Document:

exv10w1

 

EXHIBIT 10.1

LOAN MODIFICATION AGREEMENT

This Loan Modification Agreement is entered into July 6, 2005, effective as of July 7, 2005,
by and between SILICON VALLEY BANK (“Bank”), whose address is 3003 Tasman Drive, Santa Clara,
California 95054 with a loan production office at 4410 Arapahoe Avenue, Suite 200, Boulder, CO
80303 and ADVANCED ENERGY INDUSTRIES, INC. (“Borrower”), whose address is 1625 Sharp Point Drive,
Fort Collins, CO 80525.

1. DESCRIPTION OF EXISTING AGREEMENT. Among other Obligations, which may be owing by
Borrower to Bank, Borrower is or may become indebted to Bank pursuant to, among other documents, a
Loan and Security Agreement dated May 10, 2002, as it may be amended from time to time (the “Loan
Agreement”). The Loan Agreement provides for, among other things, a Committed Revolving Line in
the original principal amount of Twenty-Five Million and No/100 Dollars ($25,000,000.00). Defined
terms used but not otherwise defined herein shall have the same meanings as set forth in the Loan
Agreement.

Hereinafter, all indebtedness owing by Borrower to Bank shall be referred to as the “Obligations.”

2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as
described in the Loan Agreement.

Hereinafter, the above-described security documents, together with all other documents securing
repayment of the Obligations shall be referred to as the “Security Documents”. Hereinafter, the
Security Documents, together with all other documents evidencing or securing the Obligations shall
be referred to as the “Existing Loan Documents”.

3. DESCRIPTION OF CHANGE IN TERMS. Bank hereby agrees to modify the Loan Agreement as
follows:

	 	A.	 	Modifications to Loan Agreement.

	 	1.	 	Subsection (b) of Section 2.5 entitled “Fees” is amended to read as follows:

	 	(b)	 	Non-usage Fee. No later than the 15th calendar day following the
end of each calendar quarter, Borrower shall pay to Bank a non-usage fee equal
to Three-Eighths of One Percent (0.375%) per annum of the difference between the
Committed Revolving Line and the average daily outstanding balance during the
prior calendar quarter.

	 	2.	 	Subsection (d) of Section 6.2 entitled “Financial Statements, Reports,
Certificates” is hereby amended to read as follows:

	 	(d)	 	At any time that the aggregate amount of outstanding Advances, exclusive of
interest thereon, exceeds $10,000,000 and remains outstanding for 30 consecutive
days, Borrower will allow Bank to conduct an initial audit and thereafter annual
audits of Borrower’s Collateral at Borrower’s expense. Such audits will be
conducted no more often than once every year after the initial audit, unless an
Event of Default has occurred and is continuing.

	 	3.	 	Section 6.7 entitled “Financial Covenants” is amended to read as follows:

	 	 	Borrower will maintain on a consolidated basis as of the last day of each fiscal
quarter of Borrower unless otherwise noted:

 

 

	 	(i)	 	Quick Ratio. A ratio of Quick Assets to Current Liabilities of at least
2.00 to 1.0; and, for purposes hereof, the current portion of convertible
subordinated notes shall be subtracted from Current Liabilities.
	 
	 	(ii)	 	Tangible Net Worth. A Tangible Net Worth plus Subordinated Debt plus
the outstanding principal amount of Borrower’s (a) 5.0% Convertible Notes
due September 1, 2006 and (b) 5.25% Convertible Notes due November 15, 2006
(collectively, the “Existing Notes”) or of any convertible subordinated
notes (containing subordination terms satisfactory to Bank in its sole
discretion) issued by Borrower in repayment of such Existing Notes, of at
least the sum of $220,000,000 plus 50% of the net profit for such quarter;
and, for purposes hereof, the figure of $220,000,000 may be reduced on a
one-time basis at the time Borrower issues (A) any new convertible notes
(containing subordination terms satisfactory to Bank in its sole discretion)
to repay the Existing Notes, by the difference between the amount of the
Existing Notes and the amount of any such new convertible notes, and (B) any
new equity securities to repay the Existing Notes, by the difference between
the amount of the Existing Notes and the amount of any such new equity
securities; provided, that the amount of such one time reduction may
not exceed the lesser of $70,000,000 or the amount of balance sheet cash
(exclusive of the proceeds of such new convertible notes, new equity
securities or combination of both notes and equity) used to repay the
Existing Notes; and provided, further, that at the time of
such one-time reduction, Borrower shall have raised not less than
$100,000,000 in new convertible notes(containing subordination terms
satisfactory to Bank in its sole discretion), new equity securities or a
combination thereof.

	 	4.	 	Section 13.1 entitled “Definitions” is hereby amended to change the definitions
of the following terms to read as shown:

	 	 	"Collateral” is the property described on Exhibit A, excluding any tangible
property located outside the United States.
	 
	 	 	"Committed Revolving Line” is a Credit Extension of up to $40,000,000.
	 
	 	 	“Credit Extension” is each Advance, FX Forward Contract, Letter of Credit or any
other extension of credit by Bank for Borrower’s benefit.
	 
	 	 	Subpart (d) of the definition of “Eligible Accounts” is amended to read as follows:

	 	(d)	 	Accounts for an account debtor, including Affiliates, whose total
obligations to Borrower exceed 25% of all Accounts, except for Applied
Materials, for which the percentage may be 35%, for the amounts that exceed
that percentage, unless Bank approves in writing in advance;

	 	 	Subpart (g) of the definition of “Permitted Indebtedness” is amended to read as
follows:

	 	(g)	 	Indebtedness of AE-Japan up to an aggregate principal amount of
$7,500,000.

	 	 	“Revolving Maturity Date” is July 6, 2006.

	 	5.	 	Exhibits C and D attached hereto shall be substituted for those attached to the
Loan Agreement.

2

 

	 	B.	 	Consent to Change in Management.

     Borrower has notified Bank that it is in the process of changing its chief executive
officer from Mr. Douglas S. Schatz to Dr. Hans-Georg Betz and Borrower has requested that
Bank consent to such change in management for purposes of Section 7.2 of the Loan Agreement.
This Loan Modification will serve as Bank’s consent to such change in management solely for
purposes of Section 7.2 of the Loan Agreement. Bank’s consent shall not limit or impair
Bank’s right to demand strict performance of (1) this covenant as set forth in the Loan
Agreement after such change in management; and (2) all other covenants and provisions set
forth in the Loan Agreement at all times.

4. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary
to reflect the changes described above.

5. PAYMENT OF LOAN FEE AND EXPENSES. Borrower shall pay to Bank a fee in the amount of Ten
Thousand and No/100 Dollars ($10,000.00) (the “Loan Fee”) plus all of Bank’s reasonable
out-of-pocket expenses in connection with this Loan Modification Agreement.

6. NO DEFENSES OF BORROWER. Borrower (and each guarantor and pledgor signing below) agrees
that, as of the date hereof, it has no defenses against the obligations to pay any amounts under
the Obligations.

7. CONTINUING VALIDITY. Borrower (and each guarantor and pledgor signing below)
understands and agrees that in modifying the existing Obligations, Bank is relying upon Borrower’s
representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except
as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan
Documents remain unchanged and in full force and effect. Bank’s agreement to modifications to the
existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to
make any future modifications to the Obligations. Nothing in this Loan Modification Agreement
shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to
retain as liable parties all makers and endorsers of Existing Loan Documents, unless the party is
expressly released by Bank in writing. Unless expressly released herein, no maker, endorser, or
guarantor will be released by virtue of this Loan Modification Agreement. The terms of this
paragraph apply not only to this Loan Modification Agreement, but also to all subsequent loan
modification agreements.

8. CONDITIONS. The effectiveness of this Loan Modification Agreement is conditioned upon
receipt by Bank of the Loan Fee and a fully executed counterpart hereof.

     This Loan Modification Agreement is executed as of the date first written above.

	 	 	 
	BORROWER:

	 	BANK:
	 
	 	 
	ADVANCED ENERGY INDUSTRIES, INC.

	 	SILICON VALLEY BANK
	 
	 	 
	By: /s/ Michael El-Hillow

	 	By: /s/ Frank Amoroso
	Name: Michael El-Hillow

	 	Name: Frank Amoroso
	Title: Executive V.P. and CFO

	 	Title: V.P.

3exv10w1

 

Exhibit 10.1

 

 

LENNOX INTERNATIONAL INC.

 

SECOND AMENDED AND RESTATED

REVOLVING CREDIT FACILITY AGREEMENT

Dated

as of

July 8, 2005

 

BANK OF AMERICA, N.A.,

as Administrative Agent,

and

JPMORGAN CHASE BANK, N.A.,

as Syndication Agent,

with

BANC OF AMERICA SECURITIES LLC

and

J.P. MORGAN SECURITIES, INC.

as Joint Lead Arrangers

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	ARTICLE 1.	 	DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	     Section 1.01.	 	Defined Terms	 	 	1	 
	     Section 1.02.	 	Terms Generally	 	 	18	 
	     Section 1.03.	 	Types, Facility and Currencies of Loans	 	 	19	 
	     Section 1.04.	 	Exchange Rates; Currency Equivalents	 	 	19	 
	     Section 1.05.	 	Additional Alternative Currencies	 	 	19	 
	     Section 1.06.	 	Change of Currency	 	 	20	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 2.	 	THE CREDITS	 	 	20	 
	 
	 	 	 	 	 	 	 	 
	     Section 2.01.	 	Commitments	 	 	20	 
	 

	 	(a)
	 	Revolving Loans
	 	 	20	 
	 

	 	(b)
	 	Swingline Loans
	 	 	21	 
	 

	 	(c)
	 	Lender Participation in Swingline Loans
	 	 	21	 
	     Section 2.02.	 	Loans	 	 	22	 
	 

	 	(a)
	 	Type of Loans
	 	 	22	 
	 

	 	(b)
	 	Funding Borrowings
	 	 	22	 
	 

	 	(c)
	 	Continuations and Conversions
	 	 	23	 
	     Section 2.03.	 	Borrowing Procedure	 	 	24	 
	     Section 2.04.	 	Fees	 	 	24	 
	 

	 	(a)
	 	Facility Fee
	 	 	24	 
	 

	 	(b)
	 	Agent Fees
	 	 	25	 
	 

	 	(c)
	 	Letter of Credit Fees
	 	 	25	 
	 

	 	(d)
	 	Payment Provisions
	 	 	25	 
	     Section 2.05.	 	Repayment of Loans; Evidence of Indebtedness	 	 	25	 
	 

	 	(a)
	 	Repayment
	 	 	25	 
	 

	 	(b)
	 	Maintenance of Loan Accounts by Lenders
	 	 	25	 
	 

	 	(c)
	 	Maintenance of Loan Accounts by Administrative Agent
	 	 	25	 
	 

	 	(d)
	 	Prima Facie Evidence
	 	 	26	 
	     Section 2.06.	 	Interest on Loans; Margin and Fees	 	 	26	 
	 

	 	(a)
	 	Eurocurrency Rate
	 	 	26	 
	 

	 	(b)
	 	Base Rate and Eurodollar Daily Floating Rate
	 	 	26	 
	 

	 	(c)
	 	Payment of Interest
	 	 	26	 
	 

	 	(d)
	 	Determination of Applicable Margin
	 	 	26	 
	     Section 2.07.	 	Default Interest	 	 	27	 
	     Section 2.08.	 	Alternate Rate of Interest	 	 	28	 
	     Section 2.09.	 	Termination and Reduction of Commitments	 	 	28	 
	 

	 	(a)
	 	Termination on Maturity Date
	 	 	28	 
	 

	 	(b)
	 	Optional Termination or Reduction
	 	 	28	 
	 

	 	(c)
	 	Allocation of Reduction
	 	 	28	 
	     Section 2.10.	 	Prepayment Including Prepayment as a Result of a Change of Control	 	 	29	 
	 

	 	(a)
	 	Optional Prepayment
	 	 	29	 
	 

	 	(b)
	 	Required Prepayment upon Reduction or Termination of Commitments
	 	 	29	 
	 

	 	(c)
	 	Prepayment Offer Required as a Result of a Change of Control
	 	 	29	 
	 

	 	(d)
	 	Outstandings in Excess of Commitments
	 	 	30	 
	 

	 	(e)
	 	Breakage Costs and Interest
	 	 	30	 

TABLE OF CONTENTS, Page i

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	     Section 2.11.	 	Reserve Requirements; Change in Circumstances	 	 	30	 
	 

	 	(a)
	 	Change in Law; Increased Cost
	 	 	30	 
	 

	 	(b)
	 	Capital Adequacy
	 	 	31	 
	 

	 	(c)
	 	Delivery of Certificate
	 	 	31	 
	 

	 	(d)
	 	No Waiver
	 	 	31	 
	 

	 	(e)
	 	Change of Lending Office
	 	 	31	 
	     Section 2.12.	 	Change in Legality; Unavailability of Alternative Currency	 	 	32	 
	 

	 	(a)
	 	Illegality
	 	 	32	 
	 

	 	(b)
	 	Unavailability of Alternative Currency Loans
	 	 	32	 
	     Section 2.13.	 	Pro Rata Treatment	 	 	32	 
	     Section 2.14.	 	Sharing of Setoffs	 	 	33	 
	     Section 2.15.	 	Payments	 	 	33	 
	     Section 2.16.	 	Taxes	 	 	34	 
	 

	 	(a)
	 	Payment of Taxes; Gross Up
	 	 	34	 
	 

	 	(b)
	 	Other Taxes
	 	 	34	 
	 

	 	(c)
	 	Tax Indemnification
	 	 	34	 
	 

	 	(d)
	 	Tax Refund
	 	 	34	 
	 

	 	(e)
	 	Tax Receipts
	 	 	35	 
	 

	 	(f)
	 	Survival
	 	 	35	 
	 

	 	(g)
	 	Tax Withholding Exemptions
	 	 	35	 
	 

	 	(h)
	 	Failure to Deliver Forms
	 	 	35	 
	 

	 	(i)
	 	Mitigation by Lenders
	 	 	35	 
	 

	 	(j)
	 	No Requirement to Deliver Tax Returns
	 	 	36	 
	     Section 2.17.	 	Intentionally Deleted	 	 	36	 
	     Section 2.18.	 	Payments by Administrative Agent to the Lenders	 	 	36	 
	     Section 2.19.	 	Letters of Credit	 	 	36	 
	 

	 	(a)
	 	The Letter of Credit Commitment
	 	 	36	 
	 

	 	(b)
	 	Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension
Letters of Credit
	 	 	38	 
	 

	 	(c)
	 	Drawings and Reimbursements; Funding of Participations
	 	 	39	 
	 

	 	(d)
	 	Repayment of Participations
	 	 	41	 
	 

	 	(e)
	 	Obligations Absolute
	 	 	41	 
	 

	 	(f)
	 	Role of each Issuing Bank
	 	 	42	 
	 

	 	(g)
	 	Cash Collateral
	 	 	43	 
	 

	 	(h)
	 	Applicability of ISP and UCP
	 	 	43	 
	 

	 	(i)
	 	Conflict with Issuer Documents
	 	 	43	 
	 

	 	(j)
	 	Letters of Credit Issued for Subsidiaries
	 	 	44	 
	     Section 2.20.	 	Increase of Commitments	 	 	44	 
	     Section 2.21.	 	Obligations of Lenders Several	 	 	44	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 3.	 	REPRESENTATIONS AND WARRANTIES	 	 	44	 
	 
	 	 	 	 	 	 	 	 
	     Section 3.01.	 	Organization; Powers	 	 	45	 
	     Section 3.02.	 	Authorization	 	 	45	 
	     Section 3.03.	 	Enforceability	 	 	45	 
	     Section 3.04.	 	Governmental or Third Party Approvals	 	 	45	 
	     Section 3.05.	 	Organization and Ownership of Shares of Subsidiaries	 	 	45	 
	     Section 3.06.	 	Financial Statements	 	 	46	 
	     Section 3.07.	 	Litigation; Observance of Statutes and Orders	 	 	46	 
	     Section 3.08.	 	Taxes	 	 	46	 
	     Section 3.09.	 	Title to Property; Leases	 	 	46	 

TABLE OF CONTENTS, Page ii

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	     Section 3.10.	 	Licenses, Permits, etc	 	 	46	 
	     Section 3.11.	 	Compliance with ERISA	 	 	47	 
	     Section 3.12.	 	Use of Proceeds	 	 	47	 
	     Section 3.13.	 	Existing Indebtedness	 	 	47	 
	     Section 3.14.	 	Foreign Assets Control Regulations, etc	 	 	47	 
	     Section 3.15.	 	Margin Regulations; Investment Company Act; Public Utility Holding Company Act	 	 	48	 
	     Section 3.16.	 	No Material Misstatements	 	 	48	 
	     Section 3.17.	 	Environmental Compliance	 	 	48	 
	     Section 3.18.	 	Insurance	 	 	48	 
	     Section 3.19.	 	Solvency	 	 	48	 
	     Section 3.20.	 	Perfected Security Interest	 	 	48	 
	     Section 3.21.	 	Senior Debt	 	 	48	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 4.	 	CONDITIONS OF LENDING	 	 	49	 
	 
	 	 	 	 	 	 	 	 
	     Section 4.01.	 	All Borrowings	 	 	49	 
	     Section 4.02.	 	Effective Date	 	 	49	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 5.	 	AFFIRMATIVE AND NEGATIVE COVENANTS	 	 	51	 
	 
	 	 	 	 	 	 	 	 
	     Section 5.01.	 	Compliance with Laws	 	 	51	 
	     Section 5.02.	 	Insurance	 	 	51	 
	     Section 5.03.	 	Maintenance of Properties and Lines of Business	 	 	51	 
	     Section 5.04.	 	Payment of Taxes	 	 	51	 
	     Section 5.05.	 	Corporate Existence, etc	 	 	51	 
	     Section 5.06.	 	Intentionally Deleted	 	 	51	 
	     Section 5.07.	 	Covenant to Guarantee and Secure Loans Equally	 	 	52	 
	     Section 5.08.	 	Environmental Matters	 	 	52	 
	     Section 5.09.	 	Transactions with Affiliates	 	 	52	 
	     Section 5.10.	 	Merger, Consolidation, etc	 	 	52	 
	     Section 5.11.	 	Sale of Assets, etc	 	 	53	 
	     Section 5.12.	 	Indebtedness	 	 	53	 
	     Section 5.13.	 	Liens	 	 	55	 
	     Section 5.14.	 	Restricted Payments	 	 	57	 
	     Section 5.15.	 	Financial Covenants	 	 	58	 
	 

	 	(a)
	 	Coverage Ratio
	 	 	58	 
	 

	 	(b)
	 	Consolidated Indebtedness to Adjusted EBITDA
	 	 	58	 
	 

	 	(c)
	 	Consolidated Net Worth
	 	 	58	 
	     Section 5.16.	 	Limitation on Restrictive Agreements	 	 	58	 
	     Section 5.17.	 	Preferred Stock of Subsidiaries	 	 	59	 
	     Section 5.18.	 	Financial and Business Information	 	 	59	 
	 

	 	(a)
	 	Quarterly Statements
	 	 	59	 
	 

	 	(b)
	 	Annual Statements
	 	 	59	 
	 

	 	(c)
	 	SEC and Other Reports
	 	 	60	 
	 

	 	(d)
	 	Notice of Default or Event of Default
	 	 	60	 
	 

	 	(e)
	 	ERISA Matters
	 	 	60	 
	 

	 	(f)
	 	Requested Information
	 	 	60	 
	 

	 	(g)
	 	Compliance Certificate
	 	 	61	 
	 

	 	(h)
	 	Debt Rating
	 	 	61	 
	 

	 	(i)
	 	Other Information
	 	 	61	 
	     Section 5.19.	 	Inspection; Confidentiality	 	 	62	 

 TABLE OF CONTENTS, Page iii

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	 

	 	(a)
	 	No Default
	 	 	62	 
	 

	 	(b)
	 	Default
	 	 	62	 
	 

	 	(c)
	 	Technical Data
	 	 	63	 
	     Section 5.20.	 	Books and Records	 	 	63	 
	     Section 5.21.	 	New Material Subsidiaries	 	 	63	 
	     Section 5.22.	 	Payments on Certain Indebtedness	 	 	63	 
	     Section 5.23.	 	Investments, Loans, Advances, Guarantees and Acquisitions	 	 	64	 
	     Section 5.24.	 	Amendment of Material Documents	 	 	66	 
	     Section 5.25.	 	Swap Agreements	 	 	66	 
	     Section 5.26.	 	Limitations on Receivable Securitizations	 	 	66	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 6.	 	EVENTS OF DEFAULT	 	 	66	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 7.	 	THE ADMINISTRATIVE AGENT	 	 	69	 
	 
	 	 	 	 	 	 	 	 
	     Section 7.01.	 	Appointment and Authority	 	 	69	 
	     Section 7.02.	 	Rights as a Lender	 	 	69	 
	     Section 7.03.	 	Exculpatory Provisions	 	 	69	 
	     Section 7.04.	 	Reliance by Administrative Agent	 	 	70	 
	     Section 7.05.	 	Delegation of Duties	 	 	70	 
	     Section 7.06.	 	Resignation of Administrative Agent	 	 	70	 
	     Section 7.07.	 	Non-Reliance on Administrative Agent and Other Lenders	 	 	71	 
	     Section 7.08.	 	No Other Duties, Etc	 	 	71	 
	     Section 7.09.	 	Administrative Agent May File Proofs of Claim	 	 	71	 
	     Section 7.10.	 	Collateral and Guaranty Matters	 	 	72	 
	 
	ARTICLE 8.	 	MISCELLANEOUS	 	 	73	 
	 
	     Section 8.01.	 	Notices; Effectiveness; Electronic Communication	 	 	73	 
	 

	 	(a)
	 	Notices Generally
	 	 	73	 
	 

	 	(b)
	 	Electronic Communications
	 	 	73	 
	 

	 	(c)
	 	The Platform
	 	 	73	 
	 

	 	(d)
	 	Change of Address, Etc
	 	 	74	 
	 

	 	(e)
	 	Reliance by Administrative Agent and Lenders
	 	 	74	 
	     Section 8.02.	 	Survival of Representations and Warranties	 	 	74	 
	     Section 8.03.	 	Binding Effect	 	 	74	 
	     Section 8.04.	 	Successors and Assigns; Assignments and Participations	 	 	75	 
	 

	 	(a)
	 	Successors and Assigns Generally
	 	 	75	 
	 

	 	(b)
	 	Assignments by Lenders
	 	 	75	 
	 

	 	(c)
	 	Register
	 	 	76	 
	 

	 	(d)
	 	Participations
	 	 	76	 
	 

	 	(e)
	 	Limitations upon Participant Rights
	 	 	77	 
	 

	 	(f)
	 	Certain Pledges
	 	 	77	 
	 

	 	(g)
	 	Electronic Execution of Assignments
	 	 	77	 
	 

	 	(h)
	 	Resignation as Swingline Lender after Assignment
	 	 	77	 
	     Section 8.05.	 	Expenses; Indemnity; Damage Waiver; Funding and Exchange Losses	 	 	78	 
	     Section 8.06.	 	Right of Setoff	 	 	81	 
	     Section 8.07.	 	Replacement of Lenders	 	 	81	 
	     Section 8.08.	 	Governing Law; Jurisdiction, Etc	 	 	82	 
	     Section 8.09.	 	Waivers; Amendments, Etc	 	 	83	 
	     Section 8.10.	 	Entire Agreement; Amendment and Restatement	 	 	84	 

TABLE OF CONTENTS, Page iv

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	Section 8.11.	 	Severability	 	 	84	 
	Section 8.12.	 	Counterparts	 	 	84	 
	Section 8.13.	 	Headings	 	 	85	 
	Section 8.14.

	 	Interest Rate Limitation
	 	 	85	 
	Section 8.15.	 	Treatment of Certain Information; Confidentiality	 	 	85	 
	Section 8.16.	 	Non–Application of Chapter 346 of the Texas Finance Code	 	 	86	 
	Section 8.17.	 	WAIVER OF JURY TRIAL	 	 	86	 
	Section 8.18.	 	USA PATRIOT Act Notice	 	 	87	 
	Section 8.19.	 	Judgment Currency	 	 	87	 
	Section 8.20.	 	Payments Set Aside	 	 	87	 
	Section 8.21.	 	Independence of Covenants	 	 	88	 

TABLE OF CONTENTS, Page v

 

 

INDEX TO SCHEDULES AND EXHIBITS

	 	 	 
	Exhibit A

	 	Form of Borrowing Request
	Exhibit B

	 	Form of Assignment and Assumption
	Exhibit C

	 	Matters to be Covered in Opinion of Counsel
	Exhibit D

	 	Form of Subsidiary Guaranty
	Exhibit E

	 	Form of Subsidiary Joinder Agreement
	Exhibit F

	 	Form of Intercreditor Agreement
	Exhibit G

	 	Form of Increased Commitment Supplement
	 
	 	 
	Schedule 1.01

	 	Existing Letters of Credit
	Schedule 2.01

	 	Commitments
	Schedule 3.05

	 	Lennox International Inc. Subsidiaries
	Schedule 3.05A

	 	Material Subsidiary Capitalization
	Schedule 3.17

	 	Environmental Disclosures
	Schedule 5.12

	 	Scheduled Indebtedness
	Schedule 5.13

	 	Existing Liens
	Schedule 5.16

	 	Existing Restrictions
	Schedule 5.23

	 	Existing Investments

INDEX TO SCHEDULES AND EXHIBITS, Solo Page

 

 

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT

     SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT (the “Agreement”)
dated as of July 8, 2005, and effective as of the Effective Date, among LENNOX INTERNATIONAL INC.,
a Delaware corporation (“Borrower”), the lenders listed in Schedule 2.01, BANK OF
AMERICA, N.A. (“Bank of America”), as administrative agent for the Lenders (in such
capacity, the “Administrative Agent”), and JPMORGAN CHASE BANK, N.A., as syndication agent.

     The Borrower, The Chase Manhattan Bank (which is now JPMorgan Chase Bank, N.A.), as
administrative agent, and certain other parties entered into that certain Revolving Credit Facility
Agreement dated as of July 29, 1999 (as amended from time to time, the “Original Credit
Agreement”). The Original Credit Agreement was amended and restated by the Borrower, JPMorgan
Chase Bank, N.A., as administrative agent, and certain other parties pursuant to that certain
Amended and Restated Revolving Credit Facility Agreement dated as of September 11, 2003 (herein the
“Prior Credit Agreement”). Upon the Effective Date of this Agreement, the loans under the
Prior Credit Agreement will be repaid in their entirety with the proceeds of Loans made hereunder,
and such Loans shall be evidenced by and governed by this Agreement and represented, evidenced or
secured by the Loan Documents.

     Accordingly, the parties hereto agree as follows:

ARTICLE 1.

DEFINITIONS

     Section 1.01. Defined Terms. As used in this Agreement, the following terms shall
have the meanings specified below:

     “Adjusted EBITDA” means, for any period (the “Subject Period”), the sum of (a)
EBITDA plus (b), to the extent not included in EBITDA, all Acquired EBITDA. If at any time
during the Subject Period the Borrower or any Subsidiary shall have made any Material Disposition,
the Adjusted EBITDA for such Subject Period shall be reduced by an amount equal to the Adjusted
EBITDA (if positive) attributable to the property that is the subject of such Material Disposition
for such Subject Period or increased by an amount equal to the Adjusted EBITDA (if negative)
attributable thereto for such Subject Period. The term “Material Disposition” means any
disposition of all of the Equity Interests in any Subsidiary or all or substantially all of the
assets of any Subsidiary that yields gross proceeds to the Borrower or any of its Subsidiaries in
excess of $25,000,000. The term “Acquired EBITDA” means, with respect to any Person
acquired, or substantially all of whose assets have been acquired, by the Borrower or any
Subsidiary during the Subject Period (herein a “Target”), the total of the following for
the portion of the Subject Period prior to the acquisition of such Person or its assets (the
“Test Period”) determined on a consolidated basis in accordance with GAAP consistently
applied from financial statements audited by a certified public accountant satisfactory to the
Administrative Agent and covering the Test Period (provided that audited financial statements are
not required if the annual earnings before interest, taxes, depreciation and amortization of the
Target for the completed twelve month period prior to its acquisition is less than $5,000,000,
calculated in the same manner as set forth in the definition of Acquired EBITDA but for such twelve
month period) and otherwise on a basis acceptable to the Administrative Agent:

          (i) the consolidated net income (or net loss) of the Target from operations, excluding the
following:

               (a) the proceeds of any life insurance policy;

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page – 1

 

 

               (b) any gain arising from (1) the sale or other disposition of any assets (other than
current assets) to the extent that the aggregate amount of gains exceeds the aggregate amount of
losses from the sale, abandonment or other disposition of assets (other than current assets), (2)
any write-up of assets, or (3) the acquisition by the Target of its outstanding securities
constituting Indebtedness;

               (c) any amount representing the interest of the Target in the undistributed earnings of any
other Person;

               (d) any earnings of any other Person accrued prior to the date it becomes a Subsidiary of the
Target or is merged into or consolidated with the Target or a Subsidiary of the Target and any
earnings, prior to the date of acquisition, of any other Person acquired in any other manner; and

               (e) any deferred credit (or amortization of a deferred credit) arising from the acquisition of
any Person; plus

          (ii) the sum of (a) any deduction for (or less any gain from) income or franchise taxes
included in determining such consolidated net income (or loss); plus (b) Interest Expenses
deducted in determining such consolidated net income (or loss); plus (c) amortization and
depreciation expense deducted in determining such consolidated net income (or loss) plus
(d) any non-recurring and non-cash charges resulting from the application of GAAP that requires a
charge against earnings for the impairment of goodwill to the extent not already added back or not
included in determining such consolidated net income (or loss), all calculated without duplication;
minus,

          (iii) to the extent added in computing such consolidated net income (or loss) all income that
has been included in the calculation of such net income for such period that will be eliminated in
the future after the acquisition of such Target, as approved by the Administrative Agent.

     “Adjustment Date” shall have the meaning assigned to it in Section 2.06(d).

     “Administrative Agent” shall have the meaning assigned to it in the preamble hereto.

     “Administrative Questionnaire” means an administrative questionnaire in the form
provided by the Administrative Agent.

     “Affiliate” means, at any time, and with respect to any Person, any other Person that
at such time directly or indirectly through one or more intermediaries Controls, or is Controlled
by, or is under common Control with, such first Person. As used in this definition,
“Control” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the ownership of voting
securities, by contract or otherwise. Unless the context otherwise clearly requires, any reference
to an “Affiliate” is a reference to an Affiliate of the Borrower.

     “Alternative Currency” means, with respect to a Letter of Credit or any Swingline
Loan, each of the Euro, the Australian Dollar, and each other currency (other than Dollars) that is
approved in accordance with Section 1.05.

     “Alternative Currency Equivalent” means, at any time, with respect to any amount
denominated in Dollars, the equivalent amount thereof in the applicable Alternative Currency as
determined by the Administrative Agent or the applicable Issuing Bank, as the case may be, at such
time on the basis of the Spot
Rate (determined in respect of the most recent Revaluation Date) for the purchase of such
Alternative Currency with Dollars.

     “Applicable Margin” shall have the meaning assigned in Section 2.06(d).

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page – 2

 

 

     “Applicable Percentage” means, with respect to any Revolving Lender, the
percentage of the total Commitments represented by such Revolving Lender’s Commitment. If the
Commitments have terminated or expired, the Applicable Percentage shall be determined based upon
the Revolving Exposures, or if all Loans have been repaid, based on the Commitments in effect
immediately prior to their termination or expiration.

     “Applicable Time” means, with respect to any borrowings and payments in any
Alternative Currency, the local time in the place of settlement for such Alternative Currency as
may be determined by the Administrative Agent or the applicable Issuing Bank, as the case may be,
to be necessary for timely settlement on the relevant date in accordance with normal banking
procedures in the place of payment.

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

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

     “Assignment and Assumption” means an Assignment and Assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section
8.04), and accepted by the Administrative Agent, in the form of Exhibit B or any other
form approved by the Administrative Agent.

     “Australian Dollars” and the symbol “A$” each mean the lawful currency of the
Commonwealth of Australia.

     “Australian Dollar Loan” means a Swingline Loan denominated in Australian Dollars.

     “Available Currency” means Dollars or an Alternative Currency.

     “Bank of America” shall have the meaning assigned it in the preamble hereto.

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

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

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

     “Board of Directors” means the Board of Directors of Borrower or any duly authorized
committee thereof.

     “Borrower” shall have the meaning given such term in the preamble hereto.

     “Borrower Materials” shall have the meaning given such term in Section 5.18.

     “Borrower Payments” shall have the meaning given such term in Section 2.16(a).

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page – 3

 

 

     “Borrowing” means a group of Loans of a single Type and a single currency under
one of the facilities provided hereunder made on a single date and, with respect to Eurocurrency
Rate Loans, as to which a single Interest Period is in effect.

     “Borrowing Request” means a request made pursuant to Section 2.03 in the form
of Exhibit A.

     “Business Day” means any day (other than a day which is a Saturday, Sunday or legal
holiday in the State of New York or the State of Texas) on which banks are open for business in New
York City, New York and Dallas, Texas; provided, however, that, when used in
connection with a Eurocurrency Rate Loan, the term “Business Day” shall also exclude any day on
which banks are not open for dealings in deposits in the applicable Available Currency in London,
England and in the interbank or other market used to determine the interest rate thereon.

     “Calculation Period” shall have the meaning assigned it in Section 2.06(d).

     “Capital Lease” means, at any time, a lease with respect to which the lessee is
required concurrently to recognize the acquisition of an asset and the incurrence of a liability in
accordance with GAAP.

     “Cash Collateralize” has the meaning specified in Section 2.19(g).

     “Cash Flow” shall have the meaning assigned it in Section 5.15(a).

     “Change of Control” shall have the meaning assigned it in Section 2.10(c).

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

     “Collateral” shall have the meaning set forth in the Pledge Agreement.

     “Collateral Agent” means Bank of America as collateral agent under the terms of the
Intercreditor Agreement (for the benefit of the Lenders, the lenders party to the Senior Note
Purchase Agreements and any other lenders which become entitled to the benefits of the Liens
granted in the Pledge Agreement under the terms of the Intercreditor Agreement) and its successors
and assigns in such capacity.

     “Commitment” means, with respect to each Revolving Lender, the commitment of such
Lender to make Revolving Loans and to acquire participations in Letters of Credit and Swingline
Loans hereunder, expressed as an amount representing the maximum aggregate amount of such Lender’s
Revolving Exposure hereunder, as such commitment may be (a) reduced from time to time pursuant to
Section 2.09; (b) increased from time to time pursuant to Section 2.20; and (c)
reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to
Section 8.04. The initial amount of each Revolving Lender’s Commitment is set forth on
Schedule 2.01, or in the Assignment and Assumption pursuant to which such Lender shall have
assumed its Commitment, as applicable. The initial aggregate amount of the Revolving
Lenders’ Commitments is $400,000,000. The Commitment of each Lender shall automatically and
permanently terminate on the Maturity Date if not terminated earlier pursuant to the terms hereof.

     “Compliance Certificate” means the certificate delivered pursuant to Section
5.18(g).

     “Confidential Information” shall have the meaning assigned it in Section 8.15.

     “Consolidated Assets” means the total assets of the Borrower and its Subsidiaries
which would be shown as assets on a consolidated balance sheet of the Borrower and its Subsidiaries
prepared in accordance

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page – 4

 

 

     with GAAP, after eliminating all amounts properly attributable to minority interests, if any,
in the stock and surplus of Subsidiaries.

     “Consolidated Indebtedness” means, as of any date of determination, all Indebtedness
and all Receivable Securitization Outstandings of the Borrower and its Subsidiaries outstanding on
such date, after eliminating all offsetting debits and credits between the Borrower and its
Subsidiaries and all other items required to be eliminated in the course of the preparation of
consolidated financial statements of the Borrower and its Subsidiaries in accordance with GAAP.

     “Consolidated Net Income” means, for any period, the net income (or net loss) of the
Borrower and its Subsidiaries for such period, determined in accordance with GAAP, excluding:

          (a) the proceeds of any life insurance policy;

          (b) any gain arising from (1) the sale or other disposition of any assets (other than current
assets) to the extent that the aggregate amount of gains exceeds the aggregate amount of losses
from the sale, abandonment or other disposition of assets (other than current assets), (2) any
write-up of assets, or (3) the acquisition by the Borrower or any Subsidiary of its outstanding
securities constituting Indebtedness;

          (c) any amount representing the interest of the Borrower or any Subsidiary in the
undistributed earnings of any other Person;

          (d) any earnings of any other Person accrued prior to the date it becomes a Subsidiary or is
merged into or consolidated with the Borrower or a Subsidiary and any earnings, prior to the date
of acquisition, of any other Person acquired in any other manner;

          (e) any deferred credit (or amortization of a deferred credit) arising from the acquisition of
any Person;

          (f) any non-recurring and non cash charges resulting from the application of GAAP that
requires a charge against earnings for the impairment of goodwill; and

          (g) any non-recurring charges deducted in determining net income for such period which relate
to the discontinuance of Subsidiary operations other than the domestic heating (with the exception
of the hearth products division) and cooling manufacturing segment and the domestic refrigeration
segment.

