Document:

Exhibit 10.1

Exhibit
10.1

 

CREDIT AGREEMENT

among

CONSOLIDATED GRAPHICS, INC.

as Borrower,

THE GUARANTORS PARTIES HERETO,

THE LENDERS PARTIES HERETO

and

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

J.P. MORGAN SECURITIES, INC.,

as Co-Lead Arranger and Sole Book Runner

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Co-Lead Arranger,

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Syndication Agent,

Dated as of August 20, 2010

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	Section 1.1 Defined Terms
	 	 	1	 
	Section 1.2 Other Definitional Provisions
	 	 	23	 
	Section 1.3 Accounting Terms
	 	 	23	 
	 
	 	 	 	 
	ARTICLE II THE LOANS; AMOUNT AND TERMS
	 	 	24	 
	Section 2.1 Revolving Loans
	 	 	24	 
	Section 2.2 Swingline Loan Subfacility
	 	 	26	 
	Section 2.3 Letter of Credit Subfacility
	 	 	27	 
	Section 2.4 Fees
	 	 	31	 
	Section 2.5 Commitment Reductions
	 	 	31	 
	Section 2.6 Prepayments
	 	 	32	 
	Section 2.7 Minimum Principal Amount of Tranches
	 	 	33	 
	Section 2.8 Default Rate and Payment Dates
	 	 	33	 
	Section 2.9 Conversion Options
	 	 	33	 
	Section 2.10 Computation of Interest and Fees
	 	 	34	 
	Section 2.11 Pro Rata Treatment and Payments
	 	 	34	 
	Section 2.12 Non-Receipt of Funds by the Administrative Agent
	 	 	36	 
	Section 2.13 Inability to Determine Interest Rate
	 	 	37	 
	Section 2.14 Illegality
	 	 	37	 
	Section 2.15 Requirements of Law
	 	 	38	 
	Section 2.16 Indemnity
	 	 	39	 
	Section 2.17 Taxes
	 	 	40	 
	Section 2.18 Indemnification; Nature of Issuing Lender’s Duties
	 	 	42	 
	Section 2.19 Defaulting Lender
	 	 	43	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES
	 	 	45	 
	Section 3.1 Financial Condition
	 	 	45	 
	Section 3.2 No Change
	 	 	45	 
	Section 3.3 Corporate Existence; Compliance with Law
	 	 	46	 
	Section 3.4 Corporate Power; Authorization; Enforceable Obligations
	 	 	46	 
	Section 3.5 No Legal Bar; No Default
	 	 	46	 
	Section 3.6 No Material Litigation
	 	 	47	 
	Section 3.7 Investment Company Act
	 	 	47	 
	Section 3.8 Margin Regulations
	 	 	47	 
	Section 3.9 ERISA
	 	 	47	 
	Section 3.10 Environmental Matters
	 	 	48	 
	Section 3.11 Purpose of Loans
	 	 	49	 
	Section 3.12 Subsidiaries
	 	 	49	 
	Section 3.13 Ownership
	 	 	49	 
	Section 3.14 Indebtedness
	 	 	49	 
	Section 3.15 Taxes
	 	 	49	 
	Section 3.16 Intellectual Property
	 	 	50	 
	Section 3.17 Solvency
	 	 	50	 

 

i

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	Section 3.18 Investments
	 	 	50	 
	Section 3.19 Location of Collateral
	 	 	50	 
	Section 3.20 No Burdensome Restrictions
	 	 	51	 
	Section 3.21 Brokers’ Fees
	 	 	51	 
	Section 3.22 Labor Matters
	 	 	51	 
	Section 3.23 Accuracy and Completeness of Information
	 	 	51	 
	Section 3.24 Material Contracts
	 	 	51	 
	Section 3.25 Security Documents
	 	 	51	 
	Section 3.26 Insurance
	 	 	52	 
	 
	 	 	 	 
	ARTICLE IV CONDITIONS PRECEDENT
	 	 	52	 
	Section 4.1 Conditions to Closing Date and Initial Revolving Loans
	 	 	52	 
	Section 4.2 Conditions to All Extensions of Credit
	 	 	56	 
	 
	 	 	 	 
	ARTICLE V AFFIRMATIVE COVENANTS
	 	 	57	 
	Section 5.1 Financial Statements
	 	 	57	 
	Section 5.2 Certificates; Other Information
	 	 	58	 
	Section 5.3 Payment of Obligations
	 	 	61	 
	Section 5.4 Conduct of Business and Maintenance of Existence
	 	 	61	 
	Section 5.5 Maintenance of Property; Insurance
	 	 	61	 
	Section 5.6 Inspection of Property; Books and Records; Discussions
	 	 	62	 
	Section 5.7 Notices
	 	 	62	 
	Section 5.8 Environmental Laws
	 	 	63	 
	Section 5.9 Financial Covenants
	 	 	64	 
	Section 5.10 Additional Guarantors
	 	 	64	 
	Section 5.11 Compliance with Law
	 	 	64	 
	Section 5.12 Pledged Assets
	 	 	65	 
	 
	 	 	 	 
	ARTICLE VI NEGATIVE COVENANTS
	 	 	65	 
	Section 6.1 Indebtedness
	 	 	65	 
	Section 6.2 Liens
	 	 	67	 
	Section 6.3 Guaranty Obligations
	 	 	67	 
	Section 6.4 Canadian Credit Agreement
	 	 	67	 
	Section 6.5 Nature of Business
	 	 	68	 
	Section 6.6 Consolidation, Merger, Acquisitions, Sale or Purchase of Assets, etc.
	 	 	68	 
	Section 6.7 Advances, Investments and Loans
	 	 	69	 
	Section 6.8 Transactions with Affiliates
	 	 	69	 
	Section 6.9 Ownership of Subsidiaries; Restrictions
	 	 	70	 
	Section 6.10 Fiscal Year; Organizational Documents; Material Contracts
	 	 	70	 
	Section 6.11 Limitation on Restricted Actions
	 	 	70	 
	Section 6.12 Restricted Payments
	 	 	71	 
	Section 6.13 Prepayments of Indebtedness, etc.
	 	 	71	 
	Section 6.14 Sale Leasebacks
	 	 	71	 
	Section 6.15 No Further Negative Pledges
	 	 	71	 
	 
	 	 	 	 
	ARTICLE VII EVENTS OF DEFAULT
	 	 	72	 
	Section 7.1 Events of Default
	 	 	72	 
	Section 7.2 Acceleration; Remedies
	 	 	74	 

 

ii

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE VIII THE ADMINISTRATIVE AGENT
	 	 	74	 
	Section 8.1 Appointment; Nature of Relationship
	 	 	74	 
	Section 8.2 Powers
	 	 	75	 
	Section 8.3 General Immunity
	 	 	75	 
	Section 8.4 No Responsibility for Loans, Recitals, etc.
	 	 	75	 
	Section 8.5 Acting on Instructions of Lenders
	 	 	76	 
	Section 8.6 Employment of Agents and Counsel
	 	 	76	 
	Section 8.7 Reliance on Documents; Counsel
	 	 	76	 
	Section 8.8 Administrative Agent’s Reimbursement and Indemnification
	 	 	77	 
	Section 8.9 Notice of Default
	 	 	77	 
	Section 8.10 Rights as a Lender
	 	 	77	 
	Section 8.11 Lender Credit Decision
	 	 	78	 
	Section 8.12 Successor Administrative Agent
	 	 	78	 
	Section 8.13 Administrative Agent and Arranger Fees
	 	 	79	 
	Section 8.14 Delegation to Affiliates
	 	 	79	 
	Section 8.15 Execution of Collateral Documents
	 	 	79	 
	Section 8.16 Collateral Releases
	 	 	79	 
	Section 8.17 Syndication Agent
	 	 	79	 
	 
	 	 	 	 
	ARTICLE IX GUARANTY
	 	 	80	 
	Section 9.1 The Guaranty
	 	 	80	 
	Section 9.2 Bankruptcy
	 	 	80	 
	Section 9.3 Nature of Liability
	 	 	80	 
	Section 9.4 Independent Obligation
	 	 	81	 
	Section 9.5 Authorization
	 	 	81	 
	Section 9.6 Reliance
	 	 	81	 
	Section 9.7 Waiver
	 	 	81	 
	Section 9.8 Limitation on Enforcement
	 	 	82	 
	Section 9.9 Confirmation of Payment
	 	 	83	 
	 
	 	 	 	 
	ARTICLE X BENEFIT OF AGREEMENT; ASSIGNMENT; PARTICIPATIONS
	 	 	83	 
	Section 10.1 Successors and Assigns
	 	 	83	 
	Section 10.2 Participations
	 	 	84	 
	Section 10.3 Assignments
	 	 	84	 
	Section 10.4 Dissemination of Information
	 	 	86	 
	Section 10.5 Tax Treatment
	 	 	86	 
	 
	 	 	 	 
	ARTICLE XI MISCELLANEOUS
	 	 	86	 
	Section 11.1 Amendments, Waivers and Release of Collateral
	 	 	86	 
	Section 11.2 Notices
	 	 	88	 
	Section 11.3 No Waiver; Cumulative Remedies
	 	 	89	 
	Section 11.4 Survival of Representations and Warranties
	 	 	89	 
	Section 11.5 Payment of Expenses and Taxes
	 	 	90	 
	Section 11.6 Adjustments; Set-off
	 	 	90	 
	Section 11.7 Table of Contents and Section Headings
	 	 	91	 
	Section 11.8 Counterparts
	 	 	91	 
	Section 11.9 Effectiveness
	 	 	92	 
	Section 11.10 Severability
	 	 	92	 

 

iii

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	Section 11.11 Integration
	 	 	92	 
	Section 11.12 Governing Law
	 	 	92	 
	Section 11.13 Consent to Jurisdiction and Service of Process
	 	 	92	 
	Section 11.14 Arbitration
	 	 	93	 
	Section 11.15 Confidentiality
	 	 	94	 
	Section 11.16 Acknowledgments
	 	 	95	 
	Section 11.17 Waivers of Jury Trial
	 	 	95	 
	Section 11.18 Interest
	 	 	95	 
	Section 11.19 Amendment and Restatement; Renewal Notes
	 	 	96	 
	Section 11.20 Special Provisions Concerning LOC Documents
	 	 	97	 
	Section 11.21 Consent to Canadian Credit Facility
	 	 	97	 

 

iv

 

	 	 	 
	Schedules	 	 
	 
	Schedule 1.1(a)

	 	Account Designation Letter
	Schedule 1.1(b)

	 	Liens
	Schedule 2.1(a)

	 	Schedule of Lenders and Commitments
	Schedule 2.1(b)(i)

	 	Form of Notice of Borrowing
	Schedule 2.1(e)

	 	Form of Revolving Note
	Schedule 2.2(d)

	 	Form of Swingline Note
	Schedule 2.9

	 	Form of Notice of Conversion/Extension
	Schedule 2.17

	 	Section 2.17 Certificate
	Schedule 3.3

	 	Corporate Existence
	Schedule 3.6

	 	Litigation
	Schedule 3.9

	 	ERISA
	Schedule 3.12

	 	Subsidiaries
	Schedule 3.16

	 	Intellectual Property
	Schedule 3.19(a)

	 	Location of Collateral
	Schedule 3.19(b)

	 	Chief Executive Offices
	Schedule 3.22

	 	Labor Matters
	Schedule 3.24

	 	Material Contracts
	Schedule 4.1(h)

	 	Form of Solvency Certificate
	Schedule 5.5(b)

	 	Insurance
	Schedule 5.10

	 	Form of Joinder Agreement
	Schedule 6.1(b)

	 	Indebtedness
	Schedule 10.3

	 	Form of Assignment and Assumption Agreement
	Schedule 11.2

	 	Schedule of Lenders’ Lending Offices
	Schedule 11.19

	 	Schedule of Existing Letters of Credit

 

v

 

CREDIT AGREEMENT

CREDIT AGREEMENT, dated as of August 20, 2010, among CONSOLIDATED GRAPHICS, INC., a Texas
corporation (the “Borrower”), those Domestic Subsidiaries of the Borrower listed on the
signature pages hereto and as may from time to time become a party hereto, (collectively the
“Guarantors” and individually, a “Guarantor”), the several banks and other
financial institutions as may from time to time become parties to this Agreement (collectively, the
“Lenders” and individually, a “Lender”), and JPMORGAN CHASE BANK, N.A., a national
banking association with its main office in Chicago, Illinois, as Administrative Agent for the
Lenders hereunder (in such capacity, the “Administrative Agent”).

W
I T N E
S S E T
H:

WHEREAS, the Borrower has requested that the Lenders make loans and other financial
accommodations to the Borrower in the amount of up to $285,000,000, as more particularly described
herein;

WHEREAS, the Lenders have agreed to make such loans and other financial accommodations to the
Borrower on the terms and conditions contained herein;

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein,
the parties hereto hereby agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1 Defined Terms.

As used in this Agreement, terms defined in the preamble to this Agreement have the meanings
therein indicated, and the following terms have the following meanings:

“Account Designation Letter” shall mean the Notice of Account Designation Letter dated
the Closing Date from the Borrower to the Administrative Agent substantially in the form attached
hereto as Schedule 1.1(a).

“Additional Credit Party” shall mean each Person that becomes a Guarantor by execution
of a Joinder Agreement in accordance with Section 5.10.

“Administrative Agent” shall have the meaning set forth in the first paragraph of this
Agreement and any successors in such capacity.

“Affiliate” shall mean as to any Person, any other Person (excluding any Subsidiary)
which, directly or indirectly, is in control of, is controlled by, or is under common control with,
such Person. For purposes of this definition, a Person shall be deemed to be “controlled by” a
Person if such Person possesses, directly or indirectly, power either (a) to vote 10% or more of
the securities having ordinary voting power for the election of directors of such Person or (b) to
direct or cause the direction of the management and policies of such Person whether by
contract or otherwise.

 

 

 

“Agreement” shall mean this Credit Agreement, as amended, modified or supplemented
from time to time in accordance with its terms.

“Alternate Base Rate” means, for any day, a rate of interest per annum equal to the
highest of (i) the Prime Rate for such day, (ii) the sum of the LIBOR Rate for a one-month Interest
Period on such day plus one and one-half percent (1-1/2%) and (iii) the sum of the Federal
Funds Effective Rate for such day plus 1/2% per annum.

“Alternate Base Rate Loans” shall mean Loans that bear interest at an interest rate
based on the Alternate Base Rate.

“Applicable Percentage” shall mean, for any day, the rate per annum set forth below
opposite the applicable Level then in effect, it being understood that the Applicable Percentage
for (i) Revolving Loans which are Alternate Base Rate Loans shall be the percentage set forth under
the column “Alternate Base Rate Margin for Revolving Loans”, (ii) Revolving Loans which are LIBOR
Rate Loans shall be the percentage set forth under the column “LIBOR Rate Margin for Revolving
Loans and Letter of Credit Fee”, (iii) the Commitment Fee shall be the percentage set forth under
the column “Commitment Fee” and (iv) the Letter of Credit Fee shall be the percentage set forth
under the column “LIBOR Rate Margin for Revolving Loans and Letter of Credit Fee”:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	LIBOR Rate Margin	 	 	 	 
	 	 	 	 	 	 	Alternate Base Rate	 	 	for Revolving Loans	 	 	 	 
	 	 	Leverage	 	Margin for	 	 	and Letter of Credit	 	 	Commitment	 
	Level	 	Ratio	 	Revolving Loans	 	 	Fee	 	 	Fee	 
	I
	 	< 1.00 to 1.0	 	 	0.00	%	 	 	1.375	%	 	 	0.25	%
	II
	 	< 1.50 to 1.0 but	 	 	0.125	%	 	 	1.625	%	 	 	0.25	%
	 
	 	3 1.00 to 1.0	 	 	 	 	 	 	 	 	 	 	 	 
	III
	 	< 2.00 to 1.0 but	 	 	0.375	%	 	 	1.875	%	 	 	0.25	%
	 
	 	3 1.50 to 1.0	 	 	 	 	 	 	 	 	 	 	 	 
	IV
	 	< 2.50 to 1.0 but	 	 	0.625	%	 	 	2.125	%	 	 	0.375	%
	 
	 	3 2.00 to 1.0	 	 	 	 	 	 	 	 	 	 	 	 
	V
	 	< 3.00 to 1.0 but	 	 	0.875	%	 	 	2.375	%	 	 	0.375	%
	 
	 	3 2.50 to 1.0	 	 	 	 	 	 	 	 	 	 	 	 
	VI
	 	3 3.00 to 1.0	 	 	1.25	%	 	 	2.75	%	 	 	0.50	%

 

2

 

The Applicable Percentage shall, in each case, be determined and adjusted quarterly on the date
five (5) Business Days after the date on which the Administrative Agent has received from the
Borrower the quarterly financial information and certifications required to be delivered to the
Administrative Agent and the Lenders in accordance with the provisions of Sections 5.1(b)
and 5.2(b) (each an “Interest Determination Date”). Such Applicable Percentage
shall be effective
from such Interest Determination Date until the next such Interest Determination Date. The initial
Applicable Percentages on the Closing Date shall be based on Level II until the first Interest
Determination Date occurring after the Closing Date. After the Closing Date, if the Borrower shall
fail to provide the quarterly financial information and certifications in accordance with the
provisions of Sections 5.1(b) and 5.2(b), the Applicable Percentage from such
Interest Determination Date shall, on the date five (5) Business Days after the date by which the
Borrower was so required to provide such financial information and certifications to the
Administrative Agent and the Lenders, be based on Level VI until such time as such information and
certifications are provided, whereupon the Level shall be determined by the then current Leverage
Ratio.

“Approved Bank” shall have the meaning set forth in the definition of “Cash
Equivalents.”

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

“Arranger” shall mean J.P. Morgan Securities, Inc.

“Asset Disposition” shall mean the disposition of any or all of the assets (including,
without limitation, the Capital Stock of a Subsidiary or any ownership interest in a joint venture)
of any Credit Party or any Subsidiary whether by sale, lease, transfer or otherwise. The term
“Asset Disposition” shall not include (i) Specified Sales, (ii) the sale, lease or transfer of
assets permitted by Section 6.6(a)(iii), (iv), (v) or (vi) hereof,
or (iii) any Equity Issuance.

“Bankruptcy Code” shall mean the Bankruptcy Code in Title 11 of the United States
Code, as amended, modified, succeeded or replaced from time to time.

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

“Borrower” shall have the meaning set forth in the first paragraph of this Agreement.

“Borrowing Date” shall mean, in respect of any Loan, the date such Loan is made.

“Business” shall have the meaning set forth in Section 3.10.

 

3

 

“Business Day” shall mean a day other than a Saturday, Sunday or other day on which
commercial banks in Houston, Texas are authorized or required by law to close; provided,
however, that when used in connection with a rate determination, borrowing or payment in
respect of a LIBOR Rate Loan, the term “Business Day” shall also exclude any day on which banks in
London, England are not open for dealings in Dollar deposits in the London interbank market.

“Canadian Credit Agreement” shall mean that certain Credit Agreement dated
concurrently herewith executed by and among Annan & Bird Lithographers, Inc., a New Brunswick
corporation, JPMorgan Chase Bank, N.A., Toronto Branch, as Administrative Agent, and certain
financial institutions therein named and all amendments, supplements, restatements or replacements
to any of the foregoing from time to time.

“Capital Lease” shall mean any lease of property, real or personal, the obligations
with respect to which are required to be capitalized on a balance sheet of the lessee in accordance
with GAAP.

“Capital Lease Obligations” shall mean the capitalized lease obligations relating to a
Capital Lease determined in accordance with GAAP.

“Capital Stock” shall mean (i) in the case of a corporation, capital stock, (ii) in
the case of an association or business entity, any and all shares, interests, participations,
rights or other equivalents (however designated) of capital stock, (iii) in the case of a
partnership, partnership interests (whether general or limited), (iv) in the case of a limited
liability company, membership interests and (v) any other 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 Equivalents” shall mean (i) securities issued or directly and fully guaranteed
or insured by the United States of America or any agency or instrumentality thereof (provided that
the full faith and credit of the United States of America is pledged in support thereof) having
maturities of not more than twelve months from the date of acquisition (“Government
Obligations”), (ii) U.S. dollar denominated (or foreign currency fully hedged) time deposits,
certificates of deposit, Eurodollar time deposits and Eurodollar certificates of deposit of (y) any
domestic commercial bank of recognized standing having capital and surplus in excess of
$250,000,000 or (z) any bank whose short-term commercial paper rating from S&P is at least A-1 or
the equivalent thereof or from Moody’s is at least P-1 or the equivalent thereof (any such bank
being an “Approved Bank”), in each case with maturities of not more than 364 days from the
date of acquisition, (iii) commercial paper and variable or fixed rate notes issued by any Approved
Bank (or by the parent company thereof) or any variable rate notes issued by, or guaranteed by any
domestic corporation rated A-1 (or the equivalent thereof) or better by S&P or P-1 (or the
equivalent thereof) or better by Moody’s and maturing within six months of the date of acquisition,
(iv) repurchase agreements with a bank or trust company (including a Lender) or a recognized
securities dealer having capital and surplus in excess of $500,000,000 for direct obligations
issued by or fully guaranteed by the United States of America, (v) obligations of any state of the
United States or any political subdivision thereof for the payment of the principal and redemption
price of and interest on which there shall have been irrevocably deposited Government Obligations
maturing as to principal and interest at times and in amounts sufficient
to provide such payment, (vi) auction preferred stock rated in the highest short-term credit
rating category by S&P or Moody’s, and (vii) investments in mutual funds whose investment criteria
substantially complies with the provisions hereof.

 

4

 

“Change of Control” shall mean the occurrence of any of the following events: (a) any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities and
Exchange Act of 1934, as amended) becomes after the date hereof the “beneficial owner” (defined as
aforesaid), directly or indirectly, of more than 35% of the Voting Stock of the Borrower, or (b)
Continuing Directors, shall cease for any reason to constitute a majority of the Board of Directors
of the Borrower then in office.

“Closing Date” shall mean the date of this Agreement.

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

“Collateral Agency Agreement” shall mean that certain Collateral Agency Agreement
dated concurrently herewith executed by and among the Administrative Agent, JPMorgan Chase Bank,
National Association, as Collateral Agent, JPMorgan Chase Bank, N.A., Toronto Branch, as
Administrative Agent under the Canadian Credit Agreement, JPMorgan Chase Bank, National
Association, as holder of certain Indebtedness of Borrower therein described, and Wells Fargo Bank,
National Association, as holder of certain Indebtedness of Borrower therein described, as the same
may be amended, modified, extended, renewed or replaced from time to time.

“Collateral Agent” shall mean JPMorgan Chase Bank, N.A., in its capacity as Collateral
Agent under the Collateral Agency Agreement.

“Collateral” shall mean a collective reference to the collateral which is identified
in, and at any time will be covered by, the Security Documents.

“Commitment” shall mean the Revolving Commitment, the LOC Commitment, the Swingline
Commitment, individually or collectively, as appropriate.

“Commitment Fee” shall have the meaning set forth in Section 2.4(a).

“Commitment Percentage” shall mean the Revolving Commitment Percentage and/or the LOC
Commitment Percentage, as appropriate.

“Commitment Period” shall mean the period from and including the Closing Date to but
not including the Revolving Commitment Termination Date.

“Commonly Controlled Entity” shall mean an entity, whether or not incorporated, which
is under common control with the Borrower within the meaning of Section 4001 of ERISA or is part of
a group which includes the Borrower and which is treated as a single employer under Section 414 of
the Code.

 

5

 

“Consolidated Capital Expenditures” shall mean, for any period, all capital
expenditures of the Borrower and its Subsidiaries on a consolidated basis for such period, as
determined in accordance with GAAP. The term “Consolidated Capital Expenditures” shall not include
(i) capital expenditures in respect of the reinvestment of proceeds derived from Recovery
Events received by the Borrower and its Subsidiaries to the extent that such reinvestment is
permitted under the Credit Documents or (ii) acquisitions of all or substantially all of the assets
or stock of businesses and/or mergers with other businesses. Furthermore, for purposes of
calculating the Interest Coverage Ratio only, “Consolidated Capital Expenditures” shall not include
capital expenditures that are financed by the Borrower or its Subsidiaries under equipment
financings permitted under Sections 6.1(c) or (m).

“Consolidated Cash Taxes” means, for any period, the aggregate of all taxes on income
of the Borrower and its Subsidiaries on a consolidated basis for such period, as determined in
accordance with GAAP.

“Consolidated EBITDA” shall mean, for any period, the sum of (i) Consolidated Net
Income for such period, plus (ii) an amount which, in the determination of Consolidated Net
Income for such period, has been deducted for (A) Consolidated Interest Expense, (B) total federal,
state, local and foreign income taxes and other similar taxes, (C) losses (or minus gains) on the
sale or disposition of assets outside the ordinary course of business and (D) depreciation,
amortization expense and other non-cash charges, all as determined in accordance with GAAP.
Non-cash charges that are added back to Consolidated Net Income in subsection (D), but are
ultimately paid in cash will be deducted from Consolidated EBITDA at the time cash payments are
made (other than the litigation charges in the amount of $17,000,000 specified and described in the
December 31, 2008 Form 10K filing by the Borrower, which shall continue to be excluded from the
calculation of Consolidated EBITDA in the event it is paid).

“Consolidated Interest Expense” shall mean, for any period, all interest expense of
the Borrower and its Subsidiaries (including, without limitation. the interest component under
Capital Leases), as determined in accordance with GAAP.

“Consolidated Net Income” shall mean, for any period, net income (excluding
extraordinary items) after taxes for such period of the Borrower and its Subsidiaries on a
consolidated basis, as determined in accordance with GAAP.

“Continuing Directors” shall mean during any period of up to 24 consecutive months
commencing after the Closing Date, individuals who at the beginning of such 24 month period were
directors of the Borrower (together with any new director whose election by the Borrower’s board of
directors or whose nomination for election by the Borrower’s shareholders was approved by a vote of
at least (60%) sixty percent of the directors then still in office who either were directors at the
beginning of such period or whose election or nomination for election was previously so approved).

“Contractual Obligation” shall mean, as to any Person, any provision of any security
issued by such Person or of any agreement, instrument or undertaking to which such Person is a
party or by which it or any of its property is bound.

“Credit Documents” shall mean this Agreement, each of the Notes, any Joinder
Agreement, the Letters of Credit, LOC Documents, the Security Documents, the Collateral Agency
Agreement and the Intercreditor Agreement.

 

6

 

“Credit Party” shall mean any of the Borrower or the Guarantors.

“Credit Party Obligations” shall mean, without duplication, (i) all of the obligations
of the Credit Parties to the Lenders (including the Issuing Lender) and the Administrative Agent,
whenever arising, under this Agreement, the Notes or any of the other Credit Documents (including,
but not limited to, any interest accruing after the occurrence of a filing of a petition of
bankruptcy under the Bankruptcy Code with respect to any Credit Party, regardless of whether such
interest is an allowed claim under the Bankruptcy Code) and (ii) all liabilities and obligations,
whenever arising, owing from the Borrower or any of its Subsidiaries to any Lender, or any
Affiliate of a Lender, arising under any Hedging Agreement or under any cash management
arrangements (including overdraft and other short term lines of credit associated with any such
cash management arrangements) provided by any Lender (or any Affiliate of a Lender).

“Debt Issuance” shall mean the issuance of any Indebtedness for borrowed money by any
Credit Party or any of its Subsidiaries (excluding, for purposes hereof, any Equity Issuance or any
Indebtedness of the Borrower and its Subsidiaries permitted to be incurred pursuant to Section
6.1 hereof).

“Default” shall mean any of the events specified in Section 7.1, whether or
not any requirement for the giving of notice or the lapse of time, or both, or any other condition,
has been satisfied.

“Default Rate” shall have the meaning set forth in Section 2.8.

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

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

 

7

 

“Domestic Lending Office” shall mean, initially, the office of each Lender designated
as such Lender’s Domestic Lending Office shown on Schedule 11.2; and thereafter, such other
office of such Lender as such Lender may from time to time specify to the Administrative Agent and
the Borrower as the office of such Lender at which Alternate Base Rate Loans of such Lender are to
be made.

“Domestic Subsidiary” shall mean any Subsidiary that is organized and existing under
the laws of the United States or any state or commonwealth thereof or under the laws of the
District of Columbia.

“Environmental Laws” shall mean any and all applicable foreign, Federal, state, local
or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees, requirements
of any Governmental Authority or other Requirement of Law (including common law) regulating,
relating to or imposing liability or standards of conduct concerning protection of human health or
the environment, as are now or may at any time be in effect during the term of this Agreement.

“Equity Issuance” shall mean any issuance by any Credit Party or any Subsidiary to any
Person which is not a Credit Party of (a) shares of its Capital Stock, (b) any shares of its
Capital Stock pursuant to the exercise of options or warrants or (c) any shares of its Capital
Stock pursuant to the conversion of any debt securities to equity. The term “Equity Issuance”
shall not include any Asset Disposition or any Debt Issuance.

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

“Eurodollar Reserve Percentage” shall mean for any day, the percentage (expressed as a
decimal and rounded upwards, if necessary, to the next higher 1/100th of 1%) which is in effect for
such day as prescribed by the Federal Reserve Board (or any successor) for determining the maximum
reserve requirement (including without limitation any basic, supplemental or emergency reserves) in
respect of Eurocurrency liabilities, as defined in Regulation D of such Board as in effect from
time to time, or any similar category of liabilities for a member bank of the Federal Reserve
System in New York City.

“Event of Default” shall mean any of the events specified in Section 7.1;
provided, however, that any requirement for the giving of notice or the lapse of
time, or both, or any other condition, has been satisfied.

“Extension of Credit” shall mean, as to any Lender, the making of a Loan by such
Lender or the issuance of, or participation in, a Letter of Credit by such Lender.

“Federal Funds Effective Rate” means, for any day, an interest rate per annum equal to
the weighted average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers on such day, as published for such day
(or, if such day is not a Business Day, for the immediately preceding Business Day) by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day,
the average of the quotations at approximately 10:00 a.m. (Houston, Texas time) on such day on such
transactions received by the Administrative Agent from three Federal funds brokers of recognized
standing selected by the Administrative Agent in its sole discretion.

 

8

 

“Foreign Subsidiary” shall mean any Subsidiary that is not a Domestic Subsidiary.

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

“Funded Debt” shall mean, with respect to any Person, without duplication (for
example, a Guaranty Obligation will not duplicate any Indebtedness already included in the
calculation of any financial covenant in this Agreement), (a) all Indebtedness of such Person other
than Indebtedness of the types referred to in clause (e), (f), (g),
(i) and (l) of the definition of “Indebtedness” set forth in this
Section 1.1 (provided, however, that letters of credit issued in support of industrial
revenue bond financings shall be excluded from the calculation of Funded Debt hereunder), (b) all
Funded Debt of others of the type referred to in clause (a) above secured by (or for which
the holder of such Funded Debt 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, (c) all Guaranty
Obligations of such Person with respect to Funded Debt of the type referred to in clause
(a) above of another Person and (d) Funded Debt of the type referred to in clause (a)
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.

“GAAP” shall mean generally accepted accounting principles in effect in the United
States of America applied on a consistent basis, subject, however, in the case of
determination of compliance with the financial covenants set out in Section 5.9 to the
provisions of Section 1.3.

“Government Acts” shall have the meaning set forth in Section 2.18.

“Government Obligations” shall have the meaning set forth in the definition of “Cash
Equivalents.”

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

“Guarantor” shall have the meaning set forth in the first paragraph of this Agreement.

“Guaranty” shall mean the guaranty of the Guarantors set forth in Article IX.

“Guaranty Obligations” shall mean, with respect to any Person, without duplication,
any obligations of such Person (other than endorsements in the ordinary course of business of
negotiable instruments for deposit or collection) guaranteeing or intended to guarantee any
Indebtedness of any other Person in any manner, whether direct or indirect, and including without
limitation any obligation, whether or not contingent, (i) to purchase any such Indebtedness or any
property constituting security therefor, (ii) to advance or provide funds or other support for the
payment or purchase of any such Indebtedness or to maintain working capital, solvency or other
balance sheet condition of such other Person (including without limitation keep well agreements,
maintenance agreements, comfort letters or similar agreements or arrangements) for the benefit of
any holder of
Indebtedness of such other Person, (iii) to lease or purchase Property, securities or services
primarily for the purpose of assuring the holder of such Indebtedness, or (iv) to otherwise assure
or hold harmless the holder of such Indebtedness against loss in respect thereof. The amount of
any Guaranty Obligation hereunder shall (subject to any limitations set forth therein) be deemed to
be an amount equal to the outstanding principal amount (or maximum principal amount, if larger) of
the Indebtedness in respect of which such Guaranty Obligation is made.

