Document:

exv10w7

 

EXHIBIT 10.7

CUSIP No.:                     

 

$200,000,000

AMENDED AND RESTATED

CREDIT AGREEMENT

Dated as of April 2, 2007

among

COLEMAN CABLE, INC.

and

CERTAIN OF ITS U.S. SUBSIDIARIES,

as Borrowers,

EACH OF THE FINANCIAL INSTITUTIONS

INITIALLY A SIGNATORY HERETO,

TOGETHER WITH THOSE ASSIGNEES

PURSUANT TO SECTION 14.6 HEREOF,

as Lenders,

and

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Administrative Agent and Issuing Bank

NATIONAL CITY BUSINESS CREDIT, INC.,

as Syndication Agent,

and

PNC BANK, NATIONAL ASSOCIATION,

WELLS FARGO FOOTHILL, LLC

and

ASSOCIATED BANK, NATIONAL ASSOCIATION,

as Documentation Agents

WACHOVIA CAPITAL MARKETS, LLC,

As Sole Lead Arranger, Manager and Book Runner

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	1.1 General Definitions
	 	 	1	 
	1.2 Accounting Terms and Determinations
	 	 	31	 
	1.3 Other Definitional Terms
	 	 	31	 
	 
	 	 	 	 
	ARTICLE II LOANS
	 	 	32	 
	2.1 Revolving Loans
	 	 	32	 
	2.2 [Intentionally Omitted]
	 	 	37	 
	2.3 Optional and Mandatory Prepayments; Reduction of Revolving Credit
Committed Amount
	 	 	37	 
	2.4 Payments and Computations
	 	 	39	 
	2.5 Maintenance of Account
	 	 	41	 
	2.6 Statement of Account
	 	 	41	 
	2.7 Taxes
	 	 	42	 
	2.8 Sharing of Payments
	 	 	44	 
	2.9 Allocation of Payments; Pro Rata Treatment
	 	 	44	 
	2.10 Extensions and Conversions
	 	 	46	 
	2.11 Removal of Lenders
	 	 	47	 
	 
	 	 	 	 
	ARTICLE III LETTERS OF CREDIT
	 	 	48	 
	3.1 Issuance
	 	 	48	 
	3.2 Notice and Reports
	 	 	48	 
	3.3 Participation
	 	 	48	 
	3.4 Reimbursement
	 	 	49	 
	3.5 Repayment with Revolving Loans
	 	 	50	 
	3.6 Renewal, Extension
	 	 	51	 
	3.7 Uniform Customs and Practices
	 	 	51	 
	3.8 Indemnification; Nature of Issuing Bank’s Duties
	 	 	51	 
	3.9 Responsibility of Issuing Bank
	 	 	52	 
	3.10 Conflict with Letter of Credit Documents
	 	 	52	 
	 
	 	 	 	 
	ARTICLE IV INTEREST AND FEES
	 	 	53	 
	4.1 Interest on Loans
	 	 	53	 
	4.2 Interest After Event of Default
	 	 	53	 
	4.3 Unused Line Fee
	 	 	53	 
	4.4 Agent’s Fees
	 	 	53	 
	4.5 Letter of Credit Fees
	 	 	54	 
	4.6 Authorization to Charge Account
	 	 	54	 
	4.7 Indemnification in Certain Events
	 	 	54	 
	4.8 Inability To Determine Interest Rate
	 	 	55	 
	4.9 Illegality
	 	 	55	 
	4.10 Funding Indemnity
	 	 	56	 

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	 	 	Page	 
	ARTICLE V CONDITIONS PRECEDENT
	 	 	56	 
	5.1 Closing Conditions
	 	 	56	 
	5.2 Condition to all Loans and Letters of Credit
	 	 	63	 
	 
	 	 	 	 
	ARTICLE VI. REPRESENTATIONS AND WARRANTIES
	 	 	63	 
	6.1 Organization and Qualification
	 	 	64	 
	6.2 Solvency
	 	 	64	 
	6.3 Liens; Inventory
	 	 	64	 
	6.4 No Conflict
	 	 	64	 
	6.5 Enforceability
	 	 	65	 
	6.6 Financial Data; Projections; Material Adverse Change
	 	 	65	 
	6.8 Fictitious Business Names
	 	 	66	 
	6.9 Subsidiaries
	 	 	66	 
	6.10 No Judgments or Litigation
	 	 	67	 
	6.11 No Defaults
	 	 	67	 
	6.12 No Employee Disputes
	 	 	67	 
	6.13 Compliance with Law
	 	 	67	 
	6.14 ERISA
	 	 	68	 
	6.15 Compliance with Environmental Laws
	 	 	68	 
	6.16 Use of Proceeds
	 	 	69	 
	6.17 Intellectual Property
	 	 	69	 
	6.18 Licenses and Permits
	 	 	70	 
	6.19 Title to Property
	 	 	70	 
	6.20 Labor Matters
	 	 	71	 
	6.21
Investment Company, Etc.
	 	 	71	 
	6.22 Margin Security
	 	 	71	 
	6.23 No Event of Default
	 	 	71	 
	6.24 Taxes and Tax Returns
	 	 	71	 
	6.25 No Other Indebtedness
	 	 	72	 
	6.26 Status of Accounts
	 	 	72	 
	6.27 Representations and Warranties
	 	 	72	 
	6.28 Material Contracts
	 	 	72	 
	6.29 Survival of Representations
	 	 	72	 
	6.30 Affiliate Transactions
	 	 	73	 
	6.31 Trade Suppliers
	 	 	73	 
	6.32 Key Members of Management
	 	 	73	 
	6.33 Accuracy and Completeness of Information
	 	 	73	 
	6.34 Anti Terrorism Laws
	 	 	73	 
	6.35 Deposit Accounts
	 	 	74	 
	6.36 Force Majeure
	 	 	74	 
	6.37 [Intentionally Omitted]
	 	 	74	 
	6.38 Anti Terrorism Laws
	 	 	74	 
	6.39 Compliance with OFAC Rules and Regulations
	 	 	75	 
	6.40 Compliance with FCPA
	 	 	75	 
	6.41 Obligations Constitute Permitted Indebtedness
	 	 	75	 

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	 	 	Page	 
	ARTICLE VII AFFIRMATIVE COVENANTS
	 	 	75	 
	7.1 Financial Information
	 	 	76	 
	7.2 Inventory
	 	 	78	 
	7.3 Corporate Existence
	 	 	79	 
	7.4 ERISA
	 	 	79	 
	7.5 Proceedings or Adverse Changes
	 	 	81	 
	7.6 Environmental Matters
	 	 	81	 
	7.7 Books and Records; Inspection
	 	 	82	 
	7.8 Collateral Records
	 	 	83	 
	7.9 Security Interests
	 	 	83	 
	7.10 Insurance; Casualty Loss
	 	 	84	 
	7.11 Taxes
	 	 	85	 
	7.12 Compliance With Laws
	 	 	85	 
	7.13 Use of Proceeds
	 	 	85	 
	7.14 Fiscal Year; Accounting Policies
	 	 	86	 
	7.15 Notification of Certain Events
	 	 	86	 
	7.16 Additional Borrowers and Guarantors
	 	 	86	 
	7.17 Schedules of Accounts and Purchase Orders
	 	 	87	 
	7.18 Collection of Accounts
	 	 	88	 
	7.19 Notice; Credit Memoranda; and Returned Goods
	 	 	88	 
	7.20 Acknowledgment Agreements
	 	 	89	 
	7.21 Trademarks
	 	 	89	 
	7.22 Maintenance of Property
	 	 	89	 
	7.23 Revisions or Updates to Schedules
	 	 	89	 
	7.24 Anti Terrorism Laws
	 	 	89	 
	7.25 Post Closing Covenants
	 	 	90	 
	 
	 	 	 	 
	ARTICLE VIII FINANCIAL COVENANTS
	 	 	91	 
	8.1 Fixed Charge Coverage Ratio
	 	 	91	 
	8.2. Minimum Excess Availability
	 	 	91	 
	 
	 	 	 	 
	ARTICLE IX NEGATIVE COVENANTS
	 	 	91	 
	9.1 Restrictions on Liens
	 	 	91	 
	9.2 Restrictions on Additional Indebtedness
	 	 	91	 
	9.3 Restrictions on Sale of Assets
	 	 	91	 
	9.4 No Corporate Changes
	 	 	92	 
	9.5 No Guarantees
	 	 	92	 
	9.6 No Restricted Payments
	 	 	92	 
	9.7 No Investments
	 	 	92	 
	9.8 No Affiliate Transactions
	 	 	93	 
	9.9 No Prohibited Transactions Under ERISA
	 	 	93	 
	9.10 No Additional Bank Accounts
	 	 	94	 
	9.11 Amendments of Material Contracts, Operative Documents
	 	 	94	 
	9.12 Additional Negative Pledges
	 	 	94	 
	9.13 Other Indebtedness
	 	 	95	 
	9.14 Sale and Leaseback
	 	 	95	 
	9.15 Licenses, Etc.
	 	 	95	 

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	 	 	Page	 
	9.16 Limitations
	 	 	96	 
	9.17 Operating Lease Obligations
	 	 	96	 
	9.18 Hedge Transactions
	 	 	96	 
	 
	 	 	 	 
	ARTICLE X POWERS
	 	 	96	 
	10.1 Appointment as Attorney in Fact
	 	 	96	 
	10.2 Limitation on Exercise of Power
	 	 	97	 
	 
	 	 	 	 
	ARTICLE XI EVENTS OF DEFAULT AND REMEDIES
	 	 	97	 
	11.1 Events of Default
	 	 	97	 
	11.2 Acceleration
	 	 	100	 
	 
	 	 	 	 
	ARTICLE XII TERMINATION
	 	 	100	 
	 
	 	 	 	 
	ARTICLE XIII THE AGENT
	 	 	101	 
	13.1 Appointment of Agent
	 	 	101	 
	13.2 Nature of Duties of Agent
	 	 	102	 
	13.3 Lack of Reliance on Agent
	 	 	102	 
	13.4 Certain Rights of the Agent
	 	 	102	 
	13.5 Reliance by Agent
	 	 	103	 
	13.6 Indemnification of Agent
	 	 	103	 
	13.7 The Agent in its Individual Capacity
	 	 	103	 
	13.8 Holders of Notes
	 	 	103	 
	13.9 Successor Agent
	 	 	104	 
	13.10 Collateral Matters
	 	 	105	 
	13.11 Actions with Respect to Defaults
	 	 	106	 
	13.12 Delivery of Information
	 	 	107	 
	13.13 No Reliance on Administrative Agent’s Customer Identification Program
	 	 	107	 
	13.14 USA Patriot Act
	 	 	107	 
	13.15 Other Agents
	 	 	107	 
	 
	 	 	 	 
	ARTICLE XIV MISCELLANEOUS
	 	 	108	 
	14.1 Waivers
	 	 	108	 
	14.2 JURY TRIAL
	 	 	108	 
	14.3 GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE
	 	 	108	 
	14.5 Notices
	 	 	109	 
	14.6 Assignability
	 	 	110	 
	14.7 Information
	 	 	113	 
	14.8 Payment of Expenses; Indemnification
	 	 	113	 
	14.9 Entire Agreement, Successors and Assigns
	 	 	115	 
	14.10
Amendments, Etc.
	 	 	115	 
	14.11 Nonliability of Agent and Lenders
	 	 	116	 
	14.12 Independent Nature of Lenders’ Rights
	 	 	116	 
	14.13 Counterparts
	 	 	116	 
	14.14 Effectiveness
	 	 	116	 
	14.15 Severability
	 	 	117	 
	14.16 Headings Descriptive
	 	 	117	 

-iv-

 

	 	 	 	 	 
	 	 	Page	 
	14.17 Maximum Rate
	 	 	117	 
	14.18 Right of Setoff
	 	 	117	 
	14.19 Concerning Joint and Several Liability of the Borrowers
	 	 	118	 
	14.20 Delegation of Authority
	 	 	120	 

EXHIBITS AND SCHEDULES

EXHIBITS

	 	 	 
	Exhibit A

	 	Form of Acknowledgment Agreement
	Exhibit B

	 	Form of Assignment and Acceptance
	Exhibit C

	 	Form of Guaranty Agreement
	Exhibit D

	 	Form of Landlord Agreement
	Exhibit E

	 	Form of Pledge Agreement
	Exhibit F

	 	Form of Security Agreement
	Exhibit G

	 	Form of Revolving Note
	Exhibit H

	 	Form of Notice of Borrowing
	Exhibit H-1

	 	Form of Daily Loan Activity Sheet
	Exhibit I

	 	Form of Deposit Account Control Agreement
	Exhibit J

	 	Form of Notice of Extension/Conversion
	Exhibit K

	 	Form of Compliance Certificate
	Exhibit L

	 	Form of Borrowing Base Certificate
	Exhibit M

	 	Form of Joinder Agreement
	Exhibit N

	 	Form of Solvency Certificate
	Exhibit O

	 	Form of Account Designation Letter
	Exhibit P

	 	Form of Licensor Consent
	Exhibit Q

	 	Form of Contribution Agreement
	Exhibit R

	 	Form of Copperfield Entity Security Agreement

-v-

 

SCHEDULES

	 	 	 
	Schedule 1.1B

	 	Liens
	Schedule 1.1C

	 	Indebtedness
	Schedule 1.1D

	 	Investments
	Schedule 5.1(y)

	 	Capitalization
	Schedule 6.1

	 	Jurisdictions of Organization
	Schedule 6.7

	 	Collateral Locations
	Schedule 6.8

	 	Fictitious Business Names
	Schedule 6.9

	 	Subsidiaries; Ownership
	Schedule 6.10

	 	Litigation
	Schedule 6.14

	 	ERISA
	Schedule 6.15

	 	Environmental Disclosures
	Schedule 6.17

	 	Intellectual Property
	Schedule 6.19

	 	Real Estate
	Schedule 6.28

	 	Material Contracts
	Schedule 6.30(a)

	 	Affiliate Transactions
	Schedule 6.30(b)

	 	Non-Ordinary Course or Arm’s Length Affiliate Transactions
	Schedule 6.31

	 	Trade Suppliers
	Schedule 6.32

	 	Key Members of Management
	Schedule 6.35

	 	Bank Accounts
	Schedule 7.25(a)

	 	Leased Premises for Landlord Agreements
	Schedule 7.25(b)

	 	Post Closing Deposit Account Control Agreements
	Schedule 14.5

	 	Lenders’ Lending Offices and Notice Information

-vi-

 

AMENDED AND RESTATED

CREDIT AGREEMENT

     THIS AMENDED AND RESTATED CREDIT AGREEMENT is entered into as of April 2, 2007 among COLEMAN
CABLE, INC., a Delaware corporation (the “Company”), the Subsidiaries of the Company
identified on the signature pages hereto and any other Subsidiaries of the Company which may become
Borrowers hereunder pursuant to Section 7.16 (collectively referred to as the
“Subsidiary Borrowers” or individually referred to as a “Subsidiary Borrower”)
(hereinafter, the Company and the Subsidiary Borrowers are collectively referred to as the
“Borrowers” or individually referred to as a “Borrower”), each of the financial
institutions identified as Lenders on the signature pages hereto (together with each of their
successors and assigns, referred to individually as a “Lender” and, collectively, as the
“Lenders”), NATIONAL CITY BUSINESS CREDIT, INC., as Syndication Agent, PNC BANK, NATIONAL
ASSOCIATION, WELLS FARGO FOOTHILL, LLC and ASSOCIATED BANK, NATIONAL ASSOCIATION, as Documentation
Agents, WACHOVIA BANK, NATIONAL ASSOCIATION (“Wachovia”), acting in the manner and to the
extent described in Article XIII hereof (in such capacity, the “Agent” or the
“Administrative Agent”), and WACHOVIA BANK, NATIONAL ASSOCIATION, as Issuing Bank.

W I T N E S S E T H:

     WHEREAS, the Borrowers wish to obtain a revolving credit facility for the working capital,
letter of credit and general corporate needs of the Borrowers, including, without limitation, the
Copperfield Acquisition (defined herein); and

     WHEREAS, upon the terms and subject to the conditions set forth herein, the Lenders are
willing to make loans and advances to the Borrowers;

     NOW, THEREFORE, the Borrowers, the Lenders and the Agent hereby agree as follows:

ARTICLE I

DEFINITIONS.

     1.1 General Definitions.

     As used herein, the following terms shall have the meanings herein specified:

     “Account Designation Letter” shall mean the Notice of Account Designation Letter dated
the Closing Date from the Borrowers to the Agent substantially in the form attached hereto as
Exhibit O.

     “Accounts” shall mean all of each Credit Party’s “accounts” as such term is defined in
the UCC, and, in any event, includes, without limitation, (a) all accounts receivable (whether or

 

 

not specifically listed on schedules furnished to the Agent), and all other rights to payment for
property sold, leased, licensed, assigned or otherwise disposed of, for a policy of insurance
issued or to be issued, for a secondary obligation incurred or to be incurred, for energy provided
or to be provided, for the use or hire of a vessel under a charter or other contract, arising out
of the use of a credit card or charge card, or for services rendered or to be rendered or in
connection with any other transaction (whether or not yet earned by performance), (b) all rights
in, to, and under all purchase orders or receipts for goods or services, (c) all rights to any
goods represented by any of the foregoing, including, without limitation, all rights of rescission,
replevin, reclamation, and stoppage in transit and rights to returned, reclaimed, or repossessed
goods, (d) all reserves and credit balances held by each Credit Party with respect to any such
accounts receivable or account debtors, (e) all books, records, computer tapes, programs and ledger
books arising therefrom or relating thereto, and (f) all guarantees and collateral security of any
kind, given by any account debtor or any other Person with respect to any of the foregoing, all
whether now owned or existing or hereafter acquired or arising, by or in favor of, any Credit
Party.

     “Acquisition Documents” shall mean the Purchase Agreement, including the exhibits and
schedules thereto, each Seller Release and all agreements, documents and instruments executed and
delivered pursuant thereto or in connection therewith.

     “Acknowledgment Agreements” shall mean (a) the acknowledgment agreements,
substantially in the form of Exhibit A (or such other form as shall be reasonably
acceptable to the Agent), between each Credit Party’s warehousemen, fillers, packers, processors,
and other bailees and the Agent, (b) Landlord Agreements, (c) Licensor Consents, (d) Freight
Forwarder Agreements, (e) Buying Association Supplemental Agreements or (f) any other bailee
acknowledgment and/or waiver agreement in form and substance satisfactory to the Agent.

     “Affiliate” shall mean, with respect to any Person, any entity which directly or
indirectly controls, is controlled by, or is under common control with, such Person. For purposes
of this definition, “control” shall mean the possession, directly or indirectly, of the power to
(i) vote ten percent (10%) or more of the securities having ordinary voting power for the election
of directors of such Person, or (ii) direct or cause the direction of management and policies of a
business, whether through the ownership of voting securities, by contract or otherwise and either
alone or in conjunction with others or any group.

     “Agent” or “Administrative Agent” shall mean Wachovia as provided in the
preamble to this Credit Agreement or any successor to Wachovia.

     “Anti-Terrorism Law” shall mean the USA Patriot Act or any other statute, regulation,
executive order, or other law pertaining to the prevention of future acts of terrorism, in each
case as such law may be amended from time to time.

     “Applicable Percentage” shall mean for Eurodollar Loans and Base Rate Loans, the
appropriate applicable percentages corresponding to the Quarterly Average Excess Availability as of
the most recent Calculation Date (as defined below) as shown below:

2

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Quarterly Average Excess	 	Applicable Percentage	 	Applicable Percentage
	Level	 	Availability	 	for Eurodollar Loans	 	for Base Rate Loans
	 	1	 	 	> $40,000,000
	 	 	1.25	%	 	 	0.00	%
	 	2	 	 	> $30,000,000 and
≤ $40,000,000
	 	 	1.50	%	 	 	0.25	%
	 	3	 	 	≤ $30,000,000
	 	 	1.75	%	 	 	0.50	%

The Applicable Percentages shall be determined and adjusted quarterly on the date (each a
“Calculation Date”) which is the first day of the first calendar month after the date on
which the Company provides the quarterly officer’s certificate for each fiscal quarter in
accordance with the provisions of Section 7.1(d); provided, however, that
(i) the initial Applicable Percentages shall be based on Level 3 (as shown above) and shall remain
at Level 3 until the first Calculation Date subsequent to June 30, 2007, and, thereafter, the Level
shall be determined by the then current Quarterly Average Excess Availability, and (ii) if the
Company fails to provide the officer’s certificate to the Agent for any fiscal quarter as required
by and within the time limits set forth in Section 7.1(d) or an Event of Default shall have
occurred and be continuing, the Applicable Percentages from the applicable date of such event shall
be based on Level 3 until five (5) Business Days after an appropriate officer’s certificate is
provided or such Event of Default has been waived or cured to the satisfaction of the Required
Lenders, whereupon the Level shall be determined by the then current Quarterly Average Excess
Availability. Except as set forth above, each Applicable Percentage shall be effective from one
Calculation Date until the next Calculation Date. Notwithstanding any of the foregoing to the
contrary, in the event that any financial information or certification provided to the
Administrative Agent in accordance with the provisions of Section 7.1(d) is shown to be
inaccurate (regardless of whether this Credit Agreement or the Commitments are in effect when such
inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the application of
a higher Applicable Percentage for any period (an “Applicable Period”) than the Applicable
Percentage applied for such Applicable Period, then (i) the Borrowers shall immediately deliver to
the Administrative Agent a corrected officer’s certificate for such Applicable Period, (ii) the
Applicable Percentage shall be determined as if Level 3 were applicable for such Applicable Period,
and (iii) the Borrowers shall immediately pay to the Administrative Agent the accrued additional
interest owing as a result of such increased Applicable Percentage for such Applicable Period.

     “Approved Assignee” shall mean any Lender, an Affiliate of a Lender or an Approved
Fund.

     “Approved Banks” shall have the meaning given such term in the definition of “Cash
Equivalents” herein.

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

     “Asset Disposition” shall mean the disposition (other than (x) a disposition described
in clauses (a) or (b) of Section 9.3, (y) a disposition described in clauses (c) or (d) of
Section 9.3, so long as the proceeds thereof are used to repair existing assets or acquire
other assets or property

3

 

useful in the relevant Credit Party’s business within two hundred seventy (270) days of such
disposition, or (z) a sale of any assets of the Copperfield Entities that are not Collateral) of
any or all of the assets (including, without limitation, the Capital Stock of a Credit Party or
Subsidiary of a Credit Party) of any Credit Party or its Subsidiaries, whether by sale, lease,
transfer or otherwise, in a single transaction, or in a series of related transactions in any
consecutive 12-month period (a) that have a fair market value in the aggregate in excess of
$500,000 or (b) for Net Cash Proceeds in the aggregate in excess of $500,000.

     “Assignment and Acceptance” shall mean an assignment and acceptance entered into by an
assigning Lender and an assignee Lender, accepted by the Agent, in accordance with Section
14.6(f), in the form attached hereto as Exhibit B.

     “Bankruptcy Code” shall mean Title 11 of the United States Code, as amended from time
to time, and any successor statute thereto.

     “Base Rate” shall mean, for any day, the rate per annum (rounded upwards, if
necessary, to the nearest whole multiple of 1/100 of 1%) equal to the greater of (a) the Federal
Funds Rate in effect on such day plus 1/2 of 1% or (b) the Prime Rate in effect on such
day. If for any reason the Agent shall have determined (which determination shall be conclusive
absent manifest error) that it is unable after due inquiry to ascertain the Federal Funds Rate for
any reason, including the inability or failure of the Agent to obtain sufficient quotations in
accordance with the terms hereof, the Base Rate shall be determined without regard to clause (a) of
the first sentence of this definition until the circumstances giving rise to such inability no
longer exist. Any change in the Base Rate due to a change in the Prime Rate or the Federal Funds
Rate shall be effective on the effective date of such change in the Prime Rate or the Federal Funds
Rate, respectively.

     “Base Rate Loan” shall mean any Loan bearing interest at a rate determined by
reference to the Base Rate.

     “Benefit Plan” shall mean a defined benefit plan as defined in Section 3(35) of ERISA
(other than a Multiemployer Plan) in respect of which any Credit Party, any Subsidiary or any ERISA
Affiliate is, or within the immediately preceding six (6) years was, an “employer” as defined in
Section 3(5) of ERISA.

     “Blocked Person” shall have the meaning given to such term in Section 6.34.

     “Borrower” and “Borrowers” shall have the meaning given to such terms in the
preamble of this Credit Agreement.

     “Borrowing Base” shall mean, as of any date of determination, the following amount
(the “Borrowing Base”) calculated in dollars as follows:

     (1) an amount equal to eighty-five percent (85%) of Eligible Accounts Receivable;
plus

4

 

     (2) an amount equal to the lesser of (a) the Inventory Sublimit and (b) fifty-five
percent (55%) of Eligible Inventory (provided, however, that not more than
five percent (5%) of the aggregate amount of Eligible Inventory may consist of Processor
Inventory); plus

     (3) the Transition Amount minus

     (4) reserves established by the Agent from time to time, in its reasonable credit
judgment, as a result of changes that the Agent becomes aware of that have resulted or could
reasonably be expected to result in a diminution in the quantity, quality or value of any
Collateral; provided that prior to establishing or modifying any such reserve, the
Agent shall have given the Company a reasonable opportunity and a reasonable amount of time
(it being agreed that if Excess Availability is greater than $10,000,000 prior to giving
effect to such reserve, the Agent will give the Company five business days) to confer with
the Agent regarding the proposed new or modified reserve. Subject to the foregoing, such
reserves may include, without limitation, reserves against obligations under any Lender
Hedging Agreement, rent reserves and import duty and freight charge reserves (the
“Reserves”).

Subject to the relevant terms and provisions set forth in this Credit Agreement, including
specifically Section 14.10, the Agent at all times shall be entitled to reduce or
increase the advance rates and standards of eligibility under this Credit Agreement, in each
case in its reasonable credit judgment, including, without limitation, following the Agent’s
review of any inventory appraisal and the orderly liquidation values contained therein.
Promptly after making any such adjustments, the Agent shall notify the Company thereof.

     “Borrowing Base Certificate” shall mean a borrowing base certificate in substantially
the form of Exhibit L hereto.

     “Business Day” shall mean any day other than a Saturday, a Sunday, a legal holiday or
a day on which banking institutions are authorized or required by law or other governmental action
to close in Charlotte, North Carolina or New York, New York; provided that in the case of
Eurodollar Loans, such day is also a day on which dealings between banks are carried on in U.S.
dollar deposits in the London interbank market.

     “Buying Association” shall mean any Person (other than a bank or other financial
institution) (a) the members of which are customers of a Borrower and receive price rebates on the
purchase of goods from such Borrower as a result of being members in such Person and (b) that pays
such Borrower’s accounts receivable owed by its members to such Borrower from amounts paid to such
Person by those members.

     “Buying Association Agreement” shall mean an agreement between a Buying Association
and the applicable Borrower.

5

 

     “Buying Association Supplemental Agreement” shall mean an agreement in form and
substance satisfactory to the Agent between a Buying Association and the applicable Borrower
supplementing a Buyer Association Agreement.

     “Capital Expenditures” shall mean expenditures for the acquisition (including the
acquisition by capitalized lease) or improvement of capital assets, as determined in accordance
with GAAP.

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

     “Capital Stock” shall mean (a) in the case of a corporation, capital stock, (b) in the
case of an association or business entity, any and all shares, interests, participations, rights or
other equivalents (however designated) of capital stock, (c) in the case of a partnership,
partnership interests (whether general or limited), (d) in the case of a limited liability company,
membership interests and (e) any other equity interest or participation that confers on a Person
the right to receive a share of the profits and losses of, or distributions of assets of, the
issuing Person.

     “Cash Concentration Account” shall mean a deposit account established and maintained
by the Company, for itself and as agent for the other Credit Parties, over which the Agent, for
itself and for the benefit of the Lenders, has “control” (as such term is used in Article 9 of the
UCC), whether by virtue of such deposit account’s being maintained at the Agent or, if required by
the Agent, pursuant to the terms of a Deposit Account Control Agreement in form and substance
satisfactory to the Agent in its reasonable discretion.

     “Cash Equivalents” shall mean, as to any Person, (a) securities issued or directly and
fully guaranteed or insured by the United States or any agency or instrumentality thereof
(provided that the full faith and credit of the United States is pledged in support
thereof) having maturities of not more than one (1) year from the date of acquisition, (b) time
deposits or certificates of deposit of any commercial bank incorporated under the laws of the
United States or any state thereof, of recognized standing having capital and unimpaired surplus in
excess of $1,000,000,000 and whose short-term commercial paper rating at the time of acquisition is
at least A-1 or the equivalent thereof by Standard & Poor’s Ratings Group or at least P-1 or the
equivalent thereof by Moody’s Investors Services, Inc. (any such bank, an “Approved Bank”), with
such deposits or certificates having maturities of not more than one (1) year from the date of
acquisition, (c) repurchase obligations with a term of not more than seven (7) days for underlying
securities of the types described in clauses (a) and (b) above entered into with any Approved Bank,
(d) commercial paper or finance company paper issued by any Person incorporated under the laws of
the United States or any state thereof and rated at least A-1 or the equivalent thereof by Standard
& Poor’s Corporation or at least P-1 or the equivalent thereof by Moody’s Investors Service, Inc.,
and in each case maturing not more than one year after the date of acquisition, (e) investments in
money market funds that are registered under the Investment Company Act of 1940, as amended, which
have net assets of at least $1,000,000,000 and at least eighty-five percent (85%) of whose assets
consist of securities and other obligations of the type described in clauses (a) through (d)
above, and (f) shares of any money market mutual fund that (i) has

6

 

substantially all of its assets invested continuously in the types of investments referred to in
clauses (a) through (e) above and (ii) has net assets of not less than $500,000,000. All such Cash
Equivalents must be denominated solely for payment in Dollars.

     “Cash Management Event” shall have the meaning given to such term in Section
7.18.

     “Cash Management Products” shall mean any one or more of the following types of
services or facilities extended to any of the Credit Parties by the Agent, any Lender or any
Affiliate of the Agent or a Lender in reliance on the Agent’s or such Lender’s agreement to
indemnify such Affiliate: (i) Automated Clearing House (ACH) transactions and other similar money
transfer services; (ii) cash management, including controlled disbursement and lockbox services;
(iii) establishing and maintaining deposit accounts; and (iv) credit cards or stored value cards.

     “Casualty Loss” shall have the meaning given to such term in Section 7.10.

     “Change of Control” shall mean the occurrence of any of the following: (i) the
Company shall fail to own one hundred percent (100%) of the outstanding Capital Stock of each of
the other Borrowers and the Guarantors or (ii) during the twenty-four month period commencing on
August 14, 2006, Continuing Directors shall cease for any reason to constitute a majority of the
members of the board of directors of the Company.

     “Closing” shall mean the consummation of the first to occur under this Credit
Agreement of (a) the making of the initial Loan by the Lenders to a Borrower under this Credit
Agreement and (b) the issuance of any Letter of Credit by the Issuing Bank.

     “Closing Date” shall mean the date on which the Closing occurs.

     “Collateral” shall mean any and all assets and rights and interests in or to the
personal and real property of the Credit Parties pledged from time to time as security for the
Obligations pursuant to the Security Documents.

     “Commitment” of any Lender shall mean the Revolving Credit Commitment of such Lender.

     “Company” shall have the meaning given to such term in the preamble to this Credit
Agreement.

     “Compliance Certificate” shall mean a certificate, executed by the Chief Executive
Officer and Chief Financial Officer of the Company, substantially in the form of Exhibit K.

     “Consolidated” or “consolidated” with reference to any term defined herein,
shall mean that term as applied to the accounts of the Company and all of its consolidated
Subsidiaries, consolidated in accordance with GAAP.

7

 

     “Consolidated Capital Expenditures” shall mean, for any applicable period of
computation, an amount equal to the consolidated aggregate Capital Expenditures of the Company and
its consolidated Subsidiaries during such fiscal period net of trade-ins and allowances, as
determined in accordance with GAAP.

     “Consolidated Cash Taxes” shall mean, for any applicable period of computation, the
sum of all taxes paid in cash by the Company and its consolidated Subsidiaries during such period,
determined on a consolidated basis in accordance with applicable law and GAAP.

     “Consolidated EBITDA” shall mean, for any applicable period of computation, (a)
Consolidated Net Income for such period, but excluding therefrom all extraordinary items of income
or loss for such period, plus (b) the sum of the following to the extent deducted in calculating
Consolidated Net Income: (i) Consolidated Interest Expense for such period, plus (ii) tax expense
(including, without limitation, any federal, state, local and foreign income and similar taxes) of
the Company and its Subsidiaries for such period, plus (iii) depreciation, amortization and other
non-cash charges (excluding non-cash charges that are expected to become cash charges in the next
succeeding 12 months or that are reserves for future cash charges, and including compensation
expense related to stock options determined in accordance with SFAS No. 123(R)) for such period.

     “Consolidated Fixed Charges” shall mean, for any applicable period of computation,
without duplication, the sum of (i) all Consolidated Interest Expense paid in cash for such period
plus (ii) Consolidated Scheduled Funded Indebtedness Payments made during such period.

     “Consolidated Funded Indebtedness” shall mean, as of any date of determination, all
Funded Indebtedness of the Company and its consolidated Subsidiaries, determined on a consolidated
basis in accordance with GAAP.

     “Consolidated Interest Expense” shall mean, for any applicable period of computation,
all interest expense, net of cash interest income, of the Company and its consolidated Subsidiaries
for such period, determined on a consolidated basis in accordance with GAAP.

     “Consolidated Net Income” shall mean, for any applicable period of computation, the
net income (or net deficit) of the Company and its consolidated Subsidiaries for such period, after
deduction of interest expense, income taxes and depreciation and amortization for such period,
determined on a consolidated basis in accordance with GAAP.

     “Consolidated Scheduled Funded Indebtedness Payments” shall mean, for any applicable
period of computation, the sum of all scheduled payments of principal on Consolidated Funded
Indebtedness for such period (including the principal component of payments due on Capital Leases
or under any synthetic lease, tax retention operating lease, off-balance sheet loan or similar
off-balance sheet financing product during such period), determined on a consolidated basis in
accordance with GAAP; it being understood that Consolidated Scheduled Funded Indebtedness Payments
shall not include voluntary prepayments or the mandatory prepayments required pursuant to
Section 2.4.

8

 

     “Continuing Director” shall mean, during any period of up to twenty four consecutive
months commencing on August 14, 2006, an individual (x) who was a director on August 14, 2006 or
(y) who becomes a director subsequent to August 14, 2006 and whose election or nomination for
election by the Company’s shareholders was approved by a vote of at least a majority of the
directors then comprising Continuing Directors.

     “Contractual Obligations” shall mean, with respect to any Person, any term or
provision of any securities issued by such Person, or any indenture, mortgage, deed of trust,
contract, undertaking, document, instrument or other agreement to which such Person is a party or
by which it or any of its properties is bound or to which it or any of its properties is subject.

     “Contribution Agreement” shall mean the Contribution Agreement of even date herewith
in substantially the form of Exhibit Q to be executed by each of the Credit Parties or any
Person who becomes party hereto or to the Guaranty Agreement pursuant to a joinder agreement in
form and substance satisfactory to the Agent, including, without limitation, and any Subsidiaries
of the Company which may become Borrowers or Guarantors hereunder pursuant to Section 7.16.

     “Copperfield” shall mean Copperfield, LLC, a Minnesota limited liability company.

     “Copperfield Acquisition” shall mean the acquisition by the Company of all of the
Capital Stock of Copperfield pursuant to the terms of the Acquisition Documents through the
acquisition of all of the issued and outstanding Capital Stock of SCC (which owns 59.42% of the
Capital Stock of Copperfield) and the acquisition of the Capital Stock of Copperfield held by the
Copperfield Sellers (who own 40.58% of the Capital Stock of Copperfield).

     “Copperfield Entity” shall mean Copperfield and any of its direct or indirect
Subsidiaries, and “Copperfield Entities” shall mean all of them, collectively.

     “Copperfield Entity Security Agreement” shall mean the Security Agreement, of even
date herewith, between the Agent and the Copperfield Entities (and such other Persons who may from
time to time become party thereto by joinder agreement), substantially in the form of Exhibit
R.

     “Copperfield Sellers” shall have the meaning ascribed thereto in the Purchase
Agreement.

     “Credit Agreement” shall mean this Amended and Restated Credit Agreement.

     “Credit and Collateral Termination Events” shall have the meaning given such term in
Article XII.

     “Credit Documents” shall mean, collectively, this Credit Agreement, the Revolving
Notes, the Letter of Credit Documents, each Guaranty Agreement, the Contribution Agreement, the
Security Documents, the Fee Letter and all other documents, agreements, instruments, opinions and
certificates executed and delivered in connection herewith or therewith, excluding Lender Hedging
Agreements.

9

 

     “Credit Parties” shall mean the Borrowers, the Guarantors and any affiliate of a
Borrower or a Guarantor or any of their respective Subsidiaries which has pledged Collateral or
furnished a guaranty to secure the Obligations.

     “Current Derivative Exposure” shall mean, as to any Person, as of any date of
determination, the amount that would be payable by such Person in the event all transactions under
its Hedging Agreements outstanding on such date were terminated due to an event of default for
which such Person was a defaulting party under such Hedging Agreements, without giving credit for
any amounts that would be payable to such Person in connection with such terminations.

     “Daily Loan Activity Sheet” shall mean the Coleman Cable, Inc. Daily Loan Activity
sheet in the form attached hereto as Exhibit H-1.

     “Default” shall mean an event, condition or default which, with the giving of notice,
the passage of time or both would become an Event of Default.

     “Default Rate” shall mean a rate equal to the Base Rate, plus the then current
Applicable Percentage, plus two percent (2%).

     “Defaulting Lender” shall have the meaning given to such term in Section
2.1(d)(iii).

     “Deposit Account Control Agreement” shall mean an agreement among a Credit Party, a
Lockbox Bank or other depositary institution, and the Agent, which agreement (a) is substantially
in the form of Exhibit I or (b) is in such other form as is reasonably acceptable to the
Agent and its counsel and which provides for the Agent’s having “control” (as such term is used in
Article 9 of the UCC) over the deposit accounts described therein, in each case as the same may be
amended, restated, supplemented, or otherwise modified from time to time.

     “DOL” shall mean the U.S. Department of Labor and any successor department or agency.

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

     “Domestic Subsidiaries” shall mean, with respect to any Person, any Subsidiary of such
Person which is incorporated or organized under the laws of any state of the United States or the
District of Columbia.

     “Eligible Accounts Receivable” shall mean the aggregate face amount of the Accounts of
each of the Credit Parties that conform to the warranties contained herein and at all times
continue to be acceptable to the Agent in its reasonable credit judgment, less the aggregate amount
of all returns, discounts, claims, credits, charges and allowances of any nature (whether issued,
owing, granted or outstanding), and less the aggregate amount of all reserves for slow paying
accounts, foreign sales, bill and hold (or deferred shipment) transactions and the Lenders’ charges
as set forth in this Credit Agreement. Unless otherwise approved in writing by the Agent, no
Account shall be deemed to be an Eligible Account Receivable if:

10

 

     (a) the Account arises out of a sale made by any Credit Party to an Affiliate or to any
employee of any Credit Party;

     (b) the Account is unpaid more than one hundred twenty (120) days after the original
invoice date or sixty (60) days after the original payment due date thereof;

     (c) such Account is from the same account debtor (or any affiliate thereof) and
twenty-five percent (25%) or more, in face amount, of other Accounts from such account
debtor (or any affiliate thereof) are due or unpaid more than one hundred twenty (120) days
after the original invoice date or sixty (60) days after the original payment due date
thereof;

     (d) (i) the amount of the Account, when aggregated with all other Accounts of any
account debtor, exceeds fifteen percent (15%) in face value of all Accounts of the Credit
Parties then outstanding, but only to the extent of such excess, or (ii) the amount of the
Account owing from account debtors that pay through the same Buying Association, when
aggregated with all other Accounts which will be paid through the same Buying Association,
exceeds thirty percent (30%) in face value of all Accounts of the Credit Parties then
outstanding, but only to the extent of such excess;

     (e) an Account for which (i) the account debtor is also a creditor of any Credit Party,
but only to the extent of the amount owed by such Credit Party to the account debtor, (ii)
the account debtor has disputed its liability on, or the account debtor has made any claim
with respect to, such Account or any other Account due from such account debtor to such
Credit Party, which has not been resolved, or (iii) the account debtor has or acquires any
right of setoff against such Account, but only to the extent of the amount of such setoff;

     (f) the Account is owing by an account debtor that has commenced a voluntary case under
the Bankruptcy Code or made an assignment for the benefit of creditors, or if a decree or
order for relief has been entered by a court having jurisdiction in the premises in respect
to such account debtor in an involuntary case under the Bankruptcy Code; any petition or
other application for relief under the Bankruptcy Code has been filed by or against the
account debtor; or such account debtor is generally not paying its debts as they become due
(unless such debts are the subject of a bona fide dispute), or has suspended business,
ceased to be solvent, or consented to or suffered a receiver, trustee, liquidator or
custodian to be appointed for it or for all or a significant portion of its assets or
affairs;

     (g) the Account arises from a sale to an account debtor outside the continental United
States or any province of Canada other than Quebec (provided, that the aggregate amount of
all Accounts owing from account debtors located in Canada shall not at any time exceed
$5,000,000), unless the sale is (i) on letter of credit, guaranty or banker’s acceptance
terms, in each case acceptable to the Agent in its reasonable credit judgment,

11

 

or (ii) otherwise approved by and acceptable to the Agent in its reasonable credit judgment;

     (h) the Account arises from a sale on a bill-and-hold, guaranteed sale,
sale-and-return, sale on approval or consignment basis or is made pursuant to any other
written agreement providing for repurchase or return;

     (i) the Agent believes, in its reasonable credit judgment, that collection of such
Account is insecure or that such Account may not be paid by reason of the account debtor’s
financial inability to pay;

     (j) an Account for which the related account debtor is the United States of America or
any department, agency or instrumentality thereof, unless the applicable Credit Party duly
assigns its rights to payment of such Account to the Agent pursuant to the Assignment of
Claims Act of 1940, as amended (31 U.S.C. § 3727 et seq.);

     (k) an Account for which the goods giving rise thereto have not been shipped “FOB
Shipping” or “FOB Buyer” and invoiced to the related account debtor or its designee; the
services giving rise to such Account have not been performed by or on behalf of the
applicable Credit Party and accepted by the related account debtor or its designee; or such
Account otherwise does not represent a final sale;

     (l) the aggregate face amount of the Account and all other Accounts owing by the same
account debtor exceeds a credit limit as to such account debtor determined by the Agent, in
its reasonable credit judgment, but only to the extent such aggregate face amount exceeds
such limit;

     (m) any Account in which the Agent does not have a first priority, perfected security
interest;

     (n) an Account for which an invoice has not been prepared and delivered to the related
account debtor; or

     (o) an Account which the Agent, at any time and in the exercise of its reasonable
credit judgment, determines it to be ineligible.

     “Eligible Assignee” shall mean (a) an Approved Assignee or (b) any other Person (i)
which is a commercial bank, finance company, insurance company or other financial institution or
fund and which, in the ordinary course of business, extends credit of the type contemplated herein;
(ii) whose becoming an assignee would not constitute a prohibited transaction under Section 4975 of
the Internal Revenue Code or Section 406 of ERISA; (iii) which is organized under the laws of the
United States of America or any state thereof; and (iv) which has capital in excess of
$500,000,000, provided, however, that “Eligible Assignee” shall not include the
Credit Parties, or any of the Credit Parties’ Affiliates, financial sponsors or Subsidiaries.

12

 

     “Eligible Inventory” shall mean (a) the aggregate gross amount of each Credit Party’s
Inventory (excluding 80% of all work-in-process, except for work-in-process consisting solely of
drawn copper wire located at any facility of a Subsidiary of a Credit Party (which shall not be
excluded)), valued at the lower of cost (on a FIFO basis) or market, which (i) is owned solely by
such Credit Party and with respect to which such Credit Party has good, valid and marketable title,
(ii) is stored on property that is either (A) owned or leased by such Credit Party or (B) owned or
leased by a warehouseman that has contracted with such Credit Party to store Inventory on such
warehouseman’s property or by another bailee of such Credit Party (other than a Processor)
(provided that, with respect to Inventory stored on property leased by such Credit Party,
such Credit Party shall have delivered in favor of the Agent an Acknowledgment Agreement from the
landlord of such leased location, and, with respect to Inventory stored on property owned or leased
by a warehouseman or other bailee (other than a Processor), such Credit Party shall have delivered
to the Agent an Acknowledgment Agreement executed by such warehouseman or other bailee (other than
a Processor)); or if not so stored, such Inventory constitutes Processor Inventory or In-Transit
Inventory; (iii) is subject to a valid, enforceable and first priority Lien in favor of Agent
except, with respect to Eligible Inventory stored at sites described in clause (B)(2) above for
normal and customary warehouseman, filler, packer and processor charges); (iv) is located in the
continental United States; and (v) is not obsolete, excess or slow moving and for which a markdown
reserve has not been made, and which otherwise conforms to the warranties contained herein and
which at all times continues to be acceptable to the Agent in its reasonable credit judgment,
less (b) the sum of (i) Inventory consisting of manufacturing supplies (other than raw
materials), expense supplies, shipping supplies or packaging materials, (ii) reserves imposed by
the applicable Credit Party, (iii) any goods returned or rejected by such Credit Party’s customers
for which a credit has not yet been issued, (iv) goods in transit to third parties (other than to
such Credit Party’s agents, warehouses, or other bailees (other than a Processor) that have
furnished an Acknowledgement Agreement to such Credit Party and the Agent or which constitutes
Processor Inventory or In-Transit Inventory), (v) damaged Inventory, (vi) any Inventory that the
Agent determines in its reasonable credit judgment to be a no charge or sample item; (vii) a
reserve equal to the amount of all accounts payable of such Credit Party owed or owing to any
filler, packer, processor or other bailee of such Credit Party; (viii) any reserves required by the
Agent in its reasonable credit judgment, including, without limitation, for special order goods,
market value declines, shrinkage, import duty and freight charges, rebates and purchase price
variances; (ix) any Inventory which is held by a Credit Party pursuant to consignment, sale or
return, sale on approval or similar arrangement; and (x) any Inventory that the Agent determines in
its reasonable credit judgment to be ineligible.

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended
from time to time, and any successor statute.

     “ERISA Affiliate” shall mean any (i) corporation which is or was at any time a member
of the same controlled group of corporations (within the meaning of Section 414(b) of the Internal
Revenue Code) as the Credit Parties or any of their Subsidiaries; (ii) partnership or other trade
or business (whether or not incorporated) at any time under common control (within the meaning of
Section 414(c) of the Internal Revenue Code) with the Credit Parties or any of their Subsidiaries;
and (iii) member of the same affiliated service group (within the meaning of

13

 

Section 414(m) of the Internal Revenue Code) as the Credit Parties or any of their Subsidiaries,
any corporation described in clause (i) above, or any partnership or trade or business described in
clause (ii) above.

     “Eurodollar Loan” shall mean a Loan bearing interest based at a rate determined by
reference to the Eurodollar Rate.

     “Eurodollar Rate” shall mean, for the Interest Period for each Eurodollar Loan
comprising part of the same borrowing (including conversions, extensions and renewals), a per annum
interest rate determined pursuant to the following formula:

	 	 	 
	Eurodollar Rate =

	 	      London Interbank Offered Rate
	 

	 	 
	 

	 	  1 - Eurodollar Reserve Percentage

     “Eurodollar Reserve Percentage” shall mean for any day, that percentage (expressed as
a decimal) which is in effect from time to time under Regulation D of the Board of Governors of the
Federal Reserve System (or any successor), as such regulation may be amended from time to time or
any successor regulation, as the maximum reserve requirement (including, without limitation, any
basic, supplemental, emergency, special, or marginal reserves) applicable with respect to
Eurocurrency liabilities as that term is defined in Regulation D (or against any other category of
liabilities that includes deposits by reference to which the interest rate of Eurodollar Loans is
determined), whether or not any Lender has any Eurocurrency liabilities subject to such reserve
requirement at that time. Eurodollar Loans shall be deemed to constitute Eurocurrency liabilities
and as such shall be deemed subject to reserve requirements without benefits of credits for
proration, exceptions or offsets that may be available from time to time to a Lender. The
Eurodollar Rate shall be adjusted automatically on and as of the effective date of any change in
the Eurodollar Reserve Percentage.

     “Event(s) of Default” shall have the meaning provided for in Article XI.

     “Excess Availability” shall mean, at any time, the amount, if any, by which (a) the
lesser of (i) the Revolving Credit Committed Amount and (ii) the Borrowing Base exceeds (b) the
aggregate amount of (i) the outstanding principal amount of all Revolving Loans, plus (ii) the
Letter of Credit Obligations.

     “Excess Availability Event” shall have the meaning given to such term in Section
7.18.

     “Excluded Taxes” shall have the meaning given to such term in Section 2.7.

     “Federal Funds Rate” shall mean, for any period, a fluctuating interest rate per annum
equal, for each day during such period, to the weighted average of the rates on overnight Federal
Funds transactions with members of the Federal Reserve System arranged by Federal Funds brokers, as
published for such day (or, if such day is not a Business Day, for the next preceding Business Day)
by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a
Business Day, the average of the quotations for such day on such transactions received by the Agent
from three Federal Funds brokers of recognized standing selected by it.

14

 

     “Fee Letter” shall mean the letter agreement, dated March 11, 2007 by and between the
Agent, WCM and the Borrowers regarding the fees to be paid by the Borrowers to the Agent.

     “Fees” shall mean, collectively, the fees owing to the Agent and/or WCM, the Unused
Line Fee, the Letter of Credit Fee and the Issuing Bank Fees payable hereunder.

     “Financials” shall have the meaning given to such term in Section 6.6.

     “Fixed Charge Coverage Ratio” shall mean, as of the last day of each month, the ratio
of (a) (i) Consolidated EBITDA (computed for the twelve month period then ending), minus
(ii) Unfinanced Capital Expenditures for such period, minus (iii) Consolidated Cash Taxes
for such period, minus (iv) cash dividends or other distributions and management fees paid
by the Company pursuant to Section 9.6 during such period, to (b) Consolidated Fixed
Charges (computed for the twelve months then ending). The Fixed Charge Coverage Ratio shall be
determined on a pro forma basis after giving effect to the consummation of the Acquisition.

     “Flood Hazard Property” shall mean a property in an area designated by the Federal
Emergency Management Agency as having special flood or mud slide hazards.

     “Foreign Lender” shall mean any Lender that is not a United States person, as such
term is defined in Section 7701(a)(30) of the Internal Revenue Code.

     “Foreign Subsidiary” shall mean, with respect to any Person, any Subsidiary of such
Person which is not a Domestic Subsidiary.

     “Freight Forwarder Agreement” shall mean a freight forwarder agreement in form and
substance satisfactory to the Agent among a freight forwarder or other shipping agent of a
Borrower, the Agent and the applicable Borrower.

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

     “Funded Indebtedness” shall mean, with respect to any Person, 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, or upon which interest payments are customarily
made, (c) all obligations of such Person under conditional sale or other title retention agreements
relating to property purchased by such Person (other than customary reservations or retentions of
title under agreements with suppliers entered into in the ordinary course of business), (d) all
obligations of such Person issued or assumed as the deferred purchase price of property or services
purchased by such Person (other than trade debt incurred in the ordinary course of business and due
within six months of the incurrence thereof) which would appear as liabilities on a balance sheet
of such Person, (e) the principal portion of all obligations of such Person under Capital Leases,
(f) the maximum amount of all letters of credit issued or bankers’ acceptances facilities created
for the account of such Person and, without duplication, all drafts drawn thereunder (to the extent

15

 

unreimbursed), (g) all preferred Capital Stock issued by such Person and required by the terms
thereof to be redeemed, or for which mandatory sinking fund payments are due, by a fixed date prior
to 180 days following the Maturity Date, (h) the principal portion of all obligations of such
Person under off-balance sheet financing arrangements, (i) the amount of Current Derivative
Exposure under Hedging Agreements of such Person, (j) all Indebtedness of another Person of the
type referred to in clauses (a) through (i) above secured by (or for which the holder of such
Funded Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on,
or payable out of the proceeds of production from, property owned or acquired by such Person,
whether or not the obligations secured thereby have been assumed, (k) all guaranties of such Person
with respect to Indebtedness of the type referred to in clauses (a) through (i) above of another
Person and (k) Indebtedness of the type referred to in clauses (a) through (i) above of any
partnership or unincorporated joint venture in which such Person is legally obligated or has a
reasonable expectation of being liable with respect thereto.

     “Funding Bank” shall mean Wachovia or any other banking or financial institution from
whom any of the Lenders borrow funds or obtain credit.

     “GAAP” shall mean generally accepted accounting principles in the United States of
America, as in effect on the date hereof and applied on a consistent basis with the Financials.

     “Government Acts” shall mean any act or omission, whether rightful or wrongful, of any
present or future de jure or de facto government or Governmental Authority

     “Governmental Authority” shall mean any federal, state, local or foreign court or
governmental agency, authority, instrumentality or regulatory body.

     “Guarantor” shall mean each Person who enters into the Guaranty Agreement or who
becomes party to the Guaranty Agreement pursuant to a joinder agreement in form and substance
satisfactory to the Agent, including, without limitation, any Subsidiaries of the Company which may
become Guarantors hereunder pursuant to Section 7.16.

     “Guaranty Agreement” shall mean, collectively, the Guaranty Agreement substantially in
the form of Exhibit C, executed in accordance with the terms of this Credit Agreement.

     “Hedging Agreements” shall mean any interest rate protection agreement, foreign
currency exchange agreement, commodity purchase or option agreement or other interest or exchange
rate or commodity price hedging agreements

     “Highest Lawful Rate” shall mean, at any given time during which any Obligations shall
be outstanding hereunder, the maximum nonusurious interest rate, if any, that at any time or from
time to time may be contracted for, taken, reserved, charged or received on the indebtedness under
this Credit Agreement, under the laws of the State of New York (or the law of any other
jurisdiction whose laws may be mandatorily applicable notwithstanding other provisions of this
Credit Agreement and the other Credit Documents), or under applicable federal laws which may
presently or hereafter be in effect and which allow a higher maximum nonusurious interest rate than
under the State of New York or such other jurisdiction’s law, in any case after taking into

16

 

account, to the extent permitted by applicable law, any and all relevant payments or charges under
this Credit Agreement and any other Credit Documents executed in connection herewith, and any
available exemptions, exceptions and exclusions.

     “In-Transit Inventory” shall mean Inventory of a Credit Party which is in transit to
such Credit Party (a) aboard trucks or other transport vehicles within the United States or Canada
owned or leased by a Credit Party or by a common carrier that has delivered in favor of the
Administrative Agent an acknowledgement and lien waiver agreement in form and substance
satisfactory to the Administrative Agent or (b) at sea or by inland waterway to, or at a port in,
the United States or Canada so long as, with respect to Inventory in transit at sea or by inland
waterway, the applicable bill of lading shall run to the order of the Administrative Agent and
shall promptly be furnished to the applicable freight forwarder and, with respect to Inventory at a
port, the applicable freight forwarder shall have delivered in favor of the Administrative Agent a
Freight Forwarder Agreement in form and substance satisfactory to the Administrative Agent.

     “Indebtedness” shall mean, with respect to any Person, 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, or upon which interest payments are customarily
made, (c) all obligations of such Person under conditional sale or other title retention agreements
relating to property purchased by such Person (other than customary reservations or retentions of
title under agreements with suppliers entered into in the ordinary course of business), (d) all
obligations of such Person issued or assumed as the deferred purchase price of property or services
purchased by such Person (other than trade debt incurred in the ordinary course of business and due
within six months of the incurrence thereof) which would appear as liabilities on a balance sheet
of such Person, (e) all obligations of such Person under take-or-pay or similar arrangements or
under commodities agreements, (f) all Indebtedness of others secured by (or for which the holder of
such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on, or
payable out of the proceeds of production from, property owned or acquired by such Person, whether
or not the obligations secured thereby have been assumed, (g) all guaranties of such Person with
respect to Indebtedness of the type referred in this definition of another Person, (h) the
principal portion of all obligations of such Person under Capital Leases, (i) all obligations of
such Person under Hedging Agreements, (j) the maximum amount of all letters of credit issued or
bankers’ acceptances facilities created for the account of such Person and, without duplication,
all drafts drawn thereunder (to the extent unreimbursed), (k) all preferred Capital Stock issued by
such Person and required by the terms thereof to be redeemed, or for which mandatory sinking fund
payments are due, by a fixed date prior to 180 days following the Maturity Date, (l) the principal
portion of all obligations of such Person under off-balance sheet financing arrangements and (m)
the Indebtedness of any partnership or unincorporated joint venture in which such Person is a
general partner or a joint venturer in which such Person is legally obligated or has a reasonable
expectation of being liable with respect thereto.

     “Independent Accountant” shall mean a firm of independent public accountants of
nationally recognized standing selected by the Board of Directors of the Company, which is
“independent” as that term is defined in Rule 2-01 of Regulation S-X promulgated by the Securities
and Exchange Commission.

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     “Interest Payment Date” shall mean (a) as to any Base Rate Loan, the last Business Day
of each calendar month to occur while such Loan is outstanding, (b) as to any Eurodollar Loan
having an Interest Period of three months or less, the last day of such Interest Period, and (c) as
to any Eurodollar Loan having an Interest Period longer than three months, each day which is three
months after the first day of such Interest Period and the last day of such Interest Period.

     “Interest Period” shall mean, as to Eurodollar Loans, a period of one month, two
months, three months or six months, as selected by the Company, on behalf of the Borrowers,
commencing on the date of the borrowing (including continuations and conversions thereof);
provided, however, (i) if any Interest Period would end on a day which is not a
Business Day, such Interest Period shall be extended to the next succeeding Business Day (except
that where the next succeeding Business Day falls in the next succeeding calendar month, then on
the next preceding Business Day), (ii) no Interest Period shall extend beyond the Maturity Date,
and (iii) any Interest Period with respect to a Eurodollar Loan that begins on the last Business
Day of a calendar month (or on a day for which there is no numerically corresponding day in the
calendar month at the end of such Interest Period) shall end on the last Business Day of the
relevant calendar month at the end of such Interest Period.

     “Internal Revenue” shall mean the Internal Revenue Service and any successor agency.

     “Internal Revenue Code” or “IRC” shall mean the Internal Revenue Code of 1986,
as amended from time to time, and any successor statute thereto and all rules and regulations
promulgated thereunder.

     “Inventory” shall mean all of each Credit Party’s inventory, including without
limitation, (a) all raw materials, work in process, parts, components, assemblies, supplies and
materials used or consumed in such Credit Party’s business; (b) all goods, wares and merchandise,
finished or unfinished, held for sale or lease or leased or furnished or to be furnished under
contracts of service; and (c) all goods returned to or repossessed by such Credit Party.

     “Inventory Appraisal” shall mean an appraisal of the Inventory performed by an
appraiser selected by the Administrative Agent, in form and substance satisfactory to the
Administrative Agent.

     “Inventory Sublimit” shall mean the maximum allowable amount of Eligible
Inventory-based Revolving Loans made with respect to Eligible Inventory, which amount shall be
$100,000,000.

