Document:

EX-4.2

Exhibit 4.2

 

 

CREDIT AGREEMENT

Among

ABN AMRO BANK N.V.

(THE “BANK”)

and

TELVENT
CANADA LTD

(THE “BORROWER”)

Dated as of March 31, 2008

 

 

 

 

Table of Contents

	 	 	 	 	 	 	 
	Article 1 INTERPRETATION	 	 	1	 
	1.1
	 	Definitions	 	 	1	 
	1.2
	 	Per Annum Calculations	 	 	13	 
	1.3
	 	Currency	 	 	13	 
	1.4
	 	Interest Act (Canada)	 	 	13	 
	1.5
	 	Application Of Generally Accepted Accounting Principles	 	 	13	 
	1.6
	 	Computation Of Time Periods	 	 	13	 
	1.7
	 	Schedules	 	 	14	 
	Article 2 THE CREDIT FACILITY	 	 	14	 
	2.1
	 	The Credit Facility	 	 	14	 
	2.2
	 	Manner Of Borrowing	 	 	14	 
	2.3
	 	Purpose	 	 	14	 
	2.4
	 	Availability of the Credit Facility	 	 	15	 
	2.5
	 	Availability Of Facility A Advances	 	 	15	 
	2.6
	 	Availability Of Facility B Advances	 	 	15	 
	2.7
	 	Availability Of Facility C Advances	 	 	15	 
	2.8
	 	Drawdown And Conversion Restrictions	 	 	16	 
	2.9
	 	Notice Periods For Drawdowns, Conversions And Rollovers	 	 	16	 
	2.10
	 	Bank’s Obligations With Respect To Canadian Prime Rate	 	 	 	 
	 
	 	Loans, U.S. Base Rate Loans and Libor Loans	 	 	16	 
	2.11
	 	Irrevocability	 	 	16	 
	2.12
	 	Cancellation Or Reduction Of Credit Facility	 	 	16	 
	2.13
	 	Nature Of Credit Facility	 	 	17	 
	Article 3 SECURITY	 	 	17	 
	3.1
	 	Grant Of Security	 	 	17	 
	Article 4 CONDITIONS PRECEDENT TO DRAWDOWNS	 	 	17	 
	4.1
	 	Conditions For First Drawdown	 	 	17	 
	4.2
	 	Subsequent Drawdowns	 	 	18	 
	4.3
	 	Waiver	 	 	18	 
	Article 5 EVIDENCE OF DRAWDOWNS	 	 	18	 
	5.1
	 	Account Of Record	 	 	18	 
	Article 6 PAYMENTS OF INTEREST AND FEES	 	 	19	 
	6.1
	 	Interest On Canadian Prime Rate Loans	 	 	19	 
	6.2
	 	Interest On U.S. Base Rate Loans	 	 	19	 
	6.3
	 	Interest On Libor Loans	 	 	19	 
	6.4
	 	No Deduction Etc.	 	 	20	 
	6.5
	 	Limit On Rate Of Interest	 	 	20	 
	Article 7 ROLLOVERS	 	 	20	 
	7.1
	 	Selection Of Interest Periods	 	 	20	 
	7.2
	 	Partial Rollovers	 	 	20	 
	Article 8 LETTER OF CREDIT FACILITY	 	 	20	 
	8.1
	 	Obligation To Issue Letters Of Credit	 	 	20	 
	8.2
	 	Types And Amounts	 	 	21	 
	8.3
	 	Conditions	 	 	21	 

 

 

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	8.4
	 	Letter Of Credit Fees	 	 	21	 
	Article 9 CONVERSION OPTIONS	 	 	22	 
	9.1
	 	Conversion Options	 	 	22	 
	Article 10 REPAYMENT	 	 	22	 
	10.1
	 	Repayment Of Excess Over Credit Facility	 	 	22	 
	10.2
	 	Optional Repayment Of Principal	 	 	23	 
	10.3
	 	Mandatory Repayments	 	 	23	 
	Article 11 PLACE AND APPLICATION OF PAYMENTS	 	 	23	 
	11.1
	 	Place Of Payment Of Principal, Interest And Fees	 	 	23	 
	11.2
	 	Funds	 	 	24	 
	11.3
	 	Application Of Payments	 	 	24	 
	Article 12 REPRESENTATIONS AND WARRANTIES	 	 	24	 
	12.1
	 	Representations And Warranties	 	 	24	 
	12.2
	 	Nature Of Representations And Warranties	 	 	29	 
	Article 13 COVENANTS	 	 	29	 
	13.1
	 	Affirmative Covenants Of The Borrower	 	 	29	 
	13.2
	 	Negative Covenants Of The Borrower	 	 	33	 
	13.3
	 	“Most Favored Nations” Covenant	 	 	33	 
	13.4
	 	Successor Corporation	 	 	34	 
	Article 14 EVENTS OF DEFAULT AND ACCELERATION	 	 	34	 
	14.1
	 	Events Of Default	 	 	34	 
	14.2
	 	Acceleration	 	 	36	 
	14.3
	 	Default Interest	 	 	37	 
	14.4
	 	Remedies Cumulative And Waivers	 	 	37	 
	14.5
	 	Termination Of Bank’s Obligations	 	 	38	 
	Article 15 CHANGE OF CIRCUMSTANCES	 	 	38	 
	15.1
	 	Market Disruption	 	 	38	 
	15.2
	 	Change In Law	 	 	38	 
	15.3
	 	Repayment Of Affected Loan	 	 	39	 
	15.4
	 	Illegality	 	 	40	 
	Article 16 COSTS, EXPENSES AND INDEMNIFICATION	 	 	40	 
	16.1
	 	Costs And Expenses	 	 	40	 
	16.2
	 	Set-Up Fee	 	 	41	 
	16.3
	 	Indemnification By The Borrower	 	 	41	 
	16.4
	 	Interest On Unpaid Costs And Expenses	 	 	41	 
	Article 17 GENERAL	 	 	42	 
	17.1
	 	Confidentiality Of Information	 	 	42	 
	17.2
	 	Notice	 	 	42	 
	17.3
	 	Governing Law	 	 	43	 
	17.4
	 	Consent To Jurisdiction	 	 	43	 
	17.5
	 	Judgment Currency	 	 	44	 
	17.6
	 	Benefit Of The Agreement	 	 	44	 
	17.7
	 	Assignment And Novation	 	 	44	 
	17.8
	 	Severability	 	 	44	 
	17.9
	 	Whole Agreement	 	 	45	 
	17.10
	 	Amendments And Waivers	 	 	45	 

 

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	17.11
	 	Further Assurances	 	 	45	 
	17.12
	 	Binding Effect	 	 	45	 
	17.13
	 	Time Of The Essence	 	 	45	 
	17.14
	 	Counterpart Execution	 	 	45	 

 

 

CREDIT AGREEMENT

THIS AGREEMENT MADE as of March 31, 2008.

BETWEEN:

Telvent Canada Ltd., a Corporation, incorporated under the Laws of
Canada, and having an office in the City of Calgary in the Province
of Alberta (herein referred to as the “Borrower”)

OF THE FIRST PART

— and —

ABN AMRO Bank N.V., a Canadian Branch of a Foreign Bank, under the
Bank Act (Canada), and having an office in the City of Toronto in
the Province of Ontario (herein referred to as the “Bank”)

OF THE SECOND PART

WHEREAS the Borrower has requested the Credit Facility in an amount up to U.S. $21,000,000, or the
Equivalent Amount in Canadian Dollars. Borrowings under Facility A will be used specifically to
refinance all amounts outstanding as at March 31, 2008 under the 2003 Credit Agreement in respect
of “Facility A” thereunder and for working capital and general corporate purposes; borrowings under
Facility B will be used to facilitate certain Hedging Agreements; and borrowings under Facility C
will be used for the purposes of replacing the outstanding Letter of Credits as at March 31, 2008
under the 2003 Credit Agreement in respect of “Facility C” thereunder and for issuing additional
standby letters of credit or bank guarantees up to the Facility C Maximum Amount.

NOW THEREFORE, in consideration of the terms, covenants, conditions and provisions hereof, given or
made by each party hereto, to or in favour of all or any of the other parties hereto, and other
good and valuable consideration (receipt and sufficiency whereof is hereby acknowledged by each
party receiving the same) the parties hereto mutually covenant and agree as follows.

ARTICLE 1

INTERPRETATION

1.1 Definitions

In this Agreement, unless something in the subject matter or context is inconsistent
therewith:

1.1.1 “2003 Credit Agreement” means that credit agreement between the Bank and the Borrower, dated
May 2, 2003, as amended from time to time.

1.1.2 “Additional Compensation” has the meaning set out in Section 15.2.

 

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1.1.3 “Advance” means an advance of funds made by the Bank to the Borrower pursuant to the
provisions hereof.

1.1.4 “Affiliate” when used to indicate a relationship of one Person with another Person, means a
Person (the “First Person”) of which another Person (the “Second Person”) beneficially owns or
controls, directly or indirectly:

	 	(a)	 	more than 30% of all of the voting securities of the First Person if the First
Person is a an entity, the voting securities of which are publicly listed, or
	 
	 	(b)	 	more than 50% of all of the voting securities of the First Person if the First
Person is an entity, the voting securities of which are not publicly listed, or
	 
	 	(c)	 	the right to direct, or cause the direction of, the management and policies of
the First Person by contract, or otherwise.

1.1.5 “Agreement” means this agreement and all amendments made hereto in accordance with the
provisions hereof.

1.1.6 “Alternative Financing Arrangement” means any financing arrangement between the Borrower and
any other Person or Persons, other than the Bank or its Affiliates, including but not limited to
any form of credit facility, facility for the provision of letters of credit or letters of
guarantee, Off-Balance Sheet Liabilities or Hedging Agreements, but shall exclude the Master
Accounts Receivable Purchase Agreement among ABN AMRO Bank N.V., Telvent Canada Ltd., Telvent USA
Inc. and Miner And Miner, Consulting Engineers, Incorporated Dated as of December 7, 2007.

1.1.7 “Applicable L/C Fee Percentage” means the factor for determining the fee to be charged by the
Bank to the Borrower, calculated on the basis of a rate per annum equal to 0.75 percent of the face
amount of the Letter of Credit at the time of issuance by the Bank.

1.1.8 “Bank” means ABN AMRO Bank N.V.

1.1.9 “Banking Day” means in respect of (i) Canadian Prime Loans, a day on which banks are open for
business in Toronto, Ontario, (ii) U.S. Base Rate Loans a day on which banks are open for business
in Toronto, Ontario, and New York, New York, (iii) Libor Loans in Canadian Dollars a day on which
banks are open in Toronto, Ontario, and London, England, (iv) Libor Loans in United States Dollars
a day on which banks are open in Toronto, Ontario, New York, New York and London, England and for
all other purposes shall mean a day on which banks are open in Toronto, Ontario and Chicago,
Illinois, but does not in any event include a Saturday or a Sunday.

1.1.10 “Base Rate Margin” means an additional amount of Zero (0) basis points per annum to be added
to the Canadian Prime Rate or the U.S. Base Rate, as the case may be, for the purposes of
calculating the amount of interest to be paid by the Borrower hereunder.

1.1.11 “Borrower” means Telvent Canada Ltd.

 

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1.1.12 “Borrower’s Audited Financial Statements” means the audited financial statements that the
Borrower is required to deliver to the Bank pursuant to Section 13.1.6(a).

1.1.13 “Borrower’s Financial Statements” means the Borrower’s Audited Financial Statements and the
Borrower’s Interim Financial Statements.

1.1.14 “Borrower’s Interim Financial Statements” means the unaudited financial statements that the
Borrower is required to deliver to the Bank pursuant to Section 13.1.6(b).

1.1.15 “Borrower’s Property” means all lands and properties owned or occupied by the Borrower or
any of its Subsidiaries.

1.1.16 “Borrower’s Representations Certificate” means the Officer’s Certificate in the form of
Schedule 1.7.9 annexed hereto.

1.1.17 “Canadian Dollars” and “Cdn. $” mean the lawful money of Canada.

1.1.18 “Canadian Prime Rate” means the prime lending rate of the Bank, such rate being a variable
per annum reference rate of interest, as announced and adjusted by the Bank from time to time, for
Canadian Dollar loans made by the Bank in Canada.

1.1.19 “Canadian Prime Rate Loan” means an Advance in, or Conversion into, Canadian Dollars made by
the Bank to the Borrower on which the Borrower has specified that interest is to be calculated by
reference to the Canadian Prime Rate.

1.1.20 “Capitalized Lease” means, with respect to any Person, any lease of property by such Person
as lessee which would be capitalized on a balance sheet of such Person prepared in accordance with
GAAP.

1.1.21 “Capitalized Lease Obligations” means with respect to any Person, the amount of the
obligations of such Person under Capitalized Leases which would be capitalized on a balance sheet
of such Person prepared in accordance with GAAP.

1.1.22 “Constituent Documents” means as applied to any Person (other than a natural person), the
certificate of incorporation, articles of incorporation or certificate of formation, or other
document evidencing the formation or incorporation of that Person, by-laws, partnership agreement,
joint venture agreement or other form of agreement creating or forming that Person and any other
applicable organizational document of that Person.

1.1.23 “Conversion” means a conversion of a Loan pursuant to Section 9.1.

1.1.24 “Conversion Date” means the date specified by the Borrower as being the date on which the
Borrower has elected to convert one type of Loan into another type of Loan and which shall be a
Banking Day.

1.1.25 “Conversion Notice” means a notice substantially in the form annexed hereto as Schedule
1.7.2.

 

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1.1.26 “Credit Facility” means the credit facility to make available to the Borrower the certain
amounts under Facility A, Facility B and Facility C.

1.1.27 “Documents” means this Agreement and all certificates and other documents delivered or to be
delivered to the Bank pursuant hereto or thereto, including but not limited to the ISDA Agreement
and the Master Indemnity Reimbursement Agreement for Letters of Credit and, when used in relation
to any Person, the term “Documents” shall mean and refer to the documents executed and delivered by
such Person in connection with the creation and maintenance of this Facility.

1.1.28 “Drawdown” means an Advance of a Canadian Prime Rate Loan, a U.S. Base Rate Loan or a Libor
Loan, as the case may be.

1.1.29 “Drawdown Date” means the date on which a Drawdown is made by the Borrower pursuant to the
provisions hereof and which shall be a Banking Day.

1.1.30 “Drawdown Notice” means a notice substantially in the form annexed hereto as Schedule 1.7.1.

1.1.31 “Environmental Contamination” means any discharge, abandonment, addition, deposit,
dispersal, disposal, dumping, emitting, emptying, escape, leach, leak, migration, pouring, pumping,
release or spill, (accidental or otherwise) of a hazardous material in violation of any
environmental legislation originating on the Borrower’s Property and capable of causing material
injury to any Person or to the atmosphere, soil, surface or subsurface water, property, animal or
plant life.

1.1.32 “Environmental Legislation” means any and all Requirements of Law or decisions, permits,
licences, authorizations or consents of any Regulatory Authority in force from time to time which
regulate the environment, occupational safety, health, product liability or transportation, or
impose a penalty or civil liability on any Person responsible for environmental contamination and
which are applicable to the Borrower’s or its Subsidiaries business, assets or undertaking, and
includes any prosecution, order, decision, notice, direction, report, recommendation or request
issued, rendered or made by any Regulatory Authority in connection with environmental legislation.

1.1.33 “Equivalent Amount” means, on any date, the equivalent amount in Canadian Dollars or United
States Dollars, as the case may be, after giving effect to a conversion of a specified amount of
Canadian Dollars to United States Dollars or of United States Dollars to Canadian Dollars, as the
case may be, at the noon rate as quoted by the Bank of Canada or, if not so quoted, the simple
average of the spot rates quoted for wholesale transactions by ABN AMRO Bank NV, in Chicago,
Illinois at approximately noon (Toronto Time) on that date in accordance with their normal
practice.

1.1.34 “Event of Default” means any of the events described in Section 14.1.

1.1.35 “Facility” means Facility A, Facility B or Facility C and “Facilities” means Facility A,
Facility B and Facility C.

 

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1.1.36 “Facility A” means subject to Section 2.4 the demand revolving credit facility in the
maximum aggregate principal amount not to exceed the Facility A Maximum Amount, to be made
available to the Borrower by the Bank for the repayment of amounts owing under “Facility A” of the
2003 Credit Agreement and general corporate purposes, in accordance with the provisions hereof.

1.1.37 “Facility A Maximum Amount” means U.S. $3,000,000 or the Equivalent Amount in Canadian
Dollars, subject to any reduction in accordance with the provisions hereof.

1.1.38 “Facility B” means subject to Section 2.4 the hedging facility in the maximum aggregate
amount, based on the Bank’s internal marked to market calculations, not to exceed the Facility B
Maximum Amount, to be made available to the Borrower by the Bank solely for the purposes of
financing Hedging Agreements entered into by the Borrower, in accordance with the provisions
hereof.

1.1.39 “Facility B Maximum Amount” means U.S. $6,000,000 or the Equivalent Amount in Canadian
Dollars, subject to any reduction in accordance with the provisions hereof.

1.1.40 “Facility C” means subject to Section 2.4 the standby letters of credit facility, including
the Facility C Sublimit, in the maximum aggregate principal amount not to exceed the Facility C
Maximum Amount, to be made available to the Borrower by the Bank solely for the purposes of issuing
standby Letters of Credit or bank guarantees, in accordance with the provisions hereof.

1.1.41 “Facility C Maximum Amount” means U.S. $12,000,000 or the Equivalent Amount in Canadian
Dollars, which includes the Facility C Sublimit Amount, subject to any reduction in accordance with
the provisions hereof.

1.1.42 “Facility C Sublimit” means that portion of Facility C which is available for the purposes
of issuing standby Letters of Credit or bank guarantee having an expiry date of more than one year
but not exceeding three years after the date of issue of the Letter of Credit or bank guarantee.

1.1.43 “Facility C Sublimit Amount” means U.S. $5,000,000 or the Equivalent Amount in Canadian
Dollars, which may be issued in respect of Letters of Credit under the Facility C Sublimit, subject
to any reduction in accordance with the provisions hereof.

1.1.44 “GAAP” means generally accepted accounting principles in Canada in respect of entities
operating in Canada (“Canadian GAAP”) and generally accepted accounting principles in the United
States in respect of entities operating in the United States of America or its territories and
possessions (“U.S. GAAP”), as the case may be, as in effect at the date hereof.

1.1.45 “GIT Guarantee” means a guarantee by the Guarantor of any and all amounts from time to time
owing to the Bank by the Borrower, wheresoever arising, including, but not limited to the
Obligations, substantially in the form of Schedule 1.7.8 hereto.

1.1.46 “Guarantor” means Telvent GIT S.A., a corporation incorporated under the laws of Spain,
together with its successors and assigns.

 

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1.1.47 “Guarantor’s Representations Certificate” means the Officer’s Certificate in the form of
Schedule 1.7.10 annexed hereto.

1.1.48 “Hazardous Materials” means any substance, class of substances or mixture of substances that
is entering or capable of entering the environment in a quantity or concentration or under
conditions that may constitute an immediate or long-term adverse effect, or which may be hazardous,
toxic, injurious, or dangerous to persons, property, air, land, water, flora, fauna or wildlife,
and includes a substance or thing containing such a substance, including, without limiting the
generality of the foregoing, any contaminants, pollutants, dangerous substances, liquid wastes,
industrial wastes, hauled liquid wastes, toxic substances, hazardous wastes, hazardous materials or
hazardous substances as defined in or pursuant to any environmental legislation pursuant thereto.