     “Consolidated Net Worth” means, at any time,

          (a) the sum of (i) the par value (or value stated on the books of the Borrower) of the capital
stock (but excluding treasury stock and capital stock subscribed and unissued) of the Borrower and
its Subsidiaries at such time plus (ii) the amount of paid-in-capital and retained earnings of the
Borrower and its Subsidiaries at such time, in each case as such amounts would be shown on a
consolidated balance sheet of the Borrower and its Subsidiaries as of such time prepared in
accordance with GAAP, minus

          (b) to the extent included in clause (a), all amounts properly attributable to
minority interests, if any, in the stock and surplus of Subsidiaries.

     “Continue”, “Continuation”, and “Continued” shall refer to the
continuation pursuant to Section 2.02(c) of a Eurocurrency Rate Borrowing as a Eurocurrency
Rate Borrowing from one Interest Period to the next Interest Period.

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page – 5

 

 

     “Convert”, “Conversion”, and “Converted” shall refer to a
conversion pursuant to Section 2.02(c) or Section 2.12 of one Type of Borrowing
into another Type of Borrowing.

     “Debt to Adjusted EBITDA Ratio” means, as of the last day of any fiscal quarter, the
ratio of Consolidated Indebtedness outstanding as of such day to Adjusted EBITDA for the four (4)
fiscal quarters then ended.

     “Default” means any event or condition which upon notice, lapse of time or both would
constitute an Event of Default.

     “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the
Loans, participations in Letters of Credit or participations in Swingline Loans required to be
funded by it hereunder within one Business Day of the date required to be funded by it hereunder,
(b) has otherwise failed to pay over to the Administrative Agent or any other Lender any other
amount required to be paid by it hereunder within one Business Day of the date when due, unless the
subject of a good faith dispute, or (c) has been deemed insolvent or become the subject of a
bankruptcy or insolvency proceeding.

     “Distribution” means, in respect of any corporation, association or other business
entity:

          (a) dividends or other distributions or payments on capital stock or other Equity Interests of
such corporation, association or other business entity (except distributions in such stock or other
Equity Interests); and

          (b) the redemption or acquisition of such stock or other Equity Interests including any
sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition,
cancellation or termination of any Equity Interests (except when solely in exchange for such stock
or other Equity Interests) unless made, substantially contemporaneously, from the net proceeds of a
sale of such stock or other Equity Interests.

     “Dollar Equivalent” of any amount means, at the time of determination thereof: (a) if
such amount is expressed in Dollars, such amount, and (b) if such amount is expressed in an
Alternative Currency or any other currency, the equivalent of such amount in Dollars determined
using the rate of exchange quoted by Bank of America in Dallas, Texas at 10:00 a.m. (Dallas, Texas
time) on the date of determination (or, if such date is not a Business Day, the last Business Day
prior thereto) to prime banks in New York for the spot purchase in the New York foreign exchange
market of such amount of Dollars with such other currency.

     “Dollars” or “$” means lawful money of the United States of America.

     “Domestic Subsidiary” means any Subsidiary that is not a Foreign Subsidiary.

     “EBITDA” means, for any period, the total of the following calculated for Borrower and
the Subsidiaries without duplication on a consolidated basis in accordance with GAAP consistently
applied for such period: (a) Consolidated Net Income from operations; plus (b) any
deduction for (or less any gain from) income or franchise taxes included in determining
Consolidated Net Income; plus (c) Interest Expenses deducted in determining Consolidated
Net Income; plus (d) amortization and depreciation expense deducted in determining
Consolidated Net Income; plus (e) any non-recurring and non-cash charges resulting from
application of GAAP that requires a charge against earnings for the impairment of goodwill to the
extent not already added back in determining Consolidated Net Income; plus (f) any non-cash
expenses that arose in connection with the grant of stock options to officers, directors and
employees of the Borrower and the Subsidiaries and were deducted in determining Consolidated Net
Income; minus (g) any cash payments made

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page – 6

 

 

in such period related to a non-cash expense added to Consolidated Net Income in a previous
period pursuant to part (e) or part (f) hereof or pursuant to part (f) of
the definition of Consolidated Net Income.

     “Effective Date” shall have the meaning assigned to such term in Section 4.02.

     “Eligible Assignee” means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved
Fund; and (d) any other Person (other than a natural person) approved by (i) the Administrative
Agent and the Swingline Lender, and (ii) unless an Event of Default has occurred and is continuing,
the Borrower (each such approval not to be unreasonably withheld or delayed); provided that
notwithstanding the foregoing, “Eligible Assignee” shall not include the Borrower or any of
the Borrower’s Affiliates or Subsidiaries.

     “EMU” means the economic and monetary union in accordance with the Treaty of Rome
1957, as amended by the Single European Act 1986, the Maastricht Treaty of 1992 and the Amsterdam
Treaty of 1998.

     “EMU Legislation” means the legislative measures of the European Council for the
introduction of, changeover to or operation of a single or unified European currency.

     “Entitled Person” shall have the meaning assigned to in Section 8.19.

     “Environmental Laws” means any and all Federal, state, local, and foreign statutes,
laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or governmental restrictions relating to pollution and the
protection of the environment or the release of any materials into the environment, including but
not limited to those related to hazardous substances or wastes, air emissions, and discharges to
waste or public systems.

     “Equity Interests” means shares of the capital stock, partnership interests,
membership interests in a limited liability company, beneficial interests in a trust or other
equity interests in a Person or any warrants, options or other rights entitling the holder thereof
to purchase or acquire such interests.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, and the rules and regulations promulgated thereunder from time to time in effect.

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

     “Euro” means the single currency of the participating member states of the European
Union.

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

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page – 7

 

 

     “Eurocurrency Rate Loan” means a Loan that bears interest at a rate based on the
Eurocurrency Rate. Eurocurrency Rate Loans may be denominated in Dollars or in an Alternative
Currency. All Loans denominated in an Alternative Currency must be Eurocurrency Rate Loans.

     “Eurodollar Daily Floating Rate” means, for any day, the fluctuating rate of interest
equal to the Eurocurrency Rate (for a one month Interest Period commencing on such day) for
deposits in Dollars, as adjusted on a daily basis for as long as the Swingline Loan to which such
rate relates is outstanding and as adjusted from time to time in the Administrative Agent’s sole
discretion for then-applicable reserve requirements, deposits insurance assessment rates and other
regulatory costs.

     “Eurodollar Daily Floating Rate Loan” means a Swingline Loan denominated in Dollars
and bearing interest at the Eurodollar Daily Floating Rate.

     “Euro Loan” means a Swingline Loan denominated in Euros.

     “Event of Default” shall have the meaning assigned to such term in Article 6.

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

     “Existing Letters of Credit” means the letters of credit described on Schedule
1.01.

     “Facility Fee” shall have the meaning assigned to such term in Section
2.04(a).

     “Facility Fee Percentage” shall have the meaning assigned to it in Section
2.06(d).

     “Fair Market Value” means, at any time and with respect to any property, the sale
value of such property that would be realized in an arm’s length sale at such time between an
informed and willing buyer and an informed and willing seller (neither being under a compulsion to
buy or sell).

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

     “Fees” shall have the meaning assigned to it in Section 2.04(d).

     “Foreign Subsidiary” means any Subsidiary that is organized under the laws of a
jurisdiction other than the United States of America or any state thereof or the District of
Columbia.

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

     “GAAP” means generally accepted accounting principles as in effect from time to time
in the United States of America.

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page – 8

 

 

     “Governmental Authority” means:

          (a) the government of

               (i) the United States of America, any other nation or any political subdivision thereof,
whether state, provincial or local, or

               (ii) any jurisdiction in which the Borrower or any Subsidiary conducts all or any part of its
business, or which asserts jurisdiction over any properties of the Borrower or any Subsidiary, and

          (b) any agency, authority, instrumentality, regulatory body, court, central bank or other
entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or
functions of, or pertaining to, any such government.

     “Guarantors” means Lennox Industries Inc., Armstrong Air Conditioning Inc., Excel
Comfort Systems Inc., Service Experts Inc., Lennox Global Ltd., and any Material Subsidiary which
becomes a party to the Subsidiary Guaranty in accordance with Section 5.21.

     “Guaranty” or “Guarantee” means, with respect to any Person, any obligation
(except the endorsement in the ordinary course of business of negotiable instruments for deposit or
collection) of such Person guaranteeing or in effect guaranteeing any Indebtedness, dividend or
other obligation of any other Person in any manner, whether directly or indirectly, including
(without limitation) obligations incurred through an agreement, contingent or otherwise, by such
Person:

          (a) to purchase such Indebtedness or obligation or any property constituting security
therefor;

          (b) to advance or supply funds (i) for the purchase or payment of such Indebtedness or
obligation, or (ii) to maintain any working capital or other balance sheet condition or any income
statement
condition of any other Person or otherwise to advance or make available funds for the purchase
or payment of such Indebtedness or obligation;

          (c) to lease properties or to purchase properties or services primarily for the purpose of
assuring the owner of such Indebtedness or obligation of the ability of any other Person to make
payment of the Indebtedness or obligation; or

          (d) otherwise to assure the owner of such Indebtedness or obligation against loss in respect
thereof. In any computation of the Indebtedness or other liabilities of the obligor under any
Guaranty, the Indebtedness or other obligations that are the subject of such Guaranty shall be
assumed to be direct obligations of such obligor.

     “Hazardous Substance” means any contaminant, pollutant or toxic or hazardous
substance, and any substance that is defined or listed as a hazardous, toxic or dangerous substance
under any Environmental Law or that is otherwise regulated or prohibited under any Environmental
Law as a hazardous, toxic or dangerous substance.

     “Increase Amount” has the meaning assigned to such term in Section 2.20.

     “Increased Commitment Supplement” has the meaning specified in Section 2.20.

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page – 9

 

 

     “Indebtedness” with respect to any Person means, at any time, without
duplication:

          (a) its liabilities for borrowed money and its redemption obligations in respect of mandatory
redeemable Preferred Stock;

          (b) its liabilities for the deferred purchase price of property acquired by such Person
(excluding accounts payable arising in the ordinary course of business but including all
liabilities created or arising under any conditional sale or other title retention agreement with
respect to any such property);

          (c) all liabilities appearing on its balance sheet in accordance with GAAP in respect of
Capital Leases;

          (d) all liabilities for borrowed money secured by any Lien with respect to any property owned
by such Person (whether or not it has assumed or otherwise become liable for such liabilities);

          (e) all its liabilities in respect of letters of credit or instruments serving a similar
function issued or accepted for its account by banks and other financial institutions (whether or
not representing obligations for borrowed money, but excluding in any event obligations in respect
of (1) trade or commercial letters of credit issued for the account of such Person in the ordinary
course of its business and (2) stand-by letters of credit issued to support obligations of such
Person that are not of a type described in any of clauses (a), (b), (c), (d), (f), (g)
or (h) of this definition);

          (f) all liabilities of such Person under Swap Agreements;

          (g) all obligations of such Person, contingent or otherwise, for the payment of money under
any noncompete, consulting or similar agreement entered into with the seller of an acquisition
target or any other similar arrangements providing for the deferred payment of the purchase price
for an acquisition; and

          (h) any Guaranty of such Person with respect to liabilities of a type described in any of
clauses (a) through (g) hereof.

     Indebtedness of any Person shall include all obligations of such Person of the character described
in clauses (a) through (h) above to the extent such Person remains legally liable
in respect thereof notwithstanding that any such obligation is deemed to be extinguished under
GAAP. For purposes of determining the amount of the Indebtedness arising under Swap Agreements,
the “principal amount” of the obligations of the Borrower or any Subsidiary in respect of any Swap
Agreement at any time shall be the maximum aggregate amount (giving effect to any netting
agreements) that the Borrower or such Subsidiary would be required to pay if such Swap Agreement
were terminated at such time. The Indebtedness of any Person shall include the Indebtedness of any
other entity (including any partnership in which such Person is a general partner) to the extent
such Person is liable therefor as a result of such Person’s ownership interest in or other
relationship with such entity, except to the extent the terms of such Indebtedness provide that
such Person is not liable therefor.

     “Insurance Subsidiary” means Lake Park Insurance, Ltd., a Bermuda corporation.

     “Intercreditor Agreement” means that certain Second Amended and Restated Intercreditor
Agreement dated the date hereof among the Obligated Parties, Bank of America, as collateral agent
thereunder and as the Administrative Agent, and the lenders party to the Senior Note Purchase
Agreements in substantially the form of Exhibit F, as the same may be amended or otherwise
modified from time to time. The Intercreditor Agreement amends and restates the Prior
Intercreditor Agreement in its entirety.

     “Interest Expenses” means, for any period and any Person, the sum of the following
calculated on a consolidated basis without duplication in accordance with GAAP: (a) total cash
interest expense (including the

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cash interest portion of Capital Leases but excluding interest expense derived from
amortization of fees); plus (b) that portion of the difference between the face amount of
accounts receivables sold in connection with securitization transactions and the purchase price
paid in connection therewith that is representative of the interest expense that would have been
paid if such transaction were accounted for as a financing (as calculated in a manner acceptable to
the Administrative Agent); plus (c) that portion of amounts paid under Synthetic Lease
Obligations that is representative of the interest expense that would have been paid if such
transaction were accounted for as a Capital Lease or otherwise as a financing (as calculated in a
manner acceptable to the Administrative Agent).

     “Interest Payment Date” means (a) with respect to any Base Rate Borrowing or
Eurodollar Daily Floating Rate Borrowing or the payment of the Fees under Section 2.04 (a)
and (c), each March 31, June 30, September 30 and December 31, beginning on the first such
date after the date hereof; (b) with respect to any Eurocurrency Rate Loan, the last day of the
Interest Period applicable thereto and, in the case of such a Eurocurrency Rate Loan with an
Interest Period of more than three months, each day that would have been an Interest Payment Date
for such Eurocurrency Rate Loan if successive Interest Periods of three months duration, as the
case may be, had been applicable to such Eurocurrency Rate Loan; and (c) in addition, with respect
to all Borrowings, the date of any prepayment thereof and the Maturity Date.

     “Interest Period” means, as to each Eurocurrency Rate Loan, the period commencing on
the date such Eurocurrency Rate Loan is disbursed or converted to or continued as a Eurocurrency
Rate Loan and ending on the date one, two, three or six months thereafter, as selected by the
Borrower in its Borrowing Request; provided that:

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

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

               (iii) no Interest Period shall extend beyond the Maturity Date.

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

     “Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit
Application, and any other document, agreement and instrument entered into by an Issuing Bank and
the Borrower (or any Subsidiary of the Borrower) or in favor such Issuing Bank and relating to any
such Letter of Credit.

     “Issuing Bank” means any Revolving Lender, or any Affiliate of any Revolving Lender,
in each case in its capacity as issuer of a Letter of Credit and any successor thereto permitted
hereunder. No Lender has any obligation to issue any Letter of Credit hereunder except Bank of
America subject to the provisions contained in Section 2.19.

     “Joint Lead Arrangers” shall mean, collectively, Banc of America Securities, LLC
(“BAS”) and J.P. Morgan Securities, Inc. (“JPMSI”).

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     “L/C Advance” means, with respect to each Lender, such Lender’s funding of its
participation in any L/C Borrowing in accordance with its Applicable Percentage. All L/C Advances
shall be denominated in Dollars.

     “L/C Borrowing” means an extension of credit resulting from a drawing under any Letter
of Credit which has not been reimbursed on the date when made or refinanced as a Borrowing. All
L/C Borrowings shall be denominated in Dollars.

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

     “L/C Disbursement” means a payment made by any Issuing Bank pursuant to a Letter of
Credit.

     “L/C Obligations” means, as at any date of determination, the aggregate amount
available to be drawn under all outstanding Letters of Credit plus the aggregate of all
Unreimbursed Amounts (as defined in Section 2.19(c)(i)) , including all L/C Borrowings.
For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired
by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14
of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the amount so remaining
available to be drawn.

     “Lenders” means the Revolving Lenders and the Swingline Lender.

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

     “Letter of Credit” means any letter of credit issued hereunder and shall include the
Existing Letters of Credit. A Letter of Credit may be a commercial letter of credit or a standby
letter of credit. Letters of Credit may be issued in Dollars or, if then approved by an Issuing
Bank, in an Alternative Currency.

     “Letter of Credit Application” means an application and agreement for the issuance or
amendment of a Letter of Credit in the form from time to time in use by the applicable Issuing
Bank.

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

     “Letter of Credit Liabilities” means, at any time, the sum of: (a) the Dollar
Equivalent of the aggregate undrawn amount of all outstanding Letters of Credit at such time plus
(b) the Dollar Equivalent of the aggregate amount of all L/C Disbursements that have not yet been
reimbursed by or on behalf of the Borrower at such time. The Letter of Credit Liabilities of any
Revolving Lender at any time shall be its Applicable Percentage of the total Letter of Credit
Liabilities at such time.

     “Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security
interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other
secured party to or of such Person under any conditional sale or other title retention agreement or
Capital Lease, upon or with respect to any property or asset of such Person (including in the case
of Equity Interests, stockholder agreements, voting trust agreements and all similar arrangements).

     “Loan” or “Loans” means Revolving Loans and Swingline Loans. Loans may be
identified by Type, the applicable Available Currency or the facility under which such Loan was
made as described in Section 1.03.

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     “Loan Documents” means this Agreement, the Subsidiary Guaranty, the Intercreditor
Agreement, the Pledge Agreement and all other instruments, agreements and other documentation
executed and delivered pursuant to or in connection with any such agreements, as such instruments,
agreements, and other documentation may be amended or otherwise modified from time to time.

     “Material” means material in relation to: (a) the business, operations, affairs,
financial condition, assets, or properties of the Borrower and its Subsidiaries taken as a whole;
or (b) any material portion of the Collateral (as defined in the Pledge Agreement).

     “Material Adverse Effect” means a material adverse effect on: (a) the business,
operations, affairs, financial condition, assets or properties of the Borrower and its Subsidiaries
taken as a whole; (b) the ability of the Obligated Parties, taken as a whole, to perform their
obligations under the Loan Documents, taken as a whole; or (c) the validity or enforceability of
any Loan Document.

     “Material Subsidiary” means any Subsidiary of the Borrower (except LPAC Corp., LPAC
Corp. II and the Insurance Subsidiary) the book value (determined in accordance with GAAP) of whose
total assets equals or exceeds ten percent (10%) of the book value (determined in accordance with
GAAP) of the consolidated total assets of Borrower and all Subsidiaries as determined as of the
last day of each fiscal quarter.

     “Maturity Date” means July 8, 2010.

     “Maximum Rate” shall have the meaning assigned it in Section 8.14.

     “Moody’s” means Moody’s Investors Service, Inc.

     “Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is
defined in Section 4001(a)(3) of ERISA).

     “Net Interest Expenses” shall have the meaning assigned to it in Section
5.15(a).

     “New Lender” shall have the meaning assigned it in Section 2.20.

     “New Lending Office” shall have the meaning assigned it in Section 2.16(g).

     “New Material Domestic Subsidiary” shall have the meaning assigned it in Section
5.21(a).

     “New Owner” shall have the meaning assigned it in Section 2.10(c).

     “Non-U.S. Lender” shall have the meaning assigned it in Section 2.16(g).

     “Norris Family” shall have the meaning assigned it in Section 2.10(c).

     “Obligated Parties” means the Borrower, the Pledgors and the Guarantors.

     “Original Currency” shall have the meaning assigned it in Section 8.19.

     “Other Currency” shall have the meaning assigned it in Section 8.19.

     “Other Taxes” shall have the meaning assigned it in Section 2.16(b).

     “Overnight Rate” means, for any day, (a) with respect to any amount denominated in
Dollars, the greater of (i) the Federal Funds Rate and (ii) an overnight rate determined by the
Administrative Agent, an Issuing Bank, or the Swingline Lender, as the case may be, in accordance
with banking industry rules on

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interbank compensation, and (b) with respect to any amount denominated in another Available
Currency, the rate of interest per annum at which overnight deposits in the applicable Available
Currency, in an amount approximately equal to the amount with respect to which such rate is being
determined, would be offered for such day by a branch or Affiliate of Bank of America in the
applicable offshore interbank market for such currency to major banks in such interbank market.

     “Participant” shall have the meaning assigned it in Section 8.04(d).

     “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA
or any successor thereto.

     “Person” means an individual, partnership, corporation, limited liability company,
association, trust, unincorporated organization, or other entity or a government or agency or
political subdivision thereof.

     “Plan” means an “employee benefit plan” (as defined in Section 3(3) of ERISA)
that is or, within the preceding five years, has been established or maintained, or to which
contributions are or, within the preceding five years, have been made or required to be made, by
the Borrower or any ERISA Affiliate or with respect to which the Borrower or any ERISA Affiliate
may have any liability.

     “Platform” has the meaning specified in Section 5.18.

     “Pledge Agreement” means that certain Second Amended and Restated Pledge Agreement
dated the date hereof, executed by the Pledgors in favor of the Collateral Agent in accordance with
the Intercreditor Agreement, as the same may be modified from time to time. The Pledge Agreement
amends and restates that certain Amended and Restated Pledge Agreement dated September 11, 2003
executed by the Pledgors party thereto in favor of the Collateral Agent, which was itself an
amendment and restatement of that certain Pledge Agreement dated August 15, 2003.

     “Pledgors” means the Borrower and any Material Subsidiary which becomes a party to the
Pledge Agreement in accordance with Section 5.21.

     “Preferred Stock” means any class of capital stock of, or other Equity Interest in, a
Person that is preferred over any other class of capital stock of, or other Equity Interest in,
such Person as to the payment of dividends or other distributions or the payment of any amount upon
liquidation or dissolution of such Person.

     “Prior Credit Agreement” shall have the meaning assigned to it in the preamble hereto.

     “Prior Intercreditor Agreement” means that certain Amended and Restated Intercreditor
Agreement dated September 11, 2003 among the Borrower, certain Subsidiaries named therein, JPMorgan
Chase Bank, N.A., as collateral agent thereunder and as the administrative agent under the Prior
Credit Agreement (as defined therein), and the creditors party to the Senior Note Purchase
Agreements. The Prior Intercreditor Agreement was itself an amendment and restatement of that
certain Intercreditor Agreement dated August 15, 2001 among the Borrower, certain Subsidiaries
named therein, The Chase Manhattan Bank (now JPMorgan Chase Bank, N.A.), as collateral agent
thereunder and as the administrative agent under the credit agreement of even date therewith,
JPMorgan Chase Bank, N.A. as administrative agent under the 364 day revolving credit facility of
the Borrower, and the creditors party to the Senior Note Purchase Agreements.

     “Private Placement Basket” means, at any date, an amount equal to $350,000,000
minus (ii) the aggregate outstanding principal amount on such date of Indebtedness relating
to the Senior Note Purchase Agreements permitted under Section 5.12(b) minus (iii)
the aggregate outstanding principal amount on such date of Indebtedness incurred pursuant to
Section 5.12(o).

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     “property” or “properties” means, unless otherwise specifically limited,
real or personal property of any kind, tangible or intangible, choate or inchoate.

     “Purchase Price” shall have the meaning assigned to it in Section 5.23.

     “Receivable Securitization” means, with respect to a Person, a transaction or group of
transactions typically referred to as a securitization in which the Person sells its accounts
receivable in a transaction accounted for as a true sale to a special purpose bankruptcy remote
entity that obtains debt financing to finance the purchase price.

     “Receivable Securitization Outstanding” means, with respect to a Person, the aggregate
amount outstanding (i.e., advanced as the purchase price and not repaid from collections) under all
Receivable Securitization transactions of such Person that is representative of the principal
amount that would be outstanding if such transaction were accounted for as a financing.

     “Register” shall have the meaning assigned to it in Section 8.04.

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

     “Required Lenders” means, at any time, Lenders having Commitments representing at
least 51% of the Total Commitment or, for purposes of acceleration pursuant to Article 6,
Lenders holding Loans or participation interests in Loans representing at least 51% of the
aggregate principal amount of the Loans outstanding (with the aggregate amount of each Lender’s
risk participation and funded participation in L/C Obligations and Swingline Loans being deemed
“held” by such Lender for purposes of this definition); provided that the Commitment of,
and the portion of the total outstandings held or deemed held by, any Defaulting Lender shall be
excluded for purposes of making a determination of Required Lenders.

     “Responsible Officer” means any Senior Financial Officer, the Chief Executive Officer
of the Borrower, or the General Counsel of the Borrower.

     “Restricted Payment” means any Distribution in respect of the Borrower or any
Subsidiary (other than on account of capital stock or other Equity Interests of a Subsidiary owned
legally and beneficially by the Borrower or another Subsidiary that is Wholly-Owned), including,
without limitation, any Distribution resulting in the acquisition by the Borrower of Equity
Interests which would constitute treasury stock. For purposes of this Agreement, the amount of any
Restricted Payment made in property shall be the greater of (a) the Fair Market Value of such
property (as determined in good faith by the board of directors (or equivalent governing body) of
the Person making such Restricted Payment) and (b) the net book value thereof on the books of such
Person, in each case determined as of the date on which such Restricted Payment is made.

     “Revaluation Date” means (a) with respect to any Loan, each of the following: (i)
each date of a Borrowing of a Eurocurrency Rate Loan denominated in an Alternative Currency, (ii)
each date of a continuation of a Eurocurrency Rate Loan denominated in an Alternative Currency
pursuant to Section 2.02, and (iii) such additional dates as the Administrative Agent shall
determine or the Required Lenders shall require; and (b) with respect to any Letter of Credit, each
of the following: (i) each date of issuance of a Letter of Credit denominated in an Alternative
Currency, (ii) each date of an amendment of any such Letter of Credit having the effect of
increasing the amount thereof (solely with respect to the increased amount), (iii) each date of any
payment by the Issuing Bank under any Letter of Credit denominated in an Alternative Currency, and
(iv) such additional dates as the Administrative Agent or the Issuing Bank shall determine or the
Required Lenders shall require.

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     “Revolving Exposure” means, with respect to any Revolving Lender at any time, the
sum of the outstanding principal amount of such Lender’s Revolving Loans and the Dollar Equivalent
of the amount of such Lender’s participating (or, with respect to the Swingline Lender or an
Issuing Bank, its direct) interest in the outstanding Swingline Loans and Letters of Credit.

     “Revolving Lenders” means the lenders listed in Schedule 2.01, together with
their successors and assigns.

     “Revolving Loan” shall have the meaning assigned to it in Section 2.01(a).

     “S&P” means Standard & Poor’s rating, group a division of the McGraw Hill Companies.

     “Same Day Funds” means (a) with respect to disbursements and payments in Dollars,
immediately available funds, and (b) with respect to disbursements and payments in an Alternative
Currency, same day or other funds as may be determined by the Administrative Agent or the Issuing
Bank, as the case may be, to be customary in the place of disbursement or payment for the
settlement of international banking transactions in the relevant Alternative Currency.

     “Senior Financial Officer” means the chief financial officer, principal accounting
officer, treasurer, assistant treasurer, treasury manager, director of treasury operations, or
controller of the Borrower; provided that any executive vice president, the treasurer, any
assistant treasurer, the treasury manager or the corporate controller of Borrower is authorized by
Borrower to execute and deliver any Borrowing Request.

     “Senior Note Purchase Agreements” means the following:

               (i) nine separate Note Purchase Agreements, dated as of December 1, 1993, as each of the same
have been amended and as each may be further amended, supplemented or otherwise modified from time
to time, between the Borrower and each of The Prudential Insurance Company of America, Connecticut
General Life Insurance Company, Life Insurance Company of North America, United of Omaha Life
Insurance Company, Mutual of Omaha Insurance Company, Companion Life Insurance Company, United
World Life Insurance Company, First Colony Life Insurance Company, General Electric Capital
Assurance Company (as a successor) and GE Life and Annuity Assurance Company (as a successor);

               (ii) three separate Note Purchase Agreements dated as of April 3, 1998, as each of the same
have been amended and as each may be further amended, supplemented or otherwise modified from time
to time, between the Borrower and each of The Prudential Insurance Company of America, U.S. Private
Placement Fund, and Teachers Insurance and Annuity Association of America; and

               (iii) that certain Master Shelf Agreement dated as of October 15, 1999 between the Borrower
and The Prudential Insurance Company of America and certain affiliates of The Prudential Insurance
Company of America which became bound by such agreement, as the same has been amended and as the
same may be further amended, supplemented or otherwise modified from time to time.

     “Spot Rate” for a currency means the rate determined by the Administrative Agent or
the Issuing Bank, as applicable, to be the rate quoted by the Person acting in such capacity as the
spot rate for the purchase by such Person of such currency with another currency through its
principal foreign exchange trading office at approximately 10:00 a.m. (Dallas, Texas time) on the
date two Business Days prior to the date as of which the foreign exchange computation is made;

provided that the Administrative Agent or the Issuing Bank may obtain such spot rate from
another financial institution designated by the Administrative Agent or the Issuing Bank if the
Person acting in such capacity does not have as of the date of determination a spot buying rate for
any such currency; and provided further that the Issuing Bank may use such spot
rate quoted on the date as of which the

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foreign exchange computation is made in the case of any Letter of Credit denominated in an
Alternative Currency.

     “Subject Indebtedness” shall have the meaning assigned to it in clause (f) of
Article 6.

     “Subordinated Indebtedness” means any Indebtedness, which by its terms is subordinated
in right of payment to prior payment in full of the Obligations (as defined in the Intercreditor
Agreement) arising under this Agreement and the other Loan Documents on terms acceptable to the
Administrative Agent and shall include the Indebtedness evidenced by the Subordinated Notes.

     “Subordinated Notes” means the Borrower’s original $143,750,000 principal amount of
6.25% Convertible Subordinated Notes Due 2009 issued pursuant to that certain Indenture dated May
8, 2002 between the Borrower and The Bank of New York, as trustee.

     “Subsidiary” means, as to any Person, any corporation, association or other business
entity in which such Person or one or more of its Subsidiaries or such Person and one or more of
its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group)
ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons
performing similar functions) of such entity, and any partnership or joint venture if more than a
50% interest in the profits or capital thereof is owned by such Person or one or more of its
Subsidiaries or such Person and one or more of its Subsidiaries (unless such partnership can and
does ordinarily take major business actions without the prior approval of such Person or one or
more of its Subsidiaries). Unless the context otherwise clearly requires, any reference to a
“Subsidiary” is a reference to a Subsidiary of the Borrower.

     “Subsidiary Guaranty” means that certain Second Amended and Restated Subsidiary
Guaranty Agreement dated as of the date hereof executed by the Guarantors in favor of the
Administrative Agent, the Issuing Banks and the Lenders, substantially in the form of Exhibit
D hereto as the same may be modified pursuant to one or more Subsidiary Joinder Agreements and
as the same may otherwise be modified from time to time. The Subsidiary Guaranty amends and
restates in its entirety that certain Amended and Restated Subsidiary Guaranty Agreement dated
September 11, 2003 executed by the Subsidiaries party thereto in favor of JPMorgan Chase Bank,
N.A., as administrative agent, JPMorgan Chase Bank, N.A. as the issuing bank and the Lenders under
the Prior Credit Agreement, which itself was an amendment and restatement of that certain
Subsidiary Guaranty Agreement dated June 29, 2001.

     “Subsidiary Joinder Agreement” means an agreement that has been or will be executed by
a Material Subsidiary adding it as a party to the Subsidiary Guaranty, in substantially the form of
Exhibit E hereto.

     “Swap Agreement” means any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by reference to, one or
more rates, currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk or value or any
similar transaction or any combination of these transactions; provided that no phantom
stock or similar plan providing for payments only on account of services provided by current or
former directors, officers, employees or consultants of the Borrower or the Subsidiaries shall be a
Swap Agreement.

     “Swingline Lender” means Bank of America in its capacity as lender of the Swingline
Loans.

     “Swingline Loan” shall have the meaning assigned to it in Section 2.01(b).

     “Syndication Agent” shall mean JPMorgan Chase Bank, N.A. (“JPMorgan”).

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     “Synthetic Lease Obligation” means the monetary obligation of a Person under (a)
a so-called synthetic or tax retention lease, or (b) an agreement for the use or possession of
property creating obligations that do not appear on the balance sheet of such Person but which,
upon the insolvency or bankruptcy of such Person, would be characterized as the indebtedness of
such Person (without regard to accounting treatment).

     “Target” shall have the meaning assigned to it in the definition of “Adjusted
EBITDA.”

     “Taxes” shall have the meaning assigned it in Section 2.16(a).

     “Total Commitment” means, at any time, the aggregate amount of Commitments of all the
Revolving Lenders, as in effect at such time.

     “Transactions” shall have the meaning assigned it in Section 3.02.

     “Transfer” means, with respect to any Person, any transaction in which such Person
sells, conveys, transfers or leases (as lessor) any of its property, including capital stock of, or
other Equity Interest issued by, a Subsidiary.

     “Transferee” shall have the meaning assigned to it in Section 2.16(a).

     “Type”, when used in respect of any Loan or Borrowing, shall refer to the rate by
reference to which interest on such Loan or Loans comprising such Borrowing is determined (i.e.,
the Base Rate, Eurocurrency Rate, or Eurodollar Daily Floating Rate).

     “Voting Rights” shall have the meaning assigned it in Section 2.10.

     “Wholly-Owned Subsidiary” or “Wholly- Owned” when used in reference to a
Subsidiary, means, at any time, any Subsidiary, one hundred percent (100%) of all of the Equity
Interests of (except directors’ qualifying shares), and voting interests in, which are owned by any
one or more of the Borrower and the Borrower’s other Wholly-Owned Subsidiaries at such time.

     Section 1.02. Terms Generally. The definitions in Section 1.01 shall apply
equally to both the singular and plural forms of the terms defined. Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The
words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without
limitation.” All references herein to Articles, Sections, Exhibits and Schedules shall be deemed
references to Articles and Sections of, and Exhibits and Schedules to, this Agreement unless the
context shall otherwise require. 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. If at any time any change in GAAP, or the interpretation thereof by a “Big Four”
accounting firm (one of Deloitte, KPMG, PricewaterhouseCoopers, or Ernst & Young), would affect the
computation of any financial ratio or requirement set forth in any Loan Document, and either the
Borrower or the Required Lenders shall so request, the Administrative Agent, the Lenders and the
Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original
intent of such ratio or requirement in light of such change in GAAP or the interpretation thereof
by a “Big Four” accounting firm (subject to the approval of the Required Lenders); provided
that, until so amended, (i) such ratio or requirement shall continue to be computed in
accordance with GAAP prior to such change
therein or interpretation thereof by a “Big Four” accounting firm, and (ii) the Borrower shall
provide to the Administrative Agent and the Lenders financial statements and other documents
required under this Agreement or as reasonably requested hereunder setting forth a reconciliation
between calculations of such ratio or requirement made before and after giving effect to such
change in GAAP or the interpretation thereof by a “Big Four” accounting firm.

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          Section 1.03. Types, Facility and Currencies of Loans. Loans and Borrowings hereunder
are distinguished and referred to herein by Type (i.e., Base Rate, Eurocurrency Rate or Eurodollar
Daily Floating Rate), by the Available Currency in which it is denominated and by the facility
provided herein under which such Loan or Borrowing is made (i.e., under Section 2.01(a) and
thus a “Revolving Loan” or “Revolving Borrowing” or made under Section 2.01(b) and thus a
“Swingline Loan” or “Swingline Borrowing”) or by any one or more of the foregoing.

          Section 1.04. Exchange Rates; Currency Equivalents.

               (a) The Administrative Agent or the Issuing Bank, as applicable, shall determine the Spot
Rates as of each Revaluation Date to be used for calculating Dollar Equivalent amounts of
Borrowings and Letters of Credit denominated in Alternative Currencies. Such Spot Rates shall
become effective as of such Revaluation Date and shall be the Spot Rates employed in converting any
amounts between the applicable currencies until the next Revaluation Date to occur. Except for
purposes of financial statements delivered by Obligated Parties hereunder or calculating financial
covenants hereunder or except as otherwise provided herein, the applicable amount of any currency
(other than Dollars) for purposes of the Loan Documents shall be such Dollar Equivalent amount as
so determined by the Administrative Agent or the Issuing Bank, as applicable.

               (b) Wherever in this Agreement in connection with a Borrowing, conversion, continuation or
prepayment of a Eurocurrency Rate Loan or the issuance, amendment or extension of a Letter of
Credit, an amount, such as a required minimum or multiple amount, is expressed in Dollars, but such
Borrowing, Eurocurrency Rate Loan or Letter of Credit is denominated in an Alternative Currency,
such amount shall be the relevant Alternative Currency Equivalent of such Dollar amount (rounded to
the nearest unit of such Alternative Currency, with 0.5 of a unit being rounded upward), as
determined by the Administrative Agent or the Issuing Bank, as the case may be.

          Section 1.05. Additional Alternative Currencies.

               (a) The Borrower may from time to time request that Eurocurrency Rate Loans and/or Letters of
Credit be issued in a currency other than those specifically listed in the definition of
“Alternative Currency”; provided that such requested currency is a lawful currency (other than
Dollars) that is readily available and freely transferable and convertible into Dollars. In the
case of any such request with respect to the making of Eurocurrency Rate Loans, such request shall
be subject to the approval of the Administrative Agent and the Swingline Lender; and in the case of
any such request with respect to the issuance of Letters of Credit, such request shall be subject
to the approval of the Administrative Agent and the Issuing Bank.

