Document:

exv10w96

Exhibit 10.96

U.S. $100,000,000

REVOLVING CREDIT AGREEMENT,

dated as of May 17, 2011,

MICHIGAN ELECTRIC TRANSMISSION COMPANY, LLC

as the Borrower,

VARIOUS FINANCIAL INSTITUTIONS AND OTHER

PERSONS FROM TIME TO TIME PARTIES HERETO,

as the Lenders,

JPMORGAN CHASE BANK, N.A.,

as the Administrative Agent

J.P. MORGAN SECURITIES LLC,

BARCLAYS CAPITAL

as Joint Lead Arrangers and Joint Bookrunners

BARCLAYS CAPITAL,

as Syndication Agent

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE 1 DEFINITIONS
	 	 	1	 
	1.1 Defined Terms
	 	 	1	 
	1.2 Accounting Terms; GAAP
	 	 	14	 
	1.3 Interpretation
	 	 	15	 
	ARTICLE 2 AMOUNT AND TERMS OF CREDIT
	 	 	15	 
	2.1 Commitments
	 	 	15	 
	2.2 Minimum Amount of Each Borrowing; Maximum Number of Borrowings
	 	 	15	 
	2.3 Notice of Borrowing
	 	 	16	 
	2.4 Disbursement of Funds
	 	 	16	 
	2.5 Repayment of Loans; Evidence of Debt
	 	 	17	 
	2.6 Changes in Type of Revolving Credit Loan
	 	 	18	 
	2.7 Pro Rata Borrowings
	 	 	19	 
	2.8 Interest and Fees
	 	 	19	 
	2.9 Interest Periods
	 	 	20	 
	2.10 Increased Costs, Illegality, etc.
	 	 	21	 
	2.11 Compensation
	 	 	23	 
	2.12 Change of Lending Office
	 	 	24	 
	2.13 Notice of Certain Costs
	 	 	24	 
	2.14 Defaulting Lenders
	 	 	24	 
	ARTICLE 3 LETTERS OF CREDIT
	 	 	26	 
	3.1 Letters of Credit
	 	 	26	 
	3.2 Letter of Credit Requests and Information to Administrative Agent
	 	 	26	 
	3.3 Letter of Credit Participations
	 	 	27	 
	3.4 Agreement to Repay Letter of Credit Drawings
	 	 	29	 
	3.5 Increased Costs
	 	 	30	 
	3.6 Successor Letter of Credit Issuer
	 	 	31	 
	ARTICLE 4 FEES; COMMITMENTS
	 	 	31	 
	4.1 Fees
	 	 	31	 
	4.2 Voluntary Reduction of Revolving Credit Commitments
	 	 	32	 
	4.3 Mandatory Termination of Commitments
	 	 	33	 
	ARTICLE 5 PAYMENTS
	 	 	33	 
	5.1 Prepayments
	 	 	33	 
	 
	 	 	 	 
	i

 

 

	 	 	 	 	 
	 	 	Page
	5.2 Method and Place of Payment
	 	 	33	 
	5.3 Net Payments
	 	 	34	 
	5.4 Computations of Interest and Fees
	 	 	37	 
	ARTICLE 6 CONDITIONS PRECEDENT
	 	 	37	 
	6.1 Conditions Precedent to Initial Effectiveness
	 	 	37	 
	6.2 Conditions Precedent to All Credit Events
	 	 	39	 
	ARTICLE 7 REPRESENTATIONS AND WARRANTIES
	 	 	40	 
	7.1 Organizational Status
	 	 	40	 
	7.2 Capacity, Power and Authority
	 	 	40	 
	7.3 No Violation
	 	 	40	 
	7.4 Litigation
	 	 	41	 
	7.5 Governmental Approvals
	 	 	41	 
	7.6 True and Complete Disclosure
	 	 	41	 
	7.7 Financial Condition; Financial Statements
	 	 	41	 
	7.8 Tax Returns and Payments
	 	 	42	 
	7.9 Environmental Matters
	 	 	42	 
	7.10 Properties
	 	 	42	 
	7.11 Pension and Welfare Plans
	 	 	43	 
	7.12 Regulations U and X
	 	 	43	 
	7.13 Investment Company Act
	 	 	43	 
	7.14 No Material Adverse Change
	 	 	43	 
	7.15 Deemed Repetition of Representations and Warranties
	 	 	43	 
	ARTICLE 8 AFFIRMATIVE COVENANTS
	 	 	44	 
	8.1 Information Covenants
	 	 	44	 
	8.2 Books, Record and Inspections
	 	 	46	 
	8.3 Maintenance of Insurance
	 	 	46	 
	8.4 Payment of Taxes
	 	 	47	 
	8.5 Organizational Existence
	 	 	47	 
	8.6 Compliance with Statutes, Obligations, etc.
	 	 	47	 
	8.7 Good Repair
	 	 	47	 
	8.8 Transactions with Affiliates
	 	 	47	 
	8.9 End of Fiscal Years; Fiscal Quarters
	 	 	48	 
	8.10 Use of Proceeds
	 	 	48	 
	8.11 Changes in Business
	 	 	48	 
	 
	 	 	 	 
	ii

 

 

	 	 	 	 	 
	 	 	Page
	ARTICLE 9 NEGATIVE COVENANTS
	 	 	48	 
	9.1 Limitation on Liens
	 	 	48	 
	9.2 Limitation on Fundamental Changes
	 	 	50	 
	9.3 Limitation on Dividends
	 	 	51	 
	9.4 Debt to Capitalization Ratio
	 	 	51	 
	9.5 Limitation on Sale-Lease Back Transactions
	 	 	51	 
	ARTICLE 10 EVENTS OF DEFAULT
	 	 	51	 
	10.1 Payments
	 	 	52	 
	10.2 Representations, etc.
	 	 	52	 
	10.3 Covenants
	 	 	52	 
	10.4 Default Under Other Agreements
	 	 	52	 
	10.5 Bankruptcy, etc.
	 	 	52	 
	10.6 Judgments
	 	 	53	 
	10.7 Change of Ownership
	 	 	53	 
	10.8 Pension Plans
	 	 	53	 
	10.9 Remedies
	 	 	53	 
	10.10 Remedies Cumulative
	 	 	54	 
	ARTICLE 11 THE ADMINISTRATIVE AGENT
	 	 	54	 
	ARTICLE 12 MISCELLANEOUS
	 	 	56	 
	12.1 Amendments and Waivers
	 	 	56	 
	12.2 Notices
	 	 	57	 
	12.3 No Waiver; Cumulative Remedies
	 	 	59	 
	12.4 Survival of Representations and Warranties
	 	 	59	 
	12.5 Payment of Expenses and Taxes
	 	 	60	 
	12.6 Successors and Assigns; Participations and Assignments
	 	 	61	 
	12.7 Replacements of Lenders under Certain Circumstances
	 	 	64	 
	12.8 Adjustments; Set-off
	 	 	65	 
	12.9 Marshalling; Payments Set Aside
	 	 	66	 
	12.10 Counterparts
	 	 	66	 
	12.11 Severability
	 	 	67	 
	12.12 Integration
	 	 	67	 
	12.13 Governing Law
	 	 	67	 
	12.14 Submission to Jurisdiction; Waivers
	 	 	67	 
	12.15 Acknowledgements
	 	 	68	 
	 
	 	 	 	 
	iii

 

 

	 	 	 	 	 
	 	 	Page
	12.16 Waivers of Jury Trial
	 	 	68	 
	12.17 Confidentiality
	 	 	68	 
	12.18 Treatment of Revolving Credit Loans
	 	 	69	 
	12.19 USA Patriot Act
	 	 	69	 
	12.20 No Fiduciary Duty
	 	 	69	 

	 	 	 

	SCHEDULES:
	 	 
	Schedule I
	 	Commitments
	Schedule II
	 	Environmental Matters
	Schedule III
	 	Pension and Welfare Matters
	Schedule IV
	 	Outstanding Liens on Closing Date
	 
	 	 
	EXHIBITS:
	 	 
	Exhibit A
	 	Form of Notice of Borrowing
	Exhibit B
	 	Form of Notice of Continuation
	Exhibit C
	 	Form of Letter of Credit Request
	Exhibit D
	 	Form of Closing Certificate
	Exhibit E
	 	Form of Compliance Certificate
	 
	 	 
	iv

 

 

     REVOLVING CREDIT AGREEMENT, dated as of May 17, 2011, among MICHIGAN ELECTRIC
TRANSMISSION COMPANY, LLC, a Michigan limited liability company (the “Borrower”), various financial
institutions and other Persons from time to time parties hereto as lenders (each a “Lender” and,
collectively, the “Lenders”) and JPMORGAN CHASE BANK, N.A. (“JPMCB”), as administrative agent (in
such capacity, the “Administrative Agent”).

     The Borrower has requested that the Lenders make senior loans to it in an aggregate principal
amount not exceeding $100,000,000 at any one time outstanding. The Lenders are prepared to make
such loans upon the terms and conditions hereof, and, accordingly, the parties hereto agree as
follows:

ARTICLE 1

DEFINITIONS

     As used herein, the following terms shall have the meanings specified in this Article
1 unless the context otherwise requires (it being understood that defined terms in this
Agreement shall include in the singular number the plural and in the plural the singular):

     1.1 Defined Terms.

     “ABR” shall mean, for any day, a rate per annum equal to the greatest of (a) the rate of
interest (however designated) established by the Administrative Agent as its prime rate in effect
at its principal office in New York, New York, (b) the Federal Funds Effective Rate in effect on
such day plus 0.50% and (c) LIBOR for a one month interest period on such day (or if such day is
not a Business Day, the immediately preceding Business Day) plus 1.00%. Any change in the ABR due
to a change in any of the foregoing rates shall be effective as of the opening of business on the
effective date of such change in such rate.

     “ABR Loan” shall mean each Loan bearing interest at the rate provided in Section
2.8(a).

     “Administrative Agent” shall have the meaning provided in the preamble to this Agreement and
shall include such other financial institution as may be appointed as the successor administrative
agent in the manner and to the extent described in Article 11.

     “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the
Administrative Agent.

     “Affiliate” shall mean, with respect to any Person, (a) any other Person directly or
indirectly controlling, controlled by, or under direct or indirect common control with such Person,
and (b) any other Person in which such Person directly or indirectly through Subsidiaries has a 10%
or greater equity interest. A Person shall be deemed to control a Person if such Person possesses,
directly or indirectly, the power (i) to vote 10% or more of the Voting Stock having ordinary
voting power for the election of directors (or the equivalent) of such other Person or (ii) to
direct or cause the direction of the management and policies of such other Person, whether through
the ownership of Capital Stock, by contract or otherwise.

 

 

     “Agreement” shall mean this Revolving Credit Agreement, as the same may be amended, modified,
supplemented, restated or replaced from time to time.

     “Applicable Margin” and “Commitment Fee Rate” shall mean, for any day, the applicable rate per
annum set forth below under the caption “Applicable Margin” or “Commitment Fee Rate”, respectively,
based upon the ratings by Moody’s and S&P, respectively, applicable on such date to the Borrower’s
non-credit-enhanced long term senior unsecured debt:

	 	 	 	 	 	 	 
	Debt Ratings 	 	Commitment	 	Applicable Margin
	Moody’s/S&P	 	Fee	 	LIBOR	 	ABR
	Category 1 3 A1/A+
	 	0.100%	 	1.100%	 	0.100%
	Category 2
= A2/A
	 	0.125%	 	1.150%	 	0.150%
	Category 3
= A3/A-
	 	0.150%	 	1.250%	 	0.250%
	Category 4
= Baa1/BBB+
	 	0.200%	 	1.500%	 	0.500%
	Category 5
= Baa2/BBB
	 	0.250%	 	1.750%	 	0.750%
	Category 6
£ Baa3/BBB-
	 	0.300%	 	2.250%	 	1.250%

     For purposes of this definition, (i) if no non-credit-enhanced long term senior unsecured
debt rating is available, the Applicable Margin and the Commitment Fee Rate shall be determined by
reference to the Category next below the Borrower’s long term senior secured debt rating, (ii) if
the ratings established by Moody’s and S&P shall fall within different Categories, the Applicable
Margin and the Commitment Fee Rate shall be based on the higher of the two ratings unless one of
the two ratings is two or more Categories lower than the other, in which case the Applicable Margin
and the Commitment Fee Rate shall be determined by reference to the Category next below the higher
of the two Categories, (iii) if only one rating is available from either Moody’s or S&P, then such
rating shall be used to determine the applicable Category, (iv) if neither Moody’s nor S&P shall
have in effect a rating for the Borrower’s non-credit-enhanced long term senior unsecured debt and
neither Moody’s nor S&P shall have in effect a rating for the Borrower’s long term senior secured
debt, then Category 6 above shall

2

 

apply, and (v) if the ratings established or deemed to have been established by Moody’s and S&P
shall be changed (other than as a result of a change in the rating system of Moody’s or S&P),
such change shall be effective as of the date on which it is first announced by the applicable
rating agency. Each change in the Applicable Margin and Commitment Fee Rate shall apply during the
period commencing on the effective date of such change and ending on the date immediately preceding
the effective date of the next such change. If the rating system of Moody’s or S&P shall change,
or if either such rating agency shall cease to be in the business of rating corporate debt
obligations, the Borrower and the Lenders shall negotiate in good faith to amend this definition to
reflect such changed rating system or the unavailability of ratings from such rating agency and,
pending the effectiveness of any such amendment, the Applicable Margin and the Commitment Fee Rate
shall be determined by reference to the rating most recently in effect prior to such change or
cessation.

     “Approved Fund” shall mean 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 business and that is administered or managed by a Lender, an
Affiliate of a Lender or an entity or an Affiliate of an entity that administers or manages a
Lender.

     “Arranger” and “Arrangers” shall mean J.P. Morgan Securities LLC and Barclays Capital, the
investment banking division of Barclays Bank PLC, individually or collectively, as the context
requires.

     “Assignee” shall have the meaning provided in Section 12.6(b)(i).

     “Assignment and Acceptance” shall mean an assignment and acceptance agreement reasonably
satisfactory in form and substance to the Administrative Agent and delivered by each Assignee to
the Administrative Agent pursuant to Section 12.6(b)(ii)(C).

     “Assignment Effective Date” shall have the meaning provided in Section 12.6(b)(iii).

     “Attributable Value” means, with respect to any Sale and Leaseback Transaction, as of the time
of determination, the lesser of (i) the sale price of the property or assets so leased multiplied
by a fraction the numerator of which is the remaining portion of the base term of the lease
included in such Sale and Leaseback Transaction and the denominator of which is the base term of
such lease, and (ii) the total obligation (discounted to present value at the rate of interest
specified by the terms of such lease) of the lessee for rental payments (other than amounts
required to be paid on account of property taxes as well as maintenance, repairs, insurance, water
rates and other items which do not constitute payments for property rights) during the remaining
portion of the base term of the lease included in such Sale and Leaseback Transaction.

     “Authorized Officer”, as applied to any Person, shall mean the Chief Executive Officer, the
President, any Executive Vice-President, any Senior Executive Vice President, any Senior
Vice-President, the Chief Financial Officer, the Treasurer or General Counsel of such Person or any
other senior officer of such Person designated as such in writing to the Administrative Agent by
such Person.

3

 

     “Available Revolving Credit Commitment” shall mean, with respect to any Lender, an amount
equal to the excess, if any, of (a) the amount of such Lender’s Revolving Credit
Commitment over (b) the sum of (i) the aggregate principal amount of all Revolving Credit
Loans of such Lender then outstanding and (ii) that portion of such Lender’s Letter of Credit
Exposure.

     “Bankruptcy Code” shall have the meaning provided in Section 10.5.

     “Bankruptcy Event” means, with respect to any Person, such Person becomes the subject of a
bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator,
custodian, assignee for the benefit of creditors or similar Person charged with the reorganization
or liquidation of its business appointed for it, or, in the good faith determination of the
Administrative Agent, has taken any action in furtherance of, or indicating its consent to,
approval of, or acquiescence in, any such proceeding or appointment, provided that a Bankruptcy
Event shall not result solely by virtue of any ownership interest, or the acquisition of any
ownership interest, in such Person by a Governmental Authority or instrumentality thereof,
provided, further, that such ownership interest does not result in or provide such Person with
immunity from the jurisdiction of courts within the United States or from the enforcement of
judgments or writs of attachment on its assets or permit such Person (or such Governmental
Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or
agreements made by such Person.

     “Borrower” shall have the meaning provided in the recitals to this Agreement.

     “Borrowing” shall mean the incurrence of one Type of Revolving Credit Loan on a given date (or
resulting from conversions or continuations on a given date) and having, in the case of LIBOR
Loans, the same LIBOR Period (provided that ABR Loans incurred pursuant to Section 2.10(b)
shall be considered part of any related Borrowing of LIBOR Loans).

     “Business” shall have the meaning provided in Section 8.11.

     “Business Day” shall mean (a) for all purposes other than as covered by clause (b) below, any
day excluding Saturday, Sunday and any day that shall be in the City of New York a legal holiday or
a day on which banking institutions are authorized or required by law or other governmental actions
to close, and (b) with respect to all notices and determinations in connection with, and payments
of principal and interest on, LIBOR Loans, any day that is a Business Day described in clause (a)
excluding any day that shall be in the City of London a legal holiday or a day on which banking
institutions are authorized or required by law or other governmental actions to close.

     “Capital Lease”, as applied to any Person, shall mean any lease of any property (whether real,
personal or mixed) by that Person as lessee that, in conformity with GAAP, is, or is required to
be, accounted for as a finance lease obligation on the balance sheet of that Person.

     “Capital Stock” shall mean common shares, preferred shares or other equivalent equity
interests (howsoever designated) of capital stock of a corporation, equity preferred or common
interests or membership interests in a limited liability company, limited or general partnership
interests in a partnership or any other equivalent of such ownership interest.

4

 

     “Capitalized Lease Obligations” shall mean, as applied to any Person, all obligations under
Capital Leases of such Person and its Subsidiaries, in each case taken at the amount thereof
accounted for as liabilities in accordance with GAAP.

     “Change of Ownership” shall mean and be deemed to have occurred if (i) any person or group
(within the meaning of the Securities and Exchange Act of 1934, as amended, and the rules of the
Securities and Exchange Commission thereunder) shall become, directly or indirectly, the beneficial
owner of capital stock representing more than 35% of the ordinary voting power represented by the
issued and outstanding Voting Stock of ITC Holdings; and/or (ii) ITC Holdings ceases to own,
directly or indirectly, 100% of the Voting Stock of the Borrower; and/or (iii) a majority of the
incumbent directors of ITC Holdings ceases to be persons who were either (x) directors of ITC
Holdings on the Closing Date or (y) new directors (such persons being called herein “New Members”)
appointed or nominated for election by one or more persons who were members of the board of
directors of ITC Holdings on the Closing Date or who were appointed or nominated by one or more
such New Members whether or not they were members on the Closing Date.

     “Closing Date” shall mean May 17, 2011.

     “Code” shall mean the Internal Revenue Code of 1986, and the regulations thereunder, in each
case as amended, reformed or otherwise modified from time to time.

     “Commitment Fee Rate” shall have the meaning given to that term in the definition of
“Applicable Margin”.

     “Compliance Certificate” shall have the meaning provided in Section 8.1(c).

     “Confidential Information” shall have the meaning provided in Section 12.17.

     “Control”, “Controls” and “Controlled”, when used with respect to any Person, shall mean the
power to direct the management and policies of such Person, directly or indirectly, whether through
ownership of Voting Stock, by contract or otherwise.

     “Controlled Group”, when used with respect to the Borrower, shall mean all members of a
controlled group of corporations and all members of a controlled group of trades or businesses
(whether or not incorporated) under common control which, together with such Person, are treated as
a single employer under Section 414(b) or 414(c) of the Code or Section 4001 of ERISA.

     “Credit Event” shall mean and include the making (but not the conversion or continuation) of a
Revolving Credit Loan and the issuance, extension or increase of a Letter of Credit.

     “Credit Party” means the Administrative Agent, the Letter of Credit Issuer or any Lender.

5

 

     “Debt to Capitalization Ratio” shall mean, with respect to the Borrower, as of any date of
determination, the ratio of (a) Total Debt for the Borrower as of such date to (b) Total
Capitalization for the Borrower as of such date.

     “Default” shall mean any event, act or condition that with notice or lapse of time, or both,
would constitute an Event of Default.

     “Defaulting Lender” shall mean any Lender, as determined by the Administrative Agent, that (a)
has failed, within three (3) Business Days of the date required to be funded or paid, to (i) fund
any portion of its Loans, (ii) fund any portion of its participations in Letters of Credit or (iii)
pay over to any Credit Party any other amount required to be paid by it hereunder, unless, in the
case of clause (i) above, such Lender notifies the Administrative Agent in writing that such
failure is the result of such Lender’s good faith determination that a condition precedent to
funding (specifically identified and including the condition precedent, together with any
applicable default) has not been satisfied, (b) has notified the Borrower or any Credit Party in
writing, or has made a public statement to the effect, that it does not intend or expect to comply
with any of its funding obligations under this Agreement (unless such writing or public statement
indicates that such position is based on such Lender’s good faith determination that a condition
precedent (specifically identified and including the condition precedent, together with any
applicable default) to funding a loan under this Agreement cannot be satisfied) or generally under
other agreements in which it commits to extend credit, (c) has failed, within three (3) Business
Days after written request by a Credit Party, acting in good faith, to provide a certification in
writing from an authorized officer of such Lender that it will comply with its obligations to fund
prospective Loans and participations in then outstanding Letters of Credit under this Agreement,
provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon
such Credit Party’s receipt of such certification in form and substance satisfactory to it and the
Administrative Agent, or (d) has become, or has a Parent that has become, the subject of a
Bankruptcy Event.

     “Dollars” and “$” shall mean lawful currency of the United States.

     “Environmental Claims” shall mean, with respect to any Person, any and all administrative,
regulatory or judicial actions, suits, demands, demand letters, claims, liens, notices of
non-compliance, investigations (other than internal reports prepared by such Person or any of its
Subsidiaries (a) in the ordinary course of such Person’s business or (b) as required in connection
with a financing transaction or an acquisition or disposition of real estate) or proceedings
relating in any way to any Environmental Law or any permit issued, or any approval given, under any
such Environmental Law (hereinafter, “Claims”), including (i) any and all Claims by governmental or
regulatory authorities for enforcement, cleanup, removal, response, remedial or other actions or
damages pursuant to any applicable Environmental Law and (ii) any and all Claims by any third party
seeking damages, contribution, indemnification, cost recovery, compensation or injunctive relief
resulting from Hazardous Materials or arising from alleged injury or threat of injury to health,
safety (with respect to Hazardous Materials or conditions in the environment) or the environment.

     “Environmental Law” shall mean any applicable federal, provincial, state, foreign or local
statute, law, rule, regulation, ordinance, code and rule of common law now or hereafter in

6

 

effect and in each case as amended, and any binding judicial or administrative interpretation
thereof, including any binding judicial or administrative order, consent decree or judgment,
relating to the environment, human health or safety (with respect to Hazardous Materials or
conditions in the environment) or Hazardous Materials.

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, and any
successor statute thereto of similar import, together with the regulations thereunder, in each case
as in effect from time to time. References to Sections of ERISA also refer to any successor
Sections thereto.

     “Event of Default” shall have the meaning provided in Article 10.

     “FATCA” means Section 1471 through 1474 of the Code, as of the date of this Agreement, and any
regulations or official interpretations thereof.

     “Federal Funds Effective Rate” shall mean, for any day, the weighted average of the per annum
rates on overnight federal funds transactions with members of the Federal Reserve System arranged
by federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve
Bank of New York, or, if such rate is not so published for any day that is a Business Day, the
average of the quotations for the day of such transactions received by the Administrative Agent
from three federal funds brokers of recognized standing selected by it.

     “Fees” shall mean all amounts payable pursuant to, or referred to in, Section 4.1.

     “Finance Parties” shall mean the Administrative Agent and the Lenders.

     “Fronting Fee” shall have the meaning provided in Section 4.1(c).

     “F.R.S. Board” shall mean the Board of Governors of the Federal Reserve System or any
successor thereto.

     “GAAP” shall mean generally accepted accounting principles in the United States as in effect
from time to time.

     “Governmental Authority” shall mean any nation or government, any state or other political
subdivision thereof, and any entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government.

     “Guarantee Obligations” shall mean, as to any Person, any obligation of such Person
guaranteeing or intended to guarantee any Indebtedness of any other Person (the “primary obligor”)
in any manner, whether directly or indirectly, including any obligation of such Person, whether or
not contingent, (a) to purchase any such Indebtedness or any property constituting direct or
indirect security therefor, (b) to advance or supply funds (i) for the purchase or payment of any
such Indebtedness or (ii) to maintain working capital or equity capital of the primary obligor or
otherwise to maintain the net worth or solvency of the primary obligor, (c) to purchase property,
securities or services primarily for the purpose of assuring the owner of any such Indebtedness of
the ability of the primary obligor to make payment of such Indebtedness or (d) otherwise to assure
or hold harmless the owner of such Indebtedness against loss in respect

7

 

thereof; provided that, the term “Guarantee Obligations” shall not include endorsements of
instruments for deposit or collection in the ordinary course of business. The amount of any
Guarantee Obligation shall be deemed to be an amount equal to the stated or determinable amount of
the Indebtedness in respect of which such Guarantee Obligation is made or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person
is required to perform thereunder) as determined by such Person in good faith or, if the Guarantee
Obligation is expressly limited to a specified amount, such specified amount.

     “Hazardous Material” shall mean (a) any petroleum or petroleum products, radioactive
materials, friable asbestos, urea formaldehyde foam insulation, transformers or other equipment
that contain dielectric fluid containing regulated levels of polychlorinated biphenyls, and radon
gas; (b) any chemicals, materials or substances defined as or included in the definition of
“hazardous substances”, “hazardous waste”, “hazardous materials”, “extremely hazardous waste”,
“restricted hazardous waste”, “toxic substances”, “toxic pollutants”, “contaminants”, or
“pollutants”, or words of similar import, under any applicable Environmental Law; and (c) any other
chemical, material or substance, exposure to which is prohibited, limited or regulated by any
Governmental Authority.

     “Hostile Take-Over Bid” shall mean an offer to purchase a controlling interest in any Person
by the Borrower or any of its Subsidiaries or in which the Borrower or any of its Subsidiaries is
involved, in respect of which the board of directors (or equivalent governing body for such entity)
of the target entity has recommended against acceptance of such offer to the target entity’s
shareholders or equity holders or which is similarly opposed or contested.

     “including” and “include” shall mean including without limiting the generality of any
description preceding such term, and, for purposes of this Agreement, the parties hereto agree that
the rule of ejusdem generis shall not be applicable to limit a general statement, which is followed
by or referable to an enumeration of specific matters, to matters similar to the matters
specifically mentioned.

     “Indebtedness” of any Person shall mean (a) all indebtedness of such Person for borrowed
money, (b) the deferred purchase price of assets or services that in accordance with GAAP would be
classified as a liability on the balance sheet of such Person, (c) the face amount of all letters
of credit issued for the account of such Person and, without duplication, all drafts drawn
thereunder, (d) all Indebtedness of a second Person secured by any Lien on any property owned by
such first Person, whether or not such Indebtedness has been assumed, (e) all Capitalized Lease
Obligations of such Person, (f) all existing payment obligations of such Person under interest rate
swap, cap or collar agreements, interest rate future or option contracts, currency swap agreements,
currency future or option contracts and other similar agreements, (g) all existing payment
obligations of such Person under commodity future contracts and other similar agreements and (h)
without duplication, all Guarantee Obligations of such Person; provided that, Indebtedness shall
not include current payables and accrued expenses, in each case arising in the ordinary course of
business.

     “ITC Holdings” shall mean ITC Holdings Corp., a Michigan corporation.

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     “ITC Holdings Credit Agreement” shall mean the Revolving Credit Agreement, dated as of the
date hereof (as amended, supplemented or otherwise modified from time to time), among ITC Holdings,
the various financial institutions and other Persons from time to time parties thereto and JPMCB,
as administrative agent.

     “ITC Holdings Existing Credit Agreement” means the Revolving Credit Agreement dated as of
March 29, 2007 (as amended, supplemented or otherwise modified from time to time) among ITC
Holdings, various financial institutions and other persons from time to time party thereto and
JPMCB as administrative agent.

     “ITCTransmission” shall mean International Transmission Company, a Michigan corporation and
Subsidiary of ITC Holdings.

     “ITCTransmission Credit Agreement” shall mean the Revolving Credit Agreement, dated as of the
date hereof (as amended, supplemented or otherwise modified from time to time), among
ITCTransmission, the various financial institutions and other Persons from time to time parties
thereto and JPMCB, as administrative agent.

     “ITCTransmission/METC Existing Credit Agreement” shall mean the Revolving Credit Agreement,
dated as of March 29, 2007 (as amended, supplemented or otherwise modified from time to time),
among the Borrower, ITCTransmission, the various financial institutions and other Persons from time
to time parties thereto and JPMCB, as administrative agent.

     “L/C Maturity Date” shall mean the date that is five Business Days prior to the Revolving
Credit Maturity Date.

     “L/C Participant” shall have the meaning provided in Section 3.3(a).

     “L/C Participation” shall have the meaning provided in Section 3.3(a).

     “Lender” and “Lenders” shall have the respective meanings provided in the preamble to this
Agreement.

     “Letter of Credit” shall mean each standby letter of credit issued pursuant to Section
3.1.

     “Letter of Credit Exposure” shall mean, with respect to any Lender, the sum of (a) the amount
of any Unpaid Drawings on Letters of Credit in respect of which such Lender has made (or is
required to have made) payments to the Letter of Credit Issuer pursuant to Section 3.4(a)
and (b) such Lender’s Revolving Credit Commitment Percentage of the Letter of Credit Outstanding
(excluding the portion thereof consisting of Unpaid Drawings in respect of which the Lenders have
made (or are required to have made) payments to the Letter of Credit Issuer pursuant to Section
3.4(a)).

     “Letter of Credit Fee” shall have the meaning provided in Section 4.1(b).

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     “Letter of Credit Issuer” shall mean JPMCB, any of its Affiliates or any successor thereto
pursuant to Section 3.6.

     “Letter of Credit Outstanding” shall mean, at any time, the sum, without duplication, of (a)
the aggregate Stated Amount of all outstanding Letters of Credit and (b) the aggregate amount of
all Unpaid Drawings in respect of all Letters of Credit.

     “Letter of Credit Request” shall have the meaning provided in Section 3.2.