 

9

 

“Hedging Agreements” shall mean, with respect to any Person, any agreement entered
into to protect such Person against fluctuations in interest rates, or currency or raw materials
values, including, without limitation, any interest rate swap, cap or collar agreement or similar
arrangement between such Person and one or more counterparties, any foreign currency exchange
agreement, currency protection agreements, commodity purchase or option agreements or other
interest or exchange rate or commodity price hedging agreements.

“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 and expenses 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 Guaranty
Obligations of such Person with respect to Indebtedness 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 standby 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 which by the terms thereof could be (at the request of the holders thereof or
otherwise) subject to mandatory sinking fund payments, redemption or other acceleration, (l) the
principal balance outstanding under any synthetic lease, tax retention operating lease, off-balance
sheet loan or similar off-balance sheet financing product, and (m) the Indebtedness of any
partnership or unincorporated joint venture in which such Person is a general partner or a joint
venturer.

“Insolvency” shall mean, with respect to any Multiemployer Plan, the condition that
such Plan is insolvent within the meaning of such term as used in Section 4245 of ERISA.

“Insolvent” shall mean being in a condition of Insolvency.

“Intellectual Property” shall have the meaning set forth in the Security Agreement.

 

10

 

“Intercreditor Agreement” shall mean that certain Intercreditor Agreement dated
concurrently herewith executed by and among the Lenders, the Administrative Agent, the
“Lenders” under the Canadian Credit Agreement, JPMorgan Chase Bank, N.A., Toronto Branch, as
Administrative Agent under the Canadian Credit Agreement, JPMorgan Chase Bank, National
Association, as holder of certain Indebtedness of Borrower therein described, and Wells Fargo Bank,
National Association, as holder of certain Indebtedness of Borrower therein described, as the same
may be amended, modified, extended, renewed or replaced from time to time.

“Interest Coverage Ratio” means, with respect to the Borrower and its Subsidiaries on
a consolidated basis for the twelve month period ending on the last day of any fiscal quarter of
the Borrower, the ratio of (a) Pro Forma Consolidated EBITDA minus Consolidated Capital
Expenditures minus Consolidated Cash Taxes minus dividends for such period to (b)
Consolidated Interest Expense.

“Interest Determination Date” shall have the meaning assigned thereto in the
definition of “Applicable Percentage”.

“Interest Payment Date” shall mean (a) as to any Alternate Base Rate Loan or Swingline
Loan, the third Business Day of each April, July, October and January and on the applicable
Maturity Date, (b) as to any LIBOR Rate Loan having an Interest Period of three months or less, the
last day of such Interest Period, and (c) as to any LIBOR Rate 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, with respect to any LIBOR Rate Loan,

(i) initially, the period commencing on the Borrowing Date or conversion date, as the
case may be, with respect to such LIBOR Rate Loan and ending one, two, three or six months
thereafter, as selected by the Borrower in the notice of borrowing or notice of conversion
given with respect thereto; and

(ii) thereafter, each period commencing on the last day of the immediately preceding
Interest Period applicable to such LIBOR Rate Loan and ending one, two, three or six months
thereafter, as selected by the Borrower by irrevocable notice to the Administrative Agent
not less than three Business Days prior to the last day of the then current Interest Period
with respect thereto;

provided that the foregoing provisions are subject to the following:

(A) if any Interest Period pertaining to a LIBOR Rate Loan would otherwise end
on a day that is not a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless the result of such extension would be to carry
such Interest Period into another calendar month in which event such Interest Period
shall end on the immediately preceding Business Day;

(B) any Interest Period pertaining to a LIBOR Rate 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;

 

11

 

(C) if the Borrower shall fail to give notice as provided above, the Borrower
shall be deemed to have selected a one (1) month LIBOR Rate Loan to replace the
affected LIBOR Rate Loan;

(D) any Interest Period in respect of any Loan that would otherwise extend
beyond the applicable Maturity Date shall end on the Maturity Date; and

(E) no more than twelve (12) LIBOR Rate Loans may be in effect at any time.
For purposes hereof, LIBOR Rate Loans with different Interest Periods shall be
considered as separate LIBOR Rate Loans, even if they shall begin on the same date
and have the same duration, although borrowings, extensions and conversions may, in
accordance with the provisions hereof, be combined at the end of existing Interest
Periods to constitute a new LIBOR Rate Loan with a single Interest Period.

“Issuing Lender” means either of JPM Chase or Wells Fargo Bank, National Association
(at Borrower’s election), in its capacity as the issuer of Letters of Credit hereunder.

“Issuing Lender Fees” shall have the meaning set forth in Section 2.4(c).

“Joinder Agreement” shall mean a Joinder Agreement substantially in the form of
Schedule 5.10, executed and delivered by an Additional Credit Party in accordance with the
provisions of Section 5.10.

“JPM Chase” shall mean JPMorgan Chase Bank, N.A., a national banking association.

“JPMC Note” means that certain promissory note in the original principal amount of
$5,000,000 dated as of October 5, 2009 executed by the Borrower payable to the order of JPM Chase,
as the same may be amended, modified, extended, renewed or replaced from time to time.

“Lender” shall have the meaning set forth in the first paragraph of this Agreement.

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

“Letters of Credit” shall mean any letter of credit issued by the Issuing Lender
pursuant to the terms hereof, as such Letters of Credit may be amended, modified, extended, renewed
or replaced from time to time.

“Letter of Credit Fee” shall have the meaning set forth in Section 2.4(b).

“Leverage Ratio” shall mean, with respect to the Borrower and its Subsidiaries on a
consolidated basis for the twelve month period ending on the last day of any fiscal quarter, the
ratio of (a) Funded Debt of the Borrower and its Subsidiaries on a consolidated basis on the last
day of such period to (b) Pro Forma Consolidated EBITDA for such twelve month period.

 

12

 

“LIBOR” means, with respect to a LIBOR Rate Loan for the relevant Interest Period, the
applicable British Bankers’ Association LIBOR rate for deposits in U.S. dollars as reported by
any generally recognized financial information service as of 11:00 a.m. (London time) two
Business Days prior to the first day of such Interest Period, and having a maturity equal to such
Interest Period, provided that, if no such British Bankers’ Association LIBOR rate is available to
the Administrative Agent, the applicable LIBOR for the relevant Interest Period shall instead be
the rate determined by the Administrative Agent to be the rate at which JPM Chase or one of its
Affiliate banks offers to place deposits in U.S. dollars with first class banks in the interbank
market at approximately 11:00 a.m. (London time) two Business Days prior to the first day of such
Interest Period, in the approximate amount of JPM Chase’s relevant LIBOR Rate Loan and having a
maturity equal to such Interest Period.

“LIBOR Lending Office” shall mean, initially, the office of each Lender designated as
such Lender’s LIBOR Lending Office shown on Schedule 11.2; and thereafter, such other
office of such Lender as such Lender may from time to time specify to the Administrative Agent and
the Borrower as the office of such Lender at which the LIBOR Rate Loans of such Lender are to be
made.

“LIBOR Rate” means, with respect to a LIBOR Rate Loan for the relevant Interest
Period, a rate per annum (rounded upwards, if necessary, to the next higher 1/100th of 1%) equal
to the quotient of (a) the LIBOR applicable to such Interest Period, divided by (b) one minus the
Eurodollar Reserve Requirement (expressed as a decimal) applicable to such Interest Period.

“LIBOR Rate Loan” shall mean Loans the rate of interest applicable to which is based
on the LIBOR Rate.

“Lien” shall mean any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge or other security interest or any
preference, priority or other security agreement or preferential arrangement of any kind or nature
whatsoever (including, without limitation, any conditional sale or other title retention agreement
and any Capital Lease having substantially the same economic effect as any of the foregoing).

“Loan” shall mean a Revolving Loan and/or a Swingline Loan, as appropriate.

“LOC Commitment” shall mean the commitment of the Issuing Lender to issue Letters of
Credit and with respect to each Lender, the commitment of such Lender to purchase participation
interests in the Letters of Credit up to such Lender’s LOC Committed Amount as specified in
Schedule 2.1(a), as such amount may be reduced from time to time in accordance with the
provisions hereof.

“LOC Commitment Percentage” shall mean, for each Lender, the percentage identified as
its LOC Commitment Percentage on Schedule 2.1(a), as such percentage may be modified in
connection with any assignment made in accordance with the provisions of Article X;
provided that in the case of Section 2.19 when a Defaulting Lender shall exist, “LOC
Commitment Percentage” shall mean the percentage of the total LOC Commitments (disregarding any
Defaulting Lender’s LOC Commitment) represented by the applicable Lender’s LOC Commitment. If the
LOC Commitments have terminated or expired, the LOC Commitment Percentages shall be determined
based upon the LOC Commitments most recently in effect,
giving effect to any assignments and to any Lender’s status as a Defaulting Lender at the time
of determination.

 

13

 

“LOC Committed Amount” shall mean, collectively, the aggregate amount of all of the
LOC Commitments of the Lenders to issue and participate in Letters of Credit as referenced in
Section 2.3 and, individually, the amount of each Lender’s LOC Commitment as specified in
Schedule 2.1(a).

“LOC 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 (ii) any collateral security for such obligations.

“LOC Obligations” shall mean, at any time, the sum of (i) the maximum amount which is,
or at any time thereafter may become, available to be drawn under Letters of Credit then
outstanding, assuming compliance with all requirements for drawings referred to in such Letters of
Credit plus (ii) the aggregate amount of all drawings under Letters of Credit honored by
the Issuing Lender but not theretofore reimbursed.

“Mandatory Borrowing” shall have the meaning set forth in Section 2.2(b)(ii)
or Section 2.3(e), as the context may require.

“Material Adverse Effect” shall mean a material adverse effect on (a) the business,
assets, liabilities (actual or contingent), operations, properties, condition (financial or
otherwise) or prospects of the Borrower and its Subsidiaries taken as a whole, (b) the ability of
the Borrower and the Guarantors taken as a whole to perform their obligations, when such
obligations are required to be performed, under this Agreement, any of the Notes or any other
Credit Document or (c) the validity or enforceability of this Agreement, any of the Notes or any of
the other Credit Documents or the rights or remedies of the Administrative Agent or the Lenders
hereunder or thereunder.

“Material Contract” shall mean any contract or other arrangement, whether written or
oral, to which the Borrower or any of its Subsidiaries is a party as to which the breach,
nonperformance, cancellation or failure to renew by any party thereto could reasonably be expected
to have a Material Adverse Effect.

“Materials of Environmental Concern” shall mean any gasoline or petroleum (including
crude oil or any fraction thereof) or petroleum products or any hazardous or toxic substances,
materials or wastes, defined or regulated as such in or under any Environmental Law, including,
without limitation, asbestos, polychlorinated biphenyls and urea-formaldehyde insulation.

“Maturity Date” shall mean the Revolving Commitment Termination Date.

 

14

 

“Maximum Rate” means, with respect to the Lenders, 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 Notes or on other Indebtedness, as the case may be, under the laws
which are presently in effect in the United States of America and the State of Texas applicable to
the Lenders and such indebtedness or, to the extent permitted by law, under such applicable
laws of the United States of America and the State of Texas which may hereafter be in effect and
which allow a higher maximum nonusurious interest rate than applicable laws now allow. To the
extent that Chapter 303 of the Texas Finance Code (the “Code”), is relevant to the Lenders
for the purposes of determining the Maximum Rate, the Lenders elect to determine such applicable
legal rate under the Code pursuant to the “weekly ceiling,” from time to time in effect, as
referred to and defined in Chapter 303 of the Code; subject, however, to the limitations on such
applicable ceiling referred to and defined in Chapter 303 of the Code, and further subject to any
right the Lenders may have subsequently, under applicable law, to change the method of determining
the Maximum Rate. If no Maximum Rate is established by applicable law, then the Maximum Rate shall
be equal to eighteen percent (18%).

“Moody’s” shall mean Moody’s Investors Service, Inc. and any successors thereto.

“Multiemployer Plan” shall mean a Plan which is a multiemployer plan as defined in
Section 4001(a)(3) of ERISA.

“Net Cash Proceeds” shall mean the aggregate cash proceeds received by any Credit
Party or any Subsidiary in respect of any Asset Disposition, Recovery Event or Debt Issuance, net
of (a) direct costs (including, without limitation, legal, accounting and investment banking fees,
and sales commissions), (b) taxes paid or payable as a result thereof, (c) in the case of an Asset
Disposition or Recovery Event, the amount of all payments required to be made by the Borrower or
any Subsidiary to repay Indebtedness (other than the Loans) as a result of such Asset Disposition
or Recovery Event, and (d) in the case of an Asset Disposition or Recovery Event, the amount of any
reserves established to fund contingent liabilities that are reasonably estimated to be payable
during the two years following such Asset Disposition or Recovery Event and that are directly
attributable to such Asset Disposition or Recovery Event; it being understood that “Net Cash
Proceeds” shall include, without limitation, (i) any cash received upon the sale or other
disposition of any non-cash consideration received by the Borrower or any Subsidiary in any Asset
Disposition, Recovery Event or Debt Issuance and (ii) an amount equal to any reserves previously
taken against contingent liabilities in connection with an Asset Disposition or Recovery Event
immediately upon those reserves being determined by the Borrower to be in excess of such contingent
liabilities.

“Note” or “Notes” shall mean the Revolving Notes and/or the Swingline Note,
collectively, separately or individually, as appropriate.

“Notice of Borrowing” shall mean the written notice of borrowing as referenced and
defined in Section 2.1(b)(i).

“Notice of Conversion” shall mean the written notice of extension or conversion as
referenced in Section 2.9.

“Obligations” shall mean, collectively, Loans and LOC Obligations.

“Participant” shall have the meaning set forth in Section 10.2.

 

15

 

“Participation Interest” shall mean the purchase by a Lender of a participation
interest in Swingline Loans as provided in Section 2.2(b)(ii) or in Letters of Credit as
provided in Section 2.3.

“PBGC” shall mean the Pension Benefit Guaranty Corporation established pursuant to
Subtitle A of Title IV of ERISA.

“Permitted Acquisition” shall mean an acquisition permitted under Section
6.6(c) hereof.

“Permitted Investments” shall mean:

(i) cash and Cash Equivalents;

(ii) receivables owing to the Borrower or any of its Subsidiaries or any receivables
and advances to suppliers, in each case if created, acquired or made in the ordinary course
of business and payable or dischargeable in accordance with customary trade terms;

(iii) investments in and loans to any Credit Parties;

(iv) loans and advances to officers, directors, employees and Affiliates in an
aggregate amount not to exceed $500,000 at any time outstanding;

(v) 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;

(vi) investments, acquisitions or transactions permitted under Section 6.6(b)
and (c);

(vii) investments in Foreign Subsidiaries which do not exceed, as of any date, in the
aggregate from and after the date hereof, the greater of (x) $50,000,000 or (y) fifty
percent (50%) of Pro Forma Consolidated EBITDA for the twelve month period ending on the
last day of the most recently ended fiscal quarter; and

(viii) additional loan advances and/or investments of a nature not contemplated by the
foregoing clauses hereof, provided that such loans, advances and/or investments made
pursuant to this clause (viii) shall not exceed an aggregate amount of $10,000,000
at any time.

As used herein, “investment” shall mean all investments, in cash or by delivery of property
made, directly or indirectly in, to or from any Person, whether by acquisition of shares of Capital
Stock, property, assets, indebtedness or other obligations or securities or by loan advance,
capital contribution or otherwise.

 

16

 

“Permitted Liens” shall mean:

(i) Liens created by or otherwise existing, under or in connection with this Agreement
or the other Credit Documents in favor of the Lenders (securing, on a pari passu basis, the
Credit Party Obligations, Indebtedness under the Canadian Credit Agreement, Indebtedness
under the JPMC Note and Indebtedness under the Wells Fargo Note);

(ii) Liens in favor of a Lender hereunder in connection with Hedging Agreements, but
only (A) to the extent such Liens secure obligations under Hedging Agreements with any
Lender, or any Affiliate of a Lender, (B) to the extent such Liens are on the same
collateral as to which the Administrative Agent on behalf of the Lenders also has a Lien and
(C) if such provider and the Lenders shall share pari passu in the
collateral subject to such Liens;

(iii) purchase money Liens securing purchase money Indebtedness to the extent permitted
under Sections 6.1(c) (to the extent that the applicable purchase money Indebtedness
is funded after the date of acquisition of the applicable asset or the date of completion of
construction, as the case may be, Agent shall, upon request by Borrower, execute lien
subordination agreements whereby the Liens under the Credit Documents are subordinated to
the Liens securing the applicable purchase money Indebtedness and otherwise in form and
substance reasonably satisfactory to the Administrative Agent);

(iv) Liens for taxes, assessments, charges or other governmental levies not yet due or
as to which the period of grace (not to exceed 60 days), if any, related thereto has not
expired or which are being contested in good faith by appropriate proceedings;
provided that adequate reserves with respect thereto are maintained on the books of
the Borrower or its Subsidiaries, as the case may be, in conformity with GAAP (or, in the
case of Subsidiaries with significant operations outside of the United States of America,
generally accepted accounting principles in effect from time to time in their respective
jurisdictions of incorporation);

(v) statutory landlord Liens and carriers’, warehousemen’s, mechanics’, materialmen’s,
repairmen’s or other like Liens arising in the ordinary course of business which are not
overdue for a period of more than 60 days or which are being contested in good faith by
appropriate proceedings;

(vi) pledges or deposits in connection with workers’ compensation, unemployment
insurance and other social security legislation and deposits securing liability to insurance
carriers under insurance or self-insurance arrangements;

(vii) deposits to secure the performance of bids, trade contracts, (other than for
borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds
and other obligations of a like nature incurred in the ordinary course of business;

(viii) Liens existing on the Closing Date and set forth on Schedule 1.1(b);

 

17

 

(ix) Liens arising in connection with Capital Leases permitted under Section
6.1(c) incurred to provide all or a portion of the purchase price (or finance such
purchase price within ninety (90) days of acquisition) or cost of improvement or
construction of an asset so long as the Indebtedness under such Capital Lease when incurred
shall not exceed the purchase price or cost of construction of the applicable asset;

(x) any extension, renewal or replacement (or successive extensions, renewals or
replacements), in whole or in part, of any Lien referred to in the foregoing clauses;
provided that such extension, renewal or replacement Lien shall be limited to all or
a part of the property which secured the Lien so extended, renewed or replaced (plus
improvements on such property). In the case of purchase money indebtedness or Capital
Leases, financing shall be deemed to be given in renewal or replacement of the applicable
purchase money indebtedness or Capital Leases if it is funded within 180 days after the
payment of such purchase money indebtedness or Capital Leases and is designated by the
Borrower as having been given in renewal or replacement of the applicable purchase money
indebtedness or Capital Leases (and in such event, Agent shall, upon request by Borrower,
execute lien subordination agreements whereby the Liens under the Credit Documents are
subordinated to the Liens securing the applicable purchase money indebtedness or Capital
Leases, as the case may, and otherwise in form and substance reasonably satisfactory to the
Administrative Agent); and

(xi) Liens securing Indebtedness permitted under Section 6.1(m).

“Person” shall mean an individual, partnership, corporation, limited liability
company, business trust, joint stock company, trust, unincorporated association, joint venture,
Governmental Authority or other entity of whatever nature.

“Plan” shall mean, at any particular time, any employee benefit plan which is covered
by Title IV of ERISA and in respect of which the Borrower or a Commonly Controlled Entity is (or,
if such plan were terminated at such time, would under Section 4069 of ERISA be deemed to be) an
“employer” as defined in Section 3(5) of ERISA.

“Pledge Agreement” shall mean the Pledge Agreement dated concurrently herewith given
by the Credit Parties to the Collateral Agent, as the same may have been or may hereafter from time
to time be amended, supplemented or otherwise modified in accordance with the terms hereof and
thereof.

“Prime Rate” means a rate per annum equal to the prime rate of interest announced from
time to time by JPM Chase or its parent (which is not necessarily the lowest rate charged to any
customer), changing when and as said prime rate changes.

“Pro Forma Basis” shall mean, with respect to any Permitted Acquisition or other
transaction permitted hereunder, that such Permitted Acquisition or other transaction shall be
deemed to have occurred as of the first day of the four fiscal-quarter period ending as of the most
recent fiscal quarter end for which financial statements have been delivered pursuant to
Sections 5.1(a) or 5.1(b), as applicable.

 

18

 

“Pro Forma Compliance Certificate” shall mean a certificate of a Responsible Officer
delivered to the Administrative Agent in connection with a Permitted Acquisition and containing
reasonably detailed calculations, upon giving effect to the applicable transaction on a Pro Forma
Basis, of the financial covenants set forth in Section 5.9 as of the closing date for such
Permitted Acquisition utilizing the financial statements most recently delivered pursuant to
Sections 5.1(a) or 5.1(b), as applicable.

“Pro Forma Consolidated EBITDA” shall mean, for any period, as to the Borrower and its
consolidated Subsidiaries, Consolidated EBITDA of the Borrower and its consolidated Subsidiaries
plus (or minus), without duplication, the allocable share of Consolidated EBITDA, for such period
of any Person acquired or divested during such period on a Pro Forma Basis (calculated as if such
Person had been a Subsidiary for all of such period).

“Properties” shall have the meaning set forth in Section 3.10(a).

“Property” shall mean any interest in any kind of property or asset, whether real,
personal or mixed, or tangible or intangible.

“Purchase Money Debt Basket” means an amount equal to the greater of (x) $150,000,000
or (y) 100% of Pro Forma Consolidated EBITDA of the Borrower and its consolidated Subsidiaries for
the twelve month period ending on the last day of the most recently ended fiscal quarter.

“Recovery Event” shall mean the receipt by the Borrower or any of its Subsidiaries of
any cash insurance proceeds or condemnation award payable by reason of theft, loss, physical
destruction or damage, taking or similar event with respect to any of their respective property or
assets.

“Register” shall have the meaning set forth in Section 10.3.

“Remote Sales Office” shall mean any office or other location of the Borrower or any
of its Subsidiaries (i) that is not owned by the Borrower or any of its Subsidiaries, (ii) at which
no manufacturing assets are maintained, (iii) that has square footage of less than 800 square feet
and (iv) at which assets with a book value or fair market value of less than $50,000 in the
aggregate for all such assets at such location are maintained.

“Reorganization” shall mean, with respect to any Multiemployer Plan, the condition
that such Plan is in reorganization within the meaning of such term as used in Section 4241 of
ERISA.

“Reportable Event” shall mean any of the events set forth in Section 4043(c) of ERISA,
other than those events as to which the thirty-day notice period is waived under PBGC Reg. §4043.

 

19

 

“Required Lenders” shall mean three (3) or more Lenders (or all Lenders, if there are
less than three Lenders) holding in the aggregate more than 50% of all Revolving Loans and LOC
Obligations then outstanding at such time plus the aggregate unused Revolving Commitments
at such time (treating for purposes hereof in the case of Swingline Loans and LOC Obligations, in
the case of the Swingline Lender and the Issuing Lender, only the portion of the Swingline
Loans and the LOC Obligations of the Swingline Lender and the Issuing Lender, respectively, which
is not subject to the Participation Interests of the other Lenders and, in the case of the Lenders
other than the Swingline Lender and the Issuing Lender, the Participation Interests of such Lenders
in Swingline Loans and LOC Obligations hereunder as direct Obligations); provided,
however, that if any Lender shall be a Defaulting Lender at such time, then there shall be
excluded from the determination of Required Lenders, Obligations (including Participation
Interests) owing to such Defaulting Lender and such Defaulting Lender’s Commitments, or after
termination of the Commitments, the principal balance of the Obligations owing to such Defaulting
Lender.

“Requirement of Law” shall mean, as to any Person, the Certificate of Incorporation
and By-laws or other organizational or governing documents of such Person, and each law, treaty,
rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in
each case applicable to or binding upon such Person or any of its property or to which such Person
or any of its property is subject.

“Responsible Officer” shall mean, as to (a) the Borrower, the President, the Chief
Executive Officer, the Chief Financial Officer, the Treasurer or Assistant Treasurer or (b) any
other Credit Party, any duly authorized officer thereof.

“Restricted Payment” shall mean (a) any dividend or other distribution, direct or
indirect, on account of any shares of any class of Capital Stock of the Borrower or any of its
Subsidiaries, now or hereafter outstanding, (b) 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 the Borrower or any of its Subsidiaries, now or hereafter outstanding or (c) any
payment made to retire, or to obtain the surrender of, any outstanding warrants, options or other
rights to acquire shares of any class of Capital Stock of the Borrower or any of its Subsidiaries,
now or hereafter outstanding.

“Revolving Commitment” shall mean, with respect to each Lender, the commitment of such
Lender to make Revolving Loans in an aggregate principal amount at any time outstanding up to such
Lender’s Revolving Committed Amount.

“Revolving Commitment Percentage” shall mean, for each Lender, the percentage
identified as its Revolving Commitment Percentage on Schedule 2.1(a), as such percentage
may be modified in connection with any assignment made in accordance with the provisions of
Article X; provided that in the case of Section 2.19 when a Defaulting Lender shall
exist, “Revolving Commitment Percentage” shall mean the percentage of the total Revolving
Commitments (disregarding any Defaulting Lender’s Revolving Commitment) represented by the
applicable Lender’s Revolving Commitment. If the Revolving Commitments have terminated or expired,
the Revolving Commitment Percentages shall be determined based upon the Revolving Commitments most
recently in effect, giving effect to any assignments and to any Lender’s status as a Defaulting
Lender at the time of determination.

“Revolving Committed Amount” shall mean, collectively, the aggregate amount of all
Revolving Commitments as referenced in Section 2.1(a), as such amount may be reduced from
time to time in accordance with the provisions hereof.

 

20

 

“Revolving Commitment Termination Date” shall mean October 6, 2014.

“Revolving Loans” shall have the meaning set forth in Section 2.1.

“Revolving Note” or “Revolving Notes” shall mean the promissory notes of the
Borrower in favor of each of the Lenders evidencing the Revolving Loans provided pursuant to
Section 2.1(e), individually or collectively, as appropriate, as such promissory notes may
be amended, modified, supplemented, extended, renewed or replaced from time to time.

“S&P” shall mean Standard & Poor’s Ratings Group, a division of McGraw Hill, Inc. and
any successors thereto.

“SEC” shall mean the Securities and Exchange Commission or any successor or analogous
Government Authority.

“Security Agreement” shall mean the Security Agreement dated concurrently herewith
given by the Borrower and the other Credit Parties to the Collateral Agent (or its predecessor as
administrative agent), as the same may have been or may hereafter amended, modified or supplemented
from time to time in accordance with its terms.

“Security Documents” shall mean the Security Agreement, the Pledge Agreement and such
other documents executed and delivered in connection with the attachment and perfection of the
Administrative Agent’s or the Collateral Agent’s security interests and liens arising thereunder,
including, without limitation, UCC financing statements and patent and trademark filings. The
Security Documents shall secure, on a pari passu basis, the Credit Party Obligations, Indebtedness
under the Canadian Credit Agreement, Indebtedness under the JPMC Note and Indebtedness under the
Wells Fargo Note.

“Single Employer Plan” shall mean any Plan which is not a Multiemployer Plan.

“Specified Sales” shall mean (a) the sale, transfer, lease or other disposition of
inventory, and materials in the ordinary course of business and (b) the sale, transfer or other
disposition of Permitted Investments described in clauses (i) or (v) of the
definition thereof.

“Stock Repurchases” shall mean the purchase by the Borrower of its Capital Stock as
permitted pursuant to Section 6.12 hereof.

“Subordinated Indebtedness” shall mean any and all Indebtedness of the Borrower or any
of its Subsidiaries which is subordinated in right of payment to the prior payment in full of the
Credit Party Obligations.

“Subsidiary” shall mean, as to any Person, a corporation, partnership, limited
liability company or other entity of which shares of stock or other ownership interests having
ordinary voting power (other than stock or such other ownership interests having such power only by
reason of the happening of a contingency) to elect a majority of the board of directors or other
managers of such corporation, partnership or other entity are at the time owned, or the management
of which is otherwise controlled, directly or indirectly through one or more intermediaries, or
both, by such Person. Unless otherwise qualified, all references to a
“Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary or
Subsidiaries of the Borrower.

 

21

 

“Swingline Commitment” shall mean the commitment of the Swingline Lender to make
Swingline Loans in an aggregate principal amount at any time outstanding up to the Swingline
Committed Amount, and the commitment of the Lenders to purchase participation interests in the
Swingline Loans as provided in Section 2.2(b)(ii), as such amounts may be reduced from time
to time in accordance with the provisions hereof.

“Swingline Committed Amount” shall mean the amount of the Swingline Lender’s Swingline
Commitment as specified in Section 2.2(a).

“Swingline Lender” shall mean JPM Chase, in its capacity as such.

“Swingline Loan” or “Swingline Loans” shall have the meaning set forth in
Section 2.2(a).

“Swingline Note” shall mean the promissory note of the Borrower in favor of the
Swingline Lender evidencing the Swingline Loans provided pursuant to Section 2.2(d), as
such promissory note may be amended, modified, supplemented, extended, renewed or replaced from
time to time.

“Taxes” shall have the meaning set forth in Section 2.17.

“Tranche” shall mean the collective reference to LIBOR Rate Loans whose Interest
Periods begin and end on the same day. A Tranche may sometimes be referred to as a “LIBOR
Tranche”.

“Transfer Effective Date” shall have the meaning set forth in each Commitment Transfer
Supplement.

“2.17 Certificate” shall have the meaning set forth in Section 2.17.

“Type” shall mean, as to any Loan, its nature as an Alternate Base Rate Loan or LIBOR
Rate Loan, as the case may be.

“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.

“Wells Fargo Note” means that certain promissory note in the original principal amount
of $5,000,000 dated as of December 31, 2009 executed by the Borrower payable to the order of Wells
Fargo Bank, National Association, as the same may be amended, modified, extended, renewed or
replaced from time to time.

 

22

 

Section 1.2 Other Definitional Provisions.

(a) Unless otherwise specified therein, all terms defined in this Agreement shall have
the defined meanings when used in the Notes or other Credit Documents or any certificate or
other document made or delivered pursuant hereto.

(b) The words “hereof”, “herein” and “hereunder” and words of similar import when used
in this Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement, and Section, subsection, Schedule and Exhibit references are to
this Agreement unless otherwise specified.

(c) The meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

Section 1.3 Accounting Terms.

Unless otherwise specified herein, all accounting terms used herein shall be interpreted, all
accounting determinations hereunder shall be made, and all financial statements required to be
delivered hereunder shall be prepared in accordance with GAAP applied on a basis consistent with
the most recent audited consolidated financial statements of the Borrower delivered to the Lenders;
provided that, if the Borrower notifies the Administrative Agent that it wishes to amend
any covenant in Section 5.9 to eliminate the effect of any change in GAAP on the operation
of such covenant (or if the Administrative Agent notifies the Borrower that the Required Lenders
wish to amend Section 5.9 for such purpose), then the Borrower’s compliance with such
covenant shall be determined on the basis of GAAP applied on a basis consistent with the most
recent audited consolidated statements of the Borrower delivered to the Lenders in effect
immediately before the relevant change in GAAP became effective, until either such notice is
withdrawn or such covenant is amended in a manner satisfactory to the Borrower and the Required
Lenders.

The Borrower shall deliver to the Administrative Agent and each Lender at the same time as the
delivery of any annual or quarterly financial statements given in accordance with the provisions of
Section 5.1, (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 quarterly or annual financial statements as to which
no objection shall have been made in accordance with the provisions above and (ii) a reasonable
estimate of the effect on the financial statements on account of such changes in application.

Notwithstanding the above, the parties hereto acknowledge and agree that, for purposes of
calculations that are designated herein to be made on a “Pro Forma Basis”, (i) any Indebtedness of
such Person that is acquired during such period which is retired in connection with a Permitted
Acquisition shall be excluded from such calculations and deemed to have been retired as of the
first day of such applicable period and (ii) income statement items and other balance sheet items
(whether positive or negative) attributable to the such Person acquired in such transaction shall
be included in such calculations to the extent relating to the period for which the Pro Forma Basis
calculations are being made, subject to adjustments mutually acceptable to the Administrative Agent
and the Borrower.

 

23

 

ARTICLE II

THE LOANS; AMOUNT AND TERMS

Section 2.1 Revolving Loans.