               (b) Any such request shall be made to the Administrative Agent not later than 10:00 a.m.
(Dallas, Texas time), 10 Business Days prior to the date of the desired Borrowing or Letter of
Credit issuance (or such other time or date as may be agreed by the Administrative Agent and, in
the case of any such request pertaining to Letters of Credit, the Issuing Bank, in its or their
sole discretion). In the case of any such request pertaining to Eurocurrency Rate Loans, the
Administrative Agent shall promptly notify the Swingline Lender thereof; and in the case of any
such request pertaining to Letters of Credit, the Administrative Agent shall promptly notify the
Issuing Bank thereof. The Swingline Lender (in the case of any such request pertaining to
Eurocurrency Rate Loans) or the Issuing Bank (in the case of a request pertaining to Letters of
Credit) shall notify the Administrative Agent, not later than 10:00 a.m. (Dallas, Texas time), five
Business Days after receipt of such request whether it consents, in its sole discretion, to the
making of Eurocurrency Rate Loans or the issuance of Letters of Credit, as the case may be, in such
requested currency.

               (c) Any failure by the Swingline Lender or the Issuing Bank, as the case may be, to respond to
such request within the time period specified in the preceding sentence shall be deemed to be a

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refusal by the Swingline Lender or the Issuing Bank, as the case may be, to permit
Eurocurrency Rate Loans to be made or Letters of Credit to be issued in such requested currency.
If the Administrative Agent and the Swingline Lender consent to making Eurocurrency Rate Loans in
such requested currency, the Administrative Agent shall so notify the Borrower and such currency
shall thereupon be deemed for all purposes to be an Alternative Currency hereunder for purposes of
any Borrowings of Eurocurrency Rate Loans; and if the Administrative Agent and the Issuing Bank
consent to the issuance of Letters of Credit in such requested currency, the Administrative Agent
shall so notify the Borrower and such currency shall thereupon be deemed for all purposes to be an
Alternative Currency hereunder for purposes of any Letter of Credit issuances. If the
Administrative Agent shall fail to obtain consent to any request for an additional currency under
this Section 1.05, the Administrative Agent shall promptly so notify the Borrower.

          Section 1.06. Change of Currency.

               (a) Each obligation of the Borrower to make a payment denominated in the national currency
unit of any member state of the European Union that adopts the Euro as its lawful currency after
the date hereof shall be redenominated into Euro at the time of such adoption (in accordance with
the EMU Legislation). If, in relation to the currency of any such member state, the basis of
accrual of interest expressed in this Agreement in respect of that currency shall be inconsistent
with any convention or practice in the London interbank market for the basis of accrual of interest
in respect of the Euro, such expressed basis shall be replaced by such convention or practice with
effect from the date on which such member state adopts the Euro as its lawful currency; provided
that if any Borrowing in the currency of such member state is outstanding immediately prior to such
date, such replacement shall take effect, with respect to such Borrowing, at the end of the then
current Interest Period.

               (b) Each provision of this Agreement shall be subject to such reasonable changes of
construction as the Administrative Agent may from time to time specify to be appropriate to reflect
the adoption of the Euro by any member state of the European Union and any relevant market
conventions or practices relating to the Euro.

               (c) Each provision of this Agreement also shall be subject to such reasonable changes of
construction as the Administrative Agent may from time to time specify to be appropriate to reflect
a change in currency of any other country and any relevant market conventions or practices relating
to the change in currency.

          Section 1.07. Letter of Credit Amounts. Unless otherwise specified herein, the amount
of a Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit
in effect at such time; provided, however, that with respect to any Letter of
Credit that, by its terms or the terms of any document related thereto, provides for one or more
automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be
deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such
increases, whether or not such maximum stated amount is in effect at such time; provided
further, however, that the stated amount of such Letter of Credit in effect at such
time shall be used to determine the Letter of Credit Fees pursuant to Section 2.04(c).

ARTICLE 2.

THE CREDITS

          Section 2.01. Commitments.

               (a) Revolving Loans. Prior to the Effective Date, loans were previously made to the
Borrower by the Lenders under the Prior Credit Agreement and, subject to the terms and conditions
hereof and

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relying upon the representations and warranties herein set forth, the parties hereto
acknowledge and agree that, on the Effective Date, such loans shall be repaid with the proceeds of
the hereinafter defined Revolving Loans in their entirety by, and the Revolving Loans shall be
evidenced as Loans under this Agreement. Subject to the terms and conditions hereof and relying
upon the representations and warranties herein set forth, each Revolving Lender agrees, severally
and not jointly, to make advances in Dollars (each such advance, herein a “Revolving Loan”)
to the Borrower, at any time and from time to time on and after the Effective Date and until the
earlier of the Maturity Date or the termination of the Commitment of such Revolving Lender, in an
aggregate principal amount at any time outstanding not to exceed such Revolving Lender’s
Commitment, subject, however, to the condition that the Revolving Exposure of a
Revolving Lender shall not exceed such Revolving Lender’s Commitment and the total Revolving
Exposures of all Revolving Lenders shall not exceed the Total Commitment. Within the foregoing
limits, the Borrower may borrow, pay or prepay and reborrow Revolving Loans hereunder subject to
the terms, conditions and limitations set forth herein. Each Revolving Loan shall be made as part
of a Borrowing consisting of Revolving Loans made by the Revolving Lenders ratably in accordance
with their Applicable Percentages; provided, however, that the failure of any
Revolving Lender to make any Revolving Loan shall not in itself relieve any other Revolving Lender
of its obligation to lend hereunder (it being understood, however, that no Revolving Lender shall
be responsible for the failure of any other Revolving Lender to make any Revolving Loan required to
be made by such other Revolving Lender). The Revolving Loans comprising any Borrowing shall be in
an aggregate principal amount which is an integral multiple of $1,000,000 and not less than
$5,000,000 (or an aggregate principal amount equal to the remaining balance of the Total Commitment
less the total Revolving Exposure of all Revolving Lenders).

               (b) Swingline Loans. Subject to the terms and conditions set forth herein, and in
reliance upon the agreements of the other Lenders set forth in paragraph (c) below, the
Swingline Lender agrees to make advances in such Available Currency as the Borrower may request
(each such Advance, herein a “Swingline Loan”) to the Borrower from time to time on and
after the Effective Date, until the earlier of the Maturity Date or the termination of the
Commitments in an aggregate principal amount at any time outstanding that will not result in: (i)
the aggregate principal amount of outstanding Swingline Loans denominated in Dollars exceeding
$30,000,000; (ii) the Dollar Equivalent of the aggregate principal amount of outstanding Euro Loans
exceeding $25,000,000; (iii) the Dollar Equivalent of the aggregate principal amount of outstanding
Australian Dollar Loans exceeding $25,000,000; and (iv) the total Revolving Exposures of all
Revolving Lenders exceeding the Total Commitment. Notwithstanding the preceding sentence, if a new
Alternative Currency is approved pursuant to Section 1.05, the Borrower may request, in
writing, that the Swingline Lender agree to re-allocate the sublimits in clauses (ii) and
(iii) above to provide a new sublimit for such new Alternative Currency; provided that such
sublimits shall not exceed, in the aggregate, $50,000,000. The Swingline Loans comprising any
Borrowing shall be in an aggregate principal amount the Dollar Equivalent of which is an integral
multiple of $500,000 and not less than $1,000,000 (or an aggregate principal amount the Dollar
Equivalent of which is equal to the sum of the applicable limit set forth in clause (i), (ii)
or (iii) above minus the Dollar Equivalent of all the Swingline Loans denominated in
the same currency then outstanding). Within the foregoing limits and subject to the terms and
conditions set forth herein, the Borrower may borrow, prepay and reborrow Swingline Loans.

               (c) Lender Participation in Swingline Loans. The Swingline Lender may by written
notice given to the Administrative Agent not later than 10:00 a.m., Dallas, Texas time, on any
Business Day require the Revolving Lenders to acquire participations on such Business Day in all or
a portion of the Swingline Loans outstanding. Such notice shall specify the Dollar Equivalent of
the aggregate amount of Swingline Loans in which the Lenders will participate. Promptly upon
receipt of such notice, the Administrative Agent will give notice thereof to each Revolving Lender,
specifying in such notice such Revolving Lender’s Applicable Percentage of such Swingline Loans.
Each Revolving Lender hereby absolutely and unconditionally agrees, upon receipt of notice as
provided above, to pay to the Administrative Agent, for the account of the Swingline Lender, such
Revolving Lender’s Applicable Percentage of the Dollar

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 21

 

 

Equivalent of the principal amount outstanding in connection with such Swingline Loans. Each
Revolving Lender acknowledges and agrees that its obligation to acquire participations in Swingline
Loans pursuant to this paragraph is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including the occurrence and continuance of a Default or Event of Default
or reduction or termination of the Commitments, and that each such payment shall be made without
any offset, abatement, withholding or reduction whatsoever. Each Revolving Lender shall comply
with its obligation under this paragraph by wire transfer of Dollars in immediately available
funds, and the Administrative Agent shall promptly pay to the Swingline Lender the amounts so
received by it from the Revolving Lenders. Upon the funding of a participation under this
clause (c) in any Alternative Currency Loan, the portion of such Loans so funded shall be
converted to Dollar Swingline Loans accruing interest as Base Rate Loans, but Bank of America’s
Applicable Percentage of such Loans shall remain as an Alternative Currency Loan. The
Administrative Agent shall notify the Borrower of any participations in any Swingline Loan acquired
pursuant to this paragraph. Any amounts received by the Swingline Lender from the Borrower (or
other party on behalf of the Borrower) in respect of a Swingline Loan after receipt by the
Swingline Lender of the proceeds of a sale of participations therein shall be promptly remitted to
the Administrative Agent; any such amounts received by the Administrative Agent shall be promptly
remitted by the Administrative Agent to the Revolving Lenders that shall have made their payments
pursuant to this paragraph and to the Swingline Lender, as their interests may appear. The
purchase of participations in a Swingline Loan pursuant to this paragraph shall not relieve the
Borrower of its obligation for the payment thereof in full, notwithstanding any Default or Event of
Default that may exist.

          Section 2.02. Loans.

               (a) Type of Loans. Each Borrowing (including any Borrowing of a Swingline Loan, which
shall be a Eurodollar Daily Floating Rate Loan (for Swingline Loans denominated in Dollars only) or
a Eurocurrency Rate Loan (for Swingline Loans denominated in an Alternative Currency)) shall be
comprised entirely of Eurocurrency Rate Loans, Base Rate Loans, or as to Swingline Loans
denominated in Dollars only, Eurodollar Daily Floating Rate Loans, as the Borrower may request
pursuant to Section 2.03. Each Lender may at its option make any Eurocurrency Rate Loan by
causing any domestic or foreign branch or Affiliate of such Lender to make such Loan;
provided that any exercise of such option shall not affect the obligation of the Borrower
to repay such Loan in accordance with the terms of this Agreement. Borrowings of more than one
Type may be outstanding at the same time.

               (b) Funding Borrowings.

                    (i) Revolving Loans. Subject to paragraph (c) below, each Revolving Lender
shall make each Revolving Loan to be made by it hereunder on the proposed date thereof by wire
transfer of Dollars in immediately available funds to the Administrative Agent in Dallas, Texas,
not later than 2:00 p.m., Dallas, Texas time, and the Administrative Agent shall by 3:00 p.m.,
Dallas, Texas time, credit the amounts so received to the account or accounts specified from time
to time in one or more notices delivered by the Borrower to the Administrative Agent or, if a
Borrowing shall not occur on such date because any condition precedent herein specified shall not
have been met, return the amounts so received to the respective Revolving Lenders or, if such
Borrowing is to finance the reimbursement of an L/C Disbursement, such amounts shall be
distributed to the applicable Issuing Bank.

          Unless the Administrative Agent shall have received notice from a Revolving Lender prior to
the date of any Borrowing (or, in the case of any Base Rate Borrowing or Eurodollar Daily
Floating Rate Borrowing, prior to 2:00 p.m. on the date of such Borrowing) that such Revolving
Lender will not make available to the Administrative Agent such Revolving Lender’s portion of
such Borrowing, the Administrative Agent may assume that such Revolving Lender has made such
portion available to the Administrative Agent on the date of such Borrowing in accordance with
this paragraph (b) and the

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Administrative Agent may, in reliance upon such assumption, make available to the Borrower
on such date a corresponding amount. If and to the extent that such Revolving Lender shall not
have made such portion available to the Administrative Agent, such Revolving Lender and the
Borrower (without waiving any claim against such Revolving Lender for such Revolving Lender’s
failure to make such portion available) severally agree to repay to the Administrative Agent
forthwith on demand such corresponding amount together with interest thereon, for each day from
and including the date such amount is made available to the Borrower until but excluding the date
such amount is repaid to the Administrative Agent at (i) in the case of the Borrower, the
interest rate applicable at the time to the Revolving Loans comprising such Borrowing and (ii) in
the case of such Revolving Lender, the Overnight Rate. If the Borrower and such Revolving Lender
shall pay such interest to the Administrative Agent for the same or an overlapping period, the
Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the
Borrower for such period. If such Revolving Lender shall repay to the Administrative Agent such
corresponding amount, such amount shall constitute such Revolving Lender’s Revolving Loan as part
of such Borrowing for purposes of this Agreement. A notice of the Administrative Agent to any
Revolving Lender or the Borrower with respect to any amount owing under this subsection shall be
conclusive, absent manifest error.

                    (ii) Swingline Loans. The Swingline Lender shall make each Swingline Loan available
to the Borrower by means of a credit to the account or accounts specified from time to time in
one or more notices delivered by the Borrower to the Swingline Lender (or, in the case of a
Swingline Loan made to finance the reimbursement of an L/C Disbursement as provided in
Section 2.19(d), by remittance to the applicable Issuing Bank) by 2:00 p.m. (or if a
Eurocurrency Rate Loan is requested, 1:00 p.m.), Dallas, Texas time, on the requested date of
such Swingline Loan. With respect to the payment of any amount denominated in Euros, the
Swingline Lender shall not be liable to the Borrower or any of the Lenders in any way whatsoever
for any delay, or the consequences of any delay, in the crediting to any account of any amount
required by this Agreement to be paid by the Swingline Lender in Euros if the Swingline Lender
shall have taken all relevant steps to achieve, on the date required by this Agreement, the
payment of such amount in Euros and in immediately available, freely transferable, cleared funds
to the account with the bank in the principal financial center in the participating member state
of the European Union which the Borrower shall have specified for such purpose. “All
relevant steps” means all such steps as may be prescribed from time to time by the
regulations or operating procedures of such clearing or settlement system as the Swingline Lender
may from time to time determine for the purpose of clearing settling payments of Euros.

               (c) Continuations and Conversions. Borrower may Convert all or any part of any
Borrowing to a Borrowing of a different Type and Borrower may Continue all or any part of any
Eurocurrency Rate Borrowing as a Borrowing of the same Type, by giving the Administrative Agent
written notice on the Business Day of the Conversion into a Base Rate Borrowing and on the Business
Day at least three Business Days before Conversion into or Continuation of a Eurocurrency Rate
Borrowing specifying: (i) the Conversion or Continuation date, (ii) the amount of the Borrowing to
be Converted or Continued, (iii) in the case of Conversions, the Type of Borrowing to be Converted
into, and (iv) in the case of a Continuation of or Conversion into a Eurocurrency Rate Borrowing,
the duration of the Interest Period applicable thereto; provided that (a) Eurocurrency Rate
Borrowings may only be Converted on the last day of the Interest Period; (b) except for Conversions
to Base Rate Borrowings, no Conversions shall be made while an Event of Default has occurred and is
continuing; (c) only ten (10) Eurocurrency Rate Borrowings (including Eurocurrency Rate Borrowings
of Swingline Loans) may be in existence at any one time; (d) no Interest Period may end after the
Maturity Date; (e) a Borrowing denominated in one Available Currency may not be Converted by the
Borrower into another Available Currency; (f) Dollar Base Rate Swingline Borrowings may not be
Converted to Eurocurrency Rate Borrowings; and (g) Loans in an Alternative Currency may not be
Converted to Base Rate Borrowings. All notices given under this Section shall be irrevocable and
shall be given not later than

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 23

 

 

10:00 a.m. Dallas, Texas time on the Business Day that is not less than the number of Business
Days specified above for such notice. If the Borrower shall fail to give the Administrative Agent
the notice as specified above for Continuation or Conversion of a Eurocurrency Rate Borrowing prior
to the end of the Interest Period with respect thereto, such Eurocurrency Rate Borrowing shall
automatically be continued as a Eurocurrency Rate Borrowing with an Interest Period of one month’s
duration unless such Eurocurrency Rate Borrowing is a Dollar Borrowing and an Event of Default
exists, in which case such Dollar Eurocurrency Rate Borrowing shall be automatically converted to
an Base Rate Borrowing. The Administrative Agent shall promptly advise the Lenders of any notice
given pursuant to this Section 2.02.

          Section 2.03. Borrowing Procedure. In order to request a Borrowing, the Borrower
shall hand deliver or telecopy to the Administrative Agent a duly completed Borrowing Request: (a)
in the case of a Eurocurrency Rate Borrowing denominated in Dollars, not later than 12:00 noon,
Dallas, Texas time, three Business Days before such Borrowing, (b) in the case of a Eurocurrency
Rate Borrowing denominated in an Alternative Currency, not later than 12:00 noon, Dallas, Texas
time, four Business Days before such Borrowing, and (c) in the case of a Base Rate Borrowing or a
Eurodollar Daily Floating Rate Borrowing, not later than 12:00 noon, Dallas, Texas time, on the day
of such Borrowing. Such notice shall be irrevocable and shall in each case specify: (i) whether
the Borrowing then being requested is to be a Eurocurrency Rate Borrowing, a Base Rate Borrowing or
a Eurodollar Daily Floating Rate Borrowing; (ii) whether the Borrowing is a Revolving Borrowing or
a Swingline Borrowing and if a Swingline Borrowing, the applicable Available Currency in which the
Borrower requests such Borrowing to be denominated; (iii) the date of such Borrowing (which shall
be a Business Day) and the amount thereof; and (iv) if such Borrowing is to be a Eurocurrency Rate
Borrowing, the Interest Period with respect thereto, which shall not end after the Maturity Date;
provided that (A) the Borrower may not request a Eurocurrency Rate Dollar Swingline
Borrowing, a Base Rate Australian Dollar Swingline Borrowing nor a Base Rate Euro Swingline
Borrowing and (B) each such Borrowing of the type described in clause (A) preceding shall
not be available herein. If no election as to the Type, currency or facility applicable to such
Borrowing is specified in any such notice, then the requested Borrowing will be a Base Rate Dollar
Swingline Borrowing. If no Interest Period with respect to any Eurocurrency Rate Borrowing is
specified in any such notice, then the Borrower shall be deemed to have selected an Interest Period
of one month’s duration. Notwithstanding any other provision of this Agreement to the contrary, no
Borrowing shall be requested if the Interest Period with respect thereto would end after the
Maturity Date. When a Revolving Borrowing is requested, the Administrative Agent shall promptly
advise the Revolving Lenders of the notice given pursuant to this Section 2.03 and of each
Revolving Lender’s portion of the requested Borrowing. When a Swingline Borrowing is requested,
the Administrative Agent shall promptly advise the Swingline Lender of the notice given pursuant to
this Section 2.03.

          Section 2.04. Fees.

               (a) Facility Fee. The Borrower agrees to pay to each Revolving Lender, through the
Administrative Agent, a facility fee (“Facility Fee”), at a rate per annum equal to the
Facility Fee Percentage from time to time in effect on the average daily amount of the Commitment
of such Revolving Lender (or if such Commitment no longer exists, on the Dollar Equivalent amount
of the Revolving Exposure of such Revolving Lender), during the period from and including the
Effective Date to but excluding the later of the date on which such Revolving Lender’s Commitment
terminates and the date on which such Revolving Lender ceases to have any Revolving Exposure.
Facility Fees accrued to each Interest Payment Date shall be payable in Dollars on such Interest
Payment Date, commencing on the first such date to occur after the Effective Date; provided
that all such fees shall be payable on the date on which the Commitments terminate and any such
fees accruing after the date on which the Commitments terminate shall be payable on demand. All
Facility Fees shall be computed based on the actual number of days elapsed (including the first day
but excluding the last day) in a year of 365 or 366 days, as the case may be.

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               (b) Agent Fees. The Borrower agrees to pay the Administrative Agent and the
Syndication Agent, respectively, the fees provided for in any separate agreement(s) between
Borrower and Administrative Agent or between Borrower and Syndication Agent, on the dates required
thereby.

               (c) Letter of Credit Fees. The Borrower agrees to pay: (i) to the Administrative
Agent for the account of each Revolving Lender a participation fee with respect to such Revolving
Lender’s participations in Letters of Credit, which shall accrue at the rate equal to the
Applicable Margin (as defined and determined in accordance with Section 2.06(d)) on the
average daily Dollar Equivalent amount of such Revolving Lender’s Applicable Percentage of the
Letter of Credit Liabilities (excluding any portion thereof attributable to unreimbursed L/C
Disbursements) during the period from and including the Effective Date to but excluding the later
of the date on which such Revolving Lender’s Commitment terminates and the date on which such
Revolving Lender ceases to have any Letter of Credit Liabilities; and (ii) to each Issuing Bank a
fronting fee, which shall accrue at the rate of 0.125% per annum on the average daily Dollar
Equivalent amount of the Letter of Credit Liabilities (excluding any portion thereof attributable
to unreimbursed L/C Disbursements) attributable to the Letters of Credit it has issued, during the
period from and including the Effective Date to but excluding the later of the date of termination
of the Commitments and the date on which there ceases to be any such Letter of Credit Liabilities,
as well as each Issuing Bank’s standard fees with respect to the issuance, amendment, renewal or
extension of any of its Letters of Credit or processing of drawings thereunder. Participation fees
and fronting fees accrued to each Interest Payment Date shall be payable in Dollars no more than
five (5) Business Days after such Interest Payment Date, commencing on the first such date to occur
after the Effective Date; provided that all such fees shall be payable on the date on which
the Commitments terminate and any such fees accruing after the date on which the Commitments
terminate shall be payable on demand. Any other fees payable to an Issuing Bank pursuant to this
paragraph shall be payable within 10 days after demand. All participation fees and fronting fee
shall be computed based on a year of 360 days and shall be payable for the actual number of days
elapsed (including the first day but excluding the last day).

               (d) Payment Provisions. The fees payable under this Section 2.04 (the
“Fees”) shall be paid on the dates due, in Dollars and in immediately available funds, to
the Administrative Agent for distribution, if and as appropriate, among the Revolving Lenders or to
the applicable Issuing Bank. Once paid, none of such Fees shall be refundable under any
circumstances.

          Section 2.05. Repayment of Loans; Evidence of Indebtedness.

               (a) Repayment. All payments to be made by the Borrower shall be made without
condition or deduction for any counterclaim, defense, recoupment or setoff. The Borrower hereby
unconditionally promises to pay the unpaid principal amount of each Loan on the Maturity Date.
Payments under this Section 2.05 shall be made to the Administrative Agent for the account
of the Lenders. Following receipt by the Administrative Agent of any payment from the Borrower
pursuant to this paragraph, the Administrative Agent shall distribute such payment to the Lenders
as their interests may appear in accordance with this Agreement.

               (b) Maintenance of Loan Accounts by Lenders. Each Lender shall maintain in accordance
with its usual practice an account or accounts evidencing the indebtedness to such Lender resulting
from each Loan made by such Lender from time to time, including the amounts of principal and
interest payable and paid to such Lender from time to time under this Agreement.

               (c) Maintenance of Loan Accounts by Administrative Agent. The Administrative Agent
shall maintain accounts in which it will record (i) the amount of each Loan made hereunder, the
Type of each Loan made and the Interest Period and Available Currency applicable thereto, (ii) the
amount of each Letter of Credit, the Letter of Credit Liabilities applicable thereto and each
Revolving Lender’s participation interest therein, (iii) the amount of any principal, interest and
Fees due and payable or to become due and payable from

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 25

 

 

the Borrower to each Lender and each Issuing Bank hereunder, (iv) the amount of any sum
received by the Administrative Agent hereunder from the Borrower and each Lender’s and each Issuing
Bank’s share thereof.

               (d) Prima Facie Evidence. The entries made in the accounts maintained pursuant to
paragraphs (b) and (c) of this Section 2.05 shall, to the extent permitted by applicable
law, be prima facie evidence of the existence and amounts of the obligations therein recorded;
provided, however, that the failure of any Lender or the Administrative Agent to
maintain such accounts or any error therein or an inconsistency between such accounts of a Lender
and the accounts of the Administrative Agent shall not in any manner affect the obligations of the
Borrower to repay the Loans in accordance with their terms.

          Section 2.06. Interest on Loans; Margin and Fees.

               (a) Eurocurrency Rate. Subject to the provisions of Section 2.07, the Loans
comprising each Eurocurrency Rate Borrowing shall bear interest (computed on the basis of the
actual number of days elapsed over a year of 360 days) at a rate per annum equal to the applicable
Eurocurrency Rate for the Interest Period and Available Currency in effect for such Borrowing
plus the Applicable Margin from time to time in effect.

               (b) Base Rate and Eurodollar Daily Floating Rate. Subject to the provisions of
Section 2.07, the Loans comprising each Base Rate Borrowing shall bear interest (computed on
the basis of the actual number of days elapsed over a year of 365 or 366 days, as the case may be)
at a rate per annum equal to the Base Rate. Subject to the provisions of Section 2.07, the
Loans comprising each Eurodollar Daily Floating Rate Borrowing shall bear interest (computed on the
basis of the actual number of days elapsed over a year of 360 days) at a rate per annum equal to
the Eurodollar Daily Floating Rate plus the Applicable Margin for Eurocurrency Rate Loans as listed
in subsection (d) below from time to time in effect.

               (c) Payment of Interest. Interest on each Loan shall be payable on each Interest
Payment Date applicable to such Loan except as otherwise provided in this Agreement. Interest on
Loans, the principal amount of which is denominated in an Available Currency, shall be paid in that
Available Currency. The applicable Eurocurrency Rate, Base Rate or Eurodollar Daily Floating Rate
shall be determined by the Administrative Agent, and such determination shall be conclusive absent
manifest error; provided that the Administrative Agent shall, upon request, provide to the
Borrower a certificate setting forth in reasonable detail the basis for such determination.

               (d) Determination of Applicable Margin. The Applicable Margin identified in this
Section 2.06 and the Facility Fee Percentage identified in Section 2.04 shall be
defined and determined as follows:

          “Applicable Margin” means (i) during the period commencing on the
Effective Date and ending on but not including the first Adjustment Date (as defined
below), 0.925% per annum and (ii) during each period from and including one
Adjustment Date to but excluding the next Adjustment Date (herein a “Calculation
Period”), the percent per annum set forth in the table below under the
applicable “Margin” heading opposite the Debt to Adjusted EBITDA Ratio which
corresponds to the Debt to Adjusted EBITDA Ratio set forth in, and as calculated in
accordance with, the applicable Compliance Certificate.

          “Facility Fee Percentage” means (1) during the period commencing on the
Effective Date and ending on but not including the first Adjustment Date, 0.20% per
annum and (2) during each Calculation Period, the percent per annum set forth in the
table below under the heading “Facility Fee Percentage” opposite the Debt to
Adjusted EBITDA Ratio which

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corresponds to the Debt to Adjusted EBITDA Ratio set forth in, and as
calculated in accordance with, the applicable Compliance Certificate.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Margin for	 	 	 	 	 	 
	 	 	Debt to Adjusted	 	Facility	 	Eurocurrency Rate	 	 	 	 	 	Margin for Base
	Level	 	EBITDA Ratio	 	Fee Percentage	 	Loans	 	Letter of Credit Fee	 	Rate Loans
	 
	I

	 	Less than or equal
to 1.00 to 1.00
	 	 	.150	%	 	 	0.475	%	 	 	0.475	%	 	 	0.0	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	II

	 	Less than or equal
to 1.50 to 1.0 but
greater than 1.00
to 1.0
	 	 	.175	%	 	 	0.700	%	 	 	0.700	%	 	 	0.0	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	III

	 	Less than or equal
to 2.00 to 1.0 but
greater than 1.50
to 1.0
	 	 	.200	%	 	 	0.925	%	 	 	0.925	%	 	 	0.0	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IV

	 	Less than or equal
to 2.50 to 1.0 but
greater than 2.00
to 1.0
	 	 	.250	%	 	 	1.00	%	 	 	1.00	%	 	 	0.0	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	V

	 	Greater than 2.50
to 1.00
	 	 	.300	%	 	 	1.200	%	 	 	1.200	%	 	 	0.0	%

Upon delivery of the Compliance Certificate pursuant to Section 5.18(g) in connection
with the financial statements of the Borrower and its Subsidiaries required to be delivered
pursuant to Sections 5.18(a) and (b), commencing with such Compliance Certificate
delivered with respect to the fiscal quarter ending on June 30, 2005, the Applicable Margin (for
Interest Periods commencing after the applicable Adjustment Date) and the Facility Fee Percentage
shall automatically be adjusted in accordance with the Debt to Adjusted EBITDA Ratio set forth
therein and the table set forth above, such automatic adjustment to take effect as of the first
Business Day after the receipt by the Agent of the related Compliance Certificate pursuant to
Section 5.18(g) (each such Business Day when such margin or fees change pursuant to this
sentence or the next following sentence, herein an “Adjustment Date”). If the Borrower
fails to deliver such Compliance Certificate which so sets forth the Debt to Adjusted EBITDA Ratio
within the period of time required by Section 5.18(g): (i) the Applicable Margin (for
Interest Periods commencing after the applicable Adjustment Date) shall automatically be adjusted
to 1.200% per annum; and (ii) the Facility Fee Percentage shall automatically be adjusted to 0.300%
per annum, such automatic adjustments to take effect as of the first Business Day after the last
day on which the Borrower was required to deliver the applicable Compliance Certificate in
accordance with Section 5.18(g) and to remain in effect until subsequently adjusted in
accordance herewith upon the delivery of a Compliance Certificate.

          Section 2.07. Default Interest. If the Borrower shall default in the payment of the
principal of or interest on any Loan or any other amount becoming due hereunder, whether by
scheduled maturity, notice of prepayment, acceleration or otherwise, the Borrower shall on demand
from time to time from the Administrative Agent pay interest, to the extent permitted by law, on
such defaulted amount up to (but not including) the date of actual payment (after as well as before
judgment) at a rate per annum (computed as provided in Section 2.06(b)) equal to: (a) with
respect to Base Rate Loans, the rate otherwise applicable thereto as determined in accordance with
Section 2.06 plus 2%; (b) with respect to Eurocurrency Rate Loans, until the end of the
Interest Period applicable thereto, the rate otherwise applicable thereto as determined in
accordance with Section 2.06 plus 2% and after the end of the Interest Period therefor: (i)
if such Eurocurrency Rate Loan is a Dollar Loan, the Base Rate plus 2% and (ii) if such
Eurocurrency Rate Loan is an Alternative Currency Loan, the rate per annum applicable to
Eurocurrency Rate Loans and the applicable currency with a one month Interest Period as the same
may change each day plus 2%; (c) with respect to other amounts payable in an Alternative Currency
hereunder, the rate determined pursuant to (b)(ii) immediately above; (d) with

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 27

 

 

respect to Eurodollar Daily Floating Rate Loans, the rate otherwise applicable thereto as
determined in accordance with Section 2.06 plus 2%; and (e) with respect to other amounts,
the Base Rate plus 2%.

          Section 2.08. Alternate Rate of Interest. In the event, and on each occasion, that
prior to the commencement of any Interest Period for a Eurocurrency Rate Borrowing or prior to any
Eurodollar Daily Floating Rate Borrowing the Administrative Agent shall have determined (i) that
deposits of the applicable Alternative Currency in the principal amounts of the Eurocurrency Rate
Loans or Eurodollar Daily Floating Rate Loans comprising such Borrowing are not generally available
in the market utilized to determine the applicable Eurocurrency Rate or (ii) that reasonable means
do not exist for ascertaining the Eurocurrency Rate or Eurodollar Daily Floating Rate, the
Administrative Agent shall, as soon as practicable thereafter, give telecopy notice of such
determination to the Borrower and the Lenders. In the event of any such determination under
clauses (i) or (ii) above and after notice thereof shall have been provided to the
Borrower, until the Administrative Agent shall have advised the Borrower and the Lenders that the
circumstances giving rise to such notice no longer exist, any request by the Borrower for a
Eurocurrency Rate Borrowing or Eurodollar Daily Floating Rate Borrowing pursuant to Section
2.03 shall be deemed to be a request for a Dollar Base Rate Borrowing under the applicable
requested facility (i.e., either Swingline or Revolver). In the event the Swingline Lender
notifies the Administrative Agent that the rates at which deposits of the applicable Available
Currency are being offered will not adequately and fairly reflect the cost to such Lender of making
or maintaining the applicable Eurocurrency Rate Loans or Eurodollar Daily Floating Rate Loans
during such Interest Period, the Administrative Agent shall notify the Borrower of such notice and
until the Swingline Lender shall have advised the Administrative Agent that the circumstances
giving rise to such notice no longer exist, any request by the Borrower for a Eurocurrency Rate
Borrowing or Eurodollar Daily Floating Rate Borrowing in such Alternative Currency shall be deemed
a request for a Dollar Base Rate Swingline Borrowing. Each determination by the Administrative
Agent hereunder shall be made in good faith and shall be conclusive absent manifest error;
provided that the Administrative Agent, shall, upon request, provide to the Borrower a
certificate setting forth in reasonable detail the basis for such determination.

          Section 2.09. Termination and Reduction of Commitments.

               (a) Termination on Maturity Date. The commitment of the Swingline Lender under
Section 2.01 to make Swingline Loans, and the Commitments of the Revolving Lenders shall
automatically be terminated on the Maturity Date. Such commitments may also terminate as provided
in Section 2.10(c) and Article 6.

               (b) Optional Termination or Reduction. Upon at least three Business Days’ prior
irrevocable written notice to the Administrative Agent, the Borrower may, at any time, in whole
permanently terminate, or, from time to time, in part permanently reduce, the Total Commitment;
provided, however, that (i) each partial reduction of the Total Commitment shall be
in an integral multiple of $5,000,000 and in a minimum principal amount of $5,000,000; (ii) no such
termination or reduction shall be made which would reduce the Total Commitment to an amount less
than $50,000,000, unless the result of such termination or reduction is to reduce the Total
Commitment to $0; and (iii) no such termination or reduction shall reduce the Total Commitment
below the then outstanding Revolving Exposures. The Administrative Agent shall advise the Lenders
of any notice given pursuant to this Section 2.09(b) and of each Lender’s portion of any
such termination or reduction of the Total Commitment. Upon the termination of the Total
Commitment, the commitment of the Swingline Lender under Section 2.01 shall also terminate.

               (c) Allocation of Reduction. Each reduction in the Total Commitment hereunder shall
be made ratably among the Lenders in accordance with their respective Commitments. The Borrower
shall pay to the Administrative Agent for the account of the Lenders, on the date of each
termination or reduction of the Total Commitment, the Facility Fees on the amount of the
Commitments so terminated or reduced accrued through the date of such termination or reduction.

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 28

 

 

          Section 2.10. Prepayment Including Prepayment as a Result of a Change of Control.

               (a) Optional Prepayment. The Borrower shall have the right at any time and from time
to time to prepay any Borrowing, in whole or in part, upon giving telecopy notice (or telephone
notice promptly confirmed by telecopy) to the Administrative Agent: (i) before 10:00 a.m., Dallas,
Texas time, three Business Days prior to prepayment, in the case of Eurocurrency Rate Loans
denominated in Dollars which prepayment shall be accompanied by any amount owed under Section
8.05(b), (ii) before 10:00 a.m., Dallas, Texas time, four Business Days prior to prepayment, in
the case of Eurocurrency Rate Loans denominated in an Alternative Currency which prepayment shall
be accompanied by any amount owed under Section 8.05(b), and (iii) before 10:00 a.m.,
Dallas, Texas time, one Business Day prior to prepayment, in the case of Base Rate Loans or
Eurodollar Daily Floating Rate Loans; provided, however, that each partial
prepayment shall be in an amount which is an integral multiple of $1,000,000 and not less than
$5,000,000. Each notice of prepayment shall specify the prepayment date and the principal amount
of each Borrowing (or portion thereof) to be prepaid, shall be irrevocable and shall commit the
Borrower to prepay such Borrowing (or portion thereof) by the amount stated therein on the date
stated therein.

               (b) Required Prepayment upon Reduction or Termination of Commitments. On the date of
any termination or reduction of the Total Commitment pursuant to Section 2.09, the Borrower
shall pay or prepay so much of the Borrowings as shall be necessary in order that the Dollar
Equivalent of the aggregate outstanding Revolving Exposure of all Lenders will not exceed the Total
Commitment after giving effect to such termination or reduction.