     “LIBOR” shall mean, with respect to each LIBOR Period for each LIBOR Loan, a rate per annum,
expressed on the basis of a 360 day year, equal to the annual interest rate for deposits of Dollars
for a maturity most nearly comparable to such LIBOR Period which appears on Reuters Page LIBOR1 (or
any successor page which displays an average British Bankers Association Interest Settlement Rate)
as of 11:00 a.m. (London time) on the second Business Day prior to the commencement of such LIBOR
Period; provided that if such Service is not available on such day, then the interest rate at which
the Administrative Agent is offered deposits of Dollars by leading banks in the London interbank
market as of 11:00 a.m. (London time) on the second Business Day prior to the commencement of such
LIBOR Period, for delivery on the first day of such LIBOR Period for the number of days comprised
in such LIBOR Period and in an amount comparable to the amount of such LIBOR Loan.

     “LIBOR Loan” shall mean each Loan bearing interest at the rate provided in Section
2.8(b).

     “LIBOR Period” shall mean, with respect to a LIBOR Loan, the interest period selected by the
Borrower for such LIBOR Loan in accordance with Section 2.9.

     “Lien” shall mean any mortgage, pledge, security interest, hypothecation, assignment by way of
security, lien (statutory or other) or similar encumbrance (including any agreement to give any of
the foregoing, any conditional sale or other title retention agreement or any lease in the nature
thereof).

     “Material Adverse Effect” shall mean a circumstance or condition affecting the business,
assets, operations, properties or financial condition of the Borrower and its Subsidiaries taken as
a whole that would materially adversely affect the ability of the Borrower to perform its
obligations under this Agreement.

     “METC First Mortgage Indenture” means the First Mortgage Indenture, dated as of December 10,
2003, between the Borrower and The Bank of New York Mellon Trust Company, N.A. (f/k/a The Bank of
New York Trust Company, N.A.) (as successor to JPMorgan Chase Bank, N.A.), as Trustee, as the same
may be amended, supplemented or otherwise modified from time to time.

     “Minimum Borrowing Amount” shall mean $500,000.

     “Moody’s” shall mean Moody’s Investors Service, Inc. or any successor by merger or
consolidation to its business.

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     “Non-U.S. Lender” shall mean any Lender that is not a “United States person”, as defined under
Section 7701(a)(30) of the Code.

     “Notice of Borrowing” shall mean a Notice of Borrowing provided pursuant to Section
2.3(a), substantially in the form of Exhibit A.

     “Notice of Continuation” shall have the meaning provided in Section 2.6(a).

     “Organic Document” shall mean, relative to any Person, its certificate of incorporation,
by-laws, certificate of partnership, partnership agreement, certificate of formation, limited
liability agreement, operating agreement and all shareholder agreements, voting trusts and similar
arrangements applicable to any of such Person’s Capital Stock.

     “Other Taxes” shall have the meaning provided in Section 12.5.

     “Parent” means, with respect to any Lender, any Person as to which such Lender is, directly or
indirectly, a subsidiary.

     “Participant” shall have the meaning provided in Section 12.6(c)(i).

     “Pension Plan” shall mean a “pension plan”, as such term is defined in Section 3(2) of ERISA,
which is subject to Title IV of ERISA (other than a multiemployer plan as defined in Section
4001(a)(3) of ERISA), and to which the Borrower or any corporation, trade or business that is,
along with the Borrower, a member of a Controlled Group, is a contributing employer or a sponsor.

     “Permitted Liens” shall mean (a) Liens for taxes, assessments, customs duties or governmental
charges or claims not yet due or which are being contested in good faith and by appropriate
proceedings for which appropriate provisions have been established in accordance with GAAP; (b)
Liens in respect of property or assets of the Borrower or any of its Subsidiaries imposed by law,
such as carriers’, warehousemen’s and or mechanics’ Liens, and other similar Liens arising in the
ordinary course of business and Liens arising under zoning laws and ordinances and municipal bylaws
and regulations, in each case so long as such Liens arise in the ordinary course of business and do
not individually or in the aggregate have a Material Adverse Effect; (c) Liens arising from
judgments or decrees in circumstances not constituting an Event of Default under Section
10.6; (d) Liens (other than those arising by Requirement of Law that are not permitted by
clause (a) of this definition) incurred or deposits made in connection with workers’ compensation,
unemployment insurance and other types of social security, or to secure the performance of tenders,
statutory obligations, surety and appeal bonds, bids, leases, government contracts, performance and
return-of-money bonds and other similar obligations incurred in the ordinary course of business;
(e) ground leases in respect of real property on which facilities owned or leased by the Borrower
or any of its Subsidiaries are located; (f) easements, rights-of-way, restrictive covenants or
agreements, minor defects or irregularities in title and other similar charges or encumbrances not
interfering in any material respect with the business of the Borrower and its Subsidiaries taken as
a whole; (g) any interest or title of a lessor or secured by a lessor’s interest under any lease
permitted by this Agreement; (h) Liens incurred by the licensing of trademarks by the Borrower or
any of its Subsidiaries to others in the ordinary

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course of business; and (i) leases or subleases granted to others, not interfering in any
material respect with the business of the Borrower and its Subsidiaries taken as a whole.

     “Person” shall mean any individual, partnership, joint venture, firm, corporation, limited
liability company, association, trust or other enterprise or any Governmental Authority.

     “Projections” shall have the meaning provided in Section 6.1(i).

     “Real Estate” shall have the meaning provided in Section 8.1(e).

     “Register” shall have the meaning provided in Section 12.6(b)(iv).

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

     “Required Lenders” shall mean, at any date, Lenders having or holding more than 50% of the
Total Revolving Credit Commitment at such date (provided that in the case of a Defaulting Lender,
for this purpose only, its Revolving Credit Commitment shall be deemed to be equal to the
outstanding principal amount of all Revolving Credit Loans of such Defaulting Lender at such date)
or, if the Revolving Credit Commitments have terminated, more than 50% of the outstanding principal
amount of all Revolving Credit Loans and Letter of Credit Exposure on such date.

     “Requirement of Law” shall mean, as to any Person, the Certificate of Incorporation and
By-Laws or other organizational or governing documents of such Person, and any law, treaty, rule,
regulation, guideline, policy or determination of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such Person or any of its property or assets
or to which such Person or any of its property or assets is subject and whether or not having the
force of law.

     “Revolving Credit Commitment” shall mean, (a) with respect to each Lender that is a Lender on
the date hereof, the amount set forth on Schedule I as such Lender’s “Revolving Credit
Commitment” and (b) in the case of any Lender that becomes a Lender after the date hereof by
assignment, the amount specified as such Lender’s “Revolving Credit Commitment” in the Assignment
and Acceptance contemplated in Section 12.6 pursuant to which such Lender assumed a portion
of the Total Revolving Credit Commitment, in each case as the same may be changed from time to time
pursuant to the terms hereof (including pursuant to Sections 4.2 and 12.6).

     “Revolving Credit Commitment Percentage” shall mean, with respect to any Lender, the
percentage of the Total Revolving Credit Commitment represented by such Lender’s Revolving Credit
Commitment; provided that in the case of Section 2.14 when a Defaulting Lender
shall exist, “Revolving Credit Commitment Percentage” shall mean the percentage of the Total
Revolving Credit Commitment (disregarding any Defaulting Lender’s Revolving Credit Commitment)
represented by such Lender’s Revolving Credit Commitment. If the Total Revolving Credit
Commitments have terminated or expired, the Revolving Credit Commitment Percentages shall be
determined based upon the Revolving Credit Commitments most recently in

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effect, giving effect to any assignments and to the Lender’s status as a Defaulting Lender at
the time of determination.

     “Revolving Credit Exposure” shall mean, with respect to any Lender at any time, the sum of (a)
the aggregate principal amount of the Revolving Credit Loans of such Lender then outstanding and
(b) such Lender’s Letter of Credit Exposure at such time.

     “Revolving Credit Loan” shall have the meaning provided in Section 2.1(a).

     “Revolving Credit Maturity Date” shall mean May 17, 2016, or, if earlier, the date on which
the Revolving Credit Commitments shall have terminated or shall have been reduced to zero.

     “Sale and Leaseback Transaction” shall have the meaning provided in Section 9.5.

     “S&P” shall mean Standard & Poor’s Ratings Services or any successor by merger or
consolidation to its business.

     “Securities Act” shall mean the Securities Act of 1933, as amended.

     “Stated Amount” of any Letter of Credit shall mean the maximum amount from time to time
available to be drawn thereunder, determined without regard to whether any conditions to drawing
could then be met.

     “Subsidiary” of any Person shall mean and include (a) any corporation more than 50% of whose
stock of any class or classes having by the terms thereof ordinary voting power to elect a majority
of the directors of such corporation (irrespective of whether or not at the time stock or issued
share capital of any class or classes of such corporation shall have or might have voting power by
reason of the happening of any, contingency) is at the time owned by such Person directly or
indirectly through Subsidiaries and (b) any partnership, association, joint venture or other entity
in which such Person directly or indirectly through Subsidiaries has more than a 50% equity
interest and more than a 50% voting interest at the time and (c) any other corporation,
partnership, joint venture or other entity (i) the accounts of which would be consolidated with
those of such Person in such Person’s consolidated financial statements if such statements were
prepared in accordance with GAAP and (ii) that is controlled (as defined in clause (b) of the
definition of such term in the definition of the term “Affiliate”) by such Person. Unless otherwise
expressly provided, all references herein to a “Subsidiary” shall mean a Subsidiary of the
Borrower.

     “Successor Borrower” shall have the meaning provided in Section 9.2(a).

     “Taxes” shall have the meaning provided in Section 5.3(a)(i).

     “Total Capitalization” shall mean, as of any date of determination, the sum, without
duplication, of (a) Total Debt and (b) the total stockholder’s equity of the Borrower as determined
in accordance with GAAP; provided that the term “Total Capitalization” shall exclude the non-cash
effects of the March 31, 2006 FAS Statement titled “Employers’ Accounting for Defined Pension and
Postretirement Plans”.

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     “Total Debt” shall mean, as of any date of determination, (a) the sum, without duplication, of
(i) all Indebtedness of the Borrower and its Subsidiaries for borrowed money outstanding on such
date, (ii) all Capitalized Lease Obligations of the Borrower and its Subsidiaries outstanding on
such date and (iii) all Indebtedness of the Borrower and its Subsidiaries of the types described in
clauses (b) and (d) of the definition of Indebtedness (but in the case of clause (d), only to the
extent such Indebtedness is assumed by the Borrower or any Subsidiary), all calculated on a
consolidated basis in accordance with GAAP and to the extent reflected as Indebtedness on the
consolidated balance sheet of the Borrower in accordance with GAAP minus (b) the aggregate amount
of cash held by the Borrower and its Subsidiaries as at such date and included in the cash accounts
listed on the consolidated balance sheet of the Borrower and its Subsidiaries and deposited with
the Administrative Agent to the extent the use thereof for application to payment of Indebtedness
of the Borrower and its Subsidiaries is not prohibited by law or any contract to which the Borrower
or any of its Subsidiaries is a party (but in each case excluding equity securities that are
mandatorily redeemable 91 or more days after the Revolving Credit Maturity Date and that are
classified as hybrid securities by Moody’s and/or S&P).

     “Total Revolving Credit Commitment” shall mean the sum of the Revolving Credit Commitments of
all the Lenders, which as of the Closing Date was $100,000,000.

     “Type” shall mean as to any Revolving Credit Loan, its nature as an ABR Loan or a LIBOR Loan.

     “United States” and “US” shall mean the United States of America.

     “Unpaid Drawing” shall have the meaning provided in Section 3.4(a).

     “Voting Stock” shall mean Capital Stock of a Person which carries voting rights or the right
to Control such Person under any circumstances; provided that Capital Stock which carries the right
to vote or Control conditionally upon the happening of an event shall not be considered Voting
Stock until the occurrence of such event and then only during the continuance of such event.

     “Welfare Plan” shall mean a “welfare plan”, as such term is defined in Section 3(1) of ERISA.

     1.2 Accounting Terms; GAAP.

     Except as otherwise expressly provided herein, all terms of an accounting or financial nature
shall be construed in accordance with GAAP, as in effect from time to time; provided that,
if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any
provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or
in the application thereof on the operation of such provision (or if the Administrative Agent
notifies the Borrower that the Required Lenders request an amendment to any provision hereof for
such purpose), regardless of whether any such notice is given before or after such change in GAAP
or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in
effect and applied immediately before such change shall have become effective until such notice
shall have been withdrawn or such provision amended in accordance

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herewith. Notwithstanding any other provision contained herein, all terms of an accounting or
financial nature used herein shall be construed, and all computations of amounts and ratios
referred to herein shall be made (i) without giving effect to any election under Accounting
Standards Codification 825-10-25 (previously referred to as Statement of Financial Accounting
Standards 159) (or any other Accounting Standards Codification or Financial Accounting Standard
having a similar result or effect) to value any Indebtedness or other liabilities of the Borrower
or any Subsidiary at “fair value”, as defined therein and (ii) without giving effect to any
treatment of Indebtedness in respect of convertible debt instruments under Accounting Standards
Codification 470-20 to value any such Indebtedness in a reduced or bifurcated manner as described
therein, and such Indebtedness shall at all times be valued at the full stated principal amount
thereof.

     1.3 Interpretation.

     The definitions of terms herein shall apply equally to the singular and plural forms of the
terms defined. Unless the context requires otherwise all references herein to Sections and
Schedules shall be construed to refer to Sections of, and Schedules to, this Agreement.

ARTICLE 2

AMOUNT AND TERMS OF CREDIT

     2.1 Commitments.

     (a) Subject to and upon the terms and conditions herein set forth, each Lender severally
agrees to make a loan or loans (each a “Revolving Credit Loan” and, collectively, the “Revolving
Credit Loans”) to the Borrower, which Revolving Credit Loans (i) shall be made at any time and from
time to time on and after the Closing Date and prior to the Revolving Credit Maturity Date, (ii)
may, at the option of the Borrower, be incurred and maintained as, and/or converted into, ABR Loans
or LIBOR Loans (provided that all Revolving Credit Loans made by each of the Lenders pursuant to
the same Borrowing shall, unless otherwise specifically provided herein, consist entirely of
Revolving Credit Loans of the same Type), (iii) may be repaid and reborrowed in accordance with the
provisions hereof and shall be repaid in full on the Revolving Credit Maturity Date, (iv) for any
such Lender at any time, shall not result in such Lender’s Revolving Credit Exposure at such time
exceeding such Lender’s Revolving Credit Commitment at such time and (v) after giving effect
thereto and to the application of the proceeds thereof, shall not result at any time in the
aggregate amount of the Lenders’ Revolving Credit Exposures exceeding the Total Revolving Credit
Commitment then in effect. As of the Closing Date, the Total Revolving Credit Commitment will be
$100,000,000.

     (b) The Borrower shall use the Letters of Credit and the proceeds from the Revolving Credit
Loans for general corporate purposes of the Borrower and its Subsidiaries (including to finance
acquisitions); provided that, notwithstanding any of the foregoing, none of the proceeds from
Revolving Credit Loans may be used to finance any Hostile Take-Over Bid.

     2.2 Minimum Amount of Each Borrowing; Maximum Number of Borrowings.

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     The aggregate principal amount of each Borrowing of Revolving Credit Loans shall be in a
multiple of $100,000 and shall not be less than the Minimum Borrowing Amount. More than one
Borrowing may be incurred on any date; provided that at no time shall there be outstanding more
than 15 Borrowings of LIBOR Loans under this Agreement.

     2.3 Notice of Borrowing.

     (a) Whenever the Borrower desires to incur Revolving Credit Loans hereunder (other than
Borrowings to repay Unpaid Drawings), it shall give the Administrative Agent at an office of the
Administrative Agent from time to time notified by the Administrative Agent to the Borrower (but
initially the office set forth for the Administrative Agent in Section 12.2(a)(ii)), (i) a
written Notice of Borrowing (or telephonic notice promptly confirmed in writing) prior to 12:00
noon (New York time) at least three Business Days prior to the proposed day of each Borrowing of
LIBOR Loans and (ii) a written Notice of Borrowing (or telephonic notice promptly confirmed in
writing) prior to 10:00 a.m. (New York time) on the proposed day of each Borrowing of ABR Loans.
Each such Notice of Borrowing, except as otherwise expressly provided in Section 2.10,
shall be irrevocable and shall specify (i) the aggregate principal amount of the Revolving Credit
Loans to be made pursuant to such Borrowing, (ii) the date of Borrowing (which shall be a Business
Day), (iii) whether the Borrowing shall consist of ABR Loans or LIBOR Loans, (iv) if such Borrowing
shall consist of LIBOR Loans, the LIBOR Period to be initially applicable thereto and (v) the
number and location of the account to which funds are to be disbursed. The Administrative Agent
shall promptly give each Lender written notice (or telephonic notice promptly confirmed in writing)
of each proposed Borrowing of Revolving Credit Loans, of such Lender’s proportionate share thereof
and of the other matters covered by the related Notice of Borrowing.

     (b) Borrowings to reimburse Unpaid Drawings shall be made upon the notice specified in
Section 3.4(c).

     (c) Without in any way limiting the obligation of the Borrower to confirm in writing any
notice it may give hereunder by telephone, the Administrative Agent may act prior to receipt of
written confirmation without liability upon the basis of such telephonic notice believed by the
Administrative Agent in good faith to be from an Authorized Officer of the Borrower. In each such
case the Borrower hereby waives the right to dispute the Administrative Agent’s record of the terms
of any such telephonic notice.

     2.4 Disbursement of Funds.

     (a) No later than 12:00 Noon (New York time) on the date specified in each Notice of
Borrowing, each Lender will make available its pro rata portion, if any, of each Borrowing
requested to be made on such date in the manner provided below.

     (b) Each Lender shall make available all amounts it is to fund under any Borrowing in
immediately available funds to the Administrative Agent at an office of the Administrative Agent
from time to time notified by the Administrative Agent to the Lenders (but initially the office set
forth for the Administrative Agent in Section 12.2(a)(ii)), and the Administrative Agent
will (except in the case of Borrowings to repay Unpaid Drawings) make available to the

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Borrower by depositing such funds as specified in the applicable Notice of Borrowing, the
aggregate of the amounts so made available. Unless the Administrative Agent shall have been
notified by any Lender prior to the date of any such Borrowing that such Lender does not intend to
make available to the Administrative Agent its portion of the Borrowing or Borrowings to be made on
such date, the Administrative Agent may assume that such Lender has made such amount available to
the Administrative Agent on such date of Borrowing, and the Administrative Agent, in reliance upon
such assumption, may (in its sole discretion and without any obligation to do so) make available to
the Borrower a corresponding amount. If such corresponding amount is not in fact made available to
the Administrative Agent by such Lender and the Administrative Agent has made available same to the
Borrower, the Administrative Agent shall be entitled to recover such corresponding amount from such
Lender. If such Lender does not pay such corresponding amount forthwith upon the Administrative
Agent’s demand therefor, the Administrative Agent shall promptly notify the Borrower, and the
Borrower shall immediately pay such corresponding amount to the Administrative Agent. The
Administrative Agent shall also be entitled to recover from such Lender or the Borrower, as the
case may be, interest on such corresponding amount in respect of each day from the date such
corresponding amount was made available by the Administrative Agent to the Borrower to the date
such corresponding amount is recovered by the Administrative Agent, at a rate per annum equal to
(i) if paid by such Lender, at the Federal Funds Effective Rate or (ii) if paid by the Borrower,
the then-applicable rate of interest, calculated in accordance with Section 2.8, for the
respective Revolving Credit Loans.

     (c) Nothing in this Section 2.4 shall be deemed to relieve any Lender from its
obligation to fulfill its commitments hereunder or to prejudice any rights that the Borrower may
have against any Lender as a result of any default by such Lender hereunder (it being understood,
however, that no Lender shall be responsible for the failure of any other Lender to fulfill its
commitments hereunder).

     2.5 Repayment of Loans; Evidence of Debt.

     (a) The Borrower shall, for the benefit of the Lenders, on the Revolving Credit Maturity Date,
(i) repay to the Administrative Agent the then-unpaid Revolving Credit Loans and (ii) retire all
other then-outstanding Revolving Credit Exposure.

     (b) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the Indebtedness of the Borrower to the appropriate lending office of such Lender
resulting from each Revolving Credit Loan made by such lending office of such Lender from time to
time, including the amounts and currency of principal and interest payable and paid to such lending
office of such Lender from time to time under this Agreement.

     (c) The Administrative Agent shall maintain the Register pursuant to Section 12.6, and
a sub-account for each Lender, in which Register and sub-accounts (taken together) shall be
recorded (i) the amount of each Revolving Credit Loan made hereunder, the Type of each Revolving
Credit Loan made and the LIBOR Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from the Borrower to each Lender hereunder
and (iii) the amount of any sum received by the Administrative Agent hereunder from the Borrower
and each Lender’s share thereof.

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     (d) The entries made in the Register and accounts and subaccounts maintained pursuant to
paragraphs (b) and (c) of this Section shall, to the extent permitted by applicable law, be prima
facie evidence of the existence and amounts of the obligations of the Borrower therein recorded;
provided that the failure of any Lender or the Administrative Agent to maintain such account, such
Register or such subaccount, as applicable, or any error therein, shall not in any manner affect
the obligation of the Borrower to repay (with applicable interest) the Revolving Credit Loans made
to the Borrower by such Lender in accordance with the terms of this Agreement. In the event that
there is an inconsistency between the accounts maintained by a Lender pursuant to Section
2.5(b) and the Register maintained by the Administrative Agent pursuant to Section
12.6, the said Register shall prevail.

     (e) All payments to be made by the Administrative Agent to any Lender hereunder shall be made
in accordance with the payment instructions of such Lender set forth on the signature page of such
Lender hereunder or, if such Lender is an Assignee, set forth in the Assignment and Acceptance of
such Lender.

     (f) Any Lender may request that Revolving Credit Loans made by it be evidenced by a promissory
note. In such event, the Borrower shall prepare, execute and deliver to such Lender a promissory
note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its
registered assigns) and in a form approved by the Administrative Agent. Thereafter, the Revolving
Credit Loans evidenced by such promissory note and interest thereon shall at all times (including
after assignment pursuant to Section 12.6) be represented by one or more promissory notes
in such form payable to the order of the payee named therein (or, if such promissory note is a
registered note, to such payee and its registered assigns).

     2.6 Changes in Type of Revolving Credit Loan.

     (a) The Borrower shall have the option on any Business Day to convert all or a portion equal
to at least the Minimum Borrowing Amount of the outstanding principal amount of Revolving Credit
Loans made to the Borrower of one Type into a Borrowing or Borrowings of another permitted Type or
to continue the outstanding principal amount of any LIBOR Loans as LIBOR Loans for an additional
LIBOR Period; provided that (i) no partial continuation of LIBOR Loans shall reduce the outstanding
principal amount of LIBOR Loans made pursuant to a single Borrowing to less than the Minimum
Borrowing Amount, (ii) ABR Loans may not be converted into LIBOR Loans, if a Default or Event of
Default is in existence on the date of the proposed conversion and the Administrative Agent has or
the Required Lenders have determined in its or their sole discretion not to permit such conversion,
(iii) LIBOR Loans may not be continued as LIBOR Loans for an additional LIBOR Period if a Default
or Event of Default is in existence on the date of the proposed continuation and the Administrative
Agent has or the Required Lenders have determined in its or their sole discretion not to permit
such continuation, (iv) no LIBOR Period in excess of one month may be selected for any LIBOR Loan
if a Default or Event of Default is in existence on the date of the proposed continuation and the
Administrative Agent has or the Required Lenders have determined in its or their sole discretion
not to permit such longer LIBOR Period, (v) Borrowings resulting from continuations or conversions
pursuant to this Section 2.6 shall be limited in number as provided in Section 2.2
and (vi) the outstanding principal amount of a Revolving Credit Loan of one Type may not be
converted into a Borrowing of another permitted Type until the end of the current LIBOR Period

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for such Revolving Credit Loan. Each such continuation or conversion shall be effected by the
Borrower by giving the Administrative Agent at the location set forth in Section 12.2 prior
to 12:00 Noon (New York time) at least three Business Days’ prior written notice substantially in
the form of Exhibit B (or telephonic notice promptly confirmed in writing) (each a “Notice
of Continuation”) specifying the Revolving Credit Loans to be so continued or converted, the Type
of Revolving Credit Loans to be continued or converted into and, if such Revolving Credit Loans are
to be converted or continued as LIBOR Loans, the LIBOR Period to be initially applicable thereto.
The Administrative Agent shall give each Lender notice as promptly as practicable of any such
proposed continuation or conversion affecting any of its Revolving Credit Loans. This Section
2.6 shall not be construed to permit the Borrower to change the currency of any Borrowing.

     (b) If any Default or Event of Default is in existence at the time of any proposed
continuation of any LIBOR Loans and the Administrative Agent has or the Required Lenders have
determined in its or their sole discretion not to permit such continuation, such LIBOR Loans shall
be automatically converted on the last day of the current LIBOR Period into ABR Loans.

     (c) If upon the expiration of any LIBOR Period, the Borrower has failed to elect a new LIBOR
Period to be applicable thereto as provided in paragraph (a) above, the Borrower shall be deemed to
have elected to convert such Borrowing of LIBOR Loans, as the case may be, into a Borrowing of ABR
Loans, as the case may be, effective as of the expiration date of such current LIBOR Period.

     2.7 Pro Rata Borrowings.

     Each Borrowing of Revolving Credit Loans under this Agreement shall be made by the Lenders pro
rata on the basis of their then-applicable Revolving Credit Commitment Percentage; provided that
the Administrative Agent may adjust the proportions of the Lenders with respect to any Borrowing to
be made by such Lenders to ensure that no Lender’s Revolving Credit Exposure (after granting its
portion of such Borrowing) exceeds its Revolving Credit Commitment. It is understood that no Lender
shall be responsible for any default by any other Lender in its obligation to make Revolving Credit
Loans hereunder and that each Lender shall be obligated to make the Revolving Credit Loans provided
to be made by it hereunder, regardless of the failure of any other Lender to fulfill its
commitments hereunder.

     2.8 Interest and Fees.

     (a) The unpaid principal amount of each ABR Loan shall bear interest from the date of the
Borrowing thereof until maturity (whether by acceleration or otherwise and both before and after
default and judgment) at a rate per annum that shall at all times be equal to the Applicable Margin
for ABR Loans plus the ABR in effect from time to time.

     (b) The unpaid principal amount of each LIBOR Loan shall bear interest from the date of the
Borrowing thereof until maturity (whether by acceleration or otherwise and both before and after
default and judgment) at a rate per annum that shall at all times be equal to the Applicable Margin
for LIBOR Loans plus the relevant LIBOR.

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     (c) If all or a portion of (i) the principal amount of any Revolving Credit Loan or (ii) any
interest thereon or fees payable hereunder shall not be paid when due (whether at the stated
maturity, by acceleration or otherwise), such overdue amount shall bear interest at a rate per
annum that is (x) in the case of overdue principal, equal to the rate that would otherwise be
applicable thereto plus, to the extent permitted by applicable law, 2.00% (after as well as before
maturity and judgment), (y) in the case of any overdue interest with respect to any Revolving
Credit Loan, equal to the rate of interest applicable to such Revolving Credit Loan plus, to the
extent permitted by applicable law, 2.00%, or (z) in the case of any overdue fees or other amounts
owing hereunder, equal to the rate of interest then applicable to Revolving Credit Loans maintained
as ABR Loans plus 2.00%, in each case from and including the date of such non-payment to but
excluding the date on which such amount is paid in full (after as well as before maturity and
judgment). All interest payable pursuant to this Section 2.8(c) shall be payable upon
demand.

     (d) Interest on each Revolving Credit Loan shall accrue from and including the date such
Revolving Credit Loan is made to but excluding the date of any repayment thereof and shall, except
as otherwise provided pursuant to Section 2.8(c), be payable (i) in respect of each ABR
Loan, quarterly in arrears on the last Business Day of each of March, June, September and December
(for the three-month period (or portion thereof) ended on such day), (ii) in respect of each LIBOR
Loan, on the last day of each LIBOR Period applicable thereto and, in the case of a LIBOR Period in
excess of three months, on each date occurring at three-month intervals after the first day of such
LIBOR Period and (iii) in respect of each Revolving Credit Loan on any payment or prepayment (on
the amount paid or prepaid), at maturity (whether by acceleration or otherwise) and, after such
maturity, on demand.

     (e) All computations of interest hereunder shall be made in accordance with Section
5.4.

     (f) The Administrative Agent, upon determining the interest rate for any Borrowing of LIBOR
Loans, shall promptly notify the Borrower and the Lenders thereof. Each such determination shall,
absent clearly demonstrable error, be final and conclusive and binding on all parties hereto.

     2.9 Interest Periods.

     At the time the Borrower gives a Notice of Borrowing or Notice of Continuation in respect of
the making of, or conversion into or continuation as, a Borrowing of LIBOR Loans prior to 10:00
a.m. (New York time) on the third Business Day prior to the applicable date of making or conversion
or continuation of such LIBOR Loans, the Borrower shall have the right to elect by giving the
Administrative Agent written notice of (or telephonic notice promptly confirmed in writing) the
LIBOR Period applicable to such Borrowing, which LIBOR Period shall, at the option of the Borrower,
be two weeks or one, two, three or six months. Notwithstanding anything to the contrary contained
above:

     (a) the initial LIBOR Period for any Borrowing of LIBOR Loans shall commence on the
date of such Borrowing (including the date of any conversion from a Borrowing of ABR Loans)
and each LIBOR Period occurring thereafter in respect of

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such Borrowing shall commence on the day on which the next preceding LIBOR Period
expires;

     (b) if any LIBOR Period relating to a Borrowing of LIBOR Loans begins on the last
Business Day of a calendar month or begins on a day for which there is no numerically
corresponding day in the calendar month at the end of such LIBOR Period, such LIBOR Period
shall end on the last Business Day of the calendar month at the end of such LIBOR Period;

     (c) if any LIBOR Period would otherwise expire on a day that is not a Business Day,
such LIBOR Period shall expire on the next succeeding Business Day; provided that if any
LIBOR Period in respect of a LIBOR Loan would otherwise expire on a day that is not a
Business Day but is a day of the month after which no further Business Day occurs in such
month, such LIBOR Period shall expire on the next preceding Business Day; and

     (d) the Borrower shall not be entitled to elect any LIBOR Period in respect of any
LIBOR Loan if such LIBOR Period would extend beyond the Revolving Credit Maturity Date.