     “Investment” in any Person shall mean (a) the acquisition (whether for cash, property,
services, assumption of Indebtedness, securities or otherwise, but exclusive of the acquisition of
inventory, supplies, equipment and other property or assets used or consumed in the ordinary course
of business of the applicable Credit Party or any of its Subsidiaries and Consolidated Capital
Expenditures not otherwise prohibited hereunder) of assets, shares of Capital Stock, bonds, notes,
debentures, partnership interests, joint ventures or other ownership interests or other securities
of such Person, (b) any deposit (other than deposits constituting a Permitted Lien) with, or
advance, loan or other extension of credit (other than sales of inventory on credit

18

 

in the ordinary course of business and payable or dischargeable in accordance with customary trade
terms and sales on credit of the type described in clauses (c) or (d) of Section 9.3) to,
such Person or (c) any other capital contribution to or investment in such Person, including,
without limitation, any obligation incurred for the benefit of such Person. In determining the
aggregate amount of Investments outstanding at any particular time, (i) the amount of any
Investment represented by a guaranty shall be taken at not less than the maximum principal amount
of the obligations guaranteed and still outstanding; (ii) there shall be deducted in respect of
each such Investment any amount received as a return of capital (but only by repurchase,
redemption, retirement, repayment, liquidating dividend or liquidating distribution); (iii) there
shall not be deducted in respect of any Investment any amounts received as earnings on such
Investment, whether as dividends, interest or otherwise; and (iv) there shall not be deducted from
or added to the aggregate amount of Investments any decrease or increases, as the case may be, in
the market value thereof.

     “Issuing Bank” shall mean Wachovia.

     “Issuing Bank Fees” shall have the meaning given to such term in Section
4.5(b).

     “Landlord Agreement” shall mean a Landlord Lien Waiver Agreement, substantially in the
form of Exhibit D hereto (or such other form as shall be reasonably acceptable to the
Agent), between a Credit Party’s landlord and the Agent, acknowledging and agreeing, among other
things, (a) that such landlord does not have any Liens on any of the property of such Credit Party
and (b) to permit the Agent access to the property for the purposes of exercising its remedies
under the Security Documents.

     “Leases” shall mean leases with respect to any leased real property, together with any
leases of real property entered into by a Credit Party or any of its Subsidiaries after the date
hereof.

     “Lender” shall have the meaning given to such term in the preamble of this Credit
Agreement.

     “Lender Commitment Letter” shall mean, with respect to any Lender, the letter (or
other correspondence) to such Lender from the Agent notifying such Lender of its Revolving Credit
Commitment Percentage.

     “Lender Hedging Agreement” shall mean any Hedging Agreement between any Borrower or
other Credit Party and any Person (or affiliate of such Person) that was a Lender at the time it
entered into such Hedging Agreement whether or not such Person has ceased to be a Lender under the
Credit Agreement.

     “Lending Party” shall mean the Agent and each Lender.

     “Letter of Credit Committed Amount” shall mean the maximum aggregate amount of the
Letter of Credit Obligations that is permitted to be outstanding from time to time pursuant to
clause (a) of the proviso contained in Section 3.1, which is $10,000,000.

19

 

     “Letter of Credit Documents” shall mean, with respect to any Letter of Credit, such
Letter of Credit, any amendments thereto, any documents delivered in connection therewith, any
application therefor, and any agreements, instruments, guarantees or other documents (whether
general in application or applicable only to such Letter of Credit) governing or providing for (i)
the rights and obligations of the parties concerned or at risk or (ii) any collateral security for
such obligations.

     “Letter of Credit Fee” shall have the meaning given to such term in Section
4.5(a).

     “Letter of Credit Obligations” shall mean, at any time of determination, the sum of
(i) the aggregate undrawn amount of all Letters of Credit outstanding at such time, plus
(ii) the aggregate amount of all drawings under Letters of Credit for which the Issuing Bank has
not at such time been reimbursed, plus (iii) without duplication, the aggregate amount of
all payments made by each Lender to the Issuing Bank with respect to such Lender’s participation in
Letters of Credit as provided in Section 3.3 for which the Borrowers have not at such time
reimbursed the Lenders, whether by way of a Revolving Loan or otherwise.

     “Letters of Credit” shall mean all letters of credit (whether documentary or stand-by
and whether for the purchase of inventory, equipment or otherwise) issued by an Issuing Bank for
the account of the Borrowers pursuant to this Credit Agreement, and all amendments, renewals,
extensions or replacements thereof.

     “Leverage Ratio” shall mean, as of the last day of each month, the ratio of
Consolidated Funded Indebtedness as of such date to Consolidated EBITDA (computed for the twelve
consecutive months then ending).

     “Licensor Consent” shall mean a consent substantially in the form of Exhibit P
hereto (or such other form as shall be reasonably acceptable to the Agent) given by the licensor of
any intellectual property licensed to a Credit Party.

     “Lien(s)” shall mean any lien, claim, charge, pledge, security interest, deed of
trust, mortgage, or other encumbrance.

     “Loan” or “Loans” shall mean the Revolving Loans (or a portion of any
Revolving Loan), individually or collectively, as appropriate.

     “Lockbox” shall have the meaning given to such term in Section 2.4(b)(i).

     “Lockbox Account” shall have the meaning given to such term in Section
2.4(b)(i).

     “Lockbox Bank” shall have the meaning given to such term in Section 2.4(b)(i).

     “London Interbank Offered Rate” shall mean, with respect to any Eurodollar Loan for
the Interest Period applicable thereto, the rate of interest per annum (rounded upwards, if
necessary, to the nearest 1/100 of 1%) appearing on Telerate Page 3750 (or any successor page) as
the

20

 

London interbank offered rate for deposits in Dollars at approximately 11:00 A.M. (London time) two
(2) Business Days prior to the first day of such Interest Period for a term comparable to such
Interest Period; provided, however, if more than one rate is specified on Telerate
Page 3750, the applicable rate shall be the arithmetic mean of all such rates. If, for any reason,
such rate is not available, the term “London Interbank Offered Rate” shall mean, with
respect to any Eurodollar Loan for the Interest Period applicable thereto, the rate of interest per
annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on Reuters Screen LIBO
Page as the London interbank offered rate for deposits in Dollars at approximately 11:00 A.M.
(London time) two (2) Business Days prior to the first day of such Interest Period for a term
comparable to such Interest Period; provided, however, if more than one rate is
specified on Reuters Screen LIBO Page, the applicable rate shall be the arithmetic mean of all such
rates.

     “Material Adverse Change” shall mean a material adverse change in (a) the business,
operations, results of operations, assets, liabilities or condition (financial or otherwise) of (i)
the Credit Parties, taken as a whole, or (ii) Copperfield and its Subsidiaries, taken as a whole,
(b) the Collateral, (c) the Credit Parties’ ability to perform their respective obligations under
the Credit Documents, or (d) the rights and remedies of the Lenders hereunder.

     “Material Adverse Effect” shall mean a material adverse effect on (a) the business,
operations, results of operations, assets, liabilities or condition (financial or otherwise) of (i)
the Credit Parties, taken as a whole, or (ii) Copperfield and its Subsidiaries, taken as a whole,
(b) the Collateral, (c) the Credit Parties’ ability to perform their respective obligations under
the Credit Documents, or (d) the rights and remedies of the Lenders hereunder.

     “Material Contract” shall mean (a) any contract or other agreement, written or oral,
of any Credit Party or any of its Subsidiaries involving monetary liability of or to any such
Person in an amount in excess of $25,000,000 per annum and (b) any other contract, agreement,
permit or license of the Credit Parties or any of their Subsidiaries on which the business of the
Company and its Subsidiaries (taken as a whole) is substantially dependent.

     “Maturity Date” shall mean the fifth anniversary of the Closing Date.

     “Mortgagee Policies” shall mean ALTA mortgagee title insurance policies issued by the
Title Insurance Company.

     “Mortgaged Properties” shall mean the properties subject to the Mortgages.

     “Mortgages” shall mean the mortgages on owned Real Estate, and any leased Real Estate
designated in writing by the Agent in its sole discretion, granted by the Credit Parties to secure
the Obligations.

     “Multiemployer Plan” shall mean a “multiemployer plan” as defined in Section
4001(a)(3) of ERISA and (i) which is, or within the immediately preceding six (6) years was,
contributed to by any Credit Parties or any of their Subsidiaries or ERISA Affiliates or (ii) with
respect to which any Credit Parties or any of their Subsidiaries may incur any liability.

21

 

     “Net Cash Proceeds” shall mean the aggregate cash proceeds received by the Credit
Parties or any of their Subsidiaries in respect of any Asset Disposition, net of (a) direct costs
(including, without limitation, legal, accounting and investment banking fees, and sales
commissions) and (b) taxes paid or payable as a result thereof; it being understood that “Net Cash
Proceeds” shall include, without limitation, any cash received upon the sale or other disposition
of any non-cash consideration received by the Credit Parties or any of their Subsidiaries in any
Asset Disposition.

     “Note” or “Notes” shall mean the Revolving Notes (if any), individually or
collectively, as appropriate.

     “Notice of Borrowing” shall mean a notice in the form attached hereto as Exhibit
H.

     “Notice of Extension/Conversion” shall mean a notice substantially in the form of
Exhibit J.

     “Obligations” shall mean the Loans, any other loans and advances or extensions of
credit made or to be made by any Lender to any Borrower, or to others for any Borrower’s account in
each case pursuant to the terms and provisions of this Credit Agreement, together with interest
thereon (including interest which accrues after the commencement of any bankruptcy or similar case,
whether or not such post-petition interest is allowed in such case) and, including, without
limitation, any reimbursement obligation or indemnity of the Borrowers on account of Letters of
Credit and all other Letter of Credit Obligations and all indebtedness, fees, liabilities and
obligations which may at any time be owing by any Borrower to any Lender (or an Affiliate of a
Lender) or the Agent in each case pursuant to this Credit Agreement or any other Credit Document,
whether now in existence or incurred by a Borrower from time to time hereafter, whether unsecured
or secured by pledge, Lien upon or security interest in any of a Borrower’s assets or property or
the assets or property of any other Person, whether such indebtedness is absolute or contingent,
joint or several, matured or unmatured, direct or indirect and whether such Borrower is liable to
such Lender (or an Affiliate of a Lender) for such indebtedness as principal, surety, endorser,
guarantor or otherwise. Obligations shall also include any other indebtedness owing to any Lender
(or an Affiliate of a Lender) by any Borrower under this Credit Agreement and the other Credit
Documents, any Borrower’s liability to any Lender (or an Affiliate of a Lender) pursuant to this
Credit Agreement as maker or endorser of any promissory note or other instrument for the payment of
money, any Borrower’s liability to any Lender (or an Affiliate of a Lender) pursuant to this Credit
Agreement or any other Credit Document under any instrument of guaranty or indemnity, or arising
under any guaranty, endorsement or undertaking which any Lender (or an Affiliate of a Lender) may
make or issue to others for any such Borrower’s account pursuant to this Credit Agreement,
including any accommodation extended with respect to applications for Letters of Credit, all
liabilities and obligations arising under Lender Hedging Agreements owing from any Borrower or
another Credit Party to the Agent, any Lender, or any Affiliate of the Agent or any Lender (or any
Person that was a Lender or an affiliate of a Lender at the time such Lender Hedging Agreement was
entered into), permitted under Section 9.2, all liabilities and obligations now or
hereafter arising to the Agent, any Lender or any Affiliate of the Agent or any Lender from or in
connection with any Cash Management Products, and all obligations of the Guarantors to the Agent,
any Lender (or an Affiliate of the Agent or any Lender) arising under or in connection with the
Guaranty Agreement or any other

22

 

Credit Document, including, without limitation, the Guaranteed Obligations (as defined in the
Guaranty Agreement).

     “OFAC” shall mean the U.S. Department of the Treasury’s Office of Foreign Assets
Control.

     “Operative Documents” shall mean the Credit Documents, the Security Documents, any
employment contracts, the Senior Note Debt Documents (2004), the Senior Note Debt Documents (2007)
and the Acquisition Documents.

     “Other Taxes” shall have the meaning given to such term in Section 2.7(c).

     “Overadvance” shall mean, as of any date of determination, the amount, if any, by
which the outstanding principal balance of Revolving Loans and Letter of Credit Obligations exceeds
the Borrowing Base.

     “PBGC” shall mean the Pension Benefit Guaranty Corporation and any Person succeeding
to the functions thereof.

     “Permitted Indebtedness” shall mean:

     (i) Indebtedness to the Lenders with respect to the Revolving Loans, the Letters of
Credit or otherwise, pursuant to the Credit Documents;

     (ii) trade payables incurred in the ordinary course of the Credit Parties’ business;

     (iii) purchase money Indebtedness (including Capital Leases) hereafter incurred by the
Credit Parties or any of their Subsidiaries to finance the purchase of fixed assets
provided that (A) the total of all such Indebtedness for all such Persons taken
together shall not exceed an aggregate principal amount of $2,500,000 at any one time
outstanding (including any such Indebtedness referred to in clause (v) immediately below);
(B) such Indebtedness when incurred shall not exceed the purchase price of the asset(s)
financed; and (C) no such Indebtedness shall be refinanced for a principal amount in excess
of the principal balance outstanding thereon at the time of such refinancing;

     (iv) obligations of a Borrower or other Credit Party in respect of Hedging Agreements
entered into in order to manage existing or anticipated interest rate, exchange rate or
commodity risks and not for speculative purposes and otherwise in accordance with
Section 9.22;

     (v) Indebtedness described on Schedule 1.1C attached hereto and any
refinancings of such Indebtedness; provided that the aggregate principal amount of
such Indebtedness is not increased, the scheduled maturity dates of such Indebtedness are
not shortened and such refinancing is on terms and conditions no more restrictive than the
terms and conditions of the Indebtedness being refinanced;

23

 

     (vi) the Senior Note Debt (2004); and

     (vii) the Senior Note Debt (2007).

     “Permitted Investments” shall mean:

     (i) Cash Equivalents;

     (ii) interest-bearing demand or time deposits (including certificates of deposit) which
are insured by the Federal Deposit Insurance Corporation (“FDIC”) or a similar federal
insurance program; provided, however, that the Credit Parties may, in the ordinary course of
their respective businesses, maintain in their disbursement accounts from time to time
amounts in excess of then applicable FDIC or other program insurance limits;

     (iii) Investments existing on the Closing Date and set forth on Schedule 1.1D
attached hereto;

     (iv) advances to officers, directors and employees for expenses incurred or anticipated
to be incurred in the ordinary course;

     (v) loans and Investments in (A) the Credit Parties and (B) newly created Domestic
Subsidiaries, provided that the applicable requirements of Section 7.16 are
satisfied;

     (vi) investments (including debt obligations) received in connection with the
bankruptcy or reorganization of suppliers and customers and in settlement of delinquent
obligations of, and other disputes with, customers and suppliers arising in the ordinary
course of business;

     (vii) Hedging Agreements entered into by a Borrower or other Credit Party in order to
manage existing or anticipated interest rate, exchange rate or commodity risks and not for
speculative purposes and otherwise in accordance with Section 9.22; and

     (viii) such other Investments as the Agent may approve in its sole discretion.

     “Permitted Liens” shall mean

     (i) Liens granted to the Agent or the Lenders (or their Affiliates to secure Lender
Hedging Agreements) by the Credit Parties pursuant to any Credit Document;

     (ii) Liens listed on Schedule 1.1B;

     (iii) Liens on assets securing purchase money Indebtedness (including Capital Leases)
to the extent permitted under Section 9.2, provided that (A) any such Lien
attaches

24

 

to such assets concurrently with or within thirty (30) days after the acquisition thereof
and only to the assets to be acquired and (B) a description of the assets so acquired is
furnished to the Agent;

     (iv) Liens of warehousemen, mechanics, materialmen, workers, repairmen, fillers,
packagers, processors, common carriers, landlords and other similar Liens arising by
operation of law or otherwise, not waived in connection herewith, for amounts that are not
yet due and payable or which are being diligently contested in good faith by the relevant
Credit Party by appropriate proceedings, provided that in any such case an adequate
reserve is being maintained by such Credit Party for the payment of same;

     (v) attachment or judgment Liens individually or in the aggregate not in excess of
$1,000,000 (exclusive of (a) any amounts that are duly bonded to the satisfaction of the
Agent in its reasonable discretion or (b) any amount adequately covered by insurance as to
which the insurance company has acknowledged in writing its obligations for coverage);

     (vi) Liens for taxes, assessments or other governmental charges not yet due and payable
or which are being diligently contested in good faith by a Credit Party by appropriate
proceedings, provided that in any such case an adequate reserve is being maintained
by such Credit Party for the payment of same in accordance with GAAP;

     (vii) zoning ordinances, easements, covenants and other customary restrictions on the
use of real property and other title exceptions that do not interfere in any material
respect with the ordinary course of business;

     (viii) deposits or pledges to secure obligations under workmen’s compensation, social
security or similar laws, or under unemployment insurance; and

     (ix) deposits or pledges to secure bids, tenders, contracts (other than contracts for
the payment of money), leases, regulatory or statutory obligations, surety and appeal bonds
and other obligations of like nature arising in the ordinary course of business.

     “Person” shall mean any individual, sole proprietorship, partnership, joint venture,
limited liability company, trust, unincorporated organization, association, corporation,
institution, entity, party or government (including any division, agency or department thereof),
and, as applicable, the successors, heirs and assigns of each.

     “Plan” shall mean any employee benefit plan, program or arrangement, whether oral or
written, maintained or contributed to by any Credit Party or any of its Subsidiaries, or with
respect to which any Credit Party or any such Subsidiary may incur liability.

     “Pledge Agreement” shall mean the Amended and Restated Pledge Agreement, of even date
herewith, between the Agent and the relevant Credit Parties, in the form attached hereto as
Exhibit E.

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     “Pledged Collateral” shall have the meaning given to such term in the Pledge
Agreement.

     “Prime Rate” shall mean the rate which Wachovia announces from time to time as its
prime or base lending rate, as in effect from time to time. The Prime Rate is a reference rate and
does not necessarily represent the lowest or best rate actually charged to any customer. Wachovia
(and its affiliates) may make commercial loans or other loans at rates of interest at, above or
below the Prime Rate.

     “Processor” shall have the meaning given such term in the definition of Processor
Inventory.

     “Processor Inventory” shall mean Inventory of a Credit Party (other than
work-in-process) which is stored on property that is owned or leased by a filler, packer or
processor which has contracted with such Credit Party (each, a “Processor”) and (a) such
Credit Party shall have delivered to the Agent an Acknowledgment Agreement executed by such
Processor; (b) such Inventory is fully insured on terms acceptable to the Agent in the exercise of
its reasonable credit judgment; and (c) such Inventory is reported on, in the Borrowers’ monthly
collateral reports delivered pursuant to Section 7.1(e) hereof, as a separate item from
other Eligible Inventory.

     “Projections” shall have the meaning given to such term in Section 6.6.

     “Proprietary Rights” shall have the meaning given to such term in Section
6.17.

     “Purchase Agreement” shall mean that certain Equity Interests Purchase Agreement dated
as of March 11, 2007 by and among the Company, Spell Capital Partners Fund I, LP, DJR Fund, Inc.,
SFB Enterprises, Inc., Mary A. Kennedy Trust, Kevin Kennedy, Clarence Wilson, William Witsken, U.S.
Bancorp Equity Fund Capital, Inc., John A. Gambell and Ronald J. Herold.

     “Quarterly Average Excess Availability” shall mean, at any time, the average of Excess
Availability for each day of the immediately preceding calendar quarter (or, in the case of the
quarter in which the Closing Date occurs, for each day from the Closing Date through the end of
such quarter) as calculated by the Administrative Agent (which shall be conclusive absent manifest
error).

     “Real Estate” shall mean the real property owned or leased by the relevant Credit
Parties described in Schedule 6.19, as it may be updated from time to time pursuant to
Sections 7.9 and 7.23, together with all Structures thereon.

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

     “Reportable Event” shall mean any of the events described in Section 4043 of
ERISA and the regulations thereunder.

26

 

     “Required Lenders” shall mean, at any time, Lenders which are then in compliance with
their obligations hereunder (as determined by the Agent) and holding in the aggregate at least 51%
of (i) the Revolving Credit Commitments or (ii) if the Commitments have been terminated, the
outstanding Loans and participation interests (including the participation interests of the Issuing
Bank in any Letters of Credit).

     “Reserves” shall have the meaning given to such term in the definition of Borrowing
Base.

     “Restricted Payment” shall mean (i) any cash dividend or other cash distribution,
direct or indirect, on account of any shares of any class of Capital Stock of any Credit Party or
any of its Subsidiaries, as the case may be, now or hereafter outstanding, (ii) any redemption,
retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or
indirect, of any shares of any class of Capital Stock of any Credit Party or any of its
Subsidiaries now or hereafter outstanding by such Credit Party or Subsidiary, as the case may be,
except for any redemption, retirement, sinking funds or similar payment payable solely in such
shares of that class of stock or in any class of stock junior to that class, (iii) any cash payment
made to redeem, purchase, repurchase or retire, or to obtain the surrender of, any outstanding
warrants, options or other rights to acquire any shares of any class of Capital Stock of any Credit
Party or any of its Subsidiaries now or hereafter outstanding, or (iv) any payment to any Affiliate
of any Credit Party (including any consulting or management fees).

     “Revolving Credit Commitment” shall mean, with respect to each Lender, the commitment
of such Lender to make its portion of the Revolving Loans in a principal amount up to such Lender’s
Revolving Credit Commitment Percentage of the Revolving Credit Committed Amount.

     “Revolving Credit Commitment Percentage” shall mean, for any Lender, the percentage
identified as its Revolving Credit Commitment Percentage in its Lender Commitment Letter or in the
Assignment and Acceptance pursuant to which such Lender became a Lender hereunder or otherwise
communicated to the Lender by the Agent, as such percentage may be modified in connection with any
assignment made in accordance with the provisions of Section 14.6. The sum of Revolving
Credit Commitment Percentages of all Lenders shall equal one hundred percent (100%).

     “Revolving Credit Committed Amount” shall mean the aggregate revolving credit line
extended by the Lenders to the Borrowers for Revolving Loans and Letters of Credit pursuant to and
in accordance with the terms of this Credit Agreement, in an amount of up to $200,000,000, as such
revolving credit line may be reduced from time to time in accordance with Section 2.3(c).

     “Revolving Loans” shall mean loans and advances made to the Borrowers on a revolving
basis pursuant to Section 2.1, and includes Base Rate Loans and Eurodollar Loans.

     “Revolving Notes” shall mean promissory notes of the Borrowers to the Lenders that
request such notes pursuant to Section 2.1(c), substantially in the form of Exhibit
G.

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     “Sanctioned Country” shall mean a country subject to a sanctions program identified on
the list maintained by OFAC and available at
http://www.treas.gov/offices/eotffc/ofac/sanctions/index.html, or as otherwise published
from time to time.

     “Sanctioned Person” shall mean (a) a Person named on the list of “Specially Designated
Nationals and Blocked Persons” maintained by OFAC available at
http://www.treas.gov/offices/eotffc/ofac/sdn/index.html, or as otherwise published from
time to time, or (b) (i) an agency of the government of a Sanctioned Country, (ii) an organization
controlled by a Sanctioned Country, or (iii) a person resident in a Sanctioned Country, to the
extent subject to a sanctions program administered by OFAC.

     “SCC” shall mean Spell Capital Corporation, a Minnesota corporation.

     “Security Agreement” shall mean the Amended and Restated Security Agreement, of even
date herewith, between the Agent and the applicable Credit Parties (and such other Persons who may
from time to time become party thereto by joinder agreement), substantially in the form of
Exhibit F.

     “Security Documents” shall mean, collectively, the Pledge Agreement, the Security
Agreement, the Copperfield Entity Security Agreement, each Acknowledgment Agreement, each Deposit
Account Control Agreement, each Mortgage and any other document or agreement granting or
acknowledging a security interest in favor of the Agent to secure the Obligations.

     “Seller Release” shall have the meaning provided in the Purchase Agreement.

     “Senior Note Debt (2004)” shall mean the Indebtedness evidenced by the Senior Note
Debt Documents (2004).

     “Senior Note Debt (2007)” shall mean the Indebtedness evidenced by the Senior Note
Debt Documents (2007).

     “Senior Note Debt Documents (2004)” shall mean the Senior Notes (2004), the Senior
Note Indenture, and all other documents, agreements, instruments and certificates executed and
delivered in connection with the issuance of the Senior Notes (2004).

     “Senior Note Debt Documents (2007)” shall mean the Senior Notes (2007), the Senior
Note Indenture, and all other documents, agreements, instruments and certificates executed and
delivered in connection with the issuance of the Senior Notes (2007).

     “Senior Note Indenture” shall mean that certain Indenture, dated as of September 28,
2004, among the Company, the “Note Guarantors” which may from time to time become party thereto and
Deutsche Bank Trust Company Americas, as trustee, as in effect on the Closing Date and as
supplemented, amended or otherwise modified from time to time in accordance with the terms of this
Credit Agreement.

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     “Senior Notes (2004)” shall mean the Senior Notes due 2012 bearing interest at a rate
equal to 9.875 % per annum in the aggregate principal amount of $120,000,000 issued on September
28, 2004 by the Company.

     “Senior Notes (2007)” shall mean the Senior Notes due 2012 bearing interest at a rate
equal to 9.875% per annum in the aggregate principal amount of $120,000,000 issued on the Closing
Date by the Company.

     “Settlement Period” shall mean each week, or such lesser period or periods as the
Agent shall determine.

     “Solvency Certificate” shall mean an officer’s certificate of the Company prepared by
the chief financial officer or the chief executive officer of the Company as to the financial
condition, solvency and related matters of the Credit Parties, in each case on a pro forma basis
after giving effect to the initial borrowings under the Credit Documents and the transactions
contemplated by the Operative Documents to take place on the Closing Date, substantially in the
form of Exhibit N hereto.

     “Structures” shall mean all plants, offices, manufacturing facilities, warehouses,
administration buildings and related facilities of the Credit Parties located on the Real Estate
described on Schedule 6.19 attached hereto.

     “Subsidiary” shall mean, as to any Person, (a) any corporation more than 50% of whose
Capital Stock of any class or classes having by the terms thereof ordinary voting power to elect a
majority of the directors of such corporation (irrespective of whether or not at the time, any
class or classes of such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by such Person directly or indirectly through
Subsidiaries, (b) any partnership, association, joint venture or other entity in which such Person
directly or indirectly through Subsidiaries has more than a fifty percent (50%) interest in the
total capital, total income and/or total ownership interests of such entity at any time and (c) any
partnership in which such Person is a general partner. Unless otherwise qualified, all references
to a “Subsidiary” or to “Subsidiaries” in this Credit Agreement shall refer to a Subsidiary or
Subsidiaries of the Company.

     “Subsidiary Borrower” and “Subsidiary Borrowers” shall have the meaning given
to such terms in the preamble of this Credit Agreement.

     “Taxes” shall mean any federal, state, local or foreign income, sales, use, transfer,
payroll, personal, property, occupancy, franchise or other tax, levy, impost, fee, imposition,
assessment or similar charge, together with any interest or penalties thereon.

     “Termination Event” shall mean (i) a Reportable Event with respect to any Benefit Plan
or Multiemployer Plan; (ii) the withdrawal of any Credit Parties or any of their Subsidiaries or
ERISA Affiliates from a Benefit Plan during a plan year in which such entity was a “substantial
employer” as defined in Section 4001(a)(2) of ERISA; (iii) the providing of notice of intent to
terminate a Benefit Plan pursuant to Section 4041 of ERISA; (iv) the institution by the PBGC of

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proceedings to terminate a Benefit Plan or Multiemployer Plan; (v) any event or condition (a) which
might constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of
a trustee to administer, any Benefit Plan or Multiemployer Plan, or (b) that may result in
termination of a Multiemployer Plan pursuant to Section 4041A of ERISA; or (vi) the partial or
complete withdrawal within the meaning of Sections 4203 and 4205 of ERISA, of any Credit Parties or
any of their Subsidiaries or ERISA Affiliates from a Multiemployer Plan.

     “Title Insurance Company” shall mean Chicago Title Insurance Company.

     “Transition Amount” shall mean, (a) until such time as the Agent shall have received
satisfactory appraisals of the fixed assets of the Company, $0 and (b) on and after the date that
the Agent shall have received satisfactory appraisals of the fixed assets of the Company, an amount
equal to the lesser of (i) (A) the Transition Amount Advance Rate multiplied by (B) the net orderly
liquidation value or fair market value, as applicable, of the appraised fixed assets and (ii)
$25,000,000. If the Agent has not received satisfactory appraisals of the fixed assets of the
Company on or before the first anniversary of the Closing Date, the Transition Amount shall remain
at $0 through the Maturity Date. The Transition Amount shall be reduced (a) on the last day of
each fiscal quarter of the Company beginning on the last day of the fiscal quarter during which the
Transition Amount is determined and made available, by an amount to be determined by the Required
Lenders in their commercially reasonable judgment in consultation with the Company and (b) at the
time of any Asset Disposition by any Credit Party of Collateral, by an amount equal to the greater
of (i) the net cash proceeds of such Asset Disposition or (ii) an amount equal to the Transaction
Amount Advance Rate multiplied by the appraised value of such assets used to establish the
Transition Amount.

     “Transition Amount Advance Rate” shall mean an advance rate determined by the Required
Lenders in their commercially reasonable judgment in consultation with the Company.

     “UCC” shall mean the Uniform Commercial Code as in effect from time to time in the
State of New York.

     “UCP” shall mean The Uniform Customs and Practice for Documentary Credits, as
published as of the date of issue of any Letter of Credit by the International Chamber of Commerce
(the “UCP”).

     “Unfinanced Capital Expenditures” shall mean for any period Capital Expenditures made
during such period and not financed from the proceeds of Funded Indebtedness.

     “Unused Line Fee” shall mean the fee required to be paid to the Agent for the benefit
of the Lenders at the end of each calendar quarter as partial compensation for extending the
Revolving Credit Committed Amount to the Borrowers, and shall be determined by multiplying (i) the
positive difference, if any, between (A) the Revolving Credit Committed Amount in effect at such
time and (B) the average daily amount of Revolving Loans and Letter of Credit Obligations
outstanding during such calendar quarter by (ii) the Unused Line Percentage for the number of days
in said calendar quarter.

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     “Unused Line Percentage” shall mean 0.25%.

     “USA Patriot Act” shall mean the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001, as in
effect from time to time.

     “Voting Stock” shall mean, with respect to any Person, Capital Stock issued by such
Person the holders of which are ordinarily, in the absence of contingencies, entitled to vote for
the election of directors (or persons performing similar functions) of such Person, even though the
right so to vote has been suspended by the happening of such a contingency.

     “Wachovia” shall mean Wachovia Bank, National Association and its successors and
permitted assigns.

     “WCM” shall mean Wachovia Capital Markets, LLC and its successors and permitted
assigns.

     1.2 Accounting Terms and Determinations

     Unless otherwise defined or specified herein, all accounting terms shall be construed herein
and all accounting determinations for purposes of determining compliance with the financial
covenants in Article VIII hereof and otherwise to be made under this Credit Agreement shall
be made in accordance with GAAP applied on a basis consistent in all material respects with the
Financials. All financial statements required to be delivered hereunder from and after the Closing
Date and all financial records shall be maintained in accordance with GAAP. If GAAP shall change
from the basis used in preparing the Financials, the certificates required to be delivered pursuant
to Section 7.1 demonstrating compliance with the covenants contained herein shall include
calculations setting forth the adjustments necessary to demonstrate how the Credit Parties are in
compliance with the financial covenants based upon GAAP as in effect on the Closing Date. If the
Credit Parties shall change their method of inventory accounting, all calculations necessary to
determine compliance with the covenants contained herein shall be made as if such method of
inventory accounting had not been so changed.

     The Credit Parties shall deliver to the Agent and each Lender at the same time as the delivery
of any annual financial statements given in accordance with the provisions of Section 7.1,
(i) a description in reasonable detail of any material change in the application of accounting
principles employed in the preparation of such financial statements from those applied in the most
recently preceding annual financial statements and (ii) a reasonable estimate of the effect on the
financial statements on account of such changes in application.

     1.3 Other Definitional Terms.

     Terms not otherwise defined herein which are defined in the UCC shall have the meanings given
them in the UCC. The words “hereof”, “herein” and “hereunder” and words of similar import when
used in this Credit Agreement shall refer to the Credit Agreement as a whole and not to any
particular provision of this Credit Agreement, unless otherwise specifically

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provided. References in this Credit Agreement to “Articles”, “Sections”, “Schedules” or “Exhibits”
shall be to Articles, Sections, Schedules or Exhibits of or to this Credit Agreement unless
otherwise specifically provided. Any of the terms defined in Section 1.1 may, unless the
context otherwise requires, be used in the singular or plural depending on the reference.
“Include”, “includes” and “including” shall be deemed to be followed by “without limitation”
whether or not they are in fact followed by such words or words of like import. “Writing”,
“written” and comparable terms refer to printing, typing, computer disk, e-mail and other means of
reproducing words in a visible form. References to any agreement or contract are to such agreement
or contract as amended, restated, supplemented or otherwise modified from time to time in
accordance with the terms hereof and thereof. References to any Person include the successors and
permitted assigns of such Person. References “from” or “through” any date mean, unless otherwise
specified, “from and including” or “through and including”, respectively. References to any times
herein shall refer to Eastern Standard or Daylight Savings time, as applicable.

ARTICLE II

LOANS

     2.1 Revolving Loans.

     (a) Revolving Credit Commitment. Subject to the terms and conditions hereof
and in reliance upon the representations and warranties set forth herein, each of the
Lenders severally agrees to lend to the Borrowers at any time or from time to time on or
after the Closing Date and before the Maturity Date, such Lender’s Revolving Credit
Commitment Percentage of the Revolving Loans as may be requested or deemed requested by the
Borrowers.

     (b) Determination of Borrowing Base.

     (i) The Lenders agree, subject to the terms and conditions of this Credit
Agreement, from time to time, to make Revolving Loans to the Borrowers on a
revolving basis. The Revolving Loans, together with the Letter of Credit
Obligations, shall not in the aggregate exceed the lesser of (A) the Revolving
Credit Committed Amount then in effect and (B) the Borrowing Base.

     (ii) No Lender shall be obligated at any time to make available to the
Borrowers its Revolving Credit Commitment Percentage of any requested Revolving Loan
if such amount plus its Revolving Credit Commitment Percentage of all Revolving
Loans and its Revolving Credit Commitment Percentage of all Letter of Credit
Obligations would exceed such Lender’s Revolving Credit Commitment at such time.
The aggregate balance of Revolving Loans and the Letter of Credit Obligations shall
not at any time exceed the Revolving Credit Committed Amount. No Lender shall be
obligated to make available (except pursuant to and in accordance with Section
2.1(d)(vii), nor shall

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the Agent make available, any Revolving Loans to any of the Borrowers to the extent
such Revolving Loan when added to the then outstanding Revolving Loans and Letter of
Credit Obligations would cause the aggregate outstanding Revolving Loans and Letter
of Credit Obligations to exceed the Borrowing Base. The full amount of the
Revolving Loans to be disbursed on the Closing Date shall be disbursed as Base Rate
Loans.

     (c) Revolving Notes. If so requested by a Lender (at or at any after the
Closing Date), the obligations of the Borrowers to repay the Revolving Loans to such Lender
and to pay interest thereon shall be evidenced by a separate Revolving Note to such Lender,
with appropriate insertions. One Revolving Note shall be payable to the order of each
Lender which so requests a Revolving Note, and each such Revolving Note shall be in a
principal amount equal to such Lender’s Revolving Credit Commitment and shall represent the
obligations of the Borrowers to pay such Lender the amount of such Lender’s Revolving Credit
Commitment or, if less, the aggregate unpaid principal amount of all Revolving Loans made by
such Lender hereunder, plus interest accrued thereon, as set forth herein. The Borrowers
irrevocably authorize each Lender which has been issued a Revolving Note to make or cause to
be made appropriate notations on its Revolving Note, or on a record pertaining thereto,
reflecting Revolving Loans and repayments thereof. The outstanding amount of the Revolving
Loans set forth on such Lender’s Revolving Note or record shall be prima
facie evidence of the principal amount thereof owing and unpaid to such Lender, but
the failure to make such notation or record, or any error in such notation or record shall
not limit or otherwise affect the obligations of the Borrowers hereunder or under any
Revolving Note to make payments of principal of or interest on any Revolving Note when due.
Any of the foregoing to the contrary notwithstanding, any lack of a Lender’s request to be
issued a Revolving Note shall not, in any manner, diminish the Borrowers’ obligations to
repay the Revolving Loans made by such Lender, together with all other amounts owing to such
Lender by the Borrowers.

     (d) Borrowings under Revolving Notes.

     (i) Each request for borrowings hereunder shall be made by a Notice of Borrowing from
the Company on behalf of the Borrowers to the Agent (together with a completed Daily Loan
Activity Sheet), given not later than 11:00 A.M. (A) on the Business Day on which the
proposed borrowing is requested to be made for Revolving Loans that will be Base Rate Loans
and (B) three Business Days prior to the date of the requested borrowing of Revolving Loans
that will be Eurodollar Loans. Each Notice of Borrowing shall be given by either telephone
or telecopy, and confirmed in writing if by telephone, setting forth (1) the requested date
of such borrowing, (2) the aggregate amount of such requested borrowing, (3) whether such
Revolving Loans will be Base Rate Loans or the Eurodollar Rate Loans, and if appropriate,
the applicable Interest Period, (4) certification by the Company on behalf of the Borrowers
that they have complied in all material respects with Article V, all of which shall
be specified in such manner as is necessary to comply with all limitations on Revolving
Loans outstanding hereunder (including, without limitation, availability under the Borrowing
Base) and (5) the account at which such requested funds should be made available. Each
Notice of

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Borrowing shall be irrevocable by and binding on the Borrowers. The Borrowers shall be
entitled to borrow Revolving Loans in a minimum principal amount of $50,000 and integral
multiples of $10,000 in excess thereof (or the remaining amount of the Revolving Credit
Committed Amount, if less) and shall be entitled to borrow Base Rate Loans or Eurodollar
Loans, or a combination thereof, as the Borrowers may request; provided, that no
more than five (5) Eurodollar Loans shall be outstanding hereunder at any one time; and
provided, further, that Eurodollar Loans shall be in a minimum principal
amount of at least $5,000,000 and integral multiples of $1,000,000 in excess thereof.
Revolving Loans may be repaid and reborrowed in accordance with the provisions hereof.

     The Agent shall give to each Lender prompt notice (but in no event later than 2:00 P.M.
on the date of the Agent’s receipt of notice from the Borrowers) of each Notice of Borrowing
by telecopy, telex or cable (other than any Notice of Borrowing which will be funded by the
Agent in accordance with subsection (d)(ii) below). No later than 3:00 P.M. on the date on
which a borrowing is requested to be made pursuant to the applicable Notice of Borrowing,
each Lender will make available to the Agent at the address of the Agent set forth on the
signature pages hereto, in immediately available funds, its Revolving Credit Commitment
Percentage of such borrowing requested to be made (unless such funding is to be made by the
Agent in accordance with subsection (d)(ii) below). Unless the Agent shall have been
notified by any Lender prior to the date of borrowing that such Lender does not intend to
make available to the Agent its portion of the borrowing to be made on such date, the Agent
may assume that such Lender will make such amount available to the Agent as required above
and the Agent may, in reliance upon such assumption, make available the amount of the
borrowing to be provided by such Lender. Upon fulfillment of the conditions set forth in
Article V for such borrowing, the Agent will make such funds available to the
Borrowers at the account specified by the Borrowers in such Notice of Borrowing.

     (ii) Because the Borrowers anticipate requesting borrowings of Revolving Loans on a
daily basis and repaying Revolving Loans on a daily basis through the collection of Accounts
and the proceeds of other Collateral, resulting in the amount of outstanding Revolving Loans
fluctuating from day to day, in order to administer the Revolving Loans in an efficient
manner and to minimize the transfer of funds between the Agent and the Lenders, the Lenders
hereby instruct the Agent, and the Agent may (but is not obligated to) (A) make available,
on behalf of the Lenders, the full amount of all Revolving Loans requested by the Borrowers
not to exceed $10,000,000 in the aggregate at any one time outstanding without requiring
that the Borrowers give the Agent a Notice of Borrowing with respect to such borrowing
(provided, that the Borrower shall in any event furnish to the Agent a completed
Daily Loan Activity Sheet) and without giving each Lender prior notice of the proposed
borrowing, of such Lender’s Revolving Credit Commitment Percentage thereof and the other
matters covered by the Notice of Borrowing and (B) if the Agent has made any such amounts
available as provided in clause (A), upon repayment of Revolving Loans by the Borrowers,
apply such amounts repaid directly to the amounts made available by the Agent in accordance
with clause (A) and not yet settled as described below; provided that the Agent
shall not advance funds as described in clause (A) above if the Agent has actually received
prior to

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such borrowing (1) an officer’s certificate from the Company or any other Borrower pursuant
to and in accordance with Section 7.1(j) that a Default or Event of Default is in
existence or (2) a Notice of Borrowing from any Borrower wherein the certification provided
therein states that the conditions to the making of the requested Revolving Loans have not
been satisfied or (3) a written notice from the Required Lenders that the conditions to such
borrowing have not been satisfied, which officer’s certificate, Notice of Borrowing or
notice, in each case, shall not have been rescinded. If the Agent advances Revolving Loans
on behalf of the Lenders, as provided in the immediately preceding sentence, the amount of
outstanding Revolving Loans and each Lender’s Revolving Credit Commitment Percentage thereof
shall be computed weekly rather than daily and shall be adjusted upward or downward on the
basis of the amount of outstanding Revolving Loans as of 5:00 P.M. on the Business Day
immediately preceding the date of each computation; provided, however, that
the Agent retains the absolute right at any time or from time to time to make the foregoing
adjustments at intervals more frequent than weekly. The Agent shall deliver to each of the
Lenders after the end of each Settlement Period, a summary statement of the amount of
outstanding Revolving Loans for such period. If the summary statement is sent by the Agent
and received by the Lenders prior to 12:00 Noon on any Business Day each Lender shall make
the transfers described in the next succeeding sentence no later than 3:00 P.M. on the day
such summary statement was sent; and if such summary statement is sent by the Agent and
received by the Lenders after 12:00 Noon on any Business Day, each Lender shall make such
transfers no later than 3:00 P.M. on the next succeeding Business Day. If in any Settlement
Period, the amount of a Lender’s Revolving Credit Commitment Percentage of the Revolving
Loans is in excess of the amount of Revolving Loans actually funded by such Lender, such
Lender shall forthwith (but in no event later than the time set forth in the next preceding
sentence) transfer to the Agent by wire transfer in immediately available funds the amount
of such excess; and, on the other hand, if the amount of a Lender’s Revolving Credit
Commitment Percentage of the Revolving Loans in any Settlement Period is less than the
amount of Revolving Loans actually funded by such Lender, the Agent shall forthwith transfer
to such Lender by wire transfer in immediately available funds the amount of such
difference. The obligation of each of the Lenders to transfer such funds shall be
irrevocable and unconditional and without recourse to or warranty by the Agent. Each of the
Agent and the Lenders agree to mark their respective books and records at the end of each
Settlement Period to show at all times the dollar amount of their respective Revolving
Credit Commitment Percentages of the outstanding Revolving Loans. Because the Agent on
behalf of the Lenders may be advancing and/or may be repaid Revolving Loans prior to the
time when the Lenders will actually advance and/or be repaid Revolving Loans, interest with
respect to Revolving Loans shall be allocated by the Agent to each Lender (including the
Agent) in accordance with the amount of Revolving Loans actually advanced by and repaid to
each Lender (including the Agent) during each Settlement Period and shall accrue from and
including the date such Revolving Loans are advanced by the Agent to but excluding the date
such Revolving Loans are repaid by the Borrowers in accordance with Section 2.4 or
actually settled by the applicable Lender as described in this Section 2.1(d)(ii).
All such Revolving Loans under this Section 2.1(d)(ii) shall be made as Base Rate
Loans.

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     (iii) If the amounts described in subsection (d)(i) or (d)(ii) of this Section
2.1 are not in fact made available to the Agent by a Lender (such Lender being
hereinafter referred to as a “Defaulting Lender”) and the Agent has made such amount
available to the Borrowers, the Agent shall be entitled to recover such corresponding amount
on demand from such Defaulting Lender. If such Defaulting Lender does not pay such
corresponding amount forthwith upon the Agent’s demand therefor, the Agent shall promptly
notify the Borrowers and the Borrowers shall immediately (but in no event later than five
Business Days after such demand) pay such corresponding amount to the Agent. The Agent
shall also be entitled to recover from such Defaulting Lender and the Borrowers, (A)
interest on such corresponding amount in respect of each day from the date such
corresponding amount was made available by the Agent to the Borrowers to the date such
corresponding amount is recovered by the Agent, at a rate per annum equal to either (1) if
paid by such Defaulting Lender, the overnight Federal Funds Rate or (2) if paid by the
Borrowers, the then applicable rate of interest, calculated in accordance with Section
4.1, plus (B) in each case, an amount equal to any costs (including legal
expenses) and losses incurred as a result of the failure of such Defaulting Lender to
provide such amount as provided in this Credit Agreement. Nothing herein shall be deemed to
relieve any Lender from its obligation to fulfill its commitments hereunder or to prejudice
any rights which the Borrowers may have against any Lender as a result of any default by
such Lender hereunder, including, without limitation, the right of the Borrowers to seek
reimbursement from any Defaulting Lender for any amounts paid by the Borrowers under clause
(B) above on account of such Defaulting Lender’s default.

     (iv) The failure of any Lender to make the Revolving Loan to be made by it as part of
any borrowing shall not relieve any other Lender of its obligation, if any, hereunder to
make its Revolving Loan on the date of such borrowing, but no Lender shall be responsible
for the failure of any other Lender to make the Revolving Loan to be made by such other
Lender on the date of any borrowing.

     (v) Each Lender shall be entitled to earn interest at the then applicable rate of
interest, calculated in accordance with Article IV, on outstanding Revolving Loans
which it has funded to the Agent from the date such Lender funded such Revolving Loan to,
but excluding, the date on which such Lender is repaid with respect to such Revolving Loan.

     (vi) Notwithstanding the obligation of the Borrowers to send written confirmation of a
Notice of Borrowing made by telephone, in the event that the Agent agrees to accept a Notice
of Borrowing made by telephone, such telephonic Notice of Borrowing shall be binding on the
Borrowers whether or not written confirmation is sent by the Borrowers or requested by the
Agent. The Agent may act prior to the receipt of any requested written confirmation,
without any liability whatsoever, based upon telephonic notice believed by the Agent in good
faith to be from a Borrower or its agents. The Agent’s records of the terms of any
telephonic Notices of Borrowing shall be conclusive on the Borrowers in the absence of gross
negligence or willful misconduct on the part of the Agent in connection therewith.

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     (vii) Notwithstanding anything to the contrary contained elsewhere herein, and whether
or not a Default or Event of Default exists at the time, unless otherwise objected to by the
Required Lenders in writing, the Agent may in its discretion require all Lenders to honor
requests or deemed requests by the Borrowers for Revolving Loans at a time that an
Overadvance exists or which would result in an Overadvance and each Lender shall be
obligated to continue to make its pro rata share of Revolving Loans, up to a maximum amount
outstanding equal to its Revolving Credit Commitment, so long as such Overadvance is not
known by the Agent to exceed $5,000,000 and so long as such Overadvance is not outstanding
for more than ten (10) Business Days.

     2.2 [Intentionally Omitted]

     2.3 Optional and Mandatory Prepayments; Reduction of Revolving Credit Committed
Amount.

     (a) Voluntary Prepayments. The Borrowers shall have the right to prepay Loans
in whole or in part from time to time, but otherwise without premium or penalty;
provided, however, that (i) Loans that are Eurodollar Loans may only be
prepaid on three Business Days’ prior written notice to the Agent specifying the applicable
Loans to be prepaid; (ii) any prepayment of Loans that are Eurodollar Loans will be subject
to Section 4.10; and (iii) each such partial prepayment of Loans shall be in a
minimum principal amount of $50,000 and integral multiples of $10,000. Subject to the
foregoing terms, amounts prepaid under this Section 2.3(a) shall be applied to the
Revolving Loans. Prepayments on Revolving Loans shall be applied first to Base Rate Loans
and then to Eurodollar Loans in direct order of Interest Period maturities.

     (b) Mandatory Prepayments.

     (i) Revolving Credit Committed Amount. If at any time, the sum of the
aggregate principal amount of outstanding Revolving Loans plus the Letter of
Credit Obligations outstanding shall exceed the lesser of (A) the Revolving Credit
Committed Amount and (B) the Borrowing Base, subject to any Overadvance permitted to
be outstanding under Section 2.1(d)(vii), the Borrowers immediately shall pay to the
Agent, for the ratable account of the Lenders, an amount sufficient to eliminate
such excess.

     (ii) Casualty Loss. To the extent of cash proceeds received in
connection with a Casualty Loss, the Borrowers shall prepay the Loans in an amount
equal to one hundred percent (100%) of such cash proceeds if the Agent shall have
elected to apply the proceeds realized from such Casualty Loss to the prepayment of
the Loans (such prepayment to be applied as set forth in clause (iv) below).

     (iii) Asset Dispositions. Promptly and in any event within five (5)
days following the occurrence of any Asset Disposition, the Borrowers shall prepay
the Loans (with a corresponding permanent reduction in the Revolving Credit
Commitment) in an aggregate amount equal to the Net Cash Proceeds of the related

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Asset Disposition. Such prepayment shall be applied as set forth in clause (iv)
below.

     (iv) Application of Mandatory Prepayments. All amounts required to be
paid pursuant to this Section 2.3(b) shall be applied to reduce the
Revolving Loans, (after all Revolving Loans have been repaid) to a cash collateral
account held by the Agent in respect of Letter of Credit Obligations (in an amount
equal to 105% of the aggregate amount thereof) and (after all Revolving Loans have
been repaid and all Letter of Credit Obligations have been cash collateralized) to a
cash collateral account held by the Agent in respect of Current Derivative Exposure
under Lender Hedging Agreements (in an amount equal to 105% of the aggregate amount
thereof). Within the parameters of the applications set forth above for Revolving
Loans, prepayments shall be applied first to Base Rate Loans and then to Eurodollar
Loans in direct order of Interest Period maturities. All prepayments under this
Section 2.3(b) shall be subject to Section 4.10.

     (c) Voluntary Reductions of Revolving Credit Committed Amount. The Borrowers
may from time to time permanently reduce or terminate the Revolving Credit Committed Amount
in whole or in part (in minimum aggregate amounts of $5,000,000 or in integral multiples of
$5,000,000 in excess thereof (or, if less, the full remaining amount of the then applicable
Revolving Credit Committed Amount)) upon three (3) Business Days’ prior written notice to
the Agent; provided, however, no such termination or reduction shall be made
which would cause the aggregate principal amount of outstanding Revolving Loans plus
Letter of Credit Obligations outstanding to exceed the lesser of (A) the Revolving Credit
Committed Amount and (B) the Borrowing Base, unless, concurrently with such termination or
reduction, the Borrowers make a mandatory prepayment in accordance with the provisions of
Section 2.3(b)(i). The Agent shall promptly notify each affected Lender of receipt
by the Agent of any notice from the Borrowers pursuant to this Section 2.3(c).

     (d) Maturity Date. The Revolving Credit Commitment of the Lenders and the
Letter of Credit Commitment of the Issuing Bank shall automatically terminate on the
Maturity Date.

     (e) General. The Borrowers shall pay to the Agent for the account of the
Lenders in accordance with the terms of Section 4.3, on the date of each termination
or reduction of the Revolving Credit Committed Amount, the Unused Line Fee accrued through
the date of such termination or reduction on the amount of the Revolving Credit Committed
Amount so terminated or reduced.

     (f) Hedging Obligations Unaffected. Any prepayment made pursuant to this
Section 2.3 shall not affect any Borrower’s or other Credit Party’s obligation to
continue to make payments under any Lender Hedging Agreement, which shall remain in full
force and effect notwithstanding such prepayment, subject to the terms of such Lender
Hedging Agreement.

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     2.4 Payments and Computations.

     (a) The Borrowers shall make each payment hereunder and under the Notes not later than
2:00 P.M. on the day when due (unless such payments are otherwise paid by the Agent from
amounts in the Cash Concentration Account as provided in Section 2.4(b) below)).
Payments made by the Borrowers shall be in Dollars to the Agent at its address referred to
in Section 14.5 in immediately available funds without deduction, withholding,
setoff or counterclaim. Payments made with respect to the Revolving Loans shall be applied
to repay Revolving Loans consisting of Base Rate Loans first and then Revolving Loans
consisting of Eurodollar Loans. As soon as practicable after the Agent receives payment
from the Borrowers, but in no event later than one Business Day after such payment has been
made, subject to Section 2.1(d)(ii), the Agent will cause to be distributed like
funds relating to the payment of principal, interest, or Fees (other than amounts payable to
the Agent to reimburse the Agent and the Issuing Bank for fees and expenses payable solely
to them pursuant to Article IV) or expenses payable to the Agent and the Lenders in
accordance with Section 14.8 ratably to the Lenders, and like funds relating to the
payment of any other amounts payable to such Lender. The Borrowers’ obligations to the
Lenders with respect to such payments shall be discharged by making such payments to the
Agent pursuant to this Section 2.4(a) or if not timely paid or any Event of Default
then exists, may be added to the principal amount of the Revolving Loans outstanding.

     (b) Unless a Cash Management Event (as defined hereinafter) shall have occurred and be
continuing, the Credit Parties shall be permitted to receive directly for their own account
all payments or other remittances of Accounts of the Credit Parties and other proceeds of
the Collateral. Upon the occurrence and during the continuance of a Cash Management Event,
the Agent may, and at the direction of the Required Lenders shall, give to the Credit
Parties and the Lockbox Banks (as defined hereinafter) a written payment direction notice (a
“Payment Direction Notice”) (which notice in the case of an Event of Default
described in Section 11.1(f) shall be deemed given to the Credit Parties without any
further act by the Agent or any Lender) directing that:

     (i) The Credit Parties, individually or through the Company, shall establish
and shall maintain one or more lockboxes (each a “Lockbox”) with financial
institutions, including, without limitation, Wachovia, selected by the Company and
reasonably acceptable to the Agent (each a “Lockbox Bank”) and shall
instruct all account debtors on the Accounts of each Credit Party to remit all
payments to its respective Lockboxes. All amounts received by the Credit Parties
from any account debtor, in addition to all other cash received from any other
source (including but not limited to proceeds from asset sales and judgments), shall
be promptly deposited into an account which is maintained at a Lockbox Bank and
which is subject to a Deposit Account Control Agreement in favor of the Agent (each
such account, a “Lockbox Account”) or into the Cash Concentration Account.
The foregoing notwithstanding, unless the Agent otherwise requires, no Deposit
Account Control Agreement shall be required with

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respect to any Lockbox Account maintained with the Agent, so long as the Agent
has “control” (as such term is used in Article 9 of the UCC) over such account.

     (ii) All receipts held in the Lockboxes shall be remitted daily to the
appropriate Lockbox Account. All funds deposited into the Lockbox Accounts on any
Business Day shall be transferred to the Cash Concentration Account. All good funds
deposited on any Business Day to the Cash Concentration Account shall be applied by
the Agent on the following Business Day to reduce the then outstanding balance of
the Revolving Loans and to pay accrued interest thereon and to pay any other
outstanding Obligations which are then due and payable hereunder; provided that for
the purpose of determining the availability of Revolving Loans hereunder, such funds
deposited into the Cash Concentration Account shall be deemed to have reduced the
outstanding Revolving Loans on the Business Day such funds were deposited into such
account. All amounts received directly by the Credit Parties from any account
debtor, in addition to all other cash received from any other source (including,
without limitation, proceeds from asset sales and judgments), shall be held in trust
by the Credit Parties and promptly deposited into a Lockbox Account or, if made by
wire transfer, directly to the Cash Concentration Account.

     (iii) All funds deposited into the Cash Concentration Account shall immediately
become the property of the Agent and the Credit Parties shall obtain the agreement
by the Lockbox Banks to waive any offset rights against the funds so deposited. The
Agent assumes no responsibility for the Lockbox arrangements, including without
limitation, any claim of accord and satisfaction or release with respect to deposits
accepted by the Lockbox Banks thereunder.

     (iv) The Credit Parties may close Lockboxes only with the prior written consent
of the Agent and subject to the terms and conditions set forth in any applicable
Deposit Account Control Agreement. The Credit Parties may open new Lockboxes and
Lockbox Accounts, subject to such Lockbox Account’s being subject to a Deposit
Account Control Agreement as contemplated above.

     (v) No Credit Party shall direct any account debtor to submit payment on any
Account to any address or location other than to a Lockbox. No collections from any
Account shall be deposited into any account other than a Lockbox Account or the Cash
Concentration Account.

     (vi) At such time as (A) the Excess Availability Event giving rise to a Cash
Management Event shall no longer exist for a period of ten (10) consecutive Business
Days or (B) the Event of Default giving rise to a Cash Management Event shall have
been cured or waived, the Agent shall give to the Lockbox Banks a notice rescinding
any Payment Direction Notice delivered in connection with such Cash Management
Event, and each Borrower may and will enforce, collect and receive all amounts owing
on the Accounts and other Collateral, for

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the benefit, and on behalf, of the Lenders, but at the Borrowers’ sole expense in
accordance with the provisions of this Section 2.4(b).

     (c) The Borrowers hereby authorize each Lender to charge from time to time against any
or all of the Borrowers’ accounts with such Lender any of the Obligations which are then due
and payable. Each Lender receiving any payment as a result of charging any such account
shall promptly notify the Agent thereof and make such arrangements as the Agent shall
request to share the benefit thereof in accordance with Section 2.8.

     (d) Except as otherwise provided herein with respect to Eurodollar Loans, any payments
falling due under this Credit Agreement on a day other than a Business Day shall be due and
payable on the next succeeding Business Day and shall accrue interest at the applicable
interest rate provided for in this Credit Agreement to but excluding such Business Day.
Except as otherwise provided herein, computation of interest and fees hereunder shall be
made on the basis of actual number of days elapsed over a year of 360 days. Interest on
Base Rate Loans bearing interest based on the Prime Rate shall be calculated on the basis of
a year of 365 (or 366, if applicable) days.

     2.5 Maintenance of Account.

     The Agent shall maintain an account on its books in the name of the Borrowers in which the
Borrowers will be charged with all loans and advances made by the Lenders to the Borrowers or for
the Borrowers’ account, including the Revolving Loans, the Letter of Credit Obligations and any
other Obligations, including any and all costs, expenses and reasonable attorney’s fees which the
Agent may incur, including, without limitation, in connection with the exercise by or for the
Lenders of any of the rights or powers herein conferred upon the Agent (other than in connection
with any assignments or participations by any Lender) or in the prosecution or defense of any
action or proceeding by or against any Borrower or the Lenders concerning any matter arising out
of, connected with, or relating to this Credit Agreement or the Accounts, or any Obligations owing
to the Lenders by any Borrower. The Borrowers will be credited in accordance with Section
2.4(b)(ii)(B) above, with all amounts received by the Lenders from the Borrowers or from others
for the Borrowers’ account, including, as above set forth, all amounts received by the Agent in
payment of Accounts. In no event shall prior recourse to any Accounts or other Collateral be a
prerequisite to the Agent’s right to demand payment of any Obligation upon its maturity. Further,
it is understood that the Agent shall have no obligation whatsoever to perform in any respect any
of the Borrowers’ contracts or obligations relating to the Accounts.