1.1.49 “Hedging Agreement” means any agreement, whether or not in writing, relating to any
transaction that is a rate swap, basis swap, forward rate transaction, commodity swap, commodity
option, equity or equity index swap or option, bond, note or bill option, interest rate option,
forward foreign exchange transaction, cap, collar or floor transaction, currency swap,
cross-currency rate swap, swaption, currency option or any other similar transaction (including any
option to enter into any of the foregoing) or any combination of the foregoing, and, unless the
context otherwise clearly requires, any master agreement relating to or governing any or all of the
foregoing.

1.1.50 “Hedging Obligation” means any liability of the Borrower or any Subsidiary to the Bank or an
Affiliate of the Bank under any Hedging Agreement.

1.1.51 “Indebtedness” means, with respect to the Borrower and its Subsidiaries, indebtedness
created, incurred, assumed or guaranteed by that Person which would, in accordance with GAAP, be
classified upon a balance sheet (and the notes thereto) of that Person as liabilities (absolute or
contingent), including for greater certainty all principal amounts and other amounts (other than
interest) due hereunder; Provided However, that contingent liabilities under guarantees for
borrowed money, to the extent of the lesser of the amount of the guarantee and the amount of the
debt outstanding to which the guarantee relates, or for amounts that may be paid under a letter of
credit issued for the account of that Person, and other contingent liabilities shall be included as
Indebtedness only to the extent of any reserve or other amount that has been provided on the
Borrower’s Financial Statements in respect of the same.

1.1.52 “Interest Payment Date” means:

	 	(a)	 	with respect to each Canadian Prime Rate Loan and each U.S. Base Rate Loan, on
the first Banking Day following each calendar month; and
	 
	 	(b)	 	with respect to each Libor Loan, the last day of each applicable Interest
Period and, if any Interest Period is longer than three months the last Banking Day of
each such three month period during such Interest Period.

1.1.53 “Interest Period” means,

 

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	 	(a)	 	with respect to each Canadian Prime Rate Loan and each U.S. Base Rate Loan, the
period commencing on the applicable Drawdown Date, Rollover Date or Conversion Date, as
the case may be, and terminating on the date ultimately selected by the Borrower
hereunder for the Conversion of such Loan into another type of Loan or the repayment of
such Loan; and
	 
	 	(b)	 	with respect to each Libor Loan, the period selected by the Borrower and being
of thirty (30) days, sixty (60) days, ninety (90) days or one hundred and eighty (180)
days duration commencing on the Drawdown Date, Rollover Date or Conversion Date of such
Loan;

Provided That, the last day of each Interest Period shall be a Banking Day and if the last day of
an Interest Period selected by the Borrower is not a Banking Day the Borrower shall be deemed to
have selected an Interest Period the last day of which is the Banking Day next following the last
day of the Interest Period otherwise selected; and Further Provided, an Interest Period may not
extend beyond the maturity date of the Facility to which it relates.

1.1.54 “Interest Rate” means in respect of any Loan, the rate at which interest is calculated
pursuant to the terms hereof, as the case may be.

1.1.55 “ISDA Agreement” refers to the 1992 ISDA Master Agreement (Multicurrency-Cross Border) and
the Schedule attached thereto, as published by the International Swaps and Derivatives Association,
Inc., in each case with all attachments, as entered into by the Bank and the Borrower on November
3, 2004 on terms and conditions as set forth in Schedule 1.7.5 hereto;

1.1.56 “Judgment Conversion Date” has the meaning set out in Section 17.5.

1.1.57 “Judgment Currency” has the meaning set out in Section 17.5.

1.1.58 “Libor Loan” means an Advance in, or Conversion into, United States Dollars or Canadian
Dollars made by the Bank to the Borrower on which the Borrower has specified that interest is to be
calculated by reference to the Libor Rate.

1.1.59 “Libor Margin” means an additional amount of 100 basis points per annum to be added to the
Libor Rate for the purposes of calculating the amount of interest to be paid by the Borrower
hereunder.

1.1.60 “Libor Rate” means, for each Interest Period applicable to a Libor Loan, the rate of
interest per annum, expressed on the basis of a three hundred and sixty (360) day year, at which
United States Dollars or Canadian Dollars are quoted by the Bank for one, two, three and six month
U.S. Dollar or Canadian Dollar deposits in the London interbank market at approximately 11:00 a.m.
(London, England time) on the third Banking Day prior to the first day of such Interest Period, in
an amount similar to such Libor Loan and for a period comparable to such Interest Period.

1.1.61 “L/C Liabilities” means all obligations of the Borrower to the Bank, however created,
arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter

 

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existing or due or to become due, arising out of or in connection with this Agreement, any Letter
of Credit, any application or any instrument or document delivered in connection therewith.

1.1.62 “L/C Obligations” means without duplication, an amount equal to the sum of:

	 	(a)	 	the aggregate of the amount then available for drawing under each of the issued
and outstanding Letters of Credit,
	 
	 	(b)	 	the amount equal to the stated amount of all drafts drawn on the Bank pursuant
to a corresponding Letter of Credit, which drafts have been accepted by the Bank,
	 
	 	(c)	 	the aggregate outstanding amount of all Reimbursement Obligations at such time,
and
	 
	 	(d)	 	the aggregate amount equal to the stated amount of all Letters of Credit
requested by the Borrower but not yet issued, unless the request for an unissued Letter
of Credit has been denied.

1.1.63 “Letter of Credit” means a standby letter of credit or bank guarantee to be issued by the
Bank pursuant to Section 8.1 hereof.

1.1.64 “Lien” means any mortgage, pledge, hypothec, assignment, transfer, security interest,
encumbrance, lien or charge of any kind (including any agreement to give any of the foregoing or
any conditional sale or other title retention agreement), Capitalized Lease or any other type of
preferential arrangement.

1.1.65 “Loan” means a Canadian Prime Rate Loan, U.S. Base Rate Loan or Libor Loan made to the
Borrower.

1.1.66 “Master Indemnity Reimbursement Agreement for Letters of Credit” means an agreement
providing for the reimbusements of amounts owing from the Borrower to the Bank as set forth in
Schedule 1.7.5.

1.1.67 “Material Adverse Effect” means a material adverse effect upon (i) the business, assets,
condition (financial or otherwise), operations, performance, properties, results of operations or
prospects of the Borrower or the Guarantor, in each case taken as a whole, (ii) the ability of the
Borrower, the Guarantor or the Borrower and its Subsidiaries to perform their respective
obligations under this Agreement, the Documents or the Security Documents to which they are a
party, (iii) the ability of the Bank to enforce the Obligations, or (iv) the validity or
enforceability of this Agreement, the Documents or the Security Documents to which the Borrower or
the Guarantor is a party, or the rights or remedies of the Bank hereunder and thereunder.

1.1.68 “Obligations” means the obligations of the Borrower to repay the principal of, and to pay
interest on, the Loans, all L/C Obligations, all Hedging Obligations and to pay all fees and other
amounts from time to time due from the Borrower to the Bank hereunder and under the ISDA Agreement
and the Master Indemnity Reimbursement Agreement for Letters of Credit.

 

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1.1.69 “Off-Balance Sheet Liabilities” means, with respect to any Person, (i) any repurchase
obligation or liability of such Person or any of its Subsidiaries with respect to Receivables sold
by such Person or any of its Subsidiaries, (ii) any liability of such Person or any of its
Subsidiaries under any sale and leaseback transaction which does not create a liability on the
consolidated balance sheet of such Person (iii) any liability of such Person or any of its
Subsidiaries under any financing lease or so-called “synthetic lease” or “tax ownership operating
lease” transaction, or (iv) any obligations of such Person or any of its Subsidiaries arising with
respect to any other transaction which is the functional equivalent of or takes the place of
borrowing but which does not constitute a liability on the consolidated balance sheet of such
Person and its Subsidiaries.

1.1.70 “Officer’s Certificate” means a certificate signed by any one of the President, a
Vice-President, the Treasurer or the Controller of the Borrower, setting forth the information or
affirmations required for the purposes thereof.

1.1.71 “Permitted Encumbrances” means in respect of any particular asset of the Borrower or any of
its Subsidiaries, any of the following Liens, or restrictions as to sale or other disposition:

	 	(a)	 	undetermined or inchoate Liens and charges incidental to construction,
maintenance or operations which have not at the time been filed pursuant to
Requirements of Law and any Liens and charges incidental to construction, maintenance
or operation which, although filed, relate to obligations not overdue or to obligations
the validity of which is being contested in good faith if the Borrower or the
Subsidiary shall have made on its books provision reasonably deemed by it to be
adequate therefor;
	 
	 	(b)	 	Liens for taxes and assessments for the then current year, Liens for taxes and
assessments not at the time overdue, Liens securing workers’ compensation assessments
and Liens for specified taxes and assessments which are overdue but the validity of
which is being contested at the time in good faith, if the Borrower or the Subsidiary
shall have made on its books provision reasonably deemed by it to be adequate therefor;
	 
	 	(c)	 	liens for the excess of the amount of any taxes, rates, assessments or
governmental charges or levies for which final assessments have not been received over
and above the amount of such taxes, rates, assessments or governmental charges or
levies as estimated by the Borrower or its Subsidiaries;
	 
	 	(d)	 	pledges or deposits to secure obligations under workers’ compensation or
similar legislation, including Liens or judgments thereunder which are not currently
dischargeable;
	 
	 	(e)	 	liens created or resulting from any litigation or legal proceeding which is
currently being contested in good faith by appropriate proceedings diligently
conducted;

 

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	 	(f)	 	liens or any rights of distress reserved in or exercisable under any lease for
rent and for compliance with the terms of such lease;
	 
	 	(g)	 	easements, rights-of-way or similar rights in land granted to or reserved by
other Persons which in the aggregate do not materially impair the usefulness of such
land in the business of the Borrower or any of its Subsidiaries;
	 
	 	(h)	 	all rights reserved to or vested in any governmental body by the terms of any
lease, licence, franchise, grant or permit held by the Borrower or its Subsidiaries or
by any statutory provision to terminate any such lease, licence, franchise, grant or
permit or to require annual or other periodic payments as a condition of the
continuance thereof or to distrain against or to obtain a Lien on any property or asset
of the Borrower or its Subsidiaries in the event of failure to make such annual or
other periodic payments;
	 
	 	(i)	 	encumbrances resulting from the deposit of cash, obligations, surety bonds,
bank guarantees or standby letters of credit or Letters of Credit as security when the
Borrower or its Subsidiaries is required to do so by governmental or other public
authority or by normal business practice in connection with contracts, licences or
tenders or similar matters in the ordinary course of business and for the purpose of
carrying on the same, or to secure workers’ compensation, surety or appeal bonds or to
secure costs of litigation when required by Requirements of Law;
	 
	 	(j)	 	public and statutory obligations which are not due or delinquent, and security
given to a public utility or any municipality or governmental or other public authority
when required by such utility or other authority in connection with the operations of
the Borrower or its Subsidiaries;
	 
	 	(k)	 	pledges, deposits, surety bonds, bank guarantees or standby letters of credit
or Letters of Credit to secure performance in connection with bids, tenders, contracts
(other than contracts for the payment of money) or leases on real property to which the
Borrower or any of its Subsidiaries is a party;
	 
	 	(l)	 	purchase money Liens, conditional sales agreements or other title retention
mortgage, charge, hypothec, pledge, Lien or other encumbrance on a property or asset
created, issued or assumed to secure the unpaid purchase price in respect of such
property or asset (“Purchase Money Mortgages”) (Provided That during the term of this
Agreement, the Borrower and its Subsidiaries, collectively, shall only be permitted to
have outstanding Purchase Money Mortgages in respect of Capital Assets for which the
aggregate of the unpaid purchase price and Capitalized Lease Obligations, as the case
may be, do not exceed U.S. $1,000,000 or the Equivalent Amount in Canadian Dollars, at
anytime and from time to time);
	 
	 	(m)	 	any lease or sublease granted by the Borrower or its Subsidiaries in the normal
course of business, Provided That, any such lease or sublease will not materially
adversely affect the enjoyment by the Borrower or its Subsidiaries of the assets of

 

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	 	 	 	the Borrower and its Subsidiaries taken as a whole in the conduct of their business;
	 
	 	(n)	 	title defects or irregularities which are of a minor nature and in the
aggregate will not materially impair the use of the property for the purposes for which
it is held by the Borrower or its Subsidiaries;
	 
	 	(o)	 	the Lien of the Master Accounts Receivable Purchase Agreement among ABN AMRO
Bank N.V., Telvent Canada Ltd., Telvent USA Inc. and Miner And Miner, Consulting
Engineers, Incorporated Dated as of December 7, 2007; and
	 
	 	(p)	 	the Lien of the Master Factoring Agreement among National Bank of Canada
(Natexport Division), Telvent Canada Ltd., Telvent USA Inc., Telvent Farradyne Inc. and
Miner And Miner, Consulting Engineers, Incorporated (now called Telvent Miner & Miner
Inc.) dated as of December 28, 2007.

1.1.72 “Person” means an individual, partnership, corporation, body corporate, trust or other
business or legal entity or any duly constituted government of or in any country and any minister,
department, commission, board, bureau, agency, authority, instrumentality or court and the like of
any such government.

1.1.73 “Quarter” means a three-month period ending on the last day of March, June, September or
December in a year, as the case may be.

1.1.74 “Receivable” means the Borrower’s and its Subsidiaries’ presently existing and hereafter
arising or acquired accounts, accounts receivable, and all present and future rights of the
Borrower or any Subsidiary to payment for goods sold, leased or licensed, or for services rendered
(except those evidenced by instruments or chattel paper), whether or not they have been earned by
performance, and all rights in any merchandise or goods which any of the same may represent, and
all rights, title, security and guaranties with respect to each of the foregoing, including,
without limitation, any right of stoppage in transit.

1.1.75 “Regulatory Authority” means any nation or government, any federal, provincial, state, local
or other political subdivision thereof and any entity exercising executive, legislative, judicial,
regulatory or administrative authority or functions of or pertaining to government, including any
authority or other quasi-governmental entity established to perform any of such functions
(including any supra-national bodies such as the European Union or the European Central Bank) and
shall include any stock exchange and quotation service.

1.1.76 “Reimbursement Obligation” has the meaning given that expression in the Master Indemnity
Reimbursement Agreement for Letters of Credit.

1.1.77 “Repayment Notice” means a notice substantially in the form of Schedule 1.7.3 annexed
hereto.

1.1.78 “Requirements of Law” means as to any Person, enactments, statutes, rules, regulations,
standards, orders, bylaws and codes (including the Constituent Documents of such Person),
decisions, directives, permits, licences, authorizations, policies, rules or consents of any

 

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Regulatory Authority, and decisions, orders, judgements, decrees and directions of courts and
quasi-judicial bodies of competent jurisdiction and in each case applicable to or binding upon such
Person or any of its business, assets and undertaking.

1.1.79 “Rollover” means a rollover of a Loan of one type into a Loan of the same type.

1.1.80 “Rollover Date” means the date of commencement of a new Interest Period applicable to a Loan
and which shall be a Banking Day.

1.1.81 “Rollover Notice” means a notice substantially in the form annexed hereto as Schedule 1.7.4.

1.1.82 “Security Documents” means the GIT Guarantee, including, without limitation, any and all
amendments and additions thereto and replacements thereof and substitutions therefor.

1.1.83 “Solvent” means when used with respect to any Person, that at the time of determination:

	 	(a)	 	the fair value of its assets (both at fair valuation and at present fair
saleable value) is equal to or in excess of the total amount of its liabilities,
including, without limitation, contingent liabilities; and
	 
	 	(b)	 	it is then able and reasonably expects to be able to pay its debts as they
mature; and
	 
	 	(c)	 	it has capital sufficient to carry on its business as conducted and as proposed
to be conducted.

With respect to contingent liabilities (such as litigation, guarantees and pension plan
liabilities), such liabilities shall be computed at the present value of the amount which, in light
of all the facts and circumstances existing at the time, represent the amount which can be
reasonably be expected to become an actual or matured liability.

1.1.84 “Subsidiary” means with respect to any Person (the “First Person”):

	 	(a)	 	any corporation (the “Second Person”) more than fifty percent (50%) of the
outstanding securities having ordinary voting power, or
	 
	 	(b)	 	any partnership, limited liability company, association, joint venture or other
entity or business organization (the “Second Person”) more than fifty percent (50%) of
the rights carrying the power, whether held directly or indirectly to direct, or cause
the direction of the management and policies of a Person by contract, through the
ownership of voting securities or otherwise

of the Second Person shall at the time be owned or controlled, directly or indirectly, by the First
Person or by one or more of the First Person’s Subsidiaries or by the First Person and one or

 

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more of the First Person’s Subsidiaries. Unless otherwise expressly provided, all references herein
to a “Subsidiary” means a Subsidiary of the Borrower.

1.1.85 “Toronto Time” means local time in Toronto, Ontario on the date for which such determination
is being made.

1.1.86 “United States Dollars” and “U.S. $” means the lawful money of the United States of America.

1.1.87 “U.S. Base Rate” means the prime lending rate of the Bank, expressed on the basis of a year
of three hundred and sixty (360) days, being a variable per annum reference rate of interest, as
announced and adjusted by the Bank from time to time, for United States Dollar loans in Canada.

1.1.88 “U.S. Base Rate Loan” means an Advance in, or Conversion into, United States Dollars made by
the Bank to the Borrower on which the Borrower has specified that interest is to be calculated by
reference to the U.S. Base Rate.

1.2 Per Annum Calculations

Unless otherwise stated, wherever in this Agreement reference is made to a “per annum” rate of
interest or otherwise, such expression shall be calculated on the basis of a calendar year of three
hundred and sixty five (365) days or three hundred and sixty six (366) days, as the case may be.

1.3 Currency

All references to currency herein shall be to lawful money of the United States of America, unless
otherwise expressly stated.

1.4 Interest Act (Canada)

For the purposes of this Agreement, whenever interest is calculated on the basis of a year of three
hundred and sixty (360) days, each rate of interest determined pursuant to such calculation
expressed as an annual rate for the purposes of the Interest Act (Canada) is equivalent to such
rate (as so determined) multiplied by the actual number of days in the calendar year in which the
same is to be ascertained and divided by three hundred and sixty (360).

1.5 Application Of Generally Accepted Accounting Principles

Except to the extent inconsistent herewith, or as otherwise agreed to in writing by the Bank and
the Borrower, GAAP shall be adhered to and applied in respect of all financial and accounting
matters herein in a consistent manner from period to period.

1.6 Computation Of Time Periods

In this Agreement, in the computation of periods of time from a specified date to a later specified
date, unless otherwise expressly stated, the word “from” means “from and including” and the words
“to” and “until” each mean “to but excluding”.

 

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1.7 Schedules

The following are the Schedules annexed hereto and incorporated by reference and deemed to be part
hereof:

1.7.1 Schedule 1.7.1 — Draw Down Notice

1.7.2 Schedule 1.7.2 — Conversion Notice

1.7.3 Schedule 1.7.3 — Repayment Notice

1.7.4 Schedule 1.7.4 — Rollover Notice

1.7.5 Schedule 1.7.5 — Master Indemnity Reimbursement Agreement for Letter of Credit

1.7.6 Schedule 1.7.6 — ISDA Agreement

1.7.7 Schedule 1.7.7 — Form of Promissory Notes

1.7.8 Schedule 1.7.8 — GIT Guarantee

1.7.9 Schedule 1.7.9 — Borrower’s Representations Certificate

1.7.10 Schedule 1.7.10 — Guarantor’s Representations Certificate

1.7.11 Schedule 1.7.11 — Borrower’s Counsel’s Opinion

1.7.12 Schedule 1.7.12 — Guarantor’s Counsel’s Opinion

ARTICLE 2

THE CREDIT FACILITY

2.1 The Credit Facility

Subject to the terms and conditions of this Agreement, the Bank shall make available the amounts
provided for under the Credit Facility.