               (c) Prepayment Offer Required as a Result of a Change of Control. At least 15
Business Days and not more than 90 days prior to the occurrence of any Change of Control, the
Borrower will give written notice thereof to each Lender. Such notice shall contain (i) an offer
by the Borrower to prepay, on the date of such Change of Control or, if such notice shall be
delivered less than 35 days prior to the date of such Change of Control, on the date 35 days after
the date of such notice (the “Prepayment Date”), all Loans made by each Lender, together
with interest accrued thereon to the Prepayment Date and all other liquidated obligations owed to
such Lender under the terms hereof, (ii) the estimated amount of accrued interest, showing in
reasonable detail the calculation thereof and (iii) the Borrower’s estimate of the date on which
such Change of Control shall occur. Said offer shall be deemed to lapse as to any such Lender
which has not replied affirmatively thereto in writing within 35 days of the giving of such notice.
As soon as practicable (and in any event at least 24 hours) prior to such Change of Control, the
Borrower shall give written confirmation of the date thereof to each such Lender that has
affirmatively replied to the notice given pursuant to the first sentence of this Section
2.10(c). Borrower shall, on the Prepayment Date, prepay to each Lender that has affirmatively
replied to the notice given pursuant to the first sentence of this Section 2.10(c), all
Loans then held by such Lender together with accrued interest thereon and all other liquidated
obligations owed to such Lender under the terms hereof. Thereupon, provided the Administrative
Agent and Swingline Lender have agreed to reasonably satisfactory arrangements regarding such
Lender’s participation in Swingline Loans and/or Letters of Credit, each Lender that shall have
received such prepayment shall have no further obligation to make Revolving Loans or participate in
Swingline Loans or Letters of Credit whether outstanding as of the Prepayment Date or made or
issued after the Prepayment Date and the Total Commitment shall be reduced by the amount of each
such Lender’s Commitment.

          For the purposes of this Section 2.10(c), a “Change of Control” shall be
deemed to occur if any New Owner shall acquire beneficial ownership of shares in the Borrower
having Voting Rights pertaining thereto which would allow such New Owner to elect more members of
the Board of Directors than could be elected by the exercise of all Voting Rights pertaining to
shares in the Borrower then owned beneficially by the Norris Family. As used in this Section
2.10(c):

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 29

 

 

               “Voting Rights” pertaining to shares of a corporation means the rights to cast votes
for the election of directors of such corporation in ordinary circumstances (without consideration
of voting rights which exist only in the event of contingencies).

               “Norris Family” means all persons who are lineal descendants of D.W. Norris (by birth
or adoption), all spouses of such descendants, all estates of such descendants or spouses which are
in the course of administration, all trusts for the benefit of such descendants or spouses, and all
corporations or other entities in which, directly or indirectly, such descendants or spouses
(either alone or in conjunction with other such descendants or spouses) have the right, whether by
ownership of stock or other equity interests or otherwise, to direct the management and policies of
such corporations or other entities (each such person, spouse, estate, trust, corporation or entity
being referred to herein as a “member” of the Norris Family). In addition, so long as any employee
stock ownership plan exercises its Voting Rights in the same manner as members of the Norris Family
(exclusive of employee stock ownership plans) who have a majority of the Voting Rights exercised by
all such members of the Norris Family, such employee stock ownership plan shall be deemed a member
of the Norris Family.

               “New Owner” means any Person (other than a member of the Norris Family), or any
syndicate or group of Persons (exclusive of all members of the Norris Family) which would be deemed
a “person” or “group” for the purposes of Section 13(d) of the Exchange Act, who directly
or indirectly acquires shares in the Borrower.

               (d) Outstandings in Excess of Commitments. If on any date of a Borrowing, any
Interest Payment Date, any date of the issuance of a Letter of Credit, any date when a Compliance
Certificate is delivered under Section 5.18(g) or any other date selected by the
Administrative Agent, the (i) aggregate Revolving Exposures of all Lenders exceeds the Total
Commitment; (ii) the Dollar Equivalent of the aggregate principal amount of outstanding Australian
Dollar Loans exceeds $25,000,000; or (iii) the Dollar Equivalent of the aggregate principal amount
of outstanding Euro Loans exceeds $25,000,000, then, in each case, Borrower shall, within two
Business Days, repay to the Administrative Agent an amount equal to the applicable excess.

               (e) Breakage Costs and Interest. All prepayments under this Section 2.10
shall be subject to Section 8.05(e) but otherwise without premium or penalty. All
prepayments under this Section 2.10 shall be accompanied by accrued interest on the
principal amount being prepaid to the date of payment.

          Section 2.11. Reserve Requirements; Change in Circumstances.

               (a) Change in Law; Increased Cost. Notwithstanding any other provision herein, if
after the date of this Agreement any change in applicable law or regulation or in the
interpretation or administration thereof by any Governmental Authority charged with the
interpretation or administration thereof (whether or not having the force of law) shall change the
basis of taxation of payments to any Issuing Bank or any Lender hereunder (except for changes in
respect of taxes on the overall net income of such Issuing Bank or such Lender or its lending
office imposed by the jurisdiction in which its principal executive office or lending office is
located), or shall result in the imposition, modification or applicability of any reserve, special
deposit or similar requirement against assets of, deposits with or for the account of or credit
extended by any Lender or any Issuing Bank, or shall result in the imposition on any Lender, any
Issuing Bank or any interbank market utilized to determine the rate hereunder or any other
condition affecting this Agreement, such Lender’s Commitment, any Loan made by such Lender or any
Letter of Credit or participation interest therein, and the result of any of the foregoing shall be
to increase the cost to such Lender or such Issuing Bank of making or maintaining any Loan or
issuing, maintaining or participating in any Letter of Credit or to reduce the amount of any sum
received or receivable by such Lender or Issuing Bank hereunder (whether of principal, interest or
otherwise) by an amount deemed by such Lender or the Issuing Bank to be material, then the Borrower
shall, upon receipt of the notice and certificate provided for in Section 2.11(c), promptly
pay to such Lender or

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 30

 

 

Issuing Bank, as applicable, such additional amount or amounts as will compensate such Lender
or Issuing Bank for such additional costs incurred or reduction suffered.

               (b) Capital Adequacy. If any Lender or any Issuing Bank shall have determined that
the adoption after the date hereof of any other law, rule, regulation or guideline regarding
capital adequacy, or any change in any of the foregoing or in the interpretation or administration
of any of the foregoing by any Governmental Authority, central bank or comparable agency charged
with the interpretation or administration thereof, or compliance by any Lender (or any lending
office of such Lender) or any Issuing Bank or any Lender’s or any Issuing Bank’s holding company
with any request or directive regarding capital adequacy (whether or not having the force of law)
of any such authority, central bank or comparable agency, has or would have the effect of reducing
the rate of return on such Lender’s or Issuing Bank’s capital or on the capital of such Lender’s or
Issuing Bank’s holding company, if any, as a consequence of this Agreement, such Lender’s
Commitment, the Loans made by such Lender pursuant hereto, or any Letter of Credit or participation
interest therein to a level below that which such Lender or Issuing Bank or such Lender’s or
Issuing Bank’s holding company could have achieved but for such adoption, change or compliance
(taking into consideration such Lender’s or Issuing Bank’s policies and the policies of such
Lender’s or Issuing Bank’s holding company with respect to capital adequacy) by an amount deemed by
such Lender or Issuing Bank to be material, then from time to time such additional amount or
amounts as will compensate such Lender or Issuing Bank for any such reduction suffered will be paid
by the Borrower to such Lender or Issuing Bank, as applicable.

               (c) Delivery of Certificate. A certificate of each affected party setting forth such
amount or amounts as shall be necessary to compensate such party or its holding company as
specified in paragraph (a) or (b) above, as the case may be, and containing an explanation
in reasonable detail of the manner in which such amount or amounts shall have been determined,
shall be delivered to the Borrower, and shall be conclusive absent manifest error. The Borrower
shall pay each Lender and each Issuing Bank, as applicable, the amount shown as due on any such
certificate delivered by it within 10 days after its receipt of the same. Each Lender and each
Issuing Bank shall give prompt notice to the Borrower of any event of which it has knowledge,
occurring after the date hereof, that it has determined will require compensation by the Borrower
pursuant to this Section; provided, however, that failure by such Lender or Issuing
Bank to give such notice shall not constitute a waiver of such party’s right to demand compensation
hereunder.

               (d) No Waiver. Failure on the part of any party to demand compensation for any
increased costs or reduction in amounts received or receivable or reduction in return on capital of
the type described in paragraph (a) or (b) of this Section 2.11 with
respect to any period shall not constitute a waiver of such party’s right to demand compensation
with respect to such period or any other period; provided, however, that neither
any Lender nor any Issuing Bank shall be entitled to compensation under this Section 2.11
for any costs incurred or reductions suffered with respect to any date unless it shall have
notified the Borrower that it will demand compensation for such costs or reductions under
paragraph (c) above not more than 90 days after the later of (i) such date and (ii) the
date on which it shall have become aware of such costs or reductions. The protection of this
Section shall be available to each Lender and each Issuing Bank regardless of any possible
contention of the invalidity or inapplicability of the law, rule, regulation, guideline or other
change or condition which shall have occurred or been imposed.

               (e) Change of Lending Office. Each Lender and each Issuing Bank agrees that it will
designate a different lending or issuing office, as applicable, if such designation will avoid the
need for, or reduce the amount of, compensation payable under this Section 2.11 and will
not, in its reasonable judgment, be disadvantageous to its interests.

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 31

 

 

          Section 2.12. Change in Legality; Unavailability of Alternative Currency.

               (a) Illegality. Notwithstanding any other provision herein, if any change in any law
or regulation or in the interpretation thereof by any Governmental Authority charged with the
administration or interpretation thereof shall make it unlawful for any Lender to make or maintain
any Eurocurrency Rate Loan or to give effect to its obligations as contemplated hereby with respect
to any Eurocurrency Rate Loan, then, by written notice to the Borrower and to the Administrative
Agent, such Lender may:

                    (i) declare that the applicable Eurocurrency Rate Loans will not thereafter be made by such
Lender hereunder, whereupon any request for such a Eurocurrency Rate Borrowing shall, as to such
Lender only, be deemed a request for a Base Rate Dollar Loan unless such declaration shall be
subsequently withdrawn (any Lender delivering such a declaration hereby agreeing to withdraw such
declaration promptly upon determining that such event of illegality no longer exists); and

                    (ii) require that all outstanding Eurocurrency Rate Loans affected by the illegality made by
it be either (A), if such Loans are Dollar Loans, Converted to Base Rate Loans, in which event
all such Eurocurrency Rate Loans shall be automatically Converted to Base Rate Loans as of the
effective date of such notice as provided below, or (B) repaid if such Eurocurrency Rate Loan is
an Alternative Currency Loan.

               In the event any Lender shall exercise its rights under clauses (i) or (ii)
above, all payments and prepayments of principal which would otherwise have been applied to repay
the affected Eurocurrency Rate Loans that would have been made by such Lender or the Converted
Eurocurrency Rate Loans of such Lender shall instead be applied to repay the Base Rate Loans made
by such Lender in lieu of, or resulting from the Conversion of, such Eurocurrency Rate Loans. For
purposes of this Section 2.12 (a), a notice by any Lender shall be effective as to each
Eurocurrency Rate Loan, if lawful, on the last day of the Interest Period currently applicable to
such Eurocurrency Rate Loan; in all other cases such notice shall be effective on the date of
receipt.

               (b) Unavailability of Alternative Currency Loans. Notwithstanding any other provision
herein, if any change in any law or regulation or in the interpretation thereof by any Governmental
Authority charged with the administration or interpretation thereof shall make it unlawful for the
Swingline Lender to make or maintain any Alternative Currency Loan or to give effect to its
obligations as contemplated hereby with respect to any such Loan or in the event that there shall
occur any material adverse change in national or international financial, political or economic
conditions or currency exchange rates or exchange controls which would in the reasonable opinion of
the Swingline Lender make it impracticable for Swingline Loans to be denominated in an Alternative
Currency, then, by written notice to the Borrower and to the Administrative Agent, the Swingline
Lender may:

                    (i) declare that such Loans will not thereafter be made, whereupon any request for such a
Borrowing shall be deemed a request for a Dollar Base Rate Loan unless such declaration shall be
subsequently withdrawn (the Swingline Lender agreeing to withdraw such declaration promptly upon
determining that the applicable event or condition no longer exists); and

                    (ii) require that all outstanding Alternative Currency Loans so affected be repaid.

          Section 2.13. Pro Rata Treatment. Each Borrowing, each payment or prepayment of
principal of any Borrowing, each payment of interest on the Loans, each payment of the Facility
Fees, each Conversion or Continuation of any Loans, and each reduction of the Total Commitment,
shall be allocated pro rata among the Lenders in accordance with their respective Commitments (or,
if such Commitments shall have expired or been terminated, in accordance with the respective
principal amounts of their outstanding Loans) except: (a) as

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 32

 

 

required under Sections 2.12, 2.15 and 2.17 or as otherwise expressly provided
herein; (b) with respect to Swingline Borrowings and Swingline Loans; and (c) if interest shall
accrue on any portion of a Borrowing held by a Lender at a rate different from the rate applicable
to the other Lenders, payment and distribution of interest shall be based on the respective accrual
rates applicable to such Borrowing.

          Section 2.14. Sharing of Setoffs. Subject to the terms of the Intercreditor Agreement
which shall have precedence over any conflicting provisions in this Section 2.14, each
Lender agrees that if it shall, through the exercise of a right of banker’s lien, setoff or
counterclaim, or pursuant to a secured claim under Section 506 of Title 11 of the United
States Code or other security or interest arising from, or in lieu of, such secured claim, received
by such Lender under any applicable bankruptcy, insolvency or other similar law or otherwise, or by
any other means, obtain payment (voluntary or involuntary) in respect of any amounts due hereunder
as a result of which the unpaid principal portion of such amount shall be proportionately less than
the unpaid principal portion of such amount owed to any other Lender, it shall be deemed
simultaneously to have purchased from such other Lender at face value, and shall promptly pay to
such other Lender the purchase price for, a participation in such amounts of such other Lender, so
that the aggregate unpaid principal amount of the obligations owed by the Borrower hereunder and
participations in such obligations held by each Lender shall be in the same proportion to the
aggregate unpaid principal amount of all obligations owed by the Borrower hereunder then
outstanding as the principal amount of such obligations prior to such exercise of banker’s lien,
setoff or counterclaim or other event was to the principal amount of all such obligations
outstanding prior to such exercise of banker’s lien, setoff or counterclaim or other event;
provided, however, that, if any such purchase or purchases or adjustments shall be
made pursuant to this Section 2.14 and the payment giving rise thereto shall thereafter be
recovered, such purchase or purchases or adjustments shall be rescinded to the extent of such
recovery and the purchase price or prices or adjustment restored without interest. The Borrower
expressly consents to the foregoing arrangements and agrees that any Lender holding a participation
in the obligations owed hereunder deemed to have been so purchased may exercise any and all rights
of banker’s lien, setoff or counterclaim with respect to any and all moneys owing by the Borrower
to such Lender by reason thereof as fully as if such Lender had made a Loan in the amount of such
participation.

          Section 2.15. Payments. The Borrower shall make each payment (including principal of
or interest on any Borrowing or any Fees or other amounts hereunder) from an account in the United
States (or such other account in such other jurisdiction as the Administrative Agent may designate
for such purpose) not later than 11:00 a.m., Dallas, Texas time, on the date when due in the
applicable Available Currency to the Administrative Agent at its offices at 901 Main Street,
Dallas, TX 75202 or, in the case of payments to be made directly to another party hereto in
accordance with the terms hereof, to such party as such party shall direct, in each case, in
immediately available funds. All payments made by the Borrower shall be made without condition or
deduction for any counterclaim, defense, recoupment or setoff. Whenever any payment (including
principal of or interest on any Borrowing or any Fees or other amounts) hereunder shall become due,
or otherwise would occur, on a day that is not a Business Day, such payment may be made on the next
succeeding Business Day, and such extension of time shall in such case be included in the
computation of interest or Fees, if applicable. Payments of principal and interest on or in
respect of the Swingline Loans received by the Administrative Agent shall be paid to the Swingline
Lender except that any amounts received in respect of a Swingline Loan after receipt by the
Swingline Lender of the proceeds of a sale of participations therein shall be promptly remitted to
the Revolving Lenders that shall have funded their participation interests therein and to the
Swingline Lender, as their interests may appear. Payments made in respect of the L/C Disbursements
received by the Administrative Agent shall be paid to the applicable Issuing Bank except that any
amounts received in respect of any L/C Disbursement after receipt by such Issuing Bank of the
proceeds of a sale of participations therein shall be promptly remitted to the Revolving Lenders
that shall have funded their participation interests therein and to the applicable Issuing Bank, as
their interests may appear.

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          Section 2.16. Taxes.

               (a) Payment of Taxes; Gross Up. Any and all payments of principal and interest on any
Borrowings, or of any Fees or indemnity or expense reimbursements by the Borrower under any Loan
Document and any other payments by Borrower or any Obligated Party under the Loan Documents
(“Borrower Payments”) shall be made, in accordance with Section 2.15, free and
clear of and without deduction for any and all current or future federal, state, local and other
governmental taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with
respect to the Borrower Payments, but only to the extent reasonably attributable to the Borrower
Payments, excluding (i) income taxes imposed on the net income of the Administrative Agent, any
Issuing Bank or any Lender (or any transferee or assignee thereof, including a participation holder
(any such entity a “Transferee”)) and (ii) franchise taxes imposed on the net income of the
Administrative Agent, any Issuing Bank or any Lender (or Transferee), in each case by the
jurisdiction under the laws of which such party (or Transferee) is organized or doing business
through offices or branches located therein, or any political subdivision thereof (all such
nonexcluded taxes, levies, imposts, deductions, charges, withholdings and liabilities, collectively
or individually, “Taxes”). If the Borrower shall be required to deduct any Taxes from or
in respect of any sum payable hereunder to the Administrative Agent, any Issuing Bank or any Lender
(or any Transferee), (i) the sum payable shall be increased by the amount (an “additional amount”)
necessary so that after making all required deductions (including deductions applicable to
additional sums payable under this Section 2.16) such party (or Transferee) (as the case
may be) shall receive an amount equal to the sum it would have received had no such deductions been
made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable law.

               (b) Other Taxes. In addition, the Borrower shall pay to the relevant Governmental
Authority in accordance with applicable law any current or future stamp or documentary taxes or any
other excise or property taxes, charges or similar levies that arise from any payment made
hereunder or from the execution, delivery or registration of, or otherwise with respect to, any
Loan Document (“Other Taxes”).

               (c) Tax Indemnification. The Borrower shall indemnify the Administrative Agent, each
Issuing Bank and each Lender (or Transferee thereof) for the full amount of Taxes and Other Taxes
with respect to Borrower Payments paid to such party and any liability (including penalties,
interest and expenses (including reasonable attorney’s fees and expenses)) arising therefrom or
with respect thereto, whether or not such Taxes or Other Taxes were correctly or legally asserted
by the relevant Governmental Authority. A certificate setting forth and containing an explanation
in reasonable detail of the manner in which such amount shall have been determined and the amount
of such payment or liability prepared by the Administrative Agent, an Issuing Bank or a Lender,
absent manifest error, shall be final, conclusive and binding for all purposes. Such
indemnification shall be made within 30 days after the date the applicable party makes written
demand therefor.

               (d) Tax Refund. If the Administrative Agent, an Issuing Bank or a Lender (or
Transferee) shall become aware that it is entitled to claim a refund from a Governmental Authority
in respect of Taxes or Other Taxes as to which it has been indemnified by the Borrower, or with
respect to which the Borrower has paid additional amounts, pursuant to this Section 2.16,
it shall promptly notify the Borrower of the availability of such refund claim and shall, within 30
days after receipt of a request by the Borrower, make a claim to such Governmental Authority for
such refund at the Borrower’s expense. If such party receives a refund (including pursuant to a
claim for refund made pursuant to the preceding sentence) in respect of any Taxes or Other Taxes as
to which it has been indemnified by the Borrower or with respect to which the Borrower had paid
additional amounts pursuant to this Section 2.16, it shall within 30 days from the date of
such receipt pay over such refund to the Borrower (but only to the extent of indemnity payments
made, or additional amounts paid, by the Borrower under this Section 2.16 with respect to
the Taxes or Other Taxes giving rise to such refund), net of all of its reasonable out-of-pocket
expenses and without interest (other than interest paid by the relevant

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 34

 

 

Governmental Authority with respect to such refund); provided, however, that
the Borrower, upon the request of such party, agrees to repay the amount paid over to the Borrower
(plus penalties, interest or other charges) under this Section 2.16(d) in the event the
party is required to repay such refund to such Governmental Authority.

               (e) Tax Receipts. As soon as practicable, but in any event within 30 days, after the
date of any payment of Taxes or Other Taxes by the Borrower to the relevant Governmental Authority,
the Borrower will deliver to the Administrative Agent, at its address referred to in Section
8.01, the original or a certified copy of a receipt issued by such Governmental Authority
evidencing payment thereof.

               (f) Survival. Without prejudice to the survival of any other agreement contained
herein, the agreements and obligations contained in this Section 2.16 shall survive the
payment in full of all Revolving Exposure and the termination of the Commitments hereunder.

               (g) Tax Withholding Exemptions. Each Lender (or Transferee) that is organized under
the laws of a jurisdiction other than the United States, any State thereof or the District of
Columbia (a “Non-U.S. Lender”) shall deliver to the Borrower and the Administrative Agent
two copies of the applicable United States Internal Revenue Service Form, properly completed and
duly executed by such Non-U.S. Lender claiming complete exemption from, or reduced rate of, United
States Federal withholding tax on payments by the Borrower under this Agreement. Such forms shall
be delivered by each Non-U.S. Lender on or before the date it becomes a party to this Agreement
(or, in the case of a Transferee that is a participation holder, on or before the date such
participation holder becomes a Transferee hereunder) and on or before the date, if any, such
Non-U.S. Lender changes its applicable lending office by designating a different lending office (a
“New Lending Office”). In addition, each Non-U.S. Lender shall deliver such forms promptly
upon the obsolescence or invalidity of any form previously delivered by such Non-U.S. Lender.
Notwithstanding any other provision of this Section 2.16(g), a Non-U.S. Lender shall not be
required to deliver any form pursuant to this Section 2.16(g) that such Non-U.S. Lender is
not legally able to deliver.

               (h) Failure to Deliver Forms. The Borrower shall not be required to indemnify any
Non-U.S. Lender (including any Transferee), or to pay any additional amounts to any Non-U.S. Lender
(including any Transferee), in respect of federal, state, local or other governmental withholding
tax pursuant to paragraph (a) or (c) above to the extent that (i) the obligation to
withhold amounts with respect to federal, state, local or other governmental withholding tax
existed on the date such Non-U.S. Lender became a party to this Agreement (or, in the case of a
Transferee that is a participation holder, on the date such participation holder became a
Transferee hereunder), or, with respect to payments to a New Lending Office, the date such Non-U.S.
Lender designated such New Lending Office with respect to a Loan; provided,
however, that this clause (h) shall not apply to any Transferee or New Lending
Office that becomes a Transferee or New Lending Office as a result of an assignment, participation,
transfer or designation made at the request of the Borrower; and provided further,
however, that this clause (h) shall not apply to the extent the indemnity payment
or additional amounts any Transferee, or Lender (or Transferee) through a New Lending Office, would
be entitled to receive (without regard to this clause (h)) do not exceed the indemnity
payment or additional amounts that the Person making the assignment, participation or transfer to
such Transferee, or Lender (or Transferee) making the designation of such New Lending Office, would
have been entitled to receive in the absence of such assignment, participation, transfer or
designation or (ii) the obligation to pay such additional amounts or such indemnity payments would
not have arisen but for a failure by such Non-U.S. Lender (including any Transferee) to comply with
the provisions of paragraph (g) above and (i) below.

               (i) Mitigation by Lenders. The Administrative Agent, any Issuing Bank or any Lender
(or Transferee) claiming any indemnity payment or additional amounts payable pursuant to this
Section 2.16 shall use reasonable efforts (consistent with legal and regulatory
restrictions) to file any certificate or document reasonably requested in writing by the Borrower
or to change the jurisdiction of its applicable lending office if

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 35

 

 

the making of such a filing or change would avoid the need for or reduce the amount of any
such indemnity payment or additional amounts that may thereafter accrue and would not, in the good
faith determination of the Administrative Agent, such Issuing Bank or such Lender (or Transferee),
be otherwise disadvantageous to its interests.

               (j) No Requirement to Deliver Tax Returns. Nothing contained in this Section 2.16
shall require the Administrative Agent, any Issuing Bank or any Lender (or Transferee) to make
available to the Borrower any of its tax returns (or any other information) that it deems to be
confidential or proprietary subject however to the provisions of Section 8.14.

          Section 2.17. Intentionally Deleted.

          Section 2.18. Payments by Administrative Agent to the Lenders. Any payment received
by the Administrative Agent hereunder or under any other Loan Document for the account of a Lender
or an Issuing Bank shall be paid to such party by 3:00 p.m. Dallas, Texas time on (a) the Business
Day the payment is received in immediately available funds, if such payment is received by 10:00
a.m. Dallas, Texas time and (b) if such payment is received after 10:00 a.m. Dallas, Texas time, on
the next Business Day.

          Unless the Administrative Agent shall have received notice from the Borrower prior to the date
on which any payment is due to the Administrative Agent for the account of the Lenders or any
Issuing Bank hereunder that the Borrower will not make such payment, the Administrative Agent may
assume that the Borrower has made such payment on such date in accordance herewith and may, in
reliance upon such assumption, distribute to the Lenders or such Issuing Bank, as the case may be,
the amount due. In such event, if the Borrower has not in fact made such payment, then each of the
Lenders or Issuing Banks, as the case may be, severally agrees to repay to the Administrative Agent
forthwith on demand the amount so distributed to such Lender or such Issuing Bank, in immediately
available funds with interest thereon, for each day from and including the date such amount is
distributed to it to but excluding the date of payment to the Administrative Agent, at the greater
of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation. A notice of the Administrative Agent to any
Lender or any Issuing Bank with respect to any amount owing under this subsection shall be
conclusive, absent manifest error.

          Section 2.19. Letters of Credit.

               (a) The Letter of Credit Commitment.

                    (i) Subject to the terms and conditions set forth herein, the Borrower may request the
issuance of Letters of Credit for its own account or for the account of any Subsidiary and for
its or a Subsidiary’s benefit, payable in Dollars (or if then approved by an Issuing Bank, in
another Available Currency) in a form reasonably acceptable to the Administrative Agent and the
applicable Issuing Bank, at any time on any Business Day and from time to time on and after the
date hereof until the earlier of the Letter of Credit Expiration Date or the termination of the
Commitments hereunder. If the Borrower requests Bank of America to issue a Letter of Credit,
Bank of America agrees, in reliance upon the agreements of the Lenders set forth in this
Section 2.19, to issue the Letter of Credit subject to the terms and conditions of this
Agreement (including without limitation those contained in this Section 2.19 below and
those contained in Section 4.01) and provided that (i) the terms and provisions
of such Letter of Credit are reasonably satisfactory to Bank of America and otherwise comply
with the terms hereof, (ii) such Letter of Credit supports a transaction reasonably acceptable
to Bank of America and (iii) such Letter of Credit is issued pursuant to such documentation as
Bank of America may reasonably require. The Borrower may request any Issuing Bank to issue a
Letter of Credit; provided that after giving effect to any L/C Credit Extension with
respect to any Letter of Credit, (x) the total Revolving Exposures of all

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Revolving Lenders shall not exceed the Total Commitment, and (y) the Revolving Exposure of
a Revolving Lender shall not exceed such Revolving Lender’s Commitment. Each request by the
Borrower for the issuance or amendment of a Letter of Credit shall be deemed to be a
representation by the Borrower that the L/C Credit Extension so requested complies with the
conditions set forth in the proviso to the preceding sentence. Within the foregoing limits, and
subject to the terms and conditions hereof, the Borrower’s ability to obtain Letters of Credit
shall be fully revolving, and accordingly the Borrower may, during the foregoing period, obtain
Letters of Credit to replace Letters of Credit that have expired or that have been drawn upon
and reimbursed. All Existing Letters of Credit shall be deemed to have been issued pursuant
hereto, and from and after the Effective Date shall be subject to and governed by the terms and
conditions hereof.

                    (ii) No Issuing Bank shall issue any Letter of Credit if the expiry date of such requested
Letter of Credit would occur after the Letter of Credit Expiration Date, unless all the Lenders
have approved such expiry date.

                    (iii) No Issuing Bank shall be under any obligation to issue any Letter of Credit if:

                        (A) any order, judgment or decree of any Governmental Authority or arbitrator shall by
its terms purport to enjoin or restrain such Issuing Bank from issuing such Letter of Credit,
or any Law applicable to such Issuing Bank or any request or directive (whether or not having
the force of law) from any Governmental Authority with jurisdiction over such Issuing Bank (x)
shall prohibit, or request that such Issuing Bank refrain from, the issuance of letters of
credit generally or such Letter of Credit in particular, (y) shall impose upon such Issuing
Bank with respect to such Letter of Credit any restriction, reserve or capital requirement
(for which such Issuing Bank is not otherwise compensated hereunder) not in effect on the
Effective Date, or (z) shall impose upon such Issuing Bank any unreimbursed loss, cost or
expense which was not applicable on the Effective Date and which such Issuing Bank in good
faith deems material to it, provided that, in the cases of clauses (y) and
(z), such Issuing Bank shall have provided written notice to Borrower of its refusal to
issue any Letter of Credit and the specific reasons therefor and Borrower shall not have
compensated such Issuing Bank for the imposition of such restriction, reserve or capital
requirement or reimbursed such Issuing Bank for such loss, cost or expense, as applicable;

                        (B) the issuance of such Letter of Credit would violate one or more policies of the
Issuing Bank which are of general application;

                        (C) except as otherwise agreed by the Administrative Agent and such Issuing Bank, such
Letter of Credit is to be denominated in a currency other than Dollars or an Alternative
Currency;

                        (D) such Issuing Bank does not as of the issuance date of such requested Letter of Credit
issue Letters of Credit in the requested currency;

                        (E) such Letter of Credit contains any provisions for automatic reinstatement of the
stated amount after any drawing thereunder; or

                        (F) a default of any Lender’s obligations to fund under Section 2.01 or
Section 2.02 exists or any Lender is at such time a Defaulting Lender hereunder,
unless the Administrative Agent has entered into satisfactory arrangements with the Borrower
or such Lender to eliminate the risk with respect to such Lender.

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                    (iv) No Issuing Bank shall amend any Letter of Credit if the Issuing Bank would not be
permitted at such time to issue such Letter of Credit in its amended form under the terms hereof.

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

          (b) Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of
Credit.

                    (i) Each Letter of Credit shall be issued or amended, as the case may be, upon the request
of the Borrower delivered to the applicable Issuing Bank and the Administrative Agent in the form
of a Letter of Credit Application, appropriately completed and signed by a Senior Financial
Officer of the Borrower. Such Letter of Credit Application must be received by the applicable
Issuing Bank and the Administrative Agent not later than 10:00 a.m. (Dallas, Texas time) at least
two Business Days (or such later date and time as the Administrative Agent and the applicable
Issuing Bank may agree in a particular instance in their sole discretion) prior to the proposed
issuance date or date of amendment, as the case may be. In the case of a request for an initial
issuance of a Letter of Credit, such Letter of Credit Application shall specify in form and
detail satisfactory to the applicable Issuing Bank and the Administrative Agent: (A) the proposed
issuance date of the requested Letter of Credit (which shall be a Business Day); (B) the amount
and currency thereof; (C) the expiry date thereof; (D) the name and address of the beneficiary
thereof; (E) the documents to be presented by such beneficiary in case of any drawing thereunder;
(F) the full text of any certificate to be presented by such beneficiary in case of any drawing
thereunder; and (G) such other matters as the applicable Issuing Bank may require. In the case
of a request for an amendment of any outstanding Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to the applicable Issuing Bank: (A) the
Letter of Credit to be amended; (B) the proposed date of amendment thereof (which shall be a
Business Day); (C) the nature of the proposed amendment; and (D) such other matters as such
Issuing Bank may require. Additionally, the Borrower shall furnish to the applicable Issuing
Bank and the Administrative Agent such other documents and information pertaining to such
requested Letter of Credit issuance or amendment, including any Issuer Documents, as such Issuing
Bank or the Administrative Agent may require.

                    (ii) Promptly after receipt of any Letter of Credit Application, the applicable Issuing Bank
will confirm with the Administrative Agent (by telephone or in writing) that the Administrative
Agent has received a copy of such Letter of Credit Application from the Borrower and, if not,
such Issuing Bank will provide the Administrative Agent with a copy thereof. Unless the Issuing
Bank has received written notice from any Lender, the Administrative Agent or any Loan Party, at
least one Business Day prior to the requested date of issuance or amendment of the applicable
Letter of Credit, that one or more applicable conditions contained in Article 4 shall not
then be satisfied, then, subject to the terms and conditions hereof, such Issuing Bank may, on
the requested date, issue a Letter of Credit for the account of the Borrower (or the applicable
Subsidiary) or enter into the applicable amendment, as the case may be, in each case in
accordance with such Issuing Bank’s usual and customary business practices. Immediately upon the
issuance of each Letter of Credit, and without any further action on the part of the applicable
Issuing Bank or the Lenders, the applicable Issuing Bank grants to each Revolving Lender, and
each Revolving Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to,
purchase from such Issuing Bank a risk participation in such Letter of Credit in an amount equal
to the product of such Lender’s Applicable Percentage times the aggregate amount
available to be drawn under such Letter of Credit.

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                    (iii) If the Borrower so requests in any applicable Letter of Credit Application, the
applicable Issuing Bank may, in its sole and absolute discretion, agree to issue a Letter of
Credit that has automatic extension provisions (each, an “Auto-Extension Letter of
Credit”); provided that any such Auto-Extension Letter of Credit must permit such
Issuing Bank to prevent any such extension at least once in each twelve-month period (commencing
with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary
thereof not later than a day (the “Non-Extension Notice Date”) in each such twelve-month
period to be agreed upon at the time such Letter of Credit is issued. Unless otherwise directed
by such Issuing Bank, the Borrower shall not be required to make a specific request to such
Issuing Bank for any such extension. Once an Auto-Extension Letter of Credit has been issued,
the Lenders shall be deemed to have authorized (but may not require) such Issuing Bank to permit
the extension of such Letter of Credit at any time to an expiry date not later than the Letter of
Credit Expiration Date; provided, however, that the applicable Issuing Bank shall
not permit any such extension if (A) such Issuing Bank has determined that it would not be
permitted, or would have no obligation, at such time to issue such Letter of Credit in its
revised form (as extended) under the terms hereof (by reason of the provisions of clause
(ii) or (iii) of Section 2.19(a) or otherwise), or (B) it has received notice
(which may be by telephone or in writing) on or before the day that is five Business Days before
the Non-Extension Notice Date from the Administrative Agent, any Lender or the Borrower that one
or more of the applicable conditions specified in Article 4 is not then satisfied, and in
each such case directing the Issuing Bank not to permit such extension.

                    (iv) If the Borrower so requests in any applicable Letter of Credit Application, the
applicable Issuing Bank may, in its sole and absolute discretion, agree to issue a Letter of
Credit that permits the automatic reinstatement of all or a portion of the stated amount thereof
after any drawing thereunder (each, an “Auto-Reinstatement Letter of Credit”). Unless
otherwise directed by the applicable Issuing Bank, the Borrower shall not be required to make a
specific request to such Issuing Bank to permit such reinstatement. Once an Auto-Reinstatement
Letter of Credit has been issued, except as provided in the following sentence, the Lenders shall
be deemed to have authorized (but may not require) such Issuing Bank to reinstate all or a
portion of the stated amount thereof in accordance with the provisions of such Letter of Credit.
Notwithstanding the foregoing, if such Auto-Reinstatement Letter of Credit permits such Issuing
Bank to decline to reinstate all or any portion of the stated amount thereof after a drawing
thereunder by giving notice of such non-reinstatement within a specified number of days after
such drawing (the “Non-Reinstatement Deadline”), the Issuing Bank shall not permit such
reinstatement if it has received a notice (which may be by telephone or in writing) on or before
the day that is five Business Days before the Non-Reinstatement Deadline from the Administrative
Agent, any Lender or the Borrower that one or more of the applicable conditions specified in
Article 4 is not then satisfied (treating such reinstatement as an L/C Credit Extension
for purposes of this clause) and, in each case, directing the Issuing Bank not to permit such
reinstatement.

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

               (c) Drawings and Reimbursements; Funding of Participations.