     2.6 Statement of Account

     Within fifteen (15) days after the end of each month the Agent shall send the Borrowers a
statement showing the accounting for the charges, loans, advances and other transactions occurring
between the Lenders and the Borrowers during that month. The monthly statements shall be deemed
correct and binding upon the Borrowers and shall constitute an account stated between the Borrowers
and the Lenders unless the Agent receives a written statement of the Borrowers’ exceptions within
thirty (30) days after same is mailed to the Borrowers.

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     2.7 Taxes.

     (a) All payments made by the Borrowers hereunder or under any Note will be, except as
provided in Section 2.7(b), made free and clear of, and without deduction or
withholding for, any present or future taxes, levies, imposts, duties, fees, assessments or
other charges of whatever nature now or hereafter imposed by any Governmental Authority or
by any political subdivision or taxing authority thereof or therein with respect to such
payments (but excluding any tax imposed on or measured by the net income or profits of a
Lender pursuant to the laws of the jurisdiction in which it is organized or the jurisdiction
in which the principal office or applicable lending office of such Lender is located or any
subdivision thereof or therein (the “Excluded Taxes”)) and all interest, penalties
or similar liabilities with respect thereto (all such non-excluded taxes, levies, imposts,
duties, fees, assessments or other charges being referred to collectively as “Payment
Taxes”). If any Payment Taxes are so levied or imposed, the Borrowers jointly and
severally agree to pay the full amount of such Payment Taxes, and such additional amounts as
may be necessary so that every payment of all amounts due under this Credit Agreement or any
other Credit Document, after withholding or deduction for or on account of any Payment
Taxes, will not be less than the amount provided for herein or therein. The Borrowers
jointly and severally agree to indemnify and hold harmless each Lender, and reimburse such
Lender upon its written request, for the amount of any Payment Taxes so levied or imposed
and paid by such Lender.

     (b) Each Foreign Lender agrees to deliver to the Borrowers and the Agent on or prior to
the Closing Date, or in the case of a Lender that is an assignee or transferee of an
interest under this Credit Agreement pursuant to Section 14.6(c) (unless the
respective Lender was already a Lender hereunder immediately prior to such assignment or
transfer), on the date of such assignment or transfer to such Foreign Lender, two accurate
and complete original signed copies of Internal Revenue Service Form W-8 BEN, W-8 ECI or W-8
IMY, as applicable (or successor forms) certifying such Foreign Lender’s entitlement to a
complete exemption from United States withholding tax with respect to payments to be made
under this Credit Agreement and under any Note. In addition, each Foreign Lender agrees
that it will deliver updated versions of the foregoing, as applicable, whenever the previous
certification has become obsolete or inaccurate in any material respect, together with such
other forms as may be required in order to confirm or establish the entitlement of such
Foreign Lender to a continued exemption from or reduction in United States withholding tax
with respect to payments under this Agreement and any Note. Notwithstanding anything to the
contrary contained in Section 2.7(a), but subject to the immediately succeeding
sentence, (x) each Borrower shall be entitled, to the extent it is required to do so by law,
to deduct or withhold Payment Taxes imposed by the United States (or any political
subdivision or taxing authority thereof or therein) from interest, fees or other amounts
payable hereunder for the account of any Foreign Lender to the extent that such Foreign
Lender has not provided to the Borrowers U.S. Internal Revenue Service Forms that establish
a complete exemption from such deduction or withholding and (y) the Borrowers shall not be
obligated pursuant to Section 2.7(a) to gross-up payments to be made to a Foreign
Lender in respect of Payment Taxes

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imposed by the United States if such Foreign Lender has not provided to the Borrowers the
Internal Revenue Service Forms required to be provided to the Borrowers pursuant to this
Section 2.7(b). Notwithstanding anything to the contrary contained in the preceding
sentence or elsewhere in this Section 2.7, the Borrowers jointly and severally agree
to pay additional amounts and to indemnify each Lender in the manner set forth in
Section 2.7(a) (without regard to the identity of the jurisdiction requiring the
deduction or withholding) in respect of any amounts deducted or withheld by it as described
in the immediately preceding sentence as a result of any changes after the Closing Date in
any applicable law, treaty, governmental rule, regulation, guideline or order, or in the
interpretation thereof, relating to the deducting or withholding of Payment Taxes.

     (c) Each Lender agrees to use reasonable efforts (including reasonable efforts to
change its lending office) to avoid or to minimize any amounts which might otherwise be
payable pursuant to this Section 2.7; provided, however, that such
efforts shall not cause the imposition on such Lender of any additional costs or legal or
regulatory burdens deemed by such Lender in its sole discretion to be material.

     (d) If the Borrowers pay any additional amount pursuant to this Section 2.7
with respect to a Lender, such Lender shall use reasonable efforts to obtain a refund of tax
or credit against its tax liabilities on account of such payment; provided that such
Lender shall have no obligation to use such reasonable efforts if either (i) it is in an
excess foreign tax credit position or (ii) it believes in good faith, in its sole
discretion, that claiming a refund or credit would cause adverse tax consequences to it. In
the event that such Lender receives such a refund or credit, such Lender shall pay to the
Borrowers an amount that such Lender reasonably determines is equal to the net tax benefit
obtained by such Lender as a result of such payment by the Borrowers. In the event that no
refund or credit is obtained with respect to the Borrowers’ payments to such Lender pursuant
to this Section 2.7, then such Lender shall upon request provide a certification
that such Lender has not received a refund or credit for such payments. Nothing contained
in this Section 2.7 shall require a Lender to disclose or detail the basis of its
calculation of the amount of any tax benefit or any other amount or the basis of its
determination referred to in the proviso to the first sentence of this Section
2.7(a) to the Borrowers or any other party.

     (e) In addition, the Borrowers agree to pay any present or future stamp, documentary,
privilege, intangible or similar Taxes or any other excise or property Taxes, charges or
similar levies that arise at any time or from time to time (other than Excluded Taxes) (i)
from any payment made under any and all Credit Documents, (ii) from the transfer of the
rights of any Lender under any Credit Documents to any other Lender or Lenders or (iii) from
the execution or delivery by any Borrower of, or from the filing or recording or maintenance
of, or otherwise with respect to, any and all Credit Documents (hereinafter referred to as
“Other Taxes”).

     (f) The Borrowers will indemnify each Lender and the Agent for the full amount of
Payment Taxes (including, without limitation and without duplication, any Payment Taxes
imposed by any jurisdiction on amounts payable under this Section 2.7), subject to
(i) the exclusion set out in the first sentence of Section 2.7(a), and (ii) the

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provisions of Section 2.7(b), and will indemnify each Lender and the Agent for
the full amount of Other Taxes (including, without limitation and without duplication, any
Payment Taxes imposed by any jurisdiction on amounts payable under this Section 2.7)
paid by such Lender or the Agent (on its own behalf or on behalf of any Lender), as the case
may be, in respect of payments made or to be made hereunder, and any liability (including
penalties, interest and expenses) arising solely therefrom or with respect thereto, whether
or not such Payment Taxes or Other Taxes were correctly or legally asserted. Payment of
this indemnification shall be made within thirty (30) days from the date such Lender or the
Agent, as the case may be, makes written demand therefor.

     (g) Within thirty (30) days after the date of any payment of Payment Taxes or Other
Taxes, the applicable Borrower shall furnish to the Agent, at its address referred to in
Section 14.5, the original or certified copy of a receipt evidencing payment
thereof.

     (h) Without prejudice to the survival of any other agreement of the Borrowers
hereunder, the agreements and obligations of the Borrowers contained in this Section
2.7 shall survive the payment in full of all Obligations hereunder and under the Notes.

     2.8 Sharing of Payments.

     If any Lender shall obtain any payment (whether voluntary, involuntary, through the exercise
of any right of setoff or otherwise) on account of the Loans made by it in excess of its pro rata
share of such payment as provided in this Credit Agreement or its participation in Letters of
Credit in excess of its pro rata share of its participation therein as provided for in this Credit
Agreement, such Lender shall forthwith purchase from the other Lenders such participations in the
Loans made by them or in their participation in Letters of Credit as shall be necessary to cause
such purchasing Lender to share the excess payment accruing to all Lenders in accordance with their
respective ratable shares as provided for in this Credit Agreement; provided,
however, that if all or any portion of such excess is thereafter recovered from such
purchasing Lender, such purchase from each Lender shall be rescinded and each such Lender shall
repay to the purchasing Lender the purchase price to the extent of such recovery together with an
amount equal to such Lender’s ratable share (according to the proportion of (i) the amount of such
Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) or
any interest or other amount paid or payable by the purchasing Lender in respect to the total
amount so recovered. The Borrowers agree that any Lender so purchasing a participation from
another Lender pursuant to this Section 2.8 may, to the fullest extent permitted by law,
exercise all of its rights of payment (including the right of setoff) with respect to such
participation as fully as if such Lender were the direct creditor of the Borrowers in the amount of
such participation.

     2.9 Allocation of Payments; Pro Rata Treatment.

     (a) Allocation of Payments Prior to Event of Default; Payments Generally. Each
borrowing of Revolving Loans and any reduction of the Revolving Credit Commitments shall be
made pro rata according to the respective Revolving Credit Commitment
Percentages of the Lenders. Each payment under this Agreement or any

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Note shall be applied, first, to any Fees then due and owing pursuant to Article
IV, second, to interest then due and owing in respect of the Loans and, third, to
principal then due and owing hereunder and under the Loans. Each payment on account of any
Fees pursuant to Section Article IV shall be made pro rata in
accordance with the respective amounts due and owing (except the Issuing Bank Fees which
shall be payable solely to the Issuing Bank). Each payment (other than prepayments) by the
Borrower on account of principal of and interest on the Loans shall be allocated pro
rata among the Lenders in accordance with the respective principal amounts of their
outstanding Loans. Payments made pursuant to Section 4.9 shall be applied in
accordance with such Section. Each voluntary and mandatory prepayment on account of
principal of the Loans shall be applied in accordance with Section 2.3(a) or
(b), as applicable.

     (b) Allocation of Payments After Event of Default and Collateral Proceeds.
Notwithstanding any other provisions of this Credit Agreement or any other Credit Document
to the contrary, after the occurrence and during the continuance of an Event of Default, all
amounts collected or received by the Agent or any Lender on account of the Obligations
(whether in an insolvency or bankruptcy case or proceeding or otherwise) or any other
amounts outstanding under any of the Credit Documents or in respect of the Collateral shall
be paid over or delivered as follows:

     FIRST, to the payment of all reasonable out-of-pocket costs and expenses
(including without limitation reasonable attorneys’ fees) of the Agent in connection
with enforcing the rights of the Lenders under the Credit Documents, any protective
advances made by the Agent with respect to the Collateral under or pursuant to the
terms of the Security Documents and all liabilities and obligations now or hereafter
arising from or in connection with any Cash Management Products provided by the
Agent;

     SECOND, to payment of any fees owed to the Agent or an Issuing Bank hereunder
or under any other Credit Document;

     THIRD, to the payment of all reasonable out-of-pocket costs and expenses,
(including, without limitation, reasonable attorneys’ fees) of each of the Lenders
in connection with enforcing its rights under the Credit Documents;

     FOURTH, to the payment of all Obligations consisting of accrued fees and
interest payable to the Lenders hereunder, and including with respect to any Lender
Hedging Agreement, to the extent such Lender Hedging Agreement is permitted by this
Agreement and to the extent that the Agent has established a reserve therefor, any
fees, premiums and scheduled periodic payments due under such Lender Hedging
Agreement and any interest accrued thereon;

     FIFTH, to the payment of the outstanding principal amount of the Loans and to
the payment or cash collateralization of the outstanding Letters of Credit
Obligations (in an amount equal to 105% of the aggregate amount thereof) and cash
collateralization of Current Derivative Exposure under Lender Hedging Agreements,

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pro rata, as set forth below and including with respect to any Lender Hedging
Agreement, to the extent such Lender Hedging Agreement is permitted by this
Agreement and to the extent that the Agent has established a reserve therefor, any
breakage, termination or other payments due under such Lender Hedging Agreement and
any interest accrued thereon;

     SIXTH, to all liabilities and obligations now or hereafter arising from or in
connection with any Cash Management Products provided by the Lenders (other than the
Administrative Agent);

     SEVENTH, to all other Obligations which shall have become due and payable under
the Credit Documents and not repaid pursuant to clauses “FIRST” through “SIXTH”
above; and

     EIGHTH, to the payment of the surplus, if any, to whoever may be lawfully
entitled to receive such surplus.

     In carrying out the foregoing, (a) amounts received shall be applied in the numerical order
provided until exhausted prior to application to the next succeeding category; (b) each of the
Lenders shall receive an amount equal to its pro rata share (based on the proportion that its then
outstanding Revolving Loans, Letters of Credit Obligations and obligations outstanding under the
Lender Hedging Agreements permitted by this Agreement bears to the aggregate then outstanding
Revolving Loans, Letters of Credit Obligations, and obligations outstanding under the Lender
Hedging Agreements) of amounts available to be applied pursuant to clauses “THIRD”, “FOURTH,”
“FIFTH,” “SIXTH”, and “SEVENTH” above; (c) to the extent that any amounts available for
distribution pursuant to clause “FIFTH” above are attributable to the issued but undrawn amount of
outstanding Letters of Credit, such amounts shall be held by the Agent in a cash collateral account
(which account shall be an interest bearing checking account) and applied (x) first, to reimburse
the Issuing Bank from time to time for any drawings under such Letters of Credit and (y) then,
following the expiration of all Letters of Credit, to all other obligations of the types described
in clause “SEVENTH” above in the manner provided in this Section 2.9 and in the Security
Documents.

     2.10 Extensions and Conversions.

     Subject to the terms of Article V, the Borrowers shall have the option, on any
Business Day, to extend existing Eurodollar Loans into a subsequent permissible Interest Period, to
convert Base Rate Loans into Eurodollar Loans, or to convert Eurodollar Loans into Base Rate Loans;
provided, however, that (i) except as provided in Section 4.10, Eurodollar
Loans may be converted into Base Rate Loans only on the last day of the Interest Period applicable
thereto, (ii) Eurodollar Loans may be extended, and Base Rate Loans may be converted into
Eurodollar Loans, only if no Event of Default is in existence on the date of extension or
conversion, (iii) Loans extended as, or converted into, Eurodollar Loans shall be subject to the
terms of the definition of “Interest Period” and shall be in such minimum amounts as
provided in Section 2.1(d)(i), and (iv) no more than five (5) separate Eurodollar Loans
shall be outstanding hereunder at any time. Each such extension or conversion shall be effected by
the Borrowers by giving a

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written Notice of Extension/Conversion (or telephone notice promptly confirmed in writing) to the
Agent prior to 11:00 A.M. on the Business Day of, in the case of the conversion of a Eurodollar
Loan into a Base Rate Loan, and on the third Business Day prior to, in the case of the extension of
a Eurodollar Loan as, or conversion of a Base Rate Loan into, a Eurodollar Loan, the date of the
proposed extension or conversion, specifying the date of the proposed extension or conversion, the
Loans to be so extended or converted, the types of Loans into which such Loans are to be converted
and, if appropriate, the applicable Interest Periods with respect thereto. Each request for
extension or conversion shall constitute a representation and warranty by the Borrowers of the
matters specified in Article V. In the event the Borrowers fail to request extension or
conversion of any Eurodollar Loan in accordance with this Section, or any such conversion or
extension is not permitted or required by this Section, then such Loan shall be automatically
converted into a Base Rate Loan at the end of the Interest Period applicable thereto. The Agent
shall give each Lender notice as promptly as practicable of any such proposed extension or
conversion affecting any Loan.

     2.11 Removal of Lenders.

     The Borrowers shall be permitted to replace with a replacement financial institution
satisfactory to the Agent (i) any Lender that requests reimbursement for amounts owing or payments
of additional amounts pursuant to Section 2.7, 4.7 or 4.9; (ii) any
Defaulting Lender; or (iii) any Lender (other than Wachovia Bank, National Association) that fails
to consent to any proposed amendment, modification, termination, waiver or consent with respect to
any provision hereof or of any other Credit Document that requires the unanimous approval of all of
the Lenders, the approval of all of the Lenders affected thereby or the approval of a class of
Lenders, in each case in accordance with the terms of Section 14.10, so long as the consent
of the Required Lenders shall have been obtained with respect to such amendment, modification,
termination, waiver or consent; provided that (A) such replacement does not conflict with
any applicable law, treaty, rule or regulation or determination of an arbitrator or a court or
other Governmental Authority, (B) except with respect to clause (iii) above, no Event of Default
shall have occurred and be continuing at the time of such replacement, (C) the replacement
financial institution shall purchase, at par, all Loans and other amounts owing to such replaced
Lender on or prior to the date of replacement, (D) with respect to clause (iii) above, the
replacement financial institution shall approve the proposed amendment, modification, termination,
waiver or consent, (E) the Borrowers shall be liable to such replaced Lender under Section
4.10 if any Eurodollar Loan owing to such replaced Lender shall be purchased other than on the
last day of the Interest Period relating thereto, (F) the replaced Lender shall be obligated to
make such replacement in accordance with the provisions of Section 14.6(c) (provided that
the Borrowers shall be obligated to pay the registration and processing fee referred to therein),
(G) until such time as such replacement shall be consummated, the Borrowers shall pay to the
replaced Lender all additional amounts (if any) required pursuant to Section 2.7,
4.7 or 4.9, as the case may be, (H) in the case of clause (iii) above, the
Borrowers provide at least three (3) Business Days’ prior notice to such replaced Lender, and (I)
any such replacement shall not be deemed to be a waiver of any rights that the Borrowers, the Agent
or any other Lender shall have against the replaced Lender. In the event any replaced Lender fails
to execute the agreements required under Section 14.6 in connection with an assignment
pursuant to this Section 2.11, the Borrowers may, upon two (2) Business Days’ prior notice
to such replaced Lender, execute such agreements on behalf

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of such replaced Lender. A Lender shall not be required to be replaced if, prior thereto, as a
result of a waiver by such Lender or otherwise, the circumstances entitling the Borrowers to
require such replacement cease to apply.

ARTICLE III

LETTERS OF CREDIT

     3.1 Issuance.

     Subject to the terms and conditions hereof and of the Letter of Credit Documents, if any, and
any other terms and conditions which the Issuing Bank may reasonably require, the Lenders will
participate in the issuance by the Issuing Bank from time to time of such Letters of Credit in
Dollars from the Closing Date until the Maturity Date as the Borrowers may request, in a form
acceptable to the Issuing Bank; provided, however, that (a) the Letter of Credit
Obligations outstanding shall not at any time exceed the Letter of Credit Committed Amount and (b)
the sum of the aggregate principal amount of outstanding Revolving Loans plus Letter of
Credit Obligations outstanding shall not at any time exceed the lesser of (i) the Revolving Credit
Committed Amount and (ii) the Borrowing Base. No Letter of Credit shall (x) have an original
expiry date more than one year from the date of issuance or (y) as originally issued or as
extended, have an expiry date extending beyond the Maturity Date. Each Letter of Credit shall
comply with the related Letter of Credit Documents. The issuance and expiry date of each Letter of
Credit shall comply with the related Letter of Credit Documents. The issuance and expiry date of
each Letter of Credit shall be a Business Day.

     3.2 Notice and Reports.

     The request for the issuance of a Letter of Credit shall be submitted by the Borrowers to the
Issuing Bank at least three (3) Business Days prior to the requested date of issuance. The Issuing
Bank will, upon request, disseminate to each of the Lenders a detailed report specifying the
Letters of Credit which are then issued and outstanding and any activity with respect thereto which
may have occurred since the date of the prior report, and including therein, among other things,
the beneficiary, the face amount and the expiry date as well as any payment or expirations which
may have occurred.

     3.3 Participation.

     Each Lender, upon issuance of a Letter of Credit, shall be deemed to have purchased without
recourse a risk participation from the Issuing Bank in such Letter of Credit and the obligations
arising thereunder, in each case in an amount equal to its Revolving Credit Commitment Percentage
of such Letter of Credit, and shall absolutely, unconditionally and irrevocably assume, as primary
obligor and not as surety, and be obligated to pay to the Issuing Bank therefor and discharge when
due, its Revolving Credit Commitment Percentage of the obligations arising under such Letter of
Credit. Without limiting the scope and nature of each Lender’s participation in any Letter of
Credit, to the extent that the Issuing Bank has not been

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reimbursed as required hereunder or under any such Letter of Credit, each such Lender shall pay to
the Issuing Bank its Revolving Credit Commitment Percentage of such unreimbursed drawing pursuant
to the provisions of Section 3.4. The obligation of each Lender to so reimburse the
Issuing Bank shall be absolute and unconditional and shall not be affected by the occurrence of a
Default, an Event of Default or any other occurrence or event. Any such reimbursement shall not
relieve or otherwise impair the obligation of the Borrowers to reimburse the Issuing Bank under any
Letter of Credit, together with interest as hereinafter provided.

     3.4 Reimbursement.

     In the event of any drawing under any Letter of Credit, the Issuing Bank will promptly notify
the Borrowers. Unless the Borrowers shall immediately notify the Issuing Bank that the Borrowers
intend to otherwise reimburse the Issuing Bank for such drawing, the Borrowers shall be deemed to
have requested that the Lenders make a Revolving Loan in the amount of the drawing as provided in
Section 3.5 on the related Letter of Credit, the proceeds of which will be used to satisfy
the related reimbursement obligations. The Borrowers promise to reimburse the Issuing Bank on the
day of drawing under any Letter of Credit (either with the proceeds of a Revolving Loan obtained
hereunder or otherwise) in same day funds. If the Borrowers shall fail to reimburse the Issuing
Bank as provided hereinabove, the unreimbursed amount of such drawing shall bear interest at a per
annum rate equal to the Base Rate plus the sum of (i) the Applicable Percentage for Base Rate Loans
and (ii) two percent (2%). The Borrowers’ reimbursement obligations hereunder shall be absolute
and unconditional under all circumstances irrespective of any rights of setoff, counterclaim or
defense to payment the Borrowers may claim or have against the Issuing Bank, the Agent, the
Lenders, the beneficiary of the Letter of Credit drawn upon or any other Person, including without
limitation any defense based on any failure of the Borrowers to receive consideration or the
legality, validity, regularity or unenforceability of the Letter of Credit. The Issuing Bank will
promptly notify the other Lenders of the amount of any unreimbursed drawing and each Lender shall
promptly pay to the Agent for the account of the Issuing Bank in Dollars and in immediately
available funds, the amount of such Lender’s Revolving Credit Commitment Percentage of such
unreimbursed drawing. Such payment shall be made on the Business Day such notice is received by
such Lender from the Issuing Bank if such notice is received at or before 2:00 P.M. otherwise such
payment shall be made at or before 12:00 Noon on the Business Day next succeeding the day such
notice is received. If such Lender does not pay such amount to the Issuing Bank in full upon such
request, such Lender shall, on demand, pay to the Agent for the account of the Issuing Bank
interest on the unpaid amount during the period from the date of such drawing until such Lender
pays such amount to the Issuing Bank in full at a rate per annum equal to, if paid within two (2)
Business Days of the date that such Lender is required to make payments of such amount pursuant to
the preceding sentence, the Federal Funds Rate and thereafter at a rate equal to the Base Rate.
Each Lender’s obligation to make such payment to the Issuing Bank, and the right of the Issuing
Bank to receive the same, shall be absolute and unconditional, shall not be affected by any
circumstance whatsoever and without regard to the termination of this Credit Agreement or the
Commitments hereunder, the existence of a Default or Event of Default or the acceleration of the
obligations of the Borrowers hereunder and shall be made without any offset, abatement, withholding
or reduction whatsoever. Simultaneously with the making of each such payment by a Lender to the
Issuing Bank, such Lender shall, automatically and without any further action on the part of the

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Issuing Bank or such Lender, acquire a participation in an amount equal to such payment (excluding
the portion of such payment constituting interest owing to the Issuing Bank) in the related
unreimbursed drawing portion of the Letter of Credit Obligation and in the interest thereon and in
the related Letter of Credit Documents, and shall have a claim against the Borrowers with respect
thereto.

     3.5 Repayment with Revolving Loans.

     On any day on which the Borrowers shall have requested, or been deemed to have requested, a
Revolving Loan advance to reimburse a drawing under a Letter of Credit, the Agent shall give notice
to the Lenders that a Revolving Loan has been requested or deemed requested by the Borrowers to be
made in connection with a drawing under a Letter of Credit, in which case a Revolving Loan advance
comprised of Base Rate Loans (or Eurodollar Loans to the extent the Borrower has complied with the
procedures of Section 2.1(d)(i) with respect thereto) shall be immediately made to the
Borrowers by all Lenders (notwithstanding any termination of the Commitments pursuant to
Section 11.2) pro rata based on the respective Revolving Credit Commitment
Percentages of the Lenders (determined before giving effect to any termination of the Commitments
pursuant to Section 11.2) and the proceeds thereof shall be paid directly by the Agent to
the Issuing Bank for application to the respective Letter of Credit Obligations. Each such Lender
hereby irrevocably agrees to make its Revolving Credit Commitment Percentage of each such Revolving
Loan immediately upon any such request or deemed request in the amount, in the manner and on the
date specified in the preceding sentence notwithstanding (i) the amount of such borrowing
may not comply with the minimum amount for advances of Revolving Loans otherwise required
hereunder, (ii) whether any conditions specified in Article V are then satisfied, (iii)
whether a Default or an Event of Default then exists, (iv) failure for any such request or deemed
request for Revolving Loan to be made by the time otherwise required hereunder, (v) whether the
date of such borrowing is a date on which Revolving Loans are otherwise permitted to be made
hereunder or (vi) any termination of the Commitments relating thereto immediately prior to or
contemporaneously with such borrowing. In the event that any Revolving Loan cannot for any reason
be made on the date otherwise required above (including, without limitation, as a result of the
commencement of a bankruptcy or insolvency case or proceeding with respect to any Borrower), then
each such Lender hereby agrees that it shall forthwith purchase (as of the date such borrowing
would otherwise have occurred, but adjusted for any payments received from the Borrowers on or
after such date and prior to such purchase) from the Issuing Bank such participation in the
outstanding Letter of Credit Obligations as shall be necessary to cause each such Lender to share
in such Letter of Credit Obligations ratably (based upon the respective Revolving Credit Commitment
Percentages of the Lenders (determined before giving effect to any termination of the Commitments
pursuant to Section 11.2)), provided that at the time any purchase of participation
pursuant to this sentence is actually made, the purchasing Lender shall be required to pay to the
Issuing Bank, to the extent not paid to the Issuing Bank by the Borrowers in accordance with the
terms of Section 3.4, interest on the principal amount of participation purchased for each
day from and including the day upon which such borrowing would otherwise have occurred to but
excluding the date of payment for such participation, at the rate equal to, if paid within two (2)
Business Days of the date of the Revolving Loan advance, the Federal Funds Rate, and thereafter at
a rate equal to the Base Rate.

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     3.6 Renewal, Extension.

     The renewal or extension of any Letter of Credit shall, for purposes hereof, be treated in all
respects the same as the issuance of a new Letter of Credit hereunder.

     3.7 Uniform Customs and Practices.

     The Issuing Bank may provide that the Letters of Credit shall be subject to the UCP, in which
case the UCP may be incorporated by reference therein and deemed in all respects to be a part
thereof.

     3.8 Indemnification; Nature of Issuing Bank’s Duties.

     (a) In addition to their other obligations under this Article III, the
Borrowers agree to protect, indemnify, pay and save the Issuing Bank harmless from and
against any and all claims, demands, liabilities, damages, losses, costs, charges and
expenses (including reasonable attorneys’ fees) that the Issuing Bank may incur or be
subject to as a consequence, direct or indirect, of (A) the issuance of any Letter of Credit
or (B) the failure of the Issuing Bank to honor a drawing under a Letter of Credit as a
result of Government Acts.

     (b) As between the Borrowers and the Issuing Bank, the Borrowers shall assume all risks
of the acts, omissions or misuse of any Letter of Credit by the beneficiary thereof. The
Issuing Bank shall not be responsible: (i) for the form, validity, sufficiency, accuracy,
genuineness or legal effect of any document submitted by any party in connection with the
application for and issuance of any Letter of Credit, even if it should in fact prove to be
in any or all respects invalid, insufficient, inaccurate, fraudulent or forged; (ii) for the
validity or sufficiency of any instrument transferring or assigning or purporting to
transfer or assign any Letter of Credit or the rights or benefits thereunder or proceeds
thereof, in whole or in part, that may prove to be invalid or ineffective for any reason;
(iii) for errors, omissions, interruptions or delays in transmission or delivery of any
messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher;
(iv) for any loss or delay in the transmission or otherwise of any document required in
order to make a drawing under a Letter of Credit or of the proceeds thereof; and (v) for any
consequences arising from causes beyond the control of the Issuing Bank, including, without
limitation, any Government Acts. None of the above shall affect, impair, or prevent the
vesting of the Issuing Bank’s rights or powers hereunder.

     (c) In furtherance and extension and not in limitation of the specific provisions
hereinabove set forth, any action taken or omitted by the Issuing Bank, under or in
connection with any Letter of Credit or the related certificates, if taken or omitted in
good faith, shall not put such Issuing Bank under any resulting liability to any Borrower.
It is the intention of the parties that this Credit Agreement shall be construed and applied
to protect and indemnify the Issuing Bank against any and all risks involved in the

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issuance of the Letters of Credit, all of which risks are hereby assumed by the Borrowers,
including, without limitation, any and all Government Acts. The Issuing Bank shall not, in
any way, be liable for any failure by the Issuing Bank or anyone else to pay any drawing
under any Letter of Credit as a result of any Government Acts or any other cause beyond the
control of the Issuing Bank.

     (d) Nothing in this Section 3.8 is intended to limit the reimbursement
obligations of the Borrower contained in Section 3.4. The obligations of the
Borrowers under this Section 3.8 shall survive the termination of this Credit
Agreement. No act or omission of any current or prior beneficiary of a Letter of Credit
shall in any way affect or impair the rights of the Issuing Bank to enforce any right, power
or benefit under this Credit Agreement.

     (e) Notwithstanding anything to the contrary contained in this Section 3.8, the
Borrowers shall have no obligation to indemnify the Issuing Bank in respect of any liability
incurred by the Issuing Bank (i) to the extent arising out of the gross negligence or
willful misconduct of the Issuing Bank, as determined by a court of competent jurisdiction,
or (ii) caused by the Issuing Bank’s failure to pay under any Letter of Credit after
presentation to it of a request strictly complying with the terms and conditions of such
Letter of Credit, as determined by a court of competent jurisdiction, unless such payment is
prohibited by any law, regulation, court order or decree.

     3.9 Responsibility of Issuing Bank.

     It is expressly understood and agreed that the obligations of the Issuing Bank hereunder to
the Lenders are only those expressly set forth in this Credit Agreement and that the Issuing Bank
shall be entitled to assume that the conditions precedent set forth in Article III or V
have been satisfied unless it shall have acquired actual knowledge that any such condition
precedent has not been satisfied; provided, however, that nothing set forth in this
Article III shall be deemed to prejudice the right of any Lender to recover from the
Issuing Bank any amounts made available by such Lender to the Issuing Bank pursuant to this
Article III in the event that it is determined by a court of competent jurisdiction that
the payment with respect to a Letter of Credit constituted gross negligence or willful misconduct
on the part of the Issuing Bank.

     3.10 Conflict with Letter of Credit Documents.

     In the event of any conflict between this Credit Agreement and any Letter of Credit Document
(including any letter of credit application), this Credit Agreement shall control.

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ARTICLE IV

INTEREST AND FEES

     4.1 Interest on Loans.

     Subject to the provisions of Section 4.2, the Loans shall bear interest as follows:

     (a) Base Rate Loans. During such periods as the Loans shall be comprised of Base Rate
Loans, each such Base Rate Loan shall bear interest at a per annum rate equal to the sum of the
Base Rate plus the Applicable Percentage; and

     (b) Eurodollar Loans. During such periods as the Loans shall be comprised of
Eurodollar Loans, each such Eurodollar Loan shall bear interest at a per annum rate equal to the
sum of the Eurodollar Rate plus the Applicable Percentage.

     Interest on the Loans shall be payable in arrears on each Interest Payment Date.

     4.2 Interest After Event of Default.

     (a) If any Event of Default under Section 11.1(a) (without regard to any applicable
grace period), (e), (f) or (h) shall have occurred and be continuing, the Borrowers shall pay
interest on the principal amount of all outstanding Obligations hereunder at the Default Rate.

     (b) Upon the request of the Administrative Agent or the Required Lenders, while any other
Event of Default exists, (i) the Borrowers shall pay interest on the principal amount of all
outstanding Obligations hereunder at the Default Rate and (ii) all Letter of Credit Fees and other
fees payable pursuant to Section 4.5 shall accrue at a per annum rate 2% greater than the
rate which would otherwise be applicable.

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

     4.3 Unused Line Fee.

     At the end of each calendar quarter the Borrowers shall pay to the Agent for the benefit of
the Lenders the Unused Line Fee due in respect of such calendar quarter.

     4.4 Agent’s Fees.

     The Borrowers shall pay all ongoing fees required to be paid to the Agent under the Fee Letter
at the times and in the amounts set forth therein.

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     4.5 Letter of Credit Fees.

     (a) Letter of Credit Fee. In consideration of the issuance of Letters of
Credit hereunder, the Borrowers promise to pay to the Agent for the account of each Lender a
fee (the “Letter of Credit Fee”) on such Lender’s Revolving Credit Commitment
Percentage of the average daily maximum amount available to be drawn under each such Letter
of Credit computed at a per annum rate for each day from the date of issuance to the date of
expiration equal to the Applicable Percentage for Eurodollar Loans. The Letter of Credit
Fee will be payable monthly in arrears on the last day of each calendar month.

     (b) Issuing Bank Fees. In addition to the Letter of Credit Fee payable
pursuant to clause (a) above, the Borrowers promise to pay to the Issuing Bank for its own
account without sharing by the other Lenders a letter of credit fronting and negotiation fee
of 0.125% per annum on the average daily maximum amount available to be drawn under each
Letter of Credit issued by it and the customary charges from time to time of the Issuing
Bank with respect to the issuance, amendment, transfer, administration, cancellation and
conversion of, and drawings under, such Letters of Credit (collectively, the “Issuing
Bank Fees”).

     4.6 Authorization to Charge Account.

     The Borrowers hereby authorize the Agent to charge the Borrowers’ Revolving Loan accounts with
the amount of all payments and fees due hereunder to the Lenders, the Agent and the Issuing Bank as
and when such payments become due. The Borrowers confirm that any charges which the Agent may so
make to the Borrowers’ Revolving Loan accounts as herein provided will be made as an accommodation
to the Borrowers and solely at the Agent’s discretion.

     4.7 Indemnification in Certain Events.

     If after the Closing Date, either (a) any change in or in the interpretation of any law or
regulation is introduced, including, without limitation, with respect to reserve requirements,
applicable to any Funding Bank or any of the Lenders or (b) a Funding Bank or any of the Lenders
complies with any future guideline or request from any central bank or other Governmental Authority
or (c) a Funding Bank or any of the Lenders determines that the adoption of any applicable law,
rule or regulation regarding capital adequacy, or any change therein, or any change in the
interpretation or administration thereof by any Governmental Authority, central bank or comparable
agency charged with the interpretation or administration thereof has or would have the effect
described below, or a Funding Bank or any of the Lenders complies with any request or directive
regarding capital adequacy (whether or not having the force of law) of any such authority, central
bank or comparable agency, and in the case of any event set forth in this clause (c), such
adoption, change or compliance has or would have the direct or indirect effect of reducing the rate
of return on any of the Lenders’ capital as a consequence of its obligations hereunder to a level
below that which such Lender could have achieved but for such adoption, change or compliance
(taking into consideration the Funding

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Bank’s or Lenders’ policies with respect to capital adequacy) by an amount deemed by such Lender to
be material, and the result of any of the foregoing events described in clauses (a), (b) or (c) is
or results in an increase in the cost to any of the Lenders of funding or maintaining the Revolving
Credit Committed Amount, the Revolving Loans or the Letters of Credit, then the Borrowers shall
from time to time upon demand by the Agent, pay to the Agent additional amounts sufficient to
indemnify the Lenders against such increased cost to the extent that such increased cost is not
covered by the formula set forth in the definition of the term “Eurodollar Rate”. A certificate as
to the amount of such increased cost shall be submitted to the Borrowers by the Agent and shall be
conclusive and binding absent manifest error.

     4.8 Inability To Determine Interest Rate.

     If prior to the first day of any Interest Period, (a) the Agent shall have determined in good
faith (which determination shall be conclusive and binding upon the Borrowers) that, by reason of
circumstances affecting the relevant market, adequate and reasonable means do not exist for
ascertaining the Eurodollar Rate for such Interest Period, (b) the Agent has received notice from
the Required Lenders that the Eurodollar Rate determined or to be determined for such Interest
Period will not adequately and fairly reflect the cost to such Lenders of making or maintaining
their Eurodollar Loans during such Interest Period, or (c) Dollar deposits in the principal amounts
of the Eurodollar Loans to which such Interest Period is to be applicable are not generally
available in the London interbank market, the Agent shall give telecopy or telephonic notice
thereof to the Borrowers and the Lenders as soon as practicable thereafter, and will also give
prompt written notice to the Borrowers when such conditions no longer exist. If such notice is
given (i) any Eurodollar Loans requested to be made on the first day of such Interest Period shall
be made as Base Rate Loans, (ii) any Loans that were to have been converted on the first day of
such Interest Period to or continued as Eurodollar Loans shall be converted to or continued as Base
Rate Loans and (iii) each outstanding Eurodollar Loan shall be converted, on the last day of the
then-current Interest Period thereof, to Base Rate Loans. Until such notice has been withdrawn by
the Agent, no further Eurodollar Loans shall be made or continued as such, nor shall the Borrowers
have the right to convert Base Rate Loans to Eurodollar Loans.

     4.9 Illegality.

     Notwithstanding any other provision herein, if the adoption of or any change in any law,
treaty, rule or regulation or final, non-appealable determination of an arbitrator or a court or
other Governmental Authority or in the interpretation or application thereof occurring after the
Closing Date shall make it unlawful for any Lender to make or maintain Eurodollar Loans as
contemplated by this Credit Agreement, (a) such Lender shall promptly give written notice of such
circumstances to the Borrowers and the Agent (which notice shall be withdrawn whenever such
circumstances no longer exist), (b) the commitment of such Lender hereunder to make Eurodollar
Loans, continue Eurodollar Loans as such and convert a Base Rate Loan to Eurodollar Loans shall
forthwith be canceled and, until such time as it shall no longer be unlawful for such Lender to
make or maintain Eurodollar Loans, such Lender shall then have a commitment only to make a Base
Rate Loan when a Eurodollar Loan is requested and (c) such Lender’s Loans then outstanding as
Eurodollar Loans, if any, shall be converted automatically to Base Rate Loans on the respective
last days of the then current Interest Periods with respect to

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such Loans or within such earlier period as required by law. If any such conversion of a
Eurodollar Loan occurs on a day which is not the last day of the then current Interest Period with
respect thereto, the Borrowers shall pay to such Lender such amounts, if any, as may be required
pursuant to Section 4.10.

     4.10 Funding Indemnity.

     The Borrowers, jointly and severally, promise to indemnify each Lender and to hold each Lender
harmless from any loss or expense which such Lender may sustain or incur (other than through such
Lender’s gross negligence or willful misconduct) as a consequence of (a) default by the Borrowers
in making a borrowing of, conversion into or extension of Eurodollar Loans after the Borrowers have
given a notice requesting the same in accordance with the provisions of this Credit Agreement, (b)
default by the Borrowers in making any prepayment of a Eurodollar Loan after the Borrowers have
given a notice thereof in accordance with the provisions of this Credit Agreement, and (c) the
making of a prepayment of Eurodollar Loans on a day which is not the last day of an Interest Period
with respect thereto. With respect to Eurodollar Loans, such indemnification may include an amount
equal to the excess, if any, of (i) the amount of interest which would have accrued on the amount
so prepaid, or not so borrowed, converted or extended, for the period from the date of such
prepayment or of such failure to borrow, convert or extend to the last day of the applicable
Interest Period (or, in the case of a failure to borrow, convert or extend, the Interest Period
that would have commenced on the date of such failure) in each case at the applicable rate of
interest for such Eurodollar Loans provided for herein over (ii) the amount of interest (as
reasonably determined by such Lender) which would have accrued to such Lender on such amount by
placing such amount on deposit for a comparable period with leading banks in the interbank
Eurodollar market. This covenant shall survive the termination of this Credit Agreement and the
payment of the Loans and all other amounts payable hereunder.

ARTICLE V

CONDITIONS PRECEDENT

     The obligation of the Lenders to make any Revolving Loan or of the Issuing Bank to issue any
Letter of Credit hereunder is subject to the satisfaction of, or waiver of, immediately prior to or
concurrently with the making of any Revolving Loan or issuance of such Letter of Credit the
following conditions precedent:

     5.1 Closing Conditions.

     The obligation of each Lender to make the Loans and/or of the Issuing Bank to issue Letters of
Credit hereunder shall be subject to the satisfaction or waiver by the Agent in its reasonable
discretion, on or prior to the Closing Date, of the following conditions precedent:

     (a) Executed Credit Documents. Receipt by the Agent of duly executed counterparts of:
this Credit Agreement; any requested Notes; the Contribution Agreement; the Security Documents;

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and all other Credit Documents, each in form and substance acceptable to the Lenders in their sole
discretion.

     (b) Organizational Documents. Receipt by the Agent of the following:

     (i) Charter Documents. Copies of the articles or certificates of incorporation
or other formation or charter documents of each Credit Party certified to be true and
complete as of a recent date by the appropriate Governmental Authority of the state or other
jurisdiction of its incorporation or organization and certified by a secretary or assistant
secretary of such Credit Party to be true and correct as of the Closing Date.

     (ii) Bylaws. A copy of the bylaws or operating agreement or similar agreement
of each Credit Party certified by a secretary or assistant secretary of such Credit Party to
be true and correct as of the Closing Date.

     (iii) Resolutions. Copies of resolutions of the Board of Directors or similar
managing body of each Credit Party approving and adopting the Credit Documents to which it
is a party, the transactions contemplated therein and authorizing execution and delivery
thereof, certified by a secretary or assistant secretary of such Credit Party to be true and
correct and in force and effect as of the Closing Date.

     (iv) Good Standing. Copies of (i) certificates of good standing, existence or
its equivalent with respect to each Credit Party certified as of a recent date by the
appropriate Governmental Authorities of the state or other jurisdiction of incorporation or
organization and each other jurisdiction in which the failure to so qualify and be in good
standing could reasonably be expected to have a Material Adverse Effect and (ii) to the
extent available, a certificate indicating payment of all corporate or other franchise taxes
certified as of a recent date by the appropriate taxing Governmental Authorities.

     (v) Incumbency. An incumbency certificate of each Credit Party certified by a
secretary or assistant secretary to be true and correct as of the Closing Date.

     (c) Financial Statements. Receipt by the Agent of (a) the financial statements, the
certifications referred to therein and the accountants’ unqualified opinion and management letter
prepared in connection therewith described in Section 6.6, (b) the financial and
operational projections described in Section 6.6, (c) the Unaudited 2006 Financials (as
defined in the Purchase Agreement) and (d) such other information relating to the Credit Parties as
the Agent may reasonably require in connection with the structuring and syndication of credit
facilities of the type described herein. The audited financial statements of Copperfield described
in Section 6.6 for the fiscal year ended December 31, 2006 shall not differ in any material
respect (either in nature or amount) from the Unaudited 2006 Financials.

     (d) Opinions of Counsel. Receipt by the Agent of an opinion, or opinions (which shall
cover, among other things, authority, legality, validity, binding effect, enforceability,
attachment and perfection of liens and no conflicts with the Credit Parties’ organizational
documents and

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contracts identified on a schedule to the applicable opinion satisfactory to the Agent, addressed
to the Agent and the Lenders and dated the Closing Date, from legal counsel to the Credit Parties.

     (e) Environmental Reports. Receipt by the Agent of the environmental assessment
reports, together with reliance letters thereon addressed to the Agent and the Lenders, and related
documents prepared in connection with the Mortgaged Properties, in each case, in scope, form and
substance satisfactory to the Agent.

     (f) Personal Property Collateral. The Agent shall have received:

     (i) searches of UCC filings in the jurisdiction of organization of each Credit Party,
the chief executive office of each Credit Party and each jurisdiction where any assets owned
by a Credit Party are located or where a filing could have been properly made by a creditor
of a Credit Party, copies of the financing statements on file in such jurisdictions and
evidence that no Liens exist other than Permitted Liens;

     (ii) UCC financing statements for each appropriate jurisdiction as is necessary, in the
Agent’s sole discretion, to perfect the Agent’s security interest in the Collateral;

     (iii) searches of ownership of intellectual property in the appropriate governmental
offices and such patent/trademark/copyright filings as requested by the Agent in order to
perfect the Agent’s security interest in the Collateral;

     (iv) all stock certificates evidencing the Capital Stock pledged to the Agent pursuant
to the Pledge Agreement, together with duly executed in blank undated stock powers attached
thereto;

     (v) Deposit Account Control Agreements with respect to all deposit accounts of the
Credit Parties listed on Schedule 6.35, except as otherwise provided in Section
9.10;

     (vi) all instruments and chattel paper in the possession of any of the Credit Parties,
together with allonges or assignments as may be necessary or appropriate to perfect the
Agent’s security interest in the Collateral to the extent required under the Security
Documents; and

     (vii) duly executed consents as are necessary, in the Agent’s sole discretion, to
perfect the Lenders’ security interest in the Collateral, including, without limitation, (A)
such Acknowledgment Agreements from lessors of real property, warehousemen and other third
parties as the Agent may require, (B) such freight forwarder agreements from third parties
acting as freight forwarders for the Credit Parties in form and substance satisfactory to
the Agent and (C) Buying Association Supplemental Agreements with each of the Buying
Associations in form and substance satisfactory to the Agent.

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     (g) Real Property Collateral. Receipt by Agent of the following:

     (i) Fully executed and notarized Mortgages or amendments to any existing Mortgages, in
each case, encumbering the fee interest of the Credit Parties in the Mortgaged Properties.

     (ii) The Agent shall have received, and the title insurance company issuing the title
policies (the “Title Insurance Company”) shall have received, maps or plats of an
as-built survey of the sites of the real property covered by the Mortgages certified to the
Agent and the Title Insurance Company in a manner reasonably satisfactory to each of the
Agent and the Title Insurance Company, dated a date reasonably satisfactory to the Agent and
the Title Insurance Company by an independent professional licensed land surveyor, which
maps or plats and the surveys on which they are based shall be made in accordance with
standards that enable the Title Insurance Company to issue the title policies without
exception for “Survey matters”, except for matters as are reasonably acceptable to the
Agent.

     (iii) The Mortgagee Policies or acceptable endorsements to any existing Mortgagee
Policies, in amounts not less than the respective amounts designated in Schedule
6.19 with respect to any particular Mortgaged Property, assuring the Agent that each of
the Mortgages creates (or in the case of amendments to existing Mortgages, continues) a
valid and enforceable first priority mortgage lien on the applicable Mortgaged Property,
free and clear of all defects and encumbrances except Permitted Liens, which Mortgagee
Policies or endorsements shall be in form and substance reasonably satisfactory to the Agent
and shall provide for affirmative insurance and such reinsurance as the Agent may reasonably
request, all of the foregoing in form and substance reasonably satisfactory to the Agent.

     (iv) Evidence, which shall be in the form of a Department of Homeland Security/Federal
Emergency Management Agency “Standard Flood Hazard Determination” certificate, as to whether
(i) any Mortgaged Property is a Flood Hazard Property and (ii) the community in which such
Flood Hazard Property is located is participating in the National Flood Insurance Program.

     (v) If there are any Flood Hazard Properties, the applicable Credit Party’s written
acknowledgment of receipt of written notification from the Agent (i) as to the existence of
each such Flood Hazard Property and (ii) as to whether the community in which each such
Flood Hazard Property is located is participating in the National Flood Insurance Program.

     (vi) Evidence satisfactory to the Agent that each of the Mortgaged Properties, and the
uses of the Mortgaged Properties, are in compliance in all material respects with all
applicable laws, regulations.

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     (vii) UCC fixture financing statements for each Mortgaged Property to be filed in the
appropriate jurisdiction as is necessary, in the Agent’s sole discretion, to perfect the
Agent’s lien on such Mortgaged Property.

     (h) Priority of Liens. The Agent shall have received satisfactory evidence that (i)
the Agent, on behalf of the Lenders, holds a perfected, first priority Lien on all Collateral
(subject to clause (ii) and the provisions of the Security Agreement) and (ii) none of the
Collateral is subject to any other Liens other than Permitted Liens.

     (i) Opening Borrowing Base Certificate. Receipt by the Agent of a Borrowing Base
Certificate as of the Closing Date, substantially in the form of Exhibit L and certified by
the chief financial officer or chief executive officer of the Company to be true and correct as of
the Closing Date.

     (j) Evidence of Insurance. Receipt by the Agent of copies of insurance policies or
certificates of insurance of the Credit Parties evidencing liability and casualty insurance meeting
the requirements set forth in the Credit Documents, including, without limitation, naming the Agent
as lender loss payee on behalf of the Lenders and each Lender as additional insured and copies of
any credit insurance policies insuring foreign Accounts to be included as Eligible Accounts
Receivable.

     (k) Corporate Structure. The corporate capital and ownership structure of the Company
and its Subsidiaries shall be as described in Schedule 6.9.

     (l) Governmental, Shareholder and Third Party Consents. Receipt by the Agent of
evidence that all governmental, shareholder and third party consents and approvals necessary in
connection with the transactions and the related financings contemplated hereby and by the other
Operative Documents and expiration of all applicable waiting periods without any action being taken
by any authority that could restrain, prevent or impose any material adverse conditions on such
transactions or that could seek or threaten any of the foregoing, and no law or regulation shall be
applicable which in the judgment of the Agent could have such effect.

     (m) Litigation. There shall not exist any pending or threatened action, suit,
investigation or proceeding against any Credit Party or its assets that could reasonably be
expected to (i) have a Material Adverse Effect or (ii) affect any transaction contemplated by this
Credit Agreement or any other Credit Document or the ability of the Credit Parties to perform their
respective obligations under the Credit Documents or any of the other Operative Documents.

     (n) Other Indebtedness. Receipt by the Agent of evidence that, after giving effect to
the making of the Loans made on the Closing Date on the Closing Date, the Credit Parties shall have
no Funded Indebtedness other than the Permitted Indebtedness.

     (o) Solvency Certificate. Receipt by the Agent of the Solvency Certificate.

     (p) Officer’s Certificates. Receipt by the Agent of a certificate or certificates
executed by the chief executive officer and chief financial officer of the Company as of the
Closing Date stating that (i) after giving effect to the making of the Loans and application of the
proceeds thereof

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and the consummation of the transactions contemplated by the other Operative Documents, each Credit
Party is in compliance with all existing financial obligations, (ii) all governmental, shareholder
and third party consents and approvals, if any, with respect to the Credit Documents and the
transactions contemplated thereby have been obtained, (iii) no action, suit, investigation or
proceeding is pending or threatened in any court or before any arbitrator or governmental
instrumentality that purports to affect any Credit Party or any transaction contemplated by the
Credit Documents, if such action, suit, investigation or proceeding could reasonably be expected to
have a Material Adverse Effect and (iv) immediately after giving effect to this Credit Agreement,
the other Credit Documents, the other Operative Documents and all the transactions contemplated
herein or therein to occur on such date, (A) each of the Credit Parties is solvent, (B) no Default
or Event of Default exists, (C) all representations and warranties contained herein and in the
other Credit Documents (i) which are qualified by materiality are true and correct and (ii) which
are not qualified by materiality, are true and correct in all material respects, and (D) the
Borrowers are in compliance with each of the financial covenants set forth in Article VIII.

     (q) Fees and Expenses. Payment by the Borrowers of all fees and expenses owed by them
to the Lenders and the Agent, including, without limitation, payment to the Agent and/or WCM of the
fees set forth in the Fee Letter.

     (r) Sources and Uses; Payment Instructions. Receipt by the Agent of (a) a statement
of sources and uses of funds covering all payments reasonably expected to be made by the Borrowers
in connection with the transactions contemplated by the Credit Documents to be consummated on the
Closing Date, including an itemized estimate of all fees, expenses and other closing costs and (b)
payment instructions with respect to each wire transfer to be made by the Agent on behalf of the
Lenders or the Company or the Borrowers on the Closing Date setting forth the amount of such
transfer, the purpose of such transfer, the name and number of the account to which such transfer
is to be made, the name and ABA number of the bank or other financial institution where such
account is located and the name and telephone number of an individual that can be contacted to
confirm receipt of such transfer.

     (s) Acquisition Documents. The Acquisition and related transactions shall have been
consummated substantially in accordance with the terms of the Acquisition Documents. The
Acquisition Documents shall not have been altered, amended or otherwise modified or supplemented or
any condition thereof waived without the prior written consent of the Administrative Agent. The
Administrative Agent shall have received a copy, certified by an officer of the Company as true
and complete, of each Acquisition Document as originally executed and delivered, together with all
exhibits and schedules thereto.

     (t) Senior Note Debt (2007). Receipt by the Agent of duly executed copies of the
Senior Note Debt Documents (2007), each in form and substance reasonably acceptable to the Agent in
its sole discretion, and evidence that the Company has received gross proceeds of the Senior Notes
(2007) in an amount of not less than $120,000,000.

     (u) Account Designation Letter. Receipt by the Agent of an Account Designation
Letter.

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     (v) Material Adverse Change. (i) No Material Adverse Change, or development reasonably
likely to have a Material Adverse Effect, shall have occurred since December 31, 2005, (ii) no
occurrence or event which is reasonably likely to have a Material Adverse Effect shall have
occurred since December 31, 2005 and be continuing and (iii) on or prior to the Closing Date, no
adverse conditions in the financial, banking or capital markets are in existence, as determined by
Wachovia in its sole and absolute discretion, which have adversely affected the syndication of the
Revolving Credit Committed Amount or the transactions contemplated hereby.

     (w) Field Examinations. Receipt by the Agent of the results of field examinations of
the business and collateral of the Copperfield Entities in accordance with the Agent’s customary
procedures and practices.

     (x) USA Patriot Act Certificate. Receipt by the Agent, at least five (5) Business
Days prior to the Closing Date, of a certificate reasonably satisfactory to the Agent, for benefit
of itself and the Lenders, provided by the Company that sets forth information required by the USA
Patriot Act including, without limitation, the identity of the Credit Parties, the name and address
of the Credit Parties and other information that will allow the Administrative Agent or any Lender,
as applicable, to identify the Credit Parties in accordance with the USA Patriot Act.

     (y) Capitalization. On the Closing Date, the capitalization and stock ownership of
the Company shall be as set forth in Schedule 5.1(y).

     (z) Consolidated EBITDA. Receipt by the Agent of evidence reasonably satisfactory to
it that Consolidated EBITDA of the Company and its Subsidiaries is not less than $90,000,000 for
the four consecutive quarter period ended as of the most recent month end prior to the Closing Date
for which financial statements are available, calculated on a pro forma basis prepared in
accordance with Regulation S-X under the Securities Act of 1933, as amended, and all other rules
and regulations of the Securities and Exchange Commission under such Securities Act, and including
other adjustments reasonably acceptable to the Agent.

     (aa) Leverage Ratio. Receipt by the Agent of evidence that the Leverage Ratio of the
Borrower and its Subsidiaries is not greater than 3.90 to 1.00, calculated on a pro forma basis
immediately after giving effect to the transactions contemplated by this Credit Agreement and each
of the other Operative Documents.

     (bb) Preliminary Offering Memorandum. The Company shall have used its commercially
reasonable best efforts to provide to the Agent a complete printed preliminary prospectus or
preliminary offering memorandum or preliminary private placement memorandum suitable for use in a
customary high-yield road show relating to the issuance of the Senior Notes (2007).

     (cc) Merger of SCC Into Coleman or Dissolution of SCC. Receipt by the Agent of
evidence that SCC has been merged with and into the Company or that SCC has been dissolved and its
assets have been transferred to the Company.

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     (dd) Other. Receipt by the Lenders of such other documents, instruments, agreements
or information as reasonably requested by any Lender, including, without limitation, information
regarding litigation, tax, accounting, labor, insurance, pension liabilities (actual or
contingent), real estate leases, material contracts, debt agreements, property ownership and
contingent liabilities of the Credit Parties.

     5.2 Condition to all Loans and Letters of Credit.

     (a) On the date of the making of any Revolving Loan or the issuance of any Letter of Credit,
both before and after giving effect thereto and to the application of the proceeds therefrom, the
following statements shall be true to the satisfaction of the Agent (and each request for a
Revolving Loan and request for a Letter of Credit, and the acceptance by the Borrower of the
proceeds of such Revolving Loan or issuance of such Letter of Credit, shall constitute a
representation and warranty by the Borrowers that on the date of such Revolving Loan or issuance of
such Letter of Credit before and after giving effect thereto and to the application of the proceeds
therefrom, such statements are true):

     (i) the representations and warranties contained in this Credit Agreement (A) which are
qualified by materiality are true and correct and (B) which are not qualified by
materiality, are true and correct in all material respects, on and as of the date of such
Revolving Loan or issuance of such Letter of Credit as though made on and as of such date,
except to the extent that such representations and warranties expressly relate solely to an
earlier date (in which case such representations and warranties shall have been true and
complete on and as of such earlier date); and

     (ii) no event has occurred and is continuing, or would result from such, Revolving Loan
or issuance of such Letter of Credit or the application of the proceeds thereof, which would
constitute a Default or an Event of Default under this Credit Agreement.

     (b) Notice of Borrowing. On the date of the making of any Revolving Loan, the Agent
shall have received a Notice of Borrowing to the extent such Notice of Borrowing is required to be
given with respect to the making of such Revolving Loan.

ARTICLE VI.

REPRESENTATIONS AND WARRANTIES

     In order to induce the Lenders to enter into this Credit Agreement and the Issuing Bank to
issue the Letters of Credit, and to make available the credit facilities contemplated hereby, each
Borrower and (by execution and delivery of the Guaranty Agreement or of a joinder thereto and
incorporation by reference therein) each Guarantor hereby represents and warrants to the Lenders
and the Issuing Bank as of the Closing Date, the Closing Date and on the date of each extension of
credit hereunder, as follows:

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     6.1 Organization and Qualification.

     Such Credit Party and each of its Subsidiaries (i) is a corporation or limited liability
company duly organized, validly existing and in good standing under the laws of the state of its
organization, (ii) has the power and authority to own its properties and assets and to transact the
businesses in which it is presently, or proposes to be, engaged, and (iii) is duly qualified and is
authorized to do business and is in good standing in every jurisdiction in which the failure to be
so qualified could reasonably be expected to have a Material Adverse Effect. Schedule 6.1
contains a true, correct and complete list of all jurisdictions in which such Credit Party and its
Subsidiaries are qualified to do business as a foreign corporation or foreign limited liability
company as of the Closing Date.

