other than the Canadian Borrower, enforceable against them in accordance with their
respective terms;

 

- 5 -

	(j)	 	each of the New York Law Documents constitute legal, valid and binding obligations of
the parties thereto under the laws of the State of New York (“New York Law”) enforceable
against the parties thereto in accordance with the terms of the respective New York
Document under New York Law and would be enforced under New York Law as written and the
provisions thereof would be given the same meaning under New York Law that would be given
if the respective New York Law Document were governed by Alberta Law;
	 
	(k)	 	each party to the Credit Documents (other than the Canadian Borrower) is a validly existing
legal person under the laws governing its existence, has all requisite capacity, power and
authority to execute, deliver and perform the Credit Documents to which it is a party, has
taken all necessary corporate, statutory, regulatory and other action to authorize the
execution, delivery and performance by it of such Credit Documents to which it is a party and
has duly executed and delivered such Credit Documents; and
	 
	(l)	 	the execution and delivery by each party to the Credit Documents executed or, as applicable,
delivered by it outside of the Provinces of Alberta comply with the requirements relating to
the execution and delivery of documents under the laws of the jurisdiction in which such
Credit Document was executed or, as applicable, delivered.

Opinions

Based and relying on the foregoing and subject to the qualifications outlined below, we are of the
opinion that:

	1.	 	The Canadian Borrower is incorporated under the CBCA, is not discontinued and has not been
dissolved under the CBCA.
	 
	2.	 	The Canadian Borrower is registered in Alberta and is a valid and subsisting
extra-provincial corporation under the ABCA.
	 
	3.	 	The Canadian Borrower has the corporate power and capacity to own property and assets, to
carry on business, to execute, deliver, grant the security and incur the obligations
contemplated by and perform its obligations under the Credit Documents.
	 
	4.	 	The Canadian Borrower has taken all necessary corporate action to authorize the execution
and delivery of, grant of security contemplated by, and the performance of its obligations
under the Credit Documents and has duly executed and delivered the Credit Documents.

 

- 6 -

	5.	 	The execution and delivery of the Credit Documents by the Canadian Borrower and the
consummation of the loan and security transactions contemplated by the Credit Documents
and the performance by the Canadian Borrower of its obligations thereunder do not
contravene, violate or result in a breach of:

	 	(a)	 	the CBCA or the Articles or the Bylaws of the Canadian Borrower; or
	 
	 	(b)	 	any other Alberta Law.

	6.	 	No authorization, permit, consent, license, approval, acknowledgment, order or exemption
from, registration or filing with, or notice to any government department or agency or other
regulatory body or authority under Alberta Law is required to permit the Canadian Borrower to
borrow under the Credit Agreement, or to permit the Canadian Borrower to execute and deliver
the Credit Documents, to perform its obligations under the Credit Documents or to grant the
security contemplated under the Credit Documents except for registrations and filings
necessary to establish and protect the priority of the security interests created by the
Alberta Security Documents.
	 
	7.	 	The Alberta Security Documents constitute legal, valid and binding obligations of the
Canadian Borrower, enforceable against it in accordance with their terms.
	 
	8.	 	The Alberta Security Documents create valid security interests in favour of the Collateral
Agent, in the Collateral comprised of personal property to which the APPSA applies and in
which a security interest may be granted under the APPSA (the “Alberta Personal Property
Collateral”) in which the Canadian Borrower now has rights which secures the payment and
performance of its obligations under the Credit Agreement. The Alberta Security Documents are
sufficient to create valid security interests in Alberta Personal Property Collateral in
which the Canadian Borrower hereafter acquires rights when those rights are acquired.
	 
	9.	 	Once the Financing Statements have been filed with the Alberta Personal Property Registry
registration will have been made in all public offices provided for under Alberta Law where
such registration is necessary to preserve, protect or perfect the security interests created
in favour of the Collateral Agent in the Alberta Personal Property Collateral under the
Alberta Security Documents. Except as provided in Schedule A, no renewal or amendment of such
registrations are required.
	 
	10.	 	The choice of New York Law as the governing law of each of the New York Law Documents is a
valid choice of law under the laws of Alberta and of Canada applicable therein (“Alberta Law”) provided that it was not made with a view to avoiding the consequences of the laws of
any other jurisdiction and that choice is

 

- 7 -

	 	 	not otherwise contrary to public policy, as such term is interpreted under Alberta Law
(“Public Policy”). In any proceeding brought before a court of competent jurisdiction (an
“Alberta Court”) in the Province of Alberta (the “Alberta Jurisdiction”) for the
enforcement of the New York Law Documents, New York Law (being the stated governing laws of
such documents) would, to the extent specifically pleaded and proven as a fact by expert
evidence, be applied by the Alberta Court to all issues which under the conflict of laws
rules of the Province of Alberta and the federal laws of Canada applicable therein are to
be determined in accordance with the proper or governing law of a contract provided that
the Alberta Court finds that such choice of law is bona fide (in the sense that it was not
made with a view to avoiding the consequences of the law of the jurisdiction with which the
transaction has its most real and substantial connection), and except that in any such
proceeding the Alberta Court:

	 	(a)	 	will apply those laws of the Province of Alberta which the Alberta Court
would characterize as procedural and will not apply those laws of the State of New
York which the Alberta Court would characterize as procedural;
	 
	 	(b)	 	will not apply those laws of the State of New York which the Alberta Court
would characterize as revenue, expropriatory, penal or similar laws (and based solely
on our review of the plain words used in the New York Law Documents and Alberta Law
but without any knowledge of the New York Law, we are not aware of any laws which
would be so characterized and would not be applied by the Alberta Court in enforcing
the New York Law Documents against the Canadian Borrower); and
	 
	 	(c)	 	will not apply those laws of the State of New York, the application of which
would be inconsistent with Public Policy. Based solely on our review of the plain
words used in the New York Law Documents and Alberta Law, but without any knowledge
of New York Law, we have no reason to believe that any of the terms of the New York
Law Documents are contrary to Public Policy or that it would be contrary to Public
Policy for an Alberta Court to hear an action or proceeding to enforce the New York
Law Documents in the Province of Alberta.

	11.	 	Alberta Law would permit an action to be brought before an Alberta Court to enforce, without
re-litigation of the merits of any claim that is the subject of such judgment, a final and
conclusive in personam judgment (the “New York Judgment”) of a New York court of competent
jurisdiction (the “New York Court”) against the Canadian Borrower related to the Credit
Agreement of the Notes which is not impeachable as void or voidable under New York Law for a
sum certain in money (including a judgment issued in an action commenced and maintained in
accordance with the provisions of the New York Law Documents

 

- 8 -

	 	 	respecting submission to jurisdiction, choice of venue and service of process to the extent that
such provisions are enforceable under New York Law), provided that:

	 	(a)	 	the court rendering the New York Judgment had jurisdiction over the defendant and the
subject matter of the proceedings according to the conflict of laws rules as recognized by
Alberta Courts (and an express, contractual submission to jurisdiction is sufficient for this
purpose);
	 
	 	(b)	 	the New York Judgment was not obtained by fraud, or in a manner contrary to natural justice
or contrary to any order made by The Attorney General of Canada under the Foreign
Extraterritorial Measures Act (Canada) or by the Competition Tribunal under the Competition
Act (Canada) in respect of certain judgments referred to therein;
	 
	 	(c)	 	the enforcement of the New York Judgment would not be inconsistent with Public Policy;
	 
	 	(d)	 	the New York Judgment is not in respect of a revenue,
expropriatory, penal or similar law of
a foreign jurisdiction;
	 
	 	(e)	 	the action on the New York Judgment is brought in Alberta within the applicable limitation
period or periods;
	 
	 	(f)	 	the New York Judgment does not conflict with another final and conclusive judgment in or
relating to the same cause of action in a different jurisdiction;
	 
	 	(g)	 	in the case of a judgment obtained by default, there has been no manifest error in the
granting of such judgment;
	 
	 	(h)	 	the New York Judgment has neither been satisfied nor is it for any other reason not a
subsisting judgment; and
	 
	 	(i)	 	the Canadian Borrower subject to the New York Judgment was duly served with process leading
up to judgment or appeared to defend such process.

 

- 9 -

Qualifications

The opinions expressed in this opinion letter are subject to the following qualifications:

General Qualifications

	(a)	 	The legality, validity, binding effect and enforceability of each Alberta Security Document
or any judgment (including any New York Judgment) arising out of or in connection with each
Alberta Security Document may be limited by applicable bankruptcy, insolvency, winding-up,
reorganization, arrangement, moratorium, limitation, preference or other similar laws of
general application relating to or affecting the enforcement of the rights of creditors
generally. Without limiting the generality of the foregoing:

	 	(i)	 	the provisions in each Alberta Security Document relating to payment of costs
and expenses or indemnification may be unenforceable to the extent that an Alberta
Court decides that any payment required thereunder would derogate from the court’s
discretion in respect of the costs of and incidental to a proceeding or a step in a
proceeding, or would be inconsistent with the court’s determination by whom and to
what extent such costs shall be paid and counsel fees are subject to taxation;
	 
	 	(ii)	 	under the Judgement Interest Act (Alberta) interest after judgment may be
limited to a rate which is less than a rate specified in any Alberta Security
Document;
	 
	 	(iii)	 	section 347 of the Criminal Code (Canada) prohibits the payment of
“interest” at a “criminal rate” (as such terms are defined therein) - currently 60%
per annum; and
	 
	 	(iv)	 	under the provisions of the Currency Act (Canada), courts in Canada are
precluded from rendering any monetary judgments in any currency other than the lawful
currency of Canada and such judgments may be based on a rate of exchange in existence
on a date other than the date of payment.

	(b)	 	The legality, validity, binding effect and enforceability of each Alberta Security Document
may be limited by general principles of equity, and no opinion is given as to any specific
remedy that may be granted, imposed or rendered (including equitable remedies such as
specific performance and injunction). Without limiting the generality of the foregoing:

	 	(i)	 	notwithstanding any provisions of the Alberta Security Documents that
provide that certain certifications or determinations of fact be binding on the
parties, any certificate or determination provided thereunder may be

 

- 10 -

	 	 	 	subject to challenge in a court on the grounds of fraud, collusion, mistake on the
face of the certificate, or mistake on the basis that the certificate differed in
any material respect from the certificate contemplated in such provision;

	 	(ii)	 	any provision of any Alberta Security Document that provides for interest to
be paid at a higher rate after than before default, that provides for a forfeiture of
a deposit or any other property or that provides for a particular calculation of
damages upon breach may not be enforceable if it is interpreted by an Alberta Court
to be a penalty or if the Alberta Court determines that relief from forfeiture is
appropriate;
	 
	 	(iii)	 	a waiver or release of or limitation on rights or remedies available to the
Secured Parties in respect of future actions or omissions of any Secured Party, or
any agent or receiver and manager appointed by or on the application of any Secured
Party, may not be enforced by an Alberta Court;
	 
	 	(iv)	 	the enforceability of any Alberta Security Document may be limited by general
principles of law and equity relating to the conduct of a Secured Party prior to the
execution of, or in the administration or performance of that Alberta Security
Document, including, without limitation, (i) fraud, duress or undue influence,
misrepresentation and deceit, (ii) estoppel and waiver, (iii) laches and (iv)
reasonableness and good faith in the exercise of discretionary powers; and
	 
	 	(v)	 	the enforceability of any Alberta Security Document may be limited if there
has been any mutual mistake of fact.

	(c)	 	Provisions in the Alberta Security Documents purporting to sever invalid or unenforceable
provisions may not be enforceable as an Alberta Court may reserve to itself a decision as to
whether any provision is severable or otherwise of no force or effect.
	 
	(d)	 	No opinion is expressed as to the enforceability of any provision in any Alberta Security
Document which suggests that modifications, amendments or waivers that are not in writing
will not be effective, which purports to prevent the exercise of a right or set-off, a
defence by counterclaim or other rights or which provides that remedies may be exercised
cumulatively.
	 
	(e)	 	Our opinions in paragraph 6 only address statutes and regulations of general application in
the Province of Alberta and do not address or extend to (i) any necessary authorization,
permit consent, license, approval, acknowledgment,

 

- 11 -

	 	 	order or exemption from, registration or filing with, or notice to, any government
department or agency or any regulatory body or authority required by the Canadian Borrower
under Alberta Law in order to carry on its particular business, or (ii) any agreement the
Canadian Borrower may have entered into with, or any decision, order or award made by, any
government department or agency or any regulatory body or authority of the Province of
Alberta or of Canada.
	 
	(f)	 	An Alberta Court reserves the right to decline jurisdiction in any action relating to the
Credit Documents on the basis that the Province of Alberta is an inconvenient forum or that
concurrent or prior proceedings have been brought elsewhere, notwithstanding any waiver of
the right to raise such objection or defence in the Credit Documents.
	 
	(g)	 	The provisions of the Alberta Security Documents relating to the choice of Alberta law may
not be recognized if, or to the extent it is determined that, such choice of law was made to
evade mandatory provisions or public policy considerations of the law of another jurisdiction.
	 
