Document:

EX-4.3 Third Lien Credit Agreement

 

EXHIBIT 4.3

EXECUTION COPY

THIRD LIEN CREDIT
AGREEMENT

dated as of

April 8, 2005

among

THE GOODYEAR TIRE & RUBBER COMPANY,

as Borrower,

The SUBSIDIARY GUARANTORS Party Hereto,

The LENDERS Party Hereto,

and

JPMORGAN CHASE BANK, N.A.

as Administrative Agent

	 	 	 
	J.P. MORGAN SECURITIES INC.,
	 	DEUTSCHE BANK SECURITIES INC.,
	as Joint Lead Arranger
	 	as Joint Lead Arranger
	and Joint Bookrunner
	 	and Joint Bookrunner

[CS&M 6701-315]

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	Definitions
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01. Defined Terms

	 	 	1	 
	SECTION 1.02. Terms Generally

	 	 	43	 
	SECTION 1.03. Accounting Terms; GAAP

	 	 	43	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	The Credits
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01. Commitments

	 	 	43	 
	SECTION 2.02. Loans and Borrowings

	 	 	43	 
	SECTION 2.03. Borrowing Procedure

	 	 	44	 
	SECTION 2.04. Funding of Borrowings

	 	 	45	 
	SECTION 2.05. Interest Elections

	 	 	45	 
	SECTION 2.06. Repayment of Loans; Evidence of Debt

	 	 	46	 
	SECTION 2.07. Prepayment of Loans

	 	 	47	 
	SECTION 2.08. Fees

	 	 	48	 
	SECTION 2.09. Interest

	 	 	48	 
	SECTION 2.10. Alternate Rate of Interest

	 	 	49	 
	SECTION 2.11. Increased Costs

	 	 	49	 
	SECTION 2.12. Break Funding Payments

	 	 	50	 
	SECTION 2.13. Taxes

	 	 	51	 
	SECTION 2.14. Payments Generally; Pro Rata Treatment; Sharing of Setoffs

	 	 	52	 
	SECTION 2.15. Mitigation Obligations; Replacement of Lenders

	 	 	54	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	Representations and Warranties
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01. Organization; Powers

	 	 	54	 
	SECTION 3.02. Authorization; Enforceability

	 	 	55	 
	SECTION 3.03. Governmental Approvals; No Conflicts

	 	 	55	 
	SECTION 3.04. Financial Statements; No Material Adverse Change

	 	 	55	 
	SECTION 3.05. Litigation and Environmental Matters

	 	 	56	 
	SECTION 3.06. Compliance with Laws and Agreements

	 	 	56	 
	SECTION 3.07. Investment and Holding Company Status

	 	 	56	 

 

 

	 	 	 	 	 
	 	 	Page
	SECTION 3.08. ERISA and Canadian Pension Plans

	 	 	56	 
	SECTION 3.09. Disclosure

	 	 	57	 
	SECTION 3.10. Security Interests

	 	 	57	 
	SECTION 3.11. Use of Proceeds

	 	 	59	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	Conditions
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01. Effective Date 
	 	 	59	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	Covenants
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.01. Payment of Loans

	 	 	62	 
	SECTION 5.02. SEC Reports

	 	 	62	 
	SECTION 5.03. Limitation on Indebtedness

	 	 	62	 
	SECTION 5.04. Limitation on Restricted Payments

	 	 	66	 
	SECTION 5.05. Limitation on Restrictions on Distributions from Restricted Subsidiaries

	 	 	69	 
	SECTION 5.06. Limitation on Sales of Assets and Subsidiary Stock

	 	 	71	 
	SECTION 5.07. Limitation on Transactions with Affiliates

	 	 	75	 
	SECTION 5.08. Change of Control

	 	 	76	 
	SECTION 5.09. Limitation on Liens

	 	 	77	 
	SECTION 5.10. Limitation on Sale/Leaseback Transactions

	 	 	78	 
	SECTION 5.11. Future Subsidiary Guarantors

	 	 	78	 
	SECTION 5.12. Suspension of Certain Covenants

	 	 	79	 
	SECTION 5.13. Compliance Certificate

	 	 	80	 
	SECTION 5.14. Further Instruments and Acts

	 	 	81	 
	SECTION 5.15. Guarantees and Collateral

	 	 	81	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	Successor Borrower
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.01. When Borrower May Merge or Transfer Assets

	 	 	83	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	 
	 	 	 	 
	Defaults and Remedies
	 	 	 	 
	 
	 	 	 	 
	SECTION 7.01. Events of Default

	 	 	84	 

ii

 

	 	 	 	 	 
	 	 	Page
	ARTICLE VIII
	 	 	 	 
	 
	 	 	 	 
	Subsidiary Guarantees
	 	 	 	 
	 
	 	 	 	 
	SECTION 8.01. Guarantees

	 	 	87	 
	SECTION 8.02. Limitation on Liability

	 	 	88	 
	SECTION 8.03. Successors and Assigns

	 	 	89	 
	SECTION 8.04. No Waiver

	 	 	89	 
	SECTION 8.05. Modification

	 	 	89	 
	SECTION 8.06. Release of Subsidiary Guarantor

	 	 	89	 
	SECTION 8.07. Contribution

	 	 	90	 
	 
	 	 	 	 
	ARTICLE IX
	 	 	 	 
	 
	 	 	 	 
	The Administrative Agent
	 	 	 	 
	 
	 	 	 	 
	ARTICLE X
	 	 	 	 
	 
	 	 	 	 
	Miscellaneous
	 	 	 	 
	 
	 	 	 	 
	SECTION 10.01. Notices

	 	 	93	 
	SECTION 10.02. Waivers; Amendments

	 	 	94	 
	SECTION 10.03. Expenses; Indemnity; Damage Waiver

	 	 	95	 
	SECTION 10.04. Successors and Assigns

	 	 	96	 
	SECTION 10.05. Survival

	 	 	100	 
	SECTION 10.06. Counterparts; Integration; Effectiveness

	 	 	100	 
	SECTION 10.07. Severability

	 	 	100	 
	SECTION 10.08. Right of Setoff

	 	 	101	 
	SECTION 10.09. Governing Law; Jurisdiction; Consent to Service of Process

	 	 	101	 
	SECTION 10.10. WAIVER OF JURY TRIAL

	 	 	101	 
	SECTION 10.11. Headings

	 	 	102	 
	SECTION 10.12. Confidentiality

	 	 	102	 
	SECTION 10.13. Interest Rate Limitation

	 	 	102	 
	SECTION 10.14. Security Documents

	 	 	103	 
	SECTION 10.15. Lien Subordination and Intercreditor Agreement

	 	 	103	 
	SECTION 10.16. USA Patriot Act Notice

	 	 	103	 
	SECTION 10.17. Release of Collateral

	 	 	104	 

iii

 

SCHEDULES:

	 	 	 	 	 
	Schedule 1.01A

	 	—
	 	Consent Subsidiaries
	Schedule 1.01B

	 	—
	 	Mortgaged Properties
	Schedule 2.01

	 	—
	 	Commitments
	Schedule 3.10 (b)

	 	—
	 	Mortgaged Properties
	Schedule 3.10 (c)

	 	—
	 	Material Intellectual Property
	Schedule 4.01

	 	—
	 	Post-Effective Date Delivery Requirements

EXHIBITS:

	 	 	 	 	 
	Exhibit A

	 	—
	 	Form of Borrowing Request

	Exhibit B

	 	—
	 	Form of Interest Election Request

	Exhibit C

	 	—
	 	Form of Promissory Note

	Exhibit D

	 	—
	 	Form of Assignment and Assumption

	Exhibit E-1

	 	—
	 	Form of Opinion of Borrower’s Outside Counsel

	Exhibit E-2

	 	—
	 	Form of Opinion of Borrower’s General Counsel

	Exhibit F

	 	—
	 	Form of First Lien Guarantee and Collateral Agreement

	Exhibit G

	 	—
	 	Form of Second Lien Guarantee and Collateral Agreement

	Exhibit H

	 	—
	 	Collateral Agreement

	Exhibit I

	 	—
	 	Form of European Guarantee and Collateral Agreement

	Exhibit J

	 	—
	 	Form of Supplement

iv

 

     THIRD LIEN CREDIT AGREEMENT dated as of April 8, 2005 (this
“Agreement”), among THE GOODYEAR TIRE & RUBBER COMPANY; the
SUBSIDIARY GUARANTORS listed on the signature pages hereto; the LENDERS
party hereto and JPMORGAN CHASE BANK, N.A., as Administrative Agent.

          The Borrower has requested that the Lenders extend credit to the Borrower in the form of Loans
in an aggregate principal amount not to exceed $300,000,000. The Lenders are willing to extend
such credit to the Borrower on the terms and subject to the conditions herein set forth. The
proceeds of Borrowings hereunder will be used for working capital and general corporate purposes of
the Borrower and the Subsidiaries.

          Accordingly, the parties hereto agree as follows:

ARTICLE I

Definitions

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

          “ABL Facilities Agreement” means the Amended and Restated Term Loan and Revolving
Credit Agreement dated as of February 19, 2004, as amended, among the Borrower, certain lenders,
JPMCB, as administrative agent, Citicorp USA, Inc., as syndication agent, and Bank of America, N.A.
and CIT Financial Group, as documentation agents.

          “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to
the Alternate Base Rate.

          “Additional Assets” means:

          (a) any property or assets (other than Indebtedness and Capital Stock) to be used by the
Borrower or a Restricted Subsidiary;

          (b) the Capital Stock of a Person that becomes a Restricted Subsidiary as a result of the
acquisition of such Capital Stock by the Borrower or another Restricted Subsidiary; or

          (c) Capital Stock constituting a minority interest in any Person that at such time is a
Restricted Subsidiary;

provided, however, that any such Restricted Subsidiary described in clauses (b) or
(c) above is primarily engaged in a Permitted Business.

 

 

2

          “Additional Excluded Collateral” means (i) the portion of the Borrower’s and the
Grantor Subsidiary Guarantors’ manufacturing facilities that are pledged to secure Bank
Indebtedness on the Effective Date, (ii) any Excluded Securities and (iii) any Consent Assets that
are pledged from time to time to secure Priority Lien Obligations permitted under this Agreement.

          “Additional Foreign Bank Collateral” means all the assets of and rights in Foreign
Subsidiaries subject to Liens securing the European Bank Indebtedness from time to time.

          “Additional Junior Lien Notes” means Junior Lien Notes issued under the Junior Lien
Indenture after the Indenture Closing Date and in compliance with the terms thereof, it being
understood that any Junior Lien Notes issued in exchange for or replacement of any Junior Lien
Notes issued on the Indenture Closing Date shall not be an Additional Junior Lien Note, including
any such Junior Lien Notes issued pursuant to a Registration Rights Agreement (as defined in
Appendix A attached to the Junior Lien Indenture).

          “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal
to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

          “Administrative Agent” means JPMCB, in its capacity as administrative agent for the
Lenders hereunder, and its successors in such capacity.

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

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

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

          “Alternate Base Rate” means, for any day, a rate per annum equal to the greater of (a)
the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day
plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the
Federal Funds Effective Rate shall be effective from and including the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively.

          “Applicable Indebtedness” means:

          (a) in respect of any asset that is the subject of an Asset Disposition at a time when such
asset is included in the Collateral or is an Excluded Security, any
Priority Lien Obligation that, in each case, is secured at such time by such asset on a
Priority Lien basis; or

 

 

3

          (b) in respect of any asset that is the subject of an Asset Disposition at a time when such
asset is not included in the Collateral but is owned, directly or indirectly, by a Foreign
Subsidiary the stock of which is included in the Collateral, (i) any Priority Lien Obligation that,
in each case, is secured by such stock on a Priority Lien basis, (ii) any Indebtedness of such
Foreign Subsidiary or (iii) any Indebtedness of any other Foreign Subsidiary that is a Wholly Owned
Subsidiary; or

          (c) in respect of any other asset, Senior Indebtedness of the Borrower or a Subsidiary
Guarantor or Indebtedness of a Restricted Subsidiary that is not a Subsidiary Guarantor.

          “Applicable Senior Indebtedness” means:

          (a) in respect of any asset that is the subject of an Asset Disposition at a time when such
asset is included in the Collateral, Senior Indebtedness that is secured at such time by such
asset; or

          (b) in respect of any asset that is the subject of an Asset Disposition at a time when such
asset is not included in the Collateral but is owned, directly or indirectly, by a Foreign
Subsidiary the stock of which is included in the Collateral, (i) any Priority Lien Obligation that,
in each case, is secured by such stock on a Priority Lien basis, (ii) any Indebtedness of such
Foreign Subsidiary or (iii) any Indebtedness of any other Foreign Subsidiary that is a Wholly Owned
Subsidiary; or

          (c) in respect of any other asset, Senior Indebtedness of the Borrower or a Subsidiary
Guarantor or Indebtedness of a Restricted Subsidiary that is not a Subsidiary Guarantor.

          “Approved Fund” means (a) with respect to any Lender, a CLO managed by such Lender or
by an Affiliate of such Lender and (b) with respect to any Lender that is a fund which invests in
bank loans and similar extensions of credit, any other fund that invests in bank loans and similar
extensions of credit and is managed by the same investment advisor as such Lender or by an
Affiliate of such investment advisor.

          “Arrangers” means J.P. Morgan Securities Inc., as Joint Lead Arranger and Joint
Bookrunner, and Deutsche Bank Securities Inc., as Joint Lead Arranger and Joint Bookrunner, for the
credit facility established by this Agreement.

          “Asset Disposition” means any sale, lease, transfer or other disposition (or series of
sales, leases, transfers or dispositions that are part of a common plan) by the Borrower or any
Restricted Subsidiary, including any disposition by means of a merger, consolidation, or similar
transaction (each referred to for the purposes of this definition as a “disposition”), of:

          (a) any shares of Capital Stock of a Restricted Subsidiary (other than directors’ qualifying
shares or shares required by applicable law to be held by a Person other than the Borrower or a
Restricted Subsidiary),

 

 

4

          (b) all or substantially all the assets of any division or line of business of the Borrower or
any Restricted Subsidiary,

          (c) any other assets of the Borrower or any Restricted Subsidiary outside of the ordinary
course of business of the Borrower or such Restricted Subsidiary, or

          (d) any other assets of the Borrower or any Restricted Subsidiary that are the subject of a
transaction the Borrower elects to be an Asset Disposition requiring the release of Liens on
Collateral pursuant to Section 10.17(a)(iii)

other than, in the case of clauses (a), (b) and (c) above,

	 	(i)  	a disposition by a Restricted Subsidiary to the Borrower or
by the Borrower or a Restricted Subsidiary to a Restricted Subsidiary,
	 
	 	(ii)  	for purposes of Section 5.06 only, a disposition subject to
Section 5.04,
	 
	 	(iii)  	a disposition of assets with a Fair Market Value of less
than $5,000,000,
	 
	 	(iv)  	a sale of accounts receivable and related assets of the type
specified in the definition of “Qualified Receivables Transaction” to a
Receivables Entity,
	 
	 	(v)  	a transfer of accounts receivable and related assets of the
type specified in the definition of “Qualified Receivables Transaction” (or a
fractional undivided interest therein) by a Receivables Entity in a Qualified
Receivables Transaction, and
	 
	 	(vi)  	a disposition of all or substantially all the Borrower’s
assets (as determined on a Consolidated basis) in accordance with Section
6.01.

          “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section 10.04),
and accepted by the Administrative Agent, in the form of Exhibit D or any other form approved by
the Administrative Agent.

          “Attributable Debt” means, with respect to any Sale/Leaseback Transaction that does
not result in a Capitalized Lease Obligation, the present value (computed in accordance with GAAP)
of the total obligations of the lessee for rental
payments during the remaining term of the lease included in such Sale/Leaseback Transaction
(including any period for which such lease has been extended). In the case of any lease which is
terminable by the lessee upon payment of a penalty, the Attributable Debt
shall be the lesser of
(i) the Attributable Debt determined assuming termination upon the first date such lease may be
terminated (in which case the Attributable Debt

 

 

5

shall also include the amount of the penalty, but
no rent shall be considered as required to be paid under such lease subsequent to the first date
upon which it may be so terminated) and (ii) the Attributable Debt determined assuming no such
termination.

          “Average Life” means, as of the date of determination, with respect to any
Indebtedness or Preferred Stock, the quotient obtained by dividing (a) the sum of the products of
the number of years from the date of determination to the dates of each successive scheduled
principal payment of such Indebtedness or scheduled redemption or similar payment with respect to
such Preferred Stock multiplied by the amount of such payment by (b) the sum of all such payments.

          “Bank Indebtedness” means any and all amounts payable under or in respect of the
Credit Agreements and any Refinancing Indebtedness with respect thereto or with respect to such
Refinancing Indebtedness, as amended from time to time, including principal, premium (if any),
interest (including interest accruing on or after the filing of any petition in bankruptcy or for
reorganization relating to the Borrower whether or not a claim for post-filing interest is allowed
in such proceedings), fees, charges, expenses, reimbursement obligations and all other amounts
payable thereunder or in respect thereof.

          “Bankruptcy Law” has the meaning assigned to such term in Section 7.01.

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

          “Board of Directors” means the board of directors of the Borrower or any committee
thereof duly authorized to act on behalf of the board of directors of the Borrower.

          “Borrower” means The Goodyear Tire & Rubber Company, an Ohio corporation.

          “Borrowing” means Loans of the same Class and Type made, converted or continued on the
same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect.

          “Borrowing Request” means a request by the Borrower for a Borrowing in accordance with
Section 2.03 in substantially the form of Exhibit A hereto.

          “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to
remain closed; provided that, when used in connection with a Eurodollar Loan, the term
“Business Day” shall also exclude any day on which banks are not open for dealings in
dollar deposits in the London interbank market.

          “Canadian Benefit Plans” means all material employee benefit plans of any nature or
kind whatsoever that are not Canadian Pension Plans and are maintained or contributed to by any
Credit Party having employees in Canada.

 

 

6

          “Canadian Pension Plans” means each plan which is a registered pension plan within the
meaning of the Income Tax Act (Canada).

          “Canadian Security Agreements” has the meaning assigned to such term in the Collateral
Agreement.

          “Capitalized Lease Obligations” means an obligation that is required to be classified
and accounted for as a capitalized lease for financial reporting purposes in accordance with GAAP,
and the amount of Indebtedness represented by such obligation shall be the capitalized amount of
such obligation determined in accordance with GAAP.

          “Capital Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
equity of such Person, including any Preferred Stock, but excluding any debt securities convertible
into such equity.

          “Change of Control” means the occurrence of any of the following events:

          (a) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act)
becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except
that for purposes of this clause (a) such person shall be deemed to have “beneficial ownership” of
all shares that any such person has the right to acquire, whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of more than 50% of the
total voting power of the Voting Stock of the Borrower;

          (b) during any period of two consecutive years, individuals who at the beginning of such
period constituted the board of directors of the Borrower (together with any new directors whose
election by such board of directors of the Borrower or whose nomination for election by the
shareholders of the Borrower was approved by a vote of a majority of the directors of the Borrower
then still in office who were either directors at the beginning of such period or whose election or
nomination for election was previously so approved) cease for any reason to constitute a majority
of the board of directors of the Borrower then in office;

          (c) the adoption of a plan relating to the liquidation or dissolution of the Borrower; or

          (d) the merger or consolidation of the Borrower with or into another Person or the merger of
another Person with or into the Borrower, or the sale of all or substantially all the assets of the
Borrower (as determined on a Consolidated basis) to another Person, and, in the case of any such
merger or consolidation, the securities of the Borrower that are outstanding immediately prior to
such transaction and which represent 100% of the aggregate voting power of the Voting Stock of the
Borrower are changed into or exchanged for cash, securities or property, unless pursuant to such
transaction such securities are changed into or exchanged for, in addition to any other
consideration, securities of the surviving Person or transferee that represent immediately after
such

 

 

7

transaction, at least a majority of the aggregate voting power of the Voting Stock of the
surviving Person or transferee.

          “Change in Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender (or, for purposes of Section 2.11(b), by any lending office of such Lender
or by such Lender’s holding company, if any) with any request, guideline or directive (whether or
not having the force of law) of any Governmental Authority made or issued after the date of this
Agreement.

          “CLO” means any entity (whether a corporation, partnership, trust or otherwise) that
is engaged in making, purchasing, holding or otherwise investing in bank loans and similar
extensions of credit in the ordinary course and is administered or managed by a Lender or an
Affiliate of such Lender.

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

          “Collateral” means all the assets and rights that secure any of the Obligations
pursuant to the Security Documents.

          “Collateral Agent” means Wilmington Trust Company, in its capacity as collateral agent
for the Lenders under the Collateral Agreement and the other Security Documents.

          “Collateral Agreement” means the Collateral Agreement dated as of March 12, 2004,
among the Borrower, the Subsidiaries of the Borrower identified therein and Wilmington Trust
Company, as collateral agent, attached as Exhibit H hereto.

          “Collateral Agreement Designation Notice” means a notice delivered by the Borrower
under Section 11.01 of the Collateral Agreement designating the Obligations under this Agreement as
“Designated Pari Passu Obligations” under the Collateral Agreement in accordance with the terms
thereof.

          “Commitment” means, with respect to each Lender, the commitment of such Lender to make
Loans on the Effective Date, expressed as an amount representing
the maximum permitted aggregate amount of the Loans to be made by such Lender. The amount of
each Lender’s Commitment is set forth on Schedule 2.01. The aggregate amount of the Lenders’
Commitments is $300,000,000.

          “Consent Asset” means any asset or right of the Borrower or a Grantor Subsidiary
Guarantor the creation of a security interest in which would be prohibited by or not be effective
under applicable law or would violate or result in a default under any agreement or instrument in
effect on the Effective Date (or in the case of any future Grantor Subsidiary Guarantor on the date
it becomes a Grantor Subsidiary Guarantor) between the Borrower or such Grantor Subsidiary
Guarantor, as the case may be, and any Person other than (a) the Borrower, (b) any Wholly Owned Subsidiary or (c) any

 

 

8

Subsidiary that is not a Wholly Owned Subsidiary unless the waiver of such
default or violation would require the consent of any Person other than the Borrower or another
Subsidiary; provided, however, that no asset or right shall be a Consent Asset to the
extent that Section 9-406, 9-407, 9-408 or 9-409 of the Uniform Commercial Code as in effect in the
applicable jurisdiction, or any other law of the applicable jurisdiction, shall permit (and excuse
any default or violation resulting from) the creating of a security interest in such asset or right
notwithstanding the provision of such agreement or instrument prohibiting the creation of a
security interest therein or shall render such provision unenforceable.

          “Consent Subsidiary” means any Subsidiary in respect of which (a) the consent of any
Person other than the Borrower or any Wholly Owned Subsidiary is required by applicable law or the
terms of any organizational document of such Subsidiary or other agreement of such Subsidiary or
any Affiliate of such Subsidiary in order for such Subsidiary to Guarantee the Obligations, pledge
its assets to secure its Guarantee of the Obligations and perform its obligations under any
supplemental agreement and the Security Documents, or in order for Capital Stock of such Subsidiary
to be pledged under the Security Documents, as the case may be, and (b) the Borrower endeavored in
good faith to obtain such consents and such consents shall not have been obtained;
provided, however, that any Subsidiary constituting a “Consent Subsidiary” under
the First Lien Agreement on the Effective Date shall be a Consent Subsidiary for so long as the
assets or Capital Stock of such Subsidiary are not pledged to secure any First Lien Bank
Indebtedness or Second Lien Bank Indebtedness. Notwithstanding the foregoing, no Subsidiary shall
be a Consent Subsidiary at any time that it is a guarantor of, or has provided any collateral to
secure, Indebtedness for borrowed money of the Borrower, and any Consent Subsidiary that at any
time ceases to meet the test set forth in clause (a) shall cease to be a Consent Subsidiary.

          “Consolidated Coverage Ratio” as of any date of determination means the ratio of (a)
the aggregate amount of EBITDA for the period of the most recent four consecutive fiscal quarters
ending prior to the date of such determination for which financial statements have been filed with
the SEC to (b) Consolidated Interest Expense for such four fiscal quarters; provided,
however, that (i) if the Borrower or any Restricted Subsidiary has Incurred any
Indebtedness since the beginning of such period that remains
outstanding on such date of determination or if the transaction giving rise to the need to
calculate the Consolidated Coverage Ratio is an Incurrence of Indebtedness, EBITDA and Consolidated
Interest Expense for such period shall be calculated after giving effect on a pro forma basis to
such Indebtedness as if such Indebtedness had been Incurred on the first day of such period and the
discharge of any other Indebtedness repaid, repurchased, defeased or otherwise discharged with the
proceeds of such new Indebtedness as if such discharge had occurred on the first day of such
period, (ii) if the Borrower or any Restricted Subsidiary has repaid, repurchased, defeased or
otherwise discharged any Indebtedness since the beginning of such period or if any Indebtedness is
to be repaid, repurchased, defeased or otherwise discharged (in each case other than Indebtedness
Incurred under any revolving credit facility unless such Indebtedness has been permanently repaid
and has not been replaced) on the date of the transaction giving rise to the need to calculate the
Consolidated Coverage Ratio, EBITDA and Consolidated

 

 

9

Interest Expense for such period shall be
calculated on a pro forma basis as if such discharge had occurred on the first day of such period
and as if the Borrower or such Restricted Subsidiary had not earned the interest income actually
earned during such period in respect of cash or Temporary Cash Investments used to repay,
repurchase, defease or otherwise discharge such Indebtedness, (iii) if since the beginning of such
period the Borrower or any Restricted Subsidiary shall have made any Asset Disposition, the EBITDA
for such period shall be reduced by an amount equal to the EBITDA (if positive) directly
attributable to the assets that are the subject of such Asset Disposition for such period or
increased by an amount equal to the EBITDA (if negative) directly attributable thereto for such
period and Consolidated Interest Expense for such period shall be reduced by an amount equal to the
Consolidated Interest Expense directly attributable to any Indebtedness of the Borrower or any
Restricted Subsidiary repaid, repurchased, defeased or otherwise discharged with respect to the
Borrower and its Restricted Subsidiaries in connection with such Asset Disposition for such period
(or, if the Capital Stock of any Restricted Subsidiary is sold, the Consolidated Interest Expense
for such period directly attributable to the Indebtedness of such Restricted Subsidiary to the
extent the Borrower and its continuing Restricted Subsidiaries are no longer liable for such
Indebtedness after such sale), (iv) if since the beginning of such period the Borrower or any
Restricted Subsidiary (by merger or otherwise) shall have made an Investment in any Restricted
Subsidiary (or any Person that becomes a Restricted Subsidiary) or an acquisition of assets,
including any acquisition of assets occurring in connection with a transaction causing a
calculation to be made hereunder, which constitutes all or substantially all of an operating unit,
division or line of a business, EBITDA and Consolidated Interest Expense for such period shall be
calculated after giving pro forma effect thereto (including the Incurrence of any Indebtedness) as
if such Investment or acquisition occurred on the first day of such period, and (v) if since the
beginning of such period any Person that subsequently became a Restricted Subsidiary or was merged
with or into the Borrower or any Restricted Subsidiary since the beginning of such period shall
have made any Asset Disposition or any Investment or acquisition of assets that would have required
an adjustment pursuant to clause (iii) or (iv) above if made by the Borrower or a Restricted
Subsidiary during such period, EBITDA and Consolidated Interest Expense for such period shall be
calculated after giving pro forma effect thereto
as if such Asset Disposition, Investment or acquisition of assets occurred on the first day of
such period.

          For purposes of this definition, whenever pro forma effect is to be given to an acquisition of
assets, Asset Disposition or other Investment, the amount of income, EBITDA or earnings relating
thereto and the amount of Consolidated Interest Expense associated with any Indebtedness Incurred
in connection therewith, the pro forma calculations shall be determined in good faith by a
responsible Financial Officer of the Borrower and shall comply with the requirements of Rule 11-02
of Regulation S-X, as it may be amended or replaced from time to time, promulgated by the SEC.

          If any Indebtedness bears a floating rate of interest and is being given pro forma effect, the
interest expense on such Indebtedness shall be calculated as if the rate in effect on the date of
determination had been the applicable rate for the entire period (taking into account any Interest
Rate Agreement applicable to such Indebtedness if such

 

 

10

Interest Rate Agreement has a remaining term
as at the date of determination in excess of 12 months). If any Indebtedness is Incurred or repaid
under a revolving credit facility and is being given pro forma effect, the interest on such
Indebtedness shall be calculated based on the average daily balance of such Indebtedness for the
four fiscal quarters subject to the pro forma calculation.

          “Consolidated Interest Expense” means, for any period, the total interest expense of
the Borrower and its Consolidated Restricted Subsidiaries, plus, to the extent Incurred by
the Borrower and its Consolidated Restricted Subsidiaries in such period but not included in such
interest expense, without duplication, (i) interest expense attributable to Capitalized Lease
Obligations and the interest expense attributable to leases constituting part of a Sale/Leaseback
Transaction that does not result in a Capitalized Lease Obligation, (ii) amortization of debt
discount and debt issuance costs, (iii) capitalized interest, (iv) noncash interest expense, (v)
commissions, discounts and other fees and charges attributable to letters of credit and bankers’
acceptance financing, (vi) interest accruing on any Indebtedness of any other Person to the extent
such Indebtedness is Guaranteed by (or secured by the assets of) the Borrower or any Restricted
Subsidiary and such Indebtedness is in default under its terms or any payment is actually made in
respect of such Guarantee, (vii) net payments made pursuant to Hedging Obligations (including
amortization of fees), (viii) dividends paid in cash or Disqualified Stock in respect of (A) all
Preferred Stock of Restricted Subsidiaries and (B) all Disqualified Stock of the Borrower, in each
case held by Persons other than the Borrower or a Restricted Subsidiary, (ix) interest Incurred in
connection with investments in discontinued operations, and (x) the cash contributions to any
employee stock ownership plan or similar trust to the extent such contributions are used by such
plan or trust to pay interest or fees to any Person (other than the Borrower) in connection with
Indebtedness Incurred by such plan or trust, and minus, to the extent included in such
total interest expense, (x) any breakage costs of Hedging Obligations terminated in connection with
the borrowing of the Loans on the Effective Date and the application of the net proceeds therefrom
and (y) the amortization during such period of capitalized financing costs;
provided, however, that for any financing consummated after the Indenture
Closing Date, the aggregate amount of amortization relating to any such capitalized financing costs
deducted in calculating Consolidated Interest Expense shall not exceed 5% of the aggregate amount
of the financing giving rise to such capitalized financing costs.

          Notwithstanding the foregoing, for the purposes of the definition of “Consolidated Secured
Debt Ratio,” “Consolidated Interest Expense” means, for any period, the total Consolidated interest
expense of the Borrower for such period determined in accordance with GAAP.

          “Consolidated Net Income” means, for any period, the net income of the Borrower and
its Consolidated Subsidiaries for such period; provided, however, that there shall
not be included in such Consolidated Net Income (a) any net income of any Person (other than the
Borrower) if such Person is not a Restricted Subsidiary, except that (i) subject to the limitations
contained in clause (d) below, the Borrower’s equity in the net income of any such Person for such
period shall be included in such Consolidated Net Income up to the aggregate amount of cash
actually distributed by such Person during

 

 

11

such period to the Borrower or a Restricted Subsidiary
as a dividend or other distribution (subject, in the case of a dividend or other distribution made
to a Restricted Subsidiary, to the limitations contained in clause (c) below) and (ii) the
Borrower’s equity in a net loss of any such Person for such period shall be included in determining
such Consolidated Net Income to the extent such loss has been funded with cash from the Borrower or
a Restricted Subsidiary, (b) any net income (or loss) of any Person acquired by the Borrower or a
Subsidiary in a pooling of interests transaction for any period prior to the date of such
acquisition, (c) any net income of any Restricted Subsidiary if such Restricted Subsidiary is
subject to restrictions on the payment of dividends or the making of distributions by such
Restricted Subsidiary, directly or indirectly, to the Borrower (but, in the case of any Foreign
Subsidiary, only to the extent cash equal to such net income (or a portion thereof) for such period
is not readily procurable by the Borrower from such Foreign Subsidiary (with the amount of cash
readily procurable from such Foreign Subsidiary being determined in good faith by a Financial
Officer of the Borrower) pursuant to intercompany loans, repurchases of Capital Stock or
otherwise), except that (i) subject to the limitations contained in clause (d) below, the
Borrower’s equity in the net income of any such Restricted Subsidiary for such period shall be
included in such Consolidated Net Income up to the aggregate amount of cash actually distributed by
such Restricted Subsidiary during such period to the Borrower or another Restricted Subsidiary as a
dividend or other distribution (subject, in the case of a dividend or other distribution made to
another Restricted Subsidiary, to the limitation contained in this clause) and (ii) the net loss of
any such Restricted Subsidiary for such period shall not be excluded in determining such
Consolidated Net Income, (d) any gain (or loss) realized upon the sale or other disposition of any
asset of the Borrower or its Consolidated Subsidiaries (including pursuant to any Sale/Leaseback
Transaction) that is not sold or otherwise disposed of in the ordinary course of business and any
gain (or loss) realized upon the sale or other disposition of any Capital Stock of any Person, (e)
any extraordinary gains or losses and (f) the cumulative effect of a change in accounting
principles. Notwithstanding the foregoing, for the purpose of Section 5.04 only, there shall
be excluded from Consolidated Net Income any dividends, repayments of loans or advances or other
transfers of assets from Unrestricted Subsidiaries to the Borrower or a Restricted Subsidiary to
the extent such dividends, repayments or transfers increase the amount of Restricted Payments
permitted under Section 5.04(a)(iii)(D).

          “Consolidated Secured Debt Ratio” as of any date of determination means, the ratio of
(a) the sum of, without duplication (i) total Consolidated Indebtedness of the Borrower that is
secured by Priority Liens and Pari Passu Liens and (ii) total Indebtedness for borrowed money of
the Foreign Subsidiaries (including the European Bank Indebtedness), in each case, as of the end of
the most recent fiscal quarter for which financial statements have been filed with the SEC, to (b)
the aggregate amount of EBITDA for the then most recent four fiscal quarters for which financial
statements have been filed with the SEC, in each case with such pro forma adjustments to
Consolidated Indebtedness and EBITDA as are appropriate and consistent with the pro forma
adjustment provisions set forth in the definition of Consolidated Coverage Ratio.

 

 

12

          “Consolidated Subsidiary” means, at any date, each Subsidiary the accounts of which
would be consolidated with those of the Borrower in the Borrower’s consolidated financial
statements in accordance with GAAP.

          “Consolidation” means the consolidation of (a) in the case of the Borrower, the
accounts of each of the Restricted Subsidiaries with those of the Borrower and (b) in the case of a
Restricted Subsidiary, the accounts of each subsidiary of such Restricted Subsidiary that is a
Restricted Subsidiary with those of such Restricted Subsidiary, in each case in accordance with
GAAP consistently applied; provided, however, that “Consolidation” will not include
consolidation of the accounts of any Unrestricted Subsidiary, but the interest of the Borrower or
any Restricted Subsidiary in an Unrestricted Subsidiary will be accounted for as an investment.
The term “Consolidated” has a correlative meaning.

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

          “Credit Agreements” means the First Lien Agreement, the Second Lien Agreement and the
European Facilities Agreement, each as amended, restated, supplemented, waived, replaced (whether
or not upon termination, and whether with the original lenders or otherwise), refinanced,
restructured or otherwise modified from time to time (except to the extent that any such amendment,
restatement, supplement, waiver, replacement, refinancing, restructuring or other modification
thereto would be prohibited by the terms of this Agreement, unless otherwise agreed to by the
Lenders holding at least a majority in aggregate principal amount of the Loans at the time
outstanding).

          “Credit Documents” means this Agreement, any promissory notes delivered pursuant to
Section 2.06(e), the Security Documents, the Lien Subordination and Intercreditor Agreement and the
LSIA Designation Notice.

          “Credit Facilities Agreements” means this Agreement, the First Lien Agreement, the
Second Lien Agreement and the European Facilities Agreement.

          “Credit Facilities Documents” means the Credit Facilities Agreements, the Collateral
Agreement, the First Lien Guarantee and Collateral Agreement, the Second Lien Guarantee and
Collateral Agreement, the European Guarantee and Collateral Agreement and the other Security
Documents (as such term is defined in any Credit Facilities Agreement).

          “Credit Party” means the Borrower, each Subsidiary Guarantor and each Grantor.

          “Currency Agreement” means with respect to any Person any foreign exchange contract,
currency swap agreements or other similar agreement or arrangement to which such Person is a party
or of which it is a beneficiary.

 

 

13

          “Custodian” has the meaning assigned to such term in Section 7.01.

          “Default” means any event or condition which constitutes an Event of Default or which
upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

          “Designated LC Cash Collateralizations” means cash collateral provided in respect of
letters of credit issued under the First Lien Agreement; provided, however, that a
corresponding commitment amount of such facility is permanently reduced, except that no such
permanent reduction shall be required to the extent such reduction would reduce the aggregate
amount of commitment available under such facility below $250,000,000.

          “Designated Noncash Consideration” means noncash consideration received by the
Borrower or one of its Restricted Subsidiaries in connection with an Asset Disposition that is
designated by the Borrower as Designated Noncash Consideration, less the amount of cash or cash
equivalents received in connection with a subsequent sale of such Designated Noncash Consideration,
which cash and cash equivalents shall be considered Net Available Cash received as of such date and
shall be applied pursuant to Section 5.06.

          “Disclosure Documents” means (a) the Information Memorandum, (b) reports of the
Borrower on Forms 10-K, 10-Q and 8-K, and any amendments thereto, that shall have been filed with
the SEC on or prior to March 24, 2005, or (ii) filed with the SEC after such date and prior to the
Effective Date and delivered to the Administrative Agent prior to the date hereof.

          “Disqualified Stock” means, with respect to any Person, any Capital Stock which by its
terms (or by the terms of any security into which it is convertible or for which it is exchangeable
or exercisable) or upon the happening of any event:

          (a) matures or is mandatorily redeemable pursuant to a sinking fund obligation or otherwise,

          (b) is convertible or exchangeable for Indebtedness or Disqualified Stock (excluding Capital
Stock convertible or exchangeable solely at the option of the Borrower or a Restricted Subsidiary;
provided, however, that any such conversion or exchange shall be deemed an
Incurrence of Indebtedness or Disqualified Stock, as applicable) or

          (c) is redeemable at the option of the holder thereof, in whole or in part,

in the case of each of clauses (a), (b) and (c), on or prior to 180 days after the Maturity Date or
the “Stated Maturity Date” of the Junior Lien Notes or any other securities issued under the Junior
Lien Indenture; provided, however, that any Capital Stock that would not constitute
Disqualified Stock but for provisions thereof giving holders thereof the right to require such
Person to repurchase or redeem such Capital Stock upon the

 

 

14

occurrence of an “asset sale” or “change
of control” occurring prior to the first anniversary of the Maturity Date or the “Stated Maturity
Date” of the Junior Lien Notes or any other securities issued under the Junior Lien Indenture shall
not constitute Disqualified Stock if the “asset sale” or “change of control” provisions applicable
to such Capital Stock are not more favorable in any material respect to the holders of such Capital
Stock than the provisions of Section 5.06 and Section 5.08; provided further,
however, that if such Capital Stock is issued to any employee or to any plan for the benefit of
employees of the Borrower or its Subsidiaries or by any such plan to such employees, such Capital
Stock shall not constitute Disqualified Stock solely because it may be required to be repurchased
by the Borrower in order to satisfy applicable statutory or regulatory obligations or as a result
of such employee’s termination, death or disability.

          The amount of any Disqualified Stock that does not have a fixed redemption, repayment or
repurchase price will be calculated in accordance with the terms of such Disqualified Stock as if
such Disqualified Stock were redeemed, repaid or repurchased on any date on which the amount of
such Disqualified Stock is to be determined pursuant to this Agreement; provided,
however, that if such Disqualified Stock could not be required to be redeemed, repaid or
repurchased at the time of such determination, the redemption, repayment or repurchase price will
be the book value of such Disqualified Stock as reflected in the most recent financial statements
of such Person.

          “dollars” or “$” refers to lawful money of the United States of America.

          “Dollar Equivalent” means with respect to any monetary amount in a currency other than
dollars, at any time for determination thereof, the amount in dollars obtained by converting such
foreign currency involved in such computation into dollars at the spot rate for the purchase of
dollars with the applicable foreign currency as published in The Wall Street Journal in the
“Exchange Rates” column under the heading “Currency Trading” on the date two Business Days prior to
such determination.

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

          “EBITDA” for any period means the Consolidated Net Income for such period, plus,
without duplication, the following to the extent deducted in calculating such Consolidated Net
Income: (i) income tax expense of the Borrower and its Consolidated Restricted Subsidiaries, (ii)
Consolidated Interest Expense, (iii) depreciation expense of the Borrower and its Consolidated
Restricted Subsidiaries, (iv) amortization expense of the Borrower and its Consolidated Restricted
Subsidiaries (excluding amortization expense attributable to a prepaid cash item that was paid in a
prior period), (v) all other noncash charges of the Borrower and its Consolidated Restricted
Subsidiaries (excluding any such noncash charge to the extent it represents an accrual of or
reserve for cash expenditures in any future period) less all noncash items of income of the
Borrower and its Restricted Subsidiaries, in each case for such period (other than normal accruals
in the ordinary course of business) and (vi) cash and non-cash charges reflected on the

 

 

15

Consolidated financial statements of the Borrower and its Consolidated Restricted Subsidiaries for
any period ending prior to January 1, 2004, related to (A) anticipated liabilities relating to the
pending Entran II claims described in the Borrower’s Quarterly Report on Form 10-Q for the
quarterly period ended September 30, 2003, filed with the SEC on November 19, 2003 and (B)
rationalization actions designed to reduce capacity, eliminate redundancies and reduce costs.
Notwithstanding the foregoing, the provision for taxes based on the income or profits of, and the
depreciation and amortization and noncash charges of, a Restricted Subsidiary of the Borrower shall
be added to Consolidated Net Income to compute EBITDA only to the extent (and in the same
proportion) that the net income of such Restricted Subsidiary was included in calculating
Consolidated Net Income and only if (x) a corresponding amount would be permitted at the date of
determination to be dividended to the Borrower by such Restricted Subsidiary without prior approval
(that has not been obtained), pursuant to the terms of its charter and all agreements, instruments,
judgments, decrees, orders, statutes, rules and governmental regulations applicable to such
Restricted Subsidiary or its shareholders or (y) in the case of any Foreign Subsidiary, a
corresponding amount of cash is readily procurable by the Borrower from such Foreign Subsidiary (as
determined in good faith by a Financial Officer of the Borrower) pursuant to intercompany loans,
repurchases of Capital Stock or otherwise, provided that to the extent cash of such Foreign
Subsidiary provided the basis for including the net income of such Foreign Subsidiary in
Consolidated Net Income pursuant to clause (c) of the definition of “Consolidated Net Income,” such
cash shall not be taken into account for the purposes of determining readily procurable cash under
this clause (y).

          “Effective Date” means the date on which the conditions specified in Section 4.01 are
satisfied (or waived in accordance with Section 10.02).

          “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into
by any Governmental Authority, relating in any way to the environment, preservation or reclamation
of natural resources, the presence, the management or release of, or exposure to, any Hazardous
Materials or to health and safety matters.

          “Environmental Liability” means all liabilities, obligations, damages, losses, claims,
actions, suits, judgments, orders, fines, penalties, fees, expenses and costs (including
administrative oversight costs, natural resource damages and remediation costs), whether contingent
or otherwise, arising out of or relating to (a) compliance or non-compliance with any Environmental
Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any
Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release of any Hazardous
Materials or (e) any contract, agreement or other consensual arrangement pursuant to which
liability is assumed or imposed with respect to any of the foregoing.

          “Equity Interests” means shares of capital stock, partnership interests, membership
interests in limited liability companies, beneficial interests in trusts or other

 

 

16

equity ownership
interests in any Persons, and any warrants, options or other rights entitling the holders thereof
to purchase or acquire any such equity interests.

          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time.

          “ERISA Affiliate” means any trade or business (whether or not incorporated) that,
together with the Borrower or any Subsidiary, is treated as a single employer under Section 414(b)
or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is
treated as a single employer under Section 414 of the Code.

          “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder, with respect to any Plan (other than an event for which the
30-day notice period is waived or an event described in Section 4043.33 of Title 29 of the Code of
Federal Regulations); (b) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA) as to which a waiver
has not been obtained; (c) the incurrence by the Borrower, a Subsidiary or any ERISA Affiliate of
any liability under Title IV of ERISA with respect to the termination of any Plan; (d) the
treatment of a Plan amendment as a termination under Section 4041 of ERISA; (e) any event or
condition, other than the Transactions, that would be materially likely to result in the
termination of, or the appointment of a trustee to administer, any Plan or Multiemployer Plan under
Section 4042 of ERISA; (f) the receipt by the Borrower, a Subsidiary or any ERISA
Affiliate from the PBGC or a plan administrator of any notice of an intention to terminate any
Plan or to appoint a trustee to administer any Plan; (g) the incurrence by the Borrower, any
Subsidiary or any ERISA Affiliate of any liability under Title IV of ERISA with respect to the
withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (h) the receipt by the
Borrower, any Subsidiary or any ERISA Affiliate of any notice, or the receipt by any Multiemployer
Plan from the Borrower, any Subsidiary or any ERISA Affiliate of any notice, concerning the
imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected
to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

          “euro” or “€” means the lawful currency of the member states of the European
Union that have adopted a single currency in accordance with applicable law or treaty.

          “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate.

          “Euro Equivalent” means with respect to any monetary amount in a currency other than
euros, at any time of determination thereof, the amount of euros obtained by converting such
foreign currency involved in such computation into euros at the spot rate for the purchase of euros
with the applicable foreign currency as published in The Wall Street Journal in the “Exchange
Rates” column under the heading “Currency

 

 

17

Trading” on the date two Business Days prior to such
determination. Except as described in Section 5.03, whenever it is necessary to determine whether
the Borrower has complied with any covenant in this Agreement or a Default has occurred and an
amount is expressed in a currency other than euros, such amount will be treated as the Euro
Equivalent determined as of the date such amount is initially determined in such currency.

          “European Bank Indebtedness” means any and all amounts payable under or in respect of
the European Facilities Agreement and any Refinancing Indebtedness with respect thereto, as amended
from time to time, including principal, premium (if any), interest (including interest accruing on
or after the filing of any petition in bankruptcy or for reorganization relating to the Borrower
whether or not a claim for post-filing interest is allowed in such proceedings), fees, charges,
expenses, reimbursement obligations and all other amounts payable thereunder or in respect thereof.

          “European Facilities Agreement” means the Amended and Restated Term Loan and Revolving
Credit Agreement dated as of March 31, 2003, as amended and restated as of the date hereof, among
the European JV, the other borrowers thereunder, certain lenders, certain issuing banks, J.P.
Morgan Europe Limited, as administrative agent and JPMCB, as collateral agent.

          “European Guarantee and Collateral Agreement” means the amended and restated European
Guarantee and Collateral Agreement among the Borrower, the
Subsidiary Guarantors, the Grantors, certain other Subsidiaries and JPMCB, in its capacity as
collateral agent under the credit agreements described therein, substantially in the form of
Exhibit I, as from time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein).

          “European JV” means Goodyear Dunlop Tires Europe B.V.

          “Event of Default” has the meaning assigned to such term in Article VII.

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

          “Exchange Notes” means (a) the Junior Lien Notes issued pursuant to the Junior Lien
Indenture in connection with a “Registered Exchange Offer” pursuant to a “Registration Rights
Agreement” under the Junior Lien Indenture and (b) Additional Junior Lien Notes, if any, issued
pursuant to a registration statement filed with the SEC under the Securities Act.

          “Excluded Securities” means, at any time, that portion of Capital Stock or other
securities of a Subsidiary pledged as Collateral that is treated as “Excluded Securities” under the
Junior Lien Indenture at such time.

          “Excluded Subsidiary” means any Subsidiary with only nominal assets and no operations.
No Subsidiary shall be an Excluded Subsidiary if it is a Guarantor or a Grantor under the First
Lien Guarantee and Collateral Agreement or the Second Lien

 

 

18

Guarantee and Collateral Agreement, a US
Guarantor or a US Facilities Grantor under the European Guarantee and Collateral Agreement or a
Subsidiary Guarantor or Grantor Subsidiary Guarantor under the Junior Lien Indenture.

          “Excluded Taxes” means, with respect to the Administrative Agent, any Lender or any
other recipient of any payment to be made by or on account of any obligation of the Borrower
hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by the United
States or by the jurisdiction under the laws of which such recipient is organized or in which its
principal office is located or, in the case of any Lender, in which its applicable lending office
is located, (b) any branch profits taxes imposed by the United States or any similar tax imposed by
any other jurisdiction described in clause (a) above and (c) (i) any withholding tax that is
imposed by the United States on amounts payable to a Foreign Lender (other than an assignee
pursuant to a request by the Borrower under Section 2.15(b)) at the time such Foreign Lender first
becomes a party to this Agreement (or designates a new lending office), except to the extent that
such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new
lending office (or assignment), to receive additional amounts from the Borrower with respect to
such withholding tax pursuant to Section 2.13(a) or (ii) any withholding tax that is imposed by the
United States on amounts payable to a Foreign Lender that is attributable to such Foreign Lender’s
failure to comply with Section 2.13(e).

          “Fair Market Value” means, with respect to any asset or property, the price which
could be negotiated in an arm’s-length, free market transaction, for cash, between a willing seller
and a willing and able buyer, neither of whom is under undue pressure or compulsion to complete the
transaction as such price is, unless specified otherwise in this Agreement, determined in good
faith by a Financial Officer of the Borrower or by the Board of Directors. Fair Market Value
(other than of any asset with a public trading market) of any asset or property (or group of assets
or property subject to an event giving rise to a requirement under this Agreement that “Fair Market
Value” be determined) in excess of $25,000,000 shall be determined by the Board of Directors or a
duly authorized committee thereof.

          “Federal Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received
by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

          “Financial Officer” means the Chief Financial Officer, the Treasurer or the Chief
Accounting Officer of the Borrower.

          “First Lien Agreement” means the First Lien Credit Agreement dated as of the date
hereof, among the Borrower, certain lenders, certain issuing banks, Citicorp

 

 

19

USA, Inc., as
syndication agent, and JPMCB, as administrative agent, as amended, restated, waived, replaced
(whether or not upon termination, whether or not pursuant to any extension, renewal, refinancing or
replacement of any Indebtedness thereunder and whether with the original lenders or otherwise),
refinanced, restructured or otherwise modified from time to time (except to the extent any such
amendment, restatement, supplement, waiver, replacement, refinancing, restructuring or other
modification thereto would be prohibited by the terms of this Agreement).

          “First Lien Bank Indebtedness” means any and all amounts payable under or in respect
of the First Lien Agreement any Refinancing Indebtedness with respect thereto, as amended from time
to time, including principal, premium (if any), interest (including interest accruing on or after
the filing of any petition in bankruptcy or for reorganization relating to the Borrower whether or
not a claim for post-filing interest is allowed in such proceedings), fees, charges, expenses,
reimbursement obligations and all other amounts payable thereunder or in respect thereof.

          “First Lien Guarantee and Collateral Agreement” means the Guarantee and Collateral
Agreement among the Borrower, the Subsidiary Guarantors, the Grantors, certain other Subsidiaries
and JPMCB, substantially in the form of Exhibit G, as from time to time amended, supplemented or
otherwise modified (subject to any restrictions on such amendments, supplements or modifications
set forth herein).

          “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than that in which the Borrower is located. For purposes of this definition, the United
States, each State thereof and the District of Columbia shall be deemed to constitute a single
jurisdiction.

          “Foreign Pledge Agreement” means a pledge or collateral agreement securing the
Obligations or the Subsidiary Guarantees or any of them that is governed by the law of a
jurisdiction other than the United States of America and reasonably satisfactory in form and
substance to the Collateral Agent.

          “Foreign Subsidiary” means any Restricted Subsidiary of the Borrower that is not
organized under the laws of the United States of America or any State thereof or the District of
Columbia, other than Goodyear Canada, Inc., an Ontario corporation (and its successors and
permitted assigns).

          “GAAP” means generally accepted accounting principles in the United States.

          “Governmental Authority” means the government of the United States, Canada, any other
nation or any political subdivision thereof, whether state, provincial, territorial or local, and
any agency, authority, instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or administrative powers or
functions of or pertaining to government.

          “Grantors” means the Borrower and each North American Subsidiary that has become, or
is required to become, a Grantor (as defined in the Collateral Agreement)

 

 

20

and, if applicable, a
party to any Canadian Security Agreement pursuant to Section 4.01(k) or Section 5.15.

          “Grantor Subsidiary Guarantor” means each Subsidiary Guarantor on the Effective Date
(other than Goodyear Western Hemisphere Corporation and Celeron Corporation) and each other
Subsidiary of the Borrower that becomes a Grantor Subsidiary Guarantor pursuant to Section 5.11.

          “Guarantee” means any obligation, contingent or otherwise, of any Person directly or
indirectly guaranteeing any Indebtedness of any other Person and any obligation, direct or
indirect, contingent or otherwise, of such Person (a) to purchase or pay (or advance or supply
funds for the purchase or payment of) such Indebtedness of such other Person (whether arising by
virtue of partnership arrangements, or by agreement to keep-well, to purchase assets, goods,
securities or services, to take-or-pay, or to maintain financial statement conditions or otherwise)
or (b) entered into for purposes of assuring in any other manner the obligee of such Indebtedness
of the payment thereof or to protect such obligee against loss in respect thereof (in whole or in
part); provided, however, that the term “Guarantee” shall not include endorsements for
collection or deposit in the ordinary course of business. The term “Guarantee” used as a
verb has a corresponding meaning. The term “Guarantor” shall mean any Person Guaranteeing any
obligation.

          “Guaranteed Obligations” means the principal and interest on the Loans when due,
whether at maturity, by acceleration or otherwise, and all other obligations, monetary or
otherwise, of the Borrower under this Agreement and other Security Documents (including expenses
and indemnification).

          “Hazardous Materials” means (a) petroleum products and byproducts, asbestos, urea
formaldehyde foam insulation, polychlorinated biphenyls, radon gas, chlorofluorocarbons and all
other ozone-depleting substances; and (b) any pollutant or contaminant or any hazardous, toxic,
radioactive or otherwise regulated chemical, material, substance or waste that is prohibited,
limited or regulated pursuant to any applicable Environmental Law.

          “Hedging Obligations” of any Person means the obligations of such Person pursuant to
any Interest Rate Agreement, Currency Agreement or Raw Materials Hedge Agreement.

          “Incur” means issue, assume, Guarantee, incur or otherwise become liable for;
provided, however, that any Indebtedness or Capital Stock of a Person existing at
the time such Person becomes a subsidiary of such Person (whether by merger, consolidation,
acquisition or otherwise) shall be deemed to be Incurred by such Person at the time it becomes a
subsidiary of such Person. The term “Incurrence” when used as a noun shall have a correlative
meaning. The accretion of principal of a non-interest bearing or other discount security shall not
be deemed the Incurrence of Indebtedness.

 

 

21

          “Indebtedness” means, with respect to any Person on any date of determination, without
duplication, (a) the principal of and premium (if any) in respect of indebtedness of such Person
for borrowed money, (b) the principal of and premium (if any) in respect of obligations of such
Person evidenced by bonds, debentures, notes or other similar instruments, (c) all obligations of
such Person for the reimbursement of any obligor on any letter of credit, bankers’ acceptance or
similar credit transaction (other than obligations with respect to letters of credit securing
obligations (other than obligations described in clauses (a), (b) and (e)) entered into in the
ordinary course of business of such Person to the extent such letters of credit are not drawn upon
or, if and to the extent drawn upon, such drawing is reimbursed no later than the tenth Business
Day following payment on the letter of credit); provided, however, that all
obligations of such Person for the reimbursement of any obligor on any letter of credit, bankers’
acceptance or similar credit transaction shall constitute indebtedness for all purposes of the
covenant described under Section 5.09 and for determining the Borrower’s ability to incur Liens and
for no other purpose under this Agreement, if such obligations are secured by or are purported to
be secured by Liens on Collateral, (d) all obligations of such Person to pay the deferred and
unpaid purchase price of property or services (except Trade Payables), which purchase price is due
more than six months after the date of placing such property in service or taking delivery and
title thereto or the completion of
such services, (e) all Capitalized Lease Obligations and all Attributable Debt of such Person,
(f) the amount of all obligations of such Person with respect to the redemption, repayment or other
repurchase of any Disqualified Stock or, with respect to any Subsidiary of such Person, any
Preferred Stock (but excluding, in each case, any accrued and unpaid dividends), (g) all
Indebtedness of other Persons secured by a Lien on any asset of such Person, whether or not such
Indebtedness is assumed by such Person; provided, however, that the amount of
Indebtedness of such Person shall be the lesser of (i) the Fair Market Value of such asset at such
date of determination and (ii) the amount of such Indebtedness of such other Persons, (h) Hedging
Obligations of such Person and (i) all obligations of the type referred to in clauses (a) through
(h) of other Persons for the payment of which such Person is responsible or liable, directly or
indirectly, as obligor, guarantor or otherwise, including by means of any Guarantee.

          Notwithstanding the foregoing, in connection with the purchase by the Borrower or any
Restricted Subsidiary of any business, the term “Indebtedness” shall exclude post-closing payment
adjustments to which the seller may become entitled to the extent such payment is determined by a
final closing balance sheet or such payment depends on the performance of such business after the
closing; provided, however, that, at the time of closing, the amount of any such payment is
not determinable and, to the extent such payment thereafter becomes fixed and determined, the
amount is paid within 30 days thereafter.

          The amount of Indebtedness of any Person at any date shall be the outstanding balance at such
date of all unconditional obligations as described above; provided, however, that in the case of
Indebtedness sold at a discount, the amount of such Indebtedness at any time will be the accreted
value thereof at such time.

          “Indemnified Taxes” means Taxes other than Excluded Taxes.

 

 

22

          “Indemnitee” has the meaning set forth in Section 10.03.

          “Indenture Closing Date” means March 12, 2004.

          “Information” has the meaning set forth in Section 10.12.

          “Information Memorandum” has the meaning assigned to such term in the Second Lien
Agreement.

          “Intellectual Property” has the meaning set forth in the Collateral Agreement.

          “Intercompany Items” means obligations owed by the Borrower or any Subsidiary to the
Borrower or any other Subsidiary.

          “Interest Election Request” means a request by the Borrower to convert or continue a
Borrowing in accordance with Section 2.05 in substantially the form of Exhibit B hereto.

          “Interest Payment Date” means (a) with respect to any ABR Loan, the last day of each
March, June, September and December and (b) with respect to any Eurodollar Loan, the last day of
the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a
Eurodollar Borrowing with an Interest Period of more than three months’ duration, each day prior to
the last day of such Interest Period that occurs at intervals of three months’ duration after the
first day of such Interest Period.

          “Interest Period” means, with respect to any Eurodollar Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically corresponding day in the
calendar month that is one, two, three or six months thereafter, as the Borrower may elect;
provided that (i) if any Interest Period would end on a day other than a Business Day, such
Interest Period shall be extended to the next succeeding Business Day unless such next succeeding
Business Day would fall in the next calendar month, in which case such Interest Period shall end on
the next preceding Business Day and (ii) any Interest Period pertaining to a Eurodollar Borrowing
that commences on the last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the last calendar month of such Interest Period) shall end on the
last Business Day of the last calendar month of such Interest Period. For purposes hereof, the
date of a Borrowing initially shall be the date on which such Borrowing is made and, in the case of
a Borrowing, thereafter shall be the effective date of the most recent conversion or continuation
of such Borrowing.

          “Interest Rate Agreement” means, with respect to any Person, any interest rate
protection agreement, interest rate future agreement, interest rate option agreement, interest rate
swap agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedge
agreement or other similar agreement or arrangement to which such Person is party or of which it is
a beneficiary.

 

 

23

          “Investment” in any Person means any direct or indirect advance, loan or other
extension of credit (including by way of Guarantee or similar arrangement) or capital contribution
to (by means of any transfer of cash or other property to others or any payment for property or
services for the account or use of others), or any purchase or acquisition of Capital Stock,
Indebtedness or other similar instruments issued by, such Person. For purposes of the definition
of “Unrestricted Subsidiary” and Section 5.04, (a) “Investment” shall include the portion
(proportionate to the Borrower’s equity interest in such Subsidiary) of the Fair Market Value of
the net assets of any Subsidiary of the Borrower at the time that such Subsidiary is designated an
Unrestricted Subsidiary; provided, however, that upon a redesignation of such Subsidiary as
a Restricted Subsidiary, the Borrower shall be deemed to continue to have a permanent “Investment”
in an Unrestricted Subsidiary in an amount (if positive) equal to (i) the Borrower’s “Investment”
in such Subsidiary at the time of such redesignation less (ii) the portion
(proportionate to the Borrower’s equity interest in such Subsidiary) of the Fair Market Value
of the net assets of such Subsidiary at the time of such redesignation and (b) any property
transferred to or from an Unrestricted Subsidiary shall be valued at its Fair Market Value at the
time of such transfer.

          In the event that the Borrower sells Capital Stock of a Restricted Subsidiary such that after
giving effect to such sale, such Restricted Subsidiary would no longer constitute a Restricted
Subsidiary, any Investment in such Person remaining after giving effect to such sale shall be
deemed to constitute an Investment made on the date of such sale of Capital Stock.

          “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the
equivalent) by Moody’s and BBB- (or the equivalent) by Standard & Poor’s, or an equivalent rating
by any other Rating Agency.

          “JPMCB” means JPMorgan Chase Bank, N.A., and its successors.

          “Junior Lien Indenture” means the Indenture dated as of March 12, 2004, among the
Borrower, the subsidiary guarantors party thereto and Wells Fargo Bank, N.A., as trustee.

          “Junior Lien Notes” means the Borrower’s 11% Senior Secured Notes due 2011 and Senior
Secured Floating Rate Notes due 2011, issued on March 12, 2004 (and any Exchange Notes issued in
exchange therefor), both issued under the Junior Lien Indenture.

          “Lenders” means the Persons listed on Schedule 2.01 and any other Person that shall
have become a party hereto pursuant to an Assignment and Assumption, other than any such Person
that ceases to be a party hereto pursuant to an Assignment and Assumption.

          “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period,
the rate appearing on Page 3750 of the Dow Jones Market Service (or on any successor or substitute
page of such Service, or any successor to or substitute for

 

 

24

such Service, providing rate quotations
comparable to those currently provided on such page of such Service, as determined by the
Administrative Agent from time to time for purposes of providing quotations of interest rates
applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period, as the rate for dollar
deposits with a maturity comparable to such Interest Period. In the event that such rate is not
available at such time for any reason with respect to any Eurodollar Borrowing, then the “LIBO
Rate” with respect to such Eurodollar Borrowing for such Interest Period shall be the rate
(rounded upwards, if necessary, to the next 1/100 of 1%) at which dollar deposits of $5,000,000 and
for a maturity comparable to such Interest Period are offered by the principal London office of the
Administrative Agent in immediately available funds in
the London interbank market at approximately 11:00 a.m., London time, two Business Days prior
to the commencement of such Interest Period.

          “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, French
delegation of claims, lien, pledge, hypothecation, encumbrance, charge or security interest in, on
or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement,
capital lease or title retention agreement (or any financing lease having substantially the same
economic effect as any of the foregoing) relating to such asset and (c) in the case of securities,
any purchase option, call or similar right of a third party with respect to such securities.

          “Lien Subordination and Intercreditor Agreement” means the Lien Subordination and
Intercreditor Agreement dated as of March 12, 2004, among JPMCB, Wilmington Trust Company, the
Borrower and the Subsidiary Guarantors.

          “Loans” means the loans made by the Lenders to the Borrower pursuant to this
Agreement.

          “Lockbox Agreements” means a Lockbox Agreement in a form approved by the Collateral
Agent, among a Grantor, the Collateral Agent and a Deposit Account Institution (as defined in the
Collateral Agreement).

          “Lockbox System” has the meaning assigned to such term in the Collateral Agreement.

          “LSIA Designation Notice” means a notice delivered by the Borrower under Section 4.01
of the Lien Subordination and Intercreditor Agreement designating the Obligations under this
Agreement as “Designated Junior Obligations” under the Lien Subordination and Intercredit Agreement
in accordance with the terms thereof.

          “Majority Lenders” means, at any time, Lenders having Loans representing more than 50%
of the aggregate principal amount of the total Loans outstanding (or, if the Loans have not yet
been made, Lenders having Commitments representing more than 50% of the aggregate principal amount
of the total Commitments).

 

 

25

          “Material Adverse Change” means a material adverse change in or effect on (a) the
business, operations, properties, assets or financial condition (including as a result of the
effects of any contingent liabilities thereon) of the Borrower and the Subsidiaries, taken as a
whole, (b) the ability of the Credit Parties, taken as a whole, to perform obligations under this
Agreement and the other Credit Documents that are material to the rights or interests of the
Lenders or (c) the rights of or benefits available to the Lenders under this Agreement and the
other Credit Documents that are material to the interests of the Lenders.

          “Material Foreign Subsidiary” means, at any time, each Foreign Subsidiary that had
assets with an aggregate book value in excess of $50,000,000 as of December 31, 2004, or if later,
as of the end of the most recent fiscal quarter for which financial statements have been delivered
pursuant to Section 5.02.

          “Material Intellectual Property” means all Intellectual Property of the Borrower and
the Grantors, other than Intellectual Property that in the aggregate is not material to the
business of the Borrower and the Subsidiaries, taken as a whole.

          “Maturity Date” means March 1, 2011.

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

          “Mortgage” means a mortgage or deed of trust, assignment of leases and rents, or
other security documents reasonably satisfactory in form and substance to the Collateral Agent
granting a Lien on any Mortgaged Property to secure the Obligations.

          “Mortgaged Property” means, at any time, each parcel of real property listed in
Schedule 1.01B and the improvements thereto.

          “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.

          “NAIC” means the National Association of Insurance Commissioners.

          “Net Available Cash” from an Asset Disposition means cash payments received (including
any cash payments received by way of deferred payment of principal pursuant to a note or
installment receivable or otherwise and proceeds from the sale or other disposition of any
securities received as consideration, in each case only as and when received, but excluding any
other consideration received in the form of assumption by the acquiring Person of Indebtedness or
other obligations relating to the properties or assets that are the subject of such Asset
Disposition or received in any other noncash form) therefrom, in each case net of:

          (a) all legal, accounting, investment banking, title and recording tax expenses, commissions
and other fees and expenses incurred, and all Federal, state, provincial, foreign and local taxes
required to be paid or accrued as a liability under GAAP, as a consequence of such Asset
Disposition,

 

 

26

          (b) all payments made on any Indebtedness which is secured by any assets subject to such Asset
Disposition, in accordance with the terms of any Lien upon or other security agreement of any kind
with respect to such assets, or which must by its terms, or in order to obtain a necessary consent
to such Asset Disposition, or by applicable law be repaid out of the proceeds from such Asset
Disposition,

          (c) all distributions and other payments required to be made to minority interest holders in
Subsidiaries or joint ventures as a result of such Asset Disposition, and

          (d) appropriate amounts to be provided by the seller as a reserve, in accordance with GAAP,
against any liabilities associated with the property or other assets disposed of in such Asset
Disposition and retained by the Borrower or any Restricted Subsidiary after such Asset Disposition
(but only for so long as such reserve is maintained).

          “Net Cash Proceeds”, with respect to any issuance or sale of Capital Stock, means the
cash proceeds of such issuance or sale net of attorneys’ fees, accountants’ fees, underwriters’ or
placement agents’ fees, listing fees, discounts or commissions and brokerage, consultant and other
fees actually incurred in connection with such issuance or sale and net of taxes paid or payable as
a result thereof.

          “Net Intercompany Items” means, in the case of any Subsidiary, (a) the aggregate
amount of the Intercompany Items owed by the Borrower or any other Subsidiary to such Subsidiary
minus (b) the aggregate amount of the Intercompany Items owed by such Subsidiary to the Borrower or
any other Subsidiary.

          “North American Subsidiary” means any Subsidiary organized under the laws of the
United States or Canada or any of their respective states, provinces, territories or possessions or
any political subdivision of any thereof.

          “Obligations” means (a) the due and punctual payment of (i) the principal of and
interest (including interest accruing during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or allowable in such
proceeding) on the Loans, when and as due, whether at maturity, by acceleration, upon one or more
dates set for prepayment or otherwise and (ii) all other monetary obligations of the Credit Parties
to any of the Secured Parties under this Agreement and each of the other Credit Documents,
including fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent,
fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in
such proceeding), and (b) the due and punctual performance of all other obligations of the Credit
Parties to any of the Secured Parties under this Agreement and the other Credit Documents.

          “Officer” means the Chairman of the Board, the Chief Executive Officer, the Chief
Financial Officer, the President, any Vice President, the Treasurer or the

 

 

27

Secretary of the
Borrower. “Officer” of a Subsidiary Guarantor has a correlative meaning.

          “Officers’ Certificate” means a certificate signed by two Officers.

          “Opinion of Counsel” means a written opinion from legal counsel who is acceptable to
the Administrative Agent. The counsel may be an employee of or counsel to the Borrower, a
Subsidiary Guarantor or the Administrative Agent.

          “Other Pari Passu Lien Obligation” means any Indebtedness of the Borrower and its
Restricted Subsidiaries (including the Loans and the Subsidiary Guarantees) that is designated by
the Borrower as permitted by the Junior Lien Indenture to be secured by Pari Passu Liens (other
than the Junior Lien Notes and the Guarantees related thereto).

          “Other Taxes” means any and all present or future stamp, documentary, excise,
recording, transfer, sales, property or similar taxes, charges or levies arising from any payment
made under any Credit Document or from the execution, delivery or enforcement of, or otherwise with
respect to, any Credit Document.

          “Pari Passu Lien” means any Lien on Collateral securing the Junior Lien Notes, a
Guarantee related thereto, or any Other Pari Passu Lien Obligation that ranks immediately junior in
priority (subject to Permitted Collateral Liens) to the Liens on such Collateral securing any
Priority Lien Obligations.

          “Participant” has the meaning assigned to such term in Section 10.04.

          “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA
and any successor entity performing similar functions.

          “Perfection Certificate” means a certificate in the form of Exhibit II to the
Collateral Agreement or any other form approved by the Collateral Agent.

          “Permitted Business” means any business engaged in by the Borrower or any Restricted
Subsidiary on the Indenture Closing Date and any Related Business.

          “Permitted Collateral Liens” means

          (a) Liens on the Collateral securing Priority Lien Obligations in an amount which, when taken
together with all other Priority Lien Obligations then outstanding pursuant to this clause (a),
does not exceed the greater of (i) $2,700,000,000 and (ii) the sum of (A) 80% of the book value of
the inventory of the Borrower and the Subsidiary Guarantors and (B) 85% of the book value of the
accounts receivable of the Borrower and the Subsidiary Guarantors, in each case, as of the end of
the most recent fiscal quarter for which financial statements have been filed with the SEC;
provided, however, that at the election of the Borrower, all or a portion of the
amount of Indebtedness permitted to be secured by Priority Liens pursuant to this clause (a) may
instead be allocated to be secured by Pari Passu Liens; provided further,
however, that (x)

 

 

28

the first $500,000,000 of Indebtedness allocated to be secured by Pari
Passu Liens pursuant to the preceding proviso shall reduce the amount set forth in clause (i) above
by the amount of such Indebtedness and (y) all Indebtedness allocated to be secured by Pari
Passu Liens pursuant to the preceding proviso in excess of $500,000,000 shall reduce both the
amount set forth in clause (i) above and the amount set forth in clause (ii) above, in each case,
by the amount of such Indebtedness;

          (b) (i) Liens on the Collateral securing the Junior Lien Notes outstanding on the Indenture
Closing Date, the Exchange Notes issued in exchange therefor and the Subsidiary Guarantees relating
thereto; and (ii) Liens on the Collateral securing Other Pari Passu Lien Obligations (including,
without limitation, Additional Junior Lien Notes) in an amount which, when taken together with all
other Other Pari Passu Lien Obligations (including the Loans hereunder) then outstanding does not
exceed any amount of Indebtedness secured by Pari Passu Liens pursuant to clause (a) above plus the
greater of (A) $650,000,000 and (B) an amount that as of the date of Incurrence, after giving
effect thereto and the application of proceeds therefrom, would not result in a Consolidated
Secured Debt Ratio of more than 3.75 to 1.00;

          (c) Liens on the Collateral existing on the Indenture Closing Date (other than Liens specified
in clauses (a) and (b) above);

          (d) Liens on the Collateral described in clauses (c) through (e), (g), (j), (k), (m), (o)
(only in respect of clauses (j) and (k)) and (q) through (v) of the definition of “Permitted
Liens;” provided that all obligations secured by such Liens described in clauses (u) and
(v) of the definition of “Permitted Liens” shall be deemed to constitute Indebtedness Incurred
pursuant to clause (b)(vi) of the covenant described under Section 5.03 for all purposes of the
covenant described under Section 5.09 and for determining the Borrower’s ability to Incur Liens and
for no other purpose under this Agreement;

          (e) Liens on the Collateral in favor of any collateral agent relating to such collateral
agent’s administrative expenses with respect to the Collateral; and

          (f) Liens on the Collateral securing Indebtedness Incurred pursuant to Section 5.03(b)(vi).

For the avoidance of doubt, any Lien on the Collateral securing First Lien Bank Indebtedness or
Second Lien Bank Indebtedness outstanding on the Effective Date shall be deemed to be Incurred and
outstanding pursuant to clause (a) of this definition, and any Lien on the Collateral securing
Junior Lien Notes outstanding on the Indenture Closing Date shall be deemed to be Incurred and
outstanding pursuant to clause (b) of this definition.

          “Permitted Investment” means an Investment by the Borrower or any Restricted
Subsidiary in:

          (a) the Borrower, a Restricted Subsidiary or a Person that will, upon the making of such
Investment, become a Restricted Subsidiary;

 

 

29

          (b) another Person if as a result of such Investment such other Person is merged or
consolidated with or into, or transfers or conveys all or substantially all its assets to, the
Borrower or a Restricted Subsidiary;

          (c) Temporary Cash Investments;

          (d) receivables owing to the Borrower or any Restricted Subsidiary if created or acquired in
the ordinary course of business and payable or dischargeable in accordance with customary trade
terms; provided, however, that such trade terms may include such concessionary
trade terms as the Borrower or any such Restricted Subsidiary deems reasonable under the
circumstances;

          (e) payroll, travel and similar advances to cover matters that are expected at the time of
such advances ultimately to be treated as expenses for accounting purposes and that are made in the
ordinary course of business;

          (f) loans or advances to employees made in the ordinary course of business of the Borrower or
such Restricted Subsidiary;

          (g) stock, obligations or securities received in settlement of disputes with customers or
suppliers or debts (including pursuant to any plan of reorganization or similar arrangement upon
insolvency of a debtor) created in the ordinary course of business and owing to the Borrower or any
Restricted Subsidiary or in satisfaction of judgments;

          (h) any Person to the extent such Investment represents the noncash portion of the
consideration received for an Asset Disposition that was made pursuant to and in compliance with
Section 5.06;

          (i) a Receivables Entity or any Investment by a Receivables Entity in any other Person in
connection with a Qualified Receivables Transaction, including Investments of funds held in
accounts permitted or required by the arrangements governing such Qualified Receivables Transaction
or any related Indebtedness; provided, however, that any Investment in a
Receivables Entity is in the form of a Purchase Money Note, contribution of additional receivables
or an equity interest;

          (j) any Person to the extent such Investments consist of prepaid expenses, negotiable
instruments held for collection and lease, utility and workers’ compensation, performance and other
similar deposits made in the ordinary course of business by the Borrower or any Restricted
Subsidiary;

          (k) any Person to the extent such Investments consist of Hedging Obligations otherwise
permitted under Section 5.03;

          (l) any Person to the extent such Investment in such Person existed on the Indenture Closing
Date and any Investment that replaces, refinances or refunds such
an Investment, provided that the new Investment is in an amount that does not exceed

 

 

30

that amount replaced, refinanced or refunded and is made in the same Person as the Investment
replaced, refinanced or refunded;

          (m) advances to, and Guarantees for the benefit of, customers, dealers or suppliers made in
the ordinary course of business and consistent with past practice; and

          (n) any Person to the extent such Investment, when taken together with all other Investments
made pursuant to this clause (n) after the Indenture Closing Date and then outstanding on the date
such Investment is made, does not exceed the greater of (i) the sum of (A) $250,000,000 and (B) any
amounts under Section 5.04(a)(iii)(D)(1) that were excluded by operation of the proviso in Section
5.04(a)(iii)(D) and which excluded amounts are not otherwise included in Consolidated Net Income or
intended to be permitted under any of clauses (a) through (m) of this definition and (ii) 2.0% of
Consolidated assets of the Borrower as of the end of the most recent fiscal quarter for which
financial statements of the Borrower have been filed with the SEC.