     6.2 Solvency.

     The fair saleable value of such Credit Party’s assets exceeds all probable liabilities,
including those to be incurred pursuant to this Credit Agreement. Such Credit Party (i) does not
have unreasonably small capital in relation to the business in which it is or proposes to be
engaged or (ii) has not incurred, and does not believe that it will incur after giving effect to
the transactions contemplated by this Credit Agreement and by the other Operative Documents, debts
beyond its ability to pay such debts as they become due.

     6.3 Liens; Inventory.

     There are no Liens in favor of third parties with respect to any of the Collateral, including,
without limitation, with respect to the Inventory, wherever located, other than Permitted Liens.
To the best of such Credit Party’s knowledge, no lessor, warehouseman, filler, processor or packer
of such Credit Party has been granted any Lien with respect to the Inventory maintained by such
Credit Party at the property of any such lessor, warehousemen, filler, processor or packer. Upon
the proper filing of financing statements and the proper recordation of other applicable documents
with the appropriate filing or recordation offices in each of the necessary jurisdictions, the
security interests granted pursuant to the Credit Documents constitute and shall at all times
constitute valid and enforceable first, prior and perfected Liens on the Collateral (other than
Permitted Liens). The Credit Parties are or will be at the time additional Collateral is acquired
by them, the absolute owners of the Collateral with full right to pledge, sell, consign, transfer
and create a Lien therein, free and clear of any and all Liens in favor of third parties, except
Permitted Liens. The Credit Parties will at their expense warrant, until payment in full of the
Obligations and termination of the Commitments, and, at the Agent’s request, defend the Collateral
from any and all Liens (other than Permitted Liens) of any third party. The Credit Parties will
not grant, create or permit to exist, any Lien upon the Collateral, or any proceeds thereof, in
favor of any third party (other than Permitted Liens).

     6.4 No Conflict.

     The execution and delivery by such Borrower of this Credit Agreement and by the Credit Parties
of each of the other Credit Documents executed and delivered in connection herewith and the
performance of the obligations of such Credit Party hereunder and thereunder, as applicable,

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and the consummation by such Credit Party of the transactions contemplated hereby and thereby: (i)
are within the corporate or other organizational, as the case may be, powers of such Credit Party;
(ii) are duly authorized by the Board of Directors or similar managing body of such Credit Party;
(iii) are not in contravention of the terms of the organizational documents of such Credit Party or
of any indenture, contract, lease, agreement instrument or other commitment to which such Credit
Party is a party or by which such Credit Party or any of its properties are bound, including,
without limitation, the Senior Note Indenture; (iv) do not require the consent, registration or
approval of any Governmental Authority or any other Person (except such as have been duly obtained,
made or given, and are in full force and effect); (v) do not contravene any statute, law, ordinance
regulation, rule, order or other governmental restriction applicable to or binding upon such Credit
Party; and (vi) will not, except as contemplated herein for the benefit of the Agent on behalf of
the Lenders, result in the imposition of any Liens upon any property of such Credit Party under any
existing indenture, mortgage, deed of trust, loan or credit agreement or other material agreement
or instrument to which such Credit Party is a party or by which it or any of its property may be
bound or affected.

     6.5 Enforceability.

     The Credit Agreement and all of the other Credit Documents, as applicable, are the legal,
valid and binding obligations of such Credit Party, and with respect to those Credit Documents
executed and delivered by any other Subsidiary, of each such other Subsidiary, and are enforceable
against such Credit Party and such other Subsidiaries, as the case may be, in accordance with their
terms except as such enforceability may be limited by (i) the effect of any applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and
(ii) general principles of equity.

     6.6 Financial Data; Projections; Material Adverse Change.

     The Company has furnished to the Lenders the following financial statements (the
“Financials”) and the Projections referenced below: (i) the consolidated balance sheet of
the Company as of, and consolidated statements of income, retained earnings and changes in
financial position for the fiscal years ended December 31, 2004, 2005 and 2006 audited by
independent certified public accountants, (ii) the consolidated balance sheet of Copperfield as of,
and consolidated statements of income, retained earnings and changes in financial position for the
fiscal years ended December 31, 2004, 2005 and 2006 audited by independent certified public
accountants, (iii) the unaudited consolidated balance sheet of the Company as of, and consolidated
statement of income, retained earnings and changes in financial position for the period ending
March 31, 2007 reviewed by Deloitte & Touche LLP and certified by the Chief Executive Officer and
Chief Financial Officer of the Company, (iv) the unaudited consolidated balance sheet of
Copperfield as of, and consolidated statement of income, retained earnings and changes in financial
position for the period ending March 31, 2007, if available on or before the Closing Date, reviewed
by Deloitte & Touche LLP and certified by the Chief Executive Officer and Chief Financial Officer
of the Company, (v) an unaudited pro forma opening consolidated balance sheet of the Company dated
the Closing Date, after giving effect to the making of the Loans and application of proceeds
thereof and the consummation of the transactions contemplated by the Operative Documents, prepared
by the chief financial officer of the

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Company and (vi) monthly financial and operational projections for each month during the first year
following the Closing Date and yearly financial and operational projections for the four subsequent
years (the “Projections”). The Financials are and the historical financial statements to
be furnished to the Lenders in accordance with subsection 7.1 below will be in accordance with the
books and records of the Company and fairly present the financial condition of each of the Credit
Parties at the dates thereof and the results of operations for the periods indicated (subject, in
the case of unaudited financial statements, to normal year-end adjustments), and such financial
statements have been and will be prepared in conformity with GAAP consistently applied throughout
the periods involved. The Projections have been prepared in good faith based on reasonable
assumptions at the time made.

     6.7 Locations of Offices, Records and Inventory.

     The Credit Parties’ states of domicile, principal places of business and chief executive
offices are set forth in Schedule 6.7, and the books and records of the Credit Parties and
all chattel paper and all records of accounts are located at the principal places of business and
chief executive offices of the Credit Parties. There is no jurisdiction in which any Credit Party
has any Collateral (except for vehicles, Inventory held for shipment by third Persons, Inventory in
transit, Inventory held for processing by third Persons, or immaterial quantities of assets,
equipment or Inventory) other than those jurisdictions listed on Schedule 6.7.
Schedule 6.7 is a true, correct and complete list of (i) the legal names and addresses of
each warehouseman, filler, processor and packer at which Inventory is stored, (ii) the address of
the chief executive offices of the Credit Parties and each of their Subsidiaries and (iii) the
address of all offices where records and books of account of the Credit Parties and each of their
Subsidiaries are kept. None of the receipts received by any of the Credit Parties from any
warehouseman, filler, processor or packer states that the goods covered thereby are to be delivered
to bearer or to the order of a named person or to a named person and such named person’s assigns.

     6.8 Fictitious Business Names.

     No Credit Party has used any corporate or fictitious name during the five (5) years preceding
the date hereof, other than the corporate name shown on its or such Credit Party’s articles or
certificate of incorporation or formation and as set forth on Schedule 6.8.

     6.9 Subsidiaries.

     The only direct or indirect Subsidiaries of the Company are those listed on Schedule
6.9. The Persons identified on Schedule 6.9 are the record and beneficial owner of all
of the shares of Capital Stock of each of the Persons listed on Schedule 6.9 as being owned
thereby, there are no proxies, irrevocable or otherwise, with respect to such shares, and no equity
securities of any of any of such Persons are or may become required to be issued by reason of any
options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever
relating to, or securities or rights convertible into or exchangeable for, shares of any Capital
Stock of any such Person, and there are no contracts, commitments, understandings or arrangements
by which any such Person is or may become bound to issue additional shares of its Capital Stock or
securities

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convertible into or exchangeable for such shares. All of such shares are owned by such Persons
free and clear of any Liens other than Permitted Liens.

     6.10 No Judgments or Litigation.

     Except as set forth on Schedule 6.10, no judgments, orders, writs or decrees are
outstanding against such Credit Parties or any of its Subsidiaries nor is there now pending or, to
the best of such Credit Party’s knowledge after diligent inquiry, threatened any litigation,
contested claim, investigation, arbitration, or governmental proceeding by or against such Credit
Party or any of its Subsidiaries except judgments and pending or threatened litigation, contested
claims, investigations, arbitrations and governmental proceedings which could not reasonably be
expected to have a Material Adverse Effect.

     6.11 No Defaults.

     Neither such Credit Party nor any of its Subsidiaries is in default under any term of any
indenture, contract, lease, agreement, instrument or other commitment to which any of them is a
party or by which any of them is bound which default has had or could be reasonably expected to
have a Material Adverse Effect. Such Credit Party knows of no dispute regarding any indenture,
contract, lease, agreement, instrument or other commitment which could reasonably be expected to
have a Material Adverse Effect.

     6.12 No Employee Disputes.

     There are no controversies pending or, to the best of such Credit Party’s knowledge after
diligent inquiry, threatened between such Credit Party or any of its Subsidiaries and any of their
respective employees, other than those arising in the ordinary course of business which could not,
in the aggregate, reasonably be expected to have a Material Adverse Effect.

     6.13 Compliance with Law.

     Neither such Credit Party nor any of its Subsidiaries has violated or failed to comply with
any statute, law, ordinance, regulation, rule or order of any foreign, federal, state or local
government, or any other Governmental Authority or any self regulatory organization, or any
judgment, decree or order of any court, applicable to its business or operations except where the
aggregate of all such violations or failures to comply could not reasonably be expected to have a
Material Adverse Effect. The conduct of the business of such Credit Party and each of its
Subsidiaries is in conformity with all securities, commodities, energy, public utility, zoning,
building code, health, OSHA and environmental requirements and all other foreign, federal, state
and local governmental and regulatory requirements and requirements of any self regulatory
organizations, except where such non-conformities could not reasonably be expected to have a
Material Adverse Effect. Neither such Credit Party nor any of its Subsidiaries has received any
notice to the effect that, or otherwise been advised that, it is not in compliance with, and
neither such Credit Party nor any of its Subsidiaries has any reason to anticipate that any
currently

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existing circumstances are likely to result in the violation of any such statute, law, ordinance,
regulation, rule, judgment, decree or order which failure or violation could reasonably be expected
to have a Material Adverse Effect.

     6.14 ERISA.

     None of such Credit Parties or any of their Subsidiaries or ERISA Affiliates maintains or
contributes to any Benefit Plan other than those listed on Schedule 6.14. Each Benefit Plan
has been and is being maintained and funded in accordance with its terms and in compliance in all
material respects with all provisions of ERISA and the Internal Revenue Code applicable thereto.
Such Credit Party, each of its Subsidiaries and each of its ERISA Affiliates has fulfilled all
obligations related to the minimum funding standards of ERISA and the Internal Revenue Code for
each Benefit Plan, is in compliance in all material respects with the currently applicable
provisions of ERISA and of the Internal Revenue Code and has not incurred any liability (other than
routine liability for premiums) under Title IV of ERISA. No Termination Event has occurred nor has
any other event occurred that may result in such a Termination Event. To the best of the Credit
Parties’ knowledge, no event or events have occurred in connection with which such Credit Parties
or any of its Subsidiaries or ERISA Affiliates, any fiduciary of a Benefit Plan or any Benefit
Plan, directly or indirectly, would be subject to any material liability, individually or in the
aggregate, under ERISA, the Internal Revenue Code or any other law, regulation or governmental
order or under any agreement, instrument, statute, rule of law or regulation pursuant to or under
which any such entity has agreed to indemnify or is required to indemnify any person against
liability incurred under, or for a violation or failure to satisfy the requirements of, any such
statute, regulation or order.

     6.15 Compliance with Environmental Laws.

     (a) The operations of such Credit Party and each of its Subsidiaries comply with all
applicable federal, state or local environmental, health and safety statutes, regulations,
directions, ordinances, criteria or guidelines and (b) none of the operations of such Credit Party
or any of its Subsidiaries is the subject of any judicial or administrative proceeding alleging the
violation of any federal, state or local environmental, health or safety statute, regulation,
direction, ordinance, criteria or guidelines, except where the failure to so comply or such
violation could not reasonably be expected to have a Material Adverse Effect. Except as disclosed
on Schedule 6.15, to the best of the Credit Parties’ knowledge, none of the operations of
such Credit Party or any of its Subsidiaries is the subject of any federal or state investigation
evaluating whether such Credit Party or any of its Subsidiaries disposed any hazardous or toxic
waste, substance or constituent or other substance at any site that may require remedial action, or
any federal or state investigation evaluating whether any remedial action is needed to respond to a
release of any hazardous or toxic waste, substance or constituent, or other substance into the
environment. Except as disclosed on Schedule 6.15, neither such Credit Party nor any of
its Subsidiaries have filed any notice under any federal or state law indicating past or present
treatment, storage or disposal of a hazardous waste or reporting a spill or release of a hazardous
or toxic waste, substance or constituent, or other substance into the environment. Except as
disclosed on Schedule 6.15, neither such Credit Party nor any of its Subsidiaries have any
contingent liability of which such Credit Party has knowledge or reasonably should have knowledge
in connection

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with any release of any hazardous or toxic waste, substance or constituent, or other substance
into the environment, nor has such Credit Party or any of its Subsidiaries received any notice,
letter or other indication of potential liability arising from the disposal of any hazardous or
toxic waste, substance or constituent or other substance into the environment.

     6.16 Use of Proceeds.

     All proceeds of the Loans will be used only in accordance with Section 7.13.

     6.17 Intellectual Property.

     Such Credit Party and each of its Subsidiaries possesses adequate assets, licenses, patents,
patent applications, copyrights, service marks, trademarks and tradenames to continue to conduct
its business as heretofore conducted by it. Schedule 6.17 sets forth (a) all of the
federal, state and foreign registrations of trademarks, service marks and other marks, trade names
or other trade rights of such Credit Party and its Subsidiaries, and all pending applications for
any such registrations, (b) all of the patents and copyrights of such Credit Party and its
Subsidiaries and all pending applications therefor and (c) all other trademarks, service marks and
other marks, trade names and other trade rights used by such Credit Party or any of its
Subsidiaries in connection with their businesses (collectively, the “Proprietary Rights”).
Such Credit Party and its Subsidiaries are collectively the owners of each of the trademarks listed
on Schedule 6.17 as indicated on such schedule, and no other Person has the right to use
any of such marks in commerce either in the identical form or in such near resemblance thereto as
may be likely to cause confusion or to cause mistake or to deceive. Each of the trademarks listed
on Schedule 6.17 is a federally registered trademark of such Credit Party or its
Subsidiaries having the registration number and issue date set forth on Schedule 6.17,
except as disclosed on Schedule 6.17. The Proprietary Rights listed on Schedule 6.17 are
all those used in the businesses of such Credit Party and its Subsidiaries. Except as disclosed on
Schedule 6.17, no person has a right to receive any royalty or similar payment in respect
of any Proprietary Rights pursuant to any contractual arrangements entered into by such Credit
Party, or any of its Subsidiaries and no person otherwise has a right to receive any royalty or
similar payment in respect of any such Proprietary Rights except as disclosed on Schedule
6.17. Neither such Credit Party nor any of its Subsidiaries has granted any license or sold or
otherwise transferred any interest in any of the Proprietary Rights to any other person, except as
disclosed on Schedule 6.17. To the best of the Credit Parties’ knowledge, the use of each of the
Proprietary Rights by such Credit Party and its Subsidiaries is not infringing upon or otherwise
violating the rights of any third party in or to such Proprietary Rights, and no proceeding has
been instituted against or notice received by such Credit Party or any of its Subsidiaries that are
presently outstanding alleging that the use of any of the Proprietary Rights infringes upon or
otherwise violates the rights of any third party in or to any of the Proprietary Rights. Neither
such Credit Party nor any of its Subsidiaries have given notice to any Person that it is infringing
on any of the Proprietary Rights and to the best of such Credit Party’s knowledge, no Person is
infringing on any of the Proprietary Rights. All of the Proprietary Rights of such Credit Party
and its Subsidiaries are valid and enforceable rights of such Credit Party and its Subsidiaries and
will not cease to be valid and in full force and effect by reason of the execution and delivery of
this Credit Agreement or the Credit Documents or the consummation of the transactions contemplated
hereby or thereby.

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     6.18 Licenses and Permits.

     Such Credit Party and each of its Subsidiaries have obtained and hold in full force and
effect, all material franchises, licenses, leases, permits, certificates, authorizations,
qualifications, easements, rights of way and other rights and approvals which are necessary or
appropriate for the operation of their businesses as presently conducted and as proposed to be
conducted, except where the failure to do so could not reasonably be expected to have a Material
Adverse Effect. Neither any such Credit Party nor any of its Subsidiaries is in violation of the
terms of any such franchise, license, lease, permit, certificate, authorization, qualification,
easement, right of way, right or approval in any such case which could not reasonably be expected
to have a Material Adverse Effect.

     6.19 Title to Property.

     Such Credit Party has (i) good and marketable fee simple title to or valid leasehold interests
in all of its real property, including, without limitation, the Real Estate (all such real property
and the nature of such Credit Party’s or any of its Subsidiary’s interest therein is disclosed on
Schedule 6.19, as it may be updated from time to time pursuant to Section 7.9,) and
(ii) good and marketable title to all of its other property (including without limitation, all real
and other property in each case as reflected in the Financial Statements delivered to the Agent
hereunder), other than, with respect to properties described in clause (ii) above, properties
disposed of in the ordinary course of business or in any manner otherwise permitted under this
Credit Agreement since the date of the most recent audited consolidated balance sheet of the
Company, and in each case subject to no Liens other than Permitted Liens. Such Credit Party and
its Subsidiaries enjoy peaceful and undisturbed possession of all its real property, including,
without limitation, the Real Estate, and there is no pending or, to the best of their knowledge,
threatened condemnation proceeding relating to any such real property. None of the Leases contains
provisions which have or could reasonably be expected to have a Material Adverse Effect. No
material default exists under any Lease. All of the Structures and other tangible assets owned,
leased or used by such Credit Party or any of its Subsidiaries in the conduct of their respective
businesses are (a) insured to the extent and in a manner customary in the industry in which such
Credit Party or such Subsidiaries are engaged, (b) structurally sound with no known defects which
have or could reasonably be expected to have a Material Adverse Effect, (c) in good operating
condition and repair, subject to ordinary wear and tear, (d) not in need of maintenance or repair
except for ordinary, routine maintenance and repair the cost of which is immaterial, (e) sufficient
for the operation of the businesses of such Credit Party and its Subsidiaries as currently
conducted and (f) in conformity with all applicable laws, ordinances, orders, regulations and other
requirements (including applicable zoning, environmental, motor vehicle safety, occupational safety
and health laws and regulations) relating thereto, except where the failure to conform could not
reasonably be expected to have a Material Adverse Effect.

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     6.20 Labor Matters.

     Neither such Credit Party nor any of its Subsidiaries is engaged in any unfair labor practice.
There is (a) no material unfair labor practice complaint pending against such Credit Party or any
of its Subsidiaries or, to the best knowledge of such Credit Party, threatened against any of them,
before the National Labor Relations Board, and no grievance or arbitration proceeding arising out
of or under collective bargaining agreements that has or could reasonably be expected to have a
Material Adverse Effect is so pending against such Credit Party or any of its Subsidiaries or, to
the best knowledge of such Credit Party, threatened against any of them, (b) no strike, labor
dispute, slowdown or stoppage pending against either of such Credit Party or any of its
Subsidiaries or, to the best knowledge of such Credit Party, threatened against any of them, and
(c) no union representation questions with respect to the employees of such Credit Party or any
Subsidiaries and no union organizing activities.

     6.21 Investment Company, Etc.

     Neither such Credit Party nor any of its Subsidiaries is (a) an “investment company” or a
company “controlled” by an “investment company” within the meaning of the Investment Company Act of
1940, as amended, or (b) subject to any other law which purports to regulate or restrict its
ability to borrow money or to consummate the transactions contemplated by this Credit Agreement or
the other Credit Documents or to perform its obligations hereunder or thereunder.

     6.22 Margin Security.

     Such Borrower does not own any margin stock and no portion of the proceeds of any Loans or
Letters of Credit shall be used by the Borrowers for the purpose of purchasing or carrying any
“margin stock” (as defined in Regulation U of the Board of Governors of the Federal Reserve System)
or for any other purpose which violates the provisions or Regulation U, T, U or X of said Board of
Governors or for any other purpose in violation of any applicable statute or regulation, or of the
terms and conditions of this Credit Agreement.

     6.23 No Event of Default.

     No Default or Event of Default has occurred and is continuing.

     6.24 Taxes and Tax Returns.

     Each Credit Party has filed, or caused to be filed, all material tax returns (federal, state,
local and foreign) required to be filed and paid all amounts of taxes shown thereon to be due
(including interest and penalties) and has paid all other material taxes, fees, assessments and
other governmental charges (including mortgage recording taxes, documentary stamp taxes and
intangibles taxes) owing by it, except for such taxes (a) that are not yet delinquent or (b) that
are being contested in good faith and by proper proceedings, and against which adequate reserves
are being maintained in accordance with GAAP. None of the Credit Parties is aware of any proposed
material tax assessments against it or any other Credit Party.

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     6.25 No Other Indebtedness.

     Such Credit Party has no Indebtedness that is senior, pari passu or subordinated in right of
payment to their Indebtedness to the Lenders hereunder, except for Permitted Indebtedness.

     6.26 Status of Accounts.

     Each Account is based on an actual and bona fide sale and delivery of goods or rendition of
services to customers, made by such Credit Party in the ordinary course of its business; the goods
and inventory being sold and the Accounts created are its exclusive property and are not and shall
not be subject to any Lien, consignment arrangement, encumbrance, security interest or financing
statement whatsoever, other than the Permitted Liens; and such Credit Party’s customers have
accepted the goods or services, owe and are obligated to pay the full amounts stated in the
invoices according to their terms, without any dispute, offset, defense, counterclaim or contra
that could reasonably be expected to have, when aggregated with any such other disputes, offsets,
defenses, counterclaims or contras, a Material Adverse Effect. Such Credit Party confirms to the
Lenders that any and all taxes or fees relating to its business, its sales, the Accounts or the
goods relating thereto, are its sole responsibility and that same will be paid by such Credit Party
when due (unless duly contested and adequately reserved for) and that none of said taxes or fees is
or will become a lien on or claim against the Accounts.

     6.27 Representations and Warranties.

     As of the Closing Date, each of the representations and warranties made in the Operative
Documents by each of the Credit Parties and their Subsidiaries, and to the knowledge of each such
Credit Party and its Subsidiaries, each other party thereto is true and correct in all material
respects, and such representations and warranties are hereby incorporated herein by reference with
the same effect as though set forth in their entirety herein, as qualified therein.

     6.28 Material Contracts.

     Schedule 6.28 sets forth a true, correct and complete list of all the Material
Contracts currently in effect on the date hereof. None of the Material Contracts contains
provisions the performance or nonperformance of which have or could reasonably be expected to have
a Material Adverse Effect. All of the Material Contracts are in full force and effect, and no
material defaults currently exist thereunder.

     6.29 Survival of Representations.

     All representations made by such Credit Party in this Credit Agreement (including by
incorporation by reference in the Guaranty Agreement) and in any other Credit Document shall
survive the execution and delivery hereof and thereof.

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     6.30 Affiliate Transactions.

     Except as set forth on Schedule 6.30(a), neither such Credit Party nor any of its
Subsidiaries is a party to or bound by any agreement or arrangement (whether oral or written) to
which any Affiliate of such Credit Party or any of its Subsidiaries is a party. Except as set
forth on Schedule 6.30(b), neither such Credit Party nor any of its Subsidiaries is a party
to or bound by any agreement or arrangement (whether oral or written) to which any Affiliate of
such Credit Party or any of its Subsidiaries is a party except (a) in the ordinary course of and
pursuant to the reasonable requirements of such Credit Party’s or such Subsidiary’s business and
(b) upon fair and reasonable terms no less favorable to such Credit Party and such Subsidiary than
it could obtain in a comparable arm’s-length transaction with an unaffiliated Person.

     6.31 Trade Suppliers.

     Schedule 6.31 is a true, correct and complete list of all of the suppliers who have
sold goods to such Credit Party or any of its Subsidiaries (or their predecessor entities) during
the calendar year ended December 31, 2006, for an amount representing five (5) percent or more of
the accounts of such Credit Party and its Subsidiaries payable for such year.

     6.32 Key Members of Management.

     Schedule 6.32 is a true, correct and complete list of the key members of management
and the members of the Board of Directors or other managing body of such Credit Party as of the
Closing Date.

     6.33 Accuracy and Completeness of Information.

     All factual information heretofore, contemporaneously or hereafter furnished by or on behalf
of the Credit Parties or any of their respective Subsidiaries in writing to the Agent, any Lender,
or the Independent Accountant for purposes of or in connection with this Credit Agreement or any
Credit Documents, or any transaction contemplated hereby or thereby is or will be true and accurate
in all material respects on the date as of which such information is dated or certified and not
incomplete by omitting to state any material fact necessary to make such information not misleading
at such time. There is no fact now known to any officer of any Credit Party or any of its
Subsidiaries which has, or would have, a Material Adverse Effect which fact has not been set forth
herein, in the Financials, or any certificate, opinion or other written statement made or furnished
by any Credit Party to the Agent.

     6.34 Anti-Terrorism Laws.

     (a) General. None of the Credit Parties or their Affiliates is in violation of
any Anti-Terrorism Law or engages in or conspires to engage in any transaction that evades
or avoids, or has the purpose of evading or avoiding, or attempts to violate, any
Anti-Terrorism Law.

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     (b) Executive Order No. 13224. None of the Credit Party or their Affiliates is
any of the following (each a “Blocked Person”):

     (i) a Person owned or controlled by, or acting for or on behalf of, any Person
that is listed in the annex to, or is otherwise subject to the provisions of,
Executive Order No. 13224;

     (ii) a Person or entity with which any bank or other financial institution is
prohibited from dealing or otherwise engaging in any transaction by any
Anti-Terrorism Law;

     (iii) a Person or entity that commits, threatens or conspires to commit or
supports “terrorism” as defined in Executive Order No. 13224;

     (iv) a Person or entity that is named as a “specially designated national” on
the most current list published by the U.S. Treasury Department Office of Foreign
Asset Control at its official website or any replacement website or other
replacement official publication of such list; or

     (v) a Person or entity who is affiliated with a Person or entity listed above.

     (c) None of the Credit Parties or their Affiliates (i) conducts any business or engages
in making or receiving any contribution of funds, goods or services to or for the benefit of
any Blocked Person or (ii) deals in, or otherwise engages in any transaction relating to,
any property or interests in property blocked pursuant to Executive Order No. 13224.

     6.35 Deposit Accounts.

     As of the Closing Date, none of the Credit Parties has any checking, savings or other accounts
at any bank or other financial institution, or any other account where money is or may be deposited
or maintained with any Person that is not described on Schedule 6.35, Schedule 6.35
accurately sets forth the purpose for which each such deposit account is maintained.

     6.36 Force Majeure.

     None of any Credit Party’s business is suffering from effects of fire, accident, strike,
drought, storm, earthquake, embargo, tornado, hurricane, act of God, acts of public enemy or other
casualty that would reasonably be likely to have a Material Adverse Effect.

     6.37 [Intentionally Omitted].

     6.38 Anti-Terrorism Laws.

     No Borrower, Guarantor or any of their Subsidiaries is an “enemy” or an “ally of the enemy”
within the meaning of Section 2 of the Trading with the Enemy Act of the United States

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of America (50 U.S.C. App. §§ 1 et seq.), as amended. No Borrower, Guarantor or any of their
Subsidiaries is in violation of (a) the Trading with the Enemy Act, as amended, (b) any of the
foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B,
Chapter V, as amended) or any enabling legislation or executive order relating thereto or (c) the
Patriot Act. No Borrower, Guarantor or any of their Subsidiaries (i) is a blocked person described
in Section 1 of the Anti-Terrorism Order or (ii) to the best of its knowledge, engages in any
dealings or transactions, or is otherwise associated, with any such blocked person.

     6.39 Compliance with OFAC Rules and Regulations.

     None of the Borrowers, Guarantors or their Subsidiaries or their respective Affiliates (a) is
a Sanctioned Person, (b) has more than 15% of its assets in Sanctioned Countries, or (c) derives
more than 15% of its operating income from investments in, or transactions with Sanctioned Persons
or Sanctioned Countries. No part of the proceeds of any Loan hereunder will be used directly or
indirectly to fund any operations in, finance any investments or activities in or make any payments
to, a Sanctioned Person or a Sanctioned Country.

     6.40 Compliance with FCPA.

     Each of the Borrowers and Guarantors and their Subsidiaries is in compliance with the Foreign
Corrupt Practices Act, 15 U.S.C. §§ 78dd-1, et seq., and any foreign counterpart thereto. None of
the Borrowers, Guarantors or their Subsidiaries has made a payment, offering, or promise to pay, or
authorized the payment of, money or anything of value (a) in order to assist in obtaining or
retaining business for or with, or directing business to, any foreign official, foreign political
party, party official or candidate for foreign political office, (b) to a foreign official, foreign
political party or party official or any candidate for foreign political office, and (c) with the
intent to induce the recipient to misuse his or her official position to direct business wrongfully
to such Borrower, Guarantor or its Subsidiary or to any other Person, in violation of the Foreign
Corrupt Practices Act, 15 U.S.C. §§ 78dd-1, et seq.

     6.41 Obligations Constitute Permitted Indebtedness.

     The Obligations constitute permitted indebtedness under the Senior Note Indenture.

ARTICLE VII

AFFIRMATIVE COVENANTS

     Until termination of this Credit Agreement and the Commitments hereunder and payment and
satisfaction of all Obligations due or to become due hereunder, each Borrower and (by execution and
delivery of the Guaranty Agreement or of a joinder thereto and incorporation by reference therein)
each Guarantor agrees that, unless the Required Lenders shall have otherwise consented in writing:

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     7.1 Financial Information.

     The Company will furnish to the Lenders the following information within the following time
periods:

     (a) within ninety (90) days after the close of the fiscal year of the Company, (i) the
audited consolidated and consolidating balance sheets and statements of income and retained
earnings and of changes in cash flow of the Company and its Subsidiaries, for such year,
each in reasonable detail, each setting forth in comparative form the corresponding figures
for the preceding year, prepared in accordance with GAAP, and accompanied by a report and
opinion of Deloitte & Touche LLP or other nationally recognized accounting firm (which
report and opinion shall be prepared in accordance with generally accepted auditing
standards and shall not be subject to any “going concern” or like assumption, qualification
or exception or any assumption, qualification or exception as to the scope of the audit) or
other Independent Accountant selected by the Company and approved by the Required Lenders
and (ii) a divisional operating income analysis for such year, in reasonable detail, setting
forth in comparative form the corresponding analysis for the preceding year, prepared by the
Company. The delivery by electronic mail or other form of electronic distribution reasonably
satisfactory to the Agent of a Form 10-K as filed with the SEC within 90 days after the end
of such fiscal year shall be deemed to satisfy all of the requirements contained in this
Section 7.1(a);

     (b) within fifty days (50) after the end of each fiscal quarter of the Company other
than the final fiscal quarter, unaudited consolidated and consolidating financial statements
and divisional operating income analyses similar to those required by clause (a) above as of
the end of such period and for such period then ended and for the period from the beginning
of the current fiscal year to the end of such period, setting forth in comparative form the
corresponding figures for the comparable period in the preceding fiscal year and to the
figures set forth in the business plan provided pursuant to Section 7.1(h) for the
comparable period, prepared in accordance with GAAP (except that such quarterly statements
need not include footnotes) and certified by both the Chief Financial Officer and the Chief
Executive Officer of the Company. The delivery by electronic mail or other form of
electronic distribution reasonably satisfactory to the Agent of a Form 10-Q as filed with
the SEC within 45 days after the end of such fiscal quarter shall be deemed to satisfy all
of the requirements contained in this Section 7.1(b);

     (c) for each month for which the Fixed Charge Coverage Ratio is to be tested pursuant
to the provisions of Section 8.1, within thirty (30) days after the end of each fiscal month
of the Company other than the final month of each fiscal quarter, unaudited consolidated and
consolidating financial statements and divisional operating income analyses similar to those
required by clause (a) above as of the end of such period and for such period then ended and
for the period from the beginning of the current fiscal year to the end of such period,
setting forth in comparative form the corresponding figures for the comparable period in the
preceding fiscal year and to the figures set forth in the business plan provided pursuant to
Section 7.1(h) for the comparable period, prepared in accordance with GAAP (except
that such monthly statements need not include footnotes)

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and certified by the Chief Financial Officer or the Chief Executive Officer of the Company;

     (d) at the time of delivery of each quarterly and annual statement, a Compliance
Certificate signed by both the Chief Financial Officer and the Chief Executive Officer of
the Company stating that both signing officers have caused this Credit Agreement to be
reviewed and have no knowledge of any Default or Event of Default, during such quarter or at
the end of such year, or, if such officer has such knowledge, specifying each Default or
Event of Default and the nature thereof, and showing compliance by the Company as of the
date of such statement with the financial covenants set forth in Article VIII and the other
applicable covenants set forth in Exhibit K;

     (e) not later than 12:00 Noon on the 15th day of each month (or if such day
is not a Business Day, then on the next succeeding Business Day), a Borrowing Base
Certificate, duly completed and certified by the Company’s chief financial officer or a
person designated by the chief financial officer, detailing the Borrowers’ Eligible Accounts
Receivable as of the last day of the immediately preceding month and Eligible Inventory as
of the most recent date of determination which shall be determined not less frequently than
monthly. In addition, on the 15th day of each month (or if such day is not a Business Day,
then on the next succeeding Business Day), the Company shall furnish a written report to the
Lenders setting forth (i) the accounts receivable aged trial balance at the immediately
preceding month end for each account debtor, aged by due date, which aging reports shall
indicate which Accounts are current, up to 30, 30 to 60 and over 60 days past due, and which
Accounts are up to 30, 30 to 60, 60 to 90, 90 to 120 days and over 120 days past their
invoice date, and shall list the names and addresses of all applicable account debtors, (ii)
an accounts payable aged trial balance at the immediately preceding month end for each
account creditor, aged by due date, which aging reports shall indicate which Accounts are
current, up to 30, 30 to 60 and over 60 days past due and shall list the names and addresses
of all applicable account creditors), (iii) a schedule of Inventory owned by each Borrower
by location and category; and (iv) an accounts receivable aged trial balance at the
immediately preceding month end for each account debtor that pays through a Buying
Association, organized and listed by Buying Association, and aged by due date, which aging
reports shall indicate which Accounts are current, up to 30, 30 to 60 and over 60 days past
due, and which Accounts are up to 30, 30 to 60, 60 to 90, 90 to 120 days and over 120 days
past their invoice date, and shall list the names and addresses of all applicable account
debtors, such information to be presented by individual account debtor and by Buying
Association (aggregated for all account debtors which are members of a single Buying
Association). The Agent may, but shall not be required to, rely on each Borrowing Base
Certificate delivered hereunder as accurately setting forth the available Borrowing Base for
all purposes of this Credit Agreement until such time as a new Borrowing Base Certificate is
delivered to the Agent in accordance herewith; Borrowing Base Certificates may be prepared
and submitted to the Lenders on a more frequent basis than monthly as required by Agent,
provided that such certificate complies with the requirements set forth elsewhere
herein;

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     (f) promptly upon receipt thereof, copies of all management letters and other material
reports which are submitted to the Company by its Independent Accountant in connection with
any annual or interim audit of the books of the Company made by such accountants;

     (g) as soon as practicable but, in any event, within ten (10) Business Days after the
issuance thereof, copies of such other financial statements and reports as the Company shall
send to its stockholders as such, and copies of all regular and periodic reports which the
Company may be required to file with the Securities and Exchange Commission or any similar
or corresponding governmental commission, department or agency substituted therefor, or any
similar or corresponding Governmental Authority;

     (h) no later than sixty days after the beginning of each fiscal year during which this
Credit Agreement is in effect, a business plan for the immediately succeeding fiscal year of
the Company which includes a projected consolidated balance sheet and statement of income
for such fiscal year, a projected consolidated statement of cash flows for such fiscal year
and projected borrowing base availability for such fiscal year, in each case, prepared on a
monthly basis for such fiscal year;

     (i) promptly upon receipt thereof, copies of all notices delivered to the Company or
sent by or on behalf of the Company with respect to (i) the Senior Note Debt (2004) or (ii)
the Senior Note Debt (2007), including, without limitation, any notice of default and all
reports required by and/or delivered to the holders of the Senior Notes (2004) or the
holders of the Senior Notes (2007) (the Company expressly agreeing to furnish all such
notices by telecopy);

     (j) promptly and in any event within two (2) Business Days after becoming aware of the
occurrence of a Default or Event of Default, a certificate of the chief executive officer or
chief financial officer of the Company specifying the nature thereof and the Credit Parties’
proposed response thereto, each in reasonable detail; and

     (k) with reasonable promptness, such other data as the Agent or any of the Lenders may
reasonably request.

     7.2 Inventory.

     Within thirty (30) days after the end of each month, upon the request of the Agent from time
to time, the Credit Parties will provide to the Agent written statements listing items of Inventory
in reasonable detail as requested by the Agent. The Credit Parties conduct cycle counts of
Inventory from time to time and will conduct at least annually (and with respect to the Copperfield
Entities, at least monthly) a physical count of any Inventory for which perpetual inventory with
cycle-counting adjustments is not maintained. The Credit Parties will permit the Agent or its
representative to observe any such count and shall furnish a copy of such count promptly to the
Agent accompanied by a report of the value (valued at FIFO) of such Inventory; provided
that the Credit Parties will conduct such a physical count or cycle count at such other times and
as of such dates as the Agent shall reasonably request, not to exceed, in the case of a

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physical count, one (1) per calendar year or, after the occurrence and during the continuance of an
Event of Default, as often as requested by the Agent.

     7.3 Corporate Existence.

     Each Credit Party and each of its Subsidiaries (a) will maintain their current corporate or
other organizational existence, will maintain in full force and effect all material licenses,
bonds, franchise, leases, trademarks and qualifications to do business, (b) will obtain or maintain
patents, contracts and other rights necessary or desirable to the profitable conduct of their
businesses, (c) will continue in, and limit their operations to, the same general lines of business
as that presently conducted by them and (d) will comply with all applicable laws and regulations of
any federal, state or local Governmental Authority, except where noncompliance could not reasonably
be expected to have a Material Adverse Effect.

     7.4 ERISA.

     The Credit Party will deliver to the Agent, at the Credit Party’ expense, the following
information at the times specified below:

     (a) within ten (10) Business Days after any Credit Party or any of its Subsidiaries or
ERISA Affiliates knows or has reason to know that a Termination Event has occurred, a
written statement of the chief financial officer of the Company describing such Termination
Event and the action, if any, which such Credit Party or other such entities have taken, are
taking or propose to take with respect thereto, and when known, any action taken or
threatened by the Internal Revenue Service, DOL or PBGC with respect thereto;

     (b) within ten (10) Business Days after any Credit Party or any of its Subsidiaries or
ERISA Affiliates knows or has reason to know that a prohibited transaction (as defined in
Section 406 of ERISA and Section 4975 of the Internal Revenue Code) has occurred, a
statement of the chief financial officer of the Company describing such transaction and the
action which such Credit Party or other such entities have taken, are taking or propose to
take with respect thereto;

     (c) within thirty (30) Business Days after the filing thereof with the DOL, Internal
Revenue Service or PBGC, copies of each annual report (form 5500 series), including all
schedules and attachments thereto, filed with respect to each Benefit Plan;

     (d) within thirty (30) Business Days after receipt by any Credit Party or any of its
Subsidiaries or ERISA Affiliates of each actuarial report for any Benefit Plan or
Multiemployer Plan and each annual report for any Multiemployer Plan, copies of each such
report;

     (e) within three (3) Business Days after the filing thereof with the Internal Revenue
Service, a copy of each funding waiver request filed with respect to any Benefit

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Plan and all communications received by any Credit Party or any of its Subsidiaries or ERISA
Affiliates with respect to such request;

     (f) within ten (10) Business Days upon the occurrence thereof, notification of any
increase in the benefits of any existing Plan or the establishment of any new Plan or the
commencement of contributions to any Plan to which any Credit Party or any of its
Subsidiaries or ERISA Affiliates was not previously contributing;

     (g) within three (3) Business Days after receipt by any Credit Party or any of its
Subsidiaries or ERISA Affiliates of the PBGC’s intention to terminate a Benefit Plan or to
have a trustee appointed to administer a Benefit Plan, copies of each such notice;

     (h) within ten (10) Business Days after receipt by any Credit Party or any of its
Subsidiaries or ERISA Affiliates of any favorable or unfavorable determination letter from
the Internal Revenue Service regarding the qualification of a Plan under Section 401(a) of
the Internal Revenue Code, copies of each such letter;

     (i) within ten (10) Business Days after receipt by any Credit Party or any of its
Subsidiaries or ERISA Affiliates of a notice regarding the imposition of withdrawal
liability, copies of each such notice;

     (j) within ten (10) Business Days after any Credit Party or any of its Subsidiaries or
ERISA Affiliates fail to make a required installment or any other required payment under
Section 412 of the Internal Revenue Code on or before the due date for such installment or
payment, a notification of such failure; and

     (k) within three (3) Business Days after any Credit Party or any of its Subsidiaries or
ERISA Affiliates knows (a) a Multiemployer Plan has been terminated, (b) the administrator
or plan sponsor of a Multiemployer Plan intends to terminate a Multiemployer Plan, or (c)
the PBGC has instituted or will institute proceedings under Section 4042 of ERISA to
terminate a Multiemployer Plan, a written statement setting forth any such event or
information.

     For purposes of this Section 7.4, any Credit Party or any of its Subsidiaries or ERISA
Affiliates shall be deemed to know all facts known by the administrator of any Plan of which such
entity is the plan sponsor.

     The Credit Parties will establish, maintain and operate all Plans to comply in all material
respects with the provisions of ERISA, the Internal Revenue Code, and all other applicable laws,
and the regulations and interpretations thereunder other than to the extent that the Credit Parties
are in good faith contesting by appropriate proceedings the validity or implication of any such
provision, law, rule, regulation or interpretation.

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     7.5 Proceedings or Adverse Changes.

     The Credit Parties will as soon as possible, and in any event within five (5) Business Days
after any Credit Party learns of the following, give written notice to the Agent of any
proceeding(s) being instituted or threatened to be instituted by or against any Credit Party or any
of its Subsidiaries in any federal, state, local or foreign court or before any commission or other
regulatory body (federal, state, local or foreign) that, if adversely determined, could reasonably
be expected to have a Material Adverse Effect. Provision of such notice by the Credit Parties will
not constitute a waiver or excuse of any Default or Event of Default occurring as a result of such
changes or events.

     7.6 Environmental Matters.

     Each Credit Party will conduct its business and the businesses of each of the Subsidiaries so
as to comply in all material respects with all environmental laws, regulations, directions,
ordinances, criteria and guidelines in all jurisdictions in which any of them is or may at any time
be doing business including, without limitation, environmental land use, occupational safety or
health laws, regulations, directions, ordinances, criteria, guidelines, requirements or permits in
all jurisdictions in which any of them is or may at any time be doing business, except to the
extent that any Credit Party or any of its Subsidiaries is contesting, in good faith by appropriate
legal proceedings, any such law, regulation, direction, ordinance, criteria, guideline, or
interpretation thereof or application thereof; provided, further, that each Credit Party and each
of the Subsidiaries will comply with the order of any court or other governmental body of the
applicable jurisdiction relating to such laws unless such Credit Party or Subsidiary shall
currently be prosecuting an appeal or proceedings for review and shall have secured a stay of
enforcement or execution or other arrangement postponing enforcement or execution pending such
appeal or proceedings for review. If any Credit Party or any of its Subsidiaries shall (a) receive
notice that any material violation of any federal, state or local environmental law, regulation,
direction, ordinance, criteria or guideline may have been committed or is about to be committed by
such Credit Party or any of its Subsidiaries, (b) receive notice that any administrative or
judicial complaint or order has been filed or is about to be filed against such Credit Party or any
of its Subsidiaries alleging material violations of any federal, state or local environmental law,
regulation, direction, ordinance, criteria or guideline or requiring such Credit Party or any of
its Subsidiaries to take any action in connection with the release of toxic or hazardous substances
into the environment or (c) receive any notice from a federal, state, or local governmental agency
or private party alleging that such Credit Party or any of its Subsidiaries may be liable or
responsible for costs associated with a response to or cleanup of a release of a toxic or hazardous
substance into the environment or any damages caused thereby, the Credit Parties will provide the
Agent with a copy of such notice within fifteen (15) days after the receipt thereof by the
applicable Credit Party or any of its Subsidiaries. Within fifteen (15) days after any Credit
Party learns of the enactment or promulgation of any federal, state or local environmental law,
regulation, direction, ordinance, criteria or guideline which could reasonably have a Material
Adverse Effect, such Credit Party will provide the Agent with notice thereof. Each Credit Party
will promptly take all actions necessary to prevent the imposition of any Liens on any of its
properties arising out of or related to any environmental matters. After the occurrence and during
the continuation of an Event of Default, at the request of the Agent from time to time, and

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at the sole cost and expense of the Credit Parties, the Credit Parties will retain an environmental
consulting firm, satisfactory to the Agent in its reasonable discretion, to conduct an
environmental review and audit of the properties of the Credit Parties and their Subsidiaries
located in the United States and provide to the Agent and each Lender a copy of any reports
delivered in connection therewith.

     7.7 Books and Records; Inspection.

     Each Credit Party will, and will cause each of its Subsidiaries to, maintain books and records
pertaining to the Collateral in such detail, form and scope as is consistent with good business
practice. Each Credit Party agrees that the Agent or its agents may enter upon the premises of
each Credit Party or any of its Subsidiaries at any time and from time to time upon reasonable
prior notice, during normal business hours, and at any time at all on and after the occurrence of
an Event of Default which continues beyond the expiration of any grace or cure period applicable
thereto, and which has not otherwise been waived by the Agent, for the purpose of (a) enabling the
Agent’s internal auditors or outside third party designees to conduct field examinations at such
Credit Party’s expense, (b) inspecting the Collateral, (c) inspecting and/or copying (at such
Credit Party’ expense) any and all records pertaining thereto, (d) discussing the affairs, finances
and business of any Credit Party or with any officers, employees and directors of any Credit Party
with the Independent Accountant and (e) verifying Eligible Accounts Receivable and/or Eligible
Inventory. The Lenders, in the reasonable discretion of the Agent, may accompany the Agent at
their sole expense in connection with the foregoing inspections. The Agent expects to conduct two
field examinations per year, but reserves the right, in its sole discretion, to conduct a field
examination at any time, or with less frequency, upon reasonable notice to the Company at the
Borrowers’ expense; provided, that so long as no Event of Default has occurred and is
continuing, the Credit Parties shall only be required to pay the fees and expenses for two such
field examinations in any single year. The Agent reserves the right, in its sole discretion, to
conduct inventory appraisals at any time at the Borrowers’ expense, upon reasonable notice to the
Company; provided, that so long as no Event of Default has occurred and is continuing, the
Credit Parties shall only be required to pay the fees and expenses for one inventory appraisal in
any single year. Each Credit Party agrees to afford the Agent thirty (30) days prior written
notice of any change in the location of any Collateral (other than Inventory held for shipment by
third Persons, Inventory in transit, Inventory held for processing by third Persons or immaterial
quantities of assets, equipment or Inventory), its jurisdiction of organization or the location of
its chief executive office or place of business from the locations specified in Schedule
6.7, and to execute in advance of such change, cause to be filed and/or delivered to the Agent
any financing statements or other documents required by the Agent, all in form and substance
satisfactory to the Agent. Each Credit Party agrees to advise the Agent promptly, in sufficient
detail, of any substantial change relating to the type, quantity or quality of the Collateral or
any event which could reasonably be expected to have a Material Adverse Effect. Each Credit Party
agrees to furnish any Lender with such other information regarding its business affairs and
financial condition as such Lender may reasonably request from time to time.

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     7.8 Collateral Records.

     Each Credit Party will, and will cause each of its Subsidiaries to, execute and deliver to the
Agent, from time to time, solely for the Agent’s convenience in maintaining a record of the
Collateral, such written statements and schedules as the Agent may reasonably require, including
without limitation those described in Section 7.1, designating, identifying or describing
the Collateral pledged to the Lenders hereunder. Any Credit Party’s failure, however, to promptly
give the Agent such statements or schedules shall not affect, diminish, modify or otherwise limit
the Lenders’ security interests in the Collateral. Such Credit Party agrees to maintain such books
and records regarding Accounts and the other Collateral as the Agent may reasonably require, and
agrees that such books and records will reflect the Lenders’ interest in the Accounts and such
other Collateral.

     7.9 Security Interests.

     Each Credit Party will defend the Collateral against all claims and demands of all Persons at
any time claiming the same or any interest therein. Each Credit Party agrees to, and will cause
the other Credit Parties to, comply with the requirements of all state and federal laws in order to
grant to the Lenders valid and perfected first security interest in the Collateral. The Agent is
hereby authorized by each Credit Party to file any financing statements covering the Collateral
whether or not any Credit Party’s signature appears thereon. Each Credit Party agrees to do
whatever the Agent may reasonably request, from time to time, by way of: filing notices of liens,
financing statements, fixture filings and amendments, renewals and continuations thereof;
cooperating with the Agent’s custodians; keeping stock records; obtaining waivers from landlords
and mortgagees and from warehousemen, fillers, processors and packers and their respective
landlords and mortgagees; paying claims, which might if unpaid, become a Lien (other than a
Permitted Lien) on the Collateral; assigning its rights to the payment of Accounts pursuant to the
Assignment of Claims Act of 1940, as amended (31 U.S.C. §3727 et. seq.) (the failure of which to so
assign will permit the Agent to exclude such Accounts from the Borrowing Base); and performing such
further acts as the Agent may reasonably require in order to effect the purposes of this Credit
Agreement and the other Credit Documents. Any and all fees, costs and expenses of whatever kind
and nature (including any Taxes, reasonable attorneys’ fees or costs for insurance of any kind),
which the Agent may incur with respect to the Collateral or the Obligations: in filing public
notices; in preparing or filing documents; making title examinations or rendering opinions; in
protecting, maintaining, or preserving the Collateral or its interest therein; in enforcing or
foreclosing the Liens hereunder, whether through judicial procedures or otherwise; or in defending
or prosecuting any actions or proceedings arising out of or relating to its transactions with any
Credit Party or any of its Subsidiaries under this Credit Agreement or any other Credit Document,
will be borne and paid by the Credit Parties. If same are not promptly paid by the Credit Parties,
the Agent may pay same on the Credit Parties’ behalf, and the amount thereof shall be an
Obligation secured hereby and due to the Agent on demand. If any Credit Party acquires or leases
any Real Estate after the date hereof, such Credit Party will promptly (i) submit to the Agent an
updated Schedule 6.19 pursuant to Section 7.23 and (ii) with respect to all such
Real Estate that is owned, and all such Real Estate that is leased and is designated in writing by
the Agent in its sole discretion, execute and deliver to the Agent a Mortgage on such Real Estate,
and deliver to the Agent the other items reasonably requested by

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the Agent in connection therewith, including, without limitation, surveys and flood hazard
certificates, and all provisions of this Credit Agreement (including, without limitation, the
foregoing provisions of this Section 7.9 and all other applicable representations,
warranties and covenants) that are applicable to Real Estate or Mortgages shall apply thereto.

     7.10 Insurance; Casualty Loss.

     Each Credit Party will, and will cause each of the Subsidiaries to, maintain public liability
insurance, third party property damage insurance and replacement value insurance on their assets
under such policies of insurance, with such insurance companies, in such amounts and covering such
risks as are at all times satisfactory to the Agent in its reasonable discretion. All policies
covering the Collateral are to name the applicable Credit Parties and the Agent, for the benefit of
the Lenders, as loss payees in case of loss, as their interests may appear, and all liability
policies are to name the applicable Credit Parties and the Agent as additional insured, as their
interests may appear, and are to contain such other provisions as the Agent may reasonably require
to fully protect the Agent’s interest in the Collateral and to any payments to be made under such
policies. True copies of all original insurance policies or certificates of insurance evidencing
such insurance are to be delivered to the Agent on or prior to the Closing Date, premium prepaid,
with the loss payable endorsement in the Agent’s favor, and shall provide for not less than thirty
(30) days prior written notice to the Agent, of the exercise of any right of cancellation. In the
event any Credit Party or any of its Subsidiaries fail to respond in a timely and appropriate
manner (as determined by the Agent in its sole discretion) with respect to collecting under any
insurance policies required to be maintained under this Section 7.10, the Agent shall have
the right, in the name of the Agent, such Credit Party or Subsidiary, to file claims under such
insurance policies, to receive and give acquittance for any payments that may be payable
thereunder, and to execute any and all endorsements, receipts, releases, assignments, reassignments
or other documents that may be necessary to effect the collection, compromise or settlement of any
claims under any such insurance policies. Each Credit Party will provide written notice to the
Lenders of the occurrence of any of the following events within five (5) Business Days after the
occurrence of such event: any asset or property owned or used by any Credit Party or any of its
Subsidiaries is (i) materially damaged or destroyed, or suffers any other loss or (ii) is
condemned, confiscated or otherwise taken, in whole or in part, or the use thereof is otherwise
diminished so as to render impracticable or unreasonable the use of such asset or property for the
purpose to which such asset or property were used immediately prior to such condemnation,
confiscation or taking, by exercise of the powers of condemnation or eminent domain or otherwise,
and in either case the amount of the damage, destruction, loss or diminution in value of the
Collateral which is in excess of $500,000 (collectively, a “Casualty Loss”). Each Credit
Party will diligently file and prosecute its claim or claims for any award or payment in connection
with a Casualty Loss. In the event of a Casualty Loss, the Credit Parties will pay to the Agent,
for the benefit of the Lenders, promptly upon receipt thereof, any and all insurance proceeds and
payments received by any Credit Party or any of its Subsidiaries on account of damage, destruction
or loss of all or any portion of the Collateral or other assets of the Credit Parties. The Agent
may, at its election and in its sole discretion, either (a) apply the proceeds realized from
Casualty Losses received by the Agent to payment of accrued and unpaid interest or outstanding
principal of the Revolving Loans or (b) pay such proceeds to the Credit Parties to be used to
repair, replace or rebuild the asset or property or portion thereof that was the

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subject of the Casualty Loss. After the occurrence and during the continuance of an Event of
Default, (i) no settlement on account of any such Casualty Loss shall be made without the consent
of the Lenders and (ii) the Agent may participate in any such proceedings and the Credit Parties
will deliver to the Agent such documents as may be requested by the Agent to permit such
participation and will consult with the Agent, its attorneys and agents in the making and
prosecution of such claim or claims. Each Credit Party hereby irrevocably authorizes and appoints
the Agent its attorney-in-fact, after the occurrence and continuance of an Event of Default, to
collect and receive for any such award or payment and to file and prosecute such claim or claims,
which power of attorney shall be irrevocable and shall be deemed to be coupled with an interest,
and each Credit Party shall, upon demand of the Agent, make, execute and deliver any and all
assignments and other instruments sufficient for the purpose of assigning any such award or payment
to the Agent for the benefit of the Lenders, free and clear of any encumbrances of any kind or
nature whatsoever.

     7.11 Taxes.

     Each Credit Party will, and will cause each of the Subsidiaries to, pay, when due and in any
event prior to delinquency, all Taxes lawfully levied or assessed against any Credit Party, any of
its Subsidiaries or any of the Collateral; provided, however, that unless such
Taxes have become a federal tax or ERISA Lien on any of the assets of any Credit Party or any of
its Subsidiaries, no such Tax need be paid if the same is being contested in good faith, by
appropriate proceedings promptly instituted and diligently conducted and if an adequate reserve or
other appropriate provision shall have been made therefor as required in order to be in conformity
with GAAP.

     7.12 Compliance With Laws.

     Each Credit Party will, and will cause each of the Subsidiaries to, comply with all acts,
rules, regulations, orders, directions and ordinances of any legislative, administrative or
judicial body or official applicable to the Collateral or any part thereof, or to the operation of
its business, except where the failure to so comply could not reasonably be expected to have a
Material Adverse Effect.

     7.13 Use of Proceeds.

     The proceeds of any advances made hereunder shall be used by the Borrowers solely (a) to
refinance existing Indebtedness of the Borrowers, (b) to pay a portion of the purchase price under
the Purchase Agreement and fees and expenses incurred in connection with the transactions
contemplated thereby, and (c) for working capital and other general corporate purposes, including
capital expenditures; provided, however, that in any event, no portion of the
proceeds of any such advances shall be used by the Borrowers for the purpose of purchasing or
carrying any “margin stock” (as defined in Regulation U of the Board of Governors of the Federal
Reserve System) or for any other purpose which violates the provisions or Regulation U or X of said
Board of Governors or for any other purpose in violation of any applicable statute or regulation,
or of the terms and conditions of this Credit Agreement.

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     7.14 Fiscal Year; Accounting Policies.

     Each Credit Party agrees that it will not change its fiscal year from a year ending December
31 unless required by law, in which case such Credit Party will give the Agent at least thirty (30)
days prior written notice thereof. Subject to Section 1.2, each Credit Party agrees that
it will not change its accounting policies from those used to prepare the financial statements
delivered pursuant to Section 5.1(c) without the prior written consent of the Agent.

     7.15 Notification of Certain Events.

     Each Credit Party agrees that it will promptly notify the Agent of the occurrence of any of
the following events:

     (a) any Material Contract of any Credit Party or any of its Subsidiaries is terminated
or amended in any material respect or any new Material Contract is entered into (in which
event each Credit Party shall provide the Agent with a copy of such Material Contract); or

     (b) any of the material terms upon which suppliers to any Credit Party or any of its
Subsidiaries do business with any Credit Party or any Subsidiary are changed or amended in
any material respect; or

     (c) any order, judgment or decree in excess of $1,000,000 shall have been entered
against any Credit Party or any of its Subsidiaries or any of their respective properties or
assets, or

     (d) any notification of violation of any law or regulation or any inquiry shall have
been received by any Credit Party or any of its Subsidiaries from any local, state, federal
or foreign Governmental Authority or agency.

     7.16 Additional Borrowers and Guarantors.

     (a) The Credit Parties will not form or acquire any Foreign Subsidiary.