                    (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of a drawing
under such Letter of Credit, the applicable Issuing Bank shall notify the Borrower and the
Administrative Agent thereof. In the case of a Letter of Credit denominated in an Alternative
Currency, the Borrower shall reimburse such Issuing Bank in such Alternative Currency, unless (A)
such Issuing Bank (at its option) shall have specified in such notice that it will require
reimbursement in Dollars, or (B) in the

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absence of any such requirement for reimbursement in Dollars, the Borrower shall have
notified such Issuing Bank promptly following receipt of the notice of drawing that the Borrower
will reimburse such Issuing Bank in Dollars. In the case of any such reimbursement in Dollars of
a drawing under a Letter of Credit denominated in an Alternative Currency, such Issuing Bank
shall notify the Borrower of the Dollar Equivalent of the amount of the drawing promptly
following the determination thereof. Not later than 11:00 a.m. (Dallas, Texas time) on the date
of any payment by such Issuing Bank under a Letter of Credit to be reimbursed in Dollars, or the
Applicable Time on the date of any payment by such Issuing Bank under a Letter of Credit to be
reimbursed in an Alternative Currency (each such date, an “Honor Date”), the Borrower
shall reimburse such Issuing Bank through the Administrative Agent in an amount equal to the
amount of such drawing and in the applicable currency if Borrower has received such notice prior
to 9:00 a.m. (Dallas, Texas time) on such date, or, if such notice has not been received by the
Borrower prior to such time on such date, then not later than 11:00 a.m. (Dallas, Texas time) on
(i) the Business Day that the Borrower receives such notice, if such notice is received prior to
9:00 a.m. (Dallas, Texas time) on the day of receipt, or (ii) the Business Day immediately
following the day that the Borrower receives such notice, if such notice is not received prior to
such time on the day of receipt. If the Borrower fails to so reimburse such Issuing Bank by such
time, the Administrative Agent shall promptly notify each Lender of the Honor Date, the amount of
the unreimbursed drawing (expressed in Dollars in the amount of the Dollar Equivalent thereof in
the case of a Letter of Credit denominated in an Alternative Currency) (the “Unreimbursed
Amount”), and the amount of such Lender’s Applicable Percentage thereof. In such event, the
Borrower shall be deemed to have requested a Borrowing of Base Rate Loans to be disbursed on the
Honor Date in an amount equal to the Unreimbursed Amount, without regard to the minimum and
multiples specified in Section 2.01 for the principal amount of Base Rate Loans, but
subject to the amount of the unutilized portion of the Total Commitment and the conditions set
forth in Section 4.01 (other than the delivery of a Borrowing Request). Any notice given
by the applicable Issuing Bank or the Administrative Agent pursuant to this Section
2.19(c)(i) may be given by telephone if immediately confirmed in writing; provided
that the lack of such an immediate confirmation shall not affect the conclusiveness or binding
effect of such notice.

                    (ii) Each Lender shall upon any notice pursuant to Section 2.19(c)(i) make funds
available to the Administrative Agent for the account of the applicable Issuing Bank, in Dollars,
at the Administrative Agent’s office for Dollar-denominated payments in an amount equal to its
Applicable Percentage of the Unreimbursed Amount not later than 1:00 p.m. (Dallas, Texas time) on
the Business Day specified in such notice by the Administrative Agent, whereupon, subject to the
provisions of Section 2.19(c)(iii), each Lender that so makes funds available shall be
deemed to have made a Base Rate Loan to the Borrower in such amount. The Administrative Agent
shall remit the funds so received to the applicable Issuing Bank in Dollars.

                    (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a Borrowing of
Base Rate Loans because the conditions set forth in Section 4.01 cannot be satisfied or
for any other reason, the Borrower shall be deemed to have incurred from the applicable Issuing
Bank an L/C Borrowing in the amount of the Unreimbursed Amount that is not so refinanced, which
L/C Borrowing shall be due and payable on demand (together with interest) and shall bear interest
at the default rate pursuant to Section 2.07. In such event, each Lender’s payment to
the Administrative Agent for the account of the Issuing Bank pursuant to Section
2.19(c)(ii) shall be deemed payment in respect of its participation in such L/C Borrowing and
shall constitute an L/C Advance from such Lender in satisfaction of its participation obligation
under this Section 2.19.

                    (iv) Until each Lender funds its Loan or L/C Advance pursuant to this Section
2.19(c) to reimburse the applicable Issuing Bank for any amount drawn under any Letter of
Credit,

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interest in respect of such Lender’s Applicable Percentage of such amount shall be solely
for the account of such Issuing Bank.

                    (v) Each Lender’s obligation to make Loans or L/C Advances to reimburse the applicable
Issuing Bank for amounts drawn under Letters of Credit, as contemplated by this Section
2.19(c), shall be absolute and unconditional and shall not be affected by any circumstance,
including (A) any setoff, counterclaim, recoupment, defense or other right which such Lender may
have against such Issuing Bank, the Borrower, any Subsidiary or any other Person for any reason
whatsoever; (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or
condition, whether or not similar to any of the foregoing; provided, however,
that each Lender’s obligation to make Loans pursuant to this Section 2.19(c) is subject
to the conditions set forth in Section 4.01 (other than delivery by the Borrower of a
Borrowing Request). No such making of an L/C Advance shall relieve or otherwise impair the
obligation of the Borrower to reimburse the applicable Issuing Bank for the amount of any payment
made by such Issuing Bank under any Letter of Credit, together with interest as provided herein.

                    (vi) If any Lender fails to make available to the Administrative Agent for the account of
the applicable Issuing Bank any amount required to be paid by such Lender pursuant to the
foregoing provisions of this Section 2.19(c) by the time specified in Section
2.19(c)(ii), such Issuing Bank shall be entitled to recover from such Lender (acting through
the Administrative Agent), on demand, such amount with interest thereon for the period from the
date such payment is required to the date on which such payment is immediately available to such
Issuing Bank at a rate per annum equal to the applicable Overnight Rate from time to time in
effect. A certificate of such Issuing Bank submitted to any Lender (through the Administrative
Agent) with respect to any amounts owing under this clause (vi) shall be conclusive
absent manifest error.

               (d) Repayment of Participations.

                    (i) At any time after the applicable Issuing Bank has made a payment under any Letter of
Credit and has received from any Lender such Lender’s L/C Advance in respect of such payment in
accordance with Section 2.19(c), if the Administrative Agent receives for the account of
such Issuing Bank any payment in respect of the related Unreimbursed Amount or interest thereon
(whether directly from the Borrower or otherwise, including proceeds of Cash Collateral applied
thereto by the Administrative Agent), the Administrative Agent will distribute to such Lender its
Applicable Percentage thereof (appropriately adjusted, in the case of interest payments, to
reflect the period of time during which such Lender’s L/C Advance was outstanding) in Dollars and
in the same funds as those received by the Administrative Agent.

                    (ii) If any payment received by the Administrative Agent for the account of the applicable
Issuing Bank pursuant to Section 2.19(c)(i) is required to be returned under any of the
circumstances described in Section 8.20 (including pursuant to any settlement entered
into by such Issuing Bank in its discretion), each Lender shall pay to the Administrative Agent
for the account of such Issuing Bank its Applicable Percentage thereof on demand of the
Administrative Agent, plus interest thereon from the date of such demand to the date such amount
is returned by such Lender, at a rate per annum equal to the applicable Overnight Rate from time
to time in effect. The obligations of the Lenders under this clause shall survive the payment in
full of all obligations hereunder and the termination of this Agreement.

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

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

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

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

                    (iv) any payment by the applicable Issuing Bank under such Letter of Credit against
presentation of a draft or certificate that does not strictly comply with the terms of such
Letter of Credit; or any payment made by the applicable Issuing Bank under such Letter of Credit
to any Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the
benefit of creditors, liquidator, receiver or other representative of or successor to any
beneficiary or any transferee of such Letter of Credit, including any arising in connection with
any proceeding under the Bankruptcy Code of the United States or any other liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement,
receivership, insolvency, reorganization, or similar debtor relief laws of the United States or
other applicable jurisdictions from time to time in effect and affecting the rights of creditors;

                    (v) any adverse change in the relevant exchange rates or in the availability of the relevant
Available Currency to the Borrower or any Subsidiary or in the relevant currency markets
generally; or

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

    The Borrower shall promptly examine a copy of each Letter of Credit and each amendment
thereto that is delivered to it and, in the event of any claim of noncompliance with the
Borrower’s instructions or other irregularity, the Borrower will immediately notify the
applicable Issuing Bank. The Borrower shall be conclusively deemed to have waived any such claim
against the Issuing Bank and its correspondents unless such notice is given within five (5)
Business Days after Borrower’s receipt of a copy of such Letter of Credit or amendment thereto by
Borrower.

               (f) Role of each Issuing Bank. Each Lender and the Borrower agree that, in paying any
drawing under a Letter of Credit, the applicable Issuing Bank shall not have any responsibility to
obtain any document (other than any sight draft, certificates and documents expressly required by
the Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such
document or the authority of the Person executing or delivering any such document. None of the
applicable Issuing Bank, the Administrative Agent, any of their respective Related Parties nor any
correspondent, participant or assignee of the Issuing Bank shall be liable to any Lender for (i)
any action taken or omitted in connection herewith at the request or with the approval of the
Lenders or the Required Lenders, as applicable; (ii) any action taken or omitted in the absence of
gross negligence or willful misconduct; or (iii) the due execution, effectiveness, validity or
enforceability of any document or instrument related to any Letter of Credit or Issuer Document.
The Borrower hereby assumes

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all risks of the acts or omissions of any beneficiary or transferee with respect to its use of
any Letter of Credit; provided, however, that this assumption is not intended to,
and shall not, preclude the Borrower’s pursuing such rights and remedies as it may have against the
beneficiary or transferee at law or under any other agreement. None of the applicable Issuing
Bank, the Administrative Agent, any of their respective Related Parties nor any correspondent,
participant or assignee of the Issuing Bank shall be liable or responsible for any of the matters
described in clauses (i) through (v) of Section 2.19(e); provided,
however, that anything in such clauses to the contrary notwithstanding, the Borrower may
have a claim against such Issuing Bank, and such Issuing Bank may be liable to the Borrower, to the
extent, but only to the extent, of any direct, as opposed to consequential or exemplary, damages
suffered by the Borrower which the Borrower proves were caused by such Issuing Bank’s willful
misconduct or gross negligence or such Issuing Bank’s willful failure to pay under any Letter of
Credit after the presentation to it by the beneficiary of a sight draft and certificate(s) strictly
complying with the terms and conditions of a Letter of Credit. In furtherance and not in
limitation of the foregoing, such Issuing Bank may accept documents that appear on their face to be
in order, without responsibility for further investigation, regardless of any notice or information
to the contrary, and such Issuing Bank shall not be responsible for the validity or sufficiency of
any instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or
the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason.

                    (g) Cash Collateral. (i) Upon the request of the Administrative Agent, (A) if the
Issuing Bank has honored any full or partial drawing request under any Letter of Credit and such
drawing has resulted in an L/C Borrowing, or (B) if, as of the Letter of Credit Expiration Date,
any L/C Obligation for any reason remains outstanding, the Borrower shall, in each case,
immediately Cash Collateralize the then Outstanding Amount of all L/C Obligations.

                    (ii) The Administrative Agent may, at any time and from time to time after the initial
deposit of Cash Collateral, request that additional Cash Collateral be provided in order to
protect against the results of exchange rate fluctuations, and Administrative Agent shall, upon
request, provide Borrower with calculations showing such exchange rate fluctuations.

                    (iii) Article 6 sets forth certain additional requirements to deliver Cash
Collateral hereunder. For purposes of this Section 2.03 and Article 6, “Cash
Collateralize” means to pledge and deposit with or deliver to the Administrative Agent, for
the benefit of the applicable Issuing Bank and the Lenders, as collateral for the L/C
Obligations, cash or deposit account balances pursuant to documentation in form and substance
satisfactory to the Administrative Agent and such Issuing Bank (which documents are hereby
consented to by the Lenders). Derivatives of such term have corresponding meanings. The
Borrower hereby grants to the Administrative Agent, for the benefit of such Issuing Bank and the
Lenders, a security interest in all such cash, deposit accounts and all balances therein and all
proceeds of the foregoing. Cash Collateral shall be maintained in blocked, non-interest bearing
deposit accounts at Bank of America.

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

               (i) Conflict with Issuer Documents. In the event of any inconsistency between the
terms and conditions of this Agreement and the terms and conditions of any form of letter of credit
application or other agreement submitted by the Borrower to, or entered into by the Borrower with,
an Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall
control.

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

          Section 2.20. Increase of Commitments. By written notice sent to the Administrative
Agent (which the Administrative Agent shall promptly distribute to the Lenders), the Borrower may
request an increase of the Total Commitment: (i) by an aggregate amount equal to any integral
multiple of $5,000,000 and not less than $10,000,000 and (ii) by an aggregate amount not to exceed
$50,000,000; provided that (i) no Default or Event of Default shall have occurred
and be continuing, (ii) the Total Commitment shall not have been reduced, nor shall the Borrower
have given notice of any such reduction under Section 2.09(b), and (iii) the Total
Commitment shall not previously have been increased pursuant to this Section 2.20 more than
three (3) times. If one or more of the Lenders is not increasing its Commitment, then, with notice
to the Administrative Agent and the other Lenders, another one or more financial institutions, each
as approved by the Borrower and the Administrative Agent (a “New Lender”), may commit to
provide an amount equal to the aggregate amount of the requested increase that will not be provided
by the existing Lenders; provided, that the Commitment of each New Lender shall be at least
$5,000,000 and the maximum number of New Lenders shall be three (3). Upon receipt of notice from
the Administrative Agent to the Lenders and the Borrower that the Lenders, or sufficient Lenders
and New Lenders, have agreed to commit to an aggregate amount equal to the amount of the requested
increase (the “Increase Amount”) (or such lesser amount as the Borrower shall agree, which
shall be at least $10,000,000 and an integral multiple of $5,000,000 in excess thereof), then:
provided that no Default or Event of Default exists at such time or after giving effect to the
requested increase, the Borrower, the Administrative Agent and the Lenders willing to increase
their respective Commitments and the New Lenders (if any) shall execute and deliver an Increased
Commitment Supplement (herein so called) in the form attached hereto as Exhibit G. If all
existing Lenders shall not have provided their pro rata portion of the requested Increase Amount,
the Loans will not be held pro rata by the Lenders in accordance with the Applicable Percentages
determined hereunder. To remedy the foregoing, on the date of the effectiveness of the Increased
Commitment Supplement, the Revolving Lenders shall make advances among themselves so that after
giving effect thereto the Revolving Loans will be held by the Revolving Lenders, pro rata in
accordance with the Applicable Percentages hereunder. The advances so made by each Lender whose
Applicable Percentage has increased as a result of the changes to the Total Commitment shall be
deemed to be a purchase of a corresponding amount of the Loans of the Revolving Lender or Lenders
whose Applicable Percentages have decreased. The advances made under this Section 2.20
shall be Base Rate Loans made under each Revolving Lender’s Commitment. All advances made under
this Section 2.20 shall be made through the Administrative Agent.

          Section 2.21. Obligations of Lenders Several. The obligations of the Lenders
hereunder to make Loans, to fund participations in Letters of Credit and Swingline Loans and to
make payments pursuant to Section 8.05(c) are several and not joint. The failure of any
Lender to make any Loan, to fund any such participation or to make any payment under Section
8.05(c) on any date required hereunder shall not relieve any other Lender of its corresponding
obligation to do so on such date, and no Lender shall be responsible for the failure of any other
Lender to so make its Loan, to purchase its participation or to make its payment under Section
8.05(c).

ARTICLE 3.

REPRESENTATIONS AND WARRANTIES

          Borrower represents and warrants to each of the Lenders and Issuing Banks as follows:

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 44

 

 

          Section 3.01. Organization; Powers. Borrower and each Material Subsidiary (a) is a
corporation duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, (b) has all requisite power and authority to own its property and
assets and to carry on its business as now conducted and as proposed to be conducted, (c) is
qualified to do business in every jurisdiction where such qualification is required, except where
the failure so to qualify would not result in a Material Adverse Effect, and (d) has the corporate
power and authority to execute, deliver and perform its obligations under this Agreement and to
borrow hereunder.

          Section 3.02. Authorization. The execution, delivery and performance by the Borrower
of the Loan Documents to which it is a party, the Borrowings hereunder, the pledge of the stock of
certain Subsidiaries under the Pledge Agreement, the issuance of Letters of Credit hereunder and
the other transactions contemplated by the Loan Documents (collectively, the
“Transactions”): (a) have been duly authorized by all requisite corporate action and (b)
will not (i) violate (A) any provision of any law, statute, rule or regulation to which any
Obligated Party is subject or of the certificate of incorporation or other constituent documents or
by-laws of the Borrower or any of its Subsidiaries, (B) any order of any Governmental Authority or
(C) any provision of any Material indenture, agreement or other instrument to which the Borrower or
any of its Subsidiaries is a party or by which it or any of its property is or may be bound
(including the Senior Note Purchase Agreements and the Indebtedness limitations set forth in any
Senior Note Purchase Agreement), (ii) be in conflict with, result in a breach of or constitute
(alone or with notice or lapse of time or both) a default under any such Material indenture,
agreement or other instrument or (iii) result in the creation or imposition of any Lien upon any
property or assets of the Borrower or any of its Subsidiaries, except as contemplated by the Pledge
Agreement.

          Section 3.03. Enforceability. This Agreement constitutes a legal, valid and binding
obligation of the Borrower enforceable in accordance with its terms, as such enforceability may be
limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally and (ii) general principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or at law).

          Section 3.04. Governmental or Third Party Approvals. No action, consent or approval
of, registration or filing with or other action by any Governmental Authority or third party is or
will be required in connection with the Transactions, to the extent they relate to the Borrower.

          Section 3.05. Organization and Ownership of Shares of Subsidiaries.

               (a) Schedule 3.05 is (except as noted therein) a complete and correct list of the
Borrower’s Subsidiaries as of July 8, 2005 showing, as to each Subsidiary, the correct name
thereof, the jurisdiction of its organization, the percentage of Equity Interests in it owned by
the Borrower and each other Subsidiary, and specifying whether such Subsidiary is a Material
Subsidiary. Schedule 3.05A correctly sets forth the authorized, issued, and outstanding
Equity Interests in each Material Subsidiary. All of the outstanding Equity Interests of each
Material Subsidiary have been validly issued, are fully paid, and are nonassessable. There are no
outstanding subscriptions, options, warrants, calls, or rights (including preemptive rights) to
acquire, and no outstanding securities or instruments convertible into, any Equity Interest of any
Material Subsidiary.

               (b) Each Subsidiary identified in Schedule 3.05 is a corporation or other legal entity
duly organized, validly existing and in good standing under the laws of its jurisdiction of
organization, and is duly qualified as a foreign corporation or other legal entity and is in good
standing in each jurisdiction in which such qualification is required by law, other than those
jurisdictions as to which the failure to be so qualified or in good standing would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each
such Subsidiary has the corporate or other power and authority to own or hold under

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lease the properties it purports to own or hold under lease and to transact the business it
transacts and proposes to transact.

          Section 3.06. Financial Statements. The audited consolidated financial statements of
the Borrower and its Subsidiaries dated as of December 31, 2004 fairly present in all material
respects the consolidated financial position of the Borrower and its Subsidiaries, as of the date
of such financial statements and the consolidated results of their operations and cash flows for
the respective periods so specified and have been prepared in accordance with GAAP consistently
applied throughout the periods involved except as set forth in the notes thereto (subject, in the
case of any interim financial statements, to normal year-end adjustments). Since December 31, 2004
there has been no change in the financial condition, operations, business, properties or prospects
of the Borrower or any of its Subsidiaries except changes that individually or in the aggregate
would not reasonably be expected to have a Material Adverse Effect. As of the date hereof, there
is no fact known to the Borrower that could reasonably be expected to have a Material Adverse
Effect, except as disclosed in the audited consolidated financial statements of the Borrower and
its Subsidiaries dated as of December 31, 2004 or the most recently delivered financial statements
delivered in accordance with Section 5.18, or except as previously disclosed to the
Administrative Agent in writing.

          Section 3.07. Litigation; Observance of Statutes and Orders.

               (a) Except as described on Schedule 3.07 attached hereto, there are no actions, suits
or proceedings pending or, to the knowledge of the Borrower, threatened against or affecting the
Borrower or any Subsidiary or any property of the Borrower or any Subsidiary in any court or before
any arbitrator of any kind or before or by any Governmental Authority that, individually or in the
aggregate, would reasonably be expected to have a Material Adverse Effect.

               (b) Except as described on Schedule 3.07 attached hereto, neither the Borrower nor any
Subsidiary is in default under any agreement or instrument to which it is a party or by which it is
bound, or any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority
or is in violation of any applicable law, ordinance, rule or regulation (including Environmental
Laws) of any Governmental Authority, which default or violation, individually or in the aggregate,
would reasonably be expected to have a Material Adverse Effect.

          Section 3.08. Taxes. The Borrower and its Subsidiaries have filed all income tax
returns that are required to have been filed in any jurisdiction, and have paid all taxes shown to
be due and payable on such returns and all other taxes and assessments payable by them, to the
extent such taxes and assessments have become due and payable and before they have become
delinquent, except for any taxes and assessments (i) the amount of which is not individually or in
the aggregate Material or (ii) the amount, applicability or validity of which is currently being
contested in good faith by appropriate proceedings and with respect to which the Borrower or a
Subsidiary, as the case may be, has established adequate reserves in accordance with GAAP.

          Section 3.09. Title to Property; Leases. The Borrower and its Subsidiaries have good
and sufficient title to their respective Material properties, including all such Material
properties reflected in the audited consolidated financial statements of the Borrower and its
Subsidiaries dated as of December 31, 2004 or purported to have been acquired by the
Borrower or any Subsidiary after said date (except as sold or otherwise disposed of in the ordinary
course of business), in each case free and clear of Liens prohibited by this Agreement, except for
those defects in title and Liens that, individually or in the aggregate, would not reasonably be
expected to have a Material Adverse Effect. All Material leases are valid and subsisting and are
in full force and effect in all material respects.

          Section 3.10. Licenses, Permits, etc. The Borrower and its Subsidiaries own or
possess all licenses, permits, franchises, authorizations, patents, copyrights, service marks,
trademarks and trade names, or rights

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thereto, that are Material, without known conflict with the rights of others, except for those
conflicts that, individually or in the aggregate, would not reasonably be expected to have a
Material Adverse Effect.

          Section 3.11. Compliance with ERISA.

               (a) The Borrower and each ERISA Affiliate have operated and administered each Plan in
compliance with all applicable laws except for such instances of noncompliance as have not resulted
in and could not reasonably be expected to result in a Material Adverse Effect. Neither the
Borrower nor any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or
the penalty or excise tax provisions of the Code relating to employee benefit plans (as defined in
Section 3(3) of ERISA), and no event, transaction or condition has occurred or exists that
would reasonably be expected to result in the incurrence of any such liability by the Borrower or
any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of
the Borrower or any ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to such
penalty or excise tax provisions or to Section 401(a)(29) or 412 of the Code, other
than such liabilities or Liens as would not be, individually or in the aggregate, Material.

               (b) As of the Effective Date, the present value of the accumulated benefit obligations under
each of the Plans that are subject to Title IV of ERISA (other than Multiemployer Plans),
determined in accordance with Financial Accounting Standards Board Statement No. 87 as of the end
of such Plan’s most recently ended plan year on the basis of the actuarial assumptions specified
for funding purposes in such Plan’s most recent actuarial valuation report, did not exceed the
aggregate current value of the assets of such Plan allocable to such benefit liabilities by more
than $25,000,000 in the case of any single Plan and by more than $50,000,000 in the aggregate for
all Plans.

               (c) The Borrower and its ERISA Affiliates have not incurred withdrawal liabilities (and are
not subject to contingent withdrawal liabilities) under Section 4201 or 4204 of
ERISA in respect of Multiemployer Plans that, individually or in the aggregate, are Material.

               (d) The expected post-retirement benefit obligation (determined as of the last day of the
Borrower’s most recently ended fiscal year in accordance with Financial Accounting Standards Board
Statement No. 106, without regard to liabilities attributable to continuation coverage mandated by
Section 4980B of the Code) of the Borrower and its Subsidiaries was approximately
$14,235,000 as of December 31, 2004.

          Section 3.12. Use of Proceeds. The Borrower will apply the proceeds of the Loans to
refinance existing indebtedness, for capital expenditures, to make acquisitions, for working
capital and for other general corporate purposes. The Letters of Credit shall be issued to support
transactions of the Borrower and the Subsidiaries entered into in the ordinary course of business.

          Section 3.13. Existing Indebtedness. Neither the Borrower nor any Subsidiary is in
default, and no waiver of default is currently in effect, in the payment of any principal or
interest on any Indebtedness of the Borrower or such Subsidiary the outstanding principal amount of
which exceeds $10,000,000 in the aggregate, and, to the knowledge of the Responsible Officers of
the Borrower, no event or condition exists with respect to any Indebtedness of the Borrower or any
Subsidiary the outstanding principal amount of which exceeds $10,000,000 in the aggregate that
would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons
to declare a default or event of default or cause such Indebtedness to become due and payable
before its stated maturity or before its regularly scheduled dates of payment.

          Section 3.14. Foreign Assets Control Regulations, etc. The use of the proceeds of the
Loans will not violate the Trading with the Enemy Act, as amended, or any of the foreign assets
control regulations of the

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United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling
legislation or executive order relating thereto.

          Section 3.15. Margin Regulations; Investment Company Act; Public Utility Holding Company
Act.

               (a) The Borrower is not engaged and will not engage, principally or as one of its important
activities, in the business of purchasing or carrying margin stock (within the meaning of
Regulation U of the Board), or extending credit for the purpose of purchasing or carrying margin
stock. Following the application of the proceeds of each Borrowing or drawing under each Letter of
Credit, not more than 25% of the value of the assets (either of the Borrower only or of the
Borrower and its Subsidiaries on a consolidated basis) will be margin stock.

               (b) Neither the Borrower nor any Subsidiary is subject to regulation under the Investment
Company Act of 1940, as amended, or the Public Utility Holding Company Act of 1935, as amended.

          Section 3.16. No Material Misstatements. No report, financial statement or other
information furnished by or on behalf of the Borrower to the Administrative Agent or any Lender
pursuant to or in connection with this Agreement contains any material misstatement of fact or
omits any material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

          Section 3.17. Environmental Compliance. The Borrower and its Subsidiaries conduct in
the ordinary course of business a review of the effect of existing Environmental Laws and claims
alleging potential liability or responsibility for violation of any Environmental Law on their
respective businesses, operations and properties, and as a result thereof the Borrower has
reasonably concluded that such Environmental Laws and claims could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect, except as described on
Schedule 3.17.

          Section 3.18. Insurance. The properties of the Borrower and its Subsidiaries are
insured with financially sound and reputable insurance companies, in such amounts (after giving
effect to any self-insurance (if adequate reserves are maintained with respect thereto) compatible
with the following standards), with such deductibles and covering such casualties and contingencies
as are customarily carried by companies of established reputations engaged in the same or similar
business and similarly situated.

          Section 3.19. Solvency. The Borrower both individually and on a consolidated basis
with its Subsidiaries: (i) owns and will own assets the fair saleable value of which are (A)
greater than the total amount of its liabilities (including contingent liabilities) and (B) greater
than the amount that will be required to pay probable liabilities of then existing debts as they
become absolute and matured considering all financing alternatives and potential asset sales
reasonably available to it; (ii) has capital that is not unreasonably small in relation to its
business as presently conducted; and (iii) does not intend to incur and does not believe that it
will incur debts beyond its ability to pay such debts as they become due.

          Section 3.20. Perfected Security Interest. The Pledge Agreement creates a valid and
enforceable lien and security interest in the collateral covered thereby and Collateral Agent, upon
taking possession of the stock certificates to be delivered to Collateral Agent pursuant to the
Pledge Agreement (with stock powers executed in blank) will have a perfected, first-lien priority
security interest in such Equity Interests evidenced by such stock certificates.

          Section 3.21. Senior Debt. The Loans, the interest thereon, and the L/C Obligations
are “Senior Indebtedness” under the terms of the Subordinated Notes.

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ARTICLE 4.

CONDITIONS OF LENDING

     Section 4.01. All Borrowings. The obligations of the Lenders to make the Loans on or
after the Effective Date and the agreement of an Issuing Bank to issue, amend, renew or extend
Letters of Credit are subject to the satisfaction of the following conditions on the date of each
Borrowing, or issuance, amendment or other modification:

          (a) The Administrative Agent shall have received a notice of such Borrowing, issuance,
amendment or other modification as required by Section 2.03 or 2.19(a), as
applicable.

          (b) The representations and warranties set forth in Article 3 shall be true and
correct in all material respects on and as of the date of such Borrowing, issuance, amendment or
other modification with the same effect as though made on and as of such date, except to the extent
such representations and warranties expressly relate to an earlier date.

          (c) At the time of and immediately after such Borrowing, issuance, amendment or other
modification, no Event of Default or Default shall have occurred and be continuing or would result
from such Borrowing.

          (d) At the time of and immediately after such Borrowing, issuance, amendment or other
modification, the aggregate Revolving Exposures of all Lenders shall not exceed the Total
Commitment, the Dollar Equivalent of the aggregate principal amount of all outstanding Australian
Dollar Loans shall not exceed $25,000,000 and the Dollar Equivalent of the aggregate principal
amount of all outstanding Euro Loans shall not exceed $25,000,000.

Each Borrowing and each issuance, amendment or other modification of a Letter of Credit shall be
deemed to constitute a representation and warranty by the Borrower on the date of such Borrowing,
issuance, amendment or other modification as to the matters specified in paragraphs (b),
(c) and (d) of this Section 4.01.

     Section 4.02. Effective Date. The effectiveness of the amendment and restatement of
the Prior Credit Agreement as contemplated hereby and the effectiveness of the obligations of the
Lenders to make Loans hereunder on the Effective Date and the agreement of an Issuing Bank to
issue, amend, renew or extend Letters of Credit are subject to the following conditions being
satisfied on or before the date hereof, and such obligations shall not be effective until the
date that each such condition is satisfied (the “Effective Date”):

          (a) The Administrative Agent shall have received the favorable written opinion of counsel to
the Borrower to the effect set forth in Exhibit C hereto dated the Effective Date and
addressed to the Lenders and satisfactory to the Lenders and to Bracewell & Giuliani LLP, counsel
for the Administrative Agent (and the Borrower hereby instructs its counsel to deliver such opinion
to the Administrative Agent for the benefit of the Lenders).

          (b) The Administrative Agent shall have received all of the following in form and substance
satisfactory to the Administrative Agent and each of the Lenders: (i) a certificate as to the
existence and good standing of each Obligated Party issued by the Secretary of State or other
applicable Governmental Authority of its jurisdiction of incorporation or organization as of a
recent date; (ii) a certificate of the Secretary or an Assistant Secretary or other authorized
officer of each Obligated Party dated the Effective Date and certifying (A) that attached thereto
is a true and complete copy (or identifying a previously delivered copy) of its by–laws or other
similar internal governing document as in effect on the Effective Date and at all times since the
date of the resolutions described in clause (B) below, (B) with respect to each Obligated
Party, that

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attached thereto is a true and complete copy of its resolutions or similar evidence of
authority, duly adopted by its board of directors (or similar governing authority) authorizing its
execution, delivery and performance of the Loan Documents to which it is a party and the
Transactions, and that such resolutions or similar evidence of authority have not been modified,
rescinded or amended and are in full force and effect, (C) that attached thereto is a true and
complete copy (or identifying a previously delivered copy) of the certificate of incorporation or
other similar internal governing document, as in effect as of the Effective Date, of each Obligated
Party, and (D) as to the incumbency and specimen signature of each of its representatives executing
any Loan Document on its behalf; (iii) a certificate of another of its representatives as to the
incumbency and specimen signature of the Secretary, Assistant Secretary or other authorized officer
executing the certificate pursuant to clause (ii) above; and (iv) such other documentation
as the Lenders or the Administrative Agent shall reasonably request.

          (c) The Administrative Agent shall have received a certificate, dated the Effective Date and
signed by a Senior Financial Officer of the Borrower, confirming compliance with the conditions
precedent set forth in paragraphs (b), (c) and (d) of Section 4.01.

          (d) The Administrative Agent shall have received (i) a pay-off letter from JPMorgan Chase
Bank, N.A. for all sums due under the Prior Credit Agreement, in form and substance satisfactory to
the Administrative Agent, and (ii) all Fees and other amounts due and payable on or prior to the
Effective Date.

          (e) The Administrative Agent shall have received: (i) the Subsidiary Guaranty in the form
attached hereto as Exhibit D executed by all the Guarantors; (ii) the Intercreditor
Agreement in the form attached hereto as Exhibit F signed on behalf of all the Obligated
Parties and the Noteholders (as defined therein); (iii) the Pledge Agreement in the form attached
as an exhibit to the Intercreditor Agreement signed on behalf of the Borrower, Lennox Global Ltd.
and the Collateral Agent; (iv) the certificates identified under the Pledge Agreement, in each case
accompanied by undated stock powers executed in blank or evidence that arrangements satisfactory to
the Administrative Agent shall have been made for the delivery of such certificates and stock
powers; (v) promissory notes payable to each Lender requesting a promissory note in form and
substance satisfactory to the Administrative Agent executed by the Borrower; and (vi) such other
documentation or evidence as the Administrative Agent shall have requested in order to create,
perfect or protect the security interests and liens created pursuant to the Pledge Agreement under
the laws of the United States of America and the applicable laws of Canada.

          (f) The Administrative Agent shall have received evidence that all Persons who have the
benefit of the provisions similar or substantially similar to the terms of Section 5.06 of
the Prior Credit Agreement (including the holders of the notes under the Senior Note Purchase
Agreements) shall have consented to the terms of this Agreement and waived any default arising as a
result of the execution and delivery of this Agreement and such provisions.

          (g) The Administrative Agent shall have received, in form and substance reasonably
satisfactory to the Administrative Agent, all environmental reports and such other reports, audits
or certificates as it may reasonably request.

     Without limiting the generality of the provisions of Section 7.04, for purposes of
determining compliance with the conditions specified in this Section 4.02, each Lender that
has signed this Agreement shall be deemed to have consented to, approved or accepted or to be
satisfied with, each document or other matter required thereunder to be consented to or approved by
or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the closing date specifying its objection thereto.

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ARTICLE 5.

AFFIRMATIVE AND NEGATIVE COVENANTS

     The Borrower covenants and agrees that, so long as any Lender has any Commitment hereunder or
any obligations to acquire or fund any participation in any Swingline Loan or Letter of Credit or
the Swingline Lender is obligated to make Swingline Loans or Bank of America is obligated to issue
Letters of Credit hereunder or any amount payable hereunder remains unpaid:

     Section 5.01. Compliance with Laws. The Borrower will and will cause each of its
Subsidiaries to (i) comply in all material respects with all laws, ordinances or governmental rules
or regulations to which each of them is subject, including, without limitation, Environmental Laws,
and (ii) obtain and maintain in effect all licenses, certificates, permits, franchises and other
governmental authorizations necessary to the ownership of their respective properties or to the
conduct of their respective businesses, except, in the case of clause (ii) above, to the
extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.

     Section 5.02. Insurance. The Borrower will and will cause each of its Subsidiaries to
maintain, with financially sound and reputable insurers, insurance with respect to their respective
properties and businesses against such casualties and contingencies, of such types, on such terms
and in such amounts (including deductibles, co–insurance and self–insurance, if adequate reserves
are maintained with respect thereto) as is customary in the case of entities of established
reputations engaged in the same or a similar business and similarly situated.

     Section 5.03. Maintenance of Properties and Lines of Business. The Borrower will and
will cause each of its Subsidiaries to maintain and keep, or cause to be maintained and kept, their
respective properties in good repair, working order and condition (other than ordinary wear and
tear), so that the business carried on in connection therewith may be properly conducted at all
times; provided that this Section shall not prevent the Borrower or any Subsidiary from
discontinuing the operation and the maintenance of any of its properties if such discontinuance is
desirable in the conduct of its business and the Borrower has concluded that such discontinuance
would not result in a Default or an Event of Default (as a result of a violation of Section
5.11 or
otherwise) and would not, individually or in the aggregate, have a Material Adverse Effect.
The Borrower will not and will not permit any of its Subsidiaries to engage in any line of business
other than such lines of business in which it is presently engaged and those businesses reasonably
related thereto.

     Section 5.04. Payment of Taxes. The Borrower will and will cause each of its
Subsidiaries to file all income tax or similar tax returns required to be filed in any jurisdiction
and to pay and discharge all taxes shown to be due and payable on such returns and all other taxes,
assessments, governmental charges, or levies payable by any of them, to the extent such taxes and
assessments have become due and payable and before they have become delinquent, provided that
neither the Borrower nor any Subsidiary need pay any such tax or assessment if the amount,
applicability or validity thereof is contested by the Borrower or such Subsidiary on a timely basis
in good faith and in appropriate proceedings, and the Borrower or a Subsidiary has established
adequate reserves therefor in accordance with GAAP on the books of the Borrower or such Subsidiary.

     Section 5.05. Corporate Existence, etc. The Borrower will at all times preserve and
keep in full force and effect its corporate existence. Subject to Sections 5.10 and
5.11, the Borrower will at all times preserve and keep in full force and effect each of its
Subsidiaries’ corporate existence and all rights and franchises of the Borrower and its
Subsidiaries necessary for the conduct of their respective businesses, except to the extent that
failure to do so with respect to a Subsidiary which is not a Material Subsidiary could not
reasonably be expected to have a Material Adverse Effect.