          “Permitted Liens” means, with respect to any Person:

          (a) Liens on Additional Excluded Collateral to secure Priority Lien Obligations permitted
pursuant to this Agreement;

          (b) Liens on Additional Foreign Bank Collateral to secure European Bank Indebtedness permitted
pursuant to Section 5.03(b)(i);

          (c) pledges or deposits by such Person under workers’ compensation laws, unemployment
insurance laws or similar legislation, or good faith deposits in connection with bids, tenders,
contracts (other than for the payment of Indebtedness) or leases to which such Person is a party,
or deposits to secure public or statutory obligations of such Person or deposits of cash or United
States government bonds to secure surety or appeal bonds to which such Person is a party, or
deposits as security for contested taxes or import duties or for the payment of rent, in each case
Incurred in the ordinary course of business;

          (d) Liens imposed by law, such as carriers’, warehousemen’s and mechanics’ Liens, in each case
for sums not yet due or being contested in good faith by appropriate proceedings or other Liens
arising out of judgments or awards against such Person with respect to which such Person shall then
be proceeding with an appeal or other proceedings for review;

          (e) Liens for taxes, assessments or other governmental charges not yet due or payable or
subject to penalties for non-payment or which are being contested in good faith by appropriate
proceedings;

          (f) Liens in favor of issuers of surety or performance bonds or letters of credit issued
pursuant to the request of and for the account of such Person in the

 

 

31

ordinary course of its
business; provided, however, that such letters of credit do not constitute
Indebtedness;

          (g) survey exceptions, encumbrances, easements or reservations of, or rights of others for,
licenses, rights-of-way, sewers, electric lines, telegraph and telephone lines and other similar
purposes, or zoning or other restrictions as to the use of real property or Liens incidental to the
conduct of the business of such Person or to the ownership of its properties which were not
Incurred in connection with Indebtedness for borrowed money and which do not in the aggregate
materially adversely affect the value of said properties or materially impair their use in the
operation of the business of such Person;

          (h) Liens securing Indebtedness Incurred to finance the construction, purchase or lease of, or
repairs, improvements or additions to, property of such Person (including Indebtedness Incurred
under Section 5.03(b)(vi); provided, however, that the Lien may not extend to any
other property (other than property related to the property being financed) owned by such Person or
any of its Subsidiaries at the time the Lien is Incurred, and the Indebtedness (other than any
interest thereon) secured by the Lien may not be Incurred more than 180 days after the later of the
acquisition, completion of construction, repair, improvement, addition or commencement of full
operation of the property subject to the Lien;

          (i) Liens existing on the Indenture Closing Date (other than (i) Liens referred to in the
foregoing clauses (a) and (b) and (ii) Permitted Collateral Liens);

          (j) Liens on property or shares of stock of another Person at the time such other Person
becomes a subsidiary of such Person; provided, however, that such Liens are not
created, Incurred or assumed in connection with, or in contemplation of, such other Person becoming
such a subsidiary; provided further, however, that such Liens do not extend
to any other property owned by such Person or any of its subsidiaries, except pursuant to
after-acquired property clauses existing in the applicable agreements at the time such Person
becomes a subsidiary which do not extend to property transferred to such Person by the Borrower or
a Restricted Subsidiary;

          (k) Liens on property at the time such Person or any of its subsidiaries acquires the
property, including any acquisition by means of a merger or consolidation with or into such Person
or any subsidiary of such Person; provided, however, that such Liens are not
created, Incurred or assumed in connection with, or in contemplation of, such acquisition;
provided further, however, that the Liens do not extend to any other property owned
by such Person or any of its subsidiaries;

          (l) Liens securing Indebtedness or other obligations of a subsidiary of such Person owing to
such Person or a Restricted Subsidiary of such Person;

          (m) Liens securing Hedging Obligations so long as such obligations relate to Indebtedness that
is, and is permitted under this Agreement to be, secured by a Lien on the same property securing
such Hedging Obligations;

 

 

32

          (n) Liens on assets of Foreign Subsidiaries securing Indebtedness Incurred under Section
5.03(b)(x);

          (o) Liens to secure any Refinancing (or successive Refinancings) as a whole, or in part, of
any Indebtedness secured by any Lien referred to in the foregoing clauses (a), (b), (h), (i), (j)
and (k); provided, however, that:

     (i) such new Lien shall be limited to all or part of the same property that secured
the original Lien (plus improvements, accessions, proceeds, dividends or distributions in
respect thereof) and

     (ii) the Indebtedness secured by such Lien at such time is not increased to any amount
greater than the sum of:

	 	(A)  	the outstanding principal amount or, if
greater, committed amount of the Indebtedness secured by Liens
described under clauses (a), (b), (h), (i), (j) or (k) at the time
the original Lien became a Permitted Lien under this Agreement and
	 
	 	(B)  	an amount necessary to pay any fees and
expenses, including premiums, related to such Refinancings;

          (p) Liens on accounts receivables and related assets of the type specified in the definition
of “Qualified Receivables Transaction” Incurred in connection with a Qualified Receivables
Transaction;

          (q) judgment Liens not giving rise to an Event of Default so long as any appropriate legal
proceedings which may have been duly initiated for the review of such judgment have not been
finally terminated or the period within which such proceedings may be initiated has not expired;

          (r) Liens arising from Uniform Commercial Code financing statement filings regarding leases
that do not otherwise constitute Indebtedness entered into in the ordinary course of business;

          (s) leases and subleases of real property which do not materially interfere with the ordinary
conduct of the business of the Borrower and its Subsidiaries;

          (t) Liens which constitute bankers’ Liens, rights of set-off or similar rights and remedies as
to deposit accounts or other funds maintained with any bank or other financial institution, whether
arising by operation of law or pursuant to contract;

          (u) Liens on specific items of inventory or other goods and proceeds of any Person securing
such Person’s obligations in respect of bankers’ acceptances issued or created for the account of
such Person to facilitate the purchase, shipment or storage of such inventory or other goods;

 

 

33

          (v) Liens on specific items of inventory or other goods and related documentation (and
proceeds thereof) securing reimbursement obligations in respect of trade letters of credit issued
to ensure payment of the purchase price for such items of inventory or other goods; and

          (w) other Liens to secure Indebtedness in an aggregate amount not to exceed $25,000,000 at any
time outstanding.

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

          “Plan” means any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV or Section 302 of ERISA or Section 412 of the Code, and in
respect of which the Borrower, any Subsidiary or any ERISA Affiliate is (or, if such plan were
terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section
3(5) of ERISA.

          “Preferred Stock,” as applied to the Capital Stock of any Person, means Capital Stock
of any class or classes (however designated) that is preferred as to the payment of dividends, or
as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of
such Person, over shares of Capital Stock of any other class of such Person.

          “Prime Rate” means the rate of interest per annum publicly announced from time to time
by JPMCB (or any successor Administrative Agent appointed or chosen pursuant to Article IX hereof)
as its prime rate in effect at its principal office in New York City. Each change in the Prime
Rate shall be effective from and including the date such change is publicly announced as being
effective.

          “Priority Lien” means any Lien on any Collateral for the benefit of the lenders of any
Indebtedness of the Borrower or any of its Restricted Subsidiaries that is designated by the
Borrower as permitted by this Agreement to rank prior to the Liens on such Collateral for the
benefit of the Lenders.

          “Priority Lien Obligation” means any Indebtedness that is secured by a Priority Lien.
The relative priorities of the Priority Lien Obligations are determined by agreement among the
holders of the Priority Lien Obligations.

          “Purchase Money Indebtedness” means Indebtedness:

          (a) consisting of the deferred purchase price of property, plant and equipment, conditional
sale obligations, obligations under any title retention agreement and other obligations Incurred in
connection with the acquisition, construction or improvement of such asset, in each case where the
amount of such Indebtedness does not exceed the greater of (i) the cost of the asset being financed
and (ii) the Fair Market Value of such asset, and

 

 

34

          (b) Incurred to finance such acquisition, construction or improvement by the Borrower or a
Restricted Subsidiary of such asset;

provided, however, that such Indebtedness is Incurred within 180 days after such
acquisition or the completion of such construction or improvement.

          “Purchase Money Note” means a promissory note of a Receivables Entity evidencing a
line of credit, which may be irrevocable, from the Borrower or any Subsidiary to a Receivables
Entity in connection with a Qualified Receivables Transaction, which note (a) shall be repaid from
cash available to the Receivables Entity, other than (i) amounts required to be established as
reserves, (ii) amounts paid to investors in respect of interest, (iii) principal and other amounts
owing to such investors and (iv) amounts paid in connection with the purchase of newly generated
receivables and (b) may be subordinated to the payments described in clause (a).

          “Qualified Receivables Transaction” means any transaction or series of transactions
that may be entered into by the Borrower or any of its Subsidiaries pursuant to which the Borrower
or any of its Subsidiaries may sell, convey or otherwise transfer to:

          (a) a Receivables Entity (in the case of a transfer by the Borrower or any of its
Subsidiaries) or

          (b) any other Person (in the case of a transfer by a Receivables Entity),

or may grant a security interest in, any accounts receivable (whether now existing or arising in
the future) of the Borrower or any of its Subsidiaries, and any assets related thereto including,
without limitation, all collateral securing such accounts receivable, all contracts and all
Guarantees or other obligations in respect of such accounts receivable, proceeds of such accounts
receivable and other assets which are customarily transferred or in respect of which security
interests are customarily granted in connection with asset securitization transactions involving
accounts receivable; provided, however, that the financing terms, covenants, termination events and
other provisions thereof shall be market terms (as determined in good faith by a Financial Officer
of the Borrower).

          The grant of a security interest in any accounts receivable of the Borrower or any of its
Restricted Subsidiaries to secure Bank Indebtedness shall not be deemed a Qualified Receivables
Transaction.

          “Rating Agency” means Standard & Poor’s and Moody’s or if Standard & Poor’s or Moody’s
or both shall not make a rating on the Loans publicly available, a nationally recognized
statistical rating agency or agencies, as the case may be, selected by the Borrower (as certified
by a resolution of the Board of Directors) which shall be substituted for Standard & Poor’s or
Moody’s or both, as the case may be.

          “Raw Material Hedge Agreements” means agreements designed to hedge against
fluctuations in the cost of raw materials in connection with the operation of the Borrower and its
Restricted Subsidiaries’ business.

 

 

35

          “Receivables Entity” means (a) a Wholly Owned Subsidiary of the Borrower which is
designated by the Board of Directors (as provided below) as a Receivables Entity or (b) another
Person engaging in a Qualified Receivables Transaction with the Borrower which Person engages in
the business of the financing of accounts receivable, and in either of clause (a) or (b):

     (i) no portion of the Indebtedness or any other obligations (contingent or otherwise)
of which:

	 	(A)  	is Guaranteed by the Borrower or any Subsidiary of the
Borrower (excluding Guarantees of obligations (other than the principal of,
and interest on, Indebtedness) pursuant to Standard Securitization
Undertakings),
	 
	 	(B)  	is recourse to or obligates the Borrower or any Subsidiary of
the Borrower in any way other than pursuant to Standard Securitization
Undertakings or
	 
	 	(C)  	subjects any property or asset of the Borrower or any
Subsidiary of the Borrower, directly or indirectly, contingently or otherwise,
to the satisfaction thereof, other than pursuant to Standard Securitization
Undertakings;

     (ii) which is not an Affiliate of the Borrower or with which neither the Borrower nor
any Subsidiary has any material contract, agreement, arrangement or understanding other
than on terms which the Borrower reasonably believes to be no less favorable to the
Borrower or such Subsidiary than those that might be obtained at the time from Persons that
are not Affiliates of the Borrower; and

     (iii) to which neither the Borrower nor any Subsidiary has any obligation to maintain
or preserve such entity’s financial condition or cause such entity to achieve certain
levels of operating results.

Any such designation by the Board of Directors shall be evidenced to the Administrative Agent by
filing with the Administrative Agent a certified copy of the resolution of the
Board of Directors giving effect to such designation and an Officers’ Certificate certifying that
such designation complied with the foregoing conditions.

          “Refinance” means, in respect of any Indebtedness, to refinance, extend, renew,
refund, repay, prepay, redeem, defease or retire, or to issue other Indebtedness in exchange or
replacement for, such Indebtedness, including, in any such case from time to time, after the
discharge of the Indebtedness being Refinanced. “Refinanced” and “Refinancing”
shall have correlative meanings.

          “Refinancing Indebtedness” means Indebtedness that is Incurred to Refinance (including
pursuant to any defeasance or discharge mechanism) any Indebtedness of the Borrower or any
Restricted Subsidiary existing on the Indenture Closing Date or Incurred (or deemed Incurred) in
compliance with this Agreement

 

 

36

(including Indebtedness of the Borrower that Refinances Refinancing
Indebtedness); provided, however, that:

          (a) the Refinancing Indebtedness has a Stated Maturity no earlier than the Stated Maturity of
the Indebtedness being Refinanced,

          (b) the Refinancing Indebtedness has an Average Life at the time such Refinancing Indebtedness
is Incurred that is equal to or greater than the Average Life of the Indebtedness being refinanced,

          (c) such Refinancing Indebtedness is Incurred in an aggregate principal amount (or if Incurred
with original issue discount, an aggregate issue price) that is equal to or less than the aggregate
principal amount of the Indebtedness being refinanced (or if issued with original issue discount,
the aggregate accreted value) then outstanding (or that would be outstanding if the entire
committed amount of any credit facility being Refinanced were fully drawn (other than any such
amount that would have been prohibited from being drawn pursuant to Section 5.03) (plus fees and
expenses, including any premium and defeasance costs), and

          (d) if the Indebtedness being Refinanced is subordinated in right of payment to the
Obligations, such Refinancing Indebtedness is subordinated in right of payment to the Obligations
at least to the same extent as the Indebtedness being Refinanced;

provided further, however, that Refinancing Indebtedness shall not include
(i) Indebtedness of a Restricted Subsidiary that is not a Grantor Subsidiary Guarantor that
Refinances Indebtedness of the Borrower or (ii) Indebtedness of the Borrower or a Restricted
Subsidiary that Refinances Indebtedness of an Unrestricted Subsidiary.

          “Register” has the meaning set forth in Section 10.04.

          “Related Business” means any business reasonably related, ancillary or complementary
to the businesses of the Borrower and its Restricted Subsidiaries on the Indenture Closing Date.

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

          “Restricted Payment” in respect of any Person means:

          (a) the declaration or payment of any dividend, any distribution on or in respect of its
Capital Stock or any similar payment (including any payment in connection with any merger or
consolidation involving the Borrower or any Restricted Subsidiary) to the direct or indirect
holders of its Capital Stock in their capacity as such, except (i) dividends or distributions
payable solely in its Capital Stock (other than Disqualified Stock or, in the case of a Restricted
Subsidiary, Preferred Stock) and (ii) dividends or distributions payable to the Borrower or a
Restricted Subsidiary (and, if

 

 

37

such Restricted Subsidiary has Capital Stock held by Persons other
than the Borrower or other Restricted Subsidiaries, to such other Persons on no more than a pro
rata basis),

          (b) the purchase, repurchase, redemption, retirement or other acquisition (“Purchase”)
for value of any Capital Stock of the Borrower or any Restricted Subsidiary held by Persons other
than the Borrower or a Restricted Subsidiary (other than in exchange for Capital Stock of the
Borrower that is not Disqualified Stock),

          (c) the Purchase for value, prior to scheduled maturity, any scheduled repayment or any
scheduled sinking fund payment, of any Subordinated Obligations (other than the Purchase for value
of Subordinated Obligations acquired in anticipation of satisfying a sinking fund obligation,
principal installment or final maturity, in each case due within one year of the date of such
Purchase), or

          (d) any Investment (other than a Permitted Investment) in any Person.

          “Restricted Subsidiary” means any Subsidiary other than an Unrestricted Subsidiary.

          “Sale/Leaseback Transaction” means an arrangement relating to property, plant and
equipment now owned or hereafter acquired by the Borrower or a Restricted Subsidiary whereby the
Borrower or a Restricted Subsidiary transfers such property to a Person and the Borrower or such
Restricted Subsidiary leases it from such Person, other than (i) leases between the Borrower and a
Restricted Subsidiary or between Restricted Subsidiaries or (ii) any such transaction entered into
with respect to any property, plant and equipment or any improvements thereto at the time of, or
within 180 days after, the acquisition or completion of construction of such property, plant and
equipment or such improvements (or, if later, the commencement of commercial operation of any such
property, plant and equipment), as the case may be, to finance the cost of such property,
plant and equipment or such improvements, as the case may be.

          “SEC” means the Securities and Exchange Commission.

          “Second Lien Agreement” means the Second Lien Credit Agreement dated as of the date
hereof, among the Borrower, certain lenders and JPMCB, as administrative agent.

          “Second Lien Bank Indebtedness” means any and all amounts payable under or in respect
of the Second Lien Agreement, and any Refinancing Indebtedness with respect thereto, as amended
from time to time, including principal, premium (if any), interest (including interest accruing on
or after the filing of any petition in bankruptcy or for reorganization relating to the Borrower
whether or not a claim for post-filing interest is allowed in such proceedings), fees, charges,
expenses, reimbursement obligations and all other amounts payable thereunder or in respect thereof.

          “Second Lien Guarantee and Collateral Agreement” means the Guarantee and Collateral
Agreement among the Borrower, the Subsidiary Guarantors, the Grantors, certain other Subsidiaries
and Deutsche Bank Trust Company Americas, substantially in

 

 

38

the form of Exhibit G, as from time to
time amended, supplemented or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein).

          “Secured Parties” means the Administrative Agent, the Collateral Agent and each
Lender.

          “Securities Act” means the U.S. Securities Act of 1933, as amended.

          “Security Documents” means the Collateral Agreement, the Collateral Agreement
Designation Notice, the Foreign Pledge Agreements, the Canadian Security Agreements, the Mortgages
and each other instrument or document delivered pursuant to Section 5.15 to secure any of the
Obligations.

          “Senior Indebtedness” of the Borrower or any Subsidiary Guarantor, as the case may be,
means the principal of, premium (if any) and accrued and unpaid interest on (including interest
accruing on or after the filing of any petition in bankruptcy or for reorganization of the Borrower
or any Subsidiary Guarantor, as applicable, regardless of whether or not a claim for post-filing
interest is allowed in such proceedings), and fees and other amounts owing in respect of, Bank
Indebtedness, the Junior Lien Notes and the Loans hereunder (in the case of the Borrower), the
Subsidiary Guarantees and the Guarantees of the Junior Lien Notes (in the case of the Subsidiary
Guarantors) and all other Indebtedness of the Borrower or any Subsidiary Guarantor, as applicable,
whether outstanding on the Effective Date or thereafter Incurred, unless in the instrument creating
or evidencing the same or pursuant to which the same is outstanding it is provided that such
obligations are subordinated in right of payment to the
Obligations or such Subsidiary Guarantor’s Subsidiary Guarantee, as applicable;
provided, however, that Senior Indebtedness of the Borrower or any Subsidiary
Guarantor shall not include (a) any obligation of the Borrower to any Subsidiary or of such
Subsidiary Guarantor to the Borrower or any other Subsidiary of the Borrower, (b) any liability for
Federal, state, local or other taxes owed or owing by the Borrower or such Subsidiary Guarantor, as
applicable, (c) any accounts payable or other liability to trade creditors arising in the ordinary
course of business (including Guarantees thereof or instruments evidencing such liabilities), (d)
any Indebtedness or obligation of the Borrower (and any accrued and unpaid interest in respect
thereof) that by its terms is subordinate or junior in right of payment to any other Indebtedness
or obligation of the Borrower or such Subsidiary Guarantor, as applicable, including any
Subordinated Obligations of the Borrower or such Subsidiary Guarantor, as applicable, (b) any
obligations with respect to any Capital Stock; or (f) any Indebtedness Incurred in violation of
this Agreement.

          “Significant Subsidiary” means any Restricted Subsidiary that would be a “Significant
Subsidiary” of the Borrower within the meaning of Rule 1-02 under Regulation S-X promulgated by the
SEC.

 

 

39

          “Specified Asset Sale” means the sale of all the assets and liabilities of the
Borrower’s Chemical Products strategic business segment other than its natural rubber plantation
and processing facility in Indonesia.

          “Specified Jurisdiction” means The United States of America and Canada.

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

          “Standard Securitization Undertakings” means representations, warranties, covenants
and indemnities entered into by the Borrower or any Subsidiary of the Borrower which, taken as a
whole, are customary in an accounts receivable transaction.

          “Stated Maturity” means, with respect to any security, the date specified in such
security as the fixed date on which the final payment of principal of such security is due and
payable, including pursuant to any mandatory redemption provision (but excluding any provision
providing for the repurchase of such security at the option of the holder thereof upon the
happening of any contingency beyond the control of the issuer unless such contingency has
occurred).

          “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or supplemental reserves)
expressed as a decimal established by the Board to which the Administrative Agent is subject, with
respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed
pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency
funding and to be subject to such reserve requirements without benefit of or credit for proration,
exemptions or offsets that may be available from time to time to any Lender under such Regulation D
or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as
of the effective date of any change in any reserve percentage.

          “Subordinated Obligation” means any Indebtedness of the Borrower (whether outstanding
on the Indenture Closing Date or thereafter Incurred) that by its terms is subordinate or junior in
right of payment to the Obligations. “Subordinated Obligation” of a Subsidiary Guarantor has a
correlative meaning.

          “subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of
which are consolidated with those of the parent in the parent’s consolidated financial statements
in accordance with GAAP as of such date, as well as any other corporation, limited liability
company, partnership, association or other entity of which securities or other ownership interests
representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the
case of a partnership, more than 50% of the general partnership interests are, as of such date,
owned, controlled or held by the

 

 

40

parent or one or more subsidiaries of the parent or by the parent
and one or more subsidiaries of the parent.

          “Subsidiary” means any subsidiary of the Borrower (other than Tire & Wheel Assemblies,
Inc. at any time when not more than 50% of the Capital Stock or 50% of the voting power are, as of
such date, owned or Controlled by the Borrower).

          “Subsidiary Guarantee” means each Guarantee of the Obligations by a Subsidiary
pursuant to the terms of this Agreement or the Security Documents.

          “Subsidiary Guarantor” means any Subsidiary that has issued a Subsidiary Guarantee.

          “Taxes” means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority.

          “Temporary Cash Investments” means any of the following:

          (a) direct obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent
such obligations are backed by the full faith and credit of the United States of America), in each
case maturing within one year from the date of acquisition thereof;

          (b) investments in commercial paper maturing within 270 days from the date of acquisition
thereof, and having, at such date of acquisition, ratings of A1 from S&P and P1 from Moody’s;

          (c) investments in certificates of deposit, banker’s acceptances and time deposits maturing
within 180 days from the date of acquisition thereof and issued or guaranteed by or placed with,
and money market deposit accounts issued or offered by any commercial bank organized under the laws
of the United States of America or any state thereof which has a short-term deposit rating of A1
from S&P and P1 from Moody’s and has a combined capital and surplus and undivided profits of not
less than $500,000,000;

          (d) fully collateralized repurchase agreements with a term of not more than 30 days for
securities described in clause (a) above and entered into with a financial institution described in
clause (c) above;

          (e) money market funds that (i) comply with the criteria set forth in SEC Rule 2a-7 under the
Investment Company Act of 1940, (ii) are rated AAA by S&P and Aaa by Moody’s and (iii) have
portfolio assets of at least $5,000,000,000; and

          (f) in the case of any Foreign Subsidiary, (i) marketable direct obligations issued or
unconditionally guaranteed by the sovereign nation in which such Foreign Subsidiary is organized
and is conducting business or issued by any agency of such sovereign nation and backed by the full
faith and credit of such sovereign nation, in

 

 

41

each case maturing within one year from the date of
acquisition, so long as the indebtedness of such sovereign nation is rated at least A by S&P or A2
by Moody’s or carries an equivalent rating from a comparable foreign rating agency, (ii)
investments of the type and maturity described in clauses (b) through (e) of foreign obligors,
which investments or obligors have ratings described in such clauses or equivalent ratings from
comparable foreign rating agencies, (iii) investments of the type and maturity described in clause
(c) in any obligor organized under the laws of a jurisdiction other than the United States that (A)
is a branch or subsidiary of a lender or the ultimate parent company of a lender under any of the
Credit Agreements (but only if such lender meets the ratings and capital, surplus and undivided
profits requirements of such clause (c)) or (B) carries a rating at least equivalent to the rating
of the sovereign nation in which it is located, and (iv) other investments of the type and maturity
described in clause (c) in obligors organized under the laws of a jurisdiction other than the
United States in any country in which such Subsidiary is located; provided,
however, that the investments permitted under this subclause (iv) shall not exceed
$10,000,000 for all such Subsidiaries in any such country or $50,000,000 in the aggregate for all
such Subsidiaries and all countries.

          “Total Assets” of any Subsidiary means (a) in the case of any Subsidiary organized in
a Specified Jurisdiction, (i) the total assets of such Subsidiary, excluding Intercompany Items,
plus (ii) if the Net Intercompany Items of such Subsidiary shall be
positive, the amount of such Net Intercompany Items; and (b) in the case of any other
Subsidiary, the total assets of such Subsidiary, excluding Intercompany Items.

          “Trade Payables” means, with respect to any Person, any accounts payable or any
indebtedness or monetary obligation to trade creditors created, assumed or Guaranteed by such
Person arising in the ordinary course of business in connection with the acquisition of goods or
services.

          “Transactions” means the execution, delivery and performance by the Borrower of this
Agreement and by the Borrower, the Subsidiary Guarantors and the Grantors, as applicable, of the
other Credit Documents, the borrowing of the Loans, the creation of the Liens and Guarantees
provided for in the Security Documents and the other transactions contemplated hereby.

          “2003 MGCA” means the Amended and Restated Master Guarantee and Collateral Agreement
dated as of March 31, 2003, among the Borrower, the subsidiary guarantors thereunder, the
subsidiary grantors thereunder, certain other Subsidiaries, certain financial institutions, and the
Collateral Agent thereunder.

          “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the
Adjusted LIBO Rate or the Alternate Base Rate.

          “Unrestricted Subsidiary” means:

 

 

42

          (a) any Subsidiary that at the time of determination shall be designated an Unrestricted
Subsidiary by the Board of Directors in the manner provided below and

          (b) any subsidiary of an Unrestricted Subsidiary.

The Board of Directors may designate any Subsidiary (including any newly acquired or newly formed
Subsidiary) to be an Unrestricted Subsidiary unless such Subsidiary or any of its subsidiaries owns
any Capital Stock or Indebtedness of, or owns or holds any Lien on any property of, the Borrower or
any other Subsidiary that is not a subsidiary of the Subsidiary to be so designated;
provided, however, that either:

     (i) the Subsidiary to be so designated has total Consolidated assets of $1,000 or less
or

     (ii) if such Subsidiary has Consolidated assets greater than $1,000, then such
designation would be permitted under Section 5.04;

The Board of Directors may designate any Unrestricted Subsidiary to be a Restricted Subsidiary;
provided, however, that immediately after giving effect to such designation:

	 	(x)  	(A) the Borrower could Incur $1.00 of additional Indebtedness under Section
5.03(a) or (B) the Consolidated Coverage Ratio for the Borrower
and its Restricted Subsidiaries would be greater after giving effect to such
designation than before such designation and
	 
	 	(y)  	no Default shall have occurred and be continuing

Any such designation of a Subsidiary as a Restricted Subsidiary or Unrestricted Subsidiary by the
Board of Directors shall be evidenced to the Administrative Agent by promptly filing with the
Administrative Agent a copy of the resolution of the Board of Directors giving effect to such
designation and an Officers’ Certificate certifying that such designation complied with the
foregoing provisions.

          “Voting Stock” of a Person means all classes of Capital Stock or other interests
(including partnership interests) of such Person then outstanding and normally entitled (without
regard to the occurrence of any contingency) to vote in the election of directors, managers or
trustees thereof.

          “Wholly Owned Subsidiary” of any person shall mean a subsidiary of such person of
which securities (except for directors’ qualifying shares) or other ownership interests
representing 100% of the Capital Stock are, at the time any determination is being made, owned,
controlled or held by such person or one or more wholly owned Subsidiaries of such person or by
such person and one or more wholly owned Subsidiaries of such person.

          “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.

 

 

43

          SECTION 1.02. Terms Generally. The definitions of terms herein shall apply equally to
the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such Person’s successors and assigns, but shall not be deemed to
include the subsidiaries of such Person unless express reference is made to such subsidiaries, (c)
the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to
refer to this Agreement in its entirety and not to any particular provision hereof, (d) all
references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to
Articles and Sections of, and Exhibits and Schedules to, this Agreement, and (e) the words “asset”
and “property” shall be construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, securities, accounts and
contract rights.

          SECTION 1.03. Accounting Terms; GAAP. Except as otherwise expressly provided herein,
all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in
effect from time to time; provided that, if the Borrower notifies the Administrative Agent
that the Borrower requests an amendment to any provision hereof to eliminate the effect of any
change occurring after the date hereof in GAAP or in the application thereof on the operation of
such provision (or if the Administrative Agent notifies the Borrower that the Majority Lenders
request an amendment to any provision hereof for such purpose), regardless of whether any such
notice is given before or after such change in GAAP or in the application thereof, then such
provision shall be interpreted on the basis of GAAP as in effect and applied immediately before
such change shall have become effective until such notice shall have been withdrawn or such
provision amended in accordance herewith.

ARTICLE II

The Credits

          SECTION 2.01. Commitments. Subject to the terms and conditions set forth herein, each
Lender agrees to make a Loan to the Borrower on the Effective Date in a principal amount not
exceeding its Commitment. Amounts paid or prepaid in respect of Loans may not be reborrowed. The
Commitments of Lenders shall expire at 5:00 p.m., New York City time, on the Effective Date.

          SECTION 2.02. Loans and Borrowings. (a) Each Loan shall be part of a Borrowing
consisting of Loans made by the Lenders ratably in accordance with their respective Commitments.
The failure of any Lender to make any Loan required to be

 

 

44

made by it shall not relieve any other
Lender of its obligations hereunder; provided that the Commitments of the Lenders are
several and no Lender shall be responsible for any other Lender’s failure to make Loans as
required.

          (b) Subject to Section 2.10, each Borrowing shall be comprised entirely of ABR Loans or
Eurodollar Loans as the Borrower may request in accordance herewith. Each Lender at its option may
make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to
make such Loan; provided that any exercise of such option shall not affect the obligation
of the Borrower to repay such Loan in accordance with the terms of this Agreement.

          (c) At the commencement of each Interest Period for any Eurodollar Borrowing, such Borrowing
shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than
$5,000,000. At the time that each ABR Borrowing is made, such Borrowing shall be in an aggregate
amount that is an integral multiple of $1,000,000 and not less than $5,000,000. Borrowings of more
than one Type may be
outstanding at the same time; provided that there shall not at any time be more than a
total of 20 Eurodollar Borrowings outstanding.

          (d) Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled
to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with
respect thereto would end after the Maturity Date.

          SECTION 2.03. Borrowing Procedure. To request a Borrowing on the Effective Date, the
Borrower shall notify the Administrative Agent of such request by telephone not later than 10:30
a.m., New York City time, on the Effective Date. Such telephonic Borrowing Request shall be
irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative
Agent of a written Borrowing Request signed by the Borrower. Such telephonic and written Borrowing
Request shall specify the following information in compliance with Section 2.02:

               (i) the aggregate amount of the requested Borrowing;

               (ii) the proposed Effective Date, which shall be a Business Day;

               (iii) whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing;

               (iv) in the case of a Eurodollar Borrowing, the initial Interest Period to be
applicable thereto, which shall be a period contemplated by the definition of the term
“Interest Period”; and

               (v) the location and number of the Borrower’s account to which funds are to be
disbursed, which shall comply with the requirements of Section 2.04.

If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an
ABR Borrowing. If no Interest Period is specified with respect to any requested Eurodollar
Borrowing, then the Borrower shall be deemed to have selected an

 

 

45

Interest Period of one month’s
duration. Promptly following receipt of a Borrowing Request in accordance with this Section, the
Administrative Agent shall advise each Lender of the details thereof and of the amount of such
Lender’s Loan to be made as part of the requested Borrowing.

          SECTION 2.04. Funding of Borrowings. (a) Each Lender shall make each Loan to be made
by it hereunder on the Effective Date by wire transfer of immediately available funds by 12:30
p.m., New York City time, to the account of the Administrative Agent most recently designated by it
for such purpose by notice to the Lenders. The Administrative Agent will make such Loans available
to the Borrower by promptly crediting the amounts so received, in like funds, to the account
designated by the Borrower in the Borrowing Request.

          (b) Unless the Administrative Agent shall have received notice from a Lender prior to the
Effective Date that such Lender will not make available to the Administrative Agent such Lender’s
share of such Borrowing, the Administrative Agent may assume that such Lender has made such share
available on such date in accordance with paragraph (a) of this Section and may, in reliance upon
such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender
has not in fact made its share of the applicable Borrowing available to the Administrative Agent,
then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent
forthwith on demand such corresponding amount with interest thereon, for each day from and
including the date such amount is made available to the Borrower to but excluding the date of
payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the Federal
Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation or (ii) in the case of the Borrower, the interest rate
applicable to ABR Loans. If such Lender pays such amount to the Administrative Agent, then such
amount shall constitute such Lender’s Loan included in such Borrowing. It is agreed that no
payment by the Borrower under this paragraph will be subject to any break-funding payment under
Section 2.12.

          SECTION 2.05. Interest Elections. (a) Each Borrowing initially shall be of the Type
specified in the applicable Borrowing Request and, in the case of a Eurodollar Borrowing, shall
have an initial Interest Period as specified in such Borrowing Request. Thereafter, the Borrower
may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the
case of a Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in this
Section. The Borrower may elect different options with respect to different portions of the
affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders
holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be
considered a separate Borrowing.

          (b) To make an election pursuant to this Section, the Borrower shall notify the Administrative
Agent of such election by telephone (a) in the case of a Eurodollar Borrowing, not later than 3:00
p.m., New York City time, three Business Days before the date of the proposed Borrowing or (b) in
the case of an ABR Borrowing, not

 

 

46

later than 10:30 a.m., New York City time, on the date of the
proposed Borrowing. Each such telephonic Interest Election Request shall be irrevocable and shall
be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written
Interest Election Request signed by the Borrower.

          (c) Each telephonic and written Interest Election Request shall specify the following
information in compliance with Section 2.02:

     (i) the Borrowing to which such Interest Election Request applies and, if different
options are being elected with respect to different portions thereof, the portions thereof
to be allocated to each resulting Borrowing (in which case the
information to be specified pursuant to clauses (iii) and (iv) below shall be
specified for each resulting Borrowing);

     (ii) the effective date of the election made pursuant to such Interest Election
Request, which shall be a Business Day;

     (iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing; and

     (iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term “Interest Period”.

If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an
Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one
month’s duration.

          (d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall
advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.

          (e) If the Borrower fails to deliver a timely Interest Election Request with respect to a
Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then, unless such
Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be
converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if an Event of
Default has occurred and is continuing and the Administrative Agent, at the request of the Majority
Lenders, so notifies the Borrower, then, so long as an Event of Default is continuing (i) no
outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii) unless
repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the Interest
Period applicable thereto.

          SECTION 2.06. Repayment of Loans; Evidence of Debt. (a) The Borrower hereby
unconditionally promises to pay to the Administrative Agent for the account of each Lender the then
unpaid principal amount of each Loan on the Maturity Date.

 

 

47

          (b) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the Indebtedness of the Borrower to such Lender resulting from each Loan made or held by
such Lender, including the amounts of principal and interest payable and paid to such Lender from
time to time hereunder.

          (c) The Administrative Agent shall maintain accounts in which it shall record (i) the amount
of each Loan made hereunder, the Type thereof and the Interest Period applicable thereto, (ii) the
amount of any principal or interest due and payable or to become due and payable from the Borrower
to each Lender hereunder and (iii) the
amount of any sum received by the Administrative Agent hereunder for the account of the
Lenders and each Lender’s share thereof.

          (d) The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this
Section shall be prima facie evidence of the existence and amounts of the
obligations recorded therein; provided that the failure of any Lender or the Administrative
Agent to maintain such accounts or any error therein (including any failure to record the making or
repayment of any Loan) shall not in any manner affect the obligation of the Borrower to repay the
Loans in accordance with the terms of this Agreement or prevent the Borrower’s obligations in
respect of Loans from being discharged to the extent of amounts actually paid in respect thereof.

          (e) Any Lender may request that Loans made by it be evidenced by a promissory note. In such
event, the Borrower shall prepare, execute and deliver to such Lender a promissory note payable to
the order of such Lender (or, if requested by such Lender, to such Lender and its registered
assigns) in substantially the form set forth in Exhibit C hereto. Thereafter, the Loans evidenced
by such promissory note and interest thereon shall at all times (including after assignment
pursuant to Section 10.04) be represented by one or more promissory notes in such form payable to
the order of the payee named therein (or, if such promissory note is a registered note, to such
payee and its registered assigns).

          SECTION 2.07. Prepayment of Loans. (a) The Borrower shall have the right at any time
and from time to time after the date that is one year after the Effective Date to voluntarily
prepay any Borrowing in whole or in part, subject to paragraph (c) of this Section and Section
2.08(b). No prepayment may be made under this paragraph (a) at any time prior to the date that is
one year after the Effective Date.

          (b) The Borrower shall also offer to prepay Borrowings in accordance with the requirements of
Sections 5.06 and 5.08.

          (c) In the case of a prepayment of a Borrowing under paragraph (a), the Borrower shall notify
the Administrative Agent by telephone (confirmed by telecopy) of any prepayment hereunder (i) in
the case of prepayment of a Eurodollar Borrowing, not later than 3:00 p.m., New York City time,
three Business Days before the date of prepayment and (ii) in the case of prepayment of an ABR
Borrowing, not later than 11:00 a.m., New York City time, one Business Day before the date of
prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the
principal

 

 

48

amount of each Borrowing or portion thereof to be prepaid, provided that a notice of
prepayment may be conditioned upon the effectiveness of other credit facilities, in which case such
notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the
specified effective date) if such condition is not satisfied. Promptly following receipt of any
such notice relating to a Borrowing, the Administrative Agent shall advise the Lenders of the
contents thereof. Each partial prepayment of any Borrowing under clause (a) shall be in an amount
that would be permitted in the case of an advance of a Borrowing of the same Type as provided in
Section 2.02. Each prepayment of a Borrowing shall be applied ratably to the Loans included in the
prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the extent required by
Section 2.09.

          SECTION 2.08. Fees. (a) The Borrower agrees to pay to the Administrative Agent, for
its own account, fees in the amounts and at the times separately agreed upon between the Borrower
and the Administrative Agent.

          (b) All prepayments of Loans made pursuant to Section 2.07(a) on or after the first date on
which such prepayments are permitted to be made under such paragraph (a) but on or prior to the
second anniversary of the Effective Date will be accompanied by a prepayment fee equal to 1.00% of
the aggregate principal amount of such prepayment. Such fee shall be paid by the Borrower to the
Administrative Agent, for the accounts of the Lenders, on the date of any such prepayment.

          (c) All fees and other amounts payable hereunder shall be paid on the dates due, in
immediately available funds, to the Administrative Agent for distribution, where applicable, to the
Lenders. Fees paid shall not be refundable under any circumstances.

          SECTION 2.09. Interest. (a) The Loans comprising each ABR Borrowing shall bear
interest at the Alternate Base Rate plus 2.50% per annum.

          (b) The Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO
Rate for the Interest Period in effect for such Borrowing plus 3.50% per annum.

          (c) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or
other amount payable by the Borrower hereunder is not paid when due, whether at stated maturity,
upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before
judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2.00% plus
the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section
or (ii) in the case of any other amount, 2.00% plus the rate applicable to ABR Loans as provided in
paragraph (a) of this Section.

          (d) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan; provided that (i) interest accrued pursuant to paragraph (c) of this Section
shall be payable on demand, (ii) in the event of any

 

 

49

repayment or prepayment of any Loan, accrued interest on the principal amount repaid or
prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any
conversion of any Eurodollar Loan prior to the end of the current Interest Period therefor, accrued
interest on such Loan shall be payable on the effective date of such conversion.

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

          SECTION 2.10. Alternate Rate of Interest. If prior to the commencement of any
Interest Period for a Eurodollar Borrowing:

          (a) the Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO
Rate for such Interest Period; or

          (b) the Administrative Agent is advised by the Majority Lenders that the Adjusted LIBO Rate
for such Interest Period will not adequately and fairly reflect the cost to such Lenders (or any
Lender) of making or maintaining their Loans (or its Loan) included in such Borrowing for such
Interest Period;

then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by
telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent
notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer
exist, (i) any Interest Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective and (ii) if any
Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR
Borrowing. Each determination by the Administrative Agent hereunder shall be conclusive absent
manifest error.

          SECTION 2.11. Increased Costs. (a) If any Change in Law shall:

          (i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit extended by,
any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate); or

          (ii) impose on any Lender or the London interbank market any other condition (other
than Taxes) affecting this Agreement or Eurodollar Loans made by such Lender;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Loan by an amount deemed by such Lender to be

 

 

50

material, then the Borrower will pay to such Lender such additional amount or amounts as will
compensate such Lender for such additional costs incurred or reduction suffered.

          (b) If any Lender determines that any Change in Law regarding capital requirements has had or
would have the effect of reducing the rate of return on such Lender’s capital or on the capital of
such Lender’s holding company, if any, in each case by an amount deemed by such Lender to be
material, as a consequence of this Agreement or the Loans made by such Lender, to a level below
that which such Lender or such Lender’s holding company would have achieved but for such Change in
Law (taking into consideration such Lender’s policies and the policies of such Lender’s holding
company with respect to capital adequacy), then from time to time the Borrower will pay to such
Lender such additional amount or amounts as will compensate such Lender or such Lender’s holding
company for any such reduction suffered.

          (c) A certificate of a Lender setting forth the amount or amounts necessary to compensate such
Lender or its holding company, as the case may be, as specified in paragraph (a) or (b) of this
Section shall be delivered to the Borrower. The Borrower shall pay such Lender the amount shown as
due on any such certificate within 10 days after receipt thereof, unless such amount is being
contested by the Borrower in good faith.

          (d) Failure or delay on the part of any Lender to demand compensation pursuant to this Section
shall not constitute a waiver of such Lender’s right to demand such compensation; provided
that the Borrower shall not be required to compensate a Lender pursuant to this Section for any
increased costs or reductions incurred more than 180 days prior to the date that such Lender
notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of
such Lender’s intention to claim compensation therefor; provided further that, if
the Change in Law giving rise to such increased costs or reductions is retroactive, then the
180-day period referred to above shall be extended to include the period of retroactive effect
thereof.

          SECTION 2.12. Break Funding Payments. In the event of (a) the payment of any
principal of any Eurodollar Loan other than on the last day of an Interest Period applicable
thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan
other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow,
continue or prepay any Eurodollar Loan, or to convert any Loan to a Eurodollar Loan, on the date
specified in any notice delivered pursuant hereto, or (d) the assignment of any Eurodollar Loan
other than on the last day of the Interest Period applicable thereto as a result of a request by
the Borrower pursuant to Section 2.15, then, in any such event, the Borrower shall compensate each
Lender for the loss, cost and expense attributable to such event. In the case of a Eurodollar
Loan, such loss, cost or expense to any Lender shall be deemed to include an amount determined by
such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on the
principal amount of such Loan had such event not occurred, at the Adjusted LIBO Rate that would
have been applicable to such Loan, for the period from the date of such event to the last day of
the then current Interest Period therefor (or, in the case of a failure to borrow, convert or
continue, for the period that would have been the Interest Period for

 

 

51

such Loan), over (ii) the amount of interest which would accrue on such principal amount for
such period at the interest rate which such Lender would bid were it to bid, at the commencement of
such period, for dollar deposits of a comparable amount and period from other banks in the
eurodollar market. A certificate of any Lender setting forth any amount or amounts that such
Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower. The
Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after
receipt thereof, unless such amount is being contested by the Borrower in good faith.

          SECTION 2.13. Taxes. (a) Any and all payments by or on account of any obligation of
the Borrower or any other Credit Party hereunder or under any other Credit Document shall be made
free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided
that if the Borrower or any other Credit Party shall be required to deduct any Indemnified Taxes or
Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions of such Taxes (including deductions applicable to additional
sums payable under this Section) the Administrative Agent or Lender (as the case may be) receives
an amount equal to the sum it would have received had no such deductions been made (and the
Borrower shall pay or cause such Credit Party to pay such increased amount), (ii) the Borrower or
such other Credit Party shall make such deductions and (iii) the Borrower or such other Credit
Party shall pay the full amount deducted to the relevant Governmental Authority in accordance with
applicable law.

          (b) The Borrower shall indemnify the Administrative Agent and each Lender, within 10 days
after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by
the Administrative Agent or such Lender, as the case may be, on or with respect to any payment by
or on account of any obligation of the Borrower or any other Credit Party hereunder or under any
other Credit Document (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) and any penalties, interest and reasonable
out-of-pocket expenses arising therefrom or with respect thereto, whether or not such Indemnified
Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental
Authority. A certificate as to the amount of such payment or liability delivered to the Borrower
by a Lender, or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be
conclusive absent manifest error.

          (c) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.

          (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the
Borrower or any other Credit Party to a Governmental Authority, the Borrower shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by such Governmental
Authority evidencing such payment, a copy of the return reporting such payment or other evidence of
such payment reasonably satisfactory to the Administrative Agent.

 

 

52

          (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time such Foreign Lender first becomes a
party to this Agreement and at the time or times prescribed by applicable law, such properly
completed and executed documentation prescribed by applicable law or reasonably requested by the
Borrower as will permit such payments to be made without withholding or at a reduced rate;
provided that such Foreign Lender has received written notice from the Borrower advising it
of the availability of such exemption or reduction and supplying all applicable documentation.

          SECTION 2.14. Payments Generally; Pro Rata Treatment; Sharing of Setoffs. (a) Except
as required or permitted under Section 2.07, 2.11, 2.12, 2.13, 2.15 or 10.03, each Borrowing, each
payment or prepayment of principal of any Borrowing, each payment of interest on the Loans, each
payment of fees and each refinancing of any Borrowing with a Borrowing of any Type, shall be
allocated pro rata among the Lenders in accordance with the respective principal amounts of their
outstanding Loans. Each Lender agrees that in computing such Lender’s portion of any Borrowing to
be made hereunder, the Administrative Agent may, in its discretion, round each Lender’s percentage
of such Borrowing to the next higher or lower whole dollar amount.

          (b) The Borrower shall make each payment required to be made by it hereunder (whether of
principal, interest or fees, or of amounts payable under Section 2.11, 2.12 or 2.13 or otherwise)
prior to 1:00 p.m., New York City time, on the date when due, in immediately available funds,
without setoff, counterclaim or other deduction. Any amounts received after such time on any date
may, in the discretion of the Administrative Agent, be deemed to have been received on the next
succeeding Business Day for purposes of calculating interest thereon. All such payments shall be
made to the Administrative Agent to the applicable account specified by the Administrative Agent
for the account of the applicable Lenders or, in any such case, to such other account as the
Administrative Agent shall from time to time specify in a notice delivered to the Borrower, except
that payments pursuant to Sections 2.11, 2.12, 2.13, 2.15 and 10.03 shall be made directly to the
Persons entitled thereto. The Administrative Agent shall distribute any such payments received by
it for the account of any other Person in appropriate ratable shares to the appropriate recipient
or recipients promptly following receipt thereof. If any payment hereunder shall be due on a day
that is not a Business Day, the date for payment shall be extended to the next succeeding Business
Day and, in the case of any payment accruing interest, interest thereon shall be payable for the
period of such extension. All payments hereunder shall be made in dollars. Any payment required
to be made by the Administrative Agent hereunder shall be deemed to have been made by the time
required if the Administrative Agent shall, at or before such time, have taken the necessary steps
to make such payment in accordance with the regulations or operating procedures of the clearing or
settlement system used by the Administrative Agent to make such payment.

          (c) If at any time insufficient funds are received by and available to the Administrative
Agent to pay fully all amounts of principal, interest and fees then due

 

 

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hereunder, such funds shall be applied (i) first, towards payment of interest and fees then
due hereunder, ratably among the parties entitled thereto in accordance with the amounts of
interest and fees then due to such parties, and (ii) second, towards payment of principal then due
hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal
then due to such parties.

          (d) If any Lender shall, by exercising any right of setoff or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its Loans resulting in such
Lender receiving payment of a greater proportion of the aggregate amount of its Loans and accrued
interest thereon than the proportion received by any other Lender, then the Lender receiving such
greater proportion shall purchase (for cash at face value) participations in the Loans of other
Lenders to the extent necessary so that the benefit of all such payments shall be shared by the
Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on
their respective Loans. If any participations are purchased pursuant to the preceding sentence and
all or any portion of the payments giving rise thereto are recovered, such participations shall be
rescinded and the purchase price restored to the extent of such recovery, without interest. The
provisions of this paragraph shall not be construed to apply to any payment made by the Borrower
pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a
Lender as consideration for the assignment of or sale of a participation in any of its Loans to any
assignee or participant, other than to the Borrower or any Affiliate thereof (as to which the
provisions of this paragraph shall apply). The Borrower consents to the foregoing and agrees, to
the extent it may effectively do so under applicable law and under this Agreement, that any Lender
acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower
rights of setoff and counterclaim with respect to such participation as fully as if such Lender
were a direct creditor of the Borrower in the amount of such participation.

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

          (f) If any Lender shall fail to make any payment required to be made by it hereunder for the
account of the Administrative Agent or any Lender, then the Administrative Agent may, in its
discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received
by the Administrative Agent for the account of such Lender to satisfy such Lender’s obligations in
respect of such payment until all such unsatisfied obligations are fully paid.

 

 

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          SECTION 2.15. Mitigation Obligations; Replacement of Lenders. (a) If any Lender
requests compensation under Section 2.11 or if the Borrower is required to pay any additional
amount to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 2.13, then such Lender shall use reasonable efforts to designate a different lending office
for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to
another of its offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.11 or
2.13, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed
cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby
agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such
designation or assignment.

          (b) If any Lender requests compensation under Section 2.11, or if the Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 2.13, or if any Lender shall become the subject of any insolvency or similar
proceeding or filing or default in its obligation to fund Loans hereunder, then the Borrower may,
at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require
such Lender to assign and delegate, without recourse (in accordance with and subject to the
restrictions contained in Section 10.04), all its interests, rights and obligations under this
Agreement to an assignee that shall assume such obligations (which assignee may be another Lender,
if a Lender accepts such assignment); provided that (i) the Borrower shall have received
the prior written consent of the Administrative Agent, which consent shall not unreasonably be
withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans, accrued fees and all other amounts payable to it hereunder, from the
assignee or the Borrower, as the case may be, and (iii) in the case of any such assignment
resulting from a claim for compensation under Section 2.11 or payments required to be made pursuant
to Section 2.13, such assignment will result in a reduction in such compensation or payments.

ARTICLE III

Representations and Warranties

          The Borrower represents and warrants to the Administrative Agent and the Lenders that:

          SECTION 3.01. Organization; Powers. The Borrower and each of the other Credit Parties
is duly organized, validly existing and in good standing under the laws of the jurisdiction of its
organization, has all requisite power and authority to carry on its business as now conducted and,
except where the failure to do so, individually or in the aggregate, would not be reasonably likely
to result in a Material Adverse Change, is qualified to do business, and is in good standing, in
every jurisdiction where such qualification is required. Each Subsidiary of the Borrower other
than the Credit Parties is duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization, has all requisite power and authority to carry on its
business as now

 

 

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conducted and is qualified to do business, and is in good standing, in every jurisdiction
where such qualification is required, except for failures that, individually or in the aggregate,
would not be materially likely to result in a Material Adverse Change.

          SECTION 3.02. Authorization; Enforceability. The Transactions to be entered into by
each Credit Party are within such Credit Party’s powers and have been duly authorized. This
Agreement has been duly executed and delivered by the Borrower and constitutes, and each other
Credit Document to which any Credit Party is to be a party, when executed and delivered by such
Credit Party, will constitute, a legal, valid and binding obligation of the Borrower or such Credit
Party, as the case may be, enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights
generally and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law.

          SECTION 3.03. Governmental Approvals; No Conflicts. (a) Except to the extent that no
Material Adverse Change would be materially likely to result, the Transactions (i) do not require
any consent or approval of, registration or filing with, or any other action by, any Governmental
Authority, except such as are required to perfect Liens created under the Security Documents and
such as have been obtained or made and are in full force and effect, (ii) will not violate any
applicable law or regulation or the charter, by-laws or other organizational documents of the
Borrower or any of the Subsidiaries or any order of any Governmental Authority, (iii) will not
violate or result in a default under any indenture, agreement or other instrument binding upon the
Borrower or any of the Subsidiaries or any of their assets, and (iv) will not result in the
creation or imposition of any Lien on any asset of the Borrower or any of the Subsidiaries, except
Liens created under the Credit Documents.

          (b) The incurrence of each Loan, each Guarantee thereof under the Credit Documents and each
Lien securing any of the Obligations, is permitted under the Junior Lien Indenture, and the Loans
and Guarantees thereof under the Credit Documents constitute Designated Junior Obligations under
the Lien Subordination and Intercreditor Agreement.

          SECTION 3.04. Financial Statements; No Material Adverse Change. (a) The Borrower has heretofore furnished to the Lenders its consolidated balance sheet and
statements of income, stockholders’ equity and cash flows as of and for the fiscal year ended
December 31, 2004. Such financial statements present fairly, in all material respects, the
consolidated financial position and consolidated results of operations and cash flows of the
Borrower and its Consolidated Subsidiaries as of such date and for such fiscal year in accordance
with GAAP.

          (b) Except as disclosed in the Disclosure Documents, since December 31, 2004, there has been
no event or condition that constitutes or would be materially likely to result in a Material
Adverse Change, it being agreed that a reduction in any rating relating to the Borrower issued by
any rating agency shall not, in and of itself, be an event or condition that constitutes or would
be materially likely to result in a Material

 

 

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Adverse Change (but that events or conditions underlying or resulting from any such reduction
may constitute or be materially likely to result in a Material Adverse Change).

          SECTION 3.05. Litigation and Environmental Matters. (a) Except as set forth in the
Disclosure Documents, there are no actions, suits or proceedings by or before any arbitrator or
Governmental Authority pending or, to the knowledge of the Borrower, threatened against or
affecting the Borrower or any of the Subsidiaries (i) as to which there is a reasonable possibility
of an adverse determination and that if adversely determined would be materially likely,
individually or in the aggregate, to result in a Material Adverse Change or (ii) that involve the
Credit Documents or the Transactions.

          (b) Except as set forth in the Disclosure Documents, and except with respect to matters that,
individually or in the aggregate, would not be materially likely to result in a Material Adverse
Change, neither the Borrower nor any of the Subsidiaries (i) has failed to comply with any
Environmental Law or to obtain, maintain or comply with any permit, license or other approval
required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii)
has received notice of any claim with respect to any Environmental Liability or (iv) knows of any
basis for any Environmental Liability.

          SECTION 3.06. Compliance with Laws and Agreements. The Borrower and each of the
Subsidiaries is in compliance with all laws, regulations and orders of any Governmental Authority
applicable to it or its property and all indentures, agreements and other instruments binding upon
it or its property, except where the failure to be in compliance, individually or in the aggregate,
would not be materially likely to result in a Material Adverse Change. No Event of Default has
occurred and is continuing.

          SECTION 3.07. Investment and Holding Company Status. Neither the Borrower nor any of
the Subsidiaries is (a) an “investment company” as defined in, or subject to regulation under, the
Investment Company Act of 1940, as amended, or (b) a “holding company” as defined in, or subject to
regulation under, the Public Utility Holding Company Act of 1935, as amended.

          SECTION 3.08. ERISA and Canadian Pension Plans. (a) Except as disclosed in the
Disclosure Documents, no ERISA Event has occurred or is reasonably expected to occur that, when
taken together with all other ERISA Events that have occurred or are reasonably expected to occur,
would be materially likely to result in a Material Adverse Change.

          (b) Except as would not be materially likely to result in a Material Adverse Change, (i) the
Canadian Pension Plans are duly registered under the Income Tax Act (Canada) and all other
applicable laws which require registration and no event has occurred which is reasonably likely to
cause the loss of such registered status; (ii) all material obligations of each Credit Party
(including fiduciary, funding, investment and administration obligations) required to be performed
in connection with the Canadian Pension Plans and the funding agreements therefor have been
performed in a timely fashion; (iii) to the knowledge of the Credit Parties there have been no
improper

 

 

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withdrawals of the assets of the Canadian Pension Plans or the Canadian Benefit Plans; (iv)
there are no outstanding material disputes concerning the assets of the Canadian Pension Plans or
the Canadian Benefit Plans; and (v) each of the Canadian Pension Plans is being funded in
accordance with the actuarial valuation reports last filed with the applicable Governmental
Authorities and which are consistent with generally accepted actuarial principles.

          SECTION 3.09. Disclosure. Neither the Information Memorandum nor the reports,
financial statements, certificates or other written information referred to in Section 3.04 or
delivered after the date hereof by or on behalf of any Credit Party to the Administrative Agent,
the Collateral Agent or any Lender pursuant to Section 5.02 (taken together with all other
information so furnished and as modified or supplemented by other information so furnished)
contained or will contain, in each case as of the date delivered, any material misstatement of fact
or omitted or will omit to state, in each case as of the date delivered, any material fact
necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading; provided that, with respect to projected financial information or
other forward looking information, the Borrower represents only that such information was prepared
in good faith based upon assumptions believed to be reasonable at the time.

          SECTION 3.10. Security Interests. (a) Upon the execution and delivery by the
Borrower of a Collateral Agreement Designation Notice in accordance with the terms of the
Collateral Agreement, each of the Collateral Agreement and the Canadian Security Agreements will be
effective to create in favor of the Collateral Agent for the benefit of the Secured Parties, as
security for the Obligations, a valid and enforceable security interest in the Collateral, to the
extent contemplated by the Collateral Agreement or the Canadian Security Agreements, as the case
may be, and (i) as a result of the delivery of the Collateral constituting certificated securities
(as defined in the Uniform Commercial Code) to the Collateral Agent (or its sub-agent for
perfection) thereunder, together with instruments of transfer duly endorsed in blank, the
Collateral Agreement will create, to the extent contemplated by the Collateral Agreement, a
perfected security interest in all right, title and interest of the Grantors in such certificated
securities to the extent perfection is governed by the Uniform Commercial Code as in effect in any
applicable jurisdiction, subject to no other Lien other than Liens permitted under Section 5.09
that take priority over security interests in certificated securities perfected by the possession
of such securities under the Uniform Commercial Code as in effect in the applicable jurisdiction,
and (ii) as a result of the filing of financing statements in appropriate form, and the making of
any other applicable registrations, in the offices specified in the Perfection Certificate, the
Collateral Agreement and the Canadian Security Agreements will create a perfected security interest
(or hypothec, as applicable) in all right, title and interest of the Grantors in the remaining
Collateral to the extent perfection can be obtained by filing Uniform Commercial Code financing
statements and making such other applicable filings and registrations in such jurisdictions,
subject to no other Lien other than Liens permitted under Section 5.09. The exclusion of the
Consent Assets from the Collateral does not materially reduce the aggregate value of the
Collateral.

 

 

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          (b) The Mortgage, upon execution and delivery by the parties thereto, will create in favor of
the Collateral Agent, for the benefit of the Secured Parties, a legal, valid and enforceable Lien
on all the mortgagor’s right, title and interest in and to the Mortgaged Properties subject thereto
and the proceeds thereof, and when the Mortgage has been filed or registered in the county
specified in Schedule 3.10(b), the Mortgage will create perfected Liens on all right, title and
interest of the mortgagor in the Mortgaged Properties and the proceeds thereof, prior and superior
in right to Liens in favor of any other Person (other than as provided in the Lien Subordination
and Intercreditor Agreement and other than Liens or other encumbrances for which exceptions are
taken in the policies of title insurance delivered in respect of the Mortgaged Properties on or
prior to the Effective Date and Liens permitted under Section 5.09).

          (c) As a result of (i) the recordation of the Collateral Agreement or a memorandum of such
Agreement with the United States Patent and Trademark Office and (ii) the recordation of the
Canadian Security Agreements with the Canadian Intellectual Property Office, the Collateral
Agreement and the Canadian Security Agreements, as the case may be, will create in favor of the
Collateral Agent, for the benefit of the Secured Parties, as security for the Obligations, a
perfected Lien on all right, title and interest of the Grantors in the Material Intellectual
Property in which a security interest may be perfected by such recordation in the United States
Patent and Trademark Office or the Canadian Intellectual Property Office, as the case may be, in
each case (i) prior and superior in right to any other Person and (ii) subject to no other Lien
other than, in the case of (i) and (ii), as provided in the Lien Subordination and Intercreditor
Agreement and other than Liens permitted under Section 5.09 (it being understood that subsequent
recordings in the United States Patent and Trademark Office or the Canadian Intellectual Property
Office, as the case may be, may be necessary to perfect a Lien on registered trademarks and
trademark applications acquired by the Grantors after the Effective Date). As of the Effective
Date, Schedule 3.10(c) sets forth all the Material Intellectual Property.

          (d) As a result of the recordation of the Collateral Agreement with the Federal Aviation
Administration, the Collateral Agreement will create in favor of the Collateral Agent, for the
benefit of the Secured Parties, as security for the Obligations, a perfected Lien on all right,
title and interest of the Grantors in the Aircraft Collateral (as defined in the Collateral
Agreement) in which a security interest may be perfected by such recordation with the Federal
Aviation Administration, in each case, other than as provided in the Lien Subordination and
Intercreditor Agreement, prior and superior in right to any other Person and subject to no other
Lien other than Liens permitted under Section 5.09.

          (e) None of the Perfection Certificate or any other written information relating to the
Collateral delivered after the date hereof by or on behalf of any Credit Party to the
Administrative Agent, the Collateral Agent or any Lender pursuant to any provision of any Credit
Document is or will be incorrect when delivered in any respect material to the rights or interests
of the Lenders under the Credit Documents.

 

 

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          SECTION 3.11. Use of Proceeds. The proceeds of the Loans will be used only for the
purposes referred to in the preamble to this Agreement. No part of the proceeds of any Loan will
be used, whether directly or indirectly, for any purpose that entails a violation of any of the
Regulations of the Board, including Regulations T, U and X.

ARTICLE IV

Conditions

          SECTION 4.01. Effective Date. The obligations of the Lenders to make Loans hereunder
shall not become effective until the date on which each of the following conditions is satisfied
(or waived or deferred in accordance with Section 10.02 or the penultimate paragraph of this
Section 4.01):

          (a) The Administrative Agent (or its counsel) shall have received from the Borrower, the
Administrative Agent and each Lender either (i) counterparts of this Agreement signed on behalf of
each such party or (ii) written evidence satisfactory to the Administrative Agent (which may
include telecopy transmission of a signed signature page of this Agreement) that each such party
has signed a counterpart of this Agreement.

          (b) The Administrative Agent shall have received favorable written opinions (addressed to the
Administrative Agent and the Lenders and dated the Effective Date) of (i) Covington & Burling,
counsel for the Borrower, substantially in the form of Exhibit E-1, and (ii) the General Counsel,
the Associate General Counsel or an Assistant General Counsel of the Borrower, substantially in the
form of Exhibit E-2, and covering such other matters relating to the Credit Parties, the Credit
Documents or the Transactions as the Administrative Agent or the Majority Lenders shall reasonably
request.

          (c) The Administrative Agent shall have received such documents and certificates as the
Administrative Agent or its counsel may reasonably request relating to the organization, existence
and good standing of each Credit Party, the authorization by the Credit Parties of the Transactions
and any other legal matters relating to the Borrower, the other Credit Parties, the Credit
Documents or the Transactions, all in form and substance reasonably satisfactory to the
Administrative Agent and its counsel.

          (d) The commitments under the ABL Facilities Agreement and the Deposit-Funded Agreement shall
have terminated, all loans thereunder shall have been repaid, all other amounts outstanding or
accrued for the accounts of or owing to the lenders thereunder (including the repayment or
extension premium provided for in the ABL Facilities Agreement) and all letters of credit
thereunder (other than the “Existing Letters of Credit” as defined in the First Lien Agreement)
shall have been canceled or returned. The European Facilities Agreement shall have become
effective with a maturity not sooner than April 30, 2010. The amendment and restatement of the
European Guarantee and Collateral Agreement shall have become effective in substantially the form
attached hereto as Exhibit I.

 

 

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          (e) The Obligations shall have been designated by the Borrower as, and shall be, “Designated
Junior Obligations” under the Lien Subordination and Intercreditor Agreement.

          (f) The First Lien Agreement and the Second Lien Agreement shall have become effective or
shall concurrently become effective in substantially the forms thereof most recently posted to
IntraLinks prior to the date hereof with only such changes thereto as shall not be adverse to the
Lenders in any material respect and shall have been approved by the Administrative Agent. All
conditions to the effectiveness of the First Lien Agreement and the Second Lien Agreement shall
have been satisfied, and the First Lien Agreement and the Second Lien Agreement shall have become
effective.

          (g) The representations and warranties set forth in Article III and in the other Credit
Documents (insofar as the representations and warranties in such other Credit Documents relate to
the transactions provided for herein or to the Collateral securing the Obligations) shall be true
and correct in all material respects on the Effective Date and the Administrative Agent shall have
received a certificate signed by a Financial Officer to the effect that the representations and
warranties set forth in Article III shall be true and correct in all material respects on the
Effective Date.

          (h) The Borrower and the other Credit Parties shall be in compliance with all the terms and
provisions set forth herein and in the other Credit Documents in all material respects on their
part to be observed or performed, and at the time of and immediately after the Effective Date, no
Default shall have occurred and be continuing, and the Administrative Agent shall have received a
certificate signed by a Financial Officer to that effect.

          (i) The Administrative Agent shall have received all fees and other amounts due and payable on
or prior to the Effective Date, including, to the extent invoiced, reimbursement or payment of all
out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder.

          (j) The Administrative Agent shall have received (i) a completed Perfection Certificate dated
the Effective Date and signed by a Financial Officer, together with all attachments contemplated
thereby, and (ii) the results of a search of the Uniform Commercial Code (or equivalent) filings or
registrations made with respect to the Credit Parties in the jurisdictions referred to in paragraph
1 of the Perfection Certificate and copies of the financing statements (or similar documents)
disclosed by such search.

          (k) The Obligations shall have been designated by the Borrower as, and shall be, “Designated
Pari Passu Obligations” under the Collateral Agreement, and the Administrative Agent shall have
received a copy of such Collateral Agreement Designation Notice.

          (l) The Collateral Agent (or its sub-agent for perfection) shall have received certificates
representing all Equity Interests (other than any uncertificated Equity

 

 

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Interests) pledged pursuant to the Collateral Agreement, together with undated stock powers or
other instruments of transfer with respect thereto endorsed in blank.

          (m) All Uniform Commercial Code financing statements or other personal property security
filings and recordations with the United States Patent and Trademark Office, the Canadian
Intellectual Property Office and the Federal Aviation Administration required by law or reasonably
requested by the Collateral Agent to be filed or recorded to perfect the Liens intended to be
created on the Collateral (to the extent such Liens may be perfected by filings under the Uniform
Commercial Code as in effect in any applicable jurisdiction or by filings or registrations under
applicable Canadian personal property security legislation or by filings with the United States
Patent and Trademark Office or the Federal Aviation Administration) shall have been filed or
recorded or delivered to the Collateral Agent for filing or recording.

          (n) The Collateral Agent shall have received (i) counterparts of a Mortgage with respect to
the Mortgaged Property, duly executed and delivered by the record owner of such Mortgaged Property,
(ii) a policy or policies of title insurance issued by a nationally recognized title insurance
company insuring the Lien of such Mortgage as a valid first Lien on the Mortgaged Property
described therein, free of any other Liens (other than Liens referred to in such policies of title
insurance and acceptable to the Administrative Agent and Liens permitted by Section 6.02), together
with such endorsements as the Collateral Agent or the Majority Lenders may reasonably request, and
(iii) such legal opinions and other documents as shall reasonably have been requested by the
Collateral Agent with respect to the Mortgage or Mortgaged Property.

          (o) The Administrative Agent shall have received from each “Deposit Account Institution” that
is required to be party to a “Lockbox Agreement” (as such terms are defined in the Collateral
Agreement) evidence that such agreement has been duly executed by all requisite parties and has
become effective.

          The Administrative Agent may enter into agreements with the Borrower to grant extensions of
time for the perfection of security interests in or the delivery of surveys, title insurance, legal
opinions or other documents with respect to particular assets where it determines that perfection
cannot be accomplished or such documents cannot be delivered without undue effort or expense by the
Effective Date or any later date on which they are required to be accomplished or delivered under
this Agreement or the Security Documents. Any failure of the Borrower to satisfy a requirement of
any such agreement by the date specified therein (or any later date to which the Administrative
Agent may agree) shall constitute a breach of the provision of this Agreement or the Security
Document under which the original requirement was applicable. Without limiting the foregoing, it
is anticipated that the actions listed on Schedule 4.01 will not have been completed by the
Effective Date, and the Borrower covenants and agrees that each of such actions will be completed
by the date specified for such action in such Schedule 4.01 (or any later date to which the
Administrative Agent may agree) and that the Borrower will comply with all of the undertakings set
forth in Schedule 4.01.

 

 

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          The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date in
writing, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the
obligations of the Lenders to make Loans hereunder shall not become effective unless each of the
foregoing conditions shall have been satisfied (or waived pursuant to Section 10.02) at or prior to
5:00 p.m., New York City time, on April 30, 2005 (and, in the event such conditions are not so
satisfied or waived, the Commitments shall terminate at such time).

ARTICLE V

Covenants

          Until the Commitments shall have expired or been terminated and the principal of and interest
on each Loan and all fees payable hereunder shall have been paid in full, the Borrower covenants
and agrees with the Administrative Agent and the Lenders that:

          SECTION 5.01. Payment of Loans. The Borrower shall promptly pay the principal of and
interest on the Loans on the dates and in the manner provided in this Agreement. Principal and
interest shall be considered paid on the date due if on such date the Administrative Agent receives
from the Borrower in accordance with this Agreement money sufficient to pay all principal and
interest then due.

          The Borrower shall pay interest on overdue principal at the rate specified therefor in this
Agreement, and it shall pay interest on overdue installments of interest at the same rate to the
extent lawful.

          SECTION 5.02. SEC Reports. Notwithstanding that the Borrower may not be subject to
the reporting requirements of Section 13 or 15(d) of the Exchange Act, the Borrower shall file with
the SEC and provide the Administrative Agent and the Lenders and prospective Lenders (upon request)
within 15 days after it files them with the SEC, copies of its annual report and the information,
documents and other reports that are specified in Sections 13 and 15(d) of the Exchange Act. In
addition, the Borrower shall furnish to the Administrative Agent and the Lenders, promptly upon
their becoming available, copies of the annual report to shareholders and any other information
provided by the Borrower to its public shareholders generally. The Borrower also shall provide
contemporaneously to the Administrative Agent and the Lenders such other information and documents
as the Borrower provides to the holders of the Junior Lien Notes.

          SECTION 5.03. Limitation on Indebtedness. (a) The Borrower shall not, and shall not
permit any Restricted Subsidiary to, Incur, directly or indirectly, any Indebtedness;
provided, however, that the Borrower or any Subsidiary Guarantor may Incur
Indebtedness if on the date of such Incurrence and after giving effect thereto and the application
of the proceeds therefrom the Consolidated Coverage Ratio would be greater than 2.0 to 1.0.

 

 

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          (b) Notwithstanding the foregoing paragraph (a), the Borrower and its Restricted Subsidiaries
may Incur the following Indebtedness:

          (i) Bank Indebtedness in an aggregate principal amount not to exceed the greater of
(A) $2,700,000,000, less the aggregate amount of all prepayments of principal applied to
permanently reduce any such Indebtedness in satisfaction of the Borrower’s obligations
under Section 5.06 and (B) the sum of (i) 60% of the book value of the inventory of the
Borrower and its Restricted Subsidiaries plus (ii) 80% of the book value of the accounts
receivable of the Borrower and its Restricted Subsidiaries (other than any accounts
receivable pledged, sold or otherwise transferred or encumbered by the Borrower or any
Restricted Subsidiary in connection with a Qualified Receivables Transaction), in each
case, as of the end of the most recent fiscal quarter for which financial statements have
been filed with the SEC; provided, however, that the amount of Indebtedness
that may be Incurred pursuant to this clause (i) shall be reduced by any amount of
Indebtedness Incurred and then outstanding pursuant to the election provision of clause
(x)(A)(2) below;

          (ii) Indebtedness of the Borrower owed to and held by any Restricted Subsidiary or
Indebtedness of a Restricted Subsidiary owed to and held by the Borrower or any Restricted
Subsidiary; provided, however, that any subsequent event that results in
any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any subsequent
transfer of any such Indebtedness (except to the Borrower or a Restricted Subsidiary) shall
be deemed, in each case, to constitute the Incurrence of such Indebtedness by the issuer
thereof;

          (iii) Indebtedness (A) represented by the Junior Lien Notes issued on the Indenture
Closing Date and the Guarantees related thereto, (B) outstanding on the Indenture Closing
Date (other than the Indebtedness described in clauses (i) and (ii) and (iii)(A) above),
and (C) consisting of Refinancing Indebtedness Incurred in respect of any Indebtedness
described in this clause (iii) (including Indebtedness that is Refinancing Indebtedness) or
the foregoing paragraph (a);

          (iv) (A) Indebtedness of a Restricted Subsidiary Incurred and outstanding on or prior
to the date on which such Restricted Subsidiary was acquired by the Borrower or a
Restricted Subsidiary (other than Indebtedness Incurred in contemplation of, in connection
with, as consideration in, or to provide all or any portion of the funds or credit support
utilized to consummate, the transaction or series of related transactions pursuant to which
such Restricted Subsidiary became a Subsidiary of or was otherwise acquired by the
Borrower); provided, however, that on the date that such Restricted
Subsidiary is acquired by the Borrower, (1) the Borrower would have been able to Incur
$1.00 of additional Indebtedness pursuant to the foregoing paragraph (a) after giving
effect to the Incurrence of such Indebtedness pursuant to this clause (iv) or (2) the
Consolidated Coverage Ratio immediately after giving effect to such Incurrence and
acquisition would be greater than such ratio immediately prior to such transaction and (B)
Refinancing Indebtedness Incurred by a Restricted Subsidiary

 

 

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in respect of Indebtedness Incurred by such Restricted Subsidiary pursuant to this
clause (iv);

          (v) Indebtedness (A) in respect of performance bonds, bankers’ acceptances, letters of
credit and surety or appeal bonds entered into by the Borrower or any Restricted Subsidiary
in the ordinary course of business, and (B) Hedging Obligations entered into in the
ordinary course of business to hedge risks with respect to the Borrower’s or a Restricted
Subsidiary’s interest rate, currency or raw materials pricing exposure and not entered into
for speculative purposes;

          (vi) Purchase Money Indebtedness, Capitalized Lease Obligations and Attributable Debt
and Refinancing Indebtedness in respect thereof in an aggregate principal amount on the
date of Incurrence that, when added to all other Indebtedness Incurred pursuant to this
clause (vi) and then outstanding, will not exceed the greater of (A) $600,000,000 and (B)
5.0% of Consolidated assets of the Borrower as of the end of the most recent fiscal quarter
for which financial statements have been filed with the SEC; provided,
however, that the aggregate principal amount of Capitalized Lease Obligations and
Attributable Debt (and Refinancing Indebtedness in respect thereof) Incurred pursuant to
this clause (vi) and then outstanding in respect of Sale/Leaseback Transactions relating to
Collateral may not exceed $100,000,000.