     (b) Upon any Person becoming a direct or indirect Subsidiary of the Company (other than
a Subsidiary of Copperfield), the Credit Parties will provide the Agent with written notice
thereof setting forth information in reasonable detail describing all of the assets of such
Person and shall (i) cause any such Person that is a Domestic Subsidiary to execute and
deliver to the Agent a Joinder Agreement in substantially the form of Exhibit M,
causing such Subsidiary to become a party to (A) this Credit Agreement, as a joint and
several “Borrower”, (B) the Security Agreement, as an “Obligor” granting a first priority
Lien on its personal property, subject to Permitted Liens, (C) the Contribution Agreement,
as a “Contributing Party” and (D) as appropriate, the Pledge Agreement, as a “Pledgor”,
causing all of its Capital Stock (or in the case of any Foreign Subsidiary directly owned by
such Domestic Subsidiary, and without waiving the requirement for the prior consent of the
Required Lenders for the formation or acquisition

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thereof, sixty-five percent (65%) of its Capital Stock, and with respect to all other
Foreign Subsidiaries, no pledge shall be required unless required by the Agent) to be
delivered to the Agent (together with undated stock powers signed in blank and pledged to
the Agent), (ii) cause any such Person that is a Domestic Subsidiary to execute and deliver
to the Agent Revolving Notes in favor of the Lenders, and, if it owns any Real Estate, a
Mortgage thereon in favor of the Agent and (iii) deliver such other documentation as the
Agent may reasonably request in connection with the foregoing, including, without
limitation, appropriate UCC-1 financing statements, Acknowledgment Agreements, certified
resolutions and other organizational and authorizing documents of such Person and favorable
opinions of counsel to such Person (which shall cover, among other things, the legality,
validity, binding effect and enforceability of the documentation referred to above), all in
form, content and scope reasonably satisfactory to the Agent; provided,
however, in lieu of the foregoing, at the option of the Agent, the Credit Parties
shall cause such Person to execute and deliver to the Agent a joinder agreement in
substantially the form of Exhibit M causing such Subsidiary to become a party to the
Guaranty Agreement, as a joint and several “Guarantor”, and each of the Contribution
Agreement and the Security Documents described in clauses (i)(B) through (D) above, as
applicable and with the same effect set forth above, and (3), if it owns or leases any Real
Estate, a Mortgage thereon in favor of the Agent, and to delivery such additional
documentation of the types described in clause (iii) above, all as the Agent reasonably
shall request.

     (c) Upon any Person becoming a direct or indirect Subsidiary of Copperfield, the Credit
Parties will provide the Agent with written notice thereof setting forth information in
reasonable detail describing all of the assets of such Person and shall (i) cause such
Person to execute and deliver to the Agent a joinder agreement in substantially the form of
Exhibit M causing such Subsidiary to become a party to (A) the Guaranty Agreement,
as a joint and several “Guarantor”, (B) the Copperfield Entity Security Agreement, as an
“Obligor” granting a first priority Lien on certain of its personal property, subject to
Permitted Liens, and (C) the Contribution Agreement, as a “Contributing Party”, and (ii)
deliver such other documentation as the Agent may reasonably request in connection with the
foregoing, including, without limitation, appropriate UCC-1 financing statements,
Acknowledgment Agreements, certified resolutions and other organizational and authorizing
documents of such Person and favorable opinions of counsel to such Person (which shall
cover, among other things, the legality, validity, binding effect and enforceability of the
documentation referred to above), all in form, content and scope reasonably satisfactory to
the Agent.

     7.17 Schedules of Accounts and Purchase Orders.

     In furtherance of the continuing assignment and security interest in the Accounts of each
Credit Party granted pursuant to the Security Agreement and the Copperfield Entity Security
Agreement, upon the creation of Accounts, each Credit Party will execute and deliver to the Agent
in such form and manner as the Agent may require, solely for its convenience in maintaining records
of collateral, such confirmatory schedules of Accounts, and other appropriate reports designating,
identifying and describing the Accounts as the Agent may

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require. In addition, upon the Agent’s request, each Credit Party will provide the Agent with
copies of agreements with, or purchase orders from, the customers of each Credit Party and its
Subsidiaries, and copies of invoices to customers, proof of shipment or delivery and such other
documentation and information relating to said Accounts and other collateral as the Agent may
require. Failure to provide the Agent with any of the foregoing shall in no way affect, diminish,
modify or otherwise limit the security interests granted herein. Each Credit Party hereby
authorizes the Agent to regard such Credit Party’s or any such Subsidiary’s printed name or rubber
stamp signature on assignment schedules or invoices as the equivalent of a manual signature by such
Credit Party’s or such Subsidiary’s authorized officers or agents.

     7.18 Collection of Accounts.

     Unless (a) Excess Availability shall fall below $10,000,000 for five (5) or more consecutive
Business Days (an “Excess Availability Event”) or (b) an Event of Default has occurred and
is continuing, and the Agent or the Required Lenders shall have, in their sole discretion, elected
to enforce, collect and receive all amounts owing on the Accounts and/or other Collateral (each a
“Cash Management Event”), each Borrower may and will enforce, collect and receive all
amounts owing on the Accounts and other Collateral, for the benefit, and on behalf, of the Lenders,
but at the Borrowers’ sole expense in accordance with the provisions of Section 2.4(b)
hereof; such privilege shall terminate automatically, however, if an Event of Default has occurred
and is continuing under Section 11.1(a) or (f) hereof. Upon the occurrence and during the
continuance of a Cash Management Event (i) the Agent shall be entitled to enforce, collect and
receive all amounts owing on the Accounts, from the account debtors and/or any Buying Association,
and all other amounts for the Lenders’ benefit and on the Lenders’ behalf (but at the Credit
Parties’ expense) pursuant to cash management arrangements satisfactory to the Agent and in
accordance with the Security Documents, (ii) any checks, cash, notes or other instruments or
property received by any Credit Party or any of its Subsidiaries with respect to any Accounts
and/or other Collateral shall be held by such Credit Party or such Subsidiary in trust for the
benefit of the Lenders, separate from such Credit Party’s or Subsidiary’s own property and funds,
and immediately turned over in accordance with Section 2.4(b) with proper assignments or
endorsements and (iii) no checks, drafts or other instruments received by the Agent shall
constitute final payment unless and until such instruments have actually been collected.

     7.19 Notice; Credit Memoranda; and Returned Goods.

     Each Credit Party will notify the Agent promptly of any matters materially affecting the
value, enforceability or collectibility of any Account, and of all material customer disputes,
offsets, defenses, counterclaims, returns and rejections, and all reclaimed or repossessed
merchandise or goods, provided, however, that such notice shall only be required as to any such
matter that affects Accounts outstanding at any one time from any account debtor, which affected
Accounts have a value greater than $500,000. Each Credit Party will issue credit memoranda
promptly (with duplicates to the Agent upon its request for same) upon accepting returns or
granting allowances, and may continue to do so until the occurrence of an Event of Default which
continues beyond the expiration of the applicable grace or cure period, or which has not otherwise
been waived by the Required Lenders. After the occurrence and during the

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continuance of an Event of Default, each Credit Party agrees that all returned, reclaimed or
repossessed merchandise or goods shall be set aside by such Credit Party, marked with the Lenders’
name and held by such Credit Party for the Lenders’ account as owner and assignee.

     7.20 Acknowledgment Agreements.

     Each Credit Party will assist the Agent in obtaining executed Acknowledgment Agreements from
each of the warehousemen, processors, packers, fillers, landlords, mortgagees, freight forwarders,
shipping agents, sales agents, Buying Associations and other bailees with whom such Credit Party
conducts business from time to time.

     7.21 Trademarks.

     Each Credit Party will do and cause to be done all things necessary to preserve and keep in
full force and effect all registrations of trademarks, service marks and other marks, trade names
or other trade rights.

     7.22 Maintenance of Property.

     Each Credit Party will, and will cause each of its Subsidiaries to, keep all property useful
and necessary to its respective business in good working order and condition (ordinary wear and
tear excepted) in accordance with their past operating practices and not to commit or suffer any
waste with respect to any of its properties, except for properties which either individually or in
the aggregate are not material.

     7.23 Revisions or Updates to Schedules.

     If any of the information or disclosures provided on any of Schedules 6.7, 6.8, 6.9, 6.17,
6.19 or 6.32, originally attached hereto become outdated or incorrect in any material respect,
the Credit Parties shall deliver to the Agent and the Lenders as part of the compliance certificate
required pursuant to Section 7.1(c) such revision or updates to such Schedule(s) as may be
necessary or appropriate to update or correct such Schedule(s); provided, that no such
revisions or updates to any such Schedule(s) shall be deemed to have amended, modified or
superseded such Schedule(s) as originally attached hereto, or to have cured any breach of warranty
or misrepresentation resulting from the inaccuracy or incompleteness of any such Schedule(s) unless
and until the Required Lenders, in their sole and absolute discretion, shall have accepted in
writing such revisions or updates to such Schedule(s).

     7.24 Anti-Terrorism Laws.

     None of the Credit Parties shall, nor shall any of them permit any of their respective
Subsidiaries to, (i) conduct any business or engage in any transaction or dealing with any Blocked
Person, including the making or receiving any contribution of funds, goods or services to or for
the benefit of any Blocked Person; (ii) deal in, or otherwise engage in any transaction relating
to, any property or interests in property blocked pursuant to Executive Order No. 13224;

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or (iii) engage in on conspire to engage in any transaction that evades or avoids, or has the
purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in
Executive Order No. 13224 or the USA Patriot Act. Each of the Credit Parties shall deliver to the
Agent and Lenders any certification or other evidence requested from time to time by the Agent or
any Lender, in the Agent’s sole discretion, confirming such Person’s compliance with this Section.

     7.25 Post Closing Covenants. 

     (a) Lien Waiver Agreements. The Company shall use its commercially reasonable efforts
to deliver (or cause to be delivered) to the Administrative Agent Landlord Agreements or other
Acknowledgment Agreements for any warehouse, plant or other leased real property set forth on
Schedule 7.25(a) within ninety (90) days following the Closing Date.

     (b) Deposit Account Control Agreements. The Company shall deliver or cause to be
delivered to the Administrative Agent a deposit account control agreement for each deposit account
set forth on Schedule 7.25(b) within ninety (90) days following the Closing Date, or such longer
period as determined by the Agent in its sole discretion.

     (c) Amendment to Articles of Copperfield. Within thirty (30) days following the
Closing Date, or such longer period as determined by the Agent in its sole discretion, the Company
shall cause Copperfield, LLC to amend its articles of organization to opt into Article 8 of the UCC
and, in connection at the time thereof, shall issue certificates evidencing the Capital Stock
issued by Copperfield, LLC and owned by the Company and by SCC and shall deliver such certificates,
together with duly executed in blank undated stock powers attached thereto.

     (d) Issuance of Stock Certificates by SCC. Within ten (10) days following the Closing
Date, or such longer period as determined by the Agent in its sole discretion, the Company shall
deliver or cause to be delivered to the Agent stock certificates, together with duly executed in
blank undated stock powers attached thereto, evidencing the Capital Stock issued by SCC and owned
by the Company.

     (e) Real Estate Matters. Within (i) fifteen (15) days following the Closing Date, or
such longer period as determined by the Agent in its sole discretion, the Company shall deliver or
cause to be delivered to the Agent (A) such executed amendments to the existing Mortgages as the
Agent may reasonably require, if form and substance satisfactory to the Agent, (B) opinions of
local counsel with respect to such amendments, in form and substance satisfactory to the Agent, and
(C) evidence that title insurance acceptable to the Agent is in place with respect to each of the
properties subject to a Mortgage, (ii) thirty (30) days following the Closing Date, or such longer
period as determined by the Agent in its sole discretion, the Company shall deliver or cause to be
delivered to the Agent an executed mortgage in form and substance satisfactory to the Agent with
respect to the Oswego, New York facility of the Company, and any related documents or items that
the Agent may reasonably require in connection with the foregoing.

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ARTICLE VIII

FINANCIAL COVENANTS

     Until termination of this Credit Agreement and the Commitments hereunder and payment and
satisfaction of all Obligations due or to become due hereunder, each Borrower and (by execution and
delivery of the Guaranty Agreement or of a joinder thereto and incorporation by reference therein)
each Guarantor agrees that, unless the Required Lenders shall have otherwise consented in writing:

     8.1 Fixed Charge Coverage Ratio.

     If during any calendar month Excess Availability falls below $30,000,000, the Borrowers shall
maintain, for such month, a Fixed Charge Coverage Ratio of not less than 1.1 to 1.0 as of the last
day of each such month.

     8.2. Minimum Excess Availability.

     The Borrowers shall maintain Excess Availability of not less than $10,000,000.

ARTICLE IX

NEGATIVE COVENANTS

     Until termination of the Credit Agreement and the Commitments hereunder and payment and
satisfaction of all Obligations due or to become due hereunder, each Borrower and (by execution and
delivery of the Guaranty Agreement or of a joinder thereto and incorporation by reference therein)
each Guarantor agrees that, unless the Required Lenders shall have otherwise consented in writing,
it will not, and will not permit any of the Subsidiaries to:

     9.1 Restrictions on Liens.

     Mortgage, assign, pledge, transfer or otherwise permit any Lien or judgment (whether as a
result of a purchase money or title retention transaction, or other security interest, or
otherwise) to exist on any of its assets or properties, whether real, personal or mixed, whether
now owned or hereafter acquired, except for Permitted Liens.

     9.2 Restrictions on Additional Indebtedness.

     Incur or create any liability or Indebtedness other than Permitted Indebtedness.

     9.3 Restrictions on Sale of Assets.

     Sell, lease, assign, transfer or otherwise dispose of any assets (including the Capital Stock
of any Subsidiary of the Company) other than (a) sales of Inventory in the ordinary course of

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business, (b) sale-leaseback transactions permitted by Section 9.14, (c) sales or other
dispositions in the ordinary course of business of assets or properties that are obsolete or that
are no longer used or useful in the conduct of such Credit Party’s or Subsidiary’s business, (d)
sales in the ordinary course of business of assets or properties (other than Inventory) used in
such Credit Party’s or Subsidiary’s business that are worn out or in need of replacement and that
are replaced with assets of reasonably equivalent value or utility, (e) termination of Hedging
Agreements in the ordinary course of business, or (f) sales of Accounts to CCI Enterprises, Inc.

     9.4 No Corporate Changes.

     (a) Merge or consolidate with any Person, (b) alter or modify any Credit Party’s or any of its
Subsidiary’s Articles or Certificate of Incorporation or other equivalent organizational document
or form of organization in any manner adverse to the interests of the Agent or the Lenders or in
any way which could reasonably be expected to have a Material Adverse Effect, (c) without providing
thirty (30) days prior written notice to the Agent and without filing (or confirming that the Agent
has filed) such amendments to any previously filed financing statements as the Agent may require,
(i) change its state of incorporation or formation, (ii) change its registered corporate name,
(iii) change the location of its chief executive office and principal place of business (as well as
its books and records) from the locations set forth on Schedule 6.7, or (iv) change the
location of its Collateral from the locations set forth for such Person on Schedule 6.7, or
(d) enter into or engage in any business, operation or activity materially different from that
presently being conducted by the Credit Parties.

     9.5 No Guarantees.

     Assume, guarantee, endorse, or otherwise become liable upon the obligations of any other
Person, including, without limitation, any Subsidiary or Affiliate of any Credit Party, except (a)
by the endorsement of negotiable instruments in the ordinary course of business, (b) by the giving
of indemnities in connection with the sale of Inventory or other asset dispositions permitted
hereunder and (c) guarantees of Permitted Indebtedness.

     9.6 No Restricted Payments.

     Make a Restricted Payment, other than (a) to pay dividends from any Subsidiary to any Credit
Party, and (b) so long as (i) no Default or Event of Default has occurred and is continuing or
would result from the payment thereof and (ii) the Borrowers provide evidence to the Agent that
they will be in pro forma compliance with the financial covenants set forth in Article VIII after
giving effect thereto, the payment of consulting fees to Affiliates in an aggregate amount of up to
$500,000 in any twelve month period.

     9.7 No Investments.

     Make any Investment other than Permitted Investments.

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     9.8 No Affiliate Transactions.

     Enter into any transaction with, including, without limitation, the purchase, sale or exchange
of property or the rendering of any service to any Subsidiary or Affiliate of any Credit Party
except (a) in the ordinary course of and pursuant to the reasonable requirements of such Credit
Party’s business and upon fair and reasonable terms no less favorable to such Credit Party than
could be obtained in a comparable arm’s-length transaction with an unaffiliated Person and (b) as
permitted under Section 9.6; provided, that (i) in the event that such transaction
involves aggregate payments, or transfers of property or services with a fair market value in
excess of $2,000,000, the terms of such transaction shall be approved by a majority of the members
of the Board of Directors or other managing body of the relevant Credit Parties (including a
majority of the disinterested members thereof), the approval to be evidenced by a board (or other
managing body) resolution stating that the board of directors or other managing body has determined
that such transaction complies with the preceding provisions; and (ii) in the event that such
transaction involves aggregate payments, or transfers of property or services with a fair market
value in excess of $5,000,000, the Company shall, prior to the consummation thereof, obtain a
favorable opinion as to the fairness of such transaction to the Company or other relevant Credit
Party (if any) from a financial point of view from an accounting firm, appraisal firm, investment
banking firm or consultant of nationally recognized standing that is, in the judgment of the
Company’s board of directors, properly qualified and independent, and provide a copy thereof to the
Agent.

     9.9 No Prohibited Transactions Under ERISA.

     (a) Engage, or permit any ERISA Affiliate to engage, in any prohibited transaction
which could result in a civil penalty or excise tax described in Section 406 of ERISA or
Section 4975 of the Internal Revenue Code for which a statutory or class exemption is not
available or a private exemption has not been previously obtained from the DOL;

     (b) permit to exist with respect to any Benefit Plan any accumulated funding (as
defined in Sections 302 of ERISA and 412 of the Internal Revenue Code), whether or not
waived;

     (c) fail, or permit any ERISA Affiliate to fail, to pay timely required contributions
or annual installments due with respect to any waived funding deficiency to any Benefit
Plan;

     (d) terminate, or permit any ERISA Affiliate to terminate, any Benefit Plan where such
event would result in any liability of the Credit Party or any of its Subsidiaries or ERISA
Affiliates under Title IV of ERISA;

     (e) fail, or permit any ERISA Affiliate to fail to make any required contribution or
payment to any Multiemployer Plan;

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     (f) fail, or permit any ERISA Affiliate to fail, to pay any required installment or any
other payment required under Section 412 of the Internal Revenue Code on or before the due
date for such installment or other payment;

     (g) amend, or permit any ERISA Affiliate to amend, a Benefit Plan resulting in an
increase in current liability for the plan year such that any of the Credit Parties or any
of their Subsidiaries or ERISA Affiliates is required to provide security to such Benefit
Plan under Section 401(a)(29) of the Internal Revenue Code;

     (h) withdraw, or permit any ERISA Affiliate to withdraw, from any Multiemployer Plan
where such withdrawal may result in any liability of any such entity under Title IV of
ERISA; or

     (i) allow any representation made in Section 6.14 to be untrue at any time
during the term of this Credit Agreement.

     9.10 No Additional Bank Accounts.

     Open, maintain or otherwise have any checking, savings or other accounts at any bank or other
financial institution, or any other account where money is or may be deposited or maintained with
any Person, other than (a) the accounts set forth on Schedule 6.35, each of which shall be
subject to a Deposit Account Control Agreement, except to the extent otherwise determined by the
Agent, (b) deposit accounts established after the Closing Date that are subject to a Deposit
Account Control Agreement, (c) other deposit accounts established after the Closing Date solely as
payroll and other zero balance accounts and (d) other deposit accounts established after the
Closing Date, so long as at any time the balance in any such account does not exceed $25,000 and
the aggregate balance in all such accounts does not exceed $100,000.

     9.11 Amendments of Material Contracts, Operative Documents.

     Without the prior written consent of the Agent or as specifically permitted by Section
9.13, amend, modify, cancel or terminate or permit the amendment, modification, cancellation or
termination of any of the Material Contracts or any Operative Document.

     9.12 Additional Negative Pledges.

     Create or otherwise cause or suffer to exist or become effective, or permit any of the
Subsidiaries to create or otherwise cause or suffer to exist or become effective, directly or
indirectly, (i) any prohibition or restriction (including any agreement to provide equal and
ratable security to any other Person in the event a Lien is granted to or for the benefit of the
Agent and the Lenders) on the creation or existence of any Lien upon the assets of any Credit Party
or any of its Subsidiaries, other than Permitted Liens, other than under the Senior Note Debt
Documents (2004) or the Senior Note Debt Documents (2007), or (ii) any Contractual Obligation which
may restrict or inhibit the Agent’s rights or ability to sell or otherwise dispose of the
Collateral or any part thereof after the occurrence of an Event of Default, other than the Senior
Note Debt Documents (2004) or the Senior Note Debt Documents (2007).

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     9.13 Other Indebtedness.

     (a) Effect or permit any change in or amendment to any document or instrument pertaining to
the subordination, terms of payment or required prepayments of any Senior Note Debt (2004) or
Senior Note Debt (2007);

     (b) increase the rates or amounts of interest or fees payable with respect to any Senior Note
Debt (2004) or Senior Note Debt (2007);

     (c) effect or permit any change in or amendment to any document or instrument pertaining to
the covenants or events of default of any Senior Note Debt (2004) or Senior Note Debt (2007) if the
effect of any such change or amendment is to make such covenants or events of default more
restrictive;

     (d) give any notice of optional redemption or optional prepayment or offer to repurchase under
any such document or instrument, or, directly or indirectly, make any payment of principal of or
interest on or in redemption, retirement or repurchase of any Senior Note Debt (2004) or any Senior
Note Debt (2007), except for the scheduled payments required by the terms of the documents and
instruments evidencing Senior Note Debt (2004) or the Senior Note Debt (2007); or

     (e) effect or permit any change in or amendment to any Senior Note Debt Document (2004) or the
Senior Note Debt Documents (2007) which would have the effect of increasing the aggregate principal
amount of the notes issued pursuant to the Senior Note Indenture to more than $240,000,000.

     9.14 Sale and Leaseback.

     Enter into any arrangement, directly or indirectly, whereby any Credit Party or any of its
Subsidiaries shall sell or transfer any property owned by it to a Person (other than the Credit
Parties or any of their Subsidiaries) in order then or thereafter to lease such property or lease
other property which such Credit Party or Subsidiary intends to use for substantially the same
purpose as the property being sold or transferred. Notwithstanding the foregoing provisions of
this Section 9.14, any Credit Party or any of its Subsidiaries may sell or transfer any
property owned by it as described in the preceding sentence provided that the aggregate
current market value of all assets so sold or transferred (in each case determined at the time of
such sale or transfer, and taking into account all such sales or transfers under this Section
9.14 since the Closing Date) shall not exceed $1,000,000.

     9.15 Licenses, Etc.

     Enter into licenses of, or otherwise restrict the use of, any patents, trademarks or
copyrights which would prevent any Credit Party or any of its Subsidiaries from selling,
transferring, encumbering or otherwise disposing of any such patent, trademark or copyright.

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     9.16 Limitations.

     Create, nor will it permit any of its Subsidiaries to, directly or indirectly, create or
otherwise cause, incur, assume, suffer or permit to exist or become effective any consensual
encumbrance or restriction of any kind on the ability of any such Person to (a) pay dividends or
make any other distribution on any of such Person’s Capital Stock, (b) pay any Indebtedness owed to
the Credit Parties, (c) make loans or advances to any other Credit Party or (d) transfer any of its
property to any other Credit Party, except for encumbrances or restrictions existing under or by
reason of (i) customary non-assignment provisions in any lease governing a leasehold interest, (ii)
any agreement or other instrument of a Person existing at the time it becomes a Subsidiary of a
Credit Party; provided that such encumbrance or restriction is not applicable to any other
Person, or any property of any other Person, other than such Person becoming a Subsidiary of a
Credit Party and was not entered into in contemplation of such Person becoming a Subsidiary of a
Credit party, (iii) this Credit Agreement and the other Credit Documents, (iv) the Senior Note Debt
Documents, (2004) and (v) the Senior Note Debt Documents (2007).

     9.17 Operating Lease Obligations.

     Enter into or permit any Subsidiary to enter into, assume or permit to exist any obligations
for the payment of rent under operating leases which in the aggregate for all such Persons would
exceed $10,000,000 in any fiscal year.

     9.18 Hedge Transactions.

     Engage in any transaction involving commodity options or future contracts or any similar
speculative transactions, except for Hedging Agreements used solely as part of the normal business
operations of the Borrowers as a risk management strategy and/or a hedge against changes resulting
from market operations in accordance with the Borrowers’ customary policies and not as a means to
speculate for investment purposes.

ARTICLE X

POWERS

     10.1 Appointment as Attorney-in-Fact.

     Each Credit Party hereby irrevocably authorizes and appoints the Agent, for the benefit of the
Lenders, or any Person or agent the Agent may designate, as such Credit Party’s attorney-in-fact,
at such Credit Party’s cost and expense, to exercise, subject to the limitations set forth in
Section 10.2, all of the following powers, which being coupled with an interest, shall be
irrevocable until all of the Obligations to the Lenders have been paid and satisfied in full and
all of the Commitments have been terminated:

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     (a) To receive, take, endorse, sign, assign and deliver, all in the name of the Agent,
the Lenders or such Credit Party, as the case may be, any and all checks, notes, drafts, and
other documents or instruments relating to the Collateral;

     (b) To receive, open and dispose of all mail addressed to such Credit Party and to
notify postal authorities to change the address for delivery thereof to such address as the
Agent may designate;

     (c) To request at any time from customers indebted on Accounts, in the name of such
Credit Party or a third party designee of the Agent, information concerning the Accounts and
the amounts owing thereon;

     (d) To give customers indebted on Accounts notice of the Lenders’ interest therein,
and/or to instruct such customers to make payment directly to the Agent for such Credit
Party’s account;

     (e) To take or bring, in the name of the Agent, the Lenders or such Credit Party, all
steps, actions, suits or proceedings deemed by the Agent necessary or desirable to enforce
or effect collection of the Accounts; and

     (f) To file, record and register any or all of the Lenders’ security interest in
intellectual property of the Credit Parties with the United States Patent and Trademark
Office or the United States Copyright Office.

     10.2 Limitation on Exercise of Power.

     Notwithstanding anything hereinabove to the contrary, the powers set forth in subparagraphs
(b), (d) and (e) above may only be exercised by the Agent on and after the occurrence of an Event
of Default which has not otherwise been waived by the Agent. The powers set forth in subparagraphs
(a), (c) and (f) above may be exercised by the Agent at any time.

ARTICLE XI

EVENTS OF DEFAULT AND REMEDIES

     11.1 Events of Default.

     The occurrence of any of the following events shall constitute an “Event of Default”
hereunder:

     (a) failure of any Borrower to pay (i) any interest or Fees hereunder when due, in each
case whether at stated maturity, by acceleration, or otherwise, (ii) any principal of the
Revolving Loans or the Letter of Credit Obligations when due, whether at stated maturity, by
acceleration or otherwise or (iii) any expenses hereunder within three

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(3) Business Days after receipt by the Borrowers from the Agent or any applicable Lender of
notice that such expenses are payable;

     (b) any representation or warranty, contained in this Credit Agreement, the other
Credit Documents or any other agreement, document, instrument or certificate among any
Credit Party, the Agent and the Lenders or executed by any Credit Party in favor of the
Agent or the Lenders shall prove untrue in any material respect on or as of the date it was
made or was deemed to have been made;

     (c) failure of any Credit Party to perform, comply with or observe any term, covenant
or agreement applicable to it contained in Section 7.1(j), Section 7.3,
Section 7.5, Section 7.7, Article VIII or Article IX;

     (d) failure of any Credit Party (i) to deliver the Borrowing Base Certificate within
five Business Days of the day required by Section 7.1(e), or (ii) to comply with any
other covenant contained in this Credit Agreement, the other Credit Documents or any other
agreement, document, instrument or certificate among any Credit Party, the Agent and the
Lenders or executed by any Credit Party in favor of the Agent or the Lenders and, in the
event such breach or failure to comply is capable of cure, such breach or failure to comply
is not cured within fifteen (15) days of its occurrence;

     (e) dissolution, liquidation, winding up or cessation of the business of any Credit
Party or any of its Subsidiaries, or the failure of any Credit Party or any of its
Subsidiaries to meet its debts generally as they mature, or the calling of a meeting of any
Credit Party’s or any of its Subsidiaries’ creditors for purposes of compromising any Credit
Party’s or any of its Subsidiaries’ debts, or the failure by any Credit Party or any of its
Subsidiaries generally, or the admission by any Credit Party or any of its Subsidiaries of
its inability, to pay its debts as they become due (unless such debts are the subject of a
bona fide dispute);

     (f) the commencement by or against any Credit Party or any of its Subsidiaries of any
bankruptcy, insolvency, arrangement, reorganization, receivership or similar case or
proceeding with respect to it under any federal or state law and, in the event any such
proceeding is commenced against any Credit Party or any of its Subsidiaries, such proceeding
is not dismissed within sixty (60) days or an order for relief is entered at any time;

     (g) the occurrence of a Change of Control or a “Change of Control”, as such term is
defined in the Senior Note Indenture;

     (h) any Credit Party or any of its Subsidiaries shall fail to make any payment in
respect of Indebtedness outstanding (other than the Loans) in an aggregate principal amount
of $500,000 or more when due or within any applicable grace period; or

     (i) (A) the occurrence of a default or event of default (in each case which shall
continue beyond the expiration of any applicable grace periods) under, or the

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occurrence of any event that results in or would permit the acceleration of the maturity of
any note, agreement or instrument (including, without limitation, as a result of any
required mandatory prepayment or “put” right thereunder) evidencing (i) any Senior Note Debt
(2004), (ii) any Senior Note Debt (2007) or (iii) any other Indebtedness of any Credit Party
or any of its Subsidiaries and the aggregate principal amount of all such other Indebtedness
with respect to which a default or an event of default has occurred, or the maturity of
which is accelerated or permitted to be accelerated (including, without limitation, as a
result of any required mandatory prepayment or “put” right thereunder), exceeds $500,000, or
(B) the occurrence of a default or event of default (in each case which shall continue
beyond the expiration of any applicable grace periods) under, or the occurrence of any event
that results in or would permit the early termination of, any Lender Hedging Agreement;

     (j) any covenant, agreement or obligation of any party contained in or evidenced by any
of the Credit Documents shall cease to be enforceable in accordance with its terms, or any
party (other than the Agent or the Lenders) to any Credit Document shall deny or disaffirm
its obligations under any of the Credit Documents, or any Credit Document shall be canceled,
terminated, revoked or rescinded without the express prior written consent of the Agent, or
any action or proceeding shall have been commenced by any Person (other than the Agent or
any Lender) seeking to cancel, revoke, rescind or disaffirm the obligations of any party to
any Credit Document, or any court or other Governmental Authority shall issue a judgment,
order, decree or ruling to the effect that any of the obligations of any party to any Credit
Document are illegal, invalid or unenforceable;

     (k) one or more judgments or decrees shall be entered against one or more of the Credit
Parties or any of their Subsidiaries involving a liability of $1,000,000 or more in the
aggregate (to the extent not paid or covered by insurance (i) provided by a carrier who has
acknowledged coverage and has the ability to perform or (ii) as determined by the Agent in
its reasonable discretion) and any such judgments or decrees shall not have been vacated,
discharged or stayed or bonded pending appeal within thirty (30) days from the entry
thereof;

     (l) any Termination Event with respect to a Benefit Plan shall have occurred and be
continuing thirty (30) days after notice thereof shall have been given to the Company by the
Agent or any Lender, and the then current value of such Benefit Plan’s benefits guaranteed
under Title IV of ERISA exceeds the then current value of such Benefit Plan’s assets
allocable to such benefits by more than $500,000 (or in the case of a Termination Event
involving the withdrawal of a substantial employer, the withdrawing employer’s proportionate
share of such excess exceeds such amount);

     (m) any default or termination shall have occurred under any Material Contract,
including, without limitation, any Operative Document, to which any Credit Party is a party,
which default or termination could reasonably be expected to have a Material Adverse Effect;
or

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     (n) any other Credit Document shall fail to be in full force and effect or to give the
Agent and/or the Lenders the security interests, liens, rights, powers and privileges
purported to be created thereby (except as such documents may be terminated or no longer in
force and effect in accordance with the terms thereof, other than those indemnities and
provisions which by their terms shall survive).

     11.2 Acceleration.

     Upon the occurrence and during the continuance of an Event of Default, and at any time
thereafter, at the direction of the Required Lenders, the Agent shall, upon the written, telecopied
or telex request of the Required Lenders, and by delivery of written notice to the Credit Parties
from the Agent, take any or all of the following actions, without prejudice to the rights of the
Agent, any Lender or the holder of any Note to enforce its claims against any Borrower: (a)
declare all Obligations (other than those arising in connection with a Lender Hedging Agreement) to
be immediately due and payable (except with respect to any Event of Default set forth in
Section 11.1(e) or (f) in which case all Obligations (other than those arising in
connection with a Lender Hedging Agreement) shall automatically become immediately due and payable
without the necessity of any notice or other demand) without presentment, demand, protest or any
other action or obligation of the Agent or any Lender, (b) immediately terminate this Credit
Agreement and the Commitments hereunder; and (c) enforce any and all rights and interests created
and existing under the Credit Documents or arising under applicable law, including, without
limitation, all rights and remedies existing under the Security Documents and all rights of setoff.
The enumeration of the foregoing rights is not intended to be exhaustive and the exercise of any
right shall not preclude the exercise of any other rights, all of which shall be cumulative.

     In addition, upon demand by the Agent or the Required Lenders upon the occurrence of any Event
of Default, and at any time thereafter unless and until such Event of Default has been waived by
the requisite Lenders (in accordance with the voting requirements of Section 14.10), the
Borrowers shall deposit with the Agent for the benefit of the Lenders with respect to each Letter
of Credit then outstanding, promptly upon such demand, cash or Cash Equivalents in an amount equal
to the greatest amount for which such Letter of Credit may be drawn. Such deposit shall be held by
the Agent for the benefit of the Issuing Bank and the other Lenders as security for, and to provide
for the payment of, outstanding Letters of Credit.

ARTICLE XII

TERMINATION

     (a) Except as otherwise provided in Article XI, the Revolving Loan Commitments made
hereunder shall terminate on the Maturity Date and all then outstanding Loans shall be immediately
due and payable in full and all outstanding Letters of Credit shall immediately terminate. Unless
sooner demanded, all Obligations shall become due and payable as of any termination hereunder or
under Article XI and, pending a final accounting, the Agent may withhold any balances in
the Borrowers’ Loan accounts, in an amount sufficient, in the Agent’s

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sole discretion, to cover all of the Obligations, whether absolute or contingent, unless supplied
with a satisfactory indemnity to cover all of such Obligations. All of the Agent’s and the
Lenders’ rights, liens and security interests shall continue after any termination until
termination in accordance with the provisions of this Section.

     (b) This Credit Agreement, together with all other Credit Documents, shall continue in full
force and effect until each of the following events (collectively, the “Credit and Collateral
Termination Events”) has occurred: (i) all of the Obligations have been fully and finally paid
and performed (other than inchoate indemnity obligations), (ii) all Letters of Credit have expired
or terminated, (iii) all Lender Hedging Agreements have expired or terminated (or other
arrangements relating thereto have been made in a writing signed by all Persons party to such
Lender Hedging Agreements and the Agent), (iv) all agreements relating to Cash Management Products
have expired or terminated (or other arrangements relating thereto have been made in a writing
signed by all Persons party to such agreements and the Agent), and (v) all Commitments have been
terminated and no Person or Governmental Authority shall have any right to request any return or
reimbursement of funds from the Agent or the Lenders in connection with any of the foregoing.

ARTICLE XIII

THE AGENT

     13.1 Appointment of Agent.

     (a) Each Lender hereby designates Wachovia as Agent to act as herein specified. Each
Lender hereby irrevocably authorizes, and each holder of any Note or participation in any
Letter of Credit by the acceptance of a Note or participation shall be deemed irrevocably to
authorize, the Agent to take such action on its behalf under the provisions of this Credit
Agreement and the Notes and any other instruments and agreements referred to herein and to
exercise such powers and to perform such duties hereunder and thereunder as are specifically
delegated to or required of the Agent by the terms hereof and thereof and such other powers
as are reasonably incidental thereto. The Agent shall hold all Collateral and all payments
of principal, interest, Fees, charges and expenses received pursuant to this Credit
Agreement or any other Credit Document for the ratable benefit of the Lenders. The Agent
may perform any of its duties hereunder by or through its agents or employees.

     (b) The provisions of this Article XIII are solely for the benefit of the Agent
and the Lenders, and none of the Credit Parties shall have any rights as a third party
beneficiary of any of the provisions hereof (other than Section 13.9). In
performing its functions and duties under this Credit Agreement, the Agent shall act solely
as agent of the Lenders and does not assume and shall not be deemed to have assumed any
obligation toward or relationship of agency or trust with or for any Borrower.

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     13.2 Nature of Duties of Agent.

     The Agent shall have no duties or responsibilities except those expressly set forth in this
Credit Agreement. Neither the Agent nor any of its officers, directors, employees or agents shall
be liable for any action taken or omitted by it as such hereunder or in connection herewith, unless
caused by its or their gross negligence or willful misconduct. The duties of the Agent shall be
mechanical and administrative in nature; the Agent shall not have by reason of this Credit
Agreement a fiduciary relationship in respect of any Lender; and nothing in this Credit Agreement,
expressed or implied, is intended to or shall be so construed as to impose upon the Agent any
obligations in respect of this Credit Agreement except as expressly set forth herein.

     13.3 Lack of Reliance on Agent.

     (a) Independently and without reliance upon the Agent, each Lender, to the extent it
deems appropriate, has made and shall continue to make (i) its own independent investigation
of the financial or other condition and affairs of each Credit Party in connection with the
taking or not taking of any action in connection herewith and (ii) its own appraisal of the
creditworthiness of each Credit Party, and, except as expressly provided in this Credit
Agreement, the Agent shall have no duty or responsibility, either initially or on a
continuing basis, to provide any Lender with any credit or other information with respect
thereto, whether coming into its possession before the making of the Revolving Loans or at
any time or times thereafter.

     (b) The Agent shall not be responsible to any Lender for any recitals, statements,
information, representations or warranties herein or in any document, certificate or other
writing delivered in connection herewith or for the execution, effectiveness, genuineness,
validity, enforceability, collectibility, priority or sufficiency of this Credit Agreement,
the Notes or any other Credit Document or the financial or other condition of any Credit
Party. The Agent shall not be required to make any inquiry concerning either the
performance or observance of any of the terms, provisions or conditions of this Credit
Agreement, the Notes or any other Credit Document, or the financial condition of any Credit
Party, or the existence or possible existence of any Default or Event of Default, unless
specifically requested to do so in writing by any Lender.

     13.4 Certain Rights of the Agent.

     The Agent shall have the right to request instructions from the Required Lenders or, as
required, each of the Lenders. If the Agent shall request instructions from the Required Lenders
or each of the Lenders, as the case may be, with respect to any act or action (including the
failure to act) in connection with this Credit Agreement, the Agent shall be entitled to refrain
from such act or taking such action unless and until the Agent shall have received instructions
from the Required Lenders or each of the Lenders, as the case may be, and the Agent shall not incur
liability to any Person by reason of so refraining. Without limiting the foregoing, no Lender
shall have any right of action whatsoever against the Agent as a result of the Agent acting or

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refraining from acting hereunder in accordance with the instructions of the Required Lenders or
each of the Lenders, as the case may be.

     13.5 Reliance by Agent.

     The Agent shall be entitled to rely, and shall be fully protected in relying, upon any note,
writing, resolution, notice, statement, certificate, telex teletype or telecopier message,
cablegram, radiogram, order or other documentary, teletransmission or telephone message believed by
it in good faith to be genuine and correct and to have been signed, sent or made by the proper
person. The Agent may consult with legal counsel (including counsel for the Credit Parties with
respect to matters concerning the Credit Parties), independent public accountants and other experts
selected by it with reasonable care and shall not be liable for any action taken or omitted to be
taken by it in good faith in accordance with the advice of such counsel, accountants or experts.

     13.6 Indemnification of Agent.

     To the extent the Agent is not reimbursed and indemnified by the Credit Parties, each Lender
will reimburse and indemnify the Agent, in proportion to its respective Commitment, for and against
any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses (including counsel fees and disbursements) or disbursements of any kind or nature
whatsoever which may be imposed on, incurred by or asserted against the Agent in performing its
duties hereunder, in any way relating to or arising out of this Credit Agreement or any other
Credit Documents, provided that no Lender shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from the Agent’s gross negligence or willful misconduct.

     13.7 The Agent in its Individual Capacity.

     With respect to its obligation to lend under this Credit Agreement, the Loans made by it and
the Notes issued to it, its participation in Letters of Credit issued hereunder, and all of its
rights and obligations as a Lender hereunder and under the other Credit Documents, the Agent shall
have the same rights and powers hereunder as any other Lender or holder of a Note or participation
interests and may exercise the same as though it was not performing the duties specified herein;
and the terms “Lenders”, “Required Lenders”, “holders of Notes”, or any similar terms shall, unless
the context clearly otherwise indicates, include the Agent in its individual capacity. The Agent
may accept deposits from, lend money to, acquire equity interests in, and generally engage in any
kind of banking, trust, financial advisory or other business with the Credit Parties or any
Affiliate of the Credit Parties as if it were not performing the duties specified herein, and may
accept fees and other consideration from the Credit Parties for services in connection with this
Credit Agreement and otherwise without having to account for the same with the Lenders.

     13.8 Holders of Notes.

     The Agent may deem and treat the payee of any Note as the owner thereof for all purposes
hereof unless and until a written notice of the assignment or transfer thereof shall have

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been filed with the Agent. Any request, authority or consent of any Person who, at the time of
making such request or giving such authority or consent, is the holder of any Note, shall be
conclusive and binding on any subsequent holder, transferee or assignee of such Note or of any Note
or Notes issued in exchange therefor.

     13.9 Successor Agent.

     The Agent may at any time give notice of its resignation to the Lenders, the Issuing Bank and
the Borrowers. Upon receipt of any such notice of resignation, the Required Lenders shall have the
right, in consultation with the Borrowers, to appoint a successor, which shall be a bank with an
office in the United States, or an Affiliate of any such bank with an office in the United States.
If no such successor shall have been so appointed by the Required Lenders and shall have accepted
such appointment within 30 days after the retiring Agent gives notice of its resignation, then the
retiring Agent may on behalf of the Lenders and the Issuing Lender, appoint a successor Agent
meeting the qualifications set forth above; provided that if the Agent shall notify the
Borrowers and the Lenders that no qualifying Person has accepted such appointment, then such
resignation shall nonetheless become effective in accordance with such notice and (1) the retiring
Agent shall be discharged from its duties and obligations hereunder and under the other Credit
Documents (except that in the case of any collateral security held by the Agent on behalf of the
Lenders or the Issuing Bank under any of the Credit Documents, the retiring Agent shall continue to
hold such collateral security until such time as a successor Agent is appointed) and (2) all
payments, communications and determinations provided to be made by, to or through the Agent shall
instead be made by or to each Lender and the Issuing Bank directly, until such time as the Required
Lenders appoint a successor Agent as provided for above in this Section. Upon the acceptance of a
successor’s appointment as Agent hereunder, such successor shall succeed to and become vested with
all of the rights, powers, privileges and duties of the retiring (or retired) Agent, and the
retiring Agent shall be discharged from all of its duties and obligations hereunder or under the
other Credit Documents (if not already discharged therefrom as provided above in this Section).
The fees payable by the Borrowers to a successor Agent shall be the same as those payable to its
predecessor unless otherwise agreed between the Borrowers and such successor. After the retiring
Agent’s resignation hereunder and under the other Credit Documents, the provisions of this Article
and Section 14.8 shall continue in effect for the benefit of such retiring Agent, its
sub-agents and their respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while the retiring Agent was acting as Agent. Any resignation by Wachovia as
Agent pursuant to this Section shall also constitute its resignation as Issuing Bank. Upon the
acceptance of a successor’s appointment as Agent hereunder, (a) such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the retiring Issuing Bank,
(b) the retiring Issuing Bank shall be discharged from all of their respective duties and
obligations hereunder or under the other Credit Documents, and (c) the successor Issuing Lender
shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the
time of such succession or make other arrangement satisfactory to the retiring Issuing Lender to
effectively assume the obligations of the retiring Issuing Lender with respect to such Letters of
Credit.

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     13.10 Collateral Matters.

     (a) Each Lender authorizes and directs the Agent to enter into the Security Documents
for the benefit of the Lenders. Each Lender authorizes and directs the Agent to make such
changes to the form Acknowledgment Agreement attached hereto as Exhibit A as the
Agent deems necessary in order to obtain any Acknowledgment Agreement from any landlord,
warehouseman, filler, packer or processor of any Credit Party. Each Lender also authorizes
and directs the Agent to review and approve all agreements regarding the Lockboxes and the
Lockbox Accounts (including the Lockbox Accounts Agreements) on such terms as the Agent
deems necessary. Each Lender hereby agrees, and each holder of any Note by the acceptance
thereof will be deemed to agree, that, except as otherwise set forth herein, any action
taken by the Required Lenders or each of the Lenders, as applicable, in accordance with the
provisions of this Credit Agreement or the Security Documents, and the exercise by the
Required Lenders or each of the Lenders, as applicable, of the powers set forth herein or
therein, together with such other powers as are reasonably incidental thereto, shall be
authorized and binding upon all of the Lenders. The Agent is hereby authorized on behalf of
all of the Lenders, without the necessity of any notice to or further consent from any
Lender, from time to time prior to an Event of Default, to take any action with respect to
any Collateral or Security Document which may be necessary or appropriate to perfect and
maintain perfected the security interest in and liens upon the Collateral granted pursuant
to the Security Documents. The rights, remedies, powers and privileges conferred upon the
Agent hereunder and under the other Credit Documents may be exercised by the Agent without
the necessity of the joinder of any other parties unless otherwise required by applicable
law.

     (b) The Lenders hereby authorize the Agent, at its option and in its discretion, to
release any Lien granted to or held by the Agent upon any Collateral (i) upon termination of
the Commitments and payment in cash and satisfaction of all of the Obligations (including
the Letter of Credit Obligations) at any time arising under or in respect of this Credit
Agreement or the other Credit Documents, or any Lender Hedging Agreements or the
transactions contemplated hereby or thereby, (ii) constituting property being sold or
disposed of upon receipt of the proceeds of such sale by the Agent if the applicable Credit
Party certifies to the Agent that the sale or disposition is made in compliance with
Section 9.3 (and the Agent may rely conclusively on any such certificate, without
further inquiry) or (iii) if approved, authorized or ratified in writing by the Required
Lenders, unless such release is required to be approved by all of the Lenders hereunder.
Upon request by the Agent at any time, the Lenders will confirm in writing the Agent’s
authority to release particular types or items of Collateral pursuant to this Section
13.10(b).

     (c) Upon any sale and transfer of Collateral which is expressly permitted pursuant to
the terms of this Credit Agreement, or consented to in writing by the Required Lenders or
all of the Lenders, as applicable, and upon at least five (5) Business Days’ prior written
request by the applicable Credit Party, the Agent shall (and is hereby irrevocably
authorized by the Lenders to) execute such documents as may be necessary to

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evidence the release of the Liens granted to the Agent for the benefit of the Lenders herein
or pursuant hereto upon the Collateral that was sold or transferred; provided that
(i) the Agent shall not be required to execute any such document on terms which, in the
Agent’s opinion, would expose the Agent to liability or create any obligation or entail any
consequence other than the release of such Liens without recourse or warranty and (ii) such
release shall not in any manner discharge, affect or impair the Obligations or any Liens
upon (or obligations of such Credit Party or any of its Subsidiaries in respect of) all
interests retained by such Credit Party or Subsidiary, including (without limitation) the
proceeds of the sale, all of which shall continue to constitute part of the Collateral. In
the event of any sale or transfer of Collateral, or any foreclosure with respect to any of
the Collateral, the Agent shall be authorized to deduct all of the expenses reasonably
incurred by the Agent from the proceeds of any such sale, transfer or foreclosure.

     (d) The Agent shall have no obligation whatsoever to the Lenders or to any other Person
to assure that the Collateral exists or is owned by the Credit Parties or any Subsidiary or
is cared for, protected or insured or that the liens granted to the Agent herein or pursuant
hereto have been properly or sufficiently or lawfully created, perfected, protected or
enforced or are entitled to any particular priority, or to exercise or to continue
exercising at all or in any manner or under any duty of care, disclosure or fidelity any of
the rights, authorities and powers granted or available to the Agent in this Section
13.10 or in any of the Security Documents, it being understood and agreed that in
respect of the Collateral, or any act, omission or event related thereto, the Agent may act
in any manner it may deem appropriate, in its sole discretion, given the Agent’s own
interest in the Collateral as one of the Lenders and that the Agent shall have no duty or
liability whatsoever to the Lenders, except for its gross negligence or willful misconduct.

     (e) The Agent shall promptly, upon receipt thereof, forward to each Lender copies of
the results of any field examinations by the Agent with respect to any Credit Party and any
appraisals obtained by the Agent with respect to any of the Collateral. The Agent shall
have no liability to any Lender for any errors in or omissions from any field examination or
other examination of any Credit Party or the Collateral, or in any such appraisal, unless
such error or omission was the direct result of the Agent’s gross negligence or willful
misconduct.

     13.11 Actions with Respect to Defaults.

     In addition to the Agent’s right to take actions on its own accord as permitted under this
Credit Agreement, the Agent shall take such action with respect to a Default or Event of Default as
shall be directed by the Required Lenders or all of the Lenders, as the case may be;
provided that, until the Agent shall have received such directions, the Agent may (but
shall not be obligated to) take such action, or refrain from taking such action, with respect to
such Default or Event of Default as it shall deem advisable and in the best interests of the
Lenders, including, without limitation, actions permitted by clause (c) of Section 11.2.

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     13.12 Delivery of Information.

     The Agent shall not be required to deliver to any Lender originals or copies of any documents,
instruments, notices, communications or other information received by the Agent from the Credit
Parties or any of their Subsidiaries, the Required Lenders, any Lender or any other Person under or
in connection with this Credit Agreement or any other Credit Document except (a) as specifically
provided in this Credit Agreement or any other Credit Document and (b) as specifically requested
from time to time in writing by any Lender with respect to a specific document instrument, notice
or other written communication received by and in the possession of the Agent at the time of
receipt of such request and then only in accordance with such specific request. The Agent agrees
to furnish to the Lenders copies of the notices given to the Agent pursuant to Section 7.5, the
second sentence of Section 7.6, Section 7.15 and Section 7.16.

     13.13 No Reliance on Administrative Agent’s Customer Identification Program.

     Each Lender acknowledges and agrees that neither such Lender, nor any of its affiliates,
Participants or Assignees, may rely on Agent to carry out such Lender’s, Affiliate’s, participant’s
or assignee’s customer identification program, or other obligations required or imposed under or
pursuant to the USA Patriot Act or the regulations thereunder, including the regulations contained
in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP Regulations”), or any other
Anti-Terrorism Law, including any programs involving any of the following items relating to or in
connection with the Borrowers, their Affiliates or its agents, the Credit Documents or the
transactions hereunder: (1) any identity verification procedures, (2) any record keeping, (3) any
comparisons with government lists, (4) any customer notices or (5) any other procedures required
under the CIP Regulations or such other laws.

     13.14 USA Patriot Act.

     Each Lender or assignee or participant of a Lender that is not organized under the laws of the
United States of America or a state thereof (and is not excepted from the certification requirement
contained in Section 313 of the USA Patriot Act and the applicable regulations because it is both
(i) an affiliate of a depository institution or foreign bank that maintains a physical presence in
the United States or foreign country, and (ii) subject to supervision by a banking authority
regulating such affiliated depository institution or foreign bank) shall deliver to Administrative
Agent the certification, or, if applicable, recertification, certifying that such Lender is not a
“shell” and certifying to other matters as required by Section 313 of the USA Patriot Act and the
applicable regulations: (1) within ten (10) days after the Closing Date and (2) at such other
times as are required under the USA Patriot Act.

     13.15 Other Agents.

     None of the Lenders or other Persons identified on the facing page or signature pages of this
Agreement as a “syndication agent,” “documentation agent,” “book manager,” “book runner,” “lead
manager,” “arranger,” “lead arranger” or “co-arranger” shall have any right (except as expressly
set forth herein), power, obligation, liability, responsibility or duty under this Agreement other
than, in the case of such Lenders, those applicable to all Lenders as such.

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Without limiting the foregoing, none of the Lenders or other Persons so identified shall have
or be deemed to have any fiduciary relationship with any Lender. Each Lender acknowledges that it
has not relied, and will not rely, on any of the Lenders or other Persons so identified in deciding
to enter into this Credit Agreement or in taking or not taking action hereunder.

ARTICLE XIV

MISCELLANEOUS

     14.1 Waivers.

     Each Borrower hereby waives due diligence, demand, presentment and protest and any notices
thereof as well as notice of nonpayment. No delay or omission of the Agent or the Lenders to
exercise any right or remedy hereunder, whether before or after the happening of any Event of
Default, shall impair any such right or shall operate as a waiver thereof or as a waiver of any
such Event of Default. No single or partial exercise by the Agent or the Lenders of any right or
remedy shall preclude any other or further exercise thereof, or preclude any other right or remedy.

     14.2 JURY TRIAL.

     TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH BORROWER AND (BY EXECUTION AND DELIVERY OF THE
GUARANTY AGREEMENT OR OF A JOINDER THERETO AND INCORPORATION BY REFERENCE THEREIN) EACH GUARANTOR,
AND THE AGENT AND THE LENDERS EACH HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING ARISING OUT OF THIS CREDIT AGREEMENT, THE CREDIT DOCUMENTS OR ANY OTHER AGREEMENTS OR
TRANSACTIONS RELATED HERETO OR THERETO.

     14.3 GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE.

     (a) THIS CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. Any legal action or proceeding with
respect to this Credit Agreement or any other Credit Document shall be brought in the courts
of the State of New York in New York County or of the United States for the Southern
District of New York, and, by execution and delivery of this Credit Agreement, each of the
Borrowers, and by execution and delivery of the Guaranty Agreement or of a joinder thereto
and incorporation by reference therein each of the Guarantors, hereby irrevocably accepts
for itself and in respect of its property, generally and unconditionally, the nonexclusive
jurisdiction of such courts, and agrees to be bound by the other provisions set forth in
this Section 14.3. Each of the Credit Parties further irrevocably consents to the
service of process out of any of the aforementioned courts in any such action or proceeding
by the mailing of copies thereof by registered or

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certified mail, postage prepaid, to it at the address set out for notices pursuant to
Section 14.5, such service to become effective three (3) days after such mailing.
Nothing herein shall affect the right of the Agent or any Lender to serve process in any
other manner permitted by law or to commence legal proceedings or to otherwise proceed
against any Credit Party in any other jurisdiction.

     (b) Each of the Credit Parties hereby irrevocably waives any objection which it may now
or hereafter have to the laying of venue of any of the aforesaid actions or proceedings
arising out of or in connection with this Credit Agreement or any other Credit Document
brought in the courts referred to in subsection (a) above and hereby further irrevocably
waives and agrees not to plead or claim in any such court that any such action or proceeding
brought in any such court has been brought in an inconvenient forum.

     14.4 [Intentionally Omitted].

     14.5 Notices.

     Except as otherwise expressly provided herein, all notices, requests and other communications
shall have been duly given and shall be effective (a) when delivered by hand, (b) when transmitted
via telecopy (or other facsimile device), (c) the Business Day following the day on which the same
has been delivered prepaid to a reputable national overnight air courier service, or (d) the third
Business Day following the day on which the same is sent by certified or registered mail, postage
prepaid, in each case to the respective parties at the following address or telecopy numbers in the
case of the Company, the other Credit Parties, the Administrative Agent and the Issuing Bank, and
as set forth on Schedule 14.5 in the case of the Lenders, or at such other address as such
party may specify by written notice to the other parties hereto; provided, however,
that if any notice is delivered on a day other than a Business Day, or after 5:00 P.M. on any
Business Day, then such notice shall not be effective until the next Business Day.

	 	 	 
	The Company
and the other
Credit Parties:

	 	Coleman Cable, Inc.
	 

	 	1530 South Shields Drive
	 

	 	Waukegan, Illinois 60085
	 

	 	Attention: Richard Burger, Executive VP & CFO
	 

	 	Telephone: (847) 672-2309
	 

	 	Telecopier: (847) 689-9099
	 
	 	 
	The Administrative Agent
and the Issuing Bank:

	 	Wachovia Bank, National Association
	 

	 	201 South College Street
	 

	 	NC0608/CP8
	 

	 	Charlotte, North Carolina 28288-0608
	 

	 	Attention: Syndication Agency Services
	 

	 	Telecopier: (704) 383-0288
	 

	 	Telephone: (704) 374-2698

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	 	with a copy to:
	 
	 	 
	 

	 	Wachovia Bank, National Association
	 

	 	301 South College Street NC0479
	 

	 	Charlotte, North Carolina 28288
	 

	 	Attention: Maura Atwater
	 

	 	Telephone: (704) 715-1560
	 

	 	Telecopier: (704) 374-2703

provided, that notices given by the Company pursuant to Section 2.1, Section 2.10 or
Article III hereof shall be effective only upon receipt thereof by the Administrative Agent or the
Issuing Lender, as applicable.

     14.6 Assignability.

     (a) No Borrower shall have the right to assign this Credit Agreement or any interest
therein except with the prior written consent of the Lenders.

     (b) Notwithstanding subsection (c) of this Section 14.6, nothing herein shall
restrict, prevent or prohibit any Lender from (i) pledging its Loans hereunder to a Federal
Reserve Bank in support of borrowings made by such Lender from such Federal Reserve Bank or
(ii) granting assignments or participations in such Lender’s Loans and/or Commitments
hereunder to any Approved Assignee in accordance with the terms hereof. Any Lender may
make, carry or transfer Loans at, to or for the account of, any of its branch offices or the
office of an affiliate of such Lender except to the extent such transfer would result in
increased costs to the Borrowers.

     (c) Any Lender may, in the ordinary course of its lending business and in accordance
with applicable law, at any time, assign to any Approved Assignee and, with the consent of
the Agent and, in the absence of an Event of Default, the Company (such consents not to be
unreasonably withheld or delayed) but without the consent of any other Lender, assign to one
or more other Eligible Assignees all or a portion of its rights and obligations under this
Credit Agreement and the Notes; provided, however, that (i) any such
assignment of a portion must be for a constant and non-varying portion of its Loans and
Commitments, (ii) for each such assignment, the parties thereto shall execute and deliver to
the Agent, for its acceptance and recording in the Register (as defined below), an
Assignment and Acceptance, together with any Note or Notes subject to such assignment and a
processing and recordation fee of $3,500 to be paid by the assignee, (iii) no such
assignment shall be for less than $5,000,000 or, if less, the entire remaining Commitments
of such Lender of the Commitments and (iv) if such assignee is a Foreign Lender, all of the
requirements of Section 2.7(b) shall have been satisfied as a condition to such
assignment; and provided, further, that any assignment to an Approved
Assignee shall not be subject to the minimum assignment amounts specified herein. Upon such
execution and delivery of the Assignment and Acceptance to the Agent, from and after the
effective date of such Assignment and Acceptance, (x) the assignee thereunder shall

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be a party hereto, and, to the extent that rights and obligations hereunder have been
assigned to it pursuant to such Assignment and Acceptance, such assignee shall have the
rights and obligations of a Lender hereunder and (y) the assignor thereunder shall, to the
extent that rights and obligations hereunder have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights (other than any rights it may have pursuant
to Section 14.8 which will survive) and be released from its obligations under this
Credit Agreement (and, in the case of an Assignment and Acceptance covering all or the
remaining portion of an assigning Lender’s rights and obligations under this Credit
Agreement, such Lender shall cease to be a party hereto).