     2.10 Increased Costs, Illegality, etc.

     (a) In the event that any Lender shall have reasonably determined (which determination shall,
absent clearly demonstrable error, be final and conclusive and binding upon all parties hereto):

     (i) on any date for determining LIBOR for a Borrowing of LIBOR Loans for any LIBOR
Period that by reason of any changes arising on or after the date hereof affecting the
London interbank market (x) deposits in Dollars in the principal amounts of the Revolving
Credit Loans comprising such Borrowing are not readily available to such Lender in the
London interbank market or (y) adequate and fair means do not exist for ascertaining the
applicable interest rate on the basis provided for in the definition of LIBOR; or

     (ii) at any time, that such Lender shall incur increased costs or reductions in the
amounts received or receivable hereunder with respect to any Revolving Credit Loans (other
than any such increase or reduction attributable to (A) Taxes, (B) Other Taxes or (C) taxes
excluded by Section 5.3(a)(i)) because of (x) any change since the date hereof in
any applicable law, governmental rule, regulation, guideline or order (or in the
interpretation or administration thereof and including the introduction of any new law or
governmental rule, regulation, guideline or order), such as, for example, but not limited
to, a change in official reserve requirements (including any reserve requirements specified
under regulations issued from time to time by the F.R.S. Board and then applicable to assets
or liabilities consisting of and including “Eurocurrency Liabilities” as therein defined or
the imposition of any tax on the Administrative Agent or any Lender on its loans, loan
principal, letters of credit, commitments, or other obligations, or its

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deposits, reserves, other liabilities or capital attributable thereto), and/or (y) with
respect to LIBOR Loans only, other circumstances affecting the London interbank market; or

     (iii) at any time, that the making or continuance of any LIBOR Loan has become unlawful
by compliance by such Lender in good faith with any law, governmental rule, regulation,
guideline or order (or would conflict with any such governmental rule, regulation, guideline
or order not having the force of law even though the failure to comply therewith would not
be unlawful), or has become impracticable as a result of a contingency occurring after the
date hereof that materially and adversely affects the London interbank market;

then, and in any such event, such Lender shall within a reasonable time thereafter give notice (if
by telephone confirmed in writing) to the Borrower and to the Administrative Agent of such
determination (which notice the Administrative Agent shall promptly transmit to each of the other
Lenders). Thereafter (x) in the case of clause (i) above, LIBOR Loans shall no longer be available
from such Lender (and such Lender’s obligation to make such Revolving Credit Loans shall be
suspended) until such time as such Lender notifies the Administrative Agent, the Borrower and the
Lenders that the circumstances giving rise to such notice by the Administrative Agent no longer
exist (which notice such Lender agrees to give at such time when such circumstances no longer
exist), and any Notice of Borrowing or Notice of Continuation given by the Borrower with respect to
LIBOR Loans that have not yet been incurred shall be deemed, with respect to such Lender only, to
be a Notice of Borrowing or Notice of Continuation for ABR Loans, (y) in the case of clause (ii)
above, the Borrower shall pay to such Lender, promptly after receipt of written demand therefor,
such additional amounts (in the form of an increased rate of, or a different method of calculating,
interest or otherwise as such Lender in its reasonable discretion shall determine) as shall be
required to compensate such Lender for such increased costs or reductions in amounts receivable
hereunder (it being agreed that a written notice as to the additional amounts owed to such Lender,
showing in reasonable detail the basis for the calculation thereof, submitted to the Borrower by
such Lender shall, absent clearly demonstrable error, be final and conclusive and binding upon all
parties hereto) other than any such increase or reduction attributable to taxes and (z) in the case
of clause (iii) above, the Borrower shall take one of the actions specified in Section
2.10(b) as promptly as possible and, in any event, within the time period required by law.

     (b) At any time that any LIBOR Loan is affected by the circumstances described in Section
2.10(a)(ii) or 2.10(a)(iii), the Borrower may (and in the case of a LIBOR Loan affected
pursuant to Section 2.10(a)(iii) shall) either (i) if the affected LIBOR Loan is then being
made pursuant to a Credit Event or Borrowing by way of conversion into a LIBOR Loan, cancel said
Credit Event or Borrowing by giving the Administrative Agent telephonic notice (confirmed promptly
in writing) thereof on the same date that the Borrower was notified by a Lender pursuant to
Section 2.10(a)(ii) or 2.10(a)(iii), or (ii) if the affected LIBOR Loan is then
outstanding, upon at least three Business Days notice to the Administrative Agent, require the
affected Lender to convert each such LIBOR Loan into an ABR Loan; provided that if more than one
Lender is affected at any time, then all affected Lenders must be treated in the same manner
pursuant to this Section 2.10(b).

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     (c) If, after the date hereof, the adoption of any applicable law, rule or regulation
regarding capital adequacy, or any change therein, or any change in the interpretation or
administration thereof by any Governmental Authority, or compliance by a Lender or its parent with
any request or directive made or adopted after the date hereof regarding capital adequacy (whether
or not having the force of law) of any such Governmental Authority, has or would have the effect of
reducing the rate of return on such Lender’s or its parent’s capital or assets as a consequence of
such Lender’s commitments or obligations hereunder to a level below that which such Lender or its
parent could have achieved but for such adoption, effectiveness, change or compliance (taking into
consideration such Lender’s or its parent’s policies with respect to capital adequacy), then from
time to time, promptly after demand by such Lender (with a copy to the Administrative Agent), the
Borrower shall pay to such Lender such additional amount or amounts as will compensate such Lender
or its parent for such reduction, it being understood and agreed, however, that a Lender shall not
be entitled to such compensation as a result of such Lender’s compliance with, or pursuant to any
request or directive to comply with, any such law, rule or regulation as in effect on the date
hereof. Each Lender, upon determining in good faith that any additional amounts will be payable
pursuant to this Section 2.10(c), will give prompt written notice thereof to the Borrower,
which notice shall set forth in reasonable detail the basis of the calculation of such additional
amounts, although the failure to give any such notice shall not, subject to Section 2.13,
release or diminish the Borrower’s obligations to pay additional amounts pursuant to this
Section 2.10(c) upon receipt of such notice.

     (d) For purposes of this Section 2.10, and notwithstanding anything herein to the
contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests,
rules, requirements, guidelines and directives thereunder or issued in connection therewith or in
implementation thereof and (ii) all requests, rules, guidelines, requirements and directives
promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision
(or any successor or similar authority) or the United States or foreign regulatory authorities, in
each case pursuant to Basel III, shall in each case shall be deemed to have been enacted, adopted
and issued after the date hereof, regardless of the date enacted, adopted, issued or implemented.

     2.11 Compensation.

     If (a) any payment of principal of any LIBOR Loan, or any continuation of any LIBOR Loan, is
made by the Borrower (or a replacement Lender in the case of Section 12.7) to or for the
account of a Lender other than on the last day of the LIBOR Period pursuant to Section 2.5,
2.6, 2.10, 5.1 or 12.7, as a result of acceleration of the maturity
of the Revolving Credit Loans pursuant to Article 10 or for any other reason, (b) any
Borrowing of LIBOR Loans is not made as a result of a withdrawn Notice of Borrowing, (c) any ABR
Loan is not converted into a LIBOR Loan as a result of a withdrawn Notice of Continuation, (d) any
LIBOR Loan is not continued as a LIBOR Loan as a result of a withdrawn Notice of Continuation or
(e) any prepayment of principal of any LIBOR Loan is not made as a result of a withdrawn notice of
prepayment pursuant to Section 5.1, the Borrower shall, after receipt of a written request
by such Lender (which request shall set forth in reasonable detail the basis for requesting such
amount), pay to the Administrative Agent for the account of such Lender any amounts required to
compensate such Lender for any additional losses, costs or expenses that such Lender may reasonably
incur as a result of such payment, failure to convert, failure to continue or failure to

23

 

prepay, including any loss, cost or expense (excluding loss of anticipated profits) actually
incurred by reason of the liquidation or reemployment of deposits or other funds acquired by any
Lender to fund or maintain such LIBOR Loan.

     2.12 Change of Lending Office.

     If any Lender requests compensation under Section 2.10, or if the Borrower is required
to pay any additional amount to any Lender or any Governmental Authority for the account of any
Lender pursuant to Section 5.3, then such Lender shall, if requested by the Borrower, 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, such designation or assignment (i) would eliminate
or reduce amounts payable pursuant to Section 2.10 or 5.3, as the case may be, in
the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not
otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable
costs and expenses incurred by any Lender in connection with any such designation or assignment.

     2.13 Notice of Certain Costs.

     Notwithstanding anything in this Agreement to the contrary, to the extent any notice required
by Section 2.10, 2.11, 3.5 or 5.3 is given by any Lender more than
180 days after such Lender has knowledge (or should have had knowledge) of the occurrence of the
event giving rise to the additional cost, reduction in amounts, loss, tax or other additional
amounts described in such Sections, such Lender shall not be entitled to compensation under
Section 2.10, 2.11, 3.5 or 5.3, as the case may be, for any such
amounts incurred or accruing prior to the giving of such notice.

     2.14 Defaulting Lenders.

     Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a
Defaulting Lender, then the following provisions shall apply for so long as such Lender is a
Defaulting Lender:

     (a) fees shall cease to accrue on the unfunded portion of the Revolving Credit Commitment of
such Defaulting Lender pursuant to Section 4.1; and

     (b) the Revolving Credit Commitment and Revolving Credit Exposure of such Defaulting Lender
shall not be included in determining whether all Lenders or the Required Lenders have taken or may
take any action hereunder (including any consent to any amendment or waiver pursuant to Section
12.1; provided, that this clause (b) shall not apply to the vote of a Defaulting Lender in the
case of an amendment, waiver or other modification requiring the consent of such Lender or each
Lender affected thereby;

     (c) if any Letter of Credit Exposure exists at the time such Lender becomes a Defaulting
Lender then:

     (i) so long as (x) the conditions set forth in Section 6.2 are satisfied at the
time of reallocation (and, unless the Borrower shall have otherwise notified the

24

 

Administrative Agent at such time, the Borrower shall be deemed to have represented and
warranted that such conditions are satisfied at such time) and (y) no Default shall be
continuing, all or any part of the Letter of Credit Exposure of such Defaulting Lender shall
be reallocated among the non-Defaulting Lenders in accordance with their respective
Revolving Credit Commitment Percentages but only to the extent the sum of all non-Defaulting
Lenders’ Revolving Credit Exposures plus such Defaulting Lender’s Letter of Credit Exposure
does not exceed the total of all non-Defaulting Lenders’ Revolving Credit Commitments;

     (ii) if the reallocation described in clause (i) above cannot, or can only partially,
be effected, the Borrower shall within one (1) Business Day following notice by the
Administrative Agent cash collateralize for the benefit of the Letter of Credit Issuer only
the Borrower’s obligations corresponding to such Defaulting Lender’s Letter of Credit
Exposure (after giving effect to any partial reallocation pursuant to clause (i) above) in
accordance with the procedures set forth in Section 10.9 for so long as such Letter of
Credit Exposure is outstanding;

     (iii) if the Borrower cash collateralizes any portion of such Defaulting Lender’s
Letter of Credit Exposure pursuant to clause (ii) above, the Borrower shall not be required
to pay any fees to such Defaulting Lender (or the Administrative Agent or any other Lender)
pursuant to Section 4.1(b) with respect to such Defaulting Lender’s Letter of Credit
Exposure during the period such Defaulting Lender’s Letter of Credit Exposure is cash
collateralized;

     (iv) if the Letter of Credit Exposure of the non-Defaulting Lenders is reallocated
pursuant to clause (i) above, then the fees payable to the Lenders pursuant to Section
4.1(a) and Section 4.1(b) shall be adjusted in accordance with such non-Defaulting Lenders’
Revolving Credit Commitment Percentage; and

     (v) if all or any portion of such Defaulting Lender’s Letter of Credit Exposure is
neither reallocated nor cash collateralized pursuant to clause (i) or (ii) above, then,
without prejudice to any rights or remedies of the Letter of Credit Issuer or any other
Lender hereunder, all letter of credit fees payable under Section 4.1(b) with respect to
such Defaulting Lender’s Letter of Credit Exposure shall be payable to the Letter of Credit
Issuer (and not to such Defaulting Lender) until and to the extent that such Letter of
Credit Exposure is reallocated and/or cash collateralized; and

     (d) So long as such Lender is a Defaulting Lender, the Letter of Credit Issuer shall not be
required to issue, amend or increase any Letter of Credit, unless it is satisfied that the
Defaulting Lender’s then outstanding Letter of Credit Exposure will be 100% covered by the
Revolving Credit Commitments of the non-Defaulting Lenders and/or cash collateral will be provided
by the Borrower in accordance with Section 2.14(c), and participating interests in any such newly
issued or increased Letter of Credit shall be allocated among non-Defaulting Lenders in a manner
consistent with Section 2.14(c)(i) (and such Defaulting Lender shall not participate therein).

25

 

     (e) In the event that the Administrative Agent, the Borrower and the Letter of Credit Issuer
each agrees in writing that a Defaulting Lender has adequately remedied all matters that caused
such Lender to be a Defaulting Lender, then the Letter of Credit Exposure of the Lenders shall be
readjusted to reflect the inclusion of such Lender’s Revolving Credit Commitment and on such date
such Lender shall purchase at par such of the Revolving Credit Loans of the other Lenders as the
Administrative Agent shall determine may be necessary in order for such Lender to hold such Loans
in accordance with its Revolving Credit Commitment Percentage, whereupon such Lender shall cease to
be a Defaulting Lender.

ARTICLE 3

LETTERS OF CREDIT

     3.1 Letters of Credit.

     (a) Subject to and upon the terms and conditions herein set forth, the Borrower, at any time
and from time to time on or after the Closing Date and prior to the L/C Maturity Date, may request
that the Letter of Credit Issuer issue, for the account of the Borrower, a standby letter of credit
or letters of credit (in such form as may be approved by the Letter of Credit Issuer in its
reasonable discretion) which is participated by the Letter of Credit Issuer pursuant to Section
3.3 (each such letter of credit, a “Letter of Credit”).

     (b) Notwithstanding the foregoing, (i) no Letter of Credit shall be issued the Stated Amount
of which, when added to the sum of (x) the Letter of Credit Outstanding at such time and (y) the
aggregate principal of all Revolving Credit Loans then outstanding would exceed the Total Revolving
Credit Commitment then in effect (it being understood that if no Revolving Credit Loans are then
outstanding, the Letter of Credit Outstanding (calculated giving effect to the Stated Amount of
such proposed Letter of Credit) may equal, but in no event shall exceed, the Total Revolving Credit
Commitment then in effect); (ii) each Letter of Credit shall have an expiry date occurring no later
than one year after the date of issuance thereof; provided that in no event shall such expiry date
occur later than the L/C Maturity Date; (iii) each Letter of Credit shall be denominated in Dollars
and shall provide for drawings thereunder to be made in Dollars; and (iv) no Letter of Credit shall
be issued by the Letter of Credit Issuer after it has received a written notice from the Borrower
or any Lender stating that a Default or Event of Default has occurred and is continuing until such
time as the Letter of Credit Issuer shall have received a written notice of (x) rescission of such
notice from the party or parties originally delivering such notice (provided that in the case of
any such notice delivered by the Borrower, the Administrative Agent has not objected to or
contested such rescission) or (y) the waiver of such Default or Event of Default in accordance with
the provisions of Section 12.1.

     3.2 Letter of Credit Requests and Information to Administrative Agent.

     (a) Whenever the Borrower desires that a Letter of Credit be issued for its account, it shall
give the Administrative Agent and the Letter of Credit Issuer at least three (or such lesser number
as may be agreed upon by the Administrative Agent and the Letter of Credit Issuer) Business Days’
written notice thereof. Each notice shall be executed by the Borrower and shall

26

 

be in the form of Exhibit C (each a “Letter of Credit Request”). The Administrative
Agent shall promptly transmit copies of each Letter of Credit Request to each Lender.

     (b) The making of each Letter of Credit Request shall be deemed to be a representation and
warranty by the Borrower that the Letter of Credit may be issued in accordance with, and will not
violate the requirements of, Section 3.1(b).

     (c) The Letter of Credit Issuer shall, as soon as practicable following the issuance,
cancellation or termination of any Letter of Credit, provide a copy of such Letter of Credit,
cancellation or termination to the Administrative Agent.

     3.3 Letter of Credit Participations.

     (a) Immediately upon the issuance by the Letter of Credit Issuer of any Letter of Credit, the
Letter of Credit Issuer shall be deemed to have sold and transferred to each other Lender that has
a Revolving Credit Commitment (each such other Lender, in its
capacity under this Section
3.3, an “L/C Participant”), and each such L/C Participant shall be deemed irrevocably and
unconditionally to have purchased and received from the Letter of Credit Issuer, without recourse
or warranty, an undivided interest and participation (each an “L/C Participation”), to the extent
of such L/C Participant’s Revolving Credit Commitment Percentage from time to time, in such Letter
of Credit, each substitute letter of credit, each drawing made thereunder and the obligations of
the Borrower under this Agreement with respect thereto, and any security therefor or guaranty
pertaining thereto (although the Letter of Credit Fee will be paid directly to the Administrative
Agent for the ratable account of the L/C Participants as provided in Section 4.1(b) and the
L/C Participants shall have no right to receive any portion of any Fronting Fees).

     (b) In determining whether to pay under any Letter of Credit, the Letter of Credit Issuer
shall have no obligation relative to the L/C Participants other than to confirm that any documents
required to be delivered under such Letter of Credit have been delivered and that they appear to
comply on their face with the requirements of such Letter of Credit. Any action taken or omitted to
be taken by the Letter of Credit Issuer under or in connection with any Letter of Credit issued by
it, unless taken or omitted through its gross negligence or willful misconduct as determined by a
final judgment of a court of competent jurisdiction, shall not create for the Letter of Credit
Issuer any resulting liability.

     (c) In the event that the Letter of Credit Issuer makes any payment under any Letter of Credit
issued by it and the Borrower shall not have repaid the amount in full to the Letter of Credit
Issuer pursuant to Section 3.4(a), the Letter of Credit Issuer shall promptly notify the
Administrative Agent (who shall in turn promptly notify each L/C Participant) of the failure, and
each L/C Participant shall promptly and unconditionally pay to the Administrative Agent, for the
account of the Letter of Credit Issuer, the amount of the L/C Participant’s Revolving Credit
Commitment Percentage (determined as of the date of the notice referred to above) of the
unreimbursed payment in Dollars and in same day funds. If the Letter of Credit Issuer so notifies,
prior to 11:00 a.m. (New York time) on any Business Day, any L/C Participant required to fund a
payment under a Letter of Credit, the L/C Participant shall make available to the Administrative
Agent for the account of the Letter of Credit Issuer the L/C Participant’s Revolving Credit

27

 

Commitment Percentage of the amount of the payment on the Business Day in same day funds. If
and to the extent the L/C Participant shall not have so made its Revolving Credit Commitment
Percentage of the amount of the payment available to the Administrative Agent for the account of
the Letter of Credit Issuer, the L/C Participant agrees to pay to the Administrative Agent for the
account of the Letter of Credit Issuer, forthwith on demand, the amount, together with interest
thereon for each day from the date until the date the amount is paid to the Administrative Agent
for the account of the Letter of Credit Issuer at the Federal Funds Effective Rate. The failure of
any L/C Participant to make available to the Administrative Agent for the account of a Letter of
Credit Issuer the L/C Participant’s Revolving Credit Commitment Percentage of any payment under any
Letter of Credit shall not relieve any other L/C Participant of its obligation hereunder to make
available to the Administrative Agent for the account of the Letter of Credit Issuer the other L/C
Participant’s Revolving Credit Commitment Percentage of any payment under the Letter of Credit on
the date required, as specified above, but no L/C Participant shall be responsible for the failure
of any other L/C Participant to make available to the Administrative Agent the other L/C
Participant’s Revolving Credit Commitment Percentage of the payment. Notwithstanding the foregoing,
the Administrative Agent shall be entitled to adjust the proportions of any of the foregoing
amounts required to be paid by the L/C Participants to ensure that no L/C Participant’s Revolving
Credit Exposure exceeds its Revolving Credit Commitment.

     (d) Whenever the Letter of Credit Issuer receives a payment in respect of an unpaid
reimbursement obligation as to which the Administrative Agent has received for the account of the
Letter of Credit Issuer any payments from the L/C Participants pursuant to paragraph (c) above, the
Letter of Credit Issuer shall pay to the Administrative Agent and the Administrative Agent shall
promptly pay to each L/C Participant that has paid its applicable portion of such reimbursement
obligation, in Dollars and in same day funds, an amount equal to such L/C Participant’s share
(based upon the proportionate aggregate amount originally funded by such L/C Participant to the
aggregate amount funded by all L/C Participants) of the principal amount of such reimbursement
obligation and interest thereon accruing after the purchase of the respective L/C Participations.

     (e) The obligations of the L/C Participants to make payments to the Administrative Agent for
the account of the Letter of Credit Issuer with respect to Letters of Credit issued by it shall be
irrevocable and not subject to counterclaim, set-off or other defense or any other qualification or
exception whatsoever and shall be made in accordance with the terms and conditions of this
Agreement under all circumstances, including any of the following circumstances:

     (i) any lack of validity or enforceability of this Agreement;

     (ii) the existence of any claim, set-off, defense or other right that the Borrower may
have at any time against a beneficiary named in a Letter of Credit, any transferee of any
Letter of Credit (or any Person for whom any such transferee may be acting), the
Administrative Agent, the Letter of Credit Issuer, any Lender or other Person, whether in
connection with this Agreement, any Letter of Credit, the transactions contemplated herein
or any unrelated transactions (including any underlying transaction between the Borrower and
the beneficiary named in any such Letter of Credit);

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     (iii) any draft, certificate or any other document presented under any Letter of Credit
proving to be forged, fraudulent, invalid or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect;

     (iv) the surrender or impairment of any security for the performance or observance of
any of the terms of this Agreement; or

     (v) the occurrence of any Default or Event of Default;

provided that no L/C Participant shall be obligated to pay to the Administrative Agent for the
account of the Letter of Credit Issuer such L/C Participant’s Revolving Credit Commitment
Percentage of any unreimbursed amount arising from any wrongful payment made by the Letter of
Credit Issuer under a Letter of Credit as a result of acts or omissions constituting willful
misconduct or gross negligence on the part of the Letter of Credit Issuer as determined by a final
judgment of a court of competent jurisdiction.

     3.4 Agreement to Repay Letter of Credit Drawings.

     (a) The Borrower hereby agrees to reimburse the Letter of Credit Issuer, by making payment to
the Administrative Agent in Dollars in immediately available funds at the office of the
Administrative Agent from time to time notified by the Administrative Agent to the Borrower (but
initially the office set forth for the Administrative Agent in Section 12.2(a)(ii)), for
any payment or disbursement made by the Letter of Credit Issuer under any Letter of Credit (each
such amount so paid until reimbursed, an “Unpaid Drawing”) immediately after, and in any event on
the date of, such payment, with interest on the amount so paid or disbursed by the Letter of Credit
Issuer, to the extent not reimbursed prior to 5:00 p.m. (New York time) on the date of such payment
or disbursement, from and including the date paid or disbursed to but excluding the date the Letter
of Credit Issuer is reimbursed therefor, at a rate per annum that shall at all times be 2% above
the Applicable Margin for Revolving Credit Loans plus the ABR as in effect from time to time.

     (b) The Borrower’s obligations under this Section 3.4 to reimburse the Letter of
Credit Issuer with respect to Unpaid Drawings (including, in each case, interest thereon) shall be
absolute and unconditional under any and all circumstances and irrespective of any setoff,
counterclaim or defense to payment that the Borrower or any other Person may have or have had
against the Letter of Credit Issuer, the Administrative Agent or any Lender (including in its
capacity as an L/C Participant), including any defense based upon the failure of any drawing under
a Letter of Credit (each a “Drawing”) to conform to the terms of the Letter of Credit, any
nonapplication or misapplication by the beneficiary of the proceeds of such Drawing or any of the
circumstances described in Sections 3.3(e)(i) to 3.3(e)(v), inclusive; provided
that the Borrower shall not be obligated to reimburse the Letter of Credit Issuer for any wrongful
payment made by the Letter of Credit Issuer under the Letter of Credit issued by it as a result of
acts or omissions constituting willful misconduct or gross negligence on the part of the Letter of
Credit Issuer as determined by a final judgment of a court of competent jurisdiction.

     (c) Each payment by the Letter of Credit Issuer under any Letter of Credit shall constitute a
request by the Borrower for a Revolving Credit Loan, subject to Section 6.2, in the

29

 

amount of the Unpaid Drawing in respect of such Letter of Credit. The Letter of Credit Issuer
shall notify the Borrower and the Administrative Agent, by 10:00 a.m. (New York time) on any
Business Day on which the Letter of Credit Issuer intends to honor a drawing under a Letter of
Credit, of (i) the Letter of Credit Issuer’s intention to honor such drawing and (ii) the amount of
such drawing. Unless instructed by the Borrower by 10:30 a.m. (New York time) on such Business Day
that it intends to reimburse the Letter of Credit Issuer for the amount of such drawing with funds
other than the proceeds of Loans, the Administrative Agent shall promptly notify each Lender of
such drawing and the amount of its Revolving Credit Loan to be made in respect thereof, and each
Lender shall be irrevocably obligated to make ABR Loans to the Borrower in the amount of such
Lender’s Revolving Credit Commitment Percentage of the applicable Unpaid Drawing by 12:00 noon (New
York time) on such Business Day by making the amount of such Revolving Credit Loan available to the
Administrative Agent at the office of the Administrative Agent from time to time notified by the
Administrative Agent to the Borrower (but initially the office set forth for the Administrative
Agent in Section 12.2(a)(ii)). Such Revolving Credit Loans shall be made without regard to
the Minimum Borrowing Amount. The Administrative Agent shall use the proceeds of such Revolving
Credit Loans solely for the purpose of reimbursing the Letter of Credit Issuer for the related
Unpaid Drawing.

     3.5 Increased Costs.

     If after the date hereof, the adoption of any applicable law, rule or regulation, or any
change therein, or any change in the interpretation or administration thereof by any Governmental
Authority, central bank or comparable agency charged with the interpretation or administration
thereof, or actual compliance by the Letter of Credit Issuer or any L/C Participant with any
request or directive made or adopted after the date hereof (whether or not having the force of
law), by any such authority, central bank or comparable agency shall either (a) impose, modify or
make applicable any reserve, deposit, capital adequacy or similar requirement against letters of
credit issued by the Letter of Credit Issuer, or any L/C Participant’s L/C Participation therein,
or (b) impose on the Letter of Credit Issuer or any L/C Participant any other conditions affecting
its obligations under this Agreement in respect of Letters of Credit or L/C Participations therein
or any Letter of Credit or such L/C Participant’s L/C Participation therein; and the result of any
of the foregoing is to increase the cost to the Letter of Credit Issuer or such L/C Participant of
issuing, maintaining or participating in such Letter of Credit, or to reduce the amount of any sum
received or receivable by the Letter of Credit Issuer or such L/C Participant hereunder (other than
any such increase or reduction attributable to taxes) in respect of Letters of Credit or any L/C
Participations therein, then, promptly after receipt of written demand to the Borrower by the
Letter of Credit Issuer or such L/C Participant, as the case may be (a copy of which notice shall
be sent by the Letter of Credit Issuer or such L/C Participant to the Administrative Agent), the
Borrower shall pay to the Letter of Credit Issuer or such L/C Participant such additional amount or
amounts as will compensate the Letter of Credit Issuer or such L/C Participant for such increased
cost or reduction, it being understood and agreed, however, that neither the Letter of Credit
Issuer nor any L/C Participant shall be entitled to such compensation as a result of such Person’s
compliance with, or pursuant to any request or directive to comply with, any such law, rule or
regulation as in effect on the date hereof. A certificate submitted to the Borrower by the Letter
of Credit Issuer or any L/C Participant, as the case may be (a copy of which certificate shall be
sent by the Letter of Credit Issuer or such L/C Participant to the Administrative Agent), setting
forth in reasonable detail the basis for the

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determination of such additional amount or amounts necessary to compensate the Letter of
Credit Issuer or such L/C Participant as aforesaid shall be conclusive and binding on the Borrower
absent clearly demonstrable error.

     For purposes of this Section 3.5, and notwithstanding anything herein to the contrary, (i) the
Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, requirements,
guidelines and directives thereunder or issued in connection therewith or in implementation thereof
and (ii) all requests, rules, guidelines, requirements and directives promulgated by the Bank for
International Settlements, the Basel Committee on Banking Supervision (or any successor or similar
authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel
III, shall in each case shall be deemed to have been enacted, adopted and issued after the date
hereof, regardless of the date enacted, adopted, issued or implemented.

     3.6 Successor Letter of Credit Issuer.

     The Letter of Credit Issuer may resign as the Letter of Credit Issuer upon 60 days’ prior
written notice to the Administrative Agent, the Lenders and the Borrower. If the Letter of Credit
Issuer shall resign as the Letter of Credit Issuer under this Agreement, then the Borrower shall
appoint from among the Lenders with Revolving Credit Commitments a successor issuer of Letters of
Credit, whereupon such successor issuer shall succeed to the rights, powers and duties of the
Letter of Credit Issuer, and the term “Letter of Credit Issuer” shall mean such successor issuer
effective upon such appointment. At the time such resignation shall become effective, the Borrower
shall pay to the resigning Letter of Credit Issuer all accrued and unpaid fees pursuant to
Sections 4.1(c) and 4.1(d). The acceptance of any appointment as the Letter of
Credit Issuer hereunder by a successor Lender shall be evidenced by an agreement entered into by
such successor, in a form satisfactory to the Borrower and the Administrative Agent and, from and
after the effective date of such agreement, such successor Lender shall have all the rights and
obligations of the previous Letter of Credit Issuer under this Agreement. After the resignation of
the Letter of Credit Issuer hereunder, the resigning Letter of Credit Issuer shall remain a party
hereto and shall continue to have all the rights and obligations of the Letter of Credit Issuer
under this Agreement with respect to Letters of Credit issued by it prior to such resignation, but
shall not be required to issue additional Letters of Credit. After any retiring Letter of Credit
Issuer’s resignation as Letter of Credit Issuer, the provisions of this Agreement relating to the
Letter of Credit Issuer shall inure to its benefit as to any actions taken or omitted to be taken
by it (a) while it was the Letter of Credit Issuer under this Agreement or (b) at any time with
respect to Letters of Credit issued by the Letter of Credit Issuer.