2.2 Manner Of Borrowing

The Borrower may make Drawdowns under the Credit Facility of Canadian Prime Rate Loans or Letters
of Credit in Canadian Dollars and of U.S. Base Rate Loans, Libor Loans or Letters of Credit in
United States Dollars.

2.3 Purpose

The Credit Facility is being made available to the Borrower for general corporate purposes.
Borrowings under Facility A will be used specifically, to refinance all amounts outstanding as at
March 31, 2008 under the 2003 Credit Agreement in respect of “Facility A” thereunder and for

 

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working capital and general corporate purposes. Borrowings under Facility B will be used to
facilitate certain Hedging Agreements. Borrowings under Facility C will be used to replace the
outstanding Letters of Credit as at March 31, 2008 under the 2003 Credit Agreement in respect of
“Facility C” thereunder and for issuing additional standby letters of credit or bank guarantees up
to the Facility C Maximum Amount.

2.4 Availability of the Credit Facility

The Credit Facility is made available to the Borrower at the sole discretion of the Bank until
further notice. Borrowings under the Credit Facility are repayable on demand and the Bank reserves
the right to terminate the Credit Facility at any time and for any reason by giving written notice
to the Borrower. Upon demand or termination, no further utilization of the Credit Facility will be
permitted and unless an Event of Default has occurred and is continuing, the principal amount of
all borrowings outstanding under the Credit Facility accrued interest shall be due and payable in
full within 30 days of receipt by the Borrower of the notice in writing from the Bank terminating
the Credit Facility. If upon termination by the Bank, there are unexpired Letter of Credit under
the Credit Facility, the Borrower will deposit funds in the Bank for the full aggregate amount of
the outstanding Letter of Credit pending individual maturities.

2.5 Availability Of Facility A Advances

Subject to Section 2.4 and the other terms, covenants and conditions hereof, the Borrower shall be
entitled to make Drawdowns, Conversions and Rollovers under of Facility A; Provided That the
aggregate amount of all Loans which may be outstanding in respect of Facility A shall not exceed,
at any time, the amount permitted pursuant to Section 2.13.1 hereof.

2.6 Availability Of Facility B Advances

Subject to Section 2.4 and the other terms, covenants and conditions hereof, the Borrower shall be
entitled to make Drawdowns, Conversions and Rollovers under of Facility B in respect of Hedging
Obligations; Provided That the aggregate amount of all Loans which may be outstanding in respect of
Facility B shall not exceed, at any time, the amount permitted pursuant to Section 2.13.2 hereof
and shall be solely for the purposes of facilitating Hedging Agreements pursuant to the ISDA
Agreement. The Borrower shall not be permitted to request the facilitation of any Hedging Agreement
under Facility A or Facility C.

2.7 Availability Of Facility C Advances

Subject to Section 2.4 and the other terms, covenants and conditions hereof, the Borrower shall be
entitled to request the issue of one or more Letters of Credit under Facility C; Provided That the
aggregate amount of all Loans and L/C Obligations which may be outstanding in respect of Facility C
shall not exceed, at any time, the amount permitted pursuant to Section 2.13.3, and shall be solely
for the purposes of issuing Letters of Credit to be provided by the Borrower to Persons, who are
not Affiliates of the Borrower, for the purposes of securing the performance of obligations related
to contracts and tenders in the ordinary course of business of the Borrower to such Persons subject
to and on the conditions herein contained.

 

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2.8 Drawdown And Conversion Restrictions

Drawdowns and Conversions under the Credit Facility shall be subject to the restriction that each
Drawdown or Conversion in respect of a Canadian Prime Rate Loan, U.S. Base Rate Loan or Libor Loan
shall be in a minimum principal amount of U.S. $100,000 or the Equivalent Amount in Canadian
Dollars, and increments in excess thereof of U.S. $100,000 or the Equivalent Amount in Canadian
Dollars, and integral multiples thereof (except where the remaining balance available for Drawdown
or Conversion is less than U.S. $100,000 or the Equivalent Amount in Canadian Dollars, in which
case the amount of the remaining balance shall be the minimum principal amount).

2.9 Notice Periods For Drawdowns, Conversions And Rollovers

The Borrower may make a Drawdown, Conversion or Rollover under the Credit Facility by delivering a
Drawdown Notice, Conversion Notice or Rollover Notice, as the case may be, with respect to a
specified type of Loan to the Bank not later than (i) 11:00 a.m. (Toronto Time) one (1) Banking Day
prior to the proposed Drawdown Date, Conversion Date or Rollover Date for Canadian Prime Loans and
U.S. Base Rate Loans, or (ii) 11:00 a.m. (Toronto Time) three (3) Banking Days prior to the
proposed Drawdown Date, Conversion Date or Rollover Date for Libor Loans.

2.10 Bank’s Obligations With Respect To Canadian Prime Rate Loans, U.S. Base Rate Loans and Libor
Loans

The Bank shall, prior to 12:00 a.m. (Toronto Time) on the Drawdown Date, Rollover Date or
Conversion Date specified by the Borrower in a Drawdown Notice, Rollover Notice or Conversion
Notice with respect to a Canadian Prime Rate Loan, U.S. Base Rate Loan or Libor Loan, make
available the full amount of the amounts so credited to the Borrower.

2.11 Irrevocability

A Drawdown Notice, Rollover Notice or Conversion Notice properly given by the Borrower hereunder
shall be irrevocable and shall oblige the Borrower and the Bank to take the action contemplated on
the date specified therein, except as provided in Section 15.1.

2.12 Cancellation Or Reduction Of Credit Facility

The Borrower may, at any time, upon giving at least five (5) Banking Days prior notice to the Bank,
cancel in full or, from time to time, reduce in part the undrawn portion of any Facility; Provided
That, any such reduction shall be in a minimum amount of U.S. $100,000, or the Equivalent Amount in
Canadian Dollars, and reductions in excess thereof shall be in increments of U.S. $100,000, or the
Equivalent Amount in Canadian Dollars, and integral multiples thereof (except where the remaining
balance available is less than U.S. $100,000, or the Equivalent Amount in Canadian Dollars, in
which case the reduction shall be the amount of the remaining balance).

 

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2.13 Nature Of Credit Facility

Except as provided for in Section 10.1, the maximum of:

2.13.1 all Loans under Facility A shall not exceed the then current Facility A Maximum Amount; and

2.13.2 all Loans under Facility B shall not exceed the then current Facility B Maximum Amount; and

2.13.3 all Loans and L/C Obligations under Facility C shall not exceed the then current Facility C
Maximum Amount, of which not more than the Facility C Sublimit Amount may be outstanding in respect
of Letters of Credit which have been, and have been requested to be, issued having an expiry date
of more than one year but not exceeding three years after the date of issue of the Letter of
Credit; and

2.13.4 all Obligations under this Agreement shall not exceed the sum of the amounts permitted under
clauses 2.13.1, 2.13.2 and 2.13.3.

ARTICLE 3

SECURITY

3.1 Grant Of Security

Payment of the Obligations shall be secured by the GIT Guarantee in accordance with the provisions
thereof.

ARTICLE 4

CONDITIONS PRECEDENT TO DRAWDOWNS

4.1 Conditions For First Drawdown

On or before the first Drawdown hereunder the following conditions must be satisfied by the
Borrower proposing to make a Drawdown:

4.1.1 Delivery of Documents — the Borrower shall have delivered duly executed copies of each of
the Documents that have not previously been executed and delivered to the Bank, and the Bank shall
have executed and delivered copies thereof to the Borrower;

4.1.2 GIT Guarantee —  the Borrower shall cause the GIT Guarantee to be executed and delivered to
the Bank;

4.1.3 Drawdown Notice —  the Bank shall have received a Drawdown Notice;

4.1.4 Borrower’s Documents —  the Borrower shall have delivered to the Bank certified copies of the
Constituent Documents and by-laws of the Borrower, the resolutions of the directors authorizing the
borrowings and certificates of incumbency of the officers of the Borrower, and any other Documents
to be provided pursuant to the provisions hereof;

 

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4.1.5 Guarantor —  the Borrower shall have delivered to the Bank certified copies of the Constituent
Documents of the Guarantor, the resolutions of the directors authorizing the GIT Guarantee and
certificates of incumbency of the officers of the Guarantor and any other Documents to be provided
pursuant to the provisions hereof;

4.1.6 Borrower’s Representations Certificate —  an Officer’s Certificate from the Borrower
confirming that the representations and warranties set forth in Section 12.1 are true and accurate
in all material respects shall be delivered to the Bank;

4.1.7 Guarantor’s Representations Certificate — the Borrower shall have delivered a Representation
Certificate in respect of the Guarantor;

4.1.8 Borrower’s Counsel’s Opinion —  an opinion substantially in the form set out in Schedule
1.7.11 shall have been delivered to the Bank;

4.1.9 Guarantor’s Counsel’s Opinion —  an opinion substantially in the form set out in Schedule
1.7.12 shall have been delivered to the Bank;

4.1.10 No Litigation —  evidence satisfactory to the Bank shall have been received indicating that
there is no litigation, including dissenting shareholder litigation, which would, or could be
reasonably expected to, have a Material Adverse Effect; and

4.1.11 Payment of Fees and Costs — the Borrower shall have paid the Facility Set-Up Fee payable
pursuant to Section 16.2 and the Bank’s counsel’s reasonable fees, disbursements and expenses in
connection with the documentation and implementation of the Facility, the Documents and the GIT
Guarantee.

4.2 Subsequent Drawdowns

4.2.1 Prior to the time of each Drawdown subsequent to the first Drawdown under this Agreement the
Bank shall have received a Drawdown Notice from the Borrower.

4.3 Waiver

The conditions set forth in Sections 4.1 and 4.2 are inserted for the sole benefit of the Bank and
may be waived by the Bank in whole or in part (with or without terms or conditions), in respect of
any Drawdown without prejudicing the right of the Bank at any time to assert such conditions in
respect of any subsequent Drawdown.

ARTICLE 5

EVIDENCE OF DRAWDOWNS

5.1 Account Of Record

The Bank shall open and maintain separate books of account for each Facility evidencing all Loans,
L/C Obligations and all other amounts owing by the Borrower to the Bank hereunder. The Bank shall
enter in the foregoing accounts details of all amounts from time to time owing, paid or repaid by
the Borrower hereunder. The information entered in the foregoing accounts

 

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shall constitute prima facie non-exclusive evidence of the obligations of the Borrower to the Bank
hereunder with respect to the principal amount of all Loans and L/C Obligations owing by the
Borrower to the Bank hereunder.

ARTICLE 6

PAYMENTS OF INTEREST AND FEES

6.1 Interest On Canadian Prime Rate Loans

The Borrower shall pay interest on each Canadian Prime Rate Loan during each Interest Period
applicable thereto in Canadian Dollars at a rate per annum equal to the Canadian Prime Rate in
effect from time to time during such Interest Period, plus the Base Rate Margin. Each determination
by the Bank of the Canadian Prime Rate applicable from time to time during an Interest Period
shall, in the absence of error, be binding upon the Borrower. Such interest shall be payable in
arrears on each Interest Payment Date for such Loan for the period from and including the Drawdown
Date or the preceding Rollover Date, Conversion Date or Interest Payment Date, as the case may be,
for such Loan to and including the day preceding the current Interest Payment Date and shall be
calculated on the principal amount of the Canadian Prime Rate Loan outstanding during such period
and on the basis of the actual number of days elapsed in a year of three hundred and sixty five
(365) days or three hundred and sixty six 366 days, as the case may be. Changes in the Canadian
Prime Rate shall cause an immediate adjustment of the interest rate applicable to such Loan without
the necessity of any notice to the Borrower.

6.2 Interest On U.S. Base Rate Loans

The Borrower shall pay interest on each U.S. Base Rate Loan during each Interest Period applicable
thereto in United States Dollars at a rate per annum, expressed on the basis of a three hundred and
sixty (360) day year, equal to the U.S. Base Rate applicable from time to time during an Interest
Period, plus the Base Rate Margin. Each determination by the Bank of the U.S. Base Rate applicable
from time to time during an Interest Period shall, in the absence of error, be binding upon the
Borrower. Such interest shall be payable in arrears on each Interest Payment Date for such Loan for
the period from and including the Drawdown Date or the preceding Rollover Date, Conversion Date or
Interest Payment Date, as the case may be, for such Loan to and including the day preceding the
current Interest Payment Date and shall be calculated on the principal amount of the U.S. Base Rate
Loan outstanding during such period and on the basis of the actual number of days elapsed divided
by three hundred and sixty (360). Changes in the U.S. Base Rate shall cause an immediate adjustment
of the interest rate applicable to such Loan without the necessity of any notice to the Borrower.

6.3 Interest On Libor Loans

The Borrower shall pay interest on each Libor Loan during each Interest Period applicable thereto
in the respective currency of the Libor Loan at a rate per annum, expressed on the basis of a three
hundred and sixty (360) day year, equal to the Libor Rate with respect to such Interest Period plus
the Libor Margin. Each determination by the Bank of the Libor Rate applicable to an Interest Period
shall, in the absence of error, be binding upon the Borrower. Upon determination of the Libor Rate
applicable to an Interest Period, the Bank shall notify the Borrower. Such

 

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interest shall be payable in arrears on each Interest Payment Date for such Loan for the period
from and including the Drawdown Date or the preceding Rollover Date, Conversion Date or Interest
Payment Date, as the case may be, for such Loan to and including the day preceding the current
Interest Payment Date and shall be calculated on the principal amount of the Libor Loan outstanding
during such period and on the basis of the actual number of days elapsed divided by three hundred
and sixty (360).

6.4 No Deduction Etc.

Interest payments hereunder shall be payable by the Borrower both before and after maturity and
before and after default or judgment, if any, until payment thereof in full, and interest shall
accrue on overdue interest, if any, at the rates described in this Agreement.

6.5 Limit On Rate Of Interest

Notwithstanding any provision contained herein, the Borrower shall not be obliged to make any
payments of interest or other amounts payable to the Bank hereunder in excess of the amount or rate
which would be prohibited by Requirements of Law or would result in the receipt by the Bank of
interest at a criminal rate (as such terms are construed under the Criminal Code (Canada)).

ARTICLE 7

ROLLOVERS

7.1 Selection Of Interest Periods

Prior to the expiration of each Interest Period of each Libor Loan and in accordance with Section
2.9 the Borrower shall, unless it has delivered a Conversion Notice pursuant to Section 9.1 or a
Repayment Notice pursuant to Section 10.2 with respect to the aggregate amount of such Loan,
deliver a Rollover Notice to the Bank selecting the next Interest Period applicable to the Libor
Loan which next Interest Period shall commence on and include the last day of such prior Interest
Period. If the Borrower fails to deliver a Rollover Notice to the Bank as herein provided the
Borrower shall be deemed to have given a Conversion Notice to the Bank pursuant to Section 9.1
electing to convert the Libor Loan into a U.S. Base Rate Loan or a Canadian Prime Loan.

7.2 Partial Rollovers

The Borrower may effect a Rollover of a part of a Libor Loan; Provided That, the portion which is
not part of the Rollover is either repaid in accordance with Section 10.2 or converted in
accordance with Section 9.1.

ARTICLE 8

LETTER OF CREDIT FACILITY

8.1 Obligation To Issue Letters Of Credit

8.1.1 The Borrower shall not be permitted to request the issuance of any Letter of Credit under
Facility A or Facility B.

 

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8.1.2 Subject to the terms and conditions of this Agreement and the Master Indemnity Reimbursement
Agreement for Letters of Credit, and in reliance upon the representations, warranties and covenants
of the Borrower herein set forth, the Bank hereby agrees to issue, from time to time, for the
account of the Borrower one or more Letters of Credit under Facility C denominated in Canadian
Dollars or U.S. Dollars in accordance with this Article.

8.2 Types And Amounts

Notwithstanding the foregoing, the Bank shall not have any obligation to issue or amend any Letter
of Credit in respect of amounts advanced or to be advanced under Facility C if on the date of
issuance or amendment, before or after giving effect to the Letter of Credit requested hereunder:

8.2.1 the aggregate outstanding amount of all Obligations would exceed the aggregate of the
Facility A Maximum Amount, the Facility B Maximum Amount and the Facility C Maximum Amount,
calculated as of the date of issuance of the requested Letter of Credit or amendment; or

8.2.2 the aggregate outstanding amount of the L/C Obligations would exceed the Facility C Maximum
Amount, calculated as of the date of issuance of the Letter of Credit or amendment; or

8.2.3 the aggregate outstanding amount of the L/C Obligations in respect of Facility Sublimit C
would exceed the Facility C Sublimit Maximum Amount, calculated as of the date of issuance of the
Letter of Credit or amendment; or

8.2.4 the Letter of Credit has an expiry date more than three years after the date of issue of the
Letter of Credit or amendment.

8.3 Conditions

In addition to the terms and conditions of any form, agreement, instrument, policy, practice or
guideline established or adopted from time to time by the Bank applicable to the issue of standby
letters of credit and bank guarantees and in addition to being subject to the satisfaction of the
conditions contained in Section 4.1 or 4.2, as the case may be, the obligation of the Bank to issue
any Letter of Credit is subject to the condition that as of the date of issuance no order, judgment
or decree of any court, arbitrator or Regulatory Authority shall purport by its terms to enjoin or
restrain the Bank from issuing such Letter of Credit and no Requirements of Law applicable to the
Bank and no request or directive, whether or not having the force of law, from a Regulatory
Authority with jurisdiction over the Bank shall prohibit or request that the Bank refrain from the
issuance of Letters of Credit generally or the issuance of that Letter of Credit.

8.4 Letter Of Credit Fees.

8.4.1 The Borrower agrees to pay to the Bank:

	 	(a)	 	in respect of each issued standby Letter of Credit on each Interest Payment
Date, in arrears, to the Bank, a letter of credit fee at a rate per annum equal to the

 

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	 	 	 	Applicable L/C Fee Percentage for standby Letters of Credit, multiplied by the
average daily outstanding amount available for drawing under the standby Letter of
Credit; and
	 
	 	(b)	 	in respect of each other Letter of Credit on the date of issue, a letter of
credit fee equal to the Applicable L/C Fee Percentage for other Letters of Credit,
multiplied by the face amount of the Letter of Credit; and
	 
	 	(c)	 	all customary fees and other issuance, amendment, cancellation, document
examination, negotiation, transfer and presentment expenses and related charges in
connection with the issuance, amendment, cancellation, presentation of drafts drawn on
the Bank pursuant to a corresponding Letter of Credit, negotiation, transfer and the
like customarily charged by the Bank with respect to Letters of Credit, including,
without limitation, standard commissions with respect to commercial Letters of Credit,
payable at the time of invoice of such amounts.

8.4.2 For the purposes hereof, the Interest Payment Date shall be deemed to be the date on which
interest would be payable in respect of a Canadian Prime Rate Loan or a US Base Rate Loan, in the
currency in which the Letter of Credit is denominated.

ARTICLE 9

CONVERSION OPTIONS

9.1 Conversion Options

9.1.1 Subject to the provisions of this Agreement, the Borrower may convert the whole or any part
of any type of Loan into any other type of Loan on the last day of the applicable Interest Period
therefor, by giving the Bank a Conversion Notice in accordance with the time periods set forth in
Section 2.9. The Bank shall, on the Conversion Date, continue to extend credit to the Borrower by
way of the type of Loan into which the outstanding Loan or a portion thereof is converted in the
aggregate principal amount or Equivalent Amount, as the case may be, of the outstanding Loan or the
portion thereof which is being converted.