     Section 5.06. Intentionally Deleted.

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     Section 5.07. Covenant to Guarantee and Secure Loans Equally.

          (a) If any Subsidiary of the Borrower shall guarantee the obligations of the Borrower under
the Senior Note Purchase Agreements or any other agreement creating or evidencing Indebtedness of
the Borrower, the Borrower shall cause to be made effective provision whereby the Loans and other
obligations of the Borrower under the Loan Documents will be guaranteed equally and ratably with
any and all other obligations thereby guaranteed, with the documentation for such guarantee to be
reasonably satisfactory to the Required Lenders. Any violation of Section 5.12 will
constitute an Event of Default, whether or not provision is made for an equal and ratable guarantee
pursuant to this Section 5.07.

          (b) If the Borrower shall create, assume or permit to exist any Lien upon any of its property
or assets, or permit any Subsidiary to create, assume or permit to exist any Lien upon any of its
property or assets, whether now owned or hereafter acquired, other than those Liens permitted by
the provisions of Section 5.13, the Borrower shall make or cause to be made effective
provision whereby the Loans and other obligations under the Loan Documents will be secured equally
and ratably with any and all other obligations thereby secured, with the documentation for such
security to be reasonably satisfactory to the Required Lenders and, in any such case, the Loans and
such other obligations shall have the benefit, to the fullest extent that, and with such priority
as, the holders thereof may be entitled under applicable law, of an equitable Lien on such
property. Any violation of Section 5.13 will constitute an Event of Default, whether or
not provision is made for an equal and ratable Lien pursuant to this Section 5.07.

     Section 5.08. Environmental Matters.

          (a) The Borrower will and will cause each of its Subsidiaries to comply in all material
respects with all applicable Environmental Laws if, individually or in the aggregate, failure to
comply
therewith could reasonably be expected to have a material adverse effect on the financial
condition or results of operations of the Borrower or the Borrower and its Subsidiaries, taken as a
whole.

          (b) The Borrower will not and will not permit any of its Subsidiaries to cause or allow any
Hazardous Substance to be present at any time on, in, under or above any real property or any part
thereof in which the Borrower or any Subsidiary has a direct interest (including ownership thereof
or any arrangement for the lease, rental or other use thereof, or the retention of any mortgage or
security interest therein or thereon), except in a manner and to an extent that is in compliance in
all material respects with all applicable Environmental Laws or that could not reasonably be
expected to have a material adverse effect on the financial condition or results of operations of
the Borrower or the Borrower and its Subsidiaries, taken as a whole.

     Section 5.09. Transactions with Affiliates. The Borrower will not permit any
Subsidiary to enter into directly or indirectly any Material transaction or Material group of
related transactions (including the purchase, lease, sale or exchange of properties of any kind or
the rendering of any service) with any Affiliate (other than the Borrower or another Subsidiary),
except pursuant to the reasonable requirements of the Borrower’s or such Subsidiary’s business and
upon fair and reasonable terms no less favorable to the Borrower or such Subsidiary than would be
obtainable in a comparable arm’s–length transaction with a Person not an Affiliate.

     Section 5.10. Merger, Consolidation, etc. The Borrower will not, and will not permit
any Subsidiary to, consolidate with or merge with or into any other Person or permit any other
Person to merge or consolidate with it or convey, transfer or lease substantially all of its assets
in a single transaction or series of related transactions to any Person or dissolve or liquidate;
except that if, at the time thereof and immediately after giving effect thereto, no Default or
Event of Default shall have occurred and be continuing: (i) a Domestic Subsidiary may merge into
the Borrower or another Domestic Subsidiary that is Wholly-Owned; provided that in any such
merger transaction involving the Borrower, the Borrower shall be the surviving

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Person; (ii) any Foreign Subsidiary may merge into another Foreign Subsidiary that is Wholly–Owned (other than the
Insurance Subsidiary); (iii) Borrower may merge with another Person in an acquisition permitted by
Section 5.23 if the Borrower is the surviving Person; (iv) any Subsidiary may merge with
another Person in an acquisition permitted by Section 5.23 if such Subsidiary is the
surviving Person or if the surviving Person becomes a Subsidiary and the Borrower or such Person
complies with the obligations hereunder applicable to new Material Subsidiaries to the extent
applicable to such surviving Person; (v) the Borrower and any Subsidiary may make Transfers
permitted by Section 5.11; and (vi) any Subsidiary who has transferred all of its assets in
a transaction permitted by Section 5.11 may thereafter dissolve or liquidate; provided,
that in the case of any of the transactions described in the foregoing clauses (i) through
(vi) which would involve or result in a Change of Control, the Borrower shall have complied
with Section 2.10.

     Section 5.11. Sale of Assets, etc. The Borrower will not, and will not permit any of
its Subsidiaries to, make any Transfer except:

          (a) Transfers of either (i) inventory held for sale, or (ii) equipment, fixtures, supplies or
materials no longer required in the operation of the business of the Borrower or such Subsidiary or
that is obsolete, and, in the case of any Transfer described in clause (i) or (ii),
such Transfer is in the ordinary course of business; and

          (b) Transfers (i) by any Domestic Subsidiary to the Borrower or another Domestic Subsidiary
that is Wholly-Owned, (ii) by a Foreign Subsidiary to the Borrower or another Subsidiary that is
Wholly-Owned, and (iii) by the Borrower to a Material Subsidiary that is a Domestic Subsidiary and
Wholly-Owned; and

          (c) Transfers that constitute either: (i) the sale of receivables, or undivided interests
therein, together with all collections and other proceeds thereof and any collateral securing the
payment thereof, pursuant to a Receivable Securitization permitted by Section 5.26, or (ii)
the sale of all or a portion of any business segment other than the domestic heating (with the
exception of the hearth products division and the advanced distributor products division) and
cooling manufacturing segment and the domestic refrigeration segment; provided, in the case
of this clause (ii), that (A) the aggregate book value of all business segments or portions
thereof Transferred in reliance on this clause (ii) in any calendar year shall not exceed
10% of the value of the consolidated assets of the Borrower and its Subsidiaries as of the last day
of the immediately preceding calendar year and (B) all business segments or portions thereof
Transferred in reliance on this clause (ii) in any calendar year, in the aggregate, shall
not have contributed greater than 5% of EBITDA for the immediately preceding calendar year;
provided, further, in the case of each of the foregoing clauses (i) and
(ii), that at the time of such Transfer, no Default or Event of Default shall exist or would
result from such Transfer; and

          (d) Transfers not otherwise permitted under this Section 5.11; provided that
(i) at the time of such Transfer, no Default shall exist or would result from such Transfer, (ii)
the aggregate book value of all property Transferred in reliance on this clause (d) in any
calendar year shall not exceed 5% of the value of the consolidated assets of the Borrower and its
Subsidiaries as of the last day of the immediately preceding calendar year, and (iii) all property
Transferred in reliance on this clause (d) in any calendar year, in the aggregate, shall
not have contributed greater than 5% of EBITDA for the immediately preceding calendar year.

     Section 5.12. Indebtedness. The Borrower will not, and will not permit any Subsidiary
to, directly or indirectly, create, incur, assume, guarantee, or otherwise become directly or
indirectly liable with respect to any Indebtedness except the following, provided that in
each of the following cases, both prior to and immediately after giving effect to the creation,
incurrence, assumption, or guarantee thereof or the Company’s or such Subsidiary’s otherwise
becoming directly or indirectly liable with respect thereto, no Default or Event of Default shall
exist:

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          (a) Indebtedness under the Loan Documents;

          (b) Indebtedness relating to the Senior Note Purchase Agreements and the Subordinated Notes
and extensions, renewals, refinancings and replacements of any such Indebtedness that (i) do not
increase the outstanding principal amount thereof or result in an earlier maturity date or
decreased weighted average life thereof; and (ii) do not contain financial covenants and other
terms that are more restrictive than those contained in this Agreement;

          (c) Other Indebtedness existing on the date hereof and set forth in Schedule 5.12 and
extensions, renewals, refinancings and replacements of any such Indebtedness that do not increase
the outstanding principal amount thereof or result in an earlier maturity date or decreased
weighted average life thereof;

          (d) Indebtedness of Domestic Subsidiaries owed to any other Domestic Subsidiary that is
Wholly–Owned or the Borrower;

          (e) Intentionally Deleted;

          (f) Intentionally Deleted;

          (g) Secured Indebtedness not otherwise permitted under this Section 5.12 of any
Foreign Subsidiary; provided that the aggregate outstanding amount of all Indebtedness
permitted under the provisions of this subclause (g) shall not at any time exceed
$50,000,000;

          (h) Guarantees by the Borrower with respect to (i) Indebtedness related to Borrower’s joint
ventures, provided that the Dollar Equivalent of the aggregate amount so Guaranteed by the
Borrower shall at no time exceed $50,000,000, and (ii) Indebtedness of third parties other than
Subsidiaries; provided that the Dollar Equivalent of the aggregate amount so Guaranteed by
the Borrower shall at no time exceed $15,000,000; and provided further that the Dollar
Equivalent of the aggregate amount guaranteed under such Guarantees by the Borrower under the
provisions of this subclause (h) shall at no time exceed $50,000,000;

          (i) Guarantees by the Borrower with respect to Indebtedness of any of its Wholly–Owned
Subsidiaries, by any Domestic Subsidiary of Indebtedness of any other Domestic Subsidiary that is
Wholly–Owned and by any Foreign Subsidiary of Indebtedness of any other Foreign Subsidiary that is
Wholly–Owned;

          (j) Indebtedness of the Borrower or any Subsidiary owing to the Insurance Subsidiary;
provided that the aggregate outstanding amount of all such Indebtedness shall not at any
time exceed (i) $35,000,000 for the financing of the purchase of the Borrower’s headquarters
located at 2140 Lake Park Blvd. in Richardson, Texas, provided that in no event shall the
total Indebtedness owing to the Insurance Subsidiary or any other Persons under this clause
(j)(i) and clause (m) below exceed $35,000,000, and (ii) $50,000,000 for all other
purposes including the financing of the Borrower’s headquarters building located at 2100 Lake Park
Blvd. in Richardson, Texas, provided that no portion of the $50,000,000 shall be used for the
potential financing of the purchase of the Borrower’s headquarters located at 2140 Lake Park Blvd.
in Richardson, Texas;

          (k) Indebtedness arising in connection with Swap Agreements permitted by Section 5.25;

          (l) Indebtedness of the Borrower in an amount not exceeding $30,000,000 in the aggregate for
the purchase of corporate airplanes;

          (m) Indebtedness of the Borrower in an amount not exceeding $35,000,000 in the aggregate for
the purchase of Borrower’s headquarters building at 2140 Lake Park Boulevard in Richardson,

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 54

 

 

Texas,
which Indebtedness may be owing to the Insurance Subsidiary (as permitted by clause (j)
above) or to another Person, but in no event shall the total Indebtedness owing to the Insurance
Subsidiary or any other Persons under clause (j)(i) above or this clause (m) exceed
$35,000,000;

          (n) unsecured Indebtedness of the Borrower or any Subsidiary for borrowed money (in addition
to any of the other Indebtedness permitted by the other provisions of this Section 5.12)
and any corresponding Guarantee thereof by any Subsidiary (other than the Insurance Subsidiary),
provided,

               (i) such Indebtedness is incurred in compliance with the other provisions hereof (including,
the restrictions contained in Section 5.13 (Liens) and 5.16 (Limitation on
Restrictive Agreements));

               (ii) such Indebtedness is on terms no more restrictive than the terms contained in this
Agreement; and

               (iii) the Borrower provides evidence to the Administrative Agent that the Borrower is in
compliance with the financial covenants set forth in Section 5.15 calculated on a pro
forma basis prior to the incurrence of such Indebtedness but after giving effect thereto and,
when calculated with respect to the financial covenants in Section 5.15(a) and
(b), for the four fiscal quarters most recently ended and after giving effect to the
incurrence of such Indebtedness as if such Indebtedness existed on the first day of the
calculation period with an interest rate equal for the entire term of such period to the interest
rate to be in existence on the date of the incurrence of such Indebtedness;

          (o) Indebtedness of the Borrower or any Subsidiary incurred pursuant to private placement
transactions in an aggregate amount not to exceed the Private Placement Basket, so long as (i) such
Indebtedness is on terms that are no more restrictive than those contained in this Agreement (ii)
such new noteholder executes and delivers a joinder agreement to the Intercreditor Agreement in the
form attached thereto; and (iii) at the time of the incurrence of any such Indebtedness and
immediately after giving pro forma effect thereto as if such Indebtedness had been incurred at the
beginning of the most recently ended four full fiscal quarters for which financial statements have
been delivered pursuant to Section 5.18 immediately preceding the date of such incurrence,
Borrower is in compliance with Section 5.15;

          (p) Indebtedness in respect of Capital Leases; provided, however, that the
aggregate amount of all such Indebtedness at any one time outstanding shall not exceed $25,000,000;
and

          (q) Other unsecured indebtedness of the Borrower or any Subsidiary not otherwise permitted by
this Section 5.12 not to exceed $50,000,000.

Notwithstanding the foregoing, the Borrower will not permit the Insurance Subsidiary to directly or
indirectly create, incur, assume, guarantee, or otherwise become directly or indirectly liable with
respect to any Indebtedness except for liabilities arising in the ordinary course of business in
connection with insurance and reinsurance policies it has entered into or may enter into in the
ordinary course of business.

     Section 5.13. Liens. The Borrower will not, and will not permit any of its
Subsidiaries to, directly or indirectly create, incur, assume or permit to exist (upon the
happening of a contingency or otherwise) any Lien on or with respect to any property or asset
(including, without limitation, any document or instrument in respect of goods or accounts
receivable) of the Borrower or any such Subsidiary, whether now owned or held or hereafter
acquired, or any income or profits therefrom, or assign or otherwise convey any right to receive
income or profits, except:

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          (a) Liens for taxes, assessments or other governmental charges the payment of which is not at
the time required by Section 5.04;

          (b) statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, materialmen
and other similar Liens, in each case, incurred in the ordinary course of business for sums not yet
due, and any such Liens which are being contested in good faith and by appropriate proceedings
diligently conducted, if adequate reserves with respect thereto are maintained on the books of the
applicable Person in accordance with GAAP;

          (c) Liens (other than any Lien imposed by ERISA) incurred or deposits made in the ordinary
course of business (i) in connection with workers’ compensation, unemployment insurance and other
types of social security or retirement benefits, or (ii) to secure (or to obtain letters of credit
that secure) the performance of tenders, statutory obligations, surety bonds, appeal bonds, bids,
leases (other than Capital Leases), performance bonds, purchase, construction or sales contracts
and other similar obligations, in each case not incurred or made in connection with the borrowing
of money, the obtaining of advances or credit or the payment of the deferred purchase price of
property;

          (d) Liens securing judgments for the payment of money that do not constitute an Event of
Default under Article 6(i);

          (e) leases or subleases granted to others, easements, rights–of–way, restrictions and other
similar charges or encumbrances, in each case incidental to, and not interfering with, the ordinary
conduct of the business of the Borrower or any of its Subsidiaries, provided that such Liens do
not, in the aggregate, materially detract from the value of such property;

          (f) Liens on property or assets of the Borrower (other than the Equity Interests of the
Material Subsidiaries) or any of its Subsidiaries securing Indebtedness or other obligations owing
to the Borrower or to a Wholly–Owned Subsidiary permitted by Section 5.12;

          (g) (i) Liens contemplated by financing statements filed in respect of operating leases, (ii)
Liens granted under Capital Leases in existence as of the Effective Date (iii) other Liens existing
on the Effective Date and described on Schedule 5.13 and (iv) Liens granted to the
Collateral Agent under the Pledge Agreement;

          (h) Liens granted in connection with Receivable Securitizations permitted by Section
5.26 on the receivables sold pursuant thereto (together with all collections and other proceeds
thereof and any collateral securing the payment thereof), all right title and interest in and to
the lockboxes and other collection accounts in which proceeds of such receivables are deposited,
the rights under the documents executed in connection with such Receivable Securitizations and in
the Equity Interests issued by any special purpose entity organized to purchase the receivables
thereunder;

          (i) any Lien existing on any property prior to the acquisition thereof by the Borrower or any
Subsidiary or existing on any property or asset of any Person that becomes a Subsidiary after the
date hereof prior to the time such Person becomes a Subsidiary; provided that (i) such Lien is not
created in contemplation of or in connection with such acquisition or such Person becoming a
Subsidiary, as the case may be, (ii) such Lien shall not apply to any other property or assets of
the Borrower or any Subsidiary and (iii) such Lien shall secure only those obligations which it
secures on the date of such acquisition or the date such Person becomes a Subsidiary, as the case
may be and extensions, renewals, refinancings and replacements thereof that do not increase the
outstanding principal amount thereof;

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          (j) any Lien renewing, extending or replacing any Lien permitted by Subsections (g) and
(i) above, provided that (i) the principal amount of Indebtedness or other obligation secured
by such Lien immediately prior to such extension, renewal or replacement is not increased or the
maturity thereof reduced, (ii) such Lien is not extended to any other property, and (iii)
immediately after such extension, renewal or replacement no Default or Event of Default would exist
or would result therefrom; and

          (k) purchase money Liens on corporate airplanes granted in connection with the purchase of
such corporate airplanes pursuant to Section 5.12(l);

          (l) (A) purchase money Liens granted in connection with Indebtedness permitted under
Sections 5.12(m); (B) Liens granted on the assets of Foreign Subsidiaries in connection
with Indebtedness permitted under Section 5.12(g); and (C) Liens granted in connection with
Indebtedness permitted under Section 5.12(o) provided that (i) such Liens are pari
passu with the Liens granted to the Collateral Agent or Administrative Agent for the benefit of the
Lenders, (ii) the new lienholder(s) execute and deliver a joinder agreement to the Intercreditor
Agreement in the form attached thereto, and (ii) no Liens shall be permitted in connection with
Indebtedness permitted under Section 5.12(o) if the Collateral has been released pursuant
to the terms of the Pledge Agreement.

          (m) Liens securing Indebtedness permitted under Section 5.12(p); provided that
such Liens do not at any time encumber any property other than the property financed by such
Indebtedness; and

          (n) other Liens not otherwise permitted by Subsections (a) through (m) above,
provided that (i) the Dollar Equivalent of the fair market value of the assets subject to
such other Liens shall not exceed $10,000,000, (ii) such Liens secure Indebtedness of the Borrower
or a Subsidiary permitted hereby, (iii) the Dollar Equivalent of the aggregate principal amount of
the Indebtedness secured by all Liens granted under the
permissions of this clause (n) does not exceed $10,000,000 and (iv) immediately after
giving effect to the creation thereof, no Default or Event of Default shall exist.

     For purposes of this Section 5.13, any Person becoming a Subsidiary after the date of
this Agreement shall be deemed to have incurred all of its then outstanding Liens at the time it
becomes a Subsidiary, and any Person extending, renewing or replacing any Indebtedness secured by
any Lien shall be deemed to have incurred such Lien at the time of such extension, renewal or
replacing.

     Section 5.14. Restricted Payments. The Borrower will not, and will not permit any of
its Subsidiaries to, declare or make, or incur any liability to declare or make, any Restricted
Payment, except: (a) Subsidiaries may declare and pay dividends ratably with respect to the Equity
Interests they have issued and (b) the Borrower may declare and pay dividends and repurchase shares
of its common stock during any fiscal quarter as long as on the date of determination:

               (i) no Default or Event of Default exists or would result therefrom; and

               (ii) the sum of (A) the amount of the dividends or repurchases proposed to be made in such
fiscal quarter, plus (B) the aggregate amount of the dividends and repurchases previously made by
Borrower in the same fiscal quarter, and (C) the aggregate amount of all dividends and
repurchases made in the prior three fiscal quarters does not exceed an amount equal to the
greater of (1) fifty percent (50%) of Consolidated Net Income (calculated for the four fiscal
quarters then most recently ended prior to the date of determination) or (2) $40,000,000.

     Additionally, Borrower may repurchase its issued and outstanding stock in the event of the
conversion of Subordinated Notes in an amount not to exceed fifty percent (50%) of the principal
amount of the Subordinated Notes so converted.

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     Section 5.15. Financial Covenants. The Borrower will perform and observe the
following financial covenants:

          (a) Coverage Ratio. As of the end of each fiscal quarter, commencing with the fiscal
quarter ending June 30, 2005, the Borrower shall not permit the ratio of Cash Flow for the four (4)
fiscal quarters then ending to its Net Interest Expenses for such period to be less than 3.00 to
1.00. As used herein the following terms have the following meanings:

     “Cash Flow” means, for any period, the total of the following for the
Borrower and the Subsidiaries calculated on a consolidated basis without duplication
for such period in accordance with GAAP: (A) EBITDA; minus (B) capital
expenditures.

     “Net Interest Expenses” means, for any period and any Person, the sum
of the following calculated on a consolidated basis without duplication in
accordance with GAAP: (a) Interest Expenses minus (b) total cash interest
income.

          (b) Consolidated Indebtedness to Adjusted EBITDA. As of the last day of each fiscal
quarter, commencing with the fiscal quarter ending June 30, 2005, the Borrower shall not permit the
Debt to Adjusted EBITDA Ratio to exceed 3.50 to 1.00.

          (c) Consolidated Net Worth. The Borrower will not permit Consolidated Net Worth as of
any date to be less than the sum of (i) $396,624,000.00; plus (ii) 50% of the sum of (A)
its aggregate Consolidated Net Income (but only if a
positive number) for the period beginning April 1, 2005 and ending as of the most recently
completed fiscal quarter prior to the date of determination minus (B) any non-recurring and
non-cash charges not included in determining such Consolidated Net Income under clause (g)
of the definition thereof; plus (iii) 100% of the net proceeds from issuance of any Equity
Interests by Borrower occurring after the Effective Date (including, or in addition, any increase
in equity attributable to the conversion of the Borrower’s Subordinated Notes to common stock).

     Section 5.16. Limitation on Restrictive Agreements. The Borrower will not, nor will
it permit any Subsidiary to, directly or indirectly, enter into, incur or permit to exist any
agreement or other arrangement that prohibits, restricts or imposes any condition upon (a) the
ability of the Borrower or any Subsidiary to create, incur or permit to exist any Lien upon any of
its property or assets, or (b) the ability of any Subsidiary to pay dividends or other
Distributions with respect to any Equity Interests issued by it or to make or repay loans or
advances to the Borrower or any other Subsidiary or to be obligated under a Guaranty with respect
to Indebtedness of the Borrower or any other Subsidiary; provided that: (i) the foregoing
shall not apply to restrictions and conditions imposed by law or by any Loan Document, the Senior
Note Purchase Agreements or Subordinated Notes; (ii) the foregoing shall not apply to restrictions
and conditions existing on the date hereof identified on Schedule 5.16 (but shall apply to
any modification of any such restriction or condition expanding the scope thereof); (iii) the
foregoing shall not apply to customary restrictions and conditions contained in agreements relating
to the sale of a Subsidiary pending such sale, provided such restrictions and conditions apply only
to the Subsidiary that is to be sold and such sale is permitted hereunder; (iv) clause (a)
of the foregoing shall not apply to restrictions or conditions imposed by any agreement relating to
secured Indebtedness permitted by this Agreement, including any Indebtedness under a Receivable
Securitization, if such restrictions or conditions apply only to the property or assets securing
such Indebtedness; (v) clause (a) of the foregoing shall not apply to customary provisions
in leases and other contracts restricting the assignment thereof; (vi) clause (b) of the
foregoing shall not apply to customary provisions contained in agreements entered into in
connection with Indebtedness owed by any Foreign Subsidiary that impose restrictions on the ability
of the Foreign Subsidiary thereunder to declare, pay or set aside funds for the making of any
Distribution in respect of the Equity Interests issued by such Foreign Subsidiary; and (vii)
clause (b) of the

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foregoing shall not apply to customary provisions contained in agreements
entered into in connection with Receivable Securitizations permitted hereby that impose
restrictions on the ability of the special purpose entity party thereto to declare, pay or set
aside funds for the making of any Distribution in respect of the Equity Interests issued by such
entity.

     Section 5.17. Preferred Stock of Subsidiaries. The Borrower will not permit any
Subsidiary to issue or permit to remain outstanding any Preferred Stock unless such Preferred Stock
is issued to and at all times owned and held by the Borrower or a Wholly–Owned Subsidiary.

     Section 5.18. Financial and Business Information. The Borrower will furnish to the
Administrative Agent:

          (a) Quarterly Statements. Within 45 days after the end of each quarterly fiscal
period in each fiscal year of the Borrower (other than the last quarterly fiscal period of each
such fiscal year), duplicate copies of

               (i) consolidated balance sheets of the Borrower and its Subsidiaries as at the end of such
quarter, and

               (ii) consolidated statements of income, changes in shareholders’ equity and cash flows of
the Borrower and its Subsidiaries for such quarter and (in the case of the second and third
quarters) for the portion of the fiscal year ending with such quarter,

all in reasonable detail and setting forth in comparative form the figures for the corresponding
periods in the previous fiscal year, prepared in accordance with GAAP applicable to quarterly
financial statements generally, and certified by a Senior Financial Officer as fairly presenting,
in all material respects, the financial position of the Borrower and its Subsidiaries and their
results of operations and cash flows, subject to changes resulting from year–end adjustments,
provided that delivery within the time period specified above of copies of the Borrower’s
Quarterly Report on Form 10–Q prepared in compliance with the requirements therefor and filed with
the Securities and Exchange Commission shall be deemed to satisfy the requirements of this
Section 5.18(a).

          (b) Annual Statements. Within 90 days after the end of each fiscal year of the
Borrower, duplicate copies of:

               (i) consolidated balance sheets of the Borrower and its Subsidiaries as at the end of such
year, and

               (ii) consolidated statements of income, changes in shareholders’ equity and cash flows of
the Borrower and its Subsidiaries for such year,

setting forth in each case in comparative form the figures for the previous fiscal year, all in
reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion thereon of
independent certified public accountants of recognized national standing, which opinion shall not
be subject to any “going concern” or like qualification or exception or any qualification or
exception as to the scope of such audit, and which opinion shall state that such financial
statements present fairly, in all material respects, the financial position of the Borrower and its
Subsidiaries and their results of operations and cash flows and have been prepared in conformity
with GAAP, and that the examination of such accountants in connection with such financial
statements has been made in accordance with generally accepted auditing standards, and that such
audit provides a reasonable basis for such opinion in the circumstances; provided that the
delivery within the time period specified above of the Borrower’s Annual Report on Form 10–K for
such fiscal year (together with the

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 59

 

 

Borrower’s annual report to shareholders, if any, prepared
pursuant to Rule 14a–3 under the Exchange Act) prepared in accordance with the requirements
therefor and filed with the Securities and Exchange Commission shall be deemed to satisfy the
requirements of clauses (i) and (ii) of this Section 5.18(b); and

               (iii) a certificate of such accountants stating that in making the examination for such
report, they have obtained no knowledge of any Default or Event of Default, or, if they have
obtained knowledge of any Default or Event of Default, specifying the nature and period of
existence thereof and the action the Borrower has taken or proposes to take with respect thereto.

          (c) SEC and Other Reports. If the Borrower or any Subsidiary shall be required to
file reports with the Securities and Exchange Commission, promptly upon their becoming available,
one copy of (i) each financial statement, report, notice or proxy statement sent by the Borrower or
any Subsidiary to public securities holders generally, and (ii) each regular or periodic report,
each registration statement that shall have become effective (without exhibits except as expressly
requested by the Administrative Agent or such Lender), and each final prospectus and all amendments
thereto filed by the Borrower or any Subsidiary with the Securities and Exchange Commission;

          (d) Notice of Default or Event of Default. Promptly, and in any event within five
days after a Responsible Officer becomes aware of the existence of any Default or Event of Default,
a written notice specifying the nature and period of existence thereof and what action the Borrower
is taking or proposes to take with respect thereto;

          (e) ERISA Matters. Promptly, and in any event within five days, after a Responsible
Officer becomes aware of any of the following, a written notice setting forth the nature thereof
and the action, if any, that the Borrower or an ERISA Affiliate proposes to take with respect
thereto:

               (i) with respect to any Plan, any reportable event, as defined in Section 4043(b) of
ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to
such regulations as in effect on the date hereof and the potential cost to the Borrower or such
ERISA Affiliate resulting therefrom exceeds $500,000; or

               (ii) the taking by the PBGC of steps to institute, or the threatening in writing by the PBGC
of the institution of, proceedings under Section 4042 of ERISA for the termination of, or
the appointment of a trustee to administer, any Plan, or the receipt by the Borrower or any ERISA
Affiliate of a notice from a Multiemployer Plan that such action has been taken by the PBGC with
respect to such Multiemployer Plan; or

               (iii) any event, transaction or condition that could result in the incurrence of any
liability by the Borrower or any ERISA Affiliate pursuant to Title I or IV of ERISA or the
penalty or excise tax provisions of the Code relating to any Plan, or in the imposition of any
Lien on any of the rights, properties or assets of the Borrower or any ERISA Affiliate pursuant
to Title I or IV of ERISA or such penalty or excise tax provisions, if such liability or Lien,
taken together with any other such liabilities or Liens then existing, would reasonably be
expected to have a Material Adverse Effect.

          (f) Requested Information. With reasonable promptness, such other data and
information relating to the business, operations, affairs, financial condition, assets or
properties of the Borrower or any of its Subsidiaries or relating to the ability of any Obligated
Party to perform its obligations under the Loan Documents to which it is a party as from time to
time may be reasonably requested by any Lender.

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          (g) Compliance Certificate. Each set of financial statements delivered pursuant to
Section 5.18(a) or Section 5.18(b) hereof shall be accompanied by a certificate of
a Senior Financial Officer setting forth:

               (i) Covenant Compliance. The information (including detailed calculations) required
in order to establish the Debt to Adjusted EBITDA Ratio, the Applicable Margin, the Facility Fee
Percentage, the then existing Material Subsidiaries, and whether the Borrower was in compliance
with the requirements of Section 5.15 hereof (including the calculations of the maximum
or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such
Section, and the calculation of the amount, ratio or percentage then in existence);

               (ii) Event of Default. A statement that such officer has reviewed the relevant
terms hereof and has made, or caused to be made, under his or her supervision, a review of the
transactions and conditions of the Borrower and its Subsidiaries from the beginning of the
quarterly or annual period covered by the statements then being furnished to the date of the
certificate and that such review shall not have disclosed the existence during such period of any
condition or event that constitutes a Default or an Event of Default or, if any such condition or
event existed or exists (including, without limitation, any such event or condition resulting
from the failure of the Borrower or any Subsidiary to comply with any Environmental Law),
specifying the nature and period of existence thereof and what action the Borrower shall have
taken or proposes to take with respect thereto;

               (iii) Management’s Discussion and Analysis. A written discussion and analysis by
management of the financial condition and results of operations of the lines of business
conducted by the Borrower and its Subsidiaries for such accounting period; provided that
delivery within the time period specified above of copies of, in the case of Section
5.18(a), the Borrower’s Quarterly Report on Form 10–Q, or, in the case of Section
5.18(b) the Borrower’s Annual Report on Form 10–K, in each case prepared in compliance with
the requirements therefor and filed with the Securities and Exchange Commission shall be deemed
to satisfy this clause (iii); and

               (iv) Litigation. A written statement that, to the best of such officer’s knowledge
after due inquiry, except as otherwise disclosed in writing to the Administrative Agent, there is
no litigation (including derivative actions), arbitration proceeding or governmental proceeding
or investigation (including but not limited to environmental matters) pending to which the
Borrower or any Subsidiary is a party, or with respect to the Borrower or any Subsidiary or their
respective properties, as to which there is a significant possibility of an adverse determination
which, if determined adversely to the Borrower or any Subsidiary, would materially and adversely
affect the business, operations, properties or condition of the Borrower or of the Borrower and
its Subsidiaries taken as a whole.

          (h) Debt Rating. Promptly upon receipt thereof, written notice of any downgrade in
any rating of the Borrower’s Indebtedness by Moody’s, S&P or any other rating agency that issues
ratings for the Borrower’s Indebtedness.

          (i) Other Information. Promptly, such additional information regarding the business,
financial or corporate affairs of the Borrower or any Subsidiary or regarding compliance with the
terms of the Loan Documents as the Administrative Agent or any Lender may from time to time
reasonably request, provided that the Borrower shall not be required to provide financial
projections, a management letter, or consolidating financial statements more frequently than once
per calendar year.

     Documents required to be delivered pursuant to Section 5.18(a) or (b) or (c) (to the
extent any such documents are included in materials otherwise filed with the SEC) may be delivered
electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which
the Borrower posts such documents,

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or provides a link thereto on the Borrower’s website on the
Internet at the website address listed on Schedule 8.01; or (ii) on which such documents
are posted on the Borrower’s behalf on an Internet or intranet website, if any, to which each
Lender and the Administrative Agent have access (whether a commercial, third-party website or
whether sponsored by the Administrative Agent); provided that: (i) the Borrower shall deliver paper
copies of such documents to the Administrative Agent or any Lender that requests the Borrower to
deliver such paper copies until a written request to cease delivering paper copies is given by the
Administrative Agent or such Lender and (ii) the Borrower shall notify the Administrative Agent and
each Lender (by telecopier or electronic mail) of the posting of any such documents and provide to
the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such
documents. Notwithstanding anything contained herein, in every instance the Borrower shall be
required to provide paper copies of the Compliance Certificates required by Section 5.18(g)
to the Administrative Agent. Except for such Compliance Certificates, the Administrative Agent
shall have no obligation to request the delivery or to maintain copies of the documents referred to
above, and in any event shall have no responsibility to monitor compliance by the Borrower with any
such request for delivery, and each Lender shall be solely responsible for requesting delivery to
it or maintaining its copies of such documents.

     The Borrower hereby acknowledges that (a) the Administrative Agent and/or the Joint Lead
Arrangers will make available to the Lenders and the Issuing Banks materials and/or information
provided by or on behalf of the Borrower hereunder (collectively, “Borrower Materials”) by
posting the Borrower Materials on IntraLinks or another similar electronic system (the
“Platform”) and (b) certain of the Lenders may be “public-
side” Lenders (i.e., Lenders that do not wish to receive material non-public information with
respect to the Borrower or its securities) (each, a “Public Lender”). The Borrower hereby
agrees that so long as Borrower is the issuer of any outstanding debt or equity securities that are
registered or issued pursuant to a private offering or is actively contemplating issuing any such
securities (w) all Borrower Materials that are to be made available to Public Lenders shall be
clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC”
shall appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,” the
Borrower shall be deemed to have authorized the Administrative Agent, the Joint Lead Arrangers, the
Issuing Banks and the Lenders to treat such Borrower Materials as not containing any material
non-public information with respect to the Borrower or its securities for purposes of United States
Federal and state securities laws (provided, however, that to the extent such Borrower Materials
constitute Information (as defined in Section 8.15), they shall be treated as set forth in
Section 8.15); (y) all Borrower Materials marked “PUBLIC” are permitted to be made
available through a portion of the Platform designated “Public Investor;” and (z) the
Administrative Agent and the Joint Lead Arrangers shall be entitled to treat any Borrower Materials
that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not
designated “Public Investor.” Notwithstanding the foregoing, Borrower shall not be under any
obligation to mark any Borrower Materials “PUBLIC.”

     Section 5.19. Inspection; Confidentiality. The Borrower shall permit the
representatives of the Administrative Agent and each Lender:

          (a) No Default. If no Default or Event of Default then exists, at the expense of the
Administrative Agent or Lender and upon reasonable prior notice to the Borrower, to visit the
principal executive office of the Borrower, to discuss the affairs, finances and accounts of the
Borrower and its Subsidiaries with the Borrower’s officers and (with the consent of the Borrower,
which consent will not be unreasonably withheld) its independent public accountants, and (with the
consent of the Borrower, which consent will not be unreasonably withheld) to visit the other
offices and properties of the Borrower and each Subsidiary, all at such reasonable times and as
often as may be reasonably requested in writing;

          (b) Default. If a Default or Event of Default then exists, at the expense of the
Borrower to visit and inspect any of the offices or properties of the Borrower or any Subsidiary,
to examine all their respective books of account, records, reports and other papers, to make copies
and extracts therefrom, and to

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discuss their respective affairs, finances and accounts with their
respective officers and independent public accountants (and by this provision the Borrower
authorizes said accountants to discuss the affairs, finances and accounts of the Borrower and its
Subsidiaries), all at such times and as often as may be requested; and

          (c) Technical Data. Anything herein to the contrary notwithstanding, neither the
Borrower nor any of its Subsidiaries shall have any obligations to disclose pursuant to this
Agreement any engineering, scientific, or other technical data without significance to the analysis
of the financial position of the Borrower and its Subsidiaries.

     Section 5.20. Books and Records. The Borrower shall maintain its financial records in
accordance with GAAP and all other business and operating records in accordance with reasonably
prudent business practices.