ARTICLE 4

FEES; COMMITMENTS

     4.1 Fees.

     (a) The Borrower agrees to pay to the Administrative Agent, for the account of each Lender (in
each case pro rata according to the respective Available Revolving Credit Commitments of all such
Lenders), a commitment fee for each day from and including the Closing Date to but excluding the
Revolving Credit Maturity Date on the average daily closing

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balances of the unused amount of the Total Revolving Credit Commitment. Such commitment fee
shall be payable in arrears (i) on the last Business Day of each of March, June, September and
December (for the three-month period (or portion thereof) ended on such day) and (ii) on the
Revolving Credit Maturity Date (for the period ended on such date for which no payment has been
received pursuant to clause (i) above), and shall be computed during such period at the Commitment
Fee Rate on the average daily closing balances of the unused amount of the Total Revolving Credit
Commitment. Notwithstanding the foregoing, the Borrower shall not be obligated to pay any amounts
to any Defaulting Lender pursuant to this Section 4.1.

     (b) The Borrower agrees to pay to the Administrative Agent, for the account of the Lenders pro
rata on the basis of their respective Letter of Credit Exposure, a fee in respect of each Letter of
Credit (the “Letter of Credit Fee”), for the period from and including the date of issuance of such
Letter of Credit to, but not including, the termination date of such Letter of Credit computed
during such period at a per annum rate equal to the Applicable Margin then in effect for Revolving
Credit Loans that are LIBOR Loans on the average daily Stated Amount of such Letter of Credit. Such
Letter of Credit Fees shall be due and payable quarterly in arrears on the last Business Day of
each of March, June, September and December (for the three-month period (or portion thereof) ended
on such day) and on the date upon which the Total Revolving Credit Commitment terminates and the
Letters of Credit Outstanding shall have been reduced to zero.

     (c) The Borrower agrees to pay directly to the Letter of Credit Issuer a fee in respect of
each Letter of Credit issued by it (the “Fronting Fee”), for the period from and including the date
of issuance of such Letter of Credit to but not including the termination date of such Letter of
Credit, computed during such period at a per annum rate equal to a rate mutually agreed upon
between the Borrower and the Letter of Credit Issuer on the average daily Stated Amount of such
Letter of Credit. Such Fronting Fees shall be due and payable quarterly in arrears on the last
Business Day of each of March, June, September and December (for the three-month period (or portion
thereof) ended on such day) and on the date upon which the Total Revolving Credit Commitment
terminates and the Letters of Credit Outstanding shall have been reduced to zero.

     (d) The Borrower agrees to pay directly to the Letter of Credit Issuer upon each renewal of,
drawing under and/or amendment of a Letter of Credit issued by it such amount as the Letter of
Credit Issuer and the Borrower may agree upon for issuances or renewal or drawings under or
amendments of letters of credit issued by it.

     (e) The Borrower agrees to pay to the Administrative Agent, for the benefit of the
Administrative Agent, the fees for acting as administrative agent in the amounts and on the dates
previously agreed to in writing by the Borrower and the Administrative Agent, as amended from time
to time by agreement between the Administrative Agent and the Borrower.

     (f) The Borrower agrees to pay on the Closing Date to the Arrangers, for the benefit of the
Arrangers, the fees in the amounts previously agreed to in writing by the Borrower and the
Arrangers.

     4.2 Voluntary Reduction of Revolving Credit Commitments.

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     Upon at least two Business Days’ prior written notice (or telephonic notice promptly confirmed
in writing) to the Administrative Agent (which notice the Administrative Agent shall promptly
transmit to each of the Lenders), the Borrower shall have the right, without premium or penalty, on
any day, to permanently terminate or reduce the Total Revolving Credit Commitment in whole or in
part; provided that (i) any such reduction shall apply proportionately and permanently to reduce
the Revolving Credit Commitment of each of the Lenders, (ii) any partial reduction pursuant to this
Section 4.2 shall be in the amount of at least $1,000,000, (iii) after giving effect to any
such partial reduction of the Total Revolving Credit Commitment, the Total Revolving Credit
Commitment shall be at least $5,000,000 and (iv) after giving effect to such termination or
reduction and to any prepayments of the Revolving Credit Loans made on the date thereof in
accordance with this Agreement, the sum of (A) the aggregate outstanding principal amount of the
Revolving Credit Loans and (B) the Letters of Credit Outstanding shall not exceed the Total
Revolving Credit Commitment.

     4.3 Mandatory Termination of Commitments.

     The Total Revolving Credit Commitment shall terminate at 2:00 p.m. (New York time) on the
Revolving Credit Maturity Date.

ARTICLE 5

PAYMENTS

     5.1 Prepayments.

     The Borrower shall have the right to prepay any Borrowing, without premium or penalty, in
whole or in part at any time and from time to time. Such prepayment of Revolving Credit Loans shall
be subject to the following conditions: (a) the Borrower shall give the Administrative Agent
written notice (or telephonic notice promptly confirmed in writing) of its intent to make such
prepayment, the amount of such prepayment and (in the case of LIBOR Loans) the specific
Borrowing(s) to be prepaid, which notice shall be given by the Borrower no later than 10:00 a.m.
(New York time) three Business Days prior to the date of such prepayment and shall promptly be
transmitted by the Administrative Agent to each of the Lenders; (b) each partial prepayment of
Revolving Credit Loans shall be in an amount that is a multiple of $100,000 and in an aggregate
principal amount of at least $5,000,000; provided that no partial prepayment of LIBOR Loans
made pursuant to a single Borrowing shall reduce the outstanding LIBOR Loans made pursuant to such
Borrowing to an amount less than the Minimum Borrowing Amount for LIBOR Loans; and (c) any
prepayment of LIBOR Loans pursuant to this Section 5.1 on any day other than the last day
of a LIBOR Period applicable thereto shall be subject to compliance by the Borrower with the
applicable provisions of Section 2.11; provided further that at the Borrower’s
election in connection with any prepayment pursuant to this Section 5.1, such prepayment
shall not be applied to any Revolving Credit Loan of a Defaulting Lender. Each prepayment of a
Borrowing shall be applied ratably to the Revolving Credit Loans included in the prepaid Borrowing.

     5.2 Method and Place of Payment.

     (a) Except as otherwise specifically provided herein, all payments to be made by the Borrower
under this Agreement shall be made, without set-off, counterclaim or deduction of any

33

 

kind, to the Administrative Agent for, as the case may be, the (i) ratable account of all the
Lenders holding Revolving Credit Loans or (ii) account of each Letter of Credit Issuer, not later
than 12:00 Noon (New York time) on the date when due. Such payments shall be made in immediately
available funds at the office of the Administrative Agent from time to time notified by the
Administrative Agent to the Borrower (but initially the office set forth for the Administrative
Agent in Section 12.2(a)(ii)), it being understood that written or facsimile notice by the
Borrower to the Administrative Agent to make a payment from the funds in its account at an office
of the Administrative Agent shall constitute the making of such payment to the extent of such funds
held in such account. The Administrative Agent will thereafter cause to be distributed on the same
day (if payment was actually received by the Administrative Agent prior to 2:00 p.m. (New York
time) on such day, otherwise the next Business Day) like funds relating to the payment of principal
or interest or Fees ratably to the Lenders entitled thereto. A payment shall be deemed to have been
made by the Administrative Agent on the date on which it is required to be made under this
Agreement if the Administrative Agent has, on or before such date, taken steps to make such payment
in accordance with the regulations or operating procedures of the clearing or settlement system
used by the Administrative Agent in order to make such payment.

     (b) Any payments under this Agreement that are made later than 2:00 p.m. (New York time) shall
be deemed to have been made on the next succeeding Business Day. Whenever any payment to be made
hereunder shall be stated to be due on a day that is not a Business Day, the due date thereof shall
be extended to the next succeeding Business Day and, with respect to payments of principal,
interest shall be payable during such extension at the applicable rate in effect immediately prior
to such extension.

     5.3 Net Payments.

     (a) (a) All payments made by the Borrower under this Agreement shall be made free and clear
of, and without deduction or withholding for or on account of, any current or future income, stamp
or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or
hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority, excluding
(i) net income taxes and franchise taxes (imposed in lieu of net income taxes) imposed on the
Administrative Agent or any Lender and (ii) any taxes imposed on the Administrative Agent or any
Lender as a result of a current or former connection between the Administrative Agent or such
Lender and the jurisdiction of the Governmental Authority imposing such tax or any political
subdivision or taxing authority thereof or therein (other than any such connection arising solely
from the Administrative Agent or such Lender having executed, delivered or performed its
obligations or received a payment under, or enforced, this Agreement) (“Taxes”) except to the
extent that such deduction or withholding is required by any applicable law, as modified by the
administrative practice of any relevant Governmental Authority then in effect. If any such Taxes
are required to be withheld from any amounts payable to the Administrative Agent or any Lender
hereunder, the Borrower shall:

     (A) promptly notify the Administrative Agent of such requirement;

     (B) promptly pay to the relevant Governmental Authority when due the full
amount required to be deducted or withheld (including the full amount of

34

 

Taxes required to be deducted or withheld from any additional amount paid by
the Borrower to the Administrative Agent or such Lender under this Section
5.3(a);

     (C) as promptly as possible thereafter, forward to the Administrative Agent and
such Lender an official receipt (or a certified copy), or other documentation
reasonably acceptable to the Administrative Agent and such Lender, evidencing such
payment to such Governmental Authority; and

     (D) pay to the Administrative Agent or such Lender, in addition to the payment
to which the Administrative Agent or such Lender is otherwise entitled under this
Agreement, such additional amount as is necessary to ensure that the net amount
actually received by the Administrative Agent or such Lender (free and clear of any
such Taxes, whether assessed against the Borrower, the Administrative Agent or such
Lender) will equal the full amount the Administrative Agent or such Lender would
have received had no such deduction or withholding been required.

     (ii) If the Borrower fails to pay to the relevant Governmental Authority when due any
Taxes that it was required to deduct or withhold under this Section 5.3(a) in
respect of any payment to or for the benefit of the Administrative Agent or any Lender under
this Agreement or fails to furnish the Administrative Agent or such Lender, as applicable,
with the documentation referred to in this Section 5.3(a) when required to do so,
the Borrower shall forthwith on demand fully indemnify the Administrative Agent or such
Lender for any incremental taxes, interest, costs or penalties that may become payable by
the Administrative Agent or such Lender as a result of such failure.

     (iii) The Borrower’s obligations under this Section 5.3(a) shall survive the
termination of this Agreement and the payment of the Revolving Credit Loans and all other
amounts payable hereunder.

     (b) Notwithstanding Section 5.3(a), the Borrower shall not be required to indemnify or
pay any additional amounts in respect of withholding tax (including FATCA) applicable to any amount
payable under this Agreement pursuant to Section 5.3(a) above to any Non-U.S. Lender,
except if any such Revolving Credit Loans were assigned, participated or transferred to such
Non-U.S. Lender at the request of the Borrower or were assigned, participated or transferred to
such Non-U.S. Lender following the occurrence of and during the continuance of an Event of Default
pursuant to Section 10.1 or 10.5.

     (c) Each Non-U.S. Lender shall:

     (i) deliver to the Borrower and the Administrative Agent two copies of either (x) in
the case of a Non-U.S. Lender claiming exemption from U.S. Federal withholding tax under
Section 871(h) or 881(c) of the Code with respect to payments of “portfolio interest”,
United States Internal Revenue Service Form W-8BEN, (together with a certificate
representing that such Non-U.S. Lender is not a bank for purposes of Section 881(c) of the
Code, is not a 10-percent shareholder (within the meaning of Section 871(h)(3)(B) of the
Code) of the Borrower and is not a controlled foreign corporation

35

 

related to the Borrower (within the meaning of Section 864(d)(4) of the Code)), or (y)
Internal Revenue Service Form W-8BEN or W-8ECI, in each case properly completed and duly
executed by such Non-U.S. Lender claiming complete exemption from, or reduced rate of, U.S.
Federal withholding tax on payments by the Borrower under this Agreement;

     (ii) deliver to the Borrower and the Administrative Agent two further copies of any
such form or certification (or any applicable successor form) on or before the date that any
such form or certification expires or becomes obsolete and after the occurrence of any event
requiring a change in the most recent form previously delivered by it to the Borrower; and

     (iii) obtain such extensions of time for filing and complete such forms or
certifications as may reasonably be requested in writing by the Borrower or the
Administrative Agent;

unless, in any such case, any change in treaty, law or regulation, has occurred prior to the date
on which any such delivery would otherwise be required that renders any such form inapplicable or
would prevent such Lender from duly completing and delivering any such form with respect to it and
such Lender so advises the Borrower and the Administrative Agent. Each Person that shall become a
Participant pursuant to Section 12.6 or a Lender pursuant to Section 12.6 shall,
upon the effectiveness of the related transfer, be required to provide all the forms and statements
required pursuant to this Section 5.3(c), provided that in the case of a Participant such
Participant shall furnish all such required forms and statements to the Lender from which the
related participation shall have been purchased.

     (d) If the Borrower determines in good faith that a reasonable basis exists for contesting any
taxes for which indemnification has been demanded hereunder, the relevant Lender or the
Administrative Agent, as applicable, shall cooperate with the Borrower in challenging such taxes at
the Borrower’s expense if so requested by the Borrower. If any Lender or the Administrative Agent,
as applicable, receives a refund of, or credit for, a Tax for which a payment has been made by the
Borrower pursuant to this Agreement, which refund or credit in the good faith judgment of such
Lender or the Administrative Agent, as the case may be, is attributable to such payment made by the
Borrower, then the Lender or the Administrative Agent, as the case may be, shall reimburse the
Borrower for such amount as the Lender or the Administrative Agent, as the case may be, determines
to be the proportion of the refund or credit as will leave it, after such reimbursement, in no
better or worse position than it would have been in if the payment had not been required. A Lender
or Administrative Agent shall claim any refund or credit that it determines is available to it,
unless it concludes in its reasonable discretion that it would be adversely affected by making such
a claim. Neither such Lender nor the Administrative Agent shall be obliged to disclose any
information regarding its tax affairs or computations to the Borrower in connection with this
paragraph (d) or any other provision of this Section 5.3.

     (e) Each Lender shall severally indemnify the Administrative Agent for any taxes (but, in the
case of any Taxes or Other Taxes, only to the extent that the Borrower has not already indemnified
the Administrative Agent for such Taxes or Other Taxes and without

36

 

limiting the obligation of the Borrower to do so) attributable to such Lender that are paid or
payable by the Administrative Agent in connection with this Agreement and any reasonable expenses
arising therefrom or with respect thereto, whether or not such taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. The indemnity under this Section
5.3(e) shall be paid within ten (10) days after the Administrative Agent delivers to the
applicable Lender a certificate stating the amount of taxes so paid or payable by the
Administrative Agent. Such certificate shall be conclusive of the amount so paid or payable absent
manifest error.

     5.4 Computations of Interest and Fees.

     (a) All interest and fees hereunder shall be computed on the basis of a year of 360 days,
except that interest computed by reference to the ABR at times when the ABR is based on the prime
rate of the Administrative Agent shall be computed on the basis of a year of 365 days (or 366 days
in a leap year), and in each case shall be payable for the actual number of days elapsed (including
the first day but excluding the last day). The applicable ABR or LIBOR rate shall be determined by
the Administrative Agent, and such determination shall be conclusive absent manifest error.

     (b) All interest payments to be made under this Agreement shall be paid without allowance or
deduction for deemed re-investment or otherwise, both before and after maturity and before and
after default and/or judgment, if any, until payment of the amount on which such interest is
accruing, and interest will accrue on overdue interest, if any.

     (c) The amount of costs and expenses required to be paid or reimbursed by the Borrower
pursuant to Section 12.5 or any other provision of this Agreement shall bear interest until
paid, as well after as before demand, default, maturity and judgment, at the highest rate provided
for in Section 2.8(c).

     (d) If interest is not paid on the indebtedness of the Borrower to the Lenders hereunder, or
any part thereof, as and when interest is due and payable hereunder, unpaid interest shall bear
interest until paid, as well after as before demand, default, maturity and judgment, at the rates
provided for in Section 2.8(c).

ARTICLE 6

CONDITIONS PRECEDENT

     6.1 Conditions Precedent to Initial Effectiveness.

     The obligation of each Lender to make any Revolving Credit Loan requested to be made by it on
any date and the obligations of each Letter of Credit Issuer to issue, extend or increase Letters
of Credit shall become effective on the date on which each of the following conditions are
satisfied:

     (a) Credit Agreement. The Administrative Agent shall have received this Agreement,
executed and delivered by a duly authorized officer of each of the parties hereto.

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     (b) Closing Certificate. The Administrative Agent shall have received a certificate of
the Borrower, dated the Closing Date, substantially in the form of Exhibit D, with
appropriate insertions, executed by the President or any Vice President and the Secretary or
any Assistant Secretary of the Borrower.

     (c) Proceedings of the Borrower. The Administrative Agent shall have received a copy
of the resolutions, in form and substance satisfactory to the Administrative Agent, of the
Board of Directors of the Borrower (or a duly authorized committee thereof) authorizing (a)
the execution, delivery and performance of this Agreement (and any agreements relating
thereto) and (b) the extensions of credit contemplated hereunder.

     (d) Organic Documents. The Administrative Agent shall have received (i) true and
complete copies of the articles of organization and operating agreement of the Borrower,
(ii) a certificate of good standing with respect to the Borrower issued by its jurisdiction
of incorporation or organization and (iii) to the extent reasonably requested in writing by
any of the Lenders, all documentation and other information required by bank regulatory
authorities under applicable “know-your-customer” and anti-money laundering rules and
regulations, including the USA PATRIOT Act, at least two Business Days prior to the Closing
Date.

     (e) Fees. The Administrative Agent, the Arrangers and the Lenders shall have received
all fees and other amounts due and payable on or prior to the Closing Date, including the
fees referred to in Section 4.1(e) to be received on the Closing Date.

     (f) Existing and Successor Credit Agreements. The Administrative Agent shall have
received reasonably satisfactory evidence that:

     (i) the ITC Holdings Existing Credit Agreement shall be simultaneously
terminated and all loans and other amounts due and payable thereunder shall have
been paid in full and all letters of credit issued and outstanding thereunder shall
have been terminated, replaced or continued under the ITC Holdings Credit Agreement;

     (ii) the ITCTransmission/METC Existing Credit Agreement shall be simultaneously
terminated and all loans and other amounts due and payable thereunder shall have
been paid in full and all letters of credit issued and outstanding thereunder shall
have been terminated, replaced or continued under this Agreement or the
ITCTransmission Credit Agreement, as applicable;

     (iii) the ITC Holdings Credit Agreement shall be effective prior to or
substantially concurrently with the effectiveness of this Agreement; and

     (iv) the ITCTransmission Credit Agreement shall be effective prior to or
substantially concurrently with the effectiveness of this Agreement.

     (g) Legal Opinions. The Administrative Agent shall have received in form and substance
reasonably satisfactory to it the executed legal opinions of (i) counsel to

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the Borrower with respect to the execution and delivery of this Agreement by the
Borrower, the validity, binding effect, legality and enforceability of this Agreement,
compliance with certain applicable law and such other matters as the Administrative Agent
may reasonably request in form and substance satisfactory to the Administrative Agent and
(ii) special Michigan counsel to the Borrower with respect to the status and capacity of the
Borrower, the due authorization of this Agreement, compliance with the Organic Documents of
the Borrower and with certain applicable law and such other matters as the Administrative
Agent may reasonably request in form and substance satisfactory to the Administrative Agent.

     (h) Governmental Approvals. The Administrative Agent shall have received evidence that
all governmental approvals necessary in connection with the transactions contemplated hereby
(including, without limitation, approval from the United States of America Federal Energy
Regulatory Commission of the application pursuant to section 204 of the Federal Power Act)
shall have been obtained and are in full force and effect.

     (i) Financial Statements and Projections. The Lenders shall have received (i)
satisfactory audited consolidated financial statements of the Borrower for the fiscal years
ended December 31, 2009 and December 31, 2010, (ii) satisfactory unaudited interim
consolidated financial statements of the Borrower for the quarterly period ended March 31,
2011 and (iii) satisfactory financial statement projections through and including the
Borrower’s 2015 fiscal year (the “Projections”).

     6.2 Conditions Precedent to All Credit Events.

     The obligation of each Lender to make any Revolving Credit Loan requested to be made by it on
any date (including its initial Revolving Credit Loans) and the obligation of each Letter of Credit
Issuer to issue, extend or increase Letters of Credit on any date is subject to the satisfaction of
the following conditions precedent:

     (a) No Default; Representations and Warranties True and Correct. At the time of each
Credit Event and also after giving effect thereto (i) there shall exist no Default or Event
of Default and (ii) all representations and warranties made by the Borrower contained herein
(other than, except in the case of the initial Credit Event, Section 7.14 hereof)
shall be true and correct in all material respects with the same effect as though such
representations and warranties had been made on and as of the date of such Credit Event
(except where such representations and warranties expressly relate to an earlier date, in
which case such representations and warranties shall have been true and correct in all
material respects as of such earlier date).

     (b) Notice of Borrowing; Letter of Credit Request. Prior to the making of each
Revolving Credit Loan, the Administrative Agent shall have received a Notice of Borrowing
(whether in writing or by telephone) meeting the requirements of Section 2.3. Prior
to the issuance of each Letter of Credit, the Administrative Agent and the Letter of Credit
Issuer shall have received a Letter of Credit Request meeting the requirements of
Section 3.2(a).

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     The acceptance of the benefits of each Credit Event shall constitute a representation and
warranty by the Borrower to each of the Lenders that all the applicable conditions specified above
exist as of that time.

ARTICLE 7

REPRESENTATIONS AND WARRANTIES

     In order to induce the Lenders to enter into this Agreement and to make the Revolving Credit
Loans and issue or participate in Letters of Credit as provided for herein, the Borrower (as to
itself and each of its Subsidiaries) makes the following representations and warranties to, and
agreements with, the Lenders, all of which shall survive the execution and delivery of this
Agreement and the making of the Revolving Credit Loans and the issuance of Letters of Credit.

     7.1 Organizational Status.

     The Borrower is validly organized and existing and in good standing under the laws of the
state or jurisdiction of its incorporation or organization, is duly qualified to do business and is
in good standing as a foreign entity in each jurisdiction where the nature of its business requires
such qualification (except where the failure to be so qualified could not reasonably be expected to
result in a Material Adverse Effect), and has full power and authority and holds all requisite
governmental licenses, permits and other approvals to enter into and perform its obligations under
this Agreement, to own and hold under lease its property and to conduct its business substantially
as currently conducted by it.

     7.2 Capacity, Power and Authority.

     The Borrower has the capacity, power and authority to execute, deliver and carry out the terms
and provisions of this Agreement and has taken all necessary action, partnership, corporate or
otherwise, to authorize the execution, delivery and performance of this Agreement. The Borrower has
duly executed and delivered this Agreement and this Agreement constitutes the legal, valid and
binding obligation of the Borrower enforceable in accordance with its terms, except as the
enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting
creditors’ rights generally and subject to general principles of equity.

     7.3 No Violation.

     Neither the execution, delivery nor performance by the Borrower of this Agreement nor
compliance with the terms and provisions thereof and the other transactions contemplated therein
will (a) contravene any applicable provision of any material law, statute, rule, regulation, order,
writ, injunction or decree of any court or Governmental Authority, (b) result in any breach of any
of the terms, covenants, conditions or provisions of, or constitute a default under, or result in
the creation or imposition of (or the obligation to create or impose) any Lien upon any of the
property or assets of the Borrower or any of its Subsidiaries pursuant to, the terms of any
material indenture, loan agreement, lease agreement, mortgage, deed of trust, agreement or other
material instrument to which the Borrower or any of its Subsidiaries is a party or by which it or
any of its property or assets is bound or (c) violate any provision of the Borrower’s Organic
Documents.

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     7.4 Litigation.

     There are no actions, suits or proceedings pending or, to the knowledge of the Borrower or any
of its Subsidiaries (after due internal inquiry), threatened with respect to the Business, the
Borrower or any of its Subsidiaries that could reasonably be expected to result in a Material
Adverse Effect.

     7.5 Governmental Approvals.

     No order, consent, approval, license, authorization, or validation of, or filing, recording or
registration with, or exemption by, or notice to, any Governmental Authority (other than those that
have been, or on the Closing Date will be, obtained and are in full force and effect) is required
to authorize or is required in connection with (a) the execution, delivery and performance of this
Agreement or (b) the legality, validity, binding effect or enforceability of this Agreement.

     7.6 True and Complete Disclosure.

     To the knowledge of the Borrower, after due inquiry:

     (a) All written factual information and data (taken as a whole) heretofore or
contemporaneously furnished (other than any projections and pro forma financial information
and information of a general industry nature), by or on behalf of the Borrower or any of its
Subsidiaries or any of their respective authorized consultants, agents or representatives in
writing to the Administrative Agent and/or any Lender on or before the Closing Date
(including all information contained in this Agreement) for purposes of or in connection
with this Agreement or any transaction contemplated herein was true and complete in all
material respects on the date as of which such information or data is dated or certified and
did not contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements contained therein, taken as a whole, not
materially misleading at such time in light of the circumstances under which such statements
were made.

     (b) The Projections were prepared in good faith based upon assumptions believed by the
Borrower to be reasonable at the time made, it being recognized by the Administrative Agent
and the Lenders that such projections are not to be viewed as facts, that whether such
projections will be achieved will depend on future events, some of which are not within the
Borrower’s control, and that actual results during the period or periods covered by any such
projections may differ from the projected results and that such variances can be
significant.

     7.7 Financial Condition; Financial Statements.

     The Borrower has heretofore furnished to the Lenders (i) the financial statements with respect
to the Borrower and its Subsidiaries for the fiscal year ended December 31, 2010 and with respect
to the fiscal quarter ended March 31, 2011 and (ii) the Projections. The financial statements
referred to in clause (i) of the immediately preceding sentence present fairly in all material
respects the consolidated financial position of the Borrower and its Subsidiaries at the

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respective dates of said statements and the results of operations for the respective periods
covered thereby, subject, in the case of quarterly financial statements, to changes resulting from
audit and normal year-end adjustments and other adjustments (consisting of normal recurring
adjustments) necessary for a fair statement of the results for the interim period. All such
financial statements have been prepared in accordance with GAAP consistently applied, except to the
extent provided in the notes to said financial statements. All balance sheets, all statements of
income and of cash flow and all other financial information of each of the Borrower and its
Subsidiaries furnished pursuant to Section 8.1 have been and will for periods following the
Closing Date be prepared in accordance with GAAP consistently applied, and do or will present
fairly the consolidated financial condition of the Persons covered thereby as at the dates thereof
and the results of their operations for the periods covered thereby, subject, in the case of
quarterly financial statements to changes resulting from audit and normal year-end adjustments and
other adjustments (consisting of normal recurring adjustments) necessary for a fair statement of
the results for the interim period.

     7.8 Tax Returns and Payments.

     Each of the Borrower and its Subsidiaries has filed all material tax returns, domestic and
foreign, required to be filed by it and has paid all material taxes and assessments payable by it
that have become due, other than those not yet delinquent or contested in good faith. The Borrower
and each of its respective Subsidiaries have paid, or have provided adequate reserves (in the good
faith judgment of the management of the Borrower) in accordance with GAAP for the payment of, all
material income taxes applicable for all prior fiscal years and for the current fiscal year to the
Closing Date.

     7.9 Environmental Matters.

     Except as set forth in Schedule II:

     (a) Other than instances of noncompliance that could not reasonably be expected to have
a Material Adverse Effect: (i) the Borrower and each of its Subsidiaries are in compliance
with all Environmental Laws in all jurisdictions in which the Borrower and each of its
Subsidiaries are currently doing business (including having obtained all material permits
required under Environmental Laws) and (ii) the Borrower will comply and cause each of its
Subsidiaries to comply with all such Environmental Laws (including all permits required
under Environmental Laws); and

     (b) Neither the Borrower nor any of its Subsidiaries has treated, stored, transported
or disposed of Hazardous Materials at or from any currently or formerly owned Real Estate or
facility relating to its business in a manner that could reasonably be expected to have a
Material Adverse Effect.

     7.10 Properties.

     The Borrower and each of its Subsidiaries has good title to or a leasehold or easement
interest in all of its properties that are necessary for the operation of its respective business
as currently conducted and as proposed to be conducted, free and clear in each case of all Liens

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(other than any Liens permitted by this Agreement) except where the failure to have such good
title could not reasonably be expected to have a Material Adverse Effect.

     7.11 Pension and Welfare Plans.

     During the twelve-consecutive-month period prior to the Closing Date and prior to the date of
any Credit Event hereunder, except as could not reasonably be expected have a Material Adverse
Effect, (a) no steps have been taken to terminate any Pension Plan, (b) no contribution failure has
occurred with respect to any Pension Plan sufficient to give rise to a Lien under Section 303(k) of
ERISA, (c) no condition exists or event or transaction has occurred with respect to any Pension
Plan which might result in the incurrence by the Borrower or any member of the Controlled Group of
any liability (other than any liability that relates to the accrual of benefits), fine or penalty
and (d) except as disclosed in Schedule III, neither the Borrower nor any member of the
Controlled Group has any contingent liability with respect to any post-retirement benefit under a
Welfare Plan, other than liability for continuation coverage described in Part 6 of Title I of
ERISA.

     7.12 Regulations U and X.

     Neither the making of any Revolving Credit Loan hereunder nor the use of the proceeds thereof
will violate the provisions of F.R.S. Board Regulation U or Regulation X.

     7.13 Investment Company Act.

     Neither the Borrower nor any of its Subsidiaries is an “investment company” within the meaning
of the Investment Company Act of 1940, as amended.

     7.14 No Material Adverse Change.

     There has been no material adverse change in the business, assets, operations, property or
financial condition of the Borrower and its Subsidiaries taken as a whole since December 31, 2010.

     7.15 Deemed Repetition of Representations and Warranties.

     The representations and warranties set out in Sections 7.1 to 7.13 inclusive
(and solely in the case of the initial Credit Event, Section 7.14) will be deemed to be
repeated by the Borrower as of the date of each request for a new Credit Event, by the Borrower
(but not the conversion or continuation of a Borrowing) and as of the date on which a Successor
Borrower assumes all of the obligations of the Borrower under this Agreement pursuant to
Section 9.2(a) (but after giving effect to such assumption), except to the extent that on
or prior to such date (a) the Borrower has advised the Administrative Agent in writing of a
variation in any such representation or warranty, and (b) the Required Lenders have approved such
variation, and except where such representations and warranties expressly relate to an earlier
date, in which case such representations and warranties shall have been true and correct in all
material respects as of such earlier date.