          (vii) Indebtedness Incurred by a Receivables Entity in a Qualified Receivables
Transaction;

          (viii) Indebtedness arising from the honoring by a bank or other financial institution
of a check, draft or similar instrument drawn against insufficient funds in the ordinary
course of business; provided, however, that such Indebtedness is
extinguished within five Business Days of a Financial Officer’s becoming aware of its
Incurrence;

          (ix) any Guarantee (other than the Subsidiary Guarantees) by the Borrower or a
Restricted Subsidiary of Indebtedness or other obligations of the Borrower or any of its
Restricted Subsidiaries so long as the Incurrence of such Indebtedness or other obligations
by the Borrower or such Restricted Subsidiary is permitted under the terms of this
Agreement (other than Indebtedness Incurred pursuant to clause (iv) above);

          (x) (A) Indebtedness of Foreign Subsidiaries in an aggregate principal amount that,
when added to all other Indebtedness Incurred pursuant to this clause (x)(A) and then
outstanding, will not exceed (1) $600,000,000 plus (2) any amount then permitted to
be Incurred pursuant to clause (i) above that the Borrower instead elects to Incur pursuant
to this clause (x)(A); and

 

 

65

               (B) Indebtedness of Foreign Subsidiaries Incurred in connection with a Qualified
Receivables Transaction in an amount not to exceed €275,000,000 at any one time
outstanding;

          (xi) the Loans and other Indebtedness constituting Other Pari Passu Lien Obligations
or unsecured Indebtedness in an amount not to exceed $850,000,000 and Refinancing
Indebtedness in respect thereof; provided that such Refinancing Indebtedness constitutes
Other Pari Passu Lien Obligations or unsecured Indebtedness; and

          (xii) Indebtedness of the Borrower and the Restricted Subsidiaries in an aggregate
principal amount on the date of Incurrence that, when added to all other Indebtedness
Incurred pursuant to this clause (xii) and then outstanding, will not exceed $150,000,000.

          (c) For purposes of determining the outstanding principal amount of any particular
Indebtedness Incurred pursuant to this Section 5.03:

          (i) Outstanding Indebtedness Incurred pursuant to any of the Credit Agreements prior
to or on the Effective Date shall be classified as Incurred as follows:

               (A) such Indebtedness shall be deemed to have been Incurred pursuant to clause (i) of
paragraph (b) above, in an amount such that after giving effect to such Incurrence there
will remain available to be Incurred under clause (i) of paragraph (b) an amount of
Indebtedness equal to the aggregate amount committed and undrawn under the Credit
Agreements on the Effective Date (including amounts committed that are not available to be
drawn because such amounts have been allocated to undrawn outstanding letters of credit);
and

               (B) to the extent not classified pursuant to clause (A) above, such Indebtedness shall
be deemed to have been Incurred pursuant to paragraph (a) above.

          (ii) Indebtedness permitted by this Section 5.03 need not be permitted solely by
reference to one provision permitting such Indebtedness but may be permitted in part by one
such provision and in part by one or more other provisions of this covenant permitting such
Indebtedness, and

          (iii) in the event that Indebtedness meets the criteria of more than one of the types
of Indebtedness described in this Section 5.03, the Borrower, in its sole discretion, shall
classify such Indebtedness (or any portion thereof) as of the time of Incurrence and will
only be required to include the amount of such Indebtedness in one of such clauses
(provided that any Indebtedness originally classified as Incurred pursuant to Sections
5.03(b)(ii) through (b)(xii) may later be reclassified as having been Incurred pursuant to
Section 5.03(a) or any other of Sections 5.03(b)(ii) through (b)(xii) to the extent that
such reclassified Indebtedness could be Incurred pursuant to Section 5.03(a) or one of

 

 

66

Sections 5.03(b)(ii) through (b)(xii), as the case may be, if it were Incurred at the
time of such reclassification); and

          (iv) all Indebtedness constituting Other Pari Passu Lien Obligations Incurred after
the Indenture Closing Date shall be treated as Incurred pursuant to clause (xi) of
paragraph (b) above unless and until such Indebtedness can no longer be Incurred pursuant
to clause (xi) of paragraph (b) above.

          (d) For purposes of determining compliance with any dollar or euro denominated restriction on
the Incurrence of Indebtedness where the Indebtedness Incurred is denominated in a different
currency, the amount of such Indebtedness will be the Dollar Equivalent or Euro Equivalent, as the
case may be, determined on the date of the Incurrence of such Indebtedness; provided,
however, that if any such Indebtedness denominated in a different currency is subject to a
Currency Agreement with respect to dollars or euros, as the case may be, covering all principal,
premium, if any, and interest payable on such Indebtedness, the amount of such Indebtedness
expressed in dollars or euros will be as provided in such Currency Agreement. The principal amount
of any Refinancing Indebtedness Incurred in the same currency as the Indebtedness being Refinanced
will be the Dollar Equivalent or Euro Equivalent, as appropriate, of the Indebtedness Refinanced
determined on the date of the Incurrence of such Indebtedness, except to the extent that (i) such
Dollar Equivalent or Euro Equivalent was determined based on a Currency Agreement, in which case
the Refinancing Indebtedness will be determined in accordance with the immediately preceding
sentence, and (ii) the principal amount of the Refinancing Indebtedness exceeds the principal
amount of the Indebtedness being Refinanced, in which case the Dollar Equivalent or Euro
Equivalent, as appropriate, of such excess will be determined on the date such Refinancing
Indebtedness is Incurred.

          (e) All Indebtedness Incurred after the Indenture Closing and permitted under the foregoing
baskets and exceptions shall be deemed to have been Incurred under and to utilize such baskets and
exceptions.

          SECTION 5.04. Limitation on Restricted Payments. (a) The Borrower shall not, and
shall not permit any Restricted Subsidiary, directly or indirectly, to make any Restricted Payment
if at the time the Borrower or such Restricted Subsidiary makes such Restricted Payment:

          (i) a Default will have occurred and be continuing (or would result therefrom);

          (ii) the Borrower could not Incur at least $1.00 of additional Indebtedness under
Section 5.03(a); or

          (iii) the aggregate amount of such Restricted Payment and all other Restricted
Payments (the amount so expended, if other than in cash, to be determined in good faith by
a Financial Officer of the Borrower, whose determination will be conclusive;
provided, however, that with respect to any

 

 

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noncash Restricted Payment in excess of $25,000,000, the amount so expended shall be
determined in accordance with the provisions of the definition of Fair Market Value)
declared or made subsequent to the Indenture Closing Date would exceed the sum, without
duplication, of:

               (A) 50% of the Consolidated Net Income accrued during the period (treated as one
accounting period) from the beginning of the fiscal quarter immediately following the
fiscal quarter during which the Indenture Closing Date occurs to the end of the most recent
fiscal quarter for which financial statements have been filed with the SEC prior to the
date of such Restricted Payment (or, in case such Consolidated Net Income will be a
deficit, minus 100% of such deficit);

               (B) 100% of the aggregate Net Cash Proceeds received by the Borrower from the issuance
or sale of its Capital Stock (other than Disqualified Stock) subsequent to the Indenture
Closing Date (other than an issuance or sale to a Subsidiary of the Borrower and other than
an issuance or sale to an employee stock ownership plan or to a trust established by the
Borrower or any of its Subsidiaries for the benefit of their employees) and 100% of any
cash capital contribution received by the Borrower from its shareholders subsequent to the
Indenture Closing Date;

               (C) the amount by which Indebtedness of the Borrower or its Restricted Subsidiaries is
reduced on the Borrower’s Consolidated balance sheet upon the conversion or exchange (other
than by a Subsidiary) subsequent to the Indenture Closing Date of any Indebtedness of the
Borrower or its Restricted Subsidiaries issued after the Indenture Closing Date which is
convertible or exchangeable for Capital Stock (other than Disqualified Stock) of the
Borrower (less the amount of any cash or the Fair Market Value of other property
distributed by the Borrower or any Restricted Subsidiary upon such conversion or exchange);
and

               (D) an amount equal to the sum of (1) the net reduction in the Investments (other than
Permitted Investments) made after the Indenture Closing Date by the Borrower or any
Restricted Subsidiary in any Person resulting from repurchases, repayments or redemptions
of such Investments by such Person, proceeds realized on the sale of such Investment and
proceeds representing the return of capital (excluding dividends and distributions), in
each case realized by the Borrower or any Restricted Subsidiary, and (2) to the extent such
Person is an Unrestricted Subsidiary, the portion (proportionate to the Borrower’s equity
interest in such Subsidiary) of the fair market value of the net assets of such
Unrestricted Subsidiary at the time such Unrestricted Subsidiary is designated a Restricted
Subsidiary; provided, however, that the foregoing sum shall not exceed, in
the case of any such Person or Unrestricted Subsidiary, the amount of Investments
(excluding Permitted Investments) previously made (and treated as a Restricted Payment) by
the Borrower or any Restricted Subsidiary in such Person or Unrestricted Subsidiary.

 

 

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          (b) The provisions of Section 5.04(a) shall not prohibit:

          (i) any Restricted Payment made out of the Net Cash Proceeds of the substantially
concurrent sale of, or made by exchange for, Capital Stock of the Borrower (other than
Disqualified Stock and other than Capital Stock issued or sold to a Subsidiary of the
Borrower or an employee stock ownership plan or to a trust established by the Borrower or
any of its Subsidiaries for the benefit of their employees to the extent such sale to such
an employee stock ownership plan or trust is financed by loans from or guaranteed by the
Borrower or any Restricted Subsidiary unless such loans have been repaid with cash on or
prior to the date of determination) or a substantially concurrent cash capital contribution
received by the Borrower from its shareholders; provided, however, that:

               (A) such Restricted Payment shall be excluded in the calculation of the amount of
Restricted Payments, and

               (B) the Net Cash Proceeds from such sale applied in the manner set forth in Section
5.04(b)(i) shall be excluded from the calculation of amounts under Section 5.04(a)(iii)(B);

          (ii) any prepayment, repayment or Purchase for value of Subordinated Obligations of
the Borrower made by exchange for, or out of the proceeds of the substantially concurrent
sale of, other Subordinated Obligations or Indebtedness Incurred under Section 5.03(a);
provided, however, that such prepayment, repayment or Purchase for value
shall be excluded in the calculation of the amount of Restricted Payments;

          (iii) dividends paid within 60 days after the date of declaration thereof if at such
date of declaration such dividends would have complied with this covenant;
provided, however, that such dividends shall be included in the calculation
of the amount of Restricted Payments;

          (iv) any Purchase for value of Capital Stock of the Borrower or any of its
Subsidiaries from employees, former employees, directors or former directors of the
Borrower or any of its Subsidiaries (or permitted transferees of such employees, former
employees, directors or former directors), pursuant to the terms of agreements (including
employment agreements) or plans (or amendments thereto) approved by the Board of Directors
under which such individuals purchase or sell or are granted the option to purchase or
sell, shares of such Capital Stock; provided, however, that the aggregate
amount of such Purchases for value will not exceed $10,000,000 in any calendar year;
provided further, however, that any of the $10,000,000 permitted to
be applied for Purchases under this Section 5.04(b)(iv) in a calendar year (and not so
applied) may be carried forward for use in the following two calendar years;
provided further, however, that such Purchases for value shall be
excluded in the calculation of the amount of Restricted Payments;

 

 

69

          (v) so long as no Default has occurred and is continuing, payments of dividends on
Disqualified Stock issued after the Indenture Closing Date pursuant to Section 5.03;
provided, however, that such dividends shall be included in the calculation
of the amount of Restricted Payments;

          (vi) repurchases of Capital Stock deemed to occur upon exercise of stock options if
such Capital Stock represents a portion of the exercise price of such options;
provided, however, that such Restricted Payments shall be excluded in the
calculation of the amount of Restricted Payments;

          (vii) so long as no Default has occurred and is continuing, any prepayment, repayment
or Purchase for value of Subordinated Obligations from Net Available Cash to the extent
permitted under Section 5.06; provided, however, that such prepayment,
repayment or Purchase for value shall be excluded in the calculation of the amount of
Restricted Payments;

          (viii) payments to holders of Capital Stock (or to the holders of Indebtedness that is
convertible into or exchangeable for Capital Stock upon such conversion or exchange) in
lieu of the issuance of fractional shares; provided, however, that such
payments shall be excluded in the calculation of the amount of Restricted Payments; or

          (ix) any Restricted Payment in an amount which, when taken together with all
Restricted Payments after the Indenture Closing Date made pursuant to this Section
5.04(b)(ix), does not exceed $50,000,000; provided, however, that (A) at
the time of each such Restricted Payment, no Default shall have occurred and be continuing
(or result therefrom) and (B) such Restricted Payments shall be included in the calculation
of the amount of Restricted Payments.

          SECTION 5.05. Limitation on Restrictions on Distributions from Restricted
Subsidiaries. The Borrower shall not, and shall not permit any Restricted Subsidiary to,
create or otherwise cause or permit to exist or become effective any consensual encumbrance or
restriction on the ability of any Restricted Subsidiary to:

          (a) pay dividends or make any other distributions on its Capital Stock or pay any Indebtedness
or other obligations owed to the Borrower;

          (b) make any loans or advances to the Borrower; or

          (c) transfer any of its property or assets to the Borrower, except:

          (i) any encumbrance or restriction pursuant to applicable law, rule, regulation or
order or an agreement in effect at or entered into on the Indenture Closing Date;

          (ii) any encumbrance or restriction with respect to a Restricted Subsidiary pursuant
to an agreement relating to any Indebtedness Incurred by such Restricted Subsidiary prior
to the date on which such Restricted Subsidiary

 

 

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was acquired by the Borrower (other than Indebtedness Incurred as consideration in, in
contemplation of, or to provide all or any portion of the funds or credit support utilized
to consummate the transaction or series of related transactions pursuant to which such
Restricted Subsidiary became a Restricted Subsidiary or was otherwise acquired by the
Borrower) and outstanding on such date;

          (iii) any encumbrance or restriction pursuant to an agreement effecting a Refinancing
of Indebtedness Incurred pursuant to an agreement referred to in Section 5.05(c)(i) or
Section 5.05(c)(ii) or this Section 5.05(c)(iii) or contained in any amendment to an
agreement referred to in Section 5.05(c)(i) or Section 5.05(c)(ii) or this Section
5.05(c)(iii); provided, however, that the encumbrances and restrictions
contained in any such Refinancing agreement or amendment are no less favorable in any
material respect to the Lenders than the encumbrances and restrictions contained in such
predecessor agreements;

          (iv) in the case of Section 5.05(c), any encumbrance or restriction

	 	(A)  	that restricts in a customary manner the
subletting, assignment or transfer of any property or asset that is
subject to a lease, license or similar contract, or the assignment or
transfer of any such lease, license or other contract, or
	 
	 	(B)  	contained in mortgages, pledges and other
security agreements securing Indebtedness of a Restricted Subsidiary
to the extent such encumbrance or restriction restricts the transfer
of the property subject to such security agreements;

          (v) with respect to a Restricted Subsidiary, any restriction imposed pursuant to an
agreement entered into for the sale or disposition of all or substantially all the Capital
Stock or assets of such Restricted Subsidiary pending the closing of such sale or
disposition;

          (vi) any encumbrance or restriction existing under or by reason of Indebtedness or
other contractual requirements of a Receivables Entity in connection with a Qualified
Receivables Transaction; provided, however, that such restrictions apply
only to such Receivables Entity;

          (vii) purchase money obligations for property acquired in the ordinary course of
business and Capitalized Lease Obligations that impose restrictions on the property
purchased or leased of the nature described in Section 5.05(c);

          (viii) provisions with respect to the disposition or distribution of assets or
property in joint venture agreements, asset sale agreements, stock sale agreements and
other similar agreements;

 

 

71

                  (ix) restrictions on cash or other deposits or net worth imposed by customers,
suppliers or, in the ordinary course of business, other third parties; and

                  (x) with respect to any Foreign Subsidiary, any encumbrance or restriction contained
in the terms of any Indebtedness, or any agreement pursuant to which such Indebtedness was
issued, if:

	 	(A)  	the encumbrance or restriction applies only
in the event of a payment default or a default with respect to a
financial covenant contained in such Indebtedness or agreement, or
	 
	 	(B)  	at the time such Indebtedness is Incurred,
such encumbrance or restriction is not expected to materially affect
the Borrower’s ability to make principal or interest payments on the
Loans, as determined in good faith by a Financial Officer of the
Borrower, whose determination shall be conclusive.

          SECTION 5.06. Limitation on Sales of Assets and Subsidiary Stock.
(a) The Borrower shall not, and shall not permit any Restricted Subsidiary to, make any Asset
Disposition unless:

          (i) the Borrower or such Restricted Subsidiary receives consideration (including by
way of relief from, or by any other Person assuming sole responsibility for, any
liabilities, contingent or otherwise) at the time of such Asset Disposition at least equal
to the Fair Market Value of the shares and assets subject to such Asset Disposition,

          (ii) at least 75% of the consideration thereof received by the Borrower or such
Restricted Subsidiary is in the form of cash or Additional Assets; provided,
however, that in the case of an Asset Disposition of any Collateral or Excluded
Securities, any Additional Assets received by the Borrower and any Restricted Subsidiary
are added, substantially concurrently with their acquisition, to the Collateral securing
(with the same priority as the assets disposed of) the Obligations and the Subsidiary
Guarantees; provided further, however, that the 75% consideration
requirement of this Section 5.06(a)(ii) shall not apply to any Specified Asset Sale, and

          (iii) an amount equal to 100% of the Net Available Cash from such Asset Disposition is
applied by the Borrower (or such Restricted Subsidiary, as the case may be):

                      (A) first, to the extent the Borrower elects (or is required by the terms of any
Applicable Indebtedness) (i) to prepay, repay, purchase, repurchase, redeem, retire,
defease or otherwise acquire for value Applicable Indebtedness, (ii) to cause any loan
commitment that is available to be drawn under the applicable credit facility and to be
Incurred under Section 5.03 and that when drawn would constitute a Priority Lien
Obligation, to be permanently reduced by

 

 

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the amount of Net Available Cash or (iii) to make Designated LC Cash Collaterizations,
in each case, other than Indebtedness owed to the Borrower or an Affiliate of the Borrower
and other than obligations in respect of Disqualified Stock, within 365 days after the
later of the date of such Asset Disposition or the receipt of such Net Available Cash;

               (B) second, to acquire Additional Assets (or otherwise to make capital expenditures),
in each case within 365 days after the later of the date of such Asset Disposition or the
receipt of such Net Available Cash; provided, however, that, in the case of
an Asset Disposition of any Collateral or Excluded Securities, such Additional Assets are
added, substantially concurrently with their acquisition, to the Collateral securing (with
the same priority as the assets disposed of) the Obligations and the Subsidiary Guarantees
or, in the case of capital expenditures, such capital expenditures are used to improve or
maintain assets that constitute Collateral or real property or fixtures thereon owned by
the Borrower or a Subsidiary Guarantor;

               (C) third, to the extent of the balance of such Net Available Cash after application
in accordance with Section 5.06(a)(iii)(A) and Section 5.06(a)(iii)(B), to make an Offer
(as defined in Section 5.06 (c)) to prepay or repay Loans pursuant to and subject to the
conditions set Section 5.06(c); provided, however, that if the Borrower
elects (or is required by the terms of any other Senior Indebtedness), such Offer may be
made ratably to prepay the Loans and any Applicable Senior Indebtedness, and

               (D) fourth, to the extent of the balance of such Net Available Cash after application
in accordance with 5.06(a)(iii)(A), Section 5.06(a)(iii)(B) and Section 5.06(a)(iii)(C),
for any general corporate purpose permitted by the terms of this Agreement;

provided, however that in connection with any prepayment, repayment,
purchase, repurchase, redemption, retirement, defeasance or other acquisition for value of
Indebtedness pursuant to Section 5.06(a)(iii)(A) or Section 5.06(a)(iii)(C), the Borrower
or such Restricted Subsidiary shall retire such Indebtedness and shall cause the related
loan commitment (if any) to be permanently reduced in an amount equal to the principal
amount so prepaid, repaid, purchased, repurchased, redeemed, retired, defeased or otherwise
acquired for value.

Notwithstanding the foregoing provisions of this Section 5.06(a)(iii), the Borrower and its
Restricted Subsidiaries will not be required to apply any Net Available Cash in accordance
with this Section 5.06 except to the extent that the aggregate Net Available Cash from all
Asset Dispositions that is not applied in accordance with this Section 5.06 exceeds
$25,000,000. Pending application of Net Available Cash pursuant to this 5.06, such Net
Available Cash may be used or invested in any manner that is not prohibited by this
Agreement.

 

 

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          (b) For the purposes of this covenant, the following are deemed to be cash:

          (i) the assumption of Applicable Indebtedness of the Borrower (other than obligations
in respect of Disqualified Stock of the Borrower) or any Restricted Subsidiary (other than
obligations in respect of Disqualified Stock and Preferred Stock of a Restricted Subsidiary
that is Subsidiary Guarantor) and the release of the Borrower or such Restricted Subsidiary
from all liability on such Indebtedness in connection with such Asset Disposition;

          (ii) any Designated Noncash Consideration having an aggregate Fair Market Value that,
when taken together with all other Designated Noncash Consideration received pursuant to
this clause and then outstanding, does not exceed at the time of the receipt of such
Designated Noncash Consideration (with the Fair Market Value of each item of Designated
Noncash Consideration being measured at the time received and without giving effect to
subsequent changes in value) the greater of (A) $200,000,000 and (B) 1.5% of the total
Consolidated assets of the Borrower as shown on the most recent balance sheet of the
Borrower filed with the SEC;

          (iii) securities, notes or similar obligations received by the Borrower or any
Restricted Subsidiary from the transferee that are promptly converted by the Borrower or
such Restricted Subsidiary into cash; and

          (iv) Temporary Cash Investments.

          (c) In the event of an Asset Disposition that requires the prepayment of Loans pursuant to
Section 5.06(a)(iii)(C), the Borrower shall be required (i) to prepay Loans pursuant to an offer by
the Borrower for the Loans (the “Offer”) at an amount equal to 100% of their outstanding
principal amounts plus accrued and unpaid interest to the date of purchase (subject to the right of
Lenders on the relevant date to receive interest due on the relevant interest payment date) in
accordance with the procedures (including prorating in the event of oversubscription), set forth in
Section 5.06(d) and (ii) to purchase Applicable Senior Indebtedness of the Borrower on the terms
and to the extent contemplated thereby; provided that in no event shall the Borrower offer
to purchase such Applicable Senior Indebtedness of the Borrower at a purchase price in excess of
100% of its principal amount (without premium) or, unless otherwise provided for in such Applicable
Senior Indebtedness, the accreted amount, if issued with original issue discount, plus accrued and
unpaid interest thereon. If the aggregate amount of payment for the Loans (and Applicable Senior
Indebtedness) elected to be prepaid by the Lenders pursuant to the Offer is less than the Net
Available Cash allotted to the prepayment of such Loans (and other Applicable Senior Indebtedness),
the Borrower will apply the remaining Net Available Cash in accordance with Section
5.06(a)(iii)(D). The Borrower shall not be required to make an Offer to prepay Loans (and
Applicable Senior Indebtedness) pursuant to this covenant if the Net Available Cash available
therefor (after application of the proceeds as provided in Section 5.06(a)(iii)(A) and Section
5.06(a)(iii)(B)) is less than $25,000,000 for any particular Asset Disposition

 

 

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(which lesser amount will be carried forward for purposes of determining whether an Offer is
required with respect to the Net Available Cash from any subsequent Asset Disposition).

          (d) (i) If the aggregate amount of payment for the Loans (and other Applicable Senior
Indebtedness) tendered pursuant to the Offer exceeds the Net Available Cash allotted to their
payment, the Borrower shall select the Loans (and other Applicable Senior Indebtedness) to be
prepaid or repaid on a pro rata basis (with such adjustments as may be deemed appropriate by the
Borrower so that only Loans and other Applicable Senior Indebtedness in denominations of $1,000, or
integral multiples thereof, shall be prepaid or repaid).

          (ii) Promptly, and in any event within 10 days after the Borrower becomes obligated to make
an Offer, the Borrower shall deliver to the Administrative Agent and each Lender, a written notice
stating that the Lenders may elect to have their Loans prepaid or repaid by the Borrower either in
whole or in part (subject to prorating as described in Section 5.06(d)(i) in the event the Offer is
oversubscribed) in integral multiples of $1,000 of principal amount at the applicable amount for
such prepayment. The notice shall specify a payment date not less than 30 days nor more than 60
days after the date of such notice (the “Payment Date”).

          (iii) Not later than the date upon which written notice of an Offer is delivered to the
Administrative Agent as provided below, the Borrower shall deliver to the Administrative Agent an
Officers’ Certificate as to (A) the amount of the Offer (the “Offer Amount”), including
information as to any other Applicable Senior Indebtedness included in the Offer for prepayment,
(B) the allocation of the Net Available Cash from the Asset Dispositions pursuant to which such
Offer is being made and (C) the compliance of such allocation with the provisions of Section
5.06(a) and (c). By 11:00 a.m. New York City time on the Payment Date, the Borrower shall
irrevocably deposit with the Administrative Agent in Temporary Cash Investments, maturing on the
last day prior to the Payment Date or on the Payment Date if funds are immediately available by
open of business, an amount equal to the Offer Amount to be held for payment in accordance with the
provisions of this Section. If the Offer includes other Applicable Senior Indebtedness, the
deposit described in the preceding sentence may be made with any other paying agent pursuant to
arrangements satisfactory to the Administrative Agent. The Administrative Agent shall, on the
Payment Date, deliver payment (or cause the delivery of payment) to each applicable Lender in the
amount of the applicable payment for the Loans to be prepaid. In the event that the aggregate
required payment amount for the Loans delivered by the Borrower to the Administrative Agent is less
than the Offer Amount applicable to the Loans, the Administrative Agent shall deliver the excess to
the Borrower immediately after the Payment Date for application in accordance with this Section
5.06.

          (iv) Each Lender electing to receive a prepayment shall so notify the Administrative Agent in
a written notice delivered at least three Business Days prior to the Payment Date. A Lender shall
be entitled to withdraw its election to have its Loans repaid if the Administrative Agent or the
Borrower receives not later than one Business

 

 

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Day prior to the Payment Date, a telex, facsimile transmission or letter setting forth the
name of such Lender, the principal amount of the Loans which the Lender has previously elected to
be repaid and a statement that such Lender is withdrawing its election to have such Loans repaid.

          (v) At the time the Borrower prepays Loans under this Section, the Borrower shall also
deliver an Officers’ Certificate stating that such Loans are to be prepaid by the Borrower pursuant
to and in accordance with the terms of this Section. A Loan shall be deemed to have been prepaid
at the time the Administrative Agent, directly or through an agent, delivers payment therefor to
the applicable Lender.

          (e) The Borrower shall, in connection with the prepayment of Loans pursuant to this Section
5.06, provide the Lenders with such information and documents as it provides the holders of the
Junior Lien Notes in connection with the offer to prepay the Junior Lien Notes being made at such
time and shall provide the Lenders with the same time provided for notices, responses and other
relevant actions in connection with the prepayment as it affords to the holders of the Junior Lien
Notes.

          SECTION 5.07. Limitation on Transactions with Affiliates. (a) The Borrower shall
not, and shall not permit any Restricted Subsidiary to, directly or indirectly, enter into or
conduct any transaction or series of related transactions (including the purchase, sale, lease or
exchange of any property or the rendering of any service) with any Affiliate of the Borrower (an
“Affiliate Transaction”) unless such transaction is on terms:

          (i) that are no less favorable to the Borrower or such Restricted Subsidiary, as the
case may be, than those that could be obtained at the time of such transaction in
arm’s-length dealings with a Person who is not such an Affiliate,

          (ii) that, in the event such Affiliate Transaction involves an aggregate amount in
excess of $25,000,000,

               (A) are set forth in writing, and

               (B) have been approved by a majority of the members of the Board of Directors having
no personal stake in such Affiliate Transaction and,

          (iii) that, in the event such Affiliate Transaction involves an amount in excess of
$75,000,000, have been determined by a nationally recognized appraisal, accounting or
investment banking firm to be fair, from a financial standpoint, to the Borrower and its
Restricted Subsidiaries.

          (b) The provisions of Section 5.07(a) will not prohibit:

          (i) any Restricted Payment permitted to be paid pursuant to Section 5.04,

 

 

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          (ii) any issuance of securities, or other payments, awards or grants in cash,
securities or otherwise pursuant to, or the funding of, employment arrangements, stock
options and stock ownership plans approved by the Board of Directors,

          (iii) the grant of stock options or similar rights to employees and directors of the
Borrower pursuant to plans approved by the Board of Directors,

          (iv) loans or advances to employees in the ordinary course of business of the
Borrower,

          (v) the payment of reasonable fees and compensation to, or the provision of employee
benefit arrangements and indemnity for the benefit of, directors, officers and employees of
the Borrower and its Restricted Subsidiaries in the ordinary course of business,

          (vi) any transaction between or among any of the Borrower, any Restricted Subsidiary
or any joint venture or similar entity which would constitute an Affiliate Transaction
solely because the Borrower or a Restricted Subsidiary owns an equity interest in or
otherwise controls such Restricted Subsidiary, joint venture or similar entity,

          (vii) the issuance or sale of any Capital Stock (other than Disqualified Stock) of the
Borrower,

          (viii) any agreement as in effect on the Indenture Closing Date and described in the
Borrower’s SEC filings as filed on or prior to the Indenture Closing Date, or any renewals,
extensions or amendments of any such agreement (so long as such renewals, extensions or
amendments are not less favorable in any material respect to the Borrower or its Restricted
Subsidiaries) and the transactions evidenced thereby,

          (ix) transactions with customers, clients, suppliers or purchasers or sellers of goods
or services in each case in the ordinary course of business and otherwise in compliance
with the terms of this Agreement which are fair to the Borrower or its Restricted
Subsidiaries, in the reasonable determination of the Board of Directors or the senior
management thereof, or are on terms at least as favorable as could reasonably have been
obtained at such time from an unaffiliated party, or

          (x) any transaction effected as part of a Qualified Receivables Transaction.

          SECTION 5.08. Change of Control. (a) Upon the occurrence of a Change of Control,
each Lender shall have the right to require the Borrower to repay all or any part of such Lender’s
Loans in an amount in cash equal to 101% of the principal outstanding amount of such Loans, plus
accrued and unpaid interest to the date of

 

 

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repayment (subject to the right of Lenders to receive interest due on the relevant interest
payment date), in accordance with Section 5.08(b).

          (b) Within 30 days following any Change of Control, the Borrower shall mail a notice to each
Lender, with a copy to the Administrative Agent (the “Change of Control Offer”), stating:

          (i) that a Change of Control has occurred and that such Lender has the right to
require the Borrower to repay all or a portion of such Lender’s Loans in an amount in cash
equal to 101% of the outstanding principal amount of such Loans, plus accrued and unpaid
interest to the date of purchase (subject to the right of Lenders to receive interest on
the relevant interest payment date);

          (ii) the circumstances and relevant facts and financial information regarding such
Change of Control;

          (iii) the repayment date (which shall be no earlier than 30 days nor later than 60
days from the date such notice is mailed); and

          (iv) the instructions determined by the Borrower, consistent with this Section 5.08,
that a Lender must follow in order to have its Loans repaid.

          (c) The Borrower shall not be required to make a Change of Control Offer upon a Change of
Control if a third party makes the Change of Control Offer in the manner, at the times and
otherwise in compliance with the requirements set forth in this Section 5.08 applicable to a Change
of Control Offer made by the Borrower and repays all Loans under such Change of Control Offer. In
addition, the Borrower shall not be required to make a Change of Control Offer upon a Change of
Control in respect of any Loans to the extent that the Borrower has delivered a valid notice of
prepayment to the Administrative Agent prior to the Change of Control, and thereafter prepays such
Loans in accordance with the terms set forth in such prepayment notice prior to the date on which
such Change of Control Offer would otherwise be required to be made.

          (d) The Borrower shall, in connection with the prepayment of Loans pursuant to this Section
5.08, provide the Lenders with such information and documents as it provides the holders of the
Junior Lien Notes in connection with the offer to prepay the Junior Lien Notes being made at such
time and shall provide the Lenders with the same time provided for notices, responses and other
relevant actions in connection with the prepayment as it affords to the holders of the Junior Lien
Notes.

          (e) On the repayment date, the Borrower shall pay the required repayment amount under Section
5.08(a), plus accrued and unpaid interest, if any, to the Lenders entitled thereto.

          SECTION 5.09. Limitation on Liens. (a) The Borrower shall not, and shall not permit
any Restricted Subsidiary to, directly or indirectly, Incur or permit to exist any Lien of any
nature whatsoever on any of its property or assets (including

 

 

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Capital Stock of a Restricted Subsidiary), whether owned on the Indenture Closing Date or
thereafter acquired, other than:

          (i) in the case of any asset that does not constitute Collateral (including assets
previously constituting Collateral that have been released from the Liens securing the
Obligations and the Subsidiary Guarantees), Permitted Liens; provided,
however, that any Lien on such assets shall be permitted notwithstanding that it is
not a Permitted Lien if all payments due under this Agreement and Subsidiary Guarantees are
secured on an equal and ratable basis with (or, in the case of any such Indebtedness which
is a Subordinated Obligation, on a prior basis to) the obligations so secured until such
time as such obligations are no longer secured by a Lien on such assets; and

          (ii) in the case of any asset that constitutes Collateral, Permitted Collateral Liens.

          (b) Notwithstanding the foregoing, to the extent that any asset that does not already
constitute Collateral (other than Additional Excluded Collateral) is pledged to secure First Lien
Bank Indebtedness or Second Lien Bank Indebtedness, including any Refinancings thereof, such asset
shall also be pledged to secure the Loans and the Subsidiary Guarantees on an immediately junior
basis to the First Lien Bank Indebtedness or Second Lien Bank Indebtedness so secured by such asset
and such asset will thereafter be deemed to be part of the Collateral.

          SECTION 5.10. Limitation on Sale/Leaseback Transactions. The Borrower shall not, and
shall not permit any Restricted Subsidiary to, enter into any Sale/Leaseback Transaction with
respect to any property unless:

          (a) the Borrower or such Restricted Subsidiary would be entitled to:

          (i) Incur Indebtedness with respect to such Sale/Leaseback Transaction pursuant to
Section 5.03 and

          (ii) create a Lien on such property securing such Indebtedness without equally and
ratably securing the Loans pursuant to Section 5.09;

          (b) the gross proceeds payable to received by the Borrower or such Restricted Subsidiary in
connection with such Sale/Leaseback Transaction are at least equal to the Fair Market Value of such
property; and

          (c) the transfer of such property is permitted by, and, if applicable, the Borrower applies
the proceeds of such transaction in compliance with, Section 5.06.

          SECTION 5.11. Future Subsidiary Guarantors. (a) The Borrower shall cause each
Restricted Subsidiary that Guarantees any Indebtedness of the Borrower or of any Subsidiary
Guarantor to become a Subsidiary Guarantor, and if applicable, execute and deliver to the
Administrative Agent and the Collateral Agent a supplement to this Agreement (substantially in the
form of Exhibit J), the Collateral Agreement and, if

 

 

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applicable, other Security Documents pursuant to which such Subsidiary shall Guarantee payment
of the Obligations. Upon execution and delivery by the Administrative Agent, the Borrower and a
Subsidiary of an instrument in the form of Exhibit J hereto, such Subsidiary shall become a
Subsidiary Guarantor hereunder with the same force and effect as if originally named as a
Subsidiary Guarantor herein. For the purposes of this Section 5.11(a), a pledge of an intercompany
note by a Restricted Subsidiary to secure Indebtedness of the Borrower or a Subsidiary Guarantor
shall be considered a Guarantee by such Restricted Subsidiary unless such intercompany note is also
pledged to secure the Obligations or the applicable Subsidiary Guarantee with the same level of
priority that the Obligations or Subsidiary Guarantee bear to the other Indebtedness secured by
such pledge. Each Subsidiary Guarantee shall be limited to an amount not to exceed the maximum
amount that can be Guaranteed by that Subsidiary Guarantor, without rendering the Subsidiary
Guarantee, as it relates to such Subsidiary Guarantor voidable under applicable law relating to
fraudulent conveyance or fraudulent transfer or similar laws affecting the rights of creditors
generally.

          (b) In the event that any Subsidiary Guarantor that is not a Grantor Subsidiary Guarantor
shall at any time have Consolidated assets greater than $10,000,000 as of the end of the most
recent fiscal quarter for which financial statements have been filed with the SEC, then at such
time the Borrower will, within 30 days (or such longer period as may be reasonable under the
circumstances), cause such Subsidiary Guarantor to become a Grantor Subsidiary Guarantor and
execute and deliver to the Administrative Agent all applicable documents pursuant to which its
assets (other than Consent Assets) constituting Collateral will be pledged to secure its Subsidiary
Guarantee of the Obligations.

          SECTION 5.12. Suspension of Certain Covenants. (a) Following the first day (the
“Suspension Date”) that:

          (i) the Loans hereunder have an Investment Grade Rating from both of the Rating
Agencies, and

          (ii) no Default has occurred and is continuing hereunder,

the Borrower and its Restricted Subsidiaries will not be subject to Sections 5.03, 5.04, 5.05,
5.06, 5.07, 5.11 and Section 6.01(c) (collectively, the “Suspended Covenants”). In
addition, the Borrower may elect to suspend the Subsidiary Guarantees, and the Borrower may also
elect to release any or all of the Collateral from the Liens securing the Loans and Subsidiary
Guarantees.

          (b) In the event that the Borrower and its Restricted Subsidiaries are not subject to the
Suspended Covenants for any period of time as a result of the foregoing and on any subsequent date
(the “Reversion Date”) one or both of the Rating Agencies withdraws its Investment Grade
Rating or downgrades the rating assigned to the Loans below an Investment Grade Rating, then the
Borrower and its Restricted Subsidiaries shall thereafter again be subject to the Suspended
Covenants with respect to future events, the Subsidiary Guarantees shall be reinstated and any
Collateral that was released

 

 

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from Liens securing the Loans and Subsidiary Guarantees, as well as any Collateral acquired
since the Suspension Date, shall be restored and pledged to secure the Loans and the Subsidiary
Guarantees, as applicable. The period of time between the Suspension Date and the Reversion Date
is referred to herein as the “Suspension Period”.

          (c) Notwithstanding that the Suspended Covenants may be reinstated, no Default or Event of
Default shall be deemed to have occurred as a result of a failure to comply with the Suspended
Covenants during the Suspension Period. During any Suspension Period, the Borrower shall not
designate any Subsidiary to be an Unrestricted Subsidiary unless the Borrower would have been
permitted to designate such Subsidiary to be an Unrestricted Subsidiary if a Suspension Period had
not been in effect for any period.

          (d) On the Reversion Date, all Indebtedness Incurred during the Suspension Period shall be
classified to have been Incurred pursuant to Section 5.03(a) or one of Section 5.03(b)(i) through
5.03(b)(xi) (to the extent such Indebtedness would be permitted to be Incurred thereunder as of the
Reversion Date and after giving effect to Indebtedness Incurred prior to the Suspension Period and
outstanding on the Reversion Date). To the extent such Indebtedness would not be so permitted to
be Incurred pursuant to Section 5.03(a) or Section 5.03(b), such Indebtedness shall be deemed to
have been outstanding on the Effective Date, so that it is classified as permitted under Section
5.03(b)(iii)(B). Calculations made after the Reversion Date of the amount available to be made as
Restricted Payments under Section 5.04 shall be made as though Section 5.04 had been in effect
since the Effective Date and throughout the Suspension Period. Accordingly, Restricted Payments
made during the Suspension Period shall reduce the amount available to be made as Restricted
Payments under Section 5.04(a) and the items specified in Section 5.04(a)(iii) shall increase the
amount available to be made under Section 5.04(a). For purposes of determining compliance with
Section 5.06(a) and Section 5.06(b), the Net Available Cash from all Asset Dispositions not applied
in accordance with Section 5.06 shall be deemed to be reset to zero.

          (e) In addition, the Borrower and the Restricted Subsidiaries may honor any contractual
commitments to take actions after a Reversion Date as long as such contractual commitments were
entered into during a Suspension Period and not in anticipation of the Loans’ no longer having an
Investment Grade Rating from both of the Rating Agencies.

          SECTION 5.13. Compliance Certificate. The Borrower shall deliver to the
Administrative Agent within 120 days after the end of each fiscal year of the Borrower an Officers’
Certificate signed by a Financial Officer stating (i) that a review of the activities of the
Borrower and the Subsidiaries during the preceding fiscal year has been made with a view to
determining whether the Borrower and the Subsidiary Guarantors have fulfilled their obligations
under this Agreement and (ii) that, to the knowledge of such Financial Officer, no Default or Event
of Default occurred during such period (or, if a Default or Event of Default hereunder shall have
occurred, describing all such Defaults or Events of Default hereunder of which such Financial

 

 

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Officer may have knowledge and what action the Borrower has taken, is taking and/or proposes
to take with respect thereto).

          SECTION 5.14. Further Instruments and Acts. Upon request of the Administrative Agent,
the Borrower will execute and deliver such further instruments and do such further acts as may be
reasonably necessary or proper to carry out more effectively the purpose of this Agreement.

          SECTION 5.15. Guarantees and Collateral. (a) In the event that there shall at any
time exist any North American Subsidiary (other than an Excluded Subsidiary or Consent Subsidiary)
that shall not be a party to the Collateral Agreement or the Canadian Security Agreements, as the
case may be, the Borrower will promptly notify the Administrative Agent and the Collateral Agent
(including in such notice the information that would have been required to be set forth with
respect to such Subsidiary in the Perfection Certificate if such Subsidiary had been one of the
Grantors listed therein) and will, within 30 days (or such longer period as may be reasonable under
the circumstances) after such notification, deliver to the Administrative Agent and the Collateral
Agent a supplement to the Collateral Agreement or the Canadian Security Agreements, as the case may
be, in substantially the form specified therein, duly executed and delivered on behalf of such
North American Subsidiary, pursuant to which such North American Subsidiary will become a party to
the Collateral Agreement and a Subsidiary Guarantor and, if it elects to become a Grantor or if its
Total Assets are greater than $10,000,000 as of December 31, 2004, or if later, as of the end of
the most recent fiscal quarter for which financial statements have been delivered pursuant to
Section 5.02, a Grantor, in each case as defined in the Collateral Agreement.

          (b) In the event that the Borrower or any other Grantor shall at any time directly own any
Equity Interests of any Subsidiary (other than (i) Equity Interests in any Subsidiary with Total
Assets not greater than $10,000,000 as of December 31, 2004, or if later, as of the end of the most
recent fiscal quarter for which financial statements have been delivered pursuant to Section 5.02,
(ii) Equity Interests in any Excluded Subsidiary or Consent Subsidiary and (iii) Equity Interests
already pledged in accordance with this paragraph or Section 4.01(l)), the Borrower will promptly
notify the Administrative Agent and the Collateral Agent and will, within 30 days (or such longer
period as may be reasonable under the circumstances) after such notification, cause such Equity
Interests to be pledged under the Collateral Agreement and cause to be delivered to the Collateral
Agent (or its sub-agent for perfection) any certificates representing such Equity Interests,
together with undated stock powers or other instruments of transfer with respect thereto endorsed
in blank; provided, that (A) no Grantor shall be required to pledge more than 65% of
outstanding voting Equity Interests of any Foreign Subsidiary and (B) no Grantor shall be required
to pledge any Equity Interests in any Foreign Subsidiary if a Financial Officer shall have
delivered a certificate to the Administrative Agent certifying that the Borrower has determined, on
the basis of reasonable inquiries in the jurisdiction of such Person, that such pledge would affect
materially and adversely the ability of such Person to conduct its business in such jurisdiction.

 

 

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          (c) In the event that the Borrower or any other Grantor shall at any time directly own any
Equity Interests of any Material Foreign Subsidiary (other than Equity Interests already pledged in
accordance with this paragraph and Equity Interests in any Consent Subsidiary), the Borrower will
promptly notify the Administrative Agent and the Collateral Agent and will take all such actions as
the Administrative Agent shall reasonably request and as shall be available under applicable law to
cause such Equity Interests to be pledged under a Foreign Pledge Agreement and cause to be
delivered to the Collateral Agent (or its sub-agent for perfection) any certificates representing
such Equity Interests, together with undated stock powers or other instruments of transfer with
respect thereto endorsed in blank; provided, that (A) no Grantor shall be required to
pledge more than 65% of outstanding voting Equity Interests of any Foreign Subsidiary and (B) no
Grantor shall be required to pledge any Equity Interests in any Person if a Financial Officer shall
have delivered a certificate to the Administrative Agent certifying that the Borrower has
determined, on the basis of reasonable inquiries in the jurisdiction of such Person, that such
pledge would affect materially and adversely the ability of such Person to conduct its business in
such jurisdiction.

          (d) In the event that the Borrower or any other Grantor shall at any time own any Material
Intellectual Property (other than Material Intellectual Property as to which the actions required
by this paragraph have already been taken), the Borrower will promptly notify the Administrative
Agent and the Collateral Agent and will file all Uniform Commercial Code financing statements or
other applicable personal property security law filings and recordations with the Patent and
Trademark Office or the Canadian Intellectual Property Office as shall be required by law or
reasonably requested by the Administrative Agent to be filed or recorded to perfect the Liens
intended to be created on the Collateral (to the extent such Liens may be perfected by filings
under the Uniform Commercial Code or other personal property security legislation as in effect in
any applicable jurisdiction or by filings with the United States Patent and Trademark Office or the
Canadian Intellectual Property Office); provided, that if the consents of Persons other
than the Borrower and the Wholly Owned Subsidiaries would be required under applicable law or the
terms of any agreement in order for a security interest to be created in any Material Intellectual
Property under the Collateral Agreement or the Canadian Security Agreements, as the case may be, a
security interest shall not be required to be created in such Material Intellectual Property prior
to the obtaining of such consents. The Borrower will endeavor in good faith to obtain any consents
required to permit any security interest in Material Intellectual Property to be created under the
Collateral Agreement or the Canadian Security Agreements, as the case may be.

          (e) The Borrower will, and will cause each Subsidiary to, execute any and all further
documents, financing statements, agreements and instruments, and take all such further actions, as
may be reasonably requested by the Administrative Agent in order to cause the security interests
purported to be created by the Security Documents or required to be created under the terms of this
Agreement to constitute valid security interests, perfected in accordance with this Agreement.

 

 

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ARTICLE VI

Successor Borrower

          SECTION 6.01. When Borrower May Merge or Transfer Assets. (a) The Borrower shall
not, directly or indirectly, consolidate with or merge with or into, or convey, transfer or lease
all or substantially all its assets, in one or a series of related transactions, to, any Person,
unless:

          (i) the resulting, surviving or transferee Person (the “Successor Borrower”)
will be a corporation organized and existing under the laws of the United States of
America, any State thereof or the District of Columbia and the Successor Borrower (if not
the Borrower) will expressly assume, by a supplemental agreement, executed and delivered to
the Administrative Agent, in form satisfactory to the Administrative Agent, all the
Obligations of the Borrower under the Credit Documents;

          (ii) immediately after giving effect to such transaction (and treating any
Indebtedness which becomes an obligation of the Successor Borrower or any Restricted
Subsidiary as a result of such transaction as having been Incurred by the Successor
Borrower or such Restricted Subsidiary at the time of such transaction), no Default shall
have occurred and be continuing;

          (iii) immediately after giving effect to such transaction, (A) the Successor Borrower
would be able to Incur an additional $1.00 of Indebtedness under Section 5.03(a) or (B) the
Consolidated Coverage Ratio for the Successor Borrower would be greater than such ratio for
the Borrower and its Restricted Subsidiaries immediately prior to such transaction; and

          (iv) the Borrower shall have delivered to the Administrative Agent an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation, merger or
transfer and such supplemental agreement (if any) comply with this Agreement.

          (b) The Successor Borrower shall succeed to, and be substituted for, and may exercise every
right and power of, the Borrower under this Agreement, and the predecessor Borrower, other than in
the case of a lease, shall be released from the obligation to pay the principal of and interest on
the Loans.

          (c) The Borrower shall not permit any Subsidiary Guarantor to, directly or indirectly,
consolidate with or merge with or into, or convey, transfer or lease all or substantially all of
its assets, in or a series of related transactions, to any Person unless:

          (i) except in the case of a Subsidiary Guarantor (A) that has been disposed of in its
entirety to another Person (other than to the Borrower or an Affiliate of the Borrower),
whether through a merger, consolidation or sale of Capital Stock or assets or (B) that, as
a result of the disposition of all or a portion of its Capital Stock, ceases to be a
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transferee Person (the “Successor Guarantor”) shall be a corporation organized
and existing under the laws of the United States of America, any State thereof or the
District of Columbia, and such Person (if not such Subsidiary Guarantor) shall expressly
assume, by a supplemental agreement, executed and delivered to the Administrative Agent, in
form satisfactory to the Administrative Agent, all the Obligations of such Subsidiary
Guarantor under its Subsidiary Guarantee;

          (ii) immediately after giving effect to such transaction (and treating any
Indebtedness which becomes an obligation of the Successor Guarantor or any Restricted
Subsidiary as a result of such transaction as having been Incurred by the Successor
Guarantor or such Restricted Subsidiary at the time of such transaction), no Default shall
have occurred and be continuing; and

          (iii) the Borrower will have delivered to the Administrative Agent an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation, merger or
transfer and such supplemental agreement (if any) comply with this Agreement.

          (d) Notwithstanding the foregoing:

          (i) any Restricted Subsidiary may Consolidate with, merge into or transfer all or part
of its properties and assets to the Borrower or any Subsidiary Guarantor and

          (ii) the Borrower may merge with an Affiliate incorporated solely for the purpose of
reincorporating the Borrower in another jurisdiction within the United States of America,
any State thereof or the District of Columbia to realize tax or other benefits.

ARTICLE VII

Defaults and Remedies

          SECTION 7.01. Events of Default. An “Event of Default” occurs if:

          (a) the Borrower defaults in any payment of interest on any Loan when the same becomes due and
payable, and such default continues for 30 days;

          (b) the Borrower defaults in the payment of principal of any Loan when the same becomes due
and payable, upon optional or required prepayment or repayment, upon declaration of acceleration or
otherwise;

          (c) the Borrower or any Subsidiary Guarantor fails to comply with its obligations under
Section 6.01;

          (d) the Borrower or any Restricted Subsidiary fails to comply with Section 5.03, 5.04, 5.05,
5.06, 5.07, 5.08, 5.09, 5.10, 5.11, 5.12 or 5.15 (in each case, other than a failure to repay
Loans) or Section 4.09 of the Collateral Agreement and such

 

 

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failure continues for 30 days after the notice from the Administrative Agent or the Majority
Lenders as specified below;

          (e) the Borrower or any Restricted Subsidiary fails to comply with its agreements contained in
this Agreement or the Security Documents (other than those referred to in clauses (a), (b), (c) or
(d) above) and such failure continues for 60 days after the notice from the Administrative Agent or
the Lenders as specified below;

          (f) the Borrower or any Restricted Subsidiary fails to pay any Indebtedness (other than
Indebtedness owing to the Borrower or a Restricted Subsidiary) within any applicable grace period
after final maturity or the acceleration of any such Indebtedness by the holders thereof because of
a default if the total amount of such Indebtedness unpaid or accelerated exceeds $50,000,000 or its
foreign currency equivalent;

          (g) the Borrower or any Significant Subsidiary pursuant to or within the meaning of any
Bankruptcy Law (i) commences a voluntary case, (ii) consents to the entry of an order for relief
against it in an involuntary case, (iii) consents to the appointment of a Custodian of it or for
any substantial part of its property or (iv) makes a general assignment for the benefit of its
creditors, or, in each case, takes any comparable action under any foreign laws relating to
insolvency;

          (h) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that
(i) is for relief against the Borrower or any Significant Subsidiary in an involuntary case, (ii)
appoints a Custodian of the Borrower or any Significant Subsidiary or for any substantial part of
its property or (iii) orders the winding up or liquidation of the Borrower or any Significant
Subsidiary, or, in each case, any similar relief is granted under any foreign laws and the order or
decree remains unstayed and in effect for 60 days;

          (i) any final and nonappealable judgment or decree (not covered by insurance) for the payment
of money in excess of $50,000,000 or its foreign currency equivalent (treating any deductibles,
self-insurance or retention as not so covered) is rendered against the Borrower or a Significant
Subsidiary and such final judgment or decree remains outstanding and is not satisfied, discharged
or waived within a period of 60 days following such judgment;

          (j) any Subsidiary Guarantee ceases to be in full force and effect in all material respects
(except as contemplated by the terms thereof) or any Subsidiary Guarantor denies or disaffirms such
Subsidiary Guarantor’s obligations under this Agreement or any Subsidiary Guarantee and such
Default continues for 10 days after receipt of the notice specified below;

          (k) (i) the Borrower or any Subsidiary Guarantor repudiates or disaffirms its obligations
under any of the Security Documents, (ii) the determination in a judicial proceeding that any of
the Security Documents is unenforceable or invalid against the Borrower or any Subsidiary Guarantor
for any reason with respect to any material portion

 

 

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of the Collateral or (iii) any Security Document shall cease to be in full force and effect
(other than in accordance with the terms of the applicable Security Document and this Agreement),
or cease to be effective to grant the Collateral Agent, for the benefit of all Secured Parties a
perfected Lien on the Collateral with the priority purported to be created thereby, in each case
under this Section 7.01(k)(iii), with respect to any material portion of the Collateral; or

          (l) any representation or warranty made or deemed made by or on behalf of any Credit Party in
any Credit Document or any amendment or modification thereof or waiver thereunder shall prove to
have been incorrect when made or deemed made in any respect material to the rights or interests of
the Lenders under the Credit Documents;

At any time after the occurrence and during the continuance of an Event of Default (other than an
event with respect to the Borrower described in clause (g) or (h) of this Section 7.01), the
Administrative Agent may, and at the request of the Majority Lenders shall, by notice to the
Borrower, take any or all of the following actions, at the same or different times: declare the
Loans then outstanding to be due and payable in whole (or in part, in which case any principal not
so declared to be due and payable may thereafter be declared to be due and payable), and thereupon
the principal of the Loans so declared to be due and payable, together with accrued interest
thereon and all fees and other obligations of the Borrower accrued hereunder, shall become due and
payable immediately, without presentment, demand, protest or other notice of any kind, all of which
are hereby waived by the Borrower; and in case of any event with respect to the Borrower described
in clause (g) or (h) of this Section 7.01, the principal of the Loans then outstanding, together
with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder,
shall automatically become due and payable, in each case without presentment, demand, protest or
other notice of any kind, all of which are hereby waived by the Borrower.

          The events described in the foregoing paragraphs (a) through (l) in this Section 7.01 shall
constitute Events of Default whatever the reason for any such Event of Default and whether such
Event of Default is voluntary or involuntary or is effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any administrative or
governmental body.

          Notwithstanding the foregoing, a default under Section 7.01(d), (e), (f), (i) or (j) (only
with respect to any Subsidiary Guarantor that is not a Significant Subsidiary) shall not constitute
an Event of Default until the Administrative Agent notifies the Borrower or the Majority Lenders
notify the Borrower and the Administrative Agent of the default and the Borrower or the Subsidiary
Guarantor, as applicable, does not cure such default within any applicable time specified in
Section 7.01(d), (e), (f), (i) or (j) hereof after receipt of such notice.

          The term “Bankruptcy Law” means Title 11, United States Code, or any similar Federal
or state law for the relief of debtors. The term “Custodian” means any receiver, trustee,
assignee, liquidator, custodian or similar official under any Bankruptcy Law.

 

 

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          The Borrower shall deliver to the Administrative Agent, within 30 days after the occurrence
thereof, written notice of any Event of Default under Section 7.01(f), (j) or (k) and any event
which with the giving of notice or the lapse of time would become an Event of Default under Section
7.01(d), (e) or (i), its status and what action the Borrower is taking or proposes to take with
respect thereto.

ARTICLE VIII

Subsidiary Guarantees

          SECTION 8.01. Guarantees. (a) Each Subsidiary Guarantor hereby irrevocably and
unconditionally guarantees, as a primary obligor and not merely as a surety, the due and punctual
payment and performance of all of the Guaranteed Obligations of such Subsidiary Guarantor, jointly
with the other Subsidiary Guarantors and severally. Each of the Subsidiary Guarantors further
agrees that its Guaranteed Obligations may be extended or renewed, in whole or in part, without
notice to or further assent from it, and that it will remain bound upon its guarantee
notwithstanding any extension or renewal of any such Guaranteed Obligation. Each of the Subsidiary
Guarantors waives presentment to, demand of payment from and protest to the Borrower or any
Subsidiary Guarantor of any of its Guaranteed Obligations, and also waives notice of acceptance of
its guarantee, notice of protest for nonpayment and all similar formalities.

          (b) Each of the Subsidiary Guarantors further agrees that its guarantee hereunder constitutes
a guarantee of payment when due and not of collection, and waives any right to require that any
resort be had by the Administrative Agent, Collateral Agent or any Lender to any security held for
the payment of its Guaranteed Obligations or to any balance of any deposit account or credit on the
books of the Administrative Agent or any Lender in favor of the Borrower.

          (c) Except for termination of a Subsidiary Guarantor’s obligations hereunder or a release of
such Subsidiary Guarantor pursuant to Section 8.06, the obligations of each Subsidiary Guarantor
hereunder shall not be subject to any reduction, limitation, impairment or termination for any
reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not
be subject to any defense or set-off, counterclaim, recoupment or termination whatsoever by reason
of the invalidity, illegality or unenforceability of the Guaranteed Obligations of such Subsidiary
Guarantor or otherwise. Without limiting the generality of the foregoing, the obligations of each
Subsidiary Guarantor hereunder shall not be discharged or impaired or otherwise affected by (i) the
failure of the Administrative Agent or any Lender to assert any claim or demand or to enforce any
right or remedy under the provisions of this Agreement or any Security Document or otherwise; (ii)
any rescission, waiver, amendment or modification of, or any release from any of the terms or
provisions of, this Agreement or any Security Document or any other agreement, including with
respect to any other Subsidiary Guarantor under this Agreement; (iii) the release of any security
held by the Administrative Agent, Collateral Agent or any Lender for the Guaranteed Obligations of
such Subsidiary Guarantor or any of them; (iv) any default, failure or delay, wilful or

 

 

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otherwise, in the performance of the Guaranteed Obligations of such Subsidiary Guarantor; or
(v) any other act or omission that may or might in any manner or to any extent vary the risk of
such Subsidiary Guarantor or otherwise operate as a discharge of such Subsidiary Guarantor as a
matter of law or equity (other than the indefeasible payment in full in cash of all the Guaranteed
Obligations of such Guarantor). Each Grantor Subsidiary Guarantor expressly authorizes the
Collateral Agent and the Administrative Agent, in accordance with the Security Documents, to take
and hold security for the payment and performance of the Guaranteed Obligations of such Grantor
Subsidiary Guarantor, to exchange, waive or release any or all such security (with or without
consideration), to enforce or apply such security and direct the order and manner of any sale
thereof in their sole discretion or to release or substitute any one or more other guarantors or
obligors upon or in respect of the Guaranteed Obligations of such Grantor Subsidiary Guarantor, all
without affecting the obligations of such Grantor Subsidiary Guarantor hereunder.

          (d) To the fullest extent permitted by applicable law, each Subsidiary Guarantor waives any
defense based on or arising out of any defense of the Borrower or any other Subsidiary Guarantor or
the unenforceability of the Guaranteed Obligations of such Subsidiary Guarantor or any part thereof
from any cause, or the cessation from any cause of the liability of the Borrower or any other
Subsidiary Guarantor, other than the indefeasible payment in full in cash of all the Guaranteed
Obligations of such Subsidiary Guarantor. The Collateral Agent and the Administrative Agent may,
at their election and only in accordance with the Security Documents, foreclose on any security
held by one or more of them by one or more judicial or nonjudicial sales, accept an assignment of
any such security in lieu of foreclosure, compromise or adjust any part of the Obligations, make
any other accommodation with the Borrower or any Subsidiary Guarantor or exercise any other right
or remedy available to them against the Borrower or any Subsidiary Guarantor, in each case without
affecting or impairing in any way the liability of any Subsidiary Guarantor hereunder except to the
extent the Guaranteed Obligations of such Subsidiary Guarantor have been fully and indefeasibly
paid in full in cash. To the fullest extent permitted by applicable law, each Subsidiary Guarantor
waives any defense arising out of any such election even though such election operates, pursuant to
applicable law, to impair or to extinguish any right of reimbursement or subrogation or other right
or remedy of such Subsidiary Guarantor against the Borrower or any other Subsidiary Guarantor, as
the case may be, or any security.

          (e) Each of the Subsidiary Guarantors agrees that its guarantee hereunder shall continue to be
effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of any
Guaranteed Obligation of such Subsidiary Guarantor is rescinded or must otherwise be restored by
the Collateral Agent or the Administrative Agent upon the bankruptcy or reorganization of the
Borrower, any other Subsidiary Guarantor or otherwise.

          SECTION 8.02. Limitation on Liability. Any term or provision of this Agreement to the
contrary notwithstanding, the maximum aggregate amount of the Guaranteed Obligations guaranteed
hereunder by any Subsidiary Guarantor shall not exceed the maximum amount that can be hereby
guaranteed without rendering this

 

 

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Agreement, as it relates to such Subsidiary Guarantor, voidable under applicable law relating
to fraudulent conveyance or fraudulent transfer or similar laws affecting the rights of creditors
generally.

          SECTION 8.03. Successors and Assigns. This Article VIII shall be binding upon each
Subsidiary Guarantor and its successors and assigns and shall inure to the benefit of the
successors, transferees and assigns of the Administrative Agent and the Lenders and, in the event
of any transfer or assignment of rights by any Lender or the Administrative Agent, the rights and
privileges conferred upon that party in this Agreement shall automatically extend to and be vested
in such transferee or assignee, all subject to the terms and conditions of this Agreement.

          SECTION 8.04. No Waiver. Neither a failure nor a delay on the part of either the
Administrative Agent or the Lenders in exercising any right, power or privilege under this Article
VIII shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any
other or further exercise of any right, power or privilege. The rights, remedies and benefits of
the Administrative Agent and the Lenders herein expressly specified are cumulative and not
exclusive of any other rights, remedies or benefits which either may have under this Article VIII
at law, in equity, by statute or otherwise.

          SECTION 8.05. Modification. No modification, amendment or waiver of any provision of
this Article VIII, nor the consent to any departure by any Subsidiary Guarantor therefrom, shall in
any event be effective unless the same shall be in writing and signed by the Administrative Agent,
and then such waiver or consent shall be effective only in the specific instance and for the
purpose for which given. No notice to or demand on any Subsidiary Guarantor in any case shall
entitle such Subsidiary Guarantor to any other or further notice or demand in the same, similar or
other circumstances.

          SECTION 8.06. Release of Subsidiary Guarantor. A Subsidiary Guarantor shall be
released from its obligations under this Article VIII (other than any obligation that may have
arisen under Section 8.07):

          (a) upon the sale (including any sale pursuant to any exercise of remedies by a holder of
Indebtedness of the Borrower or of such Subsidiary Guarantor) or other disposition (including by
way of consolidation or merger) of a Subsidiary Guarantor,

          (b) upon the sale or disposition of all or substantially all the assets of such Subsidiary
Guarantor;

          (c) upon the designation of such Subsidiary Guarantor as an Unrestricted Subsidiary in
accordance with the terms of this Agreement,

          (d) unless there is then existing an Event of Default, at such time and for so long as any
such Subsidiary Guarantor that became a Subsidiary Guarantor after the Indenture Closing Date
pursuant to Section 5.11 does not Guarantee any Indebtedness that would have required such
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Agreement pursuant to Section 5.11 and the Borrower provides an Officers’ Certificate to the
Administrative Agent certifying that no such Guarantee is outstanding and the Borrower elects to
have such Subsidiary Guarantor released from this Article VIII, or

          (e) at any time during a Suspension Period if the Borrower provides an Officers’ Certificate
to the Administrative Agent stating that the Borrower elects to have such Subsidiary Guarantor
released from this Article VIII,

provided, however, that in the case of clause (a), except with respect to any sale
of such Subsidiary Guarantor pursuant to any exercise of any remedies by the Credit Agent (as
defined in the Lien Subordination and Intercreditor Agreement) permitted under the Lien
Subordination and Intercreditor Agreement, and in the case of clause (b) above, (i) such sale or
other disposition is made to a Person other than the Borrower or a Subsidiary of the Borrower, (ii)
such sale or disposition is otherwise permitted by this Agreement and (iii) the Borrower complies
with its obligations under Section 5.06.

At the request of the Borrower, the Administrative Agent shall execute and deliver an appropriate
instrument evidencing such release.

          SECTION 8.07. Contribution. Each Subsidiary Guarantor that makes a payment under its
Subsidiary Guarantee shall be entitled upon payment in full of all Guaranteed Obligations under
this Agreement to a contribution from each other Subsidiary Guarantor in an amount equal to such
other Subsidiary Guarantor’s pro rata portion of such payment based on the respective net assets of
all the Subsidiary Guarantors at the time of such payment determined in accordance with GAAP.

ARTICLE IX

The Administrative Agent

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

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

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

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

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

          Subject to the appointment and acceptance of a successor Administrative Agent as provided
below, the Administrative Agent may resign at any time by notifying the Lenders and the Borrower.
Upon any such resignation, the Majority Lenders shall have the right to appoint a successor with
the Borrower’s written consent (which shall not be unreasonably withheld or delayed and shall not
be required from the Borrower if an Event of Default has occurred and is continuing). If no
successor shall have been so appointed by the Majority Lenders and shall have accepted such
appointment within 30 days after the retiring Administrative Agent gives notice of its resignation,
then the

 

 

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retiring Administrative Agent may, on behalf of the Lenders, with the Borrower’s written
consent (which shall not be unreasonably withheld or delayed and shall not be required if an Event
of Default has occurred and is continuing), appoint a successor Administrative Agent which shall be
a bank or an Affiliate thereof, in each case with a net worth of at least $1,000,000,000 and an
office in New York, New York. Upon the acceptance of its appointment as Administrative Agent
hereunder by a successor, such successor shall succeed to and become vested with all the rights,
powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative
Agent shall be discharged from its duties and obligations hereunder. After the Administrative
Agent’s resignation hereunder, the provisions of this Article and Section 10.03 shall continue in
effect for the benefit of such retiring Administrative Agent in respect of any actions taken or
omitted to be taken by it while it was acting as Administrative Agent.

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

          Notwithstanding any other provision contained herein, each Lender acknowledges that the
Administrative Agent is not acting as an agent of the Borrower and that the Borrower will not be
responsible for acts or failures to act on the part of the Administrative Agent.

          Without prejudice to the provisions of this Article IX, each Lender hereby irrevocably
appoints and authorizes the Collateral Agent (and any successor acting as Collateral Agent) to act
as the person holding the power of attorney (in such capacity, the “fondé de pouvoir”) of
the Lenders as contemplated under Article 2692 of the Civil Code of Quebec, and to enter into, to
take and to hold on their behalf, and for their benefit, any hypothec, and to exercise such powers
and duties which are conferred upon the fondé de pouvoir under any hypothec. Moreover, without
prejudice to such appointment and authorization to act as the person holding the power of attorney
as aforesaid, each Lender hereby irrevocably appoints and authorizes the Collateral Agent (and any
successor acting as Collateral Agent) (in such capacity, the “Custodian”) to act as agent
and custodian for and on behalf of the Lenders to hold and to be the sole registered holder of any
debenture which may be issued under any hypothec, the whole notwithstanding Section 32 of the Act
Respecting the Special Powers of Legal Persons (Quebec) or any other applicable law. In this
respect, (i) the Custodian shall keep a record indicating the names and addresses of, and the pro
rata portion of the obligations and indebtedness secured by any pledge of any such debenture and
owing to each Lender, and (ii) each Lender will be entitled to the benefits of any charged property
covered by any hypothec and will participate in the proceeds of realization of any such charged
property, the whole in accordance with the terms hereof.

 

 

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          Each of the fondé de pouvoir and the Custodian shall (a) have the sole and exclusive right and
authority to exercise, except as may be otherwise specifically restricted by the terms hereof, all
rights and remedies given to fondé de pouvoir and the Custodian (as applicable) with respect to the
charged property under any hypothec, any debenture or pledge thereof relating to any hypothec,
applicable laws or otherwise, (b) benefit from and be subject to all provisions hereof with respect
to the Collateral Agent mutatis mutandis, including, without limitation, all such provisions with
respect to the liability or responsibility to and indemnification by the Lenders, and (c) be
entitled to delegate from time to time any of its powers or duties under any hypothec, any
debenture or pledge thereof relating to any hypothec, applicable laws or otherwise and on such
terms and conditions as it may determine from time to time. Any person who becomes a Lender shall
be deemed to have consented to and confirmed: (y) the fondé de pouvoir as the person holding the
power of attorney as aforesaid and to have ratified, as of the date it becomes a Lender, all
actions taken by the fondé de pouvoir in such capacity, (z) the Custodian as the agent and
custodian as aforesaid and to have ratified, as of the date it becomes a Lender, all actions taken
by the Custodian in such capacity.

ARTICLE X

Miscellaneous

          SECTION 10.01. Notices. (a) Except in the case of notices and other communications
expressly permitted to be given by telephone (and subject to paragraph (b) below), all notices and
other communications provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by telecopy or e-mail, as
follows:

          (i) if to the Borrower, to it at 1144 East Market Street, Akron, Ohio, 44316-0001,
Attention of the Treasurer (Telecopy No. (330) 796-6502 or (330) 796-8836);

          (ii) if to the Administrative Agent, to JPMorgan Chase Bank, N.A., Loan & Agency
Services Group, 1111 Fannin, 10th Floor, Houston, Texas 77002, Attention of Debbie Meche
and Cliff Trapani (Telecopy No. (713) 750-2938), with a copy to JPMorgan Chase Bank, N.A.,
270 Park Avenue, New York, NY 10017, Attention of Robert Kellas (Telecopy No. (212)
270-5100);

          (iii) if to a Lender, to it at its address (or telecopy number or e-mail address) set
forth in Schedule 2.01 or its Administrative Questionnaire.

          (b) Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative Agent;
provided that the foregoing shall not apply to notices pursuant to Article II unless
otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent
or the Borrower may, in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant

 

 

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to procedures approved by it; provided that approval of such procedures may be limited
to particular notices or communications.

          (c) Any party hereto may change its address, telecopy number or e-mail address for notices and
other communications hereunder by notice to the other parties hereto. All notices and other
communications given to any party hereto in accordance with the provisions of this Agreement shall
be deemed to have been given on the date of receipt.

          SECTION 10.02. Waivers; Amendments. (a) No failure or delay by any of the Agents or
any Lender in exercising any right or power hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right or power, or any abandonment or discontinuance of
steps to enforce such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and remedies of the Agents and the Lenders
hereunder are cumulative and are not exclusive of any rights or remedies that they would otherwise
have. No waiver of any provision of this Agreement or consent to any departure by the Borrower
therefrom shall in any event be effective unless the same shall be permitted by paragraph (b)
below, and then such waiver or consent shall be effective only in the specific instance and for the
purpose for which given. Without limiting the generality of the foregoing, the making of a Loan
shall not be construed as a waiver of any Default, regardless of whether any Agent or any Lender
may have had notice or knowledge of such Default at the time.

          (b) Except as set forth in paragraph (c) below, no Credit Document or any provision thereof
may be waived, amended or modified except pursuant to an agreement or agreements in writing entered
into by the Credit Parties party thereto and the Administrative Agent or Collateral Agent, as the
case may be, with the consent of the Majority Lenders; provided, that no such agreement
shall (i) increase the Commitment or extend the expiration date of the Commitment of any Lender
without the written consent of such Lender, (ii) reduce or forgive all or part of the principal
amount of any Loan or reduce the rate of interest thereon, or reduce any fee payable hereunder,
without the prior written consent of each Lender affected thereby, (iii) postpone the scheduled
date of payment of the principal amount of any Loan or date for the payment of any interest on any
Loan or any fee, or reduce the amount of, waive or excuse any such payment, without the prior
written consent of each Lender adversely affected thereby, (iv) release all or substantially all
the Subsidiary Guarantors from their Guarantees under this Agreement, or release all or
substantially all the Collateral from the Liens of the Security Documents, without the written
consent of each Lender, (v) change any provision of the Collateral Agreement or any other Security
Document to alter the amount or allocation of any payment to be made to the Secured Parties,
without the written consent of each adversely affected Lender, (vi) change Section 2.14 in a manner
that would alter the pro rata sharing of any payment without the written consent of each Lender
adversely affected thereby, (vii) change any of the provisions of this Section or the definition of
“Majority Lenders” or any other provision hereof specifying the number or percentage of Lenders
required to waive, amend or modify any rights hereunder or make any determination or grant any
consent hereunder, without the written consent of each Lender or (viii) change any of the
provisions of the second sentence of Section 2.07(a), without

 

 

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the written consent of each Lender; provided, further that no such agreement
shall amend, modify or otherwise affect the rights or duties of any Agent under any Credit
Document, or any provision of any Credit Document providing for payments by or to the
Administrative Agent, in each case without the prior written consent of such Agent;
provided further, that so long as the rights or interests of any Lender shall not
be adversely affected in any material respect, the Collateral Agreement or any other Security
Document may be amended without the consent of the Majority Lenders (A) to cure any ambiguity,
omission, defect or inconsistency, or (B) to provide for the addition of any assets or classes of
assets to the Collateral. Notwithstanding the foregoing, any provision of this Agreement may be
amended by an agreement in writing entered into by the Borrower, the Administrative Agent and the
Lenders that will remain parties hereto after giving effect to such amendment if at the time such
amendment becomes effective, each Lender not consenting thereto receives payment in full of the
principal of and interest accrued on each Loan made by it and all other amounts owing to it or
accrued for its account under this Agreement.