9.1.2 Where on a Conversion one type of Loan in one currency is being converted to another type of
Loan in a different currency, the Borrower shall pay to the Bank the principal amount of the Loan
or the portion thereof being converted and the Bank shall make a further Loan to the Borrower in
the new currency in the aggregate principal amount of the Equivalent Amount of the outstanding Loan
or the portion thereof which is being converted.

ARTICLE 10

REPAYMENT

10.1 Repayment Of Excess Over Credit Facility

If at any time, the Bank determines that all Obligations then outstanding under the Credit
Facility, expressed in U.S. Dollars, exceeds the maximum amount permitted under Section 2.13,
expressed in U.S. Dollars, the Bank shall notify the Borrower of the amount of such excess and the
Borrower shall within four Banking Days after the receipt of such notice, repay to the Bank

 

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such excess in U.S. Dollars, together with accrued interest thereon in U.S. Dollars to the date of
such payment. If, to make the repayment, it is necessary to repay a Libor Loan, the Borrower shall
not be required to repay such Libor Loan until the end of the Interest Period relating thereto. In
making such repayment the Borrower may designate which Loans are being repaid. In determining the
amount of any excess hereunder which is to be repaid, the Bank may, in the case of any other
forward exchange contracts of the Borrower with other financial institutions, take such forward
exchange contracts into consideration.

10.2 Optional Repayment Of Principal

10.2.1 The Borrower may at any time and from time to time pay, without penalty, to the Bank for the
account of the Bank, the whole or any part of any Loan under the Credit Facility together with
accrued and unpaid interest thereon to the date of such repayment; Provided That:

	 	(a)	 	the Borrower shall give a Repayment Notice to the Bank at least five (5)
Banking Days prior to the date of repayment; and
	 
	 	(b)	 	each such repayment may only be made on the last day of the applicable Interest
Period with regard to a Loan that is being repaid.

10.2.2 If any Loan is repaid on other than the last day of the applicable Interest Period the
Borrower shall, within three (3) Banking Days after notice is given and delivery of the certificate
hereinafter described has been made by the Bank, pay to the Bank for the account of the Bank all
costs, losses and expenses incurred by the Bank by reason of the liquidation or redeployment of
deposits or other funds resulting from the repayment of such Loan or any part thereof on other than
the last day of the applicable Interest Period. The Bank shall prepare a certificate of a duly
authorized officer of the Bank setting forth the basis of calculation thereof and such certificate
shall be delivered by the Bank to the Borrower. If pursuant to the provisions of this Section or
any other provision hereof the Borrower becomes obliged to pay such costs, losses or expenses, the
Bank shall use its reasonable best efforts to minimize such costs, losses and expenses.

10.3 Mandatory Repayments

10.3.1 The entire amount of the Obligations outstanding in respect of Facility A, Facility B and
Facility C, other than in respect of the Facility C Sublimit, shall be repaid by the Borrower when
demanded by the Bank. Unless an Event of Default has occurred and is continuing, the Bank will
give the Borrower 30 days notice in writing of its intention to demand repayment.

ARTICLE 11

PLACE AND APPLICATION OF PAYMENTS

11.1 Place Of Payment Of Principal, Interest And Fees

All payments of principal, interest, fees and other amounts to be made by the Borrower to the
Bank pursuant to this Agreement shall be made in the currency in which the Loan is outstanding or
as otherwise required under this Agreement for value on the day such amount is due and if

 

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such day is not a Banking Day on the Banking Day next following by deposit or transfer thereof to
the account of the Bank in Canada.

11.2 Funds

Each amount advanced, made available, disbursed or paid hereunder shall be advanced, made
available, disbursed or paid, as the case may be, for value on the date such amount is advanced,
made available, disbursed or paid in such form of funds as may from time to time be customarily
used for Canadian Dollars in Canada or for United States Dollars in the United States in the
settlement of banking transactions similar to the banking transactions required to give effect to
the provisions of this Agreement on the day such advance, disbursement or payment is to be made.

11.3 Application Of Payments

If any Event of Default shall occur and be continuing, all payments made by the Borrower hereunder
shall be applied in the following order:

11.3.1 to amounts due hereunder as costs and expenses;

11.3.2 to amounts due hereunder as default interest;

11.3.3 to amounts due hereunder as interest and amounts due under subsection 8.4.1; and

11.3.4 to amounts due hereunder as principal.

ARTICLE 12

REPRESENTATIONS AND WARRANTIES

12.1 Representations And Warranties

The Borrower represents and warrants as follows to the Bank and acknowledges and confirms that the
Bank is relying upon such representations and warranties:

12.1.1 Corporate Status —  The Borrower is a corporation duly incorporated and validly existing
under the laws of Canada and has all necessary corporate power and authority to own its properties
and carry on its business as presently carried on and is duly licensed, registered or qualified in
all jurisdictions where a failure to be so licensed, registered or qualified would have a Material
Adverse Effect.

12.1.2 Corporate Authority —  The Borrower has full corporate power and authority to enter into this
Agreement and the Documents to which it is a party, as the case may be, and to execute and deliver
this Agreement and the Documents to which it is a party, and to do all acts and things contemplated
or desirable hereunder and thereunder, as are required hereunder or thereunder to be done, observed
or performed by them in accordance with their terms.

12.1.3 Guarantor Corporate Status —  The Guarantor is a corporation duly incorporated and validly
existing under the laws of Spain and has all necessary corporate power and authority

 

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to own its respective properties and carry on its respective business as presently carried on and
each is duly licensed, registered or qualified in all jurisdictions where a failure to be so
licensed, registered or qualified would have a Material Adverse Effect.

12.1.4 Guarantor Corporate Authority - The Guarantor has full corporate power and authority to
enter into and grant the GIT Guarantee and each other Document to which it is a party, and to
execute and deliver the GIT Guarantee and the Documents to which it is a party, and to do all acts
and things contemplated or desirable thereunder, as are required hereunder or thereunder to be
done, observed or performed by them in accordance with their terms.

12.1.5 Valid Authorization —

	 	(a)	 	The Borrower has taken all necessary corporate action to authorize the
creation, execution, delivery and performance of this Agreement and each of the other
Documents to which it is a party and to observe and perform the provisions of each in
accordance with its terms.
	 
	 	(b)	 	The Guarantor has taken all necessary corporate action to authorize the
creation, execution, delivery and performance of the GIT Guarantee, and each of the
other Documents to which it is a party and to observe and perform the provisions of
each in accordance with its terms.

12.1.6 Validity of Documents and Enforceability —  Assuming due execution by parties thereto other
than the Borrower and the Guarantor, this Agreement, the Security Documents and each of the other
Documents to which it is a party constitute valid and legally binding obligations of the Borrower,
or the Guarantor, as the case may be, enforceable against it in accordance with its terms. Neither
the execution and delivery thereof nor compliance with the terms and conditions hereof:

	 	(a)	 	will result in a violation of the Constituent Documents of the Borrower, or the
Guarantor, as the case may be, or any resolutions passed by the Board of Directors or
shareholders of the Borrower, or the Guarantor, as the case may be, or any applicable
Requirements of Law; or
	 
	 	(b)	 	will result in a breach of, or constitute a default under, any loan agreement,
indenture, trust deed or any other agreement or instrument to which the Borrower, or
the Guarantor, as the case may be, is a party or by which it is bound and which breach
or default would, or could be reasonably expected to, have a Material Adverse Effect;
or
	 
	 	(c)	 	requires any approval or consent of any Regulatory Authority having
jurisdiction except such as has already been obtained.

12.1.7 Approvals —

	 	(a)	 	No authorizations, approvals or consents of, and no filings, or registrations
with, any Regulatory Authority or any other Person are necessary for the execution,

 

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	 	 	 	delivery or performance by the Borrower of this Agreement and each of the other
Documents to which it is a party, or for the validity or enforceability thereof; and
	 
	 	(b)	 	No authorizations, approvals or consents of, and no filings, or registrations
with, any Regulatory Authority or any other Person are necessary for the execution,
delivery or performance by the Guarantor, of the GIT Guarantee or each of the other
Documents to which it is a party, or for the validity or enforceability thereof.

12.1.8 Tax Examinations —  All deficiencies which have been asserted against the Borrower or any of
the Borrower’s Subsidiaries as a result of any federal, provincial, state, local or foreign tax
examination for each taxable year in respect of which an examination has been conducted have been
fully paid or finally settled or are being contested in good faith, and no issue has been raised by
any taxing authority in any such examination which, by application of similar principles, could
reasonably be expected to result in assertion by such taxing authority of a material deficiency for
any other year not so examined which has not been reserved for in the Borrower’s Financial
Statements to the extent, if any, required by GAAP. Except as permitted pursuant to Section
13.1.10, neither the Borrower nor any of the Borrower’s Subsidiaries anticipates any tax liability
with respect to the years which have not been closed pursuant to applicable Requirements of Law
that will have or could reasonably be expected to have a Material Adverse Effect.

12.1.9 Tax Returns —  The Borrower and the Guarantor have filed all tax returns which are required
to be filed by it and has paid all taxes due pursuant to such returns or pursuant to any assessment
received by the Borrower, and the Guarantor, as the case may be. The charges, accruals and reserves
on the books of the Borrower in respect of taxes and other governmental charges are, in the opinion
of the Borrower adequate.

12.1.10 Taxes Paid —  All tax returns and reports of the Borrower and its Subsidiaries required to
be filed have been timely filed except for any returns or reports where the failure to file on a
timely basis will not have or could not reasonably be expected to have a Material Adverse Effect,
and all taxes, assessments, fees and other governmental charges upon the tax returns and reports of
the Borrower and its Subsidiaries and upon their respective property, assets, income and franchises
which are shown in such returns or reports to be due and payable have been paid except those items
which are being contested in good faith and have been reserved for in accordance with GAAP. The
Borrower has no knowledge of any proposed tax assessment against the Borrower or any of its
Subsidiaries that will have or could reasonably be expected to have a Material Adverse Effect.

12.1.11 Titles and Liens —  The Borrower and its Subsidiaries have good and merchantable title to
each of the properties, assets and undertakings and all such properties, assets and undertakings
are free and clear from all Liens other than Permitted Encumbrances and Minor Title Defects.

12.1.12 Non-Default —  No Event of Default and no event in respect of any agreement, undertaking or
instrument to which the Borrower or any Subsidiary is a party or to which the Borrower, any
Subsidiary, or any of their respective assets may be subject has occurred which

 

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constitutes or which, with the giving of notice, lapse of time or other condition, would constitute
an Event of Default or which would or could reasonably be expected to have a Material Adverse
Effect.

12.1.13 Financial Condition —  The Borrower’s Audited Financial Statements fairly present the
financial condition of the Borrower and its Subsidiaries as at the date thereof and the results of
the operations of the Borrower for the period then ending, and have been prepared in accordance
with GAAP, consistently applied, except as otherwise noted therein, and no event has occurred which
could reasonably be expected to have a Material Adverse Effect.

12.1.14 Borrower’s Interim Financial Statements — The Borrower’s Interim Financial Statements
fairly present the financial condition of the Borrower and its Subsidiaries as at the date thereof,
all in accordance with GAAP, consistently applied, except as otherwise noted, and no event has
occurred which could reasonably be expected to have a Material Adverse Effect.

12.1.15 Securities Activities —  Neither the Borrower nor any of its Subsidiaries:

	 	(a)	 	is in violation of any Requirements of Law in relation to trading in securities
to which it or its activities are subject; and
	 
	 	(b)	 	is engaged in the business of extending credit for the purpose of purchasing or
carrying Margin Stock (as that expression is defined in Regulation U of the Board of
Governors of the Federal Reserve System as from time to time in effect and any
successor or other regulation or official interpretation of said Board of Governors
relating to the extension of credit by banks, non-banks and non-broker lenders for the
purpose of purchasing or carrying Margin Stock applicable to member banks of the
Federal Reserve System). Margin Stock constitutes less than 25% of the value of those
assets of the Borrower and its Subsidiaries which are subject to any limitation on
sale, pledge, or other restriction hereunder.

12.1.16 Absence of Litigation —  There is no action, suit, proceeding, arbitration or, to the
Borrower’s knowledge, investigation before or by any Regulatory Authority or private arbitrator
pending or, to the Borrower’s knowledge, threatened against or affecting the Borrower or any of its
Subsidiaries or any property of any of them which will have or could reasonably be expected to have
a Material Adverse Effect. Neither the Borrower nor any of its Subsidiaries is (i) in violation of
any applicable Requirements of Law which violation will have or could reasonably be expected to
have a Material Adverse Effect, or (ii) subject to or in default with respect to any final
judgment, writ, injunction, restraining order or order of any nature, decree, rule or regulation of
any court or Regulatory Authority which will have or could reasonably be expected to have a
Material Adverse Effect.

12.1.17 Solvency —  After giving effect to:

	 	(a)	 	the Loans to be made as requested hereunder,
	 
	 	(b)	 	the other transactions contemplated by this Agreement, and
	 
	 	(c)	 	the payment and accrual of all transaction costs with respect to the foregoing,

 

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	 	 	 	the Borrower and its Subsidiaries are Solvent.

12.1.18 Relationship to Guarantor — The Borrower is directly or indirectly a wholly-owned
subsidiary of the Guarantor.

12.1.19 Environmental Compliance —

	 	(a)	 	All of the Borrower’s Properties are in a condition that is clean and healthful
and free of all Environmental Contamination (including latent Environmental
Contamination) or other potentially harmful physical conditions including, without
limitation, any patent or latent Environmental Contamination of the atmosphere, air,
soil, subsoil, groundwater or surface waters within or adjacent thereto;
	 
	 	(b)	 	No Hazardous Materials and no other materials intended for use or generated by
the Borrower or any of its Subsidiaries have been or are used, stored, treated or
otherwise disposed of in violation of Environmental Legislation;
	 
	 	(c)	 	All Hazardous Materials removed or emitted from the Borrower’s Properties were
and are documented, transported and disposed of in compliance with all Environmental
Legislation;
	 
	 	(d)	 	No materials including, without limitation, effluents, leachate, emissions or
hazardous materials, generated on or emitted from the Borrower’s Properties have caused
or will cause in whole or in part any Environmental Contamination or injury to any
atmosphere, air, soil, subsoil, groundwater, surface water, property or persons,
including adjacent property and property through or to which such materials were
shipped;
	 
	 	(e)	 	All of the facilities of the Borrower or any of its Subsidiaries that were or
are used by any party for the disposal of solid or other waste have been and are
properly permitted and operated in compliance with all applicable Requirements of Law
and have not produced and do not produce any Environmental Contamination;
	 
	 	(f)	 	There is no agreement or consent order to which the Borrower or any of its
Subsidiaries is a party which relates to any environmental matter, and no such
agreement or order is necessary for the continued compliance of the Borrower with
applicable Environmental Legislation or any other Requirements of Law applicable to the
Borrower or any of its Subsidiaries;
	 
	 	(g)	 	There have been no orders issued, investigations conducted or other proceedings
taken or threatened under or pursuant to any Environmental Legislation with respect to
the business, assets or undertaking of the Borrower or any of its Subsidiaries. There
are no circumstances or events that have any reasonable prospect of resulting in any
claim, action or other proceeding with respect to environmental damage or harm or in an
order, investigation or other proceeding under or pursuant to the Environmental
Legislation. All approvals, permits, certificates, licences, orders-in-council or other
actions required under the

 

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	 	 	 	environmental legislation applicable to the business, assets or undertaking of the
Borrower or any of its Subsidiaries and to own and operate the same have been
obtained; and
	 
	 	(h)	 	The use of, and operations relating to the business, assets and undertaking of
the Borrower or any of its Subsidiaries do not constitute a nuisance nor has any claim
of nuisance been made in respect of such use and operations by any adjoining landowner
or other party.

12.2 Nature Of Representations And Warranties

The representations and warranties set out in this Article shall survive the execution and
delivery of this Agreement and the making of each Drawdown, notwithstanding any investigations or
examinations which may be made by the Bank or counsel to the Bank.

ARTICLE 13

COVENANTS

13.1 Affirmative Covenants Of The Borrower

The Borrower covenants and agrees with the Bank that so long as any amount payable hereunder is
outstanding:

13.1.1 Punctual Payment —  The Borrower shall duly and punctually pay the principal of all Loans
made to it, all interest thereon and all fees and other amounts required to be paid by the Borrower
hereunder at the dates and places, in the currency and in the manner mentioned herein.

13.1.2 Conduct of Business —  The Borrower shall, and will cause its Subsidiaries to, maintain their
respective corporate existences in good standing and do or cause to be done all things necessary to
keep in full force and effect all properties, rights, franchises, licences and qualifications to
carry on business where a failure to do so would have a material adverse effect on the business,
operations or financial condition of the Borrower and its Subsidiaries taken as a whole.

13.1.3 Compliance with Laws —  The Borrower shall, and shall cause its Subsidiaries to:

	 	(a)	 	comply with all Requirements of Law and all restrictive covenants affecting
such Person or the business, properties, assets or operations of such Person, and
	 
	 	(b)	 	obtain as needed all permits necessary for its operations and maintain such
permits in good standing unless failure to comply or obtain such permits could not
reasonably be expected to have a Material Adverse Effect.

13.1.4 Operation in Accordance with Environmental Legislation —  The Borrower shall and shall cause
each of its Subsidiaries to, hold, maintain and operate all of its business, assets and undertaking
in compliance with all applicable Environmental Legislation.

 

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13.1.5 Environmental Authorizations —  The Borrower shall and shall cause its Subsidiaries to,
obtain and maintain in good standing all at all times all permits, licences, consents and approvals
required under applicable Environmental Legislation, necessary for the ownership of its assets and
undertaking and the conduct of its business.

13.1.6 Financial Statements and Other Information —  The Borrower shall deliver to the Bank:

	 	(a)	 	Annual Financial Statements — as soon as practicable and, in any event,
within one hundred and fifty (150) days after the end of each of its fiscal years,
including in comparative form the corresponding figures for the preceeding fiscal year,
copies of:

	 	(i)	 	its unaudited annual financial statements of the Borrower, and
	 
	 	(ii)	 	the unaudited annual financial statements of each of its
Subsidiaries, and
	 
	 	(iii)	 	the consolidated audited annual financial statements of the
Borrower and each of its Subsidiaries,

	 	 	 	consisting of balance sheets, statements of earnings and retained earnings and
statements of cash flow for each such year, expressed in U.S. Dollars, together with
the notes thereto and any management report or audit letter, all prepared in
accordance with U.S. GAAP consistently applied, except as otherwise noted (and
accepted by the Bank), throughout the period and prior periods, together, in the
case of the consolidated financial statements, with a report of the auditors of the
Borrower;
	 
	 	(b)	 	Quarterly Financial Statements — as soon as practicable, and in any
event within sixty (60) days after the end of each Quarter the consolidated and
consolidating balance sheet of the Borrower and its Subsidiaries as at the end of such
period and the related consolidated and consolidating statements of income,
Shareholders’ Equity and cash flows of the Borrower and its Subsidiaries for such
fiscal quarter and cumulatively for the period from the beginning of the then current
fiscal year to the end of such fiscal quarter, certified by the chief financial officer
of the Borrower on behalf of the Borrower as fairly presenting the consolidated and
consolidating financial position of the Borrower and its Subsidiaries as at the dates
indicated and the results of their operations and cash flows for the periods indicated
in accordance with U.S. GAAP, subject to normal year-end audit adjustments, together
with:

	 	(i)	 	in comparative form:

	 	(A)	 	the corresponding figures as set forth in the
business plan, if any, delivered pursuant to paragraph 13.1.6(b)(iii)
for such period, and

 

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	 	(B)	 	the corresponding figures of the Borrower and
its Subsidiaries for the period ending on the corresponding Quarter in
the previous fiscal year, and

	 	(ii)	 	any management discussion and analysis of such financial
statements prepared for presentation to the Board of Directors of the Borrower.
	 