(a) Revolving Commitment. During the Commitment Period, subject to the terms
and conditions hereof, each Lender severally agrees to make revolving credit loans
(“Revolving Loans”) to the Borrower from time to time for the purposes hereinafter
set forth; provided, however, that (i) with regard to each Lender
individually, the sum of such Lender’s share of outstanding Revolving Loans plus
such Lender’s Revolving Commitment Percentage of Swingline Loans plus such Lender’s
LOC Commitment Percentage of LOC Obligations shall not exceed such Lender’s Revolving
Commitment Percentage of the aggregate Revolving Committed Amount, and (ii) with regard to
the Lenders collectively, the sum of the aggregate amount of outstanding Revolving Loans
plus Swingline Loans plus LOC Obligations shall not exceed the aggregate
Revolving Committed Amount. For purposes hereof, the aggregate amount available hereunder
shall be TWO HUNDRED EIGHTY-FIVE MILLION DOLLARS ($285,000,000) (as such aggregate maximum
amount may be reduced from time to time as provided in Section 2.5, the
“Revolving Committed Amount”). Revolving Loans may consist of Alternate Base Rate
Loans or LIBOR Rate Loans, or a combination thereof, as the Borrower may request, and may be
repaid and reborrowed in accordance with the provisions hereof. LIBOR Rate Loans shall be
made by each Lender at its LIBOR Lending Office and Alternate Base Rate Loans at its
Domestic Lending Office.

(b) Revolving Loan Borrowings.

(i) Notice of Borrowing. The Borrower may request a Revolving Loan
borrowing by written notice (or telephone notice promptly confirmed in writing which
confirmation may be by fax) to the Administrative Agent not later than 1:00 p.m.
(Houston, Texas time) on the Business Day of the requested borrowing in the case of
Alternate Base Rate Loans, and on the third Business Day prior to the date of the
requested borrowing in the case of LIBOR Rate Loans. Each such request for
borrowing shall be irrevocable and shall specify (A) that a Revolving Loan is
requested, (B) the date of the requested borrowing (which shall be a Business Day),
(C) the aggregate principal amount to be borrowed and (D) whether the borrowing
shall be comprised of Alternate Base Rate Loans, LIBOR Rate Loans or a combination
thereof, and if LIBOR Rate Loans are requested, the Interest Period(s) therefor. A
form of Notice of Borrowing (a “Notice of Borrowing”) is attached as
Schedule 2.1(b)(i). If the Borrower shall fail to specify in any such
Notice of Borrowing (I) an applicable Interest Period in the case of a LIBOR Rate
Loan, then such notice shall be deemed to be a request for an Interest Period of one
month, or (II) the type of Revolving Loan requested, then such notice shall be
deemed to be a request for a one (1) month LIBOR Rate Loan hereunder. The
Administrative Agent shall give notice to each Lender promptly upon receipt of each
Notice of Borrowing, the contents thereof and each such Lender’s share thereof.

 

24

 

(ii) Minimum Amounts. Each Revolving Loan borrowing shall be in a
minimum aggregate amount of (A) for Revolving Loans made as LIBOR Rate Loans,
$1,000,000 and integral multiples of $100,000 in excess thereof or (B) for Revolving
Loans made as Alternate Base Rate Loans, $1,000,000 and integral multiples of
$100,000 in excess thereof (or the remaining amount of the Revolving Committed
Amount, if less).

(iii) Advances. Each Lender will make its Revolving Commitment
Percentage of each Revolving Loan borrowing available to the Administrative Agent
for the account of the Borrower at the office of the Administrative Agent specified
in Schedule 11.2, or at such other office as the Administrative Agent may
designate in writing, by 2:00 p.m. (Houston, Texas time) on the date specified in
the applicable Notice of Borrowing in Dollars and in funds immediately available to
the Administrative Agent. Such borrowing will then be made available to the
Borrower by the Administrative Agent by crediting the account of the Borrower on the
books of such office with the aggregate of the amounts made available to the
Administrative Agent by the Lenders and in like funds as received by the
Administrative Agent.

(c) Repayment. The principal amount of all Revolving Loans shall be due and
payable in full on the Maturity Date.

(d) Interest. Subject to the provisions of Section 2.8, Revolving
Loans shall bear interest as follows:

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

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

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

(e) Revolving Notes. Any Lender may request that Loans made by it be evidenced
by a promissory note. In such event, the Borrower shall prepare, execute and deliver to
such Lender a promissory note payable to the order of such Lender (or, if requested by such
Lender, to such Lender and its registered assigns) in a face amount equal to such Lender’s
Revolving Commitment Percentage of the Revolving Loans in substantially the form of
Schedule 2.1(e).

 

25

 

Section 2.2 Swingline Loan Subfacility.

(a) Swingline Commitment. During the Commitment Period, subject to the terms
and conditions hereof, the Swingline Lender, in its individual capacity, agrees to
make certain revolving credit loans to the Borrower (each a “Swingline Loan”
and, collectively, the “Swingline Loans”) for the purposes hereinafter set forth;
provided, however, (i) the aggregate amount of Swingline Loans outstanding
at any time shall not exceed FIVE MILLION DOLLARS ($5,000,000) (the “Swingline Committed
Amount”), and (ii) the sum of the aggregate amount of outstanding Revolving Loans
plus Swingline Loans plus LOC Obligations shall not exceed the aggregate
Revolving Committed Amount; provided further, however, that the
Swingline Lender shall not make any Swingline Loan during the existence of an Event of
Default of which the Swingline Lender has received written notice from any Lender (which
notice shall include a request that Swingline Lender refrain from making further Swingline
Loans) prior to the funding of such Swingline Loan. Swingline Loans hereunder may be repaid
and reborrowed in accordance with the provisions hereof.

(b) Swingline Loan Borrowings.

(i) Notice of Borrowing and Disbursement. The Swingline Lender will
make Swingline Loans available to the Borrower on any Business Day upon request made
by the Borrower not later than 1:00 p.m. (Houston, Texas time) on such Business Day.
A notice of request for Swingline Loan borrowing shall be made in the form of
Schedule 2.1(b)(i) with appropriate modifications. Swingline Loan
borrowings hereunder shall be made in minimum amounts of $100,000 and in integral
amounts of $50,000 in excess thereof.

(ii) Repayment of Swingline Loans. Each Swingline Loan borrowing shall
be due and payable on the Maturity Date. The Swingline Lender may, at any time, in
its sole discretion, by written notice to the Borrower and the Administrative Agent,
demand repayment of its Swingline Loans by way of a Revolving Loan borrowing, in
which case the Borrower shall be deemed to have requested a Revolving Loan borrowing
comprised entirely of Alternate Base Rate Loans in the amount of such Swingline
Loans; provided, however, that, in the following circumstances, any
such demand shall also be deemed to have been given one Business Day prior to each
of (A) the Maturity Date, (B) the occurrence of any Event of Default described in
Section 7.1(e), (C) upon acceleration of the Credit Party Obligations
hereunder, whether on account of an Event of Default described in Section
7.1(e) or any other Event of Default, and (D) the exercise of remedies in
accordance with the provisions of Section 7.2 hereof (each such Revolving
Loan borrowing made on account of any such deemed request therefor as provided
herein being hereinafter referred to as a “Mandatory Borrowing”). Each
Lender hereby irrevocably agrees to make such Revolving Loans promptly upon any such
request or deemed request on account of each Mandatory Borrowing in the amount and
in the manner specified in the preceding sentence and on the same such date
notwithstanding (I) the amount of Mandatory Borrowing may not comply with
the minimum amount for borrowings of Revolving Loans otherwise required hereunder,
(II) whether any conditions specified in Section 4.2 are then satisfied,
(III) whether a Default or an Event of Default then exists, (IV) failure of any such
request or deemed request for Revolving Loans to be made by the time

 

26

 

otherwise
required in Section 2.1(b)(i), (V) the date of such Mandatory Borrowing, or
(VI) any reduction in the Revolving Committed Amount or termination of the Revolving Commitments
immediately prior to such Mandatory Borrowing or contemporaneously therewith. In
the event that any Mandatory Borrowing cannot for any reason be made on the date
otherwise required above (including, without limitation, as a result of the
commencement of a proceeding under the Bankruptcy Code with respect to the
Borrower), then each Lender hereby agrees that it shall forthwith purchase (as of
the date the Mandatory Borrowing would otherwise have occurred, but adjusted for any
payments received from the Borrower on or after such date and prior to such
purchase) from the Swingline Lender such participations in the outstanding Swingline
Loans as shall be necessary to cause each such Lender to share in such Swingline
Loans ratably based upon its respective Revolving Commitment Percentage (determined
before giving effect to any termination of the Commitments pursuant to Section
7.2), provided that (x) all interest payable on the Swingline Loans
shall be for the account of the Swingline Lender until the date as of which the
respective participation is purchased, and (y) at the time any purchase of
participations pursuant to this sentence is actually made, the purchasing Lender
shall be required to pay to the Swingline Lender interest on the principal amount of
such participation purchased for each day from and including the day upon which the
Mandatory 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 Mandatory Borrowing, the Federal Funds Effective
Rate, and thereafter at a rate equal to the Alternate Base Rate.

(c) Interest on Swingline Loans. Subject to the provisions of Section
2.8, Swingline Loans shall bear interest at a per annum rate equal to the Alternate Base
Rate plus the Applicable Percentage for Revolving Loans that are Alternate Base Rate
Loans. Interest on Swingline Loans shall be payable in arrears on each Interest Payment
Date.

(d) Swingline Note. The Swingline Loans shall be evidenced by a duly executed
promissory note of the Borrower to the Swingline Lender in the original amount of the
Swingline Committed Amount and substantially in the form of Schedule 2.2(d).

Section 2.3 Letter of Credit Subfacility.

(a) Issuance. Subject to the terms and conditions hereof and of the LOC
Documents, if any, and any other terms and conditions which the Issuing Lender may
reasonably require consistent with customary practice at such time, during the Commitment
Period the Issuing Lender shall issue, and the Lenders shall participate in, Letters of
Credit for the account of the Borrower from time to time upon request in a form acceptable
to the Issuing Lender; provided, however, that (i) the aggregate amount of
LOC Obligations shall not at any time exceed THIRTY MILLION DOLLARS ($30,000,000) (the
“LOC Committed Amount”), (ii) the sum of the aggregate amount of Revolving Loans
plus Swingline Loans plus LOC Obligations shall not at any time exceed the
aggregate Revolving Committed Amount, (iii) all Letters of Credit shall be denominated in
U.S. Dollars and (iv) Letters of Credit shall be issued for the purpose of supporting
tax-advantaged variable rate demand note financing and for other lawful corporate purposes
and may be issued as standby letters of credit, including

 

27

 

in connection with workers’ compensation and other insurance programs, and trade letters of credit.
Except as otherwise expressly agreed upon by all the Lenders, no Letter of Credit shall have
an original expiry date more than twelve (12) months from the date of issuance;
provided, however, so long as no Default or Event of Default has occurred
and is continuing and subject to the other terms and conditions to the issuance of Letters
of Credit hereunder, the expiry dates of Letters of Credit may be extended annually or
periodically from time to time on the request of the Borrower or by operation of the terms
of the applicable Letter of Credit to a date not more than twelve (12) months from the date
of extension; provided, further, that no Letter of Credit, as originally
issued or as extended, shall have an expiry date extending beyond the Maturity Date. Each
Letter of Credit shall comply with the related LOC Documents. The issuance and expiry date
of each Letter of Credit shall be a Business Day. Any Letters of Credit issued hereunder
shall be in a minimum original face amount of $10,000 or such other amount as agreed by the
Administrative Agent and the Borrower. JPM Chase or Wells Fargo Bank, National Association
shall be the Issuing Lender on all Letters of Credit issued after July 30, 2009.

(b) Notice and Reports. The request for the issuance of a Letter of Credit
shall be submitted to the Issuing Lender at least three (3) Business Days prior to the
requested date of issuance. The Issuing Lender will promptly upon request provide to the
Administrative Agent for dissemination to 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 any prior report, and including therein,
among other things, the account party, the beneficiary, the face amount, expiry date as well
as any payments or expirations which may have occurred. The Issuing Lender will further
provide to the Administrative Agent promptly upon request copies of the Letters of Credit.
The Issuing Lender will provide to the Administrative Agent promptly upon request a summary
report of the nature and extent of LOC Obligations then outstanding.

(c) Participations. Each Lender upon issuance of a Letter of Credit, shall be
deemed to have purchased without recourse a risk participation from the Issuing Lender in
such Letter of Credit and the obligations arising thereunder and any collateral relating
thereto, in each case in an amount equal to its LOC Commitment Percentage of the obligations
under 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 Lender therefor
and discharge when due, its LOC 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 Lender has not been reimbursed as
required hereunder or under any LOC Document, each such Lender shall pay to the Issuing
Lender its LOC Commitment Percentage of such unreimbursed drawing in same day funds on the
day of notification by the Issuing Lender of an unreimbursed drawing pursuant to the
provisions of subsection (d) hereof. The obligation of each Lender to so reimburse
the Issuing Lender 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 Borrower to
reimburse the Issuing Lender under any Letter of Credit, together with interest as
hereinafter provided.

 

28

 

(d) Reimbursement. In the event of any drawing under any Letter of Credit, the
Issuing Lender will promptly notify the Borrower and the Administrative Agent. The Borrower
shall reimburse the Issuing Lender on the day of drawing under any Letter of Credit (with
the proceeds of a Swingline Loan or a Revolving Loan obtained hereunder or otherwise) in
same day funds as provided herein or in the LOC Documents. If the Borrower shall fail to
reimburse the Issuing Lender as provided herein, the unreimbursed amount of such drawing
shall bear interest at a rate equal to the Default Rate. Unless the Borrower shall
immediately notify the Issuing Lender and the Administrative Agent of its intent to
otherwise reimburse the Issuing Lender, the Borrower shall be deemed to have requested a
Revolving Loan in the amount of the drawing as provided in subsection (e) hereof,
the proceeds of which will be used to satisfy the reimbursement obligations. Absent the
gross negligence or willful misconduct of any such Person (IT BEING THE INTENTION OF THIS
PROVISION THAT SUCH REIMBURSEMENT OBLIGATION WILL BE APPLICABLE REGARDLESS OF WHETHER CAUSED
IN WHOLE OR IN PART BY THE ORDINARY NEGLIGENCE OF ANY OF THE PARTIES BEING REIMBURSED), the
Borrower’s reimbursement obligations hereunder shall be absolute and unconditional under all
circumstances irrespective of any rights of set-off, counterclaim or defense to payment the
Borrower may claim or have against the Issuing Lender, the Administrative 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 Borrower to receive consideration
or the legality, validity, regularity or unenforceability of the Letter of Credit. The
Issuing Lender will promptly notify the other Lenders of the amount of any unreimbursed
drawing and each Lender shall promptly pay to the Administrative Agent for the account of
the Issuing Lender in Dollars and in immediately available funds, the amount of such
Lender’s LOC Commitment Percentage of such unreimbursed drawing. Such payment shall be made
on the day such notice is received by such Lender from the Issuing Lender if such notice is
received at or before 3:00 p.m. (Houston, Texas time), otherwise such payment shall be made
at or before 1:00 p.m. (Houston, Texas time) on the Business Day next succeeding the day
such notice is received. If such Lender does not pay such amount to the Issuing Lender in
full upon such request, such Lender shall, on demand, pay to the Administrative Agent for
the account of the Issuing Lender interest on the unpaid amount during the period from the
date of such drawing until such Lender pays such amount to the Issuing Lender in full at a
rate per annum equal to, if paid within two (2) Business Days of the date of drawing, the
Federal Funds Effective Rate and thereafter at a rate equal to the Alternate Base Rate.
Each Lender’s obligation to make such payment to the Issuing Lender, and the right of the
Issuing Lender 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
Agreement or the Commitments hereunder, the existence of a Default or Event of Default or
the acceleration of the Credit Party Obligations hereunder and shall be made without any
offset, abatement, withholding or reduction whatsoever.

 

29

 

(e) Repayment with Revolving Loans. On any day on which the Borrower shall
have requested, or been deemed to have requested, a Revolving Loan to reimburse a drawing
under a Letter of Credit, the Administrative Agent shall give notice to the Lenders that a
Revolving Loan has been requested or deemed requested in connection with a drawing under a
Letter of Credit, in which case a Revolving Loan borrowing
comprised entirely of Alternate Base Rate Loans (each such borrowing, a “Mandatory
Borrowing”) shall be immediately made (without giving effect to any termination of the
Commitments pursuant to Section 7.2) pro rata based on each Lender’s
respective Revolving Commitment Percentage (determined before giving effect to any
termination of the Commitments pursuant to Section 7.2) and in the case of both
clauses (i) and (ii) the proceeds thereof shall be paid directly to the
Issuing Lender for application to the respective LOC Obligations. Each Lender hereby
irrevocably agrees to make such Revolving Loans immediately upon any such request or deemed
request on account of each Mandatory Borrowing in the amount and in the manner specified in
the preceding sentence and on the same such date notwithstanding (i) the amount of
Mandatory Borrowing may not comply with the minimum amount for borrowings of Revolving Loans
otherwise required hereunder, (ii) whether any conditions specified in Section 4.2
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 in Section 2.1(b), (v) the date of such Mandatory Borrowing, or (vi) any
reduction in the Revolving Committed Amount after any such Letter of Credit may have been
drawn upon. In the event that any Mandatory Borrowing cannot for any reason be made on the
date otherwise required above (including, without limitation, as a result of the
commencement of a proceeding under the Bankruptcy Code with respect to the Borrower), then
each such Lender hereby agrees that it shall forthwith fund (as of the date the Mandatory
Borrowing would otherwise have occurred, but adjusted for any payments received from the
Borrower on or after such date and prior to such purchase) its Participation Interests in
the outstanding LOC Obligations; provided, further, that in the event any
Lender shall fail to fund its Participation Interest on the day the Mandatory Borrowing
would otherwise have occurred, then the amount of such Lender’s unfunded Participation
Interest therein shall bear interest payable to the Issuing Lender upon demand, at the rate
equal to, if paid within two (2) Business Days of such date, the Federal Funds Effective
Rate, and thereafter at a rate equal to the Alternate Base Rate.

(f) Modification, Extension. The issuance of any renewal or extension to any
Letter of Credit or any supplement, modification or amendment in the nature of a renewal or
extension thereof, shall, for purposes hereof, be treated in all respects the same as the
issuance of a new Letter of Credit hereunder.

(g) Uniform Customs and Practices. The Issuing Lender shall have the Letters
of Credit be subject to The Uniform Customs and Practice for Documentary Credits, as
published as of the date of issue by the International Chamber of Commerce (the
“UCP”), in which case the UCP may be incorporated therein and deemed in all respects
to be a part thereof.

 

30

 

Section 2.4 Fees.

(a) Commitment Fee. In consideration of the Revolving Commitment, the Borrower
agrees to pay to the Administrative Agent for the ratable benefit of the Lenders (other than
any Defaulting Lender) a commitment fee (the “Commitment Fee”) in an amount equal to
the Applicable Percentage per annum on the average daily unused amount of the aggregate
Revolving Commitments of such Lenders. For purposes of computing the Commitment Fee
hereunder, LOC Obligations shall be considered usage
of the Revolving Commitments, but Swingline Loans shall not be considered usage of the
Revolving Commitments. The Commitment Fee shall be due and payable quarterly in arrears on
the 15th day following the last day of each calendar quarter for the prior calendar quarter.

(b) Letter of Credit Fees. In consideration of the LOC Commitments, the
Borrower agrees to pay to the Issuing Lender a fee (the “Letter of Credit Fee”)
equal to the Applicable Percentage per annum on the average daily maximum amount available
to be drawn under each Letter of Credit from the date of issuance to the date of expiration.
In addition to such Letter of Credit Fee, the Issuing Lender may charge, and retain for its
own account without sharing by the other Lenders, an additional facing fee of one-eighth of
one percent (0.125%) per annum on the average daily maximum amount available to be drawn
under each such Letter of Credit issued by it. The Issuing Lender shall promptly pay over
to the Administrative Agent for the ratable benefit of the Lenders (including the Issuing
Lender, but excluding any Defaulting Lender) the Letter of Credit Fee. The Letter of Credit
Fee shall be due and payable quarterly in arrears on the 15th day following the last day of
each calendar quarter for the prior calendar quarter and on the Revolving Commitment
Termination Date.

(c) Issuing Lender Fees. In addition to the Letter of Credit Fees payable
pursuant to subsection (b) hereof, the Borrower shall pay to the Issuing Lender for
its own account without sharing by the other Lenders the reasonable and customary charges
from time to time of the Issuing Lender with respect to the amendment, transfer,
administration, cancellation and conversion of, and drawings under, such Letters of Credit
(collectively, the “Issuing Lender Fees”).

Section 2.5 Commitment Reductions.

(a) Voluntary Reductions. The Borrower shall have the right to terminate or
permanently reduce the unused portion of the Revolving Committed Amount at any time or from
time to time upon not less than five Business Days’ prior notice to the Administrative Agent
(which shall notify the Lenders thereof as soon as practicable) of each such termination or
reduction, which notice shall specify the effective date thereof and the amount of any such
reduction which shall be in a minimum amount of $5,000,000 or a whole multiple of $1,000,000
in excess thereof and shall be irrevocable and effective upon receipt by the Administrative
Agent, provided that no such reduction or termination shall be permitted if after
giving effect thereto, and to any prepayments of the Revolving Loans made on the effective
date thereof, the sum of the then outstanding aggregate principal amount of the Revolving
Loans plus Swingline Loans plus LOC Obligations would exceed the Revolving
Committed Amount.

(b) Revolving Commitment Termination Date. The Revolving Commitment, the
Swingline Commitment and the LOC Commitment shall automatically terminate on the Revolving
Commitment Termination Date.

 

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Section 2.6 Prepayments.

(a) Optional Prepayments. The Borrower shall have the right to prepay Loans in
whole or in part from time to time; provided, however, that (i) each partial
prepayment of Revolving Loans shall be in a minimum principal amount of $1,000,000 and
integral multiples of $100,000 in excess thereof (or the remaining unpaid amount) and (ii)
each partial prepayment of Swingline Loans shall be in a minimum principal amount of
$100,000 and integral multiples of $50,000 in excess thereof (or the remaining unpaid
amount). The Borrower shall give three Business Days’ irrevocable notice in the case of
LIBOR Rate Loans and irrevocable notice not later than 1:00 p.m. (Houston, Texas time) on
the same Business Day in the case of Alternate Base Rate Loans, to the Administrative Agent
(which shall notify the Lenders thereof as soon as practicable). Subject to the foregoing
terms, amounts prepaid under this Section 2.6(a) shall be applied as the Borrower
elects; provided that if the Borrower fails to specify the application of an optional
prepayment then such prepayment shall be applied to Revolving Loans, first to Alternate Base
Rate Loans and then to LIBOR Rate Loans in direct order of Interest Period maturities. All
prepayments under this Section 2.6(a) shall be subject to Section 2.16, but
otherwise without premium or penalty. Interest on the principal amount prepaid shall be
payable on the next occurring Interest Payment Date that would have occurred had such loan
not been prepaid or, at the request of the Administrative Agent, interest on the principal
amount prepaid shall be payable on any date that a prepayment is made hereunder through the
date of prepayment. Amounts prepaid on the Revolving Loans and the Swingline Loans may be
reborrowed in accordance with the terms hereof.

(b) Mandatory Prepayments.

(i) Revolving Committed Amount. If at any time after the Closing Date,
the sum of the aggregate principal amount of outstanding Revolving Loans
plus Swingline Loans plus LOC Obligations shall exceed the aggregate
Revolving Committed Amount, the Borrower immediately shall prepay the Revolving
Loans (including any Swingline Loans) in the amount of such excess and (after all
Revolving Loans have been repaid) cash collateralize the LOC Obligations, in an
amount sufficient to eliminate such excess.

(ii) Asset Dispositions. Promptly following any Asset Disposition in
excess of $5,000,000 for all such Asset Dispositions occurring during the term of
this Agreement which are not applied to purchase or otherwise acquire replacement
assets or property within 180 days following the receipt by a Credit Party of such
cash proceeds, the Borrowers shall prepay the Loans in an aggregate amount equal to
100% of the Net Cash Proceeds derived from such Asset Disposition that were not
reinvested within such 180 days (such prepayment to be applied as set forth in
clause (v) below).

(iii) Debt Issuances. Promptly, but in any event within three (3)
Business Days, upon receipt by any Credit Party of proceeds from any Debt Issuance,
the Borrower shall prepay the Loans in an aggregate amount equal to one hundred
percent (100%) of the Net Cash Proceeds of such Debt Issuance (such prepayment to be
applied as set forth in clause (v) below).

 

32

 

(iv) Recovery Event. To the extent of cash proceeds received in
connection with a Recovery Event which are in excess of $5,000,000 in the aggregate
and which are not applied to repair or replacement costs in accordance with
Section 6.6(a)(ii), immediately following the 180th day occurring after the
receipt by a Credit Party of such cash proceeds, the Borrower shall prepay the Loans
in an aggregate amount equal to one hundred percent (100%) of such Net Cash Proceeds
(such prepayment to be applied as set forth in clause (v) below).

(v) Application of Mandatory Prepayments. All amounts required to be
paid pursuant to this Section 2.6(b) shall be applied to Revolving Loans
(including Swingline Loans) and (after all Revolving Loans have been repaid) to a
cash collateral account in respect of LOC Obligations. Within the parameters of the
applications set forth above, prepayments shall be applied first to Alternate Base
Rate Loans and then to LIBOR Rate Loans in direct order of Interest Period
maturities. All prepayments under this Section 2.6(b) shall be subject to
Section 2.16 but otherwise without premium or penalty, and be accompanied by
interest on the principal amount prepaid through the date of prepayment.

Section 2.7 Minimum Principal Amount of Tranches.

All borrowings, payments and prepayments in respect of Revolving Loans (other than mandatory
prepayments) shall be in such amounts and be made pursuant to such elections so that after giving
effect thereto the aggregate principal amount thereof comprising any Tranche shall not be less than
$1,000,000 or a whole multiple of $100,000 in excess thereof.

Section 2.8 Default Rate and Payment Dates.

Upon the occurrence, and during the continuance, of an Event of Default, the principal of and,
to the extent permitted by law, interest on the Loans and any other amounts owing hereunder or
under the other Credit Documents shall bear interest, payable on demand, at a per annum rate 2%
greater than the rate which would otherwise be applicable (or if no rate is applicable, whether in
respect of interest, fees or other amounts, then the Alternate Base Rate plus the
Applicable Percentage plus 2%) (the “Default Rate”).

Section 2.9 Conversion Options.

(a) The Borrower may elect from time to time to convert Alternate Base Rate Loans to
LIBOR Rate Loans, by giving the Administrative Agent at least three Business Days’ prior
irrevocable written notice of such election. A form of Notice of Conversion/ Extension is
attached as Schedule 2.9. If the date upon which an Alternate Base Rate Loan is to
be converted to a LIBOR Rate Loan is not a Business Day, then such conversion shall be made
on the next succeeding Business Day and during the period from such last day of an Interest
Period to such succeeding Business Day such Loan shall bear interest as if it were an
Alternate Base Rate Loan. All or any part of outstanding Alternate Base Rate Loans may be
converted as provided herein, provided that (i) no Loan may be converted into a
LIBOR Rate Loan when any Default or Event of Default
has occurred and is continuing and (ii) partial conversions shall be in an aggregate
principal amount of $1,000,000 or a whole multiple of $100,000 in excess thereof.

 

33

 

(b) Any LIBOR Rate Loans may be continued as such upon the expiration of an Interest
Period with respect thereto by compliance by the Borrower with the notice provisions
contained in Section 2.9(a); provided, that no LIBOR Rate Loan may be
continued as such when any Default or Event of Default has occurred and is continuing, in
which case such Loan shall be automatically converted to an Alternate Base Rate Loan at the
end of the applicable Interest Period with respect thereto. If the Borrower shall fail to
give timely notice of an election to continue a LIBOR Rate Loan, and the continuation of
such LIBOR Rate Loans is permitted hereunder, such LIBOR Rate Loans shall be automatically
continued as a one (1) month LIBOR Rate Loan at the end of the applicable Interest Period
with respect thereto.

Section 2.10 Computation of Interest and Fees.

(a) Interest payable hereunder with respect to Alternate Base Rate Loans and Commitment
Fees shall be calculated on the basis of a year of 365 days (or 366 days, as applicable) for
the actual days elapsed. All other fees, interest and all other amounts payable hereunder
shall be calculated on the basis of a 360 day year for the actual days elapsed. The
Administrative Agent shall as soon as practicable notify the Borrower and the Lenders of
each determination of a LIBOR Rate on the Business Day of the determination thereof. Any
change in the interest rate on a Loan resulting from a change in the Alternate Base Rate
shall become effective as of the opening of business on the day on which such change in the
Alternate Base Rate shall become effective. The Administrative Agent shall as soon as
practicable notify the Borrower and the Lenders of the effective date and the amount of each
such change.

(b) Each determination of an interest rate by the Administrative Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower and the Lenders
in the absence of manifest error. The Administrative Agent shall, at the request of the
Borrower, deliver to the Borrower a statement showing the computations used by the
Administrative Agent in determining any interest rate.

Section 2.11 Pro Rata Treatment and Payments.

(a) Each borrowing of Revolving Loans and any reduction of the Revolving Commitments
shall be made pro rata according to the respective Commitment Percentages of
the Lenders. Each payment under this Agreement or any Note shall be applied, first, to any
fees then due and owing by the Borrower pursuant to Section 2.4, second, to interest
then due and owing in respect of the Notes of the Borrower and, third, to principal then due
and owing hereunder and under the Notes of the Borrower. Each payment on account of any
fees pursuant to Section 2.4 shall be made pro rata in accordance
with the respective amounts due and owing (except as to the portion of the Letter of Credit
retained by the Issuing Lender and the Issuing Lender Fees). Each payment (other than
prepayments) by the Borrower on account of principal of and interest on the Revolving Loans
shall be made pro rata according to the respective amounts due and owing in
accordance with

 

34

 

Section 2.6 hereof. Each optional prepayment on account of principal of the Loans shall be applied in accordance with
Section 2.6(a). Each mandatory prepayment on account of principal of the Loans
shall be applied in accordance with Section 2.6(b). All payments (including
prepayments) to be made by the Borrower on account of principal, interest and fees shall be
made without defense, set-off or counterclaim (except as provided in Section
2.17(b)) and shall be made to the Administrative Agent for the account of the Lenders at
the Administrative Agent’s office specified on Schedule 11.2 in Dollars and in
immediately available funds not later than 2:00 p.m. (Houston, Texas time) on the date when
due. The Administrative Agent shall distribute such payments to the Lenders entitled
thereto promptly upon receipt in like funds as received. If any payment hereunder (other
than payments on the LIBOR Rate Loans) becomes due and payable on a day other than a
Business Day, such payment shall be extended to the next succeeding Business Day, and, with
respect to payments of principal, interest thereon shall be payable at the then applicable
rate during such extension. If any payment on a LIBOR Rate Loan becomes due and payable on
a day other than a Business Day, the maturity thereof shall be extended to the next
succeeding Business Day unless the result of such extension would be to extend such payment
into another calendar month, in which event such payment shall be made on the immediately
preceding Business Day.

(b) Allocation of Payments After Event of Default. Notwithstanding any other
provisions of this Credit Agreement to the contrary, after the occurrence and during the
continuance of an Event of Default, all amounts collected or received by the Administrative
Agent or any Lender on account of the Credit Party Obligations 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 Administrative Agent or the Collateral
Agent in connection with enforcing the rights of the Lenders under the Credit Documents and
any protective advances made by the Administrative Agent or the Collateral Agent with
respect to the Collateral under or pursuant to the terms of the Security Documents;

SECOND, to payment of any fees owed to the Administrative Agent;

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 or otherwise with respect to the Credit
Party Obligations owing to such Lender;

FOURTH, to the payment of all of the Credit Party Obligations consisting of accrued
fees and interest;

FIFTH, to the payment of the outstanding principal amount of the Credit Party
Obligations (including the payment or cash collateralization of the outstanding LOC
Obligations);

 

35

 

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

SEVENTH, to the payment of the surplus, if any, to the Borrower or whoever else may be
lawfully entitled to receive such surplus.