     (d) By executing and delivering an Assignment and Acceptance, the assignee thereunder
confirms and agrees as follows: (i) other than as provided in such Assignment and
Acceptance, the 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 Credit Agreement or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Credit Agreement, the Notes or any other
instrument or document furnished pursuant hereto, (ii) such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to the financial
condition of the Credit Parties or the performance or observance by the Credit Parties of
any of its obligations under this Credit Agreement or any of the other Credit Documents or
any other instrument or document furnished pursuant hereto or thereto, (iii) such assignee
confirms that it has received a copy of this Credit Agreement, together with copies of the
financial statements referred to in Section 7.1 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 Acceptance, (iv) 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 Credit Agreement, (v)
such assignee appoints and authorizes the Agents to take such action as agent on its behalf
and to exercise such powers under this Credit Agreement and the other Credit Documents as
are delegated to the Agents by the terms hereof, together with such powers as are reasonably
incidental thereto and (vi) such assignee agrees that it will perform in accordance with
their terms all of the obligations which by the terms of this Credit Agreement are required
to be performed by it as a Lender.

     (e) The Agent shall maintain at its address referred to in Section 14.5 a copy
of each Assignment and Acceptance delivered to and accepted by it and a register for the
recordation of the names and addresses of the Lenders and the Commitments of, and principal
amount of the Loans owing to, each Lender from time to time (the “Register”). The
entries in the Register shall be conclusive and binding for all purposes, absent manifest
error, and the Borrowers, the Agents and the Lenders may treat each Person whose name is
recorded in the Register as a Lender hereunder for all purposes of this Credit Agreement.
The Register and copies of each Assignment and Acceptance shall be available for inspection
by the Borrowers or any Lender at any reasonable time and from time to time upon reasonable
prior notice.

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     (f) Upon its receipt of an Assignment and Acceptance executed by an assigning Lender,
together with any Note or Notes subject to such assignment, the Administrative Agent shall,
if such Assignment and Acceptance has been completed and is in substantially the form of
Exhibit B, (i) accept such Assignment and Acceptance, (ii) record the information
contained therein in the Register and (iii) give prompt notice thereof to the Borrowers.
Within ten (10) Business Days after its receipt of such notice, if requested by the
assignee, the Borrowers shall execute and deliver to the Agent in exchange for any
surrendered Note or Notes (which the assigning Lender agrees to promptly deliver to the
Company) a new Note or Notes to the order of the assignee in an amount equal to the
Commitment or Commitments assumed by it pursuant to such Assignment and Acceptance and, if
the assigning Lender has retained a Commitment or Commitments hereunder and if requested by
it, a new Note or Notes to the order of the assigning Lender in an amount equal to the
Commitment or Commitments retained by it hereunder. Any such new Note or Notes shall
re-evidence the indebtedness outstanding under any old Notes or Notes and shall be in an
aggregate principal amount equal to the aggregate principal amount of such surrendered Note
or Notes, shall be dated the Closing Date and shall otherwise be in substantially the form
of the Note or Notes subject to such assignments.

     (g) Each Lender may sell participations (without the consent of the Agent, the
Borrowers or any other Lender) to one or more parties in or to all or a portion of its
rights and obligations under this Credit Agreement (including, without limitation, all or a
portion of its Commitments, the Loans owing to it and any Note or Notes held by it);
provided that (i) such Lender’s obligations under this Credit Agreement (including,
without limitation, its Commitments to the Borrowers hereunder) shall remain unchanged, (ii)
such Lender shall remain solely responsible to the other parties hereto for the performance
of such obligations, (iii) such Lender shall remain the holder of any such Note for all
purposes of this Credit Agreement, (iv) the Borrowers, the 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 Credit Agreement and (v) such Lender shall not transfer,
grant, assign or sell any participation under which the participant shall have rights to
approve any amendment or waiver of this Credit Agreement except to the extent such amendment
or waiver would (A) extend the final maturity date or the date for the payments of any
installment of fees or principal or interest of any Loans or Letter of Credit reimbursement
obligations in which such participant is participating, (B) reduce the amount of any
installment of principal of the Loans or Letter of Credit reimbursement obligations in which
such participant is participating, (C) except as otherwise expressly provided in this Credit
Agreement, reduce the interest rate applicable to the Loans or Letter of Credit
reimbursement obligations in which such participant is participating, or (D) except as
otherwise expressly provided in this Credit Agreement, reduce any Fees payable hereunder.

     (h) Each Lender agrees that, without the prior written consent of the Borrowers and the
Agents, it will not make any assignment or sell a participation hereunder in any manner or
under any circumstances that would require registration or

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qualification of, or filings in respect of, any Loan, Note or other Obligation under
the securities laws of the United States of America or of any jurisdiction.

     (i) In connection with the efforts of any Lender to assign its rights or obligations or
to participate interests, such Lender may disclose any information in its possession
regarding the Borrowers or any of their Subsidiaries.

     14.7 Information.

     Each Lending Party agrees to keep confidential any information furnished or made available to
it by the Borrowers pursuant to this Credit Agreement that is marked confidential; provided
that nothing herein shall prevent any Lending Party from disclosing such information (a) to any
other Lending Party or any affiliate of any Lending Party, or any officer, director, employee,
agent, or advisor of any Lending Party or affiliate of any Lending Party, (b) to any other Person
if reasonably incidental to the administration of the credit facility provided herein, (c) as
required by any law, rule, or regulation, (d) upon the order of any court or administrative agency,
(e) upon the request or demand of any regulatory agency or authority; provided, however, that, to
the extent permitted by law, the affected Lending Party shall provide prior written notice to the
affected Borrower of any such request or demand, (f) that is or becomes available to the public or
that is or becomes available to any Lending Party other than as a result of a disclosure by any
Lending Party prohibited by this Credit Agreement, (g) in connection with any litigation to which
such Lending Party or any of its affiliates may be a party, whether to defend itself, reduce its
liability, protect or exercise any of its claims, rights, remedies or interests under or in
connection with the Credit Documents or any Lender Hedging Agreement, or otherwise, (h) to the
extent necessary in connection with the exercise of any remedy under this Credit Agreement or any
other Credit Document, (i) subject to provisions substantially similar to those contained in this
Section 14.7, to any actual or proposed participant or assignee and (j) to Gold
Sheets and other similar bank trade publications; such information to consist of deal terms and
other information customarily found in such publications. Each Borrower hereby authorizes the
Administrative Agent to use the name, logos and other insignia of such Borrower and the amount of
the credit facility provided hereunder in any “tombstone” or comparable advertising, on its website
or in other marketing materials of the Administrative Agent.

     14.8 Payment of Expenses; Indemnification.

     The Borrowers agree to pay all out-of-pocket costs and expenses (including reasonable legal
fees and expenses) of (i) the Agent in connection with (A) the syndication, negotiation,
preparation, execution, delivery, administration and monitoring of this Credit Agreement and the
other Credit Documents and the documents and instruments referred to therein or executed in
connection therewith, including evaluating the compliance by the Credit Parties with law and the
provisions of such documents (including, without limitation, the reasonable fees and expenses of
special counsel to the Agent and the fees and expenses of counsel for the Agent in connection with
collateral issues and all due diligence, appraisal, field exam, environmental audit and other
similar costs (including ongoing per diem and out of pocket expenses related to field exams and
appraisals)), and (B) any amendment, waiver or consent relating hereto and thereto including,
without limitation, any such amendments, waivers or consents resulting from or related to any

113

 

work-out, re-negotiation or restructure relating to the performance by any of the Credit Parties
under this Credit Agreement or any other Credit Documents and (ii) the Agent and the Lenders in
connection with (A) enforcement of the Credit Documents and the documents and instruments referred
to therein or executed in connection therewith, including but not limited to, any work-out,
re-negotiation or restructure relating to the performance by any of the Credit Parties under this
Credit Agreement or any other Credit Documents, including, without limitation, in connection with
any such enforcement, the reasonable fees and disbursements of counsel for the Agent and each of
the Lenders (including the allocated costs of internal counsel), and the reasonable fees and
expenses of a financial consultant engaged by the Agent or its counsel in connection with the
foregoing, and (B) any investigation (including, without limitation, background checks) performed
to determine whether any Credit Party, or any officer, director shareholder or Affiliate of a
Credit Party has violated any Anti-Terrorism Law or other similar law. The Borrowers shall
indemnify, defend and hold harmless the Agent, the Issuing Bank and each of the Lenders and their
respective directors, officers, agents, employees and counsel from and against (x) any and all
losses, claims, damages, liabilities, deficiencies, judgments or expenses incurred by any of them
(except to the extent that it is finally judicially determined to have resulted from their own
gross negligence or willful misconduct) arising out of or by reason of any litigation,
investigation, claim or proceeding which arises out of or is in any way related to (i) this Credit
Agreement, any Letter of Credit or any other Credit Documents or the transactions contemplated
hereby or thereby, (ii) any actual or proposed use by any Borrower of the proceeds of the Loans or
(iii) the Agent’s, the Issuing Bank’s or the Lenders’ entering into this Credit Agreement, the
other Credit Documents or any other agreements and documents relating hereto, including, without
limitation, amounts paid in settlement, court costs and the reasonable fees and disbursements of
counsel incurred in connection with any such litigation, investigation, claim or proceeding or any
advice rendered in connection with any of the foregoing and (y) any such losses, claims, damages,
liabilities, deficiencies, judgments or expenses incurred by any of them (except to the extent that
it is finally judicially determined to have resulted from their own gross negligence or willful
misconduct) in connection with any remedial or other action taken by any Borrower or any of the
Lenders in connection with compliance by any Borrower or any of its Subsidiaries, or any of their
respective properties, with any federal, state or local environmental laws, acts, rules,
regulations, orders, directions, ordinances, criteria or guidelines. If and to the extent that the
obligations of any Borrower hereunder are unenforceable for any reason, such Borrower hereby agrees
to make the maximum contribution to the payment and satisfaction of such obligations which is
permissible under applicable law. The Borrowers’ obligations under this Section 14.8 shall
survive any termination of this Credit Agreement and the other Credit Documents and the payment in
full of the Obligations, and are in addition to, and not in substitution of, any other of their
Obligations set forth in this Credit Agreement. In addition, the Borrowers shall, upon demand, pay
to the Agent and any Lender all costs and expenses (including the reasonable fees and disbursements
of counsel and other professionals) paid or incurred by the Agent, the Issuing Bank or such Lender
in (A) enforcing or defending its rights under or in respect of this Credit Agreement, the other
Credit Documents or any other document or instrument now or hereafter executed and delivered in
connection herewith, (B) in collecting the Loans, (C) in foreclosing or otherwise collecting upon
the Collateral or any part thereof and (D) obtaining any legal, accounting or other advice in
connection with any of the foregoing.

114

 

     14.9 Entire Agreement, Successors and Assigns.

     This Credit Agreement along with the other Credit Documents and the Fee Letter constitutes the
entire agreement among the Credit Parties, the Agent and the Lenders, supersedes any prior
agreements among them, and shall bind and benefit the Credit Parties and the Lenders and their
respective successors and permitted assigns.

     14.10 Amendments, Etc.

     Neither the amendment or waiver of any provision of this Credit Agreement or any other Credit
Document, nor the consent to any departure by any Credit Party therefrom, shall in any event be
effective unless the same shall be in writing and signed by the Required Lenders, or if the Lenders
shall not be parties thereto, by the parties thereto and consented to by the Required Lenders and
(so long as no Event of Default has occurred and is continuing) the Company, and each such
amendment, waiver or consent shall be effective only in the specific instance and for the specific
purpose for which given; provided that no amendment, waiver or consent shall unless in
writing and signed by all the Lenders (and in the case of clause (e) below, with respect to Section
2.9, and clause (f) below, any provider of a Lender Hedging Agreement), do any of the following:

     (a) increase the Commitments of the Lenders or subject the Lenders to any additional
obligations;

     (b) except as otherwise expressly provided in this Credit Agreement, reduce the
principal of, or interest on, any Note or any Letter of Credit reimbursement obligations or
any fees hereunder;

     (c) postpone any date fixed for any payment or mandatory prepayment in respect of
principal of, or interest on, any Note or any Letter of Credit reimbursement obligations or
any fees hereunder;

     (d) change the percentage of the Commitments, or any minimum requirement necessary for
the Lenders or the Required Lenders to take any action hereunder;

     (e) amend or waive Section 2.1(d)(vii), Section 2.8, Section
2.9 or this Section 14.10, or change the definition of Required Lenders;

     (f) except as otherwise expressly provided in this Credit Agreement, and other than in
connection with the financing, refinancing, sale or other disposition of any asset of the
Credit Parties permitted under this Credit Agreement, release any Liens in favor of the
Lenders on all or substantially all of the Collateral;

     (g) except as expressly permitted hereunder, modify the definition of Borrowing Base or
any defined term or component set forth in the definition thereof such that more credit
would be available to the Borrowers; provided, that (i) the foregoing shall not
limit the adjustment by the Agent of any reserve implemented by the Agent and

115

 

(ii) the foregoing shall not prevent the Agent from restoring any component of the Borrowing
Base which had been lowered by the Agent back to the value of such component in effect on
the Closing Date or to an intermediate value; or

     (h) agree to subordinate the priority of Liens on the Collateral in favor of the Agent,
for the benefit of the Lenders, in favor of any other creditor of the Credit Parties or;

     (j) release all or substantially all of the value of the Guaranty Agreement(s)

provided, further, that no amendment, waiver or consent affecting the rights or
duties of the Agent or the Issuing Bank under any Credit Document shall in any event be effective,
unless in writing and signed by the Agent and/or the Issuing Bank, as applicable, in addition to
the Lenders required hereinabove to take such action.

     Notwithstanding any of the foregoing to the contrary, the consent of the Borrowers shall not
be required for any amendment, modification or waiver of the provisions of Article XIII
(other than the provisions of Section 13.9).

     14.11 Nonliability of Agent and Lenders.

     The relationship between any Borrower on the one hand and the Lenders and the Agent on the
other hand shall be solely that of borrower and lender. Neither the Agent nor any Lender shall
have any fiduciary responsibilities to any Borrower. Neither the Agent nor any Lender undertakes
any responsibility to any Borrower to review or inform such Borrower of any matter in connection
with any phase of such Borrower’s business or operations.

     14.12 Independent Nature of Lenders’ Rights.

     The amounts payable at any time hereunder to each Lender on account of such Lender’s Loans and
under any Note or Notes held by it shall be a separate and independent debt.

     14.13 Counterparts.

     This Credit Agreement may be executed in any number of counterparts and by the different
parties hereto in separate counterparts, each of which when so executed and delivered shall be an
original, but all of which shall together constitute one and the same instrument.

     14.14 Effectiveness.

     This Credit Agreement shall become effective at such time when all of the conditions set forth
in Section 5.1 have been satisfied or waived by the Lenders and it shall have been executed
by each Borrower and the Agent, and the Agent shall have received copies hereof (telefaxed or
otherwise) which, when taken together, bear the signatures of each Lender, and thereafter this
Credit Agreement shall be binding upon and inure to the benefit of each Credit Party, the Agent and
each Lender and their respective successors and assigns.

116

 

     14.15 Severability.

     In case any provision in or obligation under this Credit Agreement or any Notes or the other
Credit Documents shall be invalid, illegal or unenforceable in any jurisdiction, the validity,
legality and enforceability of the remaining provisions or obligations, or of such provision or
obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

     14.16 Headings Descriptive.

     The headings of the several sections and subsections of this Credit Agreement, and the Table
of Contents, are inserted for convenience only and shall not in any way affect the meaning or
construction of any provision of this Credit Agreement.

     14.17 Maximum Rate.

     Notwithstanding anything to the contrary contained elsewhere in this Credit Agreement or in
any other Credit Document, the Borrowers, the Agent and the Lenders hereby agree that all
agreements among them under this Credit Agreement and the other Credit Documents, whether now
existing or hereafter arising and whether written or oral, are expressly limited so that in no
contingency or event whatsoever shall the amount paid, or agreed to be paid, to the Agent or any
Lender for the use, forbearance, or detention of the money loaned to any Borrower and evidenced
hereby or thereby or for the performance or payment of any covenant or obligation contained herein
or therein, exceed the Highest Lawful Rate. If due to any circumstance whatsoever, fulfillment of
any provisions of this Credit Agreement or any of the other Credit Documents at the time
performance of such provision shall be due shall exceed the Highest Lawful Rate, then,
automatically, the obligation to be fulfilled shall be modified or reduced to the extent necessary
to limit such interest to the Highest Lawful Rate, and if from any such circumstance any Lender
should ever receive anything of value deemed interest by applicable law which would exceed the
Highest Lawful Rate, such excessive interest shall be applied to the reduction of the principal
amount then outstanding hereunder or on account of any other then outstanding Obligations and not
to the payment of interest, or if such excessive interest exceeds the principal unpaid balance then
outstanding hereunder and such other then outstanding Obligations, such excess shall be refunded to
the applicable Borrower. All sums paid or agreed to be paid to the Agent or any Lender for the
use, forbearance, or detention of the Obligations and other indebtedness of the Borrowers to the
Agent or any Lender shall, to the extent permitted by applicable law, be amortized, prorated,
allocated and spread throughout the full term of such indebtedness until payment in full so that
the actual rate of interest on account of all such indebtedness does not exceed the Highest Lawful
Rate throughout the entire term of such indebtedness. The terms and provisions of this Section
shall control every other provision of this Credit Agreement and all agreements among the
Borrowers, the Agent and the Lenders.

     14.18 Right of Setoff.

     In addition to and not in limitation of all rights of offset that any Lender or other holder
of a Note may have under applicable law, each Lender shall, if any Event of Default has

117

 

occurred and is continuing and whether or not such Lender or such holder has made any demand or the
Obligations of any Borrower are matured, have the right to appropriate and apply to the payment of
the Obligations of such Borrower all deposits (general or special, time or demand, provisional or
final) then or thereafter held by and other indebtedness or property then or thereafter owing by
such Lender or other holder, including, without limitation, any and all amounts in the Cash
Concentration Account. Any amount received as a result of the exercise of such rights shall be
reallocated among the Lenders as set forth in Section 3.8.

     14.19 Concerning Joint and Several Liability of the Borrowers.

     (a) Each of the Borrowers is accepting joint and several liability hereunder in
consideration of the financial accommodation to be provided by the Lenders under this Credit
Agreement, for the mutual benefit, directly and indirectly, of each of the Borrowers and in
consideration of the undertakings of each of the Borrowers to accept joint and several
liability for the obligations of each of them.

     (b) Each of the Borrowers jointly and severally hereby irrevocably and unconditionally
accepts, not merely as a surety but also as a co-debtor, joint and several liability with
the other Borrowers with respect to the payment and performance of all of the Obligations,
it being the intention of the parties hereto that all the Obligations shall be the joint and
several obligations of each of the Borrowers without preferences or distinction among them.

     (c) If and to the extent that any of the Borrowers shall fail to make any payment with
respect to any of the Obligations as and when due or to perform any of the Obligations in
accordance with the terms thereof, then in each such event, the other Borrowers will make
such payment with respect to, or perform, such Obligation.

     (d) The obligations of each Borrower under the provisions of this Section 14.19
constitute full recourse obligations of such Borrower, enforceable against it to the full
extent of its properties and assets, irrespective of the validity, regularity or
enforceability of this Credit Agreement or any other circumstances whatsoever.

     (e) Except as otherwise expressly provided herein, each Borrower hereby waives notice
of acceptance of its joint and several liability, notice of any Loan made under this Credit
Agreement, notice of occurrence of any Event of Default, or of any demand for any payment
under this Credit Agreement, notice of any action at any time taken or omitted by any Lender
under or in respect of any of the Obligations, any requirement of diligence and, generally,
all demands, notices and other formalities of every kind in connection with this Credit
Agreement. Each Borrower hereby assents to, and waives notice of, any extension or
postponement of the time for the payment of any of the Obligations, the acceptance of any
partial payment thereon, any waiver, consent or other action or acquiescence by any Lender
at any time or times in respect of any default by any Borrower in the performance or
satisfaction of any term, covenant, condition or provision of this Credit Agreement, any and
all other indulgences whatsoever by any Lender in respect of any of the Obligations, and the
taking, addition, substitution or

118

 

release, in whole or in part, at any time or times, of any security for any of the
Obligations or in part, at any time or times, of any security for any of the Obligations or
the addition, substitution or release, in whole or in part, of any Borrower. Without
limiting the generality of the foregoing, each Borrower assents to any other action or delay
in acting or failure to act on the part of any Lender, including, without limitation, any
failure strictly or diligently to assert any right or to pursue any remedy or to comply
fully with the applicable laws or regulations thereunder which might, but for the provisions
of this Section 14.19, afford grounds for terminating, discharging or relieving such
Borrower, in whole or in part, from any of its obligations under this Section 14.19,
it being the intention of each Borrower that, so long as any of the Obligations remain
unsatisfied, the obligations of such Borrower under this Section 14.19 shall not be
discharged except by performance and then only to the extent of such performance. The

     Obligations of each Borrower under this Section 14.19 shall not be diminished or
rendered unenforceable by any winding up, reorganization, arrangement, liquidation,
reconstruction or similar proceeding with respect to any Borrower or any Lender. The joint
and several liability of the Borrowers hereunder shall continue in full force and effect
notwithstanding any absorption, merger, amalgamation or any other change whatsoever in the
name, membership, constitution or place of formation of any Borrower or any Lender.

     (f) The provisions of this Section 14.19 are made for the benefit of the
Lenders and their respective successors and assigns, and may be enforced by any such Person
from time to time against any of the Borrowers as often as occasion therefor may arise and
without requirement on the part of any Lender first to marshal any of its claims or to
exercise any of its rights against any of the other Borrowers or to exhaust any remedies
available to it against any of the other Borrowers or to resort to any other source or means
of obtaining payment of any of the Obligations or to elect any other remedy. The provisions
of this Section 14.19 shall remain in effect until all the Obligations shall have
been paid in full or otherwise fully satisfied. If at any time, any payment, or any part
thereof, made in respect of any of the Obligations, is rescinded or must otherwise be
restored or returned by any Lender upon the insolvency, bankruptcy or reorganization of any
of the Borrowers, or otherwise, the provisions of this Section 14.19 will forthwith
be reinstated in effect, as though such payment had not been made.

     (g) Notwithstanding any provision to the contrary contained herein or in any other of
the Credit Documents, to the extent the joint obligations of a Borrower shall be adjudicated
to be invalid or unenforceable for any reason (including, without limitation, because of any
applicable state or federal law relating to fraudulent conveyances or transfers) then the
obligations of each Borrower hereunder shall be limited to the maximum amount that is
permissible under applicable law (whether federal or state and including, without
limitation, the Bankruptcy Code), after taking into account, among other things, such
Borrower’s right of contribution and indemnification from each other Credit Party under
applicable law or the Contribution Agreement.

119

 

     14.20 Delegation of Authority.

     Each Subsidiary Borrower and (by execution and delivery of the Guaranty Agreement or of a
joinder thereto and incorporation by reference therein) each Guarantor hereby authorizes and
appoints the Company and each of the Responsible Officers of the Company, to be its attorneys
(“its Attorneys”) and in its name and on its behalf and as its act and deed or otherwise to
execute and deliver all documents and carry out all such acts as are necessary or appropriate in
connection with borrowing Loans and the making of other extensions of credit hereunder, the
granting and perfection of security interests under the Security Documents, and complying with the
terms and provisions hereof and the other Credit Documents. This delegation of authority and
appointment shall be valid for the duration of the term of this Credit Agreement; provided,
however, that such delegation of authority and appointment shall terminate automatically
without any further act with respect to any Responsible Officer if such Responsible Officer is no
longer an employee of the Company. Each Subsidiary Borrower and (by execution and delivery of the
Guaranty Agreement or of a joinder thereto and incorporation by reference therein) each Guarantor
hereby undertakes to ratify everything which any of its Attorneys shall do in furtherance of this
delegation of authority and appointment.

[remainder of page intentionally left blank]

120

 

     IN WITNESS WHEREOF the parties hereto have caused this Credit Agreement to be executed and
delivered by their proper and duly authorized officers as of the date set forth above.

	 	 	 	 	 
	BORROWERS:	 	COLEMAN CABLE, INC.,

a Delaware corporation
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	OSWEGO WIRE INCORPORATED.,

a Texas corporation
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	CCI ENTERPRISES, INC.,

a Delaware corporation
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	COPPERFIELD, LLC,

a Minnesota limited liability company
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	SPELL CAPITAL CORPORATION, a Minnesota corporation
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

 

	 	 	 	 	 
	AGENT AND LENDERS	 	WACHOVIA BANK,

NATIONAL ASSOCIATION,

as Administrative Agent and as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

 

	 	 	 	 	 
	 	 	NATIONAL CITY BUSINESS CREDIT, INC.,

as Syndication Agent and as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

 

	 	 	 	 	 
	 	 	PNC BANK, NATIONAL ASSOCIATION,

as Documentation Agent and as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

 

	 	 	 	 	 
	 	 	ASSOCIATED BANK,

NATIONAL ASSOCIATION,

as Documentation Agent and as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

 

	 	 	 	 	 
	 	 	LASALLE BUSINESS CREDIT, LLC,

as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

 

	 	 	 	 	 
	 	 	WELLS FARGO FOOTHILL, LLC

as Documentation Agent and as a Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:exv4w1

 

EXHIBIT 4.1

 

 

NABISCO, INC.

as the Company

and

CITIBANK, N.A.

as Trustee

 

Indenture

Dated as of June 5, 1995

 

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	
RECITALS OF THE COMPANY	 	 	 	 
	
ARTICLE 1	 	 	 	 
	
 DEFINITIONS AND INCORPORATION BY REFERENCE	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 1.1
	 	Definitions	 	 	1	 
	SECTION 1.2
	 	Other Definitions	 	 	8	 
	SECTION 1.3
	 	Incorporation by Reference of Trust
Indenture Act	 	 	8	 
	SECTION 1.4
	 	Rules of Construction	 	 	9	 
	
ARTICLE 2	 	 	 	 
	
THE SECURITIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 2.1
	 	Form and Dating	 	 	9	 
	SECTION 2.2
	 	Execution and Authentication	 	 	9	 
	SECTION 2.3
	 	Amount Unlimited; Issuable in Series	 	 	11	 
	SECTION 2.4
	 	Denomination and Date of Securities; Payments of Interest	 	 	14	 
	SECTION 2.5
	 	Registrar and Paying Agent; Agents Generally	 	 	15	 
	SECTION 2.6
	 	Paying Agent to Hold Money in Trust	 	 	16	 
	SECTION 2.7
	 	Transfer and Exchange	 	 	17	 
	SECTION 2.8
	 	Replacement Securities	 	 	20	 
	SECTION 2.9
	 	Outstanding Securities	 	 	21	 
	SECTION 2.10
	 	Temporary Securities	 	 	21	 
	SECTION 2.11
	 	Cancellation	 	 	22	 
	SECTION 2.12
	 	CUSIP Numbers	 	 	22	 
	SECTION 2.13
	 	Defaulted Interest	 	 	22	 
	SECTION 2.14
	 	Series May Include Tranches	 	 	23	 
	
ARTICLE 3	 	 	 	 
	
REDEMPTION	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 3.1
	 	Applicability of Article	 	 	23	 
	SECTION 3.2

	 	Notice of Redemption; Partial
Redemptions
	 	 	23	 

 

			
	*Note:	 	The Table of Contents shall not for any purposes be
deemed to be a part of the Indenture.

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	SECTION 3.3
	 	Payment of Securities Called for Redemption	 	 	26	 
	SECTION 3.4
	 	Exclusion of Certain Securities from
Eligibility for Selection for
Redemption	 	 	27	 
	SECTION 3.5
	 	Mandatory and Optional Sinking Funds	 	 	27	 
	
ARTICLE 4	 	 	 	 
	
COVENANTS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 4.1
	 	Payment of Securities	 	 	30	 
	SECTION 4.2
	 	Maintenance of Office or Agency	 	 	31	 
	SECTION 4.3
	 	Negative Pledge	 	 	32	 
	SECTION 4.4
	 	Certain Sale and Lease-back Transactions	 	 	33	 
	SECTION 4.5
	 	Funded Debt of Restricted Subsidiaries	 	 	35	 
	SECTION 4.6
	 	Certificate to Trustee	 	 	35	 
	SECTION 4.7
	 	Reports by the Company	 	 	36	 
	
ARTICLE 5	 	 	 	 
	
SUCCESSOR CORPORATION	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 5.1
	 	When Company May Merge, Etc.	 	 	36	 
	SECTION 5.2
	 	Successor Substituted	 	 	37	 
	
ARTICLE 6	 	 	 	 
	
DEFAULT AND REMEDIES	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 6.1
	 	Events of Default	 	 	37	 
	SECTION 6.2
	 	Acceleration	 	 	38	 
	SECTION 6.3
	 	Other Remedies	 	 	40	 
	SECTION 6.4
	 	Waiver of Past Defaults	 	 	40	 
	SECTION 6.5
	 	Control by Majority	 	 	41	 
	SECTION 6.6
	 	Limitation on Suits	 	 	41	 
	SECTION 6.7
	 	Rights of Holders to Receive Payment	 	 	42	 
	SECTION 6.8
	 	Collection Suit by Trustee	 	 	42	 
	SECTION 6.9
	 	Trustee May File Proofs of Claim	 	 	42	 
	SECTION 6.10
	 	Application of Proceeds	 	 	43	 
	SECTION 6.11
	 	Restoration of Rights and Remedies	 	 	44	 
	SECTION 6.12
	 	Undertaking for Costs	 	 	44	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	SECTION 6.13
	 	Rights and Remedies Cumulative	 	 	44	 
	SECTION 6.14
	 	Delay or Omission Not Waiver	 	 	45	 
	
ARTICLE 7	 	 	 	 
	
TRUSTEE	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 7.1
	 	General	 	 	45	 
	SECTION 7.2
	 	Certain Rights of Trustee	 	 	45	 
	SECTION 7.3
	 	Individual Rights of Trustee	 	 	47	 
	SECTION 7.4
	 	Trustee’s Disclaimer	 	 	48	 
	SECTION 7.5
	 	Notice of Default	 	 	48	 
	SECTION 7.6
	 	Reports by Trustee to Holders	 	 	48	 
	SECTION 7.7
	 	Compensation and Indemnity	 	 	48	 
	SECTION 7.8
	 	Replacement of Trustee	 	 	49	 
	SECTION 7.9
	 	Successor Trustee by Merger, Etc.	 	 	51	 
	SECTION 7.10
	 	Eligibility	 	 	51	 
	SECTION 7.11
	 	Money Held in Trust	 	 	51	 
	
ARTICLE 8	 	 	 	 
	
DISCHARGE OF INDENTURE	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 8.1
	 	Defeasance Within One Year of Payment	 	 	51	 
	SECTION 8.2
	 	Defeasance	 	 	52	 
	SECTION 8.3
	 	Covenant Defeasance	 	 	54	 
	SECTION 8.4
	 	Application of Trust Money	 	 	55	 
	SECTION 8.5
	 	Repayment to Company	 	 	55	 
	
ARTICLE 9	 	 	 	 
	
AMENDMENTS, SUPPLEMENTS AND WAIVERS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 9.1
	 	Without Consent of Holders	 	 	56	 
	SECTION 9.2
	 	With Consent of Holders	 	 	56	 
	SECTION 9.3
	 	Revocation and Effect of Consent	 	 	58	 
	SECTION 9.4
	 	Notation on or Exchange of Securities	 	 	59	 
	SECTION 9.5
	 	Trustee to Sign Amendments, Etc.	 	 	59	 
	SECTION 9.6
	 	Conformity with Trust Indenture Act	 	 	59	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	
ARTICLE 10	 	 	 	 
	
MISCELLANEOUS	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 10.1
	 	Trust Indenture Act of 1939	 	 	59	 
	SECTION 10.2
	 	Notices	 	 	60	 
	SECTION 10.3
	 	Certificate and Opinion as to Conditions Precedent	 	 	61	 
	SECTION 10.4
	 	Statements Required in Certificate or Opinion	 	 	61	 
	SECTION 10.5
	 	Evidence of Ownership	 	 	62	 
	SECTION 10.6
	 	Rules by Trustee, Paying Agent or Registrar	 	 	63	 
	SECTION 10.7
	 	Payment Date Other Than a Business Day	 	 	63	 
	SECTION 10.8
	 	Governing Law	 	 	63	 
	SECTION 10.9
	 	No Adverse Interpretation of Other Agreements	 	 	63	 
	SECTION 10.10
	 	Successors	 	 	63	 
	SECTION 10.11
	 	Duplicate Originals	 	 	63	 
	SECTION 10.12
	 	Separability	 	 	63	 
	SECTION 10.13
	 	Table of Contents, Headings, Etc.	 	 	63	 
	SECTION 10.14
	 	Incorporators, Stockholders, Officers and Directors of Company Exempt from Individual Liability	 	 	64	 
	SECTION 10.15
	 	Judgment Currency	 	 	64	 
	 
	 	 	 	 	 	 
	SIGNATURES
	 	 	 	 	 	 

iv

 

          INDENTURE, dated as of June 5, 1995, between Nabisco, Inc., a New Jersey corporation, as
the Company, and Citibank, N.A., a national association, as Trustee.

RECITALS OF THE COMPANY

          WHEREAS, the Company has duly authorized the issue from time to time of its debentures, notes
or other evidences of indebtedness to be issued in one or more series (the “Securities”) up to such
principal amount or amounts as may from time to time be authorized in accordance with the terms of
this Indenture and to provide, among other things, for the authentication, delivery and
administration thereof, the Company has duly authorized the execution and delivery of this
Indenture; and

          WHEREAS, all things necessary to make this Indenture a valid indenture and agreement
according to its terms have been done;

          NOW, THEREFORE:

          In consideration of the premises and the purchases of the Securities by the holders thereof,
the Company and the Trustee mutually covenant and agree for the equal and proportionate benefit of
the respective holders from time to time of the Securities or of any and all series thereof and of
the coupons, if any, appertaining thereto as follows:

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

          SECTION 1.1 Definitions.

          “Agent” means any Registrar, Paying Agent, transfer agent or Authenticating Agent.

          “Attributable Debt” means, when used in connection with a sale and lease-back transaction
referred to in Section 4.4, on any date as of which the amount thereof is to be determined, the
product of (a) the net proceeds from such sale and lease-back transaction multiplied by (b) a
fraction, the numerator of which is the number of full years of the term of the lease relating to
the property involved in such sale and lease-back transaction (without regard to any options to
renew or extend such term) remaining on the date of the making of such computation and the
denominator of which is the number of full years of the term of such lease measured from the first
day of such term.

          “Authorized Newspaper” means a newspaper (which, in the case of The City of New York, will,
if practicable,

 

 

be The Wall Street Journal (Eastern Edition) and in the case of London, will, if practicable, be
the Financial Times (London Edition) and published in an official language of the country of
publication customarily published at least once a day for at least five days in each calendar week
and of general circulation in The City of New York or London, as applicable. If it shall be
impractical in the opinion of the Trustee to make any publication of any notice required hereby in
an Authorized Newspaper, any publication or other notice in lieu thereof which is made or given
with the approval of the Trustee shall constitute a sufficient publication of such notice.

          “Board Resolution” means one or more resolutions of the board of directors of the Company or
any authorized committee thereof, certified by the secretary or an assistant secretary to have been
duly adopted and to be in full force and effect on the date of certification, and delivered to the
Trustee.

          “Business Day” means any day, other than a Saturday or Sunday, that is neither a legal holiday
nor a day on which banking institutions are authorized or required by law or regulation to close in
The City of New York, with respect to any Security the interest on which is based on the offered
quotations in the interbank Eurodollar market for dollar deposits in London, or with respect to
Securities denominated in a specified currency other than United States dollars, in the principal
financial center of the country of the specified currency.

          “Capital Stock” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated, whether voting or non-voting) of such
Person’s capital stock or equity, including, without limitation, all Common Stock and Preferred
Stock.

          “Commission” means the Securities and Exchange Commission, as from time to time
constituted, created under the Exchange Act or, if at any time after the execution of this
instrument such Commission is not existing and performing the duties now assigned to it under the
Trust Indenture Act, then the body performing such duties at such time.

          “Common Stock” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated, whether voting or non-voting) of such
Person’s common stock, whether now outstanding or issued after the date of this Indenture,
including, without limitation, all series and classes of such common stock.

2

 

          “Company” means the party named as such in the first paragraph of this Indenture until a
successor replaces it pursuant to Article 5 of this Indenture and thereafter means the successor.

          “Consolidated Net Worth” means, at any date of determination, the consolidated stockholders’
equity of the Company, as set forth on the then most recently available consolidated balance sheet
of the Company and its consolidated Subsidiaries.

          “Corporate Trust Office” means the office of the Trustee at which the corporate trust business
of the Trustee shall, at any particular time, be principally administered, which office is, at the
date of this Indenture, located at 120 Wall street, New York, New York 10043 Attention: Corporate
Trust Administration,

          “Default” means any Event of Default as defined in Section 6.1 and any event that is, or after
notice or passage of time or both would be, an Event of Default.

          “Depositary” means, with respect to the Securities of any series issuable or issued in the
form of one or more Registered Global Securities, the Person designated as Depositary by the
Company pursuant to Section 2.3 until a successor Depositary shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter “Depositary” shall mean or include each
Person who is then a Depositary hereunder, and if at any time there is more than one such Person,
“Depositary” as used with respect to the Securities of any such series shall mean the Depositary
with respect to the Registered Global Securities of that series.

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

          “Exempted Debt” means the sum, without duplication, of the following items outstanding as of
the date Exempted Debt is being determined: (i) indebtedness of the Company and its Restricted
Subsidiaries incurred after the date of this Indenture and secured by liens created or assumed or
permitted to exist pursuant to Section 4.3(b), (ii) Attributable Debt of the Company and its
Restricted Subsidiaries in respect of all sale and lease-back transactions with regard to any
Principal Property entered into pursuant to Section 4.4(b) and (iii) Funded Debt of Restricted
Subsidiaries created, assumed or guaranteed pursuant to Section 4.5(b).

          “Funded Debt” means all indebtedness for money borrowed, including purchase money
indebtedness, having a maturity of more than one year from the date of its creation

3

 

or having a maturity of less than one year but by its terms being renewable or extendible, at the
option of the obligor in respect thereof, beyond one year from the date of its creation.

          “GAAP” means generally accepted accounting principles in the United States of America at the
date of any computation required or permitted hereunder.

          “Holder” or “Securityholder” means the registered holder of any Security with respect to
Registered Securities and the bearer of any Unregistered Security or any coupon appertaining
thereto, as the case may be.

          “Indenture” means this Indenture as originally executed or as it may be amended or
supplemented from time to time by one or more indentures supplemental to this Indenture entered
into pursuant to the applicable provisions of this Indenture and shall include the forms and terms
of the Securities of each series established as contemplated pursuant to Sections 2.1 and 2.3.

          “Officer” means, with respect to the Company, the chairman of the board of directors, the
president or chief executive officer, any vice president, the chief financial officer, the
treasurer or any assistant treasurer, or the secretary or any assistant secretary.

          “Officers’ Certificate” means a certificate signed in the name of the Company (i) by the
chairman of the board of directors, the president or chief executive officer or a vice president
and (ii) by the chief financial officer, the treasurer or any assistant treasurer, or the secretary
or any assistant secretary, complying with Section 10.4 and delivered to the Trustee. Each such
certificate shall comply with Section 314 of the Trust Indenture Act and include (except as
otherwise expressly provided in this Indenture) the statements
provided in Section 10.4.

          “Opinion of Counsel” means a written opinion signed by legal counsel, who may be an employee
of or counsel to the Company, satisfactory to the Trustee and complying with Section 10.4. Each
such opinion shall comply with Section 314 of the Trust Indenture Act and include the statements
provided in Section 10.4, if and to the extent required thereby.

          “original issue date” of any Security (or portion thereof) means the earlier of (a) the date
of authentication of such Security or (b) the date of any Security (or portion thereof) for which
such Security was issued (directly or indirectly) on registration of transfer, exchange or
substitution.

4

 

          “Original Issue Discount Security” means any Security that provides for an amount less
than the principal amount thereof to be due and payable upon a declaration of acceleration of the
maturity thereof pursuant to Section 6.2.

          “Periodic Offering” means an offering of Securities of a series from time to time, the
specific terms of which Securities, including, without limitation, the rate or rates of interest,
if any, thereon, the stated maturity or maturities thereof and the redemption provisions, if any,
with respect thereto, are to be determined by the Company or its agents upon the issuance of such
Securities.

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

          “Preferred Stock” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated, whether voting or non-voting) of such
Person’s preferred or preference stock, whether now outstanding or issued after the date of the
Indenture, including, without limitation, all series and classes of such preferred or preference
stock.

          “Principal” of a Security means the principal amount of, and, unless the context
indicates otherwise, includes any premium payable on, the Security.

          “Principal Property” means land, land improvements, buildings and associated factory and
laboratory equipment owned or leased pursuant to a capital lease and used by the Company or a
Restricted Subsidiary primarily for processing, producing, packaging or storing its products, raw
materials, inventories or other materials and supplies and located within the United states of
America and having an acquisition cost plus capitalized improvements in excess of 2% of
Consolidated Net Worth as of the date of such determination, but shall not include any such
property financed through the issuance of tax exempt governmental obligations, or any such property
that has been determined by Board Resolution not to be of material importance to the respective
business conducted by the Company or such Restricted Subsidiary, effective as of the date such
Board Resolution is adopted.

          “Registered Global Security” means a Security evidencing all or a part of a series of
Registered Securities, issued to the Depositary for such series in

5

 

accordance with Section 2.2, and bearing the legend prescribed in Section 2.2.

          “Registered Security” means any Security
registered on the Security Register (as defined in Section 2.5) .

          “Responsible Officer” means, when used with respect to the Trustee, any senior trust officer,
any vice president, any trust officer, any assistant trust officer, or any other officer or
assistant officer of the Trustee customarily performing functions similar to those performed by the
persons who at the time shall be such officers, respectively, or to whom any corporate trust matter
is referred because of his knowledge of and familiarity with the particular subject.

          “Restricted Subsidiary” means any Subsidiary organized and existing under the laws of the
United States of America and the principal business of which is carried on within the United States
of America which owns or is a lessee pursuant to a capital lease of any Principal Property and in
which the investment of the Company and all its Subsidiaries exceeds 5% of Consolidated Net Worth
as of the date of such determination other than:

     (i) each Subsidiary the major part of whose business consists of finance,
banking, credit, leasing, insurance, financial services or other similar operations,
or any combination thereof; and

     (ii) each Subsidiary formed or acquired after the date hereof for the purpose
of acquiring the business or assets of another Person and which does not acquire all
or any substantial part of the business or assets of the Company or any Restricted
Subsidiary;

provided,
however, that any Subsidiary may be declared a Restricted Subsidiary by
Board Resolution, effective as of the date such Board Resolution is adopted; provided
further, that any such declaration may be rescinded by further Board Resolution, effective as of
the date such further Board Resolution is adopted.

          “Securities” means any of the securities, as defined in the first paragraph of the recitals
hereof, that are authenticated and delivered under this Indenture and, unless the context
indicates otherwise, shall include any coupon appertaining thereto.

6

 

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

          “Subsidiary” means, with respect to any Person, any corporation, association or other
business entity of which more than 50% of the outstanding Voting Stock is owned, directly or
indirectly, by such Person and one or more other Subsidiaries of such Person.

          “Trustee” means the party named as such in the first paragraph of this Indenture until a
successor replaces it in accordance with the provisions of Article 7 and thereafter means such
successor.

          “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended (15 U.S. Code §§
77aaa-77bbbb), as it may be amended from time to time.

          “UCC” means the Uniform Commercial Code, as in effect in each applicable jurisdiction.

          “United
States Bankruptcy Code” means the
Bankruptcy Reform Act of 1978, as amended and as codified in Title 11 of the United States Code, as
amended from time to time hereafter, or any successor federal bankruptcy law.

          “Unregistered Security” means any Security other than a Registered Security.

          “U.S. Government Obligations” means securities that are (i) direct obligations of the United
States of America for the payment of which its full faith and credit is pledged or (ii) obligations
of an agency or instrumentality of the United States of America the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United States of America,
and shall also include a depository receipt issued by a bank or trust company as custodian with
respect to any such U.S. Government Obligation or a specific payment of interest on or principal of
any such U.S. Government Obligation held by such custodian for the account of the holder of a
depository receipt; provided that (except as required by law) such custodian is not
authorized to make any deduction from the amount payable to the holder of such depository receipt
from any amount received by the custodian in respect of the U.S. Government Obligation or the
specific payment of interest on or principal of the U.S. Government Obligation evidenced by such
depository receipt.

          “Voting Stock” means with respect to any Person, Capital Stock of any class or kind ordinarily
having the power to vote for the election of directors, managers or other voting members of the
governing body of such Person.

7

 

          “Yield to Maturity” means, as the context may require, the yield to maturity (i) on a series
of Securities or (ii) if the Securities of a series are issuable from time to time, on a Security
of such series, calculated at the time of issuance of such series in the case of clause (i) or at
the time of issuance of such Security of such series in the case of clause (ii), or, if applicable,
at the most recent redetermination of interest on such series or on such Security, and calculated
in accordance with the constant interest method or such other accepted financial practice as is
specified in the terms of such Security.

          SECTION 1.2 Other Definitions. Each of the following terms is defined in the
section set forth opposite such term:

	 	 	 
	Term	 	Section
	 
	Authenticating Agent
	 	2.2
	cash transaction
	 	7.3
	Dollars
	 	4.2
	Event of Default
	 	6.1
	Judgment Currency
	 	10.15
	mandatory sinking fund payment
	 	3.5
	optional sinking fund payment
	 	3.5
	Paying Agent
	 	2.5
	record date
	 	2.4
	Registrar
	 	2.5
	Required Currency
	 	10.15
	Security Register
	 	2.5
	self-liquidating paper
	 	7.3
	sinking fund payment date
	 	3.5
	tranche
	 	2.14

          SECTION 1.3 Incorporation by Reference of Trust Indenture Act. Whenever this
Indenture refers to a provision of the Trust Indenture Act, the provision is incorporated by
reference in and made a part of this Indenture. The following terms used in this Indenture that are
defined by the Trust Indenture Act have the following meanings:

     “indenture securities” means the Securities;

     “indenture security holder” means a Holder or a Securityholder;

     “indenture to be qualified” means this Indenture;

     “indenture trustee” or “institutional trustee” means the Trustee;
and

     “obligor” on the indenture securities means the Company or any other obligor on the
Securities.

8

 

          All other terms used in this Indenture that are defined by the Trust Indenture Act, defined by
reference in the Trust Indenture Act to another statute or defined by a rule of the Commission and
not otherwise defined herein have the meanings assigned to them therein.

          SECTION 1.4 Rules of Construction. Unless the context otherwise requires:

     (i) an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

     (ii) words in the singular include the plural, and words in the plural include the
singular;

     (iii) “herein,” “hereof” and other words of similar import refer to this Indenture as
a whole and not to any particular Article, Section or other subdivision;

     (iv) all references to Sections or Articles refer to Sections or Articles of this
Indenture unless otherwise indicated; and

     (v) use of masculine, feminine or neuter pronouns should not be deemed a limitation,
and the use of any such pronouns should be construed to include, where appropriate, the
other pronouns.

ARTICLE 2

THE SECURITIES

          SECTION 2.1 Form and Dating. The Securities of each series shall be substantially
in such form or forms (not inconsistent with this Indenture) as shall be established by or pursuant
to one or more Board Resolutions or in one or more indentures supplemental hereto, in each case
with such appropriate insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture and may have imprinted or otherwise reproduced thereon such legend or
legends or endorsements, not inconsistent with the provisions of this Indenture, as may be required
to comply with any law, or with any rules of any securities exchange or usage, all as may be
determined by the officers executing such Securities as evidenced by their execution of the
Securities. Unless otherwise so established, Unregistered Securities shall have coupons attached.

          SECTION 2.2 Execution and Authentication. Two Officers shall execute the Securities
(other than coupons) for the Company by facsimile or manual signature in the name

9

 

and on behalf of the Company. The seal of the Company, if any, shall be reproduced on the
Securities. If an Officer whose signature is on a Security no longer holds that office at the time
the Security is authenticated, the Security shall nevertheless be valid.

          The Trustee, at the expense of the Company, may appoint an authenticating agent (the
“Authenticating Agent”) to authenticate Securities (other than coupons). The
Authenticating Agent may authenticate Securities whenever the Trustee
may do so. Each reference in
this Indenture to authentication by the Trustee includes authentication by such Authenticating
Agent.

          A Security (other than coupons) shall not be valid until the Trustee or Authenticating Agent
manually signs the certificate of authentication on the Security. The signature shall be
conclusive evidence that the Security has been authenticated under this Indenture.

          At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series having attached thereto appropriate coupons, if any,
executed by the Company to the Trustee for authentication together with the applicable documents
referred to below in this Section, and the Trustee shall thereupon authenticate and deliver such
Securities to or upon the written order of the Company. In authenticating any Securities of a
series, the Trustee shall be entitled to receive prior to the first authentication of any
Securities of such series, and (subject to Article 7) shall be fully protected in relying upon,
unless and until such documents have been superseded or revoked:

     (1) any Board Resolution and/or executed
supplemental indenture referred to in Sections 2.1
and 2.3 by or pursuant to which the forms and
terms of the Securities of that series were
established;

     (2) an Officers’ Certificate setting forth
the form or forms and terms of the Securities,
stating that the form or forms and terms of the
Securities of such series have been, or will be
when established in accordance with such
procedures as shall be referred to therein,
established in compliance with this Indenture; and

     (3) an Opinion of Counsel substantially to
the effect that the form or forms and terms of the
Securities of such series have been, or will be
when established in accordance with such
procedures as shall be referred to therein,

10

 

established in compliance with this Indenture and that the supplemental
indenture, to the extent applicable, and Securities have been duly authorized and, if
executed and authenticated in accordance with the provisions of the Indenture and
delivered to and duly paid for by the purchasers thereof on the date of such opinion,
would be entitled to the benefits of the Indenture and would be valid and binding
obligations of the Company, enforceable against the Company in accordance with their
respective terms, subject to bankruptcy, insolvency, reorganization, receivership,
moratorium and other similar laws affecting creditors’ rights generally, general
principles of equity, and such other matters as shall be specified therein.

          If the Company shall establish pursuant to Section 2.3 that the Securities of a series or a
portion thereof are to be issued in the form of one or more Registered Global Securities, then the
Company shall execute and the Trustee shall authenticate and deliver one or more Registered Global
Securities that (i) shall represent and shall be denominated in an amount equal to the aggregate
principal amount of all of the Securities of such series issued in such form and not yet cancelled,
(ii) shall be registered in the name of the Depositary for such Registered Global Security or
Securities or the nominee of such Depositary, (iii) shall be delivered by the Trustee to such
Depositary or its custodian or pursuant to such Depositary’s instructions and (iv) shall bear a
legend substantially to the following effect: “Unless and until it is exchanged in whole or in part
for Securities in definitive registered form, this Security may not be transferred except as a
whole by the Depositary to the nominee of the Depositary or by a nominee of the Depositary to the
Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary.”

          SECTION 2.3 Amount Unlimited; Issuable in Series. The aggregate principal amount of
Securities which may be authenticated and delivered under this Indenture is unlimited.

          The Securities may be issued in one or more series and each such series shall rank equally and
pari passu with all other unsecured and unsubordinated debt of the Company. There shall be
established in or pursuant to Board Resolution or one or more indentures supplemental hereto, prior
to the initial issuance of Securities of any series, subject to the last sentence of this Section
2.3,

11

 

     (1) the designation of the Securities of the
series, which shall distinguish the Securities of the
series from the Securities of all other series;

     (2) any limit upon the aggregate principal amount
of the Securities of the series that may be authenticated and delivered under this Indenture
and any
limitation on the ability of the Company to increase
such aggregate principal amount after the initial
issuance of the Securities of that series (except for
Securities authenticated and delivered upon registration of transfer of, or in exchange for,
or in lieu of,
or upon redemption of, other Securities of the series
pursuant hereto);

     (3) the date or dates on which the principal of
the Securities of the series is payable (which date or
dates may be fixed or extendible);

     (4) the rate or rates (which may be fixed or
variable) per annum at which the Securities of the
series shall bear interest, if any, the date or dates
from which such interest shall accrue, on which such
interest shall be payable and (in the case of Registered Securities) on which a record shall
be taken for
the determination of Holders to whom interest is payable and/or the method by which such rate
or rates or
date or dates shall be determined;

     (5) if other than as provided in Section 4.2, the
place or places where the principal of and any interest
on Securities of the series shall be payable, any
Registered Securities of the series may be surrendered
for exchange, notices, demands to or upon the Company
in respect of the Securities of the series and this
Indenture may be served and notice to Holders may be
published;

     (6) the right, if any, of the Company to redeem
Securities of the series, in whole or in part, at its
option and the period or periods within which, the
price or prices at which and any terms and conditions
upon which Securities of the series may be so redeemed,
pursuant to any sinking fund or otherwise;

     (7) the obligation, if any, of the Company to
redeem, purchase or repay Securities of the series
pursuant to any mandatory redemption, sinking fund or
analogous provisions or at the option of a Holder
thereof and the price or prices at which and the period
or periods within which and any of the terms and conditions upon which Securities of the
series shall be

12

 

redeemed, purchased or repaid, in whole or in part, pursuant to such obligation;

     (8) if other than denominations of $1,000 and any integral multiple thereof, the
denominations in which Securities of the series shall be issuable;

     (9) if other than the principal amount thereof,
the portion of the principal amount of Securities of
the series which shall be payable upon declaration of
acceleration of the maturity thereof;

     (10) if other than the coin or currency in which
the Securities of the series are denominated, the coin
or currency in which payment of the principal of or
interest on the Securities of the series shall be
payable or if the amount of payments of principal of
and/or interest on the Securities of the series may be
determined with reference to an index based on a coin
or currency other than that in which the Securities of
the series are denominated, the manner in which such
amounts shall be determined;

     (11) if other than the currency of the United States of America, the currency or currencies,
including composite currencies, in which payment of the Principal of and interest on the Securities
of the series shall be payable, and the manner in which any such currencies shall be valued against
other currencies in which any other Securities shall be payable;

     (12) whether the Securities of the series or any
portion thereof will be issuable as Registered
Securities (and if so, whether such Securities will be
issuable as Registered Global Securities) or
Unregistered Securities (with or without coupons), or
any combination of the foregoing, any restrictions
applicable to the offer, sale or delivery of
Unregistered Securities or the payment of interest
thereon and, if other than as provided herein, the
terms upon which Unregistered Securities of any series
may be exchanged for Registered Securities of such
series and vice versa;

     (13) whether and under what circumstances the
Company will pay additional amounts on the Securities
of the series held by a person who is not a U.S. person
in respect of any tax, assessment or governmental
charge withheld or deducted and, if so, whether the
Company will have the option to redeem such Securities
rather than pay such additional amounts;

13

 

     (14) if the Securities of the series are to be
issuable in definitive form (whether upon original
issue or upon exchange of a temporary Security of such
series) only upon receipt of certain certificates or
other documents or satisfaction of other conditions,
the form and terms of such certificates, documents or
conditions;

     (15) any trustees, depositaries, authenticating or
paying agents, transfer agents or the registrar or any
other agents with respect to the Securities of the
series;

     (16) provisions, if any, for the defeasance of the
Securities of the series (including provisions
permitting defeasance of less than all Securities of
the series), which provisions may be in addition to, in
substitution for, or in modification of (or any
combination of the foregoing) the provisions of Article
8;

     (17) if the Securities of the series are issuable
in whole or in part as one or more Registered Global
Securities, the identity of the Depositary for such
Registered Global Security or Securities;

     (18) any other events of default or covenants
with respect to the Securities of the series; and

     (19) any other terms of the Securities of the
series (which terms shall not be inconsistent with the
provisions of this Indenture).

          All Securities of any one series and coupons, if any, appertaining thereto shall be
substantially identical, except in the case of Registered Securities as to date and denomination,
except in the case of any Periodic Offering and except as may otherwise be provided by or pursuant
to the Board Resolution referred to above or as set forth in any such indenture supplemental
hereto. All Securities of any one series need not be issued at the same time and may be issued
from time to time, consistent with the terms of this Indenture, if so provided by or pursuant to
such Board Resolution or in any such indenture supplemental hereto and any forms and terms of
Securities to be issued from time to time may be completed and established from time to time prior
to the issuance thereof by procedures described in such Board Resolution or supplemental indenture.

          SECTION 2.4 Denomination and Date of Securities: Payments of Interest. The
Securities of each series shall be issuable as Registered Securities or Unregistered Securities in
denominations established as contemplated by

14

 

Section 2.3 or, if not so established with respect to Securities of any series, in
denominations of $1,000 and any integral multiple thereof. The Securities of each series shall be
numbered, lettered or otherwise distinguished in such manner or in accordance with such plan as the
Officers of the company executing the same may determine, as evidenced by their execution thereof.

          Each Security shall be dated the date of its authentication. The Securities of each series
shall bear interest, if any, from the date, and such interest and shall be payable on the dates,
established as contemplated by Section 2.3.

          The person in whose name any Registered Security of any series is registered at the close of
business on any record date applicable to a particular series with respect to any interest payment
date for such series shall be entitled to receive the interest, if any, payable on such interest
payment date notwithstanding any transfer or exchange of such Registered Security subsequent to the
record date and prior to such interest payment date, except if and to the extent the Company shall
default in the payment of the interest due on such interest payment date for such series, in which
case the provisions of Section 2.13 shall apply. The term “record date” as used with
respect to any interest payment date (except a date for payment of defaulted interest) for the
Securities of any series shall mean the date specified as such in the terms of the Registered
Securities of such series established as contemplated by Section 2.3, or, if no such date is so
established, the fifteenth day next preceding such interest payment date, whether or not such
record date is a Business Day.

          SECTION 2.5 Registrar and Paying Agent; Agents Generally. The Company
shall maintain an office or agency where Securities may be presented for registration, registration
of transfer or for exchange (the “Registrar”) and an office or agency where Securities may
be presented for payment (the “Paying Agent”), which shall be in the Borough of Manhattan,
The City of New York. The Company shall cause the Registrar to keep a register of the Registered
Securities and of their registration, transfer and exchange (the “Security Register”). The
Company may have one or more additional Paying Agents or transfer agents with respect to any
series.

          The Company shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture. The agreement shall implement the provisions of this Indenture and the Trust
Indenture Act that relate to such Agent. The Company shall give prompt written notice to the
Trustee of

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the name and address of any Agent and any change in the name or address of an Agent. If the
Company fails to maintain a Registrar or Paying Agent, the Trustee shall act as such. The Company
may remove any Agent upon written notice to such Agent and the Trustee; provided that no
such removal shall become effective until (i) the acceptance of an appointment by a successor Agent
to such Agent as evidenced by an appropriate agency agreement entered into by the Company and such
successor Agent and delivered to the Trustee or (ii) notification to the Trustee that the Trustee
shall serve as such Agent until the appointment of a successor Agent in accordance with clause (i)
of this proviso. The Company or any affiliate of the Company may act as Paying Agent or Registrar;
provided that neither the Company nor an affiliate of the Company shall act as Paying Agent
in connection with the defeasance of the Securities or the discharge of this Indenture under
Article 8.