	 	(iii)	 	Annual Business Plan — as soon as practicable and in
any event not later than one hundred and twenty (120) days after the beginning
of each fiscal year commencing with the fiscal year beginning on January 1,
2008, a copy of the Borrower’s fiscal year operating budget for such fiscal
year.

	 	(c)	 	Other —  at the request of the Bank, such other reports, certificates,
projections of income and cash flow or other matters affecting the business affairs or
financial condition of the Borrower and its Subsidiaries as the Bank may reasonably
require and as may reasonably be available and subject to any contractual restrictions
regarding confidentiality.

13.1.7 No Default Certificate —  The Borrower shall deliver to the Bank, concurrently with
furnishing the Borrower’s Audited Financial Statements and the Borrower’s Interim Financial
Statements pursuant to paragraphs 13.1.6(a) and 13.1.6(b), an Officer’s Certificate signed by its
chief executive officer, president, chief financial officer, treasurer or other responsible officer
of the Borrower acceptable to the Bank, certifying that:

	 	(a)	 	such Borrower’s Financial Statements fairly present the financial condition and
results of operations of the Borrower and its consolidated Subsidiaries, and
	 
	 	(b)	 	no Event of Default has occurred and is continuing.

13.1.8 Amended Constituent Documents —  The Borrower shall deliver to the Bank certified copies of
any and all changes, amendments, additions to and deletions from the Constituent Documents of the
Borrower and the Guarantor since the last date on which such documents were delivered to the Bank
hereunder and certificates of incumbency of the officers of the Borrower or the Guarantor, as the
case may be, and any other documents to be provided pursuant to the provisions hereof.

13.1.9 Compliance with Agreements —  The Borrower and each of its Subsidiaries shall duly perform
and meet its obligations and duties under this Agreement, the Security Documents and each of the
other Documents to which it is a party.

13.1.10 Taxes —  The Borrower shall pay, and cause each of its Subsidiaries to pay when due:

	 	(a)	 	all taxes, assessments and other governmental charges imposed upon it or on any
of its properties or assets or in respect of any of its franchises, business, income or
property before any penalty or interest accrues thereon, and

 

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	 	(b)	 	all claims (including, without limitation, claims for labor, services,
materials and supplies) for sums which have become due and payable and which by law
have or may become a Lien (other than Permitted Encumbrances) upon any of the
Borrower’s or such Subsidiary’s property or assets, prior to the time when any penalty
or fine shall be incurred with respect thereto;
	 
	 	 	 	Provided, However, that no such taxes, assessments and governmental charges referred
to in paragraph 13.1.10(a) above or claims referred to in paragraph 13.1.10(b) above
(and interest, penalties or fines relating thereto) need be paid if being contested
in good faith by appropriate proceedings diligently instituted and conducted and if
such reserve or other appropriate provision, if any, as shall be required in
conformity with GAAP shall have been made therefor.

13.1.11 Insurance —  The Borrower shall and shall cause each of its Subsidiaries to, keep insured
its business, assets and undertaking in such amounts as the Bank may reasonably require against
loss or damage by fire and such other risks as the Bank may from time to time specify, based on the
opinion of an independent, recognized insurance broker with experience in arranging insurance for
clients in businesses similar to the business of the Borrower, with insurers approved by the Bank.
The Borrower shall whenever from time to time requested by the Bank provide the Bank with
satisfactory evidence of such insurance and any renewal thereof and shall keep the policies and
proceeds of all such insurance free and clear of any Liens. Evidence satisfactory to the Bank of
the renewal of every policy of insurance shall be left with the Bank at least seven (7) days before
the termination thereof. Each policy of insurance entered into by the Borrower after the date
hereof shall be in form and substance acceptable to the Bank and shall not, without the approval of
the Bank, be subject to any co-insurance clause.

13.1.12 Maintain Business, Assets and Undertaking —  The Borrower covenants and agrees with the Bank
that the Borrower will hereafter for so long as there are Obligations outstanding, defend title to
its assets and undertaking and those of its Subsidiaries against claims and demands of all Persons
whomsoever and shall keep and maintain the same in good standing, order, condition and repair,
subject to reasonable wear and tear of its assets.

13.1.13 Rights of Inspection —  At any reasonable time and from time to time upon reasonable prior
notice, the Borrower shall, and shall cause its Subsidiaries to, permit the Bank or any
representative thereof, at the expense and risk of the Bank, to examine the financial records and
books of account of the Borrower or any of its Subsidiaries and to visit and inspect the premises
and properties of the Borrower or any of its Subsidiaries and to discuss the affairs or finances
and accounts of either of the Borrower or any of their respective Subsidiaries with any of the
senior officers of the Borrower and as may reasonably be available and subject to any contractual
restrictions regarding confidentiality.

13.1.14 Notice of Material Default —  The Borrower shall deliver to the Bank, forthwith upon
becoming aware of any material default in the performance of any covenant, agreement or condition
contained in this Agreement, an Officer’s Certificate specifying the same.

13.1.15 Notice of Alternative Financing Arrangement — Not less than fifteen (15) Banking Days
prior to entering into any Alternative Financing Arrangement the Borrower shall deliver to

 

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the Bank an Officer’s Certificate advising the Bank of all relevant terms thereof, and shall
include the details of all affirmative and negative covenants to be given and all security to be
granted by the Borrower in connection therewith.

13.1.16 Discharge Existing Security —  The Borrower shall repay all outstanding Indebtedness that is
secured by a Lien on the assets or undertaking of the Borrower, other than Indebtedness allowed
under Permitted Encumbrances and the Indebtedness created pursuant hereto, and shall discharge any
such Lien.

13.2 Negative Covenants Of The Borrower

The Borrower covenants and agrees with the Bank that, unless the Bank otherwise consents in
writing, so long as any amount payable hereunder is outstanding:

13.2.1 Nature of Business —  The Borrower shall not make any material change in the nature of its
business as carried on at the date hereof.

13.2.2 Negative Pledge —  The Borrower shall not, nor will it permit any of its Subsidiaries to,
create, issue, incur, assume or permit to exist any mortgage, charge, Lien on any of its
undertakings or assets, other than Permitted Encumbrances.

13.2.3 No Modification to Material Agreements —  The Borrower shall not modify any of the terms of
any agreement to which it is a party which could reasonably be expected to have a Material Adverse
Effect without the prior written consent of the Bank, which may be withheld it the sole discretion
of the Bank.

13.2.4 No Dissolution —  The Borrower shall not, nor will it permit any Subsidiary to, liquidate,
dissolve or wind-up or take any steps or proceedings in connection therewith.

13.3 “Most Favored Nations” Covenant

The Borrower shall not enter into any Alternative Financing Arrangement that in the opinion of the
Bank acting reasonably:

	 	(a)	 	contains affirmative or negative covenants that are more restrictive than those
contained in Sections 13.1 and 13.2 hereof, or
	 
	 	(b)	 	creates any Lien, other than Permitted Encumbrances, upon or with respect to
any of its property, assets or undertaking, whether now owned or hereafter acquired, or
assign any right to receive income or proceeds from any of such property or assets,

in connection with any such Alternative Financing Arrangement unless at the time of entering into
such Alternative Financing Arrangement the Borrower:

	 	(c)	 	if more restrictive affirmative and negative covenants are given, the Borrower
gives to the Bank additional affirmative or negative covenants substantially in the

 

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	 	 	 	same form and effect as those contained in such Alternative Financing Arrangement,
and
	 
	 	(d)	 	if a Lien is created, the Borrower secures the Obligations equally and rateably
with such Lien,

on terms determined by the Bank acting reasonably.

13.4 Successor Corporation

The Borrower shall not, and shall not permit any Subsidiary to, enter into any transaction
whereby all or substantially all of its undertaking, property and assets would become the property
of any other corporation (herein called a “successor corporation”) whether by way of
reconstruction, reorganization, recapitalization, consolidation, amalgamation, merger, transfer,
sale or otherwise, unless:

13.4.1 prior to or contemporaneously with the consummation of such transaction the Borrower, or
such Subsidiary, as the case may be, and the successor corporation shall have executed such
instruments and done such things as, in the opinion of counsel, are necessary or advisable to
establish that upon the consummation of such transaction:

	 	(a)	 	the successor corporation will have assumed all the covenants and obligations
of the Borrower, or such Subsidiary, as the case may be, under this Agreement, and
	 
	 	(b)	 	this Agreement will be a valid and binding obligation of the successor
corporation entitling the Bank, as against the successor corporation, to exercise all
its rights under this Agreement;

13.4.2 such transaction shall be on such terms and shall be carried out in such manner as to not be
materially prejudicial to the rights and powers of the Bank hereunder; and

13.4.3 such transaction shall not result in the assets of the successor corporation being subjected
to any encumbrances other than Permitted Encumbrances.

Wherever the conditions of this Section 13.3 shall have been duly observed and performed the
successor corporation shall possess and from time to time may exercise each and every right and
power of the Borrower under this Agreement in the name of the Borrower.

ARTICLE 14

EVENTS OF DEFAULT AND ACCELERATION

14.1
Events Of Default

The occurrence of any one or more of the following events (each such event being herein referred to
as an “Event of Default”) shall constitute a default under this Agreement:

14.1.1

if the Borrower defaults in payment of the principal of any Loan or any L/C Obligation when
due and payable and such default continues unremedied for four Banking Days

 

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after notice of such default by the Bank to the Borrower specifying such default and requiring the
Borrower to put an end to the same (which said notice may be given by the Bank, in its discretion);

14.1.2
if the Borrower defaults in payment of (i) any interest (including, if applicable, default
interest) due on any Loan or (ii) any other amount payable by the Borrower hereunder when due and
payable and such default continues unremedied for four Banking Days after notice of such default by
the Bank to the Borrower specifying such default and requiring the Borrower to put an end to the
same (which said notice may be given by the Bank);

14.1.3
if the Borrower or the Guarantor neglects to observe or perform any other covenant or
obligation contained in this Agreement, the Security Documents and each of the other Documents to
which it is a party (other than a covenant or condition whose breach or default in performance is
elsewhere in this Section specifically dealt with) and such default continues unremedied for
fifteen (15) Banking Days after notice of such default by the Bank to the Borrower specifying such
default and requiring the Borrower to put an end to the same;

14.1.4 if the GIT Guarantee ceases to be enforceable against the Guarantor;

14.1.5 if the Guarantor fails to pay any amount when due under the GIT Guarantee;

14.1.6 if the Borrower or the Guarantor is at any time not Solvent;

14.1.7 the Borrower or any of its Subsidiaries (A) fails to make any payment in respect of any
Indebtedness of the Borrower or such Subsidiary, having an aggregate principal amount in excess of
U.S. $500,000, or the Equivalent Amount in Canadian Dollars, when due and payable (whether by
scheduled maturity, required prepayment, acceleration, demand, or otherwise); or (B) any other
event shall occur or condition exist under any agreement or instrument relating to such
Indebtedness if the effect of such event or condition is to accelerate or permit the acceleration
of the maturity or cash collateral in respect thereof to be demanded; or any such Indebtedness
shall become or be declared to be due and payable or required to be prepaid (other than by a
regularly scheduled required prepayment); or the Borrower or such Subsidiary is required to
repurchase or offer to repurchase such Indebtedness prior to the stated maturity thereof;

14.1.8 there occurs under any agreement evidencing Hedging Obligations a termination of such
agreement resulting from any event of default under such agreement by the Borrower or any
Subsidiary and the aggregate termination value of such agreements so terminated is in excess of
U.S. $500,000, or the Equivalent Amount in Canadian Dollars;

14.1.9 if a decree or order of a court having jurisdiction in the premises is entered adjudging
either the Borrower or the Guarantor bankrupt or insolvent, or approving as properly filed a
petition seeking the winding up of such party under the Companies’ Creditors Arrangement Act
(Canada), the Bankruptcy and Insolvency Act (Canada) or the Winding Up Act (Canada) or any other
bankruptcy, insolvency or analogous laws or issuing sequestration or process of execution against,
or against any substantial part of the assets of, such party or ordering the winding up or
liquidation of its affairs, (or similar process or proceeding in any

 

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other jurisdiction) and any such decree or order continues unstayed and in effect for a period of
fifteen (15) Banking Days;

14.1.10 if the Borrower or the Guarantor makes any assignment in bankruptcy or makes any other
assignment for the benefit of creditors, makes any proposal under the Bankruptcy and Insolvency Act
(Canada) or any comparable law, seeks relief under the Companies’ Creditors Arrangement Act
(Canada), the Winding Up Act (Canada) or any other bankruptcy, insolvency or analogous law in any
other jurisdiction, is adjudged bankrupt, files a petition or proposal to take advantage of any act
of insolvency, consents to or acquiesces in the appointment of a trustee, receiver, receiver and
manager, interim receiver, custodian, sequestrator or other Person with similar powers of itself or
of all or any substantial portion of its assets, or files a petition or otherwise commences any
proceeding seeking any reorganization, arrangement, composition or readjustment under any
applicable bankruptcy, insolvency, moratorium, reorganization or other similar law affecting
creditors’ rights or consents to, or acquiesces in, the filing of such a petition;

14.1.11 one or more final judgments for the payment of money in an amount in Canadian Dollars in
the aggregate exceeding U.S. $500,000, or the Equivalent Amount in Canadian Dollars, shall be
rendered by a court of record against the Borrower or the Guarantor in any jurisdiction or
jurisdictions in which any such party has property or assets which are material to the business,
operations or financial condition of the Borrower and its Subsidiaries taken as a whole and the
Borrower or any such Subsidiary shall not discharge the same or provide for its discharge in
accordance with its terms, or procure a stay of execution thereof within thirty (30) days from the
date of entry thereof, and within said period of thirty (30) days, or such longer period during
which execution of such judgment shall have been stayed, appeal such final judgment and cause the
execution thereof to be stayed during such appeal;

14.1.12 if any representation or warranty made by the Borrower or any of its Subsidiaries in this
Agreement and each of the other Documents to which it is a party or any certificate or other
document at any time delivered hereunder to the Bank shall prove to have been incorrect or
misleading in any material respect in respect of the business, operations or financial condition of
the Borrower and its Subsidiaries taken as a whole as of the date thereof, which could reasonably
be expected to have a Material Adverse Effect;

14.1.13 if proceedings are commenced for the dissolution, liquidation or winding-up of either the
Borrower or the Guarantor, or for the suspension of the operations of either the Borrower or the
Guarantor unless such proceedings are being actively and diligently contested in good faith; or

14.1.14 default by GIT under any Security Document or other Document to which it is a party.

14.2 Acceleration

If any Event of Default shall occur and be continuing, the entire principal amount of Loans
then outstanding and all accrued and unpaid interest thereon and all other payments due hereunder,
at the option of the Bank become immediately due and payable with interest thereon, at the rate or

 

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rates determined as herein provided, to the date of actual payment thereof, all without notice,
presentment, protest, demand, notice of dishonour or any other demand or notice whatsoever, all of
which are hereby expressly waived by the Borrower. In such event the Bank may, in its discretion,
exercise any right or recourse, or proceed by any action, suit, remedy or proceeding against the
Borrower, authorized or permitted by law for the recovery of all the indebtedness and liabilities
of the Borrower to the Bank, or any combination of the foregoing, and proceed to exercise any and
all rights hereunder and no such remedy for the enforcement of the rights of the Bank shall be
exclusive of or dependent on any other remedy but any one or more of such remedies may from time to
time be exercised independently or in combination.

14.3 Default Interest

If an Event of Default shall occur and be continuing, the Bank may convert, at the Equivalent
Amount, if applicable, any or all Canadian Prime Rate Loans, Letters of Credit, L/C Liabilities or
Libor Loans, at any time, to U.S. Base Rate Loans. Interest shall accrue in respect of all
Obligations outstanding at that time:

14.3.1 on each U.S. Base Rate Loan at the Interest Rate then in effect plus 2% per annum; and

14.3.2 on L/C Liabilities in respect of each Letter of Credit which is denominated in U.S. Dollars,
and each Libor Loan, which the Bank has not then converted to a U.S. Base Rate Loan, at the
Interest Rate then in effect for U.S. Base Rate Loans plus 2% per annum; and

14.3.3 on L/C Liabilities in respect of each Letter of Credit which is denominated in Canadian
Dollars, Canadian Prime Rate Loan, Bankers’s Acceptance, which the Bank has not then converted to a
U.S. Base Rate Loan, at the Interest Rate then in effect for Canadian Prime Rate Loans plus 2% per
annum;

together in each case with interest on all overdue interest at the same rate, from the date of the
Event of Default in the case of each U.S. Base Rate Loan and Canadian Prime Rate Loan outstanding
on the such date, or from the date of conversion in the case of any U.S. Base Rate Loan into which
a Letter of Credit or L/C Liabilities is converted under this Section, for so long as such default
shall continue, before and after judgment, such interest to be payable on demand.

14.4 Remedies Cumulative And Waivers

For greater certainty, it is expressly understood and agreed that the respective rights and
remedies of the Bank hereunder or under any other document or instrument executed pursuant to this
Agreement are cumulative and are in addition to and not in substitution for any rights or remedies
provided by law or by equity; and any single or partial exercise by the Bank of any right or remedy
for a default or breach of any term, covenant, condition or agreement contained in this Agreement
or other document or instrument executed pursuant to this Agreement shall not be deemed to be a
waiver of or to alter, affect or prejudice any other right or remedy or other rights or remedies to
which the Bank may be lawfully entitled for such default or breach. Any waiver by the Bank of the
strict observance, performance or compliance with any term, covenant, condition or agreement herein
contained and any indulgence granted, either expressly or by course of conduct, by the Bank shall
be effective only in the specific instance and for the

 

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purpose for which it was given and shall be deemed not to be a waiver of any rights and remedies of
the Bank under this Agreement or any other document or instrument executed pursuant to this
Agreement as a result of any other default or breach hereunder or thereunder.

14.5 Termination Of Bank’s Obligations

The occurrence of an Event of Default shall relieve the Bank of all obligations to permit any
further Drawdowns hereunder.

ARTICLE 15

CHANGE OF CIRCUMSTANCES

15.1 Market Disruption

In the event that at any time subsequent to the giving of a Drawdown Notice, Rollover Notice
or Conversion Notice to the by the Borrower with regard to any Libor Loan but before the date of
the Drawdown, Rollover or Conversion, as the case may be, the Bank make a determination, which
shall be binding upon the Borrower, that:

15.1.1 by reason of circumstances affecting the London interbank market adequate and fair means do
not exist for ascertaining the rate of interest with respect to a Libor Loan during the Interest
Period selected;

15.1.2 the making or continuing of the Libor Loan by the Bank has been made impracticable by the
occurrence of an event which materially or adversely affects the London interbank market; or

15.1.3 the cost to the Bank of funding the Libor Loan for the immediately following Interest Period
does not accurately reflect the effective cost of the Bank’ funding for that Interest Period,

then the Bank shall give notice thereof to the Borrower and the Borrower shall, within one (1)
Banking Day after receipt of such notice, give the Bank a revised Drawdown Notice or a Conversion
Notice, as the case may be, which specifies the Drawdown of a Canadian Prime Rate Loan, a U.S. Base
Rate Loan, on the last day of the applicable Interest Period. In the event the Borrower fails to
give, if applicable, a Conversion Notice, such Libor Loan shall be converted on the last day of the
applicable Interest Period, to the extent possible, into a U.S. Base Rate Loan.