In carrying out the foregoing, (i) amounts received shall be applied in the numerical order
provided until exhausted prior to application to the next succeeding category; (ii) each of
the Lenders shall receive an amount equal to its pro rata share (based on the proportion
that the then outstanding Loans and LOC Obligations held by such Lender bears to the
aggregate then outstanding Loans and LOC Obligations) of amounts available to be applied
pursuant to clauses “THIRD”, “FOURTH”, “FIFTH” and “SIXTH” above; and (iii) 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 Administrative Agent in a cash collateral account and applied (A)
first, to reimburse the Issuing Lender from time to time for any drawings under such Letters
of Credit and (B) then, following the expiration of all Letters of Credit, to all other
obligations of the types described in clauses “FIFTH” and “SIXTH” above in the manner
provided in this Section 2.11(b).

Section 2.12 Non-Receipt of Funds by the Administrative Agent.

(a) Unless the Administrative Agent shall have been notified in writing by a Lender
prior to the date a Loan is to be made by such Lender (which notice shall be effective upon
receipt) that such Lender does not intend to make the proceeds of such Loan available to the
Administrative Agent, the Administrative Agent may assume that such Lender has made such
proceeds available to the Administrative Agent on such date, and the Administrative Agent
may in reliance upon such assumption (but shall not be required to) make available to the
Borrower a corresponding amount. If such corresponding amount is not in fact made available
to the Administrative Agent, the Administrative Agent shall be able to recover such
corresponding amount from such Lender. If such Lender does not pay such corresponding
amount forthwith upon the Administrative Agent’s demand therefor, the Administrative Agent
will promptly notify the Borrower, and the Borrower shall immediately pay such corresponding
amount to the Administrative Agent. The Administrative Agent shall also be entitled to
recover from the Lender or the Borrower, as the case may be, interest on such corresponding
amount in respect of each day from the date such corresponding amount was made available by
the Administrative Agent to the Borrower to the date such corresponding amount is recovered
by the Administrative Agent at a per annum rate equal to (i) from the Borrower at the
applicable rate for the applicable borrowing pursuant to the Notice of Borrowing and (ii)
from a Lender at the Federal Funds Effective Rate.

 

36

 

(b) Unless the Administrative Agent shall have been notified in writing by the
Borrower, prior to the date on which any payment is due from it hereunder (which notice
shall be effective upon receipt) that the Borrower does not intend to make such payment, the
Administrative Agent may assume that the Borrower has made such payment when due, and the
Administrative Agent may in reliance upon such assumption (but shall not
be required to) make available to each Lender on such payment date an amount equal to
the portion of such assumed payment to which such Lender is entitled hereunder, and if the
Borrower has not in fact made such payment to the Administrative Agent, such Lender shall,
on demand, repay to the Administrative Agent the amount made available to such Lender. If
such amount is repaid to the Administrative Agent on a date after the date such amount was
made available to such Lender, such Lender shall pay to the Administrative Agent on demand
interest on such amount in respect of each day from the date such amount was made available
by the Administrative Agent to such Lender to the date such amount is recovered by the
Administrative Agent at a per annum rate equal to the Federal Funds Effective Rate.

(c) A certificate of the Administrative Agent submitted to the Borrower or any Lender
with respect to any amount owing under this Section 2.12 shall be conclusive in the
absence of manifest error.

Section 2.13 Inability to Determine Interest Rate.

Notwithstanding any other provision of this Agreement, if (i) the Administrative Agent shall
reasonably determine (which determination shall be conclusive and binding absent manifest error)
that, by reason of circumstances affecting the relevant market, reasonable and adequate means do
not exist for ascertaining LIBOR for such Interest Period, or (ii) the Required Lenders shall
reasonably determine (which determination shall be conclusive and binding absent manifest error)
that the LIBOR Rate does not adequately and fairly reflect the cost to such Lenders of funding
LIBOR Rate Loans that the Borrower has requested be outstanding as a LIBOR Tranche during such
Interest Period, the Administrative Agent shall forthwith give telephone notice of such
determination, confirmed in writing, to the Borrower, and the Lenders at least two Business Days
prior to the first day of such Interest Period. Unless the Borrower shall have notified the
Administrative Agent upon receipt of such telephone notice that it wishes to rescind or modify its
request regarding such LIBOR Rate Loans, any Loans that were requested to be made as LIBOR Rate
Loans shall be made as Alternate Base Rate Loans and any Loans that were requested to be converted
into or continued as LIBOR Rate Loans shall remain as or be converted into Alternate Base Rate
Loans. Until any such notice has been withdrawn by the Administrative Agent, no further Loans
shall be made as, continued as, or converted into, LIBOR Rate Loans for the Interest Periods so
affected.

Section 2.14 Illegality.

Notwithstanding any other provision of this Agreement, if the adoption of or any change in any
Requirement of Law or in the interpretation or application thereof by the relevant Governmental
Authority to any Lender shall make it unlawful for such Lender or its LIBOR Lending Office to make
or maintain LIBOR Rate Loans as contemplated by this Agreement, or to obtain in the interbank
Eurodollar market through its LIBOR Lending Office the funds with which to make such Loans, (a)
such Lender shall promptly (and in any event within ninety (90) days from the date the Lender knew
or should have known of the facts pertaining thereto) notify the Administrative Agent and the
Borrower thereof, (b) the commitment of such Lender hereunder to make LIBOR Rate Loans or continue
LIBOR Rate Loans as such shall forthwith be suspended until the Administrative Agent shall give
notice that the condition or situation which gave rise to the suspension shall no longer exist, and
(c) such Lender’s

 

37

 

Loans then outstanding as LIBOR Rate Loans, if any, shall be converted on the last day of the Interest Period for such
Loans or within such earlier period as required by law as Alternate Base Rate Loans. The Borrower
hereby agrees promptly to pay any Lender, upon its demand, any additional amounts necessary to
compensate such Lender for actual and direct costs (but not including anticipated profits or losses
sustained by virtue of the Lender’s failure to give the Borrower the aforesaid notice within the
prescribed time period) reasonably incurred by such Lender in making any repayment in accordance
with this Section including, but not limited to, any interest or fees payable by such Lender to
lenders of funds obtained by it in order to make or maintain its LIBOR Rate Loans hereunder. A
certificate as to any additional amounts payable pursuant to this Section submitted by such Lender,
through the Administrative Agent, to the Borrower shall constitute prima facie
evidence as to the accuracy of the facts contained therein. Each Lender agrees to use reasonable
efforts (including reasonable efforts to change its LIBOR Lending Office) to avoid or to minimize
any amounts which may otherwise be payable pursuant to this Section; 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.

Section 2.15 Requirements of Law.

(a) If the adoption of or any change in any Requirement of Law or in the interpretation
or application thereof or compliance by any Lender with any request or directive (whether or
not having the force of law) from any central bank or other Governmental Authority made
subsequent to the date hereof:

(i) shall subject such Lender to any tax of any kind whatsoever with respect to
any Letter of Credit or any application relating thereto, any LIBOR Rate Loan made
by it, or change the basis of taxation of payments to such Lender in respect thereof
(except for changes in the rate of tax on the overall net income of such Lender);

(ii) shall impose, modify or hold applicable any reserve, special deposit,
compulsory loan or similar requirement against assets held by, deposits or other
liabilities in or for the account of, advances, loans or other extensions of credit
by, or any other acquisition of funds by, any office of such Lender which is not
otherwise included in the determination of the LIBOR Rate hereunder; or

(iii) shall impose on such Lender any other condition;

and the result of any of the foregoing is to increase the cost to such Lender of making or
maintaining LIBOR Rate Loans or the Letters of Credit or to reduce any amount receivable
hereunder or under any Note, then, in any such case, the Borrower shall promptly pay upon
its demand, any additional amounts necessary to compensate such Lender for such additional
cost or reduced amount receivable which such Lender reasonably deems to be material as
determined by such Lender with respect to its LIBOR Rate Loans or Letters of Credit;
provided, however, such Lender shall promptly (and in any event with ninety
(90) days from the date the Lender knew or should have known of the facts pertaining
thereto) notify the Borrower of the aforesaid facts and the Borrower shall not be
responsible costs or losses sustained by virtue of the Lender’s failure to give
the Borrower the aforesaid notice. A certificate as to any additional amounts payable
pursuant to this Section submitted by such Lender, through the Administrative Agent, to the
Borrower shall constitute prima facie evidence as to the accuracy of the
facts contained therein. Each Lender agrees to use reasonable efforts (including reasonable
efforts to change its Domestic Lending Office or LIBOR Lending Office, as the case may be)
to avoid or to minimize any amounts which might otherwise be payable pursuant to this
paragraph of this Section; 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 to be material.

 

38

 

(b) If any Lender shall have reasonably determined that the adoption of or any change
in any Requirement of Law regarding capital adequacy or in the interpretation or application
thereof or compliance by such Lender or any corporation controlling such Lender with any
request or directive regarding capital adequacy (whether or not having the force of law)
from any central bank or Governmental Authority made subsequent to the date hereof does or
shall have the effect of reducing the rate of return on such Lender’s or such corporation’s
capital as a consequence of its obligations hereunder to a level below that which such
Lender or such corporation could have achieved but for such adoption, change or compliance
(taking into consideration such Lender’s or such corporation’s policies with respect to
capital adequacy) by an amount reasonably deemed by such Lender to be material, then from
time to time, within fifteen (15) days after demand by such Lender, the Borrower shall pay
to such Lender such additional amount as shall be certified by such Lender as being required
to compensate it for such reduction; provided, however, such Lender shall
promptly (and in any event with ninety (90) days from the date the Lender knew or should
have known of the facts pertaining thereto) notify the Borrower of the aforesaid facts and
the Borrower shall not be responsible for costs or losses sustained by virtue of the
Lender’s failure to give the Borrower the aforesaid notice within the prescribed time
period. Such a certificate as to any additional amounts payable under this Section
submitted by a Lender (which certificate shall include a description of the basis for the
computation), through the Administrative Agent, to the Borrower shall constitute
prima facie evidence as to the accuracy of the facts contained therein.

(c) For purposes of this Agreement, the Dodd-Frank Wall Street Reform and Consumer
Protection Act shall be deemed to have gone into effect and been adopted thirty (30) days
after the date of this Agreement.

(d) The agreements in this Section 2.15 shall survive the termination of this
Agreement and payment of the Notes and all other amounts payable hereunder.

Section 2.16 Indemnity.

The Borrower hereby agrees to indemnify each Lender and to hold such Lender harmless from any
funding loss or expense which such Lender may sustain or incur as a consequence of (a) default by
the Borrower in payment of the principal amount of or interest on any Loan by such Lender in
accordance with the terms hereof, (b) default by the Borrower in accepting a borrowing of Loans
after the Borrower has given a notice in accordance with the terms hereof, (c) default by the
Borrower in making any prepayment of Loans after the Borrower has given a
notice in accordance with the terms hereof, and/or (d) the making by the Borrower of a
prepayment of a Loan, or the conversion thereof, on a day which is not the last day of the Interest
Period with respect thereto, in each case including, but not limited to, any such loss or expense
arising from interest or fees payable by such Lender to lenders of funds obtained by it in order to
maintain its Loans hereunder. A certificate as to any additional amounts payable pursuant to this
Section submitted by any Lender, through the Administrative Agent, to the Borrower (which
certificate must be delivered to the Administrative Agent within thirty days following such
default, prepayment or conversion) shall constitute prima facie evidence as to the
accuracy of the facts contained therein. The agreements in this Section shall survive termination
of this Agreement and payment of the Notes and all other amounts payable hereunder.

 

39

 

Section 2.17 Taxes.

(a) All payments made by the Borrower hereunder or under any Note will be, except as
provided in Section 2.17(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) 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 “Taxes”). If any Taxes are so
levied or imposed, the Borrower agrees to pay the full amount of such Taxes, and such
additional amounts as may be necessary so that every payment of all amounts due under this
Agreement or under any Note, after withholding or deduction for or on account of any Taxes,
will not be less than the amount provided for herein or in such Note. The Borrower will
furnish to the Administrative Agent as soon as practicable after the date the payment of any
Taxes is due pursuant to applicable law certified copies (to the extent reasonably available
and required by law) of tax receipts evidencing such payment by the Borrower. The Borrower
agrees to indemnify and hold harmless each Lender, and reimburse such Lender upon its
written request, for the amount of any Taxes so levied or imposed and paid by such Lender.

(b) Each Lender that is not a United States person (as such term is defined in Section
7701(a)(30) of the Code) agrees to deliver to the Borrower and the Administrative 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 Agreement pursuant to Article X (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 Lender, (i) if the Lender is a “bank” within
the meaning of Section 881(c)(3)(A) of the Code, two accurate and complete original signed
copies of Internal Revenue Service Form W-8ECI or W-8BEN (or successor forms) certifying
such Lender’s entitlement to a complete exemption from United States withholding tax with
respect to payments to be made under this Agreement and under any Note, or (ii) if the
Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, either
Internal Revenue Service Form W-8ECI or W-8BEN as set forth in clause (i) above, or
(x) a certificate

 

40

 

substantially in the form of Schedule 2.17 (any such certificate, a “2.17 Certificate”) and
(y) two accurate and complete original signed copies of Internal Revenue Service Form W-8ECI
or W-8BEN (or successor form) certifying such Lender’s entitlement to an exemption from
United States withholding tax and backup withholding tax with respect to payments of
interest to be made under this Agreement and under any Note. In addition, each Lender agrees
that it will deliver upon the Borrower’s request 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 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 2.17(a), but subject
to the immediately succeeding sentence, (x) the Borrower shall be entitled, to the extent it
is required to do so by law, to deduct or withhold 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 Lender which is not a United States
person (as such term is defined in Section 7701(a)(30) of the Code) for U.S. Federal income
tax purposes to the extent that such Lender has not provided to the Borrower U.S. Internal
Revenue Service Forms that establish a complete exemption from such deduction or withholding
and (y) the Borrower shall not be obligated pursuant to Section 2.17(a) hereof to
gross-up payments to be made to a Lender in respect of Taxes imposed by the United States if
(I) such Lender has not provided to the Borrower the Internal Revenue Service Forms required
to be provided to the Borrower pursuant to this Section 2.17(b) or (II) in the case
of a payment, other than interest, to a Lender described in clause (ii) above, to
the extent that such Forms do not establish a complete exemption from withholding of such
Taxes. Notwithstanding anything to the contrary contained in the preceding sentence or
elsewhere in this Section 2.17, the Borrower agrees to pay additional amounts and to
indemnify each Lender in the manner set forth in Section 2.17(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 Taxes.

(c) Each Lender agrees to use reasonable efforts (including reasonable efforts to
change its Domestic Lending Office or LIBOR Lending Office, as the case may be) to avoid or
to minimize any amounts which might otherwise be payable pursuant to this Section;
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 Borrower pays any additional amount pursuant to this Section 2.17
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
Borrower 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 Borrower. In the event that no refund or
credit is obtained with respect to the Borrower’s payments to such Lender pursuant to this
Section 2.17, 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 2.17 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 2.17
to the Borrower or any other party.

 

41

 

(e) The agreements in this Section 2.17 shall survive the termination of this
Agreement and the payment of the Notes and all other amounts payable hereunder.

Section 2.18 Indemnification; Nature of Issuing Lender’s Duties.

(a) In addition to its other obligations under Section 2.3, the Borrower hereby
agrees to protect, indemnify, pay and save the Issuing Lender harmless from and against any
and all claims, demands, liabilities, damages, losses, costs, charges and expenses
(including reasonable attorneys’ fees) that the Issuing Lender may incur or be subject to as
a consequence, direct or indirect, of (i) the issuance of any Letter of Credit or (ii) the
failure of the Issuing Lender to honor a drawing under a Letter of Credit as a result of any
act or omission, whether rightful or wrongful, of any present or future de jure or de facto
government or governmental authority (all such acts or omissions, herein called
“Government Acts”).

(b) As between the Borrower and the Issuing Lender, the Borrower shall assume all risks
of the acts, omissions or misuse of any Letter of Credit by the beneficiary thereof. The
Issuing Lender 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 failure of the beneficiary of a Letter of Credit to comply fully with conditions
required in order to draw upon a Letter of Credit; (iv) 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; (v) for errors in interpretation of technical
terms; (vi) 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 (vii)
for any consequences arising from causes beyond the control of the Issuing Lender,
including, without limitation, any Government Acts. None of the above shall affect, impair,
or prevent the vesting of the Issuing Lender’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 Lender, under or in
connection with any Letter of Credit or the related certificates, if taken or omitted in
good faith, shall not put the Issuing Lender under any resulting liability to the
Borrower. It is the intention of the parties that this Agreement shall be construed
and applied to protect and indemnify the Issuing Lender against any and all risks involved
in the issuance of the Letters of Credit, all of which risks are hereby assumed by the
Borrower, including, without limitation, any and all risks of the acts or omissions, whether
rightful or wrongful, of any Government Authority. The Issuing Lender shall not, in any
way, be liable for any failure by the Issuing Lender 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 Lender.

 

42

 

(d) Nothing in this Section 2.18 is intended to limit the reimbursement
obligation of the Borrower contained in Section 2.3(d) hereof. The obligations of
the Borrower under this Section 2.18 shall survive the termination of this
Agreement. No act or omissions of any current or prior beneficiary of a Letter of Credit
shall in any way affect or impair the rights of the Issuing Lender to enforce any right,
power or benefit under this Agreement.

(e) Notwithstanding anything to the contrary contained in this Section 2.18,
the Borrower shall have no obligation to indemnify the Issuing Lender in respect of any
liability incurred by the Issuing Lender arising out of the gross negligence or willful
misconduct of the Issuing Lender (including action not taken by the Issuing Lender), as
determined by a court of competent jurisdiction (IT BEING THE INTENTION OF THIS PROVISION
THAT SUCH INDEMNIFICATION OBLIGATION WILL BE APPLICABLE REGARDLESS OF WHETHER CAUSED IN
WHOLE OR IN PART BY THE ORDINARY NEGLIGENCE OF ANY OF THE PARTIES BEING INDEMNIFIED).

Section 2.19 Defaulting Lender.

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

(a) fees shall cease to accrue on the unfunded portion of any Commitment of such
Defaulting Lender pursuant to this Agreement;

(b) the Commitments and Obligations of such Defaulting Lender shall not be included in
determining whether the Required Lenders have taken or may take any action hereunder
(including any consent to any amendment, waiver or other modification pursuant to
Section 11.1); provided, that in the case of an amendment, waiver or other
modification requiring the consent of all Lenders or of each Lender affected thereby, the
Defaulting Lender’s consent shall be only be required with respect to (i) a proposed
increase or extension of such Defaulting Lender’s Commitments and (ii) a proposed reduction
or excuse, or a proposed postponement of the scheduled date of payment, of the principal
amount of, or interest or fees payable on, any Loans or LOC Obligations as to any such
Defaulting Lender;

 

43

 

(c) if any Swingline Loans or LOC Obligations are outstanding at the time a Lender
becomes a Defaulting Lender then:

(i) all or any part of the Swingline Loans and LOC Obligations allocable to
such Defaulting Lender shall be reallocated among the non-Defaulting Lenders in
accordance with their respective Revolving Commitment Percentages but only to the
extent the sum of all non-Defaulting Lenders’ Obligations plus such Defaulting
Lender’s allocable share of Swingline Loans and LOC Obligations does not exceed the
total of all non-Defaulting Lenders’ Commitments;

(ii) if the reallocation described in clause (i) above cannot, or can
only partially, be effected, the Borrower shall within one Business Day following
notice by the Administrative Agent (x) first, prepay Swingline Loans allocable to
such Defaulting Lender and (y) second, cash collateralize for the benefit of the
Issuing Lender only the Borrower’s obligations corresponding to such Defaulting
Lender’s allocable share of LOC Obligations (after giving effect to any partial
reallocation pursuant to clause (i) above) for so long as such LOC
Obligations are outstanding;

(iii) if the Borrower cash collateralizes any portion of such Defaulting
Lender’s allocable share of LOC Obligations pursuant to this Section
2.19(c), the Borrower shall not be required to pay any fees to such Defaulting
Lender pursuant to Section 2.4 with respect to such Defaulting Lender’s
allocable share of LOC Obligations during the period such Defaulting Lender’s
allocable share of LOC Obligations is cash collateralized;

(iv) if the allocable share of LOC Obligations of the non-Defaulting Lenders is
reallocated pursuant to this Section 2.19(c), then the fees payable to the
Lenders pursuant to Section 2.4 shall be adjusted in accordance with such
non-Defaulting Lenders’ Revolving Commitment Percentages; and

(v) if all or any portion of such Defaulting Lender’s allocable share of LOC
Obligations is neither cash collateralized nor reallocated pursuant to this
Section 2.19(c), then, without prejudice to any rights or remedies of any
Issuing Lender or any Lender hereunder, all fees that otherwise would have been
payable to such Defaulting Lender (solely with respect to the portion of such
Defaulting Lender’s Commitments that were utilized by such LOC Obligations and any
applicable letter of credit fees) with respect to such Defaulting Lender’s allocable
share of LOC Obligations shall be payable to the Issuing Lender until and to the
extent that such allocable share of LOC Obligations is cash collateralized and/or
reallocated; and

(d) so long as any Lender is a Defaulting Lender, the Swingline Lender shall not be
required to fund any Swingline Loan and the Issuing Lender shall not be required to issue,
amend or increase any Letter of Credit, unless it is satisfied that the related exposure and
each Defaulting Lender’s then outstanding allocable share of LOC Obligations will be 100%
covered by the Commitments of the non-Defaulting Lenders and/or cash collateral will be
provided by the Borrower in accordance with Section 2.19(c), and participating
interests in any such newly issued or increased Letter of Credit
or newly made Swingline Loan shall be allocated among non-Defaulting Lenders in a
manner consistent with Section 2.19(c)(i) (and Defaulting Lenders shall not
participate therein).

 

44

 

(e) if (i) a Bankruptcy Event with respect to a Lender Parent of any Lender shall occur
following the date hereof and for so long as such event shall continue or (ii) the Swingline
Lender or the Issuing Lender has a good faith belief that any Lender has defaulted in
fulfilling its obligations under one or more other agreements in which such Lender commits
to extend credit, the Swingline Lender shall not be required to fund any Swingline Loan and
the Issuing Lender shall not be required to issue, amend or increase any Letter of Credit,
unless the Swingline Lender or the Issuing Lender, as the case may be, shall have entered
into arrangements with the Borrower or such Lender, satisfactory to the Swingline Lender or
the Issuing Lender, as the case may be, to defease any risk to it in respect of such Lender
hereunder.

In the event that the Administrative Agent, the Borrower, the Issuing Lender and the Swingline
Lender each agrees that a Defaulting Lender has adequately remedied all matters that caused such
Lender to be a Defaulting Lender, then the allocable shares of Swingline Loans and the allocable
shares of LOC Obligations of the Lenders shall be readjusted to reflect the inclusion of such
Lender’s Commitments and on such date such Lender shall purchase at par such of the Loans of the
other Lenders (other than Swingline Loans) as the Administrative Agent shall determine may be
necessary in order for such Lender to hold such Loans in accordance with its Revolving Commitment
Percentage.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

To induce the Lenders to enter into this Agreement and to make the Extensions of Credit herein
provided for, the Credit Parties hereby represent and warrant to the Administrative Agent and to
each Lender that:

Section 3.1 Financial Condition.

The balance sheets and the related statements of income and of cash flows of the Borrower for
fiscal year ending March 31, 2010 audited by KPMG, L.L.P. are complete and correct in all material
respects and present fairly in accordance with GAAP the financial condition of the Borrower and its
Subsidiaries as of such dates. Additionally, the most recently provided company-prepared
projections of income and cash flow for the fiscal years ending March 31, 2011 and March 31, 2012
have been prepared in good faith based upon reasonable assumptions. All such financial statements,
including the related schedules and notes thereto, have been prepared in accordance with GAAP
applied consistently throughout the periods involved (except for projections, pro forma statements,
and/or as disclosed therein).

Section 3.2 No Change.

Since March 31, 2010 there has been no development or event which has had or could reasonably
be expected to have a Material Adverse Effect.

 

45

 

Section 3.3 Corporate Existence; Compliance with Law.

Except as set forth on Schedule 3.3, each of the Borrower and the other Credit Parties
(a) is duly organized, validly existing and in good standing under the laws of the jurisdiction of
its organization, (b) has the requisite corporate power and authority to own and operate all its
material property, to lease the material property it operates as lessee and to conduct the business
in which it is currently engaged, (c) is duly qualified to conduct business and in good standing
under the laws of each jurisdiction where its ownership, lease or operation of property or the
conduct of its business requires such qualification except to the extent that the failure to so
qualify or be in good standing could not, in the aggregate, reasonably be expected to have a
Material Adverse Effect and (d) is in compliance with all Requirements of Law except to the extent
that the failure to comply therewith could not, in the aggregate, reasonably be expected to have a
Material Adverse Effect.

Section 3.4 Corporate Power; Authorization; Enforceable Obligations.

Each of the Borrower and the other Credit Parties has full corporate, limited liability
company or limited partnership power and authority, as applicable and the legal right to make,
deliver and perform the Credit Documents to which it is party and has taken all necessary
corporate, limited liability company or limited partnership action, as applicable to authorize the
execution, delivery and performance by it of the Credit Documents to which it is party. No consent
or authorization of, filing with, notice to or other act by or in respect of, any Governmental
Authority or any other Person is required in connection with the borrowings hereunder or with the
execution, delivery or performance of any Credit Document by the Borrower or the other Credit
Parties (other than those which have been obtained) or with the validity or enforceability of any
Credit Document against the Borrower or the other Credit Parties (except such filings as are
necessary in connection with the perfection of the Liens created by such Credit Documents). Each
Credit Document to which it is a party has been duly executed and delivered on behalf of the
Borrower or the other Credit Parties, as the case may be. Each Credit Document to which it is a
party constitutes a legal, valid and binding obligation of the Borrower or the other Credit
Parties, as the case may be, enforceable against the Borrower or such other Credit Party, as the
case may be, in accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer, fraudulent conveyance, or
similar laws affecting the enforcement of creditors’ rights generally and by general equitable
principles (whether enforcement is sought by proceedings in equity or at law).

Section 3.5 No Legal Bar; No Default.

The execution, delivery and performance of the Credit Documents, the borrowings thereunder and
the use of the proceeds of the Loans will not violate any Requirement of Law or any Contractual
Obligation of the Borrower or any other Credit Party (except those as to which waivers or consents
have been obtained), and will not result in, or require, the creation or imposition of any material
Lien on any of its or their respective properties or revenues pursuant to any Requirement of Law or
Contractual Obligation other than the Liens arising under or contemplated in connection with the
Credit Documents. Neither the Borrower nor any other Credit Party is in default under or with
respect to any of its Contractual Obligations in any
respect which could reasonably be expected to have a Material Adverse Effect. No Default or
Event of Default has occurred and is continuing.

 

46

 

Section 3.6 No Material Litigation.

Except as set forth in Schedule 3.6, no litigation, investigation or proceeding of or
before any arbitrator or Governmental Authority is pending or, to the knowledge of the Borrower,
threatened by or against any Credit Party or any of its Subsidiaries or against any of its or their
respective properties or revenues (a) with respect to the Credit Documents or any Loan or any of
the transactions contemplated hereby, or (b) which could reasonably be expected to be adversely
determined, and if adversely determined, could reasonably be expected to have a Material Adverse
Effect.

Section 3.7 Investment Company Act.

Neither the Borrower nor any Credit Party is an “investment company”, or a company
“controlled” by an “investment company”, within the meaning of the Investment Company Act of 1940,
as amended.

Section 3.8 Margin Regulations.

No part of the proceeds of any Loan hereunder will be used directly or indirectly for any
purpose which violates, or which would be inconsistent with, the provisions of Regulation T, U or X
of the Board of Governors of the Federal Reserve System as now and from time to time hereafter in
effect. The Borrower and its Subsidiaries taken as a group do not own “margin stock” except as
identified in the financial statements referred to in Section 3.1 and the aggregate value
of all “margin stock” owned by the Borrower and its Subsidiaries taken as a group does not exceed
25% of the value of their assets.

Section 3.9 ERISA.

Except as set forth in Schedule 3.9, neither a Reportable Event nor an “accumulated
funding deficiency” (within the meaning of Section 412 of the Code or Section 302 of ERISA) has
occurred during the five-year period prior to the date on which this representation is made or
deemed made with respect to any Plan, and each Plan has complied in all material respects with the
applicable provisions of ERISA and the Code, except to the extent that any such occurrence or
failure to comply would not reasonably be expected to have a Material Adverse Effect. No
termination of a Single Employer Plan has occurred resulting in any liability that has remained
underfunded, and no Lien in favor of the PBGC or a Plan has arisen, during such five-year period
which could reasonably be expected to have a Material Adverse Effect. The present value of all
accrued benefits under each Single Employer Plan (based on those assumptions used to fund such
Plans) did not, as of the last annual valuation date prior to the date on which this representation
is made or deemed made, exceed the value of the assets of such Plan allocable to such accrued
benefits by an amount which, as determined in accordance with GAAP, could reasonably be expected to
have a Material Adverse Effect. Neither the Borrower nor any Commonly Controlled Entity is
currently subject to any liability for a complete or partial withdrawal from a Multiemployer Plan
which could reasonably be expected to have a Material Adverse Effect.

 

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Section 3.10 Environmental Matters.

Except as could not reasonably be expected to have a Material Adverse Effect:

(a) To the knowledge of the Borrower and the other Credit Parties, the facilities and
properties comprising real estate owned, leased or operated by the Borrower and the other
Credit Parties or any of their Subsidiaries (the “Properties”) do not contain any
Materials of Environmental Concern in amounts or concentrations which (i) constitute a
violation of, or (ii) could give rise to liability under, any Environmental Law.

(b) To the knowledge of the Borrower and the other Credit Parties, the Properties and
all operations of the Borrower and the other Credit Parties and/or their Subsidiaries at the
Properties are in compliance, and have in the last five years been in compliance, in all
material respects with all applicable Environmental Laws, and there is no contamination at,
under or about the Properties or violation of any Environmental Law with respect to the
Properties or the business operated by the Borrower and the other Credit Parties or any of
their Subsidiaries (the “Business”).

(c) Neither the Borrower nor any of the other Credit Parties has received any written
or actual notice of violation, alleged violation, non-compliance, liability or potential
liability regarding environmental matters or compliance with Environmental Laws with regard
to any of the Properties or the Business, nor does the Borrower or any of the other Credit
Parties nor any of their Subsidiaries have knowledge or reason to believe that any such
notice will be received or is being threatened.

(d) To the knowledge of the Borrower and the other Credit Parties, Materials of
Environmental Concern have not been transported or disposed of from the Properties in
violation of, or in a manner or to a location which could give rise to liability under any
Environmental Law, nor have any Materials of Environmental Concern been generated, treated,
stored or disposed of at, on or under any of the Properties in violation of, or in a manner
that could give rise to liability under, any applicable Environmental Law.

(e) No judicial proceeding or governmental or administrative action is pending or, to
the knowledge of the Borrower and the other Credit Parties, threatened, under any
Environmental Law to which the Borrower or any other Credit Party or any Subsidiary is or
will be named as a party with respect to the Properties or the Business, nor are there any
consent decrees or other decrees, consent orders, administrative orders or other orders, or
other administrative or judicial requirements outstanding under any Environmental Law with
respect to the Properties or the Business.

(f) To the knowledge of the Borrower and the other Credit Parties, there has been no
release or threat of release of Materials of Environmental Concern at or from the
Properties, or arising from or related to the operations of the Borrower or any other Credit
Party or any Subsidiary in connection with the Properties or otherwise in connection with
the Business, in violation of or in amounts or in a manner that could give rise to liability
under Environmental Laws.

 

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Section 3.11 Purpose of Loans.

The proceeds of the Loans have been or will be used (i) to repay certain existing Indebtedness
of the Borrower, (ii) to finance Permitted Acquisitions, (iii) to finance the repurchase of Capital
Stock of the Borrower as permitted under Section 6.12 and (iv) to provide for working
capital and other general corporate purposes.

Section 3.12 Subsidiaries.

Set forth on Schedule 3.12 is a complete and accurate list of all direct and indirect
Subsidiaries of the Credit Parties as of the Closing Date. Information on the attached Schedule
includes state of incorporation; the number of shares of each class of Capital Stock or other
equity interests outstanding; the number and percentage of outstanding shares of each class of
stock; and the number and effect, if exercised, of all outstanding options, warrants, rights of
conversion or purchase and similar rights. The outstanding Capital Stock and other equity
interests of all such Subsidiaries is validly issued, fully paid and non-assessable and is owned,
free and clear of all Liens (other than those arising under or contemplated in connection with the
Credit Documents).

Section 3.13 Ownership.