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ARTICLE 8

AFFIRMATIVE COVENANTS

     The Borrower (on its own behalf and on behalf of each of its Subsidiaries) hereby covenants
and agrees that on the Closing Date and thereafter, for so long as this Agreement is in effect and
until the Revolving Credit Maturity Date:

     8.1 Information Covenants.

     The Borrower will furnish to each Lender and the Administrative Agent:

     (a) Annual Financial Statements. As soon as available and in any event on or before
the date that is 90 days after the end of each fiscal year of the Borrower, the consolidated
balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal year and the
related consolidated statement of operations and cash flows for such fiscal year prepared in
accordance with GAAP consistently applied, setting forth comparative consolidated figures
for the preceding fiscal year, and audited by an independent auditing firm of recognized
national standing whose opinion shall not be qualified as to the scope of audit or as to the
status of the Borrower or any of its Subsidiaries as a going concern, together in any event
with a no-default letter from such auditing firm stating that in the course of its regular
audit of the business of the Borrower and its Subsidiaries, which audit was conducted in
accordance with generally accepted auditing standards, as established by the Auditing
Standards Board (United States) and with auditing standards of the Public Company Accounting
Oversight Board (United States), such auditing firm has obtained no knowledge of any Default
or Event of Default relating to Section 9.4 that has occurred and is continuing or,
if in the opinion of such auditing firm such a Default or Event of Default has occurred and
is continuing, a statement as to the nature thereof.

     (b) Quarterly Financial Statements. As soon as available and in any event on or before
the date that is 45 days after the end of each of the first three fiscal quarters in each
fiscal year of the Borrower, the consolidated balance sheet of the Borrower and its
Subsidiaries as at the end of such fiscal quarter and the related consolidated statement of
operations for such fiscal quarter and for the elapsed portion of the fiscal year ended with
the last day of such fiscal quarter, and the related consolidated statement of cash flows
and for the elapsed portion of the fiscal year ended with the last day of such fiscal
quarter, and setting forth comparative consolidated figures for the related periods in the
prior fiscal year or, in the case of such consolidated balance sheet, for the last day of
the prior fiscal year, and prepared in accordance with GAAP consistently applied, all of
which shall be certified by an Authorized Officer of the Borrower, subject to changes
resulting from audit and normal year-end adjustments and other adjustments (consisting of
normal recurring adjustments) necessary for a fair statement of the results for the interim
period.

     (c) Officer’s Certificates. At the time of the delivery of the financial statements
provided for in Sections 8.1(a) and (b), a certificate of an Authorized
Officer of the Borrower in substantially the form of Exhibit E (a “Compliance
Certificate”) to

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the effect that no Default or Event of Default exists or, if any Default or Event of
Default does exist, specifying the nature and extent thereof, which certificate shall be in
form and detail satisfactory to the Administrative Agent, acting reasonably, and setting
forth the calculations required to establish whether the Borrower was in compliance with the
provisions of Section 9.4 as at the end of such fiscal year or period, as the case
may be.

     (d) Notice of Default or Litigation. Promptly after an Authorized Officer of the
Borrower or any of its Subsidiaries obtains knowledge thereof, notice of (i) the occurrence
of any event that constitutes a Default or Event of Default, which notice shall specify the
nature thereof, the period of existence thereof and what action the Borrower proposes to
take with respect thereto and (ii) any litigation or governmental proceeding pending or
threatened against the Borrower or any of its Subsidiaries that could reasonably be expected
to result in a Material Adverse Effect.

     (e) Environmental Matters. Promptly after an Authorized Officer of the Borrower or any
of its Subsidiaries obtains knowledge or notice of any one or more of the following
environmental matters, unless such environmental matters would not, individually or when
aggregated with all other such matters, be reasonably expected to result in a Material
Adverse Effect:

     (i) Any pending or threatened Environmental Claim against the Borrower or any
of its Subsidiaries or any Real Estate (as defined below);

     (ii) Any condition or occurrence that (x) results in non-compliance by the
Borrower or any of its Subsidiaries with any applicable Environmental Law or (y)
could reasonably be anticipated to form the basis of an Environmental Claim against
the Borrower or any of its Subsidiaries or any Real Estate;

     (iii) Any condition or occurrence on any Real Estate that could reasonably be
anticipated to cause such Real Estate to be subject to any restrictions on the
ownership, occupancy, use or transferability of such Real Estate under any
Environmental Law; and

     (iv) The taking of any removal or remedial action in response to the actual or
alleged presence of any Hazardous Material on any Real Estate.

     All such notices shall describe in reasonable detail the nature of the claim,
investigation, condition, occurrence or removal or remedial action and the Borrower’s
response thereto. The term “Real Estate” shall mean land, buildings and improvements owned
or leased by the Borrower or any of its Subsidiaries, but excluding all operating fixtures
and equipment, whether or not incorporated into improvements.

     (f) Pension Plans. Promptly after an Authorized Officer of the Borrower or any of its
Subsidiaries obtains knowledge thereof where the liability, individually or in the
aggregate, could reasonably be expected to result in a Material Adverse Effect, notice of
and copies of all documentation relating to (i) the institution of any steps by any Person
to terminate any Pension Plan, (ii) the failure to make a required contribution to any
Pension Plan if such failure is sufficient to give rise to a Lien under Section 302(f) of

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ERISA, (iii) the taking of any action with respect to a Pension Plan which could result
in the requirement that the Borrower or any of its Subsidiaries furnish a bond or other
security to such Pension Plan, or (iv) the occurrence of any event with respect to any
Pension Plan which could result in the incurrence by the Borrower or any of its Subsidiaries
of any material liability, fine or penalty.

     (g) Other Information. Promptly upon filing thereof, copies of any filings or
registration statements with, and reports to, any Governmental Authority in any relevant
jurisdiction by the Borrower or any of its Subsidiaries pursuant to applicable securities
laws (other than amendments to any registration statement (to the extent such registration
statement, in the form it becomes effective, is delivered to the Lenders), exhibits to any
registration statement) and copies of all financial statements, proxy statements, notices
and reports that the Borrower or any of its Subsidiaries shall send to the holders of any
publicly issued securities of the Borrower and/or any of its Subsidiaries in their capacity
as such holders (in each case to the extent not theretofore delivered to the Lenders
pursuant to this Agreement or filed with the Securities and Exchange Commission and publicly
available on EDGAR; provided, that the Borrower shall give prompt notice to the
Administrative Agent of such filing and if requested by any Lender, the Borrower shall
promptly deliver a copy of such filing to such requesting Lender) and, with reasonable
promptness, such other information (financial or otherwise) as the Administrative Agent on
its own behalf or on behalf of any Lender may reasonably request in writing from time to
time.

     8.2 Books, Record and Inspections.

     The Borrower will, and will cause each of its Subsidiaries to, (i) permit officers and
designated representatives of the Administrative Agent or the Required Lenders to visit and inspect
any of the properties or assets of the Borrower and its Subsidiaries in whomever’s possession to
the extent that it is within the Borrower’s or its Subsidiaries’ control to permit such inspection,
and to examine the books of account of the Borrower and any such Subsidiaries and discuss the
affairs, finances and accounts of the Borrower and of any such Subsidiaries with, and be advised as
to the same by, its and their officers and independent accountants, and (ii) permit officers and
designated representatives of Lenders to view copies of contracts of the Borrower and its
Subsidiaries (subject to reasonable confidentiality arrangements established by the Borrower), all
at such reasonable times during normal business hours and intervals and to such reasonable extent
as the Administrative Agent, the Required Lenders or the Lenders, as the case may be, may desire.

     8.3 Maintenance of Insurance.

     The Borrower will, and will cause each of its Subsidiaries to, at all times maintain in full
force and effect, with insurance companies that the Borrower believes (in the good faith judgment
of the management of the Borrower) are financially sound and responsible at the time the relevant
coverage is placed or renewed, insurance in at least such amounts and against at least such risks
(and with such risk retentions) as are usually insured against in the same general area by
companies engaged in the same or a similar business.

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     8.4 Payment of Taxes.

     The Borrower will pay and discharge, and will cause each of its Subsidiaries to pay and
discharge, all material taxes, assessments and governmental charges or levies imposed upon it or
upon its capital, income or profits, or upon any properties belonging to it, prior to the date on
which material penalties attach thereto, and all lawful material tax or similar claims that, if
unpaid, could reasonably be expected to become a material Lien upon any properties of the Borrower
or any of its Subsidiaries; provided that neither the Borrower nor any of its Subsidiaries shall be
required to pay any such tax, assessment, charge, levy or claim that is being contested in good
faith and by proper proceedings if it has maintained adequate reserves (in the good faith judgment
of the management of the Borrower) with respect thereto in accordance with GAAP.

     8.5 Organizational Existence.

     The Borrower will do, and will cause each of its Subsidiaries to do, or cause to be done, all
things necessary to preserve and keep in full force and effect its existence and its corporate or
other organizational rights and authority, except to the extent that the failure to do so could not
reasonably be expected to have a Material Adverse Effect; provided that, in any case, (a) the
Borrower and its Subsidiaries may consummate any transaction permitted under Section 9.2,
(b) any Subsidiary of the Borrower may merge with and into any other wholly-owned Subsidiary of the
Borrower and (c) except to the extent as could reasonably be expected to have a Material Adverse
Effect, any Subsidiary of the Borrower may enter into any merger or consolidation for the purpose
of changing its organizational form from a corporation to a limited liability company or from a
limited liability company to a corporation.

     8.6 Compliance with Statutes, Obligations, etc.

     The Borrower will, and will cause each of its Subsidiaries to, comply with all applicable
laws, rules, regulations and orders (including Environmental Laws), except to the extent the
failure to do so could not reasonably be expected to have a Material Adverse Effect.

     8.7 Good Repair.

     The Borrower will, and will cause each of its Subsidiaries to, ensure that its properties and
equipment used or useful in its business in whomever’s possession they may be to the extent that it
is within the Borrower’s or its Subsidiaries’ control to cause the same, are kept in good repair,
working order and condition, normal wear and tear excepted, and that from time to time there are
made in such properties and equipment all needful and proper repairs, renewals, replacements,
extensions, additions, betterments and improvements thereto, to the extent and in the manner
customary for companies in similar businesses and consistent with third party leases, except in
each case to the extent the failure to do so could not be reasonably expected to have a Material
Adverse Effect.

     8.8 Transactions with Affiliates.

     The Borrower will conduct, and will cause each of its Subsidiaries to conduct, all
transactions with any of its Affiliates on terms that are substantially as favorable to the
Borrower

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or such Subsidiary as it would obtain in a comparable arm’s-length transaction with a Person
that is not an Affiliate; provided that the foregoing restrictions shall not apply to (a)
transactions in the ordinary course of business at prices and on terms and conditions not less
favorable to the Borrower or such Subsidiary than could be obtained on an arm’s length basis from
unrelated third parties, (b) transactions between and among the Borrower and its wholly owned
Subsidiaries that do not involve any other Affiliate and (c) transactions permitted by Section
9.2 or Section 9.3.

     8.9 End of Fiscal Years; Fiscal Quarters.

     The Borrower will, for financial reporting purposes, cause (a) each of its, and each of its
Subsidiaries’, fiscal years to be comprised of twelve calendar months ending on December 31 of each
year and (b) each of its, and each of its Subsidiaries’, fiscal quarters to end on dates consistent
with such fiscal year-end; provided that the Borrower may, upon written notice to the
Administrative Agent, change the financial reporting convention specified above to any other
financial reporting convention reasonably acceptable to the Administrative Agent, in which case the
Borrower and the Administrative Agent will, and are hereby authorized by the Lenders to, make any
adjustments to this Agreement that are necessary in order to reflect such change in financial
reporting.

     8.10 Use of Proceeds.

     The Borrower will use the Letters of Credit and the proceeds of all the Revolving Credit Loans
only for the purposes set forth in
Section 2.1(b).

     8.11 Changes in Business.

     From the Closing Date, the Borrower and its Subsidiaries taken as a whole will not
fundamentally and substantively alter the character of their business taken as a whole from the
business conducted by the Borrower and its Subsidiaries taken as a whole on the Closing Date and
other business activities incidental or related to any of the foregoing (the “Business”).

ARTICLE 9

NEGATIVE COVENANTS

     The Borrower (on its own behalf and on behalf of each of its Subsidiaries) hereby covenants
and agrees that on the Closing Date and thereafter until the Revolving Credit Maturity Date:

     9.1 Limitation on Liens.

     The Borrower will not, and will not permit any of its Subsidiaries to, create, incur, assume
or suffer to exist any Lien upon any property or assets of any kind (real or personal, tangible or
intangible) of the Borrower or any of its Subsidiaries, whether now owned or hereafter acquired,
except:

     (a) Permitted Liens;

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     (b) Liens securing indebtedness incurred within 180 days of the acquisition,
construction or improvement of fixed or capital assets to finance the acquisition,
construction or improvement of such fixed or capital assets;

     (c) Liens existing on the Closing Date and as set out on Schedule IV;

     (d) Liens existing on the assets of any Person that becomes a Subsidiary, or existing
on assets acquired; provided that such Liens attach at all times only to the same assets
that such Liens attached to and secure only the same Indebtedness that such Liens secured,
immediately prior to such acquisition;

     (e) Liens in favor of the Borrower;

     (f) (i) Liens placed upon the Capital Stock or assets of any Subsidiary acquired to
secure Indebtedness of the Borrower or any Subsidiary incurred in connection with such
acquisition and (ii) Liens placed upon the assets of such Subsidiary acquired pursuant to an
acquisition to secure a guarantee by such Subsidiary of any such Indebtedness of the
Borrower or any Subsidiary;

     (g) Liens (i) on assets of the Borrower (of the same type as constitute collateral
under the METC First Mortgage Indenture on the date hereof) to secure Indebtedness of the
Borrower under the METC First Mortgage Indenture, including, without limitation, any notes
issued thereunder, and (ii) on assets of any other Subsidiary (of the same type that
constitute collateral under the METC First Mortgage Indenture on the date hereof) to secure
Indebtedness of any Subsidiary under any similar mortgage bond indenture, including, without
limitation, any notes issued thereunder;

     (h) any Lien securing Indebtedness for the payment, prepayment or redemption of which
there shall have been irrevocably deposited in trust with the trustee or other holder of
such Lien moneys and/or investment securities which (together with the interest reasonably
expected to be earned from the investment and reinvestment in investment securities of the
moneys and/or the principal of and interest on the investment securities so deposited) shall
be sufficient for such purpose; provided, however, that if such Indebtedness is to be
redeemed or otherwise prepaid prior to the stated maturity thereof, any notice requisite to
such redemption or prepayment shall have been given in accordance with the instrument
creating such Lien or irrevocable instructions to give such notice shall have been given to
such trustee or other holder;

     (i) Liens in favor of the United States of America or any State thereof, or any
department, agency or instrumentality or political subdivision of the United States of
America or any State thereof or political entity affiliated therewith, to secure partial,
progress, advance or other payments, or other obligations, pursuant to any contract or
statute to secure any Indebtedness incurred for the purpose of financing all or any part of
the cost of acquiring, constructing or improving property subject to such Liens (including
Liens incurred in connection with pollution control, industrial revenue or similar
financings);

49

 

     (j) Liens on any property created, assumed or otherwise brought into existence in
contemplation of the sale or other disposition of the underlying property, whether directly
or indirectly, by way of share disposition or otherwise; provided that 180 days from the
creation of such Liens the Borrower or the relevant Subsidiary shall have disposed of such
property and any Indebtedness secured by such Liens shall be without recourse to the
Borrower or any Subsidiary;

     (k) the replacement, extension or renewal of any Lien permitted by clauses (a) through
(j) above upon or in the same assets theretofore subject to such Lien or the replacement,
extension or renewal (without increase in the amount or change in any direct or contingent
obligor except to the extent otherwise permitted hereunder) of the Indebtedness secured
thereby; and

     (l) additional Liens so long as the aggregate outstanding principal amount of the
obligations so secured (including the imputed principal amount of any Capitalized Lease
Obligations) for the Borrower and its Subsidiaries does not exceed $20,000,000 in the
aggregate.

     9.2 Limitation on Fundamental Changes.

     The Borrower will not enter into any merger or consolidation, or liquidate, wind up or
dissolve itself (or suffer any liquidation or dissolution), or convey, sell, lease, assign,
transfer or otherwise dispose of, all or substantially all its business units, assets or other
properties, except that:

     (a) any Subsidiary of the Borrower or any other Person may be merged or consolidated
(including by way of liquidation or winding up) with or into the Borrower; provided that (i)
either (x) the Borrower shall be the continuing or surviving entity or (y) the debt rating
of the Person (if other than the Borrower) who is the continuing or surviving entity (the
Borrower or Person, as the case may be, being herein referred to as the “Successor
Borrower”) shall after giving effect to such merger or consolidation be BBB- or higher from
S&P or Baa3 or higher from Moody’s (provided that in no event shall such Successor Borrower
have a debt rating of BB or lower from S&P or Ba2 or lower from Moody’s), as determined
pursuant to the definition of “Applicable Margin”, (ii) the Successor Borrower shall be an
entity organized or existing under the laws of the United States or any State thereof, (iii)
the Successor Borrower shall expressly assume all the obligations of the Borrower under this
Agreement pursuant to a supplement hereto in form and substance reasonably satisfactory to
the Administrative Agent, (iv) no Default or Event of Default is then existing and no
Default or Event of Default would result from the consummation of such merger or
consolidation, (v) the Borrower shall be in compliance, on a pro forma basis after giving
effect to such merger or consolidation, with the covenant set forth in Section 9.4
as such covenant is recomputed as at the last day of the most recently ended fiscal quarter
under each such Section as if such merger or consolidation had occurred on the last day of
such fiscal quarter, and (vi) the Borrower shall have delivered to the Administrative Agent
an officer’s certificate, in form and substance reasonably satisfactory to the
Administrative Agent, certifying the compliance referred to in clause (v) above and stating
that such merger or consolidation and such

50

 

supplement to this Agreement comply with this Agreement and a legal opinion (in form
and substance reasonably satisfactory to the Administrative Agent) with respect to this
Agreement to be delivered, if any, pursuant to clause (iii) above; provided further that if
the foregoing are satisfied, such Successor Borrower (if other than the Borrower) will
succeed to, and be substituted for, the Borrower under this Agreement; and

     (b) the Borrower may enter into any merger or consolidation for the purpose of changing
its organizational form from a corporation to a limited liability company or from a limited
liability company to a corporation; provided that such change has no adverse affect on the
rights of the Finance Parties.

     9.3 Limitation on Dividends.

     If any Default or Event of Default then exists or would result therefrom, the Borrower will
not declare or pay any distributions (other than distributions payable solely in its Capital Stock)
or return any capital to its shareholders or make any other distribution, payment or delivery of
property or cash to its shareholders as such, or redeem, retire, purchase or otherwise acquire,
directly or indirectly, for consideration, any of its Capital Stock or the Capital Stock of any
direct or indirect shareholder of the Borrower now or hereafter outstanding (or any warrants for or
options or stock appreciation rights in respect of any of its Capital Stock), or set aside any
funds for any of the foregoing purposes, or permit any of its Subsidiaries to purchase or otherwise
acquire for consideration any Capital Stock of the Borrower, now or hereafter outstanding (or any
options or warrants or stock appreciation rights issued by such Person with respect to its Capital
Stock).

     9.4 Debt to Capitalization Ratio.

     The Borrower will not permit the Debt to Capitalization Ratio of the Borrower to be greater
than 65%, as of the last day of each fiscal quarter.

     9.5 Limitation on Sale-Lease Back Transactions.

     The Borrower will not enter into any sale-leaseback transaction (a “Sale and Leaseback
Transaction”) involving any of its property or assets whether now owned or hereafter acquired,
whereby the Borrower sells or otherwise transfers such property or assets and thereafter leases or
subleases such property or assets or any part thereof or any other property or assets that the
Borrower intends to use for substantially the same purpose or purposes as the property or assets
sold or otherwise transferred unless (a) the Borrower would be entitled to incur Indebtedness
secured by a Lien on such property or assets pursuant to Section 9.1 or (b) the
Attributable Value of all Sale and Leaseback Transactions entered into pursuant to this Section
9.5 does not exceed $20,000,000. A Sale and Leaseback Transaction shall not be deemed to result
in the creation of a Lien.

ARTICLE 10

EVENTS OF DEFAULT

     Each of the following specified events or occurrences described in Sections 10.1
through 10.8 below shall constitute an “Event of Default”:

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     10.1 Payments.

     The Borrower shall (a) default in the payment when due of any principal of the Revolving
Credit Loans or (b) default, and such default shall continue for five or more days, in the payment
when due of any interest on the Revolving Credit Loans or any Fees or any Unpaid Drawings or of any
other amounts owing hereunder.

     10.2 Representations, etc.

     Any representation, warranty or statement made or deemed made by the Borrower herein or any
certificate delivered or required to be delivered pursuant hereto shall prove to be untrue in any
material respect on the date as of which made or deemed made.

     10.3 Covenants.

     The Borrower shall (i) default in the due performance or observance by it of any term,
covenant or agreement contained in Section 8.1(d), Section 8.5 (solely with respect
to the Borrower), Section 8.11 or Article 9, or (ii) default in the due performance
or observance by it of any term, covenant or agreement (other than those referred to in Section
10.1 or 10.2 or clause (i) of this Section 10.3) contained in this Agreement
and such default shall continue unremedied for a period of at least 30 days after the receipt of
written notice by the Borrower from the Administrative Agent or the Required Lenders.

     10.4 Default Under Other Agreements.

     (a) The Borrower or any of its Subsidiaries shall (i) default in any payment with respect to
any Indebtedness, in excess of $15,000,000 in the aggregate, beyond the period of grace, if any,
provided in the instrument or agreement under which such Indebtedness was created or (ii) default
in the observance or performance of any agreement or condition relating to any such Indebtedness or
contained in any instrument or agreement evidencing, securing or relating thereto beyond the period
of grace, if any, provided in the instrument or agreement under which such Indebtedness was
created, or any other event shall occur or condition exist, the effect of which default or other
event or condition is to cause, or to permit the holder or holders of such Indebtedness (or a
trustee or agent on behalf of such holder or holders) to cause, any such Indebtedness to become due
prior to its stated maturity; or

     (b) without limiting the provisions of clause (a) above, any such Indebtedness shall be
declared to be due and payable, or required to be prepaid other than by a regularly scheduled
required prepayment or as a mandatory prepayment, prior to the stated maturity thereof.

     10.5 Bankruptcy, etc.

     The Borrower or any Subsidiary shall commence a voluntary case concerning itself under the
Bankruptcy Code as now or hereafter in effect, or any successor thereto or any similar legislation
in any other applicable jurisdiction (collectively, the “Bankruptcy Code”); or an involuntary case
is commenced against the Borrower or any Subsidiary and the petition or application is not
contested within 10 days after commencement of the case; or an involuntary case is commenced
against the Borrower or any Subsidiary and the petition or application is not

52

 

dismissed within 45 days after commencement of the case; or a receiver, trustee, liquidator,
custodian or similar official is appointed for, or takes charge of, all or substantially all of the
property of the Borrower or any Subsidiary or the Borrower or any Subsidiary commences any other
proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors,
dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter
in effect relating to the Borrower or any Subsidiary itself; or there is commenced against the
Borrower or any Subsidiary any such proceeding that remains undismissed for a period of 45 days; or
the Borrower or any Subsidiary is adjudicated insolvent or bankrupt; or any order of relief or
other order approving any such case or proceeding is entered; or the Borrower or any Subsidiary
makes a general assignment for the benefit of creditors, files under the Bankruptcy Act or takes a
similar action under the Bankruptcy Act; or any corporate or similar action is taken by the
Borrower or any Subsidiary for the purpose of effecting any of the foregoing; or the Borrower or
any Subsidiary is unable to pay its debts as they fall due, or makes a general assignment for the
benefit of or a composition with its creditors generally; or the Borrower or any Subsidiary takes
any corporate or similar action or other steps are taken or legal proceedings are started for its
winding-up, dissolution, administration or insolvent re-organization or for the appointment of a
liquidator, administrator or administrative receiver of it.

     10.6 Judgments.

     One or more judgments or decrees shall be entered against the Borrower or any of its
Subsidiaries involving a liability of $15,000,000 or more in the aggregate for all such judgments
and decrees for the Borrower or any of its Subsidiaries (to the extent not paid or fully covered by
insurance provided by a carrier not disputing coverage) and any such judgments or decrees shall not
have been satisfied, vacated, discharged or stayed or bonded pending appeal within 60 days from the
entry thereof.

     10.7 Change of Ownership.

     A Change of Ownership shall occur.

     10.8 Pension Plans.

     Any of the following events shall occur with respect to any Pension Plan: (a) the institution
of any steps by the Borrower or any other Person to terminate a Pension Plan if, as a result of
such termination, the Borrower or any of its Subsidiaries could be required to make a contribution
to such Pension Plan, or could reasonably expect to incur a liability or obligation to such Pension
Plan in respect of such termination; or (b) a contribution failure occurs with respect to any
Pension Plan sufficient to give rise to a Lien under section 302(f) of ERISA, where in each case
under clauses (a) or (b) such contribution, liability, obligation or Lien would reasonably be
expected to have a Material Adverse Effect.

     10.9 Remedies.

     Upon the occurrence of any Event of Default described above, and in any such event, and at any
time thereafter, if any Event of Default shall then be continuing, the Administrative Agent shall,
upon the written request of the Required Lenders, by written notice to the Borrower, take any or
all of the following actions, without prejudice to the rights of the Administrative Agent to

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enforce its claims against the Borrower, except as otherwise specifically provided for in this
Agreement (provided that, if an Event of Default specified in Section 10.5 shall occur with
respect to the Borrower, the result that would occur upon the giving of written notice by the
Administrative Agent as specified in clauses (i), and (ii) below shall occur automatically without
the giving of any such notice): (i) declare the Total Revolving Credit Commitment terminated,
whereupon the Revolving Credit Commitments of each Lender shall forthwith terminate immediately and
any Fees theretofore accrued shall forthwith become due and payable without any other notice of any
kind; (ii) declare the principal of and any accrued interest in respect of all Revolving Credit
Loans and all obligations owing hereunder to be, whereupon the same shall become, forthwith due and
payable without presentment, demand, protest or other notice of any kind, all of which are hereby
waived by the Borrower; (iii) terminate any Letter of Credit that may be terminated in accordance
with its terms; (iv) direct the Borrower to pay (and the Borrower agrees that upon receipt of such
notice, or upon the occurrence of an Event of Default specified in Section 10.5 with
respect to the Borrower, it will pay) to the Administrative Agent at the office of the
Administrative Agent from time to time notified by the Administrative Agent to the Borrower (but
initially the office set forth for the Administrative Agent in Section 12.2(a)(ii)) such
additional amounts of cash, to be held as security for the Borrower’s reimbursement obligations for
Drawings that may subsequently occur thereunder, equal to the aggregate Stated Amount of all
Letters of Credit issued and then outstanding; and/or (v) exercise any other remedies that may be
available under this Agreement or applicable law.

     10.10 Remedies Cumulative.

     The rights and remedies of the Administrative Agent and the Lenders under this Agreement are
cumulative and are in addition to and not in substitution for any rights or remedies provided by
law or by equity, and any single or partial exercise by the Lenders of any right or remedy for a
default or breach of any term, covenant, condition or agreement herein contained shall not be
deemed to be a waiver of or to alter, affect, or prejudice any other right or remedy or other
rights or remedies to which the Lenders may be lawfully entitled for the same default or breach,
and any waiver by the Administrative Agent or the Lenders of the strict observance, performance or
compliance with any term, covenant, condition or agreement herein contained, and any indulgence
granted by the Administrative Agent or the Lenders shall be deemed not to be a waiver of any
subsequent default. In the event that the Administrative Agent or the Lenders shall have proceeded
to enforce any such right, remedy or power contained herein and such proceedings shall have been
discontinued or abandoned for any reason, by written agreement between the Lenders and the
Borrower, then in each such event the Borrower and the Lenders shall be restored to their former
positions and the rights, remedies and powers of the Lenders shall continue as if no such
proceedings had been taken.

ARTICLE 11

THE ADMINISTRATIVE AGENT

     Each of the Lenders and the Letter of Credit Issuer hereby irrevocably appoints the
Administrative Agent as its agent and authorizes the Administrative Agent to take such actions on
its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms
hereof, together with such actions and powers as are reasonably incidental thereto.

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     The bank serving as the Administrative Agent hereunder shall have the same rights and powers
in its capacity as a Lender as any other Lender and may exercise the same as though it were not the
Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder.

     The Administrative Agent shall not have any duties or obligations except those expressly set
forth herein. Without limiting the generality of the foregoing, (a) the Administrative Agent shall
not be subject to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby that the Administrative Agent is required to exercise in writing as
directed by the Required Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 12.1), and (c) except as expressly
set forth herein, the Administrative Agent shall not have any duty to disclose, and shall not be
liable for the failure to disclose, any information relating to the Borrower or any of its
Subsidiaries that is communicated to or obtained by the bank serving as Administrative Agent or any
of its Affiliates in any capacity. The Administrative Agent shall not be liable for any action
taken or not taken by it with the consent or at the request of the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary under the circumstances as provided in
Section 12.1) or in the absence of its own gross negligence or willful misconduct. The
Administrative Agent shall be deemed not to have knowledge of any Default unless and until written
notice thereof is given to the Administrative Agent by the Borrower or a Lender, and the
Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i)
any statement, warranty or representation made in or in connection with this Agreement, (ii) the
contents of any certificate, report or other document delivered hereunder or in connection
herewith, (iii) the performance or observance of any of the covenants, agreements or other terms or
conditions set forth herein, (iv) the validity, enforceability, effectiveness or genuineness of
this Agreement or any other agreement, instrument or document, or (v) the satisfaction of any
condition set forth in Article 6 or elsewhere herein, other than to confirm receipt of
items expressly required to be delivered to the Administrative Agent.

     The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other
writing believed by it to be genuine and to have been signed or sent by the proper Person. The
Administrative Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any liability for relying
thereon. The Administrative Agent may consult with legal counsel (who may be counsel for the
Borrower), independent accountants and other experts selected by it, and shall not be liable for
any action taken or not taken by it in accordance with the advice of any such counsel, accountants
or experts.