          (c) Notwithstanding anything to the contrary herein, each provision of Article V (other than
Section 5.15) and each provision of, and Default or Event of Default under, Section 7.01 (other
than paragraph (l) thereof or in respect of any Event of Default arising under such paragraph (l))
may also be waived, amended or modified with the consent of Lenders and holders of the Junior Lien
Notes (with respect to the corresponding provisions in the Junior Lien Indenture) representing a
majority in interest of the aggregate principal amount Loans and Junior Lien Notes.

          SECTION 10.03. Expenses; Indemnity; Damage Waiver. (a) The Borrower shall pay (i)
all reasonable out-of-pocket expenses incurred by the Administrative Agent, the Arrangers and their
Affiliates (including the reasonable fees, charges and disbursements of Cravath, Swaine & Moore
LLP, counsel for the Administrative Agent and the Arrangers, and other local and foreign counsel
for the Administrative Agent and Arrangers, limited to one per jurisdiction, in connection with the
Security Documents and the creation and perfection of the Liens created thereby and other local and
foreign law matters) in connection with the arrangement and syndication of the credit facilities
provided for herein, the preparation, execution, delivery and administration of this Agreement and
the other Credit Documents or any amendments, modifications or waivers of the provisions hereof or
thereof (whether or not the transactions contemplated hereby or thereby shall be consummated) and
(ii) all reasonable out-of-pocket expenses incurred by the Administrative Agent or any Lender,
including the fees, charges and disbursements of any counsel for the Administrative Agent or any
Lender, in connection with the enforcement or protection of its rights in connection with this
Agreement, including its rights under this Section, or in connection with the Loans made hereunder,
including all such out-of-pocket expenses incurred during any workout, restructuring or similar
negotiations in respect of such Loans. The Borrower also shall pay all out-of-pocket expenses
incurred by the Administrative Agent in connection with the creation and perfection of the security
interests contemplated by this Agreement, including all filing, recording and similar fees and, as
more specifically set forth above, the reasonable fees and disbursements of counsel (including
foreign counsel in connection with Foreign Pledge Agreements).

 

 

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          (b) The Borrower shall indemnify each Agent, each Arranger and each Lender, and each Related
Party of any of the foregoing Persons (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities
and related expenses (including the reasonable fees, charges and disbursements of any counsel for
any Indemnitee), incurred by or asserted against any Indemnitee and arising out of (i) the
execution or delivery of this Agreement or any other Credit Document or other agreement or
instrument contemplated hereby, the syndication and arrangement of the credit facilities provided
for herein, the performance by the parties hereto of their respective obligations or the exercise
by the parties hereto of their rights hereunder or thereunder or the consummation of the
Transactions or any other transactions contemplated hereby or thereby, (ii) any Loan or the use of
the proceeds thereof, (iii) any actual or alleged presence or release of Hazardous Materials on or
from any property currently or formerly owned or operated by the Borrower or any of the
Subsidiaries, or any Environmental Liability related in any way to the Borrower or any of the
Subsidiaries, or (iv) any claim, litigation, investigation or proceeding relating to any of the
foregoing, whether based on contract, tort or any other theory and regardless of whether any
Indemnitee is a party thereto; provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related
expenses shall have resulted from the gross negligence or wilful misconduct of such Indemnitee or
the breach by such Indemnitee of obligations set forth herein or in any other Credit Document.

          (c) To the extent that the Borrower fails to pay any amount required to be paid by it to any
Agent or any Arranger under paragraph (a) or (b) of this Section, each Lender severally agrees to
pay to such Agent or Arranger, as the case may be, such Lender’s percentage (determined as of the
time that the applicable unreimbursed expense or indemnity payment is sought based on the
outstanding Loans of such Lender and the other Lenders) of such unpaid amount; provided
that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as
the case may be, was incurred by or asserted against such Agent or Arranger in its capacity as
such.

          SECTION 10.04. Successors and Assigns. (a) The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto, the Indemnitees and their respective
successors and assigns permitted hereby, except that (i) the Borrower may not assign or otherwise
transfer any of its rights or obligations hereunder without the prior written consent of each
Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null
and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder
except in accordance with this Section. Nothing in this Agreement, expressed or implied, shall be
construed to confer upon any Person (other than the parties hereto, Indemnitees, their respective
successors and assigns permitted hereby, Participants (to the extent provided in paragraph (c) of
this Section) and, to the extent expressly contemplated hereby, the Related Parties of each of the
Agents, the Arrangers and the Lenders) any legal or equitable right, remedy or claim under or by
reason of this Agreement.

          (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign
to one or more assignees all or a portion of its rights and obligations

 

 

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under this Agreement (including all or a portion of its Commitments and the Loans at the time
owing to it) with the prior written consent (such consent not to be unreasonably withheld or
delayed) of:

          (A) the Borrower; provided that no consent of the Borrower shall be required
for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund, a Federal
Reserve Bank or, if an Event of Default has occurred and is continuing, any other assignee;
and

          (B) the Administrative Agent; provided that no consent of the Administrative
Agent shall be required for an assignment to an assignee that is a Lender, an Affiliate of
a Lender, a Federal Reserve Bank or an Approved Fund.

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

          (A) except in the case of an assignment to a Lender, an Affiliate of a Lender or an
Approved Fund, the amount of the Commitment or Loans of the assigning Lender subject to
each such assignment (determined as of the date the Assignment and Assumption with respect
to such assignment is delivered to the Administrative Agent) shall not be less than
$1,000,000 or, if smaller, the entire remaining amount of the assigning Lender’s Commitment
or Loans unless each of the Borrower and the Administrative Agent shall otherwise consent,
provided (i) that no such consent of the Borrower shall be required if an Event of
Default has occurred and is continuing and (ii) in the event of concurrent assignments to
two or more assignees that are Affiliates of one another, or to two or more Approved Funds
managed by the same investment advisor or by affiliated investment advisors, all such
concurrent assignments shall be aggregated in determining compliance with this subsection;

          (B) each partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement;

          (C) the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation fee of
$3,500; provided that in the event of concurrent assignments to two or more assignees that
are Affiliates of one another, or to two or more Approved Funds managed by the same
investment advisor or by affiliated investment advisors, only one such fee shall be
payable; and

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

                  (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this
Section, from and after the effective date specified in each Assignment and Assumption the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment
and Assumption, have the rights and

 

 

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obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of Sections 2.11,
2.12, 2.13 and 10.03). Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this Section 10.04
shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with paragraph (c) of
this Section. Each assignment hereunder shall be deemed to be an assignment of
the related rights under the Collateral Agreement and each other applicable
Security Document.

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

          (v) Upon its receipt of a duly completed Assignment and Assumption executed by an assigning
Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee
shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph
(b) of this Section and any written consent to such assignment required by paragraph (b) of this
Section, the Administrative Agent shall accept such Assignment and Assumption and record the
information contained therein in the Register. No assignment shall be effective for purposes of
this Agreement unless it has been recorded in the Register as provided in this paragraph.

          (vi) By executing and delivering an Assignment and Assumption, the assigning Lender
thereunder and the assignee thereunder shall be deemed to confirm to and agree with each other and
the other parties hereto as follows: (i) such assigning Lender warrants that it is the legal and
beneficial owner of the interest being assigned thereby free and clear of any adverse claim; (ii)
except as set forth in clause (i) above, such assigning Lender makes no representation or warranty
and assumes no responsibility with respect to any statements, warranties or representations made in
or in connection with this Agreement or any other Credit Document or any other instrument or
document furnished pursuant hereto or thereto, or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of any of the foregoing, or the financial
condition of the Credit Parties or the performance or observance by the Credit Parties of any of
their obligations under this Agreement or under any other Credit Document or any other instrument
or document furnished pursuant hereto or thereto; (iii) each of the
assignee and the assignor represents and warrants that it is legally authorized to enter into

 

 

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such Assignment and Assumption; (iv) such assignee confirms that it has received a copy of this
Agreement, together with copies of any amendments or consents entered into prior to the date of
such Assignment and Assumption and copies of the most recent financial statements delivered
pursuant to Section 5.02 and such other documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into such Assignment and Assumption; (v) such
assignee will independently and without reliance upon the Administrative Agent, such assigning
Lender or any other Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking action under this
Agreement; (vi) such assignee appoints and authorizes the Agents to take such action as agents on
its behalf and to exercise such powers under this Agreement and the other Credit Documents as are
delegated to them by the terms hereof and thereof, together with such powers as are reasonably
incidental thereto; and (vii) such assignee agrees that it will perform in accordance with their
terms all the obligations that by the terms of this Agreement are required to be performed by it as
a Lender.

          (c) (i) Any Lender may, without the consent of the Borrower or the Administrative Agent,
sell participations to one or more banks or other entities (each a “Participant”) in all or
a portion of such Lender’s rights and/or obligations under this Agreement (including all or a
portion of its Commitment and the Loans owing to it); provided that (A) such Lender’s
obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations and (C) the
Borrower, the Administrative Agent and the other Lenders shall continue to deal solely and directly
with such Lender in connection with such Lender’s rights and obligations under this Agreement. Any
agreement or instrument pursuant to which a Lender sells such a participation shall provide that
such Lender shall retain the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement; provided that such agreement or
instrument may provide that such Lender will not, without the consent of the Participant, agree to
any amendment, modification or waiver that affects such Participant and that, under Section 10.02,
would require the consent of each affected Lender. Subject to paragraph (c)(ii) of this Section,
the Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.11, 2.12
and 2.13 to the same extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (b) of this Section. To the extent permitted by law, each Participant also
shall be entitled to the benefits of Section 10.08 as though it were a Lender, provided such
Participant agrees to be subject to Section 2.14(d) as though it were a Lender.

     (ii) A Participant shall not be entitled to receive any greater payment under Section
2.11 or 2.13 than the applicable Lender would have been entitled to receive with respect to
the participation sold to such Participant, unless the sale of the participation to such
Participant is made with the Borrower’s prior written consent, which consent shall
specifically refer to this exception. A Participant that would be a Foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 2.13 unless the Borrower is
notified of the participation sold to
such Participant and such Participant agrees, for the benefit of the Borrower, to
comply with Section 2.13(e) as though it were a Lender.

 

 

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          (d) Any Lender may, without the consent of the Borrower or the Administrative Agent, at any
time pledge or assign a security interest in all or any portion of its rights under this Agreement
to secure obligations of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a
security interest; provided that no such pledge or assignment of a security interest shall
release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee
for such Lender as a party hereto.

          SECTION 10.05. Survival. All covenants, agreements, representations and warranties
made by the Borrower herein and in the certificates or other instruments delivered in connection
with or pursuant to this Agreement shall be considered to have been relied upon by the other
parties hereto and shall survive the execution and delivery of this Agreement and the making of any
Loans, regardless of any investigation made by any such other party or on its behalf and
notwithstanding that any Agent or any Lender may have had notice or knowledge of any Default or
incorrect representation or warranty at the time any credit is extended hereunder, and shall
continue in full force and effect as long as the principal of or any accrued interest on any Loan
or any fee or any other amount payable under this Agreement is outstanding and unpaid and so long
as the Commitment has not expired or terminated. The provisions of Sections 2.11, 2.12, 2.13 and
10.03 and Article IX shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or
termination of the Commitments or the termination of this Agreement or any provision hereof.

          SECTION 10.06. Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single
contract. This Agreement, the other Credit Documents and any separate letter agreements with
respect to fees payable to the Administrative Agent or the Arrangers constitute the entire contract
among the parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter hereof. This
Agreement shall become effective as provided in Section 4.01. Delivery of an executed counterpart
of a signature page of this Agreement by telecopy shall be effective as delivery of a manually
executed counterpart of this Agreement.

          SECTION 10.07. Severability. Any provision of this Agreement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such invalidity, illegality or unenforceability without affecting the validity, legality
and enforceability of the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. No
failure to obtain any approval required for the
effectiveness of any provision of this Agreement shall affect the validity or enforceability
of any other provision of this Agreement.

 

 

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          SECTION 10.08. Right of Setoff. If an Event of Default shall have occurred and be
continuing and the Loans shall have become due and payable pursuant to Article VII, each Lender and
each of its Affiliates is hereby authorized at any time and from time to time, to the fullest
extent permitted by law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other obligations at any time owing by such
Lender or Affiliate to or for the credit or the account of the Borrower against any of and all the
obligations of the Borrower now or hereafter existing under this Agreement held by such Lender,
irrespective of whether or not such Lender shall have made any demand under this Agreement and
although such obligations may be unmatured. The rights of each of the Lenders under this Section
are in addition to other rights and remedies (including other rights of setoff) which such Lender
may have.

          SECTION 10.09. Governing Law; Jurisdiction; Consent to Service of Process. (a) This
Agreement shall be construed in accordance with and governed by the law of the State of New York.

          (b) Each party hereto hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in
New York County and of the United States District Court of the Southern District of New York, and
any appellate court from any thereof, in any action or proceeding arising out of or relating to
this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such New York State or, to the extent permitted by law,
in such Federal court. Each of the parties hereto agrees that a final judgment in any such action
or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right
that any party hereto may otherwise have to bring any action or proceeding relating to this
Agreement in the courts of any jurisdiction.

          (c) Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection which it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this Agreement in any
court referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

          (d) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 10.01. Nothing in this Agreement will affect the right of any
party to this Agreement to serve process in any other manner permitted by law.

          SECTION 10.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY

 

 

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LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

          SECTION 10.11. Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this Agreement.

          SECTION 10.12. Confidentiality. Each of the Administrative Agent and the Lenders
agrees to maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and
agents, including accountants, legal counsel and other advisors who have been informed of the
confidential nature of such Information and instructed to keep such Information confidential, (b)
to the extent requested by any regulatory authority (including the NAIC), (c) to the extent
required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any
other party to this Agreement, (e) to the extent necessary or advisable in connection with the
exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or
the enforcement of rights hereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations under this Agreement or
(ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction
relating to the Borrower and its obligations, (g) with the written consent of the Borrower or (h)
to the extent such Information (i) becomes publicly available other than as a result of a breach of
this Section or (ii) becomes available to any Agent or any Lender on a nonconfidential basis from a
source other than the Borrower. For the purposes of this Section, “Information” means all
information received from the Borrower or Persons acting on its behalf relating to the Borrower or
its business, other than any such information that is available to any Agent or any Lender prior to
disclosure by the Borrower on a nonconfidential basis from a source other than the Borrower that is
not known by the recipient to be bound by a confidentiality agreement or other obligation of
confidentiality with respect to such information.

          SECTION 10.13. Interest Rate Limitation. Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges
and other amounts which are treated as interest on such Loan under
applicable law (collectively, the “Charges”), shall exceed the maximum lawful rate
(the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by
the Lender holding such Loan in accordance with applicable law, the rate of interest

 

 

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payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be
limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have
been payable in respect of such Loan but were not payable as a result of the operation of this
Section shall be cumulated and the interest and Charges payable to such Lender in respect of other
Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated
amount, together with interest thereon at the Alternate Base Rate to the date of repayment, shall
have been received by such Lender.

          SECTION 10.14. Security Documents. Each Lender hereby authorizes and directs (i) the
Administrative Agent to execute, on behalf of all Lenders, the Accession Agreement (as defined in
the Collateral Agreement) as the “Acceding Representative” thereunder and (ii) the Collateral Agent
to accept from the Borrower the Collateral Agreement Designation Notice, the LSIA Designation
Notice and each other Security Document. Each Lender, by executing and delivering this Agreement,
acknowledges receipt of a copy of the Collateral Agreement, agrees that it thereby becomes a party
to the Collateral Agreement and approves and agrees to be bound by and to act in accordance with
the terms and conditions of the Collateral Agreement and each other Security Document, specifically
including (i) the provisions of Article VI of the Collateral Agreement (governing the exercise of
remedies under the Security Documents and the distribution of the proceeds realized from such
exercise) and (ii) the provisions of Articles IX and X of the Collateral Agreement (relating to the
duties and responsibilities of the Collateral Agent thereunder and providing for the
indemnification and the reimbursement of expenses of the Collateral Agent thereunder by the
Lenders). Each party hereto further agrees that the foregoing provisions of the Collateral
Agreement shall apply to each other Security Document.

          SECTION 10.15. Lien Subordination and Intercreditor Agreement. Reference is made to
the Lien Subordination and Intercreditor Agreement. Each Lender (a) hereby consents to the
subordination of the Liens securing the Obligations on the terms set forth in the Lien
Subordination and Intercreditor Agreement, (b) hereby agrees that it will be bound by and will take
no actions contrary to the provisions of the Lien Subordination and Intercreditor Agreement and (c)
hereby authorizes and instructs the Collateral Agent to enter into the Lien Subordination and
Intercreditor Agreement and to subject the Obligations and the Liens securing the Obligations to
the provisions thereof. The foregoing provisions are intended as an inducement to the Senior
Obligations Secured Parties (as defined in the Lien Subordination and Intercreditor Agreement) to
extend credit to the Company and its subsidiaries, and such Senior Obligations Secured Parties are
intended third party beneficiaries of such provisions and the provisions of the Lien Subordination
and Intercreditor Agreement.

          SECTION 10.16. USA Patriot Act Notice. Each Lender and the Administrative Agent (for
itself and not on behalf of any Lender) hereby notifies the
Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and
record information that identifies the Borrower, which information includes the name

 

 

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and address of the Borrower and other information that will allow such Lender or the Administrative Agent, as
applicable, to identify the Borrower in accordance with the Act.

          SECTION 10.17. Release of Collateral. (a) Subject to subsections (b) and (c) of
this Section 10.17, Collateral may be released from the Liens and security interests created by the
Security Documents at any time or from time to time in accordance with the provisions of the
Security Documents or the Lien Subordination and Intercreditor Agreement or as provided hereby.
Upon the request of the Borrower pursuant to an Officers’ Certificate or an Opinion of Counsel to
the effect that all conditions precedent hereunder have been met, and without the consent of any
Lender, the Borrower and the Grantor Subsidiary Guarantors shall be entitled to a release of any
assets included in the Collateral from the Liens securing the Loans and the Subsidiary Guarantees,
and the Collateral Agent and the Administrative Agent shall release such Collateral from such Liens
at the Borrower’s sole cost and expense, under one or more of the following circumstances:

     (i) pursuant to an amendment or waiver in accordance with Section 10.02;

     (ii) if all other Liens (other than Permitted Collateral Liens described in clause (d)
of the definition thereof) on that asset securing Priority Lien Obligations and any Other
Pari Passu Lien Obligations then secured by that asset (including all commitments
thereunder) are released; provided, however, that after giving effect to
the release, at least $300,000,000 of obligations secured by the Priority Liens on the
remaining Collateral remain outstanding or committed and available to be drawn under the
documents governing such commitment and no Default shall have occurred and be continuing as
of the time of such proposed release;

     (iii) in the event of any sale, transfer, lease or other disposition of such
Collateral in a transaction permitted or not prohibited under Section 5.06, including any
such transactions by JPMCB, in its capacity as administrative agent and collateral agent
for the lenders party to each of the Credit Agreements or any successor thereto (or any
Person otherwise designated the “Credit Agent” pursuant to the Lien Subordination and
Intercreditor Agreement) in connection with an exercise of remedies against the Collateral
on behalf of lenders under any Priority Lien Obligations secured by such Collateral;
provided, however, that all other Priority Liens and Pari Passu Liens
(other than Permitted Collateral Liens described in clause (d) of the definition thereof)
have also been released in respect of such disposed asset; provided
further, however, that such Liens shall not be released in respect of any
such sale, transfer, lease or other disposition to the Borrower or any Subsidiary unless
the Borrower elects to cause such transaction to be an Asset Disposition;

     (iv) if the Company provides substitute collateral in respect of such Collateral with
at least an equivalent Fair Market Value;

 

 

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     (v) if all of the stock of any Subsidiary that is pledged to the Collateral Agent is
released (except in the case of a release because such stock has become part of the
Excluded Securities) or if any Subsidiary of the Borrower that is a Subsidiary Guarantor is
released from its Subsidiary Guarantee, that Subsidiary’s assets shall also be released;

     (vi) upon payment in full of the principal of, accrued and unpaid interest on the
Loans and all other Obligations under this Agreement, the Subsidiary Guarantees, the
Security Documents and the Lien Subordination and Intercreditor Agreement that are due and
payable at or prior to the time such principal, accrued and unpaid interest are paid;

     (vii) upon a satisfaction and discharge of this Agreement; or

     (viii) at any time during a Suspension Period if the Borrower provides an Officers’
Certificate to the Administrative Agent certifying that a Suspension Date has occurred and
no Reversion Date has occurred subsequently and that the Borrower elects to have such
Collateral released from the Lien of this Agreement and this Security Documents.

          Upon receipt of such Officers’ Certificate or Opinion of Counsel and any necessary or proper
instruments of termination, satisfaction or release prepared by the Borrower, the Administrative
Agent and the Collateral Agent shall, at the Borrower’s expense, execute, deliver or acknowledge
such instruments or releases to evidence the release of any Collateral permitted to be released
pursuant to this Agreement or the Security Documents. Notwithstanding any of the foregoing to the
contrary, the Lien releases referred to in clauses (iii), (vi), (vii) and (viii) above shall be
automatic, without any action required on the part of the Borrower, any Grantor Subsidiary
Guarantor, the Collateral Agent or the Administrative Agent (other than in the case of clause
(iii), (A) at the Borrower’s election pursuant to clause (iii) and (B) any releases of Liens on
equity interests in any entity organized under the laws of a jurisdiction outside the United States
or any real property in any such jurisdiction).

          (b) Except as otherwise provided in the Lien Subordination and Intercreditor Agreement, no
Collateral may be released from the Liens and security interests created by the Security Documents
unless the Officers’ Certificate or Opinion of Counsel required by this Section 10.17, dated not
more than 30 days prior to the date of the application for such release, has been delivered to the
Collateral Agent and the Administrative Agent.

          (c) At any time when a Default or Event of Default has occurred and is continuing and the
maturity of the Loans has been accelerated (whether by declaration or otherwise) and the
Administrative Agent has delivered a notice of acceleration to the Collateral Agent, no release of
Collateral pursuant to the provisions of this Agreement or
the Security Documents will be effective as against the Lenders, except as otherwise provided
in the Lien Subordination and Intercreditor Agreement.

 

 

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

	 	 	 	 	 
	 	 	THE GOODYEAR TIRE & RUBBER COMPANY, as Borrower,
	 
	 	 	 	 
	

	 	     by

	 	
/s/ Darren R. Wells
	

	 	 	 	 
	

	 	 	 	Name: Darren R. Wells
	

	 	 	 	Title:   Vice President and Treasurer
	 
	 	 	 	 
	 	 	JPMORGAN CHASE BANK,
N.A., 
individually and as
Administrative Agent,
	 
	 	 	 	 
	

	 	     by

	 	
/s/ Bernard J. Lillis
	

	 	 	 	 
	

	 	 	 	Name: Bernard J. Lillis
	

	 	 	 	Title:   Managing Director
	 
	 	 	 	 
	 	 	BELT CONCEPTS OF AMERICA, INC., as a Subsidiary
Guarantor,
	 
	 	 	 	 
	

	 	     by

	 	
/s/ Darren R. Wells
	

	 	 	 	 
	

	 	 	 	Name: Darren R. Wells
	

	 	 	 	Title:   Vice President
	 
	 	 	 	 
	 	 	CELERON CORPORATION, as a Subsidiary Guarantor,
	 
	 	 	 	 
	

	 	     by

	 	
/s/ Darren R. Wells
	

	 	 	 	 
	

	 	 	 	Name: Darren R. Wells
	

	 	 	 	Title:   Vice President
	 
	 	 	 	 
	 	 	COSMOFLEX, INC., as a Subsidiary Guarantor,
	 
	 	 	 	 
	

	 	     by

	 	
/s/ Darren R. Wells
	

	 	 	 	 
	

	 	 	 	Name: Darren R. Wells
	

	 	 	 	Title:   Vice President
	 
	 	 	 	 

 

 

 2

	 	 	 	 	 
	 	 	DAPPER TIRE CO, INC., as a Subsidiary Guarantor,
	 
	 	 	 	 
	

	 	     by
	 	 
	

	 	 
	 	/s/ Darren R. Wells
	

	 	 	 	 
	

	 	 	 	Name: Darren R. Wells
	

	 	 	 	Title:   Vice President
	 
	 	 	 	 
	 	 	DIVESTED COMPANIES
HOLDING COMPANY, as a Subsidiary Guarantor,
	 
	 	 	 	 
	

	 	     by
	 	 
	

	 	 
	 	/s/ Randall M. Loyd
	

	 	 	 	 
	

	 	 	 	Name: Randall M. Loyd
	

	 	 	 	Title:   Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	     by
	 	 
	

	 	 
	 	/s/ Ronald J. Carr
	

	 	 	 	 
	

	 	 	 	Name: Ronald J. Carr
	

	 	 	 	Title:   Vice President
	 
	 	 	 	 
	 	 	DIVESTED LITCHFIELD PARK PROPERTIES, INC., as a
Subsidiary Guarantor,
	 
	 	 	 	 
	

	 	     by
	 	 
	

	 	 
	 	/s/ Randall M. Loyd
	

	 	 	 	 
	

	 	 	 	Name: Randall M. Loyd
	

	 	 	 	Title:   Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	     by
	 	 
	

	 	 
	 	/s/ Ronald J. Carr
	

	 	 	 	 
	

	 	 	 	Name: Ronald J. Carr
	

	 	 	 	Title:   Vice President
	 
	 	 	 	 

 

 

 3

	 	 	 	 	 
	 	 	GOODYEAR CANADA INC., as a Subsidiary Guarantor,
	 
	 	 	 	 
	

	 	     by
	 	 
	

	 	 
	 	/s/ Linda Alexander
	

	 	 	 	 
	

	 	 	 	Name: Linda Alexander
	

	 	 	 	Title:   Vice President Finance
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	     by
	 	 
	

	 	 
	 	/s/ D.S. Hamilton
	

	 	 	 	 
	

	 	 	 	Name: D.S. Hamilton
	

	 	 	 	Title:   Secretary
	 
	 	 	 	 
	 	 	GOODYEAR FARMS, INC., as a Subsidiary Guarantor,
	 
	 	 	 	 
	

	 	     by
	 	 
	

	 	 
	 	/s/ Darren R. Wells
	

	 	 	 	 
	

	 	 	 	Name: Darren R. Wells
	

	 	 	 	Title:   Vice President
	 
	 	 	 	 
	 	 	GOODYEAR INTERNATIONAL
CORPORATION, as a Subsidiary Guarantor,
	 
	 	 	 	 
	

	 	     by
	 	 
	

	 	 
	 	/s/ Darren R. Wells
	

	 	 	 	 
	

	 	 	 	Name: Darren R. Wells
	

	 	 	 	Title:   Vice President
	 
	 	 	 	 
	 	 	GOODYEAR WESTERN
HEMISPHERE CORPORATION, as a Subsidiary Guarantor,
	 
	 	 	 	 
	

	 	     by
	 	 
	

	 	 
	 	/s/ Darren R. Wells
	

	 	 	 	 
	

	 	 	 	Name: Darren R. Wells
	

	 	 	 	Title:   Vice President
	 
	 	 	 	 

 

 

 4

	 	 	 	 	 
	 	 	THE KELLY-SPRINGFIELD
TIRE CORPORATION, as a Subsidiary Guarantor,
	 
	 	 	 	 
	

	 	     by
	 	 
	

	 	 
	 	/s/ Darren R. Wells
	

	 	 	 	 
	

	 	 	 	Name: Darren R. Wells
	

	 	 	 	Title:   Vice President
	 
	 	 	 	 
	 	 	WHEEL ASSEMBLIES INC., as a Subsidiary Guarantor,
	 
	 	 	 	 
	

	 	     by
	 	 
	

	 	 
	 	/s/ Darren R. Wells
	

	 	 	 	 
	

	 	 	 	Name: Darren R. Wells
	

	 	 	 	Title:   Vice President
	 
	 	 	 	 
	 	 	WINGFOOT COMMERCIAL
TIRE SYSTEMS, LLC, as a Subsidiary Guarantor,
	 
	 	 	 	 
	

	 	     by
	 	 
	

	 	 
	 	/s/ Darren R. Wells
	

	 	 	 	 
	

	 	 	 	Name: Darren R. Wells
	

	 	 	 	Title:   Vice President
	 
	 	 	 	 
	 	 	WINGFOOT VENTURES EIGHT INC., as a Subsidiary
Guarantor,
	 
	 	 	 	 
	

	 	     by
	 	 
	

	 	 
	 	/s/ Randall M. Loyd
	

	 	 	 	 
	

	 	 	 	Name: Randall M. Loyd
	

	 	 	 	Title:   Vice President
	 
	 	 	 	 

 

 

Signature Page to

The Goodyear Tire & Rubber Company’s

Third Lien Credit Agreement Dated as of

April 8, 2005

	 	 	 	 	 
	

	 	LENDER:
	 	JPMorgan Chase Bank, N.A,
	 
	 	 	 	 
	

	 	     by
	 	 
	

	 	 	 	/s/ Bernard J. Lillis
	

	 	 	 	 
	

	 	 	 	Name: Bernard J. Lillis
	

	 	 	 	Title:   Managing Director
	 
	 	 	 	 

 

 

Signature Page to

The Goodyear Tire & Rubber Company’s

Third Lien Credit Agreement Dated as of

April, 8, 2005

	 	 	 	 	 
	

	 	LENDER:
	 	Deutsche Bank Trust Company Americas,
	 
	 	 	 	 
	

	 	     by
	 	 
	

	 	 
	 	/s/ David Mayhew
	

	 	 	 	 
	

	 	 	 	Name: David Mayhew
	

	 	 	 	Title:   Managing Director
	 
	 	 	 	 
	

	 	     by
	 	 
	

	 	 
	 	/s/ Stephen Cayer
	

	 	 	 	 
	

	 	 	 	Name: Stephen Cayer
	

	 	 	 	Title:   Director
	 
	 	 	 	 

 

 

Signature Page to

The Goodyear Tire & Rubber Company’s

Third Lien Credit Agreement Dated as of

April 8, 2005

	 	 	 	 	 
	

	 	LENDER:
	 	UBS AG, STAMFORD BRANCH,
	 
	 	 	 	 
	

	 	     by
	 	 
	

	 	 
	 	/s/ Pamela Oh
	

	 	 	 	 
	

	 	 	 	Name: Pamela Oh
	

	 	 	 	Title:
Associate Director Banking Products Services, US

	 
	 	 	 	 
	 
	 	 	 	 
	

	 	     by
	 	 
	

	 	 
	 	/s/ Janice L. Randolph
	

	 	 	 	 
	

	 	 	 	Name: Janice L. Randolph
	

	 	 	 	Title: Associate Director Banking
Products Services, USEX-4.4

 

EXHIBIT 4.4

EXECUTION COPY

 

AMENDED AND RESTATED

TERM LOAN AND REVOLVING CREDIT AGREEMENT

dated as of

April 8, 2005

among

THE GOODYEAR TIRE & RUBBER COMPANY

GOODYEAR DUNLOP TIRES EUROPE B.V.

GOODYEAR DUNLOP TIRES GERMANY GMBH

GOODYEAR GMBH & CO. KG

DUNLOP GMBH & CO. KG

GOODYEAR LUXEMBOURG TIRES S.A.

The Lenders Party Hereto,

J.P. MORGAN EUROPE LIMITED,

as Administrative Agent

JPMORGAN CHASE BANK, N.A.,

as Collateral Agent

CITIBANK, N.A.,

CREDIT SUISSE FIRST BOSTON

DEUTSCHE BANK AG

GE FINANCE PARTICIPATIONS SAS

GOLDMAN SACHS CREDIT PARTNERS L.P.

KBC BANK NV

NATEXIS BANQUES POPULAIRES

as Mandated Lead Arrangers

	 	 	 
	J.P. MORGAN PLC,
	 	BNP PARIBAS,
	as Joint Bookrunner
	 	as Joint Bookrunner
	and Mandated Lead Arranger
	 	and Mandated Lead Arranger

 

[CS&M 6701-315]

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I

	 
	 	 	 	 
	Definitions

	 
	 	 	 	 
	SECTION 1.01. Defined Terms
	 	 	1	 
	SECTION 1.02. Classification of Loans and Borrowings
	 	 	34	 
	SECTION 1.03. Terms Generally
	 	 	34	 
	SECTION 1.04. Accounting Terms; GAAP
	 	 	34	 
	SECTION 1.05. Currency Translation
	 	 	35	 
	 
	 	 	 	 
	ARTICLE II

	 
	 	 	 	 
	The Credits

	 
	 	 	 	 
	SECTION 2.01. Commitments
	 	 	36	 
	SECTION 2.02. Loans and Borrowings
	 	 	36	 
	SECTION 2.03. Requests for Borrowings
	 	 	37	 
	SECTION 2.04. Letters of Credit
	 	 	37	 
	SECTION 2.05. Swingline Loans
	 	 	44	 
	SECTION 2.06. Funding of Borrowings
	 	 	45	 
	SECTION 2.07. Continuation of Borrowings
	 	 	46	 
	SECTION 2.08. Termination of Commitments; Reductions of Commitments
	 	 	47	 
	SECTION 2.09. Repayment of Loans; Evidence of Debt
	 	 	48	 
	SECTION 2.10. Amortization of Term Loans
	 	 	49	 
	SECTION 2.11. Prepayment of Loans
	 	 	49	 
	SECTION 2.12. Fees
	 	 	51	 
	SECTION 2.13. Interest
	 	 	52	 
	SECTION 2.14. Alternate Rate of Interest
	 	 	53	 
	SECTION 2.15. Increased Costs
	 	 	53	 
	SECTION 2.16. Break Funding Payments
	 	 	54	 
	SECTION 2.17. Taxes
	 	 	55	 
	SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Setoffs
	 	 	56	 
	SECTION 2.19. Mitigation Obligations; Replacement of Lenders
	 	 	58	 
	SECTION 2.20. Additional Reserve Costs
	 	 	59	 
	 
	 	 	 	 
	ARTICLE III

	 
	 	 	 	 
	Representations and Warranties

	 
	 	 	 	 
	SECTION 3.01. Organization; Powers
	 	 	60	 
	SECTION 3.02. Authorization; Enforceability
	 	 	60	 

i

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 3.03. Governmental Approvals; No Conflicts
	 	 	61	 
	SECTION 3.04. Financial Statements; No Material Adverse Change
	 	 	61	 
	SECTION 3.05. Litigation and Environmental Matters
	 	 	62	 
	SECTION 3.06. Compliance with Laws and Agreements
	 	 	62	 
	SECTION 3.07. Investment and Holding Company Status
	 	 	62	 
	SECTION 3.08. ERISA
	 	 	62	 
	SECTION 3.09. Disclosure
	 	 	62	 
	SECTION 3.10. Subsidiaries
	 	 	63	 
	SECTION 3.11. Security Interests
	 	 	63	 
	SECTION 3.12. Use of Proceeds
	 	 	63	 
	 
	 	 	 	 
	ARTICLE IV

	 
	 	 	 	 
	Conditions

	 
	 	 	 	 
	SECTION 4.01. Effective Date
	 	 	63	 
	SECTION 4.02. Each Credit Event
	 	 	66	 
	 
	 	 	 	 
	ARTICLE V

	 
	 	 	 	 
	Affirmative Covenants

	 
	 	 	 	 
	SECTION 5.01. Financial Statements and Other Information
	 	 	67	 
	SECTION 5.02. Notices of Defaults
	 	 	69	 
	SECTION 5.03. Existence; Conduct of Business
	 	 	69	 
	SECTION 5.04. Maintenance of Properties
	 	 	70	 
	SECTION 5.05. Books and Records; Inspection and Audit Rights
	 	 	70	 
	SECTION 5.06. Compliance with Laws
	 	 	70	 
	SECTION 5.07. Insurance
	 	 	70	 
	SECTION 5.08. Guarantees and Collateral
	 	 	70	 
	 
	 	 	 	 
	ARTICLE VI

	 
	 	 	 	 
	Negative Covenants

	 
	 	 	 	 
	SECTION 6.01. Indebtedness and Preferred Equity Interests
	 	 	73	 
	SECTION 6.02. Liens
	 	 	77	 
	SECTION 6.03. Sale and Leaseback Transactions
	 	 	79	 
	SECTION 6.04. Fundamental Changes
	 	 	79	 
	SECTION 6.05. Investments, Loans, Advances and Guarantees
	 	 	80	 
	SECTION 6.06. Asset Dispositions
	 	 	83	 
	SECTION 6.07. Restricted Payments
	 	 	85	 
	SECTION 6.08. Transactions with Affiliates
	 	 	86	 
	SECTION 6.09. Capital Expenditures
	 	 	86	 
	SECTION 6.10. Interest Expense Coverage Ratio
	 	 	87	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 6.11. European J.V. Leverage Ratio
	 	 	87	 
	SECTION 6.12. Senior Secured Indebtedness Ratio
	 	 	87	 
	SECTION 6.13. Sumitomo Ownership
	 	 	87	 
	SECTION 6.14. German Subsidiary Matters
	 	 	87	 
	 
	 	 	 	 
	ARTICLE VII

	 
	 	 	 	 
	Events of Default and CAM Exchange

	 
	 	 	 	 
	SECTION 7.01. Event of Default
	 	 	88	 
	SECTION 7.02. CAM Exchange
	 	 	91	 
	SECTION 7.03. Letters of Credit
	 	 	92	 
	 
	 	 	 	 
	ARTICLE VIII

	 
	 	 	 	 
	The Agents

	 
	 	 	 	 
	ARTICLE IX

	 
	 	 	 	 
	Miscellaneous

	 
	 	 	 	 
	SECTION 9.01. Notices
	 	 	97	 
	SECTION 9.02. Waivers; Amendments
	 	 	98	 
	SECTION 9.03. Expenses; Indemnity; Damage Waiver
	 	 	101	 
	SECTION 9.04. Successors and Assigns
	 	 	103	 
	SECTION 9.05. Survival
	 	 	107	 
	SECTION 9.06. Counterparts; Integration; Effectiveness
	 	 	107	 
	SECTION 9.07. Severability
	 	 	108	 
	SECTION 9.08. Right of Setoff
	 	 	108	 
	SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process
	 	 	108	 
	SECTION 9.10. WAIVER OF JURY TRIAL
	 	 	109	 
	SECTION 9.11. Headings
	 	 	109	 
	SECTION 9.12. Confidentiality
	 	 	109	 
	SECTION 9.13. Interest Rate Limitation
	 	 	110	 
	SECTION 9.14. Security Documents
	 	 	110	 
	SECTION 9.15. Collateral Agent as Joint and Several Creditor
	 	 	111	 
	SECTION 9.16. Conversion of Currencies
	 	 	111	 
	SECTION 9.17. Dutch Banking Act
	 	 	112	 
	SECTION 9.18. Power of Attorney
	 	 	113	 
	SECTION 9.19. USA Patriot Act Notice
	 	 	114	 

iii

 

SCHEDULES:

	 	 	 
	Schedule 1.01(a)

	 	— Applicable Assets of the European J.V.
	Schedule 1.01(b)

	 	— Applicable Assets of German Grantors
	Schedule 1.01(c)

	 	— Applicable Assets of Luxembourg Grantors
	Schedule 1.01(d)

	 	— Applicable Assets of UK Grantors
	Schedule 1.01(e)

	 	— Applicable Assets of French Grantors
	Schedule 1.01A

	 	— US Consent Subsidiaries
	Schedule 1.01B

	 	— Senior Subordinated-Lien Indebtedness
	Schedule 2.01

	 	— Commitments
	Schedule 3.10

	 	— Subsidiaries
	Schedule 4.01

	 	— Post-Effective Date Delivery Requirements
	Schedule 4.01(b)

	 	— Required Opinions
	Schedule 4.01(i)

	 	— Pledged J.V. Subsidiaries
	Schedule 6.01

	 	— Existing Indebtedness
	Schedule 6.02

	 	— Existing Liens
	Schedule 6.05(j)

	 	— Additional Equity Interests
	Schedule 6.06

	 	— Asset Dispositions
	Schedule 6.09

	 	— Customer Capital Expenditures
	 
	 	 
	EXHIBITS:
	 	 
	 
	 	 
	Exhibit A

	 	— Form of Borrowing Request
	Exhibit B

	 	— Form of Continuation Request
	Exhibit C-1

	 	— Form of Promissory Note for ABT Loans
	Exhibit C-2

	 	— Form of Promissory Note for GDTG Loans
	Exhibit C-3

	 	— Form of Promissory Note for Term Loans
	Exhibit D

	 	— Form of Assignment and Assumption
	Exhibit E-1

	 	— Form of Opinion of Goodyear’s Outside Counsel
	Exhibit E-2

	 	— Form of Opinion of the General Counsel, the Associate General Counsel or an
Assistant General Counsel of Goodyear

	Exhibit F

	 	— Form of Guarantee and Collateral Agreement
	Exhibit G

	 	— Form of First Lien Guarantee and Collateral Agreement
	Exhibit H

	 	— Form of Second Lien Guarantee and Collateral Agreement
	Exhibit I

	 	— Third Lien Collateral Agreement
	Exhibit J

	 	— Form of Verification Letter
	Exhibit K

	 	— Form of Affiliate Authorization
	Exhibit L

	 	— Mandatory Costs Rate

iv

 

     AMENDED AND RESTATED TERM LOAN AND REVOLVING CREDIT AGREEMENT
dated as of April 8, 2005, among THE GOODYEAR TIRE & RUBBER COMPANY;
GOODYEAR DUNLOP TIRES EUROPE B.V.; GOODYEAR DUNLOP TIRES GERMANY GMBH;
GOODYEAR GMBH & CO. KG; DUNLOP GMBH & CO. KG; GOODYEAR LUXEMBOURG TIRES
S.A.; the LENDERS party hereto; J.P. MORGAN EUROPE LIMITED, as
Administrative Agent; and JPMORGAN CHASE BANK, N.A., as Collateral Agent.

          Goodyear and the Borrowers have requested the Lenders, and the Lenders are willing, to amend
and restate the Existing Credit Agreement to continue and modify the credit facilities provided for
herein to enable the Borrowers to (a) borrow ABT Loans at any time and from time to time during the
ABT Availability Period in an aggregate principal amount not in excess of €195,000,000 at any time
outstanding, (b) borrow GDTG Loans at any time and from time to time during the GDTG Availability
Period in an aggregate principal amount not in excess of €155,000,000 at any time outstanding, (c)
borrow Term Loans on the Effective Date in an aggregate principal amount not in excess of
€155,000,000, (d) obtain Letters of Credit under the ABT Commitments at any time and from time to
time during the ABT Availability Period in an aggregate stated amount not in excess of €50,000,000
at any time outstanding and (e) borrow Swingline Loans under the ABT Commitments at any time and
from time to time during the ABT Availability Period in an aggregate principal amount not in excess
of €25,000,000. The Lenders are willing to extend such credit to the Borrowers on the terms and
subject to the conditions herein set forth. Letters of Credit and the proceeds of the Loans will
be used for general corporate purposes of the European J.V. and the J.V. Subsidiaries.

          Accordingly, the parties hereto agree as follows:

ARTICLE I

Definitions

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

          “ABT Availability Period” means the period from and including the Effective Date to
but excluding the earlier of (a) the Maturity Date and (b) the date of termination of all ABT
Commitments.

          “ABT Commitment” means, with respect to each ABT Lender, the commitment of such Lender
to make ABT Loans and to acquire participation in Letters of Credit and Swingline Loans hereunder,
expressed as an amount representing the maximum permitted aggregate amount of such Lender’s ABT
Credit Exposure hereunder, as such commitment may be (a) reduced from time to time pursuant to
Section 2.08 and (b) reduced or increased from time to time pursuant to assignments by or to such
Lender pursuant to Section 9.04. The initial amount of each ABT Lender’s ABT

 

 

2

Commitment is set forth on Schedule 2.01 or in the Assignment and Assumption pursuant to which
such Lender shall have assumed its ABT Commitment, as applicable. The initial aggregate amount of
the ABT Lenders’ ABT Commitments after giving effect to the transactions to be effected on the
Effective Date is €195,000,000.

          “ABT Credit Exposure” means, with respect to any ABT Lender at any time, the sum of
(a) the aggregate of the Euro Equivalents of the outstanding principal amounts of such Lender’s ABT
Loans at such time, (b) such Lender’s LC Exposure and (c) such Lender’s Swingline Exposure.

          “ABT Lender” means a Lender with an ABT Commitment or, if the ABT Commitments have
terminated or expired, a Lender with ABT Credit Exposure.

          “ABT Loan” means a Loan made pursuant to clause (a) of Section 2.01.

          “ABT Obligations” means (a) the due and punctual payment of (i) the principal of and
interest (including interest accruing during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or allowable in such
proceeding) on the ABT Loans and the Swingline Loans, when and as due, whether at maturity, by
acceleration, upon one or more dates set for prepayment or otherwise, (ii) all payments required to
be made by each Borrower hereunder in respect of any Letter of Credit, when and as due, including
payments in respect of reimbursements of LC Disbursements, interest thereon and obligations to
provide cash collateral and (iii) all other monetary obligations of the Credit Parties to any of
the Secured Parties (including to the Collateral Agent under Section 9.15) under this Agreement and
each of the other Credit Documents, including fees, costs, expenses and indemnities, whether
primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred
during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding), save in each case insofar as the
same relate to, or to any Guarantee of, the GDTG Loans or the Term Loans or any amount payable in
respect thereof, (b) the due and punctual performance of all other nonmonetary obligations of the
Credit Parties to any of the Secured Parties under this Agreement and the other Credit Documents
(other than the performance of obligations in respect of, or under any Guarantee in respect of, the
GDTG Loans or the Term Loans or any amount payable in respect thereof), (c) the due and punctual
payment and performance of all obligations of the European J.V. or any J.V. Subsidiary that is not
organized under the laws of the Federal Republic of Germany under each Swap Agreement that shall at
any time have been specified in a written notice to the Administrative Agent from the European J.V.
as being included in the ABT Obligations, if such Swap Agreement (i) shall have been in effect on
the Effective Date with a counterparty that shall have been a Lender or an Affiliate of a Lender
immediately prior to the effectiveness of the amendment and restatement hereof as of the Effective
Date or (ii) shall have been entered into after the Effective Date with any counterparty that shall
have been a Lender or an Affiliate of a Lender at the time such Swap Agreement was entered into and
(d) the due and punctual payment and performance of all obligations of the European J.V. or any
J.V. Subsidiary that is not organized under the laws of the Federal Republic of Germany arising out
of or in

 

 

3

connection with cash management or similar services that shall at any time have been
designated in a written notice to the Administrative Agent from the European J.V. as being included
in the ABT Obligations and that are provided by a Person that shall have been a Lender or an
Affiliate of a Lender at the time of such designation.

          “ABT Percentage” means, with respect to any ABT Lender, the percentage of the total
ABT Commitments represented by such Lender’s ABT Commitment. If the ABT Commitments have been
terminated or expired, the ABT Percentages shall be determined based upon the ABT Commitments most
recently in effect, after giving effect to any assignments.

          “Adjusted Eurocurrency Rate” means, with respect to any Eurocurrency Borrowing for any
Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/100 of
1%) equal to (a) the LIBO Rate for any Eurocurrency Borrowing denominated in US Dollars or Pounds
Sterling, or the EURIBO Rate for any Eurocurrency Borrowing denominated in Euros, for such Interest
Period divided by (b) 1.00 minus the Statutory Reserves applicable to such Eurocurrency Borrowing.

          “Administrative Agent” means JPMEL, in its capacity as administrative agent for the
Lenders hereunder, and its successors in such capacity.

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

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

          “Affiliate Authorization” means each Affiliate Authorization delivered by any
Affiliate of a Lender to the Collateral Agent substantially in the form of Exhibit K hereto.

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

          “Amendment and Restatement Agreement” shall mean the Amendment and Restatement
Agreement dated as of the date hereof among the Borrowers, the lenders party thereto and the
Administrative Agent.

          “Applicable Assets” means (a) with respect to the European J.V., all the assets and
rights of the European J.V. listed on Schedule 1.01(a), (b) with respect to any Grantor organized
under the laws of the Federal Republic of Germany, all the assets and rights of such Grantor listed
on Schedule 1.01(b), (c) with respect to any Grantor organized under the laws of Luxembourg, all
the assets and rights of such Grantor listed on Schedule 1.01(c), (d) with respect to any Grantor
organized under the laws of the United Kingdom, all the assets and rights of such Grantor listed on
Schedule 1.01(d), and (e) with respect to any Grantor organized under the laws of the Republic of
France, all the assets and rights of such Grantor listed on Schedule 1.01(e).

 

 

4

          “Applicable Rating” shall mean, at any time, each of (a) the public corporate credit
rating assigned to Goodyear at such time by Standard & Poor’s and (b) the public senior implied
rating assigned to Goodyear at such time by Moody’s.

          “Applicable Secured Obligations” means (a) with respect to each Grantor organized
under the laws of any jurisdiction other than the Federal Republic of Germany, (i) the ABT
Obligations and (ii) the Guarantees of the ABT Obligations by each such Grantor under the Guarantee
and Collateral Agreement, and (b) with respect to each Grantor organized under the laws of the
Federal Republic of Germany, (i) the Obligations and (ii) the Guarantees by each such Grantor of
the Obligations under the Guarantee and Collateral Agreement.

          “Applicable Term Percentage” means, with respect to any Lender, the percentage of the
total Term Loan Commitments represented by such Lender’s Term Loan Commitment.

          “Approved Fund” means (a) with respect to any Lender, a CLO managed by such Lender or
by an Affiliate of such Lender and (b) with respect to any Lender that is a fund which invests in
bank loans and similar extensions of credit, any other fund that invests in bank loans and similar
extensions of credit and is managed by the same investment advisor as such Lender or by an
Affiliate of such investment advisor.

          “Arrangers” means J.P. Morgan Securities Inc. and BNP Paribas, as Joint Bookrunners
and Mandated Lead Arrangers for the credit facilities established by this Agreement.

          “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section 9.04),
and accepted by the Administrative Agent, in the form of Exhibit D or any other form approved by
the Administrative Agent.

          “Attributable Debt” means, with respect to any Sale and Leaseback Transaction, the
present value (computed in accordance with GAAP and, in the case of a Sale and Leaseback
Transaction that does not result in Capital Lease Obligations, as if the obligations incurred in
connection with such Sale and Leaseback Transaction were Capital Lease Obligations) of the total
obligations of the lessee for rental payments during the remaining term of the lease included in
such Sale and Leaseback Transaction (including any period for which such lease has been extended).
In the case of any lease which is terminable by the lessee upon payment of a penalty, the
Attributable Debt shall be the lesser of (i) the Attributable Debt determined assuming termination
upon the first date such lease may be terminated (in which case the Attributable Debt shall also
include the amount of the penalty, but no rent shall be considered as required to be paid under
such lease subsequent to the first date upon which it may be so terminated) and (ii) the
Attributable Debt determined assuming no such termination.

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

 

 

5

          “Borrowers” means the European J.V., GDTG, Goodyear KG, Dunlop KG, and Lux Tires.

          “Borrowing” means Loans of the same Class and Type, made, converted or continued on
the same date, and as to which a single Interest Period is in effect.

          “Borrowing Minimum” means (a) in the case of a Borrowing denominated in US Dollars,
$5,000,000, (b) in the case of a Borrowing denominated in Pounds Sterling, £5,000,000, (c) in the
case of a Borrowing denominated in Euros (other than a Swingline Borrowing), €5,000,000, and (d) in
the case of a Swingline Borrowing, €500,000.

          “Borrowing Multiple” means (a) in the case of a Borrowing denominated in US Dollars,
$1,000,000, (b) in the case of a Borrowing denominated in Pounds Sterling, £1,000,000, (c) in the
case of a Borrowing denominated in Euros (other than a Swingline Borrowing), €1,000,000, and (d) in
the case of a Swingline Borrowing, €100,000.

          “Borrowing Request” means a request by any Borrower for a Borrowing in accordance with
Section 2.03 in substantially the form of Exhibit A hereto.

          “Business Day” means a day (other than a Saturday or Sunday) on which banks are open
for general business in London, New York, Frankfurt, Amsterdam, Luxembourg and (a) in relation to
any date for payment or purchase of a currency other than Euros, on which banks are open for
business in the principal financial center of the country of that currency, and (b) in relation to
any date for payment or purchase of Euros, on which the TARGET payment system is open for the
settlement of payments in Euros.

          “CAM Exchange” means the exchange of the Lenders’ interests provided for in Section
7.02.

          “CAM Exchange Date” means the date on which any event referred to in paragraph (h) or
(i) of Section 7.01 shall occur in respect of any Borrower.

          “CAM Percentage” means, with respect to each Lender, a fraction, expressed as a
decimal, of which (a) the numerator shall be the aggregate Designated Obligations owed to such
Lender (whether or not at the time due and payable) and (b) the denominator shall be the aggregate
Designated Obligations owed to all the Lenders (whether or not at the time due and payable).

          “Capital Expenditures” of any Person means, for any period, (a) the additions to
property, plant and equipment and other capital expenditures of such Person and its subsidiaries
that are (or would be) set forth in a statement of cash flows of such Person and its Consolidated
Subsidiaries for such period prepared in accordance with GAAP, excluding capitalized software
expenses, and (b) Capital Lease Obligations incurred by such Person and its Consolidated
Subsidiaries during such period (other than any such Capital Lease Obligations that shall relate to
assets acquired in transactions reflected in Capital Expenditures for any earlier period). For
purposes of this definition,

 

 

6

(i) the purchase price of equipment or other fixed assets that are purchased simultaneously
with the trade-in of existing assets or with insurance proceeds shall be included in Capital
Expenditures only to the extent of the gross amount by which such purchase price exceeds the credit
granted by the seller of such assets for the assets being traded in at such time or the amount of
such insurance proceeds, as the case may be, (ii) acquisitions permitted by Section 6.05(e) shall
be excluded and (iii) “Capital Expenditures” in respect of any period shall be reduced by the
amount of Customer Capital Expenditures that are directly paid by customers during such period and
by the amount of reimbursements Goodyear or any Subsidiary shall have received during such period
from customers in respect of Customer Capital Expenditures; provided that (A) the aggregate
amount of such reductions in respect of Customer Capital Expenditures under the programs specified
in Schedule 6.09 shall not exceed $160,000,000 during the term of this Agreement and (B) the
aggregate amount of such reductions in respect of Customer Capital Expenditures made other than
under the program specified in Schedule 6.09 shall not exceed $50,000,000 in any fiscal year.
“Capital Expenditures” shall also include all Investments made under Section 6.05(k)(ii).

          “Capital Lease Obligations” of any Person means the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

          “Cash Equivalent” means, at any time, a financial instrument issued by any permitted
issuer of a Permitted Investment that at such time is immediately convertible to cash at face value
without any penalty, premium or loss of discount.

          “Change in Control” means (a) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the Securities Exchange
Act of 1934, as amended, and the rules of the United States Securities and Exchange Commission
thereunder as in effect on the date hereof), of Equity Interests representing more than 50% of the
aggregate ordinary voting power represented by the issued and outstanding Equity Interests of
Goodyear, (b) occupation of a majority of the seats (other than vacant seats) on the board of
directors of Goodyear by Persons who were neither (i) directors on the date hereof or nominated by
the board of directors of Goodyear nor (ii) appointed by directors so nominated, (c) the failure of
Goodyear to own directly or indirectly, beneficially and of record, free and clear of all Liens
(other than Permitted Encumbrances), more than 50% of the issued and outstanding capital stock of,
and to Control, the European J.V., or (d) the failure of Goodyear to own directly or indirectly,
beneficially and of record, more than 50% of the issued and outstanding capital stock of, and to
Control, any of GDTG, Goodyear KG, Dunlop KG or Lux Tires.

          “Change in Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this

 

 

7

Agreement or (c) compliance by any Lender or any Issuing Bank (or, for purposes of Section
2.15(b), by any lending office of such Lender or by such Lender’s or such Issuing Bank’s holding
company, if any) with any request, guideline or directive (whether or not having the force of law)
of any Governmental Authority made or issued after the date of this Agreement.

          “Class” when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are ABT Loans, GDTG Loans, Term Loans or Swingline Loans
and, when used in reference to any Commitment, refers to whether such Commitment is an ABT
Commitment, GDTG Commitment or Term Loan Commitment.

          “CLO” means any entity (whether a corporation, partnership, trust or otherwise) that
is engaged in making, purchasing, holding or otherwise investing in bank loans and similar
extensions of credit in the ordinary course of its business and is administered or managed by a
Lender or an Affiliate of such Lender.

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

          “Collateral” means all the assets and rights that secure any of the Obligations
pursuant to the Security Documents.

          “Collateral Agent” means JPMCB, in its capacity as collateral agent for the Lenders
and the other Secured Parties under the Guarantee and Collateral Agreement and the other Security
Documents.

          “Commitment” means an ABT Commitment, a GDTG Commitment or a Term Loan Commitment, or
any combination thereof (as the context requires).

          “Consent Assets” has the meaning assigned to such term in the Guarantee and Collateral
Agreement.

          “Consent Subsidiary” means (i) with respect to Goodyear or any US Subsidiary, (a) any
Subsidiary listed on Part I or Part II of Schedule 1.01A and (b) any Subsidiary not on Schedule
1.01A or formed or acquired after the Effective Date in respect of which (A) the consent of any
Person other than Goodyear or any Wholly Owned Subsidiary of Goodyear is required by applicable law
or the terms of any organizational document of such Subsidiary or other agreement of such
Subsidiary or any Affiliate of such Subsidiary in order for such Subsidiary to execute the
Guarantee and Collateral Agreement as a US Guarantor (as defined under the Guarantee and Collateral
Agreement) and perform its obligations thereunder and (B) Goodyear endeavored in good faith to
obtain such consents and such consents shall not have been obtained, and (ii) with respect to the
European J.V. or a J.V. Subsidiary, any J.V. Subsidiary formed or acquired after the Effective Date
in respect of which (A) the consent of any Person other than Goodyear, the European J.V. or any
Wholly Owned Subsidiary of Goodyear or the European J.V. is required by applicable law or the terms
of any organizational document of such J.V. Subsidiary or other agreement of such J.V. Subsidiary
or any Affiliate of

 

 

8

such J.V. Subsidiary in order for such J.V. Subsidiary to execute the Guarantee and Collateral
Agreement as a European Facilities Guarantor and perform its obligations thereunder, or in order
for Equity Interests of such J.V. Subsidiary to be pledged under a Security Agreement, as the case
may be, and (B) Goodyear and the European J.V. endeavored in good faith to obtain such consents and
such consents shall not have been obtained. Notwithstanding the foregoing, no Subsidiary shall be
a Consent Subsidiary at any time that it is a guarantor of, or has provided any collateral to
secure, Indebtedness for borrowed money of Goodyear or any Borrower, and any Consent Subsidiary
(including a Consent Subsidiary listed in Part I or Part II of Schedule 1.01A) that at any time
ceases to meet the test set forth in clause (A) shall cease to be a Consent Subsidiary. No
Subsidiary shall be a Consent Subsidiary if it is a Guarantor or a Grantor under the First Lien
Guarantee and Collateral Agreement, the Second Lien Guarantee and Collateral Agreement or the Third
Lien Collateral Agreement or a Subsidiary Guarantor or Grantor Subsidiary Guarantor under the
Junior Lien Indenture.

          “Consolidated EBITDA” of any Person means, for any period, Consolidated Net Income of
such Person for such period plus (a) without duplication and to the extent deducted in determining
such Consolidated Net Income, the sum for such Person and its Consolidated Subsidiaries of (i)
Consolidated Interest Expense for such period, (ii) income tax expense for such period, (iii) all
amounts attributable to depreciation and amortization for such period, (iv) all non-cash
non-recurring charges for such period, (v) all Rationalization Charges for such period, (vi) other
expense for such period, (vii) equity in losses of affiliates for such period, (viii) foreign
exchange currency losses for such period and (ix) minority interest in net income of subsidiaries
for such period, minus (b) without duplication, to the extent included in determining such
Consolidated Net Income (except with respect to (ii) and (iii) below), (i) any non-cash
extraordinary gains for such period, (ii) cash expenditures (other than Rationalization Charges)
during such period in respect of items that resulted in non-cash non-recurring charges during any
prior period after March 31, 2005, (iii) Excess Cash Rationalization Charges, (iv) other income for
such period, (v) equity in earnings of affiliates for such period, (vi) foreign exchange currency
gains for such period and (vii) minority interest in net losses of subsidiaries for such period,
all determined on a consolidated basis in accordance with GAAP. Each item referred to in this
definition and not defined elsewhere in this Agreement will be computed by a method consistent with
that used in preparing the financial statements referred to in Section 3.04.

          “Consolidated European J.V. EBITDA” means, for the European J.V. and its Consolidated
Subsidiaries for any period, Consolidated Net Income of the European J.V. for such period plus (a)
without duplication and to the extent deducted in determining such Consolidated Net Income, the sum
for the European J.V. and its Consolidated Subsidiaries of (i) Consolidated Interest Expense for
such period, (ii) income tax expense for such period, (iii) all amounts attributable to
depreciation and amortization for such period, (iv) all non-cash non-recurring charges for such
period, (v) all Rationalization Charges taken by the European J.V. and its Consolidated
Subsidiaries for such period, (vi) other expense for such period, (vii) equity in losses of
affiliates for such period, (viii) foreign exchange currency losses for such period and (ix)
minority interest in net income of subsidiaries for such period, minus (b) without duplication, to

 

 

9

the extent included in determining such Consolidated Net Income (except with respect to (ii)
and (iii) below), (i) any non-cash extraordinary gains for such period, (ii) cash expenditures
(other than Rationalization Charges) during such period in respect of items that resulted in
non-cash non-recurring charges during any prior period after March 31, 2003, (iii) Excess J.V. Cash
Rationalization Charges, (iv) other income for such period, (v) equity in earnings of affiliates
for such period, (vi) foreign exchange currency gains for such period and (vii) minority interest
in net losses of subsidiaries for such period, all determined on a consolidated basis in accordance
with GAAP. Each item referred to in this definition and not defined elsewhere in this Agreement
will be computed by a method consistent with that used in preparing the financial statements
referred to in Section 3.04. For purposes of Section 6.11, Consolidated European J.V. EBITDA for
any period of four consecutive fiscal quarters will be determined in Euros based upon the Exchange
Rate in effect on the last day of the applicable period.

          “Consolidated Interest Expense” of any Person means, for any period the sum of,
without duplication, (a) the consolidated interest expense (including imputed interest expense in
respect of Capital Lease Obligations and excluding fees and other origination costs included in
interest expense and arising from Indebtedness incurred at any time) of such Person and its
Consolidated Subsidiaries for such period, determined in accordance with GAAP but excluding
capitalized interest, (b) all cash dividends paid during such period in respect of Permitted
Preferred Stock of such Person and its Consolidated Subsidiaries and (c) all finance expense of
such Person and its Consolidated Subsidiaries related to Securitization Transactions, excluding
amortization of origination and other fees.

          “Consolidated Net Income” of any Person means, for any period, the net income or loss
of such Person and its Consolidated Subsidiaries for such period determined in accordance with
GAAP.

          “Consolidated Net J.V. Indebtedness” means, at any date, (a) the sum for the European
J.V. and its Consolidated Subsidiaries at such date, without duplication, of (i) all Indebtedness
(other than obligations in respect of Swap Agreements) that is included on the European
J.V.=s consolidated balance sheet, (ii) all Capital Lease Obligations, (iii) all synthetic
lease financings and (iv) all Securitization Transactions, minus (b) the aggregate amount of cash,
cash equivalents and Permitted Investments in excess of $100,000,000 held at such time by the
European J.V. and its Consolidated Subsidiaries, all determined in accordance with GAAP. For
purposes of computing Consolidated Net J.V. Indebtedness, (A) the amount of any synthetic lease
financing shall equal the amount that would be capitalized in respect of such lease if it were a
Capital Lease Obligation, and (B) Indebtedness owing by the European J.V. or any of its
Consolidated Subsidiaries to Goodyear or any of its Consolidated Subsidiaries shall be disregarded.
For purposes of Section 6.11, Consolidated Net J.V. Indebtedness will be determined in Euros based
upon the Exchange Rate in effect on the last day of the applicable period.

          “Consolidated Net Secured Indebtedness” means, at any date, (a) the sum for Goodyear
and its Consolidated Subsidiaries for such period, without duplication, of

 

 

10

(i) all Indebtedness (other than obligations in respect of Swap Agreements) that is included
on Goodyear’s consolidated balance sheet and is secured by any assets of Goodyear or a Consolidated
Subsidiary, (ii) all Capital Lease Obligations, (iii) all synthetic lease financings, (iv) all
Indebtedness of South Pacific Tyres that is secured by any of its assets or assets of Goodyear or a
Consolidated Subsidiary and (v) all Securitization Transactions, minus (b) the aggregate amount of
cash, cash equivalents and Permitted Investments in excess of $400,000,000 held at such time by
Goodyear and the Consolidated Subsidiaries, all determined in accordance with GAAP. For purposes
of computing Consolidated Net Secured Indebtedness, the amount of any synthetic lease financing
shall equal the amount that would be capitalized in respect of such lease if it were a Capital
Lease Obligation.

          “Consolidated Revenue” means, for any period, the revenues of Goodyear and its
Consolidated Subsidiaries for such period, determined in accordance with GAAP.

          “Consolidated Subsidiary” means with respect to any Person, at any date, each
Subsidiary of such Person the accounts of which would be consolidated with those of such Person in
such Person’s consolidated financial statements prepared in accordance with GAAP.

          “Consolidated Total Assets” means, at any date, the total assets of Goodyear and its
Consolidated Subsidiaries determined in accordance with GAAP.

          “Continuation Request” means a request by any Borrower to continue a Revolving
Borrowing or Term Borrowing in accordance with Section 2.07 in substantially the form of Exhibit B
hereto.

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

          “Credit Documents” means this Agreement, the Amendment and Restatement Agreement, the
Issuing Bank Agreements, any letter of credit applications referred to in Section 2.04(a) or (b),
any promissory notes delivered pursuant to Section 2.09(e) and the Security Documents.

          “Credit Facilities Agreements” means the First Lien Agreement, the Second Lien
Agreement and the European Facilities Agreement.

          “Credit Facilities Documents” means the Credit Facilities Agreements, the Guarantee
and Collateral Agreement, the First Lien Guarantee and Collateral Agreement, the Second Lien
Guarantee and Collateral Agreement and the other Security Documents (as such term is defined in any
Credit Facilities Agreement).

          “Credit Parties” means the J.V. Loan Parties, Goodyear and the US Subsidiary
Guarantors.

 

 

11

          “Customer Capital Expenditures” shall mean all or any portion of the purchase price of
equipment or other fixed assets purchased for use in the business of Goodyear or any Subsidiary
that is paid directly, or reimbursed to Goodyear or any Subsidiary, by customers of Goodyear or any
of the Subsidiaries that are not Affiliates of Goodyear.

          “Default” means any event or condition which constitutes an Event of Default or which
upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

          “Designated Debt” means Indebtedness of Goodyear that matures during any of the
calendar years 2005, 2006, 2007 and 2008.

          “Designated Obligations” means (a) with respect to ABT Loans, the Euro Equivalent of
all ABT Obligations of the Credit Parties in respect of (i) the principal of and interest on the
ABT Loans and (ii) commitment fees in respect of unused ABT Commitments described in Section
2.12(a), in each case regardless of whether then due and payable, (b) with respect to LC Exposures,
(i) the Euro Equivalent of the participations of the Lenders in the Letters of Credit and (ii) the
Euro Equivalent of all ABT Obligations of the Credit Parties in respect of (A) the principal of and
interest on unreimbursed LC Disbursements and (B) participation fees in respect of Letters of
Credit described in Section 2.12(b), in each case regardless of whether then due and payable, (c)
with respect to Swingline Exposures, (i) the ABT Obligations of the Credit Parties to the Swingline
Lender in respect of interest on the Swingline Loans accrued prior to the acquisition of
participations in the Swingline Loans pursuant to Section 7.02 and (ii) the participations of the
Lenders in the principal of and interest on the Swingline Loans, (d) with respect to GDTG Loans,
the Euro Equivalent of all GDTG/Term Obligations of the Credit Parties in respect of (i) the
principal of and interest on the GDTG Loans, and (ii) commitment fees in respect of unused GDTG
Commitments described in Section 2.12(a), in each case regardless of whether then due and payable,
and (e) with respect to Term Loans, all GDTG/Term Obligations of the Credit Parties in respect of
the principal of and interest on the Term Loans, regardless of whether then due and payable.

          “Disclosure Documents” means (a) the Information Memorandum, (b) reports of Goodyear
on Forms 10-K, 10-Q and 8-K, and any amendments thereto, that shall have been (i) filed with the
Securities and Exchange Commission on or prior to March 24, 2005, or (ii) filed with the Securities
and Exchange Commission after such date and prior to the Effective Date and delivered to the
Administrative Agent.

          “Dividend Availability Period” means a period commencing on the first date that the
Applicable Ratings are Ba2 or better and BB or better, respectively, and ending on the first date
thereafter that either Applicable Rating has for a consecutive 12-month period been lower than Ba3
or BB-. If at any time either, but not both, of the Applicable Ratings is not so maintained as a
public rating, the Applicable Rating that is not maintained shall be disregarded and the
commencement, continuance or termination of any Dividend Availability Period shall be based solely
on the Applicable Rating that is maintained as a public rating (i.e., as if the Applicable
Rating not so maintained were Ba2

 

 

12

or better or BB or better, as applicable). At any time that each of the Applicable Ratings is
not maintained as a public rating, each shall be deemed to be lower than Ba3 or BB-, as applicable.

          “Dunlop KG” means Dunlop GmbH & Co. KG, a partnership organized under the laws of the
Federal Republic of Germany.

          “Effective Date” means the date on which the conditions specified in Section 4.01 are
satisfied (or waived in accordance with Section 9.02).

          “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into
by any Governmental Authority, relating in any way to the environment, preservation or reclamation
of natural resources, the presence, the management or release of, or exposure to, any Hazardous
Materials or to health and safety matters.

          “Environmental Liability” means all liabilities, obligations, damages, losses, claims,
actions, suits, judgments, orders, fines, penalties, fees, expenses and costs (including
administrative oversight costs, natural resource damages and remediation costs), whether contingent
or otherwise, arising out of or relating to (a) compliance or non-compliance with any Environmental
Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any
Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release of any Hazardous
Materials or (e) any contract, agreement or other consensual arrangement pursuant to which
liability is assumed or imposed with respect to any of the foregoing.

          “Equity Interests” means shares of capital stock, partnership interests, membership
interests in limited liability companies, beneficial interests in trusts or other equity ownership
interests in any Persons, and any warrants, options or other rights entitling the holders thereof
to purchase or acquire any such equity interests.

          “Equity Proceeds” means Net Cash Proceeds from issuances or sales of Equity Interests
(other than to directors, officers or employees of Goodyear or any Subsidiary in connection with
compensation or incentive arrangements) of Goodyear after the Effective Date.

          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time.

          “ERISA Affiliate” means any trade or business (whether or not incorporated) that,
together with Goodyear or any Subsidiary, is treated as a single employer under Section 414(b) or
(c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is
treated as a single employer under Section 414 of the Code.

          “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder, with respect to any Plan (other than

 

 

13

an event for which the 30 day notice period is waived or an event described in Section 4043.33
of Title 29 of the Code of Federal Regulations); (b) the existence with respect to any Plan of an
“accumulated funding deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA) as
to which a waiver has not been obtained; (c) the incurrence by Goodyear, a Subsidiary or any ERISA
Affiliate of any liability under Title IV of ERISA with respect to the termination of any Plan; (d)
the treatment of a Plan amendment as a termination under Section 4041 of ERISA; (e) any event or
condition, other than the Transactions, that would be materially likely to result in the
termination of, or the appointment of a trustee to administer, any Plan or Multiemployer Plan under
Section 4042 of ERISA; (f) the receipt by Goodyear, a Subsidiary or any ERISA Affiliate from the
PBGC or a plan administrator of any notice of an intention to terminate any Plan or to appoint a
trustee to administer any Plan; (g) the incurrence by Goodyear, any Subsidiary or any ERISA
Affiliate of any liability under Title IV of ERISA with respect to the withdrawal or partial
withdrawal from any Plan or Multiemployer Plan; or (h) the receipt by Goodyear, any Subsidiary or
any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from Goodyear, any
Subsidiary or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability
or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in
reorganization, within the meaning of Title IV of ERISA.

          “EURIBO Rate” means, with respect to any Eurocurrency Borrowing denominated in Euros
for any Interest Period, the rate sponsored by the Banking Federation of the European Union and the
Financial Markets Association and appearing on page 248 of Dow Jones Markets Service (or on any
successor or substitute page of such Service, or any successor to or substitute for such Service,
providing rate quotations comparable to those currently provided on such page of such Service, as
determined by the Administrative Agent from time to time for purposes of providing quotations of
interest rates applicable to Euro deposits in the Euro interbank market) at approximately 11:00
a.m., Brussels time, two Business Days prior to the commencement of such Interest Period, as the
rate for deposits in Euros with a maturity comparable to such Interest Period; provided
that in the event that such rate is not available at such time for any reason with respect to such
Eurocurrency Borrowing, then the “EURIBO Rate” with respect to such Eurocurrency Borrowing for such
Interest Period shall be the rate (rounded upwards, if necessary, to the next 1/100 of 1%) at which
deposits of €5,000,000 and for a maturity comparable to such Interest Period are offered by the
principal London office of the Administrative Agent in immediately available funds in the London
interbank market at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

          “Euro” or “€” means the lawful currency of the member states of the European
Union that has adopted a single currency in accordance with applicable law or treaty.

          “Euro Equivalent” means, on any date of determination, (a) with respect to any amount
in Euros, such amount, and (b) with respect to any amount in US Dollars or Pounds Sterling, the
equivalent in Euros of such amount, determined by the Administrative Agent using the Exchange Rate
or the LC Exchange Rate, as applicable,

 

 

14

with respect to US Dollars or Pounds Sterling, as the case may be, in effect for such amount
on such date. The Euro Equivalent at any time of the amount of any Letter of Credit, LC
Disbursement or Loan denominated in US Dollars or Pounds Sterling shall be the amount most recently
determined as provided in Section 1.05(b).

          “Eurocurrency”, when used in reference to any Loan or Borrowing, refers to whether
such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted Eurocurrency Rate.

          “European Facilities Agreement” means this Agreement, the Amended and Restated Term
Loan and Revolving Credit Agreement dated as of March 31, 2003, as amended and restated as of the
Effective Date, among the European J.V., the other borrowers thereunder, certain lenders, certain
issuing banks, JPMEL, as administrative agent, and JPMCB, as collateral agent.

          “European J.V.” means Goodyear Dunlop Tires Europe B.V., a corporation organized under
the laws of The Netherlands.

          “Event of Default” has the meaning assigned to such term in Section 7.01.