Each of the Credit Parties and its Subsidiaries is the owner of, and has transferable title
to, or a valid leasehold interest in, all of its respective material assets except as may be
permitted pursuant to Section 6.14 hereof and none of such assets is subject to any Lien
other than Permitted Liens.

Section 3.14 Indebtedness.

Except as otherwise permitted under Section 6.1, the Borrower and its Subsidiaries
have no Indebtedness.

Section 3.15 Taxes.

Each of the Borrower and its Subsidiaries has filed, or caused to be filed, all material tax
returns (federal, state, local and foreign) required to be filed and paid (a) all amounts of taxes
shown thereon to be due (including interest and penalties) and (b) 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 (i) which are not yet delinquent or
(ii) that are being contested in good faith and by proper proceedings, and against which adequate
reserves are being maintained in accordance with GAAP. Neither the Borrower nor any of its
Subsidiaries is aware as of the Closing Date of any proposed tax assessments against it or any of
its Subsidiaries which could reasonably be expected to have a Material Adverse Effect.

 

49

 

Section 3.16 Intellectual Property.

Each of the Borrower and its Subsidiaries owns, or has the legal right to use, all trademarks,
trade names, copyrights, technology, know-how and processes necessary for each of
them to conduct its business as currently conducted. Set forth on Schedule 3.16 is a
list of all material Intellectual Property owned by each of the Borrower and its Subsidiaries as of
the Closing Date (or as of such later date on which the Borrower may update such schedule) or that
the Borrower or any of its Subsidiaries has the right to use other than corporate names and assumed
names. Except as provided on Schedule 3.16, no claim has been asserted and is pending by
any Person challenging or questioning the use of any such material Intellectual Property or the
validity or effectiveness of any such material Intellectual Property, nor does the Borrower or any
of its Subsidiaries know of any such claim, and, to the knowledge of the Borrower or any of its
Subsidiaries, the use of such material Intellectual Property by the Borrower or any of its
Subsidiaries does not infringe on the rights of any Person, except for such claims and
infringements that in the aggregate, could not reasonably be expected to have a Material Adverse
Effect. Schedule 3.16 may be updated from time to time by the Borrower to include new
material Intellectual Property by giving written notice thereof to the Administrative Agent.

Section 3.17 Solvency.

The fair saleable value of the assets of the Borrower individually, and of the Credit Parties
taken as a whole, measured on a going concern basis, exceeds all probable liabilities, including
those to be incurred pursuant to this Credit Agreement. Neither the Borrower individually, nor the
Credit Parties taken as a whole (a) has unreasonably small capital in relation to the business in
which it is or proposes to be engaged or (b) has incurred, or believes that it will incur after
giving effect to the transactions contemplated by this Credit Agreement, debts beyond its ability
to pay such debts as they become due.

Section 3.18 Investments.

All Investments of each of the Borrower and its Subsidiaries are Permitted Investments.

Section 3.19 Location of Collateral.

Set forth on Schedule 3.19(a) is a list of all locations (other than Remote Sales
Offices) where any tangible personal property of the Borrower and its Subsidiaries is located as of
the Closing Date (or such later date on which the Borrower may update such schedule), including
county and state where located. Set forth on Schedule 3.19(b) is the chief executive
office and principal place of business of each of the Borrower and its Subsidiaries as of the
Closing Date (or such later date on which the Borrower may update such schedule). Schedule
3.19(a) and 3.19(b) may be updated from time to time by the Borrower to include new
properties or locations by giving written notice thereof to the Administrative Agent (in which
event the Borrower shall use its commercially reasonable efforts to deliver to the Administrative
Agent, promptly after receiving a written request from Administrative Agent therefor, a landlord
lien waiver letter in form and substance reasonably acceptable to the Administrative Agent and the
Borrower from each of the landlords of those new locations).

 

50

 

Section 3.20 No Burdensome Restrictions.

None of the Borrower or any of its Subsidiaries is a party to any agreement or instrument or
subject to any other obligation or any charter or corporate restriction or any provision of any
applicable law, rule or regulation which, individually or in the aggregate, could reasonably
be expected to have a Material Adverse Effect.

Section 3.21 Brokers’ Fees.

None of the Borrower or any of its Subsidiaries has any obligation to any Person in respect of
any finder’s, broker’s, investment banking or other similar fee in connection with any of the
transactions contemplated under the Credit Documents other than the closing and other fees payable
pursuant to this Credit Agreement.

Section 3.22 Labor Matters.

There are no collective bargaining agreements or Multiemployer Plans covering the employees of
the Borrower or any of its Subsidiaries as of the Closing Date, other than as set forth in
Schedule 3.22 hereto, and none of the Borrower or any of its Subsidiaries as of the Closing
Date (i) has suffered any strikes, walkouts, work stoppages or other material labor difficulty
within the last three years or since the date of acquisition of such Subsidiary, whichever is
later, other than as set forth in Schedule 3.22 hereto or (ii) has knowledge of any
potential or pending strike, walkout or work stoppage, which could reasonably be expected to have a
Material Adverse Effect.

Section 3.23 Accuracy and Completeness of Information.

All factual information heretofore or contemporaneously furnished by or on behalf of any
Credit Party or any of its Subsidiaries to the Administrative Agent or any Lender for purposes of
or in connection with this Agreement or any other Credit Document, or any transaction contemplated
hereby or thereby, is true and accurate in all material respects and not incomplete by omitting to
state any material fact necessary to make such information not misleading when taken together with
all other information provided to Lender. There is no fact now known to the Borrower, any other
Credit Party or any of their Subsidiaries which has, or could reasonably be expected to have, a
Material Adverse Effect which fact has not been set forth herein, in the financial statements of
the Borrower and its Subsidiaries furnished to the Administrative Agent and/or the Lenders, or in
any certificate, opinion or other written statement made or furnished by any Credit Party to the
Administrative Agent and/or the Lenders.

Section 3.24 Material Contracts.

Except as otherwise set forth on Schedule 3.24, all Material Contracts of the Credit
Parties existing as of the Closing Date have been filed with the SEC in compliance in all material
respects with Requirements of Law and are in full force and effect as of the Closing Date.

Section 3.25 Security Documents.

The Security Documents create valid security interests in, and Liens on, the Collateral
purported to be covered thereby, which security interests and Liens are currently (or will be, upon
the filing of appropriate financing statements and the recordation of the applicable mortgage
instruments in each case in favor of the Collateral Agent) perfected security interests and Liens,
prior to all other Liens other than Permitted Liens.

 

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Section 3.26 Insurance.

As of the Closing Date, the insurance coverage of the Credit Parties is outlined as to
carrier, policy number, expiration date, type and amount on Schedule 5.5(b). The Credit
Parties maintain insurance in accordance in at least such amounts and against at least such risks
as are usually insured against in the same general area by companies engaged in the same or similar
business.

ARTICLE IV

CONDITIONS PRECEDENT

Section 4.1 Conditions to Closing Date and Initial Revolving Loans.

This Agreement shall become effective upon, and the obligation of each Lender to make the
initial Revolving Loans on the Closing Date is subject to, the satisfaction of the following
conditions precedent:

(a) Execution of Agreement. The Administrative Agent shall have received (i)
counterparts of this Agreement executed by a duly authorized officer of each party hereto,
(ii) for the account of each Lender requesting same, a Revolving Note, (iii) for the account
of the Swingline Lender, a Swingline Note and (iii) counterparts of the Security Agreement,
the Pledge Agreement, the Intercreditor Agreement and the Collateral Agency Agreement, in
each case conforming to the requirements of this Agreement and executed by duly authorized
officers of the Credit Parties.

(b) Authority Documents. Except as set forth on Schedule 3.3, the
Administrative Agent shall have received the following:

(i) Articles of Incorporation. Copies of the articles or certificate
of incorporation of the Borrower certified to be true and complete as of a recent
date by the appropriate governmental authority of the state of its incorporation.

(ii) Resolutions. Copies of resolutions of the board of directors or
similar governing body of each Credit Party approving and adopting the Credit
Documents, the transactions contemplated therein and authorizing execution and
delivery thereof, certified by an officer of such Credit Party as of the Closing
Date to be true and correct and in force and effect as of such date.

(iii) Bylaws. A copy of the bylaws of the Borrower certified by an
officer of Borrower as of the Closing Date to be true and correct and in force and
effect as of such date.

(iv) Good Standing. Copies of (i) certificates of good standing,
existence or its equivalent with respect to Borrower certified as of a recent date
by the appropriate governmental authorities of the state of incorporation and each
other state in which the failure to so qualify and be in good standing could
reasonably be expected to have a Material Adverse Effect on the business or
operations of the Borrower and its Subsidiaries in such state and (ii) a
certificate indicating payment by Borrower of all corporate franchise taxes
certified as of a recent date by the appropriate governmental taxing authorities.

 

52

 

(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) Legal Opinions of Counsel. The Administrative Agent shall have received an
opinion of Haynes and Boone, LLP, counsel for the Borrower, dated the Closing Date and
addressed to the Administrative Agent and the Lenders in a form or forms reasonably
acceptable to the Administrative Agent.

(d) Personal Property Collateral. The Administrative Agent shall have
received, in form and substance satisfactory to the Administrative Agent:

(i) searches of Uniform Commercial Code filings in the jurisdiction of the
chief executive office of each Credit Party and each jurisdiction where any
Collateral is located or where a filing would need to be made in order to perfect
the Collateral Agent’s security interest in the Collateral, copies of the financing
statements on file in such jurisdictions and evidence that no Liens exist other than
Permitted Liens;

(ii) duly executed UCC financing statements for each appropriate jurisdiction
as is necessary, in the Administrative Agent’s sole discretion, to perfect the
Collateral 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
Administrative Agent in order to perfect the Collateral Agent’s security interest in
the Collateral consisting of intellectual property;

(iv) all stock certificates evidencing the Capital Stock pledged to the
Collateral Agent pursuant to the Pledge Agreement, together with duly executed in
blank undated stock powers attached thereto (unless, with respect to the pledged
Capital Stock of any Foreign Subsidiary, such stock powers are deemed unnecessary by
the Administrative Agent in its reasonable discretion under the law of the
jurisdiction of incorporation of such Person);

(v) all instruments and chattel paper evidencing obligations in excess of
$1,000,000 in the aggregate in the possession of any of the Credit Parties, together
with allonges or assignments as may be necessary or appropriate to perfect the
Collateral Agent’s security interest in such Collateral;

(vi) duly executed consents as are necessary, in the Administrative Agent’s
sole discretion, to perfect the Collateral Agent’s security interest in the
Collateral; and

 

53

 

(vii) in the case of any personal property Collateral located at premises
leased by a Credit Party, such estoppel letters, consents and waivers from the
landlords on such real property as may be required by and in form and substance
satisfactory to the Administrative Agent.

(e) Liability and Casualty Insurance. The Administrative Agent shall have
received copies of insurance policies or certificates of insurance evidencing liability and
casualty insurance meeting the requirements set forth herein or in the Security Documents.
The Collateral Agent shall be named as loss payee and additional insured on all such
insurance policies covering Collateral for the benefit of the Lenders.

(f) Intentionally Left Blank.

(g) Litigation. There shall not exist any pending or threatened litigation,
proceeding, injunction, order, claim or investigation affecting or relating to Borrower or
any of its Subsidiaries or the transactions contemplated by this Agreement, or the other
Credit Documents or the transactions contemplated by this Agreement or the other Credit
Documents that could reasonably be expected to have a Material Adverse Effect, that has not
been settled, dismissed, vacated, discharged or terminated prior to the Closing Date.

(h) Solvency Evidence. The Administrative Agent shall have received an
officer’s certificate prepared by the chief accounting officer of the Borrower as to the
financial condition, solvency and related matters of the Borrower individually, and the
Credit Parties taken as a whole, in each case after giving effect to the initial borrowings
under the Credit Documents, in substantially the form of Schedule 4.1(h) hereto.

(i) Account Designation Letter. The Administrative Agent shall have received
the executed Account Designation Letter in the form of Schedule 1.1(a) hereto.

(j) [Reserved].

(k) Corporate Structure. The corporate, capital and ownership structure of the
Borrower and the other Credit Parties shall be as described in Schedule 3.12.

(l) Government Consent. The Administrative Agent shall have received evidence
that all governmental, shareholder and material third party consents and approvals necessary
in connection with the transactions contemplated hereby have been obtained and all
applicable waiting periods have expired without any action being taken by any authority that
could restrain, prevent or impose any material adverse conditions on the transactions or
that could seek or threaten any of the foregoing.

(m) Compliance with Laws. The transactions contemplated hereby shall be in
compliance with all applicable laws and regulations (including all applicable securities and
banking laws, rules and regulations).

(n) Bankruptcy. There shall be no bankruptcy or insolvency proceedings with
respect to the Borrower or any of its Subsidiaries.

 

54

 

(o) Financial Information. The Administrative Agent shall have received copies
of the financial information referred to in Section 3.1 hereof, each in form and
substance reasonably satisfactory to the Administrative Agent.

(p) Material Adverse Change. Since March 31, 2010, no development or event
which has had or could reasonably be expected to have a Material Adverse Effect shall have
occurred.

(q) [Reserved].

(r) Officer’s Certificates. The Administrative Agent shall have received a
certificate or certificates executed by a responsible officer of the Borrower as of the
Closing Date stating that (i) no action, suit, investigation or proceeding is pending or, to
the knowledge of any Credit Party, 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 (ii) immediately after
giving effect to this Credit Agreement, the other Credit Documents and all the transactions
contemplated therein to occur on such date, (A) no Default or Event of Default exists, (B)
all representations and warranties contained herein and in the other Credit Documents are
true and correct in all material respects, and (C) the Credit Parties are in compliance with
each of the financial covenants set forth in Section 5.9.

(s) Environmental Certificate. The Administrative Agent shall have received a
certificate executed by a Responsible Officer of the Borrower as of the Closing Date stating
that, to the best of his knowledge and except as could not reasonably be expected to have a
Material Adverse Effect, (a) the Properties do not contain any Materials of Environmental
Concern in amounts or concentrations which (i) constitute a violation of, or (ii) would give
rise to liability under, any Environmental Law; (b) the Properties and all operations of the
Borrower and the other Credit Parties and/or their Subsidiaries at the Properties are in
compliance, and have in the last five years or since the date of acquisition of such
Subsidiary, whichever is later, been in compliance, in all material respects with all
applicable Environmental Laws, and there is no contamination at, under or about the
Properties or violation of any Environmental Law with respect to the Properties or Business;
(c) neither the Borrower nor any of the other Credit Parties has received any written notice
of violation, alleged violation, non-compliance, liability or potential liability regarding
compliance with Environmental Laws with regard to any of the Properties or the Business, nor
does the Borrower or any of the other Credit Parties nor any of their Subsidiaries have any
awareness of or reason to believe that any such notice will be received or is being
threatened; (d) Materials of Environmental Concern have not been transported or disposed of
from the Properties in violation of, or in a manner or to a location which would give rise
to liability under any Environmental Law, nor have any Materials of Environmental Concern
been generated, treated, stored or disposed of at, on or under any of the Properties in
violation of, or in a manner that would give rise to liability under, any applicable
Environmental Law; (e) no judicial proceeding or governmental or administrative action is
pending or, to the knowledge of the Borrower and the other Credit Parties, threatened, under
any Environmental Law to which the Borrower or any other Credit Party or any Subsidiary is
or will be named as a party with
respect to the Properties or the Business, nor are there any consent decrees or other
decrees, consent orders, administrative orders or other orders, or other binding and
enforceable Requirements of Law outstanding under any Environmental Law applicable to the
Properties or the Business; and (f) there has been no release or threat of release of
Materials of Environmental Concern at or from the Properties, or arising from or related to
the operations of the Borrower or any other Credit Party or any Subsidiary in connection
with the Properties, in violation of or in amounts or in a manner that would give rise to
liability under Environmental Laws.

 

55

 

(t) Additional Matters. All other documents and legal matters in connection
with the transactions contemplated by this Agreement shall be reasonably satisfactory in
form and substance to the Administrative Agent and its counsel.

Section 4.2 Conditions to All Extensions of Credit.

The obligation of each Lender to make any Extension of Credit hereunder is subject to the
satisfaction of the following conditions precedent on the date of making such Extension of Credit:

(a) Representations and Warranties. The representations and warranties made by
the Credit Parties herein, in the Credit Documents or which are contained in any certificate
furnished at any time under or in connection herewith shall be true and correct in all
material respects on and as of the date of such Extension of Credit as if made on and as of
such date (except for those which expressly relate to an earlier date).

(b) No Default or Event of Default. No Default or Event of Default shall have
occurred and be continuing on such date or after giving effect to the Extension of Credit to
be made on such date unless such Default or Event of Default shall have been waived in
accordance with this Agreement.

(c) Compliance with Commitments. Immediately after giving effect to the making
of any such Extension of Credit (and the application of the proceeds thereof), (i) the sum
of the aggregate principal amount of outstanding Revolving Loans plus Swingline
Loans plus LOC Obligations shall not exceed the aggregate Revolving Committed
Amount, (ii) the Swingline Loans shall not exceed the Swingline Commitment and (iii) the LOC
Obligations shall not exceed the LOC Committed Amount.

(d) Additional Conditions to Revolving Loans. If such Loan is made pursuant to
Section 2.1, all conditions set forth in such Section shall have been satisfied.

(e) Additional Conditions to Swingline Loan. If such Loan is made pursuant to
Section 2.2, all conditions set forth in such Section shall have been satisfied.

(f) Additional Conditions to Letters of Credit. If such Extension of Credit is
made pursuant to Section 2.3, all conditions set forth in such Section shall have
been satisfied.

 

56

 

Each request for an Extension of Credit and each acceptance by the Borrower of any such
Extension of Credit shall be deemed to constitute a representation and warranty by the Borrower as
of the date of such Extension of Credit that the applicable conditions in paragraphs (a)
through (f) of this Section have been satisfied.

ARTICLE V

AFFIRMATIVE COVENANTS

Each Credit Party hereby covenants and agrees that on the Closing Date, and thereafter for so
long as this Agreement is in effect and until the Commitments have terminated, no Note remains
outstanding and unpaid and the Credit Party Obligations, together with interest, Commitment Fees
and all other amounts owing to the Administrative Agent or any Lender hereunder, are paid in full,
the Borrower shall, and shall cause each of its Subsidiaries (other than in the case of
Sections 5.1, 5.2 or 5.7 hereof), to:

Section 5.1 Financial Statements.

Furnish to the Administrative Agent and each of the Lenders:

(a) Annual Financial Statements. As soon as available, but in any event within
one hundred twenty (120) days after the end of each fiscal year, a copy of the consolidated
balance sheet of the Borrower and its consolidated Subsidiaries as at the end of such fiscal
year and the related consolidated statements of income and retained earnings and of cash
flows of the Borrower and its consolidated Subsidiaries for such year, which consolidated
statements shall be audited by a firm of independent certified public accountants of
nationally recognized standing reasonably acceptable to the Administrative Agent, setting
forth in each case in comparative form the figures for the previous year, reported on
without a “going concern” or like qualification or exception, or qualification indicating
that the scope of the audit was inadequate to permit such independent certified public
accountants to certify such financial statements without such qualification;

(b) Quarterly Financial Statements. As soon as available and in any event
within sixty (60) days after the end of each of the first three fiscal quarters of the
Borrower, a company-prepared consolidated balance sheet of the Borrower and its consolidated
Subsidiaries as at the end of such period and related company-prepared consolidated
statements of income and retained earnings and of cash flows for the Borrower and its
consolidated Subsidiaries for such quarterly period and for the portion of the fiscal year
ending with such period, in each case setting forth in comparative form consolidated figures
for the corresponding period or periods of the preceding fiscal year (subject to normal
year-end audit adjustments);

(c) Annual Budget Plan and Financial Projections. As soon as available, but in
any event within ninety (90) days after the beginning of each fiscal year, a copy of
detailed projections of the income statements, cash flow and balance sheets of the Borrower
and its consolidated Subsidiaries for each fiscal year through the Maturity Date, in form
and detail reasonably acceptable to the Administrative Agent and the
Required Lenders, together with a summary of the material assumptions made in the
preparation of such annual budget or plan and financial projections;

 

57

 

all such financial statements to be complete and correct in all material respects (subject, in the
case of interim statements, to normal recurring year-end audit adjustments) and to be prepared in
reasonable detail and, in the case of the annual and quarterly financial statements provided in
accordance with subsections (a) and (b) above, in accordance with GAAP applied
consistently throughout the periods reflected therein and further accompanied by a description of,
and an estimation of the effect on the financial statements on account of, a change, if any, in the
application of accounting principles as provided in Section 1.3.

Documents required to be delivered pursuant to Section 5.1(a) or (b), or
5.2(c) (to the extent any such documents are included in materials otherwise filed with the
SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on
the date (i) on which the Borrower posts such documents, or provides a link thereto to EDGAR (or
such other free, publicly-accessible Internet database that may be established and maintained by
the SEC as a substitute for or successor to EDGAR) or on the Borrower’s website on the Internet as
its principal website address; or (ii) on which such documents are posted on the Borrower’s behalf
on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have
access (whether a commercial, third-party website or whether sponsored by the Administrative
Agent); provided that the Borrower shall notify (which may be by facsimile or electronic mail) the
Administrative Agent of the posting of any such documents and provide to the Administrative Agent
by electronic mail electronic versions (i.e., soft copies) of such documents.

Section 5.2 Certificates; Other Information.

Furnish to the Administrative Agent and each of the Lenders:

(a) concurrently with the delivery of the financial statements referred to in
Section 5.1(a) above, a certificate of the independent certified public accountants
reporting on such financial statements stating that in making the examination necessary
therefor no knowledge was obtained of any Default or Event of Default, except as specified
in such certificate;

(b) concurrently with the delivery of the financial statements referred to in
Sections 5.1(a) and 5.1(b) above, a certificate of a Responsible Officer
stating that, to the best of such Responsible Officer’s knowledge, each of the Credit
Parties during such period observed or performed in all material respects all of its
covenants and other agreements, and satisfied in all material respects every condition,
contained in this Agreement to be observed, performed or satisfied by it, and that such
Responsible Officer has obtained no knowledge of any Default or Event of Default except as
specified in such certificate and such certificate shall include the calculations in
reasonable detail required to indicate compliance with Sections 5.9, 6.1 and
6.4(b);

(c) within thirty (30) days after the same are sent, copies of all reports (other than
those otherwise provided pursuant to Section 5.1 and those which are of a
promotional nature) and other financial information which the Borrower sends to its
shareholders or noteholders generally, and within thirty days after the same are filed,
copies of all financial statements and non-confidential reports which the Borrower may
make to, or file with the SEC;

 

58

 

(d) within thirty (30) days after receipt thereof, a copy of any other non-routine
report or “management letter” submitted by independent accountants to the Borrower or any of
its Subsidiaries in connection with any annual, interim or special audit of the books of
such Person; and

(e) in connection with the consummation of any Permitted Acquisition, the Borrower
shall satisfy the following requirements:

(i) within thirty (30) days after completion of the acquisition, the Borrower
shall have delivered to the Administrative Agent a Pro Forma Compliance Certificate
dated as of the expected closing date of the acquisition;

(ii) within thirty (30) days after completion of the acquisition, the Borrower
shall have delivered to the Administrative Agent a description of the acquisition
(including, without limitation, a description of the Person or assets to be
acquired, the purchase price, the manner of acquisition and the payment structure;

(iii) within thirty (30) days after completion of the acquisition, the Borrower
shall have delivered to the Administrative Agent all documents required pursuant to
Section 5.10 hereof pursuant to the provisions thereof;

(iv) the Borrower shall have delivered to the Administrative Agent copies of
the purchase agreement, merger agreement or similar governing document (including
schedules thereto to the extent such schedules are then available and relate to the
Borrower’s compliance with this Agreement, but excluding exhibit(s) and all opinions
of counsel to the seller and/or the Person to be acquired) with respect to the
acquisition within sixty (60) days after the closing of the acquisition; and

(v) within thirty (30) days after completion of the acquisition, the Borrower
shall have provided to the Administrative Agent such other documents reasonably
requested by the Administrative Agent in connection with such acquisition.

(f) in connection with any acquisition other than a Permitted Acquisition, for which
the consent of the Required Lenders is required, the Borrower shall comply with the
following additional requirements:

(i) the Borrower shall have delivered to the Lenders, not less than ten (10)
business days prior to the proposed closing date of the acquisition, a description
of the acquisition (including, without limitation, a description of the Person or
assets to be acquired, the purchase price, the manner of acquisition, the payment
structure and any other terms and conditions reasonably required by the
Administrative Agent) and a draft copy of the purchase agreement, merger agreement
or similar governing document (including schedules thereto to the
extent such schedules are then available and relate to the Borrower’s
compliance with this Agreement, but excluding exhibits) with respect to the
acquisition;

 

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(ii) the Borrower shall have delivered to the Lenders, not less than ten (10)
business days prior to the proposed closing date of the acquisition, all due
diligence reports prepared by or on behalf of the Borrower or the applicable
Subsidiary thereof;

(iii) the Borrower shall have delivered to the Lenders, not less than ten (10)
business days prior to the proposed closing date of the acquisition, the historical
financial statements of the Person to be acquired, if applicable, for the most
recent two (2) year period and the most recent interim financial statements of the
Person to be acquired;

(iv) the Borrower shall have delivered to the Lenders, not less than ten (10)
business days prior to the proposed closing date of the acquisition, a projected
income statement, statement of cash flows and balance sheet (including, without
limitation, a summary of assumptions and pro forma adjustments made in connection
therewith) of the Person to be acquired, if applicable, prepared on a quarterly
basis for the ensuing three (3) year period;

(v) the Borrower shall have delivered to the Administrative Agent, on or before
the closing date of the acquisition, a Pro Forma Compliance Certificate;

(vi) the Borrower shall have delivered to the Administrative Agent all
documents required pursuant to Section 5.10 hereof pursuant to the
provisions thereof;

(vii) the Borrower shall deliver to the Administrative Agent, promptly after
the closing date of the acquisition, copies of all opinions of counsel to the
seller and/or the Person to be acquired which are delivered in connection with the
acquisition;

(viii) the Borrower shall have delivered to the Administrative Agent evidence
of the approval of the acquisition by the board of directors or equivalent governing
body (or the shareholders) of the seller and/or or the Person to be acquired within
twenty (20) days after the closing of the acquisition;

(ix) the Borrower shall have delivered to the Administrative Agent a copy of
the final purchase agreement, merger agreement or similar governing document
(including schedules thereto to the extent such schedules are then available and
relate to the Borrower’s compliance with this Agreement, but excluding exhibits)
with respect to the acquisition on the closing of the acquisition within twenty (20)
days after the closing of the acquisition; and

(x) the Borrower shall have provided to the Administrative Agent such other
documents reasonably requested by the Administrative Agent in connection with such
acquisition.

 

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(g) promptly, such additional financial and other information as the Administrative
Agent, on behalf of any Lender, may from time to time reasonably request.

Section 5.3 Payment of Obligations.

Pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as
the case may be, in accordance with industry practice (subject, where applicable, to specified
grace periods) all its material obligations of whatever nature and any additional costs that are
imposed as a result of any failure to so pay, discharge or otherwise satisfy such obligations,
except when the amount or validity of such obligations and costs is currently being contested in
good faith by appropriate proceedings and reserves, if applicable, in conformity with GAAP with
respect thereto have been provided on the books of the Borrower or its Subsidiaries as the case may
be.

Section 5.4 Conduct of Business and Maintenance of Existence.

Continue to engage in business of the same general type as now conducted by it on the Closing
Date and preserve, renew and keep in full force and effect its corporate existence (except for
transactions permitted by Section 6.6(b)) and take all reasonable action to maintain all
rights, privileges and franchises necessary or desirable in the normal conduct of its business and
comply with all Contractual Obligations and Requirements of Law applicable to it except to the
extent that failure to comply with this Section 5.4 could not, in the aggregate, reasonably
be expected to have a Material Adverse Effect.

Section 5.5 Maintenance of Property; Insurance.

(a) Keep all property useful and necessary in its business in good working order and
condition (immaterial portions of such property and ordinary wear and tear and obsolescence
excepted);

(b) Maintain with financially sound and reputable insurance companies insurance on all
its material property (including without limitation its material tangible Collateral) in at
least such amounts and against at least such risks as are usually insured against in the
same general area by companies engaged in the same or a similar business; and furnish to the
Administrative Agent, upon written request, full information as to the insurance carried;
provided, however, that the Borrower and its Subsidiaries may maintain self
insurance plans to the extent companies of similar size and in similar businesses do so.
The Collateral Agent shall be named as loss payee or mortgagee, as its interest may appear,
with respect to casualty policies and/or additional insured with respect to any liability
insurance providing coverage in respect of any Collateral, and each provider of any such
insurance shall agree, by endorsement upon the policy or policies issued by it or by
independent instruments furnished to the Collateral Agent, that it will give the Collateral
Agent thirty (30) days prior written notice before any such policy or policies shall be
altered or canceled, and that no act or default of the Borrower or any of its Subsidiaries
or any other Person shall affect the rights of the Collateral Agent or the Administrative
Agent or the Lenders under such policy or policies. The
insurance coverage of the Borrower and its Subsidiaries as of the Closing Date is
outlined as to carrier, policy number, expiration date, type and amount on Schedule
5.5(b); and

 

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(c) In case of any loss, damage to or destruction of a material portion of the
Collateral of any Credit Party or any part thereof, such Credit Party shall promptly give
written notice thereof to the Administrative Agent generally describing the nature and
extent of such loss, damage or destruction. In case of any loss, damage to or destruction
of the Collateral of any Credit Party or any part thereof such Credit Party will ensure that
the net insurance proceeds of any such event are collected and applied in accordance with
the applicable provisions of this Agreement.

Section 5.6 Inspection of Property; Books and Records; Discussions.

Keep proper books of records and account in which full, true and correct entries in compliance
with all Requirements of Law shall be made of all dealings and transactions in relation to its
businesses and activities and, in the case of Borrower, sufficient to permit reporting in
accordance with GAAP; and permit, during regular business hours and upon reasonable notice by the
Administrative Agent or any Lender, the Administrative Agent or any Lender to visit and inspect any
of its properties and examine and make abstracts from any of its books and records (other than
materials protected by the attorney-client privilege and materials which the Borrower may not
disclose without violation of a confidentiality obligation binding upon it) at any reasonable time
and as often as may reasonably be desired, and to discuss the business, operations, properties and
financial and other condition of the Borrower and its Subsidiaries with officers and employees of
the Borrower and its Subsidiaries and with their independent certified public accountants.

Section 5.7 Notices.

Give notice in writing to the Administrative Agent (which shall promptly transmit such notice
to each Lender) of:

(a) promptly but in any event within two (2) Business Days after the Borrower knows or
has reason to know thereof of the occurrence of any Default or Event of Default;

(b) promptly, any default or event of default under any Contractual Obligation of the
Borrower or any of its Subsidiaries or Material Contracts which could reasonably be expected
to have a Material Adverse Effect;

(c) promptly, any litigation, or any investigation or proceeding known to the Borrower,
affecting the Borrower or any of its Subsidiaries which, if adversely determined, could
reasonably be expected to have a Material Adverse Effect;

(d) as soon as possible and in any event within thirty (30) days after the Borrower
knows or has reason to know: (i) the occurrence or expected occurrence of any Reportable
Event with respect to any Plan, a failure to make any required contribution to a Plan the
creation of any Lien in favor of the PBGC (other than a Permitted Lien) or a Plan or any
withdrawal from, or the termination, Reorganization or Insolvency of, any
Multiemployer Plan or (ii) the institution of proceedings or the taking of any other
action by the PBGC or the Borrower or any Commonly Controlled Entity or any Multiemployer
Plan with respect to the withdrawal from, or the terminating, Reorganization or Insolvency
of any Plan; and

 

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(e) promptly, any other development or event which could reasonably be expected to have
a Material Adverse Effect.

Each notice pursuant to this Section shall be accompanied by a statement of a Responsible Officer
setting forth details of the occurrence referred to therein and stating what action the Borrower
proposes to take with respect thereto. In the case of any notice of a Default or Event of Default,
the Borrower shall specify that such notice is a Default or Event of Default notice on the face
thereof.

Section 5.8 Environmental Laws.