	(h)	 	No opinion is expressed in this opinion letter on the application or compliance with
Section 510 of the Bank Act (Canada). Notwithstanding the foregoing, pursuant to Section 988
of the Bank Act (Canada), a contravention of Section 510 does not invalidate any Credit
Document if it is entered into in contravention of Section 510.
	 
	(i)	 	No opinion is expressed with respect to any provision of any Credit Document which requires
any obligation under the Credit Documents to be performed in any jurisdiction outside the
Province of Alberta where its performance will be illegal, unlawful, against public policy or
ineffective by virtue of the laws of that jurisdiction.
	 
	(j)	 	We express no opinion on the enforceability of any provisions of the Alberta Security
Documents which are inconsistent with or contrary to any provision of the Credit Agreement.

General Security Qualifications

	(k)	 	No opinion is expressed in this opinion letter with respect to any security interest in
Collateral that it is not identifiable or traceable or in any proceeds of Collateral that are
not identifiable or traceable.
	 
	(l)	 	No opinion is expressed as to whether a security interest may be created in permits, quotas,
licenses or intellectual property which are held by or issued to the Canadian Borrower to the
extent the same do not constitute property or prohibit assignment.

 

- 12 -

	(m)	 	No opinion is expressed in this opinion letter on any security interest expressed to
be created in property, or expressed to be creating an interest in property, to which the
APPSA does not apply in accordance with the provisions of the APPSA, or the validity of
which is not governed by the APPSA in accordance with sections 5 to 8.1 of the APPSA.
	 
	(n)	 	No opinion is expressed in this opinion letter on any mortgage, charge or security interest
to the extent it constitutes a transfer of interest or claim in any policy of insurance or
contract of annuity.
	 
	(o)	 	No opinion is expressed in this opinion letter on the creation, validity, effect or
perfection of any mortgage, charge or security interest in real property, or any personal
property that is or becomes a fixture or any building materials that are or become affixed to
real property.
	 
	(p)	 	The APPSA may affect the enforcement of certain rights and remedies contained in the Alberta
Security Documents to the extent those rights and remedies are inconsistent with or contrary
to the provisions of the APPSA. The APPSA also imposes certain obligations on secured parties
(including the duty to exercise rights and perform duties in good faith and in a commercially
reasonable manner). Provisions in the Security Agreements which purport to waive or vary any
rights given to the Canadian Borrower under, or obligations imposed on any Secured Party
under, the APPSA may not be effective or enforceable.
	 
	(q)	 	No opinion is expressed in this opinion letter as to title to, rights in or the beneficial
interest of the Canadian Borrower or any other person in any real or personal property or as
to the priority of any mortgage, charge or security interest contained in or to be granted
pursuant to any Alberta Security Document. Our opinions expressed in paragraph 8 do not
address priority or the fact that more particularized registrations may be made relative to
certain types of Collateral specified in each APPSA (such as motor vehicles and serial number
goods) which would afford greater protection to the Secured Parties against competing claims
to the same type of Collateral.
	 
	(r)	 	No opinion is expressed as to whether a security interest may be created in collateral
consisting of agreement, other than a receivable or account (as defined in the APPSA) to the
extent that the terms thereof prohibit assignment or require a consent, approval or
authorization which has not been made or given. An assignment of a debt or account will not
be binding on the obligor to the extent that such debtor or account is paid or is otherwise
discharged before notice of assignment is given to the obligor, together with the direction
to pay the same to the Lender.

 

- 13 -

	(s)	 	A receiver or receiver and manager appointed pursuant to any Alberta Security Document
may, for certain purposes, be treated by an Alberta or Alberta Court as being the agent of
the Collateral Agent and not solely the agent of the Canadian Borrower (and the Collateral
Agent may not be deemed to be acting as the agent and attorney of the Canadian Borrower in
making such appointment), notwithstanding any provision in any Alberta Security Document to
the contrary.
	 
	(t)	 	An Alberta Court or a Alberta Court may require that the Canadian Borrower be given a
reasonable time to make payment of any amount demanded under the Alberta Security Document to
which it is party, and the Collateral Agent may be precluded from enforcing the security
created under the Alberta Security Documents during such period of time.
	 
	(u)	 	No opinion is expressed in this opinion letter as to whether it may be necessary in
connection with the enforcement of any Alberta Security Document for any Secured Party or any
other persons proposing to acquire, own or operate all or any part of the property secured
thereunder to give any notice or obtain or effect any licence, franchise, permit, consent,
approval, registration or other authorization or exemption in connection therewith.
	 
	(v)	 	A security interest, mortgage or charge in (i) any goods purchased under any licence, (ii)
an approval, privilege, quota, franchise, permit or lease, (iii) an instrument, contract,
account or agreement, (iv) investment property or (v) property subject to any of the Canada
Shipping Act (Canada), the Copyright Act (Canada), the Integrated Circuits Topography Act
(Canada), the Industrial Designs Act (Canada), the Patent Act (Canada), the Plant Breeders ’
Rights Act (Canada), the Canada Transportation Act (Canada), the Trade-marks Act (Canada),
the Financial Administration Act (Canada), the Land Titles Act (Alberta), the Registry Act
(Alberta), the Railways Act (Alberta), the Land Title Act (Alberta), the Petroleum and
Natural Gas Act (Alberta), the Coal Act (Alberta) or the Mineral Tenure Act (Alberta) ( (the
“Special Property Statutes”) may not be perfected, valid, binding or enforceable because of
the nature or terms of such property, or to the extent the nature or terms of such property
or any statute or regulation require a consent, approval, acknowledgment, notice or other
authorization or registration which has not been given or made.
	 
	(w)	 	No opinion is expressed in this opinion letter as to (i) the validity, effect or
enforceability under any of the Special Property Statutes of any security interest, mortgage
or charge expressed to be created in favour of the Collateral Agent under any Alberta
Security Document in any real or personal property of the Canadian Borrower or (ii) any
required registration, filing, recording or notice under any of the Special Property Statutes
in respect of such security interest in any personal property subject to the Special Property
Statutes.

 

- 14 -

	(x)	 	Our opinions in paragraphs 9 do not address any of the following matters:

	 	(i)	 	any required registration, filing, recording or notice in respect of any
fixtures, goods that may become fixtures, crops, minerals or hydrocarbons to be
extracted, or timber to be cut; or
	 
	 	(ii)	 	any required caution filing or other registration, filing, recording or
notice which may be required in certain circumstances where goods are intended to be
brought or are brought into the Province of Alberta.

	(y)	 	No opinion is expressed on the effect of any provision of the Alberta Security Documents
that deems the Collateral Agent, any other Secured Party, or any agent or receiver and
manager appointed by any of them, to have exercised reasonable care or to have acted in a
commercially reasonable manner.
	 
	(z)	 	No opinion is expressed on the effect or enforceability of any agreement by the Canadian
Borrower contained in the Alberta Security Documents that any action or inaction by the
Collateral Agent, or any agent or receiver and manager appointed by or on the application of
the Collateral Agent, is commercially reasonable or not commercially unreasonable.
	 
	(aa)	 	the validity of the security interests in personal property:

	 	(i)	 	in respect of: (A) goods (as defined in the APPSA); and (B) possessory
security interests in chattel paper, negotiable documents of title, instruments or
money (as such terms are defined in the APPSA) is, subject to paragraph (ii)(B)
below, governed by the laws of the jurisdiction where such personal property is
situated when the security interests attach and in this regard we have assumed such
personal property was situated in the Province of Alberta at the time of attachment;
	 
	 	(ii)	 	in respect of: (A) intangibles (as defined in the APPSA); (B) goods which are
of a kind that are normally used in more than one jurisdiction (if such goods are
equipment (as defined in the APPSA) or are inventory (as defined in the APPSA) leased
or held for lease by the Canadian Borrower to others); and (C) a non-possessory
security interest in chattel paper, negotiable documents of title, instruments or
money, is governed by the laws of the jurisdiction where the Canadian Borrower is
located (as determined in the PPSA) at the time the security interests attach and in
this regard, we have assumed that the Canadian Borrower was located in the Province of
Alberta at the time of attachment; and
	 
	 	(iii)	 	in respect of investment property (as defined in the APPSA), is governed by
the laws of the jurisdiction:

 

- 15 -

	 	(A)	 	where the certificate is located in the case of certificated
securities (as defined in the APPSA);
	 
	 	(B)	 	the issuer’s jurisdiction in the case of uncertificated
securities (as defined in the APPSA);
	 
	 	(C)	 	the security intermediary’s jurisdiction in the case of a
security entitlement or a securities account (as such terms are defined in
the APPSA); or
	 
	 	(D)	 	the futures intermediary’s jurisdiction in the case of a
futures contract or a futures account (as such terms are defined in the
APPSA),

	 	 	 	in each case determined at the time the security interests attach.

Transaction Specific Qualifications

	(bb)	 	No opinion is expressed on the validity, effect or enforceability of any waiver of jury trial
contained in any Credit Document.
	 
	(cc)	 	No opinion is expressed on the validity or effect of any service of process served in
accordance with the provisions of any Credit Document if such service is not made in
compliance with the Rules of Civil Procedure for the Province of Alberta.
	 
	(dd)	 	Except as expressly set forth herein, we express no opinion as to the perfection or ranking
of the Security Interests nor as to any registrations, filings or recordings of the Security
Documents or the security interests which may be required under the laws of the Province of
Alberta.

Reliance

This opinion is given for the sole benefit of the addressees and their respective successors and
assigns in connection with the transactions contemplated in the Credit Agreement and may not be
relied upon by any other party or in respect of any other transaction without our express written
consent.

Yours
truly,
 
 

 

 

SCHEDULE “A”

APPSA REGISTRATIONS

The registration period of the Financing Statements will expire, and the security interests
perfected thereby will become unperfected, 7 years from the date of registration unless the
registration period is extended prior to that time by registration under the APPSA of financing
change statements designated as a renewal. We assume no responsibility for registering these
financing change statements or for reminding you of the date by which it must be registered.

Any change in the name of the Canadian Borrower and any transfer by the Canadian Borrower of any
collateral will require the filing of a financing change statement under the APPSA:

	 	(a)	 	within 15 days of the transfer if the Collateral Agent consented to the transfer; or
	 
	 	(b)	 	within 30 days after the later of (i) the transfer, if the Collateral Agent
had prior knowledge of the transfer and if the Collateral Agent had, at the time of
the transfer, the information required to register a financing change statement and
(ii) the day the Collateral Agent learns the information required to register a
financing change statement; or
	 
	 	(c)	 	within 30 days after the Collateral Agent learns of the change of name and the
new name of the Canadian Borrower.

We assume no responsibility for making this type of registration nor for notifying you if
circumstances arise which necessitate this type of registration.

Additional registrations may be required in other jurisdictions if any of the collateral is
removed from Alberta or if the Canadian Borrower moves its principal place of business or other
locations.

 

 

	Financing Statement PPSA Security Agreement or Sale of Goods Acts s.26(2) or Factors Act
s.9(2) Type of Registration (Select one only) SA PPSA Security Agreement 1. What is the term of
Registration? Infinity 1 — 25 years 2. Does it cover Trust Indenture? Yes No sg Sale
of Goods Act s. 26(2) or Factors Act s.9(2) 1. What is the term of Registration? or Infinity 1 — 25
years : Debtor One Select one Business Individual Business Name or Last Name First Name Middle
Name CWD Windows and Doors, Inc. Street Address City Province Postal Code Birthdate yyyy/mm/dd
2008 — 48th Street S.E. Calgary Alberta T2B 2E5 Known) Debtor Two Select one Business
Individual Business Name or Last Name First Name Middle Name Street Address City Province Postal
Code Birthdate yyyy/mm/dd (if known) Secured Party Select one Business Individual secured
Party Code Business Name or Last Name First Name Middle Name General Electric Capital
Corporation Street Address City Province Postal Code 1500 W. Monroe St. 16th Floor Chicago
Illinois 60661 Collateral -Serial Number Gpods (If PPSA, applicableqnty Serial Number Year (yyyy)
Make and Model Category : General- Collateral All of the Debtor’s present and
after-acquired personal property Your Reference Number Authorized Signature Name of Person
Authorized to Complete this Form (PRINT) Telephone Number Call Box Number Date of Submission
(yyyy/mm/dd) REG3318 (2007/01) Reent 0ffiCe Use 0ny Page of

 

 