          “Excess Cash Rationalization Charges” means, for any period, cash expenditures of
Goodyear and its Consolidated Subsidiaries in such period with respect to Rationalization Charges
recorded on Goodyear’s consolidated income statement after March 31, 2005; provided,
however, that for such cash expenditures incurred after March 31, 2005, Excess Cash
Rationalization Charges shall only include the aggregate amount of such cash expenditures which
exceed the sum of $150,000,000 plus 50% of Equity Proceeds received after the Effective Date.

          “Excess J.V. Cash Rationalization Charges” means, for any period, cash expenditures of
the European J.V. and its Consolidated Subsidiaries in such period with respect to Rationalization
Charges recorded on the European J.V.’s consolidated income statement after March 31, 2005;
provided, however, that for such cash expenditures incurred after March 31, 2005,
Excess Cash Rationalization Charges shall only include the aggregate amount of such cash
expenditures which exceed the sum of $75,000,000 plus 50% of J.V. Equity Proceeds received by the
European J.V. after the Effective Date.

          “Exchange Rate” means, on any day, with respect to US Dollars, Pounds Sterling or any
other currency in relation to Euros, the rate at which such currency may be exchanged into Euros,
as set forth at approximately 12:00 noon, London time, on such day on the Reuters World Currency
Page for US Dollars, Pounds Sterling or such other currency, as applicable. In the event that any
such rate does not appear on the applicable Reuters World Currency Page, the Exchange Rate shall be
determined by reference to such other publicly available service for displaying exchange rates as
may be agreed upon by the Administrative Agent and the European J.V. or, in the absence of such
agreement, such Exchange Rate shall instead be the arithmetic average of the spot rates of exchange
of the Administrative Agent, at or about 11:00 a.m., London time, on such date for the purchase of
Euros for delivery two Business Days later; provided that if at the

 

 

15

time of any such determination, for any reason, no such spot rate is being quoted, the
Administrative Agent, after consultation with the European J.V., may use any reasonable method it
deems appropriate to determine such rate, and such determination shall be conclusive absent
manifest error.

          “Excluded Subsidiary” means any Subsidiary with only nominal assets and no operations.
No Subsidiary shall be an Excluded Subsidiary if it is a Guarantor or a Grantor under the First
Lien Guarantee and Collateral Agreement, the Second Lien Guarantee and Collateral Agreement or the
Third Lien Collateral Agreement or a Subsidiary Guarantor or Grantor Subsidiary Guarantor under the
Junior Lien Indenture.

          “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, any
Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of
any Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income
by the jurisdiction under the laws of which such recipient is organized or in which its principal
office is located or, in the case of any Lender, in which its applicable lending office is located,
(b) any branch profits taxes or any similar tax imposed by any jurisdiction described in clause (a)
above and (c) (i) any withholding tax that is imposed by the United States on amounts payable to a
Foreign Lender (other than an assignee pursuant to Section 7.02 or an assignee pursuant to a
request by the European J.V. under Section 2.19(b)) at the time such Foreign Lender first becomes a
party to this Agreement (or designates a new lending office), except to the extent that such
Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new lending
office (or assignment), to receive additional amounts from such Borrower with respect to such
withholding tax pursuant to Section 2.17(a) or (ii) any withholding tax that is imposed by the
United States on amounts payable to a Foreign Lender that is attributable to such Foreign Lender’s
failure to comply with Section 2.17(e).

          “Existing Credit Agreement” means the Term Loan and Revolving Credit Agreement dated
as of March 31, 2003, as amended, among Goodyear, the European J.V., GDTG, Goodyear KG, Dunlop KG,
Lux Tires, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent and
collateral agent for the Lenders, as in effect immediately prior to the effectiveness of
Transactions to occur on the Effective Date and prior to its amendment and restatement in the form
hereof.

          “Financial Officer” of any Person means the chief financial officer, principal
accounting officer, treasurer or any assistant treasurer of such Person.

          “First Lien Agreement” means the First Lien Credit Agreement dated as of the date
hereof, among Goodyear, certain lenders, certain issuing banks, Citicorp USA, Inc., as syndication
agent, and JPMCB, as administrative agent.

          “First Lien Guarantee and Collateral Agreement” means the Guarantee and Collateral
Agreement among Goodyear, the Subsidiary Guarantors thereunder, the grantors thereunder, certain
other Subsidiaries and JPMCB, as collateral agent, substantially in the form of Exhibit G, as from
time to time amended, supplemented or

 

 

16

otherwise modified (subject to any restrictions on such amendments, supplements or
modifications set forth herein).

          “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than the United States or any political subdivision thereof.

          “Foreign Subsidiary” means any Subsidiary organized under the laws of a jurisdiction
other than the United States or any of its territories or possessions or any political subdivision
thereof.

          “GAAP” means generally accepted accounting principles in the United States or, when
reference is made to financial statements of a Person organized under the laws of a jurisdiction
outside of the United States, generally accepted accounting principles in such jurisdiction, except
that all determinations made under Section 6.11 shall be made in accordance with generally accepted
accounting principles in the United States.

          “GDTG” means Goodyear Dunlop Tires Germany GmbH, a company organized under the laws of
the Federal Republic of Germany.

          “GDTG Availability Period” means the period from and including the Effective Date to
but excluding the earlier of (a) the Maturity Date and (b) the date of termination of all GDTG
Commitments.

          “GDTG Commitment” means, with respect to each GDTG Lender, the commitment of such
Lender to make GDTG Loans hereunder, expressed as an amount representing the maximum permitted
aggregate amount of such Lender’s GDTG Credit Exposure hereunder, as such commitment may be (a)
reduced from time to time pursuant to Section 2.08 and (b) reduced or increased from time to time
pursuant to assignments by or to such Lender pursuant to Section 9.04. The initial amount of each
GDTG Lender’s GDTG Commitment is set forth on Schedule 2.01 or in the Assignment and Assumption
pursuant to which such Lender shall have assumed its GDTG Commitment, as applicable. The initial
aggregate amount of the GDTG Lenders’ GDTG Commitments is €155,000,000.

          “GDTG Credit Exposure” means, with respect to any GDTG Lender at any time, the sum of
the Euro Equivalents of such Lender’s GDTG Loans at such time.

          “GDTG Lender” means a Lender with a GDTG Commitment or, if the GDTG Commitments have
terminated or expired, a Lender with GDTG Credit Exposure.

          “GDTG Loan” means a Loan made pursuant to clause (b) of Section 2.01.

          “GDTG Percentage” means, with respect to any GDTG Lender, the percentage of the total
GDTG Commitments represented by such Lender’s GDTG Commitment. If the GDTG Commitments have been
terminated or expired, the GDTG Percentages shall be determined based upon the GDTG Commitments
most recently in effect, after giving effect to any assignments.

 

 

17

          “GDTG/Term Obligations” means (a) the due and punctual payment of (i) the principal of
and interest (including interest accruing during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or allowable in such
proceeding) on the GDTG Loans and the Term Loans, when and as due, whether at maturity, by
acceleration, upon one or more dates set for prepayment or otherwise and (ii) all other monetary
obligations of the Credit Parties to any of the Secured Parties (including the Collateral Agent
under Section 9.15) under this Agreement and each of the other Credit Documents, including fees,
costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise
(including monetary obligations incurred during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or allowable in such
proceeding), save in each case insofar as the same relate to, or to any Guarantee of, the ABT Loans
or any amount payable in respect thereof, (b) the due and punctual performance of all other
nonmonetary obligations of the Credit Parties to any of the Secured Parties under this Agreement
and the other Credit Documents (other than the performance of obligations in respect of, or under
any Guarantee in respect of, the ABT Loans or any amount payable in respect thereof), (c) the due
and punctual payment and performance of all obligations of any J.V. Subsidiary organized under the
laws of the Federal Republic of Germany under each Swap Agreement that shall at any time have been
specified in a written notice to the Administrative Agent from the European J.V. as being included
in the GDTG/Term Obligations if such Swap Agreement (i) shall have been in effect on the Effective
Date with a counterparty that shall have been a Lender or an Affiliate of a Lender immediately
prior to the effectiveness of the amendment and restatement hereof as of the Effective Date or (ii)
shall have been entered into after the Effective Date with any counterparty that shall have been a
Lender or an Affiliate of a Lender at the time such Swap Agreement was entered into and (d) the due
and punctual payment and performance of all obligations of any J.V. Subsidiary organized under the
laws of the Federal Republic of Germany arising out of or in connection with cash management or
similar services that shall at any time have been designated in a written notice to the
Administrative Agent from the European J.V. as being included in the GDTG/Term Obligations and that
are provided by a Person that shall have been a Lender or an Affiliate of a Lender at the time of
such designation; provided that any amount or obligation that is an ABT Obligation shall
not be a GDTG/Term Obligation.

          “GmbH” has the meaning set forth in Section 5.08(c).

          “Goodyear” means The Goodyear Tire & Rubber Company, an Ohio corporation.

          “Goodyear KG” means Goodyear GmbH & Co. KG, a partnership organized under the laws of
the Federal Republic of Germany.

          “Governmental Authority” means the government of the United States, any other nation
or any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government.

 

 

18

          “Grantors” means the European J.V. and each J.V. Subsidiary that has become, or is
required to become, a Grantor (as defined in the Guarantee and Collateral Agreement) pursuant to
Section 4.01(h) or Section 5.08.

          “Guarantee” of or by any Person (the “guarantor”) means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness of any other Person (the “primary obligor”) in any manner,
whether directly or indirectly, and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness or to purchase (or to advance or supply funds for the purchase of) any security for
the payment thereof, (b) to purchase or lease property, securities or services for the purpose of
assuring the owner of such Indebtedness of the payment thereof, (c) to maintain working capital,
equity capital or any other financial statement condition or liquidity of the primary obligor so as
to enable the primary obligor to pay such Indebtedness or (d) as an account party in respect of any
letter of credit or letter of guaranty issued to support such Indebtedness; provided, that
the term Guarantee shall not include endorsements for collection or deposit in the ordinary course
of business. The amount of any Guarantee of any guaranteeing person shall be deemed to be the
lower of (a) an amount equal to the stated or determinable amount of the primary obligation in
respect of which such Guarantee is made and (b) the maximum amount for which such guaranteeing
person may be liable pursuant to the terms of the instrument embodying such Guarantee, unless such
primary obligation and the maximum amount for which such guaranteeing person may be liable are not
stated or determinable, in which case the amount of such Guarantee shall be such guaranteeing
person’s maximum reasonably anticipated liability (assuming such person is required to perform) in
respect thereof as determined in such person’s good faith.

          “Guarantee and Collateral Agreement” means the Guarantee and Collateral Agreement
among Goodyear, the Subsidiary Guarantors, the Grantors, certain other Subsidiaries, the Lenders
and the Collateral Agent substantially in the form of Exhibit F hereto, as from time to time
amended, supplemented or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein).

          “Hazardous Materials” means (a) petroleum products and byproducts, asbestos, urea
formaldehyde foam insulation, polychlorinated biphenyls, radon gas, chlorofluorocarbons and all
other ozone-depleting substances; and (b) any pollutant or contaminant or any hazardous, toxic,
radioactive or otherwise regulated chemical, material, substance or waste that is prohibited,
limited or regulated pursuant to any applicable Environmental Law.

          “Indebtedness” of any Person means, without duplication, (a) all obligations of such
Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes
or similar instruments, (c) all obligations of such Person under conditional sale or other title
retention agreements relating to property acquired by such Person, (d) all obligations of such
Person in respect of the deferred purchase price of property or services (excluding accounts
payable incurred in the

 

 

19

ordinary course of business), (e) all Indebtedness of others secured by (or for which the
holder of such Indebtedness has an existing right to be secured by) any Lien on property owned or
acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, (f) all
Guarantees by such Person of Indebtedness of others, (g) all Capital Lease Obligations of such
Person, (h) all obligations, contingent or otherwise, of such Person as an account party in respect
of letters of credit and letters of guaranty, (i) all Securitization Transactions of such Person
and (j) all obligations of such Person in respect of Swap Agreements of such Person. The
Indebtedness of any Person shall include the Indebtedness of any other entity (including any
partnership in which such Person is a general partner) to the extent such Person is liable therefor
as a result of such Person’s ownership interest in such entity.

          “Indemnified Taxes” means Taxes other than Excluded Taxes.

          “Indemnitee” has the meaning set forth in Section 9.03.

          “Information” has the meaning set forth in Section 9.12.

          “Information Memorandum” means the Confidential Information Memorandum dated March
2005 relating to Goodyear and the Transactions.

          “Intellectual Property” has the meaning set forth in the Guarantee and Collateral
Agreement.

          “Intercompany Items” means obligations owed by the Borrower or any Subsidiary to the
Borrower or any other Subsidiary.

          “Interest Payment Date” means (a) with respect to any Eurocurrency Loan, the last day
of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of
a Eurocurrency Borrowing with an Interest Period of more than three months’ duration, each day
prior to the last day of such Interest Period that occurs at intervals of three months’ duration
after the first day of such Interest Period and (b) with respect to any Swingline Loan, the day
that such Loan is required to be repaid.

          “Interest Period” means, with respect to any Eurocurrency Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically corresponding day in the
calendar month that is one, two, three or six months thereafter (or, in the case of Revolving
Loans, one or two weeks), as any Borrower may elect; provided that (i) if any Interest
Period would end on a day other than a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless such next succeeding Business Day would fall in the next
calendar month, in which case such Interest Period shall end on the next preceding Business Day and
(ii) any Interest Period pertaining to a Eurocurrency Borrowing that commences on the last Business
Day of a calendar month (or on a day for which there is no numerically corresponding day in the
last calendar month of such Interest Period) shall end on the last Business Day of the last
calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially
shall be the date on which such Borrowing is made and, in the case of a

 

 

20

Borrowing, thereafter shall be the effective date of the most recent continuation of such
Borrowing.

          “Investments” has the meaning assigned to such term in Section 6.05.

          “ Issuing Bank” shall mean JPMCB and BNP Paribas, and each other financial
institution that has entered into an Issuing Bank Agreement, each in its capacity as an issuer of
Letters of Credit hereunder, and its successors in such capacity as provided in Section 2.04(i).
Each Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by
Affiliates or branches of such Issuing Bank, in which case the term “Issuing Bank” shall include
any such Affiliate or branch with respect to Letters of Credit issued by such Affiliate or branch.

          “Issuing Bank Agreement” means an agreement in form reasonably satisfactory to the
European J.V., the Administrative Agent and a financial institution pursuant to which such
financial institution agrees to act as an Issuing Bank hereunder.

          “JPMCB” means JPMorgan Chase Bank, N.A., and its successors.

          “JPMEL” means J.P. Morgan Europe Limited, and its successors.

          “Junior Lien Indenture” means the Indenture dated as of March 12, 2004, among the
Borrower, the subsidiary guarantors party thereto and Wells Fargo Bank, N.A., as trustee.

          “Junior Securities” means, collectively, any Senior Subordinated-Lien Indebtedness and
any Indebtedness or preferred Equity Interests issued under Section 6.01(q).

          “J.V. Equity Proceeds” means Net Cash Proceeds from issuances or sales of Equity
Interests (other than to directors, officers or employees of the European J.V. or any J.V.
Subsidiary in connection with compensation or incentive arrangements) of the European J.V. after
the Effective Date.

          “J.V. Loan Parties” means the European J.V. and the Subsidiary Guarantors.

          “J.V. Subsidiary” means any subsidiary of the European J.V.

          “KG” has the meaning set forth in Section 5.08(c).

          “LC Commitment” means, as to any Issuing Bank, the maximum permitted amount of the LC
Exposure that may be attributable to Letters of Credit issued by such Issuing Bank, as set forth in
such Issuing Bank’s Issuing Bank Agreement.

          “LC Disbursement” shall mean a payment made by an Issuing Bank in respect of a Letter
of Credit. The amount of any LC Disbursement made by an Issuing

 

 

21

Bank in US Dollars or Pounds Sterling and not reimbursed by the applicable Borrower shall be
determined as set forth in paragraph (e) or (l) of Section 2.04, as applicable.

          “LC Exchange Rate” means, on any day, with respect to Euros in relation to US Dollars
or Pounds Sterling, the rate at which Euros may be exchanged into such currency, as set forth at
approximately 12:00 noon, New York City time, on such day on the applicable Reuters World Currency
Page. In the event that any such rate does not appear on the applicable Reuters World Currency
Page, the LC Exchange Rate shall be determined by reference to such other publicly available
service for displaying exchange rates as may be agreed upon by the Administrative Agent and the
Borrower or, in the absence of such agreement, such LC Exchange Rate shall instead be the
arithmetic average of the spot rates of exchange of the Administrative Agent, at or about 11:00
a.m., London time, on such date for the purchase of US Dollars or Pounds Sterling, as the case may
be, with Euros for delivery two Business Days later; provided that if at the time of any
such determination, for any reason, no such spot rate is being quoted, the Administrative Agent,
after consultation with the European J.V., may use any reasonable method it deems appropriate to
determine such rate, and such determination shall be conclusive absent manifest error.

          “LC Exposure” shall mean, at any time, the sum of (a) the aggregate of the Euro
Equivalents of the undrawn amounts of all outstanding Letters of Credit and (b) the aggregate of
the Euro Equivalents of the amounts of all LC Disbursements that have not yet been reimbursed by or
on behalf of the Borrowers at such time. The LC Exposure of any ABT Lender at any time shall be
such Lender’s ABT Percentage of the aggregate LC Exposure.

          “LC Participation Calculation Date” means, with respect to any LC Disbursement made in
a currency other than Euros, (a) the date on which the Issuing Bank shall advise the Administrative
Agent that it purchased with Euros the currency used to make such LC Disbursement, or (b) if the
Issuing Bank shall not advise the Administrative Agent that it made such a purchase, the date on
which such LC Disbursement is made.

          “Lenders” means the Persons listed on Schedule 2.01 and any other Person that shall
have become a party hereto pursuant to an Assignment and Assumption, other than any such Person
that ceases to be a party hereto pursuant to an Assignment and Assumption. Unless the context
otherwise requires, the term “Lender” includes the Swingline Lender.

          “Letter of Credit” shall mean any letter of credit issued pursuant to this Agreement.

          “LIBO Rate” means, with respect to any Eurocurrency Borrowing denominated in US
Dollars or in Pounds Sterling for any Interest Period, the rate appearing on the applicable page of
the Dow Jones Market Service for such currency (or on any successor or substitute page of such
Service, or any successor to or substitute for such Service, providing rate quotations comparable
to those currently provided on such

 

 

22

page of such Service, as determined by the Administrative Agent from time to time for purposes
of providing quotations of interest rates applicable to deposits in the London interbank market) at
approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest
Period, as the rate for deposits in the applicable currency with a maturity comparable to such
Interest Period. In the event that such rate is not available at such time for any reason with
respect to any such Eurocurrency Borrowing, then the “LIBO Rate” with respect to such
Eurocurrency Borrowing for such Interest Period shall be the rate (rounded upwards, if necessary,
to the next 1/100 of 1%) at which deposits of US$5,000,000 or £5,000,000, as the case may be, and
for a maturity comparable to such Interest Period are offered by the principal London office of the
Administrative Agent in immediately available funds in the London interbank market at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period.

          “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, French
delegation of claims, pledge, hypothecation, encumbrance, charge or security interest in, on or of
such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital
lease or title retention agreement (or any financing lease having substantially the same economic
effect as any of the foregoing) relating to such asset and (c) in the case of securities, any
purchase option, call or similar right of a third party with respect to such securities.

          “Lien Subordination and Intercreditor Agreement” means the Lien Subordination and
Intercreditor Agreement dated as of March 12, 2004, among the Collateral Agent, Wilmington Trust
Company, Goodyear and the Subsidiary Guarantors.

          “Loans” means (a) the loans made by the Lenders to any Borrower pursuant to this
Agreement and (b) Swingline Loans.

          “Lux Tires” means Goodyear Luxembourg Tires S.A., a société anonyme organized under
the laws of Luxembourg.

          “Majority Lenders” means, at any time, Lenders having aggregate Revolving Credit
Exposures, Term Loans and unused Commitments representing at least a majority of the sum of the
total Revolving Credit Exposures, Term Loans and unused Commitments at such time.

          “Material Adverse Change” means a material adverse change in or effect on (a) the
business, operations, properties, assets or financial condition (including as a result of the
effects of any contingent liabilities thereon) of Goodyear and the Subsidiaries, taken as a whole,
(b) the ability of the Credit Parties, taken as a whole, to perform obligations under this
Agreement and the other Credit Documents that are material to the rights or interests of the
Lenders or (c) the rights of or benefits available to the Lenders or the Issuing Banks under this
Agreement and the other Credit Documents that are material to the interests of the Lenders or the
Issuing Banks.

 

 

23

          “Material Indebtedness” means Indebtedness (other than the Loans and Letters of
Credit), or obligations in respect of one or more Swap Agreements, of any one or more of Goodyear
and the Subsidiaries in an aggregate principal amount exceeding $50,000,000. For purposes of
determining Material Indebtedness, the “principal amount” of the obligations of Goodyear or any
Subsidiary in respect of any Swap Agreement at any time shall be the maximum aggregate amount
(giving effect to any netting agreements) that Goodyear or such Subsidiary would be required to pay
if such Swap Agreement were terminated at such time, calculated in accordance with the terms of
such Swap Agreement.

          “Material Subsidiary” means, at any time, each Subsidiary other than Subsidiaries that
do not represent more than 2.5% for any such individual Subsidiary, or more than 5% in the
aggregate for all such Subsidiaries, of either (a) Consolidated Total Assets or (b) Consolidated
Revenue for the period of four fiscal quarters most recently ended.

          “Maturity Date” means April 30, 2010.

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

          “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.

          “NAIC” means the National Association of Insurance Commissioners.

          “Net Cash Proceeds” means, with respect to any Prepayment Event, (a) the cash proceeds
received in respect of such event including (i) any cash received in respect of any non-cash
proceeds (including as a result of any monetization of non-cash proceeds), but only as and when
received, (ii) in the case of a casualty, insurance proceeds received, and (iii) in the case of a
condemnation or similar event, condemnation awards and similar payments received, net of (b) the
sum of (A) all reasonable fees, discounts, commissions and out-of-pocket expenses (including any
legal, title and recording tax expenses) paid by the European J.V. and the J.V. Subsidiaries to
third parties (other than Affiliates) in connection with such event, (B) in the case of a sale,
transfer or other disposition of any property or asset (including pursuant to a Sale and Leaseback
Transaction or a casualty or a condemnation or similar proceeding), the amount of all payments
required to be made by the European J.V. and the J.V. Subsidiaries as a result of such event to
repay Indebtedness (other than the Loans) secured by such asset or otherwise subject to mandatory
prepayment as a result of such event, and (C) the amount of all taxes paid (or reasonably estimated
to be payable) by the European J.V. and the J.V. Subsidiaries (including taxes required to be paid
or withheld in respect of the transfer of amounts from the recipient thereof to a Borrower), and
the amount of any reserves established by the European J.V. and the J.V. Subsidiaries to fund
contingent liabilities reasonably estimated to be payable, in each case during the year that such
event occurred or the next succeeding year and that are directly attributable to such event (as
determined reasonably and in good faith by a Financial Officer of the European

 

 

24

J.V. or Goodyear); provided that, to the extent and at the time any such amounts are
released to the European J.V. or any J.V. Subsidiary from such reserve, such amounts shall
constitute Net Cash Proceeds. Notwithstanding the foregoing, amounts that would otherwise
constitute Net Cash Proceeds shall not constitute Net Cash Proceeds to the extent that (x) currency
or foreign exchange controls prevent the repatriation of such amounts to the Term Borrowers, (y)
the recipient of such amounts is not a Wholly Owned Subsidiary and (1) the consent of any Person
other than Goodyear or any Wholly Owned Subsidiary is required by applicable law or the terms of
any organizational document of such non-Wholly Owned Subsidiary or other agreement of such
Subsidiary or any Affiliate of such Subsidiary in order for such Subsidiary to transfer such
amounts to a Term Borrower (whether by distribution, loan or advance, repayment of intercompany
Indebtedness or other commercially reasonable means) and (2) Goodyear and the European J.V.
endeavored in good faith to obtain such consents and such consents shall not have been obtained (to
permit the transfer of such proceeds by any of such means) or (z) capital maintenance, corporate
benefit or over collateralization rules prevent the repayment of such amounts by, or repatriation
of such amounts for repayment to, the Term Borrowers. The Net Cash Proceeds received by any
non-Wholly Owned Subsidiary shall be deemed to equal the amount determined as set forth above
multiplied by the European J.V.’s aggregate direct or indirect percentage ownership of such
Subsidiary. The Net Cash Proceeds of any event that is not a Prepayment Event shall be determined
as if such event were a Prepayment Event.

          “Net Intercompany Items” means, in the case of any Subsidiary, (a) the aggregate
amount of the Intercompany Items owed by the Borrower or any other Subsidiary to such Subsidiary
minus (b) the aggregate amount of the Intercompany Items owed by such Subsidiary to the Borrower or
any other Subsidiary.

          “Obligations” means the ABT Obligations and the GDTG/Term Obligations.

          “Other Taxes” means any and all present or future stamp, documentary, excise,
recording, transfer, sales, property or similar taxes, charges or levies arising from any payment
made under any Credit Document or from the execution, delivery or enforcement of, or otherwise with
respect to, any Credit Document.

          “Participant” has the meaning assigned to such term in Section 9.04.

          “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA
and any successor entity performing similar functions.

          “Permitted Encumbrances” means:

     (a) (i) Liens imposed by law for taxes that are not yet due or are being contested
and (ii) deemed trusts and Liens to which the Priority Payables Reserve relates for taxes,
assessments or other charges or levies that are not yet due and payable;

 

 

25

     (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other Liens
imposed by law, arising in the ordinary course of business and securing obligations that
are not overdue by more than 30 days (or any longer grace period available under the terms
of the applicable underlying obligation) or are being contested;

     (c) Liens created and pledges and deposits made (including cash deposits to secure
obligations in respect of letters of credit provided) in the ordinary course of business in
compliance with workers’ compensation, unemployment insurance and other social security
laws or regulations;

     (d) Liens created and deposits made to secure the performance of bids, trade
contracts, leases, statutory obligations, appeal bonds, performance bonds and other
obligations of a like nature, in each case in the ordinary course of business, and Liens
created and deposits made prior to March 31, 2003, in the ordinary course of business to
secure the performance of surety bonds;

     (e) judgment liens;

     (f) supplier’s liens in inventory, other assets supplied or accounts receivable that
result from retention of title or extended retention of title arrangements arising in
connection with purchases of goods in the ordinary course of business; and

     (g) easements, zoning restrictions, rights-of-way and similar encumbrances on real
property and other Liens incidental to the conduct of business or ownership of property
that arise automatically by operation of law or arise in the ordinary course of business
and that do not materially detract from the value of the property of Goodyear and the
Subsidiaries or of the Collateral, in each case taken as a whole, or materially interfere
with the ordinary conduct of business of Goodyear and the Subsidiaries, taken as a whole,
or otherwise adversely affect in any material respect the rights or interests of the
Lenders;

provided that (except as provided in clause (d) above) the term “Permitted Encumbrances”
shall not include any Lien securing Indebtedness for borrowed money.

          “Permitted Investments” means:

     (a) direct obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States (or by any agency thereof to the extent
such obligations are backed by the full faith and credit of the United States), in each
case maturing within one year from the date of acquisition thereof;

     (b) investments in commercial paper maturing within 270 days from the date of
acquisition thereof and having, at such date of acquisition, ratings of A1 from Standard &
Poor’s and P1 from Moody’s;

 

 

26

     (c) investments in certificates of deposit, banker’s acceptances and time deposits
maturing within 180 days from the date of acquisition thereof and issued or guaranteed by
or placed with, and money market deposit accounts issued or offered by, any commercial bank
organized under the laws of the United States or any State thereof which has a short term
deposit rating of A1 from Standard & Poor’s and P1 from Moody’s and has a combined capital
and surplus and undivided profits of not less than $500,000,000;

     (d) fully collateralized repurchase agreements with a term of not more than 30 days
for securities described in clause (a) above and entered into with a financial institution
described in clause (c) above;

     (e) money market funds that (i) comply with the criteria set forth in Securities and
Exchange Commission Rule 2a-7 under the Investment Company Act of 1940, (ii) are rated AAA
by Standard & Poor’s and Aaa by Moody’s and (iii) have portfolio assets of at least
$5,000,000,000; and

     (f) in the case of any Subsidiary that is not a US Subsidiary, (i) marketable direct
obligations issued or unconditionally guaranteed by the sovereign nation in which such
Subsidiary is organized and is conducting business or issued by any agency of such
sovereign nation and backed by the full faith and credit of such sovereign nation, in each
case maturing within one year from the date of acquisition, so long as the indebtedness of
such sovereign nation is rated at least A by Standard & Poor’s or A2 by Moody’s or carries
an equivalent rating from a comparable foreign rating agency, (ii) investments of the type
and maturity described in clauses (b) through (e) of foreign obligors, which investments or
obligors have ratings described in such clauses or equivalent ratings from comparable
foreign rating agencies, (iii) investments of the type and maturity described in clause (c)
in any obligor organized under the laws of a jurisdiction other than the United States that
(A) is a branch or subsidiary of a Lender or the ultimate parent company of a Lender under
one of the Credit Facilities Agreements (but only if such Lender meets the ratings and
capital, surplus and undivided profits requirements of such clause (c)) or (B) carries a
rating at least equivalent to the rating of the sovereign nation in which it is located,
and (iv) other investments of the type and maturity described in clause (c) in obligors
organized under the laws of a jurisdiction other than the United States in any country in
which such Subsidiary is located; provided, that the investments permitted under
this subclause (iv) shall be made in amounts and jurisdictions consistent with Goodyear’s
policies governing short-term investments.

          “Permitted Preferred Stock” has the meaning assigned to such term in Section 6.01(q).

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

 

 

27

          “Plan” means any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV or Section 302 of ERISA or Section 412 of the Code, and in
respect of which Goodyear, any Subsidiary or any ERISA Affiliate is (or, if such plan were
terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section
3(5) of ERISA.

          “Pounds Sterling” or “£” means the lawful currency of the United Kingdom.

          “Prepayment Event” means:

     (a) any sale, transfer, lease or other disposition (including pursuant to a Sale and
Leaseback Transaction other than a Sale and Leaseback Transaction consummated not more than
180 days after the acquisition or completion of construction of the assets subject thereto)
of any property or assets of the European J.V. or any J.V. Subsidiary to any Person other
than the European J.V. or any J.V. Subsidiary, other than dispositions (i) described in
clauses (a), (b), (c) or (h) of Section 6.06 or in Part III of Schedule 6.06 or in
subclause (ii) of clause (e) of Section 6.06, (ii) that result in Net Cash Proceeds not
exceeding $15,000,000 or (iii) of assets that do not constitute Collateral and are not
owned by J.V. Subsidiaries, the Equity Interests of which constitute Collateral; or

     (b) any casualty or other insured damage to, or any taking under power of eminent
domain or by condemnation or similar proceeding of, any property or asset of the European
J.V. or any J.V. Subsidiary, but only to the extent that the Net Cash Proceeds from such
event exceed $15,000,000 and then, if the European J.V. shall notify the Administrative
Agent that it or the applicable J.V. Subsidiary intends to apply such Net Cash Proceeds to
repair, restore or replace the property or asset that shall have been damaged or taken,
such event shall constitute a Prepayment Event only if such repair, restoration or
replacement shall not have commenced within 180 days after such event and the Net Cash
Proceeds of such event will be deemed for purposes of Section 2.11 to equal the amount not
so applied.

          “Principal European Subsidiary” means, any J.V. Subsidiary (other than a Borrower)
organized under the laws of the Federal Republic of Germany, Luxembourg, the Republic of France or
the United Kingdom with Total Assets having a book value in excess of $10,000,000 as of December
31, 2004, or if later, as of the end of the most recent fiscal quarter for which financial
statements have been delivered pursuant to Section 5.01(a) or (b) (other than any Special Excluded
Subsidiary).

          “Priority Payables Reserve” means, at any time, the sum, without duplication, of any
deductions made pursuant to the definitions contained in the First Lien Agreement of “Additional
Inventory Reserves”, “Inventory Reserves”, “Eligible Inventory” and “Inventory Value”, and the full
amount of the liabilities at such time which have a trust imposed to provide for payment thereof or
a security interest, Lien or charge ranking or capable of ranking, in each case senior to or
pari passu with the Liens

 

 

28

created under the Security Documents (as defined in the First Lien Agreement) under Canadian
federal, provincial, territorial, county, municipal or local law with respect to claims for goods
and services taxes, sales tax, income tax, workers’ compensation obligations, vacation pay or
pension fund obligations.

          “Rationalization Charges” means, for any period, cash and non-cash charges related to
rationalization actions designed to reduce capacity, eliminate redundancies and reduce costs.
Rationalization Charges will be computed by a method consistent with that used in preparing the
financial statements referred to in Section 3.04.

          “Register” has the meaning set forth in Section 9.04.

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

          “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests in Goodyear or any Subsidiary,
or any payment (whether in cash, securities or other property) on account of the purchase,
redemption, retirement, acquisition, cancelation or termination of any such Equity Interests or any
option, warrant or other right to acquire any such Equity Interests.

          “Revolving Borrowing” shall mean a Borrowing comprising Revolving Loans.

          “Revolving Commitment” means an ABT Commitment or a GDTG Commitment.

          “Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of
such Lender’s ABT Credit Exposure and GDTG Credit Exposure at such time.

          “Revolving Lender” means a Lender with a Revolving Commitment or, if the Revolving
Commitments have terminated or expired, a Lender with Revolving Credit Exposure.

          “Revolving Loan” means an ABT Loan or a GDTG Loan.

          “Revolving Obligations” means the ABT Obligations.

          “Sale and Leaseback Transaction” means any arrangement whereby Goodyear or a
Subsidiary shall sell or transfer any property, real or personal, used or useful in its business,
whether now owned or hereinafter acquired, and thereafter rent or lease from the buyer or
transferee property that it intends to use for substantially the same purpose or purposes as the
property sold or transferred, other than any such transaction entered into with respect to any
property or any improvements thereto at the time of, or within 180 days after, the acquisition or
completion of construction of such property or

 

 

29

such improvements (or, if later, the commencement of commercial operation of any such
property), as the case may be, to finance the cost of such property or such improvements, as the
case may be.

          “SAVA” means Sava Tires, d.o.o., a corporation organized under the laws of the
Republic of Slovenia.

          “Second Lien Agreement” means the Second Lien Credit Agreement dated as of the date
hereof, among Goodyear, certain lenders and JPMCB, as administrative agent.

          “Second Lien Guarantee and Collateral Agreement” means the Guarantee and Collateral
Agreement among Goodyear, the Subsidiary Guarantors thereunder, the Grantors thereunder, certain
other Subsidiaries and the collateral agent under the Second Lien Agreement substantially in the
form of Exhibit H, as from time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein).

          “Secured Parties” means the Administrative Agent, the Collateral Agent, each Issuing
Bank and each Lender. For purposes of Section 9.15 and each Security Document, “Secured Parties”
shall also include each other Person to which is owed, as applicable, GDTG/Term Obligations or ABT
Obligations, and which has signed an Affiliate Authorization or the Amendment and Restatement
Agreement.

          “Securitization Transaction” means, with respect to any Person, (i) any transfer by
such Person of accounts receivable, rights to future lease payments or residuals or other financial
assets, and related property, or interests therein (a) to a trust, partnership, corporation or
other entity, which transfer is funded in whole or in part, directly or indirectly, by the
incurrence or issuance by the transferee or any successor transferee of Indebtedness or securities
that are to receive payments from, or that represent interests in, the cash flow derived from such
accounts receivable or interests, or (b) directly to one or more investors or other purchasers,
(ii) any Indebtedness of such Person secured substantially entirely by accounts receivable, rights
to future lease payments or residuals or other financial assets, and related property or (iii) any
factoring transaction involving substantially entirely accounts receivable, rights to future lease
payments or residuals or other financial assets, and related property; provided that
“Securitization Transaction” shall not include (A) the sale by any Foreign Subsidiary, in the
ordinary course of its business, of drafts with a bank or other financial institution as the maker
(or otherwise primarily responsible for the payment thereof), bankers acceptances or similar
instruments received by such Foreign Subsidiary from a customer operating in a jurisdiction other
than the United States or any of its territories or possessions or any political subdivision
thereof in satisfaction of accounts receivable or otherwise as consideration for goods sold or
services provided to such customer, (B) the sale, in the ordinary course of business, of drafts not
payable on demand received by Goodyear or any Subsidiary from a customer in satisfaction of
accounts receivable or otherwise as consideration for goods sold or services provided to such
customer pursuant to an arrangement (1) initiated by and entered into at the request of such
customer, and

 

 

30

(2) under which a financial institution has agreed as part of a financing program established
for and at the request of such customer to buy such drafts from such customer’s vendors (which
arrangements may be modified by Goodyear or any Subsidiary to contemplate the repurchase of such
drafts by such customer, or other actions by such customer to reinstate or to pay receivables in
respect of which such drafts were created, in the event of any failure by such financial
institution to buy such drafts) or (C) the sale of accounts receivable or proceeds thereof from
customers of Goodyear and its Affiliates to the extent such sale (x) is initiated by and entered
into at the request of such customers, and (y) involves the sale of such accounts receivable to
financial institutions as part of financing programs established for and at the request of such
customers. The amount of any Securitization Transaction shall be deemed at any time to be the
aggregate outstanding principal amount of the Indebtedness or securities referred to in the
preceding sentence or, if there shall be no such principal amount, the equivalent outstanding
amount of the funded investment.

          “Security Agreement” means any security agreement, pledge agreement, charge agreement,
mortgage, debenture or similar agreement, instrument or security document, or any supplement
thereto creating a Lien on any assets or rights to secure any of the Obligations.

          “Security Documents” means the Guarantee and Collateral Agreement, the German security
trust agreement in respect of the German Security Agreements, the Security Agreements and each
other instrument or document delivered in connection with the cash collateralization of Letters of
Credit or pursuant to Section 5.08 to secure any of the Obligations.

          “Senior Subordinated-Lien Collateral Agent” means, as to any Senior Subordinated-Lien
Indebtedness, the collateral agent under the applicable Senior Subordinated-Lien Indebtedness
Security Documents.

          “Senior Subordinated-Lien Governing Documents” means each Indenture or other agreement
or instrument providing for the issuance or setting forth the terms of any Senior Subordinated-Lien
Indebtedness.

          “Senior Subordinated-Lien Indebtedness” means Indebtedness of Goodyear that (a) is
secured by Liens permitted under Section 6.02(m), but that is not secured by Liens on any
additional assets, (b) constitutes Initial Junior Indebtedness or Designated Junior Obligations
under the Lien Subordination and Intercreditor Agreement, and the Liens securing which are
subordinated under the Lien Subordination and Intercreditor Agreement to the Liens securing the
obligations under the First Lien Agreement and the Second Lien Agreement and (c) does not contain
provisions inconsistent with the restrictions of Schedule 1.01B. Each of Goodyear’s 11% Senior
Secured Notes due 2011 and its Senior Secured Floating Rate Notes due 2011 issued on March 12,
2004, and the Indebtedness under the Third Lien Agreement are Senior Subordinated-Lien
Indebtedness.

 

 

31

          “Senior Subordinated-Lien Obligations” means, as to any Senior Subordinated-Lien
Indebtedness, (a) the principal of and all premium or make-whole amounts, if any, and interest
payable in respect of such Senior Subordinated-Lien Indebtedness, (b) any amounts payable under
Guarantees of such Senior Subordinated-Lien Indebtedness by Subsidiaries and (c) all other amounts
payable by Goodyear or any Subsidiary under such Senior Subordinated-Lien Indebtedness, the
applicable Senior Subordinated-Lien Security Documents (to the extent such amounts relate to such
Senior Subordinated-Lien Indebtedness) or the applicable Senior Subordinated-Lien Governing
Documents.

          “Senior Subordinated-Lien Security Documents” means, as to any Senior
Subordinated-Lien Indebtedness, the security agreements, pledge agreements, mortgages and other
documents creating Liens on assets of Goodyear and the US Subsidiary Guarantors to secure the
applicable Senior Subordinated-Lien Obligations.

          “Special Excluded Subsidiaries” means KDIS Distribution, Vulco France and Pneus
Holding.

          “Specified Jurisdiction” means The United States of America, Canada, the Federal
Republic of Germany, Luxembourg, the Netherlands, the Republic of France and the United Kingdom.

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

          “Statutory Reserves” means, with respect to any currency, the aggregate of the maximum
reserve, liquid asset, fees or similar requirements (including any marginal, special, emergency or
supplemental reserves or other requirements) established by any central bank, monetary authority,
the Board or other Governmental Authority for any category of deposits or liabilities customarily
used to fund loans in such currency, expressed in the case of each such requirement as a decimal,
provided that Statutory Reserves shall not include any such requirements of the Bank of
England, the European Central Bank, the European System of Central Banks or any other monetary or
other authority to the extent covered by Section 2.20. Such reserve percentages shall, in the case
of US Dollar denominated Loans, include those imposed pursuant to Regulation D of the Board.
Eurocurrency Loans shall be deemed to be subject to such reserve, liquid asset or similar
requirements without benefit of or credit for proration, exemptions or offsets that may be
available from time to time to any Lender under any applicable law, rule or regulation, including
Regulation D. Statutory Reserves shall be adjusted automatically on and as of the effective date
of any change in any reserve, liquid asset or similar requirement.

          “subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of
which are consolidated with those of the parent in the parent’s consolidated financial statements
in accordance with GAAP as of such date, as well as any other corporation, limited liability
company, partnership, association or other entity of which

 

32

securities or other ownership interests representing more than 50% of the equity or more than
50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general
partnership interests are, as of such date, owned, controlled or held by the parent or one or more
subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.

          “Subsidiary” means any subsidiary of Goodyear (other than Tire & Wheel Assemblies,
Inc. at any time when not more than 50% of the Equity Interests or 50% of the voting power are, as
of such date, owned or Controlled by Goodyear).

          “Subsidiary Guarantors” means (a) each Borrower (other than the European J.V.), and
(b) each J.V. Subsidiary (other than a Borrower) that is, or is required to be, a party to the
Guarantee and Collateral Agreement.

          “Swap Agreement” means any agreement, including any master agreement, with respect to
any swap, forward, future or derivative transaction or option or similar agreement involving, or
settled by reference to, one or more rates or prices for one or more currencies, commodities,
equity or debt instruments or securities, or economic, financial or pricing indices or measures of
economic, financial or pricing risk or value or any similar transaction or any combination of these
transactions.

          “Swingline Exposure” shall mean, at any time, the sum of the amounts of Swingline
Loans outstanding at such time. The Swingline Exposure of any Lender at any time shall be such
Lender’s ABT Percentage of the total Swingline Exposure at such time.

          “Swingline Lender” shall mean JPMCB, in its capacity as lender of Swingline Loans
hereunder.

          “Swingline Loan” shall mean a Loan made by the Swingline Lender pursuant to Section
2.05.

          “Swingline Rate” means, with respect to any Swingline Loan, (a) the rate at which Euro
deposits with interest periods of one day are offered by JPMCB in the London interbank market at
the time the Administrative Agent determines such rate on such day, divided by (b) 1.00 minus the
Statutory Reserves applicable to such Swingline Loan.

          “Taxes” means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority.

          “Term Borrower” means Goodyear KG or Dunlop KG.

          “Term Lender” means a Lender with a Term Loan Commitment or any outstanding Term Loan.

          “Term Loan” means a Loan made pursuant to clause (c) of Section 2.01.

 

33

          “Term Loan Commitment” means, with respect to each Lender, the commitment, if any, of
such Lender to make Term Loans hereunder on the Effective Date, expressed as amount representing
the maximum aggregate principal amount of the Term Loans to be made by such Lender hereunder, as
such commitment may be (a) reduced from time to time pursuant to Section 2.08 and (b) reduced or
increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04.
The initial amount of each Lender’s Term Loan Commitment is set forth on Schedule 2.01 or in the
Assignment and Assumption pursuant to which such Lender shall have assumed its Term Loan
Commitment, as applicable. The initial aggregate amount of the Lenders’ Term Loan Commitments is
€155,000,000.

          “Third Lien Agreement” means the Third Lien Credit Agreement dated as of the date
hereof, among Goodyear, certain Subsidiaries of Goodyear party thereto, certain lenders and JPMCB,
as administrative agent.

          “Third Lien Collateral Agreement” means the Collateral Agreement dated as of March 12,
2004, among the Borrower, the Subsidiary of the Borrower identified therein and Wilmington Trust
Company, as collateral agent, attached as Exhibit I hereto.

          “Total Assets” of any Subsidiary means (a) in the case of any Subsidiary organized in
a Specified Jurisdiction, (i) the total assets of such Subsidiary, excluding Intercompany Items,
plus (ii) if the Net Intercompany Items of such Subsidiary shall be positive, the amount of such
Net Intercompany Items; and (b) in the case of any other Subsidiary, the total assets of such
Subsidiary, excluding Intercompany Items.

          “Tranche” shall mean a category of Revolving Commitments and extensions of credit
thereunder. For purposes hereof, each of the following composes a separate Tranche: (a) the ABT
Commitments, the ABT Loans, the Letters of Credit and the Swingline Loans, taken together, and (b)
the GDTG Commitments and the GDTG Loans.

          “Transactions” means the amendment and restatement of the Existing Credit Agreement in
the form of this Agreement, the execution, delivery and performance by Goodyear and the Borrowers
of this Agreement and by Goodyear, the European J.V., the Subsidiary Guarantors, the US Subsidiary
Guarantors and the Grantors, as applicable, of the other Credit Documents, the borrowing of the
Loans, the obtaining and use of the Letters of Credit, the creation or continuation of the Liens
and Guarantees provided for in the Security Documents and the other transactions contemplated
hereby.

          “Type”, when used in reference to any Loan or Borrowing, refers to the basis upon
which the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined.
Subject to Section 2.14, the Loans and Borrowings hereunder will be “Eurocurrency” Loans and
“Eurocurrency” Borrowings, as the rate of interest thereon will be determined by reference to the
Adjusted Eurocurrency Rate.

          “US Dollars” or “$” refers to lawful money of the United States of America.

 

34

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

          “US Subsidiary Guarantors” means each US Subsidiary (other than the Excluded
Subsidiaries and the Consent Subsidiaries).

          “Wholly Owned Subsidiary” of any person shall mean a subsidiary of such person of
which securities (except for directors’ qualifying shares) or other ownership interests
representing 100% of the Equity Interests are, at the time any determination is being made, owned,
controlled or held by such person or one or more wholly owned Subsidiaries of such person or by
such person and one or more wholly owned Subsidiaries of such person.

          “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.

          SECTION 1.02. Classification of Loans and Borrowings. For purposes of this Agreement,
Loans may be classified and referred to by Class (e.g., an “ABT Loan”) or by Type
(e.g., a “Eurocurrency Loan”) or by Class and Type (e.g., a “Eurocurrency ABT
Loan”). Borrowings also may be classified and referred to by Class (e.g., an “ABT
Borrowing”) or by Type (e.g., a “Eurocurrency Borrowing”) or by Class and Type
(e.g., a “Eurocurrency ABT Borrowing”).

          SECTION 1.03. Terms Generally. The definitions of terms herein shall apply equally to
the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such Person’s successors and assigns, but shall not be deemed to
include the subsidiaries of such Person unless express reference is made to such subsidiaries, (c)
the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to
refer to this Agreement in its entirety and not to any particular provision hereof, (d) all
references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to
Articles and Sections of, and Exhibits and Schedules to, this Agreement and (e) the words “asset”
and “property” shall be construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, securities, accounts and contract
rights.

          SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly provided herein,
all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in
effect from time to time; provided that, if the

 

35

European J.V. notifies the Administrative Agent that the European J.V. requests an amendment
to any provision hereof to eliminate the effect of any change occurring after the date hereof in
GAAP or in the application thereof on the operation of such provision (or if the Administrative
Agent notifies the European J.V. and Goodyear that the Majority Lenders request an amendment to any
provision hereof for such purpose), regardless of whether any such notice is given before or after
such change in GAAP or in the application thereof, then such provision shall be interpreted on the
basis of GAAP as in effect and applied immediately before such change shall have become effective
until such notice shall have been withdrawn or such provision amended in accordance herewith.

          SECTION 1.05. Currency Translation. (a) For purposes of determining compliance as of
any date with Section 6.01, 6.02, 6.03, 6.05 or 6.06, amounts incurred or outstanding in currencies
other than US Dollars shall be translated into US Dollars at the exchange rates in effect on the
first Business Day of the fiscal quarter in which such determination occurs or in respect of which
such determination is being made, as such exchange rates shall be determined in good faith by
Goodyear. No Default or Event of Default shall arise as a result of any limitation set forth in US
Dollars in Section 6.01, 6.02, 6.03, 6.05 or 6.06 being exceeded solely as a result of changes in
currency exchange rates from those rates applicable on the first day of the fiscal quarter in which
such determination occurs or in respect of which such determination is being made. For purposes of
determining compliance as of any date with Section 6.09, amounts incurred in Euros during 2005
shall be translated into US Dollars at the exchange rate of $1.25 to €1.00, and amounts incurred
in Euros during any subsequent year shall be translated into US Dollars at the exchange rate
determined by Goodyear and used in its Annual Operating Plan for such year (which exchange rate
shall be determined reasonably and set forth in the first certificate delivered pursuant to Section
5.01(c) during such year).

          (b) (i) The Administrative Agent shall determine the Euro Equivalent of any Letter of Credit
denominated in US Dollars or Pounds Sterling as of the date of the issuance thereof and as of each
subsequent date on which such Letter of Credit shall be renewed or extended or the stated amount of
such Letter of Credit shall be increased, in each case using the Exchange Rate for the applicable
currency in relation to Euros in effect on the date of determination, and each such amount shall be
the Euro Equivalent of such Letter of Credit until the next required calculation thereof pursuant
to this Section 1.05(b)(i). The Administrative Agent shall in addition determine the Euro
Equivalent of any Letter of Credit denominated in US Dollars or Pounds Sterling as of the CAM

Exchange Date as set forth in Section 7.03.

          (ii) The Administrative Agent shall determine the Euro Equivalent of any Borrowing
denominated in US Dollars or Pounds Sterling as of the date of the commencement of the initial
Interest Period therefor and as of the date of the commencement of each subsequent Interest Period
therefor, in each case using the Exchange Rate for the applicable currency in relation to Euros in
effect on the date that is three Business Days prior to the date on which the applicable Interest
Period shall commence, and each such amount shall be the Euro Equivalent of such Borrowing until
the next required calculation thereof pursuant to this Section 1.05(b)(ii). The Administrative
Agent shall in addition determine the Euro Equivalent of any Borrowing

 

36

denominated in US Dollars or Pounds Sterling as of the CAM Exchange Date as set forth in Section
7.02.

          (iii) The Euro Equivalent of any LC Disbursement made by any Issuing Bank in US Dollars or
Pounds Sterling and not reimbursed by the Borrower shall be determined as set forth in paragraphs
(e) or (l) of Section 2.04, as applicable. In addition, the Euro Equivalent of the LC Exposures
shall be determined as set forth in paragraph (j) of Section 2.04, at the time and in the
circumstances specified therein.

          (iv) The Administrative Agent shall notify the Borrowers, the applicable Lenders and the
applicable Issuing Bank of each calculation of the Euro Equivalent of each Letter of Credit,
Borrowing and LC Disbursement.

ARTICLE II

The Credits

          SECTION 2.01. Commitments. Subject to the terms and conditions set forth herein, (a)
each ABT Lender agrees to make ABT Loans to any Borrower from time to time during the ABT
Availability Period in Euros, US Dollars or Pounds Sterling in an aggregate principal amount that
will not result in (i) such Lender’s ABT Credit Exposure exceeding such Lender’s ABT Commitment or
(ii) the aggregate of the Euro Equivalents of the principal amounts of ABT Borrowings denominated
in Pounds Sterling exceeding €50,000,000, (b) each GDTG Lender agrees to make GDTG Loans to GDTG
from time to time during the GDTG Availability Period in Euros or US Dollars in an aggregate
principal amount that will not result in such Lender’s GDTG Credit Exposure exceeding such Lender’s
GDTG Commitment and (c) each Term Loan Lender agrees (i) to make a Term Loan to Goodyear KG on the
Effective Date in Euros in a principal amount not exceeding its Applicable Term Percentage of
€40,000,000 and (ii) to make a Term Loan to Dunlop KG on the Effective Date in Euros in a
principal amount not exceeding its Applicable Term Percentage of €115,000,000. Within the
foregoing limits and subject to the terms and conditions set forth herein, the Borrowers may
borrow, prepay and reborrow Revolving Loans. Amounts repaid in respect of Term Loans may not be
reborrowed.

          SECTION 2.02. Loans and Borrowings. (a) Each Loan (other than a Swingline Loan)
shall be made as part of a Borrowing consisting of Loans of the same Class made by the Lenders
ratably in accordance with their respective Commitments of the applicable Class. The failure of
any Lender to make any Loan required to be made by it shall not relieve any other Lender of its
obligations hereunder; provided that the Commitments of the Lenders are several and no
Lender shall be responsible for any other Lender’s failure to make Loans as required.

          (b) Subject to Section 2.14, each Revolving Borrowing and Term Borrowing shall be comprised
entirely of Eurocurrency Loans. Each Lender at its option may make any Eurocurrency Loan by
causing any domestic or foreign branch or Affiliate of such Lender to make such Loan;
provided that any exercise of such option shall not

 

37

affect the obligation of the relevant Borrower to repay such Loan in accordance with the terms
of this Agreement.

          (c) At the commencement of each Interest Period for any Eurocurrency Borrowing, such Borrowing
shall be in an aggregate amount that is an integral multiple of the Borrowing Multiple and not less
than the Borrowing Minimum. Borrowings of more than one Class may be outstanding at the same time;
provided that there shall not at any time be more than a total of 20 Eurocurrency
Borrowings outstanding.

          (d) Notwithstanding any other provision of this Agreement, no Borrower shall be entitled to
request, or to elect to continue, any Borrowing if the Interest Period requested with respect
thereto would end after the Maturity Date.

          SECTION 2.03. Requests for Borrowings. To request a Borrowing, the applicable
Borrower, or the European J.V. on behalf of such Borrower, shall notify the Administrative Agent of
such request by telecopy (promptly followed by telephonic confirmation of such request) not later
than 2:00 p.m., London time, three Business Days before the date of the proposed Borrowing. Each
such telephonic and written Borrowing Request shall specify the following information in compliance
with Section 2.02:

     (i) the Borrower requesting such Borrowing (or on whose behalf the European
J.V. is requesting such Borrowing);

     (ii) whether the requested Borrowing is to be an ABT Borrowing, a GDTG
Borrowing or a Term Borrowing;

     (iii) the aggregate amount and currency of the requested Borrowing;

     (iv) the date of such Borrowing, which shall be a Business Day;

     (v) the initial Interest Period to be applicable thereto, which shall be a
period contemplated by the definition of the term “Interest Period”; and

     (vi) the location and number of the Borrower’s account to which funds are to
be disbursed, which shall comply with the requirements of Section 2.06.

If no currency is specified with respect to any requested Borrowing, then the requested Borrower
shall be deemed to have selected Euros. If no Interest Period is specified with respect to any
requested Borrowing, then the relevant Borrower shall be deemed to have selected an Interest Period
of one month’s duration. Promptly following receipt of a Borrowing Request in accordance with this
Section, the Administrative Agent shall advise each Lender of the details thereof and of the amount
of such Lender’s Loan to be made as part of the requested Borrowing.

          SECTION 2.04. Letters of Credit. (a) General. Subject to the terms and
conditions set forth herein, each of the Borrowers may request the issuance (or the amendment,
renewal or extension) of Letters of Credit denominated in US Dollars, Euros or Pounds Sterling for
its own account, in a form reasonably acceptable to the

 

38

Administrative Agent and the applicable Issuing Bank, at any time and from time to time during
the ABT Availability Period. In the event of any inconsistency between the terms and conditions of
this Agreement and the terms and conditions of any form of letter of credit application or other
agreement submitted by any Borrower to, or entered into by any Borrower with, any Issuing Bank
relating to any Letter of Credit, the terms and conditions of this Agreement shall control.

          (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request
the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter
of Credit), the applicable Borrower, or the European J.V. on behalf of such Borrower, shall hand
deliver or telecopy (or transmit by electronic communication, if arrangements for doing so have
been approved by the applicable Issuing Bank) to an Issuing Bank and the Administrative Agent
(reasonably in advance of the requested date of issuance, amendment, renewal or extension) a notice
requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended,
renewed or extended, and specifying the date of issuance, amendment, renewal or extension (which
shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply
with paragraph (c) of this Section), the amount and currency of such Letter of Credit, the name and
address of the beneficiary thereof and such other information as shall be necessary to prepare,
amend, renew or extend such Letter of Credit. If requested by any Issuing Bank, the applicable
Borrower, or the European J.V. on behalf of such Borrower, also shall submit a letter of credit
application on such Issuing Bank’s standard form in connection with any request for a Letter of
Credit; provided that any provisions in any such letter of credit application that create
Liens securing the obligations of the Borrower thereunder or that are inconsistent with the
provisions of this Agreement shall be of no force or effect. A Letter of Credit shall be issued,
amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of each
Letter of Credit the applicable Borrower and the European J.V. shall be deemed to represent and
warrant that), after giving effect to such issuance, amendment, renewal or extension, (i) the
aggregate amount of the ABT Credit Exposures shall not exceed the aggregate amount of the ABT
Commitments, (ii) the LC Exposure shall not exceed €50,000,000, and (iii) the portion of the LC
Exposure attributable to Letters of Credit issued by any Issuing Bank shall not exceed the LC
Commitment of such Issuing Bank. The Administrative Agent agrees, at the request of any Issuing
Bank, to provide information to such Issuing Bank as to the aggregate amount of the ABT Credit
Exposures, the LC Exposures and the ABT Commitments.

          (c) Expiration Date. Each Letter of Credit shall have an expiration date at or prior
to the close of business on the earlier of (i) the date one year after the date of the issuance of
such Letter of Credit (or, in the case of any renewal or extension thereof, one year after such
renewal or extension) and (ii) the date that is five Business Days prior to the Maturity Date. Any
Letter of Credit may provide by its terms that it may be extended for additional successive
one-year periods on terms reasonably acceptable to the applicable Issuing Bank (but subject to the
proviso in the next sentence). Any Letter of Credit providing for automatic extension shall be
extended upon the then current expiration date without any further action by any Person unless the
applicable Issuing Bank shall have given notice to the applicable beneficiary (with a copy to the
applicable

 

39

Borrower) of the election by such Issuing Bank not to extend such Letter of Credit, such
notice to be given not fewer than 60 days prior to the then current expiration date of such Letter
of Credit, provided that no Letter of Credit may be extended automatically or otherwise
beyond the date that is five Business Days prior to the Maturity Date.

          (d) Participations. Effective with respect to each Letter of Credit (and each
amendment to a Letter of Credit increasing the amount thereof) upon the issuance (or increase)
thereof, and without any further action on the part of the applicable Issuing Bank or the Lenders,
each Issuing Bank hereby grants to each ABT Lender, and each ABT Lender hereby acquires from such
Issuing Bank, a participation in each Letter of Credit equal to such Lender’s ABT Applicable
Percentage of the aggregate amount available to be drawn under such Letter of Credit. In
consideration and in furtherance of the foregoing, each ABT Lender hereby absolutely and
unconditionally agrees to pay to the Administrative Agent, for the account of the applicable
Issuing Bank, such Lender’s ABT Applicable Percentage of each LC Disbursement made by such Issuing
Bank and not reimbursed by the applicable Borrower on the date due as provided in paragraph (e) of
this Section, or such Lender’s ABT Applicable Percentage of any reimbursement payment in respect of
an LC Disbursement required to be refunded to any Borrower for any reason (or if such LC
Disbursement or reimbursement payment was made in US Dollars or Pounds Sterling, the Euro
Equivalent thereof using the LC Exchange Rate in effect on the applicable LC Participation
Calculation Date). Each Lender acknowledges and agrees that its obligation to acquire
participations pursuant to this paragraph in respect of Letters of Credit is absolute and
unconditional and shall not be affected by any circumstance whatsoever, including any amendment,
renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or any
reduction of its ABT Commitment or the aggregate amount of the ABT Commitments.

          (e) Reimbursement. If any Issuing Bank shall make any LC Disbursement in respect of a
Letter of Credit, the applicable Borrower shall reimburse such LC Disbursement by paying to the
Administrative Agent an amount equal to such LC Disbursement, in the currency in which such LC
Disbursement is made, not later than 1:30 p.m., London time, on the second Business Day following
the date on which such Borrower or the European J.V. shall have received notice of such LC
Disbursement; provided that, if such LC Disbursement is denominated in Euros and is at
least equal to the Borrowing Minimum for Swingline Loans but not greater than the amount then
available to be borrowed as a Swingline Borrowing for the purposes of this Section 2.04(e), unless
the applicable Borrower, or the European J.V. on its behalf, shall have notified the Administrative
Agent to the contrary not later than 10:00 a.m., London time, on the Business Day next following
the date on which such Borrower or the European J.V. shall have been notified of such LC
Disbursement, the Borrower will be deemed to have requested in accordance with Section 2.05 that
such payment be financed with a Swingline Borrowing on such Business Day in an equivalent amount
and, to the extent the condition precedent to such Swingline Borrowing set forth in Section 4.02(B)
is satisfied, such Borrower’s obligation to make such payment shall be discharged with the proceeds
of the requested Swingline Borrowing. If the applicable Borrower fails to make such payment when
due and such Borrower is not entitled to make a Swingline Borrowing in the amount of such payment,
(A) if such payment relates to a Letter of

 

40

Credit denominated in US Dollars or Pounds Sterling, automatically and with no further action
required, the obligation of such Borrower to reimburse the applicable LC Disbursement shall be
permanently converted into an obligation to reimburse the Euro Equivalent, calculated using the LC
Exchange Rates on the applicable LC Participation Calculation Date, of such LC Disbursement and (B)
in the case of each LC Disbursement, the Administrative Agent shall notify each ABT Lender of such
LC Disbursement, the Euro Equivalent of the payment then due from such Borrower in respect thereof
and such Lender’s ABT Applicable Percentage thereof, and each ABT Lender shall pay to the
Administrative Agent on the date such notice is received its ABT Applicable Percentage of the
payment then due from such Borrower, in the same manner as provided in Section 2.06 with respect to
ABT Loans made by such Lender (and Section 2.06 shall apply, mutatis mutandis, to
the payment obligations of the ABT Lenders), and the Administrative Agent shall promptly pay to the
applicable Issuing Bank the amounts so received by it from the ABT Lenders. Promptly following
receipt by the Administrative Agent of any payment from a Borrower pursuant to this paragraph, the
Administrative Agent shall distribute such payment to the applicable Issuing Bank or, to the extent
that ABT Lenders have made payments pursuant to this paragraph to reimburse such Issuing Bank, then
to such Lenders and such Issuing Bank as their interests may appear. Neither any payment made by
an ABT Lender pursuant to this paragraph to reimburse any Issuing Bank for any LC Disbursement
(other than the funding of Swingline Loans as contemplated above) shall constitute a Loan or
relieve the applicable Borrower of its obligation to reimburse such LC Disbursement. If the
reimbursement by a Borrower of, or obligation to reimburse, any amounts in US Dollars or Pounds
Sterling would subject the Administrative Agent, the applicable Issuing Bank or any Lender to any
stamp duty, ad valorem charge or similar tax that would not be payable if such reimbursement were
made or required to be made in Euros, such Borrower shall, at its option, either (x) pay the amount
of any such tax requested by the Administrative Agent, the applicable Issuing Bank or Lender or (y)
reimburse in Euros each LC Disbursement made in US Dollars or Pounds Sterling, in an amount equal
to the Euro Equivalent, calculated using the applicable LC Exchange Rate on the date such LC
Disbursement is reimbursed (or on the applicable LC Participation Calculation Date, if such date
shall have occurred), of such LC Disbursement.

          (f) Obligations Absolute. Each Borrower’s obligation to reimburse LC Disbursements as
provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and
shall be performed strictly in accordance with the terms of this Agreement under any and all
circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any
Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or other
document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any
respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by any
Issuing Bank under a Letter of Credit against presentation of a draft or other document that does
not comply with the terms of such Letter of Credit, (iv) any claim or defense against the
beneficiary of any Letter of Credit, any transferee of any Letter of Credit, the Administrative
Agent, any Lender or any other Person, whether in connection with this Agreement, any Letter of
Credit, the transactions contemplated hereby or any unrelated transactions (including the
underlying transaction between any Borrower or any J.V. Subsidiary and the

 

41

beneficiary of any Letter of Credit), (v) the occurrence of any Default or (vi) any other
event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but
for the provisions of this Section, constitute a legal or equitable discharge of or defense
against, or provide a right of setoff against, any Borrower’s obligations hereunder. None of the
Administrative Agent, the Lenders or the Issuing Banks, or any of their Related Parties, shall have
any liability or responsibility by reason of or in connection with the issuance or transfer of any
Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of
the circumstances referred to in the preceding sentence), or any error, omission, interruption,
loss or delay in transmission or delivery of any draft, notice or other communication under or
relating to any Letter of Credit (including any document required to make a drawing thereunder),
any error in interpretation of technical terms or any consequence arising from causes beyond the
control of the Issuing Banks; provided that the foregoing shall not be construed to excuse
any Issuing Bank from liability to a Borrower to the extent of any damages suffered by such
Borrower or any Lender that are caused by such Issuing Bank’s gross negligence or willful
misconduct. In furtherance of the foregoing and without limiting the generality thereof, the
parties agree that, with respect to documents presented which appear on their face to be in
substantial compliance with the terms of a Letter of Credit, the applicable Issuing Bank may,
acting in good faith, either accept and make payment upon such documents without responsibility for
further investigation or refuse to accept and make payment upon such documents if such documents
are not in strict compliance with the terms of such Letter of Credit.

          (g) Disbursement Procedures. Each Issuing Bank shall, promptly following its receipt
thereof, examine all documents purporting to represent a demand for payment under a Letter of
Credit. Each Issuing Bank shall promptly notify the Administrative Agent and the applicable
Borrower by telephone (confirmed by telecopy) of such demand for payment and whether such Issuing
Bank has made or will make an LC Disbursement thereunder; provided that any failure to give
or delay in giving such notice shall not (i) relieve such Borrower of its obligation to reimburse
such Issuing Bank and the Lenders with respect to any such LC Disbursement or (ii) relieve any
Lender’s obligation to acquire participations as required pursuant to paragraph (d) of this Section
2.04.

          (h) Interim Interest. If any Issuing Bank shall make any LC Disbursement, then,
unless the applicable Borrower shall reimburse such LC Disbursement in full on the date such LC
Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and
including the date such LC Disbursement is made to but excluding the date that the applicable
Borrower reimburses such LC Disbursement, (i) in the case of any LC Disbursement denominated in
Euros, and at all times following the conversion to Euros of an LC Disbursement made in US Dollars
or Pounds Sterling pursuant to paragraph (e) or (l) of this Section, at the Swingline Rate plus
2.75% per annum, (ii) in the case of any LC Disbursement denominated in US Dollars, at all times
prior to its conversion to Euros pursuant to paragraph (e) or (l) of this Section, at the Alternate
Base Rate (as defined in the First Lien Agreement) plus 2.75% per annum, and (iii) in the case of
any LC Disbursement denominated in Pounds Sterling, at all times prior to its conversion to Euros
pursuant to

 

42

paragraph (e) or (l) of this Section, a rate per annum reasonably determined by the applicable
Issuing Bank (which determination will be conclusive absent manifest error) to represent its cost
of funds plus 2.75% per annum; provided that, if the applicable Borrower fails to reimburse
such LC Disbursement when due pursuant to paragraph (e) of this Section, then Section 2.13(c) shall
apply. Interest accrued pursuant to this paragraph shall be for the account of such Issuing Bank,
except that interest accrued on and after the date of payment pursuant to paragraph (e) of this
Section to reimburse such Issuing Bank shall be for the accounts of the ABT Lenders to the extent
of such payment.

          (i) Replacement of the Issuing Bank. Each Issuing Bank may be replaced at any time by
written agreement among the European J.V., the Administrative Agent, the replaced Issuing Bank and
the successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such
replacement of such Issuing Bank. At the time any such replacement shall become effective, the
applicable Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Bank
pursuant to Section 2.12(b). From and after the effective date of any such replacement, (i) the
successor Issuing Bank shall have all the rights and obligations of such Issuing Bank under this
Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to
the term “Issuing Bank” shall be deemed to refer to such successor or to any previous Issuing Bank,
or to such successor and all previous Issuing Banks, as the context shall require. After the
replacement of any Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto
and shall continue to have all the rights and obligations of an Issuing Bank under this Agreement
with respect to Letters of Credit issued by it prior to such replacement, but shall not be required
to issue additional Letters of Credit.

          (j) Cash Collateralization. If any Event of Default shall occur and be continuing, on
the earlier of (i) the third Business Day after the European J.V. shall receive notice from the
Administrative Agent or the Majority Lenders demanding the deposit of cash collateral pursuant to
this paragraph and (ii) the date on which the maturity of the Loans shall be accelerated or the ABT
Commitments terminated, the Borrowers shall deposit in an account or accounts with the
Administrative Agent, in the name of the Administrative Agent and for the benefit of the Lenders,
an amount in cash equal to the sum of (i) the aggregate undrawn amount of all outstanding Letters
of Credit and (ii) the aggregate amount of all unreimbursed LC Disbursements and all interest
accrued and unpaid thereon. Amounts payable under the preceding sentence in respect of any Letter
of Credit or LC Disbursement shall be payable in the currency of such Letter of Credit or LC
Disbursement, except that LC Disbursements in US Dollars or Pounds Sterling in respect of which the
applicable Borrower’s reimbursement obligations have been converted to obligations in Euros as
provided in paragraph (e) above and interest accrued thereon shall be payable in Euros. The
obligation to deposit such cash collateral shall become effective immediately, and such deposit
shall become immediately due and payable, without demand or other notice of any kind, upon the
occurrence of any Event of Default with respect to any Borrower described in clause (h) or (i) of
Article VII. Such deposit shall be held by the Administrative Agent as collateral for the payment
and performance of the obligations of the Borrowers under this Agreement. The Administrative Agent
shall have exclusive dominion and control, including the exclusive right of withdrawal, over such
account or accounts. Other than any interest earned on the

 

43

investment of such deposits, which investment shall be in Permitted Investments and shall be
made in the discretion of the Administrative Agent and at the Borrowers’ risk and expense, such
deposits shall not bear interest. Interest or profits, if any, on such investments shall
accumulate in such account or accounts. Moneys in such account or accounts shall be applied by the
Administrative Agent to reimburse each Issuing Bank for LC Disbursements for which it has not been
reimbursed and, to the extent not so applied, shall be held for the satisfaction of the
reimbursement obligations of the Borrowers for the LC Exposure at such time or, if the maturity of
the Loans has been accelerated (but subject to the consent of Lenders with LC Exposures
representing more than 50% of the LC Exposures and the Issuing Banks with outstanding Letters of
Credit), be applied to satisfy other obligations of the Borrowers under this Agreement. If the
Borrowers are required to provide an amount of cash collateral under this paragraph, then (1) if
the maturity of the Loans has not been accelerated and the LC Exposure shall be reduced to an
amount below the amount so deposited, the Administrative Agent will return to the Borrowers any
excess of the amount so deposited over the LC Exposure and (2) such amount (to the extent not
applied as provided above in this paragraph) shall be returned to the Borrowers within three
Business Days after all Events of Default have been cured or waived.

          (k) Issuing Bank Reports. Unless otherwise agreed by the Administrative Agent, each
Issuing Bank shall report in writing to the Administrative Agent (i) on or prior to each Business
Day on which such Issuing Bank issues, amends, renews or extends any Letter of Credit, the date of
such issuance, amendment, renewal or extension, and the currency and aggregate face amount of the
Letters of Credit issued, amended, renewed or extended by it and outstanding after giving effect to
such issuance, amendment, renewal or extension (and whether the amount thereof shall have changed),
it being understood that such Issuing Bank shall not effect any issuance, renewal, extension or
amendment resulting in an increase in the amount of any Letter of Credit without first obtaining
written confirmation from the Administrative Agent that such increase is then permitted under this
Agreement, (ii) on each Business Day on which such Issuing Bank makes any LC Disbursement, the
date, currency and amount of such LC Disbursement, (iii) on any Business Day on which any Borrower
fails to reimburse an LC Disbursement required to be reimbursed to such Issuing Bank on such day,
the date of such failure and the currency and amount of such LC Disbursement and (iv) on any other
Business Day, such other information as the Administrative Agent shall reasonably request as to the
Letters of Credit issued by such Issuing Bank.

          (l) Conversion. In the event that the Loans become immediately due and payable on any
date pursuant to Article VII, all amounts (i) that the Borrowers are at the time or become
thereafter required to reimburse or otherwise pay to the Administrative Agent in respect of LC
Disbursements made under any Letter of Credit denominated in US Dollars or Pounds Sterling (other
than amounts in respect of which the Borrowers have deposited cash collateral, if such cash
collateral was deposited in the applicable currency), (ii) that the Lenders are at the time or
become thereafter required to pay to the Administrative Agent (and the Administrative Agent is at
the time or becomes thereafter required to distribute to the applicable Issuing Bank) pursuant to
paragraph (e) of this Section in respect of unreimbursed LC Disbursements made under any Letter of
Credit

 

44

denominated in US Dollars or Pounds Sterling and (iii) of each Lender’s participation in any
Letter of Credit denominated in US Dollars or Pounds Sterling under which an LC Disbursement has
been made shall, automatically and with no further action required, be converted into the Euro
Equivalent, calculated using the LC Exchange Rates on such date (or in the case of any LC
Disbursement made after such date, on the date such LC Disbursement is made), of such amounts. On
and after such conversion, all amounts accruing and owed to the Administrative Agent, any Issuing
Bank or any Lender in respect of the obligations described in this paragraph shall accrue and be
payable in Euros at the rates otherwise applicable hereunder.

          SECTION 2.05. Swingline Loans. (a) Subject to the terms and conditions set forth
herein, the Swingline Lender agrees to make Swingline Loans to the Borrowers from time to time
during the ABT Availability Period in Euros in an aggregate principal amount at any time
outstanding that will not result in (i) the aggregate principal amount of outstanding Swingline
Loans exceeding €25,000,000, or, for the purposes of a Swingline Borrowing to reimburse an LC
Disbursement as contemplated by Section 2.04(e), exceeding €50,000,000, or (ii) the aggregate
amount of the ABT Credit Exposures exceeding the aggregate amount of the ABT Commitments,
provided that the Swingline Lender shall not be required to make a Swingline Loan to
refinance an outstanding Swingline Loan. Within the foregoing limits and subject to the terms and
conditions set forth herein, the Borrowers may borrow, prepay and reborrow Swingline Loans.