(a) Comply in all material respects with, and ensure compliance in all material
respects by all tenants and subtenants, if any, with, all applicable Environmental Laws and
obtain and comply in all material respects with and maintain, and ensure that all tenants
and subtenants obtain and comply in all material respects with and maintain, any and all
licenses, approvals, notifications, registrations or permits required by applicable
Environmental Laws, except to the extent that failure to do so could not reasonably be
expected to have a Material Adverse Effect;

(b) Conduct and complete all investigations, studies, sampling and testing, and all
remedial, removal and other actions required under Environmental Laws and promptly comply in
all material respects with all lawful orders and directives of all Governmental Authorities
regarding Environmental Laws except to the extent that the same are being contested in good
faith by appropriate proceedings and the pendency of such proceedings could not reasonably
be expected to have a Material Adverse Effect; and

(c) Defend, indemnify and hold harmless the Administrative Agent and the Lenders, and
their respective employees, agents, officers and directors, from and against any and all
claims, demands, penalties, fines, liabilities, settlements, damages, costs and expenses of
whatever kind or nature known or unknown, contingent or otherwise, arising out of, or in any
way relating to the violation of, noncompliance with or liability under, any Environmental
Law applicable to the operations of the Borrower, any of its Subsidiaries or the Properties,
or any orders, requirements or demands of Governmental Authorities related thereto,
including, without limitation, reasonable attorney’s and consultant’s fees, investigation
and laboratory fees, response costs, court costs and litigation expenses, except to the
extent that any of the foregoing arise out of the gross negligence or willful misconduct of
any indemnified person (IT BEING THE INTENTION OF THIS PROVISION THAT SUCH INDEMNIFICATION
OBLIGATION WILL BE APPLICABLE REGARDLESS OF WHETHER CAUSED IN WHOLE OR IN PART BY THE
ORDINARY NEGLIGENCE OF ANY OF THE PARTIES BEING INDEMNIFIED). The agreements in this
paragraph shall survive repayment of the Notes and all other amounts payable hereunder.

 

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Section 5.9 Financial Covenants.

Commencing on the day immediately following the Closing Date, the Borrower shall, and shall
cause each other Credit Party to, comply with the following financial covenants:

(a) Leverage Ratio. The Leverage Ratio shall be less than or equal to (i) as
of the last day of each fiscal quarter of the Borrower and its Subsidiaries during the
period from and after June 30, 2010 through and including March 31, 2011, 3.50 to 1.00, (ii)
as of the last day of each fiscal quarter of the Borrower and its Subsidiaries during the
period from and after April 1, 2011 through and including March 31, 2012, 3.00 to 1.00, and
(iii) as of the last day of each fiscal quarter of the Borrower and its Subsidiaries
thereafter, 2.75 to 1.0.

(b) Interest Coverage Ratio. The Interest Coverage Ratio, as of the last day
of each fiscal quarter of the Borrower and its Subsidiaries occurring from and after June
30, 2010, shall be greater than or equal to 2.00 to 1.0.

(c) Consolidated Capital Expenditures. As of the end of each fiscal quarter of
the Borrower beginning with the fiscal quarter ending June 30, 2010, Consolidated Capital
Expenditures of the Borrower for the immediately preceding twelve month period shall not
exceed two hundred percent (200%) of the last twelve month depreciation and amortization of
the Borrower and its consolidated Subsidiaries determined on a rolling four fiscal quarter
basis.

Section 5.10 Additional Guarantors.

The Credit Parties will cause each of their Domestic Subsidiaries, whether newly formed, after
acquired or otherwise existing, upon the creation or acquisition thereof, to become a Guarantor
hereunder by way of execution of a Joinder Agreement. The guaranty obligations of any such
Additional Credit Party shall be secured by, among other things, the Collateral of the Additional
Credit Party and a pledge of 100% of the Capital Stock or other equity interest of its Domestic
Subsidiaries and 65% of the Capital Stock or other equity interest of its first tier Foreign
Subsidiaries, and a pledge by the Borrower or other Credit Party which is the owner of the Capital
Stock or other equity interest in such Subsidiary of 100% of the Capital Stock if it is a Domestic
Subsidiary and 65% of its Capital Stock or other equity interest if it is a first tier Foreign
Subsidiary.

Section 5.11 Compliance with Law.

Each Credit Party will, and will cause each of its Subsidiaries to, comply with all laws,
rules, regulations and orders, and all applicable restrictions imposed by all Governmental
Authorities, applicable to it and its Property if noncompliance with any such law, rule,
regulation, order or restriction could reasonably be expected to have a Material Adverse Effect.

 

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Section 5.12 Pledged Assets.

(a) Each Credit Party will cause 100% of the Capital Stock of each of its direct or
indirect Domestic Subsidiaries owned by such Credit Party and its Domestic Subsidiaries and
65% of the Capital Stock in each of the first tier Foreign Subsidiaries owned by such Credit
Party and its Domestic Subsidiaries to be subject at all times to a first priority,
perfected Lien (subject to Permitted Liens, other exceptions expressly set forth in the
Security Documents and in the case of Foreign Subsidiaries, applicable foreign laws
regarding security interest and perfection matters) in favor of the Collateral Agent
pursuant to the terms and conditions of the Security Documents or such other security
documents as the Administrative Agent shall reasonably request.

(b) If, subsequent to the Closing Date, a Credit Party shall acquire any Intellectual
Property, securities, instruments, chattel paper or other personal property required to be
pledged to the Collateral Agent as Collateral hereunder or under any of the Security
Documents, the Borrower shall promptly (and in any event within ten (10) Business Days)
after any Responsible Officer of a Credit Party acquires knowledge of same notify the
Administrative Agent of same. Each Credit Party shall, and shall cause each of its
Subsidiaries to, take such action at its own expense as requested by the Administrative
Agent (including, without limitation, any of the actions described in Section 4.1(d)
or (e) hereof) to ensure that the Collateral Agent has a first priority perfected
Lien to secure the Credit Party Obligations in (i) all personal property of the Credit
Parties located in the United States and (ii) to the extent deemed to be material by the
Administrative Agent or the Required Lenders in its or their sole reasonable discretion, all
other personal property of the Credit Parties, subject in each case only to Permitted Liens
and other exceptions expressly set forth in the Security Documents. Each Credit Party
shall, and shall cause each of its Subsidiaries to, adhere to the covenants regarding the
location of personal property as set forth in the Security Documents.

ARTICLE VI

NEGATIVE COVENANTS

The Borrower and each other Credit Party hereby covenant and agree that on the Closing Date,
and thereafter for so long as this Agreement is in effect and until the Commitments have
terminated, no Note remains outstanding and unpaid and the Credit Party Obligations, together with
interest, Commitment Fees and all other amounts owing to the Administrative Agent or any Lender
hereunder, are paid in full that:

Section 6.1 Indebtedness.

The Credit Parties will not, nor will they permit any Subsidiary to, contract, create, incur,
assume or permit to exist any Indebtedness, except:

(a) Indebtedness arising or existing under this Agreement and the other Credit
Documents;

 

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(b) Indebtedness of the Borrower and its Subsidiaries existing as of July 31, 2010 and
set out more specifically in Schedule 6.1(b) hereto and Indebtedness assumed after
July 31, 2010 in connection with acquisitions permitted under Section 6.6(c)
(provided that such Indebtedness was not incurred in connection with such acquisition and
any Liens existing in connection with such Indebtedness shall relate only to the assets
financed thereby), and renewals, refinancings or extensions of any of the above in a
principal amount not in excess of that outstanding as of the date of such renewal,
refinancing or extension plus normal and customary fees and other transaction costs payable
to unaffiliated third parties incurred in connection therewith;

(c) Indebtedness of the Borrower and its Subsidiaries incurred after July 31, 2010
consisting of purchase money Indebtedness incurred to provide all or a portion of the
purchase price or cost of construction of any asset or property (any of which may be funded
up to, but not later than, 180 days after the date of acquisition of the applicable asset or
the date of completion of construction, as the case may be, and up to $20,000,000 of which
(in the aggregate) may be funded up to, but not later than, 270 days after the date of
acquisition of the applicable asset or the date of completion of construction, as the case
may be) provided that (i) such Indebtedness when incurred shall not exceed the purchase
price or cost of construction of such asset or property; (ii) no such Indebtedness shall be
refinanced for a principal amount in excess of the principal balance outstanding thereon at
the time of such refinancing (provided that separate purchase money Indebtedness facilities
may be aggregated in connection with any refinancing, in which event the aggregate
refinanced amount may be secured by all of the assets that secured such separate facilities
and, in such event, Agent shall, upon request by Borrower, execute lien subordination
agreements whereby the Liens under the Credit Documents are subordinated to the Liens
securing the applicable refinancing and otherwise in form and substance reasonably
satisfactory to the Administrative Agent); and (iii) the amount of such Indebtedness
incurred pursuant to this Section 6.1(c) plus the amount of the Indebtedness
of the type described herein and set forth on Schedule 6.1(b) shall not exceed the
Purchase Money Debt Basket in effect from time to time

(d) Unsecured intercompany Indebtedness among (i) the Borrower and any other Credit
Party or (ii) any Guarantor and any other Guarantor;

(e) Indebtedness and obligations owing under Hedging Agreements relating to the Loans
hereunder and other Hedging Agreements entered into in order to manage existing or
anticipated interest rate, exchange rate or commodity price risks and not for speculative
purposes;

(f) Indebtedness and obligations of the Credit Parties owing under documentary letters
of credit for the purchase of goods or other merchandise (but not under standby, direct pay
or other letters of credit except for the Letters of Credit hereunder) generally;

(g) Indebtedness which may be deemed to exist pursuant to any performance, surety,
statutory, appeal or similar obligations obtained in the ordinary course of business;

 

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(h) Guaranty Obligations permitted by Section 6.3;

(i) Indebtedness under the Canadian Credit Agreement;

(j) Indebtedness under the JPMC Note and the Wells Fargo Note;

(k) Indebtedness under any cash management arrangements (including overdraft and other
short term lines of credit associated with any such cash management arrangements) provided
by any Lender (or any Affiliate of a Lender) in the ordinary of business for the applicable
Credit Party (or its Subsidiary);

(l) Indebtedness which constitutes a Permitted Investment;

(m) Other Indebtedness of the Borrower and its Subsidiaries incurred after July 31,
2010 which does not exceed $15,000,000 in the aggregate at any time outstanding.

Section 6.2 Liens.

The Credit Parties will not, nor will they permit any Subsidiary to, contract, create, incur,
assume or permit to exist any Lien with respect to any of its property or assets of any kind
(whether real or personal, tangible or intangible), whether now owned or hereafter acquired, except
for Permitted Liens.

Section 6.3 Guaranty Obligations.

The Credit Parties will not, nor will they permit any Subsidiary to, enter into or otherwise
become or be liable in respect of any Guaranty Obligations (excluding specifically therefrom
endorsements in the ordinary course of business of negotiable instruments for deposit or
collection) except:

(a) those in favor of the Lenders in connection with the Credit Party Obligations;

(b) Guaranty Obligations by the Borrower or its Subsidiaries of Indebtedness and other
obligations referred to in and permitted under Section 6.1 (except, as regards
Indebtedness under subsection (b) thereof, only if and to the extent such Indebtedness was
guaranteed on the Closing Date); and

(c) Other Guaranty Obligations which do not exceed $7,500,000 in the aggregate at any
time outstanding.

Section 6.4 Canadian Credit Agreement.

Without the express prior written consent of the Required Lenders, the Borrower will not
permit any amendment or modification of the Canadian Credit Agreement which would increase the
maximum commitments thereunder or which could reasonably be expected to otherwise adversely impact
the Lenders.

 

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Section 6.5 Nature of Business.

Except as otherwise permitted in Section 6.6, the Borrower will not, nor will it
permit any Subsidiary to, alter the character of the business of the Borrower or its Subsidiaries
in any material respect from that conducted as of the Closing Date.

Section 6.6 Consolidation, Merger, Acquisitions, Sale or Purchase of Assets, etc.

The Borrower will not, nor will it permit any Subsidiary to,

(a) dissolve, liquidate or wind up its affairs, sell, transfer, lease (as lessor) or
otherwise dispose of its property or assets or agree to do so at a future time except the
following, without duplication, shall be expressly permitted:

(i) Specified Sales;

(ii) the sale, transfer, lease or other disposition of property or assets to an
unrelated party not in the ordinary course of business (other than Specified Sales),
where and to the extent that they are the result of a Recovery Event, so long as and
the net proceeds therefrom are, to the extent herein required, used to (A) repair or
replace damaged property or to purchase or otherwise acquire replacement assets or
property within 180 days of the receipt of such proceeds or (B) prepay the Loans in
accordance with Section 2.6(b)(iv);

(iii) the sale, lease, transfer or other disposition of machinery, parts,
equipment, land and buildings no longer used or useful in the conduct of the
business of the Borrower or any of its Subsidiaries, as appropriate, in its
reasonable discretion, so long as and the net proceeds therefrom are, to the extent
herein required, used to (A) repair or replace damaged property or to purchase or
otherwise acquire replacement assets or property, provided that such
purchase or acquisition is committed to within 180 days of receipt of the net
proceeds and such purchase or acquisition is consummated within 270 days of receipt
of such proceeds or (B) prepay the Loans in accordance with Section
2.6(b)(ii);

(iv) the sale, lease, transfer or other disposition of assets of an acquired
company or business, provided such disposition is completed within 180 days of the
initial acquisition of such assets;

(v) the sale, lease or transfer of property or assets (at fair value) between
the Borrower and any Guarantor;

(vi) the sale, lease or transfer of property or assets from a Credit Party
other than the Borrower to another Credit Party;

(vii) the sale, lease or transfer of property or assets not otherwise permitted
by clauses (i) through (vi) above, provided the amount of such sale,
lease or transfer does not exceed $10,000,000 in the aggregate in any fiscal
year; and

 

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(viii) the voluntary dissolution, liquidation or winding-up in connection with
a merger or sale of all or substantially all of the assets of a Subsidiary otherwise
permitted hereunder;

provided, that (a) with respect to subclause (vii) above at least 75% of the
consideration received therefor by the Borrower or any such Subsidiary is in the form of
cash or Cash Equivalents and (b) with respect to sales of assets permitted hereunder only,
the Administrative Agent shall be entitled, without the consent of the Required Lenders, to
release its Liens relating to the particular assets sold; or

(b) enter into any transaction of merger or consolidation, except for the merger or
consolidation of a Credit Party with and into another Credit Party, provided that if
the Borrower is a party thereto, the Borrower will be the surviving corporation; or

(c) enter into any transaction or series of transactions for the purposes of acquiring
all or a substantial portion of the assets, property and/or Capital Stock of any Person
other than, so long as no Default or Event of Default shall have occurred and be continuing
or would result therefrom on a Pro Forma Basis, the acquisition by any Credit Party of all
or a majority of the Capital Stock or other ownership interest in (or all or a substantial
portion of the assets, property and/or operations of) any Person provided that (i) such
acquisition is of a Person in the same or a similar line of business, (ii) the Borrower can
demonstrate, on a Pro Forma Basis, after giving effect to such acquisition that the Leverage
Ratio of the Borrower does not exceed the then current maximum Leverage Ratio under
Section 5.9(a) hereof minus 0.25, and (iii) the Borrower shall comply with
the requirements of Section 5.2(e) hereof.

Section 6.7 Advances, Investments and Loans.

The Borrower will not, nor will it permit any Subsidiary to, lend money or extend credit or
make advances to any Person, or purchase or acquire any stock, obligations or securities of, or any
other interest in, or make any capital contribution to, any other Person except for Permitted
Investments.

Section 6.8 Transactions with Affiliates.

Except as permitted in subsection (iv) of the definition of Permitted Investments and
customary compensation arrangements entered into in the ordinary course of business, the Borrower
will not, nor will it permit any Subsidiary to, enter into any transaction or series of
transactions, whether or not in the ordinary course of business, with any officer, director,
shareholder or Affiliate other than on terms and conditions substantially as favorable as would be
obtainable in a comparable arm’s-length transaction with a Person other than an officer, director,
shareholder or Affiliate.

 

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Section 6.9 Ownership of Subsidiaries; Restrictions.

The Borrower will not, nor will it permit any Subsidiary to, create, form or acquire any
Subsidiaries, except for (A) first-tier Foreign Subsidiaries of any Credit Party or (B) Domestic
Subsidiaries which are joined (or those who participate in a merger in which another entity
survives and the survivor joins) as Additional Credit Parties within thirty (30) days in accordance
with the terms hereof. The Borrower will not sell, transfer, pledge or otherwise dispose of any
Capital Stock or other equity interests in any of it Subsidiaries, nor will it permit any of its
Subsidiaries to issue, sell, transfer, pledge or otherwise dispose of any of their Capital Stock or
other equity interests, except in a transaction permitted by Section 6.6.

Section 6.10 Fiscal Year; Organizational Documents; Material Contracts.

The Borrower will not, nor will it permit any of its Subsidiaries to, change its fiscal year
or accounting policies unless permitted by GAAP or, with respect to a Subsidiary, to change so as
to be in conformity with the fiscal year of the Borrower. The Borrower will not, nor will it
permit any Subsidiary to, amend, modify or change its articles of incorporation (or corporate
charter or other similar organizational document) or bylaws (or other similar document) without the
prior written consent of the Required Lenders unless such amendment, modification or change could
not reasonably be expected to materially adversely effect the interests of the Lenders hereunder.
The Borrower will not, nor will it permit any of its Subsidiaries to, without the prior written
consent of the Administrative Agent, amend, modify, waive any default of or breach under, cancel or
terminate or fail to renew or extend or permit the amendment, modification, waiver of any default
of or breach under or cancellation or termination of any of the Material Contracts unless such
amendment, modification, waiver, cancellation, termination or failure to renew or extend could not
reasonably be expected to have a Material Adverse Effect.

Section 6.11 Limitation on Restricted Actions.

The Borrower will not, nor will it permit any Subsidiary to, directly or indirectly, create or
otherwise cause or suffer to exist or become effective any encumbrance or restriction on the
ability of any such Person to (a) pay dividends or make any other distributions to any Credit Party
on its Capital Stock or with respect to any other interest or participation in, or measured by, its
profits, (b) pay any Indebtedness or other obligation owed to any Credit Party, (c) make loans or
advances to any Credit Party, (d) sell, lease or transfer any of its properties or assets to any
Credit Party, or (e) act as a Guarantor and pledge its assets pursuant to the Credit Documents or
any renewals, refinancings, exchanges, refundings or extension thereof, except (in respect of any
of the matters referred to in clauses (a)-(d) above) for such encumbrances or restrictions
existing under or by reason of (i) this Agreement and the other Credit Documents, (ii) applicable
law, (iii) any document or instrument governing Indebtedness incurred pursuant to Section
6.1(c); provided that any such restriction contained therein relates only to the asset
or assets constructed or acquired in connection therewith, or (iv) any Permitted Lien or any
document or instrument governing any Permitted Lien, provided that any such restriction
contained therein relates only to the asset or assets subject to such Permitted Lien.

 

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Section 6.12 Restricted Payments.

The Borrower will not, nor will it permit any Subsidiary to, directly or indirectly, declare,
order, make or set apart any sum for or pay any Restricted Payment, except (a) to make dividends
payable solely in the same class of Capital Stock of such Person, (b) to make dividends or other
distributions payable to any Credit Party (directly or indirectly through Subsidiaries), (c) as
permitted by Section 6.13 and (d) so long as no Default or Event of Default shall have
occurred and be continuing, or would result therefrom, the Borrower may repurchase shares of its
Capital Stock during the term of this Agreement in any amount, so long as (i) the Borrower can
demonstrate, after giving effect to such purchase (A) compliance on a Pro Forma Basis with the
financial covenants set forth in Section 5.9 hereof, as set forth in a compliance
certificate and (B) the Leverage Ratio of the Borrower after giving effect to any such repurchase
on a Pro Forma Basis shall not exceed 2.50 to 1.00.

Section 6.13 Prepayments of Indebtedness, etc.

The Borrower will not, nor will it permit any Subsidiary to, after the issuance thereof, amend
or modify (or permit the amendment or modification of) any of the terms of any Subordinated
Indebtedness if such amendment or modification would add or change any terms in a manner adverse to
the issuer of such Subordinated Indebtedness, or shorten the final maturity or average life to
maturity or require any payment to be made sooner than originally scheduled or increase the
interest rate applicable thereto or change any subordination provision thereof.

Section 6.14 Sale Leasebacks.

The Borrower will not, nor will it permit any Subsidiary to, directly or indirectly, become or
remain liable as lessee or as guarantor or other surety with respect to any Capital Lease or any
“synthetic” lease or other off-balance sheet financing lease, of any property (whether real,
personal or mixed), whether now owned or hereafter acquired in excess of $2,500,000 in the
aggregate on an annual basis, (a) which the Borrower or any Subsidiary has sold or transferred or
is to sell or transfer to a Person which is not the Borrower or any Subsidiary or (b) which the
Borrower or any Subsidiary intends to use for substantially the same purpose as the property which
has been sold or is to be sold or transferred by the Borrower or any Subsidiary to another Person
in connection with such lease.

Section 6.15 No Further Negative Pledges.

The Borrower will not, nor will it permit any Subsidiary to, enter into, assume or become
subject to any agreement prohibiting or otherwise restricting the creation or assumption of any
Lien upon its properties or assets, whether now owned or hereafter acquired, or requiring the grant
of any security for such obligation if security is given for some other obligation except (a)
pursuant to this Agreement and the other Credit Documents, (b) pursuant to applicable law, (c)
pursuant to any document or instrument governing Indebtedness incurred pursuant to Section
6.1(c); provided that any such restriction contained therein relates only to the asset
or assets constructed or acquired in connection therewith, and (d) in connection with any Permitted
Lien or any document or instrument governing any Permitted Lien; provided that any such
restriction contained therein relates only to the asset or assets subject to such Permitted Lien.

 

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ARTICLE VII

EVENTS OF DEFAULT

Section 7.1 Events of Default.

An Event of Default shall exist upon the occurrence of any of the following specified events
(each an “Event of Default”):

(a) The Borrower shall fail to pay any principal on any Note when due in accordance
with the terms thereof or hereof; or the Borrower shall fail to reimburse the Issuing Lender
for any LOC Obligations when due in accordance with the terms hereof; or the Borrower shall
fail to pay any interest on any Note or any fee or other amount payable hereunder when due
in accordance with the terms thereof or hereof and any such failure shall continue
unremedied for three (3) Business Days (or any Guarantor shall fail to pay on the Guaranty
in respect of any of the foregoing or in respect of any other Guaranty Obligations
thereunder); or

(b) Any representation or warranty made or deemed made herein, in the Security
Documents or in any of the other Credit Documents or which is contained in any certificate,
document or financial or other statement furnished at any time under or in connection with
this Agreement shall prove to have been incorrect, false or misleading in any material
respect on or as of the date made or deemed made; or

(c) (i) Any Credit Party shall fail to perform, comply with or observe any term,
covenant or agreement applicable to it contained in Section 5.7(a), Section
5.9 or Article VI hereof; or (ii) any Credit Party shall fail to comply with any
other covenant, contained in this Credit Agreement or the other Credit Documents or any
other agreement, document or instrument among any Credit Party, the Administrative Agent and
the Lenders or executed by any Credit Party in favor of the Administrative Agent or the
Lenders (other than as described in Sections 7.1(a) or 7.1(c)(i) above), and
in the event such breach or failure to comply is capable of cure, is not cured within thirty
(30) days of its occurrence; or

(d) Any Credit Party or any of its Subsidiaries shall (i) default in any payment of
principal of or interest on any Indebtedness (other than the Notes) in a principal amount
outstanding of at least $5,000,000 for any individual item of Indebtedness and $10,000,000
in the aggregate for all such Indebtedness for the Borrower and its Subsidiaries beyond the
period of grace (not to exceed 10 days), if any, provided in the instrument or agreement
under which such Indebtedness was created; or (ii) default in the observance or performance
of any other agreement or condition relating to any Indebtedness in a principal amount
outstanding of at least $5,000,000 for any individual item of Indebtedness and $10,000,000
in the aggregate for all such Indebtedness for the Borrower and its Subsidiaries or
contained in any instrument or agreement evidencing, securing or relating thereto, or any
other event shall occur or condition exist, the effect of which default or other event or
condition is to cause, or to permit the holder or holders of such Indebtedness or
beneficiary or beneficiaries of such Indebtedness (or a trustee or agent on behalf of such
holder or holders or beneficiary or beneficiaries) to cause, with
the giving of notice if required, such Indebtedness to become due prior to its stated
maturity; or

 

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(e) (i) The Borrower or any of its Subsidiaries shall commence any case, proceeding or
other action (A) under any existing or future law of any jurisdiction, domestic or foreign,
relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking (x) to have
an order for relief entered with respect to it or (y) to adjudicate it a bankrupt or
insolvent or (z) reorganization, arrangement, adjustment, winding-up, liquidation,
dissolution, composition or other relief with respect to it or its debts, or (B) seeking
appointment of a receiver, trustee, custodian, conservator or other similar official for it
or for all or any substantial part of its assets, or the Borrower or any of its Subsidiaries
shall make a general assignment for the benefit of its creditors; or (ii) there shall be
commenced against the Borrower or any of its Subsidiaries any case, proceeding or other
action of a nature referred to in clause (i) above which (A) results in the entry of
an order for relief or any such adjudication or appointment or (B) remains undismissed,
undischarged or unbonded for a period of 60 days; or (iii) there shall be commenced against
the Borrower or any of its Subsidiaries any case, proceeding or other action seeking
issuance of a warrant of attachment, execution, distraint or similar process against all or
any substantial part of its assets which results in the entry of an order for any such
relief which shall not have been vacated, discharged, or stayed or bonded pending appeal
within 60 days from the entry thereof; or (iv) the Borrower or any of its Subsidiaries shall
take any action in furtherance of, or indicating its consent to, approval of, or
acquiescence in, any of the acts set forth in clause (i), (ii), or
(iii) above; or (v) the Borrower or any of its Subsidiaries shall generally not, or
shall be unable to, or shall admit in writing its inability to, pay its debts as they become
due; or

(f) One or more judgments or decrees shall be entered against the Borrower or any of
its Subsidiaries involving in the aggregate a liability (to the extent not paid when due or
covered by insurance) of $2,500,000 or more and all such judgments or decrees shall not have
been paid and satisfied, vacated, discharged, stayed or bonded pending appeal within 10 days
from the entry thereof; or

(g) (i) Any Person shall engage in any “prohibited transaction” (as defined in Section
406 of ERISA or Section 4975 of the Code) involving any Plan, (ii) any “accumulated funding
deficiency” (as defined in Section 302 of ERISA), whether or not waived, shall exist with
respect to any Plan or any Lien in favor of the PBGC or a Plan (other than a Permitted Lien)
shall arise on the assets of the Borrower, or any of its Subsidiaries or any Commonly
Controlled Entity, (iii) a Reportable Event shall occur with respect to, or proceedings
shall commence to have a trustee appointed, or a trustee shall be appointed, to administer
or to terminate, any Single Employer Plan, which Reportable Event or commencement of
proceedings or appointment of a trustee is, in the reasonable opinion of the Required
Lenders, likely to result in the termination of such Plan for purposes of Title IV of ERISA,
(iv) any Single Employer Plan shall terminate for purposes of Title IV of ERISA, (v) the
Borrower, any of its Subsidiaries or any Commonly Controlled Entity shall, or in the
reasonable opinion of the Required Lenders is likely to, incur any liability in connection
with a withdrawal from, or the Insolvency or Reorganization of, any Multiemployer Plan or
(vi) any other similar event or condition shall occur or exist with respect to a Plan; and
in each case in clauses (i) through (vi)
above, such event or condition, together with all other such events or conditions, if
any, could have a Material Adverse Effect; or

 

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(h) The Guaranty or any provision thereof shall cease to be in full force and effect or
any Guarantor or any Person acting by or on behalf of any Guarantor shall deny or disaffirm,
or fail to perform, any Guarantor’s obligations under the Guaranty;

(i) There shall occur a Change of Control; or

(j) Any other Credit Document shall fail to be in full force and effect or to give the
Administrative 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 by
the Administrative Agent and/or the Lenders 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).

Section 7.2 Acceleration; Remedies.

Upon the occurrence of an Event of Default, then, and in any such event, (a) if such event is
an Event of Default specified in Section 7.1(e) above, automatically the Commitments shall
immediately terminate and the Loans (with accrued interest thereon), and all other amounts under
the Credit Documents (including without limitation the maximum amount of all contingent liabilities
under Letters of Credit) shall immediately become due and payable, and (b) if such event is any
other Event of Default, either or both of the following actions may be taken: (i) with the written
consent of the Required Lenders, the Administrative Agent may, or upon the written request of the
Required Lenders, the Administrative Agent shall, by notice to the Borrower declare the Commitments
to be terminated forthwith, whereupon the Commitments shall immediately terminate; and (ii) the
Administrative Agent may, or upon the written request of the Required Lenders, the Administrative
Agent shall, by notice of default to the Borrower, declare the Loans (with accrued interest
thereon) and all other amounts owing under this Agreement and the Notes to be due and payable
forthwith and direct the Borrower to pay to the Administrative Agent cash collateral as security
for the LOC Obligations for subsequent drawings under then outstanding Letters of Credit in an
amount equal to the maximum amount which may be drawn under Letters of Credit then outstanding,
whereupon the same shall immediately become due and payable.

ARTICLE VIII

THE ADMINISTRATIVE AGENT

Section 8.1 Appointment; Nature of Relationship.

JPMORGAN CHASE BANK, N.A. is hereby appointed by each of the Lenders as its contractual
representative hereunder and under each other Credit Document, and each of the Lenders irrevocably
authorizes the Administrative Agent to act as the contractual representative of such Lender with
the rights and duties expressly set forth herein and in the other Credit Documents. The
Administrative Agent agrees to act as such contractual representative upon the express conditions
contained in this Article. Notwithstanding the use of the defined term “Administrative Agent,” it
is expressly understood and agreed that the Administrative Agent
shall not have any fiduciary responsibilities to any Lender by reason of this Agreement or any
other Credit

 

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Document and that the Administrative Agent is merely acting as the contractual
representative of the Lenders with only those duties as are expressly set forth in this Agreement
and the other Credit Documents. In its capacity as the Lenders’ contractual representative, the
Administrative Agent (i) does not hereby assume any fiduciary duties to any of the Lenders, (ii) is
a “representative” of the Lenders within the meaning of the term “secured party” as defined in the
Texas Uniform Commercial Code and (iii) is acting as an independent contractor, the rights and
duties of which are limited to those expressly set forth in this Agreement and the other Credit
Documents. Each of the Lenders hereby agrees to assert no claim against the Administrative Agent
on any agency theory or any other theory of liability for breach of fiduciary duty, all of which
claims each Lender hereby waives.

Section 8.2 Powers.

The Administrative Agent shall have and may exercise such powers under the Credit Documents as
are specifically delegated to the Administrative Agent by the terms of each thereof, together with
such powers as are reasonably incidental thereto. The Administrative Agent shall have no implied
duties to the Lenders, or any obligation to the Lenders to take any action thereunder except any
action specifically provided by the Credit Documents to be taken by the Administrative Agent.

Section 8.3 General Immunity.

Neither the Administrative Agent nor any of its directors, officers, agents or employees shall
be liable to the Borrower, the Lenders or any Lender for any action taken or omitted to be taken by
it or them hereunder or under any other Credit Document or in connection herewith or therewith
except to the extent such action or inaction is determined in a final non-appealable judgment by a
court of competent jurisdiction to have arisen from the gross negligence or willful misconduct of
such Person (IT BEING THE INTENTION OF THIS PROVISION THAT THERE SHALL BE NO LIABILITY ARISING
SOLELY OUT OF OR BY REASON OF THE ORDINARY NEGLIGENCE OF ANY OF THE PARTIES BEING REIMBURSED).

Section 8.4 No Responsibility for Loans, Recitals, etc.

Neither the Administrative Agent nor any of its directors, officers, agents or employees shall
be responsible for or have any duty to ascertain, inquire into, or verify (a) any statement,
warranty or representation made in connection with any Credit Document or any borrowing hereunder;
(b) the performance or observance of any of the covenants or agreements of any obligor under any
Credit Document, including, without limitation, any agreement by an obligor to furnish information
directly to each Lender; (c) the satisfaction of any condition specified in Article IV,
except receipt of items required to be delivered solely to the Administrative Agent; (d) the
existence or possible existence of any Default or Event of Default; (e) the validity,
enforceability, effectiveness, sufficiency or genuineness of any Credit Document or any other
instrument or writing furnished in connection therewith; (f) the value, sufficiency, creation,
perfection or priority of any Lien in any collateral security; or (g) the financial condition of
the Borrower or any guarantor of any of the Obligations or of any of the Borrower’s or any such
guarantor’s respective Subsidiaries. The Administrative Agent shall have no duty to disclose to
the Lenders information that is not required to be furnished by the Borrower to the
Administrative Agent at such time, but is voluntarily furnished by the Borrower to the
Administrative Agent (either in its capacity as Administrative Agent or in its individual
capacity).