	Debtor/Secured Party Solicitor/Agent Additions Debtor” Setecf one Business Individual Business
Name or Last Name First Name Middle Name I General Electric Capital Corporation, as Collateral
Agent l Street Address City Province Postal Code 1500 W. Monroe St. 16th Floor Chicago Illinois
60661 If Court Order, Gender ? VmlramlM indicate Occupation M F Debtor Select one
Business ED Individual Business Name or Last Name First Name Middle Name Street Address City
Province Postal Code If Court Order, Of known) indicate Occupation , ,
M F Debtor Select one ED Business ED Individual Business Name or Last Name First Name
Middle Name Street Address City Province Postal Code If Court Orrior Gender Birthdate yyyy/mm/dd
iruourturaer,(ifknown) , indicate Occupation M F Secured Party Select one
Business ED Individual Secured Business Name or Last Name First Name Middle Name Party Code Street
Address City Province Postal Code Secured Party Select one, EH Business Individual Secured Business
Name or Last Name First Name Middle Name Party Code Street Address City Province Postal Code
Solicitor/Agent (If Court Order or Receiver’s Report) Personal Property Registry (P.P.R.) Party
Code Name in Full Street Address City Province Postal Code Telephone Number Fax Number Call Box
Number Reference Number Date of Submission (yyyy/mm/dd) REG3319 (2007/01) Registry Agent Office Use
Only Page of

 

 

EXHIBIT J-3

June 9, 2008

Attorneys at Law

Baton Rouge

Birmingham

Houston

Jackson

Memphis

Mobile

Nashville

New Orleans

Washington, DC

Credit Suisse, as Administrative Agent

General Electric Capital Corporation, as Collateral Agent

to the Lenders referred to below

Eleven Madison Avenue

New York, New York 10010-3629

			
	Re:	 	Credit Agreement (“Credit Agreement”) dated as of
June 9, 2008, by and among Ply Gem Holdings, Inc., a Delaware corporation
(“Holdings”), Ply Gen Industries Inc., a Delaware corporation
(the “Specified U.S. Borrower”), CWD Windows and Door, Inc., a
Canadian corporation (the “Canadian Borrower”), the subsidiaries
of the specified U.S. Borrower from time to time party hereto as
Borrowers and Guarantors, each Lender from time to time party thereto
(the “Lenders”), Credit Suisse (the “Administrative
Agent”), as Administrative Agent for the Lenders, and General
Electric Capital Corporation, (the “Collateral Agent”), as
Collateral Agent for the Lenders, Credit Suisse, Toronto Branch, as
Canadian Swing Line Lender and Canadian L/C Issuer and Credit Suisse
Securities (USA) LLC, a sole Lead Arranger and Sole Bookrunner, as
Syndication Agent, and Documentation Agent.

Ladies and Gentlemen:

     We have been engaged as special legal counsel to New Alenco Extrusion, Ltd., a
Texas limited partnership, New Alenco Window, Ltd., a Texas limited partnership,
and New Glazing Industries, Ltd., a Texas limited partnership (each individually a
“Partnership,” and collectively, the “Partnerships”) for the
purpose of delivering a legal opinion in connection with the Partnerships’
execution and delivery of each of the documents defined as the Credit Documents on
Schedule I hereto (collectively, the “Credit Documents”), to which
each Partnership is a party.

     This opinion is being furnished to you pursuant to Section 4.01(a)(xiii) of
the Credit Agreement. Except as otherwise defined herein and in Schedule I
hereto, capitalized terms used herein have the meanings assigned to such terms in
the Credit Agreement. Other terms that are defined in the Uniform Commercial Code
as in effect in the State of Texas (the “Texas UCC”) have the same meaning
when used herein unless otherwise indicated by the context in which such terms are
so used.

     In arriving at the opinions expressed below, we have examined and relied on an
original or copy, identified to our satisfaction, of each of the Credit Documents.
In addition, we have examined the Credit Agreement and such other documents and
partnership records (collectively, the “Other

One Houston Center • 1221 McKinney, Suite 4400 • Houston, Texas 77010 • (713) 652.5151 • Fax (713) 652.5152 • www.adamsandreese.com

 

 

June 9, 2008

Page 2

Documents”) and such questions of law as we have deemed necessary or appropriate for the
purposes of this opinion. As to facts material to our opinion, we have made no independent
investigation of such facts and have relied on such certificates from officers and representatives
of the Partnerships, and from public officials, as we have deemed necessary or appropriate for the
basis of this opinion. In making the foregoing examinations, we have assumed that, as to the
factual matters, all representations and warranties and other factual statements made in the Credit
Documents (other than those which are expressed herein as our opinions) were and are true, correct
and complete in all material respects, and we made no independent investigation of such matters. We
have assumed that any representation or statement qualified by “the best of knowledge” of the party
making such representation or statement, or by similar qualification, is correct without such
qualification. As to all matters in which a person or entity making a representation referred to
above has represented that such person or entity either is not a party to, or does not have, or is
not aware of, any plan or intention, understanding or agreement, we have assumed that there is in
fact no such plan, intention, understanding or agreement. Moreover, to the extent that any of the
Other Documents is governed by the laws of any jurisdiction other than the jurisdictions that are
the subject of this opinion, our opinion relating to those Other Documents is based solely upon the
plain meaning of their language without regard to interpretation or construction that might be
indicated by the laws governing those Other Documents.

     We do not represent the Partnerships on a general or regular basis and, accordingly, have no
detailed information concerning its respective businesses or operations. Therefore, nothing
contained herein should be construed as an opinion regarding the Partnerships or their operations
satisfying or otherwise complying with any local laws or ordinances or laws or ordinances of
general application pertaining to the particular business and operations of the Partnerships.

     In rendering the opinions herein set forth, we have assumed, with your permission, and
without independent investigation on our part, the following:

     (i) each of the Other Documents examined by us has been duly authorized, executed and
delivered by each of the parties thereto, that each such party has the requisite power and
authority to execute, deliver, and perform the Other Documents, and that the Other
Documents constitute the legal, valid and binding obligation of each such party thereto
enforceable against it in accordance with its terms;

     (ii) the Credit Documents have been duly authorized by each of the parties thereto
(other than the Partnerships), that each such party (other than the Partnerships) has the
requisite power and authority to execute, deliver and perform the Credit Documents to which
it is a party, that the Credit Documents have been duly authorized, executed and delivered
by each of the parties thereto (other than the Partnerships), and that the Credit Documents
constitute the legal, valid and binding obligations of each party thereto, enforceable in
accordance with their terms;

 

 

June 9, 2008

Page 3

     (iii) the Credit Agreement has been duly authorized by each of the parties thereto,
that each such party has the requisite power and authority to execute, deliver and perform
the Credit Agreement to which it is a party, that the Credit Agreement has been duly
authorized, executed and delivered by each of the parties thereto, and that the Credit
Agreement constitutes the legal, valid and binding obligations of each party thereto,
enforceable in accordance with their terms;

     (iv) the legal capacity of natural persons;

     (v) that the laws of any jurisdiction other than the jurisdictions that are the
subject of this opinion do not affect the terms of the Credit Agreement and the Credit
Documents;

     (vi) there are no extrinsic agreements or understandings among the parties to the
Credit Agreement and the Credit Documents that would modify, amend or affect the
interpretation of the terms of the Credit Agreement and the Credit Documents or the
respective rights or obligations of the parties thereunder;

     (vii) the Collateral Agent and Administrative Agent have been and are the duly
appointed agents of each of the Lenders pursuant to the Credit Agreement and the applicable
Credit Documents, and the names of the Collateral Agent and Administrative Agent are as set
forth in the Credit Agreement and the Credit Documents;

     (viii) that each party to the Credit Agreement and the Credit Documents has received
adequate consideration under applicable law for its execution and delivery thereof; and

     (ix) all documents submitted to us as originals are authentic, all documents submitted
to us as certified or photostatic copies conform to the authentic original documents, all
signatures on all documents submitted to us for examination are genuine, the Credit
Agreement and the Credit Documents will be executed in the form received, and all public
records reviewed are accurate and complete.

     Based upon the foregoing, and in reliance thereon, and subject to the assumptions,
qualifications, exceptions and limitations set forth herein, we are of the opinion, having due
regard for such legal consideration as we deem relevant, that:

     1. Each Partnership is a limited partnership, validly existing and in good standing under the
laws of the State of Texas. This opinion is based solely upon the certificates relating to each
Partnership issued by the Secretary of State of the State of Texas dated June 3, 2008, and Texas
Comptroller of Public Accounts dated June 3, 2008, and such opinion is limited to the meaning
ascribed to such certificates.

 

 

June 9, 2008

Page 4

     2. Each Partnership:

          (a) has the requisite limited partnership power and authority (i) to execute and deliver the
Credit Documents to which such Partnership is a party, (ii) to perform its obligations under the
Credit Documents to which such Partnership is a party, and (iii) to our knowledge, to own its
properties and conduct its business;

          (b) has taken the limited partnership action necessary to authorize the execution and
delivery of, and performance of its agreements in, the Credit Documents to which such Partnership
is a party; and

          (c) has executed and delivered each of the Credit Documents to which such Partnership is a
party.

     3. The execution and delivery of, and performance by each Partnership of its obligations
under each Credit Document to which it is a party do not:

          (a) violate the Certificate of Limited Partnership or the Agreement of Limited Partnership of
such Partnership; or

          (b) to our knowledge, violate any Applicable Laws (defined below), in each case, which would
have a Material Adverse Effect (defined below).

     For purposes of this opinion, the term “Material Adverse Effect” when used in
connection with any Partnership means any change, effect or circumstance that is materially
adverse to the business, assets, financial condition or results of operation of such Partnership.

     4. All Government Approvals (defined below) required for the execution and delivery of the
Credit Documents to which such Partnership is a party, have been obtained or made, except as
described in paragraph 6 below.

     5. The U.S. Security Agreement is effective to create a security interest in right, title,
and interest of each Partnership in the Article 9 Collateral (as defined below) in favor of the
Collateral Agent.

     6. (a) Under the Texas UCC (including the choice of laws provisions thereof) while a debtor
is “located” in a jurisdiction, the local law of that jurisdiction governs the perfection of a
security interest in that portion of the Article 9 Collateral in which a security interest may be
perfected by filing a financing statement under the UCC as in effect in the state of filing of
such debtor (the “Filing Collateral”). Under the Texas UCC, the Partnerships are each
“located” in Texas, therefore, the local law of Texas governs perfection of a security interest in
Partnerships’ rights in the Filing Collateral.

 

 

June 9, 2008

Page 5

          (b) Upon the filing of the fully authorized financing statements, attached hereto as
Exhibits A-1, A-2 and A-3 (the “Financing Statements”), in the office of the
Secretary of the State of Texas, the security interest created under the U.S. Security Agreement
with respect to the Partnerships’ right, title, and interest in the Filing Collateral will be
perfected. Each of the Financing Statements is in proper form for filing in the office of the
Secretary of the State of the State of Texas. As used herein the term “Article 9
Collateral” means the Collateral (as defined in the U.S. Security Agreement, and herein defined
as the “Collateral”) to the extent that such Collateral is property in which a security
interest may be created under Article 9 of the Texas UCC.

          The opinions set forth above are subject in all respects to the following qualifications,
exceptions, assumptions and limitations:

     (a) (i) We express no opinion as to the creation or perfection of the Collateral
Agent’s security interests in any Article 9 Collateral constituting accounts that are due
from the United States of America or any state of the United States of America or any
agency or department of the United States of America. We also express no opinion as to the
sufficiency of any description of any commercial tort claims included in the Article 9
Collateral. (ii) We further note that, in the case of any exercise of remedies by the
Collateral Agent under the U.S. Security Agreement that would result in a transfer of the
ownership of the property of any Partnership, such transfer may be subject to compliance
with the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

     (b) Other than as set forth in paragraphs 5 and 6 above, we express no opinion as to
the creation, perfection or priority of any security interest. The opinion set forth in
paragraph 6 above regarding the perfection of security interests is subject to the
following:

	 	(1)	 	We have assumed: (a) value has been given for
all security interests and liens created under the Credit Agreement and
the Credit Documents; (b) all descriptions reasonably and accurately
identify the property being described or intended to be described; (c)
each Partnership has the power to transfer rights in the properties in
which it is purporting to grant a security interest within the meaning
of the Texas UCC; (d) the Article 9 Collateral does not constitute (i)
consumer goods, (ii) timber to be cut, (iii) farm products, (iv)
fixtures, or (v) as-extracted collateral; and (e) each Partnership is
not a transmitting utility under the Texas UCC.
	 
	 	(2)	 	We call to your attention that Sections 9.301
and 9.316 of the Texas UCC, contain and refer to rules under which the
laws of jurisdictions other than Texas would apply to the perfection,
and the effect of perfection or nonperfection, of a security interest.
We further call to your attention that Sections 9.310 and 9.312 of the
Texas UCC

 

 

June 9, 2008

Page 6

	 	 	 	describe situations in which filing is not necessary or is
ineffective to perfect a security interest.
	 
	 	(3)	 	The perfection of the Collateral Agent’s
security interest in any proceeds of the Article 9 Collateral will be
limited as provided in Section 9.315 of the Texas UCC.
	 