     Section 5.21. New Material Subsidiaries. Within forty-five (45) days after the end
of each fiscal quarter, the Borrower shall:

          (a) cause each Domestic Subsidiary that is a Material Subsidiary and was created or acquired
during the fiscal quarter then ending, and each Domestic Subsidiary that became a Material
Subsidiary during such fiscal quarter (any such Material Subsidiary, herein a “New
Material Domestic Subsidiary”), to execute and deliver to the Administrative Agent a Subsidiary
Joinder Agreement joining it as a guarantor under the Subsidiary Guaranty and such other
documentation as the Administrative Agent may reasonably request to cause such New Material
Domestic Subsidiary to evidence or otherwise implement the guaranty of the repayment of the
obligations contemplated by the Subsidiary Guaranty and this Agreement; and

          (b) take such action as the Collateral Agent may request to cause: (i) 100% of the Equity
Interests issued by each New Material Domestic Subsidiary and (ii) 65% of the Equity Interests
issued by each Foreign Subsidiary that is a Material Subsidiary and was created or acquired during
the fiscal quarter then ending and each Foreign Subsidiary that, as a result of a change in assets,
becomes a Material Subsidiary during such quarter, to be pledged to the Collateral Agent under the
Pledge Agreement, including the proper completion, execution and delivery of a Pledge Amendment
under the terms of the Pledge Agreement, the delivery of the certificates evidencing the Equity
Interests to be pledged, along with undated stock powers executed in blank, Uniform Commercial Code
Financing Statements, legal opinions and such other documentation as the Collateral Agent may
reasonably request to cause such Equity Interests to be pledged under the Pledge Agreement and for
such pledge to be perfected and protected; provided, however, the provisions of
this Subsection (b) shall cease to exist upon either (i) the achievement by Borrower of a
BBB- senior unsecured credit rating by S&P or a Baa3 senior unsecured credit rating by Moody’s or
(ii) the conversion of the Subordinated Notes into equity and the credit ratings of the
Subordinated Notes by Moody’s and S&P no longer exist, and provided further that at such time as
either (i) or (ii) above occur, no Default or Event of Default exists and is continuing.

     Section 5.22. Payments on Certain Indebtedness. The Borrower will not, nor will it
permit any Subsidiary to, make or agree to pay or make, directly or indirectly, any payment or
other distribution (whether in cash, securities or other property) of or in respect of principal of
or interest on any Indebtedness, or any payment or other distribution (whether in cash, securities
or other property), including any sinking fund or similar deposit, on account of the purchase,
redemption, retirement, acquisition, cancellation or termination of any Indebtedness, except:

          (a) payments of Indebtedness created under the Loan Documents;

          (b) payments of regularly scheduled interest and principal payments or other regularly
scheduled or required payments as and when due in respect of any Indebtedness or Receivable
Securitizations

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other than payments in respect of the Subordinated Indebtedness prohibited by the
subordination provisions thereof;

          (c) voluntary or optional prepayments in respect of any Indebtedness, other than prepayments
in respect of the Subordinated Indebtedness prohibited by the subordination provisions thereof, so
long as no Default or Event of Default exists or results from any such voluntary or optional
prepayment;

          (d) refinancings of Indebtedness to the extent permitted by Section 5.12;

          (e) payments of secured Indebtedness that becomes due as a result of the voluntary sale or
transfer of the property or assets securing such Indebtedness; and

          (f) payments of Indebtedness evidenced by the Senior Note Purchase Agreements.

     Section 5.23. Investments, Loans, Advances, and Acquisitions. The Borrower will not,
and will not permit any of its Subsidiaries to, purchase, hold or acquire (including pursuant to
any merger with any Person that was not a Wholly–Owned Subsidiary prior to such merger) any Equity
Interests in, or evidences of
Indebtedness or other securities (including any option, warrant or other right to acquire any
of the foregoing) of, or make or permit to exist any loans or advances to, or make or permit to
exist any investment or any other interest in, any other Person, or purchase or otherwise acquire
(in one transaction or a series of transactions) any assets of any other Person constituting a
business unit, except:

          (a) Investments held by the Borrower or any Subsidiary in the form of cash equivalents or
short-term marketable debt securities;

          (b) investments, loans and advances existing on the date hereof and set forth on Schedule
5.23, to the extent such investments would not be permitted under any other clause of this
Section;

          (c) investments by the Borrower and its Subsidiaries in Equity Interests in their respective
Subsidiaries, provided that any such Equity Interests issued by a Material Subsidiary shall
be pledged to the extent required hereby;

          (d) loans or advances made by the Borrower to any Subsidiary and made by any Subsidiary to the
Borrower or any other Subsidiary in accordance with the limitations set forth in Section
5.12;

          (e) loans or advances made by the Borrower to third parties other than Subsidiaries;
provided that the Dollar Equivalent of the aggregate outstanding amount of all Indebtedness
permitted under the permissions of this subclause (e) shall not at any time exceed
$25,000,000;

          (f) investments received in connection with the bankruptcy or reorganization of, or settlement
of delinquent accounts and disputes with, customers and suppliers, in each case in the ordinary
course of business;

          (g) transactions permitted by Section 5.10;

          (h) extensions of trade credit in the ordinary course of business;

          (i) investments in the Equity Interests in the special purpose entities established under the
Receivable Securitizations permitted by Section 5.12; provided that, the
aggregate amount of cash invested in all such entities shall not exceed $1,000,000;

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 64

 

 

          (j) Borrower or any Subsidiary may purchase, hold or acquire any Equity Interests in, or
evidences of Indebtedness or other securities (including any option, warrant or other right to
acquire any of the foregoing) of, or make or permit to exist any loans or advances to, or make or
permit to exist any other investment or any other interest in, any other Person; provided
that, the sum of the following made, acquired or held under the permissions of this
clause (j) shall not exceed $10,000,000 at any time: (i) the aggregate amount paid to
acquire the Equity Interests, other securities, other investments or other interest in Persons;
plus (ii) the aggregate outstanding principal amount of any such Indebtedness and other
loans and advances;

          (k) if no Default or Event of Default exists or would result therefrom, Borrower and any
Subsidiary may acquire all the Equity Interests of any Person or all or substantially all of the
assets of any Person or the assets of a Person constituting a business unit if:

                  (i) The proposed acquisition is an acquisition of the Equity Interests of a Target, the
acquisition is structured so that the Target will become a Wholly-Owned Subsidiary or will,
simultaneously with the acquisition be merged into the Borrower or a Wholly-Owned Subsidiary. If
the proposed acquisition is an acquisition of a business unit or all or substantially all of the
assets of a Person, the acquisition will be structured so that Borrower or one or more
Wholly-Owned Subsidiaries will acquire the assets;

                  (ii) The Purchase Price (as defined below) for the proposed acquisition in question together
with the Purchase Prices paid for all acquisitions consummated in the most recent twelve month
period does not exceed a Dollar Equivalent amount equal to EBITDA for such period; provided
that if as of the date of any proposed acquisition, (A) the unsecured senior debt rating of
the Borrower has been upgraded to BBB or better by S&P and Baa2 or better by Moody’s; (B) the
Borrower has retained those ratings for more than 6 months; and (C) such debt is not on negative
watch by any rating agency which has issued the Borrower such debt rating, then the restrictions
contained in this clause (ii) shall not apply; provided further,
however, if at any time thereafter: (a) the unsecured senior debt rating of the Borrower
has been downgraded below BBB by S&P or below Baa2 by Moody’s or (b) such debt is on negative
watch by any rating agency which has issued the Borrower such debt rating, then the restrictions
contained in this clause (ii) shall apply to any proposed acquisition thereafter
consummated (the term “Purchase Price” means, as of any date of determination and with
respect to a proposed acquisition, the purchase price to be paid for the Target or its assets,
including all cash consideration paid (whether classified as purchase price, non-compete or
consulting payments or otherwise), the value of all other assets to be transferred by the
purchaser in connection with such acquisition to the seller (including any stock issued to the
seller) all valued in accordance with the applicable purchase agreement and the outstanding
principal amount of all Indebtedness of the Target or that the purchaser assumed or acquired in
connection with such acquisition);

                  (iii) Borrower shall have provided to the Administrative Agent and each Lender prior to or
on the date that the proposed acquisition is to be consummated the following: (a) a certificate
of a Responsible Officer of the Borrower (1) certifying that no Default or Event of Default
exists or could reasonably be expected to occur as a result of the proposed acquisition, and (2)
demonstrating that both as of the date of any such acquisition and immediately following such
acquisition the Borrower is and on a pro forma basis projects that it will continue to be, in
compliance with the financial covenants of this Agreement; and

                  (iv) Such acquisition has been: (i) in the event a corporation or its assets is the Target,
either (x) approved by the Board of Directors of the corporation which is the Target, or (y)
recommended by such Board of Directors to the shareholders of such Target, (ii) in the event a
partnership is the Target, approved by a majority (by percentage of voting power) of the partners
of the Target, (iii) in the event an organization or entity other than a corporation or
partnership is the Target, approved by a majority (by

percentage of voting power) of the
governing body, if any, or by a majority (by

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percentage of ownership interest) of the owners of
the Target or (iv) in the event the corporation, partnership or other organization or entity
which is the Target is in bankruptcy, approved by the bankruptcy court or another court of
competent jurisdiction; and

          (l) promissory notes payable to Borrower or any of its Subsidiaries received in connection
with the sale of their assets; provided that the applicable asset sale is permitted under
the terms of Section 5.11, and (ii) the aggregate principal amount of all such promissory
notes outstanding at any time shall not exceed 2.5% of the value of the consolidated assets of the
Borrower and its Subsidiaries as of the last day of the fiscal year most recently ended prior to
such time.

     Section 5.24. Amendment of Material Documents. Borrower will not and will not permit
any Subsidiaries to change or amend the terms of the Subordinated Notes, if the effect of such
amendment is to: (a) increase the interest rate on the Subordinated Notes; (b) shorten the time of
payments of principal or interest due under the Subordinated Notes; (c) change the subordination
provisions thereof (or the subordination terms of any guaranty thereof); or (d) change or amend any
other term if such change or amendment would materially increase the obligations of the obligor or
confer additional material rights on the holders of the Subordinated Notes in a manner materially
adverse to the Administrative Agent or any Lender as senior creditors or the interests of the
Lenders under this Agreement or any other Loan Document in any respect.

     Section 5.25. Swap Agreements. The Borrower will not, and will not permit any of its
Subsidiaries to, enter into any Swap Agreement, except: (a) Swap Agreements entered into to hedge
or mitigate risks to which the Borrower or any Subsidiary has actual exposure (other than those in
respect of Equity Interests or Indebtedness of the Borrower or any of its Subsidiaries) and (b)
Swap Agreements entered into in order to effectively cap, collar or exchange interest rates (from
fixed to floating rates, from one floating rate to another floating rate or otherwise) with respect
to any interest–bearing liability or investment of the Borrower or any Subsidiary.

     Section 5.26. Limitations on Receivable Securitizations. The aggregate amount of the
funds extended to purchase the receivables of the Borrower or any of its Subsidiaries which are
outstanding at any time under all Receivable Securitizations and not repaid from collections on
receivables shall at no time exceed the greater of (i) $225,000,000, or (ii) an amount
equal to Adjusted EBITDA for the previous twelve months.

ARTICLE 6.

EVENTS OF DEFAULT

     In case of the happening of any of the following events (each an “Event of Default”):

          (a) the Borrower defaults in the payment of any principal on any Loan or the reimbursement of
any L/C Disbursement, in each case when the same becomes due and payable, whether at maturity or at
a date fixed for prepayment or by declaration or otherwise; or

          (b) the Borrower defaults in the payment of any interest on any Loan for more than five
Business Days after the same becomes due and payable; or

          (c) either (i) the Borrower defaults in the performance of or compliance with any term
applicable to the Borrower and contained in Section 2.10(c), Sections 5.10 through
5.17, Section 5.18(d), or Section 5.23, or (ii) any Pledgor defaults in the
performance or compliance with any term applicable to such Pledgor contained in the Pledge
Agreement and such default is not remedied within 15 days after the earlier of (A) a Responsible
Officer obtaining actual knowledge of such default and (B) the Borrower receiving written

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notice of
such default from the Administrative Agent or any Lender (any such written notice to be identified
as a “notice of default” and to refer specifically to this paragraph (c) of Article
6); or

          (d) any Obligated Party defaults in the performance of or compliance with any term contained
in any Loan Document to which it is a party (other than those referred to in paragraphs (a),
(b) and (c) of this Article 6) and such default is not remedied within 30 days
after the earlier of (A) a Responsible Officer obtaining actual knowledge of such default and (B)
the Borrower receiving written notice of such default from the Administrative Agent or any Lender
(any such written notice to be identified as a “notice of default” and to refer specifically to
this paragraph (d) of Article 6); or

          (e) any representation or warranty made in writing by or on behalf of any Obligated Party or
by any officer of any Obligated Party in any Loan Document or any certificate, financial statement,
or other writing furnished in connection with the transactions contemplated hereby proves to have
been false or incorrect in any material respect on the date as of which made or deemed made; or

          (f) the Borrower or any Subsidiary: (i) is in default (as principal or as guarantor or other
surety) in the payment of any principal of, or premium or make–whole amount or interest on, or
other amount
in respect of, any Subject Indebtedness (as defined below) or (ii) is in default in the
performance of or compliance with any term of any evidence of any Subject Indebtedness or of any
mortgage, indenture or other agreement relating thereto or any other condition exists, and as a
consequence of such default or condition, such Subject Indebtedness: (A) has become, or has been
declared, due and payable before its stated maturity or before its regularly scheduled dates of
payment, or (B) the holder or holders of any such Indebtedness or any trustee or agent acting on
its or their behalf is permitted (with or without the giving of notice, the lapse of time or both)
to declare such Indebtedness due and payable before its stated maturity or before its regularly
scheduled dates of payment or to terminate any commitment relating thereto (as used in this
clause (f), the term “Subject Indebtedness” means (i) Indebtedness that is
outstanding in an aggregate principal amount the Dollar Equivalent of which is at least
$25,000,000; or (ii) any Receivable Securitization in respect of which the Receivable
Securitization Outstanding is at least $25,000,000; or

          (g) the Borrower or any Subsidiary (i) is generally not paying, or admits in writing its
inability to pay, its debts as they become due, (ii) files, or consents by answer or otherwise to
the filing against it of, a petition for relief or reorganization or arrangement or any other
petition in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency,
reorganization, moratorium or other similar law of any jurisdiction, (iii) makes an assignment for
the benefit of its creditors, (iv) consents to the appointment of a custodian, receiver, trustee or
other officer with similar powers with respect to it or with respect to any substantial part of its
property, (v) is adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for
the purpose of any of the foregoing; provided, however, that this clause
(g) shall not apply to any Subsidiary of the Borrower the book value of whose total assets
(determined in accordance with GAAP) is less than $10,000,000; or

          (h) a court or Governmental Authority of competent jurisdiction enters an order appointing,
without consent by the Borrower or any of its Subsidiaries, a custodian, receiver, trustee or other
officer with similar powers with respect to it or with respect to any substantial part of its
property, or constituting an order for relief or approving a petition for relief or reorganization
or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or
insolvency law of any jurisdiction, or ordering the dissolution, winding–up or liquidation of the
Borrower or any of its Subsidiaries, or any such petition shall be filed against the Borrower or
any of its Subsidiaries and such petition shall not be dismissed within 60 days; provided,
however, that this clause (h) shall not apply to any Subsidiary of the Borrower the
book value of whose total assets (determined in accordance with GAAP) is less than $10,000,000; or

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          (i) a final judgment or judgments for the payment of money aggregating in excess of
$25,000,000 are rendered against one or more of the Borrower and its Subsidiaries and which
judgments are not, within 60 days after entry thereof, bonded, discharged or stayed pending appeal,
or are not discharged within 60 days after the expiration of such stay; or

          (j) if (i) any Plan subject to the minimum funding standards of ERISA or the Code shall fail
to satisfy such standards for any plan year or part thereof or a waiver of such standards or
extension of any amortization period is sought or granted under Section 412 of the Code,
(ii) a notice of intent to terminate any Plan shall have been or is reasonably expected to be filed
with the PBGC or the PBGC shall have instituted proceedings under ERISA Section 4042 to
terminate or appoint a trustee to administer any Plan or the PBGC shall have notified the Borrower
or any ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) the
aggregate amount of accumulated benefit obligations under all Plans subject to Title IV of ERISA
(other than Multiemployer Plans), determined in accordance with Financial Accounting Standards
Board Statement No. 87 or 132, as the case may be, as of the end of such Plans’ most recently ended
plan year on the basis of actuarial assumptions specified for funding purposes in such Plans’ most
recent actuarial valuation report, shall exceed the aggregate current value of the assets of such
Plans by more than $50,000,000, (iv) the Borrower or any ERISA Affiliate shall have incurred or is
reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the penalty or
excise tax provisions of the Code relating to
employee benefit plans, (v) the Borrower or any ERISA Affiliate withdraws from any
Multiemployer Plan, or (vi) the Borrower or any Subsidiary establishes or amends any employee
welfare benefit plan that provides post–employment welfare benefits in a manner that would increase
the liability of the Borrower or any Subsidiary thereunder; and any such event or events described
in clauses (i) through (vi) above, either individually or together with any other
such event or events, would reasonably be expected to have a Material Adverse Effect (as used in
Article 6, the terms “employee benefit plan” and “employee welfare benefit plan” shall have
the respective meanings assigned to such terms in Section 3 of ERISA);

          (k) the occurrence of an Event of Default (as defined in the Intercreditor Agreement); or

          (l) either the Subsidiary Guaranty or the Pledge Agreement shall for any reason cease to be in
full force and effect and valid, binding and enforceable in accordance with its terms, or any
Obligated Party shall so assert in writing;

then, and in every such event, and at any time thereafter during the continuance of such event, the
Administrative Agent, at the request of the Required Lenders, shall, by notice to the Borrower,
take any or all of the following actions, at the same or different times: (i) terminate forthwith
the right of the Borrower to borrow hereunder or to request the issuance, amendment, extension or
renewal or other modification of any Letter of Credit, (ii) exercise any rights that may be
available upon an Event of Default to terminate or cancel any outstanding Letters of Credit, or
require that the Borrower Cash Collateralize the L/C Obligations, and (iii) declare the Loans and
all reimbursement obligations for L/C Disbursements, then outstanding to be forthwith due and
payable in whole or in part, whereupon the principal of the Loans and the reimbursement obligations
for L/C Disbursements, so declared to be due and payable, together with accrued interest thereon
and any unpaid accrued Fees and all other liabilities of the Borrower accrued hereunder, shall
become forthwith due and payable, without presentment, demand, protest, notice of intent to
accelerate, notice of acceleration or any other notice of any kind, all of which are hereby
expressly waived, anything contained herein to the contrary notwithstanding; provided that
in the case of any event described in paragraph (g) or (h) above with respect to
any Obligated Party, all the Commitments of the Lenders, the commitment of the Swingline Lender to
make Swingline Loans and the agreement of the Issuing Banks hereunder to issue Letters of Credit
shall automatically terminate and the principal amount of all Loans and all reimbursement
obligations for L/C Disbursements then outstanding, together with accrued interest thereon and any
unpaid accrued Fees and all other liabilities of the Obligated Parties accrued under the Loan
Documents shall automatically become due and payable, without presentment, demand, protest, notice
of intent to accelerate, notice of acceleration or

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any other notice of any kind, all of which are
hereby expressly waived by the Borrower, anything contained herein to the contrary notwithstanding,
and the obligation of the Borrower to Cash Collateralize the L/C Obligations as aforesaid shall
automatically become effective, in each case without further act of the Administrative Agent or any
Lender. In addition to the other rights and remedies that the Lenders may have upon the occurrence
of an Event of Default, the Required Lenders may direct: (i) the Collateral Agent to exercise the
rights and remedies available to the Collateral Agent under the Intercreditor Agreement and the
Pledge Agreement and (ii) the Administrative Agent to exercise the rights and remedies available to
it under the Subsidiary Guaranty.

ARTICLE 7.

THE ADMINISTRATIVE AGENT

     Section 7.01. Appointment and Authority. Each of the Lenders and each Issuing Bank
hereby irrevocably appoints Bank of America to act on its behalf as the Administrative Agent
hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are
delegated to the Administrative Agent by the terms hereof or thereof, together with such actions
and powers as are reasonably incidental thereto. The provisions of this Article are solely for the
benefit of the Administrative Agent, the Lenders and the Issuing Banks, and neither the Borrower
nor any other Obligated Party shall have rights as a third party beneficiary of any of such
provisions.

     Section 7.02. Rights as a Lender. The Person serving as the Administrative Agent
hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and
may exercise the same as though it were not the Administrative Agent and the term “Lender”
or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise
requires, include the Person serving as the Administrative Agent hereunder in its individual
capacity. Such Person and its Affiliates may accept deposits from, lend money to, act as the
financial advisor or in any other advisory capacity for and generally engage in any kind of
business with the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not
the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

     Section 7.03. Exculpatory Provisions. The Administrative Agent shall not have any
duties or obligations except those expressly set forth herein and in the other Loan Documents.
Without limiting the generality of the foregoing, the Administrative Agent:

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

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

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

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     The Administrative Agent shall not be liable for any action taken or not taken by it (i) with
the consent or at the request of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be
necessary, under the circumstances as provided in Sections 8.09 and Article 6) or
(ii) in the absence of its own gross negligence or willful misconduct. The Administrative Agent
shall be deemed not to have knowledge of any Default or Event of Default unless and until notice
describing such Default or Event of Default is given to the Administrative Agent by the Borrower, a
Lender or an Issuing Bank.

     The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire
into (i) any statement, warranty or representation made in or in connection with this Agreement or
any other Loan Document, (ii) the contents of any certificate, report or other document delivered
hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance
of any of the covenants, agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default or Event of Default, (iv) the validity, enforceability, effectiveness or
genuineness of this Agreement, any other Loan Document or any other agreement, instrument or
document or (v) the satisfaction of any condition set forth in Article 4 or
elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the
Administrative Agent.

     Section 7.04. Reliance by Administrative Agent. The Administrative Agent shall be
entitled to rely upon, and shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing (including any electronic
message, Internet or intranet website posting or other distribution) believed by it to be genuine
and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative
Agent also may rely upon any statement made to it orally or by telephone and believed by it to have
been made by the proper Person, and shall not incur any liability for relying thereon. In
determining compliance with any condition hereunder to the making of a Loan, or the issuance of a
Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or an Issuing
Bank, the Administrative Agent may presume that such condition is satisfactory to such Lender or
Issuing Bank unless the Administrative Agent shall have received notice to the contrary from such
Lender or Issuing Bank prior to the making of such Loan or the issuance of such Letter of Credit.
The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower),
independent accountants and other experts selected by it, and shall not be liable for any action
taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

     Section 7.05. Delegation of Duties. The Administrative Agent may perform any and all
of its duties and exercise its rights and powers hereunder or under any other Loan Document by or
through any one or more sub agents appointed by the Administrative Agent. The Administrative Agent
and any such sub agent may perform any and all of its duties and exercise its rights and powers by
or through their respective Related Parties. The exculpatory provisions of this Article shall
apply to any such sub agent and to the Related Parties of the Administrative Agent and any such sub
agent, and shall apply to their respective activities in connection with the syndication of the
credit facilities provided for herein as well as activities as Administrative Agent.

     Section 7.06. Resignation of Administrative Agent. The Administrative Agent may at
any time give notice of its resignation to the Lenders and the Borrower. Upon receipt of any such
notice of resignation, the Required Lenders shall have the right, in consultation with the
Borrower, to appoint a successor, which shall be a bank with an office in the United States, or an
Affiliate of any such bank with an office in the United States. If no such successor shall have
been so appointed by the Required Lenders and shall have accepted such appointment within 30 days
after the retiring Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may on behalf of the Lenders and the Issuing Banks appoint a successor
Administrative Agent meeting the qualifications set forth above; provided that if the
Administrative Agent shall notify the Borrower and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become effective in accordance
with such notice and (1) the retiring

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Administrative Agent shall be discharged from its duties and
obligations hereunder and under the other Loan Documents (except that in the case of any collateral
security held by the Administrative Agent on behalf of the Lenders under any of the Loan Documents,
the retiring Administrative Agent shall continue to hold such collateral security until such time
as a successor Administrative Agent is appointed) and (2) all payments, communications and
determinations provided to be made by, to or through the Administrative Agent shall instead be made
by or to each Lender and each Issuing Bank directly, until such time as the Required Lenders
appoint a successor Administrative Agent as provided for above in this Section. Upon the
acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall
succeed to and become vested with all of the rights, powers, privileges and duties of the retiring
(or retired) Administrative Agent, and the retiring Administrative Agent shall be discharged from
all of its duties and obligations hereunder or under the other Loan Documents (if not already
discharged therefrom as provided above in this Section). The fees payable by the 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 retiring Administrative Agent’s resignation hereunder
and under the other Loan Documents, the provisions of this Article and Section 8.05 shall
continue in effect for the benefit of such retiring Administrative Agent, its sub agents and their
respective Related Parties in respect of any actions taken or omitted to be taken by any of them
while the retiring Administrative Agent was acting as Administrative Agent.

     Any resignation by Bank of America as Administrative Agent pursuant to this Section shall also
constitute its resignation as an Issuing Bank and as Swingline Lender. Upon the acceptance of a
successor’s appointment as Administrative Agent hereunder, (a) such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the retiring Issuing Bank
and Swingline Lender, (b) the retiring Issuing Bank and Swingline Lender shall be discharged from
all of their respective duties and obligations hereunder or under the other Loan Documents, and (c)
the successor Issuing Bank shall issue letters of credit in substitution for the Letters of Credit,
if any, outstanding at the time of such succession or make other arrangements satisfactory to the
retiring Issuing Bank to effectively assume the obligations of the retiring Issuing Bank with
respect to such Letters of Credit.

     Section 7.07. Non-Reliance on Administrative Agent and Other Lenders. Each Lender and
each Issuing Bank acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender or any of their Related Parties and based on such
documents and information as it has deemed appropriate, made its own credit analysis and decision
to enter into this Agreement. Each Lender and each Issuing Bank also acknowledges that it will,
independently and without reliance upon the Administrative Agent or any other Lender or any of
their Related Parties and based on such documents and information as it shall from time to time
deem appropriate, continue to make its own decisions in taking or not taking action under or based
upon this Agreement, any other Loan Document or any related agreement or any document furnished
hereunder or thereunder.

     Section 7.08. No Other Duties, Etc. Anything herein to the contrary notwithstanding,
none of the Syndication Agent or Joint Lead Arrangers listed on the cover page hereof shall have
any powers, duties or responsibilities under this Agreement or any of the other Loan Documents,
except in its capacity, as applicable, as the Administrative Agent, a Lender or an Issuing Bank
hereunder.

     Section 7.09. Administrative Agent May File Proofs of Claim. In case of the pendency
of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to any Obligated Party, the Administrative Agent
(irrespective of whether the principal of any Loan or Letter of Credit Liability shall then be due
and payable as herein expressed or by declaration or otherwise and irrespective of whether the
Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered,
by intervention in such proceeding or otherwise

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     (a) to file and prove a claim for the whole amount of the principal and interest owing
and unpaid in respect of the Loans, Letter of Credit Liabilities and all other obligations
that are owing and unpaid hereunder or under the Loan Documents and to file such other
documents as may be necessary or advisable in order to have the claims of the Lenders, the
Issuing Banks and the Administrative Agent (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Lenders, the Issuing Banks and the
Administrative Agent and their respective agents and counsel and all other amounts due the
Lenders, the Issuing Banks and the Administrative Agent under Sections 2.04(a) and (c)
and 8.05) allowed in such judicial proceeding; and

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

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender and each Issuing Bank to make
such payments to the Administrative Agent and, in the event that the Administrative Agent shall
consent to the making of such payments directly to the Lenders and the Issuing Banks, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and
advances of the Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 2.04(a) and 8.05.

     Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender or any Issuing Bank any plan of
reorganization, arrangement, adjustment or composition affecting the Loans or the rights of any
Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in
any such proceeding.

     Section 7.10. Collateral and Guaranty Matters. The Lenders irrevocably authorize the
Administrative Agent, at its option and in its discretion,

     (a) to release any Lien on any property granted to or held by the Administrative Agent
under any Loan Document (i) upon termination of the Total Commitment and payment in full of
all obligations to the Administrative Agent and the Lenders (other than contingent
indemnification obligations) and the expiration or termination of all Letters of Credit,
(ii) that is sold or to be sold as part of or in connection with any sale permitted
hereunder or under any other Loan Document, or (iii) subject to Section 8.09, if
approved, authorized or ratified in writing by the Required Lenders; and

     (b) to release any Guarantor from its obligations under the Subsidiary Guaranty if such
Person ceases to be a Subsidiary as a result of a transaction permitted hereunder.

     The Lenders and the Issuing Banks acknowledge that Section 5.12 of the Intercreditor
Agreement provides for the automatic release of Collateral in certain specified circumstances and
authorizes the Collateral Agent to release Collateral in certain specified circumstances. With
respect to the release of any Collateral, in the event of any conflict with the terms hereof and
the terms of said Section 5.12 of the Intercreditor Agreement, the terms of Section
5.12 of the Intercreditor Agreement shall control.

     Upon request by the Administrative Agent at any time, the Required Lenders will confirm in
writing the Administrative Agent’s authority to release or subordinate its interest in particular
types or items of property, or to release any Guarantor from its obligations under the Subsidiary
Guaranty pursuant to this Section 7.10.

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ARTICLE 8.

MISCELLANEOUS

     Section 8.01. Notices; Effectiveness; Electronic Communication.

          (a) Notices Generally. Except in the case of notices and other communications
expressly permitted to be given by telephone (and except as provided in
subsection (b) below), all notices and other communications provided for herein shall
be in writing and shall be delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopier as follows, and all notices and other communications
expressly permitted hereunder to be given by telephone shall be made to the applicable telephone
number, as follows:

     (i) if to the Borrower, the Administrative Agent, or the Swingline Lender, to the
address, telecopier number, electronic mail address or telephone number specified for such
Person on Schedule 8.01; and

     (ii) if to any other Lender, to the address, telecopier number, electronic mail address
or telephone number specified in its Administrative Questionnaire.

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall
be deemed to have been given when received; notices sent by telecopier shall be deemed to have been
given when sent (except that, if not given during normal business hours for the recipient, shall be
deemed to have been given at the opening of business on the next business day for the recipient).
Notices delivered through electronic communications to the extent provided in subsection
(b) below, shall be effective as provided in such subsection (b).

          (b) Electronic Communications. Notices and other communications to the Lenders and
the Issuing Banks hereunder may be delivered or furnished by electronic communication (including e
mail and Internet or intranet websites) pursuant to procedures approved by the Administrative
Agent, provided that the foregoing shall not apply to notices to any Lender or any Issuing Bank
pursuant to Article 2 if such Lender or the Issuing Bank, as applicable, has notified the
Administrative Agent that it is incapable of receiving notices under such Article by electronic
communication. The Administrative Agent or the 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.

     Unless the Administrative Agent otherwise prescribes, (i) notices and other communications
sent to an email address shall be deemed received upon the sender’s receipt of an acknowledgement
from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on the next business day
for the recipient, and (ii) notices or communications posted to an Internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

          (c) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR
THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 73

 

 

BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE
BORROWER MATERIALS OR THE PLATFORM. In no event shall the Administrative Agent or any of its
Related Parties (collectively, the “Agent Parties”) have any liability to the Borrower, any
Lender, any Issuing Bank or any other Person for losses, claims, damages, liabilities or expenses
of any kind (whether in
tort, contract or otherwise) arising out of the Borrower’s or the Administrative Agent’s
transmission of Borrower Materials through the Internet, except to the extent that such losses,
claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a
final and nonappealable judgment to have resulted from the gross negligence or willful misconduct
of such Agent Party; provided, however, that in no event shall any Agent Party have any liability
to the Borrower, any Lender, any Issuing Bank or any other Person for indirect, special,
incidental, consequential or punitive damages (as opposed to direct or actual damages).

          (d) Change of Address, Etc. Each of the Borrower, the Administrative Agent, and the
Swingline Lender may change its address, telecopier or telephone number for notices and other
communications hereunder by notice to the other parties hereto. Each other Lender may change its
address, telecopier or telephone number for notices and other communications hereunder by notice to
the Borrower, the Administrative Agent and the Swingline Lender. In addition, each Lender agrees
to notify the Administrative Agent from time to time to ensure that the Administrative Agent has on
record (i) an effective address, contact name, telephone number, telecopier number and electronic
mail address to which notices and other communications may be sent and (ii) accurate wire
instructions for such Lender.

          (e) Reliance by Administrative Agent and Lenders. The Administrative Agent and the
Lenders shall be entitled to rely and act upon any notices (including telephonic notices)
purportedly given by or on behalf of the Borrower even if (i) such notices were not made in a
manner specified herein, were incomplete or were not preceded or followed by any other form of
notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any
confirmation thereof. The Borrower shall indemnify the Administrative Agent, each Lender and the
Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the
reliance by such Person on each notice purportedly given by or on behalf of the Borrower. All
telephonic notices to and other telephonic communications with the Administrative Agent may be
recorded by the Administrative Agent, and each of the parties hereto hereby consents to such
recording.

     Section 8.02. Survival of Representations and Warranties. All representations and
warranties made hereunder and in any other Loan Document or other document delivered pursuant
hereto or thereto or in connection herewith or therewith shall survive the execution and delivery
hereof and thereof. Such representations and warranties have been or will be relied upon by the
Administrative Agent and each Lender, regardless of any investigation made by the Administrative
Agent or any Lender or on their behalf and notwithstanding that the Administrative Agent or any
Lender may have had notice or knowledge of any Default at the time of any Loan or issuance of a
Letter of Credit, and shall continue in full force and effect as long as any Loan or any other
obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit shall remain
outstanding.

     Section 8.03. Binding Effect. Subject to Article 4, this Agreement shall
become effective when it shall have been executed by the Borrower and the Administrative Agent and
when the Administrative Agent shall have received copies hereof (telecopied or otherwise) which,
when taken together, bear the signature of each Lender.

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 74

 

 

     Section 8.04. Successors and Assigns; Assignments and Participations.

          (a) Successors and Assigns Generally. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of the
Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its
rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the
provisions of subsection (b) of this Section, (ii) by way of participation in accordance
with the provisions of subsection (d) of this Section, or (iii) by way of pledge or
assignment of a security interest subject to the restrictions of subsection (f) of this
Section (and any other attempted assignment or transfer by any party hereto shall be null and
void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in subsection (d) of this Section and, to the extent
expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the Issuing
Banks and the Lenders) any legal or equitable right, remedy or claim under or by reason of this
Agreement.

          (b) Assignments by Lenders. Any Lender may at any time assign to one or more Eligible
Assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans (including for purposes of this subsection (b),
participations in Letters of Credit and in Swingline Loans) at the time owing to it); provided that

          (i) except in the case of an assignment of the entire remaining amount of the assigning
Lender’s Commitment and the Loans at the time owing to it or in the case of an assignment to
a Lender or an Affiliate of a Lender or an Approved Fund with respect to a Lender, the
aggregate amount of the Commitment (which for this purpose includes Loans outstanding
thereunder) or, if the Commitment is not then in effect, the principal outstanding balance
of the Loans of the assigning Lender subject to each such assignment, determined as of the
date the Assignment and Assumption with respect to such assignment is delivered to the
Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as
of the Trade Date, shall not be less than $5,000,000 unless each of the Administrative Agent
and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise
consents (each such consent not to be unreasonably withheld or delayed); provided,
however, that concurrent assignments to members of an Assignee Group and concurrent
assignments from members of an Assignee Group to a single Eligible Assignee (or to an
Eligible Assignee and members of its Assignee Group) will be treated as a single assignment
for purposes of determining whether such minimum amount has been met;

          (ii) each partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement with respect to the
Loans or the Commitment assigned, except that this clause (ii) shall not apply to
rights in respect of Swingline Loans;

          (iii) any assignment of a Commitment and the Loans at the time owing to a Lender must
be approved by (a) the Administrative Agent, (b) the Swingline Lender, (c) each Issuing Bank
that has issued Letters of Credit then outstanding in an aggregate principal amount (i)
equal to or greater than $35,000,000, and (2) which represents at such time more than 33.33%
of all Letters of Credit issued and outstanding hereunder (such approval by such Issuing
Bank not to be unreasonably withheld), and (d) so long as no Event of Default has occurred
and is continuing, the Borrower (such approval by the Borrower not to be unreasonably
withheld), unless the Person that is the proposed assignee is itself a Lender (whether or
not the proposed assignee would otherwise qualify as an Eligible Assignee); and

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 75

 

 

          (iv) the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation fee (the
“Assignment Fee”) in the amount of $2,500, and the Eligible Assignee, if it shall
not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire;
provided, however, that in
the event of two or more concurrent assignments to members of the same Assignee Group
(which may be effected by a suballocation of an assigned amount among members of such
Assignee Group) or two or more concurrent assignments by members of the same Assignee Group
to a single Eligible Assignee (or to an Eligible Assignee and members of its Assignee
Group), the Assignment Fee will be $2,500 plus the amount set forth below:

	 	 	 	 	 
	Transaction:	 	Additional Assignment Fee:
	First four concurrent assignments or
suballocations to members of an
Assignee Group (or from members of
an Assignee Group, as applicable)

	 	 	-0-	 
	 
	 	 	 	 
	Each additional concurrent assignment
or suballocation to a member of such
Assignee Group (or from a member of
such Assignee Group, as applicable)

	 	$	500	 

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection
(c) of this Section 8.04, from and after the effective date specified in each
Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this Agreement and,
to the extent of the interest assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Assumption, be released from its obligations
under this Agreement (and, in the case of an Assignment and Assumption covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a
party hereto) but shall continue to be entitled to the benefits of Sections 2.11,
2.16, and 8.05 with respect to facts and circumstances occurring prior to the
effective date of such assignment. Upon request, the Borrower (at its expense) shall execute and
deliver a promissory note to the assignee Lender. Any assignment or transfer by a Lender of rights
or obligations under this Agreement that does not comply with this subsection (b) shall be
treated for purposes of this Agreement as a sale by such Lender of a participation in such rights
and obligations in accordance with subsection (d) of this Section.