          (b) To request a Swingline Loan, a Borrower shall notify the Administrative Agent and the
Swingline Lender of such request by telephone (confirmed by telecopy), not later than 11:00 a.m.,
London time, on the day of such proposed Swingline Loan; provided that if at any time an LC
Disbursement denominated in Euros shall be made in an amount at least equal to the Borrowing
Minimum for Swingline Loans but not greater than the amount then available to be borrowed as a
Swingline Borrowing for purposes of Section 2.04(e), a notice of a Swingline Borrowing to finance
the reimbursement of such LC Disbursement shall be deemed to have been timely given as contemplated
by Section 2.04(e) unless the applicable Borrower, or the European J.V. on behalf of such Borrower,
shall have given notice to the contrary to the Administrative Agent, or shall have repaid such LC
Disbursement, not later than 10:00 a.m., London time, on the Business Day next following the date
on which such Borrower or the European J.V. shall have been notified of such LC Disbursement. Each
such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the Administrative Agent of a written Borrowing Request signed by the
applicable Borrower or by the European J.V. on behalf of such Borrower. Each such notice shall be
irrevocable and shall specify the requested date (which shall be a Business Day) and the amount of
the requested Swingline Loan, which shall be in an integral multiple of the Borrowing Multiple and
not less than the Borrowing Minimum. The Administrative Agent will promptly advise the Swingline
Lender of any such notice received from a Borrower. The Swingline Lender shall make each Swingline
Loan to be made by it available to the applicable Borrower by means of a credit to an account of
such Borrower maintained with the Swingline Lender by 3:00 p.m., London time, on the requested date
of such Swingline Loan.

 

45

          (c) The Swingline Lender may, by written notice given to the Administrative Agent not later
than 12:00 noon, London time, on any Business Day (each date on which such notice is given, a
“Notice Date”) require the ABT Lenders to acquire participations on the second Business Day
after the Notice Date in all or a portion of the outstanding Swingline Loans, and such Swingline
Loans shall be continued on the second Business Day after the Notice Date as a Eurocurrency
Borrowing having an Interest Period of one week’s duration; provided that the Swingline
Lender shall not give such notice to the Administrative Agent unless it shall have first given the
applicable Borrower notice by 2:00 p.m., London time, on the Business Day immediately preceding the
Notice Date of its intent to give such notice to the Administrative Agent and the Borrower shall
not have given the Swingline Lender notice by 9:00 a.m., London time, on the Notice Date that it
agrees to repay such Swingline Loans on or prior to the second Business Day after the Notice Date.
Such notice shall specify the aggregate amount of Swingline Loans in which ABT Lenders will
participate. Promptly upon receipt of such notice, the Administrative Agent will give notice
thereof to each ABT Lender, specifying in such notice such Lender’s ABT Percentage of such
Swingline Loan or Swingline Loans. Each ABT Lender hereby absolutely and unconditionally agrees,
upon receipt of notice as provided above, to pay to the Administrative Agent, for the account of
the Swingline Lender, such Lender’s ABT Percentage of such Swingline Loan or Swingline Loans. Each
ABT Lender acknowledges and agrees that its obligation to acquire participations in Swingline Loans
pursuant to this paragraph is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made without any offset,
abatement, withholding or reduction whatsoever. Each ABT Lender shall comply with its obligation
under this paragraph by wire transfer of immediately available funds, in the same manner as
provided in Section 2.06 with respect to Loans made by such Lender (and Section 2.06 shall apply,
mutatis mutandis, to the payment obligations of the ABT Lenders), and the
Administrative Agent shall promptly pay to the Swingline Lender the amounts so received by it from
the ABT Lenders. The Administrative Agent shall notify the applicable Borrower of any
participations in any Swingline Loan acquired pursuant to this paragraph, and thereafter payments
in respect of such Swingline Loan shall be made to the Administrative Agent and not to the
Swingline Lender. Any amounts received by the Swingline Lender from the applicable Borrower (or
other party on behalf of such Borrower) in respect of a Swingline Loan after receipt by the
Swingline Lender of the proceeds of a sale of participations therein shall be promptly remitted to
the Administrative Agent; any such amounts received by the Administrative Agent shall be promptly
remitted by the Administrative Agent to the ABT Lenders that shall have made their payments
pursuant to this paragraph and to the Swingline Lender, as their interests may appear,
provided that any such payment so remitted shall be repaid to the Swingline Lender or the
Administrative Agent, as the case may be, if and to the extent such payment is required to be
refunded to the applicable Borrower for any reason. The purchase of participations in a Swingline
Loan pursuant to this paragraph shall not relieve the applicable Borrower of any default in the
payment thereof.

          SECTION 2.06. Funding of Borrowings. (a) Each Lender shall make each Loan (other
than a Swingline Loan) to be made by it hereunder on the proposed date

 

46

thereof by wire transfer of immediately available funds by 12:30 p.m., London time, to the
account of the Administrative Agent most recently designated by it for such purpose by notice to
the Lenders. The Administrative Agent will make such Loans available to the relevant Borrower by
promptly crediting the amounts so received, in like funds, to an account designated by such
Borrower in the applicable Borrowing Request (which account, in the case of Lux Tires, shall be an
account held by Lux Tires outside of the Grand Duchy of Luxembourg); provided that
Swingline Loans made to finance the reimbursement of an LC Disbursement as provided in Section
2.04(e) shall be remitted by the Administrative Agent to the applicable Issuing Bank. The
Administrative Agent will transfer the applicable funds to the applicable Borrower by 2:00 p.m.,
London time, that have been transferred by Lenders to the Administrative Agent in respect of Loans
made by such Lenders on the proposed date of a Borrowing.

          (b) Unless the Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing that such Lender will not make available to the Administrative Agent
such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has
made such share available on such date in accordance with paragraph (a) of this Section and may, in
reliance upon such assumption, make available to the relevant Borrower a corresponding amount. In
such event, if a Lender has not in fact made its share of the applicable Borrowing available to the
Administrative Agent, then the applicable Lender and such Borrower severally agree to pay to the
Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each
day from and including the date such amount is made available to such Borrower to but excluding the
date of payment to the Administrative Agent, at (i) in the case of such Lender, the rate determined
by the Administrative Agent in accordance with banking industry rules on interbank compensation or
(ii) in the case of such Borrower, the interest rate applicable to the subject Loan. If such
Lender pays such amount to the Administrative Agent, then such amount shall constitute such
Lender’s Loan included in such Borrowing. It is agreed that no payment by any Borrower under this
paragraph will be subject to any break-funding payment under Section 2.16.

          SECTION 2.07. Continuation of Borrowings. (a) Each Revolving Borrowing and Term
Borrowing shall have an initial Interest Period as specified in such Borrowing Request.
Thereafter, the relevant Borrower may elect to continue such Borrowing, and may elect Interest
Periods therefor, all as provided in this Section. The relevant Borrower may elect different
options with respect to different portions of the affected Borrowing, in which case each such
portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing,
and the Loans comprising each such portion shall be considered a separate Borrowing.

          (b) To make a continuation pursuant to this Section, the European J.V. on behalf of the
applicable Borrower, shall notify the Administrative Agent of such continuation by telephone by the
time that a Borrowing Request would be required under Section 2.03. Each such telephonic
Continuation Request shall be irrevocable and shall be confirmed promptly by hand delivery or
telecopy to the Administrative Agent of a written Continuation Request signed by the European J.V.
on behalf of the applicable Borrower.

 

47

          (c) Each telephonic and written Continuation Request shall specify the following information
in compliance with Section 2.02:

     (i) the Borrowing to which such Continuation Request applies and, if
different options are being elected with respect to different portions thereof, the
portions thereof to be allocated to each resulting Borrowing (in which case the information
to be specified pursuant to clauses (iii) below shall be specified for each resulting
Borrowing);

     (ii) the effective date of the election made pursuant to such Continuation
Request, which shall be a Business Day; and

     (iii) the Interest Period to be applicable thereto after giving effect to
such election, which shall be a period contemplated by the definition of the term “Interest
Period”.

If any such Continuation Request does not specify an Interest Period, then the relevant Borrower
shall be deemed to have selected an Interest Period of one month’s duration.

          (d) Promptly following receipt of a Continuation Request, the Administrative Agent shall
advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.

          (e) If the relevant Borrower fails to deliver a timely Continuation Request with respect to a
Eurocurrency Borrowing on or prior to the third Business Day preceding the end of the Interest
Period applicable thereto (and does not by such time notify the Administrative Agent that it
intends to prepay such Eurocurrency Borrowing at the end of such Interest Period), (i) if such
Borrowing is a Term Borrowing, then such Borrowing shall continue as a Eurocurrency Borrowing with
an Interest Period of one month, and (ii) if such Borrowing is a Revolving Borrowing, then such
Borrowing shall be repaid at the end of the Interest Period applicable thereto. Notwithstanding
any contrary provision hereof, if an Event of Default has occurred and is continuing and the
Administrative Agent, at the request of the Majority Lenders, so notifies the European J.V., then,
so long as an Event of Default is continuing each Eurocurrency Borrowing shall be continued at the
end of the Interest Period applicable thereto as a Eurocurrency Borrowing with an Interest Period
of one month’s duration.

          SECTION 2.08. Termination of Commitments; Reductions of Commitments. (a) Unless
previously terminated, (i) the Term Loan Commitments shall terminate at 5:00 p.m., London time, on
the Effective Date and (ii) the Revolving Commitments and each LC Commitment shall terminate on the
Maturity Date.

          (b) The European J.V. may at any time terminate, or from time to time reduce, the Revolving
Commitments of any Tranche; provided that (i) each reduction of such Commitments shall be
in an amount that is an integral multiple of €1,000,000 and not less than €5,000,000, (ii)
the European J.V. shall not terminate or reduce the ABT Commitments if, after giving effect to any
concurrent prepayment of the ABT Loans in accordance with Section 2.11, the aggregate amount of the
ABT Credit Exposures would

 

48

exceed the aggregate amount of the ABT Commitments and (iii) the European J.V. shall not
terminate or reduce the GDTG Commitment if, after giving effect to any concurrent prepayment of the
GDTG Loans in accordance with Section 2.11, the aggregate amount of the GDTG Credit Exposures would
exceed the aggregate amount of the GDTG Commitments.

          (c) The European J.V. shall notify the Administrative Agent of any election to terminate or
reduce the Commitments of any Tranche under paragraph (b) of this Section at least three Business
Days prior to the effective date of such termination or reduction, specifying such election and the
effective date thereof. Promptly following receipt of any notice, the Administrative Agent shall
advise the applicable Lenders of the contents thereof. Each notice delivered by the European J.V.
pursuant to this Section shall be irrevocable; provided that a notice of termination of all
the Revolving Commitments under any Tranche delivered by the European J.V. may state that such
notice is conditioned upon the effectiveness of other credit facilities or financings, in which
case such notice may be revoked by the European J.V. (by notice to the Administrative Agent on or
prior to the specified effective date) if such condition is not satisfied. Any termination or
reduction of the Commitments of any Tranche shall be permanent. Each reduction of the Commitments
of any Tranche shall be made ratably among the applicable Lenders in accordance with their
respective Commitments of such Tranche.

          SECTION 2.09. Repayment of Loans; Evidence of Debt. (a) Each Borrower hereby
unconditionally promises to pay (i) to the Administrative Agent for the account of each Lender the
then unpaid principal amount of each Borrowing of such Borrower on the Maturity Date and (ii) to
the Swingline Lender the then unpaid principal amount of each Swingline Loan on the earlier of the
Maturity Date and the 10th Business Day after such Swingline Loan is made; provided,
however, that on each date that an ABT Borrowing is made, the Borrowers shall repay all
Swingline Loans that are outstanding on the date such ABT Borrowing is made. The Borrowers will
repay the principal amount of each Loan and the accrued interest thereon in the currency of such
Loan.

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

          (c) The Administrative Agent shall maintain accounts in which it shall record (i) the amount
of each Loan made hereunder, the Class and Type thereof and the Interest Period applicable thereto,
(ii) the amount of any principal or interest due and payable or to become due and payable from each
Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender’s share thereof.

          (d) The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this
Section shall be prima facie evidence of the existence and amounts of the

 

49

obligations recorded therein; provided that the failure of any Lender or the
Administrative Agent to maintain such accounts or any error therein (including any failure to
record the making or repayment of any Loan) shall not in any manner affect the obligation of any
Borrower to repay the Loans in accordance with the terms of this Agreement or prevent any
Borrower’s obligations in respect of Loans from being discharged to the extent of amounts actually
paid in respect thereof.

          (e) Any Lender may request that Loans of any Class made by it be evidenced by a promissory
note. In such event, each Borrower shall prepare, execute and deliver to such Lender a promissory
note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its
registered assigns) in substantially the form set forth in Exhibit C-1 hereto, in the case of ABT
Loans, Exhibit C-2 hereto, in the case of GDTG Loans, or Exhibit C-3 hereto, in the case of Term
Loans. Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all
times (including after assignment pursuant to Section 9.04) be represented by one or more
promissory notes in such form payable to the order of the payee named therein (or, if such
promissory note is a registered note, to such payee and its registered assigns).

          SECTION 2.10. Amortization of Term Loans. The Term Borrowers shall repay Term
Borrowings in the amount of €1,550,000 on April 30 of each year, beginning on April 30, 2006 and
in a final installment on the Maturity Date equal to the principal amount of the Term Loans
remaining outstanding on such date. Each payment of Term Loans pursuant to this Section 2.10 shall
be accompanied by accrued interest on the principal amount paid to but excluding the date of
payment.

          SECTION 2.11. Prepayment of Loans. (a) Any Borrower shall have the right at any time
and from time to time to prepay any Borrowing of such Borrower in whole or in part, subject to
prior notice in accordance with paragraph (e) of this Section.

          (b) In the event and on each occasion that the sum of the Revolving Credit Exposures exceeds
the total Revolving Commitments, or the sum of the Revolving Credit Exposures under any Tranche
exceeds the sum of the Commitments under such Tranche, the European J.V. shall (and/or shall cause
other Borrowers to) prepay Revolving Borrowings, or Revolving Borrowings of the applicable Tranche,
in an aggregate amount equal to such excess, and in the event that after such prepayment of
Borrowings any such excess shall remain, the European J.V. shall (and/or shall cause other
Borrowers to) deposit cash in an amount equal to such excess as collateral for the reimbursement
obligations of the Borrowers in respect of Letters of Credit. Any cash so deposited (and any cash
previously deposited pursuant to this paragraph) with the Administrative Agent shall be held in an
account over which the Administrative Agent shall have dominion and control to the exclusion of the
Borrowers and their Subsidiaries, including the exclusive right of withdrawal. Other than any
interest earned on the investment of such deposits, which investment shall be in Permitted
Investments and shall be made in the discretion of the Administrative Agent (or, at any time when
no Default or Event of Default has occurred and is continuing, shall be made at the direction of
the European J.V.) and at the Borrowers’ risk and expense, such deposits shall not bear interest.
Interest or profits, if any, on such investments shall accumulate in such account.

 

50

Moneys in such account shall be applied by the Administrative Agent to reimburse each Issuing Bank for LC Disbursements for
which it has not been reimbursed and, to the extent not so applied, shall be held for the
satisfaction of the reimbursement obligations of the Borrowers for the LC Exposure at such time or,
if the maturity of the Loans has been accelerated (but subject to the consent of the Majority
Lenders), be applied to satisfy other obligations of the Borrowers under this Agreement. If the
Borrowers have provided cash collateral to secure the reimbursement obligations of the Borrowers in
respect of Letters of Credit, then, so long as no Event of Default shall exist, such cash
collateral shall be released to the Borrowers if so requested by the European J.V. at any time if
and to the extent that, after giving effect to such release, the aggregate amount of the ABT Credit
Exposures would not exceed the aggregate amount of the ABT Commitments.

          (c) In the event and on each occasion that any Net Cash Proceeds are received by or on behalf
of the European J.V. or any J.V. Subsidiary in respect of any Prepayment Event, the Term Borrowers
shall, not later than the fifth Business Day after such Net Cash Proceeds are received, prepay Term
Borrowings in an aggregate principal amount equal to 75% such Net Cash Proceeds; provided
that, if on the day such Net Cash Proceeds are received no Event of Default shall have occurred and
be continuing under clause (a), (b), (h), (i), (l) or (m) of Section 7.01 or as a result of a
breach of Section 5.06, 6.10, 6.11 or 6.12, then no prepayment shall be required pursuant to this
paragraph in respect of such Net Cash Proceeds at such time. To the extent that the European J.V.
and the J.V. Subsidiaries do not apply all such Net Cash Proceeds on or prior to the day (the
“Application Date”) that is 365 days after receipt of such Net Cash Proceeds to acquire
assets that constitute Collateral at the time of such acquisition or will be owned by a J.V.
Subsidiary, the Equity Interests of which constitute Collateral at the time of such acquisition,
the Term Borrowers shall prepay Loans on or prior to the fifth Business Day after the Application
Date in an amount equal to 75% of such Net Cash Proceeds that have not been so applied.

          (d) Prior to any optional or mandatory prepayment of Borrowings hereunder, the European J.V.
shall select the Borrowing or Borrowings to be prepaid and shall specify such selection in the
notice of such prepayment pursuant to paragraph (e) of this Section.

          (e) The European J.V. shall notify the Administrative Agent by telephone (confirmed by
telecopy) of any prepayment hereunder not later than 3:00 p.m., London time, three Business Days
before the date of prepayment; provided that (i) if the Borrowers shall be required to make
any prepayment hereunder by reason of Section 2.11(b), such notice shall be delivered not later
than the time at which such prepayment is made and (ii) in the case of a prepayment of a Swingline
Loan, such notice shall be delivered not later than 12:00 noon, London time, on the date of
prepayment. Each such notice shall be irrevocable, shall specify the prepayment date and the
principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a
notice of prepayment is given in connection with a conditional notice of termination of the
Revolving Commitments under any Tranche as contemplated by Section 2.08, then such notice of
prepayment may be revoked if such notice of termination is revoked in accordance with

 

51

Section 2.08. Promptly following receipt of any such notice relating to a Borrowing, the
Administrative Agent shall advise the Lenders of the contents thereof. Each partial
prepayment of any Borrowing (other than pursuant to Section 2.11(b) or (c)) shall be in an amount
that would be permitted in the case of an advance of a Borrowing as provided in Section 2.02. Each
prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing.
Each prepayment of Term Loans under this Section 2.11 shall be applied to the amortization payments
required to be made under Section 2.10 in the direct order of such amortization payments.
Prepayments shall be accompanied by accrued interest to the extent required by Section 2.13.

          SECTION 2.12. Fees. (a) The European J.V. agrees to pay to the Administrative Agent
for the account of each Lender a commitment fee, which shall accrue at the rate of 0.75% per annum
on the daily unused amount of each Revolving Commitment of such Lender during the period from and
including the date hereof to but excluding the date on which such Revolving Commitment terminates.
Accrued commitment fees shall be payable in arrears on the last day of March, June, September and
December of each year and on the date on which the Revolving Commitments terminate, commencing on
the first such date to occur after the date hereof. All commitment fees shall be computed on the
basis of a year of 360 days and shall be payable for the actual number of days elapsed (including
the first day but excluding the last day). For purposes of computing commitment fees with respect
to Revolving Commitments, an ABT Commitment of a Lender shall be deemed to be used to the extent of
the outstanding ABT Loans and LC Exposure of such Lender (but not the Swingline Exposure of such
Lender, which shall be disregarded for such purpose prior to the acquisition by such Lender of a
participation therein pursuant to Section 2.05(c)).

          (b) The European J.V. agrees to pay (i) to the Administrative Agent, for the account of each
ABT Lender, a participation fee with respect to its participations in Letters of Credit, which
shall accrue at the rate of 2.75% per annum on the average daily amount of such Lender’s LC
Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the
period from and including the Effective Date to but excluding the later of the date on which such
Lender’s ABT Commitment terminates and the date on which such Lender ceases to have any LC
Exposure, and (ii) to each Issuing Bank a fronting fee, which shall accrue at the rate or rates per
annum separately agreed upon between Goodyear and such Issuing Bank on the average daily amount of
the LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements)
attributable to Letters of Credit issued by such Issuing Bank during the period from and including
the Effective Date to but excluding the later of the date each LC Commitment of such Issuing Bank
is reduced to zero and the date on which there ceases to be any LC Exposure attributable to Letters
of Credit issued by such Issuing Bank, as well as such Issuing Bank’s standard fees with respect to
the issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings
thereunder. Participation fees and fronting fees accrued through and including the last day of
March, June, September and December of each year shall be payable on the third Business Day
following such last day, commencing on the first such date to occur after the Effective Date;
provided that all such fees shall be payable on the date on which the ABT Commitments
terminate and any such fees accruing after the date on which the

 

52

ABT Commitments terminate shall be
payable on demand. Any other fees payable to
any Issuing Bank pursuant to this paragraph shall be payable within 10 days after demand. All
participation fees and fronting fees shall be computed on the basis of a year of 360 days (or, in
the case of Letters of Credit denominated in Pounds Sterling, 365 days) and shall be payable for
the actual number of days elapsed (including the first day but excluding the last day).

          (c) Goodyear agrees to pay (or to cause the European J.V. to pay) to the Administrative Agent,
for its own account, fees in the amounts and at the times separately agreed upon between Goodyear
and the Administrative Agent.

          (d) All fees and other amounts payable hereunder shall be paid on the dates due, in
immediately available funds, to the Administrative Agent (or to the Issuing Banks, in the case of
fees payable to them) for distribution, where applicable, to the Lenders. Fees paid shall not be
refundable under any circumstances.

          SECTION 2.13. Interest. (a) The Revolving Loans comprising each Revolving Borrowing
shall bear interest at the applicable Adjusted Eurocurrency Rate plus 2.75% per annum. Swingline
Loans shall bear interest at the Swingline Rate plus 2.75% per annum.

          (b) The Term Loans comprising each Term Borrowing shall bear interest at the applicable
Adjusted Eurocurrency Rate plus 2.375% per annum.

          (c) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or
other amount payable by any Borrower hereunder is not paid when due, whether at stated maturity,
upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before
judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2.00% plus
the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section
or (ii) in the case of any other amount, 2.00% plus the interest rate that would have applied had
such amount, during the period of non-payment, constituted a Loan in the currency of the overdue
amount for successive Interest Periods of one month’s duration.

          (d) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan and, in the case of Revolving Loans, upon termination of the Revolving Commitments of
the applicable Tranche; provided that (i) interest accrued pursuant to paragraph (c) of
this Section shall be payable on demand, and (ii) in the event of any repayment or prepayment of
any Loan, accrued interest on the principal amount repaid or prepaid shall be payable on the date
of such repayment or prepayment.

          (e) All interest hereunder shall be computed on the basis of a year of 360 days, except that
interest on Loans denominated in Pounds Sterling shall be computed on the basis of a year of 365
days, and in each case shall be payable for the actual number of days elapsed (including the first
day but excluding the last day). The applicable Adjusted

 

53

Eurocurrency Rate shall be determined by
the Administrative Agent, and such determination shall be conclusive absent manifest error.

          SECTION 2.14. Alternate Rate of Interest. If prior to the commencement of any
Interest Period for a Eurocurrency Borrowing:

     (a) the Administrative Agent determines (which determination shall be
conclusive absent manifest error) that adequate and reasonable means do not exist for
ascertaining the applicable Adjusted Eurocurrency Rate for such Interest Period; or

     (b) the Administrative Agent is advised by the Majority Lenders that the
applicable Adjusted Eurocurrency Rate for such Interest Period will not adequately and
fairly reflect the cost to such Lenders (or any Lender) of making or maintaining their
Loans (or its Loan) included in such Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof (an “Unavailability Notice”) to the
European J.V. and the Lenders by telephone or telecopy as promptly as practicable thereafter and,
until the Administrative Agent notifies the European J.V. and the Lenders that the circumstances
giving rise to such notice no longer exist, the rate of interest that shall apply to such Borrowing
shall be such rate as the Administrative Agent shall determine adequately and fairly reflects the
cost to such Lenders (or Lender) of making or maintaining their Loans (or its Loan) included in
such Borrowing for such Interest Period plus 2.75%. If an Unavailability Notice is delivered in
respect of any Borrowing, the applicable Borrower may elect by notice to the Administrative Agent
to revoke its request that such Borrowing be made or continued, in which event Section 2.16 shall
not apply (except that Lenders shall be entitled to receive their actual out-of pocket losses,
costs and expenses, if any, in connection with such Borrowing not being made or continued).

          SECTION 2.15. Increased Costs. (a) If any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit or
similar requirement against assets of, deposits with or for the account of, or credit
extended by, any Lender (except any such reserve requirement reflected in the Adjusted
Eurocurrency Rate) or any Issuing Bank; or

     (ii) impose on any Lender or any Issuing Bank or the London interbank market
any other condition (other than Taxes) affecting this Agreement or Eurocurrency Loans made
by such Lender or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurocurrency Loan (or of maintaining its obligation to make any such Loan) or to
increase the cost to such Lender or such Issuing Bank of participating in, issuing or maintaining
any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or
such Issuing Bank hereunder (whether

 

54

of principal, interest or otherwise) in each case by an amount
deemed by such Lender or Issuing Bank, as the case may be, to be material, then the applicable
Borrower (being the
Borrower in respect of the affected Commitments, Loans or Letters of Credit) will pay to such
Lender or such Issuing Bank such additional amount or amounts as will compensate such Lender or
such Issuing Bank, as the case may be, for such additional costs incurred or reduction suffered.

          (b) If any Lender or any Issuing Bank determines that any Change in Law regarding capital
requirements has had or would have the effect of reducing the rate of return on such Lender’s or
such Issuing Bank’s capital or on the capital of such Lender’s or such Issuing Bank’s holding
company, if any, in each case by an amount deemed by such Lender or such Issuing Bank to be
material as a consequence of this Agreement or the Commitment of such Lender or the Loans or
participations in Letters of Credit held by such Lender, or the Letters of Credit issued by such
Issuing Bank, to a level below that which such Lender or such Issuing Bank or such Lender’s or
such Issuing Bank’s holding company would have achieved but for such Change in Law (taking into
consideration such Lender’s or such Issuing Bank’s policies and the policies of such Lender’s or
such Issuing Bank’s holding company with respect to capital adequacy), then from time to time the
applicable Borrower (being the Borrower in respect of the affected Commitments, Loans or Letters of
Credit) will pay to such Lender or such Issuing Bank such additional amount or amounts as will
compensate such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company
for any such reduction suffered.

          (c) A certificate of a Lender or an Issuing Bank setting forth the amount or amounts necessary
to compensate such Lender or such Issuing Bank or its holding company, as the case may be, as
specified in paragraph (a) or (b) of this Section shall be delivered to the European J.V. The
applicable Borrower shall pay such Lender or such Issuing Bank, as the case may be, the amount
shown as due on any such certificate within 10 days after receipt thereof, unless such amount is
being contested by the European J.V. in good faith.

          (d) Failure or delay on the part of any Lender or Issuing Bank to demand compensation pursuant
to this Section shall not constitute a waiver of such Lender’s or such Issuing Bank’s right to
demand such compensation; provided that the Borrowers shall not be required to compensate a
Lender or an Issuing Bank pursuant to this Section for any increased costs or reductions incurred
more than 180 days prior to the date that such Lender or Issuing Bank notifies the European J.V. of
the Change in Law giving rise to such increased costs or reductions and of such Lender’s or such
Issuing Bank’s intention to claim compensation therefor; provided further that, if
the Change in Law giving rise to such increased costs or reductions is retroactive, then the
180-day period referred to above shall be extended to include the period of retroactive effect
thereof.

          SECTION 2.16. Break Funding Payments. In the event of (a) the payment of any
principal of any Eurocurrency Loan other than on the last day of an Interest Period applicable
thereto (including as a result of an Event of Default), (b) the failure to borrow, convert,
continue or prepay any Loan on the date specified in any

 

55

notice delivered pursuant hereto
(regardless of whether such notice may be revoked under Section 2.11(e) and is revoked in
accordance therewith), or (c) the assignment of any
Eurocurrency Loan other than on the last day of the Interest Period applicable thereto as a
result of a request by the European J.V. pursuant to Section 2.19 or the CAM Exchange, then, in any
such event, the Borrower of such Loan shall compensate each Lender for the loss, cost and expense
attributable to such event. In the case of a Eurocurrency Loan, such loss, cost or expense to any
Lender shall be deemed to include an amount determined by such Lender to be the excess, if any, of
(i) the amount of interest which would have accrued on the principal amount of such Loan had such
event not occurred, at the Adjusted Eurocurrency Rate that would have been applicable to such Loan,
for the period from the date of such event to the last day of the then current Interest Period
therefor (or, in the case of a failure to borrow, convert or continue, for the period that would
have been the Interest Period for such Loan), over (ii) the amount of interest which would accrue
on such principal amount for such period at the interest rate which such Lender would bid were it
to bid, at the commencement of such period, for deposits in the applicable currency and of a
comparable amount and period from other banks in the London interbank market. A certificate of any
Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this
Section shall be delivered to the European J.V. The applicable Borrower shall pay such Lender the
amount shown as due on any such certificate within 10 days after receipt thereof, unless such
amount is being contested by the European J.V. in good faith.

          SECTION 2.17. Taxes. (a) Any and all payments by or on account of any obligation of
any Borrower or any other Credit Party hereunder or under any other Credit Document shall be made
free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided
that if any Borrower or any other Credit Party shall be required to deduct any Indemnified Taxes or
Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions of such Taxes (including deductions applicable to additional
sums payable under this Section) the Administrative Agent, Issuing Bank, Swingline Lender or Lender
(as the case may be) receives an amount equal to the sum it would have received had no such
deductions been made (and such Borrower or such Credit Party shall pay or Goodyear shall cause such
Credit Party to pay such increased amount), (ii) such Borrower or such other Credit Party shall
make such deductions and (iii) such Borrower or such other Credit Party shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable law.

          (b) In addition, the Borrowers shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

          (c) The relevant Borrower shall indemnify the Administrative Agent, each Issuing Bank,
Swingline Lender and each Lender within 10 days after written demand therefor, for the full amount
of any Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Issuing Bank,
Swingline Lender or such Lender, as the case may be, on or with respect to any payment by or on
account of any obligation of such Borrower or any other Credit Party hereunder or under any other
Credit Document (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable
to

 

56

amounts payable under this Section) and any penalties, interest and reasonable out-of-pocket
expenses arising therefrom or with respect thereto, whether or not such
Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or liability delivered to
the European J.V. by a Lender, or Issuing Bank or the Swingline Lender, or by the Administrative
Agent on its own behalf or on behalf of a Lender or Issuing Bank or the Swingline Lender shall be
conclusive absent manifest error.

          (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by any
Borrower or any other Credit Party to a Governmental Authority, such Borrower shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by such Governmental
Authority evidencing such payment, a copy of the return reporting such payment or other evidence of
such payment reasonably satisfactory to the Administrative Agent.

          (e) Any Foreign Lender that is entitled to an exemption from or reduction of United States
withholding tax under any treaty to which the United States is a party with respect to payments
under this Agreement shall deliver to the European J.V. (with a copy to the Administrative Agent),
at the time such Foreign Lender first becomes a party to this Agreement and at the time or times
prescribed by applicable law, such properly completed and executed documentation prescribed by
applicable law or reasonably requested by the European J.V. as will permit such payments to be made
without withholding or at a reduced rate; provided that such Foreign Lender has received
written notice from the European J.V. advising it of the availability of such exemption or
reduction and supplying all applicable documentation.

          (f) Any Lender that is entitled to an exemption from withholding tax under the law of any
jurisdiction in which a Borrower is located, or under any treaty to which such jurisdiction is a
party, with respect to payments under this Agreement shall deliver to the European J.V. for the
account of the relevant Borrower (with a copy to the Administrative Agent), at the time such Lender
first becomes a party to this Agreement and at the time or times prescribed by applicable law, such
properly completed and executed documentation prescribed by applicable law or reasonably requested
by the European J.V. as will permit such payments to be made without withholding or at a reduced
rate; provided that such Lender has received written notice from the European J.V. advising
it of the availability of such exemption or reduction and supplying all applicable documentation.

          SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Setoffs. (a) Except
as required or permitted under Section 2.06, 2.15, 2.16, 2.17, 2.19 or 9.03, each Borrowing, each
payment or prepayment of principal of any Borrowing or of any LC Disbursement, each payment of
interest on the Loans, each payment of fees (other than fees payable to the Issuing Banks), each
reduction of the Commitments and each refinancing of any Borrowing with a Borrowing of any Type,
shall be allocated pro rata among the Lenders in accordance with their respective Commitments (or,
if such Commitments shall have expired or been terminated, in accordance with the respective
principal amounts of their outstanding Loans or LC Exposures). Each Lender agrees that

 

57

in computing such Lender’s portion of any Borrowing to be made hereunder, the
Administrative Agent may, in its discretion, round each Lender’s percentage of such Borrowing
to the next higher or lower whole Euro amount.

          (b) The relevant Borrower shall make each payment required to be made by it hereunder (whether
of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under
Section 2.15, 2.16 or 2.17 or otherwise) prior to 1:00 p.m., London time, on the date when due, in
immediately available funds, without setoff, counterclaim or other deduction. Any amounts received
after such time on any date may, in the discretion of the Administrative Agent, be deemed to have
been received on the next succeeding Business Day for purposes of calculating interest thereon.
All such payments shall be made to the Administrative Agent to the applicable account specified by
the Administrative Agent for the account of the applicable Lenders or, in any such case, to such
other account as the Administrative Agent shall from time to time specify in a notice delivered to
the European J.V., except payments to be made directly to an Issuing Bank or the Swingline Lender
as expressly provided herein and except that payments pursuant to Sections 2.15, 2.16, 2.17, 2.19
and 9.03 shall be made directly to the Persons entitled thereto. The Administrative Agent shall
distribute any such payments received by it for the account of any other Person in appropriate
ratable shares to the appropriate recipient or recipients promptly following receipt thereof. If
any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall
be extended to the next succeeding Business Day, and, in the case of any payment accruing interest,
interest thereon shall be payable for the period of such extension. All payments hereunder shall
be made in Euros, except as otherwise expressly provided. Any payment required to be made by the
Administrative Agent hereunder shall be deemed to have been made by the time required if the
Administrative Agent shall, at or before such time, have taken the necessary steps to make such
payment in accordance with the regulations or operating procedures of the clearing or settlement
system used by the Administrative Agent to make such payment.

          (c) If at any time insufficient funds are received by and available to the Administrative
Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then
due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest
and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed
LC Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with
the amounts of principal and unreimbursed LC Disbursements then due to such parties.

          (d) If any Lender shall, by exercising any right of setoff or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its Loans or participations in
LC Disbursements resulting in such Lender receiving payment of a greater proportion of the
aggregate amount of its Loans or participations in LC Disbursements or Swingline Loans and accrued
interest thereon than the proportion received by any other Lender, then the Lender receiving such
greater proportion shall purchase (for cash at face value) participations in the Loans and
participations in LC

 

58

Disbursements and Swingline Loans of other Lenders to the extent necessary so
that the
benefit of all such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective Loans and participations
in LC Disbursements and Swingline Loans. If any such participations are purchased pursuant to the
preceding sentence and all or any portion of the payments giving rise thereto is recovered, such
participations shall be rescinded and the purchase price restored to the extent of such recovery,
without interest. The provisions of this paragraph shall not be construed to apply to any payment
made by any Borrower pursuant to and in accordance with the express terms of this Agreement or any
payment obtained by a Lender as consideration for the assignment of or sale of a participation in
its Commitment or any of its Loans or participations in LC Disbursements or Swingline Loans to any
assignee or participant, other than to the European J.V. or any Affiliate thereof (as to which the
provisions of this paragraph shall apply). Each Borrower consents to the foregoing and agrees, to
the extent it may effectively do so under applicable law and under this Agreement, that any Lender
acquiring a participation pursuant to the foregoing arrangements may exercise against such Borrower
rights of setoff and counterclaim with respect to such participation as fully as if such Lender
were a direct creditor of such Borrower in the amount of such participation.

          (e) Unless the Administrative Agent shall have received notice from the European J.V. prior to
the date on which any payment is due to the Administrative Agent for the account of the Lenders or
any Issuing Bank hereunder that the relevant Borrower will not make such payment, the
Administrative Agent may assume that such Borrower has made such payment on such date in accordance
herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Banks,
as the case may be, the amount due. In such event, if such Borrower has not in fact made such
payment, then each of the Lenders or the Issuing Banks, as the case may be, severally agrees to
repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or
such Issuing Bank, and to pay interest thereon, for each day from and including the date such
amount shall have been distributed to it to but excluding the date of payment to or recovery by the
Administrative Agent, at a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation.

          (f) If any Lender shall fail to make any payment required to be made by it hereunder for the
account of the Administrative Agent, any Issuing Bank or any Lender, then the Administrative Agent
may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts
thereafter received by the Administrative Agent for the account of such Lender to satisfy such
Lender’s obligations in respect of such payment until all such unsatisfied obligations are fully
paid.

          SECTION 2.19. Mitigation Obligations; Replacement of Lenders. (a) If any Lender
requests compensation under Section 2.15 or if any Borrower is required to pay any additional
amount to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 2.17, then such Lender shall use reasonable efforts to designate a different lending office
for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to
another of its offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or

 

59

reduce amounts payable pursuant to Section 2.15 or
2.17, as the case may be, in the
future and (ii) would not subject such Lender to any unreimbursed cost or expense and would
not otherwise be disadvantageous to such Lender. The European J.V. hereby agrees to pay all
reasonable costs and expenses incurred by any Lender in connection with any such designation or
assignment.

          (b) If any Lender requests compensation under Section 2.15, or if any Credit Party is required
to pay any additional amount to any Lender or any Governmental Authority for the account of any
Lender pursuant to Section 2.17, or if any Lender shall become the subject of any insolvency or
similar proceeding or filing or default in its obligation to fund Loans hereunder, then the
European J.V. may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance
with and subject to the restrictions contained in Section 9.04), all its interests, rights and
obligations under this Agreement to an assignee that shall assume such obligations (which assignee
may be another Lender, if a Lender accepts such assignment); provided that (i) the European
J.V. shall have received the prior written consent of the Administrative Agent, which consent shall
not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to
the outstanding principal of its Loans, participations in LC Disbursements and Swingline Loans,
accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the
assignee or the Borrowers, as the case may be and (iii) in the case of any such assignment
resulting from a claim for compensation under Section 2.15 or payments required to be made pursuant
to Section 2.17, such assignment will result in a reduction in such compensation or payments. If
any Lender shall become the subject of any insolvency or similar proceeding or filing, then the
European J.V., if requested to do so by any Issuing Bank, shall use commercially reasonable efforts
(which shall not include the payment of any compensation) to identify an assignee willing to
purchase and assume the interests, rights and obligations of such Lender under this Agreement and
to require such Lender to assign and delegate all such interests, rights and obligations to such
assignee in accordance with the preceding sentence.

          SECTION 2.20. Additional Reserve Costs. (a) If and so long as any Lender is required
to make special deposits with the Bank of England, to maintain reserve asset ratios or to pay fees,
in each case in respect of such Lender’s Loans, such Lender may require the relevant Borrower to
pay, contemporaneously with each payment of interest on each of such Loans, additional interest on
such Loans at a rate per annum equal to the Mandatory Costs Rate calculated in accordance with the
formula and in the manner set forth in Exhibit L hereto, provided that no Lender may
request the payment of any amount under this paragraph to the extent resulting from a requirement
imposed (other than as provided in Section 2.15) on such Lender by any Governmental Authority (and
not on Lenders or any class of Lenders generally) in respect of a concern expressed by such
Governmental Authority with such Lender specifically, including with respect to its financial
health.

          (b) If and so long as any Lender is required to comply with reserve assets, liquidity, cash
margin or other requirements of any monetary or other authority (including any such requirement
imposed by the European Central Bank or the European

 

60

System of Central Banks, but excluding
requirements reflected in the Mandatory Costs
Rate) in respect of any of such Lender’s Loans such Lender may require the relevant Borrower
to pay, contemporaneously with each payment of interest on each of such Lender’s Loans subject to
such requirements, additional interest on such Loans at a rate per annum specified by such Lender
to be the cost to such Lender of complying with such requirements in relation to such Loans,
provided that no Lender may request the payment of any amount under this paragraph to the
extent resulting from a requirement imposed (other than as provided in Section 2.15) on such Lender
by any Governmental Authority (and not on Lenders or any class of Lenders generally) in respect of
a concern expressed by such Governmental Authority with such Lender specifically, including with
respect to its financial health.

          (c) Any additional interest owed pursuant to paragraph (a) or (b) above shall be determined by
the relevant Lender, acting in good faith, which determination shall be conclusive absent manifest
error, and notified to the relevant Borrower (with a copy to the Administrative Agent) at least
five Business Days before each date on which interest is payable for the relevant Loans, and such
additional interest so notified to the relevant Borrower by such Lender shall be payable to such
Lender on each date on which interest is payable for such Loans.

ARTICLE III

Representations and Warranties

          Goodyear represents and warrants to the Lenders as to itself and the Subsidiaries, the
European J.V. represents and warrants to the Lenders as to itself and the J.V. Subsidiaries and
each other Borrower represents and warrants to the Lenders as to itself and its subsidiaries that:

          SECTION 3.01. Organization; Powers. Goodyear and each of the other Credit Parties is
duly organized, validly existing and in good standing under the laws of the jurisdiction of its
organization, has all requisite power and authority to carry on its business as now conducted and,
except where the failure to do so, individually or in the aggregate, would not be reasonably likely
to result in a Material Adverse Change, is qualified to do business, and is in good standing, in
every jurisdiction where such qualification is required. Each Subsidiary of Goodyear other than
the Credit Parties is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, has all requisite power and authority to carry on its business as
now conducted and is qualified to do business, and is in good standing, in every jurisdiction where
such qualification is required, except for failures that, individually or in the aggregate, would
not be materially likely to result in a Material Adverse Change.

          SECTION 3.02. Authorization; Enforceability. The Transactions to be entered into by
each Borrower and each other Credit Party are within such Borrower’s or such Credit Party’s powers
and have been duly authorized. This Agreement has been duly executed and delivered by Goodyear and each Borrower and constitutes, and
each other Credit Document to which any Credit Party is to be a party, when executed and

 

61

delivered by such Credit Party, will constitute, a legal, valid and
binding obligation of
Goodyear, such Borrower or such Credit Party, as the case may be, enforceable in accordance
with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other
laws affecting creditors’ rights generally and subject to general principles of equity, regardless
of whether considered in a proceeding in equity or at law.

          SECTION 3.03. Governmental Approvals; No Conflicts. (a) Except to the extent that no
Material Adverse Change would be materially likely to result, the Transactions (a) do not require
any consent or approval of, registration or filing with, or any other action by, any Governmental
Authority, except such as are required to perfect Liens created under the Security Documents and
such as have been obtained or made and are in full force and effect, (b) will not violate any
applicable law or regulation or the charter, by-laws or other organizational documents of Goodyear
or any of the Subsidiaries or any order of any Governmental Authority, (c) will not violate or
result in a default under any indenture, agreement or other instrument binding upon Goodyear or any
of the Subsidiaries or any of their assets and (d) will not result in the creation or imposition of
any Lien on any asset of Goodyear or any of the Subsidiaries, except Liens created under the Credit
Documents.

          (b) The incurrence of each Loan, Letter of Credit and LC Disbursement, each Guarantee thereof
under the Credit Documents and each Lien securing any of the Obligations, is permitted under the
Junior Lien Indenture and each other indenture or other agreement governing any Senior
Subordinated-Lien Indebtedness in effect at the time of such incurrence.

          SECTION 3.04. Financial Statements; No Material Adverse Change. (a) The European
J.V. has heretofore furnished to the Lenders its consolidated balance sheet and statements of
income, stockholders’ equity and cash flows as of and for the fiscal year ended December 31, 2004,
reported on by PricewaterhouseCoopers, independent public accountants. Goodyear has heretofore
furnished to the Lenders its consolidated balance sheet and statements of income, stockholders’
equity and cash flows as of and for the fiscal year ended December 31, 2004. Such financial
statements of the European J.V. and Goodyear present fairly, in all material respects, the
consolidated financial position and consolidated results of operations and cash flows of the
European J.V. and its Consolidated Subsidiaries and Goodyear and its Consolidated Subsidiaries,
respectively, as of such dates and for such fiscal year in accordance with GAAP.

          (b) Except as disclosed in the Disclosure Documents, since December 31, 2004, there has been
no event or condition that constitutes or would be materially likely to result in a Material
Adverse Change, it being agreed that a reduction in any rating relating to Goodyear issued by any
rating agency shall not, in and of itself, be an event or condition that constitutes or would be
materially likely to result in a Material Adverse Change (but that events or conditions underlying
or resulting from any such reduction may constitute or be materially likely to result in a Material
Adverse Change).

          (c) Except as disclosed in the Disclosure Documents, since December 31, 2004, there has been
no event or condition that constitutes or would be materially likely

 

62

to result in a material
adverse change in or effect on the business, operations, properties,
assets or financial condition (including as a result of the effects of any contingent
liabilities thereon) of the European J.V. and the J.V. Subsidiaries, taken as a whole.

          SECTION 3.05. Litigation and Environmental Matters. (a) Except as set forth in the
Disclosure Documents, there are no actions, suits or proceedings by or before any arbitrator or
Governmental Authority pending or, to the knowledge of Goodyear, threatened against or affecting
Goodyear or any of the Subsidiaries (i) as to which there is a reasonable possibility of an adverse
determination and that if adversely determined would be materially likely, individually or in the
aggregate, to result in a Material Adverse Change or (ii) that involve the Credit Documents or the
Transactions.

          (b) Except as set forth in the Disclosure Documents, and except with respect to matters that,
individually or in the aggregate, would not be materially likely to result in a Material Adverse
Change, neither Goodyear nor any of the Subsidiaries (i) has failed to comply with any
Environmental Law or to obtain, maintain or comply with any permit, license or other approval
required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii)
has received notice of any claim with respect to any Environmental Liability or (iv) knows of any
basis for any Environmental Liability.

          SECTION 3.06. Compliance with Laws and Agreements. Each of Goodyear and the
Subsidiaries is in compliance with all laws, regulations and orders of any Governmental Authority
applicable to it or its property and all indentures, agreements and other instruments binding upon
it or its property, except where the failure to be in compliance, individually or in the aggregate,
would not be materially likely to result in a Material Adverse Change. No Event of Default has
occurred and is continuing.

          SECTION 3.07. Investment and Holding Company Status. Neither Goodyear nor any of the
Subsidiaries is (a) an “investment company” as defined in, or subject to regulation under, the
Investment Company Act of 1940, as amended, or (b) a “holding company” as defined in, or subject to
regulation under, the Public Utility Holding Company Act of 1935, as amended.

          SECTION 3.08. ERISA. Except as disclosed in the Disclosure Documents, no ERISA Event
has occurred or is reasonably expected to occur that, when taken together with all other ERISA
Events that have occurred or are reasonably expected to occur, would be materially likely to result
in a Material Adverse Change.

          SECTION 3.09. Disclosure. Neither the Information Memorandum nor the reports,
financial statements, certificates or other written information referred to in Section 3.04 or
delivered after the date hereof by or on behalf of any Credit Party to the Administrative Agent,
the Collateral Agent or any Lender pursuant to Section 5.01 (taken together with all other
information so furnished and as modified or supplemented by other information so furnished)
contained or will contain, in each case as of the date delivered, any material misstatement of fact
or omitted or will omit to state in each case

 

63

as of the date delivered, any material fact necessary
to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided that,
with respect to projected financial information or other forward looking information, Goodyear, the
European J.V. and the other Borrowers represent only that such information was prepared in good
faith based upon assumptions believed to be reasonable at the time.

          SECTION 3.10. Subsidiaries. Schedule 3.10 sets forth (a) the name and jurisdiction of
organization of, and the ownership interest of the European J.V. and its Subsidiaries in, each J.V.
Subsidiary, and (b) identifies each J.V. Subsidiary that is a Principal European Subsidiary or a
J.V. Loan Party or both, in each case as of the Effective Date. Each J.V. Subsidiary with Total
Assets greater than $10,000,000 as of December 31, 2004, is set forth on Schedule 4.01(i).

          SECTION 3.11. Security Interests. (a) The Security Agreements executed and delivered
on the Effective Date, together with (i) the actions taken on the Effective Date pursuant to
Section 4.01 and (ii) the actions required to be taken after the Effective Date pursuant to
Schedule 4.01 will, subject only to filings and similar actions that may be taken by the Collateral
Agent without the delivery of any further documents or the taking of any further actions by any
Credit Party, be effective under applicable law to create in favor of the Collateral Agent for the
benefit of the Secured Parties (or in favor of the Secured Parties, as the case may be), to the
extent contemplated by the Security Agreements, a valid and enforceable security interest in all
the Applicable Assets of each Grantor (other than Consent Assets of the J.V. Subsidiaries). The
exclusion of the Consent Assets of the J.V. Subsidiaries from the Collateral does not materially
reduce the aggregate value of the Collateral.

          (b) None of the written information relating to the Collateral delivered by or on behalf of
any Credit Party to the Administrative Agent, the Collateral Agent or any Lender pursuant to any
provision of any Credit Document is or will be incorrect when delivered in any respect material to
the rights or interests of the Lenders under the Credit Documents.

          SECTION 3.12. Use of Proceeds. The proceeds of the Loans and the Letters of Credit
will be used only for the purposes referred to in the preamble to this Agreement. No part of the
proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a
violation of any of the Regulations of the Board, including Regulations T, U and X.

ARTICLE IV

Conditions

          SECTION 4.01. Effective Date. This Agreement shall not become effective until the
date on which each of the following conditions is satisfied (or waived in accordance with Section
9.02).

 

64

     (a) The Administrative Agent (or its counsel) shall have received from
Goodyear, each Borrower, the Administrative Agent, the Collateral Agent, the Issuing
Banks, the Lenders and each Revolving Lender under the Existing Credit Agreement either
(i) counterparts of the Amendment and Restatement Agreement signed on behalf of each such
party or (ii) written evidence satisfactory to the Administrative Agent (which may
include telecopy transmission of a signed signature page of the Amendment and Restatement
Agreement) that each such party has signed a counterpart of this Agreement.

     (b) The Administrative Agent shall have received favorable written
opinions (addressed to the Administrative Agent, the Collateral Agent, the Issuing Banks
and the Lenders and dated the Effective Date) of (i) Covington & Burling, counsel for
Goodyear, substantially in the form of Exhibit E-1, (ii) the General Counsel, the
Associate General Counsel or an Assistant General Counsel of Goodyear, substantially in
the form of Exhibit E-2, and (iii) each of the counsel set forth in Schedule 4.01(b), in
each case in a form satisfactory to the Administrative Agent, and, in the case of each
opinion referred to in this paragraph (b), covering such other matters relating to the
Credit Parties, the Credit Documents or the Transactions as the Administrative Agent or
the Majority Lenders shall reasonably request.

     (c) The Administrative Agent shall have received such documents and
certificates as the Administrative Agent or its counsel may reasonably request relating
to the organization, existence and good standing of each Credit Party, the authorization
by the Credit Parties of the Transactions and any other legal matters relating to
Goodyear, the Borrowers, the other Credit Parties, the Credit Documents or the
Transactions, all in form and substance reasonably satisfactory to the Administrative
Agent and its counsel.

     (d) The representations and warranties set forth in Article III shall be
true and correct in all material respects on the Effective Date and the Administrative
Agent shall have received a certificate signed by a Financial Officer of each of Goodyear
and the European J.V. to that effect.

     (e) Goodyear, the Borrowers and the other Credit Parties shall be in
compliance with all the terms and provisions set forth herein and in the other Credit
Documents in all material respects on their part to be observed or performed, and at the
time of and immediately after the Effective Date, no Default shall have occurred and be
continuing, and the Administrative Agent shall have received a certificate signed by a
Financial Officer of each of Goodyear and the European J.V. to that effect.

     (f) The Administrative Agent shall have received all fees and other
amounts due and payable on or prior to the Effective Date, including, to the extent
invoiced, reimbursement or payment of all out-of-pocket expenses required to be
reimbursed or paid by the European J.V. or Goodyear hereunder.

 

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     (g) Each Term Lender under the Existing Credit Agreement shall have
received payment in full of the principal of and interest accrued on each Term Loan held
by it under the Existing Credit Agreement and all other amounts owing to it or accrued
for its account under the Existing Credit Agreement.

     (h) The Administrative Agent shall have received from each Borrower, each
Principal European Subsidiary (other than the Special Excluded Subsidiaries), Goodyear
and each US Subsidiary Guarantor a counterpart of the Guarantee and Collateral Agreement
duly executed and delivered on behalf of such Person.

     (i) All outstanding Equity Interests of any J.V. Subsidiary directly owned
by any Grantor at such time (other than Equity Interests in any Subsidiary with Total
Assets not greater than $10,000,000 as of December 31, 2004), which J.V. Subsidiaries are
set forth on Schedule 4.01(i), shall have been pledged or otherwise encumbered pursuant
to Security Agreements to secure the Applicable Secured Obligations of such Grantor.

     (j) All Security Agreements referred to in the final closing checklist
distributed by counsel for the Agents prior to the execution of this Agreement shall have
been executed and delivered, all other actions referred to in such closing checklist
shall have been taken, and the Collateral Agent shall have received all documents
referred to in such closing checklist.

          The Collateral Agent may enter into agreements with the European J.V. to grant extensions of
time for the creation or perfection of security interests in or the delivery of surveys, title
insurance, legal opinions or other documents with respect to particular assets (including
extensions beyond the Effective Date for the creation and perfection of security interests in the
assets of the Grantors on such date) where it determines that creation or perfection cannot be
accomplished or such documents cannot be delivered without undue effort or expense by the Effective
Date or any later date on which they are required to be accomplished or delivered under this
Agreement or the Security Documents. Any failure of the European J.V. to satisfy a requirement of
any such agreement by the date specified therein (or any later date to which the Collateral Agent
may agree) shall constitute a breach of the provision of this Agreement or the Security Document
under which the original requirement was applicable. Without limiting the foregoing, it is
anticipated that the actions listed on Schedule 4.01 will not have been completed by the Effective
Date, and the European J.V. covenants and agrees that each of such actions will be completed by the
date specified for such action in such Schedule 4.01 (or any later date to which the Collateral
Agent may agree) and that the European J.V. will comply with all of the undertakings set forth in
Schedule 4.01.

          The Loans made, the application of the proceeds thereof and the termination of existing
Indebtedness on the Effective Date shall be deemed to occur as set forth in the Amendment and
Restatement Agreement.

 

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          The Administrative Agent shall notify the European J.V. and the Lenders of the Effective Date
in writing, and such notice shall be conclusive and binding. Notwithstanding the foregoing, the
obligations of the Lenders to make Loans and the Issuing Banks to issue Letters of Credit hereunder
shall not become effective unless each of the foregoing conditions shall have been satisfied (or
waived pursuant to Section 9.02) at or prior to 5:00 p.m., London time, on April 30, 2005 (and, in
the event such conditions are not so satisfied or waived, the Commitments shall terminate at such
time).

          SECTION 4.02. Each Credit Event. (A) The obligation of each Lender to make a Loan on
the occasion of any Borrowing (other than a conversion or continuation of an outstanding Borrowing
and other than a Swingline Borrowing to reimburse an LC Disbursement made pursuant to Section
2.04(e)) and of each Issuing Bank to issue, amend, renew or extend any Letter of Credit), shall be
subject to the satisfaction of the following conditions:

     (a) The representations and warranties of Goodyear, the European J.V. and
each other Borrower set forth in this Agreement and in the other Credit Documents
(insofar as the representations and warranties in such other Credit Documents relate to
the transactions provided for herein or to the Collateral securing the Obligations) shall
be true and correct in all respects material to the rights or interests of the Lenders or
the Issuing Banks under the Credit Documents on and as of the date of such Borrowing or
the date of issuance, amendment, renewal or extension of such Letter of Credit, as
applicable, with the same effect as though made on and as of such date, except to the
extent such representations and warranties expressly relate to an earlier date.

     (b) At the time of and immediately after giving effect to such Borrowing
no Event of Default shall have occurred and be continuing and no breach of the delivery
requirements of Section 5.01(a) or (b) shall have occurred and be continuing.

          (B) The obligation of the Swingline Lender to make a Swingline Loan on the occasion of any
Borrowing to reimburse an LC Disbursement made pursuant to Section 2.04(e) shall be subject to the
satisfaction of the condition that at the time of and immediately after giving effect to such
Borrowing, no Event of Default shall have occurred and be continuing.

          (C) Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit
shall be deemed to constitute a representation and warranty by Goodyear, the European J.V. and each
other Borrower on the date thereof as to the matters specified in paragraphs (a) and (b) of
subsection (A) above or in subsection (B) above, as the case may be.

 

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ARTICLE V

Affirmative Covenants

          Until the Commitments shall have expired or been terminated and the principal of and interest
on each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit
shall have expired or terminated and all LC Disbursements shall have been reimbursed, each of
Goodyear and the European J.V. and each other Borrower covenants and agrees with the Lenders that:

          SECTION 5.01. Financial Statements and Other Information. Each of Goodyear and the
European J.V. will furnish to the Administrative Agent and each Lender:

     (a) (i) as soon as available and in any event within 110 days after the
end of each fiscal year (or in the case of the European J.V. for its fiscal year ended
December 31, 2004, on or before July 31, 2005), its audited consolidated balance sheet
and related statements of income, stockholders’ equity and cash flows as of the end of
and for such year, setting forth in each case in comparative form the figures for the
previous fiscal year, all reported on by PricewaterhouseCoopers or other independent
public accountants of recognized international standing (without any qualification or
exception as to the scope of such audit) to the effect that such consolidated financial
statements present fairly in all material respects the financial condition and results of
operations of Goodyear and its Consolidated Subsidiaries or of the European J.V. and its
Consolidated Subsidiaries, as the case may be, in accordance with GAAP consistently
applied; and (ii) as soon as available and in any event on or before April 30 in each
fiscal year, an annual operating plan for such fiscal year prepared by management of
Goodyear in a manner consistent with past practice, which annual operating plan shall
include, for such fiscal year, (A) annual and quarterly projected income statements,
annual and quarterly projected statements of cash flow, and a projected year-end balance
sheet as of the last day of such fiscal year, in each case, for Goodyear and its
Consolidated Subsidiaries, and (B) quarterly projections of unit and dollar sales, EBIT
and operating cash flow by business unit;

     (b) as soon as available and in any event within 60 days after the end of
each of the first three fiscal quarters of each fiscal year (or in the case of the
European J.V. for the fiscal period ended March 31, 2005, on or before July 31, 2005),
its consolidated balance sheet and related statements of income, stockholders’ equity and
cash flows as of the end of and for such fiscal quarter and the then elapsed portion of
the fiscal year, setting forth in each case in comparative form the figures for the
corresponding period or periods of (or, in the case of the balance sheet, as of the end
of) the previous fiscal year, all certified by one of its Financial Officers as
presenting fairly in all material respects the financial condition and results of
operations of Goodyear and its Consolidated Subsidiaries or the European J.V. and its
consolidated J.V.

 

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Subsidiaries, as the case may be, on a consolidated basis in accordance with GAAP
consistently applied, subject to normal year-end audit adjustments and the absence of
footnotes;

     (c) other than in connection with the delivery of financial statements for
the fiscal period ended March 31, 2005, not later than one Business Day after each
delivery of financial statements under clause (a) or (b) above, a certificate of a
Financial Officer of Goodyear or the European J.V., as the case may be, (i) certifying as
to whether a Default has occurred and, if a Default has occurred, specifying the details
thereof and any action taken or proposed to be taken with respect thereto, (ii)
demonstrating compliance with Sections 6.09, 6.10, 6.11 and 6.12 at the end of the period
to which such financial statements relate and for each applicable period then ended,
(iii) stating whether any change in GAAP or in the application thereof has occurred since
the date of the most recent audited financial statements delivered under clause (a) above
(or, prior to the delivery of any such financial statements, since December 31, 2004)
and, if any such change has occurred, specifying the effect of such change on the
financial statements accompanying such certificate and (iv) specifying the exchange rate
determined by Goodyear and used in the annual operating plan delivered under clause (a)
above for the then current fiscal year (which rate Goodyear agrees to determine
reasonably);

     (d) in the case of Goodyear, promptly after the same become publicly
available, copies of all periodic and other reports, proxy statements and other materials
filed by Goodyear or any Subsidiary with the United States Securities and Exchange
Commission, or any Governmental Authority succeeding to any or all of the functions of
said Commission, or with any national securities exchange, or distributed by Goodyear to
its shareholders generally, as the case may be;

     (e) other than in connection with the delivery of financial statements for
the fiscal period ended March 31, 2005, not later than one Business Day after each
delivery of financial statements under clause (a) or (b) above, and at such other times
as Goodyear may determine, a certificate of a Financial Officer of Goodyear identifying
each US Subsidiary and each J.V. Subsidiary formed or acquired after the Effective Date
and not previously identified in a certificate delivered pursuant to this paragraph,
stating (i) whether each such US Subsidiary is a Consent Subsidiary and describing the
factors that shall have led to the identification of any such US Subsidiary as a Consent
Subsidiary, and (ii) whether each such J.V. Subsidiary is a Principal European Subsidiary
and, if so, whether such Principal European Subsidiary is a Consent Subsidiary and
describing the factors that shall have led to the identification of any such Principal
European Subsidiary as a Consent Subsidiary;

     (f) from time to time, all information and documentation required to be
delivered under Section 4.04 of the Guarantee and Collateral Agreement or any provision
of any Security Agreement and each year, at the time of delivery of

 

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annual financial statements under Section 5.01(a), a certificate executed on behalf
of the European J.V. by a Financial Officer and the chief legal officer of the European
J.V. setting forth information sufficient to enable the Lenders to determine whether the
requirements of Section 5.08 have been met at such time;

     (g) other than in connection with the delivery of financial statements for
the fiscal period ended March 31, 2005, not later than one Business Day after each
delivery of financial statements under clause (a) or (b) above, a certificate of a
Financial Officer of each of Goodyear and the European J.V. certifying that the
requirements of Section 5.08 have been satisfied in all material respects;

     (h) promptly upon becoming available, quarterly and annual financial
statements for GDTG prepared in the ordinary course of business; and

     (i) promptly following any request therefor, such other information
regarding the operations, business affairs and financial condition of Goodyear, the
European J.V. or any other Subsidiary, or compliance with the terms of this Agreement or
the other Credit Documents, or the perfection of the security interests created by the
Security Documents, as the Administrative Agent or any Lender may reasonably request.

Information required to be delivered pursuant to this Section 5.01 shall be deemed to have been
delivered if such information, or one or more annual or quarterly reports containing such
information, shall have been posted by the Administrative Agent on an IntraLinks or similar site to
which the Lenders have been granted access or shall be available on the website of the Securities
and Exchange Commission at http://www.sec.gov; provided that Goodyear shall deliver paper
copies of such information to any Lender that requests such delivery. Information required to be
delivered pursuant to this Section 5.01 may also be delivered by electronic communications pursuant
to procedures approved by the Administrative Agent.

          SECTION 5.02. Notices of Defaults. Goodyear will furnish to the Administrative Agent,
each Issuing Bank and each Lender prompt written notice of the occurrence of any Default, together
with a statement of a Financial Officer or other executive officer of Goodyear setting forth the
details of the event or development requiring such notice and any action taken or proposed to be
taken with respect thereto.

          SECTION 5.03. Existence; Conduct of Business. Each of Goodyear and the European J.V.
and each other Borrower will, and will cause each of its respective Subsidiaries to, do or cause to
be done all things necessary to preserve, renew and keep in full force and effect its legal
existence and the rights, licenses, permits, privileges and franchises material to the conduct of
its business, except to the extent that failures to keep in effect such rights, licenses, permits,
privileges and franchises would not be materially likely, individually or in the aggregate for all
such failures, to result in a Material Adverse Change; provided that the foregoing shall
not prohibit any merger, consolidation, liquidation or dissolution permitted under Section 6.04.

 

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          SECTION 5.04. Maintenance of Properties. Each of Goodyear and the European J.V. and
each other Borrower will, and will cause each of its respective Subsidiaries to, keep and maintain
all its property in good working order and condition, ordinary wear and tear excepted, except to
the extent any failure to do so would not, individually or in the aggregate, be materially likely
to result in a Material Adverse Change (it being understood that the foregoing shall not prohibit
any sale of any assets permitted by Section 6.06) .

          SECTION 5.05. Books and Records; Inspection and Audit Rights. Each of Goodyear and
the European J.V. and each other Borrower will, and will cause each of its respective Subsidiaries
to, keep books of record and account sufficient to enable each of Goodyear and the European J.V. to
prepare the financial statements and other information required to be delivered under Section 5.01.
Each of Goodyear, the European J.V. and each other Borrower will, and will cause each of its
respective Subsidiaries to, permit any representatives designated by the Administrative Agent (or
by any Lender acting through the Administrative Agent), upon reasonable prior notice, to visit and
inspect its properties (accompanied by a representative of Goodyear or the European J.V.) and to
discuss its affairs, finances and condition with its officers, all at such reasonable times and as
often as reasonably requested.

          SECTION 5.06. Compliance with Laws. Each of Goodyear and the European J.V. and each
other Borrower will, and will cause each of its respective Subsidiaries to, comply with all laws,
including Environmental Laws, rules, regulations and orders of any Governmental Authority
applicable to it or its property, except where the failure to do so, individually or in the
aggregate, would not be materially likely to result in a Material Adverse Change.

          SECTION 5.07. Insurance. Each of Goodyear and the European J.V. and each other
Borrower will, and will cause each of its respective Subsidiaries to, maintain, with financially
sound and reputable insurance companies, insurance in such amounts and against such risks as are
customary among companies of established reputation engaged in the same or similar businesses and
operating in the same or similar locations, except to the extent the failure to do so would not be
materially likely to result in a Material Adverse Change. Goodyear will furnish to the
Administrative Agent or any Lender, upon request, information in reasonable detail as to the
insurance so maintained.

          SECTION 5.08. Guarantees and Collateral. (a) In the event that there shall at any
time exist any Principal European Subsidiary (other than a Consent Subsidiary) or any US Subsidiary
(other than an Excluded Subsidiary or Consent Subsidiary) that shall not be a party to the
Guarantee and Collateral Agreement, Goodyear will promptly notify the Collateral Agent and will,
within 30 days (or such longer period as may be reasonable under the circumstances) after such
notification, deliver to the Collateral Agent such information as the Collateral Agent shall have
reasonably requested and a supplement to the Guarantee and Collateral Agreement, in substantially
the form specified therein, duly executed and delivered on behalf of such Principal European
Subsidiary or US Subsidiary, as the case may be, pursuant to which such Principal European
Subsidiary or such US Subsidiary, as the case may be, will

 

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become a party to the Guarantee and Collateral Agreement and, in the case of a Principal
European Subsidiary, a European Facilities Guarantor and European Facilities Grantor, or in the
case of such US Subsidiary, a US Guarantor, in each case as defined in the Guarantee and Collateral
Agreement; provided that if a Financial Officer of Goodyear shall have delivered a
certificate to the Administrative Agent certifying that Goodyear has determined (i) based upon the
advice of French counsel, that the corporate benefit principles or other applicable law of the
Republic of France would prohibit any Principal European Subsidiary organized under the laws of the
Republic of France from duly authorizing a Guarantee of any of the Obligations, or (ii) based upon
the advice of German counsel, that the applicable law of Germany would prohibit any Principal
European Subsidiary formed or acquired after the Effective Date and organized under the laws of the
Germany from duly authorizing a Guarantee of any of the Obligations, such Principal European
Subsidiary shall not be required to become a party to the Guarantee and Collateral Agreement.
Notwithstanding the foregoing, no Subsidiary will be required to take any action pursuant to this
paragraph (a) if (i) such Subsidiary shall have received an opinion of counsel in the applicable
jurisdiction that, under circumstances referred to in such opinion, such action would subject its
officers or directors to a material risk of personal liability and (ii) there shall be a material
risk that the circumstances referred to in such opinion will occur.

          (b) In the event that any Grantor shall at any time directly own any Equity Interests of any
J.V. Subsidiary (in each case other than (i) Equity Interests in any Subsidiary with Total Assets
not greater than $10,000,000 as of December 31, 2004, or if later, as of the end of the most recent
fiscal quarter for which financial statements have been delivered pursuant to Section 5.01(a) or
(b), (ii) Equity Interests in any Special Excluded Subsidiary or Consent Subsidiary and (iii)
Equity Interests already pledged in accordance with this paragraph or Section 4.01), Goodyear will
promptly notify the Collateral Agent and will, within 30 days (or such longer period as may be
reasonable under the circumstances) after such notification, cause such Equity Interests to be
pledged under a Security Agreement and, to the extent that the Collateral Agent determines that
possession of any certificates representing any such Equity Interests would provide any benefit in
respect of priority or otherwise under applicable law and requests delivery, cause to be delivered
to the Collateral Agent any certificates representing such Equity Interests, together with undated
stock powers or other instruments of transfer with respect thereto endorsed in blank;
provided, that no Grantor shall be required to pledge any Equity Interests in any
Subsidiary organized under the laws of a jurisdiction other than the Federal Republic of Germany,
the Netherlands, Luxembourg, the Republic of France, the United Kingdom or the Republic of Slovenia
if a Financial Officer of Goodyear shall have delivered a certificate to the Administrative Agent
certifying that Goodyear has determined, on the basis of reasonable inquiries in the jurisdiction
of such Person, that such pledge would affect materially and adversely the ability of such Person
to conduct its business in such jurisdiction. In the event that the tire manufacturing facilities
of SAVA shall at any time be held by any Person other than SAVA, all the Equity Interests in such
other Person shall be pledged under a Security Agreement.

 

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          (c) In the event that any Grantor shall at any time own any Applicable Assets (other than
Consent Assets and Applicable Assets already pledged, mortgaged or otherwise encumbered pursuant to
any Security Agreement) consisting of real property with a book value of $10,000,000 or more, the
European J.V. will promptly notify the Collateral Agent and will, within 30 days (or such longer
period as may be reasonable under the circumstances) after such notification, cause such Applicable
Assets to be mortgaged or otherwise encumbered pursuant to one or more Security Agreements
reasonably acceptable to the Collateral Agent and such Grantor to secure the Applicable Secured
Obligations of such Grantor. In the event that, at the end of any fiscal quarter, the Grantors,
taken together, shall own any Applicable Assets (other than Consent Assets, Equity Interests in
Subsidiaries and Applicable Assets already pledged, mortgaged or otherwise encumbered pursuant to
any Security Agreement) with an aggregate book value greater than $50,000,000 that shall not have
been pledged, mortgaged or otherwise encumbered pursuant to the Security Agreements, the European
J.V. will, promptly after the delivery of financial statements under Section 5.01(a) or (b) with
respect to such fiscal quarter, notify the Collateral Agent and will, within 30 days, (or such
longer period as may be reasonable under the circumstances) after such notification, cause such
Applicable Assets (other than assets that in the aggregate are not material) to be pledged,
mortgaged or otherwise encumbered by the Grantors pursuant to one or more Security Agreements
reasonably acceptable to the Collateral Agent and each applicable Grantor to secure the Applicable
Secured Obligations of the respective Grantors; provided, that if a Financial Officer of
Goodyear shall have delivered a certificate to the Administrative Agent certifying that Goodyear
has determined (i) based upon the advice of French counsel, that the corporate benefit principles
or other applicable law of the Republic of France would prohibit any Principal European Subsidiary
organized under the laws of the Republic of France from duly authorizing the creation or perfection
of any such security interest, or (ii) based upon the advice of German counsel, that the applicable
law of Germany would prohibit any Principal European Subsidiary formed or acquired after the
Effective Date and organized under the laws of the Germany from duly authorizing the creation or
perfection of any such security interest, such Principal European Subsidiary shall not be required
to create or perfect such security interest. Notwithstanding the foregoing, no Grantor will be
required to take any action pursuant to this paragraph (c) if (i) such Grantor shall have received
an opinion of counsel in the applicable jurisdiction that, under circumstances referred to in such
opinion, such action would subject its officers or directors to a material risk of personal
liability and (ii) there shall be a material risk that the circumstances referred to in such
opinion will occur. In the event that any Grantor that is organized under German law as a
Kommanditgesellschaft (a “KG”) shall, at any time, be party to or enter into any kind of
lease arrangement pursuant to which it leases PP&E with a value of more than $10,000,000 to one of
its Affiliates that is organized under German law as a Gesellschaft mit beschraenkter Haftung (a
“GmbH”), such KG will promptly notify the Collateral Agent and will, within 30 days (or
such longer period as may be reasonable under the circumstances) after such notification, assign
all rights that it has to terminate such lease arrangement (and, if such right does not exist in
such lease, amend such lease so that it shall be terminable at the election of the lessor at any
time upon
and during the continuance of an Event of Default) to the

 

73

Collateral Agent under a Security Agreement reasonably acceptable to the Collateral Agent to
secure the Applicable Secured Obligations of such Grantor.

          (d) Goodyear, the European J.V. and each other Borrower will, and will cause each of their
respective Subsidiaries to, execute any and all further documents, financing statements, agreements
and instruments, and take all such further actions, as may be reasonably requested by the
Collateral Agent in order to cause the security interests purported to be created by the Security
Documents or required to be created under the terms of this Agreement to constitute valid security
interests, perfected in accordance with this Agreement.