	 	(4)	 	We call to your attention that: (a) under
Section 9.316 of the Texas UCC, perfection of any security interest in
the Article 9 Collateral will lapse (i) wherein the time perfections
would have ceased under the law of the applicable jurisdiction, (ii)
four months after the Partnership changes its location to another
jurisdiction or (iii) one year after the Partnership transfers the
Article 9 Collateral to a Person (as defined in the Texas UCC) who
thereby becomes a debtor under the Credit Agreement and the Credit
Documents and who is located in another jurisdiction, unless, in
either case, appropriate steps are taken to perfect such security
interest in such other jurisdiction before the expiration of such
four-month or one-year period, as applicable; (b) under Section 9.507
of the Texas UCC, if the Partnership changes its name so as to make
the Financing Statements seriously misleading, then perfection will
lapse as to any Article 9 Collateral acquired more than four months
after such change unless one or more appropriate financing statements
indicating the new name of such Partnership are properly filed before
the expiration of such four-month period which renders the Financing
Statement not seriously misleading; and (c) Section 9.508 of the Texas
UCC requires the filing of a new financing statement to continue
perfection when the financing statement becomes seriously misleading
as a result of the difference between the name of an original debtor
and a new debtor.
	 
	 	(5)	 	We note that the effectiveness or perfection of
the security interests in the Article 9 Collateral may be impaired,
lost or adversely affected as to such property, or portions thereof,
that (A) as provided in Section 9.336 of the Texas UCC, lose its or
their identity or become part of a product or mass, (B) pursuant to
Section 9.320 of the Texas UCC, are goods purchased by a buyer in the
ordinary course of business, (C) pursuant to Section 9.321 of the Texas
UCC, are general intangibles licensed or goods leased in the ordinary
course of business, (D) are goods purchased by a buyer other than in
the ordinary course of business as provided in Section 9.323(d) of the
Texas UCC, (E) are chattel paper, instruments, documents, securities,
financial assets or security entitlements with respect to which a
purchaser may take free of a security interest under Sections 9.330 and
9.331 of the Texas

 

 

June 9, 2008

Page 7

	 	 	 	UCC, or (F) are goods with respect to which certain buyers may take
free of a security interest under Section 9.337 of the Texas UCC.
	 
	 	(6)	 	We express no opinion with respect to the
effect of applicable law providing for liens securing the claims of
mechanics, materialmen, contractors and other like persons, liens for
wages, and liens securing claims of governmental authorities for taxes
and similar liens which may be applicable to the Article 9 Collateral.

     (c) We express no opinion with respect to the effect of:

	 	(1)	 	Section 552 of the Bankruptcy Code (11 U.S.C.
§552) (relating to property acquired by a pledgor after the
commencement of a case under the United States Bankruptcy Code with
respect to such pledgor) or Section 506(c) of the Bankruptcy Code (11
U.S.C. §506(c)) (relating to certain costs and expenses of a trustee
in preserving or disposing of collateral);
	 
	 	(2)	 	in the case of property which becomes
collateral after the date hereof, Section 547 of the United States
Bankruptcy Code (the “Bankruptcy Code”) which provides that a
transfer is not made until the debtor has rights in the property
transferred, so a security interest in after-acquired property which
is security for other than a contemporaneous advance may be treated as
a voidable preference under the conditions (and subject to the
exceptions) provided by Section 547; and
	 
	 	(3)	 	Section 364 of the Bankruptcy Code which
provides that the extension of secured credit after the commencement
of a case under the Bankruptcy Code requires court approval.

     (d) In rendering the opinions expressed in this opinion letter, we have made no
examination of and express no opinion with respect to: (i) title to or, except as to
adequacy of form, the legal descriptions of any Collateral; (ii) the nature or extent of the
Partnership’s rights in, or title to, any Collateral; or (iii) the existence or
non-existence of liens, security interests, charges or encumbrances thereon or therein
actually of record. We have not independently verified the existence, condition, location or
ownership of any Collateral. Additionally, we express no opinion as to Collateral to the
extent that (as stated in Section 9-109 of the Texas UCC) Article 9 of the Texas UCC is not
applicable or which is subject to a state statute or a statute or treaty of the United
States which provides for a certificate of title or national or international registration.

     (e) The opinions expressed herein are as of the date hereof only, and we assume no
obligation to update or supplement such opinions to reflect any fact or circumstance that

 

 

June 9, 2008

Page 8

may hereafter come to our attention, or any amendment to the Credit Agreement or the Credit
Documents that may hereafter become effective, or any change in law that may hereafter
occur or become effective.

     (f) We do not assume responsibility for (i) the accuracy and completeness or fairness
of any information of a factual nature; including, but not limited to, financial information
furnished or representations and warranties contained in the Credit Agreement or the Credit
Documents or (ii) the fulfillment, completion or performance of any covenants or agreements
contained in the Credit Agreement or the Credit Documents.

     (g) With respect to references herein to “known to us”, “to our knowledge” or words or
phrases of similar import (whether or not modified by any additional phrases), such
references mean the actual, current knowledge that those attorneys of this firm who devoted
substantive attention to the transactions to which this opinion relates (not to the
knowledge of the firm generally) have obtained from the following, which constituted the
examination for the purposes of the applicable opinions: (i) their review of documents in
connection with rendering this opinion, and the due diligence performed in connection
therewith, which review and due diligence were limited to reviewing the Credit Agreement,
the Credit Documents and Other Documents, the exhibits and schedules thereto, the
organizational documents of the Partnerships and certificates of officers of the
Partnerships and which due diligence did not include any examination of courts, boards,
other tribunals or public records with respect to any litigation, investigation or
proceedings, or judgments, orders or decrees, in any event applicable to the Partnerships
or any of their respective properties, (ii) their participation (if any) in the negotiation
of the Credit Agreement or the Credit Documents and (iii) representations and warranties of
the Partnerships set forth in the Credit Agreement or the Credit Documents, or otherwise
made to us in certifications and other writings. Except as otherwise stated in this
opinion, we have undertaken no independent investigation or verification of such matters.

     (h) For purposes of our opinion, “Applicable Laws” means those laws of the
State of Texas which, in our experience, are normally applicable to transactions of the
type contemplated by the Credit Agreement and the Credit Documents. Furthermore, the term
“Applicable Laws” does not include, and we express no opinion with regard to any:
(i) statutes, administrative decisions, ordinances, rules and regulations of any political
subdivision (whether at the federal, state, regional or local level); (ii) conflict of law
principles and choice-of-law statutes and rules; (iii) statutes, laws, rules and
regulations relating to: (A) pollution or protection of the environment, (B) zoning, land
use, usury, building or construction, (C) occupational, safety and health or other similar
matters, (D) labor, employee rights and benefits, including the Employment Retirement
Income Security Act of 1974, as amended, (E) the regulation of utilities, or matters
pertaining to the acquisition, transaction, transportation, storage, or use of energy
sources used in connection therewith or generated thereby, (F) antitrust, unfair
competition and trade, including but not limited to the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, (G) taxation or other

 

 

June 9, 2008

Page 9

similar matters, (H) copyright, patent and trademark, (I) securities, (J) fiduciary duty
requirements, (K) fraudulent transfer or fraudulent conveyance, (L) racketeering, and (M)
the regulation of banks or the conduct of their business; (iv) the Foreign Corrupt Practices
Act; and (v) the Uniting and Strengthening America by Producing Appropriate Tools Required
to Intercept and Obstruct Terrorism Act, and in each case with respect to each of the
foregoing, (X) as construed or enforced pursuant to any judicial, arbitral or other decision
or pronouncement, (Y) as in effect in any jurisdiction, and (Z) including, without
limitation, any and all authorizations, permits, consents, applications, license, approvals,
filings, registrations, publications, exemptions and the like required by any of them.

     (i) For purposes of our opinion, “Government Approvals” means any order, consent,
approval, license, authorization or validation of, filing, recording, or restriction with,
notice to or exemption by, any Texas governmental authority pursuant to any Applicable
Laws.

     (j) This opinion is limited to the laws of the State of Texas.

     This letter constitutes a legal opinion letter issued by our firm only as to the matters set
forth above, and should not be construed as a guarantee, warranty or as any other type of document
or instrument. In this regard, it is only our professional judgment as to the specific questions
of law addressed, based on our professional knowledge and judgment at this time and is prepared
and rendered in accordance with the standard of care applicable to opinion letters issued by law
firms and/or lawyers located in the State of Texas.

     The opinions herein have been furnished to Administrative Agent, Collateral Agent and the
Lenders and are solely for the benefit of the Administrative Agent, Collateral Agent and the
Lenders and their respective assigns and participants, and may not be quoted to or relied upon by
(x) any other person or (y) by you or any other person in any other context without the prior
written consent of the undersigned.

Very truly yours,

Adams and Reese LLP

 

 

June 9, 2008

To the Lenders party to the 
Credit
Agreement referred to below, 
Credit
Suisse, as Agent and 
General Electric
Capital Corporation, as Collateral Agent

			
	Re:	 	Ply Gem Industries, Inc. — $150,000,000 Senior Secured Revolving
Credit Facility (the “Credit Agreement”)

Ladies and Gentlemen:

     We have acted as special counsel in the State of Ohio (the “State”) to Great
Lakes Window, Inc., an Ohio corporation (“GLW”), and Alcoa Home Exteriors, Inc., an
Ohio corporation (“AHE”) (each a “Company” and collectively, the “Companies”), in
connection with (i) the execution and delivery by each Company as a “Grantor” of the
U.S. Security Agreement dated June 9, 2008 (the “Security Agreement”) among Ply Gem
Industries, Inc., a Delaware corporation (the “U.S. Borrower”), Ply Gem Holdings,
Inc. (“Holdings”), each of the Grantors named in the Security Agreement (the
“Grantors”), Credit Suisse as administrative agent (the “Agent”) and General
Electric Capital Corporation, as collateral agent (the “Collateral Agent”), (ii) the
execution and delivery by each Company as a “Guarantor” of the U.S. Guaranty dated
June 9, 2008 (the “Guarantee”) among the U.S. Borrower, Holdings, each of the
Guarantors named in the U.S. Guaranty and the Collateral Agent, (iii) the execution
and delivery by each Company of the Lien Subordination and Intercreditor Agreement
dated June 9, 2008 (the “Intercreditor Agreement”) among the Collateral Agent, U.S.
Bank National Association, as trustee and noteholder collateral agent, the U.S.
Borrower, Holdings and certain subsidiaries of the U.S. Borrower and (iv) the
consummation of the transactions contemplated by the Credit Agreement, among, among
others, the U.S. Borrower, Holdings, CWD Windows and Doors, Inc., as the Canadian
borrower, certain banks and financial institutions from time to time party thereto
as lenders, the Collateral Agent and the Agent, for the sole purpose of rendering
certain opinions relative to laws of the State with regard to the Companies and, in
particular, with regard to the Guarantee and the Security Agreement (the
Intercreditor Agreement, the Guarantee, the Security Agreement, and the Intellectual
Property Security Agreement by U.S. Borrower, Holdings, the Grantors (as defined
therein, in favor of Collateral Agent dated June 9, 2008, are collectively referred
to hereinafter as the “Security Documents”).

     Initial capitalized terms not otherwise defined herein, unless the context
clearly requires a different meaning, shall have the meaning ascribed to such terms
in the Security Agreement.

 

 

The Lenders,

Credit Suisse, as Agent and

General Electric Capital Corporation, as Collateral Agent

June 9, 2008

Page 2

     In addition to the Security Documents, in rendering our opinions we have reviewed and
relied upon: (x) the financing statements attached hereto on Schedule I (the “Financing
Statements”); (y) the certificate of the Secretary of the Companies as attached hereto as Exhibit
“A” (the “Officer Certificate”) with regard to the matters certified therein, inclusive of the
articles of incorporation, as amended, of each Company (the “Articles”), the bylaws, as amended,
of GLW (the “GLW Bylaws”), the regulations, as amended, of AHE (the “AHE Regulations”), each as
attached to the Officer Certificate (collectively, the Articles, GLW Bylaws, and the AHE
Regulations, the “Organizational Documents”), and the relevant resolutions of the Board of
Directors of each Company as attached to the Officer Certificate; and (z) such other certificates,
documents, and records as we have deemed relevant to our opinions and the factual assumptions
underlying the legal conclusions set forth herein.

     Whenever our opinion with respect to the existence or absence of facts is indicated to be
based on our knowledge or awareness as indicated by the use of the words “to our knowledge” or
“known to us,” we are referring to the actual, present knowledge of the particular Marshall &
Melhorn, LLC attorneys who have represented each Company and are indicating that during the course
of such representation no information has come to the attention of such attorneys which would give
such attorneys current actual knowledge of the existence of the facts so qualified. The term
“knowledge” further does not confirm nor is it intended to imply that the lawyers drafting this
opinion letter have made inquiry of one or more representatives of the Companies. Except as
expressly set forth herein, we have not undertaken any independent investigation, examination or
inquiry to determine the existence or absence of any facts (and have not caused the review of any
court file or indices) and no inference as to our knowledge concerning any facts should be drawn
as a result of the limited purpose of rendering this opinion letter. As such, we have not been
requested nor have we reviewed any agreement or other instrument to which either Company is a
party or by which any of the Companies’ properties or assets are bound except as expressly
referenced herein.