     The Administrative Agent may perform any and all its duties and exercise its rights and powers
by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative
Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the preceding paragraphs
shall apply to any such sub-agent and to the Related Parties of the

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

     Subject to the appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time by notifying the Lenders, the
Letter of Credit Issuer and the Borrower. Upon any such resignation, the Required Lenders shall
have the right, with the consent of the Borrower (not to be unreasonably withheld), to appoint a
successor. If no successor shall have been so appointed by the Required Lenders and shall have
accepted such appointment within 30 days after the retiring Administrative Agent gives notice of
its resignation, then the retiring Administrative Agent may, on behalf of the Lenders and the
Letter of Credit Issuer, appoint a successor Administrative Agent which shall be a bank with an
office in New York, New York, or an Affiliate of any such bank. Upon the acceptance of its
appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and
become vested with all the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations
hereunder. The fees payable by the Borrower to a successor Administrative Agent shall be the same
as those payable to its predecessor unless otherwise agreed between the Borrower and such
successor. After the Administrative Agent’s resignation hereunder, the provisions of this Article
and Section 12.5 shall continue in effect for the benefit of such retiring Administrative
Agent, its sub-agents and their respective Related Parties in respect of any actions taken or
omitted to be taken by any of them while it was acting as Administrative Agent.

     Each Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each
Lender also acknowledges that it will, independently and without reliance upon the Administrative
Agent or any other Lender 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 related agreement or any document furnished hereunder or thereunder.

     Notwithstanding anything herein to the contrary the Joint Bookrunners, the Joint Lead
Arrangers and the Syndication Agent named on the cover page of this Agreement shall not have any
duties or liabilities under this Agreement, except in its capacity, if any, as a Lender.

ARTICLE 12

MISCELLANEOUS

     12.1 Amendments and Waivers.

     Neither this Agreement, nor any terms hereof or thereof may be amended, supplemented or
modified except in accordance with the provisions of this Section 12.1. The Required
Lenders may from time to time (a) enter into with the Borrower and Administrative Agent, as
applicable, written amendments, supplements or modifications hereto for the purpose of adding or
amending any provisions to this Agreement or changing in any manner the rights of the Lenders or of
the

56

 

Borrower hereunder or thereunder, (b) waive, on such terms and conditions as the Required
Lenders or the Administrative Agent, as the case may be, may specify in such instrument, any of the
requirements of this Agreement or any Default or Event of Default and its consequences; provided
that no such waiver and no such amendment, supplement or modification shall directly (i) forgive
any portion of, or extend or waive the final scheduled maturity date of, any Revolving Credit Loan,
or reduce the stated rate of, forgive any portion of or extend the date for the payment of any
interest or fee payable hereunder (other than as a result of waiving the applicability of any
post-default increase in interest rates) or extend the final expiration date of any Lender’s
Revolving Credit Commitment or extend the final expiration date of any Letter of Credit beyond the
L/C Maturity Date or increase the amount of any of the Revolving Credit Commitments of any Lender
or amend Section 3.2, in each case without the written consent of each Lender whose
Revolving Credit Loan, interest, fee or Revolving Credit Commitment is changed as set forth above
thereby, or (ii) amend, modify or waive any provision of this Section 12.1 or reduce the
percentages specified in the definitions of the terms “Required Lenders” or consent to the
assignment or transfer by the Borrower of its rights and obligations under this Agreement (except
as permitted pursuant to Section 9.1), in each case without the written consent of each
Lender, or (iii) amend, modify or waive any provision of Article 11 without the written
consent of the then-current Administrative Agent, or (iv) amend, modify or waive any provision of
Article 3 or Section 12.6(a)(ii) (to the extent it relates to the Letter of Credit
Issuer) without the written consent of the Letter of Credit Issuer, or (v) amend Section
5.2(a) to the extent that it relates to payments for the ratable account of Lenders without the
written consent of each Lender directly and adversely affected thereby, in each case without the
written consent of all the Lenders except as otherwise specifically provided in this Section
12.1 and provided further that at any time that no Default or Event of Default has occurred and
is continuing, the Revolving Credit Commitment of any Lender may be increased for any purpose
permitted hereunder, with the consent of such Lender, the Borrower and the Administrative Agent
(which consent, in the case of the Administrative Agent, shall not be unreasonably withheld) and
without the consent of the Required Lenders, as provided for in this Section 12.1.

     Any such waiver and any such amendment, supplement or modification shall apply equally to each
of the affected Lenders and shall be binding upon the Borrower, such Lenders, the Administrative
Agent and all future holders of the affected Revolving Credit Loans. In the case of any waiver, the
Borrower, the Lenders and the Administrative Agent shall be restored to their former positions and
rights hereunder, and any Default or Event of Default waived shall be deemed to be cured and not
continuing, it being understood that no such waiver shall extend to any subsequent or other Default
or Event of Default or impair any right consequent thereon.

     12.2 Notices.

     (a) Notices generally. All notices, requests and demands to or upon the respective parties
hereto to be effective shall be in writing (including by facsimile transmission) and, unless
otherwise expressly provided herein, if mailed and properly addressed with postage prepaid or if
properly addressed and sent by pre-paid courier service, shall be deemed given when received and,
if transmitted by facsimile, shall be deemed given when the confirmation of transmission thereof is
received by the transmitter, in each case addressed as follows in the case of the Borrower, the
Administrative Agent and as set forth on Schedule I in the case of each Lender (or

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as set forth in the Assignment and Acceptance of any Lender which is an Assignee) or to such
other address as may be hereafter notified by the respective parties hereto:

	 	(i)	 	The Borrower:
	 
	 	 	 	Michigan Electric Transmission Company, LLC

27175 Energy Way

Novi, MI 48377

Attention: Cameron M. Bready

Facsimile No.: (248) 380-2923

Telephone No.: (248) 946-3631
	 
	 	(ii)	 	The Administrative Agent:
	 
	 	 	 	JPMorgan Chase Bank, N.A.

Loan Operations

10 South Dearborn, 7th Floor

Chicago, IL 60603

Attention: Teresita Siao

Facsimile No.: (888) 292-9533
	 
	 	 	 	with copy to (except in the case of notices relating to borrowings,
continuations, conversions and letters of credit):
	 
	 	 	 	JPMorgan Chase Bank, N.A.

10 South Dearborn, 9th Floor

Mail Code IL1-0090

Chicago, IL 60603

Attention: Nancy R. Barwig

                 Credit Executive, Corporate Client Banking, Power and Utilities

Facsimile No.: (312) 732-1762
	 
	 	 	 	and
	 
	 	 	 	JPMorgan Chase Bank, N.A.

Portfolio Management Administration

10 South Dearborn, 9th Floor

Mail Code IL1-0874

Chicago, IL 60603

Attention: Mary McCorry

Facsimile No.: (312) 325-3238

provided that any notice, request or demand to or upon the Administrative Agent or the Lenders
pursuant to Sections 2.3, 2.6, 2.10, 4.2 and 5.1 shall not
be effective until received.

     (b) Electronic Communications. Notices and other communications to the Lenders hereunder may
be delivered or furnished by electronic communications pursuant to procedures

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approved by the Administrative Agent; provided that the foregoing shall not apply to notices
pursuant to Article 2 unless otherwise agreed by the Administrative Agent and the
applicable Lender. The Administrative Agent or the Borrower may, in its discretion, agree to
accept notices and other communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided that approval of such procedures may be limited to particular
notices or communications.

     (c) Communications on Electronic Transmission System. The Borrower agrees that the
Administrative Agent may make communications available to the Lenders by posting such
communications on Intralinks or a substantially similar electronic transmission system (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 COMMUNICATIONS, OR THE ADEQUACY
OF THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS. 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 THE AGENT PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE
PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT OR ANY OF ITS AFFILIATES OR ANY OF THEIR
RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR REPRESENTATIVES (COLLECTIVELY, THE
“AGENT PARTIES”) HAVE ANY LIABILITY TO THE BORROWER, ANY LENDER OR ANY OTHER PERSON OR
ENTITY FOR DAMAGES OF ANY KIND, INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL
DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF THE BORROWER’S
OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE
EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT OF
COMPETENT JURISDICTION TO HAVE RESULTED PRIMARILY FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT.

     12.3 No Waiver; Cumulative Remedies.

     No failure to exercise and no delay in exercising, on the part of the Administrative Agent or
any Lender, any right, remedy, power or privilege hereunder 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 are cumulative and not
exclusive of any rights, remedies, powers and privileges provided by law.

     12.4 Survival of Representations and Warranties.

     All representations and warranties made hereunder and in any document, certificate or
statement delivered pursuant hereto or in connection herewith shall survive the execution and
delivery of this Agreement and the making of the Revolving Credit Loans hereunder.

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     12.5 Payment of Expenses and Taxes.

     (a) The Borrower agrees (i) to pay or reimburse the Arrangers and the Administrative Agent for
all their reasonable and documented out-of-pocket costs and expenses incurred in connection with
the development, preparation and execution of, and any amendment, supplement or modification to,
this Agreement and any other documents prepared in connection herewith or therewith, and the
consummation and administration of the transactions contemplated hereby and thereby (including the
syndication of the Revolving Credit Commitments), including the reasonable fees, disbursements and
other charges of one counsel to the Administrative Agent, (ii) to pay or reimburse each Lender and
the Administrative Agent for all its reasonable and documented costs and expenses incurred in
connection with the enforcement or preservation of any rights under, or “workout” or restructuring
of, this Agreement and any such other documents, including the reasonable fees, disbursements and
other charges of counsel to each Lender and of counsel to the Administrative Agent, (iii) to pay,
indemnify, defend and hold harmless each Lender and the Administrative Agent from, any and all
recording and filing fees and any and all liabilities with respect to, or resulting from any delay
in paying, stamp, excise and other similar taxes, if any, that may be payable or determined to be
payable in connection with the execution and delivery of, or consummation or administration of any
of the transactions contemplated by, or any amendment, supplement or modification of, or any waiver
or consent under or in respect of, this Agreement and any such other documents (collectively,
“Other Taxes”), and (iv) to pay, indemnify, defend and hold harmless each Lender, each Arranger and
the Administrative Agent and their respective directors, officers, employees, trustee, agents and
Affiliates (collectively, the “Indemnitees”) from and against any and all other liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever (including reasonable and documented fees,
disbursements and other charges of counsel incurred in connection with any investigative,
administrative or judicial proceeding commenced or threatened by any Person, whether or not any
such Indemnitee shall be designated as a party or potential party thereto, and any fees or expenses
incurred by any Indemnitee in enforcing this indemnity), whether direct, indirect or consequential,
whether based on strict liability or negligence, and whether based on any federal, provincial or
foreign laws, statutes, rules, regulations or guidelines (including Environmental Laws), common
law, equity, contract or otherwise that may be imposed on, incurred by or asserted against any
Indemnitee, in any manner arising out of or relating to (A) this Agreement and any other agreements
or documents contemplated hereby or thereby, the other transactions contemplated hereby (including
the execution, delivery, enforcement, performance and administration of this Agreement and the
breach by the Borrower of, or default by the Borrower under, any of the provisions of this
Agreement, any Revolving Credit Loan or Letter of Credit, or the use or proposed use of the
proceeds thereof), (B) the violation of, non-compliance with or liability under, any Environmental
Law applicable to the operations of the Borrower or any of its Subsidiaries or applicable to any of
the Real Estate, or (C) any Environmental Claim or any Hazardous Materials relating to or arising
from, directly or indirectly, any past or present activity, operation, land ownership, possession
or control, or practice of, the Borrower or any of its Subsidiaries from time to time (all the
foregoing in this clause (iv), collectively, the “indemnified liabilities”); provided that
the Borrower shall have no obligation hereunder to any Indemnitee with respect to indemnified
liabilities arising from the gross negligence or willful misconduct of such Indemnitee as
determined by a final judgment of a court of competent jurisdiction and provided further that the
Borrower shall have no obligation hereunder to any

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Indemnitee with respect to claims that do not involve an act or omission of the Borrower or
any of its affiliates and that is brought by the Administrative Agent, an Arranger or any Lender
against any other Lender. The agreements in this Section 12.5 shall survive repayment of
the Revolving Credit Loans and all other amounts payable hereunder.

     Each of the Lenders, each of the Arrangers and the Administrative Agent agree that any and all
of their respective rights under this Agreement and any other agreements contemplated hereby and
thereby, including recourse for any obligation or claim for any indemnification thereunder, is
limited to recourse to the Borrower and its assets as contemplated hereby, and none of the direct
or indirect limited partners, partners, shareholders, members of the Borrower or any of their
respective employees, directors or officers shall have any obligations or liability, or be subject
to any recourse, in respect of any such obligations or claims hereunder or thereunder.

     (b) To the extent that the Borrower fails to pay any amount required to be paid by it to the
Administrative Agent or any Arranger under paragraph (a) of this Section 12.5, each Lender
severally agrees to pay to the Administrative Agent or such Arranger, as the case may be, such
Lender’s Revolving Credit Commitment Percentage (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount, provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case
may be, was incurred by or asserted against the Administrative Agent or such Arranger in its
capacity as such.

     12.6 Successors and Assigns; Participations and Assignments.

     (a) Assignments 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
(including any Affiliate of the Letter of Credit Issuer that issues any Letter of Credit), except
that (i) the Borrower may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted assignment or
transfer by the Borrower without such consent shall be null and void) and (ii) no Lender may assign
or otherwise transfer its rights or obligations hereunder except in accordance with this
Section 12.6. 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 (including any Affiliate of the Letter of Credit Issuer that issues any Letter of Credit),
Participants (to the extent provided in paragraph (c) of this Section 12.6) and, to the
extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the
Letter of Credit Issuer and the Lenders) any legal or equitable right, remedy or claim under or by
reason of this Agreement.

     (b) Assignments by Lenders.

     (i) Assignments Generally. Subject to the conditions set forth in paragraph (b)(ii)
below, any Lender may assign to one or more assignees (the “Assignee”) all or a portion of
its rights and obligations under this Agreement (including all or a portion of its Revolving
Credit Commitment and the Loans at the time owing to it) with the prior written consent
(such consent not to be unreasonably withheld) of:

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     (A) the Borrower (provided that the Borrower shall be deemed to have consented
to any such assignment unless it shall object thereto by written notice to the
Administrative Agent within fifteen (15) days after having received notice thereof),
provided that no consent of the Borrower shall be required for an assignment
to a Lender, an Affiliate of a Lender, an Approved Fund or, if an Event of Default
has occurred and is continuing, any other assignee;

     (B) the Administrative Agent; and

     (C) the Letter of Credit Issuer.

     (ii) Certain Conditions to Assignments. Assignments shall be subject to the following
additional conditions:

     (A) except in the case of an assignment to a Lender or an Affiliate of a Lender
or an assignment of the entire remaining amount of the assigning Lender’s Revolving
Credit Commitment, Revolving Credit Loans, the amount of the Revolving Credit
Commitment, or Revolving Credit Loans of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Acceptance with respect to
such assignment is delivered to the Administrative Agent) shall not be less than
$5,000,000 unless each of the Borrower and the Administrative Agent otherwise
consent, provided that no such consent of the Borrower shall be required if
an Event of Default has occurred and is continuing;

     (B) 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;

     (C) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Acceptance, together with a processing and
recordation fee of $3,500; and

     (D) the Assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire.

     (iii) Effectiveness of Assignments. Subject to acceptance and recording thereof
pursuant to paragraph (b)(iv) of this Section 12.6, from and after the effective
date specified in each Assignment and Acceptance the Assignee thereunder shall be a party
hereto (the “Assignment Effective Date”) and, to the extent of the interest assigned by such
Assignment and Acceptance, 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 Acceptance, be released from its obligations under this Agreement (and, in
the case of an Assignment and Acceptance covering all of the assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a party hereto but shall
continue to be entitled to the benefits of Sections 2.10, 2.11, 3.5
and 12.5). Any assignment or transfer by a Lender of rights or obligations under
this Agreement that does not comply with this Section 12.6 shall be treated for
purposes of

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this Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (c) of this Section 12.6.

     (iv) Maintenance of Register. The Administrative Agent, acting for this purpose as an
agent of the Borrower, shall maintain at one of its offices a copy of each Assignment and
Acceptance delivered to it and a register for the recordation of the names and addresses of
the Lenders, and the Revolving Credit Commitment of, and principal amount of the Revolving
Credit Loans and Unpaid Drawings owing to, each Lender pursuant to the terms hereof from
time to time (the “Register”). The entries in the Register shall be conclusive, and the
Borrower, the Administrative Agent, the Letter of Credit Issuer and the Lenders may treat
each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by the Borrower, the Letter of Credit Issuer and
any Lender, at any reasonable time and from time to time upon reasonable prior notice.

     (v) Acceptance of Assignments by Administrative Agent. Upon its receipt of a duly
completed Assignment and Acceptance executed by an assigning Lender and an assignee, the
assignee’s completed Administrative Questionnaire (unless the assignee shall already be a
Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this
Section 12.6 and any written consent to such assignment required by paragraph (b) of
this Section 12.6, the Administrative Agent shall accept such Assignment and
Acceptance and record the information contained therein in the Register; provided
that if either the assigning Lender or the assignee shall have failed to make any payment
required to be made by it pursuant to Section 2.4(b), 3.3 or 3.4,
the Administrative Agent shall have no obligation to accept such Assignment and Acceptance
and record the information therein in the Register unless and until such payment shall have
been made in full, together with all accrued interest thereon. No assignment shall be
effective for purposes of this Agreement unless it has been recorded in the Register as
provided in this paragraph.

     (vi) No Assignment to the Borrower or its Affiliates. No assignment pursuant to this
Section 12.6 shall be made to the Borrower or any of its Affiliates.

     (c) Participations.

     (i) Participations Generally. Any Lender may, without the consent of the Borrower, the
Administrative Agent or the Letter of Credit Issuer, sell participations to one or more
banks or other entities (a “Participant”) in all or a portion of such Lender’s rights and
obligations under this Agreement (including all or a portion of its Revolving Credit
Commitment and the Revolving Credit Loans owing to it); provided that (A) such
Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender shall
remain solely responsible to the other parties hereto for the performance of such
obligations and (C) the Borrower, the Administrative Agent, the Letter of Credit Issuer and
the other Lenders shall continue to deal solely and directly with such Lender in connection
with such Lender’s rights and obligations under this Agreement. Any agreement or instrument
pursuant to which a Lender sells such a participation shall

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provide that such Lender shall retain the sole right to enforce this Agreement and to
approve any amendment, modification or waiver of any provision of this Agreement;
provided that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, modification or waiver
described in the second sentence of Section 12.1 that affects such Participant.
Subject to paragraph (c)(ii) of this Section, the Borrower agrees that each Participant
shall be entitled to the benefits of Sections 2.10, 2.11 and 3.5 to
the same extent as if it were a Lender and had acquired its interest by assignment pursuant
to paragraph (b) of this Section. To the extent permitted by law, each Participant also
shall be entitled to the benefits of Section 12.8 as though it were a Lender.

     (ii) Limitations on Rights of Participants. A Participant shall not be entitled to
receive any greater payment under Section 2.10 or 3.5 than the applicable
Lender would have been entitled to receive with respect to the participation sold to such
Participant, unless the sale of the participation to such Participant is made with the
Borrower’s prior written consent. Any Participant that is a Non-U.S. Lender shall not be
entitled to the benefits of Section 5.3 unless such Participant complies with
Section 5.3(c).

     (d) 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 to secure obligations of such Lender, including
without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank, and
this Section 12.6 shall not apply to any such pledge or assignment of a security interest;
provided that no such pledge or assignment of a security interest shall release a Lender
from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as
a party hereto.

     12.7 Replacements of Lenders under Certain Circumstances.

     (a) If any Lender requests compensation under Section 2.10, or if the Borrower is
required to pay any additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 5.3, or if any Lender becomes a Defaulting Lender, or if
any Lender is affected in the manner described in Section 2.10(a)(iii) and as a result
thereof any of the actions described in such Section is required to be taken, then the 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 Section 12.6) all its interests, rights and obligations under
this Agreement to an assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); provided that (i) no Default or Event of Default
shall have occurred and be continuing at the time of such assignment, (ii) the Borrower shall have
received the prior written consent of the Administrative Agent and the Letter of Credit Issuer,
which consents shall not unreasonably be withheld, (iii) the Borrower shall have paid the
Administrative Agent the assignment fee specified in Section 12.6, (iv) such Lender shall
have received payment of an amount equal to the outstanding principal of its Loans, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to
the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the
case of all other amounts), (v) in the case of any such assignment resulting from payments required
to be

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made pursuant to Section 2.10 or a claim for compensation under Section 2.11,
such assignment will result in a reduction in such compensation or payments and (vi) such
assignment does not conflict with applicable law. A Lender shall not be required to make any such
assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise,
the circumstances entitling the Borrower to require such assignment and delegation cease to apply;
or

     (b) In the event that S&P or Moody’s shall, after the date that any Lender with a Revolving
Credit Commitment becomes a Lender, downgrade the long-term certificate of deposit rating or
long-term senior unsecured debt rating of such Lender, and the resulting rating shall be below BBB-
or Baa3 respectively, then the Borrower shall have the right, but not the obligation, upon notice
to such Lender and the Administrative Agent, to replace such Lender with an Assignee in accordance
with and subject to the restrictions contained in Section 12.6, and such Lender hereby
agrees to transfer and assign without recourse (in accordance with and subject to the restrictions
contained in Section 12.6) all its interests, rights and obligations in respect of its
Revolving Credit Commitment under this Agreement to such Assignee; provided that (i) no such
assignment shall conflict with any law, regulation or order of any governmental authority and (ii)
such Assignee shall pay to such Lender in immediately available funds on the date of such
assignment the principal of and interest and fees (if any) accrued to the date of payment on the
Revolving Credit Loans made by such Lender hereunder and all other amounts accrued for such
Lender’s account or owed to it hereunder.

     12.8 Adjustments; Set-off.

     (a) If any Defaulting Lender shall fail to make any payment required to be made by it pursuant
to Section 2.4(b), 3.3(c), 3.4(c), 12.5(b) or 12.8(c), then
the Administrative Agent may, in its discretion and notwithstanding any contrary provision hereof,
(i) apply for the benefit of the Administrative Agent, the Letter of Credit Issuer or any Lender
any amounts thereafter received by the Administrative Agent for the account of such Lender to
satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are
fully paid, and/or (ii) hold any such amounts in a segregated account as cash collateral for, and
application to, any future funding obligations of such Lender under such Sections; in the case of
each of (i) and (ii) above, in any order as determined by the Administrative Agent in its
discretion.

     (b) After the occurrence and during the continuance of an Event of Default, in addition to any
rights and remedies of the Lenders provided by law, each Lender shall have the right, without prior
notice to the Borrower, any such notice being expressly waived by the Borrower to the extent
permitted by applicable law, upon any amount becoming due and payable by the Borrower hereunder
(whether at the stated maturity, by acceleration or otherwise) to set-off and appropriate and apply
against such amount any and all deposits (general or special, time or demand, provisional or
final), in any currency, and any other credits, indebtedness or claims, in any currency, in each
case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or
owing by such Lender or any branch or agency thereof to or for the credit or the account of the
Borrower. Each Lender agrees promptly to notify the Borrower and the Administrative Agent after any
such set-off and application made by such Lender, provided that the failure to give such notice
shall not affect the validity of such set-off and application.

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     (c) If any Finance Party shall obtain any payment or other recovery (whether voluntary,
involuntary, by application of setoff or otherwise) on account of any Credit Event (other than
pursuant to the terms of Section 2.10, 2.11 or 5.3) in excess of its pro
rata share of payments obtained by all Finance Parties, such Finance Party shall purchase from the
other Finance Parties such participations in Credit Events made by them as shall be necessary to
cause such purchasing Finance Party to share the excess payment or other recovery ratably (to the
extent such other Finance Parties were entitled to receive a portion of such payment or recovery)
with each of them; provided that if all or any portion of the excess payment or other recovery is
thereafter recovered from such purchasing Finance Party, the purchase shall be rescinded and each
Finance Party which has sold a participation to the purchasing Finance Party shall repay to the
purchasing Finance Party the purchase price to the ratable extent of such recovery together with an
amount equal to such selling Finance Party’s ratable share (according to the proportion of (a) the
amount of such selling Finance Party’s required repayment to the purchasing Finance Party to (b)
total amount so recovered from the purchasing Finance Party) of any interest or other amount paid
or payable by the purchasing Finance Party in respect of the total amount so recovered. The
Borrower agrees that any Finance Party purchasing a participation from another Finance Party
pursuant to this Section 12.8 may, to the fullest extent permitted by law, exercise all its
rights of payment (including pursuant to clause (b) above) with respect to such participation as
fully as if such Finance Party were the direct creditor of the Borrower in the amount of such
participation. If under any applicable bankruptcy, insolvency or other similar law any Finance
Party receives a secured claim in lieu of a setoff to which this Section 12.8 applies, such
Finance Party shall, to the extent practicable, exercise its rights in respect of such secured
claim in a manner consistent with the rights of the Lenders entitled under this Section
12.8 to share in the benefits of any recovery on such secured claim.

     12.9 Marshalling; Payments Set Aside.

     Neither the Administrative Agent nor any Lender shall be under any obligation to marshal any
assets in favor of the Borrower or any other party or against or in payment of any or all of the
Borrower’s obligations hereunder. To the extent that the Borrower makes a payment or payments to
the Administrative Agent, any Letter of Credit Issuer or Lenders (or to the Administrative Agent
for the benefit of Lenders), or the Administrative Agent, any Letter of Credit Issuer or Lenders
enforce any security interests or exercise their rights of setoff, and such payment or payments or
the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated,
declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee,
receiver or any other party under any bankruptcy law, any other provincial, state or federal law,
common law or any equitable cause, then, to the extent of such recovery, the obligation or part
thereof originally intended to be satisfied, and all Liens, rights and remedies therefor or related
thereto, shall be revived and continued in full force and effect as if such payment or payments had
not been made or such enforcement or setoff had not occurred.

     12.10 Counterparts.

     This Agreement may be executed by one or more of the parties to this Agreement on any number
of separate counterparts (including by facsimile transmission), and all of said counterparts taken
together shall be deemed to constitute one and the same instrument. A set of

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the copies of this Agreement signed by all the parties shall be lodged with the Borrower and
the Administrative Agent.

     12.11 Severability.

     Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction.

     12.12 Integration.

     This Agreement represents the agreement of the Borrower, the Administrative Agent and the
Lenders with respect to the subject matter hereof, and there are no promises, undertakings,
representations or warranties by the Administrative Agent or any Lender relative to subject matter
hereof not expressly set forth or referred to herein.

     12.13 Governing Law.

     THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY,
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK AND THE LAWS OF
THE UNITED STATES APPLICABLE THEREIN (EXCLUDING ANY CONFLICT OF LAWS RULE OR PRINCIPLE WHICH MIGHT
REFER SUCH CONSTRUCTION TO THE LAWS OF ANOTHER JURISDICTION).

     12.14 Submission to Jurisdiction; Waivers.

     The Borrower hereby irrevocably and unconditionally:

     (a) submits for itself and its property in any legal action or proceeding relating to
this Agreement, or for recognition and enforcement of any judgment in respect thereof, to
the exclusive jurisdiction of the courts of the State of New York or of the United States
for the Southern District of New York, and any appellate court from any thereof, in each
case which are located in the Borough of Manhattan in the county of New York;

     (b) consents that any such action or proceeding may be brought in such courts and
waives any objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in an
inconvenient court and agrees not to plead or claim the same;

     (c) agrees that service of process in any such action or proceeding may be effected in
accordance with the local rules of civil procedure or by mailing a copy thereof by
registered or certified mail (or any substantially similar form of mail), postage prepaid,
to the Borrower at its address set forth in Section 12.2 or at such other address of
which the Administrative Agent shall have been notified pursuant thereto;

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     (d) agrees that nothing herein shall affect the right to effect service of process in
any other manner permitted by law or shall limit the right to sue in any other jurisdiction;
and

     (e) waives, to the maximum extent not prohibited by law, any right it may have to claim
or recover in any legal action or proceeding referred to in this Section 12.14 any
special, exemplary, punitive or consequential damages.

     12.15 Acknowledgements.

     The Borrower hereby acknowledges that:

     (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement;

     (b) neither the Administrative Agent nor any Lender (in any capacity) has any fiduciary
relationship with or duty to the Borrower arising out of or in connection with this
Agreement, and the relationship between Administrative Agent and Lenders, on one hand, and
the Borrower, on the other hand, in connection herewith or therewith is solely that of
debtor and creditor; and

     (c) no joint venture is created hereby or otherwise exists by virtue of the
transactions contemplated hereby among the Lenders or among the Borrower and the Lenders.

     12.16 Waivers of Jury Trial.

     THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY
COUNTERCLAIM THEREIN.

     12.17 Confidentiality.

     The Administrative Agent and each Lender shall hold all non-public information furnished by or
on behalf of the Borrower in connection with such Lender’s evaluation of whether to become a Lender
hereunder or obtained by such Lender or the Administrative Agent pursuant to the requirements of
this Agreement (“Confidential Information”), in accordance with its customary procedure for
handling confidential information of this nature and (in the case of a Lender that is a bank) in
accordance with safe and sound banking practices and in any event may make disclosure as required
or requested by any Governmental Authority, representatives thereof or any nationally recognized
rating agency that requires access to information about such Lender’s investment portfolio in
connection with ratings issued with respect to such Lender or pursuant to legal process or to such
Lender’s or the Administrative Agent’s lawyers, professional advisors or independent auditors or
Affiliates; provided that, unless specifically prohibited by applicable law or court order, each
Lender and the Administrative Agent shall notify the Borrower of any request by any governmental
agency or representative thereof (other than any such request in connection with an examination of
the financial condition or regulatory

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compliance of such Lender by such Governmental Authority or in connection with ratings by such
rating agency with respect to such Lender) for disclosure of any such non-public information prior
to disclosure of such information, and provided further that in no event shall any Lender or the
Administrative Agent be obligated or required to return any materials furnished by the Borrower or
any Subsidiary of the Borrower. Each Lender and the Administrative Agent agrees that it will not
provide to prospective Assignees or Participants or to prospective direct or indirect contractual
counterparties in swap agreements to be entered into in connection with Revolving Credit Loans made
hereunder any of the Confidential Information unless such Person shall have previously executed a
Confidentiality Agreement substantially in the form prescribed from time to time by the Loan Sales
and Trading Association.

     12.18 Treatment of Revolving Credit Loans.

     (a) The Borrower does not intend to treat the Revolving Credit Loans and related transactions
as being a “reportable transaction” (within the meaning of Treasury Regulation Section 1.6011-4).
In the event the Borrower determines to take any action inconsistent with such intention, it will
promptly notify the Administrative Agent thereof.

     (b) The Borrower acknowledges that the Administrative Agent and one or more of the Lenders may
treat its Revolving Credit Loans as part of a transaction that is subject to Treasury Regulation
Section 1.6011-4 or Section 301.6112-1, and the Administrative Agent and such Lender or Lenders, as
applicable, may file such IRS forms or maintain such lists and other records as they may determine
is required by such Treasury Regulations.