15.2 Change In Law

In the event of any change after the date hereof in any applicable Requirements of Law
(whether or not having the force of law) or in the interpretation or application thereof by any
court or by any governmental agency, central bank or other authority or entity charged with the
administration thereof in Canada or the United States of America which now or hereafter:

15.2.1 subjects the Bank to any tax (other than withholding tax) or changes the basis of taxation,
or increases any existing tax, on payments of principal, interest, fees or other amounts

 

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payable by the Borrower to the Bank under this Agreement (except for taxes on the overall net
income of the Bank);

15.2.2 imposes, modifies or deems applicable any reserve, special deposit or similar requirements
against assets held by, or deposits in or for the account of or loans by or any other acquisition
of funds by, an office of the Bank; or

15.2.3 imposes on the Bank or expects there to be maintained by the Bank any capital adequacy or
additional capital requirements in respect of any Loans or the Credit Facility hereunder, or any
other condition with respect to this Agreement,

and the result of any of the foregoing shall be to increase the cost to, or reduce the amount of
principal, interest or other amount received or receivable by the Bank hereunder or its effective
return hereunder in respect of making, maintaining or funding the Loan under the Credit Facility
the Bank shall determine that amount of money which shall compensate the Bank for such increase in
cost or reduction in income (herein referred to as “Additional Compensation”). Upon the Bank having
determined that it is entitled to Additional Compensation in accordance with the provisions of this
Section, the Bank shall, within twenty (20) days, so notify the Borrower. The Borrower shall pay to
the Bank within ten (10) Banking Days of the giving of such notice and receipt of the
aforementioned certificate the Bank’s Additional Compensation calculated to the date of such
notification. The Bank shall be entitled to be paid such Additional Compensation from time to time
to the extent that the provisions of this Section are then applicable. The Bank shall endeavour to
limit the incidence of any such Additional Compensation, including seeking recovery for the account
of the Borrower, by appealing any assessment at the expense of the Borrower upon the Borrower’s
request. The Bank shall eliminate such Additional Compensation should the cause of the same be
rescinded, removed, repealed or withdrawn.

15.3 Repayment Of Affected Loan

Notwithstanding the provisions hereof, if the Bank gives the notice provided for in Section
15.2 with respect to any Loan (an “Affected Loan”), the Borrower may repay in full without penalty
the full amount of the Affected Loan outstanding together with accrued and unpaid interest on the
principal amount so prepaid up to the date of such prepayment, such Additional Compensation as may
be applicable to the date of such payment and all costs, losses and expenses incurred by the Bank
by reason of the liquidation or re-employment of deposits or other funds resulting from the
repayment of such Affected Loan or any part thereof on other than the last day of the applicable
Interest Period, and upon such payment being made that Bank’s obligations to make such Affected
Loans to the Borrower under this Agreement shall terminate. The Bank shall prepare a certificate of
a duly authorized officer of the Bank setting forth the basis of calculation thereof and such
certificate shall be delivered by the Bank to the Borrower. If pursuant to the provisions of this
Section or any other provision hereof the Borrower become obliged to pay such Additional
Compensation or such costs, losses or expenses, the Bank shall use its best efforts to minimize
such Additional Compensation and such costs, losses or expenses.

 

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15.4 Illegality

If, in Canada or the United States of America the adoption of any applicable Requirements of
Law (whether or not having the force of law) or any change therein or in the interpretation or
application thereof by any court or by any governmental or other authority or central bank or
comparable agency or any other entity charged with the interpretation or administration thereof or
compliance by the Bank with any request or direction (whether or not having the force of law) of
any such authority, central bank or comparable agency or entity, now or hereafter makes it unlawful
or impossible for the Bank to make, fund or maintain a Loan under the Credit Facility or to give
effect to its obligations in respect of such Loan, the Bank may, by written notice thereof to the
Borrower declare its obligations under this Agreement to be terminated whereupon the same shall
forthwith terminate, and the Borrower shall repay within the time required by such law (or at the
end of such longer period as the Bank at its discretion has agreed) the principal of the Loan
together with accrued interest, such Additional Compensation as may be applicable to the date of
such payment and all costs, losses and expenses incurred by the Bank by reason of the liquidation
or re-employment of deposits or other funds resulting from the repayment of such Loan or any part
thereof on other than the last day of the applicable Interest Period. The Bank shall prepare a
certificate of a duly authorized officer of the Bank setting forth the basis of calculation thereof
and such certificate shall be delivered by the Bank to the Borrower. If pursuant to the provisions
of this Section or any other provision hereof the Borrower becomes obliged to pay such Additional
Compensation or such costs, losses or expenses, the Bank shall use its best efforts to minimize
such Additional Compensation and such costs, losses or expenses. If any such change shall only
affect a portion of the Bank’s obligations under this Agreement which is, in the opinion of the
Bank severable from the remainder of this Agreement so that the remainder of this Agreement may be
continued in full force and effect without otherwise affecting any of the obligations of the Bank
or the Borrower hereunder, the Bank shall only declare its obligations under that portion so
terminated.

ARTICLE 16

COSTS, EXPENSES AND INDEMNIFICATION

16.1 Costs And Expenses

The Borrower shall pay promptly upon receipt of written notice from the Bank all reasonable
out of pocket costs and expenses in connection with preparation, printing, execution and delivery
of this Agreement, the Security Documents and each of the other Documents to be delivered hereunder
whether or not any Drawdown has been made hereunder, including, without limitation, the reasonable
fees and reasonable out-of-pocket expenses of counsel to the Bank with respect thereto and with
respect to advising the Bank as to its rights and responsibilities under this Agreement and the
other documents to be delivered hereunder. The Borrower shall, in addition, pay promptly upon
receipt of written notice from the Bank all out of pocket costs and expenses in connection with the
Bank’s annual collateral field audit expenses in connection with the Credit Facility. Except for
ordinary expenses of the Bank relating to the day-to-day administration of this Agreement, the
Borrower further agree to pay within ten (10) Banking Days of demand by Bank all reasonable costs
and expenses in connection with the preparation or review of waivers, consents and amendments and
questions of interpretation of this Agreement and in connection with the establishment of the
validity and enforceability of this Agreement and

 

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the preservation or enforcement of rights of the Bank under this Agreement and other documents to
be delivered hereunder, including, without limitation, all reasonable costs and expenses sustained
by the Bank as a result of any failure by the Borrower to perform or observe their obligations
contained in this Agreement and the other documents to be delivered hereunder.

16.2 Set-Up Fee

At the date of the initial Advance in respect of any Facility, the Bank shall receive a fee equal
to U.S. $5,000 in respect of its facilitating the Credit Facility.

16.3 Indemnification By The Borrower

16.3.1 In addition to any liability of the Borrower to the Bank under any other provision hereof,
the Borrower and its Subsidiaries shall indemnify the Bank and hold the Bank harmless against any
reasonable loss or expense incurred by the Bank to third parties as a result of any failure by the
Borrower to fulfil any of its obligations hereunder including, without limitation, any cost or
expense incurred by reason of the liquidation or re-employment in whole or in part of deposits or
other funds required by the Bank to fund or maintain any Loan as a result of the Borrower’s failure
to complete a Drawdown or to make any payment, repayment or prepayment on the date required
hereunder or specified by it in any notice given hereunder; the Borrower’s failure to pay any other
amount, including without limitation any interest or fee, due hereunder on its due date; the
repayment or prepayment of a Libor Loan otherwise than on the last day of its Interest Period; or
the Borrower’s failure to give any notice required to be given by it to the Bank hereunder.

16.3.2 The Borrower shall indemnify the Bank and each director, officer, employee and affiliate of
the Bank (an “Indemnified Party”) in connection with any expenses, losses, claims, damages or
liabilities to which any such Indemnified Party may become subject insofar as such losses, claims,
damages, or liabilities (or actions in respect thereof) arise out of or in any way relate or result
from the actions of the Borrower or any of its Subsidiaries in connection with the use of Loans,
and to reimburse such Indemnified Party for any legal or other expenses incurred in connection with
the investigating, defending or participating in any such loss, claim, damage, liability or action.
Notwithstanding the foregoing the Borrower shall have no obligation hereunder with respect to
indemnified liabilities or expenses arising out of the negligence or wilful misconduct of an
indemnified party.

16.3.3 The Bank shall notify the Borrower of any claim to be made by the Bank pursuant to Article
15 or Article 16 within a period of one year after the Bank first had knowledge of the facts giving
rise to the claim and failing the giving of such notice within such time period the claim shall be
extinguished and the Bank shall have no further claim thereon.

16.4 Interest On Unpaid Costs And Expenses

Subject always to the provisions of Section 14.3 hereof, unless the payment of interest is
otherwise specifically provided for herein, where the Borrower fails to pay any amount required to
be paid by it hereunder when due having received notice that such amount is due, the Borrower shall
pay interest on such unpaid amount from the time such amount is due until paid at an annual rate
equal to the Interest Rate then in effect in respect of Canadian Prime Rate

 

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Loans, plus 2% per annum as regards amounts denominated in Canadian Dollars and at an annual rate
equal to the Interest Rate then in effect in respect of U.S. Base Rate Loans, plus 2% per annum as
regards amounts denominated in United States Dollars.

ARTICLE 17

GENERAL

17.1 Confidentiality Of Information

The Bank acknowledges the confidential nature of the financial, operational and other
information and data provided and to be provided to them by the Borrower pursuant hereto (the
“Information”) and agree to use all reasonable efforts to prevent the disclosure thereof.
Notwithstanding the foregoing, the Bank may disclose all or any part of the Information if, in its
opinion, such disclosure is desirable or required in connection with any actual or threatened
judicial, administrative or governmental proceeding or any investigation by any judicial authority,
law enforcement agency or taxation authority, or any other process under which it is legally
compelled or otherwise required to make to avoid standing liable for contempt or suffering other
material censure or penalty, including any proceeding or investigation under or in respect of any
rule or regulation promulgated by any Regulatory Authority, and it shall incur no liability in
respect of any disclosure of information to any, or pursuant to any such requirement.

The Bank agrees with the Borrower, however that it shall endeavour to provide the Borrower
with notice of any such anticipated disclosure of Information so that the Borrower may, at its sole
expense, seek a protective order or other appropriate relief, or waive compliance with the
provisions of this Section. If such protective order or other remedy is not obtained or the
Borrower waives compliance with this Section, then the Bank will furnish only that portion of the
Information which, in its sole opinion, it is legally required to furnish. Notwithstanding the
foregoing, the Bank shall not be liable to the Borrower for any failure on the part of the Bank to
give notice to the Borrower pursuant to this Section.

17.2 Notice

The address for notices of each of the Parties shall be as follows:

TO: Telvent Canada Ltd.

Suite 200, 10333 Southport Road S.W. Calgary, Alberta, T2W 3X6

Attention: Ramon Chavez — Treasury Manager Telvent

and:           Cameron Demcoe

Telephone: (403) 301 5009

Facsimile: (403) 301 5027

TO: ABN AMRO Bank N.V.

 

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Suite 1500 TDWaterhouse Tower, 79 Wellington Street West P.O. Box 114, Toronto Dominion Centre
Toronto Ontario M5K 1G8

Attention: Bayu Budiatmanto / International Corporate Banking

Telephone: (416) 365-2932

Facsimile: (416) 367-7937

Each of the Addressees may from time to time change their address for service herein by giving
written notice to the other Addressee. Any notice, required or contemplated hereunder, may be
served by personal service upon an officer or director of a Addressee or by telecopy, facsimile
transmission or mailing the same, except during periods of actual or anticipated postal
disruptions, by prepaid registered post in a properly addressed envelope addressed to the Addressee
at its address for service hereunder, as the same may be amended from time to time in accordance
herewith. Any notice given by service upon an officer or director of a Addressee shall be deemed to
be given on the date of such service. Any notice given by mail shall be deemed to be given to and
received by the addressee on the fifth (5th) Business Day after the mailing thereof. Any
notice given by telecopy or facsimile transmission shall be deemed to be given to and received by
the addressee on the next Business Day after the sending thereof.

17.3 Governing Law

This Agreement shall be conclusively deemed to be a contract made under, and shall for all
purposes be governed by and construed in accordance with the laws of the Province of Alberta and
the federal laws of Canada therein applicable to contracts made in and to be wholly performed in
such Province, without prejudice to or limitation of any other rights or remedies available under
the laws of any jurisdiction where property or assets of the Borrower may be found.

17.4 Consent To Jurisdiction

17.4.1 The Borrower hereby irrevocably submits to the jurisdiction of any Alberta court sitting in
Calgary in any action or proceeding arising out of or relating to this Agreement, the Security
Documents and each of the other Documents to which it is a party and hereby irrevocably agrees that
all claims in respect of any such action or proceeding may be heard and determined in such Alberta
court. The Borrower hereby consents to service upon it at its address set out in Section 17.2 of
copies of the statement of claim and any process issued in respect of any such action or
proceeding. The Borrower 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.

17.4.2 Nothing in this Section shall affect the right of the Bank to serve legal process in any
other manner permitted by law or affect the right of the Bank to bring any action or proceeding
against the Borrower or its property in the courts of other jurisdictions.

 

-44-

17.5 Judgment Currency

17.5.1 If for the purpose of obtaining or enforcing judgment against the Borrower or any Subsidiary
of the Borrower in any court in any jurisdiction, it becomes necessary to convert into any other
currency (such other currency being hereinafter in this Section referred to as the “Judgment
Currency”) an amount due in Canadian Dollars or United States Dollars under this Agreement, the
conversion shall be made at the rate of exchange prevailing on the Banking Day immediately
preceding the date of actual payment of the amount due, in the case of any proceeding in the courts
of any jurisdiction, including the Province of Alberta, if the courts thereof will give effect to
such conversion being made on such date and otherwise on the date on which the judgment is given,
(the date as of which such conversion is made pursuant to this Section being hereinafter in this
Section referred to as the “Judgment Conversion Date”).

17.5.2 If, in the case of any proceeding in the court of any jurisdiction referred to in Section,
there is a change in the rate of exchange prevailing between the Judgment Conversion Date and the
date of actual payment of the amount due, the Borrower shall pay such additional amount (if any,
but in any event not a lesser amount) as may be necessary to ensure that the amount paid in the
Judgment Currency, when converted at the rate of exchange prevailing on the date of payment, will
produce the amount of Canadian Dollars or United States Dollars, as the case may be, which could
have been purchased with the amount of Judgment Currency stipulated in the judgment or judicial
order at the rate of exchange prevailing on the Judgment Conversion Date.

17.5.3 Any amount due from the Borrower under the provisions of Section shall be due as a separate
debt and shall not be affected by judgment being obtained for any other amounts due under or in
respect of this Agreement.

17.5.4 The term “rate of exchange” in this Section means the noon rate of exchange for Canadian
interbank transactions in Canadian Dollars or United States Dollars, as the case may be, in the
Judgment Currency published by the Bank of Canada for the day in question, or if such rate is not
so published by the Bank of Canada, such rate shall mean the simple average of the spot rates
quoted for wholesale transactions by ABN AMRO Bank NV, in Chicago, Illinois at approximately noon
(Toronto Time) on that date in accordance with its normal practice.

17.6 Benefit Of The Agreement

This Agreement shall enure to the benefit of and be binding upon the Borrower and the Bank,
and their respective successors and permitted assigns.

17.7 Assignment And Novation

The Bank may assign its rights and obligations under this Agreement and novate the assignee into
this Agreement, including without limitation to a Subsidiary or Affiliate of the Bank.

17.8 Severability

Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall not
invalidate the remaining provisions hereof and any such prohibition or unenforceability in

 

-45-

any jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction.

17.9 Whole Agreement

This Agreement constitutes the whole and entire agreement between the parties hereto in
connection with the borrowings contemplated herein and cancels and supersedes any prior agreements,
undertakings, declarations, commitments, representations, written or oral, in respect thereof.

17.10 Amendments And Waivers

Except as otherwise specifically provided herein, any provision of this Agreement may be
amended only by the Borrower and the Bank in writing and may be waived only if the Bank so agrees
in writing. Any such waiver and any consent by the Bank under any provision of this Agreement may
be given subject to any conditions thought fit by the Bank. Any waiver or consent shall be
effective only in the instance and for the purpose for which it is given.

17.11 Further Assurances

The Borrower, and the Bank shall promptly cure any default by it in the execution and delivery
of this Agreement to which it is a party. The Borrower, at its expense, shall promptly execute and
deliver to the Bank, upon request by the Bank, all such other and further documents, agreements,
opinions, certificates and instruments in compliance with, or accomplishment of the covenants and
agreements of the Borrower hereunder or more fully to state the obligations of the Borrower as set
out herein or to make any recording, file any notice or obtain any consent, all as may be
reasonably necessary or appropriate in connection therewith.

17.12 Binding Effect

This Agreement shall become effective when it shall have been executed by the Borrower and the
Bank and thereafter shall be binding upon and enure to the benefit of the Borrower and the Bank and
their respective successors and assigns. The Borrower shall not assign its rights and obligations
hereunder or any interest herein without the prior consent of all the Bank.

17.13 Time Of The Essence

Time shall be of the essence of this Agreement.

17.14 Counterpart Execution

This Agreement may be executed in any number of counterparts, each of which shall be deemed to be
an original and all of which taken together shall be deemed to constitute one and the same
instrument, and it shall not be necessary in making proof of this Agreement to produce or account
for more than one such counterpart.

 

-46-

IN WITNESS WHEREOF the Parties hereto have duly executed this Agreement as of the date first above
written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Telvent Canada Ltd.	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Per:

	 	/s/ David Jardine	 	 	 	Per:	 	/s/ Cameron Demcoe	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	David Jardine	 	 
	 	 	 	Name:
	 	Cameron Demcoe	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	President	 	 	 	 	 	Title:	 	Corporate Secretary	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ABN AMRO Bank NV.	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Per:

	 	/s/ Darcy Mack	 	 	 	Per:	 	/s/ H. Bayu Budiatmanto	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Darcy Mack	 	 	 	 	 	Name:	 	H. Bayu Budiatmanto	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	First Vice President	 	 	 	 	 	Title:	 	Vice PresidentExhibit 4.1

Exhibit 4.1

DICK’S SPORTING GOODS, INC.

AMENDED AND RESTATED 2002 STOCK AND INCENTIVE PLAN

(As Amended and Restated on March 27, 2008)

1. Purposes of this Plan. The purposes of this Plan are to attract and retain the best available
personnel for positions of substantial responsibility, to provide additional incentive to Eligible
Individuals, to further align Eligible Individuals’ interests with those of the stockholders of the
Company and to promote the success of the Company’s business. The Plan is amended and restated as
set forth herein to comply with Section 409A.

     2. Certain Definitions. As used herein, the following definitions shall apply:

     (a) “Administrator” means the Board and any Committee appointed by the Board to administer the
Plan; provided, however, that the Board, in its sole discretion, may, notwithstanding the
appointment of any Committee to administer the Plan, exercise any authority under this Plan except
with respect to awards intended to comply with Section 162(m) of the Code, which shall in all cases
be awarded by the Committee, and may thereafter be ratified by the Board.

     (b) “Award” means any Incentive Bonus Award, Option, Performance Share Award, Performance Unit
Award, Restricted Stock Award, Restricted Unit Award, SAR or Stock Unit Award granted under the
Plan.