I. ASSUMPTIONS

     The opinions rendered in this letter are based upon the following assumptions, together with
such additional assumptions and qualifications as may be more specifically set forth in other
sections of this letter (collectively, “Assumptions”).

	 	1.	 	The negotiation, execution, delivery and performance of the Security Documents
were and
will be free from any fraud, misrepresentation, duress or criminal activity on the
part of any
party.
	 
	 	2.	 	All signatures on all original documents are genuine and authentic. All
documents that were
submitted to us as originals are authentic, true, accurate and complete. All
documents that
were submitted to us as certified or photographic copies conform to the original
documents,
which are themselves authentic, true, accurate and complete.
	 
	 	3.	 	All certificates and other statements, documents and records reviewed by us are
accurate and
complete, and all representations, warranties, schedules and exhibits contained in
the Security
Documents, with respect to the factual matters set forth therein, are accurate and
complete.

 

 

The Lenders,

Credit Suisse, as Agent and

General Electric Capital Corporation, as Collateral Agent

June 9, 2008

Page 3

	 	4.	 	Neither the Agent, the Collateral Agent nor any Lender has actual knowledge
that any of the factual assumptions or opinions contained herein are incorrect.
	 
	 	5.	 	All documents have been duly authorized, executed and delivered by all parties
(other than the Companies) and are enforceable against them in accordance with their respective
terms.
	 
	 	6.	 	Each natural person executing any of the Security Documents is legally
competent to do so,
and all signatures of the parties on the Security Documents are genuine.
	 
	 	7.	 	There are no other agreements or understandings (other than the Security
Documents and the
Credit Agreement) between or among Companies, the Grantors, the Agent, the Collateral
Agent nor any Lender that would expand, modify or otherwise affect the terms of the
Security
Documents or the respective rights or obligations of the parties thereunder and that
the
Security Documents and the Credit Agreement correctly and completely set forth the
complete
understanding of all parties thereto;
	 
	 	8.	 	Each of the Security Documents has been executed and delivered in the form reviewed by
us.

II. OPINIONS

     Subject to the foregoing Assumptions and the Limitations set forth below,
it is our opinion that:

	 	1.	 	The Companies (a) are Ohio corporations, duly organized and validly existing and
in good
standing under the laws of the State, (b) each has all requisite corporate or other
power and
authority to own its property and carry on its business in the State as now being
conducted,
and (c) each is qualified to do business and is in good standing
in the State.
	 
	 	2.	 	The Companies have all requisite corporate or other power and authority to
execute, deliver
and perform all of their respective obligations under the Security Documents to which
each is
a party.
	 
	 	3.	 	Each of the Security Documents to which each Company is a party have been duly
and validly
authorized, executed and delivered by the respective Company.
	 
	 	4.	 	The execution, delivery and compliance by the Companies with all of the
provisions of the
Security Documents and the performance of their respective obligations thereunder
will not
result in a violation of each Company’s respective Organizational Documents or, to
our
knowledge:, (i) any law of the State of Ohio, or (ii) any judgment, order or decree
of any Ohio
court or regulatory authority applicable to the Companies or their respective assets
or
properties.
	 
	 	5.	 	To our knowledge, other than the filing of the Financing Statements in the Office of the
Ohio

 

 

The Lenders,

Credit Suisse, as Agent and

General Electric Capital Corporation, as Collateral Agent

June 9, 2008

Page 4

	 	 	 	Secretary of State, no consent, approval, license or exemption by, or order
or authorization of, or filing, recording or registration with, any Ohio
governmental authority or regulatory body is required in connection with the
execution, delivery and performance by the Companies of each Security Document to
which it is a party.
	 
	 	6.	 	The provisions of the Security Documents are sufficient to create in favor
of the Collateral Agent for the benefit of the Secured Parties (as defined in the
Credit Agreement) a security interest in all right, title and interest of the
Companies in those items and types of collateral described in the Security Documents
(the “Collateral”) in which the Companies have rights and in which a security
interest may be created under Article 9 of the Ohio Uniform Commercial Code as
collateral security for the payment of the Obligations (as defined in the Credit
Agreement). The Financing Statements are in proper form for filing and, when filed in
the Office of the Ohio Secretary of State, are sufficient to perfect the security
interests created by the Security Documents in all right, title and interest of the
Company in those items and types of Collateral listed therein in which a security
interest may be perfected by the filing of a financing statement under the Uniform
Commercial Code as in effect in the State of Ohio.

III. LIMITATIONS

     The foregoing opinion is subject to the following exceptions and limitations (collectively,
“Limitations”):

	 	1.	 	The enforcement and enforceability of the Security Documents and of the rights
and remedies
set forth therein are subject to established and evolving principles of equity
(whether applied
by a court of law or equity), commercial reasonableness,
conscionability, good faith
and fair
dealing and to the limitations imposed by applicable law on: (i) the exercise and
availability of
remedies and defenses; (ii) the enforceability of purported waivers of rights and
defenses; and
(iii) the availability of equitable remedies and defenses generally.
	 
	 	2.	 	Our opinions above relating to the existence and good standing of each Company
under the
laws of the State of Ohio are based solely on the Good Standing Certificates issued
by the
Ohio Secretary of State dated May 30, 2008.
	 
	 	3.	 	The opinions expressed in this opinion letter are limited to the laws of the
State of Ohio and
the federal laws of the United States of America, and we assume no responsibility as
to the
applicability or the effect of any other laws. No opinion is expressed herein with
respect to
any laws of any county, city or other political subdivision of the State of Ohio.
	 
	 	4.	 	Our opinions set forth in this opinion letter are based upon the facts in
existence and laws in
effect on the date hereof and we expressly disclaim any obligation to update our
opinions
herein, regardless of whether changes in such facts or laws come to our attention
after the
delivery hereof.

 

 

The Lenders,

Credit Suisse, as Agent and

General Electric Capital Corporation, as Collateral Agent

June 9, 2008

Page 5

	 	5.	 	Insofar as our opinion relates to enforceability of any Security Document, such
opinion is subject to the qualifications that such enforceability may be limited by (i)
all applicable bankruptcy, insolvency (including, without limitation, all laws relating
to fraudulent conveyances and fraudulent transfers), receivership, reorganization,
moratorium, liquidation, conservation, dissolution or similar laws affecting the
enforcement of creditors’ rights generally, (ii) the rights of the United States under
the Federal Tax Lien Act of 1966, as amended, (iii) the application of general
principles of equity, including, without limitation, concepts of materiality,
reasonableness, unconscionability, diligence, good faith and fair dealing, regardless
of whether such enforceability is considered in a proceeding at law or in equity, and
(iv) certain laws and judicial decisions that may limit or make unavailable certain of
the rights and remedies provided in the Security Documents, except that such laws and
decisions do not, in our opinion, materially interfere with the practical realization
of the benefits contemplated by the Security Documents except for the economic
consequence of any procedural delay with may result from such laws
and decisions.
	 
	 	6.	 	No opinion is given on the enforceability of any provisions in the Security
Documents
obligating any party to pay attorneys’ fees and expenses.
	 
	 	7.	 	No opinion is given on the enforceability of any due on sale clause; due on
encumbrance
clause; prepayment or make-whole premium in the event that it is held to be a
penalty, an
unreasonable charge or anything other than a valid liquidated damages clause by a
reviewing
court.
	 
	 	8.	 	No opinion is given on the validity, binding effect or enforceability of
provisions, if any, in
the Security Documents that waive objection to jurisdiction or the manner of service
of
process; confess a judgment or authorize another to confess a judgment; establish
jurisdiction
or venue for disputes and causes of action; waive the right to trial by jury; create
self-help
remedies; impose indemnity liability on others for acts or omissions of the parties
thereto;
establish indemnities or transfer or attempt to transfer liabilities or risks under
any
environmental laws or regulations; appoint any person as attorney-in-fact; waive
rights to
contest a judgment or waive rights to notice and a court trial; or waive the right to
assert lack
of consideration or waive the requirements of good faith, notice and commercial
reasonableness under the Uniform Commercial Code (Chapter 1309 of the Ohio Revised
Code) (the “Ohio UCC”).
	 
	 	9.	 	We also express no opinion as to the following matters:

	 	(i)	 	(1) title to or rights in any of the Collateral, (2) the
perfection of any lien or security interest except as expressly set forth
above, or (3) the priority of any lien or security interest;
	 
	 	(ii)	 	The (a) creation of any security interest purported to be granted in or in
respect of the

 

 

The Lenders,

Credit Suisse, as Agent and

General Electric Capital Corporation, as Collateral Agent

June 9, 2008

Page 6

	 	 	 	following: (i) any real property or equipment used in farming
operations, farm products, crops, timber to be cut, as-extracted collateral,
or rights therein; (ii) policies of insurance (other than as proceeds of
Collateral), receivables due from any government or agency thereof, inventory
which is subject to any negotiable documents of title (such as negotiable
bills of lading or warehouse receipts), consumer goods, beneficial interests
in a trust, letters of credit or accounts resulting from the sale of any of
the foregoing; or (iii) any other property or assets, the creation of a
security interest in which is excluded from the coverage of the Ohio UCC, and
(b) the perfection of any security interest purported to be granted in (i)
any of the assets described under clause (a) above, (ii) except as
specifically provided herein, the effect of federal laws related to
“know-how,” copyrights, patents, trademarks, service marks, licenses, trade
secrets, trade names and other intellectual property, or (iii) any other
property or assets, the perfection of a security interest in which is subject
to (x) a statute or treaty of the United States which provides for a national
or international registration or a national or international certificate of
title for the perfection by recordation of a security interest therein or
which specifies a place of filing different from that specified in the Ohio
Revised Code for filing to perfect or record such security interest, (y) a
certificate of title statute, or (z) the laws of any jurisdiction other than
the State of Ohio or the United States;
	 
	 	(iii)	 	The enforceability of any lien on or security interest in any Collateral:

	 	(a)	 	consisting of goods of a consignor who has
delivered such goods to either
Company under a true consignment (as distinguished from a consignment
intended as security); and
	 
	 	(b)	 	as against a “buyer in the ordinary course of
business” (within the meaning
of the Ohio UCC) of the Collateral.

	 	(iv)	 	The continuation and perfection of the Collateral Agent’s
security interest in the proceeds of the Collateral are limited to the extent
set forth in the Ohio UCC;
	 
	 	(v)	 	We express no opinion as to any actions that may be required to
be taken periodically under the Ohio UCC or any other applicable law for the
effectiveness of any financing statements, or the validity or perfection of any
security interest, to be maintained;
	 
	 	(vi)	 	A security interest in any Collateral that constitutes
after-acquired collateral does not attach until the Company has rights in such
after-acquired Collateral;
	 
	 	(vii)	 	In the case of property which becomes part of the Collateral
after the date hereof, Section 552 of the Bankruptcy Reform Act of 1978, as
amended (the “Bankruptcy Code”) limits the extent to which property acquired
by a debtor after the

 

 

The Lenders,

Credit Suisse, as Agent and

General Electric Capital Corporation, as Collateral Agent

June 9, 2008

Page 7

	 	 	 	commencement of a case under the Bankruptcy Code may be subject to a
security interest arising from a security agreement entered into by the
debtor before the commencement of such case;
	 
	 	(viii)	 	In the case of property which becomes part of the Collateral after the date
hereof, Section 547 of the Bankruptcy Code provides that a transfer is not
made until the debtor has rights in the property transferred, so a security
interest in after-acquired property which is security for other than a
contemporaneous advance may be treated as a voidable preference under the
conditions (and subject to the exceptions) provided by Section 547 of the
Bankruptcy Code;
	 
	 	(ix)	 	The rights of the Collateral Agent with respect to Collateral
consisting of accounts, instruments, licenses, leases, contracts or other
agreements will be subject to the claims, rights and defenses of the other
parties thereto against the Companies;
	 
	 	(x)	 	In the case of any Collateral consisting of licenses or
permits issued by governmental authorities or other persons or entities, the
Companies may not have sufficient rights therein for the security interest of
the Collateral Agent to attach and, even if the Companies have sufficient
rights for the security interest of the Collateral Agent to attach, the
exercise of remedies may be limited by the terms of the license or permit or
require the consent of the governmental authority issuing such license or
permit;
	 
	 	(xi)	 	We note that, if any of the Collateral is evidenced by
instruments or tangible chattel paper or any other property in which a security
interest may be perfected by taking possession (in each case as defined, and as
provided for, in the Ohio UCC), the local law of the jurisdiction where such
property is located will govern the priority of a possessory security interest
in such property and the effect of perfection or non-perfection of a
non-possessory security interest in such property;
	 
	 	(xii)	 	Notwithstanding that Sections 1309.406(D), 1309.407(A) and
1309.408(A) of the Ohio Revised Code render ineffective terms in agreements
which prohibit, restrict or require the consent of the person obligated thereon
to the assignment, transfer of, or the creation, attachment, perfection or
enforcement of a security interest therein or which provide that any such
assignment, transfer, creation, attachment or enforcement gives rise to a
default, breach, right of recoupment, claim, defense, termination, right of
termination or remedy thereunder, such ineffectiveness may nonetheless be
limited as provided in Section 1309.408(C) of the Ohio Revised Code; and
	 
	 	(xiii)	 	The opinions set forth above may also be limited by Sections 1309.320,
1309.323, 1309.335, and 1309.336 of the Ohio Revised Code.