     12.19 USA Patriot Act.

     Each Lender hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT
Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), such Lender may be required
to obtain, verify and record information that identifies the Borrower, which information includes
the name and address of the Borrower and other information that will allow such Lender to identify
the Borrower in accordance with said Act.

     12.20 No Fiduciary Duty.

     The Administrative Agent, each Lender and their Affiliates (collectively, solely for purposes
of this paragraph, the “Lenders”), may have economic interests that conflict with those of
the Borrower and its affiliates. The Borrower agrees that nothing in this Agreement or otherwise
shall be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other
implied duty between the Lenders and the Borrower, its stockholders or its affiliates. The Borrower
acknowledges and agrees that (i) the transactions contemplated by this Agreement are arm’s-length
commercial transactions between the Lenders, on the one hand, and the Borrower, on the other, (ii)
in connection therewith and with the process leading to such transaction each of the Lenders is
acting solely as a principal and not the agent or fiduciary of the Borrower, its management,
stockholders, creditors or any other person, (iii) no Lender has assumed an advisory or fiduciary
responsibility in favor of the Borrower with respect to the transactions contemplated hereby or the
process leading thereto (irrespective of whether any Lender or any of its affiliates has advised or
is currently advising the Borrower on other matters) or any other

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obligation to the Borrower except the obligations expressly set forth in this Agreement and
(iv) the Borrower has consulted its own legal and financial advisors to the extent it deemed
appropriate. The Borrower further acknowledges and agrees that it is responsible for making its own
independent judgment with respect to such transactions and the process leading thereto. The
Borrower agrees that it shall not claim that any Lender has rendered advisory services of any
nature or respect, or owes a fiduciary or similar duty to the Borrower, in connection with such
transaction or the process leading thereto.

[Remainder
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     IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Agreement
to be duly executed and delivered as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 

	 	 	MICHIGAN ELECTRIC TRANSMISSION COMPANY, LLC,

as the Borrower
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By: Michigan Transco Holdings, L.P., sole member
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By: 	METC GP Holdings II, LLC,
General Partner
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	By: 	METC GP Holdings, Inc.,
sole member and sole manager
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By: ITC Holdings Corp., its sole owner
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Cameron M. Bready
	 	 	 	 	 	 
	 	 	 	 	Name:	Cameron M. Bready
	 	 	 	 	Title:	Executive Vice
President, Treasurer &
 Chief Financial Officer

Signature Page to METC Credit Agreement

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.

as Administrative Agent, a Lender and as Letter of Credit Issuer

 	 
	 	By:  	/s/ Nancy R. Barwig
 	 
	 	 	Name:  	Nancy R. Barwig 	 
	 	 	Title:  	Credit Executive 	 
	 

Signature
Page to ITC Holdings  Credit Agreement

 

 

	 	 	 	 	 
	 	BARCLAYS BANK PLC,

as a Lender

 	 
	 	By:  	/s/ Ann E. Sutton
 	 
	 	 	Name:  	Ann E. Sutton 	 
	 	 	Title:  	Director 	 
	 

Signature
Page to ITC Holdings Credit Agreement

 

 

	 	 	 	 	 
	 	COMERICA BANK,

as a Lender

 	 
	 	By:  	/s/ Jessica Migliore
 	 
	 	 	Name:  	Jessica Migliore 	 
	 	 	Title:  	Vice President 	 
	 

Signature
Page to ITC Holdings Credit Agreement

 

 

	 	 	 	 	 
	 	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH

as a Lender

 	 
	 	By:  	/s/ Shaheen Malik
 	 
	 	 	Name:  	Shaheen Malik 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 
	 	By:  	                        /s/ Rahul Parmar
 	 
	 	 	Name:  	Rahul Parmar 	 
	 	 	Title:  	Associate 	 
	 

Signature
Page to ITC Holdings Credit Agreement

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Shawn Young
 	 
	 	 	Name:  	Shawn Young 	 
	 	 	Title:  	Director 	 
	 

Signature Page to ITC Holdings Credit Agreement

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

as a Lender

 	 
	 	By:  	/s/ Carlos Morales
 	 
	 	 	Name:  	Carlos Morales 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to ITC Holdings Credit Agreement

 

 

	 	 	 	 	 
	 	DEUTSCHE BANK AG, NEW YORK BRANCH,

as a Lender

 	 
	 	By:  	/s/ Philippe Sandmeier
 	 
	 	 	Name:  	Philippe Sandmeier 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                     /s/ Edward D. Herko
 	 
	 	 	Name:  	Edward D. Herko 	 
	 	 	Title:  	Director 	 
	 

Signature Page to ITC Holdings Credit Agreement

 

 

	 	 	 	 	 
	 	GOLDMAN SACHS BANK USA,

as a Lender

 	 
	 	By:  	/s/ Mark Walton
 	 
	 	 	Name:  	Mark Walton 	 
	 	 	Title:  	Authorized Signatory 	 
	 

Signature Page to ITC Holdings Credit Agreement

 

 

	 	 	 	 	 
	 	MORGAN STANLEY BANK, N.A.,

as a Lender

 	 
	 	By:  	/s/ Sherrese Clarke
 	 
	 	 	Name:  	Sherrese Clarke 	 
	 	 	Title:  	Authorized Signatory 	 
	 

Signature Page to ITC Holdings Credit Agreement

 

 

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Richard C. Hampson
 	 
	 	 	Name:  	Richard C. Hampson 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to ITC Holdings Credit Agreement

 

 

SCHEDULE I

COMMITMENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	REVOLVING	 
	 	 	 	 	REVOLVING	 	 	CREDIT	 
	 	 	 	 	CREDIT	 	 	COMMITMENT	 
	LENDER	 	ADDRESS FOR NOTICES	 	COMMITMENT	 	 	PERCENTAGE	 
	JPMorgan Chase
Bank, N.A.

	 	JPMorgan Chase Bank, N.A.

Loan Operations

10 South Dearborn, 7th Floor

Chicago, IL 60603

Attention: Teresita Siao

Facsimile No.: (888) 292-9533
	 	$	16,250,000	 	 	 	16.25	%
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	with copy to (except in the case of
notices relating to borrowings,
continuations and conversions):	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	JPMorgan Chase Bank, N.A.

10 South Dearborn, 9th Floor

Mail Code IL1-0090

Chicago, IL 60603

Attention: Nancy R. Barwig

                 Credit Executive,

                 Corporate Client
Banking,

                 Power and Utilities

Facsimile No.: (312) 732-1762	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	and	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	JPMorgan Chase Bank, N.A.

Portfolio Management Administration

10 South Dearborn, 9th Floor

Mail Code IL1-0874

Chicago, IL 60603

Attention: Mary McCorry

Facsimile No.: (312) 325-3238	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Barclays Bank PLC

	 	Barclays Capital

745 Seventh Avenue, 26th Floor

New York, New York 10019

Attention: May Huang

Fax: (212) 526-5115
	 	$	16,250,000	 	 	 	16.25	%
	 
	Comerica Bank

	 	Comerica Bank

3551 Hamlin Road

Auburn Hills, MI 48236

Attention: Jessica Migliore

Fax: 248-371-6815
	 	$	11,250,000	 	 	 	11.25	%

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	REVOLVING	 
	 	 	 	 	REVOLVING	 	 	CREDIT	 
	 	 	 	 	CREDIT	 	 	COMMITMENT	 
	LENDER	 	ADDRESS FOR NOTICES	 	COMMITMENT	 	 	PERCENTAGE	 
	Credit Suisse AG, 

Cayman Islands 

Branch

	 	Credit Suisse AG, Cayman Islands Branch

Eleven Madison Avenue

New York, NY 10010

Attention: Shaheen Malik

Fax: 212-322-0420
	 	$	11,250,000	 	 	 	11.25	%
	 
	 	 	 	 	 	 	 	 	 	 
	Wells Fargo Bank, 

National
Association

	 	Wells Fargo Bank, National Association

90 S. 7th Street

MAC: N9305-077

Minneapolis, MN 55402

Attention: Scott Bjelde
Fax: (612) 316-0506
	 	$	11,250,000	 	 	 	11.25	%
	 
	 	 	 	 	 	 	 	 	 	 
	Bank of America,
N.A.

	 	Bank of America Merrill Lynch

135 S. LaSalle Street

IL 4-135-04-61

Chicago, IL 60603

Attention: Carlos Morales

Fax: (312) 992-6310
	 	$	6,750,000	 	 	 	6.75	%
	 
	 	 	 	 	 	 	 	 	 	 
	Deutsche Bank AG, 

New York Branch

	 	Deutsche Bank AG New York Branch

60 Wall Street, Floor 2

New York, NY 10005

Attention: Lidia B. Monticola

Fax: (646) 403-3314
	 	$	6,750,000	 	 	 	6.75	%
	 
	 	 	 	 	 	 	 	 	 	 
	Goldman Sachs Bank 

USA

	 	Goldman Sachs Bank USA

200 West Street

New York, NY 10282

Attention: Lauren Day

Fax: 917-977-3966
	 	$	6,750,000	 	 	 	6.75	%
	 
	 	 	 	 	 	 	 	 	 	 
	Morgan Stanley
Bank, N.A.

	 	Morgan Stanley Loan Servicing

1000 Lancaster Street

Baltimore, MD 21202

Fax: 718-233-2140
	 	$	6,750,000	 	 	 	6.75	%
	 
	 	 	 	 	 	 	 	 	 	 
	PNC Bank, National 

Association

	 	PNC Bank, National Association

249 Fifth Avenue

Pittsburgh, PA 15222

Attention: Katie M Mikula

Fax: 412-705-3232
	 	$	6,750,000	 	 	 	6.75	%
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Total amount
	 	$	100,000,000.00	 	 	 	100	%

 

 

SCHEDULE II

ENVIRONMENTAL MATTERS

     None.

 

 

SCHEDULE III

PENSION AND WELFARE MATTERS

     The International Transmission Company Postretirement Welfare Plan as described in Note 11 to
the ITC Holdings’ financial statements set forth in the ITC Holdings’ Form 10-K for the period
ending December 31, 2010.

 

 

SCHEDULE IV

OUTSTANDING LIENS ON CLOSING DATE

     None.

 

 

EXHIBIT A

Form of Notice of Borrowing

NOTICE OF BORROWING

			
	TO:	 	JPMorgan Chase Bank, N.A.

Loan Operations

10 South Dearborn, 7th Floor

Chicago, IL 60603

Attention: Teresita Siao

Facsimile No.: (888) 292-9533

     Pursuant to the Revolving Credit Agreement, dated as of May 17, 2011 (as the same may be
amended, modified, supplemented, restated or replaced from time to time, the “Revolving Credit
Agreement”; the terms defined therein and not otherwise defined herein being used herein as therein
defined), among Michigan Electric Transmission Company, LLC, a Michigan limited liability company
(the “Borrower”), the various financial institutions and other persons from time to time referred
to as “Lenders” in the Revolving Credit Agreement, and JPMorgan Chase Bank, N.A., as the
Administrative Agent, this represents the Borrower’s request to borrow as follows:

          Revolving Credit Loan:

	 	1.	 	Date of borrowing:
	 
	 	2.	 	Amount of borrowing:
	 
	 	3.	 	Lender(s): Lenders, in accordance with their Revolving Credit
Commitments under the Revolving Credit Agreement
	 
	 	4.	 	Interest rate option:

      Type:

      Tenor:

     Please wire transfer the proceeds of the Borrowing in accordance with the funds flow
memorandum delivered under separate cover.

     The undersigned officer, to the best of his or her knowledge, in his or her capacity as an
officer of the Borrower certifies that:

     (i) All representations and warranties made by the Borrower contained in the Revolving
Credit Agreement are true and correct in all material respects with the same effect as
though such representations and warranties had been made on and as of the date hereof
(except where such representations and warranties expressly relate to an earlier date, in
which case such representations and warranties are true and correct in all material

 

 

respects as of such earlier date) provided that, the representation made in Section
7.14 shall be made only on the Closing Date; and

     (ii) No event has occurred and is continuing or would result from the consummation of
the Borrowing contemplated hereby that would constitute a Default or an Event of Default.

Dated:

	 	 	 	 	 
	 	MICHIGAN ELECTRIC TRANSMISSION COMPANY, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT B

Form of Notice of Continuation

			
	TO:	 	JPMorgan Chase Bank, N.A., as Administrative

Agent under the Credit Agreement (as defined below)

Loan Operations

10 South Dearborn, 7th Floor

Chicago, IL 60603

Attention: Teresita Siao

Facsimile No.: (888) 292-9533

     Pursuant to the Revolving Credit Agreement, dated as of May 17, 2011 (as the same may be
amended, modified, supplemented, restated or replaced from time to time, the “Revolving Credit
Agreement”; the terms defined therein and not otherwise defined herein being used herein as therein
defined), among Michigan Electric Transmission Company, LLC, a Michigan limited liability company
(the “Borrower”), the various financial institutions and other persons from time to time referred
to as “Lenders” in the Revolving Credit Agreement (the “Lenders”), JPMorgan Chase Bank, N.A., as
the Administrative Agent, this represents the Borrower’s request to continue Revolving Credit Loans
as follows:

	 	1.	 	Date of continuation or conversion:
	 
	 	 	 	_________________, _____
	 
	 	2.	 	Amount of Revolving Credit Loans being continued or converted:
	 
	 	 	 	$_______________________
	 
	 	3.	 	Nature of continuation or conversion:
	 
	 	 	 	__________ a. Conversion of a LIBOR Loan as an ABR Loan
	 
	 	 	 	__________ b. Conversion of an ABR Loan as a LIBOR Loan
	 
	 	 	 	__________ c. Continuation (rollover) of LIBOR Loans as LIBOR Loans
	 
	 	4.	 	If Revolving Credit Loans are being continued as or converted into LIBOR Loans,
the duration of the new LIBOR Period that commences on the continuation or conversion
date:
	 
	 	 	 	__________ month(s)

Dated: ___________________

	 	 	 	 	 
	 	MICHIGAN ELECTRIC TRANSMISSION 
COMPANY, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT C

Form of Letter of Credit Request

			
	TO:	 	JPMorgan Chase Bank, N.A.

Loan Operations

10 South Dearborn, 9th Floor

Chicago, IL 60603

Attention: Robert Bussa
Relationship Executive Senior,

Corporate Client Banking Power and Utilities

Facsimile No.: (312) 732-1762

     Pursuant to the Revolving Credit Agreement, dated as of May 17, 2011 (as the same may be
amended, modified, supplemented, restated or replaced from time to time, the “Revolving Credit
Agreement”; the terms defined therein and not otherwise defined herein being used herein as therein
defined), among Michigan Electric Transmission Company, LLC, a Michigan limited liability company
(the “Borrower”), the various financial institutions and other persons from time to time referred
to as “Lenders” in the Revolving Credit Agreement (the “Lenders”), and JPMorgan Chase Bank, N.A.,
as the Administrative Agent, this represents the Borrower’s request to issue letter(s) of credit as
follows:

          Letter of Credit Request:

	 	1.	 	Date of issuance:
	 
	 	 	 	 

	 
	 	2.	 	Stated Amount of Letter of Credit:
	 
	 	 	 	 

	 
	 	3.	 	Beneficiary Name:
 

	 
	 	 	 	Address:
 

	 
	 	 	 	Telephone:
 

	 
	 	 	 	Facsimile:
 

	 
	 	 	 	Email: 

	 
	 	4. 	 	
Expiration Date: 

	 
	 	5.	 	Proposed Terms or Verbatim Text attached:
	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	 

     The undersigned officer, to the best of [his/her]
knowledge, in [his/her] capacity as an officer of the Borrower
certifies that:

 

 

(i.) All representations and warranties made by the Borrower contained in the Revolving
Credit Agreement are true and correct in all material respects with the same effect as
though such representations and warranties had been made on and as of the date hereof
(except where such representations and warranties expressly relate to an earlier date, in
which case such representations and warranties are true and correct in all material respects
as of such earlier date); and

(ii.) No event has occurred and is continuing or would result from the consummation of the
Borrowing contemplated hereby that would constitute a Default or an Event of Default.

Dated:

	 	 	 	 	 
	 	MICHIGAN ELECTRIC TRANSMISSION COMPANY, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

EXHIBIT D

Form of Closing Certificate

CLOSING CERTIFICATE

MICHIGAN ELECTRIC TRANSMISSION COMPANY, LLC

TO: The Lenders and the Administrative Agent (each, as defined below)

RE: Revolving Credit Agreement, dated as of May 17, 2011 (as the same may be amended, modified,
supplemented, restated or replaced from time to time, the “Revolving Credit Agreement”; the terms
defined therein and not otherwise defined herein being used herein as therein defined), among
Michigan Electric Transmission Company, LLC, a Michigan limited liability company (the “Borrower”),
the various financial institutions and other persons from time to time referred to as “Lenders” in
the Revolving Credit Agreement, and JPMorgan Chase Bank, N.A., as the Administrative Agent.

     I, the undersigned, an Authorized Officer of the Borrower, hereby certifies to the best of my
knowledge, information and belief, for and on behalf of the Borrower, and not in my personal
capacity, in connection with the initial Borrowing on this date under the Revolving Credit
Agreement, that:

	1.	 	the conditions precedent set forth in the Revolving Credit Agreement were satisfied as of the
Closing Date;

	2.	 	attached to this certificate as Schedule A is a true and complete copy of the
Articles of Organization of the Borrower as filed in the Office of the Secretary of State of
the State of Michigan, together with all amendments thereto adopted through the date hereof
and as in effect on the date hereof and the Borrower has not passed, confirmed or consented to
any amendments or variations to such Articles of Organization;

	3.	 	attached to this certificate as Schedule B is a correct and complete copy of the
Operating Agreement of the Borrower and such Operating Agreement are in full force and effect
on the date hereof and as of the date hereof the Borrower has not passed, confirmed or
consented to any amendments or variations to such Operating Agreement;

	4.	 	Attached hereto as Schedule C is a true and complete copy of the resolutions duly
adopted by the Board of Directors of the Borrower at a meeting of such Board of Directors held
on [_____] [__],
20[__], approving and authorizing the execution, delivery
and performance of the Revolving Credit Agreement and the transactions contemplated thereby.
Such resolutions have not been amended, modified, revoked or rescinded since the date of
adoption thereof, are in full force and effect on the date hereof and are the only resolutions
that have been adopted by the Board of Directors of the Borrower with respect to the subject
matter thereof;

	5.	 	The persons whose names appear on Schedule D attached hereto are duly elected,
qualified and acting officers of the Borrower occupying the offices set forth opposite

 

 

	 	 	their respective names on Schedule D, and the signature set forth opposite their
respective names are their true and genuine signatures, and each of such officers is duly
authorized to execute and deliver the Revolving Credit Agreement on behalf of the Borrower
and each of the related documents to which it is a party and any other agreement, instrument
or document to be delivered by the Borrower pursuant to the Credit Agreement.

* * * * *

 

 

     IN WITNESS WHEREOF, I have signed this Certificate this ___ day of May, 2011.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Name:  	Daniel J. Oginsky 	 
	 	Title:  	Senior Vice President and General
Counsel 	 
	 

     I, Cameron M. Bready, Executive Vice President, Treasurer and Chief Financial Officer of the
Borrower, DO HEREBY CERTIFY that Daniel J. Oginsky has been duly elected (or appointed) and has
duly qualified as, and on this day is, the Senior Vice President and General Counsel of the
Borrower, and the signature above is his genuine signature.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Name:  	Cameron M. Bready 	 
	 	Title:  	Executive Vice President, Treasurer
and 
Chief Financial Officer 	 
	 

 

 

Schedule A

Articles of Organization

[See Attached]

 

 

Schedule B

Operating Agreement

[See Attached]

 

 

Schedule C

Resolutions

[See Attached]

 

 

Schedule D

Incumbency

	 	 	 

	Daniel J. Oginsky
	 	 
	Senior Vice President and
	 	 
	General Counsel

	 	_________________________
	 
	 	 
	Cameron M. Bready
	 	 
	Executive Vice President, Treasurer
	 	 
	and Chief Financial Officer

	 	__________________________

 

 

EXHIBIT E

Form of Compliance Certificate

MICHIGAN ELECTRIC TRANSMISSION COMPANY, LLC

TO: The Lenders and the Administrative Agent

The undersigned, an Authorized Officer of Michigan Electric Transmission Company, LLC (the
“Borrower”), in such capacity and not personally, hereby certifies to the best of my knowledge,
information and belief that:

	1.	 	I am the duly appointed ___________________________ of the Borrower named in the Revolving
Credit Agreement, dated as of May 17, 2011 (as the same may be amended, modified,
supplemented, restated or replaced from time to time, the “Revolving Credit Agreement”), among
Michigan Electric Transmission Company, LLC, a Michigan limited liability company (the
“Borrower”), the various financial institutions and other persons from time to time referred
to as “Lenders” in the Revolving Credit Agreement, and JPMorgan Chase Bank, N.A., as the
Administrative Agent and as such I am providing this certificate for and on behalf of the
Borrower pursuant to Section 8.1(c) of the Revolving Credit Agreement. Unless the context
otherwise requires, capitalized terms in the Revolving Credit Agreement which appear herein
without definitions shall have the meanings ascribed thereto in the Revolving Credit
Agreement.

	2.	 	I am familiar with and have examined the provisions of the Revolving Credit Agreement
including those of Articles 7, 8, 9 and 10 therein and have reviewed and am familiar with the
contents of this certificate.

	3.	 	Delivered herewith are the financial statements required to be delivered pursuant to Section
8.1[(a)] [(b)] of the
Revolving Credit Agreement.

	4.	 	No Default or Event of Default has occurred and is continuing as of the date hereof
[or if any Default or Event of Default does exist, specify the nature and
extent thereof].

	5.	 	As of the last day of the fiscal quarter ending ________, the financial ratio referred to in
Section 9.4 of the Revolving Credit Agreement is ____:____ and was calculated as set forth in
Schedule I.

Dated this day of _________, ____.

 

[Name and Title]

 

 

Schedule I

MICHIGAN ELECTRIC TRANSMISSION COMPANY, LLC

Debt to Capitalization Ratio1

	 	 	 	 	 
	1. Total Debt as of the last day of the fiscal quarter ending ________.
	 	$	______	 
	2. Total Capitalization as of the last day of the fiscal quarter
ending ________.
	 	 	 	 
	(a) Total Debt
	 	$	______	 
	(b) Total stockholder’s equity of the Borrower
	 	$	______	 
	(c) Total Capitalization: The sum of Items 2(a) and 2(b)
	 	$	______	 
	3. DEBT TO CAPITALIZATION RATIO: the ratio of Item 1 to Item 2
	 	 	______	%
	4. Maximum Debt to Capitalization Ratio allowed
	 	 	65	%
	5. In compliance
	 	YES/NO	 

 

			
	1	 	Financial covenants shall be calculated (i)
without giving effect to any election by the Borrower or any of its
subsidiaries to value any of its indebtedness or liabilities at “fair
value” pursuant to Accounting Standards
Codification 825-10-25 (formerly referred to as Statement of Financial
Accounting Standards 159) or any other
accounting standards codification or financial accounting standard having
a similar result or effect and (ii) without
giving effect to any treatment of indebtedness in respect of convertible
debt instruments under Accounting Standards
Codification 470-20 to value any such indebtedness in a reduced or
bifurcated manner as described therein, and such
indebtedness shall at all times be valued at the full stated principal
amount thereof.exv4w1

Exhibit 4.1

WARRANT TO PURCHASE COMMON STOCK

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE
DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND
APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR
SUCH LAWS.

WARRANT

to purchase

95,383

Shares of Common Stock

of M&T BANK CORPORATION

Issue Date: May 16, 2011

     1. Definitions. Unless the context otherwise requires, when used herein the following
terms shall have the meanings indicated.

     “Affiliate” has the meaning ascribed to it in the Purchase Agreement.

     “Appraisal Procedure” means a procedure whereby two independent appraisers, one chosen by the
Company and one by the Original Warrantholder, shall mutually agree upon the determinations then
the subject of appraisal. Each party shall deliver a notice to the other appointing its appraiser
within 15 days after the Appraisal Procedure is invoked. If within 30 days after appointment of
the two appraisers they are unable to agree upon the amount in question, a third independent
appraiser shall be chosen within 10 days thereafter by the mutual consent of such first two
appraisers. The decision of the third appraiser so appointed and chosen shall be given within 30
days after the selection of such third appraiser. If three appraisers shall be appointed and the
determination of one appraiser is disparate from the middle determination by more than twice the
amount by which the other determination is disparate from the middle determination, then the
determination of such appraiser shall be excluded, the remaining two determinations shall be
averaged and such average shall be binding and conclusive upon the Company and the Original
Warrantholder; otherwise, the average of all three determinations shall be binding upon the Company
and the Original Warrantholder. The costs of conducting any Appraisal Procedure shall be borne by
the Company.

     “Board of Directors” means the board of directors of the Company, including any duly
authorized committee thereof.

 

 

     “Business Combination” means a merger, consolidation, statutory share exchange or similar
transaction that requires the approval of the Company’s stockholders.

     “business day” means any day except Saturday, Sunday and any day on which banking institutions
in the State of New York generally are authorized or required by law or other governmental actions
to close.

     “Capital Stock” means (A) with respect to any Person that is a corporation or company, any and
all shares, interests, participations or other equivalents (however designated) of capital or
capital stock of such Person and (B) with respect to any Person that is not a corporation or
company, any and all partnership or other equity interests of such Person.

     “Charter” means, with respect to any Person, its certificate or articles of incorporation,
articles of association, or similar organizational document.

     “Common Stock” has the meaning ascribed to it in the Purchase Agreement.

     “Company” means the Person whose name, corporate or other organizational form and jurisdiction
of organization is set forth in Item 1 of Schedule A hereto.

     “conversion” has the meaning set forth in Section 13(B).

     “convertible securities” has the meaning set forth in Section 13(B).

     “CPP” has the meaning ascribed to it in the Purchase Agreement.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor
statute, and the rules and regulations promulgated thereunder.

     “Exercise Price” means the amount set forth in Item 2 of Schedule A hereto.

     “Expiration Time” has the meaning set forth in Section 3.

     “Fair Market Value” means, with respect to any security or other property, the fair market
value of such security or other property as determined by the Board of Directors, acting in good
faith or, with respect to Section 14, as determined by the Original Warrantholder acting in good
faith. For so long as the Original Warrantholder holds this Warrant or any portion thereof, it may
object in writing to the Board of Director’s calculation of fair market value within 10 days of
receipt of written notice thereof. If the Original Warrantholder and the Company are unable to
agree on fair market value during the 10-day period following the delivery of the Original
Warrantholder’s objection, the Appraisal Procedure may be invoked by either party to determine Fair
Market Value by delivering written notification thereof not later than the 30th day
after delivery of the Original Warrantholder’s objection.

     “Governmental Entities” has the meaning ascribed to it in the Purchase Agreement.

     “Initial Number” has the meaning set forth in Section 13(B).

2

 

     “Issue Date” means the date set forth in Item 3 of Schedule A hereto.

     “Market Price” means, with respect to a particular security, on any given day, the last
reported sale price regular way or, in case no such reported sale takes place on such day, the
average of the last closing bid and ask prices regular way, in either case on the principal
national securities exchange on which the applicable securities are listed or admitted to trading,
or if not listed or admitted to trading on any national securities exchange, the average of the
closing bid and ask prices as furnished by two members of the Financial Industry Regulatory
Authority, Inc. selected from time to time by the Company for that purpose. “Market Price” shall
be determined without reference to after hours or extended hours trading. If such security is not
listed and traded in a manner that the quotations referred to above are available for the period
required hereunder, the Market Price per share of Common Stock shall be deemed to be (i) in the
event that any portion of the Warrant is held by the Original Warrantholder, the fair market value
per share of such security as determined in good faith by the Original Warrantholder or (ii) in all
other circumstances, the fair market value per share of such security as determined in good faith
by the Board of Directors in reliance on an opinion of a nationally recognized independent
investment banking corporation retained by the Company for this purpose and certified in a
resolution to the Warrantholder. For the purposes of determining the Market Price of the Common
Stock on the “trading day” preceding, on or following the occurrence of an event, (i) that trading
day shall be deemed to commence immediately after the regular scheduled closing time of trading on
the New York Stock Exchange or, if trading is closed at an earlier time, such earlier time and (ii)
that trading day shall end at the next regular scheduled closing time, or if trading is closed at
an earlier time, such earlier time (for the avoidance of doubt, and as an example, if the Market
Price is to be determined as of the last trading day preceding a specified event and the closing
time of trading on a particular day is 4:00 p.m. and the specified event occurs at 5:00 p.m. on
that day, the Market Price would be determined by reference to such 4:00 p.m. closing price).

     “Ordinary Cash Dividends” means a regular quarterly cash dividend on shares of Common Stock
out of surplus or net profits legally available therefor (determined in accordance with generally
accepted accounting principles in effect from time to time), provided that Ordinary Cash Dividends
shall not include any cash dividends paid subsequent to the Issue Date to the extent the aggregate
per share dividends paid on the outstanding Common Stock in any quarter exceed the amount set forth
in Item 4 of Schedule A hereto, as adjusted for any stock split, stock dividend, reverse stock
split, reclassification or similar transaction.

     “Original Warrantholder” means the United States Department of the Treasury. Any actions
specified to be taken by the Original Warrantholder hereunder may only be taken by such Person and
not by any other Warrantholder.

     “Permitted Transactions” has the meaning set forth in Section 13(B).

     “Person” has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act.

     “Per Share Fair Market Value” has the meaning set forth in Section 13(C).

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     “Preferred Shares” means the perpetual preferred stock issued to the Original Warrantholder on
the Issue Date pursuant to the Purchase Agreement.

     “Pro Rata Repurchases” means any purchase of shares of Common Stock by the Company or any
Affiliate thereof pursuant to (A) any tender offer or exchange offer subject to Section 13(e) or
14(e) of the Exchange Act or Regulation 14E promulgated thereunder or (B) any other offer available
to substantially all holders of Common Stock, in the case of both (A) or (B), whether for cash,
shares of Capital Stock of the Company, other securities of the Company, evidences of indebtedness
of the Company or any other Person or any other property (including, without limitation, shares of
Capital Stock, other securities or evidences of indebtedness of a subsidiary), or any combination
thereof, effected while this Warrant is outstanding. The “Effective Date” of a Pro Rata Repurchase
shall mean the date of acceptance of shares for purchase or exchange by the Company under any
tender or exchange offer which is a Pro Rata Repurchase or the date of purchase with respect to any
Pro Rata Repurchase that is not a tender or exchange offer.