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

     (d) “Change in Control” means (i) any “person” (as such term is used in Sections 13(d) and
14(d) of the Exchange Act) other than a Class B Permitted Holder (as such term is defined in the
Company’s Amended and Restated Certificate of Incorporation) through a tender offer, open market
purchases and/or other purchases is or becomes a beneficial owner, directly or indirectly, of
securities of the Company representing more than fifty percent (50%) of the combined voting power
of the Company’s then outstanding securities or (ii) a majority of the Board shall be comprised of
persons who (x) were elected in one or more contested elections for the Board and (y) had not been
nominated when they were first elected by the then existing Board. Notwithstanding the foregoing
or any provision of this Plan to the contrary, if an Award is subject to Section 409A (and not
excepted therefrom) and a Change of Control is a distribution event for purposes of an Award, the
foregoing definition of Change in Control shall be interpreted, administered and construed in a
manner necessary to ensure that the occurrence of any such event shall result in a Change of
Control only if such event qualifies as a change in the ownership or effective control of a
corporation, or a change in the ownership of a substantial portion of the assets of a corporation,
as applicable, within the meaning of Treas. Reg. § 1.409A-3(i)(5).

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

 

 

     (f) “Class B Common Stock” means the Class B Common Stock, par value $.01 per share, of the
Company.

     (g) “Code” means the Internal Revenue Code of 1986, as amended.

     (h) “Committee” means a committee of the Board.

     (i) “Company Common Stock” means the Common Stock or the Class B Common Stock of the Company,
as the case may be.

     (j) “Company” means Dick’s Sporting Goods, Inc., a Delaware corporation.

     (k) “Consultant” means any person, including an advisor, who is engaged by the Company or any
Parent or Subsidiary to render services and is compensated for such services, and any director of
the Company whether compensated for such services or not.

     (l) “Continuous Status as an Employee” means the absence of any interruption or termination of
the employment relationship by the Employee with the Company or any Parent or Subsidiary.
Continuous Status as an Employee shall not be considered interrupted in the case of: (i) sick
leave; (ii) military leave; (iii) any other leave of absence approved by the Board, provided that
such leave is for a period of not more than ninety (90) days, unless reemployment upon the
expiration of such leave is guaranteed by contract or statute, or unless provided otherwise
pursuant to Company policy adopted from time to time; or (iv) transfers between locations of the
Company or between the Company, its Parent, its Subsidiaries or its successor.

     (m) “Eligible Individual” means any Employee, Non-Employee Director or Consultant.

     (n) “Employee” means any person, including officers and directors, employed by the Company or
any Parent or Subsidiary of the Company or any prospective employee who shall have received an
offer of employment. The payment of a director’s fee by the Company shall not be sufficient to
constitute “employment” by the Company.

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

     (p) “Fair Market Value” means, as of any date, the value of the applicable class of Company
Common Stock determined as follows:

          (i) If such class of Company Common Stock is listed on any established stock exchange or a
national market system reporting last sale transactions including, without limitation, the Nasdaq
National Market, its Fair Market Value shall be the closing sale price for such stock (or the
closing bid, if no sales were reported) as quoted on such system or exchange for the last market
trading day prior to the time of determination as reported in the Wall Street Journal or such other
source as the Administrator deems reliable or;

          (ii) If such class of Company Common Stock is quoted on Nasdaq (but not on a last reported
sale basis) or regularly quoted by a recognized securities dealer but selling prices are not
reported, its Fair Market Value shall be the mean between the high and low closing asked

2

 

prices for the Company Common Stock for the last market trading day prior to the time of
determination as reported in the Wall Street Journal or such other source as the Administrator
deems reliable or;

          (iii) In the absence of an established market for a class of Company Common Stock, the Fair
Market Value thereof shall be determined in good faith by the Administrator. For purposes of this
Plan, the Class B Common Stock shall be deemed to have the same value per share of the Common Stock
unless the value of the Class B Common Stock is determinable in accordance with subparagraphs (i)
or (ii) above.

     (q) “Incentive Bonus Award” means the opportunity to earn a future cash payment tied to the
level of achievement with respect to one or more Qualifying Performance Criteria for a performance
period as established by the Administrator.

     (r) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option
within the meaning of Section 422 of the Code.

     (s) “Non-Employee Director” means a member of the Board who is not an employee of the Company
or any Parent or Subsidiary of the Company.

     (t) “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock
Option.

     (u) “Option” means a right to purchase Shares granted pursuant to the Plan.

     (v) “Optioned Stock” means the Shares subject to an Option.

     (w) “Optionee” means a Participant who holds an Option.

     (x) “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in
Section 424(e) of the Code.

     (y) “Participant” means any person who has an Award under the Plan including any person
(including any estate) to whom an Award has been assigned or transferred in accordance with the
Plan.

     (z) “Performance Share Award” means a grant of a right to receive Shares or Stock Units
contingent on the achievement of performance or other objectives during a specified period.

     (aa) “Performance Unit Award” means a grant of a right to receive a designated dollar value
amount of Shares or Stock Units contingent on the achievement of performance or other objectives
during a specified period.

     (bb) “Plan” means this 2002 Stock and Incentive Plan, as amended and restated herein.

3

 

     (cc) “Qualifying Performance Criteria” means any one or more of the following performance
criteria, either individually, alternatively or in any combination, applied to either the Company
as a whole or to a business unit or subsidiary, either individually, alternatively or in any
combination, and measured over a period of time including any portion of a year, annually or
cumulatively over a period of years, on an absolute basis or relative to a pre-established target,
to previous years’ results or to a designated comparison group, in each case as specified by the
Award: (a) cash flow, (b) earnings per share (including earnings before interest, taxes,
depreciation, and amortization or some variation thereof), (c) stock price, (d) return on equity,
(e) total stockholder return, (f) return on capital, (g) return on assets or net assets, (h)
revenue, (i) income or net income, (j) operating income or net operating income, (k) operating
profit or net operating profit, (l) operating margin or profit margin, (m) return on operating
revenue, and (n) market share. To the extent consistent with Section 162(m) of the Code, the
Administrator shall appropriately adjust any evaluation of performance under a Qualifying
Performance Criteria to exclude any of the following events that occurs during a performance
period: (i) asset write-downs, (ii) litigation or claim judgments or settlements, (iii) the effect
of changes in tax law, accounting principles or other such laws or provisions affecting reported
results, (iv) accruals for reorganization and restructuring programs and (v) any extraordinary
non-recurring items as described in Accounting Principles Board Opinion No. 30 and/or in
management’s discussion and analysis of financial condition and results of operations appearing in
the Company’s annual report to stockholders for the applicable year.

     (dd) “Restricted Stock Award” means a grant of Shares subject to a risk of forfeiture or other
restrictions that will lapse upon the achievement of one or more goals relating to completion of
service by the Participant, or achievement of performance or other objectives, as determined by the
Administrator.

     (ee) “Restricted Unit Award” means a grant of Stock Unit subject to a risk of forfeiture or
other restrictions that will lapse upon the achievement of one or more goals relating to completion
of service by the Participant, or achievement of performance or other objectives, as determined by
the Administrator.

     (ff) “SAR” means a stock appreciation right, which is the right to receive an amount equal to
the appreciation, if any, in the Fair Market Value of a Share from the date of the grant of the
right to the date of its payment, as adjusted in accordance with Section 10 of this Plan, payable
in cash, Shares or Stock Units.

     (gg) “Section 409A” shall mean Section 409A of the Code, the regulations and other binding
guidance promulgated thereunder.

     (hh) “Separation from Service” and “Separate from Service” shall mean the Participant’s death,
retirement or other termination of employment or service with the Company (including all persons
treated as a single employer under Section 414(b) and 414(c) of the Code) that constitutes a
“separation from service” (within the meaning of Section 409A). For purposes hereof, the
determination of controlled group members shall be made pursuant to the provisions of Section
414(b) and 414(c) of the Code; provided that the language “at least 50 percent” shall be used
instead of “at least 80 percent” in each place it appears in Section 1563(a)(1),(2) and (3) of the
Code and Treas. Reg. § 1.414(c)-2; provided, further, where legitimate business reasons

4

 

exist (within the meaning of Treas. Reg. § 1.409A-1(h)(3)), the language “at least 20 percent”
shall be used instead of “at least 80 percent” in each place it appears.

     (ii) “Share” means a share of the Company Common Stock, as adjusted in accordance with Section
10 of this Plan.

     (jj) “Specified Employee” means a key employee (as defined in Section 416(i) of the Code
without regard to paragraph (5) thereof) of the Company as determined in accordance with Section
409A and the procedures established by the Company.

     (kk) “Stock Unit” means the right to receive a Share at a future point in time.

     (ll) “Stock Unit Award” means the grant of a Stock Unit.

     (mm) “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as
defined in Section 424(f) of the Code.

3. Shares Subject to the Plan. Subject to the provisions of Section 10 of this Plan, the maximum
aggregate number of Shares which may be issued under the Plan is 39,732,0001. The Shares
may be authorized, but unissued Shares, issued Shares that have been reacquired by the Company
(otherwise known as treasury Shares) or Shares acquired on the open market specifically for
distribution under this Plan, or any combination thereof. Notwithstanding any other provision of
this Plan, Awards for Class B Common Stock or Awards for securities convertible or exchangeable
into Class B Common Stock may only be issued to a Class B Permitted Holder (as such term is defined
in the Company’s Certificate of Incorporation, as amended).

If Shares under any Award are not issued for any reason, such Shares shall, unless the Plan shall
have been terminated, become available for future grant under the Plan. In addition, any Shares
delivered or deemed delivered, by attestation or otherwise, to the Company in payment of any
obligation, including the exercise price of any option, the purchase price for any Shares, or for
any tax obligation shall be added back to the Shares available for issuance under the Plan.

The aggregate number of Shares issuable under all Awards (including options and SARs) granted under
this Plan during any calendar year to any one Eligible Individual shall not exceed 13,860,000.
Notwithstanding anything to the contrary in this Plan, the foregoing limitations shall be subject
to adjustment under Section 10, but only to the extent that such adjustment will not affect the
status of any Award intended to qualify as “performance-based compensation” under Section 162(m) of
the Code. The foregoing limitations shall not apply to the extent that they are no longer required
in order for compensation in connection with grants under this Plan to be treated as
“performance-based compensation” under Section 162(m) of the Code.

4. Administration of this Plan.

 

			
	1	 	Revised to reflect all stock splits effectuated by the
Company as of February 2, 2008.

5

 

     (a) Authority. Subject to the provisions of this Plan and, in the case of a Committee, the
specific duties delegated to or limitation imposed upon such Committee by the Board, the
Administrator shall have the authority, in its discretion:

          (i) to establish, amend and rescind rules and regulations relating to the Plan;

          (ii) to select the Eligible Individuals to whom Awards may from time to time be granted
hereunder;

          (iii) to determine the amount and type of Awards, including any combination thereof, to be
granted to any Eligible Individual;

          (iv) to grant Awards to Eligible Individuals and, in connection therewith, to determine the
terms and conditions, not inconsistent with the terms of this Plan, of any such Award including,
but not limited to, the number of Shares or Stock Units that may be issued or amount of cash that
may be paid pursuant to the Award, the exercise or purchase price of any Share, the circumstances
under which Awards or any Shares or Stock Units relating thereto are issued, retained, become
exercisable or vested, are no longer subject to forfeiture or are terminated, forfeited or expire,
based in each case on such factors as the Administrator shall determine, in its sole discretion;

          (v) to determine the Fair Market Value of the Company Common Stock, in accordance with Section
2(p) of this Plan;

          (vi) to establish, verify the extent of satisfaction of, adjust, reduce or waive any
performance goals or other conditions applicable to the grant, issuance, exercisability, vesting
and/or ability to retain any Award;

          (vii) to approve forms of agreement for use under the Plan;

          (viii) to determine whether and under what circumstances an Award may be settled in cash
instead of Shares;

          (ix) to determine whether, to what extent and under what circumstances Shares and other
amounts payable with respect to an Award under this Plan shall be deferred either automatically or
at the election of the participant (including providing for and determining the amount, if any, of
any deemed earnings on any deferred amount during any deferral period);

          (x) to determine whether and to what extent an adjustment is required under Section 10 of this
Plan;

          (xi) in its discretion, to the extent not inconsistent with Section 17 hereof, upon a Change
in Control, to vest and make exercisable any Award granted hereunder which is not fully vested or
exercisable and to remove any restrictions effective upon the occurrence of a Change in Control or
the termination of an Eligible Individual’s service to the Company.

6

 

          (xii) to interpret and construe this Plan, any rules and regulations under this Plan and the
terms and conditions of any Award granted hereunder, and to make exceptions to any such provisions
in good faith and for the benefit of the Company; and

          (xiii) to make all other determinations deemed necessary or advisable for the administration
of this Plan.

     (b) Effect of Administrator’s Decision. All decisions, determinations and interpretations of
the Administrator shall be final and binding on all Participants.

5. Term of Plan. The Plan shall become effective upon the earlier to occur of its adoption by the
Board of Directors or its approval by the stockholders of the Company in accordance with applicable
state law. It shall continue in effect for a term of ten (10) years unless sooner terminated under
Section 11 of this Plan; provided, however, that the Plan shall remain in effect so long as any
Award remains outstanding and as long as necessary to issue any Awards pursuant to commitments
entered into prior to the expiration of this Plan; provided, further, that no Award intended to
qualify as performance-based compensation within the meaning of Section 162(m) of the Code shall be
payable prior to approval of the Plan’s material terms by the Company’s stockholders.

6. Options.

     (a) General Terms.

          (i) Written Agreement. Each Option shall be set forth in a written option document setting
forth the number and kind of Shares that may be issued upon exercise of the Option, the purchase
price of each Share, the term of the Option, such terms and conditions on the vesting and/or
exercisability of an Option as may be determined by the Administrator, any restrictions on the
transfer of the Option and forfeiture provisions and such further terms and conditions, in each
case not inconsistent with this Plan, as may be determined from time to time by the Administrator.
The written option document need not be signed by the Optionee.

          (ii) Designation. Each Option shall be designated in the written option document as either an
Incentive Stock Option or a Nonstatutory Stock Option. Notwithstanding such designations, to the
extent that an Option does not qualify as an Incentive Stock Option, it shall be treated as a
Nonstatutory Stock Option.

          (iii) Eligibility. To the extent then required by the Code, Incentive Stock Options may be
granted only to Employees.

          (iv) Term of Option. The term of each Option shall be the term stated in the written
agreement evidencing such Option; provided, however, that, to the extent then required by the Code,
in the case of an Incentive Stock Option, the term shall be no more than ten (10) years from the
date of grant thereof or such shorter term as may be provided in the Option Agreement and, in the
case of an Incentive Stock Option granted to an Optionee who, at the time the Option is granted,
owns stock representing more than ten percent (10%) of the voting power of all classes of stock of
the Company or any Parent or Subsidiary, the term of the Option shall

7

 

be five (5) years from the date of grant thereof or such shorter term as may be provided in
the written agreement evidencing such Option.

          (v) Exercise Price. The per share exercise price for the Shares to be issued pursuant to
exercise of an Option shall be such price as is determined by the Board, but shall be subject to
the following:

	 	(A)	 	To the extent then required by the Code, in the
case of an Incentive Stock Option:

	 	(1)	 	granted to an Employee who, at
the time of the grant of such Incentive Stock Option, owns stock
representing more than ten percent (10%) of the voting power of
all classes of stock of the Company or any Parent or Subsidiary,
the per Share exercise price shall be no less than 110% of the
Fair Market Value per Share on the date of grant, and
	 
	 	(2)	 	granted to any Employee, the per
Share exercise price shall be no less than 100% of the Fair
Market Value per Share on the date of grant.

	 	(B)	 	In the case of a Nonstatutory Stock Option
granted to any person, the per Share exercise price may not be less
than the Fair Market Value per Share on the date of grant, provided
however, that Nonstatutory Stock Options granted after the Company’s
initial public offering of its Common Stock but prior to January 1,
2004 may be made where the per share exercise price is less than the
Fair Market Value per Share on the date of grant if (i) such grants are
made to persons that are then currently not executive officers (as the
term is defined in Rule 3b-7 under the Securities Exchange Act of 1934,
as amended) of the Company and (ii) such grants in the aggregate that
are made having an exercise price that is less than the Fair Market
Value per Share do not exceed (i.e., are exercisable for) 140,000
shares of Common Stock.

          (vi) Payment of Exercise Price. Unless otherwise provided by the Administrator in the stock
option document, the exercise price of an Option may be paid in one or more of the following: (1)
cash, (2) check, (3) other Shares which (x) in the case of Shares acquired upon exercise of an
Option either have been owned by the Optionee for more than six (6) months on the date of surrender
or were not acquired, directly or indirectly, from the Company, and (y) have a Fair Market Value on
the date of surrender equal to the aggregate exercise price of the Shares as to which said Option
shall be exercised, (4) delivery of a properly executed exercise notice together with irrevocable
instructions to a broker registered under the Exchange Act to promptly deliver to the Company the
amount of proceeds required to pay the exercise price, and (5) any combination of the foregoing
methods of payment.

     (b) Exercise of Options or SARs.

8

 

          (i) Procedure for Exercise; Rights as a Stockholder. Any Option or SAR granted hereunder
shall be exercisable at such times and under such conditions as determined by the Administrator,
including performance criteria with respect to the Company and/or the Participant, and as shall be
permissible under the terms of this Plan. An Option or SAR may not be exercised for a fraction of
a Share. An Option or SAR shall be deemed to be exercised when written notice of such exercise has
been given to the Company in accordance with the terms of the Option or SAR by the person entitled
to exercise such Option or SAR and, if an Option is to be exercised, full payment for the Shares
with respect to which the Option is exercised has been received by the Company. Full payment may,
as authorized by the Administrator, consist of any consideration and method of payment allowable
under Section 6(a)(vi) of this Plan. Until the issuance (as evidenced by the appropriate entry on
the books of the Company or of a duly authorized transfer agent of the Company) of the stock
certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a
stockholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the
Option. No adjustment will be made for a dividend or other right for which the record date is
prior to the date the stock certificate is issued, except as provided in Section 10 of this Plan.
Exercise of an Option or SAR in any manner shall result in a decrease in the number of Shares which
thereafter may be available under the Option or SAR by the number of Shares as to which the Option
or SAR is exercised.

          (ii) Termination of Employment. In the event of termination of a Participant’s Continuous
Status as an Employee, status as a Non-Employee Director or consulting relationship with the
Company (as the case may be), such Participant may, but only within ninety (90) days (or such other
period of time as is determined by the Administrator, with such determination in the case of an
Incentive Stock Option and to the extent then required by the Code, being made at the time of grant
of the Option and not exceeding ninety (90) days) after the date of such termination (but in no
event later than the expiration date of the term of such Option or SAR as set forth in the written
document evidencing such Option or SAR), exercise such Option or SAR to the extent that such
Participant was entitled to exercise it at the date of such termination. To the extent that such
Participant was not entitled to exercise the Option or SAR at the date of such termination, or if
such Participant does not exercise such Option or SAR to the extent so entitled within the time
specified herein, the Option or SAR shall terminate.

          (iii) Disability of Optionee. Notwithstanding the provisions of Section 6(b) above, in the
event of termination of a Participant’s Continuous Status as an Employee, status as a Non-Employee
Director or consulting relationship with the Company (as the case may be) as a result of total and
permanent disability (as defined in Section 22(e)(3) of the Code), such Participant may, but only
within twelve (12) months (or such other period of time as is determined by the Administrator, with
such determination in the case of an Incentive Stock Option and to the extent then required by the
Code, being made at the time of grant of the Options and not exceeding twelve (12) months) from the
date of such termination (but in no event later than the expiration date of the term of such Option
or SAR as set forth in the written document evidencing such Option or SAR), exercise the Option or
SAR to the extent otherwise entitled to exercise it at the date of such termination. To the extent
that such Participant was not entitled to exercise the Option or SAR at the date of termination, or
if such Participant does not exercise such Option or SAR to the extent so entitled within the time
specified herein, the Option or SAR shall terminate.