     This opinion is furnished by us solely for your benefit and your respective successors and
assignees

 

 

	The Lenders,

Credit Suisse, as Agent and

General Electric Capital Corporation, as Collateral Agent

June 9, 2008

Page 8

upon the understanding that we are not hereby assuming any professional responsibility to any other
person whatsoever. The opinions expressed herein may not be used or relied upon by any other
person, nor may this letter or any copies of this letter be furnished to any third party, filed
with a governmental agency, quoted, cited or otherwise referred to without our prior written
consent, other than to bank regulatory authorities or as otherwise required by law. This opinion is
given as of the date hereof, and we hereby undertake no, and disclaim any, obligation to advise you
of any change in any matters set forth herein or upon which this opinion is based. This opinion is
provided as a legal opinion only, and not as a guaranty or warranty of the matters discussed
herein.

Very truly yours,

Marshall & Melhorn, LLC

 

 

June 9, 2008

To the Lenders party to the revolving credit agreement referred to below,
Credit Suisse, as Agent and General Electric Capital Corporation, as Collateral
Agent (as defined in the Credit Agreement)

     Re: Ply Gem Industries, Inc. $150,000,000 Credit
Facility

Ladies and Gentlemen:

     We have acted as special counsel in the State of Missouri to Variform, Inc., a
Missouri corporation (the “Company”), in connection with the execution and delivery of
the $150,000,000 Credit Agreement dated as of June 9, 2008 (the
“Credit Agreement”),
by and among Ply Gem Holdings, Inc., a Delaware corporation,
(“Holdings”), Ply Gem
Industries, Inc., a Delaware corporation (the “Specified U.S.
Borrower”), CWD Windows
and Doors, Inc., a Canadian corporation (the “Canadian
Borrower”),  the Company and
the other Subsidiaries of the Specified U.S. Borrower from time to time party hereto
as Borrowers and Guarantors, the financial institutions that are parties thereto as
lenders (collectively, the “Lenders”), and Credit
Suisse, (the “Administrative
Agent”), as Administrative Agent for the Lenders, and General Electric Capital
Corporation (the “Collateral Agent”), as Collateral Agent for the Secured Parties. In
rendering the opinions hereinafter set forth, we have reviewed, among other things,
originals or copies of the following documents (collectively, the
“Documents”):

     (a) the executed Credit Agreement;

     (b) the U.S. Security Agreement dated as of June 9, 2008 among the
Specified
U.S. Borrower, Holdings, the Subsidiaries of the Specified U.S. Borrower
listed on
Schedule I thereto, the Collateral Agent and the Administrative Agent (the
“Security
Agreement”);

     (c) the UCC financing statement described in Schedule A attached hereto
(the “Financing Statement”) relating to the Security Agreement;

     (d) the U.S. Guaranty dated as of June 9, 2008 among Specified U.S.
Borrower, Holdings, the Subsidiaries of the Specified U.S. Borrower listed
on the Annex
thereto and the Collateral Agent;

Kansas
City • Overland Park • St. Louis • Jefferson City • Springfield • Boulder • Washington D.C.* • New york • Denver • Clayton

*Lathrop & Gage DC pllc-Affiliate

 

 

June 9, 2008

Page 2

     (e) the Intellectual Property Security Agreement dated as of June 9, 2008
among the Specified U.S. Borrower, Holdings, the Subsidiaries of the Specified U.S.
Borrower listed on the Annex thereto and the Collateral Agent; and

     (f) the Lien Subordination and Intercreditor Agreement dated as of June 9,
2008, among the Collateral Agent, U.S. Bank National Association, as Trustee and
Noteholder Collateral Agent, the Specified U.S. Borrower, Holdings, and the
Subsidiaries
of the Specified U.S. Borrower listed on Schedule I thereto.

     Unless otherwise defined herein, capitalized terms used herein shall have the meanings
assigned to such terms in the Credit Agreement.

     We are familiar with the corporate proceedings taken by the Company in connection with the
agreements and documents described above and the transactions contemplated thereby. We have
reviewed the articles of incorporation of the Company and all amendments thereto and the Bylaws of
the Company. We have received a certificate of the Secretary of State of Missouri regarding the
good standing of the Company in the State of Missouri. As to matters of law, we express no opinion
as to any matter relating to the laws of any jurisdiction other than the laws of the State of
Missouri.

     We have relied upon the representations made by officers of the Company, including but not
limited to those set forth in the Secretary’s Certificate of even date herewith, as to matters of
fact, upon the accuracy of the factual information set forth in all of the documents referred to
in this opinion and upon certain certificates of public officials.

     We have assumed (i) due authorization, execution and delivery of the agreements and documents
referred to in this opinion by all parties thereto other than the Company, (ii) the enforceability
of all such agreements and documents against all parties thereto, (iii) the power and full legal
right of all such parties other than the Company (without approvals, authorizations, consents or
other orders of any public or private body or board) to execute and deliver all such agreements
and documents and perform all such parties’ obligations thereunder, (iv) that the Company has
rights in the Collateral (as defined in the Security Agreement) in which it has granted a security
interest in the Security Agreement (the “Company Collateral”) and (v) that none of the Company
Collateral is described in Section 9-501(a)(l) of the Uniform Commercial Code as enacted in the
State of Missouri (the “Missouri UCC”). We also have assumed the genuineness of all signatures on
such documents, the authenticity of all documents submitted to us as originals and the conformity
to original documents of all documents submitted to us as copies.

 

 

June 9, 2008

Page 3

     Based upon, and subject to, the foregoing, we are of the opinion that:

     1. The Company is validly existing as a corporation and in good standing under the
laws of the State of Missouri.

     2. The Company has the corporate power and authority to (i) execute and deliver the
Documents, (ii) perform its obligations under the Documents to which it is a party, and (iii)
conduct its business as described in the Annual Report or Form 10-K filed by Ply Gem Holdings,
Inc. with the Securities and Exchange Commission on March 25, 2008, in the section captioned,
“Description of the Business — Siding, Fencing, Railing and Decking Segment.” The execution
and delivery of the Documents to which it is a party by the Company and the performance by the
Company of its obligations thereunder have been duly authorized by all necessary corporate
action on the part of the Company. The Documents to which the Company is a party have been
duly executed and delivered by the Company.

     3. There is no provision in the articles of incorporation or the bylaws of the
Company or in any Missouri statute, rule or regulation binding on the Company that would be
violated by the Company’s execution and delivery of the Documents to which it is a party, nor
do any of the foregoing prohibit performance by the Company of any term, provision, condition,
covenant or other obligation of the Company contained therein.

     4. Assuming the Financing Statement has been properly filed in the office of the
Missouri Secretary of State, no termination statement has been filed with respect to the
Financing Statement and the security interest has not otherwise been released as to any of the
Company Collateral, the security interest granted in the Security Agreement, securing the
Obligations in that portion of the Company Collateral in which a security interest may be
perfected by filing a financing statement in Missouri under the Missouri UCC, is duly
perfected.

     5. The Collateral Agent is permitted, under the laws of Missouri, to exercise
remedies under the Security Agreement for the realization of any of the Collateral in its own
name, as Collateral Agent, without naming all of the Lenders in any applicable legal
proceeding.

     6. The parties’ choice of New York law to govern the Documents, except as
otherwise required by mandatory choice of law rules of the Missouri UCC, would be a valid and
effective choice of law under the laws of Missouri, and adherence to existing judicial
precedents
would lead a Missouri state court or federal court sitting in Missouri that applied Missouri
law to
give effect to such choice of law to govern the parties’ contractual obligations. The only
exceptions would be that remedies provided by the laws of any jurisdiction other than Missouri
would be governed by the laws of such jurisdiction and that if the court, pursuant to the
principles set forth in Section 187 of the Restatement (Second) of Conflict of Laws,
determined
either (i) that the State of New York had no substantial relationship to the parties or the
transaction and there was not otherwise a reasonable basis for the parties’ choice, or (ii)
that the
application of New York law was contrary to a fundamental policy of a jurisdiction that had an

 

 

June 9, 2008

Page 4

interest with respect to the particular issue being considered that was materially greater than the
interest therein of the State of New York and the law of such jurisdiction would govern in the
absence of an effective choice of law by the parties, then the court would not give effect to the
parties’ choice. In addition, such a court might apply the law of Missouri if the issue in
controversy had never been determined in New York. If such a court took the approach of Section
1-105(1) of the Missouri UCC, the choice of law provision in the Documents would be enforceable,
except for certain limited exceptions, unless the State of New York did not bear a “reasonable
relation” to the transaction (although no reported decision by a Missouri court describes what
constitutes a “reasonable relation” under Section 1-105(1) of the UCC). The foregoing assumes that
the choice of New York law to govern the Documents was bona fide and devoid of fraud.

     The opinions set forth above are subject to the following qualifications:

     A. In the event of foreclosure under the Security Agreement, the rights, titles and
interests of any purchaser will be subject to statutory and equitable redemption rights.

     B. We have made no examination of the title to the Company Collateral or any other
property of the Company (collectively, the “Property”), and we express no opinion (i) as to
the
Company’s title to and rights in the Property and (ii) as to whether the description of the
property
included in the Security Agreement or the Financing Statement is accurate and complete.

     C. We express no opinion with respect to any environmental laws, rules, or
regulations, or any laws or regulations governing the sale or issuance of securities.

     D. Our opinion regarding the corporate power of the Company to enter into and
perform its obligations under the U.S. Guaranty is subject to the qualification that such
power
may be affected by Article 11, Section 7 of the Missouri Constitution, which provides that “No
corporation shall issue stock or bonds or other obligations for the payment of money, except
for
money paid, labor done or property actually received . . . .” The quoted provision of Article
11,
Section 7 of the Missouri Constitution has not been judicially interpreted with respect to its
effect on a guaranty executed by a corporation incorporated under Missouri law. Nonetheless,
it
is our opinion that the Company’s entry into and performance of its obligations under the U.S.
Guaranty are within the corporate power of the Company.

     This opinion letter is being furnished to you and your permitted successors and assigns for
your and their use and the use of your and their respective counsel in connection with the
Transactions contemplated by the Documents. No other parties may rely on this opinion except that
it may be circulated to any prospective Lender or Agent in accordance with the Credit Agreement
and may be relied upon by any person who, in the future, becomes a Lender or Agent. No other use
of this opinion may be made without our prior written consent.

 

 

June 9, 2008

Page 5

     The opinions set forth in this opinion letter are effective as of the date hereof. We express
no opinions other than as herein expressly set forth, and no expansion of our opinions may be made
by implication or otherwise. We do not undertake to advise you of any matter within the scope of
this opinion letter which comes to our attention after the delivery of this opinion letter and
disclaim any responsibility to advise you of future changes in law or fact which may affect the
above opinions. This opinion letter is solely for your use in connection with the transaction
indicated above and is not to be relied upon by any other person or quoted from in whole or in part
without the express written consent of this firm.

Very truly yours,

 

 

SCHEDULE A

The UCC financing statement relating to the Security Agreement for Variform, Inc. is attached to
this schedule.