 

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Section 8.5 Acting on Instructions of Lenders.

The Administrative Agent shall in all cases be fully protected in acting, or in refraining
from acting, hereunder and under any other Credit Document in accordance with written instructions
signed by the Required Lenders (or such other number or percentage of Lenders as shall be specified
in any provision of this Agreement, as applicable), and such instructions and any action taken or
failure to act pursuant thereto shall be binding on all of the Lenders. The Lenders hereby
acknowledge that the Administrative Agent shall be under no duty to take any discretionary action
permitted to be taken by it pursuant to the provisions of this Agreement or any other Credit
Document unless it shall be requested in writing to do so by the Required Lenders (or such other
number or percentage of Lenders as shall be specified in any provision of this Agreement, as
applicable). The Administrative Agent shall be fully justified in failing or refusing to take any
action hereunder and under any other Credit Document unless it shall first be indemnified to its
satisfaction by the Lenders pro rata against any and all liability, cost and expense that it may
incur by reason of taking or continuing to take any such action.

Section 8.6 Employment of Agents and Counsel.

The Administrative Agent may execute any of its duties as Administrative Agent hereunder and
under any other Credit Document by or through employees, agents, and attorneys in fact and shall
not be answerable to the Lenders, except as to money or securities received by it or its authorized
agents, for the default or misconduct of any such agents or attorneys in fact selected by it with
reasonable care. The Administrative Agent shall be entitled to advice of counsel concerning the
contractual arrangement between the Administrative Agent and the Lenders and all matters pertaining
to the Administrative Agent’s duties hereunder and under any other Credit Document.

Section 8.7 Reliance on Documents; Counsel.

The Administrative Agent shall be entitled to rely upon any Note, notice, consent,
certificate, affidavit, letter, telegram, facsimile, telex, electronic mail message, statement,
paper or document believed by it to be genuine and correct and to have been signed or sent by the
proper person or persons, and, in respect to legal matters, upon the opinion of counsel selected by
the Administrative Agent, which counsel may be employees of the Administrative Agent. For purposes
of determining compliance with the conditions specified in Article IV, each Lender that has
signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied
with, each document or other matter required thereunder to be consented to or approved by or
acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice
from such Lender prior to the applicable date specifying its objection thereto.

 

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Section 8.8 Administrative Agent’s Reimbursement and Indemnification.

The Lenders agree to reimburse and indemnify the Administrative Agent ratably in proportion to
their respective Revolving Commitments (or, if the Revolving Commitments have
been terminated, in proportion to their Revolving Commitments immediately prior to such
termination) (i) for any amounts not reimbursed by the Borrower for which the Administrative Agent
is entitled to reimbursement by the Borrower under the Credit Documents, (ii) for any other
expenses incurred by the Administrative Agent on behalf of the Lenders, in connection with the
preparation, execution, delivery, administration and enforcement of the Credit Documents
(including, without limitation, for any expenses incurred by the Administrative Agent in connection
with any dispute between the Administrative Agent and any Lender or between two or more of the
Lenders) and (iii) for any liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind and nature whatsoever which may be
imposed on, incurred by or asserted against the Administrative Agent in any way relating to or
arising out of the Credit Documents or any other document delivered in connection therewith or the
transactions contemplated thereby (including, without limitation, for any such amounts incurred by
or asserted against the Administrative Agent in connection with any dispute between the
Administrative Agent and any Lender or between two or more of the Lenders), or the enforcement of
any of the terms of the Credit Documents or of any such other documents, provided that (i) no
Lender shall be liable for any of the foregoing to the extent any of the foregoing is found in a
final non-appealable judgment by a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of the Administrative Agent (IT BEING THE INTENTION OF THIS
PROVISION THAT SUCH INDEMNIFICATION OBLIGATION WILL BE APPLICABLE REGARDLESS OF WHETHER CAUSED IN
WHOLE OR IN PART BY THE ORDINARY NEGLIGENCE OF ANY OF THE PARTIES BEING INDEMNIFIED) and (ii) any
indemnification required pursuant to Section 2.16 shall, notwithstanding the provisions of
this Section, be paid by the relevant Lender in accordance with the provisions thereof. The
obligations of the Lenders under this Section shall survive payment of the Obligations and
termination of this Agreement.

Section 8.9 Notice of Default.

The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of
any Default or Event of Default hereunder unless the Administrative Agent has received written
notice from a Lender or the Borrower referring to this Agreement describing such Default or Event
of Default and stating that such notice is a “notice of default”. In the event that the
Administrative Agent receives such a notice, the Administrative Agent shall give prompt notice
thereof to the Lenders.

Section 8.10 Rights as a Lender.

In the event the Administrative Agent is a Lender, the Administrative Agent shall have the
same rights and powers hereunder and under any other Credit Document with respect to its Commitment
and its Loans as any Lender and may exercise the same as though it were not the Administrative
Agent, and the term “Lender” or “Lenders” shall, at any time when the Administrative Agent is a
Lender, unless the context otherwise indicates, include the Administrative Agent in its individual
capacity. The Administrative Agent and its Affiliates may accept deposits from, lend money to, and
generally engage in any kind of trust, debt, equity or other transaction, in addition to those
contemplated by this Agreement or any other Credit Document, with the Borrower or any of its
Subsidiaries in which the Borrower or such Subsidiary is not restricted hereby from engaging with
any other Person. The Administrative Agent, in its individual capacity, is not obligated to remain
a Lender.

 

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Section 8.11 Lender Credit Decision.

Each Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent, the Arranger or any other Lender and based on the financial statements
prepared by the Borrower and such other documents and information as it has deemed appropriate,
made its own credit analysis and decision to enter into this Agreement and the other Credit
Documents. Each Lender also acknowledges that it will, independently and without reliance upon the
Administrative Agent, the Arranger or any other Lender and based on such documents and information
as it shall deem appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement and the other Credit Documents.

Section 8.12 Successor Administrative Agent.

The Administrative Agent may resign at any time by giving written notice thereof to the
Lenders and the Borrower, such resignation to be effective upon the appointment of a successor
Administrative Agent or, if no successor Administrative Agent has been appointed, forty-five days
after the retiring Administrative Agent gives notice of its intention to resign. The
Administrative Agent may be removed at any time with or without cause by written notice received by
the Administrative Agent from the Required Lenders, such removal to be effective on the date
specified by the Required Lenders. Upon any such resignation or removal, the Required Lenders,
with the express written consent of the Borrower (so long as no Event of Default then exists), such
consent not to be unreasonably withheld, shall have the right to appoint, on behalf of the Borrower
and the Lenders, a successor Administrative Agent. If no successor Administrative Agent shall have
been so appointed by the Required Lenders within thirty days after the resigning Administrative
Agent’s giving notice of its intention to resign, then the resigning Administrative Agent may
appoint, on behalf of the Borrower and the Lenders, a successor Administrative Agent.
Notwithstanding the previous sentence, the Administrative Agent may at any time without the consent
of the Borrower or any Lender, appoint any of its Affiliates which is a commercial bank as a
successor Administrative Agent hereunder. If the Administrative Agent has resigned or been removed
and no successor Administrative Agent has been appointed, the Lenders may perform all the duties of
the Administrative Agent hereunder and the Borrower shall make all payments in respect of the
Obligations to the applicable Lender and for all other purposes shall deal directly with the
Lenders. No successor Administrative Agent shall be deemed to be appointed hereunder until such
successor Administrative Agent has accepted the appointment. Any such successor Administrative
Agent shall be a commercial bank having capital and retained earnings of at least $100,000,000.
Upon the acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent, such successor Administrative Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the resigning or removed
Administrative Agent. Upon the effectiveness of the resignation or removal of the Administrative
Agent, the resigning or removed Administrative Agent shall be discharged from its duties and
obligations hereunder and under the Credit Documents. After the effectiveness of the resignation
or removal of an Administrative Agent, the provisions of this Article shall continue in effect for
the benefit of such Administrative Agent in respect of any actions taken or omitted to be taken by
it while it was acting as the Administrative Agent hereunder and under the other Credit Documents.
In the event that there is a successor to the Administrative Agent by merger, or the Administrative
Agent assigns its duties and obligations to an Affiliate pursuant to this Section, then the
term “Prime Rate” as used in this Agreement shall mean the prime rate, base rate or other analogous
rate of the new Administrative Agent.

 

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Section 8.13 Administrative Agent and Arranger Fees.

The Borrower agrees to pay to the Administrative Agent and the Arranger, for their respective
accounts, the fees agreed to by the Borrower, the Administrative Agent and the Arranger from time
to time.

Section 8.14 Delegation to Affiliates.

The Borrower and the Lenders agree that the Administrative Agent may delegate any of its
duties under this Agreement to any of its Affiliates. Any such Affiliate (and such Affiliate’s
directors, officers, agents and employees) which performs duties in connection with this Agreement
shall be entitled to the same benefits of the indemnification, waiver and other protective
provisions to which the Administrative Agent is entitled under this Agreement.

Section 8.15 Execution of Collateral Documents.

The Lenders hereby empower and authorize the Administrative Agent and the Collateral Agent to
execute and deliver to the Borrower on their behalf the Security Documents and all related
financing statements and any financing statements, agreements, documents or instruments as shall be
necessary or appropriate to effect the purposes of the Security Documents.

Section 8.16 Collateral Releases.

The Lenders hereby empower and authorize the Administrative Agent and the Collateral Agent to
execute and deliver to the Borrower on their behalf any agreements, documents or instruments as
shall be necessary or appropriate to effect any releases of Collateral or subordinations of liens
on the Collateral which shall be permitted by the terms hereof or of any other Credit Document or
which shall otherwise have been approved by the Required Lenders (or, if required by the terms of
this Agreement, all of the Lenders) in writing.

Section 8.17 Syndication Agent.

The Syndication Agent shall not have any right, power, obligation, liability, responsibility
or duty under this Agreement other than those applicable to all Lenders as such. Without limiting
the foregoing, the Syndication Agent shall not have or be deemed to have a fiduciary relationship
with any Lender. Each Lender hereby makes the same acknowledgments with respect to the Syndication
Agent as it makes with respect to the Administrative Agent in Section 8.11.

 

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ARTICLE IX

GUARANTY

Section 9.1 The Guaranty.

In order to induce the Lenders to enter into this Agreement and to extend credit hereunder and
in recognition of the direct benefits to be received by the Guarantors from the Extensions of
Credit hereunder, each of the Guarantors hereby agrees with the Administrative Agent and the
Lenders as follows: the Guarantor hereby unconditionally and irrevocably jointly and severally
guarantees as primary obligor and not merely as surety the full and prompt payment when due,
whether upon maturity, by acceleration or otherwise, of any and all Credit Party Obligations. If
any or all of the Credit Party Obligations becomes due and payable hereunder, each Guarantor
unconditionally promises to pay such indebtedness to the Administrative Agent and the Lenders, on
order, or demand, together with any and all reasonable expenses which may be incurred by the
Administrative Agent or the Lenders in collecting any of the Credit Party Obligations.

Notwithstanding any provision to the contrary contained herein or in any other of the Credit
Documents, to the extent the obligations of a Guarantor 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 such
Guarantor 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).

Section 9.2 Bankruptcy.

Additionally, each of the Guarantors unconditionally and irrevocably guarantees jointly and
severally the payment of any and all indebtedness of the Borrower to the Lenders whether or not due
or payable by the Borrower upon the occurrence of any of the events specified in Section
7.1(e), and unconditionally promises to pay such Credit Party Obligations to the Administrative
Agent for the account of the Lenders, or order, on demand, in lawful money of the United States.
Each of the Guarantors further agrees that to the extent that the Borrower or a Guarantor shall
make a payment or a transfer of an interest in any property to the Administrative Agent or any
Lender, which payment or transfer or any part thereof is subsequently invalidated, declared to be
fraudulent or preferential, or otherwise is avoided, and/or required to be repaid to a Borrower or
a Guarantor, the estate of the Borrower or a Guarantor, a trustee, receiver or any other party
under any bankruptcy law, state or federal law, common law or equitable cause, then to the extent
of such avoidance or repayment, the obligation or part thereof intended to be satisfied shall be
revived and continued in full force and effect as if said payment had not been made.

Section 9.3 Nature of Liability.

The liability of each Guarantor hereunder is exclusive and independent of any security for or
other guaranty of the indebtedness of the Borrower whether executed by any such Guarantor, any
other guarantor or by any other party, and no Guarantor’s liability hereunder shall be affected or
impaired by (a) any direction as to application of payment by the Borrower or by any other party,
or (b) any other continuing or other guaranty, undertaking or maximum liability of a guarantor or
of any other party as to the indebtedness of the Borrower, or (c) any payment on or in reduction of
any such other guaranty or undertaking, or (d) any dissolution, termination
or increase, decrease or change in personnel by the Borrower, or (e) any payment made to the
Administrative Agent or the Lenders on the indebtedness which the Administrative Agent or such
Lenders repay the Borrower pursuant to court order in any bankruptcy, reorganization, arrangement,
moratorium or other debtor relief proceeding, and each of the Guarantors waives any right to the
deferral or modification of its obligations hereunder by reason of any such proceeding.

 

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Section 9.4 Independent Obligation.

The obligations of each Guarantor hereunder are independent of the obligations of any other
guarantor or the Borrower, and a separate action or actions may be brought and prosecuted against
each Guarantor whether or not action is brought against any other guarantor or a Borrower and
whether or not any other Guarantor or the Borrower is joined in any such action or actions.

Section 9.5 Authorization.

Each of the Guarantors authorizes the Administrative Agent and each Lender without notice or
demand (except as shall be required by applicable statute and cannot be waived), and without
affecting or impairing its liability hereunder, from time to time to (a) renew, compromise, extend,
increase, accelerate or otherwise change the time for payment of, or otherwise change the terms of
the indebtedness or any part thereof in accordance with this Agreement, including any increase or
decrease of the rate of interest thereon, (b) take and hold security from any guarantor or any
other party for the payment of this Guaranty or the indebtedness and exchange, enforce waive and
release any such security, (c) apply such security and direct the order or manner of sale thereof
as the Administrative Agent and the Lenders in their discretion may determine and (d) release or
substitute any one or more endorsers, guarantors, the Borrower or other obligors.

Section 9.6 Reliance.

It is not necessary for the Administrative Agent or the Lenders to inquire into the capacity
or powers of the Borrower or the officers, directors, partners or agents acting or purporting to
act on their behalf, and any indebtedness made or created in reliance upon the professed exercise
of such powers shall be guaranteed hereunder.

Section 9.7 Waiver.

(a) Each of the Guarantors waives any right (except as shall be required by applicable
statute and cannot be waived) to require the Administrative Agent or any Lender to (i)
proceed against the Borrower, any other guarantor or any other party, (ii) proceed against
or exhaust any security held from the Borrower, any other guarantor or any other party, or
(iii) pursue any other remedy in the Administrative Agent’s or any Lender’s power
whatsoever. Each of the Guarantors waives any defense based on or arising out of any
defense of the Borrower, any other guarantor or any other party other than payment in full
of the indebtedness, including without limitation any defense based on or arising out of the
disability of the Borrower, any other guarantor or any other party, or the unenforceability
of the indebtedness or any part thereof from any

 

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cause, or the cessation from any cause of the liability of the Borrower other than payment in full of
the indebtedness. The Administrative Agent or any of the Lenders may, at their election,
foreclose on any security held by the Administrative Agent or a Lender by one or more
judicial or nonjudicial sales (to the extent such sale is permitted by applicable law), or
exercise any other right or remedy the Administrative Agent and any Lender may have against
the Borrower or any other party, or any security, without affecting or impairing in any way
the liability of any Guarantor hereunder except to the extent the indebtedness has been
paid. Each of the Guarantors waives any defense arising out of any such election by the
Administrative Agent and each of the Lenders, even though such election operates to impair
or extinguish any right of reimbursement or subrogation or other right or remedy of the
Guarantors against the Borrower or any other party or any security.

(b) Each of the Guarantors waives all presentments, demands for performance, protests
and notices, including without limitation notices of nonperformance, notice of protest,
notices of dishonor, notices of acceptance of this Guaranty, and notices of the existence,
creation or incurring of new or additional indebtedness. Each Guarantor assumes all
responsibility for being and keeping itself informed of the Borrower’s financial condition
and assets, and of all other circumstances bearing upon the risk of nonpayment of the
indebtedness and the nature, scope and extent of the risks which such Guarantor assumes and
incurs hereunder, and agrees that neither the Administrative Agent nor any Lender shall have
any duty to advise such Guarantor of information known to it regarding such circumstances or
risks.

(c) Each of the Guarantors hereby agrees it will not exercise any rights of subrogation
which it may at any time otherwise have as a result of this Guaranty (whether contractual,
under Section 509 of the U.S. Bankruptcy Code, or otherwise) to the claims of the Lenders
against the Borrower or any other guarantor of the indebtedness of the Borrower owing to the
Lenders (collectively, the “Other Parties”) and all contractual, statutory or common
law rights of reimbursement, contribution or indemnity from any Other Party which it may at
any time otherwise have as a result of this Guaranty until such time as the Loans hereunder
shall have been paid and the Commitments have been terminated. Each of the Guarantors
hereby further agrees not to exercise any right to enforce any other remedy which the
Administrative Agent and the Lenders now have or may hereafter have against any Other Party,
any endorser or any other guarantor of all or any part of the indebtedness of the Borrower
and any benefit of, and any right to participate in, any security or collateral given to or
for the benefit of the Lenders to secure payment of the indebtedness of the Borrower until
such time as the Loans hereunder shall have been paid and the Commitments have been
terminated.

Section 9.8 Limitation on Enforcement.

The Lenders agree that this Guaranty may be enforced only by the action of the Administrative
Agent acting upon the instructions of the Required Lenders and that no Lender shall have any right
individually to seek to enforce or to enforce this Guaranty, it being understood and agreed that
such rights and remedies may be exercised by the Administrative Agent for the benefit of the
Lenders upon the terms of this Agreement. The Lenders further agree that this Guaranty may not be
enforced against any director, officer, employee, stockholder or other equity holder of the
Guarantors.

 

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Section 9.9 Confirmation of Payment.

The Administrative Agent and the Lenders will, upon request after payment of the indebtedness
and obligations which are the subject of this Guaranty and termination of the commitments relating
thereto, confirm to the Borrower, the Guarantors or any other Person that the such indebtedness and
obligations have been paid and the commitments relating thereto terminated, subject to the
provisions of Section 9.2.

ARTICLE X

BENEFIT OF AGREEMENT; ASSIGNMENT; PARTICIPATIONS

Section 10.1 Successors and Assigns.

The terms and provisions of the Credit Documents shall be binding upon and inure to the
benefit of the Borrower and the Lenders and their respective successors and assigns permitted
hereby, except that (i) the Borrower shall not have the right to assign its rights or obligations
under the Credit Documents without the prior written consent of each Lender, (ii) any assignment by
any Lender must be made in compliance with Section 10.3, and (iii) any transfer by
participation must be made in compliance with Section 10.2. Any attempted assignment or
transfer by any party not made in compliance with this Section 10.1 shall be null and void,
unless such attempted assignment or transfer is treated as a participation in accordance with
Section 10.3(b). The parties to this Agreement acknowledge that clause (ii) of
this Section 10.1 relates only to absolute assignments and this Section 10.1 does
not prohibit assignments creating security interests, including, without limitation, (x) any pledge
or assignment by any Lender of all or any portion of its rights under this Agreement and any Note
to a Federal Reserve Bank or (y) in the case of a Lender which is an Approved Fund, any pledge or
assignment of all or any portion of its rights under this Agreement and any Note to its trustee in
support of its obligations to its trustee; provided, however, that no such pledge or assignment
creating a security interest shall release the transferor Lender from its obligations hereunder
unless and until the parties thereto have complied with the provisions of Section 10.3.
The Administrative Agent may treat the Person which made any Loan or which holds any Note as the
owner thereof for all purposes hereof unless and until such Person complies with Section
10.3; provided, however, that the Administrative Agent may in its discretion (but shall not be
required to) follow instructions from the Person which made any Loan or which holds any Note to
direct payments relating to such Loan or Note to another Person. Any assignee of the rights to any
Loan or any Note agrees by acceptance of such assignment to be bound by all the terms and
provisions of the Credit Documents. Any request, authority or consent of any Person, who at the
time of making such request or giving such authority or consent is the owner of the rights to any
Loan (whether or not a Note has been issued in evidence thereof), shall be conclusive and binding
on any subsequent holder or assignee of the rights to such Loan.

 

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Section 10.2 Participations.

(a) Any Lender may at any time sell to one or more banks or other entities (other than
the Borrower or any of its Affiliates) (“Participants”) participating interests in any Loan
owing to such Lender, any Note held by such Lender, any Commitment of such Lender or any
other interest of such Lender under the Credit Documents. In the event of
any such sale by a Lender of participating interests to a Participant, such Lender’s
obligations under the Credit Documents shall remain unchanged, such Lender shall remain
solely responsible to the other parties hereto for the performance of such obligations, such
Lender shall remain the owner of its Loans and the holder of any Note issued to it in
evidence thereof for all purposes under the Credit Documents, all amounts payable by the
Borrower under this Agreement shall be determined as if such Lender had not sold such
participating interests, and the Borrower and the Administrative Agent shall continue to
deal solely and directly with such Lender in connection with such Lender’s rights and
obligations under the Credit Documents.

(b) Each Lender shall retain the sole right to approve, without the consent of any
Participant, any amendment, modification or waiver of any provision of the Credit Documents
other than any amendment, modification or waiver with respect to any Loan or Commitment in
which such Participant has an interest which would require consent of all of the Lenders
pursuant to the terms of Section 11.1 or of any other Credit Document.

(c) The Borrower agrees that each Participant shall be deemed to have the right of
setoff provided in Section 11.6 in respect of its participating interest in amounts
owing under the Credit Documents to the same extent as if the amount of its participating
interest were owing directly to it as a Lender under the Credit Documents, provided that
each Lender shall retain the right of setoff provided in Section 11.6 with respect
to the amount of participating interests sold to each Participant. The Lenders agree to
share with each Participant, and each Participant, by exercising the right of setoff
provided in Section 11.6, agrees to share with each Lender, any amount received
pursuant to the exercise of its right of setoff, such amounts to be shared in accordance
with Section 11.2 as if each Participant were a Lender. The Borrower further agrees
that each Participant shall be entitled to the benefits of Sections 2.15,
2.16 and 2.17 to the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to Section 10.3, provided that (i) a Participant
shall not be entitled to receive any greater payment under Section 2.15 or
2.17 than the Lender who sold the participating interest to such Participant would
have received had it retained such interest for its own account, unless the sale of such
interest to such Participant is made with the prior written consent of the Borrower, and
(ii) any Participant not incorporated under the laws of the United States of America or any
State thereof agrees to comply with the provisions of Section 2.17 to the same
extent as if it were a Lender.

Section 10.3 Assignments.

(a) Any Lender may at any time assign to one or more banks or other entities (other
than the Borrower or any of its Affiliates or any Defaulting Lender) (“Purchasers”) all or
any part of its rights and obligations under the Credit Documents. Such assignment shall be
substantially in the form of Schedule 10.3 or in such other form as may be agreed to
by the parties thereto. Each such assignment with respect to a Purchaser which is not a
Lender or an Affiliate of a Lender or an Approved Fund shall either be in an amount equal to
the entire applicable Commitment and Loans of the assigning Lender or (unless each of the
Borrower and the Administrative Agent otherwise consents) be in an aggregate amount not less
than $5,000,000. The amount of the assignment shall be based on the Commitment or
outstanding Loans (if the Commitment has been terminated)
subject to the assignment, determined as of the date of such assignment or as of the
“Trade Date,” if the “Trade Date” is specified in the assignment.

 

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(b) The consent of the Borrower shall be required prior to an assignment becoming
effective unless the Purchaser is a Lender, an Affiliate of a Lender or an Approved Fund,
provided that the consent of the Borrower shall not be required if an Event of Default has
occurred and is continuing. The consent of the Administrative Agent shall be required prior
to an assignment becoming effective unless the Purchaser is a Lender with a Revolving
Commitment (in the case of an assignment of a Revolving Commitment) or is a Lender, an
Affiliate of a Lender or an Approved Fund (in the case of an assignment of any other
Commitment or Loans). The consent of the Issuing Lender shall be required prior to an
assignment of a Revolving Commitment becoming effective unless the Purchaser is a Lender
with a Revolving Commitment. Any consent required under this Section 10.3(b) shall
not be unreasonably withheld or delayed.

(c) Upon (i) delivery to the Administrative Agent of an assignment, together with any
consents required by Sections 10.2(a) and 10.2(b), and (ii) payment of a
$3,500 fee to the Administrative Agent for processing such assignment (unless such fee is
waived by the Administrative Agent), such assignment shall become effective on the effective
date specified in such assignment. The assignment shall contain a representation by the
Purchaser to the effect that none of the consideration used to make the purchase of the
Commitment and Loans under the applicable assignment agreement constitutes “plan assets” as
defined under ERISA and that the rights and interests of the Purchaser in and under the
Credit Documents will not be “plan assets” under ERISA. On and after the effective date of
such assignment, such Purchaser shall for all purposes be a Lender party to this Agreement
and any other Credit Document executed by or on behalf of the Lenders and shall have all the
rights and obligations of a Lender under the Credit Documents, to the same extent as if it
were an original party thereto, and the transferor Lender shall be released with respect to
the Commitment and Loans assigned to such Purchaser without any further consent or action by
the Borrower, the Lenders or the Administrative Agent. In the case of an assignment
covering all of the assigning Lender’s rights and obligations under this Agreement, such
Lender shall cease to be a Lender hereunder but shall continue to be entitled to the
benefits of, and subject to, those provisions of this Agreement and the other Credit
Documents which survive payment of the Obligations and termination of the applicable
agreement. Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this Section 10.3 shall be treated for purposes
of this Agreement as a sale by such Lender of a participation in such rights and obligations
in accordance with Section 10.2. Upon the consummation of any assignment to a
Purchaser pursuant to this Section 10.3(c) the transferor Lender, the Administrative
Agent and the Borrower shall, if the transferor Lender or the Purchaser desires that its
Loans be evidenced by Notes, make appropriate arrangements so that new Notes or, as
appropriate, replacement Notes are issued to such transferor Lender and new Notes or, as
appropriate, replacement Notes, are issued to such Purchaser, in each case in principal
amounts reflecting their respective Commitments, as adjusted pursuant to such assignment.

 

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

Section 10.4 Dissemination of Information.

The Borrower authorizes each Lender to disclose to any Participant or Purchaser or any other
Person acquiring an interest in the Credit Documents by operation of law (each a “Transferee”) and
any prospective Transferee any and all information in such Lender’s possession concerning the
creditworthiness of the Borrower and its Subsidiaries, including without limitation any information
contained in any Reports; provided that each Transferee and prospective Transferee agrees in
writing to be bound by Section 11.15 of this Agreement.

Section 10.5 Tax Treatment.

If any interest in any Credit Document is transferred to any Transferee which is not
incorporated under the laws of the United States or any State thereof, the transferor Lender shall
cause such Transferee, concurrently with the effectiveness of such transfer, to comply with the
provisions of Section 2.17.

ARTICLE XI

MISCELLANEOUS

Section 11.1 Amendments, Waivers and Release of Collateral.

Neither this Agreement, nor any of the Notes, nor any of the other Credit Documents, nor any
terms hereof or thereof may be amended, supplemented, waived or modified except in accordance with
the provisions of this Section nor may any Collateral be released except as specifically provided
herein or in the Security Documents or in accordance with the provisions of this
Section 11.1. The Required Lenders may, or, with the written consent of the Required
Lenders, the Administrative Agent may, from time to time, (a) enter into with the Borrower written
amendments, supplements or modifications hereto and to the other Credit Documents for the purpose
of adding any provisions to this Agreement or the other Credit Documents or changing in any manner
the rights of the Lenders or of the Borrower hereunder or thereunder or (b) waive, on such terms
and conditions as the Required Lenders may specify in such instrument, any of the requirements of
this Agreement or the other Credit Documents or any Default or Event of Default and its
consequences; provided, however, that no such waiver and no such amendment, waiver,
supplement, modification or release shall:

(i) reduce the amount or extend the scheduled date of maturity of any Loan or
Note or any installment thereon or payment made by the Issuing Lender pursuant to
any Letter of Credit, or reduce the stated rate of any interest or fee payable
hereunder (other than interest at the Default Rate) or extend the scheduled date of
any payment thereof or increase the amount or extend the expiration date of any
Lender’s Commitment, in each case without the written consent of each Lender
directly affected thereby (it being understood and agreed that changes to the
financial definitions and financial covenants herein shall only require the consent
of the Required Lenders and waivers of Events of Default, conditions precedent and
mandatory prepayments of the Loans required pursuant to Section 2.6(b)
hereof shall not constitute increases in the Commitment of any Lender), or

 

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(ii) amend, modify or waive any provision of this Section 11.1 or
reduce the percentage specified in the definition of Required Lenders, without the
written consent of all the Lenders, or

(iii) amend, modify or waive any provision of Article VIII without the
written consent of the then Administrative Agent, or

(iv) release a material portion of the Guarantors from their obligations under
the Guaranty without the written consent of all of the Lenders, or

(v) release a material portion of the Collateral (except in accordance with the
terms of the relevant Security Document), without the written consent of all of the
Lenders, or

(vi) amend, modify or waive Section 2.11, Section 11.6 or any other provision
of any Credit Document providing for the ratable payment of or to the Lenders in a
manner that would alter the ratable application of payments required thereby without
the written consent of all of the affected Lenders; or

(vii) subordinate the Credit Party Obligations described in clause (i) of the
definition thereof to any other Indebtedness without the written consent of all
Lenders directly affected thereby; or

(viii) impose any disproportionately greater restrictions on the ability of any
Lender to assign any of its rights and obligations hereunder compared to other
Lenders without the written consent of such lender; or

(ix) amend, modify or waive the Lender approval requirements of any provision
of the Credit Documents which at such time requires the consent, approval or request
of the Required Lenders or all Lenders, as the case may be, without the written
consent of the Required Lenders or of all of the Lenders, as the case may be, and,
provided, further, that no amendment, waiver or consent affecting
the rights or duties of the Administrative Agent or the Issuing Lender under any
Credit Document shall in any event be effective, unless in writing and signed by the
Administrative Agent and/or the Issuing Lender, as applicable, in addition to the
Lenders required hereinabove to take such action.

 

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Any such waiver, any such amendment, supplement or modification and any such release shall
apply equally to each of the Lenders and shall be binding upon the Borrower, the other Credit
Parties, the Lenders, the Administrative Agent and all future holders of the Notes. In the case of
any waiver, the Borrower, the other Credit Parties, the Lenders and the Administrative Agent shall
be restored to their former position and rights hereunder and under the outstanding Loans and Notes
and other Credit Documents, and any Default or Event of Default waived shall be deemed to be cured
and not continuing; but no such waiver shall extend to any subsequent or other Default or Event of
Default, or impair any right consequent thereon.

Notwithstanding any of the foregoing to the contrary, the consent of the Borrower shall not be
required for any amendment, modification or waiver of the provisions of Article VIII (other
than the provisions of Section 8.9); provided,
however, that the Administrative Agent will
provide written notice to the Borrower of any such amendment, modification or waiver. In addition,
the Borrower and the Lenders hereby authorize the Administrative Agent to modify this Credit
Agreement by unilaterally amending or supplementing Schedule 2.1(a) from time to time in
the manner requested by the Borrower, the Administrative Agent or any Lender in order to reflect
any assignments or transfers of the Loans as provided for hereunder; provided,
however, that the Administrative Agent shall promptly deliver a copy of any such
modification to the Borrower and each Lender.

Notwithstanding the fact that the consent of all the Lenders is required in certain
circumstances as set forth above, (x) each Lender is entitled to vote as such Lender sees fit on
any bankruptcy reorganization plan that affects the Loans, and each Lender acknowledges that the
provisions of Section 1126(c) of the Bankruptcy Code supersedes the unanimous consent provisions
set forth herein and (y) the Required Lenders may consent to allow a Credit Party to use cash
collateral in the context of a bankruptcy or insolvency proceeding.

Section 11.2 Notices.