9

 

          (iv) Death of Optionee. In the event of the death of a Participant, the Option or SAR may be
exercised at any time within twelve (12) months following the date of death (but in no event later
than the expiration date of the term of such Option or SAR as set forth in the written document
evidencing such Option or SAR) by the Participant’s estate or by a person who acquired the right to
exercise the Option or SAR by bequest or inheritance, but only to the extent the Participant was
entitled to exercise the Option or SAR at the date of death or to the extent that the Administrator
accelerates the vesting of such Award upon the Participant’s death. To the extent that such
Participant was not entitled to exercise the Option or SAR at the date of death, or if such
Participant’s estate or any person who acquired the right to exercise the Option or SAR by bequest
or inheritance does not exercise such Option or SAR to the extent so entitled within the time
specified herein, the Option or SAR shall terminate.

          (v) Buyout Provisions. To the extent not inconsistent with Section 17 hereof, the
Administrator may at any time offer to buy out for a payment in cash or Shares, an Option or SAR
previously granted, based on such terms and conditions as the Administrator shall establish and
communicate to the Participant at the time that such offer is made.

          (vi) Payout Provisions. To the extent not inconsistent with Section 17 hereof, at the
discretion of the Company, the payment to a Participant upon exercise of a SAR, may be in cash, in
Shares or Stock Units of equivalent value as determined by the Administrator, or in some
combination thereof, subject to the availability of Shares under the Plan.

     (c) Non-Transferability of Options or SARs. Unless otherwise provided by the Administrator,
no Option or SAR may be sold, pledged, assigned, hypothecated, transferred, or disposed of in any
manner other than by will or by the laws of descent or distribution and may be exercised, during
the lifetime of the Participant, only by the Participant. The terms of the Option or SAR shall be
binding upon the executors, administrators, heirs, successors and assigns of the Participant.

7. Performance Share Awards, Performance Unit Awards, Restricted Stock Awards, Restricted Unit
Awards and Stock Unit Awards.

     (a) Awards. Performance Share Awards, Performance Unit Awards, Restricted Stock Awards,
Restricted Unit Awards, or Stock Unit Awards may be issued by the Administrator to Eligible
Individuals, either alone, in addition to, or in tandem with other Awards granted under the Plan
and/or cash awards made outside of this Plan. Such Awards shall be evidenced by a written document
containing any provisions regarding (i) the number of Shares or Stock Units subject to such Award
or a formula for determining such, (ii) the purchase price of the Shares or Stock Units, if any,
and the means of payment for the Shares or Stock Units, (iii) the performance criteria, if any, and
level of achievement versus these criteria that shall determine the number of Shares or Stock Units
granted, issued, retainable and/or vested, (d) such terms and conditions on the grant, issuance,
vesting and/or forfeiture of the Shares or Stock Units as may be determined from time to time by
the Administrator, (e) restrictions on the transferability of the Shares and Stock Units and (f)
such further terms and conditions in each case not inconsistent with this Plan as may be determined
from time to time by the Administrator.

10

 

     (b) Vesting. The grant, issuance, retention and/or vesting of Shares or Stock Units pursuant
to any Performance Share Awards, Performance Unit Awards, Restricted Stock Awards, Restricted Unit
Awards, or Stock Unit Awards of Incentive Stock shall occur at such time and in such installments
as determined by the Administrator or under criteria established by the Administrator. The
Administrator shall have the right to make the timing of the grant and/or the issuance, ability to
retain and/or vesting of Shares or Stock Units subject to continued employment, passage of time
and/or such performance criteria as deemed appropriate by the Administrator. Notwithstanding
anything to the contrary herein, the performance criteria for any Award that is intended to
satisfy the requirements for “performance-based compensation” under Code Section 162(m) shall be a
measure based on one or more Qualifying Performance Criteria selected by the Administrator and
specified at the time the Award is granted.

     (c) Discretionary Adjustments. Notwithstanding satisfaction of any performance goals, the
number of Shares or Stock Units granted, issued, retainable and/or vested under a Performance Share
Award, Performance Unit Award, Restricted Stock Award, Restricted Unit Award, or Stock Unit Award
on account of either financial performance or personal performance evaluations may be reduced by
the Administrator on the basis of such further considerations as the Administrator shall determine.

8. Incentive Bonus Awards. Each Incentive Bonus Award will confer upon the Employee the
opportunity to earn a future payment tied to the level of achievement with respect to one or more
performance criteria established for a performance period established by the Committee.

     (a) Incentive Bonus Document. Each Incentive Bonus Award shall be evidenced by a document
containing provisions regarding (a) the target and maximum amount payable to the Employee, (b) the
performance criteria and level of achievement versus these criteria that shall determine the amount
of such payment, (c) the term of the performance period as to which performance shall be measured
for determining the amount of any payment, (d) the timing of any payment earned by virtue of
performance, (e) restrictions on the alienation or transfer of the bonus prior to actual payment,
(f) forfeiture provisions and (g) such further terms and conditions, in each case not inconsistent
with this Plan as may be determined from time to time by the Administrator. The maximum amount
payable as an bonus may be a multiple of the target amount payable, but the maximum amount payable
pursuant to that portion of an Incentive Bonus Award granted under this Plan for any fiscal year to
any Employee that is intended to satisfy the requirements for “performance-based compensation”
under Section 162(m) of the Code shall not exceed $5,000,000.

     (b) Performance Criteria. The Administrator shall establish the performance criteria and
level of achievement versus these criteria that shall determine the target and maximum amount
payable under an Incentive Bonus Award, which criteria may be based on financial performance and/or
personal performance evaluations. The Administrator may specify the percentage of the target
incentive bonus that is intended to satisfy the requirements for “performance-based compensation”
under Section 162(m) of the Code. Notwithstanding anything to the contrary herein, the performance
criteria for any portion of an Incentive Bonus Award that is intended by the Administrator to
satisfy the requirements for “performance-based compensation” under Section 162(m) of the Code
shall be a measure based on one or more Qualifying Performance Criteria selected by the
Administrator and specified at the time the

11

 

Incentive Bonus Award is granted. The Administrator shall certify the extent to which any
Qualifying Performance Criteria has been satisfied, and the amount payable as a result thereof,
prior to payment of any incentive bonus that is intended to satisfy the requirements for
“performance- based compensation” under Section 162(m) of the Code.

     (c) Timing and Form of Payment. The Administrator shall determine the timing of payment of
any incentive bonus. The Administrator may provide for or, subject to such terms and conditions as
the Administrator may specify, may permit an election for the payment of any incentive bonus to be
deferred to a specified date or event. An incentive bonus may be payable in Shares, Stock Units or
in cash or other property, including any Award permitted under this Plan. Any incentive bonus that
is paid in cash or other property shall not affect the number of Shares otherwise available for
issuance under this Plan.

     (d) Discretionary Adjustments. Notwithstanding satisfaction of any performance goals, the
amount paid under an Incentive Bonus Award on account of either financial performance or personal
performance evaluations may be reduced by the Administrator on the basis of such further
considerations as the Administrator shall determine.

9. Stock Withholding to Satisfy Withholding Tax Obligations. At the discretion of the
Administrator, Participants may satisfy withholding obligations as provided in this paragraph.
When a Participant incurs tax liability in connection with an Award, which tax liability is subject
to tax withholding under applicable tax laws, and the Participant is obligated to pay the Company
an amount required to be withheld under applicable tax laws, the Participant may satisfy the
withholding tax obligation by electing to have the Company withhold from the Shares to be issued,
if any, that number of Shares having a Fair Market Value equal to the amount required to be
withheld. The Fair Market Value of the Shares to be withheld shall be determined on the date that
the amount of tax to be withheld is to be determined (the “Tax Date”).

In the event that the Company elects to make a payment to the Participant in cash upon the exercise
of a SAR, the Participant may satisfy the withholding tax obligation by electing to have the
Company withhold from such payment the amount required to satisfy such withholding tax obligation.

All elections by a Participant to have Shares or cash withheld for this purpose, as the case may
be, shall be made in writing in a form acceptable to the Administrator and shall be subject to the
following restrictions:

          (a) the election must be made on or prior to the applicable Tax Date;

          (b) once made, the election shall be irrevocable as to the particular Shares of the Option,
stock purchase right or SAR, as to which the election is made; and

          (c) all elections shall be subject to the consent or disapproval of the Administrator.

In the event the election to have Shares or cash withheld is made by a Participant and the Tax Date
is deferred under Section 83 of the Code because no election is filed under Section 83(b) of the
Code, the Participant shall receive the full number of Shares or full amount of cash, as the

12

 

case may be, with respect to which the Award is exercised but such Participant shall be
unconditionally obligated to tender back to the Company the proper number of Shares, or the proper
amount of cash, as the case may be, on the Tax Date.

Notwithstanding the foregoing or any provisions of the Plan to the contrary, any broker-assisted
cashless exercise shall comply with the requirements for equity classification of Paragraph 35 of
FASB Statement No. 123(R) and any withholding satisfied through a net-settlement shall be limited
to the minimum statutory withholding requirements.

10. Adjustments Upon Changes in Capitalization or Merger. Subject to any required action by the
stockholders of the Company, the number of Shares or Stock Units covered by each outstanding Award
and the number of Shares which have not yet been issued under this Plan, as well as the purchase
price, if any, of each such outstanding Award, shall be proportionately adjusted for any increase
or decrease in the number of issued Shares resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification or similar transaction involving the Company Common
Stock, or any other increase or decrease in the number of issued Shares effected without receipt of
consideration by the Company; provided, however, that conversion of any convertible securities of
the Company shall not be deemed to have been “effected without receipt of consideration.” Such
adjustment shall be made by the Board, whose determination in that respect shall be final, binding
and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock
of any class, or securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price of shares of
Company Common Stock subject to an Option or SAR. Notwithstanding the foregoing, with respect to
any Award subject to Section 409A, no such adjustment shall be authorized to the extent that such
adjustment would cause the Plan or Award to fail to comply with Section 409A.

In the event of the proposed dissolution or liquidation of the Company, the Board shall notify the
Participant at least fifteen (15) days prior to such proposed action. To the extent it has not
been previously exercised, any Option or SAR will terminate immediately prior to the consummation
of such proposed action and any restrictions on Awards shall expire immediately and that such
Awards shall fully vest prior to the consummation of such proposed action. In the event of a
merger or consolidation of the Company with or into another corporation or the sale of all or
substantially all of the Company’s assets (hereinafter, a “merger”), the Board may authorize
outstanding Options or SARs to be assumed or an equivalent option or stock appreciation right to be
substituted by such successor corporation or a parent or subsidiary of such successor corporation
and may assign any Awards to the successor corporation. In the event that such successor
corporation does not agree to assume the Option or SAR, or to substitute an equivalent option or
stock appreciation right, the Board shall, in lieu of such assumption or substitution, provide for
the Participant to have the right to exercise all Options or SARs previously granted to such
Participant, including Options or SARs which would not otherwise be exercisable. If the Board
makes an Option or SAR fully exercisable in lieu of assumption or substitution in the event of a
merger, the Board shall notify the Participant that the Option or SAR shall be fully exercisable
for a period of fifteen (15) days from the date of such notice, and the Option or SAR will
terminate upon the expiration of such period. For the purposes of this paragraph, the Option or
SAR shall be considered assumed if, following the merger, the Option or SAR, confers the right to
purchase, or receive the appreciation in Fair Market Value, as the case may be, for each

13

 

Share of stock subject to the Option or SAR immediately prior to the merger, the consideration
(whether stock, cash, or other securities or property) received in the merger by holders of Company
Common Stock for each Share held on the effective date of the transaction (and if holders were
offered a choice of consideration, the type of consideration chosen by the holders of a majority of
the outstanding Shares); provided, however, that if such consideration received in the merger was
not solely common stock of the successor corporation or its Parent, the Board may, with the consent
of the successor corporation and the participant, provide for the consideration to be received upon
the exercise of the Option or SAR, for each Share of stock subject to the Option or SAR, to be
solely common stock of the successor corporation or its Parent equal in Fair Market Value to the
per share consideration received by holders of Company Common Stock in the merger or sale of
assets.

11. Amendment and Termination of this Plan.

     (a) Amendment and Termination. The Board may at any time amend, alter, suspend or discontinue
the Plan, but no amendment, alteration, suspension or discontinuation shall be made which would
impair the rights of any Participant under any grant theretofore made, without his or her consent.
In addition, to the extent necessary and desirable to comply with Rule 16b-3 under the Exchange Act
or with Section 422 of the Code (or any other applicable law or regulation, including the
requirements of Nasdaq or an established stock exchange), the Company shall obtain stockholder
approval of any Plan amendment in such a manner and to such a degree as required.

     (b) Effect of Amendment or Termination. Any such amendment or termination of this Plan shall
not affect Awards already granted and such Awards shall remain in full force and effect as if this
Plan had not been amended or terminated, unless mutually agreed otherwise between the Participant
and the Board, which agreement must be in writing and signed by the Participant and the Company.
Notwithstanding the foregoing or any provision of the Plan or an Award to the contrary, the
Administrator may at any time (without the consent of any Participant) modify or amend any or all
of the provisions of the Plan or an Award to the extent necessary to conform the provisions of the
of the Plan or an Award with Section 409A, the regulations issued thereunder or an exception
thereto, regardless of whether such modification or amendment of the Award shall adversely affect
the rights of a Participant.

12. Conditions Upon Issuance of Shares. Shares shall not be issued pursuant to the Plan unless the
issuance and delivery of such Shares shall comply with all relevant provisions of law including,
without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and
regulations promulgated thereunder, and the requirements of Nasdaq or of any stock exchange upon
which the Shares may then be listed.

13. Reservation of Shares. The Company, during the term of this Plan, will at all times reserve
and keep available such number of Shares as shall be sufficient to satisfy the requirements of this
Plan.

The inability of the Company to obtain authority from any regulatory body having jurisdiction,
which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and

14

 

sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure
to issue or sell such Shares as to which such requisite authority shall not have been obtained.

14. Information to Participants. The Company shall provide to each Participant, during the period
for which such Participant has one or more Awards outstanding, copies of all annual reports and
other information which are provided to all stockholders of the Company.

15. No Right to Employment. The Plan shall not confer upon any Participant any right with respect
to continuation of employment or consulting relationship with the Company, nor shall it interfere
in any way with his right or the Company’s right to terminate his employment or consulting
relationship at any time, with or without cause.

16. Governing Law. The validity, constrictions and effect of this Plan, agreements entered into
pursuant to the Plan, and of any rules, regulations, determinations or decisions made by the
Administrator relating to the Plan or such agreements, and the rights of any and all persons having
or claiming to have any interest therein or thereunder, shall be determined exclusively in
accordance with applicable federal laws and the laws of the state of Delaware, without regard to
its conflict of laws principles.

17. Section 409A. Notwithstanding any provision of the Plan or an Award Agreement to the contrary,
if any Award or benefit provided under this Plan is subject to the provisions of Section 409A, the
provisions of the Plan and any applicable Award Agreement shall be administered, interpreted and
construed in a manner necessary to comply with Section 409A or an exception thereto (or disregarded
to the extent such provision cannot be so administered, interpreted or construed). The following
provisions shall apply, as applicable:

          (i) If a Participant is a Specified Employee and a payment subject to Section 409A (and not
excepted therefrom) to the Participant is due upon Separation from Service, such payment shall be
delayed for a period of six (6) months after the date the Participant Separates from Service (or,
if earlier, the death of the Participant). Any payment that would otherwise have been due or
owing during such six-month period will be paid immediately following the end of the six-month
period in the month following the month containing the 6-month anniversary of the date of
termination unless another compliant date is specified in the applicable agreement.

          (ii) For purposes of Section 409A, and to the extent applicable to any Award or benefit under
the Plan, it is intended that distribution events qualify as permissible distribution events for
purposes of Section 409A and shall be interpreted and construed accordingly. With respect to
payments subject to Section 409A, the Company reserves the right to accelerate and/or defer any
payment to the extent permitted and consistent with Section 409A. Whether a Participant has
Separated from Service or employment will be determined based on all of the facts and circumstances
and, to the extent applicable to any Award or benefit, in accordance with the guidance issued under
Section 409A. For this purpose, a Participant will be presumed to have experienced a Separation
from Service when the level of bona fide services performed permanently decreases to a level less
than twenty percent (20%) of the average level of bona fide services performed during the
immediately preceding thirty-six (36) month period or such other applicable period as provided by
Section 409A.

15

 

          (iii) The Board, in its discretion, may specify the conditions under which the payment of all
or any portion of any Award may be deferred until a later date. Deferrals shall be for such
periods or until the occurrence of such events, and upon such terms and conditions, as the Board
shall determine in its discretion, in accordance with the provisions of Section 409A, the
regulations and other binding guidance promulgated thereunder; provided, however, that no deferral
shall be permitted with respect to Options, Stock Appreciation Rights and other stock rights
subject to Section 409A. An election shall be made by filing an election with the Company (on a
form provided by the Company) on or prior to December 31st of the calendar year immediately
preceding the beginning of the calendar year (or other applicable service period) to which such
election relates (or at such other date as may be specified by the Board to the extent consistent
with Section 409A) and shall be irrevocable for such applicable calendar year (or other applicable
service period). To the extent authorized, a Participant who first becomes eligible to participate
in the Plan may file an election (“Initial Election”) at any time prior to the 30 day period
following the date on which the Participant initially becomes eligible to participate in the Plan
(or at such other date as may be specified by the Board to the extent consistent with Section
409A). Any such Initial Election shall only apply to compensation earned and payable for services
rendered after the effective date of the Election.

          (iv) The grant of Non-Qualified Stock Options, Stock Appreciation Rights and other stock
rights subject to Section 409A shall be granted under terms and conditions consistent with Treas.
Reg. § 1.409A-1(b)(5) such that any such Award does not constitute a deferral of compensation under
Section 409A. Accordingly, any such Award may be granted to Employees and Eligible Directors of
the Company and its subsidiaries and affiliates in which the Company has a controlling interest.
In determining whether the Company has a controlling interest, the rules of Treas. Reg. §
1.414(c)-2(b)(2)(i) shall apply; provided that the language “at least 50 percent” shall be used
instead of “at least 80 percent” in each place it appears; provided, further, where legitimate
business reasons exist (within the meaning of Treas. Reg. § 1.409A-1(b)(5)(iii)(E)(i)), the
language “at least 20 percent” shall be used instead of “at least 80 percent” in each place it
appears. The rules of Treas. Reg. §§ 1.414(c)-3 and 1.414(c)-4 shall apply for purposes of
determining ownership interests.

          (v) Notwithstanding anything to the contrary contained herein and with respect to Options that
were earned and vested under the Plan prior to January 1, 2005 (as determined under Section 409A,
“Grandfather Options”), such Grandfathered Options are intended to be exempt from Section 409A and
shall be administered and interpreted in a manner intended to ensure that any such Grandfathered
Option remains exempt from Section 409A. No amendments or other modifications shall be made to
such Grandfathered Options except as specifically set forth in a separate writing thereto, and no
amendment or modification to the Plan shall be interpreted or construed in a manner that would
cause a material modification (within the meaning of Section 409A, including Treas. Reg. §
1.409A-6(a)(4)) to any such Grandfathered Options.

          (vi) In no event shall any member of the Board, the Committee or the Company (or its employees,
officers or directors) have any liability to any Participant (or any other Person) due to the
failure of an Award to satisfy the requirements of Section 409A.

16

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