          (c) Register. The Administrative Agent, acting solely for this purpose as an agent of
the Borrower, shall maintain at the Administrative Agent’s office a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and addresses of the
Lenders, and the Commitment of, and principal amounts of the Loans and L/C Disbursements 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 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 each of the Borrower, any Lender and any Issuing Bank at any
reasonable time and from time to time upon reasonable prior notice. In addition, at any time that
a request for a consent for a material or substantive change to the Loan Documents is pending, any
Lender may request and receive from the Administrative Agent a copy of the Register.

          (d) Participations. Any Lender may at any time, without the consent of, or notice to,
the Borrower or the Administrative Agent, sell participations to any Person (other than a natural
person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a
“Participant”) in all or a portion of such

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Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans (including such Lender’s
participations in L/C Disbursements and/or Swingline Loans) owing to it); provided that (i) such
Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain
solely responsible to the other parties hereto
for the performance of such obligations and (iii) the Borrower, the Administrative Agent, the
Lenders and the Issuing Banks shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement.

          Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that such agreement
or instrument may provide that such Lender will not, without the consent of the Participant, agree
to any amendment, waiver or other modification described in the first proviso to Section
8.09(b) that affects such Participant. Subject to subsection (e) of this Section, the
Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.11 and
2.16 to the same extent as if it were a Lender and had acquired its interest by assignment
pursuant to subsection (b) of this Section. To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 8.06 as though it were a
Lender, provided such Participant agrees to be subject to Section 2.14 as though it were a
Lender.

          (e) Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Section 2.11 or 2.16 than the applicable Lender
would have been entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the Borrower’s prior written
consent. A Participant that would be a Non-U.S. Lender if it were a Lender shall not be entitled
to the benefits of Section 2.16 unless the Borrower is notified of the participation sold
to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with
Section 2.16(g) as though it were a Lender.

          (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement (including under its promissory note, if
any) to secure obligations of such Lender, including any pledge or assignment to secure obligations
to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender
from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as
a party hereto.

          (g) Electronic Execution of Assignments. The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be deemed to include
electronic signatures or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
applicable law, including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.

          (h) Resignation as Swingline Lender after Assignment. Notwithstanding anything to the
contrary contained herein, if at any time Bank of America assigns all of its Commitment and Loans
pursuant to subsection (b) above, Bank of America may, upon 30 days’ notice to the
Borrower, resign as Swingline Lender. In the event of any such resignation as Swingline Lender,
the Borrower shall be entitled to appoint from among the Lenders a successor Swingline Lender
hereunder; provided, however, that no failure by the Borrower to appoint any such successor shall
affect the resignation of Bank of America as Swingline Lender, as the case may be. If Bank of
America resigns as Swingline Lender, it shall retain all the rights of the Swingline Lender
provided for hereunder with respect to Swingline Loans made by it and outstanding as of the
effective date of such resignation, including the right to require the Lenders to make Loans or
fund risk participations in outstanding Swingline Loans pursuant to Section 2.01(c). Upon
the appointment of a

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 77

 

 

successor Swingline Lender, such successor shall
succeed to and become vested with all of the rights, powers, privileges and duties of the
retiring Swingline Lender, as the case may be.

     Section 8.05. Expenses; Indemnity; Damage Waiver; Funding and Exchange Losses.

               (a) Costs and Expenses. The Borrower shall pay (i) all reasonable out of pocket
expenses incurred by the Administrative Agent and its Affiliates (including the reasonable
fees, charges and disbursements of counsel for the Administrative Agent), in connection with
the syndication of the credit facilities provided for herein, the preparation, negotiation,
execution, delivery and administration of this Agreement and the other Loan Documents or any
amendments, modifications or waivers of the provisions hereof or thereof (whether or not the
transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable out of
pocket expenses incurred by the Administrative Agent or any Issuing Bank in connection with
the issuance, amendment, renewal or extension of any Letter of Credit or any demand for
payment thereunder and (iii) all out of pocket expenses incurred by the Administrative Agent,
any Lender or any Issuing Bank (including the fees, charges and disbursements of any counsel
for the Administrative Agent, any Lender or any Issuing Bank), in connection with the
enforcement or protection of its rights after the occurrence of any Event of Default (A) in
connection with this Agreement and the other Loan Documents, including its rights under this
Section, or (B) in connection with the Loans made or Letters of Credit issued hereunder,
including all such out of pocket expenses incurred during any workout, restructuring or
negotiations in respect of such Loans or Letters of Credit.

               (b) INDEMNIFICATION BY THE BORROWER. THE BORROWER SHALL INDEMNIFY THE
ADMINISTRATIVE AGENT (AND ANY SUB-AGENT THEREOF), THE SWINGLINE LENDER, EACH LENDER AND EACH
ISSUING BANK, AND EACH RELATED PARTY OF ANY OF THE FOREGOING PERSON (EACH SUCH PERSON BEING
CALLED AN “INDEMNITEE”) AGAINST, AND HOLD EACH INDEMNITEE HARMLESS FROM, ANY AND ALL
LOSSES, CLAIMS, DAMAGES, LIABILITIES AND RELATED EXPENSES (including the reasonable fees,
charges and disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or
asserted against any Indemnitee by any third party or by the Borrower or any other Obligated
Party arising out of, in connection with, or as a result of (i) the execution or delivery of
this Agreement, the Prior Credit Agreement, any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the performance by the parties hereto of their
respective obligations hereunder or thereunder, the consummation of the transactions
contemplated hereby or thereby, or, in the case of the Administrative Agent (and any
sub-agent thereof) and its Related Parties only, the administration of this Agreement and the
other Loan Documents, (ii) any Loan or Letter of Credit or the use or proposed use of the
proceeds therefrom (including any refusal by any Issuing Bank to honor a demand for payment
under a Letter of Credit if the documents presented in connection with such demand do not
strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged
presence or release of Hazardous Substances on or from any property owned or operated by the
Borrower or any of its Subsidiaries, or any violation of or liability relating to
Environmental Law related in any way to the Borrower or any of its Subsidiaries, or (iv) any
actual or prospective claim, litigation, investigation or proceeding relating to any of the
foregoing, whether based on contract, tort or any other theory, whether brought by a third
party or by the Borrower or any other Obligated Party, and regardless of whether any
Indemnitee is a party thereto, IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR
IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF THE INDEMNITEE; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses (x) are determined by a court
of competent jurisdiction by final and nonappealable judgment to have resulted from the
gross

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REVOLVING CREDIT FACILITY AGREEMENT, Page — 78

 

 

negligence or willful misconduct of such Indemnitee or (y) result from a claim brought
by the Borrower or any other Obligated Party against an Indemnitee for breach in bad faith of
such Indemnitee’s obligations hereunder or under any other Loan Document, if the Borrower or
such Obligated Party has obtained a final and nonappealable judgment in its favor on such
claim as determined by a court of competent jurisdiction. No Indemnitee referred to in this
subsection (b) shall be liable for any damages arising from the use by unintended
recipients of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in connection with
this Agreement or the other Loan Documents or the transactions contemplated hereby or
thereby, except to the extent that such damages are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the gross negligence
or willful misconduct of such Indemnitee.

          (c) Reimbursement by Lenders. To the extent that the Borrower for any reason
fails to indefeasibly pay any amount required under subsection (a) or (b) of
this Section to be paid by it to the Administrative Agent (or any sub-agent thereof), any
Issuing Bank or any Related Party of any of the foregoing, each Lender severally agrees to
pay to the Administrative Agent (or any such sub-agent), such Issuing Bank or such Related
Party, as the case may be, such Lender’s Applicable Percentage (determined as of the time
that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount, provided that the unreimbursed expense or indemnified loss, claim, damage, liability
or related expense, as the case may be, was incurred by or asserted against the
Administrative Agent (or any such sub-agent) or any Issuing Bank in its capacity as such, or
against any Related Party of any of the foregoing acting for the Administrative Agent (or any
such sub-agent) or any Issuing Bank in connection with such capacity. The obligations of the
Lenders under this subsection (c) are subject to the provisions of Section
2.21.

          (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable law, the parties hereto shall not assert, and each hereby waives, any claim
against any other party hereto, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement, any other Loan Document or any agreement
or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan
or Letter of Credit or the use of the proceeds thereof.

          (e) THE BORROWER AGREES TO INDEMNIFY EACH LENDER (INCLUDING THE SWINGLINE LENDER) AND
EACH ISSUING BANK AGAINST ANY DIRECT OR INDIRECT COSTS OR LOSSES (INCLUDING ANY DIRECT LOSSES
DUE TO CURRENCY EXCHANGE RATES OR EXCHANGE CONTROLS), OR REASONABLE EXPENSE WHICH SUCH LENDER
OR ISSUING BANK MAY SUSTAIN OR INCUR AS A CONSEQUENCE OF: (A) ANY FAILURE BY THE BORROWER TO
BORROW OR TO CONVERT OR CONTINUE ANY LOAN HEREUNDER (INCLUDING AS A RESULT OF THE BORROWER’S
FAILURE TO FULFILL ANY OF THE APPLICABLE CONDITIONS SET FORTH IN ARTICLE 4) AFTER
IRREVOCABLE NOTICE OF SUCH BORROWING, CONVERSION OR CONTINUATION HAS BEEN GIVEN PURSUANT
HERETO, (B) ANY PAYMENT, PREPAYMENT OR CONVERSION, ASSIGNMENT OR FUNDING OF A EUROCURRENCY
RATE LOAN REQUIRED BY ANY PROVISION OF THIS AGREEMENT OR OTHERWISE MADE OR DEEMED MADE ON A
DATE OTHER THAN THE LAST DAY OF THE INTEREST PERIOD APPLICABLE THERETO (INCLUDING AS A RESULT
OF THE OPERATION OF SECTION 2.01(c)), (C) ANY DEFAULT IN PAYMENT OR PREPAYMENT OF THE
PRINCIPAL AMOUNT OF ANY LOAN OR ANY REIMBURSEMENT OBLIGATION IN RESPECT OF ANY
L/C DISBURSEMENT OR ANY PART THEREOF OR INTEREST ACCRUED THEREON, AS

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AND WHEN DUE AND
PAYABLE (AT THE DUE DATE THEREOF, WHETHER BY SCHEDULED MATURITY, ACCELERATION, IRREVOCABLE
NOTICE OF PREPAYMENT OR OTHERWISE), (D) THE OCCURRENCE OF ANY EVENT OF DEFAULT, OR (E) THE
FAILURE TO PAY ANY LOAN OR L/C DISBURSEMENT DENOMINATED IN AN AVAILABLE CURRENCY, OR ANY
INTEREST THEREON, IN THE AVAILABLE CURRENCY IN WHICH SUCH LOAN WAS MADE OR APPLICABLE LETTER
OF CREDIT ISSUED, INCLUDING, IN EACH SUCH CASE, ANY LOSS OR REASONABLE EXPENSE SUSTAINED OR
INCURRED OR TO BE SUSTAINED OR INCURRED BY SUCH LENDER OR ISSUING BANK IN LIQUIDATING OR
EMPLOYING DEPOSITS FROM THIRD PARTIES, OR WITH RESPECT TO COMMITMENTS MADE OR OBLIGATIONS
UNDERTAKEN WITH THIRD PARTIES, TO EFFECT OR MAINTAIN ANY LOAN OR LETTER OF CREDIT HEREUNDER
OR ANY PART THEREOF. SUCH LOSS SHALL INCLUDE, AS APPLICABLE: (i) AN AMOUNT EQUAL TO THE
EXCESS, IF ANY, AS REASONABLY DETERMINED BY SUCH LENDER OR ISSUING BANK, OF (A) ITS COST OF
OBTAINING THE FUNDS FOR THE LOAN OR LETTER OF CREDIT BEING PAID, PREPAID, CONVERTED OR NOT
BORROWED FOR THE PERIOD FROM THE DATE OF SUCH PAYMENT, PREPAYMENT OR FAILURE TO BORROW TO THE
LAST DAY OF THE INTEREST PERIOD FOR SUCH LOAN (OR, IN THE CASE OF A FAILURE TO BORROW THE
INTEREST PERIOD FOR SUCH LOAN WHICH WOULD HAVE COMMENCED ON THE DATE OF SUCH FAILURE) OVER
(B) THE AMOUNT OF INTEREST (AS REASONABLY DETERMINED BY SUCH LENDER) THAT WOULD BE REALIZED
BY SUCH LENDER IN RE–EMPLOYING THE FUNDS SO PAID, PREPAID OR NOT BORROWED FOR SUCH PERIOD OR
INTEREST PERIOD, AS THE CASE MAY BE, (ii) ANY LOSS INCURRED IN LIQUIDATING OR CLOSING OUT ANY
FOREIGN CURRENCY CONTRACT, AND (iii) ANY LOSS ARISING FROM ANY CHANGE IN THE VALUE OF DOLLARS
IN RELATION TO ANY LOAN OR L/C DISBURSEMENT MADE IN ANOTHER AVAILABLE CURRENCY WHICH WAS NOT
PAID ON THE DATE DUE OR WHICH WAS NOT PAID IN THE AVAILABLE CURRENCY IN WHICH IT WAS MADE OR
IN WHICH THE APPLICABLE LETTER OF CREDIT WAS ISSUED.

          (f) AT THE REQUEST OF BORROWER, IN ORDER TO REDUCE THE TRANSACTION COSTS INCURRED BY
BORROWER IN CONNECTION WITH THE CLOSING OF THIS TRANSACTION, INSTEAD OF TERMINATING THE PRIOR
CREDIT AGREEMENT AND ALL LOAN DOCUMENTS EXECUTED IN CONNECTION WITH THE PRIOR CREDIT
AGREEMENT AND THEN UTILIZING NEW LOAN DOCUMENTS, ADMINISTRATIVE AGENT AND LENDERS HAVE AGREED
WITH BORROWER’S REQUEST THAT THEY (SUBJECT TO THE TERMS CONTAINED HEREIN) FUND THE PAYOFF OF
THE INDEBTEDNESS UNDER THE PRIOR CREDIT AGREEMENT BUT KEEP THE PRIOR LOAN DOCUMENTS IN PLACE
AND MODIFY, AMEND AND EXTEND (BUT NOT EXTINGUISH) SUCH DOCUMENTS AND ADMIT NEW LENDERS AND
REMOVE JPMORGAN CHASE BANK, N.A. AS ADMINISTRATIVE AGENT AND COLLATERAL AGENT AND REMOVE
CERTAIN LENDERS AND SUBSTITUTE BANK OF AMERICA AS THE NEW ADMINISTRATIVE AGENT AND COLLATERAL
AGENT. AS A CONDITION PRECEDENT TO BANK OF AMERICA AND THE NEW LENDERS ACCEPTING THEIR NEW
ROLES HEREUNDER, BORROWER SHALL INDEMNIFY BANK OF AMERICA AND THE NEW LENDERS HEREUNDER AND
HOLD THEM HARMLESS IN THE MANNER STATED IN SECTION 8.05(b) EXCEPT THAT IN THE CASE OF
THIS INDEMNITY IT SHALL BE FOR ANY AND ALL LOSSES, CLAIMS, DAMAGES, LIABILITIES AND RELATED
EXPENSES INCURRED BY AN INDEMNITEE RELATED TO THE ACTIONS OF BORROWER WHICH OCCURRED DURING
THAT PERIOD OF TIME PRIOR TO THE EFFECTIVE DATE. ALL
EXISTING LETTERS OF CREDIT SHALL BE DEEMED TO HAVE BEEN ISSUED PURSUANT

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HERETO, AND FROM
AND AFTER THE EFFECTIVE DATE SHALL BE SUBJECT TO AND GOVERNED BY THE TERMS AND CONDITIONS
HEREOF.

          (g) Payments. All amounts due under this Section shall be payable not later
than ten Business Days after demand therefor.

          (h) Survival. The agreements in this Section shall survive the resignation of
the Administrative Agent, the replacement of any Lender, the termination of the Total
Commitment and the repayment, satisfaction or discharge of all the other obligations
hereunder.

     Section 8.06. Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time
to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general
or special, time or demand, provisional or final) at any time held and other indebtedness at any
time owing by such Lender or Affiliate to or for the credit or the account of the Borrower against
any of and all the obligations of the Borrower now or hereafter existing under this Agreement or
any Swap Agreement held by such Lender or Affiliate, irrespective of whether or not such Lender or
Affiliate shall have made any demand and although such obligations may be unmatured. The rights of
each Lender and Affiliate of a Lender under this Section are in addition to other rights and
remedies (including other rights of setoff) which such Lender or Affiliate may have and are subject
to the terms of the Intercreditor Agreement.

     Section 8.07. Replacement of Lenders. If any Lender requests compensation under
Section 2.11 or if any Lender delivers a notice pursuant to Section 2.12, 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 2.16, or if any Lender is a Defaulting
Lender, or if any Lender fails to execute and deliver any consent, amendment or waiver to this
Agreement or any other Loan Document requested by the Borrower by the date specified by the
Borrower (or gives the Borrower written notice prior to such date of its intention not to do so),
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, and consents required by, Section 8.04),
all of its interests, rights and obligations under this Agreement and the related Loan Documents to
an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender
accepts such assignment), provided that:

     (a) the Borrower shall have paid to the Administrative Agent the assignment fee
specified in Section 8.04(b)(iv);

     (b) such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and L/C Disbursements, accrued interest thereon, accrued fees and all
other amounts payable to it hereunder and under the other Loan Documents from the assignee
(to the extent of such outstanding principal and accrued interest and fees) or the Borrower
(in the case of all other amounts);

     (c) in the case of any such assignment resulting from a claim for compensation under
Section 2.11 or payments required to be made pursuant to Section 2.16, such
assignment will result in a reduction in such compensation or payments thereafter; and

     (d) such assignment does not conflict with applicable laws.

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 81

 

 

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

     Section 8.08. Governing Law; Jurisdiction, Etc.

     (a) GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF TEXAS.

     (b) SUBMISSION TO JURISDICTION. THE BORROWER AND EACH OTHER OBLIGATED PARTY
IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF TEXAS SITTING IN DALLAS COUNTY AND OF THE UNITED
STATES DISTRICT COURT OF THE NORTHERN DISTRICT OF TEXAS, AND ANY APPELLATE COURT FROM ANY
THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE
PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH
ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH TEXAS STATE COURT OR, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES
HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND
MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY
RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR ANY ISSUING BANK MAY OTHERWISE HAVE TO
BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST
THE BORROWER OR ANY OTHER OBLIGATED PARTY OR ITS PROPERTIES IN THE COURTS OF ANY
JURISDICTION.

     (c) WAIVER OF VENUE. THE BORROWER AND EACH OTHER OBLIGATED PARTY IRREVOCABLY
AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION
THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN
PARAGRAPH (b) OF THIS SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

     (d) SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF
PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 8.01. NOTHING IN THIS
AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY APPLICABLE LAW.

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 82

 

 

     Section 8.09. Waivers; Amendments, Etc.

          (a) No failure or delay of any Obligated Party, the Administrative Agent, any Issuing Bank or
any Lender in exercising any power or right hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and remedies of the Administrative Agent, the
Issuing Banks and the Lenders hereunder are cumulative and are not exclusive of any rights or
remedies which they would otherwise have. No waiver of any provision of any Loan Document or
consent to any departure therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) below, and then such waiver or consent shall be effective only
in the specific instance and for the purpose for which given. No notice or demand on any Obligated
Party in any case shall entitle such party to any other or further notice or demand in similar or
other circumstances.

          (b) No amendment or waiver of any provision of this Agreement or any other Loan Document, and
no consent to any departure by the Borrower or any other Obligated Party therefrom, shall be
effective unless in writing signed by the Required Lenders and the Borrower or the applicable
Obligated Party, as the case may be, and acknowledged by the Administrative Agent, and each such
waiver or consent shall be effective only in the specific instance and for the specific purpose for
which given; provided, however, that no such amendment, waiver or consent shall:

              (i) waive any condition set forth in Section 4.02 without the written consent of
each Lender (which consent may be provided as described in the final paragraph of Section
4.02);

              (ii) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated
pursuant to Article 6) without the written consent of such Lender;

 

              (iii) postpone any date fixed by this Agreement or any other Loan Document for any payment
or mandatory prepayment of principal, interest, fees or other amounts due to the Lenders (or any
of them) hereunder or under any other Loan Document without the written consent of each Lender
directly affected thereby;
 

              (iv) reduce the principal of, or the rate of interest specified herein on, any Loan or L/C
Borrowing, or (subject to clause (iv) of the second proviso to this Section 8.09)
any fees or other amounts payable hereunder or under any other Loan Document without the written
consent of each Lender directly affected thereby; provided, however, that only
the consent of the Required Lenders shall be necessary (i) to amend Section 2.07 or to
waive any obligation of any Borrower to pay interest or Letter of Credit Fees at the rate
provided in Section 2.07 or (ii) to amend any financial covenant hereunder (or any
defined term used therein) even if the effect of such amendment would be to reduce the rate of
interest on any Loan or L/C Borrowing or to reduce any fee payable hereunder;

              (v) change any Section in a manner that would alter the pro rata sharing of payments
required thereby without the written consent of each Lender;

              (vi) amend Section 1.06 or the definition of “Alternative Currency” without the
written consent of each Lender; or
 

              (vii) change any provision of this Section or the definition of “Required Lenders” or any
other provision hereof specifying the number or percentage of Lenders required to amend, waive or
otherwise modify any rights hereunder or make any determination or grant any consent hereunder
without the written consent of each Lender;

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 83

 

 

     and, provided further, that (i) no amendment, waiver or consent shall, unless
in writing and signed by any Issuing Bank in addition to the Lenders required above, affect the
rights or duties of any Issuing Bank under this Agreement or any document relating to any Letter of
Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless in writing
and signed by the Swingline Lender in addition to the Lenders required above, affect the rights or
duties of the Swingline Lender under this Agreement; (iii) no amendment, waiver or consent shall,
unless in writing and signed by the Administrative Agent in addition to the Lenders required above,
affect the rights or duties of the Administrative Agent under this Agreement or any other Loan
Document; and (iv) any contract between the Administrative Agent and the Borrower may be amended,
or rights or privileges thereunder waived, in a writing executed only by the parties thereto.
Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to
approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of
such Lender may not be increased or extended without the consent of such Lender.

     Section 8.10. Entire Agreement; Amendment and Restatement. THIS AGREEMENT (INCLUDING
THE SCHEDULES AND EXHIBITS HERETO) AND THE OTHER LOAN DOCUMENTS CONSTITUTE A “LOAN
AGREEMENT” AS DEFINED IN SECTION 26.02(a) OF THE TEXAS BUSINESS AND COMMERCE CODE, AND
REPRESENT THE ENTIRE CONTRACT AMONG THE PARTIES RELATIVE TO THE SUBJECT MATTER HEREOF AND THEREOF.
ANY PREVIOUS AGREEMENT (INCLUDING, WITHOUT LIMITATION, THE PRIOR CREDIT AGREEMENT) AMONG THE
PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF IS SUPERSEDED BY THIS AGREEMENT AND THE OTHER
LOAN DOCUMENTS. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. This Agreement amends
and restates in its entirety the Prior Credit Agreement. The execution of this Agreement and the
other Loan Documents executed in connection herewith does not extinguish the indebtedness, liens or
loan documents outstanding in connection with the Prior Credit Agreement and the other Loan
Documents nor does it constitute a novation with respect to such indebtedness. Each Obligated
Party that was a party to any Loan Document prior to the date hereof represents and warrants that
as of the Effective Date there are no claims or offsets against or defenses or counterclaims to its
obligations under the Prior Credit Agreement or any of the other documents executed in connection
therewith. To induce the Lenders, the Issuing Banks and the Administrative Agent to enter into
this Agreement, each such Obligated Party (by entering into the Loan Documents to which it is a
party) waives any and all such claims, offsets, defenses or counterclaims, whether known or
unknown, arising prior to the Effective Date and relating to the Prior Credit Agreement, Loan
Documents or the transactions contemplated hereby or thereby. Without limiting the generality of
the foregoing and notwithstanding any Loan Document to the contrary, each Obligated Party (by
entering into the Loan Documents to which it is a party) the Administrative Agent, the Issuing
Banks and the Lenders agree and acknowledge that the term “Credit Agreement” as used in
each Loan Document means this Agreement.

     Section 8.11. Severability. In the event any one or more of the provisions contained
in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein shall not in any way be
affected or impaired thereby. The parties shall endeavor in good–faith negotiations to replace the
invalid, illegal or unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable provisions.

     Section 8.12. Counterparts. This Agreement may be executed in two or more
counterparts and on telecopy counterparts, each of which shall constitute an original but all of
which when taken together shall constitute but one contract, and shall become effective as provided
in Section 8.03.

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 84

 

 

     Section 8.13. Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and are not to affect
the construction of, or to be taken into consideration in interpreting, this Agreement.

     Section 8.14. Interest Rate Limitation.

          (a) Notwithstanding anything herein to the contrary, if at any time the applicable interest
rate, together with all fees and charges which are treated as interest under applicable law
(collectively the “Charges”), as provided for herein or in any other document executed in
connection herewith, or otherwise contracted for, charged, received, taken or reserved by any
Lender, shall exceed the Maximum Rate (as defined below) which may be contracted for, charged,
taken, received or reserved by such Lender in accordance with applicable law, the rate of interest
payable on the Loans of such Lender, together with all Charges payable to such Lender, shall be
limited to the Maximum Rate. As used herein, the term “Maximum Rate” means, at any time
and with respect to any Lender, the maximum rate of non–usurious interest under applicable law that
such Lender may charge Borrower. The Maximum Rate shall be calculated in a manner that takes into
account any and all fees, payments, and other charges contracted for, charged, or received in
connection with the Loan Documents that constitute interest under applicable law. Each change in
any interest rate provided for herein based upon the Maximum Rate resulting from a change in the
Maximum Rate shall take effect without notice to Borrower at the time of such change in the Maximum
Rate. For purposes of determining the Maximum Rate under Texas law, the applicable rate ceiling
shall be the weekly ceiling described in, and computed in accordance with Chapter 303 of the Texas
Finance Code.

          (b) If the amount of interest, together with all Charges, payable for the account of any
Lender in respect of any interest computation period is reduced pursuant to paragraph (a)
of this Section and the amount of interest, together with all Charges, payable for such Lender’s
account in respect of any subsequent interest computation period, computed pursuant to Section
2.06, would be less than the Maximum Rate, then the amount of interest, together with all
Charges, payable for such Lender’s account in respect of such subsequent interest computation
period shall, to the extent permitted by applicable law, be automatically increased to such Maximum
Rate; provided that at no time shall the aggregate amount by which interest paid for the
account of any Lender has been increased pursuant to this paragraph (b) exceed the
aggregate amount by which interest, together with all Charges, paid for its account has theretofore
been reduced pursuant to paragraph (a) of this Section.

          (c) No provision of this Agreement shall require the payment or the collection of interest in
excess of the maximum amount permitted by applicable law. If any excess of interest in such
respect is hereby provided for, or shall be adjudicated to be so provided, in this Agreement or
otherwise in connection with this loan transaction, the provisions of this Section shall govern and
prevail and neither the Borrower nor the sureties, guarantors, successors, or assigns of the
Borrower shall be obligated to pay the excess amount of such interest or any other excess sum paid
for the use, forbearance, or detention of sums loaned pursuant hereto. In the event any Lender
ever receives, collects, or applies as interest any such sum, such amount which would be in excess
of the maximum amount permitted by applicable law shall be applied as a payment and reduction of
the principal of the Loans; and, if the principal of the Loans has been paid in full, any remaining
excess shall forthwith be paid to the Borrower. In determining whether or not the interest paid or
payable exceeds the Maximum Rate, the Borrower and each Lender shall, to the extent permitted by
applicable law, (a) characterize any non–principal payment as an expense, fee, or premium rather
than as interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the
entire contemplated term of the Loans so that interest for the entire term does not exceed the
Maximum Rate.

     Section 8.15. Treatment of Certain Information; Confidentiality. Each of the
Administrative Agent, the Lenders and the Issuing Banks agrees to maintain the confidentiality of the Information (as defined below),

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 85

 

 

except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’
respective partners, directors, officers, employees, agents, advisors and representatives (it being
understood that the Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information confidential), (b) to the extent
requested by any regulatory authority purporting to have jurisdiction over it (including any
self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the
extent required by applicable laws or regulations or by any subpoena or similar legal process, (d)
to any other party hereto, (e) in connection with the exercise of any remedies hereunder or under
any other Loan Document or any action or proceeding relating to this Agreement or any other Loan
Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement
containing provisions substantially the same as those of this Section, to (i) any assignee of or
Participant in, or any prospective assignee of or Participant in, any of its rights or obligations
under this Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap
or derivative transaction relating to the Borrower and its obligations, (g) with the consent of the
Borrower or (h) to the extent such Information (x) becomes publicly available other than as a
result of a breach of this Section or (y) becomes available to the Administrative Agent, any
Lender, any Issuing Bank or any of their respective Affiliates on a nonconfidential basis from a
source other than the Borrower.

     For purposes of this Section, “Information” means all information received from the
Borrower or any Subsidiary relating to the Borrower or any Subsidiary or any of their respective
businesses, other than any such information that is available to the Administrative Agent, any
Lender or any Issuing Bank on a nonconfidential basis prior to disclosure by the Borrower or any
Subsidiary, provided that, in the case of information received from the Borrower or any Subsidiary
after the date hereof, such information is clearly identified at the time of delivery as
confidential. Any Person required to maintain the confidentiality of Information as provided in
this Section shall be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

Each of the Administrative Agent, the Lenders and the Issuing Banks acknowledges that (a) the
Information may include material non-public information concerning the Borrower or a Subsidiary, as
the case may be, (b) it has developed compliance procedures regarding the use of material
non-public information and (c) it will handle such material non-public information in accordance
with applicable law, including Federal and state securities laws.

     Section 8.16. Non–Application of Chapter 346 of the Texas Finance Code. The
provisions of Chapter 346 of the Texas Finance Code are specifically declared by the parties hereto
not to be applicable to this Agreement or to the transactions contemplated hereby.

     Section 8.17. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT
OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED
TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION.

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 86

 

 

     Section 8.18. USA PATRIOT Act Notice. Each Lender that is subject to the Act (as
hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender)
hereby notifies the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of
Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain,
verify and record information that identifies the Borrower, which information includes the name and
address of the Borrower and other information that will allow such Lender or the Administrative
Agent, as applicable, to identify the Borrower in accordance with the Act.

     Section 8.19. Judgment Currency. This is a loan transaction in which the
specification of the Available Currency is of the essence, and the stipulated currency shall in
each instance be the currency of account and payment in all instances. A payment obligation in one
currency hereunder (the “Original Currency”) shall not be discharged by an amount paid in
another currency (the “Other Currency”), whether pursuant to any judgment expressed in or
converted into any Other Currency or in another place except to the extent that such tender or
recovery results in the effective receipt by a party hereto of the full amount of the Original
Currency payable to such party. If for the purpose of obtaining judgment in any court it is
necessary to convert a sum due hereunder in the Original Currency into the Other Currency, the rate
of exchange that shall be applied shall be that at which in accordance with normal banking
procedures the Administrative Agent could purchase Original Currency at the relevant office with
the Other Currency on the Business Day next preceding the day on which such judgment is rendered.
The obligation of the Borrower and the Guarantors in respect of any such sum due from it to the
Administrative Agent, any Issuing Bank or any Lender under any Loan Document (in this Section
8.19 called an “Entitled Person”) shall, notwithstanding the rate of exchange actually
applied in rendering such judgment, be discharged only to the extent that on the Business Day
following receipt by such Entitled Person of any sum adjudged to be due hereunder in the Other
Currency such Entitled Person may in accordance with normal banking procedures purchase the
Original Currency with the amount of the judgment currency so adjudged to be due; and the Borrower,
as a separate obligation and notwithstanding any such judgment, agrees to indemnify such Entitled
Person against, and to pay such Entitled Person on demand, in the Original Currency, the amount (if
any) by which the sum originally due to such Entitled Person in the Original Currency hereunder
exceeds the amount of the Other Currency so purchased.

     Section 8.20. Payments Set Aside. To the extent that any payment by or on behalf of
any Borrower is made to the Administrative Agent, any Issuing Bank or any Lender, or the
Administrative Agent, any Issuing Bank or any Lender exercises its right of setoff, and such
payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to
be fraudulent or preferential, set aside or required (including pursuant to any settlement entered
into by the Administrative Agent, such Issuing Bank or such Lender in its discretion) to be repaid
to a trustee, receiver or any other party, in connection with any proceeding under the Bankruptcy
Code of the United States or any other liquidation, conservatorship, bankruptcy, assignment for the
benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or
similar debtor relief Laws of the United States or other applicable jurisdictions from time to time
in effect and affecting the rights of creditors, or otherwise, then (a) to the extent of such
recovery, the obligation or part thereof originally intended to be satisfied shall be revived and
continued in full force and effect as if such payment had not been made or such setoff had not
occurred, and (b) each Lender and each Issuing Bank severally agrees to pay to the Administrative
Agent upon demand its applicable share (without duplication) of any amount so recovered from or
repaid by the Administrative Agent, plus interest thereon from the date of such demand to the date
such payment is made at a rate per annum equal to the applicable Overnight Rate from time to time
in effect, in the applicable currency of such recovery or payment. The obligations of the Lenders
and the Issuing Banks under clause (b) of the
preceding sentence shall survive the payment in full of the obligations hereunder and the
termination of this Agreement.

     Section 8.21. Time is of the Essence. Time is of the essence in the performance of
the Loan Documents.

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 87

 

 

     Section 8.22. Independence of Covenants. All covenants under the Loan Documents shall
be given independent effect so that if a particular action or condition is not permitted by any of
such covenants, the fact that it would be permitted by an exception to, or be otherwise within the
limitations of, another covenant shall not avoid the occurrence of a Default if such action is
taken or such condition exists.

[Signature Page Follows]

SECOND AMENDED AND RESTATED REVOLVING CREDIT FACILITY AGREEMENT, Page — 88

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	 	LENNOX INTERNATIONAL INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Susan K. Carter, Executive Vice President, Chief
	 

	 	 	 	Financial Officer and Treasurer

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 1

 

 

	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as Administrative Agent
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	David A. Johanson
	 

	 	 	 	Vice President

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 2

 

 

	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as a Lender, as an Issuing
	 	 	Bank and as Swingline Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Steven A. Mackenzie
	 

	 	 	 	Senior Vice President

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 3

 

 

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 4

 

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NOVA SCOTIA
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 5

 

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF TOKYO-MITSUBISHI, LTD.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 6

 

 

	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 7

 

 

	 	 	 	 	 
	 	 	THE ROYAL BANK OF SCOTLAND plc
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Grover A. Fitch
	 

	 	 	 	Senior Vice President

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 8

 

 

	 	 	 	 	 
	 	 	WACHOVIA BANK, NA
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Jennifer L. Norris
	 

	 	 	 	Senior Vice President

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 9

 

 

	 	 	 	 	 	 	 
	 	 	BANK OF TEXAS, N.A.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 10

 

 

	 	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 11

 

 

	 	 	 	 	 
	 	 	COMPASS BANK
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Michael Keith
	 

	 	 	 	Senior Vice President

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 12

 

 

	 	 	 	 	 	 	 
	 	 	THE NORTHERN TRUST COMPANY
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 13

 

 

	 	 	 	 	 
	 	 	COMERICA BANK
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Janet L. Wheeler
	 

	 	 	 	Assistant Vice President

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 14

 

 

	 	 	 	 	 
	 	 	AMEGY BANK NATIONAL ASSOCIATION
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Melinda N. Jackson
	 

	 	 	 	Senior Vice President

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 15

 

 

	 	 	 	 	 	 	 
	 	 	UBS LOAN FINANCE LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 16

 

 

	 	 	 	 	 	 	 
	 	 	CALYON NEW YORK BRANCH
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 17

 

 

	 	 	 	 	 
	 	 	FIRST TENNESSEE BANK NATIONAL ASSOCIATION
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Stephen R. Deaton
	 

	 	 	 	Senior Vice President

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 18

 

 

	 	 	 	 	 
	 	 	REGIONS BANK
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Robert J. Merkle
	 

	 	 	 	Senior Vice President

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 19

 

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

SCHEDULE 8.01 — Administrative Agent’s Office; Certain Addresses for Notices — Page 20

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