 

 

	UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
A. NAME & PHONE OF CONTACT AT FILER [optional]
UCC Filings 518-434-0938
B. SEND ACKNOWLEDGMENT TO: (Name and Address)
(National Corporate Research I
41 State Street Suite 600 Albany, NY 12207
L J
THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1. DEBTORS EXACT FULL LEGAL NAME — insertonlyonedebtor name (1 aoc 1 b) -do not abbreviate or combine names
1a. ORGANIZATIONS NAME
- VARIFORM, INC.
OR 1b. INDIVIDUALSLASTNAME. I FIRST NAME IMIDDLENAMEI SUFFIX
1c. MAILING ADDRESS CITY STATE I POSTAL CODE COUNTRY
2600 GRAND BLVD., SUITE 900 KANSAS CITY MO 64108
1d SEE INSTRUCTIONS I ADDL INFO RE Me. TYPE OF ORGANIZATION 1f JURISDICTION OF ORGANIZATION 1 g. ORGANIZATIONAL ID , if any
gTA0NRZATION Corporation [Missouri ,00111906 r-]NONE
2. ADDITIONAL DEBTORS EXACT FULL LEGAL NAME — insert only one debtor name (2a or 2b) — do not abbreviate or combine names
2a. organizations name
or 2b. individuals last name i first name imiddle name i suffix
2c. mailing address city state i postal code country
2d see instructions addl info re i 2e type of organization 2f. jurisdiction of organization 2g. organizational id , if any
organization _
debtor            unone
3. SECURED PARTYS NAME (orNAMEofTOTAL ASSIGNEE of ASSIGNOR S/P)-insertonlyane. secured party name (3a or 3b)
3a. ORGANIZATIONS NAME
U.S. BANK NATIONAL ASSOCIATION, AS NOTEHOLDER COLLATERAL AGENT
OR
3b. INDIVIDUALS LAST NAME FIRST NAME MIDDLE NAME SUFFIX
3c MAILING ADDRESS CITY STATE [POSTAL CODE COUNTRY
ATTN: CORPORATE TRUST SERVICES, 60 LIVINGSTON c nAiir iv/ixt cc 1 at iim
- avenue,EP-MN-WS3C ST. PAUL MN [55107-2292 [
4. This FINANCING STATEMENT covers the following collateral:
ALL ASSETS
5. ALTERNATIVE DESIGNATION [if applicable]:LESSEE/LESSOR M CONSIGNEE/CONSIGNOR LjsAILEBBAILOR SELLER/BUYER JAG. LIEN flNON-UPC FILING
TTrTiisTiNAcTNGTATEETTsToTeTlfflfoneOTrdHcTTecoTddTi
        .ETJgECRflgtja]djlejjonj_jf1gelic
8. OPTIONAL FILER REFERENCE DATA F 2 2 5 9 97
2164-440 — MO — Secretary of State a 33 8 613
FILING OFFICE COPY- UCC FINANCING STATEMENT (FORM UCC1) (REV. 05/22/02)

 

 

EXHIBIT K

COMPANY NAME

Report No. 1           As of:

					
	 	 	 	 	 
	BORROWING BASE CERTIFICATE
	 	INPUT CELLS — Enter ACTUAL Amounts
	 	 

COLLATERAL ACTIVITY

	 	 	 	 	 	 	 	 	 
	ACCOUNTS RECEIVABLE:	 	Total	 
	 	1	 	 	Beginning Accounts Receivable Balance
	 	 	0.00	 
	 	2	 	 	Gross Sales (Invoices)
	 	 	0.00	 
	 	3	 	 	Debit Memos/Others Adjustments
	 	 	0.00	 
	 	4	 	 	Credit Memos/Other Adjustments
	 	 	0.00	 
	 	5	 	 	TOTAL NET SALES (2+3-4)
	 	 	0.00	 
	 	 	 	 	 
	 	 	 	 
	 	6	 	 	A/R Collections
	 	 	0.00	 
	 	7	 	 	Non A/R Collections
	 	 	0.00	 
	 	8	 	 	Discounts/Allowances
	 	 	0.00	 
	 	9	 	 	TOTAL DEDUCTIONS (6+7+8)
	 	 	0.00	 
	 	10	 	 	Net Ending Balance
	 	 	0.00	 
	 	11	 	 	Less: Ineligible Accounts
	 	 	0.00	 
	 	12	 	 	Total Eligible Accounts Receivable
	 	 	0.00	 
	 	13	 	 	Accounts Receivable availability @ 85%
	 	 	0.00	 
	 	 	 	 	 
	 	 	 	 
	 	14	 	 	A/R AVAILABLE
	 	 	0.00	 
	 
	RAW MATERIALS INVENTORY:	 	TOTAL	 
	 	15	 	 	Gross Raw Materials Inventory Balance
	 	 	0.00	 
	 	16	 	 	Ineligible Raw Materials Inventory
	 	 	0.00	 
	 	17	 	 	Eligible Raw Materials Inventory
	 	 	0.00	 
	 	18	 	 	Inventory Availability @ 0% of Line 17 - Test One
	 	 	0.00	 
	 	19	 	 	Net Book Value of Raw Materials multiplied by RM NOLV Percent
	 	 	0.00	 
	 	 	 	 	Net Book Value of RM 0.00 NOLV Percentage
	 	 	 	 
	 	20	 	 	Inventory Availability @ 85% of Line 19 - Test Two
	 	 	0.00	 
	 	21	 	 	INVENTORY AVAILABLE (Lesser of Line 18 and Line 20)
	 	 	0.00	 
	 
	WORK IN PROCESS INVENTORY:	 	TOTAL	 
	 	22	 	 	Gross Work in Process Inventory Balance
	 	 	0.00	 
	 	23	 	 	Ineligible Work in Process Inventory
	 	 	0.00	 
	 	24	 	 	Eligible Work in Process Inventory
	 	 	0.00	 
	 	25	 	 	Inventory Availability @ 0% of Line 24 - Test One
	 	 	0.00	 
	 	26	 	 	Net Book Value of WIP Inventory multiplied by NOLV Percent on Raw Materials
	 	 	0.00	 
	 	 	 	 	Net Book Value of WIP 0.00 NOLV Percentage
	 	 	 	 
	 	27	 	 	Inventory Availability @ 85% of Line 26 - Test Two
	 	 	0.00	 
	 	28	 	 	INVENTORY AVAILABLE (Lesser of Line 25 and Line 27)
	 	 	0.00	 
	 
	FINISHED GOODS INVENTORY:	 	TOTAL	 
	 	29	 	 	Gross Finished Goods Inventory Balance
	 	 	0.00	 
	 	30	 	 	Ineligible Finished Goods Inventory
	 	 	0.00	 

Page 1

 

	 	 	 	 	 	 	 	 	 
	FINISHED GOODS INVENTORY:	 	TOTAL	 
	 	31	 	 	Eligible Finished Goods Inventory
	 	 	0.00	 
	 	32	 	 	Inventory Availability @ of Line 31 - Test One
	 	 	0.00	 
	 	33	 	 	Net Book Value of Finished Goods Inventory multiplied by FG NOLV Percent
	 	 	0.00	 
	 	 	 	 	Net Book Value of WIP 0.00 NOLV Percentage
	 	 	 	 
	 	34	 	 	Inventory Availability @ 85% of Line 33 - Test Two
	 	 	0.00	 
	 	35	 	 	INVENTORY AVAILABLE (Lesser of Line 32 and Line 34)
	 	 	0.00	 
	 	 	 	 	 
	 	 	 	 
	 	36	 	 	TOTAL INVENTORY AVAILABLE (Lesser of sum of line 21, 28 and 35 or $XX,000,000)
	 	 	0.00	 
	 	 	 	 	 
	 	 	 	 
	 	37	 	 	AVAILABLE A/R AND INVENTORY:
	 	 	0.00	 
	 	38	 	 	GROSS AVAILABLE (LESSER OF LINE 37 OR $XX,000,000)
	 	 	0.00	 
	 	 	 	 	 
	 	 	 	 
	REVOLVING LOAN ACTIVITY:	 	 	0.00	 
	 	39	 	 	Beginning Loan Balance
	 	 	0.00	 
	 	40	 	 	Total Collections
	 	 	0.00	 
	 	41	 	 	Advance Requirements
	 	 	0.00	 
	 	42	 	 	Interest, Fees, Other Adjustments
	 	 	0.00	 
	 	43	 	 	Ending Loan Balance
	 	 	0.00	 
	 	 	 	 	 
	 	 	 	 
	 	44	 	 	LETTER OF CREDIT BALANCE (@100%)
	 	 	0.00	 
	 	45	 	 	OTHER
RESERVES                        (@100%)
	 	 	0.00	 
	 	46	 	 	OTHER RESERVES                        (@100%)
	 	 	0.00	 
	 	 	 	 	 
	 	 	 	 
	 	47	 	 	TOTAL AVAILABLE TO BORROW
	 	$	0.00	 

THE UNDERSIGNED REPRESENTS AND WARRANTS THAT THE FOREGOING INFORMATION IS TRUE, COMPLETE AND
CORRECT, AND THAT THE COLLATERAL REFLECTED HEREIN COMPLIES WITH THE CONDITIONS, TERMS, WARRANTIES,
REPRESENTATIONS AND COVENANTS SET FORTH IN THE CREDIT AGREEMENT BETWEEN THE UNDERSIGNED AND GE
CAPITAL CORP. AS AGENT AND ANY SUPPLEMENTS AND AMENDMENTS, IF ANY, THERETO (THE “CREDIT
AGREEMENT”). THE PROVISIONS OF THIS CERTIFICATE SHALL NOT BE CONSTRUED TO AMEND OR OTHERWISE MODIFY
ANY BORROWING BASE OR ELIGIBILITY CRITERIA SET FORTH IN THE CREDIT AGREEMENT. THE AVAILABILITY
RATES SET FORTH ABOVE, ALONG WITH THE RESERVES ARE SUBJECT TO ADJUSTMENT IN ACCORDANCE WITH THE
CREDIT AGREEMENT.

	 	 	 

	 

	 	Prepared by:
	 
	 	 
	          BORROWER:

	 	Authorized Signature:

Page 2

 

Reconciliations

INPUT CELLS — Enter ACTUAL Amounts

Client Reporting

Collateral Reconciliation (1)

	 	 	 	 	 	 	 

	General Ledger A/R Balance:
	 	(as of                     )	 	 	0.00	 
	 
	 	 	 	 	 	 
	Balance per Aging:
	 	 	 	 	0.00	 
	 
	 	 	 	 	 
	Difference:
	 	 	 	 	0.00	 
	 
	 	 	 	 	 	 
	Explanation of Differences:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Description
	 	Amount	 	 	 	 
	 
	 	 	 	 	0.00	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	0.00	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	0.00	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Total Unreconciled Difference
(Change calc depending on if GL or Aging is higher)	 	 	0.00	 
	 
	 	 	 	 	 	 
	General Ledger Inventory Balance:
	 	(as of                     )	 	 	0.00	 
	 
	 	 	 	 	 	 
	Balance per Inventory Report:
	 	 	 	 	0.00	 
	 
	 	 	 	 	 
	Difference:
	 	 	 	 	0.00	 
	 
	 	 	 	 	 	 
	Explanation of Difference:
	 	 	 	 	 	 
	Description
	 	Amount	 	 	 	 
	 
	 	 	 	 	0.00	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	0.00	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	0.00	 
	 	 	 	 	 	 
	Total Unreconciled Difference
(Change calc depending on if GL or Perpetual is higher)	 	 	0.00	 
	 
	 	 	 	 	 

					
	 	 	 	 	 
	 
	 	Authorized Signer:                                         
	 	Date:                               

 

			
	(1)	 	To be prepared at each month-end only.

Page 1

 

	 	 	 	 	 	 	 

	 	 	 	 	INPUT CELLS —
Enter ACTUAL Report#
	Inventory Report

	 	Date:
	 	 	 	 

	 	 	 	 	 
	Inventory	 	 
	Composition	 	Total
	Raw Materials
	 	 	0.00	 
	Work In Process
	 	 	0.00	 
	Finished Goods
	 	 	0.00	 
	 
	 	 	 	 
	Total Inventory
	 	 	0.00	 
	 
	 	 	 	 
	 
	 	 	 	 
	INELIGIBLE RAW MATERIALS
	 	 	 	 
	Excess/Slow Moving
	 	 	0.00	 
	Packing or Shipping Materials
	 	 	0.00	 
	Inventory in violation of applicable regulations/laws
	 	 	0.00	 
	Non US/CDN Inventory
	 	 	0.00	 
	Consignment or offsite locations where Lien Waivers not obtained
	 	 	0.00	 
	Unperfected Liens
	 	 	0.00	 
	Inaccuracies in Credit Agreement or Security Agreement
	 	 	0.00	 
	In Transit (other than Eligible In-Transit)
	 	 	0.00	 
	Other Ineligible
	 	 	0.00	 
	Other Ineligible
	 	 	0.00	 
	 
	 	 	 	 
	TOTAL RM INELIGIBLES
	 	 	0.00	 
	 
	 	 	 	 
	 
	 	 	 	 
	INELIGIBLE WORK IN PROCESS
	 	 	 	 
	Work In Process ineligible
	 	 	0.00	 
	 
	 	 	 	 
	TOTAL WIP INELIGIBLES
	 	 	0.00	 
	 
	 	 	 	 
	 
	 	 	 	 
	INELIGIBLE FINISHED GOODS
	 	 	 	 
	Excess/Slow Moving
	 	 	0.00	 
	Packing or Shipping Materials
	 	 	0.00	 
	Inventory in violation of applicable regulations/laws
	 	 	0.00	 
	Non US/CDN Inventory
	 	 	0.00	 
	Consignment or offsite locations where Lien Waivers not obtained
	 	 	0.00	 
	Unperfected Liens
	 	 	0.00	 
	Inaccuracies in Credit Agreement or Security Agreement
	 	 	0.00	 
	In Transit (other than Eligible In-Transit)
	 	 	0.00	 
	Other Ineligible
	 	 	0.00	 
	Other Ineligible
	 	 	0.00	 

 

 

	 	 	 	 	 
	Inventory	 	 
	Composition	 	Total
	TOTAL FG INELIGIBLES
	 	 	0.00	 
	 
	 	 	 	 
	 
	 	 	0.00	 
	 
	 	 	 	 
	 
	 	 	 	 
	RESERVES
	 	 	 	 
	Rent
	 	 	0.00	 
	Other
	 	 	0.00	 
	Other
	 	 	0.00	 
	 
	 	 	 	 
	TOTAL RESERVES
	 	 	0.00	 
	 
	 	 	 	 