ARTICLE VI

Negative Covenants

          Until the Commitments shall have expired or terminated and the principal of and interest on
each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit
shall have expired or terminated and all LC Disbursements shall have been reimbursed, each of
Goodyear and the European J.V. and each other Borrower covenants and agrees with the Lenders that:

          SECTION 6.01. Indebtedness and Preferred Equity Interests. Each of Goodyear and the
European J.V. and each other Borrower will not, and will not permit any of its respective
Consolidated Subsidiaries to, create, incur, assume or permit to exist any Indebtedness, or issue
any preferred stock or other preferred Equity Interests, except:

     (a) Indebtedness under this Agreement (and related Indebtedness under the
Security Documents);

     (b) Indebtedness under the First Lien Agreement and the Second Lien
Agreement (and related Indebtedness under the “Security Documents” as defined in such
Agreements) in an amount for each such Agreement not greater than the aggregate amount of
the outstanding loans and unfunded commitments of the lenders thereunder on the Effective
Date, and additional Indebtedness that may be incurred under the First Lien Agreement
that does not result in the aggregate principal amount of Indebtedness under the First
Lien Agreement exceeding $1,750,000,000;

     (c) other Indebtedness existing (or incurred pursuant to commitments to
lend existing) on the date hereof, substantially all of which is set forth or described
in Schedule 6.01 (which Schedule 6.01 (i) sets forth substantially all such Indebtedness
and commitments outstanding on December 31, 2004, and (ii) shall be modified and
delivered to the Administrative Agent within 60 days after the date hereof to reflect
substantially all of the Indebtedness and commitments outstanding on the date hereof);

     (d) Indebtedness owed to Goodyear or any Subsidiary and permitted under
Section 6.05(b);

 

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     (e) Guarantees expressly permitted under Section 6.05;

     (f) Indebtedness (including Securitization Transactions) of Foreign
Subsidiaries in an aggregate principal amount (excluding Indebtedness existing or
incurred under the other clauses of this Section 6.01 and under Section 6.05(b)) not
greater than $600,000,000 outstanding at any time; provided that (i) the
aggregate principal amount of Indebtedness incurred under this clause (f) after December
31, 2004, by the European J.V. and the J.V. Subsidiaries shall not exceed $350,000,000,
and (ii) of the Indebtedness incurred under clause (i) of this proviso, the aggregate
principal amount of such Indebtedness incurred by J.V. Subsidiaries that are not
Subsidiary Guarantors shall not exceed $50,000,000; and provided further
that the maximum aggregate amount of all the Indebtedness of J.V. Subsidiaries that are
organized under the laws of Slovenia outstanding at any time under this clause (f) or
under any other clause of this Section 6.01 shall not exceed $75,000,000;

     (g) Securitization Transactions (other than those permitted by paragraphs
(f), (j), (l), (r) and (t) of this Section) in an aggregate amount not greater than
€300,000,000 outstanding at any time, including Securitization Transactions of the
European J.V. and the J.V. Subsidiaries;

     (h) Indebtedness of Goodyear or any Subsidiary incurred to finance the
acquisition, construction or improvement of any fixed or capital assets, including
Capital Lease Obligations and any Indebtedness assumed in connection with the acquisition
of any such assets or secured by a Lien on any such assets prior to the acquisition
thereof; provided that such Indebtedness is incurred prior to or within 180 days
after such acquisition or the completion of such construction or improvement;

     (i) Attributable Debt of Goodyear or any Subsidiary incurred pursuant to
Sale and Leaseback Transactions permitted by Section 6.03;

     (j) Indebtedness of any Person that shall have become a Subsidiary after
the date hereof; provided that such Indebtedness shall have existed at the time
such Person becomes a Subsidiary and shall not have been created in contemplation of or
in connection with such Person becoming a Subsidiary;

     (k) obligations of Goodyear and the Subsidiaries existing on the date
hereof (other than Guarantees, Securitization Transactions and Sale and Leaseback
Transactions) that would not constitute Indebtedness that would appear as liabilities on
a consolidated balance sheet of Goodyear under GAAP as in effect on the date hereof and
that, as a result of changes in GAAP after the date hereof, shall be required to be
reflected on such a balance sheet as liabilities;

     (l) Indebtedness of any Subsidiary that is not a Consolidated Subsidiary
of Goodyear or the European J.V. under GAAP as in effect on the date hereof

 

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(and in the event that any such Subsidiary shall become a Consolidated Subsidiary of
Goodyear or the European J.V., Indebtedness of such Subsidiary existing at the time it
becomes such a Consolidated Subsidiary);

     (m) any extension, renewal, refinancing or replacement of any Indebtedness
referred to in any of clauses (a) through (l) above that does not increase the
outstanding principal amount thereof (except to the extent necessary to pay the fees,
expenses, underwriting discounts and prepayment premiums in connection therewith) or
change the parties directly or indirectly responsible for the payment of such
Indebtedness; provided that (i) any such refinancing or replacement Indebtedness
shall not shorten the maturity of the Indebtedness refinanced or replaced or add a
requirement not previously applicable to the Indebtedness refinanced or replaced that
such Indebtedness be prepaid, redeemed, repurchased or defeased on one or more scheduled
dates or upon the happening of one or more events (other than events of default or change
of control events) before the maturity of the Indebtedness being refinanced or replaced;
(ii) (A) any such refinancing or replacement of Indebtedness under any revolving credit
or similar facility shall be accompanied by the termination of the portion of the
commitments under such facility under which such refinanced or replaced Indebtedness
shall have been outstanding and (B) any extension, renewal, refinancing or replacement of
Indebtedness under any revolving credit or similar facility may be in an aggregate
principal amount equal to the commitments under such facility at the time of such
extension, renewal, refinancing or replacement, whether or not such commitments have been
drawn at the time of such extension, renewal, refinancing or replacement; (iii) in the
case of the refinancing of any Indebtedness that is not permitted to be prepaid,
redeemed, defeased or otherwise discharged prior to its maturity, or in respect of which
Goodyear determines in its sole discretion that the costs or difficulty of extinguishing
such Indebtedness at the time such refinancing Indebtedness is incurred outweigh the
advantages to Goodyear of such extinguishment, any such refinancing Indebtedness may be
incurred up to one year in advance of the maturity of such Indebtedness to be refinanced
and the proceeds thereof may, in lieu of being applied to refinance such Indebtedness,
be used for any purpose permitted under this Agreement prior to the refinancing of such
Indebtedness; and (iv) any such refinancing Indebtedness may be incurred up to six months
after the extinguishment of the Indebtedness being refinanced;

     (n) Indebtedness arising from the honoring of a check, draft or similar
instrument presented by Goodyear or a Subsidiary against insufficient funds;

     (o) Indebtedness pursuant to any Swap Agreement entered into to hedge
against risks to which the businesses of Goodyear and the Subsidiaries are exposed, and
not for speculative purposes, or in order to effectively cap, collar or exchange interest
rates (from fixed to floating rates, from one floating rate to another floating rate or
otherwise) with respect to any interest-bearing liability or investment of Goodyear or
any Subsidiary;

 

76

     (p) unsecured surety and performance bonds entered into in the ordinary
course of business and not securing Indebtedness;

     (q) other unsecured Indebtedness for borrowed money of Goodyear, or
preferred Equity Interests of Goodyear (“Permitted Preferred Stock”), or any
combination thereof, not maturing or required to be prepaid, redeemed, repurchased or
defeased prior to the Maturity Date, whether on one or more scheduled dates or upon the
happening of one or more events (other than events of default (or similar events relating
to Equity Interests) or change of control events), and any Guarantee of such Indebtedness
provided by any Subsidiary that is a US Guarantor under the Guarantee and Collateral
Agreement that is subordinated to the Obligations on terms in no material respect less
favorable to the Lenders than market terms prevailing at the time such Guarantee is
issued; provided that the aggregate principal or stated amount of such
Indebtedness (or of the Indebtedness it Guarantees) or preferred Equity Interests created
or assumed pursuant to this clause (q) and outstanding at any time, without duplication,
shall not, taken together with the aggregate principal amount of Indebtedness outstanding
under clause (s) below, exceed $2,400,000,000; provided further, that for
purposes of this paragraph, any trust preferred stock or similar preferred Equity
Interest issued by a special purpose entity substantially all the assets of which consist
of unsecured Indebtedness or preferred Equity Interests of Goodyear meeting the
requirements of this paragraph will be deemed to be a preferred Equity Interest of
Goodyear;

     (r) a Securitization Transaction in an aggregate amount not greater than
$15,000,000 outstanding at any time involving accounts receivable, rights to future lease
payments or residuals or other financial assets, and related property of Goodyear
Australia Pty Limited;

     (s) Senior Subordinated-Lien Indebtedness for borrowed money of Goodyear
in an aggregate principal amount outstanding not to exceed $1,400,000,000 at any time, in
each case not maturing or required to be prepaid, redeemed, repurchased or defeased prior
to the Commitment Termination Date, whether on one or more scheduled dates or upon the
happening of one or more events (other than as a result of events of default or change of
control events or pursuant to customary provisions requiring that Goodyear offer to
purchase such Senior Subordinated-Lien Indebtedness with the proceeds of asset sales to
the extent such proceeds have not been invested in assets used in Goodyear’s business or
used to prepay, redeem or purchase other Indebtedness or to provide cash collateral for
reimbursement obligations in respect of letters of credit) (it being agreed that
provisions comparable to those set forth in the Junior Lien Indenture or the Third Lien
Agreement are customary), and related Guarantees by the US Subsidiary Guarantors;
provided that the Senior Subordinated-Lien Collateral Agent for such Senior
Subordinated-Lien Indebtedness shall have executed and delivered (with a copy to the
Administrative Agent), on its own behalf and on behalf of the obligees on such Senior
Subordinated-Lien Indebtedness, an Accession Agreement under the Lien Subordination and

 

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Intercreditor Agreement pursuant to which the obligations of Goodyear and the
Subsidiaries in respect of such Senior Subordinated-Lien Indebtedness shall have become
Designated Junior Obligations under the Lien Subordination and Intercreditor Agreement;

     (t) Securitization Transactions of Foreign Subsidiaries (other than those
permitted by paragraphs (f), (g), (j), (l) and (r) of this Section) in an aggregate
amount not greater than $15,000,000 outstanding at any time, including Securitization
Transactions of the European J.V. and the J.V. Subsidiaries; and

     (u) other Indebtedness in an aggregate amount at any time outstanding not
in excess of $50,000,000, of which no more than $25,000,000 may be Indebtedness of the
European J.V. and the J.V. Subsidiaries.

          SECTION 6.02. Liens. Each of Goodyear and the European J.V. and each other Borrower
will not, and will not permit any of its respective Consolidated Subsidiaries to, create, incur,
assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it,
or assign or sell any income or revenues (including accounts receivable) or rights in respect of
any thereof (other than sales of delinquent or doubtful receivables and other than any transaction
excluded from the definition of “Securitization Transaction” under the proviso thereto), except:

     (a) Liens created under the Credit Facilities Documents or the Credit
Documents;

     (b) Permitted Encumbrances;

     (c) any Lien on any property or asset of Goodyear or any Subsidiary
existing on the date hereof and set forth in Schedule 6.02; provided that (i)
such Lien shall not apply to any other property or asset of Goodyear or any Subsidiary
and (ii) such Lien shall secure only those obligations which it secured on the date
hereof and extensions, renewals and replacements thereof that do not increase the
outstanding principal amount thereof;

     (d) any Lien existing on any property or asset prior to the acquisition
thereof by Goodyear or any Subsidiary or existing on any property or asset of any Person
that shall have become a Subsidiary after the date hereof prior to the time such Person
became a Subsidiary; provided that (i) such Lien secures Indebtedness permitted
by clause (h) or (j) of Section 6.01, (ii) such Lien shall not have been created in
contemplation of or in connection with such acquisition or such Person becoming a
Subsidiary, as the case may be, (iii) such Lien shall not apply to any other property or
assets of Goodyear or any Subsidiary and (iv) such Lien shall secure only those
obligations which it shall have secured on the date of such acquisition or the date such
Person shall have become a Subsidiary, as the case may be, and extensions, renewals and
replacements thereof that do not increase the outstanding principal amount thereof;

 

78

     (e) Liens on assets acquired, constructed or improved by Goodyear or any
Subsidiary; provided that (i) such Liens secure Indebtedness permitted by clause
(h) or (j) of Section 6.01, (ii) such Liens and the Indebtedness secured thereby are
incurred prior to or within 180 days after such acquisition or the completion of such
construction or improvement, (iii) the Indebtedness secured thereby does not exceed the
cost of acquiring, constructing or improving such assets and (iv) such Liens shall not
apply to any other property or assets of Goodyear or any Subsidiary;

     (f) (i) Liens on assets of Foreign Subsidiaries securing Indebtedness
incurred under Section 6.01(f) or in connection with Securitization Transactions of
Foreign Subsidiaries permitted under Section 6.01(f), and (ii) in connection with
Securitization Transactions permitted under Section 6.01(t); provided that no
Lien described in clause (i) shall be permitted in respect of any asset of the European
J.V. or any the J.V. Subsidiary other than Liens (A) on assets not constituting
Collateral and (B) securing Indebtedness or in connection with Securitization
Transactions of the European J.V. and the J.V. Subsidiaries in an aggregate principal
amount not to exceed $10,000,000 for all J.V. Subsidiaries organized under the laws of
Slovenia or $50,000,000 for the European J.V. and all the J.V. Subsidiaries taken
together;

     (g) in connection with Securitization Transactions permitted under Section
6.01(g) and (r);

     (h) Liens in connection with Sale and Leaseback Transactions permitted by
Section 6.03;

     (i) Liens on specific items of inventory or other goods (and proceeds
thereof) securing obligations in respect of bankers’ acceptances issued for the account
of Goodyear or a Subsidiary to facilitate the purchase, shipment or storage of such items
of inventory or other goods;

     (j) Liens on specific items of inventory or other goods and related
documentation (and proceeds thereof) securing reimbursement obligations in respect of
trade letters of credit issued to ensure payment of the purchase price for such items of
inventory or other goods;

     (k) any interest of a lessor in property subject to an operating lease;

     (l) Liens referred to in policies of title insurance with respect to
Mortgaged Property (as defined in the First Lien Agreement) delivered to the
Administrative Agent prior to the Effective Date;

     (m) Liens on assets constituting Collateral under the First Lien Agreement
(other than any such Collateral constituting Indenture Properties (as defined in the
First Lien Guarantee and Collateral Agreement) or “manufacturing facilities” (as defined
in the Swiss Franc Note Agreement), including Liens on Goodyear’s headquarters facilities
in Akron, Ohio, created

 

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under any Senior Subordinated-Lien Indebtedness Security Documents to secure any
Senior Subordinated-Lien Indebtedness incurred under Section 6.01(s);

     (n) Liens on assets constituting Collateral under the First Lien Agreement
securing Indebtedness incurred under Section 6.01(m) to refinance Indebtedness under the
First Lien Agreement;

     (o) Liens on assets constituting Collateral under the Second Lien
Agreement securing Indebtedness incurred under Section 6.01(m) to refinance the
Indebtedness under the Second Lien Agreement;

     (p) other Liens on assets not constituting Collateral; provided
that the aggregate amount of the Indebtedness and other obligations secured by such Liens
shall at no time exceed $50,000,000, of which no more than $25,000,000 shall be
Indebtedness of the European J.V. and the J.V. Subsidiaries.

          SECTION 6.03. Sale and Leaseback Transactions. Each of Goodyear and the European J.V.
and each other Borrower will not, and will not permit any of its respective Consolidated
Subsidiaries to, enter into or be party to any Sale and Leaseback Transaction other than (a) Sale
and Leaseback Transactions existing on the date hereof and any replacement Sale and Leaseback
Transactions that do not involve assets other than those subject to the Sale and Leaseback
Transactions they replace and do not increase the Attributable Debt related thereto and (b) other
Sale and Leaseback Transactions the aggregate outstanding Attributable Debt in respect of which
does not exceed $125,000,000; provided that the aggregate outstanding Attributable Debt in
respect of Sale and Leaseback Transactions of the European J.V. and the J.V. Subsidiaries pursuant
to the foregoing clause (b) shall not exceed $50,000,000.

          SECTION 6.04. Fundamental Changes. (a) Each of Goodyear and the European J.V. and
each other Borrower will not, and will not permit any of its respective Consolidated Subsidiaries
to, merge into, amalgamate or consolidate with any other Person, or permit any other Person to
merge into, amalgamate or consolidate with it, or sell, transfer, lease or otherwise dispose of (in
one transaction or in a series of transactions) assets (including capital stock of Subsidiaries)
constituting all or substantially all the assets of Goodyear and its Consolidated Subsidiaries,
taken as a whole, or all or substantially all the assets of the European J.V. and its Consolidated
Subsidiaries, taken as a whole, or, in the case of Goodyear or any Borrower, liquidate or dissolve,
except that, if at the time thereof and immediately after giving effect thereto no Default shall
have occurred and be continuing (i) any Subsidiary that is not a J.V. Loan Party may merge into
Goodyear in a transaction in which Goodyear is the surviving corporation, (ii) any Subsidiary may
merge into any other Subsidiary in a transaction in which the surviving entity is a Subsidiary;
except that (A) no US Subsidiary may merge into a Foreign Subsidiary, (B) neither the European J.V.
nor any J.V. Subsidiary may merge into a Subsidiary that is not the European J.V. or a J.V.
Subsidiary (other than a merger of a J.V. Subsidiary into a Subsidiary that will become a J.V.
Subsidiary upon the consummation of such merger) and (C) no J.V. Loan Party may merge into a
Subsidiary

 

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that is not a J.V. Loan Party (other than a Subsidiary that will become a J.V. Loan Party upon
the consummation of such merger), (iii) any sale of a Subsidiary made in accordance with Section
6.06 may be effected by a merger of such Subsidiary and (iv) any Subsidiary may sell, transfer,
lease or otherwise dispose of its assets to Goodyear or to another Subsidiary; provided
that any Investment that takes the form of a merger, amalgamation or consolidation (other than any
merger, amalgamation or consolidation involving Goodyear) expressly permitted by Section 6.05 shall
be permitted by this Section 6.04.

          SECTION 6.05. Investments, Loans, Advances and Guarantees. Each of Goodyear and the
European J.V. and each other Borrower will not, and will not permit any of its respective
Consolidated Subsidiaries to, purchase or acquire (including pursuant to any merger with any Person
that was not a Wholly Owned Subsidiary prior to such merger) any capital stock, evidences of
Indebtedness or securities (including any option, warrant or other right to acquire any of the
foregoing) of, make any loans or advances to, make any Guarantee of any obligations of, or make any
investment in, any other Person, or purchase or otherwise acquire (in one transaction or a series
of transactions) any assets of any other Person constituting a business unit (each of the
foregoing, an “Investment” in such Person), except:

     (a) Permitted Investments;

     (b) Investments by Goodyear and the Subsidiaries in Subsidiaries or
Goodyear; provided that no Investment shall be made by any Credit Party in a
Subsidiary that is not a Credit Party or by a J.V. Loan Party in Goodyear or a Subsidiary
that is not a J.V. Loan Party pursuant to this clause (b) except Investments (A) to fund
working capital needs of such Subsidiary, (B) to replace amounts available under credit
facilities or other financings of such Subsidiary existing on the date hereof that shall
have matured or shall have been terminated or reduced, (C) to cover losses from
operations of such Subsidiary and (D) to provide funds for Capital Expenditures or
acquisitions permitted to be made by such Subsidiary; provided further,
that Equity Interests in the European J.V. or any J.V. Subsidiary may not be transferred
to any Subsidiary that is not the European J.V. or a J.V. Subsidiary;

     (c) any Investment by a Credit Party in a Consolidated Subsidiary that is
not a Credit Party in the form of a transfer of assets used in or directly relating to
any manufacturing process (but excluding any cash or financial asset) from a jurisdiction
having higher manufacturing costs to a jurisdiction having lower manufacturing costs;
provided that (i) after giving effect to any such transfer or related series of
transfers of assets having an aggregate book value in excess of $5,000,000, the aggregate
book value of all assets subject to all such transfers involving assets having an
aggregate book value in excess of $5,000,000 after the Effective Date shall not exceed
$250,000,000 and (ii) after giving effect to any such transfer or related series of
transfers of assets having an aggregate book value in excess of $5,000,000, the aggregate
book value of all assets of the European J.V. and the J.V. Subsidiaries subject to all
such transfers

 

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involving assets having an aggregate book value in excess of $5,000,000 from and
after the Effective Date shall not exceed $100,000,000; and any Investment by Goodyear
Dunlop Tires NA in a Consolidated Subsidiary;

     (d) Guarantees expressly permitted under Section 6.01;

     (e) the acquisition of any Equity Interest; provided that the
aggregate consideration paid by Goodyear and the Subsidiaries in all such acquisitions
(including Indebtedness assumed by Goodyear or any Subsidiary) shall not exceed
$400,000,000 plus the aggregate amount of Equity Proceeds received after the Effective
Date that shall not have been used (i) to make Capital Expenditures under clause (a)(ii)
of Section 6.09 or (ii) to make other Investments under this clause (e); provided
further that the aggregate consideration paid by the European J.V. and the J.V.
Subsidiaries in all such acquisitions (including Indebtedness assumed by the European
J.V. or any J.V. Subsidiary) shall not exceed $200,000,000 plus the aggregate amount of
J.V. Equity Proceeds received after the Effective Date that shall not have been used to
make other Investments of the European J.V. and the J.V. Subsidiaries under this clause
(e);

     (f) Guarantees not permitted by any other clause of this Section 6.05
incurred in the ordinary course of business and consistent with past practices in an
aggregate amount for all such Guarantees at any time outstanding not exceeding
$50,000,000; provided that the aggregate amount of all such Guarantees by the
European J.V. and the J.V. Subsidiaries shall not exceed $25,000,000 at any time
outstanding;

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

     (h) Investments for consideration consisting solely of common stock of
Goodyear;

     (i) Equity Interests and debt obligations obtained by Goodyear or any
Subsidiary as consideration for any asset sale permitted under Section 6.06;

     (j) Investments in an aggregate amount not greater than $150,000,000
during the term of this Agreement in Persons in which Goodyear or any Subsidiary had an
Equity Interest on the date hereof that are (A) required to be made as a result of the
exercise by other holders of Equity Interests in such Persons of put options or (B)
required to avoid dilution of Goodyear’s or such Subsidiary’s percentage ownership
interest therein; provided that (A) the aggregate amount of all such Investments
by the European J.V. and the J.V. Subsidiaries shall not exceed $35,000,000 and (B) each
such Investment by the European J.V. or any J.V. Subsidiary shall be in a J.V.
Subsidiary; (ii) Investments in an aggregate amount not greater than $150,000,000 during
the

 

 

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term of this Agreement consisting of the purchase of Equity Interests in or any
business unit owned by or comprising part of the Person specified on Schedule 6.05(j);
provided that the European J.V. and the J.V. Subsidiaries shall not make any
Investment under this clause (ii); and (iii) Investments in Subsidiaries in which Persons
other than Goodyear or any Subsidiary have minority Equity Interests at the time such
Investments are made consisting of purchases of such minority interests in an aggregate
amount not greater than $100,000,000 during the term of this Agreement; provided
that (A) the aggregate amount of all such Investments by the European J.V. and the J.V.
Subsidiaries shall not exceed $50,000,000 and (B) each such Investment by the European
J.V. or any J.V. Subsidiary shall be in a J.V. Subsidiary;

     (k) any Investment that (i) is included in Capital Expenditures for the
period during which such Investment is made and that is permitted under Section 6.09 or
(ii) consists of the acquisition of all the Equity Interests in a Person (other than such
portion of the Equity Interests in any Foreign Subsidiary as may be required by local law
to be or pursuant to local market practice is customarily owned by a Person other than
Goodyear or a Subsidiary) not less than 90% of the assets of which are capital assets and
that is permitted under Section 6.09 (the amount of the Capital Expenditure in respect
thereof for purposes of determining compliance with Section 6.09 being deemed to be the
consideration paid in respect of such acquisition plus the aggregate amount of the
Indebtedness of such Person outstanding immediately after such acquisition);

     (l) Investments in Tire & Wheel Assemblies, Inc. in an aggregate amount
at any time outstanding not greater than $50,000,000; provided that the European
J.V. and the J.V. Subsidiaries shall not make any Investment under this clause (l);

     (m) loans and advances to officers and employees of Goodyear and its
Subsidiaries in the ordinary course of business;

     (n) Investments in prepaid expenses in the ordinary course of business or
in respect of required pension fund contributions;

     (o) negotiable instruments held for collection and lease, utility,
workers’ compensation, performance and other similar deposits in the ordinary course of
business;

     (p) Investments in any Subsidiary that engages in no activities other
than those related to a Securitization Transaction in order to capitalize such Subsidiary
at a level customary for a securitization vehicle in such a transaction;

     (q) Investments constituting loans or advances by the European J.V. or
any J.V. Subsidiary to Goodyear or any of its Subsidiaries (other than the

 

 

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European J.V., and the J.V. Subsidiaries) as part of cash management consistent with
past practices in an aggregate amount for all such Investments at any time outstanding
not exceeding $75,000,000;

     (r) Investments of the proceeds of any Securitization Transaction under
Section 6.01(r) in South Pacific Tyres; and

     (s) Investments not permitted by any other clause of this Section in an
aggregate amount at any time outstanding not greater than $50,000,000; provided
that the aggregate amount of all such Investments by the European J.V. and the J.V.
Subsidiaries shall not exceed $25,000,000;

          SECTION 6.06. Asset Dispositions. Each of Goodyear and the European J.V. and each
other Borrower will not, and will not permit any of its respective Consolidated Subsidiaries to,
sell, transfer or otherwise dispose of, including by means of any lease or license that is in
effect a disposition (each, a “Sale”, which term shall include any transfer designated by
the Borrower as a Sale under Section 12.13(e) of the Guarantee and Collateral Agreement) of any
asset, including any Equity Interest, owned by it, nor will Goodyear or the European J.V. or any
other Borrower permit any of its respective Subsidiaries to issue any additional Equity Interest in
such Subsidiary, except:

     (a) Sales in the ordinary course of business of inventory and worn out or
surplus equipment and Permitted Investments, and Sales in the ordinary course of business
and consistent with past practices of assets other than property, plant, Investments in
Subsidiaries and Intellectual Property; provided that licensing of Intellectual
Property in the ordinary course of business and consistent with past practices shall be
permitted;

     (b) Sales to Goodyear or a Subsidiary; provided that any such
sale, transfer or disposition by a Credit Party to a Subsidiary that is not a Credit
Party or by a J.V. Loan Party to a Subsidiary that is not a J.V. Loan Party shall be made
in compliance with Section 6.05;

     (c) Sales of accounts receivable or interests therein in Securitization
Transactions permitted under Sections 6.01(f), (g), (j), (l), (r) and (t) or in
transactions excluded from the definition of “Securitization Transaction” under the
proviso thereto;

     (d) Sales of assets in Sale and Leaseback Transactions permitted under
Section 6.03;

     (e) (i) Sales of any Equity Interests in any Person that is not a
Subsidiary and (ii) Sales, for tax planning or other business purposes, consistent with
Goodyear’s past practices, of any Equity Interests in Foreign Subsidiaries to any Foreign
Subsidiary whose Equity Interests have been pledged under any of the Security Documents;
provided in the case of any Sale under this clause (ii) that the Collateral Agent
is hereby authorized and directed to release any security interest under any Security
Document in any Equity Interest subject to

 

 

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such Sale if (A) the seller thereof is Goodyear or a US Subsidiary and such release
is required in order to obtain the desired amount of consideration from such Sale or (B)
after giving effect to such Sale the aggregate fair value of all Equity Interests subject
to Sales under this clause (ii), other than those referred to in clause (A), when taken
together with all Sales under clause (i)(1)(B) below, shall not (1) in the case of Sales
by the European J.V. and the J.V. Subsidiaries, exceed $50,000,000, and (2) for all such
Sales, exceed $100,000,000;

     (f) Sales to Persons other than Goodyear or any Subsidiary of assets
listed on Schedule 6.06; provided that (i) at least 50% of the consideration
received in each such Sale of the assets listed on Part I of Schedule 6.06 shall consist
of cash, (ii) at least 75% of the consideration received in each such Sale listed on Part
II of Schedule 6.06 shall consist of cash, and (iii) the Sale listed on Part III of
Schedule 6.06 shall be effected in a manner substantially consistent with one of the
transactions in respect thereof described on Part III;

     (g) Sales to the extent the aggregate value of the consideration received
in any such Sale or series of related Sales does not exceed $10,000,000;

     (h) Investments expressly permitted by Section 6.05; and

     (i) Sales (other than Sales of accounts receivable or inventory that are
not sold in connection with the Sale of a business or line of business) that are not
permitted by any other clause of this Section 6.06; provided that (1) the
aggregate consideration received in respect of all such Sales in reliance upon this
clause (i) shall not exceed (A) $600,000,000 in the aggregate or (B) when taken together
with all Sales under clause (e)(ii)(B) above, $100,000,000 in the aggregate with respect
to (x) Sales of Equity Interests in Foreign Subsidiaries pledged pursuant to the Security
Documents under the First Lien Agreement and (y) Sales of all or substantially all of the
assets of Foreign Subsidiaries whose Equity Interests have been pledged pursuant to the
Security Documents under the First Lien Agreement, or (C) when taken together with all
Sales under clause (e)(ii)(B) above, $50,000,000 in the aggregate with respect to (x)
Sales of Equity Interests in Foreign Subsidiaries pledged pursuant to the Security
Documents and (y) Sales of all or substantially all of the assets of Foreign Subsidiaries
whose Equity Interests have been pledged pursuant to the Security Documents, (2) the
aggregate consideration received in respect of all such Sales by the European J.V. and
the J.V. Subsidiaries shall not exceed $250,000,000 in the aggregate, (3) all Sales
permitted pursuant to this clause (i) shall be made for fair value, as reasonably
determined by Goodyear, and (4) except with respect to $100,000,000 (determined net of
any cash or Cash Equivalents subsequently realized on the Sale, or the repayment of any
portion of non-cash consideration received in connection with a Sale that represented
non-cash consideration in excess of 25% of the total consideration received in such Sale)
of consideration (of which no more than $50,000,000 shall be in respect of Sales by the
European J.V. or the J.V. Subsidiaries) for all such Sales in the

 

 

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aggregate, at least 75% of the consideration received in each such Sale shall
consist of cash.

          SECTION 6.07. Restricted Payments. (a) Each of Goodyear and the European J.V. and
each other Borrower will not, and will not permit any of its respective Consolidated Subsidiaries
to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment,
except that (i) Goodyear may declare and pay dividends payable solely in additional shares of its
common stock, (ii) so long as no Event of Default shall exist, Goodyear may declare and pay cash
dividends and other regularly scheduled distributions on shares of its Permitted Preferred Stock,
(iii) the European J.V. may declare and pay cash dividends ratably with respect to its Equity
Interests in an aggregate amount not to exceed 100% of cumulative Consolidated Net Income of the
European J.V. after January 1, 2003, (iv) Subsidiaries (other than the European J.V.) may make
Restricted Payments with respect to their Equity Interests so long as such Restricted Payments are
made ratably or on a basis more favorable to Goodyear and its Affiliates than ratably, (v) Goodyear
may make Restricted Payments pursuant to and in accordance with stock option or rights plans or
other benefit plans for management, employees, directors or consultants of Goodyear or any
Subsidiary, (vi) Goodyear and its Subsidiaries may make Investments in Subsidiaries expressly
permitted by Section 6.05(b), Section 6.05(e) or Section 6.05(s) and Investments expressly
permitted under Section 6.05(j), (vii) Goodyear may declare, so long as no Event of Default shall
exist, and pay previously declared, cash dividends on its common stock in an aggregate amount
during any fiscal year not to exceed $10,000,000 and (viii) Goodyear may during any Dividend
Availability Period declare, so long as no Event of Default shall exist, and pay previously
declared, cash dividends on its common stock in an aggregate amount during any fiscal year not to
exceed $50,000,000.

          (b) Each of Goodyear and the European J.V. and each other Borrower will not, nor will it
permit any of its respective Consolidated Subsidiaries to, make or agree to make, directly or
indirectly, any payment or other distribution (whether in cash, securities or other property),
except payments or distributions made in common stock of Goodyear to any Person other than Goodyear
or a Subsidiary in respect of principal of or interest on any Indebtedness the maturity of which is
one year or more thereafter, or any payment or other distribution (whether in cash, securities or
other property), including any sinking fund or similar deposit, on account of the purchase,
redemption, retirement, defeasance, acquisition, cancelation or termination of any Indebtedness of
Goodyear or any Subsidiary the maturity of which is one year or more thereafter, except:

     (i) payments and prepayments under this Agreement (ratably in accordance
with the Commitments or Term Loans of the Lenders) and the other Credit Facilities
Agreements;

     (ii) regularly scheduled and other mandatory interest and principal
payments (including pursuant to sinking fund requirements) as and when due in respect of
any Indebtedness;

 

 

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     (iii) refinancings of Indebtedness to the extent permitted by Section
6.01(m), including the payment of customary fees, costs and expenses in connection
therewith, and including additional cash payments in an aggregate amount for all such
refinancings not to exceed, in the case of any refinancing, 5% of the principal amount
being refinanced;

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

     (v) if no Event of Default shall exist or would exist after giving effect
thereto, repurchases, repayments or prepayments of Designated Debt;

     (vi) if no Event of Default shall exist or would exist after giving effect
thereto, repurchases, repayments or prepayments of Indebtedness of Foreign Subsidiaries in
an aggregate amount not greater than $100,000,000 during the term of this Agreement, of
which no more than $75,000,000 may be Indebtedness of the European J.V. and the J.V.
Subsidiaries; and

     (vii) if no Event of Default shall exist, other repurchases, repayments or
prepayments of Indebtedness in an aggregate amount not greater than $25,000,000 in any
calendar year.

          SECTION 6.08. Transactions with Affiliates. The European J.V. will not, nor will it
permit any J.V. Subsidiary to, sell, lease or otherwise transfer any property or assets to, or
purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other
transactions with, any of its Affiliates, except (a) transactions in the ordinary course of
business that are consistent with past practices or are at prices and on terms and conditions no
less favorable to the European J.V. or such J.V. Subsidiary than could be obtained on an
arm’s-length basis from unrelated third parties in the reasonable judgment of the European J.V.,
(b) transactions between or among the European J.V. and the J.V. Subsidiaries not involving any
other Affiliate and (c) any Restricted Payment permitted by Section 6.07.

          SECTION 6.09. Capital Expenditures. (a) Goodyear and the Subsidiaries will not make
Capital Expenditures in any fiscal year in an amount greater than the sum of (i) $700,000,000;
provided that to the extent that Capital Expenditures in any fiscal year are less than
$700,000,000 plus any additional amount carried forward to such fiscal year pursuant to this
proviso, such unused amount may be carried forward to the following fiscal year, plus (ii) the
aggregate amount of Equity Proceeds received after the Effective Date that shall not have been used
(A) to make Capital Expenditures under this clause (iii) or (B) to make Investments under Section
6.05(e).

          (b) The European J.V. and the J.V. Subsidiaries will not make Capital Expenditures in any
fiscal year in an amount greater than (i) in fiscal year 2005, $200,000,000, (ii) in fiscal year
2006, $250,000,000 and (iii) in each year thereafter, $300,000,000; provided that to the
extent that Capital Expenditures in any fiscal year are less than the amount
specified in clause (i), (ii) or (iii), as applicable, plus any
additional

 

 

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amount carried forward to such fiscal year pursuant to this proviso, such unused amount
may be carried forward to the following fiscal year.

          SECTION 6.10. Interest Expense Coverage Ratio. Goodyear will not permit the ratio of
(a) Consolidated EBITDA of Goodyear and its Consolidated Subsidiaries to (b) Consolidated Interest
Expense of Goodyear and its Consolidated Subsidiaries for any period of four consecutive fiscal
quarters to be less than 2.00 to 1.00.

          SECTION 6.11. European J.V. Leverage Ratio. The European J.V. will not permit the
ratio at the end of any fiscal quarter of (a) Consolidated Net J.V. Indebtedness at such date to
(b) Consolidated European J.V. EBITDA for the period of four consecutive fiscal quarters ended at
such date, to be greater than 2.75 to 1.00.

          SECTION 6.12. Senior Secured Indebtedness Ratio. Goodyear will not permit the ratio
at the end of any fiscal quarter of (a) Consolidated Net Secured Indebtedness of Goodyear and its
Consolidated Subsidiaries at such date to (b) Consolidated EBITDA of Goodyear and its Consolidated
Subsidiaries for the period of four consecutive fiscal quarters ended at such date, to be greater
than 3.50 to 1.00.

          SECTION 6.13. Sumitomo Ownership. Goodyear will not enter into any agreement, or
agree to amend, modify or waive any existing agreement, between it and Sumitomo Rubber Industries
or any organizational document of the European J.V., if the effect thereof is to permit Sumitomo
Rubber Industries to sell, transfer or otherwise dispose of any of the issued and outstanding
capital stock of the European J.V. owned by Sumitomo Rubber Industries to any Person other than
Goodyear or a Wholly Owned Subsidiary of Goodyear

          SECTION 6.14. German Subsidiary Matters. Notwithstanding any provision to the
contrary contained in this Agreement, Goodyear and the Borrowers shall comply with the following
provisions and cause their Subsidiaries to so comply:

          (a) Each of RVM Reifen Vertriebsmanagement GmbH (“RVM”) and each other general
partner in a KG Grantor that is organized as a GmbH under German law (collectively, the “KG
General Partners”) shall not make any advance to, or otherwise hold any Indebtedness of, any of
its Affiliates, other than advances to, or Indebtedness of, any of its Subsidiaries or any KG in
which it is a general partner; provided that this restriction shall not apply with respect
to any advance or Indebtedness if there is a change in applicable law or the interpretation thereof
and Goodyear shall have delivered a legal opinion in form and substance reasonably satisfactory to
the Administrative Agent to the effect that the claims against the recipients or borrowers of such
advance or Indebtedness may be taken into account in the calculation of Net Assets provided in
Section 3.03(d) of the Guarantee and Collateral Agreement; provided further that in such
event, the provisions of such Section 3.03(d) shall be amended to provide that such advance or
Indebtedness will be taken into account in such calculation and the Lenders hereby authorize the
Agents and the Agents hereby agree to amend such Section 3.03(d) to effect such result.

 

 

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          (b) None of Goodyear, the European J.V. or the other Borrowers shall cause to occur, or
permit any Subsidiary to cause to occur, any Dilutive Act (i) at any time prior to January 1, 2008,
(ii) at any time when any Event of Default shall have occurred and be continuing under clause (a),
(b), (h), (i), (l) or (m) of Section 7.01 or as a result of a breach of Section 5.06, 6.10, 6.11 or
6.12, or (iii) if after giving effect to such Dilutive Act the aggregate PP&E of all KG Grantors at
the time of such Dilutive Act shall be less than 80% of the aggregate PP&E of all KG Grantors as
of December 31, 2004.

     (i) “Dilutive Act” means (A) any contribution, Sale or other
transfer of PP&E of any KG Grantor (other than to another KG Grantor), other than the sale
in the ordinary course of business of worn out or surplus PP&E and (B) any change of legal
form, merger, consolidation or amalgamation involving, or any Sale of all or substantially
all the assets of, any KG Grantor in which the surviving company or transferee is not a KG
Grantor.

     (ii) “KG Grantor” means each of Fulda Reifen GmbH & Co. KG, M-Plus
Multimarkenmanagement & GmbH & Co. KG, GD Handelssysteme GmbH & Co. KG, Goodyear KG or
Dunlop KG, and any other Grantor organized as a KG.

     (iii) “PP&E” means property, plant & equipment.

     (iv) Actions required to be taken in order to comply with applicable law
shall not constitute voluntary acts and shall not violate this Section 6.14 unless
Goodyear, the European J.V. or any Borrower shall have voluntarily taken actions with
knowledge that such actions would give rise to requirements of law, the compliance with
which would cause a breach of this Section 6.14.

     (v) The European J.V. shall deliver to the Administrative Agent not later
than the time that audited financial statements of GTDG are delivered pursuant to Section
5.01(h), a computation in detail reasonably satisfactory to the Administrative Agent of the
PP&E as of December 31, 2004, of each of the KGs.

ARTICLE VII

Events of Default and CAM Exchange

          SECTION 7.01. Event of Default. If any of the following events (“Events of
Default”) shall occur:

     (a) any Borrower shall fail to pay any principal of any Loan or any
reimbursement obligation in respect of any LC Disbursement when and as the same shall
become due and payable, whether at the due date thereof or at a date fixed for prepayment
thereof or otherwise;

     (b) any Borrower shall fail to pay any interest on any Loan or any fee or
any other amount (other than an amount referred to in clause (a) of this Section)
payable under this Agreement or any other Credit Document, when and as the

 

 

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same shall become due and payable, and such failure shall continue unremedied for a period of
(i) in the case of fees and interest payable under Sections 2.12 and 2.13, respectively,
five Business Days, and (ii) in the case of any other fees, interest or other amounts
(other than those referred to in paragraph (a) above), five Business Days after the
earlier of (A) the day on which a Financial Officer of Goodyear or the European J.V.
first obtains knowledge of such failure and (B) the day on which written notice of such
failure shall have been given to the European J.V. by the Administrative Agent or any
Lender or Issuing Bank;

     (c) any representation or warranty made or deemed made by or on behalf of
Goodyear or the European J.V. or any other Borrower or any J.V. Loan Party in any Credit
Document or any amendment or modification thereof or waiver thereunder, shall prove to
have been incorrect when made or deemed made in any respect material to the rights or
interests of the Lenders under the Credit Documents;

     (d) Goodyear or the European J.V. or any other Borrower shall fail to
observe or perform any covenant, condition or agreement contained in Section 5.01(a)
(solely with respect to the European J.V.’s fiscal year ended December 31, 2004), 5.02,
5.03 (with respect to any Borrower’s existence) or 5.08 or in Article VI;

     (e) any Credit Party shall fail to observe or perform any covenant,
condition or agreement contained in any Credit Document (other than those specified in
clauses (a), (b) and (d) of this Section), and such failure shall continue unremedied for
a period of 30 days after written notice thereof from the Administrative Agent to the
European J.V. (which notice will be given at the request of any Lender);
provided, that the failure of any Credit Party to perform any covenant, condition
or agreement made in any Credit Document (other than this Agreement (except the
agreements under Section 5.01(f)) shall not constitute an Event of Default unless such
failure shall be (i) wilful or (ii) material to the rights or interests of the Lenders
under the Credit Documents;

     (f) Goodyear or any Consolidated Subsidiary of Goodyear shall fail to
make any payment of principal in respect of any Material Indebtedness at the scheduled
due date thereof and such failure shall continue beyond any applicable grace period, or
any event or condition occurs that results in any Material Indebtedness (other than any
Securitization Transaction existing on March 31, 2003) becoming due or being required to
be prepaid, repurchased, redeemed, defeased or terminated prior to its scheduled maturity
(other than, in the case of any Securitization Transaction, any event or condition not
caused by an act or omission of Goodyear or any Subsidiary, if Goodyear shall furnish to
the Administrative Agent a certificate to the effect that after the termination of such
Securitization Transaction Goodyear and the Subsidiaries that are a party thereto have
sufficient liquidity to operate their businesses in the ordinary course);
provided that this clause (f) shall not apply to (i) secured Indebtedness
that becomes due as a result of the voluntary sale or transfer of the property or

 

 

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assets securing such Indebtedness in accordance with the terms and conditions of this
Agreement or (ii) Material Indebtedness of any Foreign Subsidiary if Goodyear is unable,
due to applicable law restricting Investments in such Foreign Subsidiary, to make an
Investment in such Foreign Subsidiary to fund the payment of such Material Indebtedness;

     (g) any event or condition occurs that continues beyond any applicable
grace period and enables or permits the holder or holders of any Material Indebtedness
(other than any Securitization Transaction existing on March 31, 2003) or any trustee or
agent on its or their behalf to cause such Material Indebtedness to become due, or to
require the prepayment, repurchase, redemption, defeasance or termination thereof, prior
to its scheduled maturity; provided that (i) no Event of Default shall occur
under this paragraph (g) as a result of any event or condition relating to the First Lien
Agreement or any Securitization Transaction, other than any default in the payment of
principal or interest thereunder that does not result from a change in borrowing base
eligibility criteria or reserves made by the administrative agent thereunder as to which
there is good faith disagreement and (ii) this clause (g) shall not apply to (i) secured
Indebtedness that becomes due as a result of the voluntary sale or transfer of the
property or assets securing such Indebtedness in accordance with the terms and conditions
of this Agreement or (ii) Material Indebtedness of any Foreign Subsidiary if Goodyear is
unable, due to applicable law restricting Investments in such Foreign Subsidiary, to make
an Investment in such Foreign Subsidiary to fund the payment of such Material
Indebtedness;

     (h) an involuntary proceeding shall be commenced or an involuntary
petition shall be filed seeking (i) liquidation, reorganization, bankruptcy, moratorium,
suspension of payment or other relief in respect of Goodyear, any Borrower or any
Material Subsidiary or its debts, or of a substantial part of its assets, under any
Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or
hereafter in effect or (ii) the appointment of a receiver, trustee in bankruptcy,
custodian, sequestrator, conservator or similar official for Goodyear, any Borrower or
any Material Subsidiary or for a substantial part of its assets, and, in any such case,
such proceeding or petition shall continue undismissed for 90 days or an order or decree
approving or ordering any of the foregoing shall be entered;

     (i) Goodyear, any Borrower or any Material Subsidiary shall (i)
voluntarily commence any proceeding or file any petition seeking liquidation,
reorganization, bankruptcy, moratorium, suspension of payment or other relief under any
Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or
hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely
and appropriate manner, any proceeding or petition described in clause (h) of this
Section, (iii) apply for or consent to the appointment of a receiver, trustee in
bankruptcy, custodian, sequestrator, conservator or similar official for Goodyear, any
Borrower or any
Material Subsidiary or for a substantial part of its assets, (iv) make a general

 

 

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assignment for the benefit of creditors or (v) take any action for the purpose of
effecting any of the foregoing;

     (j) Goodyear, any Borrower or any Material Subsidiary shall admit in
writing its inability or fail generally to pay its debts as they become due;

     (k) an ERISA Event shall have occurred that, when taken together with all
other ERISA Events that have occurred, would be materially likely to result in a Material
Adverse Change;

     (l) Liens created under the Security Documents shall not be valid and
perfected Liens on a material portion of the Collateral;

     (m) any Guarantee of the Obligations under the Guarantee and Collateral
Agreement shall fail to be a valid, binding and enforceable Guarantee of one or more
Subsidiary Guarantors where such failure would constitute or be materially likely to
result in a Material Adverse Change; or

     (n) a Change in Control shall occur;

then, and in every such event (other than an event with respect to any Borrower described in clause
(h) or (i) of this Section), and at any time thereafter during the continuance of such event, the
Administrative Agent may, and at the request of the Majority Lenders shall, by notice to the
European J.V., take any or all of the following actions, at the same or different times: (i)
terminate the Commitments, and thereupon the Commitments and each LC Commitment shall terminate
immediately, (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in
which case any principal not so declared to be due and payable may thereafter be declared to be due
and payable), and thereupon the principal of the Loans so declared to be due and payable, together
with accrued interest thereon and all fees and other obligations of the European J.V. and the other
Borrowers accrued hereunder, shall become due and payable immediately, without presentment, demand,
protest or other notice of any kind, all of which are hereby waived by Goodyear and each Borrower
and (iii) demand cash collateral with respect to any Letter of Credit pursuant to Section 2.04(j)
(it being agreed that such demand will be deemed to have been made with respect to all Letters of
Credit if any Loans are declared to be due and payable as provided in the preceding clause (ii));
and in case of any event with respect to any Borrower described in clause (h) or (i) of this
Section, the Commitments shall automatically terminate, the principal of the Loans then
outstanding, together with accrued interest thereon and all fees and other obligations of the
Borrowers accrued hereunder, shall automatically become due and payable, and the Borrowers’
obligation to provide cash collateral for Letters of Credit shall become effective, in each case
without presentment, demand, protest or other notice of any kind, all of which are hereby waived by
Goodyear and each Borrower.

          SECTION 7.02. CAM Exchange. On the CAM Exchange Date, (i) the Commitments shall
automatically and without further act be terminated as provided in
Section 7.01, (ii) each ABT Lender shall immediately be deemed to have acquired (and

 

 

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shall
promptly make payment therefor to the Administrative Agent in accordance with Section 2.05(c))
participations in the Swingline Loans in an amount equal to such Lender’s ABT Percentage of each
such Swingline Loan outstanding on such date, (iii) simultaneously with the automatic conversions
pursuant to clause (iv) below, the Lenders shall automatically and without further act be deemed to
have exchanged interests in the Designated Obligations under each Class of Loans and in respect of
the LC Exposures and the Swingline Exposures such that, in lieu of the interests of each Lender in
the Designated Obligations under each Class of Loans and in respect of the LC Exposures and the
Swingline Exposures in which it shall participate as of such date (including the principal,
interest and fee obligations of each Borrower in respect of the Loans and LC Disbursements within
each such Class), such Lender shall own an interest equal to such Lender’s CAM Percentage in the
Designated Obligations under each Class of Loans and in respect of the LC Exposures and the
Swingline Exposures (including the principal, interest and fee obligations of each Borrower in
respect of the Loans and LC Disbursements within each such Class), and (iv) simultaneously with the
deemed exchange of interests pursuant to clause (iii) above, the interests in the Loans to be
received in such deemed exchange shall, automatically and with no further action required, be
converted into the Euro Equivalent, determined using the Exchange Rate calculated as of such date,
of such amount and on and after such date all amounts accruing and owed to the Lenders in respect
of the Designated Obligations shall accrue and be payable in Euro at the rates otherwise applicable
hereunder. Each Lender, each Person acquiring a participation from any Lender as contemplated by
Section 9.04, Goodyear and each Borrower hereby consents and agrees to the CAM Exchange. After the
CAM Exchange Date, Goodyear, each Borrower, each Issuing Bank and each Lender agrees from time to
time to execute and deliver to the Agents all such promissory notes and other instruments and
documents as the Agents shall reasonably request to evidence and confirm the respective interests
and obligations of the Lenders after giving effect to the CAM Exchange, and each Lender agrees to
surrender any promissory notes originally received by it in connection with its Loans hereunder to
the Administrative Agent against delivery of any promissory notes so executed and delivered;
provided that the failure of Goodyear, any Borrower or any Issuing Bank to execute or
deliver or of any Issuing Bank or Lender to accept any such promissory note, instrument or document
shall not affect the validity or effectiveness of the CAM Exchange. As a result of the CAM
Exchange, upon and after the CAM Exchange Date, each payment received by the Administrative Agent
pursuant to any Credit Document in respect of the Designated Obligations, and each distribution
made by the Administrative Agent pursuant to any Security Document in respect of the Designated
Obligations, shall be distributed to the Lenders pro rata in accordance with their respective CAM
Percentages. Any direct payment received by a Lender on or after the CAM Exchange Date, including
by way of set-off, in respect of a Designated Obligation shall be paid over to the Administrative
Agent for distribution to the Lenders in accordance herewith.

     SECTION 7.03. Letters of Credit. (a) In the event that on the CAM Exchange Date any
Letter of Credit shall be outstanding and undrawn in whole or in part, or any LC Disbursement shall
not have been reimbursed by the applicable Borrower or with the proceeds of a Borrowing, each ABT
Lender shall promptly pay over to the
Administrative Agent, in immediately available funds, an amount in Euro equal to such

 

 

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Lender’s
ABT Percentage of the Euro Equivalent of such Lender’s participation in the undrawn face amount of
each Letter of Credit and (to the extent it has not already done so) such Lender’s participation in
such unreimbursed LC Disbursement, as applicable, together with interest thereon from the CAM
Exchange Date to the date on which such amount shall be paid to the Administrative Agent at the
rate that would be applicable at the time to an unreimbursed LC Disbursement. The Administrative
Agent shall establish a separate account (each, a “Reserve Account”) or accounts for each
Lender for the amounts received with respect to each such Letter of Credit pursuant to the
preceding sentence. The Administrative Agent shall deposit in each Lender’s Reserve Account such
Lender’s CAM Percentage of the amounts received from the ABT Lenders as provided above. For the
purposes of this paragraph, the Euro Equivalent of each Lender’s participation in each Letter of
Credit shall be the amount in Euros determined by the Administrative Agent to be required in order
for the Administrative Agent to purchase currency in the currency in which such Letter of Credit is
denominated in an amount sufficient to enable it to deposit the actual amount of such participation
in such undrawn Letter of Credit in such currency in such Lender’s Reserve Account. The
Administrative Agent shall have sole dominion and control over each Reserve Account for the benefit
of the Issuing Banks, and the amounts deposited in each Reserve Account shall be held in such
Reserve Account until withdrawn as provided in paragraph (b), (c), (d) or (e) below. The
Administrative Agent shall maintain records enabling it to determine the amounts paid over to it
and deposited in the Reserve Accounts in respect of each Letter of Credit and the amounts on
deposit in respect of each Letter of Credit attributable to each Lender’s CAM Percentage. The
amounts held in each Lender’s Reserve Account shall be held as a reserve against the LC Exposures,
shall be the property of such Lender, shall not constitute Loans to or give rise to any claim of or
against any Credit Party and shall not give rise to any obligation on the part of any Borrower to
pay interest to such Lender, it being agreed that the reimbursement obligations in respect of
Letters of Credit shall arise only at such times as drawings are made thereunder, as provided in
Section 2.04.

          (b) In the event that after the CAM Exchange Date any drawing shall be made in respect of a
Letter of Credit, the Administrative Agent shall, at the request of the applicable Issuing Bank,
withdraw from the Reserve Account of each Lender any amounts, up to the amount of such Lender’s CAM
Percentage of such drawing or payment, deposited in respect of such Letter of Credit and remaining
on deposit and deliver such amounts to such Issuing Bank in satisfaction of the reimbursement
obligations of the Lenders under Section 2.05(d) (but not of the applicable Borrower under Section
2.05(e)). In the event that any Lender shall default on its obligation to pay over any amount to
the Administrative Agent as provided in this Section 7.03, the applicable Issuing Bank shall have a
claim against such Lender to the same extent as if such Lender had defaulted on its obligations
under Section 2.05(d), but shall have no claim against any other Lender in respect of such
defaulted amount, notwithstanding the exchange of interests in the applicable Borrower’s
reimbursement obligations pursuant to Section 7.02. Each other Lender shall have a claim against
such defaulting Lender for any damages sustained by it as a result of such default, including, in
the event that such Letter of Credit shall expire undrawn, its CAM Percentage of the defaulted
amount.

 

 

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          (c) In the event that after the CAM Exchange Date any Letter of Credit shall expire undrawn,
the Administrative Agent shall withdraw from the Reserve Account of each Lender the amount
remaining on deposit therein in respect of such Letter of Credit and distribute such amount to such
Lender.

          (d) With the prior written approval of each applicable Issuing Bank (not to be unreasonably
withheld), any Lender may withdraw the amount held in its Reserve Account in respect of the undrawn
amount of any Letter of Credit. Any Lender making such a withdrawal shall be unconditionally
obligated, in the event there shall subsequently be a drawing under such Letter of Credit, to pay
over to the Administrative Agent, in the currency in which such drawing is denominated, for the
account of the applicable Issuing Bank, on demand, its CAM Percentage of such drawing or payment.

          (e) Pending the withdrawal by any Lender of any amounts from its Reserve Account as
contemplated by the above paragraphs, the Administrative Agent will, at the direction of such
Lender and subject to such rules as the Administrative Agent may prescribe for the avoidance of
inconvenience, invest such amounts in Permitted Investments. Each Lender that has not withdrawn
its amounts in its Reserve Account as provided in paragraph (d) above shall have the right, at
intervals reasonably specified by the Administrative Agent, to withdraw the earnings on investments
so made by the Administrative Agent with amounts in its Reserve Account and to retain such earnings
for its own account.

ARTICLE VIII

The Agents

          Each of the Lenders and Issuing Banks hereby irrevocably appoints the Agents as its agents and
authorizes the Agents to take such actions on its behalf and to exercise such powers as are
delegated to the Agents by the terms hereof and of the other Credit Documents, together with such
actions and powers as are reasonably incidental thereto.

          The bank or banks serving as the Agents hereunder shall have the same rights and powers in
their capacity as Lenders or Issuing Banks as any other Lender or Issuing Bank and may exercise the
same as though they were not Agents, and such bank or banks and their Affiliates may accept
deposits from, lend money to and generally engage in any kind of business with Goodyear or any
Subsidiary or other Affiliate thereof as if they were not Agents hereunder.

          The Agents shall not have any duties or obligations except those expressly set forth herein.
Without limiting the generality of the foregoing (a) the Agents shall not (save as expressly set
out in any Credit Document) be subject to any fiduciary or other implied duties, regardless of
whether a Default has occurred and is continuing, (b) the Agents shall not have any duty to take
any discretionary action or exercise any discretionary powers, except discretionary rights and
powers expressly contemplated hereby that the Agents are required to exercise in writing by the
Majority Lenders, and

 

 

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(c) except as expressly set forth herein, the Agents shall not have any duty to disclose, and
shall not be liable for the failure to disclose, any information communicated to the Agents by or
relating to Goodyear or any Subsidiary. The Agents shall not be liable for any action taken or not
taken by them with the consent or at the request of the Majority Lenders or the Lenders, as the
case may be, or in the absence of their own gross negligence or wilful misconduct. In addition,
the Agents shall be deemed not to have knowledge of any Default unless and until written notice
thereof is given to the Agents by Goodyear, the European J.V. or a Lender or Issuing Bank, and the
Agents shall not be responsible for or have any duty to ascertain or inquire into (i) any
statement, warranty or representation made in or in connection with any Credit Document, (ii) the
contents of any certificate, report or other document delivered hereunder or thereunder or in
connection herewith or therewith, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth herein or therein, (iv) the validity,
enforceability, effectiveness or genuineness of this Agreement or any other agreement, instrument
or document, or (v) the satisfaction of any condition set forth in Article IV or elsewhere herein
or therein, other than to confirm receipt of items expressly required to be delivered to the
Agents.

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

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

          Subject to the appointment and acceptance of a successor Agent as provided below, either Agent
may resign at any time by notifying the Lenders and the European J.V. Upon any such resignation,
the Majority Lenders shall have the right to appoint a successor with the European J.V.’s written
consent (which shall not be unreasonably withheld or delayed and shall not be required from the
European J.V. if an Event of Default has occurred and is continuing). If no successor shall have
been so appointed by the Majority Lenders and shall have accepted such appointment within 30 days
after the retiring Agent gives notice of its resignation, then the retiring Agent may, on behalf of
the Lenders, with the European J.V.’s written consent (which shall not be unreasonably withheld or
delayed and shall not be required if an Event of Default has occurred and is continuing), appoint a
successor Agent which shall be a bank or an

 

 

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Affiliate thereof, in each case with a net worth of at least $1,000,000,000 and an office in
New York, New York. Upon the acceptance of its appointment as Agent hereunder by a successor, such
successor shall succeed to and become vested with all the rights, powers, privileges and duties of
the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations
hereunder. After an Agent’s resignation hereunder, the provisions of this Article and Section 9.03
shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by
it while it was acting as Agent.

          Each Lender and Issuing Bank acknowledges that it has, independently and without reliance upon
the Agents or any other Lender or Issuing Bank and based on such documents and information as it
has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.
Each Lender and Issuing Bank also acknowledges that it will, independently and without reliance
upon the Agents or any other Lender or Issuing Bank and based on such documents and information as
it shall from time to time deem appropriate, continue to make its own decisions in taking or not
taking action under or based upon this Agreement, any related agreement or any document furnished
hereunder or thereunder.

          Notwithstanding any other provision contained herein, each Lender and each Issuing Bank (a)
acknowledges that the Administrative Agent is not acting as an agent of Goodyear or any Borrower
and that neither Goodyear nor any Borrower will be responsible for acts or failures to act on the
part of the Administrative Agent and (b) exempts each Agent from the restrictions set forth in
Section 181 of the German Civil Code (Burgerliches Gesetzbuch).

          Without prejudice to the provisions of this Article VIII, each Lender and Issuing Bank hereby
irrevocably appoints and authorizes the Collateral Agent (and any successor acting as Collateral
Agent) to act as the person holding the power of attorney (in such capacity, the “fondé de
pouvoir”) of the Lenders and Issuing Banks as contemplated under Article 2692 of the Civil Code
of Quebec, and to enter into, to take and to hold on their behalf, and for their benefit, any
hypothec, and to exercise such powers and duties which are conferred upon the fondé de pouvoir
under any hypothec. Moreover, without prejudice to such appointment and authorization to act as
the person holding the power of attorney as aforesaid, each Lender and Issuing Bank hereby
irrevocably appoints and authorizes the Collateral Agent (and any successor acting as Collateral
Agent) (in such capacity, the “Custodian”) to act as agent and custodian for and on behalf
of the Lenders and the Issuing Banks to hold and to be the sole registered holder of any debenture
which may be issued under any hypothec, the whole notwithstanding Section 32 of the Act respecting
the special powers of legal persons (Quebec) or any other applicable law. In this respect, (i) the
Custodian shall keep a record indicating the names and addresses of, and the pro rata portion of
the obligations and indebtedness secured by any pledge of any such debenture and owing to each
Lender and Issuing Bank, and (ii) each Lender and Issuing Bank will be entitled to the benefits of
any charged property covered by any hypothec and will participate in the proceeds of realization of
any such charged property, the whole in accordance with the terms hereof.

 

 

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          Each of the fondé de pouvoir and the Custodian shall (a) have the sole and exclusive right and
authority to exercise, except as may be otherwise specifically restricted by the terms hereof, all
rights and remedies given to fondé de pouvoir and the Custodian (as applicable) with respect to the
charged property under any hypothec, any debenture or pledge thereof relating to any hypothec,
applicable laws or otherwise, (b) benefit from and be subject to all provisions hereof with respect
to the Collateral Agent mutatis mutandis, including, without limitation, all such provisions with
respect to the liability or responsibility to and indemnification by the Lenders or the Issuing
Banks, and (c) be entitled to delegate from time to time any of its powers or duties under any
hypothec, any debenture or pledge thereof relating to any hypothec, applicable laws or otherwise
and on such terms and conditions as it may determine from time to time. Any person who becomes a
Lender or an Issuing Bank shall be deemed to have consented to and confirmed: (y) the fondé de
pouvoir as the person holding the power of attorney as aforesaid and to have ratified, as of the
date it becomes a Lender or Issuing Bank, all actions taken by the fondé de pouvoir in such
capacity, (z) the Custodian as the agent and custodian as aforesaid and to have ratified, as of the
date it becomes a Lender or Issuing Bank, all actions taken by the Custodian in such capacity.

ARTICLE IX

Miscellaneous

          SECTION 9.01. Notices. (a) Except in the case of notices and other communications
expressly permitted to be given by telephone (and subject to paragraph (b) below), all notices and
other communications provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by telecopy or e-mail, as
follows:

     (i) if to Goodyear, to it at 1144 East Market Street, Akron, Ohio,
44316-0001, Attention of the Treasurer (Telecopy No. (330) 796-1021 or (330) 796-8836);

     (ii) if to the European J.V., to it, or if to any other Borrower to it in
care of the European J.V., in each case at Park Lane Cullinganlaan 2A, 1831 Diegem,
Belgium, Attention of Chief Financial Officer (Telecopy No. (32)-276-11873), in each case
with a copy to Goodyear as described in clause (i) above and with a copy to Goodyear
Finance Holding, avenue Gordon Smith, L-7750 Colmar-Berg, Luxembourg, Attention: European
Treasury (Telecopy No. 00352 8199 2330);

     (iii) if to the Administrative Agent, to J.P. Morgan Europe Limited, 125
London Wall, London EC2Y 5AJ, Attention of the Manager (Telecopy No. 00-44-20-7777-2360),
with a copy to JPMorgan Chase Bank, N.A., 270 Park Avenue, New York, NY 10017, Attention of
Robert Kellas (Telecopy No. (212) 270-5100);

     (iv) if to JPMCB, as Issuing Bank, to it at JPMorgan Chase Bank, N.A.,
London, Chaseside-Dorset Building, Floor 1, Bournemouth BH77DA, United

 

 

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Kingdom, Attention
of Global Trade Solutions (365/B) (Telecopy No. 44-120-2343730), with a copy to J.P. Morgan
Europe Limited, 125 London Wall, London EC2Y 5AJ, Attention of the Manager (Telecopy No.
00-44-20-7777-2360);

     (v) if to JPMCB, as Swingline Lender, to it at JPMorgan Chase Bank, N.A.,
London, 125 London Wall, London EC2Y 5AJ, Attention of European Loans (Telecopy No.
00-1-713-750-2129), with a copy to J.P. Morgan Europe Limited, 125 London Wall, London EC2Y
5AJ, Attention of the Manager (Telecopy No. 00-44-20-7777-2360);

     (vi) if to BNP, as Issuing Bank, to it at 919 Third Avenue, Third Floor,
New York, NY 10022, Attention of Trade Finance Services (Telecopy No. (212) 471-6996); and

     (vii) if to a Lender, to it at its address (or telecopy number or e-mail
address) set forth in Schedule 2.01 or its Administrative Questionnaire.

          (b) Notices and other communications to the Lenders hereunder may be delivered or furnished
by electronic communications pursuant to procedures approved by the Administrative Agent;
provided that the foregoing shall not apply to notices pursuant to Article II unless
otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent,
Goodyear, the European J.V. or any Borrower may, in its discretion, agree to accept notices and
other communications to it hereunder by electronic communications pursuant to procedures approved
by it; provided that approval of such procedures may be limited to particular notices or
communications.

          (c) Any party hereto may change its address, telecopy number or e-mail address for notices
and other communications hereunder by notice to the other parties hereto. All notices and other
communications given to any party hereto in accordance with the provisions of this Agreement shall
be deemed to have been given on the date of receipt.

          SECTION 9.02. Waivers; Amendments. (a) No failure or delay by any of the Agents,
any Issuing Bank or any Lender in exercising any right or power hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power. The rights and remedies of the Agents, the
Issuing Banks and the Lenders hereunder are cumulative and are not exclusive of any rights or
remedies that they would otherwise have. No waiver of any provision of this Agreement or consent
to any departure by Goodyear, the European J.V. or any Borrower therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) below, and then such waiver or
consent shall be effective only in the specific instance and for the purpose for which given.
Without limiting the generality of the foregoing, the making of a Loan or
the issuing of a Letter of Credit shall not be construed as a waiver of any Default,
regardless of whether any Agent, any Issuing Bank or any Lender may have had notice or knowledge of
such Default at the time.

 

 

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          (b) Neither this Agreement nor any other Credit Document nor any provision hereof or thereof
may be waived, amended or modified except, in the case of this Agreement, pursuant to an agreement
or agreements in writing entered into by Goodyear, the Borrowers and the Majority Lenders or, in
the case of any other Credit Document, pursuant to an agreement or agreements in writing entered
into by the Administrative Agent or the Collateral Agent and the Credit Party or Credit Parties
that are parties thereto, in each case with the consent of the Majority Lenders (except, in the
case of any Security Document, as provided in the next sentence or in the last paragraph of Section
9.14); provided that no such agreement shall (i) increase the Commitment of any Lender or
extend the expiration date of the Commitment of any Lender without the written consent of such
Lender, (ii) reduce or forgive all or part of the principal amount of any Loan or LC Disbursement
or reduce the rate of interest thereon, or reduce any fee payable hereunder, without the prior
written consent of each Lender affected thereby, (iii) postpone the scheduled date of payment of
the principal amount of any Loan, or the required date of reimbursement of any LC Disbursement, or
date for the payment of any interest on any Loan or any fee, or reduce the amount of, waive or
excuse any such payment, without the prior written consent of each Lender adversely affected
thereby, (iv) release all or substantially all the Credit Parties from their Guarantees under the
Guarantee and Collateral Agreement, or release all or substantially all the Collateral from the
Liens of the Security Documents, without the written consent of each Lender, (v) release any Credit
Party from its Guarantee under the Guarantee and Collateral Agreement, or release any material
Collateral from the Liens of the Security Documents, without the written consent of Lenders having
aggregate Revolving Credit Exposures, Term Loans and unused Commitments representing at least a
66-2/3% of the sum of the total Revolving Credit Exposures, Term Loans and unused Commitments at
such time, (vi) change any provision of the Guarantee and Collateral Agreement or any other
Security Document to alter the amount or allocation of any payment to be made to the Secured
Parties without the consent of each adversely affected Lender, (vii) change Section 2.15 in a
manner that would alter the pro rata sharing of any payment without the written consent of each
Lender adversely affected thereby, (viii) change any of the provisions of this Section or the
definition of “Majority Lenders” or any other provision hereof specifying the number or percentage
of Lenders required to waive, amend or modify any rights hereunder or make any determination or
grant any consent hereunder, without the written consent of each Lender or (ix) change any
provision of any Credit Document in a manner that by its terms adversely affects the rights in
respect of payments due to Lenders holding Loans of any Class differently from those holding Loans
of the other Class, without the written consent of Lenders holding a majority in interest of the
outstanding Loans and unused Commitments of the affected Class; provided further,
however, that no such agreement shall amend, modify or otherwise affect the rights or
duties of any Agent or Issuing Bank or the Swingline Lender under any Credit Document, or any
provision of any Credit Document providing for payments by or to the Administrative Agent, any
Issuing Bank or the Swingline Lender (or, in the case of any Issuing Bank, any provision of Section
2.04 affecting such Issuing Bank or
any provision relating to the purchase of participations in Letters of Credit, or, in the case
of the Swingline Lender, any provision of Section 2.05 affecting the Swingline Lender or any
provision relating to the purchase of participations in Swingline Loans), in each case

 

 

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without the
prior written consent of such Agent or Issuing Bank or the Swingline Lender, as the case may be.
Notwithstanding the foregoing, so long as the rights or interests of any Lender shall not be
adversely affected in any material respect, the Guarantee and Collateral Agreement or any other
Security Document may be amended without the consent of the Majority Lenders (A) to cure any
ambiguity, omission, defect or inconsistency, or (B) to provide for the addition of any assets or
classes of assets to the Collateral. Any amendment, modification or waiver or modification of this
Agreement that by its terms affects the rights or duties under this Agreement of the ABT Lenders
(but not the GDTG Lenders or Term Lenders), the GDTG Lenders (but not the ABT Lenders or the Term
Lenders) or the Term Lenders (but not the ABT Lenders or the GDTG Lenders) may be effected by an
agreement or agreements in writing entered into by Goodyear, the Borrowers and the requisite
percentage in interest of the affected Class of Lenders that would be required to consent thereto
under this Section if such Class of Lenders were the only Class of Lenders hereunder at the time.
Notwithstanding the foregoing, any provision of this Agreement may be amended by an agreement in
writing entered into by Goodyear, the Borrowers, the Administrative Agent (and, if their rights or
obligations are affected thereby or if their consent would be required under the preceding
provisions of this paragraph, the Issuing Banks and the Swingline Lender) and the Lenders that will
remain parties hereto after giving effect to such amendment if (1) by the terms of such agreement
the Commitments of each Lender not consenting to the amendment provided for therein shall terminate
upon the effectiveness of such amendment and (2) in connection with the effectiveness of such
amendment, each Lender not consenting thereto shall receive payment in full of the principal of and
interest accrued on each Loan made by it and all other amounts owing to it or accrued for its
account under this Agreement (it being understood that such non-consenting Lenders shall cease to
be Lenders upon the termination of any such Commitments and the making of such payment in full).

          (c) Notwithstanding anything in paragraph (b) of this Section to the contrary, this Agreement
and the other Credit Documents may be amended on one occasion to establish one or more new Classes
of Term Loans and/or Revolving Commitments by converting the currency in which existing Term Loans
or existing Revolving Commitments are denominated from Euros to like amounts of US Dollars (based
on exchange rates prevailing at or about the date of such conversion, as determined based on a
reference page to be agreed upon), by an agreement in writing entered into by each applicable
Borrower, the Administrative Agent, the Collateral Agent and each Lender that shall agree to such
conversion of all or part of its Revolving Commitment or Term Loans and treating such converted
Term Loans and/or Revolving Commitments, as applicable, as one or more new Classes. Any such
agreement shall amend the provisions of this Agreement and the other Credit Documents to set forth
the terms of each Class of Term Loans or Revolving Commitments established thereby and to effect
such other changes (including changes to the provisions of this Section, Section 2.18 and the
definition of “Majority Lenders”) as the Borrowers and the Administrative Agent shall deem
necessary or advisable in connection with the establishment of any
such Class; provided that no such agreement shall (i) effect any change described in
any of clauses (i), (ii), (iv), (v), (vi) or (viii) of paragraph (b) of this Section without the
onsent of each Person required to consent to such change under such clause (it being

 

 

 
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agreed,
however, that any conversion of the currency in which Revolving Commitments or Term Loans are
denominated or the establishment of any new Class of Revolving Commitments or Term Loans in
connection therewith and the amendments in connection therewith that are referred to in this
paragraph will not, of themselves, be deemed to effect any of the changes described in clauses (i)
through (vii) of such paragraph (b)), (ii) amend Article V, VI or VII to establish any affirmative
or negative covenant, Event of Default or remedy that by its terms benefits one or more Classes,
but not all Classes, of Loans or Borrowings without the prior written consent of Lenders holding a
majority in interest of the Loans and Commitments of each Class not so benefited or (iii) change
any other provision of this Agreement or any other Credit Document that creates rights in favor of
Lenders holding Loans or Commitments of any existing Class, other than as necessary or advisable in
the judgment of the Administrative Agent to cause such provision to take into account, or to make
the benefits of such provision available to, Lenders holding Term Loans of such new Class or such
new Class of Revolving Commitments. The Loans, Commitments and Borrowings of any Class established
pursuant to this paragraph shall constitute Loans, Commitments and Borrowings under, and shall be
entitled to all the benefits afforded by, this Agreement and the other Credit Documents, and shall,
without limiting the foregoing, benefit equally and ratably from the Guarantees and security
interests created by the Guarantee and Collateral Agreement and the Security Documents supporting
the respective Classes of Loans of the applicable Borrower or Borrowers, as the case may be, and
the European J.V. and the Borrowers shall cause the Grantors to take all such actions as shall be
required to ensure that they do so benefit. At any time the Borrowers wish to establish a new
Class of Term Loans or Revolving Commitments pursuant to this paragraph, the Borrowers shall offer
each Lender the opportunity to convert its Term Loans or Revolving Commitments, as applicable. If
a greater amount is tendered for conversion than the Borrowers wish to convert, the Term Loans or
Revolving Commitments, as applicable, of each tendering Lender shall be accepted for conversion on
a pro rata basis based on the percentage of all the Term Loans or Revolving Commitments, as
applicable, tendered by all Lenders represented by the amount tendered by such Lender.

          SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The European J.V. shall pay
(i) all reasonable out-of-pocket expenses incurred by the Agents, the Arrangers and their
Affiliates (including the reasonable fees, charges and disbursements of Cravath, Swaine & Moore
LLP, counsel for the Agents and the Arrangers, and Allen & Overy and other local and foreign
counsel for the Agents and the Arrangers, limited to one per jurisdiction, in connection with the
Security Documents and the creation and perfection of the Liens created thereby and other local and
foreign law matters) in connection with the arrangement and syndication of the credit facilities
provided for herein, the preparation, execution, delivery and administration of this Agreement and
the other Credit Documents or any amendments, modifications or waivers of the provisions hereof or
thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii)
all reasonable out-of-pocket expenses incurred by each Issuing Bank in connection with the
issuance, amendment, renewal or extension of
any Letter of Credit or any demand for payment thereunder and (iii) all reasonable
out-of-pocket expenses incurred by the Agents, any Issuing Bank or any Lender, including the fees,
charges and disbursements of any counsel for the Agents, any Issuing Bank or any

 

 

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Lender, in
connection with the enforcement or protection of its rights in connection with this Agreement,
including its rights under this Section, or in connection with the Loans made or Letters of Credit
issued hereunder, including all such out-of-pocket expenses incurred during any workout,
restructuring or similar negotiations in respect of such Loans or Letter of Credit. The European
J.V. shall pay all out-of-pocket expenses incurred by the Collateral Agent in connection with the
creation and perfection of the security interests contemplated by this Agreement, including all
filing, recording and similar fees and, as more specifically set forth above, the reasonable fees
and disbursements of counsel (including local counsel in each relevant jurisdiction).

          (b) The European J.V. shall indemnify the Administrative Agent, the Arrangers, each Issuing
Bank and each Lender, and each Related Party of any of the foregoing Persons (each such Person
being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all
losses, claims, damages, liabilities and related expenses (including the reasonable fees, charges
and disbursements of any counsel for any Indemnitee), incurred by or asserted against any
Indemnitee and arising out of (i) the execution or delivery of this Agreement or any other Credit
Document or other agreement or instrument contemplated hereby, the syndication and arrangement of
the credit facilities provided for herein, the performance by the parties hereto of their
respective obligations or the exercise by the parties hereto of their rights hereunder or
thereunder or the consummation of the Transactions or any other transactions contemplated hereby or
thereby, (ii) any Loan or Letter of Credit or the use of the proceeds thereof (including any
refusal by any Issuing Bank to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms of such Letter of
Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any
property currently or formerly owned or operated by the European J.V. or any of its Subsidiaries,
or any Environmental Liability related in any way to the European J.V. or any of its Subsidiaries,
or (iv) any claim, litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a
party thereto; provided that such indemnity shall not, as to any Indemnitee, be available
to the extent that such losses, claims, damages, liabilities or related expenses shall have
resulted from the gross negligence or wilful misconduct of such Indemnitee or the breach by such
Indemnitee of obligations set forth herein or in any other Credit Document.