     “Purchase Agreement” means the Securities Purchase Agreement — Standard Terms incorporated
into the Letter Agreement, dated as of the date set forth in Item 5 of Schedule A hereto, as
amended from time to time, between the Company and the United States Department of the Treasury
(the “Letter Agreement”), including all annexes and schedules thereto.

     “Qualified Equity Offering” has the meaning ascribed to it in the Purchase Agreement.

     “Regulatory Approvals” with respect to the Warrantholder, means, to the extent applicable and
required to permit the Warrantholder to exercise this Warrant for shares of Common Stock and to own
such Common Stock without the Warrantholder being in violation of applicable law, rule or
regulation, the receipt of any necessary approvals and authorizations of, filings and registrations
with, notifications to, or expiration or termination of any applicable waiting period under, the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations
thereunder.

     “SEC” means the U.S. Securities and Exchange Commission.

     “Securities Act” means the Securities Act of 1933, as amended, or any successor statute, and
the rules and regulations promulgated thereunder.

     “Shares” has the meaning set forth in Section 2.

     “trading day” means (A) if the shares of Common Stock are not traded on any national or
regional securities exchange or association or over-the-counter market, a business day or (B) if
the shares of Common Stock are traded on any national or regional securities exchange or
association or over-the-counter market, a business day on which such relevant exchange or quotation
system is scheduled to be open for business and on which the shares of Common Stock (i) are not
suspended from trading on any national or regional securities exchange or association or
over-the-counter market for any period or periods aggregating one half hour or longer; and (ii)
have traded at least once on the national or regional securities exchange or

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association or over-the-counter market that is the primary market for the trading of the shares of
Common Stock.

     “U.S. GAAP” means United States generally accepted accounting principles.

     “Warrantholder” has the meaning set forth in Section 2.

     “Warrant” means this Warrant, issued pursuant to the Purchase Agreement and the Securities
Purchase Agreement dated as of May 13, 2011, by and between the Company and the United States
Department of the Treasury.

     2. Number of Shares; Exercise Price. This certifies that, for value received, the
United States Department of the Treasury or its permitted assigns (the “Warrantholder”) is
entitled, upon the terms and subject to the conditions hereinafter set forth, to acquire from the
Company, in whole or in part, after the receipt of all applicable Regulatory Approvals, if any, up
to an aggregate of the number of fully paid and nonassessable shares of Common Stock set forth in
Item 6 of Schedule A hereto, at a purchase price per share of Common Stock equal to the Exercise
Price. The number of shares of Common Stock (the “Shares”) and the Exercise Price are subject to
adjustment as provided herein, and all references to “Common Stock,” “Shares” and “Exercise Price”
herein shall be deemed to include any such adjustment or series of adjustments.

     3. Exercise of Warrant; Term. Subject to Section 2, to the extent permitted by
applicable laws and regulations, the right to purchase the Shares represented by this Warrant is
exercisable, in whole or in part by the Warrantholder, at any time or from time to time after the
execution and delivery of this Warrant by the Company on the date hereof, but in no event later
than 5:00 p.m., New York City time on the tenth anniversary of the Issue Date (the “Expiration
Time”), by (A) the surrender of this Warrant and Notice of Exercise annexed hereto, duly completed
and executed on behalf of the Warrantholder, at the principal executive office of the Company
located at the address set forth in Item 7 of Schedule A hereto (or such other office or agency of
the Company in the United States as it may designate by notice in writing to the Warrantholder at
the address of the Warrantholder appearing on the books of the Company), and (B) payment of the
Exercise Price for the Shares thereby purchased:

          (i) by having the Company withhold, from the shares of Common Stock that would otherwise be
delivered to the Warrantholder upon such exercise, shares of Common stock issuable upon exercise of
the Warrant equal in value to the aggregate Exercise Price as to which this Warrant is so exercised
based on the Market Price of the Common Stock on the trading day on which this Warrant is exercised
and the Notice of Exercise is delivered to the Company pursuant to this Section 3, or

          (ii) with the consent of both the Company and the Warrantholder, by tendering in cash, by
certified or cashier’s check payable to the order of the Company, or by wire transfer of
immediately available funds to an account designated by the Company.

          If the Warrantholder does not exercise this Warrant in its entirety, the Warrantholder will be
entitled to receive from the Company within a reasonable time, and in any event not exceeding three
business days, a new warrant in substantially identical form for the

5

 

purchase of that number of Shares equal to the difference between the number of Shares subject
to this Warrant and the number of Shares as to which this Warrant is so exercised. Notwithstanding
anything in this Warrant to the contrary, the Warrantholder hereby acknowledges and agrees that its
exercise of this Warrant for Shares is subject to the condition that the Warrantholder will have
first received any applicable Regulatory Approvals.

     4. Issuance of Shares; Authorization; Listing. Certificates for Shares issued upon
exercise of this Warrant will be issued in such name or names as the Warrantholder may designate
and will be delivered to such named Person or Persons within a reasonable time, not to exceed three
business days after the date on which this Warrant has been duly exercised in accordance with the
terms of this Warrant. The Company hereby represents and warrants that any Shares issued upon the
exercise of this Warrant in accordance with the provisions of Section 3 will be duly and validly
authorized and issued, fully paid and nonassessable and free from all taxes, liens and charges
(other than liens or charges created by the Warrantholder, income and franchise taxes incurred in
connection with the exercise of the Warrant or taxes in respect of any transfer occurring
contemporaneously therewith). The Company agrees that the Shares so issued will be deemed to have
been issued to the Warrantholder as of the close of business on the date on which this Warrant and
payment of the Exercise Price are delivered to the Company in accordance with the terms of this
Warrant, notwithstanding that the stock transfer books of the Company may then be closed or
certificates representing such Shares may not be actually delivered on such date. The Company will
at all times reserve and keep available, out of its authorized but unissued Common Stock, solely
for the purpose of providing for the exercise of this Warrant, the aggregate number of shares of
Common Stock then issuable upon exercise of this Warrant at any time. The Company will (A)
procure, at its sole expense, the listing of the Shares issuable upon exercise of this Warrant at
any time, subject to issuance or notice of issuance, on all principal stock exchanges on which the
Common Stock is then listed or traded and (B) maintain such listings of such Shares at all times
after issuance. The Company will use reasonable best efforts to ensure that the Shares may be
issued without violation of any applicable law or regulation or of any requirement of any
securities exchange on which the Shares are listed or traded.

     5. No Fractional Shares or Scrip. No fractional Shares or scrip representing
fractional Shares shall be issued upon any exercise of this Warrant. In lieu of any fractional
Share to which the Warrantholder would otherwise be entitled, the Warrantholder shall be entitled
to receive a cash payment equal to the Market Price of the Common Stock on the last trading day
preceding the date of exercise less the pro-rated Exercise Price for such fractional share.

     6. No Rights as Stockholders; Transfer Books. This Warrant does not entitle the
Warrantholder to any voting rights or other rights as a stockholder of the Company prior to the
date of exercise hereof. The Company will at no time close its transfer books against transfer of
this Warrant in any manner which interferes with the timely exercise of this Warrant.

     7. Charges, Taxes and Expenses. Issuance of certificates for Shares to the
Warrantholder upon the exercise of this Warrant shall be made without charge to the Warrantholder
for any issue or transfer tax or other incidental expense in respect of the issuance of such
certificates, all of which taxes and expenses shall be paid by the Company.

6

 

     8. Transfer/Assignment.

     (A) Subject to compliance with clause (B) of this Section 8, this Warrant and all rights
hereunder are transferable, in whole or in part, upon the books of the Company by the registered
holder hereof in person or by duly authorized attorney, and a new warrant shall be made and
delivered by the Company, of the same tenor and date as this Warrant but registered in the name of
one or more transferees, upon surrender of this Warrant, duly endorsed, to the office or agency of
the Company described in Section 3. All expenses (other than stock transfer taxes) and other
charges payable in connection with the preparation, execution and delivery of the new warrants
pursuant to this Section 8 shall be paid by the Company.

     (B) The transfer of the Warrant and the Shares issued upon exercise of the Warrant are subject
to the restrictions set forth in Section 4.4 of the Purchase Agreement. If and for so long as
required by the Purchase Agreement, this Warrant shall contain the legends as set forth in Sections
4.2(a) of the Purchase Agreement.

     9. Exchange and Registry of Warrant. This Warrant is exchangeable, upon the surrender
hereof by the Warrantholder to the Company, for a new warrant or warrants of like tenor and
representing the right to purchase the same aggregate number of Shares. The Company shall maintain
a registry showing the name and address of the Warrantholder as the registered holder of this
Warrant. This Warrant may be surrendered for exchange or exercise in accordance with its terms, at
the office of the Company, and the Company shall be entitled to rely in all respects, prior to
written notice to the contrary, upon such registry.

     10. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the Company of
evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this
Warrant, and in the case of any such loss, theft or destruction, upon receipt of a bond, indemnity
or security reasonably satisfactory to the Company, or, in the case of any such mutilation, upon
surrender and cancellation of this Warrant, the Company shall make and deliver, in lieu of such
lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the
right to purchase the same aggregate number of Shares as provided for in such lost, stolen,
destroyed or mutilated Warrant.

     11. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not be a business day,
then such action may be taken or such right may be exercised on the next succeeding day that is a
business day.

     12. Rule 144 Information. The Company covenants that it will use its reasonable best
efforts to timely file all reports and other documents required to be filed by it under the
Securities Act and the Exchange Act and the rules and regulations promulgated by the SEC thereunder
(or, if the Company is not required to file such reports, it will, upon the request of any
Warrantholder, make publicly available such information as necessary to permit sales pursuant to
Rule 144 under the Securities Act), and it will use reasonable best efforts to take such further
action as any Warrantholder may reasonably request, in each case to the extent required from time
to time to enable such holder to, if permitted by the terms of this Warrant and the Purchase
Agreement, sell this Warrant without registration under the Securities Act within the limitation

7

 

of the exemptions provided by (A) Rule 144 under the Securities Act, as such rule may be
amended from time to time, or (B) any successor rule or regulation hereafter adopted by the SEC.
Upon the written request of any Warrantholder, the Company will deliver to such Warrantholder a
written statement that it has complied with such requirements.

     13. Adjustments and Other Rights. The Exercise Price and the number of Shares
issuable upon exercise of this Warrant shall be subject to adjustment from time to time as follows;
provided, that if more than one subsection of this Section 13 is applicable to a single event, the
subsection shall be applied that produces the largest adjustment and no single event shall cause an
adjustment under more than one subsection of this Section 13 so as to result in duplication:

     (A) Stock Splits, Subdivisions, Reclassifications or Combinations. If the Company
shall (i) declare and pay a dividend or make a distribution on its Common Stock in shares of Common
Stock, (ii) subdivide or reclassify the outstanding shares of Common Stock into a greater number of
shares, or (iii) combine or reclassify the outstanding shares of Common Stock into a smaller number
of shares, the number of Shares issuable upon exercise of this Warrant at the time of the record
date for such dividend or distribution or the effective date of such subdivision, combination or
reclassification shall be proportionately adjusted so that the Warrantholder after such date shall
be entitled to purchase the number of shares of Common Stock which such holder would have owned or
been entitled to receive in respect of the shares of Common Stock subject to this Warrant after
such date had this Warrant been exercised immediately prior to such date. In such event, the
Exercise Price in effect at the time of the record date for such dividend or distribution or the
effective date of such subdivision, combination or reclassification shall be adjusted to the number
obtained by dividing (x) the product of (1) the number of Shares issuable upon the exercise of this
Warrant before such adjustment and (2) the Exercise Price in effect immediately prior to the record
or effective date, as the case may be, for the dividend, distribution, subdivision, combination or
reclassification giving rise to this adjustment by (y) the new number of Shares issuable upon
exercise of the Warrant determined pursuant to the immediately preceding sentence.

     (B) Certain Issuances of Common Shares or Convertible Securities. Until the earlier
of (i) the date on which the Original Warrantholder no longer holds this Warrant or any portion
thereof and (ii) the third anniversary of the Issue Date, if the Company shall issue shares of
Common Stock (or rights or warrants or other securities exercisable or convertible into or
exchangeable (collectively, a “conversion”) for shares of Common Stock) (collectively, “convertible
securities”) (other than in Permitted Transactions (as defined below) or a transaction to which
subsection (A) of this Section 13 is applicable) without consideration or at a consideration per
share (or having a conversion price per share) that is less than 90% of the Market Price on the
last trading day preceding the date of the agreement on pricing such shares (or such convertible
securities) then, in such event:

(A) the number of Shares issuable upon the exercise of this Warrant immediately
prior to the date of the agreement on pricing of such shares (or of such convertible
securities) (the “Initial Number”) shall be increased to the number obtained by
multiplying the Initial Number by a fraction (A) the numerator of which shall be the
sum of (x) the number of shares of Common Stock of the Company

8

 

outstanding on such date and (y) the number of additional shares of Common Stock
issued (or into which convertible securities may be exercised or convert) and (B)
the denominator of which shall be the sum of (I) the number of shares of Common
Stock outstanding on such date and (II) the number of shares of Common Stock which
the aggregate consideration receivable by the Company for the total number of shares
of Common Stock so issued (or into which convertible securities may be exercised or
convert) would purchase at the Market Price on the last trading day preceding the
date of the agreement on pricing such shares (or such convertible securities); and

(B) the Exercise Price payable upon exercise of the Warrant shall be adjusted by
multiplying such Exercise Price in effect immediately prior to the date of the
agreement on pricing of such shares (or of such convertible securities) by a
fraction, the numerator of which shall be the number of shares of Common Stock
issuable upon exercise of this Warrant prior to such date and the denominator of
which shall be the number of shares of Common Stock issuable upon exercise of this
Warrant immediately after the adjustment described in clause (A) above.

     For purposes of the foregoing, the aggregate consideration receivable by the Company in
connection with the issuance of such shares of Common Stock or convertible securities shall be
deemed to be equal to the sum of the net offering price (including the Fair Market Value of any
non-cash consideration and after deduction of any related expenses payable to third parties) of all
such securities plus the minimum aggregate amount, if any, payable upon exercise or conversion of
any such convertible securities into shares of Common Stock; and “Permitted Transactions” shall
mean issuances (i) as consideration for or to fund the acquisition of businesses and/or related
assets, (ii) in connection with employee benefit plans and compensation related arrangements in the
ordinary course and consistent with past practice approved by the Board of Directors, (iii) in
connection with a public or broadly marketed offering and sale of Common Stock or convertible
securities for cash conducted by the Company or its affiliates pursuant to registration under the
Securities Act or Rule 144A thereunder on a basis consistent with capital raising transactions by
comparable financial institutions and (iv) in connection with the exercise of preemptive rights on
terms existing as of the Issue Date. Any adjustment made pursuant to this Section 13(B) shall
become effective immediately upon the date of such issuance.

     (C) Other Distributions. In case the Company shall fix a record date for the making
of a distribution to all holders of shares of its Common Stock of securities, evidences of
indebtedness, assets, cash, rights or warrants (excluding Ordinary Cash Dividends, dividends of its
Common Stock and other dividends or distributions referred to in Section 13(A)), in each such case,
the Exercise Price in effect prior to such record date shall be reduced immediately thereafter to
the price determined by multiplying the Exercise Price in effect immediately prior to the reduction
by the quotient of (x) the Market Price of the Common Stock on the last trading day preceding the
first date on which the Common Stock trades regular way on the principal national securities
exchange on which the Common Stock is listed or admitted to trading without the right to receive
such distribution, minus the amount of cash and/or the Fair Market Value of the securities,
evidences of indebtedness, assets, rights or warrants to be so distributed in respect of one share
of Common Stock (such amount and/or Fair Market Value, the “Per Share Fair Market Value”) divided
by (y) such Market Price on such date specified in clause (x); such

9

 

adjustment shall be made successively whenever such a record date is fixed. In such event,
the number of Shares issuable upon the exercise of this Warrant shall be increased to the number
obtained by dividing (x) the product of (1) the number of Shares issuable upon the exercise of this
Warrant before such adjustment, and (2) the Exercise Price in effect immediately prior to the
distribution giving rise to this adjustment by (y) the new Exercise Price determined in accordance
with the immediately preceding sentence. In the case of adjustment for a cash dividend that is, or
is coincident with, a regular quarterly cash dividend, the Per Share Fair Market Value would be
reduced by the per share amount of the portion of the cash dividend that would constitute an
Ordinary Cash Dividend. In the event that such distribution is not so made, the Exercise Price and
the number of Shares issuable upon exercise of this Warrant then in effect shall be readjusted,
effective as of the date when the Board of Directors determines not to distribute such shares,
evidences of indebtedness, assets, rights, cash or warrants, as the case may be, to the Exercise
Price that would then be in effect and the number of Shares that would then be issuable upon
exercise of this Warrant if such record date had not been fixed.

     (D) Certain Repurchases of Common Stock. In case the Company effects a Pro Rata
Repurchase of Common Stock, then the Exercise Price shall be reduced to the price determined by
multiplying the Exercise Price in effect immediately prior to the Effective Date of such Pro Rata
Repurchase by a fraction of which the numerator shall be (i) the product of (x) the number of
shares of Common Stock outstanding immediately before such Pro Rata Repurchase and (y) the Market
Price of a share of Common Stock on the trading day immediately preceding the first public
announcement by the Company or any of its Affiliates of the intent to effect such Pro Rata
Repurchase, minus (ii) the aggregate purchase price of the Pro Rata Repurchase, and of which the
denominator shall be the product of (i) the number of shares of Common Stock outstanding
immediately prior to such Pro Rata Repurchase minus the number of shares of Common Stock so
repurchased and (ii) the Market Price per share of Common Stock on the trading day immediately
preceding the first public announcement by the Company or any of its Affiliates of the intent to
effect such Pro Rata Repurchase. In such event, the number of shares of Common Stock issuable upon
the exercise of this Warrant shall be increased to the number obtained by dividing (x) the product
of (1) the number of Shares issuable upon the exercise of this Warrant before such adjustment, and
(2) the Exercise Price in effect immediately prior to the Pro Rata Repurchase giving rise to this
adjustment by (y) the new Exercise Price determined in accordance with the immediately preceding
sentence. For the avoidance of doubt, no increase to the Exercise Price or decrease in the number
of Shares issuable upon exercise of this Warrant shall be made pursuant to this Section 13(D).

     (E) Business Combinations. In case of any Business Combination or reclassification of
Common Stock (other than a reclassification of Common Stock referred to in Section 13(A)), the
Warrantholder’s right to receive Shares upon exercise of this Warrant shall be converted into the
right to exercise this Warrant to acquire the number of shares of stock or other securities or
property (including cash) which the Common Stock issuable (at the time of such Business Combination
or reclassification) upon exercise of this Warrant immediately prior to such Business Combination
or reclassification would have been entitled to receive upon consummation of such Business
Combination or reclassification; and in any such case, if necessary, the provisions set forth
herein with respect to the rights and interests thereafter of the Warrantholder shall be
appropriately adjusted so as to be applicable, as nearly as may reasonably

10

 

be, to the Warrantholder’s right to exercise this Warrant in exchange for any shares of stock
or other securities or property pursuant to this paragraph. In determining the kind and amount of
stock, securities or the property receivable upon exercise of this Warrant following the
consummation of such Business Combination, if the holders of Common Stock have the right to elect
the kind or amount of consideration receivable upon consummation of such Business Combination, then
the consideration that the Warrantholder shall be entitled to receive upon exercise shall be deemed
to be the types and amounts of consideration received by the majority of all holders of the shares
of common stock that affirmatively make an election (or of all such holders if none make an
election).

     (F) Rounding of Calculations; Minimum Adjustments. All calculations under this
Section 13 shall be made to the nearest one-tenth (1/10th) of a cent or to the nearest
one-hundredth (1/100th) of a share, as the case may be. Any provision of this Section 13 to the
contrary notwithstanding, no adjustment in the Exercise Price or the number of Shares into which
this Warrant is exercisable shall be made if the amount of such adjustment would be less than $0.01
or one-tenth (1/10th) of a share of Common Stock, but any such amount shall be carried forward and
an adjustment with respect thereto shall be made at the time of and together with any subsequent
adjustment which, together with such amount and any other amount or amounts so carried forward,
shall aggregate $0.01 or 1/10th of a share of Common Stock, or more.

     (G) Timing of Issuance of Additional Common Stock Upon Certain Adjustments. In any
case in which the provisions of this Section 13 shall require that an adjustment shall become
effective immediately after a record date for an event, the Company may defer until the occurrence
of such event (i) issuing to the Warrantholder of this Warrant exercised after such record date and
before the occurrence of such event the additional shares of Common Stock issuable upon such
exercise by reason of the adjustment required by such event over and above the shares of Common
Stock issuable upon such exercise before giving effect to such adjustment and (ii) paying to such
Warrantholder any amount of cash in lieu of a fractional share of Common Stock; provided, however,
that the Company upon request shall deliver to such Warrantholder a due bill or other appropriate
instrument evidencing such Warrantholder’s right to receive such additional shares, and such cash,
upon the occurrence of the event requiring such adjustment.

     (H) Completion of Qualified Equity Offering. In the event the Company (or any
successor by Business Combination) completes one or more Qualified Equity Offerings on or prior to
December 31, 2009 that result in the Company (or any such successor ) receiving aggregate gross
proceeds of not less than 100% of the aggregate liquidation preference of the Preferred Shares (and
any preferred stock issued by any such successor to the Original Warrantholder under the CPP), the
number of shares of Common Stock underlying the portion of this Warrant then held by the Original
Warrantholder shall be thereafter reduced by a number of shares of Common Stock equal to the
product of (i) 0.5 and (ii) the number of shares underlying the Warrant on the Issue Date (adjusted
to take into account all other theretofore made adjustments pursuant to this Section 13).

     (I) Other Events. For so long as the Original Warrantholder holds this Warrant or any
portion thereof, if any event occurs as to which the provisions of this Section 13 are not

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strictly applicable or, if strictly applicable, would not, in the good faith judgment of the
Board of Directors of the Company, fairly and adequately protect the purchase rights of the
Warrants in accordance with the essential intent and principles of such provisions, then the Board
of Directors shall make such adjustments in the application of such provisions, in accordance with
such essential intent and principles, as shall be reasonably necessary, in the good faith opinion
of the Board of Directors, to protect such purchase rights as aforesaid. The Exercise Price or the
number of Shares into which this Warrant is exercisable shall not be adjusted in the event of a
change in the par value of the Common Stock or a change in the jurisdiction of incorporation of the
Company.

     (J) Statement Regarding Adjustments. Whenever the Exercise Price or the number of
Shares into which this Warrant is exercisable shall be adjusted as provided in Section 13, the
Company shall forthwith file at the principal office of the Company a statement showing in
reasonable detail the facts requiring such adjustment and the Exercise Price that shall be in
effect and the number of Shares into which this Warrant shall be exercisable after such adjustment,
and the Company shall also cause a copy of such statement to be sent by mail, first class postage
prepaid, to each Warrantholder at the address appearing in the Company’s records.

     (K) Notice of Adjustment Event. In the event that the Company shall propose to take
any action of the type described in this Section 13 (but only if the action of the type described
in this Section 13 would result in an adjustment in the Exercise Price or the number of Shares into
which this Warrant is exercisable or a change in the type of securities or property to be delivered
upon exercise of this Warrant), the Company shall give notice to the Warrantholder, in the manner
set forth in Section 13(J), which notice shall specify the record date, if any, with respect to any
such action and the approximate date on which such action is to take place. Such notice shall also
set forth the facts with respect thereto as shall be reasonably necessary to indicate the effect on
the Exercise Price and the number, kind or class of shares or other securities or property which
shall be deliverable upon exercise of this Warrant. In the case of any action which would require
the fixing of a record date, such notice shall be given at least 10 days prior to the date so
fixed, and in case of all other action, such notice shall be given at least 15 days prior to the
taking of such proposed action. Failure to give such notice, or any defect therein, shall not
affect the legality or validity of any such action.

     (L) Proceedings Prior to Any Action Requiring Adjustment. As a condition precedent to
the taking of any action which would require an adjustment pursuant to this Section 13, the Company
shall take any action which may be necessary, including obtaining regulatory, New York Stock
Exchange, NASDAQ Stock Market or other applicable national securities exchange or stockholder
approvals or exemptions, in order that the Company may thereafter validly and legally issue as
fully paid and nonassessable all shares of Common Stock that the Warrantholder is entitled to
receive upon exercise of this Warrant pursuant to this Section 13.

     (M) Adjustment Rules. Any adjustments pursuant to this Section 13 shall be made
successively whenever an event referred to herein shall occur. If an adjustment in Exercise Price
made hereunder would reduce the Exercise Price to an amount below par value of the Common Stock,
then such adjustment in Exercise Price made hereunder shall reduce the Exercise Price to the par
value of the Common Stock.

12

 

     14. Exchange. At any time following the date on which the shares of Common Stock of
the Company are no longer listed or admitted to trading on a national securities exchange (other
than in connection with any Business Combination), the Original Warrantholder may cause the Company
to exchange all or a portion of this Warrant for an economic interest (to be determined by the
Original Warrantholder after consultation with the Company) of the Company classified as permanent
equity under U.S. GAAP having a value equal to the Fair Market Value of the portion of the Warrant
so exchanged. The Original Warrantholder shall calculate any Fair Market Value required to be
calculated pursuant to this Section 14, which shall not be subject to the Appraisal Procedure.

     15. No Impairment. The Company will not, by amendment of its Charter or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities
or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms to be observed or performed hereunder by the Company, but will at all times in good faith
assist in the carrying out of all the provisions of this Warrant and in taking of all such action
as may be necessary or appropriate in order to protect the rights of the Warrantholder.

     16. Governing Law. This Warrant will be governed by and construed in accordance with
the federal law of the United States if and to the extent such law is applicable, and otherwise in
accordance with the laws of the State of New York applicable to contracts made and to be performed
entirely within such State. Each of the Company and the Warrantholder agrees (a) to submit to the
exclusive jurisdiction and venue of the United States District Court for the District of Columbia
for any civil action, suit or proceeding arising out of or relating to this Warrant or the
transactions contemplated hereby, and (b) that notice may be served upon the Company at the address
in Section 20 below and upon the Warrantholder at the address for the Warrantholder set forth in
the registry maintained by the Company pursuant to Section 9 hereof. To the extent permitted by
applicable law, each of the Company and the Warrantholder hereby unconditionally waives trial by
jury in any civil legal action or proceeding relating to the Warrant or the transactions
contemplated hereby or thereby.

     17. Binding Effect. This Warrant shall be binding upon any successors or assigns of
the Company.

     18. Amendments. This Warrant may be amended and the observance of any term of this
Warrant may be waived only with the written consent of the Company and the Warrantholder.

     19. Prohibited Actions. The Company agrees that it will not take any action which
would entitle the Warrantholder to an adjustment of the Exercise Price if the total number of
shares of Common Stock issuable after such action upon exercise of this Warrant, together with all
shares of Common Stock then outstanding and all shares of Common Stock then issuable upon the
exercise of all outstanding options, warrants, conversion and other rights, would exceed the total
number of shares of Common Stock then authorized by its Charter.

     20. Notices. Any notice, request, instruction or other document to be given hereunder
by any party to the other will be in writing and will be deemed to have been duly given (a) on the

13

 

date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, or
(b) on the second business day following the date of dispatch if delivered by a recognized next day
courier service. All notices hereunder shall be delivered as set forth in Item 8 of Schedule A
hereto, or pursuant to such other instructions as may be designated in writing by the party to
receive such notice.

     21. Entire Agreement. This Warrant, the forms attached hereto and Schedule A hereto
(the terms of which are incorporated by reference herein), and the Letter Agreement (including all
documents incorporated therein), contain the entire agreement between the parties with respect to
the subject matter hereof and supersede all prior and contemporaneous arrangements or undertakings
with respect thereto.

[Remainder of page intentionally left blank]

14

 

[Form of Notice of Exercise]

Date: _________

	 	 	TO: [Company]
	 
	 	 	RE: Election to Purchase Common Stock

     The undersigned, pursuant to the provisions set forth in the attached Warrant, hereby agrees
to subscribe for and purchase the number of shares of the Common Stock set forth below covered by
such Warrant. The undersigned, in accordance with Section 3 of the Warrant, hereby agrees to pay
the aggregate Exercise Price for such shares of Common Stock in the manner set forth below. A new
warrant evidencing the remaining shares of Common Stock covered by such Warrant, but not yet
subscribed for and purchased, if any, should be issued in the name set forth below.

Number of Shares of Common Stock                                                             

Method of Payment of Exercise Price (note if cashless exercise pursuant to Section 3(i) of the
Warrant or cash exercise pursuant to Section 3(ii) of the Warrant, with consent of the Company and
the Warrantholder)                                                             

Aggregate Exercise Price:                                                             

	 	 	 	 	 
	 	 	Holder: 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

15

 

	 	 	 	 	 

     IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by a duly
authorized officer.

Dated: May 13, 2011

	 	 	 	 	 
	 	COMPANY: M&T BANK CORPORATION

 	 
	 	By:  	/s/ Mark J. Czarnecki
 	 
	 	 	Name:  	Mark J. Czarnecki 	 
	 	 	Title:  	President 	 
	 	

Attest:

 	 
	 	By:  	/s/ Brian R. Yoshida
 	 
	 	 	Name:  	Brian R. Yoshida 	 
	 	 	Title:  	Group V.P. & Deputy General Counsel 	 

 

 

	 	 	 	 	 

SCHEDULE A

Item 1

Name: M&T Bank Corporation-

Corporate or other organizational form: Corporation

Jurisdiction of organization: State of New York

Item 2

Exercise Price: $518.96

Item 3

Issue Date: May 16, 2011

Item 4

Amount of last dividend declared by the Company prior to the Issue Date: $0.70

Item 5

Date of Letter Agreement between Wilmington Trust Corporation and the United States Department of
the Treasury: December 12, 2008

Date of Securities Purchase Agreement between M&T Bank Corporation and the United States Department
of the Treasury: May 13, 2011

Item 6

Number of shares of Common Stock: 95,383

Item 7

	 	 	 

	Company’s address:

	 	M&T Bank Corporation
	 

	 	One M&T Plaza
	 

	 	Buffalo, New York 14203

Item 8

	 	 	 

	Notice information:

	 	M&T Bank Corporation
	 

	 	One M&T Plaza
	 

	 	Buffalo, New York 14203
	 

	 	Attn: Drew J. Pfirrman
	 

	 	Phone: (716) 842-5169
	 

	 	Fax: (716) 842-5376

Sch. A-1

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