          The Company initially appoints the Trustee as Registrar, Paying Agent and Authenticating
Agent. If, at any time, the Trustee is not the Registrar, the Registrar shall make available to
the Trustee ten days prior to each interest payment date and at such other times as the Trustee may
reasonably request the names and addresses of the Holders as they appear in the Security Register.

          SECTION 2.6 Paying Agent to Hold Money in Trust. Not later than 10:00 a.m. New York
City time on each due date of any Principal or interest on any Securities, the Company shall
deposit with the Paying Agent money in immediately available funds sufficient to pay such Principal
or interest. The Company shall require each Paying Agent other than the Trustee to agree in
writing that such Paying Agent shall hold in trust for the benefit of the Holders of such
Securities or the Trustee all money held by the Paying Agent for the payment of Principal of and
interest on such Securities and shall promptly notify the Trustee of any default by the Company in
making any such payment. The Company at any time may require a Paying Agent to pay all money held
by it to the Trustee and account for any funds disbursed, and the Trustee may at any time during
the continuance of any payment default, upon written request to a Paying Agent, require such Paying
Agent to pay all money held by it to the Trustee and to account for any funds disbursed. Upon
doing so, the Paying Agent shall have no further liability for the money so paid over to the
Trustee. If the Company or any affiliate of the Company acts as Paying Agent, it will, on or before
each due date of any Principal of or interest on any Securities, segregate and hold in a separate
trust fund for the benefit of the Holders thereof a sum of money sufficient to pay such Principal
or interest so becoming due until such sum of money shall be paid to such Holders or otherwise
disposed of as provided in

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this Indenture, and will promptly notify the Trustee in writing of its action or failure to act as
required by this Section.

          SECTION 2.7 Transfer and Exchange. Unregistered Securities (except for any temporary global Unregistered Securities) and coupons
(except for coupons attached to any temporary global Unregistered Securities) shall be
transferable by delivery.

          At the option of the Holder thereof, Registered Securities of any series (other than a
Registered Global Security, except as set forth below) may be exchanged for a Registered Security
or Registered Securities of such series and tenor having authorized denominations and an equal
aggregate principal amount, upon surrender of such Registered Securities to be exchanged at the
agency of the Company that shall be maintained for such purpose in
accordance with Section 2.5 and
upon payment, if the Company shall so require, of the charges hereinafter provided. If the
Securities of any series are issued in both registered and unregistered form, except as otherwise
established pursuant to Section 2.3, at the option of the Holder thereof, Unregistered Securities
of any series may be exchanged for Registered Securities of such series and tenor having authorized
denominations and an equal aggregate principal amount, upon surrender of such Unregistered
Securities to be exchanged at the agency of the Company that shall be maintained for such purpose
in accordance with Section 4.2, with, in the case of Unregistered Securities that have coupons
attached, all unmatured coupons and all matured coupons in default thereto appertaining, and upon
payment, if the Company shall so require, of the charges hereinafter provided. At the option of
the Holder thereof, if Unregistered Securities of any series, maturity date, interest rate and
original issue date are issued in more than one authorized denomination, except as otherwise
established pursuant to Section 2.3, such Unregistered Securities may be exchanged for Unregistered
Securities of such series and tenor having authorized denominations and an equal aggregate
principal amount, upon surrender of such Unregistered Securities to be exchanged at the agency of
the Company that shall be maintained for such purpose in accordance with Section 4.2, with, in the
case of Unregistered Securities that have coupons attached, all unmatured coupons and all matured
coupons in default thereto appertaining, and upon payment, if the Company shall so require, of the
charges hereinafter provided. Registered Securities of any series may not be exchanged for
Unregistered Securities of such series. Whenever any Securities are so surrendered for exchange,
the Company shall execute, and the Trustee shall authenticate and

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deliver, the Securities which the Holder making the exchange is entitled to receive.

          All Registered Securities presented for
registration of transfer, exchange, redemption or payment shall be duly endorsed by, or be
accompanied by a written instrument or instruments of transfer in form satisfactory to the Company
and the Trustee duly executed by, the holder or his attorney duly authorized in writing.

          The Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any exchange or registration of transfer of
Securities. No service charge shall be made for any such transaction.

          Notwithstanding any other provision of this
Section 2.7, unless and until it is exchanged in whole or in part for Securities in definitive
registered form, a Registered Global Security representing all or a portion of the Securities of a
series may not be transferred except as a whole by the Depositary for such series to a nominee of
such Depositary or by a nominee of such Depositary to such Depositary or another nominee of such
Depositary or by such Depositary or any such nominee to a successor Depositary for such series or a
nominee of such successor Depositary.

          If at any time the Depositary for any Registered Global Securities of any series notifies the
Company that it is unwilling or unable to continue as Depositary for such Registered Global
Securities or if at any time the Depositary for such Registered Global Securities shall no longer
be eligible under applicable law, the Company shall appoint a successor Depositary eligible under
applicable law with respect to such Registered Global Securities. If a successor Depositary
eligible under applicable law for such Registered Global Securities is not appointed by the Company
within 90 days after the Company receives such notice or becomes aware of such ineligibility, the
Company will execute, and the Trustee, upon receipt of the Company’s order for the authentication
and delivery of definitive Registered Securities of such series and tenor, will authenticate and
deliver Registered Securities of such series and tenor, in any authorized denominations, in an
aggregate principal amount equal to the principal amount of such Registered Global Securities, in
exchange for such Registered Global Securities.

          The Company may at any time and in its sole discretion determine that any Registered Global
Securities of any series shall no longer be maintained in global form. In such event the Company
will execute, and the Trustee, upon receipt of the Company’s order for the authentication

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and delivery of definitive Registered Securities of such series and tenor, will authenticate and
deliver, Registered Securities of such series and tenor in any authorized denominations, in an
aggregate principal amount equal to the principal amount of such Registered Global Securities, in
exchange for such Registered Global Securities.

          Any time the Registered Securities of any series are not in the form of Registered Global
Securities pursuant to the preceding two paragraphs, the Company agrees to supply the Trustee with
a reasonable supply of certificated Registered Securities without the legend required by Section
2.2 and the Trustee agrees to hold such Registered
Securities in safekeeping until authenticated and delivered
pursuant to the terms of this Indenture.

          If established by the Company pursuant to Section
2.3 with respect to any Registered Global Security, the
Depositary for such Registered Global Security may surrender
such Registered Global Security in exchange in whole or in
part for Registered Securities of the same series and tenor
in definitive registered form on such terms as are
acceptable to the Company and such Depositary. Thereupon,
the Company shall execute, and the Trustee shall
authenticate and deliver, without service charge,

     (i) to the Person specified by such Depositary new Registered Securities of the
same series and tenor, of any authorized denominations as requested by such Person,
in an aggregate principal amount equal to and in exchange for such Person’s
beneficial interest in the Registered Global Security; and

     (ii) to such Depositary a new Registered Global Security in a denomination
equal to the difference, if any, between the principal amount of the surrendered
Registered Global Security and the aggregate principal amount of Registered
Securities authenticated and delivered pursuant to clause (i) above.

          Registered Securities issued in exchange for a Registered Global Security pursuant to this
Section 2.7 shall be registered in such names and in such authorized denominations as the
Depositary for such Registered Global Security, pursuant to instructions from its direct or
indirect participants or otherwise, shall instruct the Trustee or an agent of the Company or the
Trustee. The Trustee or such agent shall deliver such Securities to or as directed by the Persons
in whose names such Securities are so registered.

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          All Securities issued upon any transfer or exchange of Securities shall be valid obligations
of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture,
as the Securities surrendered upon such transfer or exchange.

          Notwithstanding anything herein or in the forms or terms of any securities to the contrary,
none of the Company, the Trustee or any agent of the Company or the Trustee shall be required to
exchange any Unregistered Security for a Registered Security if such exchange would result in
adverse Federal income tax consequences to the company (such as, for example, the inability of the
Company to deduct from its income, as computed for Federal income tax purposes, the interest
payable on the Unregistered Securities) under then applicable United States Federal income tax
laws. The Trustee and any such agent shall be entitled to rely on an officers’ Certificate or an
Opinion of Counsel in determining such result.

          The Registrar shall not be required (i) to issue, authenticate, register the transfer of or
exchange Securities of any series for a period of 15 days before a selection of such Securities to
be redeemed or (ii) to register the transfer of or exchange any Security selected for redemption in
whole or in part.

          SECTION 2.8 Replacement Securities. If a defaced or mutilated Security of any
series is surrendered to the Trustee or if a Holder claims that its Security of any series has been
lost, destroyed or wrongfully taken, the Company shall issue and the Trustee shall authenticate a
replacement Security of such series and tenor and principal amount bearing a number not
contemporaneously outstanding. If required by the Trustee or the Company, an indemnity bond must be
furnished that is sufficient in the judgment of both the Trustee and the Company to protect the
Company, the Trustee and any Agent from any loss that any of them may suffer if a Security is
replaced. The Company may charge such Holder for its expenses and the expenses of the Trustee
(including without limitation attorneys’ fees and expenses) in replacing a Security. In case any
such mutilated, defaced, lost, destroyed or wrongfully taken Security has become or is about to
become due and payable, the Company in its discretion may pay such Security instead of issuing a
new Security in replacement thereof.

          Every replacement Security is an additional obligation of the Company and shall be
entitled to the benefits of this Indenture.

          To the extent permitted by law, the foregoing provisions of this Section are exclusive with
respect to the

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replacement or payment of mutilated, destroyed, lost or wrongfully taken Securities.

          SECTION 2.9 Outstanding Securities. Securities outstanding at any time are all
Securities that have been authenticated by the Trustee except for those cancelled by it, those
delivered to it for cancellation and those described in this Section as not outstanding.

          If a Security is replaced pursuant to Section 2.8, it ceases to be outstanding unless and
until the Trustee and the Company receive proof satisfactory to them that the replaced Security is
held by a holder in due course.

          If the Paying Agent (other than the Company or an affiliate of the Company) holds on the
maturity date or any redemption date or date for repurchase of the Securities money sufficient to
pay Securities payable or to be redeemed or repurchased on that date, then on and after that date
such Securities cease to be outstanding and interest on them shall cease to accrue.

          A Security does not cease to be outstanding because the Company or one of its affiliates holds
such Security, provided, however, that, in determining whether the Holders of the
requisite principal amount of the outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Securities owned by the Company or
any affiliate of the Company shall be disregarded and deemed not to be outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Securities as to which a Responsible
Officer of the Trustee has received written notice to be so owned shall be so disregarded. Any
Securities so owned which are pledged by the Company, or by any affiliate of the company, as
security for loans or other obligations, otherwise than to another such affiliate of the Company,
shall be deemed to be outstanding, if the pledgee is entitled pursuant to the terms of its pledge
agreement and is free to exercise in its or his discretion the right to vote such securities,
uncontrolled by the Company or by any such affiliate.

          SECTION 2.10 Temporary Securities. Until definitive Securities of any series are
ready for delivery, the company may prepare and the Trustee shall authenticate temporary Securities
of such series. Temporary Securities of any series shall be substantially in the form of definitive
Securities of such series but may have insertions, substitutions, omissions and other variations
determined to be appropriate by the Officers executing the temporary Securities, as evidenced by
their execution of

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such temporary Securities. If temporary Securities of any series are issued, the company will
cause definitive Securities of such series to be prepared without unreasonable delay. After the
preparation of definitive Securities of any series, the temporary Securities of such series shall
be exchangeable for definitive Securities of such series and tenor upon surrender of such temporary
Securities at the office or agency of the Company designated for such purpose pursuant to Section
4.2, without charge to the Holder. Upon surrender for cancellation of any one or more temporary
Securities of any series the Company shall execute and the Trustee shall authenticate and deliver
in exchange therefor a like principal amount of definitive Securities of such series and tenor and
authorized denominations. Until so exchanged, the temporary Securities of any series shall be
entitled to the same benefits under this Indenture as definitive Securities of such series.

          SECTION 2.11 Cancellation. The Company at any time may deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder which the Company may
have acquired in any manner whatsoever, and may deliver to the Trustee for cancellation any
Securities previously authenticated hereunder which the Company has not issued and sold. The
Registrar, any transfer agent and the Paying Agent shall forward to the Trustee any Securities
surrendered to them for transfer, exchange or payment. The Trustee shall cancel and destroy all
Securities surrendered for transfer, exchange, payment or cancellation and shall deliver a
certificate of destruction to the Company. The Company may not issue new Securities to replace
Securities it has paid in full or delivered to the Trustee for cancellation.

          SECTION 2.12 CUSIP Numbers. The Company in issuing the Securities may use “CUSIP”
and “CINS” numbers (if then generally in use), and the Trustee shall use CUSIP numbers or CINS
numbers, as the case may be, in notices of redemption or exchange as a convenience to Holders and
no representation shall be made as to the correctness of such numbers either as printed on the
Securities or as contained in any notice of redemption or exchange.

          SECTION 2.13 Defaulted Interest. If the Company defaults in a payment of interest
on the Securities, it shall pay, or shall deposit with the Paying Agent money in immediately
available funds sufficient to pay, the defaulted interest plus (to the extent lawful) any interest
payable on the defaulted interest (as may be specified in the terms thereof, established pursuant
to Section 2.3) to the Persons who are Holders on a subsequent special record date, which shall
mean the 15th day next

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preceding the date fixed by the Company for the payment of defaulted interest, whether or not such
day is a Business Day, At least 15 days before such special record date, the Company shall mail to
each Holder and to the Trustee a notice that states the special record date, the payment date and
the amount of defaulted interest to be paid.

          SECTION 2.14 Series May Include Tranches. A series of Securities may include one or
more tranches (each a “tranche”) of Securities, including Securities issued in a Periodic
offering. The Securities of different tranches may have one or more different terms, including
authentication dates and public offering prices, but all the Securities within each such tranche
shall have identical terms, including authentication date and public offering price.
Notwithstanding any other provision of this Indenture, with respect to Sections 2.2 (other than the
fourth paragraph thereof) through 2.4, 2.7, 2.8, 2.10, 3.1 through 3.5, 4.2, 6.l through 6.14, 8.1
through 8.5 and 9.2, if any series of Securities includes more than one tranche, all provisions of
such sections applicable to any series of Securities shall be deemed equally applicable to each
tranche of any series of Securities in the same manner as though originally designated a series
unless otherwise provided with respect to such series or tranche pursuant to Section 2.3. In
particular, and without limiting the scope of the next preceding sentence, any of the provisions of
such sections which provide for or permit action to be taken with respect to a series of Securities
shall also be deemed to provide for and permit such action to be taken instead only with respect to
Securities of one or more tranches within that series (and such provisions shall be deemed
satisfied thereby), even if no comparable action is taken with respect to Securities in the
remaining tranches of that series.

ARTICLE 3

REDEMPTION

          SECTION 3.1 Applicability of Article. The provisions of this Article shall be
applicable to the Securities of any series which are redeemable before their maturity or to any
sinking fund for the retirement of Securities of a series except as otherwise specified as
contemplated by Section 2.3 for Securities of such series.

          SECTION 3.2 Notice of Redemption; Partial Redemptions. Notice of redemption to the
Holders of Registered Securities of any series to be redeemed as a whole or in part at the option
of the company shall be given by mailing notice of such redemption by first class mail, postage
prepaid, at least 30 days and not more than 60 days

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prior to the date fixed for redemption to such Holders of Registered Securities of such series
at their last addresses as they shall appear upon the registry books. Notice of redemption to the
Holders of Unregistered Securities of any series to be redeemed as a whole or in part who have
filed their names and addresses with the Trustee pursuant to Section 313(c)(2) of the Trust
Indenture Act, shall be given by mailing notice of such redemption, by first class mail, postage
prepaid, at least 30 days and not more than 60 days prior
to the date fixed for redemption, to such
Holders at such addresses as were so furnished to the Trustee (and, in the case of any such notice
given by the Company, the Trustee shall make such information available to the Company for such
purpose). Notice of redemption to all other Holders of Unregistered Securities of any series to be
redeemed as a whole or in part shall be published in an Authorized Newspaper in The City of New
York or with respect to any Security the interest on which is based on the offered quotations in
the interbank Eurodollar market for dollar deposits in an Authorized Newspaper in London, in each
case, once in each of three successive calendar weeks, the first publication to be not less than 30
days nor more than 60 days prior to the date fixed for redemption. Any notice which is mailed or
published in the manner herein provided shall be conclusively presumed to have been duly given,
whether or not the Holder receives the notice. Failure to give notice by mail, or any defect in the
notice to the Holder of any Security of a series designated for redemption as a whole or in part
shall not affect the validity of the proceedings for the redemption of any other Security of such
series.

          The notice of redemption to each such Holder shall specify the principal amount of each
Security of such series held by such Holder to be redeemed, the CUSIP numbers of the Securities to
be redeemed, the date fixed for redemption, the redemption price, the place or places of payment,
that payment will be made upon presentation and surrender of such Securities and, in the case of
Securities with coupons attached thereto, of all coupons appertaining thereto maturing after the
date fixed for redemption, that such redemption is pursuant to the mandatory or optional sinking
fund, or both, if such be the case, that interest accrued to the date fixed for redemption will be
paid as specified in such notice and that on and after said date interest thereon or on the
portions thereof to be redeemed will cease to accrue. In case any Security of a series is to be
redeemed in part only, the notice of redemption shall state the portion of the principal amount
thereof to be redeemed and shall state that on and after the date fixed for redemption, upon
surrender of such Security, a new Security or Securities of such series and tenor in principal
amount equal to the unredeemed portion thereof will be issued.

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          The notice of redemption of Securities of any series to be redeemed at the option of the
Company shall be given by the Company or, at the Company’s request, by the Trustee in the name and
at the expense of the Company.

          On or before 10:00 a.m. New York City time on the redemption date specified in the notice of
redemption given as provided in this Section, the Company will deposit with the Trustee or with one
or more Paying Agents (or, if the Company is acting as its own Paying Agent, set aside, segregate
and hold in trust as provided in Section 2.6) an amount of money sufficient to redeem on the
redemption date all the Securities of such series so called for redemption at the appropriate
redemption price, together with accrued interest to the date fixed for redemption. If all of the
outstanding Securities of a series are to be redeemed, the Company will deliver to the Trustee at
least 10 days prior to the last date on which notice of redemption may be given to Holders pursuant
to the first paragraph of this Section 3.2 an Officers’ Certificate stating that all such
Securities are to be redeemed. If less than all the outstanding Securities of a series are to be
redeemed, the Company will deliver to the Trustee at least 15 days prior to the last date on which
notice of redemption may be given to Holders pursuant to the first paragraph of this Section 3.2
(or such shorter period as shall be acceptable to the Trustee) an Officers’ Certificate stating the
aggregate principal amount of such Securities to be redeemed. In case of a redemption at the
election of the Company prior to the expiration of any restriction on such redemption, the Company
shall deliver to the Trustee, prior to the giving of any notice of redemption to Holders pursuant
to this Section, an Officers’ Certificate stating that such redemption is not prohibited by such
restriction.

          If less than all the Securities of a series are to be redeemed, the Trustee shall select, pro
rata, by lot or in such manner as it shall deem appropriate and fair, Securities of such series to
be redeemed in whole or in part. Securities may be redeemed in part in multiples equal to the
minimum authorized denomination for Securities of such series or any multiple thereof. The Trustee
shall promptly notify the Company in writing of the Securities of such series selected for
redemption and, in the case of any Securities of such series selected for partial redemption, the
principal amount thereof to be redeemed. For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to the redemption of Securities shall relate, in the
case of any Security redeemed or to be redeemed only in part, to the portion of the principal
amount of such Security which has been or is to be redeemed.

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          SECTION
3.3 Payment of Securities Called for Redemption. If notice of
redemption has been given as above provided, the Securities or portions of Securities specified in
such notice shall become due and payable on the date and at the place stated in such notice at the
applicable redemption price, together with interest accrued to the date fixed for redemption, and
on and after such date (unless the Company shall default in the payment of such Securities at the
redemption price, together with interest accrued to such date) interest on the Securities or
portions of Securities so called for redemption shall cease to accrue, and the unmatured coupons,
if any, appertaining thereto shall be void and, except as provided in
Sections 7.11 and 8.4, such
Securities shall cease from and after the date fixed for redemption to be entitled to any benefit
under this Indenture, and the Holders thereof shall have no right in respect of such Securities
except the right to receive the redemption price thereof and unpaid interest to the date fixed for
redemption. On presentation and surrender of such Securities at a place of payment specified in
said notice, together with all coupons, if any, appertaining thereto maturing after the date fixed
for redemption, said Securities or the specified portions thereof shall be paid and redeemed by the
Company at the applicable redemption price, together with interest accrued thereon to the date
fixed for redemption; provided that payment of interest becoming due on or prior to the
date fixed for redemption shall be payable in the case of Securities with coupons attached thereto,
to the Holders of the coupons for such interest upon surrender thereof, and in the case of
Registered Securities, to the Holders of such Registered Securities registered as such on the
relevant record date subject to the terms and provisions of Sections 2.4 and 2.13 hereof.

          If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal shall, until paid or duly provided for, bear interest from the date fixed
for redemption at the rate of interest or Yield to Maturity (in the case of an Original Issue
Discount Security) borne by such Security.

          If any Security with coupons attached thereto is surrendered for redemption and is not
accompanied by all appurtenant coupons maturing after the date fixed for redemption, the surrender
of such missing coupon or coupons may be waived by the Company and the Trustee, if there be
furnished to each of them such security or indemnity as they may require to save each of them
harmless.

          Upon presentation of any Security of any series redeemed in part only, the Company shall
execute and the Trustee shall authenticate and deliver to or on the order of

26

 

the Holder thereof, at the expense of the Company, a new Security or Securities of such series
and tenor (with any unmatured coupons attached), of authorized denominations, in principal amount
equal to the unredeemed portion of the Security so presented.

          SECTION 3.4 Exclusion of Certain Securities from Eligibility for Selection for
Redemption. Securities shall be excluded from eligibility for selection for redemption if they
are identified by registration and certificate number in a written statement signed by an
authorized officer of the Company and delivered to the Trustee at least 40 days prior to the last
date on which notice of redemption may be given as being owned of record and beneficially by, and
not pledged or hypothecated by either (a) the Company or (b) an entity specifically identified in
such written statement as directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company.

          SECTION 3.5 Mandatory and Optional Sinking Funds. The minimum amount of any sinking
fund payment provided for by the terms of Securities of any series is herein referred to as a
“mandatory sinking fund payment”, and any payment in excess of such minimum amount provided
for by the terms of the Securities of any series is herein referred to as an “optional sinking
fund payment”. The date on which a sinking fund payment is to be made is herein referred to as
the “sinking fund payment date”.

          In lieu of making all or any part of any mandatory sinking fund payment with respect to any
series of Securities in cash, the Company may at its option (a) deliver to the Trustee Securities
of such series theretofore purchased or otherwise acquired (except through a mandatory sinking fund
payment) by the company or receive credit for Securities of such series (not previously so
credited) theretofore purchased or otherwise acquired (except as aforesaid) by the Company and
delivered to the Trustee for cancellation pursuant to Section 2.11, (b) receive credit for optional
sinking fund payments (not previously so credited) made pursuant to this Section, or (c) receive
credit for Securities of such series (not previously so credited) redeemed by the Company through
any optional sinking fund payment. Securities so delivered or credited shall be received or
credited by the Trustee at the sinking fund redemption price specified in such Securities.

          On or before the sixtieth day next preceding each sinking fund payment date for any series, or
such shorter period as shall be acceptable to the Trustee, the Company will deliver to the Trustee
an Officers’ Certificate (a) specifying the portion of the mandatory sinking fund payment

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to be satisfied by payment of cash and the portion to be satisfied by credit of specified
Securities of such series and the basis for such credit, (b) stating that none of the specified
Securities of such series has theretofore been so credited, (c) stating that no defaults in the
payment of interest or Events of Default with respect to such series have occurred (which have not
been waived or cured) and are continuing and (d) stating whether or not the Company intends to
exercise its right to make an optional sinking fund payment with respect to such series and, if so,
specifying the amount of such optional sinking fund payment which the Company intends to pay on or
before the next succeeding sinking fund payment date. Any Securities of such series to be credited
and required to be delivered to the Trustee in order for the Company to be entitled to credit
therefor as aforesaid which have not theretofore been delivered to the Trustee shall be delivered
for cancellation pursuant to Section 2.11 to the Trustee with such Officers’ Certificate (or
reasonably promptly thereafter if acceptable to the Trustee). Such Officers’ Certificate shall be
irrevocable and upon its receipt by the Trustee the Company shall become unconditionally obligated
to make all the cash payments or delivery of securities therein referred to, if any, on or before
the next succeeding sinking fund payment date. Failure of the Company, on or before any such
sixtieth day, to deliver such Officer’s Certificate and Securities specified in this paragraph, if
any, shall not constitute a default but shall constitute, on and as of such date, the irrevocable
election of the Company (i) that the mandatory sinking fund payment for such series due on the next
succeeding sinking fund payment date shall be paid entirely in cash without the option to deliver
or credit Securities of such series in respect thereof and (ii) that the Company will make no
optional sinking fund payment with respect to such series as provided in this Section.

          If the sinking fund payment or payments (mandatory or optional or both) to be made in cash on
the next succeeding sinking fund payment date plus any unused balance of any preceding sinking fund
payments made in cash shall exceed $50,000 (or a lesser sum if the Company shall so request with
respect to the Securities of any series), such cash shall be applied on the next succeeding sinking
fund payment date to the redemption of Securities of such series at the sinking fund redemption
price thereof together with accrued interest thereon to the date fixed for redemption. If such
amount shall be $50,000 (or such lesser sum) or less and the Company makes no such request then it
shall be carried over until a sum in excess of $50,000 (or such lesser sum) is available. The
Trustee shall select, in the manner provided in Section 3.2, for redemption on such sinking fund
payment date a sufficient principal amount of Securities of such series to absorb said cash, as
nearly as

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may be, and shall (if requested in writing by the Company)
inform the Company of the serial numbers
of the Securities of such series (or portions thereof) so selected. Securities shall be excluded
from eligibility for redemption under this Section if they are identified by registration and
certificate number in an Officers’ Certificate delivered to the Trustee at least 60 days prior to
the sinking fund payment date as being owned of record and beneficially by, and not pledged or
hypothecated by either (a) the Company or (b) an entity specifically identified in such Officers’
Certificate as directly or indirectly controlling or controlled by or under direct or indirect
common control with the Company. The Trustee, in the name and at the expense of the Company (or
the Company, if it shall so request the Trustee in writing) shall cause notice of redemption of the
Securities of such series to be given in substantially the manner provided in Section 3.2 (and with
the effect provided in Section 3.3) for the redemption of Securities of such series in part at the
option of the Company. The amount of any sinking fund payments not so applied or allocated to the
redemption of Securities of such series shall be added to the next cash sinking fund payment for
such series and, together with such payment, shall be applied in accordance with the provisions of
this Section. Any and all sinking fund moneys held on the stated maturity date of the Securities of
any particular series (or earlier, if such maturity is accelerated), which are not held for the
payment or redemption of particular Securities of such series shall be applied, together with other
moneys, if necessary, sufficient for the purpose, to the payment of the Principal of, and interest
on, the Securities of such series at maturity.

          On or before 10:00 a.m. New York City time on each sinking fund payment date, the Company
shall pay to the Trustee in cash or shall otherwise provide for the payment of all interest accrued
to the date fixed for redemption on Securities to be redeemed on the next following sinking fund
payment date.

          The Trustee shall not redeem or cause to be
redeemed any Securities of a series with sinking fund moneys or mail any notice of redemption of
Securities of such series by operation of the sinking fund during the continuance of a Default in
payment of interest on such Securities or of any Event of Default except that, where the mailing
of notice of redemption of any Securities shall theretofore have been made, the Trustee shall
redeem or cause to be redeemed such Securities, provided that it shall have received from the
company a sum sufficient for such redemption. Except as aforesaid, any moneys in the sinking fund
for such series at the time when any such Default or Event of Default shall occur, and any moneys
thereafter paid

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into the sinking fund, shall, during the continuance of such default or Event of Default, be deemed
to have been collected under Article 6 and held for the payment of all such Securities. In case
such Event of Default shall have been waived as provided in Section 6.4 or the Default cured on or
before the sixtieth day preceding the sinking fund payment date in any year, such moneys shall
thereafter be applied on the next succeeding sinking fund payment date in accordance with this
Section to the redemption of such Securities.

ARTICLE 4

COVENANTS

          SECTION 4.1 Payment of Securities. The Company shall pay the Principal of and
interest on the Securities on the dates and in the manner provided in the Securities and this
Indenture. The interest on Securities with coupons attached (together with any additional amounts
payable pursuant to the terms of such Securities) shall be payable only upon presentation and
surrender of the several coupons for such interest installments as are evidenced thereby as they
severally mature. The interest on any temporary Unregistered Securities (together with any
additional amounts payable pursuant to the terms of such Securities) shall be paid, as to the
installments of interest evidenced by coupons attached thereto, if any, only upon presentation and
surrender thereof, and, as to the other installments of interest, if any, only upon presentation of
such Unregistered Securities for notation thereon of the payment of such interest. The interest on
Registered Securities (together with any additional amounts payable pursuant to the terms of such
Securities) shall be payable only to the Holders thereof and at the option of the Company may be
paid by mailing checks for such interest payable to or upon the written order of such Holders at
their last addresses as they appear on the Security Register of the Company.

          Notwithstanding any provisions of this Indenture and the Securities of any series to the
contrary, if the Company and a Holder of any Registered Security so agree, payments of interest on,
and any portion of the Principal of, such Holder’s Registered Security (other than interest payable
at maturity or on any redemption or repayment date or the final payment of Principal on such
Security) shall be made by the Paying Agent, upon receipt from the Company of immediately available
funds by 11:00 A.M., New York City time (or such other time as may be agreed to between the Company
and the Paying Agent), directly to the Holder of such Security (by Federal funds wire transfer or
otherwise) if the Holder has delivered written instructions to the

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Trustee 15 days prior to such payment date requesting that such payment will be so made and
designating the bank account to which such payments shall be so made and in the case of payments of
Principal surrenders the same to the Trustee in exchange for a Security or Securities aggregating
the same principal amount as the unredeemed principal amount of the Securities surrendered. The
Trustee shall be entitled to rely on the last instruction delivered by the Holder pursuant to this
Section 4.1 unless a new instruction is delivered 15 days prior to a payment date. The Company
will indemnify and hold each of the Trustee and any Paying Agent harmless against any loss,
liability or expense (including attorneys’ fees) resulting from any act or omission to act on the
part of the company or any such Holder in connection with any such agreement or from making any
payment in accordance with any such agreement.

          The Company shall pay interest on overdue
Principal, and interest on overdue installments of interest, to the extent lawful, at the rate per
annum specified in the Securities.

          SECTION 4.2 Maintenance of Office or Agency. The Company will maintain in the
Borough of Manhattan, The City of New York, an office or agency where Securities may be surrendered
for registration of transfer or exchange or for presentation for payment and where notices and
demands to or upon the Company in respect of the Securities and this Indenture may be served. The
Company hereby initially designates the Corporate Trust Office of the Trustee, located in the
Borough of Manhattan, The City of New York, as such office or agency of the Company. The Company
will give prompt written notice to the Trustee of the location, and any change in the location, of
such office or agency. If at any time the Company shall fail to maintain any such required office
or agency or shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the address of the Trustee set forth in
Section 10.2.

          The Company will maintain one or more agencies in a city or cities located outside the United
States (including any city in which such an agency is required to be maintained under the rules of
any stock exchange on which the Securities of any series are listed) where the Unregistered
Securities, if any, of each series and coupons, if any, appertaining thereto may be presented for
payment. No payment on any Unregistered Security or coupon will be made upon presentation of such
Unregistered Security or coupon at an agency of the Company within the United States nor will any
payment be made by transfer to an account in, or by mail to an address in, the United states
unless, pursuant to applicable United States laws and regulations

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then in effect, such payment can be made without adverse tax consequences to the Company.
Notwithstanding the foregoing, if full payment in United States Dollars (“Dollars”) at each
agency maintained by the Company outside the United States for payment on such Unregistered
Securities or coupons appertaining thereto is illegal or effectively precluded by exchange controls
or other similar restrictions, payments in Dollars of Unregistered Securities of any series and
coupons appertaining thereto which are payable in Dollars may be made at an agency of the Company
maintained in the Borough of Manhattan, The City of New York.

          The Company may also from time to time designate one or more other offices or agencies where
the Securities of any series may be presented or surrendered for any or all such purposes and may
from time to time rescind such designations; provided that no such designation or
rescission shall in any manner relieve the Company of its obligation to maintain an office or
agency in the Borough of Manhattan, The City of New York for such purposes. The Company will give
prompt written notice to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency.

          SECTION 4.3 Negative Pledge. (a) The Company will not, and will not permit any
Restricted Subsidiary to, create, incur or suffer to exist any mortgage or pledge, as security for
any indebtedness, on or of any shares of stock, indebtedness or other obligations of a Restricted
Subsidiary or any Principal Property of the Company or a Restricted Subsidiary, whether such shares
of stock, indebtedness or other obligations of a Restricted Subsidiary or Principal Property are
owned at the date of this Indenture or hereafter acquired, unless the Company secures or causes
such Restricted Subsidiary to secure the outstanding Securities equally and ratably with all
indebtedness secured by such mortgage or pledge, so long as such indebtedness shall be so secured;
provided, however, that this covenant shall not apply in the case of: (i) the creation of
any mortgage, pledge or other lien on any shares of stock, indebtedness or other obligations of a
Subsidiary or any Principal Property hereafter acquired (including acquisitions by way of merger or
consolidation) by the Company or a Restricted Subsidiary contemporaneously with such acquisition,
or within 120 days thereafter, to secure or provide for the payment or financing of any part of the
purchase price thereof, or the assumption of any mortgage, pledge or other lien upon any shares of
stock, indebtedness or other obligations of a Subsidiary or any Principal Property hereafter
acquired existing at the time of such acquisition, or the acquisition of any shares of stock,
indebtedness or other obligations of a Subsidiary or any Principal Property subject to any
mortgage, pledge or other

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lien without the assumption thereof, provided that every such mortgage, pledge or lien
referred to in this clause (i) shall attach only to the shares of stock, indebtedness or other
obligations of a Subsidiary or any Principal Property so acquired and fixed improvements thereon;
(ii) any mortgage, pledge or other lien on any shares of stock, indebtedness or other obligations
of a Subsidiary or any Principal Property existing at the date of this Indenture; (iii) any
mortgage, pledge or other lien on any shares of stock, indebtedness or other obligations of a
Subsidiary or any Principal Property in favor of the Company or any Restricted Subsidiary; (iv) any
mortgage, pledge or other lien on any Principal Property being constructed or improved securing
loans to finance such construction or improvements; (v) any mortgage, pledge or other lien on
shares of stock, indebtedness or other obligations of a Subsidiary or any Principal Property
incurred in connection with the issuance of tax-exempt governmental obligations; and (vi) any
renewal of or substitution for any mortgage, pledge or other lien permitted by any of the preceding
clauses (i) through (v), provided, in the case of a mortgage, pledge or other lien
permitted under clause (i), (ii) or (iv), the indebtedness secured is not increased nor the lien
extended to any additional assets.

          (b) Notwithstanding the provisions of paragraph (a) of this Section, the Company or any
Restricted Subsidiary may create or assume liens in addition to those permitted by paragraph (a) of
this Section, and renew, extend or replace such liens, provided that at the time of such
creation, assumption, renewal, extension or replacement, and after giving effect thereto, Exempted
Debt does not exceed 10% of Consolidated Net Worth.

          SECTION 4.4 Certain Sale and Lease-back Transactions. (a) The Company will not,
and will not permit any Restricted Subsidiary to, sell or transfer, directly or indirectly, except
to the Company or a Restricted subsidiary, any Principal Property as an entirety, or any
substantial portion thereof, with the intention of taking back a lease of such property, except a
lease for a period of three years or less at the end of which it is intended that the use of such
property by the lessee will be discontinued; provided that, notwithstanding the foregoing,
the Company or any Restricted Subsidiary may sell any such Principal Property and lease it back for
a longer period (i) if the Company or such Restricted Subsidiary would be entitled, pursuant to the
provisions of Section 4.3(a), to create a mortgage on the property to be leased securing Funded
Debt in an amount equal to the Attributable Debt with respect to such sale and lease-back
transaction without equally and ratably securing the outstanding Securities or (ii) if (A) the
Company promptly

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informs the Trustee of such transaction, (B) the net proceeds of such transaction are at least
equal to the fair value (as determined by Board Resolution of the Company) of such property and (C)
the Company causes an amount equal to the net proceeds of the sale to be applied to the retirement,
within 120 days after receipt of such proceeds, of Funded Debt incurred or assumed by the Company
or a Restricted Subsidiary (including the Securities); provided further that, in lieu of
applying all of or any part of such net proceeds to such retirement, the Company may, within 75
days after such sale, deliver or cause to be delivered to the applicable trustee for cancellation
either debentures or notes evidencing Funded Debt of the Company (which may include the Securities)
or of a Restricted Subsidiary previously authenticated and delivered by the applicable trustee, and
not theretofore tendered for sinking fund purposes or called for a sinking fund or otherwise
applied as a credit against an obligation to redeem or retire such notes or debentures, and an
Officers’ Certificate (which shall be delivered to the Trustee and which need not contain the
statements prescribed by Section 10.4) stating that the Company elects to deliver or cause to be
delivered such debentures or notes in lieu of retiring Funded Debt as hereinabove provided. If the
Company shall so deliver debentures or notes to the applicable trustee and the Company shall duly
deliver such Officers’ Certificate, the amount of cash which the Company shall be required to apply
to the retirement of Funded Debt under this Section 4.4(a) shall be reduced by an amount equal to
the aggregate of the then applicable optional redemption prices (not including any optional sinking
fund redemption prices) of such debentures or notes, or, if there are no such redemption prices,
the principal amount of such debentures or notes; provided, that in the case of debentures
or notes which provide for an amount less than the principal amount thereof to be due and payable
upon a declaration of the maturity thereof, such amount of cash shall be reduced by the amount of
principal of such debentures or notes that would be due and payable as of the date of such
application upon a declaration of acceleration of the maturity thereof pursuant to the terms of the
indenture pursuant to which such debentures or notes were issued.

          (b) Notwithstanding the provisions of paragraph (a) of this Section 4.4, the Company or any
Restricted Subsidiary may enter into sale and lease-back transactions in addition to those
permitted by paragraph (a) of this Section 4.4 without any obligation to retire any outstanding
Securities or other Funded Debt, provided that at the time of entering into such sale and
lease-back transactions and after giving effect thereto, Exempted Debt does not exceed 10% of
Consolidated Net Worth.

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          SECTION 4.5 Funded Debt of Restricted Subsidiaries. (a) The
Company will not permit any Restricted Subsidiary;

     (A) to create, assume or permit to exist any
Funded Debt other than (i) Funded Debt secured by
a mortgage, pledge or lien which is permitted to
such Restricted Subsidiary under the provisions of
Section 4.3(a), (ii) Funded Debt owed to the
Company or any Restricted Subsidiary, (iii) Funded
Debt of a corporation existing at the time it
becomes a Restricted Subsidiary, (iv) Funded Debt
existing on the date of this Indenture, (v) Funded
Debt created in connection with the issuance of
tax-exempt governmental obligations, and (vi)
renewals, extensions or replacements of the
foregoing; or

     (B) to guarantee, directly or indirectly
through any arrangement which is substantially the
equivalent of a guarantee, any Funded Debt except
for (i) guarantees existing on the date of this
Indenture, (ii) guarantees which, on the date of
this Indenture, a Restricted Subsidiary is
obligated to give, (iii) guarantees of Funded Debt
secured by a mortgage, pledge or lien which is
permitted to such Restricted Subsidiary under the
provisions of Section 4.3(a), and (iv) renewals,
extensions or replacements of the foregoing.

          (b) Notwithstanding the provisions of paragraph (a) of this Section 4.5, any Restricted
Subsidiary may create, assume or guarantee Funded Debt in addition to that permitted by paragraph
(a) of this Section 4.5, and renew, extend or replace such Funded Debt, provided that at
the time of such creation, assumption, guarantee, renewal, extension or replacement, and after
giving effect thereto, Exempted Debt does not exceed 10% of Consolidated Net Worth.

          SECTION 4.6 Certificate to Trustee. The
Company will furnish to the Trustee annually, on or before a date not more than four months after
the end of its fiscal year (which, on the date hereof, is a calendar year), a brief certificate
(which need not contain the statements required by Section 10.4) from its principal executive,
financial or accounting officer as to his or her knowledge of the compliance of the Company with
all conditions and covenants under this Indenture (such compliance to be determined without regard
to any period of grace or requirement of notice provided under this Indenture) which certificate
shall comply with the requirements of the Trust Indenture Act.

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          SECTION 4.7 Reports by the Company. The Company covenants to file with the
Trustee, within 15 days after the Company is required to file the same with the Commission, copies
of the annual reports and of the information, documents, and other reports which the Company may be
required to file with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act.

ARTICLE 5

SUCCESSOR CORPORATION

          SECTION
5.1 When Company May Merge, Etc. The Company shall not consolidate with,
merge with or into, or sell, convey, transfer, lease or otherwise dispose of all or substantially
all of its property and assets (as an entirety or substantially as an entirety in one transaction
or a series of related transactions) to, any Person (other than a consolidation with or merger with
or into a Subsidiary or a sale, conveyance, transfer, lease or other disposition to a Subsidiary)
or permit any Person to merge with or into the Company unless:

     (i) either (x) the Company shall be the continuing Person or (y) the Person (if other
than the Company) formed by such consolidation or into which the Company is merged or that
acquired or leased such property and assets of the Company shall be a corporation organized
and validly existing under the laws of the United States of America or any jurisdiction
thereof and shall expressly assume, by a supplemental indenture, executed and delivered to
the Trustee, all of the obligations of the Company on all of the Securities and under this
Indenture and the Company shall have delivered to the Trustee an Opinion of Counsel stating
that such consolidation, merger or transfer and such supplemental indenture complies with
this provision and that all conditions precedent provided for herein relating to such
transaction have been complied with and that such supplemental indenture constitutes the
legal, valid and binding obligation of the Company or such successor enforceable against
such entity in accordance with its terms, subject to customary exceptions; and

     (ii) an Officers’ Certificate to the effect that immediately after giving effect to
such transaction, no Default shall have occurred and be continuing and an opinion of
Counsel as to the matters set forth in Section 5.l(i).

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          SECTION 5.2 Successor Substituted. Upon any consolidation or merger, or any sale,
conveyance, transfer, lease or other disposition of all or substantially all of the property and
assets of the Company in accordance with Section 5.1 of this Indenture, the successor Person formed
by such consolidation or into which the Company is merged or to which such sale, conveyance,
transfer, lease or other disposition is made shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein.

ARTICLE 6

DEFAULT AND REMEDIES

          SECTION 6.1 Events of Default. An “Event of Default” shall occur with
respect to the Securities of any series if:

     (a) the Company defaults in the payment of the
Principal of any Security of such series when the same
becomes due and payable at maturity, upon acceleration,
redemption or mandatory repurchase, including as a
sinking fund installment, or otherwise;

     (b) the Company defaults in the payment of
interest on any Security of such series when the same
becomes due and payable, and such default continues for
a period of 30 days;

     (c) the Company defaults in the performance of or
breaches any other covenant or agreement of the Company
in this Indenture with respect to any Security of such
series or in the Securities of such series and such
default or breach continues for a period of 30
consecutive days after written notice to the Company by
the Trustee or to the Company and the Trustee by the
Holders of 25% or more in aggregate principal amount of
the Securities of all series affected thereby;

     (d) an involuntary case or other proceeding shall
be commenced against the Company or any Restricted
Subsidiary with respect to it or its debts under any
bankruptcy, insolvency or other similar law now or
hereafter in effect seeking the appointment of a
trustee, receiver, liquidator, custodian or other
similar official of it or any substantial part of its
property, and such involuntary case or other proceeding
shall remain undismissed and unstayed for a period of
60 days; or an order for relief shall be entered
against the Company or any Restricted Subsidiary under

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the federal bankruptcy laws as now or hereafter in effect;

     (e) the Company or any Restricted Subsidiary (A)
commences a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or
hereafter in effect, or consents to the entry of an
order for relief in an involuntary case under any such
law, (B) consents to the appointment of or taking
possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of
the Company or any Restricted Subsidiary or for all or
substantially all of the property and assets of the
Company or any Restricted Subsidiary or (C) effects any
general assignment for the benefit of creditors; or

     (f) any other Event of Default established
pursuant to Section 2.3 with respect to the Securities
of such series occurs.

          SECTION 6.2 Acceleration. (a) If an Event of Default described in clauses (a) or
(b) of Section 6.1 with respect to the Securities of any series then outstanding occurs and is
continuing, then, and in each and every such case, except for any series of Securities the
principal of which shall have already become due and payable, either the Trustee or the Holders of
not less than 25% in aggregate principal amount of the Securities of any such affected series then
outstanding hereunder (each such series treated as a separate class) by notice in writing to the
Company (and to the Trustee if given by Securityholders), may declare the entire principal (or, if
the Securities of any such series are Original Issue Discount Securities, such portion of the
principal amount as may be specified in the terms of such series established pursuant to Section
2.3) of all Securities of such affected series, and the interest accrued thereon, if any, to be due
and payable immediately, and upon any such declaration the same shall become immediately due and
payable.

          (b) If an Event of Default described in clauses (c) or (f) of Section 6.1 with respect to the
Securities of one or more but not all series then outstanding, or with respect to the Securities of
all series then outstanding, occurs and is continuing, then, and in each and every such case,
except for any series of Securities the principal of which shall have already become due and
payable, either the Trustee or the Holders of not less than 25% in aggregate principal amount (or,
if the Securities of any such series are Original Issue Discount Securities, the amount thereof
accelerable under this Section) of the Securities of all such affected series then outstanding
hereunder (treated as a single class) by notice in writing to the Company (and to

38

 

the Trustee if given by Securityholders), may declare the entire principal (or, if the
Securities of any such series are Original Issue Discount Securities, such portion of the principal
amount as may be specified in the terms of such series established pursuant to Section 2.3) of all
Securities of all such affected series, and the interest accrued thereon, if any, to be due and
payable immediately, and upon any such declaration the same shall become immediately due and
payable.

          (c) If an Event of Default described in clause (d) or (e) of Section 6.1 occurs and is
continuing, then the principal amount (or, if any Securities are Original Issue Discount
Securities, such portion of the principal as may be specified in the terms thereof established
pursuant to Section 2.3) of all the Securities then outstanding and interest accrued thereon, if
any, shall be and become immediately due and payable, without any notice or other action by any
Holder or the Trustee, to the full extent permitted by applicable law.

          The foregoing provisions, however, are subject to the condition that if, at any time after the
principal (or, if the Securities are original Issue Discount Securities, such portion of the
principal as may be specified in the terms thereof established pursuant to Section 2.3) of the
Securities of any series (or of all the Securities, as the case may be) shall have been so declared
due and payable, and before any judgment or decree for the payment of the moneys due shall have
been obtained or entered as hereinafter provided, the Company shall pay or shall deposit with the
Trustee a sum sufficient to pay all matured installments of interest upon all the Securities of
each such series (or of all the Securities, as the case may be) and the principal of any and all
Securities of each such series (or of all the Securities, as the case may be) which shall have
become due otherwise than by acceleration (with interest upon such principal and, to the extent
that payment of such interest is enforceable under applicable law, on overdue installments of
interest, at the same rate as the rate of interest or Yield to Maturity (in the case of Original
Issue Discount Securities) specified in the Securities of each such series to the date of such
payment or deposit) and such amount as shall be sufficient to cover all amounts owing the Trustee
under Section 7.7, and if any and all Events of Default under the Indenture, other than the
non-payment of the principal of Securities which shall have become due by acceleration, shall have
been cured, waived or otherwise remedied as provided herein, then and in every such case the
Holders of a majority in aggregate principal amount of all the then outstanding Securities of all
such series that have been accelerated (voting as a single class), by written notice to the Company
and to the

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Trustee, may waive all defaults with respect to all such series (or with respect to all the
Securities, as the case may be) and rescind and annul such declaration and its consequences, but no
such waiver or rescission and annulment shall extend to or shall affect any subsequent default or
shall impair any right consequent thereon.

          For all purposes under this Indenture, if a portion of the principal of any Original Issue
Discount Securities shall have been accelerated and declared due and payable pursuant to the
provisions hereof, then, from and after such declaration, unless such declaration has been
rescinded and annulled, the principal amount of such Original Issue Discount Securities shall be
deemed, for all purposes hereunder, to be such portion of the principal thereof as shall be due and
payable as a result of such acceleration, and payment of such portion of the principal thereof as
shall be due and payable as a result of such acceleration, together with interest, if any, thereon
and all other amounts owing thereunder, shall constitute payment in full of such Original Issue
Discount Securities.

          SECTION 6.3 Other Remedies. If a payment default or an Event of Default with
respect to the Securities of any series occurs and is continuing, the Trustee may pursue, in its
own name or as trustee of an express trust, any available remedy by proceeding at law or in equity
to collect the payment of principal of and interest on the Securities of such series or to enforce
the performance of any provision of the Securities of such series or this Indenture.

          The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding.

          SECTION
6.4 Waiver of Past Defaults. Subject to Sections 6.2, 6.7 and 9.2, the
Holders of at least a majority in principal amount (or, if the Securities are Original Issue
Discount Securities, such portion of the principal as is then accelerable under Section 6.2) of the
outstanding Securities of all series affected (voting as a single class), by notice to the Trustee,
may waive an existing Default or Event of Default with respect to the Securities of such series and
its consequences, except a Default in the payment of Principal of or interest on any Security as
specified in clauses (a) or (b) of Section 6.1 or in respect of a covenant or provision of this
Indenture which cannot be modified or amended without the consent of the Holder of each outstanding
Security affected. Upon any such waiver, such Default shall cease to exist, and any Event of
Default with respect to the Securities of such series arising therefrom shall be deemed to have
been cured,

40

 

for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other
Default or Event of Default or impair any right consequent thereto.

          SECTION 6.5 Control by Majority. Subject to Sections 7,1 and 7.2(v), the Holders of
at least a majority in aggregate principal amount (or, if any Securities are Original Issue
Discount Securities, such portion of the principal as is then accelerable under Section 6.2) of the
outstanding Securities of all series affected (voting as a single class) may direct the time,
method and place of conducting any proceeding for any remedy available to the Trustee or exercising
any trust or power conferred on the Trustee with respect to the Securities of such series by this
Indenture; provided, that the Trustee may refuse to follow any direction that conflicts
with law or this Indenture, that may involve the Trustee in personal liability or that the Trustee
determines in good faith may be unduly prejudicial to the rights of Holders not joining in the
giving of such direction; and provided further, that the Trustee may take any other action
it deems proper that is not inconsistent with any directions received from Holders of Securities
pursuant to this Section 6.5.

          SECTION 6.6 Limitation on Suits. No Holder of any Security of any series may
institute any proceeding, judicial or otherwise, with respect to this Indenture or the Securities
of such series, or for the appointment of a receiver or trustee, or for any other remedy hereunder,
unless:

     (i) such Holder has previously given to the Trustee written notice of a continuing
Event of Default with respect to the Securities of such series;

     (ii) the Holders of at least 25% in aggregate principal amount of outstanding
Securities of all such series affected shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default in its own name as Trustee
hereunder;

     (iii) such Holder or Holders have offered to the Trustee indemnity reasonably
satisfactory to the Trustee against any costs, liabilities or expenses to be incurred in
compliance with such request;

     (iv) the Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and

     (v) during such 60-day period, the Holders of a majority in aggregate principal
amount of the outstanding Securities of all such affected series have

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not given the Trustee a direction that is inconsistent with such written request.

          A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a
preference or priority over such other Holder,

          SECTION 6.7 Rights of Holders to Receive Payment. Notwithstanding any other
provision of this Indenture, the right of any Holder of a Security to receive payment of Principal
of or interest, if any, on such Holder’s Security on or after the respective due dates expressed on
such Security, or to bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder.

      
    SECTION 6.8 Collection Suit by Trustee. If an Event of Default with respect to the
Securities of any series in payment of Principal or interest
specified in clause (a) or (b) of
Section 6.1 occurs and is continuing, the Trustee may recover judgment in its own name and as
trustee of an express trust against the Company for the whole amount (or such portion thereof as
specified in the terms established pursuant to Section 2.3 of Original Issue Discount Securities)
of Principal of, and accrued interest remaining unpaid on, together with interest on overdue
Principal of, and, to the extent that payment of such interest is lawful, interest on overdue
installments of interest on, the Securities of such series, in each case at the rate or Yield to
Maturity (in the case of Original Issue Discount Securities) specified in such Securities, and such
further amount as shall be sufficient to cover all amounts owing the
Trustee under Section 7.7.

          SECTION 6.9 Trustee May File Proofs of Claim. The Trustee may file such proofs of
claim and other papers or documents as may be necessary or advisable in order to have the claims of
the Trustee (including any claim for amounts due the Trustee under Section 7.7) and the Holders
allowed in any judicial proceedings relative to the Company (or any other obligor on the
Securities), its creditors or its property and shall be entitled and empowered to collect and
receive any moneys, securities or other property payable or deliverable upon conversion or exchange
of the Securities or upon any such claims and to distribute the same, and any custodian, receiver,
assignee, trustee, liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the
event that the Trustee shall consent to the making of such payments directly to the Holders, to pay
to the Trustee any amount due to it under Section 7.7. Nothing herein contained shall be deemed to

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empower the Trustee to authorize or consent to, or accept or adopt on behalf of any Holder, any
plan of reorganization, arrangement, adjustment or composition affecting the Securities or the
rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.

          SECTION 6.10 Application of Proceeds. Any moneys collected by the Trustee pursuant
to this Article in respect of the Securities of any series shall be applied in the following order
at the date or dates fixed by the Trustee and, in case of the distribution of such moneys on
account of Principal or interest, upon presentation of the several Securities and coupons
appertaining to such Securities in respect of which moneys have been collected and noting thereon
the payment, or issuing Securities of such series and tenor in reduced principal amounts in
exchange for the presented Securities of such series and tenor if only partially paid, or upon
surrender thereof if fully paid:

     FIRST: To the payment of all amounts due the Trustee under Section 7.7 applicable to
the Securities of such series in respect of which moneys have been collected;

     SECOND: In case the principal of the Securities of such series in respect of which
moneys have been collected shall not have become and be then due and payable, to the
payment of interest on the Securities of such series in default in the order of the
maturity of the installments of such interest, with interest (to the extent that such
interest has been collected by the Trustee) upon the overdue installments of interest at
the same rate as the rate of interest or Yield to Maturity (in the case of Original Issue
Discount Securities) specified in such Securities, such payments to be made ratably to the
persons entitled thereto, without discrimination or preference;

     THIRD: In case the principal of the Securities of such series in respect of which
moneys have been collected shall have become and shall be then due and payable, to the
payment of the whole amount then owing and unpaid upon all the Securities of such series
for Principal and interest, with interest upon the overdue Principal, and (to the extent
that such interest has been collected by the Trustee) upon overdue installments of
interest at the same rate as the rate of interest or Yield to Maturity (in the case of
Original Issue Discount Securities) specified in the Securities of such series; and in
case such moneys shall be insufficient to pay in full the whole amount so due and

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unpaid upon the Securities of such series, then to the payment of such Principal and
interest or Yield to Maturity, without preference or priority of Principal over interest or
Yield to Maturity, or of interest or Yield to Maturity over Principal, or of any installment
of interest over any other installment of interest, or of any Security of such series over
any other Security of such series, ratably to the aggregate of such Principal and accrued
and unpaid interest or Yield to Maturity; and

     FOURTH: To the payment of the remainder, if any, to the company or any other person
lawfully entitled thereto.

          SECTION 6.11 Restoration of Rights and Remedies. If the Trustee or any Holder has
instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding
has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee
or to such Holder, then, and in every such case, subject to any determination in such proceeding,
the Company, the Trustee and the Holders shall be restored to their former positions hereunder and
thereafter all rights and remedies of the Company, Trustee and the Holders shall continue as though
no such proceeding had been instituted.

          SECTION 6.12 Undertaking for Costs. In any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by
it as Trustee, in either case in respect to the Securities of any series, a court may require any
party litigant in such suit (other than the Trustee) to file an undertaking to pay the costs of the
suit, and the court may assess reasonable costs, including reasonable attorneys’ fees, against any
party litigant (other than the Trustee) in the suit having due regard to the merits and good faith
of the claims or defenses made by the party litigant. This Section 6.12 does not apply to a suit by
a Holder pursuant to Section 6.7 or a suit by Holders of more than 10% in principal amount of the
outstanding Securities of such series.

          SECTION 6.13 Rights and Remedies Cumulative. Except as otherwise provided
with respect to the replacement or payment of mutilated, destroyed, lost or wrongfully taken
Securities in Section 2.8, no right or remedy herein conferred upon or reserved to the Trustee or
to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy
shall, to the extent permitted by law, be cumulative and in addition to every other right and
remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The
assertion or employment of

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any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

          SECTION 6.14 Delay or Omission Not Waiver. No delay or omission of the Trustee or of
any Holder to exercise any right or remedy accruing upon any Event of Default shall impair any such
right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article 6 or by law to the Trustee or to the Holders may be
exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the
Holders, as the case may be.

ARTICLE 7

TRUSTEE

          SECTION 7.1 General. The duties and
responsibilities of the Trustee shall be as provided by the Trust Indenture Act and as set forth
herein. Notwithstanding the foregoing, no provision of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur any financial liability in the performance of any
of its duties hereunder, or in the exercise of any of its rights or powers, unless it receives
indemnity satisfactory to it against any loss, liability or expense. Whether or not therein
expressly so provided, every provision of this Indenture relating to the conduct or affecting the
liability of or affording protection to the Trustee shall be subject to the provisions of this
Article 7.