 

 

			
	 	 	 
	 	 	INPUT CELLS — Enter ACTUAL Amounts          

Ineligible Detail per Credit Agreement

Aging Date:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Accounts Receivable:	 	 	 	 	 	 	 	 	 	 	 	 	 	Total
	(a)	 	Outside ordinary course of business, no invoice, contingent, interest payment
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(b)	 	Payable not in US/CDN currency or not on customary terms
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(c)	 	Sales/Services to or for benefit of Subsidiary or Affiliate
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(d)	 	Past due beyond time limit and/or written-off/uncollectible
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(e)	 	Any Person more than 50% of Accounts owed are past due beyond time limit
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(f)	 	Accounts more than 20% of net Eligibles (to extent of excess)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(g)	 	Disputed accounts/Claim against borrower
	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0	 
	(h)	 	Accounts owing from Person subject to insolvency proceedings
	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0	 
	(i)	 	Supplier/creditor Accounts
	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0	 
	(j)	 	Non US/CDN Debtors
	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0	 
	(k)	 	Bill-on-hold, cash in advance, etc.
	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0	 
	(l)	 	Government account debtors
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(m)	 	Inaccuracies in Credit Agreement or Security Agreement
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(n)	 	Unperfected liens
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(o)	 	Accounts in violation of applicable regulations/laws
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(p)	 	Unshipped goods or uncollected checks
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	(q)	 	Unacceptable or subject to a reserve acceptable to Agents
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Total A/R Ineligible
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cross Age 25% Rule Worksheet:	 	Total	 	Past Due	 	Additional	 	25% of	 	 	 	 
	Customer Name	 	Balance	 	Amount	 	Ineligible	 	Balance	 	 	 	 
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	YES
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	YES
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	YES
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	YES
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	YES
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	YES
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	YES
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	YES
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	YES
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	YES
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Ineligible
	 	 	 	 	 	 	 	 	 	 	0	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Eligible Foreign Receivables in Excess of Caps Worksheet	 	 	 	 	 	 	 	 	 	 
	($0.0MM cap per account and $0MM aggregate cap)	 	Remaining	 	 	 	 	 	Amount	 	Total Eligible
	Customer Name	 	Eligible Balance	 	Cap	 	Over Cap	 	Balance
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total over individual account cap of $0.0MM
	 	 	 	 	 	 	 	 	 	 	0	 	 	 	 	 
	Total Eligible (cap of $0MM)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	Total over aggregate cap of $0MM
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Ineligible
	 	 	 	 	 	 	 	 	 	 	0	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Concentration Caps Worksheet	 	 	 	 	 	 	 	 	 	 
	(Greater of $X.XMM or 00% of eligible accounts)	 	 	 	 	 	 	 	 	 	 
	00% Concentration Limit ($)	 	 	 	 	 	Remaining	 	Concentration	 	Additional
	Customer Name	 	 	 	Eligible Balance	 	Limit	 	Ineligible
	 
	 	 	 	 	 	 	0	 	 	 	4,000,000	 	 	 	0	 
	 
	 	 	 	 	 	 	0	 	 	 	4,000,000	 	 	 	0	 
	 
	 	 	 	 	 	 	0	 	 	 	4,000,000	 	 	 	0	 
	 
	 	 	 	 	 	 	0	 	 	 	4,000,000	 	 	 	0	 
	 
	 	 	 	 	 	 	0	 	 	 	4,000,000	 	 	 	0	 

 

 

EXHIBIT L

PERFECTION CERTIFICATE

     Reference is made to the Indenture (as amended, supplemented or otherwise modified from time
to time, the “Indenture”) dated as of [•], 2008 among Ply Gem Industries, Inc., a Delaware
corporation (the “Issuer”), Ply Gem Holdings, Inc., a Delaware corporation (“Holdings” and,
together with the Issuer and the Subsidiary Guarantors, the “Grantors”), and [•], as trustee and
collateral agent (in such capacity, the “Collateral Agent”) and as collateral agent. Capitalized
terms used but not defined herein have the meanings set forth in either the Indenture or the
Collateral Agreement referred to therein, as applicable.

     The undersigned Responsible Officers of Holdings and the Issuer hereby certify to the
Administrative Agent and each other Secured Party as follows:

1. Names. (a) The exact legal name of each Grantor, as such name appears in its
respective certificate of formation, is as follows:

	 	 	 	 	 
	 	 	Exact Legal Name of Each Grantor	 	 
	 	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 

     (b) Set forth below is each other legal name each Grantor has had in the past five years,
together with the date of the relevant change:

	 	 	 	 	 
	 	 	Other Legal Name in Past 5	 	Date of Name
	Grantor	 	Years	 	Change
	 	 	 	 	 
	 
	 	 
	 	 
	 	 	 	 	 
	 
	 	 
	 	 
	 	 	 	 	 
	 
	 	 
	 	 

     (c) Except as set forth in Schedule 1 hereto, no Grantor has changed its identity or
corporate structure in any way within the past five years. Changes in identity or corporate
structure would include mergers, consolidations and acquisitions, as well as any change in the
form, nature or jurisdiction of organization. If any such change has

 

17

occurred, include in Schedule 1 the information required by Sections 1 and 2 of this certificate as
to each acquiree or constituent party to a merger or consolidation.

     (d) The following is a list of all other names (including trade names or similar
appellations) used by each Grantor or any of its divisions or other business units in connection
with the conduct of its business or the ownership of its properties at any time during the past
five years:

	 	 	 
	Grantor	 	Other Name Used
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 

     (e) Set forth below is the Organizational Identification Number, if any, issued by the
jurisdiction of formation of each Grantor that is a registered organization:

	 	 	 
	Grantor	 	Organizational Identification Number
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 

     (f) Set forth below is the Federal Taxpayer Identification Number of each
Grantor14:

	 	 	 
	Grantor	 	Federal Taxpayer Identification Number
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 

 

			
	14	 	Only necessary for filing in North Dakota and South Dakota.

 

18

2. Current Locations. (a) The chief executive office of each Grantor is located at the
address set forth opposite its name below:

	 	 	 	 	 	 	 
	Grantor	 	Mailing Address	 	County	 	State
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 

     (b) Set forth below opposite the name of each Grantor are all locations where such Grantor
maintains any books or records relating to any Accounts Receivable (with each location at which
chattel paper, if any, is kept being indicated by an “*”):

	 	 	 	 	 	 	 
	Grantor	 	Mailing Address	 	County	 	State
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 

     (c) The jurisdiction of formation of each Grantor that is a registered organization is set
forth opposite its name below:

	 	 	 
	Grantor	 	Jurisdiction
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 

     (d) Set forth below opposite the name of each Grantor are all the locations where such
Grantor maintains any Equipment or other Collateral not identified above:

	 	 	 	 	 	 	 
	Grantor	 	Mailing Address	 	County	 	State
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 

 

19

     (e) Set forth below opposite the name of each Grantor are all the places of business of such
Grantor not identified in paragraph (a), (b), (c) or (d) above:

	 	 	 	 	 	 	 
	Grantor	 	Mailing Address	 	County	 	State
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 

     (f) Set forth below is a list of all real property held by each Grantor, whether owned or
leased, the name of the Grantor that owns or leases said property and the fair market value
apportioned to each site:

	 	 	 	 	 	 	 
	Address	 	Owned/Leased	 	Entity	 	Value
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 

     (g) Set forth below opposite the name of each Grantor are the names and addresses of all
Persons other than such Grantor that have possession of any of the Collateral of such Grantor:

	 	 	 	 	 	 	 
	Grantor	 	Mailing Address	 	County	 	State
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 

 

20

3. Unusual Transactions. All Accounts have been originated by the Grantors and all
Inventory has been acquired by the Grantors in the ordinary course of business.

4. File Search Reports. File search reports have been obtained from each Uniform
Commercial Code filing office identified with respect to such Grantor in Section 2 hereof, and such
search reports reflect no liens against any of the Collateral other than those permitted under the
Indenture.

5. UCC Filings. Financing statements in substantially the form of Schedule 5 hereto have
been prepared for filing in the proper Uniform Commercial Code filing office in the jurisdiction in
which each Grantor is located and, to the extent any of the collateral is comprised of fixtures,
timber to be cut or as extracted collateral from the wellhead or minehead, in the proper local
jurisdiction, in each case as set forth with respect to such Grantor in Section 2 hereof.

6. Schedule of Filings. Attached hereto as Schedule 6 is a schedule setting forth, with
respect to the filings described in Section 5 above, each filing and the filing office in which
such filing is to be made.

7. Stock Ownership and other Equity Interests. Attached hereto as Schedule 7 is a true
and correct list of all the issued and outstanding stock, partnership interests, limited liability
company membership interests or other Equity Interests held by, directly or indirectly, Holdings,
the Issuer or any Subsidiary and the record and beneficial owners of such stock, partnership
interests, membership interests or other Equity Interests. Also set forth on Schedule 7 is each
equity investment held by, directly or indirectly, Holdings, the Issuer or any Subsidiary that
represents 50% or less of the Equity Interests of the entity in which such investment was made.

8. Debt Instruments. Attached hereto as Schedule 8 is a true and correct list of all
promissory notes and other evidence of indebtedness held by Holdings, the Issuer and each
Subsidiary that are required to be pledged under the Guarantee and Collateral Agreement, including
all intercompany notes between Holdings and any subsidiary of Holdings and any subsidiary of
Holdings and any other such subsidiary.

9. Deposit Accounts. Attached hereto as Schedule 9 is a true and correct list of deposit
accounts, brokerage accounts or securities investment accounts maintained by any Grantor, including
the name and address of the depositary institution, the type of account, and the account number.

10. Assignment of Claims Act. Attached hereto as Schedule 10 is a true and correct list
of all written contracts between the Issuer or any Subsidiary and the United States government or
any department or agency thereof that have a remaining value of at least $5,000,000, setting forth
the contract number, name and address of contracting officer (or other party to whom a notice of
assignment under the Assignment of Claims Act should

 

21

be sent), contract start date and end date,
agency with which the contract was entered into, and a description of the contract type.

11. Advances. Attached hereto as Schedule 11 is (a) a true and correct list of all
advances made by Holdings to any subsidiary of Holdings or made by any subsidiary of Holdings to
Holdings or to any other subsidiary of Holdings (other than those identified on Schedule 8), which
advances will be on and after the date hereof evidenced by one or more intercompany notes pledged
to the Administrative Agent under the Guarantee and Collateral Agreement and (b) a true and correct
list of all unpaid intercompany transfers of goods sold and delivered by or to any Grantor.

12. Mortgage Filings. Attached hereto as Schedule 12 is a schedule setting forth, with
respect to each mortgaged property, (a) the exact name of the person that owns such property as
such name appears in its certificate of incorporation or other organizational document, (b) if
different from the name identified pursuant to clause (a), the exact name of the current record
owner of such property reflected in the records of the filing office for such property identified
pursuant to the following clause and (c) the filing office in which a mortgage with respect to such
property must be filed or recorded in order for the Administrative Agent to obtain a perfected
security interest therein.

13. Intellectual Property. Attached hereto as Schedule 13A in proper form for filing with
the United States Patent and Trademark Office is a schedule setting forth all of each Grantor’s
Patents, Patent Licenses, Trademarks and Trademark Licenses, including the name of the registered
owner, the registration number and the expiration date of each Patent, Patent License, Trademark
and Trademark License owned by any Grantor. Attached hereto as Schedule 13B in proper form for
filing with the United States Copyright Office is a schedule setting forth all of each Grantor’s
Copyrights and Copyright Licenses, including the name of the registered owner, the registration
number and the expiration date of each Copyright or Copyright License owned by any Grantor.

14. Commercial Tort Claims. Attached hereto as Schedule 14 is a true and correct list of
commercial tort claims in excess of $500,000 held by any Grantor, including a brief description
thereof.

 

22

          IN WITNESS WHEREOF, the undersigned have duly executed this certificate on this [•] day of
[•].

	 	 	 	 	 
	 	Ply Gem Industries, Inc.,

 	 
	 	by  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Ply Gem Holdings, Inc.,

 	 
	 	by  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

SCHEDULE 1

Changes in Identity or Corporate Structure Within Past Five Years

 

 

SCHEDULE 5

UCC Financing Statements

 

 

SCHEDULE 6

UCC Filings and Filing Offices

 

 

SCHEDULE 7

Stock Ownership and Other Equity Interests

 

 

SCHEDULE 8

Debt Instruments

 

 

SCHEDULE 9

Deposit Accounts

 

 

SCHEDULE 10

Government Contracts

 

 

SCHEDULE 11

Advances

 

 

SCHEDULE 12

Mortgage Filings

 

 

SCHEDULE 13A

Patents, Patent Licenses, Trademarks and Trademark Licenses

 

 

SCHEDULE 13B

Copyrights and Copyright Licenses

 

 

SCHEDULE 14

Commercial Tort Claims

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"}]]