          (c) To the extent that the European J.V. fails to pay any amount required to be paid by it to
any Agent, any Arranger, any Issuing Bank or the Swingline Lender under paragraph (a) or (b) of
this Section, each Lender severally agrees to pay to such Agent, Arranger, Issuing Bank or
Swingline Lender, as the case may be, such Lender’s percentage (determined as of the time that the
applicable unreimbursed expense or indemnity payment is sought based on the outstanding Loans and
LC Exposures and unused Commitments of such Lender and the other Lenders (or, if the Commitments of
any Class shall have terminated or the Term Loans of any Class shall have been repaid in
full and there shall be no outstanding Loans or LC Exposures of such Class, based on the Loans
and LC Exposures and unused Commitments of such Class most recently in effect)) of such unpaid
amount; provided that the unreimbursed expense or indemnified

 

 

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loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted against such Agent,
Arranger, Issuing Bank or Swingline Lender, as the case may be in its capacity as such.

          SECTION 9.04. Successors and Assigns. (a) The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto, the Indemnitees and their respective
successors and assigns permitted hereby (including any Affiliate of an Issuing Bank that issues any
Letter of Credit), except that (i) no Borrower may assign or otherwise transfer any of its rights
or obligations hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by any Borrower without such consent shall be null and void) and (ii) no
Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance
with this Section. Nothing in this Agreement, expressed or implied, shall be construed to confer
upon any Person (other than the parties hereto, Indemnitees, their respective successors and
assigns permitted hereby (including any Affiliate of any Issuing Bank that issues any Letter of
Credit), Participants (to the extent provided in paragraph (c) of this Section) and, to the extent
expressly contemplated hereby, the Related Parties of each of the Agents, the Arrangers, the
Issuing Banks and the Lenders) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

          (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may
assign to one or more assignees (including any CLO or other Approved Fund) all or a portion of its
rights and obligations under this Agreement (including all or a portion of its Commitments and the
Loans at the time owing to it); with the prior written consent (such consent not to be unreasonably
withheld or delayed) of:

     (A) the European J.V.; provided that no consent of the European
J.V. shall be required for an assignment to a Lender, an Affiliate of a Lender, a Federal
Reserve Bank or, if an Event of Default has occurred and is continuing, any other assignee;
provided further that the consent of the European J.V. shall be required
for an assignment by any Revolving Lender to any Person (other than a Revolving Lender or a
Federal Reserve Bank);

     (B) the Administrative Agent; provided that no consent of the
Administrative Agent shall be required for an assignment to an assignee that is a Lender,
an Affiliate of a Lender, a Federal Reserve Bank or an Approved Fund; provided
further that the consent of the Administrative Agent shall be required for an
assignment by any Revolving Lender to any Person (other than a Revolving Lender or a
Federal Reserve Bank); and

     (C) in the case of any assignment of an ABT Commitment or any interests in
a Letter of Credit or LC Disbursement, the Swingline Lender and each Issuing Bank;
provided that no consent of the Swingline Lender or any Issuing Bank shall be
required for an assignment to an assignee that is a Federal Reserve Bank.

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

 

 

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     (A) except in the case of an assignment to a Lender or an Affiliate of a
Lender, the amount of the Commitment or Term Loans of the assigning Lender subject to each
such assignment (determined as of the date the Assignment and Assumption with respect to
such assignment is delivered to the Administrative Agent) shall not be less than €1,000,000
or, if smaller, the entire remaining amount of the assigning Lender’s Commitment or Term
Loans in the applicable Class unless each of the European J.V. and the Administrative Agent
shall otherwise consent, provided (i) that no such consent of the European J.V.
shall be required if an Event of Default has occurred and is continuing and (ii) in the
event of concurrent assignments to two or more assignees that are Affiliates of one
another, or to two or more Approved Funds managed by the same investment advisor or by
affiliated investment advisors, all such concurrent assignments shall be aggregated in
determining compliance with this subsection;

     (B) each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender’s rights and obligations under this
Agreement; provided that this clause shall not be construed to prohibit the
assignment of a proportionate part of all the assigning Lender’s rights and obligations in
respect of one Class of Commitments or Loans;

     (C) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with a processing and
recordation fee of €2,000; provided that in the event of concurrent assignments to
two or more assignees that are Affiliates of one another, or to two or more Approved Funds
managed by the same investment advisor or by affiliated investment advisors, only one such
fee shall be payable; and

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

          (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of
this Section, from and after the effective date specified in each Assignment and Assumption the
assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such
Assignment and Assumption, have the rights and obligations of a Lender under this Agreement
(including those specified under Section 9.15), and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Assumption, be released from its obligations
under this Agreement (and, in the case of an Assignment and Assumption covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of Sections 2.15, 2.16, 2.17 and
9.03). Any assignment or transfer by a Lender of rights or obligations under this Agreement that
does not comply with this Section 9.04 shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance with paragraph (c) of
this Section. Each assignment hereunder shall be deemed to be an
assignment of the related rights under the Guarantee and Collateral Agreement and each other
applicable Security Document.

 

 

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          (iv) The Administrative Agent shall maintain at one of its offices a copy of each
Assignment and Assumption delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitment of, and principal amount of the Loans and LC
Disbursements owing to, each Lender pursuant to the terms hereof from time to time (the
“Register”). The entries in the Register shall be conclusive, and the Borrowers, the
Administrative Agent, the Issuing Banks and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of
this Agreement, notwithstanding notice to the contrary. The Register shall be available for
inspection by any Borrower, any Issuing Bank and any Lender, at any reasonable time and from time
to time upon reasonable prior notice.

          (v) Upon its receipt of a duly completed Assignment and Assumption executed by an
assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the
assignee shall already be a Lender hereunder), the processing and recordation fee referred to in
paragraph (b) of this Section and any written consent to such assignment required by paragraph (b)
of this Section, the Administrative Agent shall accept such Assignment and Assumption and record
the information contained therein in the Register. No assignment shall be effective for purposes
of this Agreement unless it has been recorded in the Register as provided in this paragraph.

          (vi) By executing and delivering an Assignment and Assumption, the assigning Lender
thereunder and the assignee thereunder shall be deemed to confirm to and agree with each other and
the other parties hereto as follows: (i) such assigning Lender warrants that it is the legal and
beneficial owner of the interest being assigned thereby free and clear of any adverse claim and
that its Commitment and the outstanding balances of its Loans, in each case without giving effect
to assignments thereof that have not become effective, are as set forth in such Assignment and
Assumption; (ii) except as set forth in clause (i) above, such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to any statements, warranties
or representations made in or in connection with this Agreement or any other Credit Document or any
other instrument or document furnished pursuant hereto or thereto, or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of any of the foregoing, or the
financial condition of the Credit Parties or the performance or observance by the Credit Parties of
any of their obligations under this Agreement or under any other Credit Document or any other
instrument or document furnished pursuant hereto or thereto; (iii) each of the assignee and the
assignor represents and warrants that it is legally authorized to enter into such Assignment and
Assumption; (iv) such assignee confirms that it has received a copy of this Agreement, together
with copies of any amendments or consents entered into prior to the date of such Assignment and
Assumption and copies of the most recent financial statements delivered pursuant to Section 5.01
and such other documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into such Assignment and Assumption;
such assignee will independently and without reliance upon the Agents, such assigning
Lender or any other Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking action under this
Agreement; (vi) such assignee appoints and authorizes the

 

 

 106

Agents to take such action as agents on
its behalf and to exercise such powers under this Agreement and the other Credit Documents as are
delegated to them by the terms hereof and thereof, together with such powers as are reasonably
incidental thereto; and (vii) such assignee agrees that it will perform in accordance with their
terms all the obligations that by the terms of this Agreement are required to be performed by it as
a Lender.

          (vii) Upon any assignment pursuant to this Section 9.04(b), the European J.V. (or
the Administrative Agent, at the expense of the European J.V.) shall promptly notify each
Subsidiary Guarantor organized under the laws of the Republic of France of such assignment by
bailiff (hussier) in accordance with Article 1690 of the French Civil Code. If such assignment is
made without the European J.V.’s consent, the Administrative Agent shall provide prompt written
notice of such assignment to the European J.V.

          (viii) For the purposes of Article 1278 et seq. of the French Civil Code, each
party hereto agrees that upon any novation under this Section 9.04(b), the security interests
created and Guarantees made pursuant to the Security Documents shall be preserved for the benefit
of the assignee and the other Secured Parties.

          (ix) For the purposes of Italian law only, any assignment made under an Assignment
and Assumption shall be deemed to constitute a cessione del contratto. Furthermore, the
European J.V. hereby expressly consents to any assignment pursuant to this Section 9.04(b) by any
Revolving Lender to any other Revolving Lender.

          (c) (i) Any Lender may, without the consent of Goodyear, the European J.V., any other
Borrower, the Administrative Agent, any Issuing Bank or the Swingline Lender, sell participations
to one or more banks or other entities (each a “Participant”) in all or a portion of such
Lender’s rights and/or obligations under this Agreement (including all or a portion of its
Commitment and the Loans owing to it); provided that (A) such Lender’s obligations under
this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations and (C) the Borrowers, the Administrative
Agent, each Issuing Bank, the Swingline Lender and the other Lenders shall continue to deal solely
and directly with such Lender in connection with such Lender’s rights and obligations under this
Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver that affects such Participant and that,
under Section 9.02, would require the consent of each affected Lender. Subject to paragraph
(c)(ii) of this Section, each Borrower agrees that each Participant shall be entitled to the
benefits of Sections 2.15, 2.16 and 2.17 to the same extent as if it were a Lender and had acquired
its interest
by assignment pursuant to paragraph (b) of this Section. To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 9.08 as though it were a Lender,
provided such Participant agrees to be subject to Section 2.18(d) as though it were a
Lender.

 

 

 107

          (ii) A Participant shall not be entitled to receive any greater payment under
Section 2.15 or 2.17 than the applicable Lender would have been entitled to receive with respect to
the participation sold to such Participant, unless the sale of the participation to such
Participant is made with the European J.V.’s prior written consent, which consent shall
specifically refer to this exception.

          (d) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including any pledge or
assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any
such pledge or assignment of a security interest; provided that no such pledge or
assignment of a security interest shall release a Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

          SECTION 9.05. Survival. All covenants, agreements, representations and warranties
made by Goodyear, the European J.V. and each other Borrower herein and in the certificates or other
instruments delivered in connection with or pursuant to this Agreement shall be considered to have
been relied upon by the other parties hereto and shall survive the execution and delivery of this
Agreement, the making of any Loans and the issuance of any Letter of Credit, regardless of any
investigation made by any such other party or on its behalf and notwithstanding that any Agent, any
Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect
representation or warranty at the time any credit is extended hereunder, and shall continue in full
force and effect as long as the principal of or any accrued interest on any Loan or any fee or any
other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is
outstanding and so long as the Commitments have not expired or terminated. The provisions of
Sections 2.15, 2.16, 2.17 and 9.03 and Article IX shall survive and remain in full force and effect
regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans,
the expiration or termination of the Letters of Credit or the Commitments or the termination of
this Agreement or any provision hereof.

          SECTION 9.06. Counterparts; Integration; Effectiveness. This Agreement, the other
Credit Documents, the Issuing Bank Agreements and any separate letter agreements with respect to
fees payable to the Administrative Agent or the Arrangers constitute the entire contract among the
parties relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Except as provided in
Section 4.01, the amendment and restatement of this Agreement contemplated by the Amendment and
Restatement Agreement shall become effective as provided in the Amendment and Restatement
Agreement, and thereafter shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns. The Amendment and
Restatement Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of which when taken
together shall constitute a single contract. Each financial institution that shall be party to an
Issuing Bank Agreement executed by the European J.V. and the Administrative Agent shall be a party
to and an Issuing Bank under this Agreement, and

 

 

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shall have all the rights and duties of an Issuing
Bank hereunder and under its Issuing Bank Agreement. Each Lender hereby authorizes the
Administrative Agent to enter into Issuing Bank Agreements.

          SECTION 9.07. Severability. Any provision of this Agreement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such invalidity, illegality or unenforceability without affecting the validity, legality
and enforceability of the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. No
failure to obtain any approval required for the effectiveness of any provision of this Agreement
shall affect the validity or enforceability of any other provision of this Agreement.

          SECTION 9.08. Right of Setoff. If an Event of Default shall have occurred and be
continuing and the Loans shall have become due and payable pursuant to Article VII, each Lender,
each Issuing Bank and each Affiliate of any of the foregoing is hereby authorized at any time and
from time to time, to the fullest extent permitted by law, to set off and apply any and all
deposits (general or special, time or demand, provisional or final) at any time held and other
obligations at any time owing by such Lender, Issuing Bank or Affiliate to or for the credit or the
account of any Borrower against any of and all the obligations of such Borrower now or hereafter
existing under this Agreement held by such Lender or such Issuing Bank, irrespective of whether or
not such Lender or such Issuing Bank shall have made any demand under this Agreement and although
such obligations may be unmatured. The rights of each of the Lenders and the Issuing Banks under
this Section are in addition to other rights and remedies (including other rights of setoff) which
such Person may have.

          SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process. (a) This
Agreement shall be construed in accordance with and governed by the law of the State of New York.

          (b) Goodyear, the European J.V. and each other Borrower hereby irrevocably and
unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the
Supreme Court of the State of New York sitting in New York County and of the United States District
Court of the Southern District of New York, and any appellate court from any thereof, in any action
or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of
any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined in such New York
State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees
that a final judgment in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided
by law. Nothing in this Agreement shall affect any right that any party hereto may otherwise
have to bring any action or proceeding relating to this Agreement in the courts of any
jurisdiction.

 

 

 109

          (c) Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection which it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this Agreement in any
court referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

          (d) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.01. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

          SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

          SECTION 9.11. Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this Agreement.

          SECTION 9.12. Confidentiality. Each of the Agents, the Issuing Banks and the Lenders
agrees to maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and
agents, including accountants, legal counsel and other advisors who have been informed of the
confidential nature of such Information and instructed to keep such Information confidential, (b)
to the extent requested by any regulatory authority (including the NAIC), (c) to the extent
required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any
other party to this Agreement, (e) to the extent necessary or advisable in connection with the
exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or
the enforcement of rights hereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or Participant in, or
any prospective assignee of or Participant in, any of its rights or obligations under this
Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to Goodyear or any Borrower and its obligations, (g) with

 

 

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the
written consent of Goodyear or (h) to the extent such Information (i) becomes publicly available
other than as a result of a breach of this Section or (ii) becomes available to any Agent, any
Issuing Bank or any Lender on a nonconfidential basis from a source other than Goodyear. For the
purposes of this Section, “Information” means all information received from Goodyear or
Persons acting on its behalf relating to Goodyear or its business, other than any such information
that is available to any Agent, any Issuing Bank or any Lender prior to disclosure by Goodyear on a
nonconfidential basis from a source other than Goodyear that is not known by the recipient to be
bound by a confidentiality agreement or other obligation of confidentiality with respect to such
information.

          SECTION 9.13. Interest Rate Limitation. Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges
and other amounts which are treated as interest on such Loan under applicable law (collectively,
the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may
be contracted for, charged, taken, received or reserved by the Lender holding such Loan in
accordance with applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to
the extent lawful, the interest and Charges that would have been payable in respect of such Loan
but were not payable as a result of the operation of this Section shall be cumulated and the
interest and Charges payable to such Lender in respect of other Loans or periods shall be increased
(but not above the Maximum Rate therefor) until such cumulated amount, together with interest
thereon at the Alternate Base Rate to the date of repayment, shall have been received by such
Lender.

          SECTION 9.14. Security Documents. (a) Each Secured Party hereby authorizes and
directs the Collateral Agent to execute and deliver the Guarantee and Collateral Agreement and each
other Security Document. Each Lender, by executing and delivering this Agreement, acknowledges
receipt of a copy of the Guarantee and Collateral Agreement and approves and agrees to be bound by
and to act in accordance with the terms and conditions of the Guarantee and Collateral Agreement
and each other Security Document, specifically including, without limitation, (i) the provisions of
Section 5.03 of the Guarantee and Collateral Agreement (governing the distribution of proceeds
realized from the exercise of remedies under the Security Documents), (ii) the provisions of
Article VI of the Guarantee and Collateral Agreement (governing the manner in which the amounts of
the Obligations (as defined in the Guarantee and Collateral Agreement) are to be determined at any
time), (iii) the provisions of Articles VIII and IX of the Guarantee and Collateral Agreement
(relating to the duties and responsibilities of the Collateral Agent and providing for the
indemnification and the reimbursement of expenses of the Collateral Agent by the Lenders), and (iv)
the provisions of Section 11.13 of the Guarantee and Collateral Agreement (providing for releases
of Guarantees of and Collateral securing the Obligations). Each party hereto
further agrees that the parties to the other Security Documents shall perform their
obligations thereunder in accordance with the foregoing provisions of the Guarantee and Collateral
Agreement.

 

 

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          (b) In addition, each Lender and Issuing Bank hereby consents to, and directs the
Administrative Agent and the Collateral Agent on its behalf to enter into, any amendment of the
Credit Documents that provides for the Collateral to secure, with a priority not greater than that
of the Liens securing the Obligations, Swap Agreements entered into with any Lender or with any
lender under any Credit Facilities Agreement and any refinancings thereof and for Guarantees by the
Guarantors of such Swap Agreements, provided that the applicable approvals for such
amendments have been obtained under each applicable Credit Facilities Agreement (other than this
Agreement) and the documentation governing any such refinancing.

          SECTION 9.15. Collateral Agent as Joint and Several Creditor. (a) Each Secured
Party and each Credit Party agrees that the Collateral Agent shall be the joint and several
creditor (together with the relevant other Secured Parties) of each and every payment obligation of
each Credit Party towards each of the Secured Parties under the Credit Documents or, to the extent
included in the Obligations, under any Swap Agreement or arising out of or in connection with cash
management or other similar services provided by any Secured Party and that accordingly the
Collateral Agent will have its own independent rights to demand from each Credit Party in
satisfaction of those obligations and shall hold any security interest created pursuant to any
Security Document to secure those obligations in its own name, and not solely as agent or mandatory
(lasthebber) for the Secured Parties, with full and unrestricted entitlement to and authority in
respect of such security interest; provided that it is expressly acknowledged that any
discharge of any payment obligation to either of the Collateral Agent or the relevant Secured
Parties shall to the same extent discharge the corresponding obligation owing to the other.

          (b) Without limiting or affecting the Collateral Agent’s rights against each Credit Party
(whether under this Section 9.15 or on any other provisions of the Credit Documents), the
Collateral Agent agrees with each Secured Party that it will not exercise its right as joint and
several creditor with such Secured Party except with the prior written consent of such Secured
Party; provided, however, that for the avoidance of doubt, nothing in this sentence
in any way limits the Collateral Agent’s rights to act in the protection or preservation of rights
under or to enforce any Security Document as contemplated by this Agreement and the relevant
Security Documents. Any amounts recovered by the Collateral Agent as a result of the operation of
this Section 9.15 shall be held for the benefit of the applicable Secured Party or Secured Parties
to be applied in accordance with the provisions hereof and of the Security Documents.

          SECTION 9.16. Conversion of Currencies. (a) If, for the purpose of obtaining
judgment in any court, it is necessary to convert a sum owing hereunder in one currency into
another currency, each party hereto agrees, to the fullest extent that it may effectively do so,
that the rate of exchange used shall be that at which in accordance with normal banking procedures
in the relevant jurisdiction the first currency could be
purchased with such other currency on the Business Day immediately preceding the day on which
final judgment is given.

 

 

 112

          (b) The obligations of Goodyear or any Borrower in respect of any sum due to any party hereto
or any holder of the obligations owing hereunder (the “Applicable Creditor”) shall,
notwithstanding any judgment in a currency (the “Judgment Currency”) other than the
currency in which such sum is stated to be due hereunder (the “Agreement Currency”), be
discharged only to the extent that, on the Business Day following receipt by the Applicable
Creditor of any sum adjudged to be so due in the Judgment Currency, the Applicable Creditor may in
accordance with normal banking procedures in the relevant jurisdiction purchase the Agreement
Currency with the Judgment Currency; if the amount of the Agreement Currency so purchased is less
than the sum originally due to the Applicable Creditor in the Agreement Currency, each of Goodyear
and each Borrower agrees, as a separate obligation and notwithstanding any such judgment, to
indemnify the Applicable Creditor against such loss. The obligations of Goodyear and the Borrowers
contained in this Section 9.15 shall survive the termination of this Agreement and the payment of
all other amounts owing hereunder.

          SECTION 9.17. Dutch Banking Act. (a) On the date of this Agreement (i) if the
European J.V. is a credit institution (kredietinstelling) under the Dutch Banking Act, it
is in compliance with the applicable provisions of the Dutch Banking Act and any implementing
regulations including, but not limited to, the Dutch Exemption Regulation; and (ii) each Person
which is a Lender under this Agreement is either (A) a Professional Market Party under the Dutch
Exemption Regulation or (B) exempted from the requirement to be a Professional Market Party because
it forms part of a closed circle (besloten kring) with the European J.V.

          (b) At the time of each assignment under Section 9.04, if at the time thereof it is a
requirement of Dutch law, the assignee shall be a Professional Market Party. If on the date of an
assignment, it is a requirement of Dutch law that a assignee must be a Professional Market Party,
the European J.V. must make the representation that it has verified the status of each person which
is a Lender under this Agreement either as (i) a Professional Market Party under the Dutch
Exemption Regulation; or (ii) exempted from the requirement to be a Professional Market Party
because it forms part of a closed circle (besloten kring) with the European J.V. On the
date that an assignee becomes party to this Agreement as a Lender that Lender hereby represents and
warrants that on that date it is either (A) a Professional Market Party under the Dutch Exemption
Regulation; or (B) exempted from the requirement to be a Professional Market Party because it forms
part of a closed circle (besloten kring) with the European J.V., as evidenced by a
verification letter delivered to the European J.V. in substantially the form attached hereto as
Exhibit J

          (c) For purposes of this Section 9.17:

     (i) “Professional Market Party” means a professional market party
(professionele marktpartij) under the Dutch Exemption Regulation which includes
only (a) banks, insurance companies, securities firms, investment institutions and
pension funds that are (i) supervised or licensed under Dutch law or (ii) established
and acting under supervision in a European Union member state (other than the Netherlands),
Hungary, Monaco, Poland, Puerto Rico, Saudi

 

 

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Arabia, Slovakia, Czech Republic, Turkey, South
Korea, the United States of America, Japan, Australia, Canada, Mexico, New Zealand or
Switzerland; (b) investment institutions which offer their participation rights exclusively
to professional market parties and are not required to be supervised or licensed under
Dutch law; (c) the State of the Netherlands, the Dutch Central Bank, a foreign central
government body, a foreign central bank, Dutch regional and local governments and
comparable foreign de-centralised government bodies, international treaty organisations and
supranational organisations; (d) enterprises or entities with total assets of at least
€500,000,000 (or the equivalent thereof in another currency) as per the balance sheet as of
the year end preceding the obtaining of the repayable funds; (e) enterprises, entities or
individuals with net assets (eigen vermogen) of at least €10,000,000 (or the
equivalent thereof in another currency) as of the year end preceding the obtaining of the
repayable funds who or which have been active in the financial markets on average twice a
month over a period of at least two consecutive years preceding the obtaining of the
repayable funds; (f) subsidiaries of the entities referred to under (a) above
provided such subsidiaries are subject to supervision; and (g) an enterprise or
institution that has a rating from a rating agency that in the opinion of the Dutch Central
Bank is an expert or that issues securities that have a rating from a rating agency that in
the opinion of the Dutch Central Bank is an expert.

     (ii) “Dutch Banking Act” means the Dutch Act on the Supervision of
the Credit System 1992 (Wet Toezicht Kredietwezen 1992), as amended from time to
time.

     (iii) “Dutch Exemption Regulation” means the Exemption Regulation
of the Minister of Finance of June 26, 2002 (Vrijstellingsregeling WtK 1992), as
amended from time to time.

          SECTION 9.18. Power of Attorney. Each Lender, the Administrative Agent and each
Issuing Bank hereby (and each Affiliate of a Lender by entering into an Affiliate Authorization
thereby) (i) authorizes the Collateral Agent as its agent and attorney to execute and deliver, on
behalf of and in the name of such Lender, the Administrative Agent or Issuing Bank (or Affiliate),
all and any Credit Documents (including without limitation Security Documents) and related
documentation, (ii) authorizes the Collateral Agent to appoint any further agents or attorneys to
execute and deliver, or otherwise to act, on behalf of and in the name of the Collateral Agent for
any such purpose, (iii) authorizes the Collateral Agent to do any and all acts and to make and
receive all declarations which are deemed necessary or appropriate to the Collateral Agent. The
Lenders and the Issuing Banks hereby (and each Affiliate of a Lender by entering into an Affiliate
Authorization thereby) relieve the Collateral Agent from the self-dealing restrictions imposed by
Section 181 of the German Civil Code and the Collateral Agent may also relieve agents and attorneys
appointed pursuant to the powers granted under this Section 9.18 from the restrictions imposed by
Section 181 of the
German Civil Code. For the purposes of Italian law, each Lender and each Issuing Bank (and
each Affiliate of a Lender by entering into an Affiliate Authorization thereby) expressly
authorizes the Collateral Agent (and any agents and attorneys appointed under

 

 

114

this Section 9.18) to act under a conflict of interest and self-dealing (including, but not
limited to, a situation in which the Collateral Agent acts simultaneously in the name and/or on
behalf (a) of any Secured Party, on the one hand, and (b) of any Credit Party, on the other hand)
solely in relation to this Agreement, the Guarantee and Collateral Agreement and the other Security
Documents. Any attorney appointed by the Collateral Agent pursuant to this Section 9.18 may grant
sub-power to a sub-attorney in the same scope.

          SECTION 9.19. USA Patriot Act Notice. Each Lender and the Administrative Agent (for
itself and not on behalf of any Lender) hereby notifies each Borrower that pursuant to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”), it is required to obtain, verify and record information that identifies
each Borrower, which information includes the name and address of such Borrower and other
information that will allow such Lender or the Administrative Agent, as applicable, to identify
such Borrower in accordance with the Act.

 

 

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

	 	 	 	 	 	 	 	 	 
	 	 	THE GOODYEAR TIRE & RUBBER COMPANY  
	 
	 	 	 	 	 	 	 	 
	

	 	by	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	Title:	 	 

	 	 	 	 	 	 	 	 	 
	 	 	GOODYEAR DUNLOP TIRES EUROPE B.V.,
	 
	 	 	 	 	 	 	 	 
	

	 	by	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	by	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	Title:	 	 

	 	 	 	 	 	 	 	 	 
	 	 	GOODYEAR DUNLOP TIRES GERMANY GMBH
	 
	 	 	 	 	 	 	 	 
	

	 	by	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	by	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	Title:	 	 

 

 

116

	 	 	 	 	 	 	 	 	 
	 	 	GOODYEAR GMBH & CO. KG,
	 
	 	 	 	 	 	 	 	 
	

	 	by	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	by	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	DUNLOP GMBH & CO. KG,
	 
	 	 	 	 	 	 	 	 
	

	 	by	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	by	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	Title:	 	 

	 	 	 	 	 	 	 	 	 
	 	 	GOODYEAR LUXEMBOURG TIRES S.A.,
	 
	 	 	 	 	 	 	 	 
	

	 	by	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	executed in the form of a
notarial deed	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	J.P. MORGAN EUROPE LIMITED, as
Administrative Agent,	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	by	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	Title:	 	 

 

 

117

	 	 	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK,
N.A., individually
and as
collateral agent, Issuing
Bank and
 Swingline
Lender,
	 
	 	 	 	 	 	 	 	 
	

	 	by	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name:	 	 
	

	 	 	 	 	 	Title:	 	 

 

 

     AMENDMENT AND RESTATEMENT AGREEMENT dated as of April 8, 2005 (this
“Amendment Agreement”), in respect of (a) the TERM LOAN AND
REVOLVING CREDIT AGREEMENT (the “Credit Agreement”) dated as of
March 31, 2003, as amended by the First Amendment dated as of February 19,
2004, the Second Amendment dated as of April 16, 2004, the Third Amendment
dated as of April 16, 2004, and the Fourth Amendment dated as of May 27,
2004, among THE GOODYEAR TIRE & RUBBER COMPANY, GOODYEAR DUNLOP TIRES
EUROPE B.V., GOODYEAR DUNLOP TIRES GERMANY GMBH, GOODYEAR GMBH & CO KG,
DUNLOP GMBH & CO KG, GOODYEAR LUXEMBOURG TIRES S.A., the Lenders parties
thereto and JPMORGAN CHASE BANK, N.A., as administrative agent and
collateral agent and (b) the MASTER GUARANTEE AND COLLATERAL AGREEMENT
(the “Master Guarantee and Collateral Agreement”) dated as of
March 31, 2003, as Amended and Restated as of February 20, 2004, among THE
GOODYEAR TIRE & RUBBER COMPANY, the Subsidiaries of THE GOODYEAR TIRE &
RUBBER COMPANY, identified therein and JPMORGAN CHASE BANK, N.A. as
collateral agent.

          Goodyear and the Borrowers have requested that each of the Credit Agreement and the Master
Guarantee and Collateral Agreement be amended and restated as set forth in Section 4 below and the
parties hereto are willing so to amend the Credit Agreement and the Master Guarantee and Collateral
Agreement.

          In consideration of the premises and the agreements, provisions and covenants herein
contained, the parties hereto hereby agree, on the terms and subject to the conditions set forth
herein, as follows:

SECTION 1. Defined Terms. (a) As used in this Amendment Agreement, the following terms have
the meanings specified below:

          “Assigned Interest” shall have the meaning assigned to such term in Section 4(a)(ii).

          “Daylight Commitment” shall mean, (i) for each Daylight GDTG Lender party hereto on
the Effective Date, the obligation of such Lender to make loans (“Daylight GDTG Loans”) on
the Effective Date in an amount equal to the amount set forth opposite the name of such Daylight
GDTG Lender on Schedule 1(a) to this Amendment Agreement under the caption “Daylight GDTG Loans”
and (ii) for each Daylight Term Loan Lender party hereto on the Effective Date, the obligation of
such Daylight Term Loan Lender to make loans (“Daylight Term Loans”) on the Effective Date
in an amount equal to the amount set opposite the name of such Daylight Term Loan Lender on
Schedule 1(b) to this Amendment Agreement under the caption “Daylight Term Loans”.

 

 

 2

          “Daylight GDTG Lender” shall mean a lender that will become on the Effective Date a
GDTG Lender under the Restated Credit Agreement.

          “Daylight Term Loan Lender” shall mean a lender that will become on the Effective Date
a Term Lender under the Restated Credit Agreement.

          “Effective Date” shall have the meaning assigned to such term in Section 2.

          “Existing Administrative Agent” shall mean JPMCB, as administrative agent under the
Pre-Restatement Credit Agreement.

          “JPMCB” shall mean JPMorgan Chase Bank, N.A.

          “JPMEL” means J.P. Morgan Europe Limited.

          “New Administrative Agent” shall mean JPMEL, as administrative agent under the
Restated Credit Agreement.

          “Pre-Restatement Credit Agreement” shall mean the Credit Agreement immediately before
its amendment or restatement in accordance with Section 4(a)(i)(A).

          “Restated Credit Agreement” shall mean the Credit Agreement, as amended and restated
in accordance with Section 4(a)(i)(A).

          “Restated MGCA” shall mean the Master Guarantee and Collateral Agreement, as amended
and restated in accordance with Section 4(a)(i)(B).

          (b) On the Effective Date, the terms “Agreement”, “this Agreement”, “herein”, “hereinafter”,
“hereto”, “hereof” and words of similar import, as used (i) in the Restated Credit Agreement,
shall, unless the context otherwise requires, refer to the Credit Agreement as amended and restated
in the form of the Restated Credit Agreement, and the term “Credit Agreement”, as used in the
Credit Documents, shall mean the Restated Credit Agreement and (ii) in the Restated MGCA, shall,
unless the context otherwise requires, refer to the Master Guarantee and Collateral Agreement as
amended and restated in the form of the Restated MGCA, and the terms “Master Guarantee and
Collateral Agreement” or “Guarantee and Collateral Agreement”, as used in the Credit Documents,
shall mean the Restated MGCA. Capitalized terms used but not defined herein shall have the
meanings assigned to such terms in the Restated Credit Agreement or, if not defined therein, the
Pre-Restatement Credit Agreement.

SECTION 2. Conditions to Effectiveness. The transactions provided for in Section 3 and 4
hereof and the obligations of the Lenders to make Loans and issue Letters of Credit under the
Restated Credit Agreement shall become effective on the date (the “Effective Date”) on which all
the conditions specified in Section 4.01 of the Restated Credit Agreement are satisfied (or waived
in accordance with Section 9.02 of the Restated Credit Agreement).

 

 

 3

SECTION 3. Daylight Financing. (a) On the Effective Date, immediately preceding the
effectiveness of the amendment and restatement provided for in Section 4, each of the parties
hereto irrevocably agrees that each of the following shall occur without any additional conditions
or actions of any party hereto:

     (i) (A) Each Daylight GDTG Lender shall extend credit to GDTG and GDTG shall
borrow and (B) each Daylight Term Loan Lender shall extend credit to Goodyear KG
and Dunlop KG, and Goodyear KG and Dunlop KG shall borrow, in each case, one or
more Daylight GDTG Loans or Daylight Term Loans, as applicable, denominated in Euro
in aggregate principal amounts equal to such Lender’s Daylight Commitments. The
proceeds of such Daylight GDTG Loans and Daylight Term Loans shall be payable to
JPMCB, which shall convert such proceeds into US Dollars at prevailing Exchange
Rates (pursuant to arrangements agreed with Goodyear and the European J.V.) and
then pay such proceeds to the accounts set forth on Schedule 1(a) and Schedule
1(b), respectively. Each of GDTG, Goodyear KG and Dunlop KG irrevocably directs
the Existing Administrative Agent to deliver all the proceeds of the borrowings
under the foregoing clauses (A) and (B) to JPMCB, and hereby irrevocably directs
JPMCB to apply such proceeds to prepay in full all the outstanding principal of any
Term Loans (as defined in the Pre-Restatement Credit Agreement) that remain
outstanding at such time, together with all accrued interest thereon and any
accrued commitment fees with respect to the Revolving Commitments (as defined in
the Pre-Restatement Credit Agreement).

     (ii) Immediately following the transactions provided for in paragraph (i)
above, all Revolving Lenders under the Pre-Restatement Credit Agreement shall
transfer their Revolving Commitments (as such term is defined in the
Pre-Restatement Credit Agreement) to JPMCB (which shall assume such commitments)
pursuant to the Master Assignment and Assumption to be executed in the form
attached hereto as Exhibit A.

     (iii) Immediately following the transactions provided for in paragraphs (i)
and (ii) above, JPMCB, as Majority Lender, irrevocably authorizes the Collateral
Agent to release the Collateral set forth in Schedule 2.

     (a) The Credit Parties hereby covenant and agree that no Revolving Loans shall be
outstanding under the Pre-Restatement Credit Agreement at any time on the Effective Date.

SECTION 4. Amendment and Restatement; Borrowings on Effective Date. (a) Each of the
parties hereto irrevocably agrees that each of the following shall occur on the Effective Date,
immediately after the effectiveness of the transactions described in Section 3, without the
satisfaction of any additional conditions or any further actions of

 

 

 4

any party hereto; provided that for the purposes of Section 4(a)(i)(A), only the parties to the
Credit Agreement (including the Term Lenders) shall agree to such amendment and restatement and,
for the purposes of Section 4(a)(i)(B) only the Collateral Agent and each Credit Party shall agree
to such amendment and restatement:

     (i) (A) The Credit Agreement (including the Schedules and Exhibits thereto)
shall be amended and restated to read as set forth in Exhibit B attached hereto
(including the Schedules and Exhibits attached to such Exhibit B) and (B) the
Master Guarantee and Collateral Agreement (including the Schedules and Exhibits
thereto) shall be amended and restated to read as set forth in Exhibit C attached
hereto (including the Schedules and Exhibits attached to such Exhibit C), and the
New Administrative Agent is hereby directed to enter into such Credit Documents and
to take such other actions as may be required to give effect to the transactions
contemplated hereby.

     (ii) On the Effective Date and immediately following the effectiveness of the
Restated Credit Agreement, JPMCB shall sell and assign, without recourse and
without any further action required on the part of any party, to each lender set
forth in Schedule 3 hereto (each, an “Assignee”), and each Assignee shall purchase
and assume, without recourse and without any further action required on its part,
from JPMCB effective as of the Effective Date, the amounts of JPMCB’s ABT
Commitment set forth in Schedule 3 and all related rights, interests and
obligations under the Restated Credit Agreement, the Restated MGCA (including,
without limitation, the rights, interests and obligations under Section 9.15 of the
Restated Credit Agreement and Section 11.16 of the Restated MGCA) and any other
documents or instruments delivered pursuant thereto (the rights and obligations
sold and assigned pursuant hereto being referred to herein collectively as the
“Assigned Interest”). Each Assignee hereby acknowledges receipt of a copy of the
Restated Credit Agreement. From and after the Effective Date (A) each Assignee
shall be a party to and be bound by the provisions of the Restated Credit Agreement
and, to the extent of the interests assigned by this paragraph (a)(ii), have the
rights and obligations of an ABT Lender thereunder and (B) JPMCB shall, to the
extent of the interests assigned by this Section, relinquish its rights and be
released from its obligations under the Restated Credit Agreement. The Standard
Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and
incorporated herein by reference and made a part of this Amendment Agreement as if
set forth herein in full. The Credit Parties consent to each assignment pursuant
to this paragraph (iii). The parties agree that (A) no recordation fee shall be
payable with respect to the foregoing assignments and (B) this Amendment Agreement
shall be an approved form of Assignment and Acceptance for purposes of the Restated
Credit Agreement.

 

 

 5

     (iii) Notwithstanding any provision of this Amendment Agreement, the
provisions of Sections 2.12, 2.13, 2.14 and 9.03 of the Pre-Restatement Credit
Agreement, as in effect immediately prior to the Effective Date, will continue to
be effective as to all matters arising out of or in any way related to facts or
events existing or occurring prior to the Effective Date for the benefit of the
Lenders, including each Lender under the Pre-Restatement Credit Agreement that will
not be a Lender under the Restated Credit Agreement.

     (iv) Immediately following the transactions provided for in paragraph (ii)
above, (A) each GDTG Lender shall extend credit to GDTG and GDTG shall borrow, one
or more GDTG Loans denominated in Euro in an aggregate principal amount equal to
the aggregate principal amount of Daylight GDTG Loans provided to GDTG by such GDTG
Lender in its capacity as a Daylight GDTG Lender and (B) each Term Lender shall
extend credit to each of Goodyear KG and Dunlop KG and each of Goodyear KG and
Dunlop KG shall borrow, one or more Term Loans denominated in Euro in an aggregate
principal amount equal to the aggregate principal amount of Daylight Term Loans
provided to each of Goodyear KG and Dunlop KG by such Term Lender in its capacity
as a Daylight Term Loan Lender. Such Revolving Loans and such Term Loans shall
have the initial Interest Periods and be of the Types set forth in Schedule 4.
Each of GDTG, Goodyear KG and Dunlop KG irrevocably directs that the borrowings set
forth in paragraphs (a)(iv)(A) and (B) be applied directly to prepay in full (and
be netted against) Daylight GDTG Loans and Daylight Term Loans, as applicable,
extended to it.

SECTION 5. Continuing Security. On the Effective Date, each Borrower, Grantor and
Guarantor (a) confirms its acceptance of the Credit Documents to which it is a party (as each such
Credit Document is amended and restated by this Amendment Agreement), (b) agrees that it is bound
by the terms of the Credit Documents to which it is a party (as each such Credit Document is
amended and restated by this Amendment Agreement), (c) confirms that its obligations under the
Master Guarantee and Collateral Agreement remain in full force and effect and (d) confirms that the
security created under the Security Documents (i) continues in full force and effect on the terms
of the respective Security Documents and (ii) extends to the obligations of the Borrowers under the
Restated Credit Agreement (subject to any limitation set out in the Security Documents) and that
the obligations of the Borrowers arising under the Restated Credit Agreement are included as
Obligations under the Master Guarantee and Collateral Agreement and as “secured obligations”
(however defined) in the Security Documents (subject to any limitations set forth in such Security
Documents). Each party hereto confirms that the intention of the parties is that each of the
Credit Agreement and the Master Guarantee and Collateral Agreement shall not terminate on the
Effective Date and shall continue in full force and effect as amended and restated hereby.

 

 

 6

SECTION 6. Applicable Law. THIS AMENDMENT AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

SECTION 7. Counterparts. This Amendment Agreement may be executed in two or more
counterparts, each of which shall constitute an original but all of which when taken together shall
constitute but one contract. Delivery of an executed counterpart of a signature page of this
Amendment Agreement by telecopy shall be effective as delivery of a manually executed counterpart
of this Amendment Agreement. This Amendment Agreement shall constitute a “Credit Document” for all
purposes of the Restated Credit Agreement and the other Credit Documents.

SECTION 8. Expenses. Goodyear and each Borrower agrees to reimburse the Existing
Administrative Agent and the New Administrative Agent for all reasonable out-of-pocket expenses
incurred by it in connection with this Amendment Agreement, including the reasonable fees, charges
and disbursements of Cravath, Swaine & Moore LLP, Allen & Overy LLP and other counsel for the
Existing Administrative Agent and the New Administrative Agent.

SECTION 9. Headings. The headings of this Amendment Agreement are for purposes of
reference only and shall not limit or otherwise affect the meaning hereof.

 

 

 7

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

          PARTIES TO THE CREDIT AGREEMENT AND MASTER GUARANTEE AND COLLATERAL AGREEMENT

	 	 	 	 	 	 	 	 	 
	 	 	THE GOODYEAR TIRE & RUBBER COMPANY,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ Darren R. Wells	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: Darren R. Wells	 	 
	

	 	 	 	 	 	Title: Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	GOODYEAR DUNLOP TIRES EUROPE BV,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ R.M. Archer	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: R.M. Archer	 	 
	

	 	 	 	 	 	Title: Vice President Finance	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ D. Golsong	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: D. Golsong	 	 
	

	 	 	 	 	 	Title: Chief Legal Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	GOODYEAR DUNLOP TIRES GERMANY GMBH,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ T. Koerner	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: T. Koerner	 	 
	

	 	 	 	 	 	Title: Proxyholder	 	 

 

 

 8

	 	 	 	 	 	 	 	 	 
	 	 	GOODYEAR GMBH & CO. KG,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ T. Koerner	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: T. Koerner	 	 
	

	 	 	 	 	 	Title: Proxyholder	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	DUNLOP GMBH & CO. KG,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by
	 	     /s/ T. Koerner	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: T. Koerner	 	 
	

	 	 	 	 	 	Title: Proxyholder	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	GOODYEAR LUXEMBOURG TIRES S.A.,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     executed in the form of a notarial deed	 	 
	

	 	 	 	 	 	 	 	 

 

 

 9

	 	 	 	 	 	 	 	 	 
	 	 	J.P. MORGAN EUROPE LIMITED, as
Administrative Agent under the
Restated Credit Agreement,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ Nigel Marlow	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: Nigel Marlow	 	 
	

	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., individually, as Collateral
Agent, Issuing Bank and Swingline Lender and as
Administrative Agent under the Pre-Restatement Credit
Agreement,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     executed in the form of a notarial deed	 	 
	

	 	 	 	 	 	 	 	 

 

 

10

PARTIES TO THE MASTER GUARANTEE AND COLLATERAL

AGREEMENT (AND NOT PARTY TO THE CREDIT AGREEMENT)

	 	 	 	 	 	 	 	 	 
	 	 	RVM REIFEN 
VERTRIEBSMANAGEMENT GMBH,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ T. Koerner	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: T. Koerner	 	 
	

	 	 	 	 	 	Title: Proxyholder	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	FULDA REIFEN GMBH & CO. KG,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ T. Koerner	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: T. Koerner	 	 
	

	 	 	 	 	 	Title: Proxyholder	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	M-PLUS 
MULTIMARKENMANAGEMENT & GMBH
& CO. KG,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ T. Koerner	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: T. Koerner	 	 
	

	 	 	 	 	 	Title: Proxyholder	 	 

 

 

11

	 	 	 	 	 	 	 	 	 
	 	 	GD HANDELSSYSTEME GMBH & CO. KG,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ T. Koerner	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: T. Koerner	 	 
	

	 	 	 	 	 	Title: Proxyholder	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	GOODYEAR DUNLOP TIRES OE GMBH,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ T. Koerner	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: T. Koerner	 	 
	

	 	 	 	 	 	Title: Proxyholder	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	GOODYEAR DUNLOP TIRE FRANCE S.A.,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ R.M. Archer	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: R.M. Archer	 	 
	

	 	 	 	 	 	Title: Attorney	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ D. Golsong	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: D. Golsong	 	 
	

	 	 	 	 	 	Title: Attorney	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	GOODYEAR DUNLOP TYRES UK LTD,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ J. Robinson	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: J. Robinson	 	 
	

	 	 	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ R. Whitehurst	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: R. Whitehurst	 	 
	

	 	 	 	 	 	Title: Secretary	 	 

 

 

12

	 	 	 	 	 	 	 	 	 
	 	 	DUNLOP TYRES LTD,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	     /s/ J. Robinson	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: J. Robinson	 	 
	

	 	 	 	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ R. Whitehurst	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: R. Whitehurst	 	 
	

	 	 	 	 	 	Title: Secretary	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BELT CONCEPTS OF AMERICA, INC.,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ Darren R. Wells	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: Darren R. Wells	 	 
	

	 	 	 	 	 	Title: Vice President	 	 

 

 

13

	 	 	 	 	 	 	 	 	 
	 	 	CELERON CORPORATION,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ Darren R. Wells	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: Darren R. Wells	 	 
	

	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	COSMOFLEX, INC.,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ Darren R. Wells	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: Darren R. Wells	 	 
	

	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	DAPPER TIRE CO, INC.,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ Darren R. Wells	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: Darren R. Wells	 	 
	

	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	DIVESTED COMPANIES HOLDING COMPANY,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ Randall M. Loyd	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: Randall M. Loyd	 	 
	

	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ Ronald J. Carr	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: Ronald J. Carr	 	 
	

	 	 	 	 	 	Title: Vice President	 	 

 

 

14

	 	 	 	 	 	 	 	 	 
	 	 	DIVESTED LITCHFIELD PARK PROPERTIES, INC.,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ Randall M. Loyd	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: Randall M. Loyd	 	 
	

	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ Ronald J. Carr	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: Ronald J. Carr	 	 
	

	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	GOODYEAR FARMS, INC.,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ Darren R. Wells	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: Darren R. Wells	 	 
	

	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	GOODYEAR INTERNATIONAL CORPORATION,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ Bertram Bell	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: Bertram Bell	 	 
	

	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	GOODYEAR WESTERN HEMISPHERE CORPORATION,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by
	 	     /s/ Darren R. Wells	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: Darren R. Wells	 	 
	

	 	 	 	 	 	Title: Vice President	 	 

 

 

15

	 	 	 	 	 	 	 	 	 
	 	 	THE KELLY-SPRINGFIELD TIRE CORPORATION,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ Darren R. Wells	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: Darren R. Wells	 	 
	

	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	WHEEL ASSEMBLIES INC.,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ Darren R. Wells	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: Darren R. Wells	 	 
	

	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	WINGFOOT COMMERCIAL TIRE SYSTEMS, LLC,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ Darren R. Wells	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: Darren R. Wells	 	 
	

	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	WINGFOOT VENTURES EIGHT INC.,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ Randall M. Loyd	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: Randall M. Loyd	 	 
	

	 	 	 	 	 	Title: Vice President	 	 

 

 

16

	 	 	 	 	 	 	 	 	 
	 	 	GOODYEAR CANADA INC.,
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ Linda Alexander	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: Linda Alexander	 	 
	

	 	 	 	 	 	Title: Vice President Finance	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	by	 	 	 	 
	

	 	 	 	 	 	     /s/ D.S. Hamilton	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Name: D.S. Hamilton	 	 
	

	 	 	 	 	 	Title: Secretary	 	 

 

 

17

Signature Page to be executed by Lenders

under the Restated Credit Agreement

SIGNATURE PAGE to the AMENDMENT AND RESTATEMENT
AGREEMENT dated as of April 8, 2005, in respect of (A)
the TERM LOAN AND REVOLVING CREDIT AGREEMENT dated as of
March 31, 2003, as amended by the First Amendment dated
as of February 19, 2004, the Second Amendment dated as
of April 16, 2004, the Third Amendment dated as of April
16, 2004 and the Fourth Amendment dated as of May 27,
2004, among THE GOODYEAR TIRE & RUBBER COMPANY, GOODYEAR
DUNLOP TIRES EUROPE B.V., GOODYEAR DUNLOP TIRES GERMANY
GMBH, GOODYEAR GMBH & CO KG, DUNLOP GMBH & CO KG,
GOODYEAR LUXEMBOURG TIRES S.A., the Lenders parties
thereto and JPMORGAN CHASE BANK, N.A., as Administrative
Agent and Collateral Agent and (B) the MASTER GUARANTEE
AND COLLATERAL AGREEMENT dated as of March 31, 2003, as
Amended and Restated as of February 20, 2004, among THE
GOODYEAR TIRE & RUBBER COMPANY, the Subsidiaries of THE
GOODYEAR TIRE & RUBBER COMPANY identified therein and
JPMORGAN CHASE BANK, N.A. as Collateral Agent.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Lender:	 	  BNP Paribas
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	By:
	 	 /s/ Gayne C. Plunkett	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name: Gayne C. Plunkett	 	 	 	 
	

	 	 	 	 	 	 Title: Vice President	 	 	 	 
	 
	

	 	 	 	By:
	 	 /s/ Wendy Breuder	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name: Wendy Breuder	 	 	 	 
	

	 	 	 	 	 	 Title: Managing Director	 	 	 	 

 

 

18

Signature Page to be executed by Lenders

under the Restated Credit Agreement

SIGNATURE PAGE to the AMENDMENT AND RESTATEMENT AGREEMENT
dated as of April 8, 2005, in respect of (A) the TERM LOAN
AND REVOLVING CREDIT AGREEMENT dated as of March 31, 2003, as
amended by the First Amendment dated as of February 19, 2004,
the Second Amendment dated as of April 16, 2004, the Third
Amendment dated as of April 16, 2004 and the Fourth Amendment
dated as of May 27, 2004, among THE GOODYEAR TIRE & RUBBER
COMPANY, GOODYEAR DUNLOP TIRES EUROPE B.V., GOODYEAR DUNLOP
TIRES GERMANY GMBH, GOODYEAR GMBH & CO KG, DUNLOP GMBH & CO
KG, GOODYEAR LUXEMBOURG TIRES S.A., the Lenders parties
thereto and JPMORGAN CHASE BANK, N.A., as Administrative
Agent and Collateral Agent and (B) the MASTER GUARANTEE AND
COLLATERAL AGREEMENT dated as of March 31, 2003, as Amended
and Restated as of February 20, 2004, among THE GOODYEAR TIRE
& RUBBER COMPANY, the Subsidiaries of THE GOODYEAR TIRE &
RUBBER COMPANY identified therein and JPMORGAN CHASE BANK,
N.A. as Collateral Agent.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Lender:	 	  Calyon New York Branch
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	By:
	 	 /s/ Lee E. Greve	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name: Lee E. Greve	 	 	 	 
	

	 	 	 	 	 	 Title: Managing Director	 	 	 	 
	 
	

	 	 	 	By:
	 	 /s/ Corey Billups	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name: Corey Billups	 	 	 	 
	

	 	 	 	 	 	 Title: Director	 	 	 	 

 

 

19

Signature Page to be executed by Lenders

under the Restated Credit Agreement

SIGNATURE PAGE to the AMENDMENT AND RESTATEMENT
AGREEMENT dated as of April 8, 2005, in respect
of (A) the TERM LOAN AND REVOLVING CREDIT
AGREEMENT dated as of March 31, 2003, as amended
by the First Amendment dated as of February 19,
2004, the Second Amendment dated as of April 16,
2004, the Third Amendment dated as of April 16,
2004 and the Fourth Amendment dated as of May
27, 2004, among THE GOODYEAR TIRE & RUBBER
COMPANY, GOODYEAR DUNLOP TIRES EUROPE B.V.,
GOODYEAR DUNLOP TIRES GERMANY GMBH, GOODYEAR
GMBH & CO KG, DUNLOP GMBH & CO KG, GOODYEAR
LUXEMBOURG TIRES S.A., the Lenders parties
thereto and JPMORGAN CHASE BANK, N.A., as
Administrative Agent and Collateral Agent and
(B) the MASTER GUARANTEE AND COLLATERAL
AGREEMENT dated as of March 31, 2003, as Amended
and Restated as of February 20, 2004, among THE
GOODYEAR TIRE & RUBBER COMPANY, the Subsidiaries
of THE GOODYEAR TIRE & RUBBER COMPANY identified
therein and JPMORGAN CHASE BANK, N.A. as
Collateral Agent.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Lender:	 	  Citibank N.A.
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	By:
	 	 /s/ Brian Ike	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name: Brian Ike	 	 	 	 
	

	 	 	 	 	 	 Title: Director	 	 	 	 

 

 

20

Signature Page to be executed by Lenders

under the Restated Credit Agreement

SIGNATURE PAGE to the AMENDMENT AND RESTATEMENT AGREEMENT dated as of April 8,
2005, in respect of (A) the TERM LOAN AND REVOLVING CREDIT AGREEMENT dated as
of March 31, 2003, as amended by the First Amendment dated as of February 19,
2004, the Second Amendment dated as of April 16, 2004, the Third Amendment
dated as of April 16, 2004 and the Fourth Amendment dated as of May 27, 2004,
among THE GOODYEAR TIRE & RUBBER COMPANY, GOODYEAR DUNLOP TIRES EUROPE B.V.,
GOODYEAR DUNLOP TIRES GERMANY GMBH, GOODYEAR GMBH & CO KG, DUNLOP GMBH & CO KG,
GOODYEAR LUXEMBOURG TIRES S.A., the Lenders parties thereto and JPMORGAN CHASE
BANK, N.A., as Administrative Agent and Collateral Agent and (B) the MASTER
GUARANTEE AND COLLATERAL AGREEMENT dated as of March 31, 2003, as Amended and
Restated as of February 20, 2004, among THE GOODYEAR TIRE & RUBBER COMPANY, the
Subsidiaries of THE GOODYEAR TIRE & RUBBER COMPANY identified therein and
JPMORGAN CHASE BANK, N.A. as Collateral Agent.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Lender:	 	  Commerzbank Aktiengesellschaft	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	 /s/ Dr. Konrad Noltenhaus
	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name:
	 	Dr. Konrad Noltenhaus	 	 	 	 
	

	 	 	 	 	 	 Title:
	 	Senior Vice President	 	 	 	 
	

	 	 	 	 	 	 	 	Regional Center Frankfurt	 	 	 	 
	 
	 	 	 	 	By:	 	 /s/ Hans-Friedrich Jenetzky
	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name:
	 	Hans-Friedrich Jenetzky	 	 	 	 
	

	 	 	 	 	 	 Title:
	 	Senior Vice President	 	 	 	 
	

	 	 	 	 	 	 	 	Regional Center Frankfurt	 	 	 	 

 

 

21

Signature Page to be executed by Lenders

under the Restated Credit Agreement

SIGNATURE PAGE to the AMENDMENT AND RESTATEMENT AGREEMENT
dated as of April 8, 2005, in respect of (A) the TERM LOAN
AND REVOLVING CREDIT AGREEMENT dated as of March 31, 2003, as
amended by the First Amendment dated as of February 19, 2004,
the Second Amendment dated as of April 16, 2004, the Third
Amendment dated as of April 16, 2004 and the Fourth Amendment
dated as of May 27, 2004, among THE GOODYEAR TIRE & RUBBER
COMPANY, GOODYEAR DUNLOP TIRES EUROPE B.V., GOODYEAR DUNLOP
TIRES GERMANY GMBH, GOODYEAR GMBH & CO KG, DUNLOP GMBH & CO
KG, GOODYEAR LUXEMBOURG TIRES S.A., the Lenders parties
thereto and JPMORGAN CHASE BANK, N.A., as Administrative
Agent and Collateral Agent and (B) the MASTER GUARANTEE AND
COLLATERAL AGREEMENT dated as of March 31, 2003, as Amended
and Restated as of February 20, 2004, among THE GOODYEAR TIRE
& RUBBER COMPANY, the Subsidiaries of THE GOODYEAR TIRE &
RUBBER COMPANY identified therein and JPMORGAN CHASE BANK,
N.A. as Collateral Agent.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Lender:	 	  Credit Suisse First Boston, acting

  through its Cayman Islands Branch
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	By:
	 	 /s/ Mark Gleason	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name: Mark Gleason	 	 	 	 
	

	 	 	 	 	 	 Title: Director	 	 	 	 
	 
	

	 	 	 	By:
	 	 /s/ Mikhail Faybusovich	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name: Mikhail Faybusovich	 	 	 	 
	

	 	 	 	 	 	 Title: Associate	 	 	 	 

 

 

22

Signature Page to be executed by Lenders

under the Restated Credit Agreement

SIGNATURE PAGE to the AMENDMENT AND RESTATEMENT AGREEMENT dated
as of April 8, 2005, in respect of (A) the TERM LOAN AND
REVOLVING CREDIT AGREEMENT dated as of March 31, 2003, as
amended by the First Amendment dated as of February 19, 2004,
the Second Amendment dated as of April 16, 2004, the Third
Amendment dated as of April 16, 2004 and the Fourth Amendment
dated as of May 27, 2004, among THE GOODYEAR TIRE & RUBBER
COMPANY, GOODYEAR DUNLOP TIRES EUROPE B.V., GOODYEAR DUNLOP
TIRES GERMANY GMBH, GOODYEAR GMBH & CO KG, DUNLOP GMBH & CO KG,
GOODYEAR LUXEMBOURG TIRES S.A., the Lenders parties thereto and
JPMORGAN CHASE BANK, N.A., as Administrative Agent and
Collateral Agent and (B) the MASTER GUARANTEE AND COLLATERAL
AGREEMENT dated as of March 31, 2003, as Amended and Restated as
of February 20, 2004, among THE GOODYEAR TIRE & RUBBER COMPANY,
the Subsidiaries of THE GOODYEAR TIRE & RUBBER COMPANY
identified therein and JPMORGAN CHASE BANK, N.A. as Collateral
Agent.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Lender:	 	  Deutsche Bank AG, NY Branch
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	By:
	 	 /s/ David Mayhew	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name: David Mayhew	 	 	 	 
	

	 	 	 	 	 	 Title: Managing Director	 	 	 	 
	 
	

	 	 	 	By:
	 	 /s/ Stephen Cayer	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name: Stephen Cayer	 	 	 	 
	

	 	 	 	 	 	 Title: Director	 	 	 	 

 

 

23

Signature Page to be executed by Lenders

under the Restated Credit Agreement

SIGNATURE PAGE to the AMENDMENT AND RESTATEMENT AGREEMENT dated as of April 8,
2005, in respect of (A) the TERM LOAN AND REVOLVING CREDIT AGREEMENT dated as
of March 31, 2003, as amended by the First Amendment dated as of February 19,
2004, the Second Amendment dated as of April 16, 2004, the Third Amendment
dated as of April 16, 2004 and the Fourth Amendment dated as of May 27, 2004,
among THE GOODYEAR TIRE & RUBBER COMPANY, GOODYEAR DUNLOP TIRES EUROPE B.V.,
GOODYEAR DUNLOP TIRES GERMANY GMBH, GOODYEAR GMBH & CO KG, DUNLOP GMBH & CO KG,
GOODYEAR LUXEMBOURG TIRES S.A., the Lenders parties thereto and JPMORGAN CHASE
BANK, N.A., as Administrative Agent and Collateral Agent and (B) the MASTER
GUARANTEE AND COLLATERAL AGREEMENT dated as of March 31, 2003, as Amended and
Restated as of February 20, 2004, among THE GOODYEAR TIRE & RUBBER COMPANY, the
Subsidiaries of THE GOODYEAR TIRE & RUBBER COMPANY identified therein and
JPMORGAN CHASE BANK, N.A. as Collateral Agent.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Lender:	 	  GE Finance Participants SAS
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	By:
	 	 /s/ Hugh A. Fitzpatrick	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name: Hugh A. Fitzpatrick	 	 	 	 
	

	 	 	 	 	 	 Title: Duly Authorized Signatory	 	 	 	 

 

 

24

Signature Page to be executed by Lenders

under the Restated Credit Agreement

SIGNATURE PAGE to the AMENDMENT AND RESTATEMENT AGREEMENT dated as
of April 8, 2005, in respect of (A) the TERM LOAN AND REVOLVING
CREDIT AGREEMENT dated as of March 31, 2003, as amended by the First
Amendment dated as of February 19, 2004, the Second Amendment dated
as of April 16, 2004, the Third Amendment dated as of April 16, 2004
and the Fourth Amendment dated as of May 27, 2004, among THE
GOODYEAR TIRE & RUBBER COMPANY, GOODYEAR DUNLOP TIRES EUROPE B.V.,
GOODYEAR DUNLOP TIRES GERMANY GMBH, GOODYEAR GMBH & CO KG, DUNLOP
GMBH & CO KG, GOODYEAR LUXEMBOURG TIRES S.A., the Lenders parties
thereto and JPMORGAN CHASE BANK, N.A., as Administrative Agent and
Collateral Agent and (B) the MASTER GUARANTEE AND COLLATERAL
AGREEMENT dated as of March 31, 2003, as Amended and Restated as of
February 20, 2004, among THE GOODYEAR TIRE & RUBBER COMPANY, the
Subsidiaries of THE GOODYEAR TIRE & RUBBER COMPANY identified
therein and JPMORGAN CHASE BANK, N.A. as Collateral Agent.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Lender:	 	  Goldman Sachs Credit Partners, L.P.
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	By:
	 	 /s/ Thomas Connolly	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name: Thomas Connolly	 	 	 	 
	

	 	 	 	 	 	 Title: Managing Director	 	 	 	 

 

 

25

Signature Page to be executed by Lenders

under the Restated Credit Agreement

SIGNATURE PAGE to the AMENDMENT AND RESTATEMENT AGREEMENT dated as of April 8,
2005, in respect of (A) the TERM LOAN AND REVOLVING CREDIT AGREEMENT dated as
of March 31, 2003, as amended by the First Amendment dated as of February 19,
2004, the Second Amendment dated as of April 16, 2004, the Third Amendment
dated as of April 16, 2004 and the Fourth Amendment dated as of May 27, 2004,
among THE GOODYEAR TIRE & RUBBER COMPANY, GOODYEAR DUNLOP TIRES EUROPE B.V.,
GOODYEAR DUNLOP TIRES GERMANY GMBH, GOODYEAR GMBH & CO KG, DUNLOP GMBH & CO KG,
GOODYEAR LUXEMBOURG TIRES S.A., the Lenders parties thereto and JPMORGAN CHASE
BANK, N.A., as Administrative Agent and Collateral Agent and (B) the MASTER
GUARANTEE AND COLLATERAL AGREEMENT dated as of March 31, 2003, as Amended and
Restated as of February 20, 2004, among THE GOODYEAR TIRE & RUBBER COMPANY, the
Subsidiaries of THE GOODYEAR TIRE & RUBBER COMPANY identified therein and
JPMORGAN CHASE BANK, N.A. as Collateral Agent.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Lender:	 	  KBC Bank NV	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	 /s/ Dirk Witters
	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name:
	 	Dirk Witters	 	 	 	 	 	 
	

	 	 	 	 	 	 Title:
	 	Global Relationship	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	Manager Multinationals	 	 	 	 
	 
	 	 	 	 	By:	 	 /s/ Adriaan Loeff
	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name:
	 	Adriaan Loeff	 	 	 	 	 	 
	

	 	 	 	 	 	 Title:
	 	General Manager Multinationals	 	 	 	 

 

 

26

Signature Page to be executed by Lenders

under the Restated Credit Agreement

SIGNATURE PAGE to the AMENDMENT AND RESTATEMENT
AGREEMENT dated as of April 8, 2005, in respect of (A)
the TERM LOAN AND REVOLVING CREDIT AGREEMENT dated as
of March 31, 2003, as amended by the First Amendment
dated as of February 19, 2004, the Second Amendment
dated as of April 16, 2004, the Third Amendment dated
as of April 16, 2004 and the Fourth Amendment dated as
of May 27, 2004, among THE GOODYEAR TIRE & RUBBER
COMPANY, GOODYEAR DUNLOP TIRES EUROPE B.V., GOODYEAR
DUNLOP TIRES GERMANY GMBH, GOODYEAR GMBH & CO KG,
DUNLOP GMBH & CO KG, GOODYEAR LUXEMBOURG TIRES S.A.,
the Lenders parties thereto and JPMORGAN CHASE BANK,
N.A., as Administrative Agent and Collateral Agent and
(B) the MASTER GUARANTEE AND COLLATERAL AGREEMENT dated
as of March 31, 2003, as Amended and Restated as of
February 20, 2004, among THE GOODYEAR TIRE & RUBBER
COMPANY, the Subsidiaries of THE GOODYEAR TIRE & RUBBER
COMPANY identified therein and JPMORGAN CHASE BANK,
N.A. as Collateral Agent.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Lender:	 	  Mashreq Bank PSC
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	By:
	 	 /s/ Abbas Hagan	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name: Abbas Hagan	 	 	 	 
	

	 	 	 	 	 	 Title: Division Head	 	 	 	 

 

 

27

Signature Page to be executed by Lenders

under the Restated Credit Agreement

SIGNATURE PAGE to the AMENDMENT AND RESTATEMENT AGREEMENT
dated as of April 8, 2005, in respect of (A) the TERM LOAN
AND REVOLVING CREDIT AGREEMENT dated as of March 31, 2003, as
amended by the First Amendment dated as of February 19, 2004,
the Second Amendment dated as of April 16, 2004, the Third
Amendment dated as of April 16, 2004 and the Fourth Amendment
dated as of May 27, 2004, among THE GOODYEAR TIRE & RUBBER
COMPANY, GOODYEAR DUNLOP TIRES EUROPE B.V., GOODYEAR DUNLOP
TIRES GERMANY GMBH, GOODYEAR GMBH & CO KG, DUNLOP GMBH & CO
KG, GOODYEAR LUXEMBOURG TIRES S.A., the Lenders parties
thereto and JPMORGAN CHASE BANK, N.A., as Administrative
Agent and Collateral Agent and (B) the MASTER GUARANTEE AND
COLLATERAL AGREEMENT dated as of March 31, 2003, as Amended
and Restated as of February 20, 2004, among THE GOODYEAR TIRE
& RUBBER COMPANY, the Subsidiaries of THE GOODYEAR TIRE &
RUBBER COMPANY identified therein and JPMORGAN CHASE BANK,
N.A. as Collateral Agent.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Lender:	 	  N. M.
Rothschild & Sons Limited
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	By:
	 	 /s/ Adam Greenbiry	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name: Adam Greenbiry	 	 	 	 
	

	 	 	 	 	 	 Title: Director	 	 	 	 
	 
	

	 	 	 	By:
	 	 /s/ John Sealy	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name: John Sealy	 	 	 	 
	

	 	 	 	 	 	 Title: Director	 	 	 	 

 

 

28

Signature Page to be executed by Lenders

under the Restated Credit Agreement

SIGNATURE PAGE to the AMENDMENT AND RESTATEMENT AGREEMENT dated as of April 8,
2005, in respect of (A) the TERM LOAN AND REVOLVING CREDIT AGREEMENT dated as
of March 31, 2003, as amended by the First Amendment dated as of February 19,
2004, the Second Amendment dated as of April 16, 2004, the Third Amendment
dated as of April 16, 2004 and the Fourth Amendment dated as of May 27, 2004,
among THE GOODYEAR TIRE & RUBBER COMPANY, GOODYEAR DUNLOP TIRES EUROPE B.V.,
GOODYEAR DUNLOP TIRES GERMANY GMBH, GOODYEAR GMBH & CO KG, DUNLOP GMBH & CO KG,
GOODYEAR LUXEMBOURG TIRES S.A., the Lenders parties thereto and JPMORGAN CHASE
BANK, N.A., as Administrative Agent and Collateral Agent and (B) the MASTER
GUARANTEE AND COLLATERAL AGREEMENT dated as of March 31, 2003, as Amended and
Restated as of February 20, 2004, among THE GOODYEAR TIRE & RUBBER COMPANY, the
Subsidiaries of THE GOODYEAR TIRE & RUBBER COMPANY identified therein and
JPMORGAN CHASE BANK, N.A. as Collateral Agent.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Lender:	 	  Natexis Banques Populaires
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	By:
	 	 /s/ Patrick Senderens	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name: Patrick Senderens	 	 	 	 
	

	 	 	 	 	 	 Title: Global Relationship Manager	 	 	 	 
	 
	

	 	 	 	By:
	 	 /s/ Christopher Labaune	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name: Christopher Labaune	 	 	 	 
	

	 	 	 	 	 	 Title: Relationship Manager	 	 	 	 

 

 

29

Signature Page to be executed by Lenders

under the Restated Credit Agreement

SIGNATURE PAGE to the AMENDMENT AND RESTATEMENT AGREEMENT dated as
of April 8, 2005, in respect of (A) the TERM LOAN AND REVOLVING
CREDIT AGREEMENT dated as of March 31, 2003, as amended by the
First Amendment dated as of February 19, 2004, the Second
Amendment dated as of April 16, 2004, the Third Amendment dated as
of April 16, 2004 and the Fourth Amendment dated as of May 27,
2004, among THE GOODYEAR TIRE & RUBBER COMPANY, GOODYEAR DUNLOP
TIRES EUROPE B.V., GOODYEAR DUNLOP TIRES GERMANY GMBH, GOODYEAR
GMBH & CO KG, DUNLOP GMBH & CO KG, GOODYEAR LUXEMBOURG TIRES S.A.,
the Lenders parties thereto and JPMORGAN CHASE BANK, N.A., as
Administrative Agent and Collateral Agent and (B) the MASTER
GUARANTEE AND COLLATERAL AGREEMENT dated as of March 31, 2003, as
Amended and Restated as of February 20, 2004, among THE GOODYEAR
TIRE & RUBBER COMPANY, the Subsidiaries of THE GOODYEAR TIRE &
RUBBER COMPANY identified therein and JPMORGAN CHASE BANK, N.A. as
Collateral Agent.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Lender:	 	  The Northern Trust Company
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	By:
	 	 /s/ Christopher L. McKean	 	 	 	 
	

	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 Name: Christopher L. McKean	 	 	 	 
	

	 	 	 	 	 	 Title: Vice President	 	 	 	 

 

 

30

Annex 1

THE GOODYEAR TIRE & RUBBER COMPANY

GOODYEAR DUNLOP TIRES EUROPE B.V.

GOODYEAR DUNLOP TIRES GERMANY GMBH

GOODYEAR GMBH & CO KG

DUNLOP GMBH & CO KG

GOODYEAR LUXEMBOURG TIRES S.A.

CREDIT AGREEMENT

DATED AS OF MARCH 30,

AS AMENDED AND RESTATED AS OF APRIL 8, 2005

STANDARD TERMS AND CONDITIONS

          1. Representations and Warranties.

          1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Amendment Agreement and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the Restated Credit
Agreement or any other Credit Document, (ii) the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Documents or any collateral thereunder, (iii) the
financial condition of any Borrower, any of its Subsidiaries or Affiliates or any other Person
obligated in respect of any Credit Document or (iv) the performance or observance by any Borrower,
any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations
under any Credit Document.

          1.2. Assignees. Each Assignee (a) represents and warrants that (i) it has full power
and authority, and has taken all action necessary, to execute and deliver this Amendment Agreement
and to consummate the transactions contemplated hereby and to become a Lender under the Restated
Credit Agreement and the Restated MGCA, (ii) it satisfies the requirements, if any, specified in
the Restated Credit Agreement that are required to be satisfied by it in order to acquire the
Assigned Interest and become a Lender, (iii) from and after the Effective Date, it shall be bound
by the provisions each of the Restated Credit Agreement and the Restated MGCA as a Lender
thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender
thereunder, (iv) it has received a copy of the Restated Credit Agreement, together with copies of
the most recent financial statements delivered pursuant to Section 5.01 thereto, as applicable, the
Restated MGCA and such other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Amendment Agreement and to purchase the Assigned
Interest on the basis of which it has made such analysis and decision independently and without
reliance on the New Administrative Agent or any other Lender, and (v) attached to this Amendment
Agreement is (i) any documentation

 

 

31

required to be delivered by it pursuant to the terms of Sections 2.17 and 9.17 of the Restated
Credit Agreement and (ii) a “New Secured Party’s Accession Agreement” in the form of Schedule 3 to
the German Security Trust Agreement, duly completed and executed by such Assignee; and (b) agrees
that (i) it will, independently and without reliance on the New Administrative Agent, the Assignor
or any other Lender, and based on such documents and information as it shall deem appropriate at
the time, continue to make its own credit decisions in taking or not taking action under the Credit
Documents, and (ii) it will perform in accordance with their terms all of the obligations which by
the terms of the Credit Documents are required to be performed by it as a Lender.

          2. Restated MGCA. Each Assignee, by executing and delivering this Amendment
Agreement, acknowledges receipt of a copy of the Restated MGCA and approves and agrees to be bound
by and to act in accordance with the terms and conditions of the Restated MGCA and each other
Security Document, specifically including (i) the provisions of Section 5.03 of the Restated MGCA
(governing the distribution of proceeds realized from the exercise of remedies under the Security
Documents), (ii) the provisions of Article VI of the Restated MGCA (governing the manner in which
the amounts of the Obligations (as defined in the Restated MGCA) are to be determined at any time),
(iii) the provisions of Articles VIII and IX of the Restated MGCA (relating to the duties and
responsibilities of the Collateral Agent and providing for the indemnification and the
reimbursement of expenses of the Collateral Agent by the Lenders) and (iv) the provisions of
Section 11.13 of the Restated MGCA (providing for releases of Guarantees of and Collateral securing
the Obligations).

          3. Payments. From and after the Effective Date, the New Administrative Agent shall
make all payments in respect of the Assigned Interest (including payments of principal, interest,
fees and other amounts) to the Assignor for amounts which have accrued to but excluding the
Effective Date and to each Assignee for amounts which have accrued from and after the Effective
Date.

          4. Foreign Law Provisions. 

          4.1. France. An assignment of rights will only be effective vis-à-vis the Subsidiary
Guarantors incorporated in France if the assignment if such assignment is notified in France by
bailiff (huissier) in accordance with Article 1690 of the French Civil Code. Pursuant to
clause 9.04(b)(vii) of the Restated Credit Agreement (i) the European J.V. (or the New
Administrative Agent, at the expense of the European J.V.) shall carry out such notification and
(ii) if the assignment provided for in this Amendment Agreement is made without the European J.V.’s
consent the New Administrative Agent shall provide prompt written notice of the assignment to the
European J.V.

          4.2. Italy. For the purposes of Italian law only, the assignment made under this
Amendment Agreement shall be deemed to constitute a cessione del contratto, although it
will not constitute a termination or a novation of the Credit Agreement for purposes of New York
law.

 

 

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          5. Affiliates. Each Assignee acknowledges that any Obligations in respect of any Swap
Agreement or cash management services, in each case provided by an Affiliate of a Lender, will only
constitute Obligations for the purpose of any Security Document governed by the laws of a country
other than the United States of America if such Affiliate executes and delivers to the New
Administrative Agent an Affiliate Authorization in the form of Exhibit H to the Restated Credit
Agreement or any other form approved by the New Administrative Agent.

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