          SECTION 7.2 Certain Rights of Trustee. Subject to Trust Indenture Act Sections
315(a) through (d):

     (i) the Trustee may rely and shall be protected in acting or refraining from acting
upon any resolution, certificate, Officers’ Certificate, Opinion of Counsel (or both),
statement, instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document believed by it
to be genuine and to have been signed or presented by the proper person or persons. The
Trustee need not investigate any fact or matter stated in the document, but the Trustee,
in its discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit;

     (ii) before the Trustee acts or refrains from acting, it may require an Officers’
Certificate and/or

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an Opinion of Counsel, which shall conform to Section 10.4. The Trustee shall not be liable for any
action it takes or omits to take in good faith in reliance on such certificate or opinion. Subject
to Sections 7.1 and 7.2, whenever in the administration of the trusts of this Indenture the Trustee
shall deem it necessary or desirable that a matter be proved or established prior to taking or
suffering or omitting any action hereunder, such matter (unless other evidence in respect thereof
be herein specifically prescribed) may, in the absence of negligence or bad faith on the part of
the Trustee, be deemed to be conclusively proved and established by an Officers’ Certificate
delivered to the Trustee, and such certificate, in the absence of negligence or bad faith on the
part of the Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted
by it under the provisions of this Indenture upon the faith thereof;

     (iii) the Trustee may act through its attorneys and agents not regularly in its employ and
shall not be responsible for the misconduct or negligence of any agent or attorney appointed with
due care;

     (iv) any request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by an Officers’ Certificate (unless other evidence in respect thereof be
herein specifically prescribed); and any Board Resolution may be evidenced to the Trustee by a copy
thereof certified by the Secretary or an Assistant Secretary of the Company;

     (v) the Trustee shall be under no obligation to exercise any of the rights or powers vested
in it by this Indenture at the request, order or direction of any of the Holders, unless such
Holders shall have offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities that might be incurred by it in compliance with such request or direction;

     (vi) the Trustee shall not be liable for any action it takes or omits to take in good faith
that it believes to be authorized or within its rights or powers or for any action it takes or
omits to take in accordance with the direction of the Holders in accordance with Section 6.5
relating to the time, method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture;

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     (vii) the Trustee may consult with counsel and the written advice of such counsel
or any Opinion of Counsel shall be full and complete authorization and protection in respect
of any action taken, suffered or omitted by it hereunder in good faith and in reliance
thereon; and

     (viii) prior to the occurrence of an Event of Default hereunder and after the curing
or waiving of all Events of Default, the Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate, Officers’
Certificate, Opinion of Counsel, Board Resolution, statement, instrument, opinion, report,
notice, request, consent, order, approval, appraisal, bond, debenture, note, coupon,
security, or other paper or document unless requested in writing so to do by the Holders of
not less than a majority in aggregate principal amount of the Securities of all series
affected then outstanding; provided that, if the payment within a reasonable time to
the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making
of such investigation is, in the opinion of the Trustee, not reasonably assured to the
Trustee by the security afforded to it by the terms of this Indenture, the Trustee may
require reasonable indemnity against such expenses or liabilities as a condition to
proceeding.

          SECTION 7.3 Individual Rights of Trustee. The Trustee, in its individual or any
other capacity, may become the owner or pledgee of Securities and may otherwise deal with the
Company or its Affiliates with the same rights it would have if it were not the Trustee. Any Agent
may do the same with like rights. However, the Trustee is subject to Trust Indenture Act Sections
310(b) and 311. For purposes of Trust Indenture Act Section 311(b)(4) and (6), the following terms
shall mean:

          (a) “cash transaction” means any transaction in
which full payment for goods or securities sold is made
within seven days after delivery of the goods or securities
in currency or in checks or other orders drawn upon banks or
bankers and payable upon demand; and

          (b) “self-liquidating paper” means any draft,
bill of exchange, acceptance or obligation which is made,
drawn, negotiated or incurred by the Company for the purpose
of financing the purchase, processing, manufacturing,
shipment, storage or sale of goods, wares or merchandise and
which is secured by documents evidencing title to,
possession of, or a lien upon, the goods, wares or
merchandise or the receivables or proceeds arising from the

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sale of the goods, wares or merchandise previously constituting the security, provided the
security is received by the Trustee simultaneously with the creation of the creditor relationship
with the Company arising from the making, drawing, negotiating or incurring of the draft, bill of
exchange, acceptance or obligation.

          SECTION 7.4 Trustee’s Disclaimer. The recitals contained herein and in the
Securities (except “the Trustee’s certificate of authentication) shall be taken as statements of
the Company and not of the Trustee and the Trustee assumes no responsibility for the correctness of
the same. Neither the Trustee nor any of its agents (i) makes any representation as to the validity
or adequacy of this Indenture or the Securities and (ii) shall be accountable for the Company’s use
or application of the proceeds from the Securities.

          SECTION 7.5 Notice of Default. If any Default with respect to the Securities of any
series occurs and is continuing and if such Default is known to the actual knowledge of a
Responsible officer with the Corporate Trust Department of the Trustee, the Trustee shall give to
each Holder of Securities of such series notice of such Default within 90 days after it occurs (i)
if any Unregistered Securities of such series are then outstanding, to the Holders thereof, by
publication at least once in an Authorized Newspaper in the Borough of Manhattan, The City of New
York and at least once in an Authorized Newspaper in London and (ii) to all Holders of Securities
of such series in the manner and to the extent provided in Section 313(c) of the Trust Indenture
Act, unless such Default shall have been cured or waived before the mailing or publication of such
notice; provided, however, that, except in the case of a Default in the payment of
the Principal of or interest on any Security, the Trustee shall be protected in withholding such
notice if the Trustee in good faith determines that the withholding of such notice is in the
interests of the Holders.

          SECTION 7.6 Reports by Trustee to Holders. Within 60 days after each May 15,
beginning with May 15, 1996, the Trustee shall mail to each Holder as and to the extent provided in
Trust Indenture Act Section 313(c) a brief report dated as of such May 15, if required by Trust
Indenture Act Section 313(a).

          SECTION 7.7 Compensation and Indemnity. The Company shall pay to the Trustee such
compensation as shall be agreed upon in writing from time to time for its services. The
compensation of the Trustee shall not be limited by any law on compensation of a Trustee of an
express trust. The Company shall reimburse the Trustee upon

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request for all reasonable out-of-pocket expenses, disbursements and advances incurred or made by
the Trustee. Such expenses shall include the reasonable compensation and expenses of the Trustee’s
agents, counsel and other persons not regularly in its employ.

          The Company shall indemnify the Trustee for, and hold it harmless against, any loss or
liability or expense incurred by it without negligence or bad faith on its part arising out of or
in connection with the acceptance or administration of this indenture and the Securities or the
issuance of the Securities or of series thereof or the trusts hereunder and the performance of
duties under this Indenture and the Securities, including the costs and expenses of defending
itself against or investigating any claim or liability and of complying with any process served
upon it or any of its officers in connection with the exercise or performance of any of its powers
or duties under this Indenture and the Securities.

          To secure the Company’s payment obligations in this Section 7.7, the Trustee shall have a lien
prior to the Securities on all money or property held or collected by the Trustee, in its capacity
as Trustee, except money or property held in trust to pay Principal of, and interest on particular
Securities.

          The obligations of the Company under this Section to compensate and indemnify the Trustee and
each predecessor Trustee and to pay or reimburse the Trustee and each predecessor Trustee for
expenses, disbursements and advances shall constitute additional indebtedness hereunder and shall
survive the satisfaction and discharge of this Indenture or the rejection or termination of this
Indenture under bankruptcy law. Such additional indebtedness shall be a senior claim to that of
the Securities upon all property and funds held or collected by the Trustee as such, except funds
held in trust for the benefit of the Holders of particular Securities or coupons, and the
Securities are hereby subordinated to such senior claim. If the Trustee renders services and
incurs expenses following an Event of Default under Section 6.1(d) or Section 6.1(e) hereof, the
parties hereto and the holders by their acceptance of the Securities hereby agree that such
expenses are intended to constitute expenses of administration under any bankruptcy law.

          SECTION 7.8 Replacement of Trustee. A resignation or removal of the Trustee as
Trustee with respect to the Securities of any series and appointment of a successor Trustee as
Trustee with respect to the Securities of any series shall become effective only upon the
successor Trustee’s acceptance of appointment as provided in this Section 7.8.

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          The Trustee may resign as Trustee with respect to the Securities of any series at any
time by so notifying the Company in writing. The Holders of a majority in principal amount of the
outstanding Securities of any series may remove the Trustee as Trustee with respect to the
Securities of such series by so notifying the Trustee in writing and may appoint a successor
Trustee with respect thereto with the consent of the Company. The Company may remove the Trustee as
Trustee with respect to the Securities of any series if: (i) the Trustee is no longer eligible
under Section 7.10 of this Indenture; (ii) the Trustee is adjudged a bankrupt or insolvent; (iii) a
receiver or other public officer takes charge of the Trustee or its property; or (iv) the Trustee
becomes incapable of acting.

          If the Trustee resigns or is removed as Trustee with respect to the Securities of any series,
or if a vacancy exists in the office of Trustee with respect to the Securities of any series for
any reason, the Company shall promptly appoint a successor Trustee with respect thereto. Within one
year after the successor Trustee takes office, the Holders of a majority in principal amount of the
outstanding Securities of such series may appoint a successor Trustee in respect of such Securities
to replace the successor Trustee appointed by the Company. If the successor Trustee with respect
to the Securities of any series does not deliver its written acceptance required by the next
succeeding paragraph of this Section 7.8 within 30 days after the retiring Trustee resigns or is
removed, the retiring Trustee, the Company or the Holders of a majority in principal amount of the
outstanding Securities of such series may petition any court of competent jurisdiction for the
appointment of a successor Trustee with respect thereto.

          A successor Trustee with respect to the Securities of any series shall deliver a written
acceptance of its appointment to the retiring Trustee and to the Company. Immediately after the
delivery of such written acceptance, subject to the lien provided for in Section 7.7, (i) the
retiring Trustee shall transfer all property held by it as Trustee in respect of the Securities of
such series to the successor Trustee, (ii) the resignation or removal of the retiring Trustee in
respect of the Securities of such series shall become effective and (iii) the successor Trustee
shall have all the rights, powers and duties of the Trustee in respect of the Securities of such
series under this Indenture. A successor Trustee shall mail notice of its succession to each Holder
of Securities of such series.

          Upon request of any such successor Trustee, the company shall execute any and all instruments
for more fully and certainly vesting in and confirming to such successor

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Trustee all such rights, powers and trusts referred to in the preceding paragraph.

          The Company shall give notice of any resignation and any removal of the Trustee with respect
to the Securities of any series and each appointment of a successor Trustee in respect of the
Securities of such series to all Holders of Securities of such series. Each notice shall include
the name of the successor Trustee and the address of its Corporate Trust Office.

          Notwithstanding replacement of the Trustee with respect to the Securities of any series
pursuant to this Section 7.8, the Company’s obligations under Section 7.7 shall continue for the
benefit of the retiring Trustee.

          SECTION
7.9 Successor Trustee by Merger, Etc. If the Trustee consolidates with,
merges or converts into, or transfers all or substantially all of its corporate trust business to,
another corporation or national banking association, the resulting, surviving or transferee
corporation or national banking association without any further act shall be the successor Trustee
with the same effect as if the successor Trustee had been named as the Trustee herein.

          SECTION 7.10 Eligibility. This Indenture shall always have a Trustee who satisfies
the requirements of Trust Indenture Act Section 310 (a). The Trustee shall have a combined capital
and surplus of at least $25,000,000 as set forth in its most recent published annual report of
condition.

          SECTION 7.11 Money Held in Trust. The Trustee shall not be liable for interest on
any money received by it except as the Trustee may agree in writing with the Company. Money held in
trust by the Trustee need not be segregated from other funds except to the extent required by law
and except for money held in trust under Article 8 of this Indenture.

ARTICLE 8

DISCHARGE OF INDENTURE

          SECTION 8.1 Defeasance Within One Year of Payment. Except as otherwise provided in
this Section 8.1, the Company may terminate its obligations under the Securities of any series and
this Indenture with respect to Securities of such series if:

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     (i) all Securities of such series previously authenticated and delivered
(other than destroyed, lost or wrongfully taken Securities of such series that have been
replaced or Securities of such series that are paid pursuant to Section 4.1 or Securities of
such series for whose payment money or securities have theretofore been held in trust and
thereafter repaid to the Company, as provided in Section 8.5) have been delivered to the
Trustee for cancellation and the Company has paid all sums payable by it hereunder; or

     (ii) (A) the Securities of such series mature within one year or all of them are to be
called for redemption within one year under arrangements satisfactory to the Trustee for
giving the notice of redemption, (B) the Company irrevocably deposits in trust with the
Trustee, as trust funds solely for the benefit of the Holders of such Securities for that
purpose, money or U.S. Government Obligations or a combination thereof sufficient (unless
such funds consist solely of money, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof delivered to the
Trustee), without consideration of any reinvestment, to pay Principal of and interest on the
Securities of such series to maturity or redemption, as the case may be, and to pay all
other sums payable by it hereunder, and (C) the Company delivers to the Trustee an Officers’
Certificate and an Opinion of Counsel, in each case stating that all conditions precedent
provided for herein relating to the satisfaction and discharge of this Indenture with
respect to the Securities of such series have been complied with.

          With respect to the foregoing clause (i), only the Company’s obligations under Section 7.7 in
respect of the Securities of such series shall survive. With respect to the foregoing clause (ii),
only the Company’s obligations in Sections 2.2 through 2.12, 4.2, 7.7, 7.8 and 8.5 in respect of
the Securities of such series shall survive until such Securities of such series are no longer
outstanding. Thereafter, only the Company’s obligations in Sections 7.7 and 8.5 in respect of the
Securities of such series shall survive. After any such irrevocable deposit, the Trustee upon
request shall acknowledge in writing the discharge of the Company’s obligations under the
Securities of such series and this Indenture with respect to the Securities of such series except
for those surviving obligations specified above.

          SECTION 8.2 Defeasance. Except as provided below, the Company will be deemed to
have paid and will be

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discharged from any and all obligations in respect of the Securities of any series and the
provisions of this Indenture will no longer be in effect with respect to the Securities of such
series (and the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging the same); provided that the following conditions shall have been satisfied:

     (A) the Company has irrevocably deposited in
trust with the Trustee as trust funds solely for the
benefit of the Holders of the Securities of such
series, for payment of the Principal of and interest on
the Securities of such series, money or U.S. Government
Obligations or a combination thereof sufficient (unless
such funds consist solely of money, in the opinion of a
nationally recognized firm of independent public
accountants expressed in a written certification
thereof delivered to the Trustee) without consideration
of any reinvestment and after payment of all federal,
state and local taxes or other charges and assessments
in respect thereof payable by the Trustee, to pay and
discharge the Principal of and accrued interest on the
outstanding Securities of such series to maturity or
earlier redemption (irrevocably provided for under
arrangements satisfactory to the Trustee), as the case
may be;

     (B) such deposit will not result in a breach or
violation of, or constitute a default under, this
Indenture or any other material agreement or instrument
to which the Company is a party or by which it is
bound;

     (C) no Default with respect to the Securities of
such series shall have occurred and be continuing on
the date of such deposit;

     (D) the Company shall have delivered to the
Trustee (1) either (x) a ruling directed to the Trustee
received from the Internal Revenue Service to the
effect that the Holders of the Securities of such
series will not recognize income, gain or loss for
federal income tax purposes as a result of the
Company’s exercise of its option under this Section 8.2
and will be subject to federal income tax on the same
amount and in the same manner and at the same times as
would have been the case if such deposit and defeasance
had not occurred or (y) an Opinion of Counsel to the
same effect as the ruling described in clause (x) above
and (2) an Opinion of Counsel to the effect that the
Holders of the Securities of such series have a valid
security interest in the trust funds subject to no
prior liens under the UCC; and

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     (E) the Company has delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, in each case stating that all conditions precedent provided for herein
relating to the defeasance contemplated by this Section 8.2 of the Securities of such
series have been complied with.

          The Company’s obligations in Sections 2.2 through 2.12, 4.2, 7.7, 7.8 and 8.5 with respect to
the Securities of such series shall survive until such Securities are no longer outstanding.
Thereafter, only the Company’s obligations in Sections 7.7 and 8.5 shall survive.

          SECTION 8.3 Covenant Defeasance. The Company may omit to comply with any term,
provision or condition set forth in Sections 4.3, 4.4 or 4.5 (or any other specific covenant
relating to such series provided for in a Board Resolution or supplemental indenture pursuant to
Section 2.3 which may by its terms be defeased pursuant to this Section 8.3), and such omission
shall be deemed not to be an Event of Default under clauses (c) or (f) of Section 6.1, with respect
to the outstanding Securities of a series if:

     (i) the Company has irrevocably deposited in trust with the Trustee as trust funds
solely for the benefit of the Holders of the Securities of such series, for payment of the
Principal of and interest, if any, on the Securities of such series, money or U.S.
Government Obligations or a combination thereof in an amount sufficient (unless such funds
consist solely of money, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to the Trustee)
without consideration of any reinvestment and after payment of all federal, state and local
taxes or other charges and assessments in respect thereof payable by the Trustee, to pay
and discharge the Principal of and interest on the outstanding Securities of such series to
maturity or earlier redemption (irrevocably provided for under arrangements satisfactory to
the Trustee), as the case may be;

     (ii) such deposit will not result in a breach or violation of, or constitute a
default under, this Indenture or any other material agreement or instrument to which the
Company is a party or by which it is bound;

     (iii) no Default with respect to the Securities of such series shall have occurred
and be continuing on the date of such deposit;

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     (iv) the Company has delivered to the Trustee an Opinion of Counsel to the
effect that (A) the Holders of the Securities of such series have a valid security interest
in the trust funds subject to no prior liens under the UCC and (B) such Holders will not
recognize income, gain or loss for federal income tax purposes as a result of such deposit
and covenant defeasance and will be subject to federal income tax on the same amount and in
the same manner and at the same times as would have been the case if such deposit and
defeasance had not occurred; and

     (v) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion
of Counsel, in each case stating that all conditions precedent provided for herein relating
to the covenant defeasance contemplated by this Section 8.3 of the Securities of such
series have been complied with.

          SECTION 8.4 Application of Trust Money. Subject to Section 8.5, the Trustee or
Paying Agent shall hold in trust money or U.S. Government Obligations deposited with it pursuant to
Section 8.1, 8.2 or 8.3, as the case may be, in respect of the Securities of any series and shall
apply the deposited money and the proceeds from deposited U.S. Government Obligations in accordance
with the Securities of such series and this Indenture to the payment of Principal of and interest
on the Securities of such series; but such money need not be segregated from other funds except to
the extent required by law.

          SECTION 8.5 Repayment to Company. Subject to Sections 7.7, 8.1, 8.2 and 8.3, the
Trustee and the Paying Agent shall promptly pay to the Company upon request set forth in an
Officers’ Certificate any money held by them at any time and not required to make payments
hereunder and thereupon shall be relieved from all liability with respect to such money. The
Trustee and the Paying Agent shall pay to the Company upon written request any money held by them
and required to make payments hereunder under this Indenture that remains unclaimed for two years;
provided that the Trustee or such Paying Agent before being required to make any payment
may cause to be published at the expense of the Company once in an Authorized Newspaper in The City
of New York or with respect to any Security the interest on which is based on the offered
quotations in the interbank Eurodollar market for dollar deposits in an Authorized Newspaper in
London or mail to each Holder entitled to such money at such Holder’s address (as set forth in the
Security Register) notice that such money remains unclaimed and that after a date specified therein
(which shall be at least 30 days from the date of such publication or mailing) any unclaimed
balance of such money then remaining will be

55

 

repaid to the Company. After payment to the Company, Holders entitled to such money must look to
the Company for payment as general creditors unless an applicable law designates another Person,
and all liability of the Trustee and such Paying Agent with respect to such money shall cease.

ARTICLE 9

AMENDMENTS, SUPPLEMENTS AND WAIVERS

          SECTION 9.1 Without Consent of Holders. The Company and the Trustee may amend or
supplement this Indenture or the Securities of any series without notice to or the consent of any
Holder:

     (1) to cure any ambiguity, defect or
inconsistency in this Indenture; provided that such
amendments or supplements shall not materially and
adversely affect the interests of the Holders;

     (2) to comply with Article 5;

     (3) to comply with any requirements of the
Commission in connection with the qualification of this
Indenture under the Trust Indenture Act;

     (4) to evidence and provide for the acceptance of appointment hereunder with respect
to the Securities of any or all series by a successor Trustee;

     (5) to establish the form or forms or terms of
Securities of any series or of the coupons appertaining
to such Securities as permitted by Section 2.3;

     (6) to provide for uncertificated or Unregistered
Securities and to make all appropriate changes for such
purpose; and

     (7) to make any change that does not materially
and adversely affect the rights of any Holder.

          SECTION 9.2 With Consent of Holders. Subject to Sections 6.4 and 6.7, without
prior notice to any Holders, the Company and the Trustee may amend this Indenture and the
Securities of any series with the written consent of the Holders of a majority in principal amount
of the outstanding Securities of all series affected by such supplemental indenture (all such
series voting as one class), and the Holders of a majority in principal amount of the outstanding
Securities of all series affected thereby (all such series voting as one class) by written notice
to

56

 

the Trustee may waive future compliance by the Company with any provision of this Indenture or
the Securities of such series.

          Notwithstanding the provisions of this Section 9.2, without the consent of each Holder
affected thereby, an amendment or waiver, including a waiver pursuant to Section 6.4, may not:

     (i) extend the stated maturity of the Principal of, or any sinking fund obligation or
any installment of interest on, such Holder’s Security, or reduce the Principal amount
thereof or the rate of interest thereon (including any amount in respect of original issue
discount), or any premium payable with respect thereto, or adversely affect the rights of
such Holder under any mandatory redemption or repurchase provision or any right of
redemption or repurchase at the option of such Holder, or reduce the amount of the
Principal of an Original Issue Discount Security that would be due and payable upon an
acceleration of the maturity thereof pursuant to Section 6.2 or the amount thereof provable
in bankruptcy, or change any place of payment where, or the currency in which, any Security
or any premium or the interest thereon is payable, or impair the right to institute suit
for the enforcement of any such payment on or after the due date therefor;

     (ii) reduce the percentage in principal amount of outstanding Securities of the
relevant series the consent of whose Holders is required for any such supplemental
indenture, for any waiver of compliance with certain provisions of this Indenture or
certain Defaults and their consequences provided for in this Indenture;

     (iii) waive a Default in the payment of Principal of or interest on any Security of
such Holder; or

     (iv) modify any of the provisions of this Section 9.2, except to increase any such
percentage or to provide that certain other provisions of this Indenture cannot be
modified or waived without the consent of the Holder of each outstanding Security affected
thereby.

          A supplemental indenture which changes or
eliminates any covenant or other provision of this Indenture which has expressly been included
solely for the benefit of one or more particular series of Securities, or which modifies the rights
of Holders of Securities of such series with respect to such covenant or provision, shall be deemed
not to affect the rights under this Indenture of the Holders

57

 

of Securities of any other series or of the coupons appertaining to such
Securities.

          It shall not be necessary for the consent of any Holder under this Section 9.2 to approve the
particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if such
consent approves the substance thereof.

          After an amendment, supplement or waiver under this Section 9.2 becomes effective, the Company
shall give to the Holders affected thereby a notice briefly describing the amendment, supplement or
waiver. The Company will mail supplemental indentures to Holders upon request. Any failure of the
Company to mail such notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture or waiver.

          SECTION 9.3 Revocation and Effect of Consent. Until an amendment or waiver becomes
effective, a consent to it by a Holder is a continuing consent by the Holder and every subsequent
Holder of a Security or portion of a Security that evidences the same debt as the Security of the
consenting Holder, even if notation of the consent is not made on any Security. However, any such
Holder or subsequent Holder may revoke the consent as to its Security or portion of its Security,
Such revocation shall be effective only if the Trustee receives the notice of revocation before the
date the amendment, supplement or waiver becomes effective. An amendment, supplement or waiver
shall become effective with respect to any Securities affected thereby on receipt by the Trustee of
written consents from the requisite Holders of outstanding Securities affected thereby.

          The
Company may, but shall not be obligated to, fix a record date (which may be not less than
10 nor more than 60 days prior to the solicitation of consents) for the purpose of determining the
Holders of the Securities of any series affected entitled to consent to any amendment, supplement
or waiver. If a record date is fixed, then, notwithstanding the immediately preceding paragraph,
those Persons who were such Holders at such record date (or their duly designated proxies) and only
those Persons shall be entitled to consent to such amendment, supplement or waiver or to revoke any
consent previously given, whether or not such Persons continue to be such Holders after such record
date. No such consent shall be valid or effective for more than 90 days after such record date.

          After an amendment, supplement or waiver becomes effective with respect to the Securities of
any series affected thereby, it shall bind every Holder of such

58

 

Securities unless it is of the type described in any of clauses (i) through (iv) of Section 9.2.
In case of an amendment or waiver of the type described in clauses (i) through (iv) of Section 9.2,
the amendment or waiver shall bind each such Holder who has consented to it and every subsequent
Holder of a Security that evidences the same indebtedness as the Security of the consenting Holder.

          SECTION
9.4 Notation on or Exchange of Securities. If an amendment,
supplement or waiver changes the terms of any Security, the Trustee may require the Holder thereof
to deliver it to the Trustee. The Trustee may place an appropriate notation on the Security about
the changed terms and return it to the Holder and the Trustee may place an appropriate notation on
any Security of such series thereafter authenticated. Alternatively, if the Company or the Trustee
so determines, the Company in exchange for the Security shall issue and the Trustee shall
authenticate a new Security of the same series and tenor that reflects the changed terms.

          SECTION
9.5 Trustee to Sign Amendments, Etc. The Trustee shall be
entitled to receive, and shall be fully protected in relying upon, an Opinion of Counsel stating
that the execution of any amendment, supplement or waiver authorized pursuant to this Article 9 is
authorized or permitted by this Indenture, stating that all requisite consents have been obtained
or that no consents are required and stating that such supplemental indenture constitutes the
legal, valid and binding obligation of the Company, enforceable against the Company in accordance
with its terms, subject to customary exceptions. Subject to the preceding sentence, the Trustee
shall sign such amendment, supplement or waiver if the same does not adversely affect the rights of
the Trustee. The Trustee may, but shall not be obligated to, execute any such amendment,
supplement or waiver that affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise.

          SECTION 9.6 Conformity with Trust Indenture Act. Every supplemental indenture
executed pursuant to this Article 9 shall conform to the requirements of the Trust Indenture Act as
then in effect.

ARTICLE 10

MISCELLANEOUS

          SECTION 10.1 Trust Indenture Act of 1939. This Indenture shall incorporate and be
governed by the provisions of the Trust Indenture Act that are required to

59

 

be part of and to govern indentures qualified under the Trust Indenture Act.

          SECTION 10.2 Notices. Any notice or
communication shall be sufficiently given if written and (a) if delivered in person when received
or (b) if mailed by first class mail 5 days after mailing, or (c) as between the Company and the
Trustee if sent by facsimile transmission, when transmission is confirmed, in each case addressed
as follows:

if to the Company:

Nabisco, Inc.

7 Campus Drive

Parsippany, New Jersey 07054

Telecopy: (201) 682-6598

Attention: General Counsel

if to the Trustee:

Citibank, N.A.

120 Wall Street, 13th Floor

New York, New York 10043

Telecopy: (212) 480-1614

Attention: Corporate Trust Administration

          The Company or the Trustee by written notice to the other may designate additional or
different addresses for subsequent notices or communications.

          Any notice or communication shall be sufficiently given to Holders of any Unregistered
Securities, by publication at least once in an Authorized Newspaper in The city of New York, or
with respect to any Security the interest on which is based on the offered quotations in the
interbank Eurodollar market for dollar deposits at least once in an Authorized Newspaper in London,
and by mailing to the Holders thereof who have filed their names and addresses with the Trustee
pursuant to Section 313(c)(2) of the Trust Indenture Act at such addresses as were so furnished to
the Trustee and to Holders of Registered Securities by mailing to such Holders at their addresses
as they shall appear on the Security Register. Notice mailed shall be sufficiently given if so
mailed within the time prescribed. Copies of any such communication or notice to a Holder shall
also be mailed to the Trustee and each Agent at the same time.

          Failure to mail a notice or communication to a Holder or any defect in it shall not affect its
sufficiency with respect to other Holders. Except as otherwise provided in this Indenture, if a
notice or communication is mailed in

60

 

the manner provided in this Section 10.2, it is duly given, whether or not the addressee
receives it.

          Where this Indenture provides for notice in any manner, such notice may be waived in writing
by the Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

          In case it shall be impracticable to give notice as herein contemplated, then such
notification as shall be made with the approval of the Trustee shall constitute a sufficient
notification for every purpose hereunder.

          SECTION 10.3 Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company to the Trustee to take any action under this Indenture, the Company
shall furnish to the Trustee:

     (i) an Officers’ Certificate stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with; and

     (ii) an Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent have been complied with.

          SECTION 10.4 Statements Required in Certificate or Opinion. Each certificate or
opinion with respect to compliance with a condition or covenant provided for in this Indenture
shall include:

     (i) a statement that each person signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;

     (ii) a brief statement as to the nature and scope of the examination or
investigation upon which the statement or opinion contained in such certificate or opinion
is based;

     (iii) a statement that, in the opinion of each such person, he has made such
examination or investigation as is necessary to enable him to express an informed opinion
as to whether or not such covenant or condition has been complied with; and

     (iv) a statement as to whether or not, in the opinion of each such person, such
condition or covenant

61

 

has been complied with; provided, however, that, with respect to
matters of fact, an Opinion of Counsel may rely on an Officers’ Certificate or certificates
of public officials.

          SECTION 10.5 Evidence of Ownership. The Company, the Trustee and any agent of the
Company or the Trustee may deem and treat the Holder of any Unregistered Security and the Holder of
any coupon as the absolute owner of such Unregistered Security or coupon (whether or not such
Unregistered Security or coupon shall be overdue) for the purpose of receiving payment thereof or
on account thereof and for all other purposes, and neither the Company, the Trustee, nor any agent
of the Company or the Trustee shall be affected by any notice to the contrary. The fact of the
holding by any Holder of an Unregistered Security, and the identifying number of such Security and
the date of his holding the same, may be proved by the production of such Security or by a
certificate executed by any trust company, bank, banker or recognized securities dealer wherever
situated satisfactory to the Trustee, if such certificate shall be deemed by the Trustee to be
satisfactory. Each such certificate shall be dated and shall state that on the date thereof a
Security bearing a specified identifying number was deposited with or exhibited to such trust
company, bank, banker or recognized securities dealer by the person named in such certificate. Any
such certificate may be issued in respect of one or more Unregistered Securities specified therein.
The holding by the person named in any such certificate of any Unregistered Securities specified
therein shall be presumed to continue for a period of one year from the date of such certificate
unless at the time of any determination of such holding (1) another certificate bearing a later
date issued in respect of the same Securities shall be produced or (2) the Security specified in
such certificate shall be produced by some other Person, or (3) the Security specified in such
certificate shall have ceased to be outstanding. Subject to Article 7, the fact and date of the
execution of any such instrument and the amount and numbers of Securities held by the Person so
executing such instrument may also be proven in accordance with such reasonable rules and
regulations as may be prescribed by the Trustee or in any other manner which the Trustee may deem
sufficient.

          The Company, the Trustee and any agent of the Company or the Trustee may deem and treat the
person in whose name any Registered Security shall be registered upon the Security Register for
such series as the absolute owner of such Registered Security (whether or not such Registered
Security shall be overdue and notwithstanding any notation of ownership or other writing thereon)
for the purpose of receiving payment of or on account of the Principal of and,

62

 

subject to the provisions of this Indenture, interest on such Registered Security and for all
other purposes; and neither the Company nor the Trustee nor any agent of the Company or the Trustee
shall be affected by any notice to the contrary.

          SECTION 10.6 Rules by Trustee, Paying Agent or Registrar. The Trustee may make
reasonable rules for action by or at a meeting of Holders. The Paying Agent or Registrar may make
reasonable rules for its functions.

          SECTION 10.7 Payment Date Other Than a Business Day. If any date for payment of
Principal or interest on any Security shall not be a Business Day at any place of payment, then
payment of Principal of or interest on such Security, as the case may be, need not be made on such
date, but may be made on the next succeeding Business Day at any place of payment with the same
force and effect as if made on such date and no interest shall accrue in respect of such payment
for the period from and after such date.

          SECTION 10.8 Governing Law. The laws of the State of New York shall govern this
Indenture and the Securities.

          SECTION 10.9 No Adverse Interpretation of Other Agreements. This Indenture may not be
used to interpret another indenture or loan or debt agreement of the Company or any Subsidiary of
the Company. Any such indenture or agreement may not be used to interpret this Indenture.

          SECTION 10.10 Successors. All agreements of the Company in this Indenture and the
Securities shall bind its successors. All agreements of the Trustee in this Indenture shall bind
its successors.

          SECTION 10.11 Duplicate Originals. The parties may sign any number of copies of this
Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.

          SECTION 10.12 Separability. In case any provision in this Indenture or in the
Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

          SECTION 10.13 Table of Contents, Headings. Etc. The Table of Contents and headings of
the Articles and Sections of this Indenture have been inserted for convenience of reference only,
are not to be considered a part hereof and shall in no way modify or restrict any of the terms and
provisions hereof.

63

 

          SECTION 10.14 Incorporators, Stockholders, Officers and Directors of Company Exempt
from Individual Liability. No recourse under or upon any obligation, covenant or agreement
contained in this Indenture or any indenture supplemental hereto, or in any Security or any coupons
appertaining thereto, or because of any indebtedness evidenced thereby, shall be had against any
incorporator, as such or against any past, present or future stockholder, officer, director or
employee, as such, of the Company or of any successor, either directly or through the Company or
any successor, under any rule of law, statute or constitutional provision or by the enforcement of
any assessment or by any legal or equitable proceeding or otherwise, all such liability being
expressly waived and released by the acceptance of the Securities and the coupons appertaining
thereto by the holders thereof and as part of the consideration for the issue of the Securities and
the coupons appertaining thereto.

          SECTION 10.15 Judgment Currency. The Company agrees, to the fullest extent that it
may effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in
any court it is necessary to convert the sum due in respect of the Principal of or interest on the
Securities of any series (the “Required Currency”) into a currency in which a judgment will
be rendered (the “Judgment Currency”), the rate of exchange used shall be the rate at which
in accordance with normal banking procedures the Trustee could purchase in The City of New York the
Required Currency with the Judgment Currency on the day on which final unappealable judgment is
entered, unless such day is not a Business Day, then, to the extent permitted by applicable law,
the rate of exchange used shall be the rate at which in accordance with normal banking procedures
the Trustee could purchase in The city of New York the Required Currency with the Judgment Currency
on the Business Day preceding the day on which final unappealable judgment is entered and (b) its
obligations under this Indenture to make payments in the Required Currency (i) shall not be
discharged or satisfied by any tender, or any recovery pursuant to any judgment (whether or not
entered in accordance with subsection (a)), in any currency other than the Required Currency,
except to the extent that such tender or recovery shall result in the actual receipt, by the payee,
of the full amount of the Required Currency expressed to be payable in respect of such payments,
(ii) shall be enforceable as an alternative or additional cause of action for the purpose of
recovering in the Required Currency the amount, if any, by which such actual receipt shall fall
short of the full amount of the Required Currency so expressed to be payable and (iii) shall not be
affected by judgment being obtained for any other sum due under this Indenture.

64

 

SIGNATURES

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

	 	 	 	 	 	 	 
	(SEAL)	NABISCO, INC.
	
Attest:	
 as the Company	 
	 
	         /s/ Suzanne P. Jenney
 	 
	Name:  	Suzanne P. Jenney  	 
	Title:  	Assistant Secretary
	 
	 	 	 	By: 	         /s/ Francis X. Suozzi

	 	 	 	 	Name: 	Francis X. Suozzi
	 	 	 	 	Title: 	Vice President and Treasurer 
	 
	(SEAL)	
CITIBANK, N.A.

	Attest:	as Trustee	 
	 
	         /s/ Wafaa Orfy
 	 
	Name:  	Wafaa Orfy
 	 
	Title:  	Senior Trust Officer
	 
	 	 	 	By: 	         /s/ Robert T. Kirchner

	 	 	 	 	Name: 	Robert T. Kirchner

	 	 	 	 	Title: 	Vice President 

65

 

	 	 	 	 	 

	 	 	 	 	 	 	 
	STATE OF NEW YORK

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	COUNTY OF NEW YORK

	 	 	)	 	 	 

          BEFORE ME, the undersigned authority, on this 2nd day of June, 1995,
personally appeared Francis X. Suozzi, Vice President and Treasurer of Nabisco,
Inc., a New Jersey corporation, known to me (or proved to me by introduction upon
the oath of a person known to me) to be the person and officer whose name is
subscribed to the foregoing instrument, and acknowledged to me that he/she executed
the same as the act of such corporation for the purposes and consideration herein
expressed and in the capacity therein stated.

          GIVEN UNDER MY HAND AND SEAL THIS 2ND DAY OF JUNE, 1995.

(SEAL)

	 	 	 	 	 
	 	 	 
	 	/s/ So-Ok Kim
 	 
	 	NOTARY PUBLIC, STATE OF NEW YORK 	 
	 	Print Name: So-Ok Kim

Commission Expires: January 18, 1996 	 
	 

	 	 	 	 	 	 	 
	STATE OF NEW YORK

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	COUNTY OF NEW YORK

	 	 	)	 	 	 

          BEFORE ME, the undersigned authority, on this 1st day of June,
1995, personally appeared Robert T. Kirchner, Vice President of Citibank, N.A., a
national association, known to me (or proved to me by introduction upon the oath of
a person known to me) to be the person and officer whose name is subscribed to the
foregoing instrument, and acknowledged to me that he/she executed the same as the
act of such trust for the purposes and consideration herein expressed and in the
capacity therein stated.

          GIVEN UNDER MY HAND AND SEAL THIS 1ST DAY OF JUNE, 1995.

	 	 	 	 	 
	(SEAL)	 	 

	 	 	 	 	 
	 	 	 
	 	        /s/ Jeffrey Berger
 	 
	 	NOTARY PUBLIC, STATE OF NEW YORK  	 
	 	Print Name: Jeffrey Berger

Commission Expires: July 26, 1995 	 

66

 

	 	 	 	 	 

NABISCO, INC.

as the Company

and

CITIBANK, N.A.

as Trustee

 

FIRST SUPPLEMENTAL INDENTURE

Dated as of June 5, 1995

(Supplemental to Indenture Dated as of June 5, 1995)

 

 

 

          FIRST SUPPLEMENTAL INDENTURE dated as of June 5, 1995 between Nabisco, Inc., a New Jersey
corporation (hereinafter called the “Company”) and Citibank, N.A., a national association, as
Trustee (hereinafter called the “Trustee”).

          WHEREAS, the Company executed and delivered an Indenture dated as of June 5, 1995 (hereinafter
called the “Original Indenture”) between the Company and the Trustee providing for the issue from
time to time of its debentures, notes or other evidences of indebtedness in one or more series
(hereinafter called the “Securities”); and

          WHEREAS, Section 9.1(5) of the Original Indenture provides that the Original Indenture may be
amended without the consent of the holders of the Securities in order to establish the form or
forms or terms of Securities of any series or of the coupons appertaining to such Securities
pursuant to Section 2.3 of the Original Indenture; and

          WHEREAS, all conditions and requirements necessary to make this First Supplemental Indenture a
valid and binding instrument in accordance with its terms and the terms of the Original Indenture
have been satisfied.

          NOW, THEREFORE, this First Supplemental Indenture

WITNESSETH:

          That in consideration of the premises and of the mutual covenants herein
contained, and in order to provide for payment of the principal of (and premium, if
any) and

1

 

interest on all of the Securities, according to their tenor, the Company and the Trustee
hereby covenant and agree:

          SECTION 1. For all purposes of this First Supplemental Indenture, except as otherwise
expressly provided or unless the context otherwise requires, all capitalized terms used and
not defined herein that are defined in the Original Indenture shall have the meanings
assigned to them in the Original Indenture.

          SECTION 2. Pursuant to Sections 2.1 and 2.3 of the Original Indenture, the Company shall
issue the following series of Securities, the form of each Security of each series to be
substantially in the form set forth in Exhibits A1 through A13:

          (a) A series of notes under the Original
Indenture designated as the 8.30% Notes due April 15, 1999 (the “8.30% Notes”). The series of
8.30% Notes will be limited to $600,000,000 aggregate principal amount and will mature on April 15,
1999. The 8.30% Notes will be issuable in denominations of $1,000 or integral multiples thereof.
Each 8.30% Note will bear interest from April 15, 1995 at the rate of 8.30% per annum, payable
semi-annually (to holders of record at the close of business on the April 1 or October l
immediately preceding the interest payment date) on April 15 and October 15 of each year beginning
October 15, 1995. The 8.30% Notes will not be redeemable at the option of the Company prior to
maturity. The 8.30% Notes will be issued as Registered Securities only and all or a

2

 

portion of the 8.30% Notes may be issued as one or more Registered Global Securities for which the
Depositary will be the Depository Trust Company.

          (b) A series of notes under the Original
Indenture designated as the 85⁄8% Sinking Fund Debentures due March 15, 2017 (the “85⁄8% Sinking
Fund Debentures”). The series of 85⁄8% Sinking Fund Debentures will be limited to $440,650,000
aggregate principal amount and will mature on March 15, 2017. The 85⁄8% Sinking Fund Debentures
will be issuable in denominations of $1,000 or integral multiples thereof. Each 85⁄8% Sinking Fund
Debenture will bear interest from March 15, 1995 at the rate of 85⁄8% per annum payable semi-annually
(to holders of record at the close of business on the March 1 or September l immediately preceding
the interest payment date) on March 15 and September 15 of each year beginning September 15, 1995,
The 85⁄8% Sinking Fund Debentures will be redeemable at the option of the Company at any time, in
whole or in part, upon 30 days’ notice, at the following redemption prices (which are expressed in
percentages of principal amount), in each case together with accrued interest to the date fixed for
redemption:

3

 

	 	 	 	 	 
	If redeemed during the 12 months	 	 	 	 
	beginning March 15,	 	 	 	 
	 	 	 	 	 
	1995
	 	 	105.175	 
	1996
	 	 	104.744	 
	1997
	 	 	104.313	 
	1998
	 	 	103.881	 
	1999
	 	 	103.450	 
	2000
	 	 	103.019	 
	2001
	 	 	102.588	 
	2002
	 	 	102.156	 
	2003
	 	 	101.725	 
	2004
	 	 	101.294	 
	2005
	 	 	100.863	 
	2006
	 	 	100.431	 
	2007 and thereafter
	 	 	100.000	 

provided, however, that no such optional redemption may be effected prior to March 15,
1997 directly or indirectly from, or in anticipation of, monies borrowed by or for the account
of the Company or any Subsidiary at an interest cost (calculated in accordance with generally
accepted financial practice) of less than 8.75% per annum.

          The 85⁄8% Sinking Fund Debentures will be subject to the following mandatory sinking
fund obligations:

     (i) The mandatory sinking fund payment per annum will be $25,000,000 (which will
be applied to the payment of the 85⁄8% Sinking Fund Debentures at 100% of the principal
amount thereof) together with accrued interest to the date fixed for payment. The
mandatory sinking fund payment will be made on each March 15 from March 15, 1998 to
March 15, 2016 inclusive.

     (ii) The Company will have the non-cumulative right to make optional sinking
fund payments in each year set forth above of up to an additional $25,000,000.

     (iii) The Company will have the right to deliver 85⁄8% Sinking Fund Debentures
in lieu of cash to satisfy any mandatory sinking fund payment or optional sinking fund
payment in accordance with Section 3.5 of the Original Indenture.

4

 

          The 85⁄8% Sinking Fund Debentures will be issued as Registered Securities only and all or a
portion of the 85⁄8% Sinking Fund Debentures may be issued as one or more Registered Global
Securities for which the Depositary will be the Depository Trust Company.

          The Company will consummate by December 15, 2002 an offer for all then outstanding 85⁄8% Sinking
Fund Debentures. Such offer will be made in cash at a price equal to the principal amount of such
debentures plus accrued and unpaid interest as of the date of consummation of the offer. The
Company will comply in all material respects with all applicable laws in making and consummating
such offer.

          (c) A series of notes under the Original Indenture designated as the 8% Notes due January 15,
2000 (the “8% Notes”). The series of 8% Notes will be limited to $750,000,000 aggregate principal
amount and will mature on January 15, 2000. The 8% Notes will be issuable in denominations of
$1,000 or integral multiples thereof. Each 8% Note will bear interest from January 15, 1995 at the
rate of 8% per annum, payable semi-annually (to holders of record at the close of business on the
January 1 or July 1 immediately preceding the interest payment date) on January 15 and July 15 of
each year beginning July 15, 1995. The 8% Notes will not be redeemable at the option of the
Company prior to maturity. The 8% Notes will be issued only as Registered Global Securities,
without coupons, held by the

5

 

Depositary, which will be the Depository Trust Company, and will not be issued in definitive
registered form except pursuant to Section 2.7 of the Original Indenture.

          (d) A series of notes under the Original Indenture designated as the 6.80% Notes due September
1, 2001 (the “6.80% Notes”). The series of 6.80% Notes will be limited to $100,000,000 aggregate
principal amount and will mature on September l, 2001. The 6.80% Notes will be issuable in
denominations of $100,000 or any amount in excess thereof which is an integral multiple of $1,000.
Each 6.80% Note will bear interest from March 1, 1995 at the rate of 6.80% per annum, payable
semi-annually (to holders of record at the close of business on the day 15 calendar days
immediately preceding the interest payment date) on March 1 and September 1 of each year beginning
September l, 1995.

          The 6.80% Notes will not be redeemable at the option of the Company prior to maturity. The
holder of any 6.80% Note, at the holder’s option, may require the Company to repay such Note in
whole or in part in increments of $1,000 on September 2, 1997 at a repayment rate equal to 100% of
the principal amount thereof, together with accrued interest to such date. Such holder must
exercise its right to repayment on or after June 3, 1997 but not later than August 2, 1997. In
order for such a 6.80% Note to be repaid, the Paying Agent must receive, at its principal corporate
trust office in the Borough of Manhattan, The City

6

 

of New York, at least 15 days but not more than 30 days prior to the repayment date (i) the 6.80%
Note with the form entitled “Option to Elect Repayment” on the reverse of the Note duly completed
or (ii) a telegram, facsimile transmission or a letter from a member of a national securities
exchange, or the National Association of Securities Dealers, Inc. or a commercial bank or trust
company in the United States setting forth the name of the holder of the Note, the principal amount
of the Note, the principal amount of the Note to be repaid, the certificate number of the Note, a
statement that the option to elect repayment is being exercised thereby and a guarantee that the
Note to be repaid, together with the duly completed form entitled “Option to Elect Repayment” on
the reverse of the Note, will be received by the Paying Agent not later than the fifth Business Day
after the date of such telegram, facsimile transmission or letter; provided,
however, that such telegram, facsimile transmission or letter shall only be effective if
such Note and form duly completed are received by the Paying Agent by such fifth Business Day.
Exercise of the repayment option by the holder of a 6.80% Note will be irrevocable. In the event
that the repayment option is exercised by the holder of a 6.80% Note for less than the entire
principal amount of the Note, a new Note or Notes for the amount of the unpaid portion of such Note
shall be issued in the name of the holder of the Note upon its cancellation; provided that
the principal amount of such

7

 

Note remaining outstanding after repayment must be an authorized denomination. As long as the
6.80% Notes remain Registered Global Securities, the Depositary or its nominee will be the holder
of such Note and, therefore, will be the only entity that can exercise or designate a proxy to
exercise a right to repayment with respect to a particular Note.

          The 6.80% Notes will be issued only as Registered Global Securities, without coupons, held by
the Depositary, which will be the Depository Trust Company, and will not be issued in definitive
registered form except pursuant to Section 2.7 of the Original Indenture.

          (e) A series of notes under the Original Indenture designated as the 6.11% Notes due August 19, 1996 (the “6.11% Notes”). The series of
6.11% Notes will be limited to $5,000,000 aggregate principal amount and will mature on August 19,
1996. The 6.11% Notes will be issuable in denominations of $100,000 or any amount in excess
thereof which is an integral multiple of $1,000. Each 6.11% Note will bear interest from February
1, 1995 at the rate of 6.11% per annum, payable semi-annually (to holders of record at the close of
business on the day 15 calendar days immediately preceding the interest payment date) on February 1
and August 1 of each year beginning August 1, 1995. The 6.11% Notes will not be redeemable at the
option of the Company prior to maturity. The 6.11% Notes will be issued only as Registered Global
Securities, without coupons, held

8

 

by the Depositary, which will be the Depository Trust Company, and will not be issued in
definitive registered form except pursuant to Section 2.7 of the Original Indenture.

          (f) A series of notes under the Original Indenture designated as the 6.88% Notes due January 28, 1997 (the “6.88% Notes”). The series of
6.88% Notes will be limited to $5,000,000 aggregate principal amount and will mature on January 28,
1997. The 6.88% Notes will be issuable in denominations of $100,000 or any amount in excess
thereof which is an integral multiple of $1,000. Each 6.88% Note will bear interest from February
1, 1995 at the rate of 6.88% per annum, payable semi-annually (to holders of record at the close of
business on the day 15 calendar days immediately preceding the interest payment date) on February 1
and August 1 of each year beginning August 1, 1995. The 6.88% Notes will not be redeemable at the
option of the Company prior to maturity. The 6.88% Notes will be issued only as Registered Global
Securities, without coupons, held by the Depositary, which will be the Depository Trust Company,
and will not be issued in definitive registered form except pursuant to Section 2.7 of the Original
Indenture.

          (g) A series of notes under the Original Indenture designated as the 6.77% Notes due August 11, 1997 (the “6.77% Notes”). The series of
6.77% Notes will be limited to $1,000,000 aggregate principal amount and will

9

 

mature on August 11, 1997. The 6.77% Notes will be issuable in denominations of $100,000 or any
amount in excess thereof which is an integral multiple of $1,000. Each 6.77% Note will bear
interest from February 1, 1995 at the rate of 6.77% per annum, payable semi-annually (to holders of
records at the close of business on the day 15 calendar days immediately preceding the interest
payment date) on February 1 and August l of each year beginning August l, 1995. The 6.77% Notes
will not be redeemable at the option of the Company prior to maturity. The 6.77% Notes will be
issued only as Registered Global Securities, without coupons, held by the Depositary, which will be
the Depository Trust Company, and will not be issued in definitive registered form except pursuant
to Section 2.7 of the Original Indenture.

          (h) A
series of notes under the Original Indenture designated as the 6.75%
Notes due August 11, 1997 (the “6.75% Notes”). The
series of 6.75% Notes will be limited to $1,000,000 aggregate principal amount and will mature on
August 11, 1997. The 6.75% Notes will be issuable in denominations of $100,000 or any amount in
excess thereof which is an integral multiple of $1,000. Each 6.75% Note will bear interest from
February 1, 1995 at the rate of 6.75% per annum, payable semi-annually (to holders of record at the
close of business on the day 15 calendar days immediately preceding the interest payment date) on
February 1 and August 1 of each year beginning August 1, 1995. The

10

 

6.75% Notes will not be redeemable at the option of the Company prior to maturity. The 6.75% Notes
will be issued only as Registered Global Securities, without coupons, held by the Depositary, which
will be the Depository Trust Company, and will not be issued in definitive registered form except
pursuant to Section 2.7 of the Original Indenture.

          (i) A series of notes under the Original Indenture designated as the 7.20% Notes due January 22, 1998 (the “7.20% Notes”). The series of
7.20% Notes will be limited to $5,000,000 aggregate principal amount and the 7.20% Notes will
mature on January 22, 1998. The 7.20% Notes will be issuable in denominations of $100,000 or any
amount in excess thereof which is an integral multiple of $1,000. Each 7.20% Note will bear
interest from February 1, 1995 at the rate of 7.20% per annum, payable semi-annually (to holders of
record at the close of business on the day 15 calendar days immediately preceding the interest
payment date) on February 1 and August 1 of each year beginning August 1, 1995. The 7.20% Notes
will not be redeemable at the option of the Company prior to maturity. The 7.20% Notes will be
issued only as Registered Global Securities, without coupons, held by the Depositary, which will be
the Depository Trust Company, and will not be issued in definitive registered form except pursuant
to Section 2.7 of the Original Indenture.

11

 

          (j) A series of notes under the Original Indenture designated as the 7.64% Notes due August 1, 2001 (the “7.64% Notes”). The series of
7.64% Notes will be limited to $1,500,000 aggregate principal amount and the 7.64% Notes will
mature on August 1, 2001. The 7.64% Notes will be issuable in denominations of $100,000 or any
amount in excess thereof which is an integral multiple of $1,000. Each 7.64% Note will bear
interest from February 1, 1995 at the rate of 7.64% per annum, payable semi-annually (to holders of
record at the close of business on the day 15 calendar days immediately preceding the interest
payment date) on February 1 and August 1 of each year beginning August l, 1995. The 7.64% Notes
will not be redeemable at the option of the Company prior to maturity. The 7.64% Notes will be
issued only as Registered Global Securities, without coupons, held by the Depositary, which will be
the Depository Trust Company, and will not be issued in definitive registered form except pursuant
to Section 2.7 of the Original Indenture.

          (k) A series of notes under the Original Indenture designated as the 7.375% Notes due August 1, 2001 (the “7.375% Notes”). The series of
7.375% Notes will be limited to $2,500,000 aggregate principal amount and will mature on August 1,
2001. The 7.375% Notes will be issuable in denominations of $100,000 or any amount in excess
thereof which is an integral multiple of $1,000. Each 7.375% Note will bear interest from February
1, 1995 at the rate of

12

 

7.375% per annum, payable semi-annually (to holders of record at the close of business on the day
15 calendar days immediately preceding the interest payment date) on February 1 and August 1 of
each year beginning August 1, 1995. The 7.375% Notes will not be redeemable at the option of the
company prior to maturity. The 7.375% Notes will be issued only as Registered Global Securities,
without coupons, held by the Depositary, which will be the Depository Trust Company, and will not
be issued in definitive registered form except pursuant to Section 2.7 of the Original Indenture.

          (l) A series of notes under the Original Indenture designated as the 7.63% Notes due August 13, 2001 (the “7.63% Notes”). The series of
7.63% Notes will be limited to $1,000,000 aggregate principal amount and will mature on August 13,
2001. The 7.63% Notes will be issuable in denominations of $100,000 or any amount in excess
thereof which is an integral multiple of $1,000. Each 7.63% Note will bear interest from February
1, 1995 at the rate of 7.63% per annum, payable semi-annually (to holders of record at the close of
business on the day 15 calendar days immediately preceding the interest payment date) on February 1
and August 1 of each year beginning August 1, 1995. The 7.63% Notes will not be redeemable at the
option of the Company prior to maturity. The 7.63% Notes will be issued only as Registered Global
Securities, without coupons, held by the Depositary, which will be the Depository Trust

13

 

Company, and will not be issued in definitive registered form except pursuant to Section 2.7
of the Original Indenture.

          (m) A series of notes under the Original Indenture designated as the 7.86% Notes due
September 4, 2001 (the “7.86% Notes”). The series of 7.86% Notes will be limited to $5,000,000
aggregate principal amount and will mature on September 4, 2001. The 7.86% Notes will be issuable
in denominations of $100,000 or any amount in excess thereof which is an integral multiple of
$1,000. Each 7.86% Note will bear interest from February 1, 1995 at the rate of 7.86% per annum,
payable semi-annually (to holders of record at the close of business on the day 15 calendar days
immediately preceding the interest payment date) on February 1 and August 1 of each year beginning
August 1, 1995. The 7.86% Notes will not be redeemable at the option of the Company prior to
maturity. The 7.63% Notes will be issued only as Registered Global Securities, without coupons,
held by the Depositary, which will be the Depository Trust Company, and will not be issued in
definitive registered form except pursuant to Section 2.7 of the Original Indenture.

          SECTION 3. Nothing in this First Supplemental Indenture, expressed or implied, is intended
or shall be construed to confer upon or give to any person or corporation, other than the parties
hereto and the holders of the Securities any right, remedy or claim under or by

14

 

reason of this First Supplemental Indenture or any covenant, stipulation, promise or agreement
contained herein; all the covenants, stipulations, promises and agreements contained herein being
for the sole and exclusive benefit of the parties hereto and their successors, and the holders from
time to time of the Securities.

          SECTION 4. This First Supplemental Indenture shall form a part of the Original Indenture for
all purposes and every holder of Securities heretofore or hereafter authenticated and delivered
under the Original Indenture shall be bound hereby. The Original Indenture as supplemented by this
First Supplemental Indenture is hereby in all respects ratified and
confirmed.

          SECTION 5. The Trustee, for itself and its successor or successors, accepts the trust of the
Original Indenture as amended by this First Supplemental Indenture, and agrees to perform the same,
but only upon the terms and conditions set forth in the Original Indenture, including the terms and
provisions defining and limiting the liabilities and responsibilities of the Trustee, which terms
and provisions shall in like manner define and limit its liabilities and responsibilities in the
performance of the trust created by the Original Indenture, and, without limiting the generality of
the foregoing, the recitals contained herein shall be taken as the statements of the Company, and
the Trustee assumes no responsibility for their correctness. The Trustee makes no representations
as to the

15

 

validity or sufficiency of this First Supplemental Indenture other than as to the validity of its
execution and delivery by the Trustee.

          SECTION 6. This First Supplemental Indenture may be executed in any number of counterparts,
each of which shall be an original; but such counterparts shall together constitute but one and the
same instrument.

16

 

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

	 	 	 
	(SEAL) 

Attest:

	 	NABISCO, INC.

as the Company
	 
	 	 
	/s/ Suzanne P. Jenney
 

Name: Suzanne P. Jenney

	 	 
	Title:   Assistant Secretary
	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Francis X. Suozzi
 	 
	 	 	Name:  	Francis X. Suozzi  	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

	 	 	 
	(SEAL) 

Attest:

	 	CITIBANK, N.A.

as Trustee
	 
	 	 
	/s/ Wafaa Orfy 
	 	 
	 
	 	 
	Name: Wafaa Orfy 

Title:   Senior Trust Officer
	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                      /s/ Robert T. Kirchner
 	 
	 	 	Name:  	Robert T. Kirchner  	 
	 	 	Title:  	Vice President 	 

17

 

	 	 	 	 	 

	 	 	 
	STATE OF NEW YORK 

COUNTY OF NEW YORK

	 	)

)

)

          BEFORE ME, the undersigned authority, on this 2nd day of June, 1995, personally appeared
Francis X. Suozzi, Vice President and Treasurer of Nabisco, Inc., a New Jersey corporation, known
to me (or proved to me by introduction upon the oath of a person known to me) to be the person and
officer whose name is subscribed to the foregoing instrument, and acknowledged to me that he/she
executed the same as the act of such corporation for the purposes and consideration herein
expressed and in the capacity therein stated.

          GIVEN UNDER MY HAND AND SEAL THIS 2ND DAY OF JUNE, 1995.

(SEAL)

	 	 	 	 	 
	 	 	 
	 	       /s/ So-Ok Kim 	 
	 	NOTARY PUBLIC, STATE OF NEW YORK 	 
	 	Print Name: So-Ok Kim

Commission Expires: January 18, 1996 	 

	 	 	 	 	 

	 	 	 
	STATE OF NEW YORK 

COUNTY OF NEW YORK

	 	)

)

)

          BEFORE ME, the undersigned authority, on this 1st day of June, 1995, personally appeared
Robert T. Kirchner, Vice President of Citibank, N.A., a national association, known to me (or
proved to me by introduction upon the oath of a person known to me) to be the person and officer
whose name is subscribed to the foregoing instrument, and acknowledged to me that he/she executed
the same as the act of such trust for the purposes and consideration herein expressed and in the
capacity therein stated.

          GIVEN UNDER MY HAND AND SEAL THIS 1ST DAY OF JUNE, 1995.

(SEAL)

	 	 	 	 	 
	 	 	 
	 	                               /s/ Jeffrey Berger
 	 
	 	NOTARY PUBLIC, STATE OF NEW YORK  	 
	 	Print Name: Jeffrey Berger

Commission Expires: July 26, 1995 	 
	 

18

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