Except as otherwise provided in Article II, all notices, requests and demands to or
upon the respective parties hereto to be effective shall be in writing (including by telecopy),
and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made
(a) when delivered by hand, (b) when transmitted via telecopy (or other facsimile device) to the
number set out herein, (c) the 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,
addressed as follows in the case of the Borrower, the other Credit Parties and the Administrative
Agent, and as set forth on Schedule 11.2 in the case of the Lenders, or to such other
address as may be hereafter notified by the respective parties hereto and any future holders of the
Notes:

The Borrower and the other Credit Parties:

Consolidated Graphics, Inc.

5858 Westheimer, Suite 200

Houston, Texas 77057

Attention: Chief Financial Officer

Telecopier: (713) 787-5083

Telephone: (713) 787-0977

 

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with copies to:

Haynes and Boone, LLP

One Houston Center

1221 McKinney Street, Suite 2100

Houston, TX 77010

Attention: Joseph Vilardo

Telecopier: 713-236-5432

Telephone: 713-547-2228

The Administrative Agent:

JPMORGAN CHASE BANK, N.A.

712 Main Street

Houston, Texas 77002

Attention: Joel Landis

Telecopier: 713-216-7987

Telephone: 713-216-3837

Section 11.3 No Waiver; Cumulative Remedies.

No failure to exercise and no delay in exercising, on the part of the Administrative Agent or
any Lender, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges herein provided are cumulative and not
exclusive of any rights, remedies, powers and privileges provided by law.

Section 11.4 Survival of Representations and Warranties.

All representations and warranties made hereunder and in any document, certificate or
statement delivered pursuant hereto or in connection herewith shall survive the execution and
delivery of this Agreement and the Notes and the making of the Loans, provided that all
such representations and warranties shall terminate on the date upon which the Commitments have
been terminated and all amounts owing hereunder and under any Notes have been paid in full.

 

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Section 11.5 Payment of Expenses and Taxes.

The Borrower agrees (a) to pay or reimburse the Administrative Agent for all its reasonable
out-of-pocket costs and expenses incurred in connection with the development, preparation,
negotiation, printing and execution of, and any amendment, supplement or modification to, this
Agreement and the other Credit Documents and any other documents prepared in connection herewith or
therewith, and the consummation and administration of the transactions contemplated hereby and
thereby, together with the reasonable fees and disbursements of counsel to the Administrative
Agent, (b) to pay or reimburse each Lender and the Administrative Agent for all its costs and
expenses incurred in connection with the enforcement or preservation of any rights under this
Agreement, the Notes and any such other documents, including, without limitation, the reasonable
fees and disbursements of counsel to the Administrative Agent and to the Lenders (including
reasonable allocated costs of in house legal counsel), and (c) on demand, to pay, indemnify, and
hold each Lender and the Administrative Agent harmless from, any and all recording and filing fees
and any and all liabilities with respect to, or resulting from any delay in paying, stamp, excise
and other similar taxes, if any, which may be payable or determined to be payable in connection
with the execution and delivery of, or consummation or administration of any of the transactions
contemplated by, or any amendment, supplement or modification of, or any waiver or consent under or
in respect of, the Credit Documents and any such other documents, and (d) to pay, indemnify, and
hold each Lender and the Administrative Agent and their Affiliates and their respective officers,
directors, employees, Administrative Agents, and advisors harmless from and against, any and all
other liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of the Credit Documents and any such other documents
and the use, or proposed use, of proceeds of the Loans (all of the foregoing, collectively, the
“indemnified liabilities”); provided, however, that the Borrower shall not
have any obligation hereunder to the Administrative Agent or any Lender or any other indemnified
person with respect to indemnified liabilities arising from the gross negligence or willful
misconduct of the Administrative Agent or any such Lender or any other such indemnified person, as
determined by a court of competent jurisdiction (IT BEING THE INTENTION OF THIS PROVISION THAT SUCH
INDEMNIFICATION OBLIGATION WILL BE APPLICABLE REGARDLESS OF WHETHER CAUSED IN WHOLE OR IN PART BY
THE ORDINARY NEGLIGENCE OF ANY OF THE PARTIES BEING INDEMNIFIED). The agreements in this
Section 11.5 shall survive repayment of the Loans, Notes and all other amounts payable
hereunder.

Section 11.6 Adjustments; Set-off.

(a) Each Lender agrees that if any Lender (a “benefited Lender”) shall at any
time receive any payment of all or part of its Loans, or interest thereon, or receive any
collateral in respect thereof (whether voluntarily or involuntarily, by set-off, pursuant to
events or proceedings of the nature referred to in Section 7.1(e), or otherwise) in
a greater proportion than any such payment to or collateral received by any other Lender, if
any, in respect of such other Lender’s Loans, or interest thereon, such benefited Lender
shall purchase for cash from the other Lenders a participating interest in such portion of
each such other Lender’s Loan, or shall provide such other Lenders with the benefits of any
such collateral, or the proceeds thereof, as shall be necessary to cause such benefited
Lender to share the excess payment or benefits of such collateral or proceeds ratably
with each of the Lenders; provided, however, that if all or any portion of
such excess payment or benefits is thereafter recovered from such benefited Lender, such
purchase shall be rescinded, and the purchase price and benefits returned, to the extent of
such recovery, but without interest. The Borrower agrees that each Lender so purchasing a
portion of another Lender’s Loans may exercise all rights of payment (including, without
limitation, rights of set-off) with respect to such portion as fully as if such Lender were
the direct holder of such portion.

 

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(b) In addition to any rights and remedies of the Lenders provided by law (including,
without limitation, other rights of set-off), each Lender shall have the right, without
prior notice to the Borrower, any such notice being expressly waived by the Borrower to the
extent permitted by applicable law, upon the occurrence of any Event of Default, to setoff
and appropriate and apply any and all deposits (general or special, time or demand,
provisional or final), in any currency, and any other credits, indebtedness or claims, in
any currency, in each case whether direct or indirect, absolute or contingent, matured or
unmatured, at any time held or owing by such Lender or any branch or agency thereof to or
for the credit or the account of the Borrower, or any part thereof in such amounts as such
Lender may elect, against and on account of the obligations and liabilities of the Borrower
to such Lender hereunder and claims of every nature and description of such Lender against
the Borrower, in any currency, arising hereunder, under the Notes or under any documents
contemplated by or referred to herein or therein, as such Lender may elect, whether or not
such Lender has made any demand for payment and although such obligations, liabilities and
claims may be contingent or unmatured. The aforesaid right of set-off may be exercised by
such Lender against the Borrower or against any trustee in bankruptcy, debtor in possession,
assignee for the benefit of creditors, receiver or execution, judgment or attachment
creditor of the Borrower, or against anyone else claiming through or against the Borrower or
any such trustee in bankruptcy, debtor in possession, assignee for the benefit of creditors,
receiver, or execution, judgment or attachment creditor, notwithstanding the fact that such
right of set-off shall not have been exercised by such Lender prior to the occurrence of any
Event of Default. Each Lender agrees promptly to notify the Borrower and the Administrative
Agent after any such set-off and application made by such Lender; provided,
however, that the failure to give such notice shall not affect the validity of such
set-off and application.

Section 11.7 Table of Contents and Section Headings.

The table of contents and the Section and subsection headings herein are intended for
convenience only and shall be ignored in construing this Agreement.

Section 11.8 Counterparts.

This Agreement may be executed by one or more of the parties to this Agreement on any number
of separate counterparts, and all of said counterparts taken together shall be deemed to constitute
one and the same instrument. A set of the copies of this Agreement signed by all the parties shall
be lodged with the Borrower and the Administrative Agent.

 

91

 

Section 11.9 Effectiveness.

This Credit Agreement shall become effective on the date on which all of the parties have
signed a copy hereof (whether the same or different copies) and shall have delivered the same to
the Administrative Agent pursuant to Section 11.2 or, in the case of the Lenders, shall
have given to the Administrative Agent written, telecopied or telex notice (actually received) at
such office that the same has been signed and mailed to it.

Section 11.10 Severability.

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

Section 11.11 Integration.

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

Section 11.12 Governing Law.

THIS AGREEMENT AND THE NOTES AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS
AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE
LAW OF THE STATE OF TEXAS. WITH RESPECT TO USURY LAWS, IF ANY, APPLICABLE TO THE LENDERS (AS SUCH
LAWS MAY HEREAFTER BE IN EFFECT WHICH ALLOW A HIGHER MAXIMUM NONUSURIOUS INTEREST RATE THAN SUCH
LAWS NOW ALLOW AND TO THE EXTENT ALLOWED THEREBY), THE PROVISIONS OF CHAPTER 346 OF THE TEXAS
FINANCE CODE (WHICH REGULATES CERTAIN REVOLVING CREDIT LOAN ACCOUNTS AND REVOLVING TRIPARTY
ACCOUNTS) SHALL NOT APPLY TO THIS AGREEMENT OR THE NOTES.

Section 11.13 Consent to Jurisdiction and Service of Process.

All judicial proceedings brought against the Borrower and/or any other Credit Party with
respect to this Agreement, any Note or any of the other Credit Documents may be brought in any
state or federal court of competent jurisdiction in the courts of the State of Texas and by
execution and delivery of this Agreement the Borrower and the other Credit Parties accept, for
itself and in connection with its properties, generally and unconditionally, the non-exclusive
jurisdiction of the aforesaid courts and irrevocably agrees to be bound by any final judgment
rendered thereby in connection with this Agreement from which no appeal has been taken or is
available. Each of the Borrower and the other Credit Parties irrevocably agrees that all service
of process in any such proceedings in any such court may be effected by mailing a copy thereof by
registered or
certified mail (or any substantially similar form of mail), postage prepaid, to it at its
address set forth in Section 11.2 or at such other address of which the Administrative
Agent shall have been notified pursuant thereto, such service being hereby acknowledged by the each
of the Borrower and the other Credit Parties to be effective and binding service in every respect.
Each of the Borrower, the other Credit Parties, the Administrative Agent and the Lenders
irrevocably waives any objection, including, without limitation, any objection to the laying of
venue or based on the grounds of forum non conveniens which it may now or hereafter have to the
bringing of any such action or proceeding in any such jurisdiction. Nothing herein shall affect
the right to serve process in any other manner permitted by law or shall limit the right of any
Lender to bring proceedings against the Borrower or the other Credit Parties in the court of any
other jurisdiction.

 

92

 

Section 11.14 Arbitration.

(a) Notwithstanding the provisions of Section 11.13 to the contrary, upon
demand of any party hereto, whether made before or within three (3) months after institution
of any judicial proceeding, any dispute, claim or controversy arising out of, connected with
or relating to this Agreement and other Credit Documents (“Disputes”) between or
among parties to this Agreement shall be resolved by binding arbitration as provided herein.
Institution of a judicial proceeding by a party does not waive the right of that party to
demand arbitration hereunder. Disputes may include, without limitation, tort claims,
counterclaims, disputes as to whether a matter is subject to arbitration, claims brought as
class actions, claims arising from Credit Documents executed in the future, or claims
arising out of or connected with the transaction reflected by this Agreement.

Arbitration shall be conducted under and governed by the Commercial Arbitration Rules
(the “Arbitration Rules”) of the American Arbitration Association (the
“AAA”) and Title 9 of the U.S. Code. All arbitration hearings shall be conducted in
Houston, Texas. A hearing shall begin within 90 days of demand for arbitration and all
hearings shall be concluded within 120 days of demand for arbitration. These time
limitations may not be extended unless a party shows cause for extension and then no more
than a total extension of 60 days. The expedited procedures set forth in Rule 51 et
seq. of the Arbitration Rules shall be applicable to claims of less than $1,000,000.
All applicable statutes of limitation shall apply to any Dispute. A judgment upon the
award may be entered in any court having jurisdiction. Arbitrators shall be licensed
attorneys selected from the Commercial Financial Dispute Arbitration Panel of the AAA. The
parties hereto do not waive applicable Federal or state substantive law except as provided
herein. Notwithstanding the foregoing, this arbitration provision does not apply to
disputes under or related to Hedging Agreements.

(b) Notwithstanding the preceding binding arbitration provisions, the Administrative
Agent, the Lenders, the Borrower and the other Credit Parties agree to preserve, without
diminution, certain remedies that the Administrative Agent on behalf of the Lenders may
employ or exercise freely, independently or in connection with an arbitration proceeding or
after an arbitration action is brought. The Administrative Agent on behalf of the Lenders
shall have the right to proceed in any court of proper jurisdiction or by self-help to
exercise or prosecute the following remedies, as applicable (i) all rights to foreclose
against any real or personal property or other security by exercising a power of sale
granted under Credit Documents or under applicable law or by judicial foreclosure
and sale, including a proceeding to confirm the sale; (ii) all rights of self-help
including peaceful occupation of real property and collection of rents, set-off, and
peaceful possession of personal property; (iii) obtaining provisional or ancillary remedies
including injunctive relief, sequestration, garnishment, attachment, appointment of receiver
and filing an involuntary bankruptcy proceeding, and (iv) when applicable, a judgment by
confession of judgment. Preservation of these remedies does not limit the power of an
arbitrator to grant similar remedies that may be requested by a party in a Dispute.

 

93

 

(c) The parties hereto agree that they shall not have a remedy of punitive or exemplary
damages against the other in any Dispute and hereby waive any right or claim to punitive or
exemplary damages they have now or which may arise in the future in connection with any
Dispute whether the Dispute is resolved by arbitration or judicially.

(d) By execution and delivery of this Agreement, each of the parties hereto accepts,
for itself and in connection with its properties, generally and unconditionally, the
non-exclusive jurisdiction relating to any arbitration proceedings conducted under the
Arbitration Rules in Houston, Texas and irrevocably agrees to be bound by any final judgment
rendered thereby in connection with this Agreement from which no appeal has been taken or is
available.

Section 11.15 Confidentiality.

The Administrative Agent and each of the Lenders agrees that it will not disclose without the
prior consent of the Borrower (other than to its employees, affiliates, auditors, counsel or other
Lenders hereunder) any information with respect to the Credit Parties and their Subsidiaries which
is furnished pursuant to this Agreement, any other Credit Document or any documents contemplated by
or referred to herein or therein and which is designated by the Borrower to the Lenders in writing
as confidential or as to which it is otherwise reasonably clear such information is not public
except that any Lender may disclose any such information (a) as has become generally available to
the public other than by a breach of this Section 11.15, (b) as may be required or
appropriate in any report, statement or testimony submitted to any municipal, state or federal
regulatory body having or claiming to have jurisdiction over such Lender or to the National
Association of Insurance Commissioners, the Federal Reserve Board, the Federal Deposit Insurance
Corporation, the OCC or any similar regulatory organizations (whether in the United States or
elsewhere) or their successors, (c) as may be required or appropriate in response to any summons or
subpoena or any law, order, regulation or ruling applicable to such Lender, (d) to any prospective
Participant or assignee in connection with any contemplated transfer pursuant to Article X,
provided that such prospective transferee shall have been made aware of this Section
11.15 and shall have agreed in writing to be bound by its provisions as if it were a party to
this Agreement, (e) to Gold Sheets and other similar bank trade publications; such
information to consist only of deal terms and other information regarding the credit facilities
evidenced by this Credit Agreement customarily found in such publications or (f) to a Lender’s
representatives, (which shall include, without limitation, any other bank and company affiliated
with a Lender or the Lender Parent of a Lender) it being expressly understood and agreed that such
representatives shall be informed of the confidential nature of the information, shall be required
by such Lender to treat the information as confidential in accordance with the terms and
conditions hereof and such representative shall have agreed in writing to be bound by this
provision as if it were a party to this Agreement.

 

94

 

Section 11.16 Acknowledgments.

The Borrower and the other Credit Parties each hereby acknowledges that:

(a) it has been advised by counsel in the negotiation, execution and delivery of each
Credit Document;

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

(c) no joint venture exists among the Lenders or among the Borrower or the other Credit
Parties and the Lenders.

Section 11.17 Waivers of Jury Trial.

THE BORROWER, THE OTHER CREDIT PARTIES, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN
ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN.

Section 11.18 Interest.

It is the intention of the parties hereto to conform strictly to usury laws applicable to the
Lenders. Accordingly, if the transactions contemplated hereby would be usurious under the
applicable law (including the laws of the United States of America and the State of Texas or any
other jurisdiction whose laws may be mandatorily applicable notwithstanding the other provisions of
this Agreement), then, in that event, notwithstanding anything to the contrary in the Notes, this
Agreement or in any other Credit Document or agreement entered into in connection with or as
security for the Notes, it is agreed as follows: (i) the aggregate of all consideration which
constitutes interest under law applicable to the Lenders that is contracted for, taken, reserved,
charged or received under the Notes, this Agreement or under any of the other aforesaid Credit
Documents or agreements or otherwise in connection with the Notes shall under no circumstances
exceed the maximum amount allowed by such applicable law, and any excess shall be credited by the
Lenders on the principal amount of the Indebtedness (or, if the principal amount of the
Indebtedness shall have been paid in full, refunded by the Lenders to the Borrower); and (ii) in
the event that the maturity of the Notes is accelerated by reason of an election of the Lenders
resulting from any Event of Default under this Agreement or otherwise, or in the event of any
required or permitted prepayment, then such consideration that constitutes interest under law
applicable to the Lenders may never include more than the maximum amount allowed by such applicable
law, and excess interest, if any, provided for in this Agreement or otherwise shall be cancelled
automatically as of the date of such acceleration or prepayment and,
if theretofore paid, shall be credited by the Lenders on the principal amount of the
Indebtedness (or, if the principal amount of the Indebtedness shall have been paid in full,
refunded by the Lenders to the Borrower). Without limiting the foregoing, all calculations of the
rate of interest taken, reserved, contracted for, charged, received or provided for under the Note
or any of the Credit Documents which are made for the purpose of determining whether the interest
rate exceeds the Maximum Rate shall be made, to the extent allowed by law, by amortizing,
prorating, allocating and spreading in equal parts during the period of the full stated term of the
loan evidenced hereby, all interest at any time taken, reserved, contracted for, charged, received
or provided for under the Note or any of the Credit Documents.

 

95

 

To the extent that Chapter 303 of the Texas Finance Code (Vernon’s Texas Civil Statutes) is
relevant to the Lenders for the purpose of determining the Maximum Rate, the Lenders hereby elect
to determine the applicable rate ceiling under such Chapter by the indicated (weekly) rate ceiling
from time to time in effect, subject to the Lenders’ right subsequently to change such method in
accordance with the applicable law.

If, at any time, the applicable rate exceeds the Maximum Rate, the rate of interest to accrue
on the Notes (or on any of them) shall be limited to the Maximum Rate, but any subsequent
reductions in the applicable rate shall not reduce the interest to accrue on the Notes (or on any
of them) below the Maximum Rate until the total amount of interest accrued on the Notes (or any of
them) equals the amount of interest which would have accrued if a varying rate per annum equal to
the applicable rate had at all times been in effect. If at maturity or final payment of the Notes
(or any of them) the total amount of interest paid or accrued on the Notes (or on any of them)
under the foregoing provisions is less than the total amount of interest which would have accrued
if a varying rate per annum equal to the applicable rate had at all times been in effect, then the
Borrower agrees, to the fullest extent permitted by law, to pay to the Lender an amount equal to
the difference between (a) the lesser of (i) the amount of interest which would have accrued on the
Notes (or on any of them) if the Maximum Rate had at all times been in effect or (ii) the amount of
interest which would have accrued on the Notes (or on any of them) if a varying rate per annum
equal to the applicable rate had at all times been in effect, and (b) the amount of interest
accrued in accordance with the other provisions of the Notes (or any of them).

Section 11.19 Amendment and Restatement; Renewal Notes.

This Agreement amends and restates in its entirety that certain Credit Agreement dated as of
October 6, 2006 executed by and among the Borrower, JPM Chase (or its predecessor in interest), as
Administrative Agent, and certain financial institutions therein set forth (the “Existing
Lenders”), as it may have been amended (the “Existing Credit Agreement”). As of the
Closing Date, all Letters of Credit (as defined in the Existing Credit Agreement), including
without limitation those described on Schedule 11.19 hereto, shall be and be deemed to be
issued under this Agreement for all purposes. The Revolving Notes have been given in renewal,
extension and modification of the revolving credit facility previously provided to the Borrower
pursuant to such Existing Credit Agreement and the Swingline Note has been given in renewal,
extension and modification of the swingline loans previously made to the Borrower pursuant to such
Existing Credit Agreement. All Security Documents shall secure the Indebtedness, as such
Indebtedness is effected by this Agreement, to the extent amended herein and whether or not such
Security Documents shall be supplemented in connection with this Credit Agreement.

 

96

 

Section 11.20 Special Provisions Concerning LOC Documents.

Notwithstanding any other provision in any of the LOC Documents, whether now existing or in
the future, the parties hereto hereby agree as follows:

(a) All LOC Documents will be subject to the provisions of this agreement
notwithstanding the fact that they are now existing or may be executed in the future.

(b) For convenience only, the LOC Documents will be standard forms used by the Issuing
Lender; provided, however, all terms and provisions contained therein shall be superseded by
the terms and the provisions of this Agreement and should there be any conflict between the
terms and provisions of any of the LOC Documents and the terms and provisions of this
Agreement, the terms and provisions of this Agreement shall control.

(c) Without limiting the generality of the foregoing, as an example, any breach or
default of any of the terms or provisions under any of the LOC Documents shall not
constitute a default under any of said LOC Documents or under this Agreement unless a
Default or an Event of Default has specifically occurred under the terms and provisions of
this Agreement.

Section 11.21 Consent to Canadian Credit Facility.

The Administrative Agent and the Lenders hereby consent to the incurrence of Indebtedness
under the Canadian Credit Agreement and to the guaranty of the Canadian Credit Facility by the
Borrower and its Domestic Subsidiaries. The aggregate unpaid principal balance of all obligations
under the Canadian Credit Agreement shall not exceed $25,000,000 and, other than normal and
customary provisions regarding contingent cash collateralization of letters of credit, the
Indebtedness under the Canadian Credit Agreement shall only be secured by Collateral which also
secures the Obligations on a pari passu basis. The execution and delivery of the Canadian Credit
Agreement shall not constitute a Default.

[Remainder of Page Intentionally Left Blank]

 

97

 

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

	 	 	 	 	 
	BORROWER:	 	CONSOLIDATED GRAPHICS, INC.,

     a Texas corporation
	 	 	 
	 	 
	 	 	By:
	 /s/ Jon C. Biro
	 	 	 
	  
	 	 	 
	 	Jon C. Biro,
	 	 	 
	 	Executive Vice President and
	 	 	 
	 	Chief Financial and Accounting Officer
	 	 	 
	 	 
	GUARANTORS:	 	 
	 	 
	 
	 	 	AGS CUSTOM GRAPHICS, INC.,

a Maryland corporation,

	 	 	AMERICAN LITHOGRAPHERS, INC.,

a California corporation,

	 	 	ANDERSON LA, INC.,

a California corporation,

	 	 	APPLE GRAPHICS, INC.,

a California corporation,

	 	 	AUSTIN PRINTING COMPANY,

a Georgia corporation,

	 	 	AUTOMATED GRAPHIC IMAGING/COPY

CENTER, INC., a District of Columbia corporation,

	 	 	AUTOMATED GRAPHIC SYSTEMS, LLC,

a Maryland limited liability company,

	 	 	BIGINK MAILING & FULFILLMENT COMPANY,

a Kansas corporation,

	 	 	BRIDGETOWN PRINTING CO.,

an Oregon corporation,

	 	 	BYRUM LITHOGRAPHING CO.,

an Ohio corporation,

	 	 	CDS PUBLICATIONS, INC.,

an Oregon corporation,

	 	 	CGML GENERAL PARTNER, INC.,

a Delaware corporation,

	 	 	CGX CALIFORNIA CONTRACTORS, INC.,

a California corporation

	 	 	CGX SOLUTIONS, INC.,

a Texas corporation

	 	 	CHAS. P. YOUNG COMPANY,

a Texas corporation,

	 	 	CHAS. P. YOUNG COMPANY, INC.,

a New York corporation,

 

 

	 	 	 	 	 
	 	 	 	 	CLEAR VISIONS, INC.,

a Texas corporation,

	 	 	 	 	COLUMBIA COLOR, INC.,

a California corporation,

	 	 	 	 	CONOVER REAL ESTATE LLC,

a North Carolina limited liability company,

	 	 	 	 	CONSOLIDATED CARQUEVILLE PRINTING

COMPANY, an Illinois corporation,

	 	 	 	 	CONSOLIDATED GLOBAL GROUP, INC., ]

a Texas corporation,

	 	 	 	 	CONSOLIDATED GRAPHICS CALIFORNIA,

a California corporation,

	 	 	 	 	CONSOLIDATED GRAPHICS DEVELOPMENT

COMPANY, a Delaware corporation,

	 	 	 	 	CONSOLIDATED GRAPHICS INTERNATIONAL,

INC., a Delaware corporation,

	 	 	 	 	CONSOLIDATED GRAPHICS PROPERTIES, INC.,

a Texas corporation,

	 	 	 	 	CONSOLIDATED GRAPHICS PROPERTIES II,

INC., a Texas corporation,

	 	 	 	 	CONSOLIDATED GRAPHICS SERVICES,

INC., a Delaware corporation,

	 	 	 	 	COPY-MOR, INC.,

an Illinois corporation,

	 	 	 	 	COURIER PRINTING COMPANY,

a Tennessee corporation,

	 	 	 	 	DIRECT COLOR, INC.,

a California corporation,

	 	 	 	 	EAGLE PRESS, INC.,

a California corporation,

	 	 	 	 	EASTWOOD PRINTING CORPORATION,

a Colorado corporation,

	 	 	 	 	ELECTRIC CITY PRINTING COMPANY,

a South Carolina corporation,

	 	 	 	 	EMERALD CITY GRAPHICS, INC.,

a Washington corporation,

	 	 	 	 	FITTJE BROS. PRINTING CO.,

a Colorado corporation,

	 	 	 	 	FREDERIC PRINTING COMPANY,

a Colorado corporation,

	 	 	 	 	GARNER PRINTING COMPANY,

an Iowa corporation,

	 	 	 	 	GEYER PRINTING COMPANY, INC.,

a Pennsylvania corporation,

	 	 	 	 	GILLILAND PRINTING, INC.

a Kansas corporation,

 

 

	 	 	 	 	 
	 	 	 	 	GRAPHCOM LLC,

a Georgia limited liability company,

	 	 	 	 	GRAPHIC COMMUNICATIONS, INC.,

a California corporation,

	 	 	 	 	GRAPHIC TECHNOLOGY OF MARYLAND, INC.,

a Maryland corporation,

	 	 	 	 	GRAPHION, INC.,

a California corporation,

	 	 	 	 	GRITZ-RITTER GRAPHICS, INC.,

a Colorado corporation,

	 	 	 	 	GROVER PRINTING COMPANY,

a Texas corporation,

	 	 	 	 	GSL FINE LITHOGRAPHERS,

a California corporation,

	 	 	 	 	GULF PRINTING COMPANY,

a Texas corporation,

	 	 	 	 	H & N PRINTING & GRAPHICS, INC.,

a Maryland corporation,

	 	 	 	 	HEATH PRINTERS, INC.

a Washington corporation

	 	 	 	 	HERITAGE GRAPHICS, INC.,

a Texas corporation,

	 	 	 	 	HICKORY PRINTING SOLUTIONS, LLC,

a North Carolina limited liability company,

	 	 	 	 	HIGH POINT REAL ESTATE ONE LLC,

a North Carolina limited liability company,

	 	 	 	 	HIGH POINT REAL ESTATE TWO LLC,

a North Carolina limited liability company,

	 	 	 	 	IMAGE SYSTEMS, LLC,

a Wisconsin limited liability company,

	 	 	 	 	IRONWOOD LITHOGRAPHERS, INC.,

an Arizona corporation,

	 	 	 	 	KELMSCOTT COMMUNICATIONS LLC,

a Delaware limited liability company,

	 	 	 	 	KEYS PRINTING COMPANY,

a South Carolina corporation,

	 	 	 	 	KOHLER ASSETS SUBSIDIARY, LLC,

a Missouri limited liability company,

	 	 	 	 	LINCOLN PRINTING CORPORATION,

an Indiana corporation,

	 	 	 	 	MARYLAND COMPOSITION.COM, INC.,

a Maryland corporation,

	 	 	 	 	MAXIMUM GRAPHICS, INC.,

a Minnesota corporation,

	 	 	 	 	MAXWELL GRAPHIC ARTS, INC.,

a New Jersey corporation,

	 	 	 	 	MERCURY PRINTING COMPANY, LLC,

a Tennessee limited liability company,

 

 

	 	 	 	 	 
	 	 	 	 	MERCURY WEB PRINTING, INC.,

a Kansas corporation,

	 	 	 	 	METROPOLITAN PRINTING SERVICES, LLC,

an Indiana limited liability company,

	 	 	 	 	MIG&L ASSET CO., LLC,

an Ohio limited liability company,

	 	 	 	 	MOBILITY, INC.,

a Virginia corporation,

	 	 	 	 	MOUNT VERNON PRINTING COMPANY,

a Maryland corporation,

	 	 	 	 	MULTIPLE IMAGES PRINTING, INC.,

an Illinois corporation,

	 	 	 	 	NIES/ARTCRAFT, INC.,

a Missouri corporation,

	 	 	 	 	PBM GRAPHICS, INC.,

a North Carolina corporation,

	 	 	 	 	PCA, LLC, a Maryland limited liability company, PGH COMPANY,

a Delaware corporation,

	 	 	 	 	PICCARI PRESS, INC.,

a Pennsylvania corporation,

	 	 	 	 	PRECISION LITHO, INC.,

a California corporation,

	 	 	 	 	PRIDE PRINTERS, INC.,

a Massachusetts corporation,

	 	 	 	 	PRINTING CONTROL SERVICES, INCORPORATED,

a Washington corporation,

	 	 	 	 	PRINTING, INC.,

a Kansas corporation,

	 	 	 	 	RUSH PRESS, INC.,

a California corporation,

	 	 	 	 	S&S GRAPHICS, LLC,

a Maryland limited liability company,

	 	 	 	 	S&S GRAPHICS PROPERTY, LLC,

a Delaware limited liability company,

	 	 	 	 	SNAPSHOTU, LLC,

a Texas limited liability company,

	 	 	 	 	SPANGLER GRAPHICS, LLC,

a Kansas limited liability company,

	 	 	 	 	SPANGLER GRAPHICS PROPERTY, LLC,

a Kansas limited liability company,

	 	 	 	 	STORTERCHILDS PRINTING CO., INC.,

a Florida corporation,

	 	 	 	 	SUPERB PRINTING COMPANY,

a Texas corporation,

 

 

	 	 	 	 	 
	 	 	 	 	SUPERIOR COLOUR GRAPHICS, INC.,

a Michigan corporation,

	 	 	 	 	TEWELL WARREN PRINTING COMPANY,

a Colorado corporation,

	 	 	 	 	THE CYRIL-SCOTT COMPANY,

an Ohio corporation,

	 	 	 	 	THE ETHERIDGE COMPANY,

a Michigan corporation,

	 	 	 	 	THE GRAPHICS GROUP, INC.,

a Texas corporation,

	 	 	 	 	THE HENNEGAN COMPANY,

a Kentucky corporation,

	 	 	 	 	THE JARVIS PRESS, INC.,

a Texas corporation,

	 	 	 	 	THE JOHN C. OTTO COMPANY, INC.,

a Massachusetts corporation,

	 	 	 	 	THE MCKAY PRESS, INC.,

a Michigan corporation,

	 	 	 	 	THEO. DAVIS SONS, INCORPORATED,

a North Carolina corporation,

	 	 	 	 	THE PIKES PEAK LITHOGRAPHING CO.,

a Colorado corporation,

	 	 	 	 	THE PRINTERY, INC.,

a Wisconsin corporation,

	 	 	 	 	THOUSAND OAKS PRINTING AND SPECIALTIES, INC., 

a California corporation,

	 	 	 	 	TUCKER PRINTERS, INC.,

a Texas corporation,

	 	 	 	 	TULSA LITHO COMPANY,

an Oklahoma corporation,

	 	 	 	 	TURSACK INCORPORATED,

a Pennsylvania corporation,

	 	 	 	 	VALCOUR PRINTING, INC.,

a Missouri corporation,

	 	 	 	 	VERITAS DOCUMENT SOLUTIONS, LLC,

a Delaware limited liability company,

	 	 	 	 	WALNUT CIRCLE PRESS, INC.,

a North Carolina corporation,

	 	 	 	 	WATERMARK PRESS, LTD.,

a California corporation,

	 	 	 	 	WENTWORTH CORPORATION,

a South Carolina corporation,

	 	 	 	 	WESTERN LITHOGRAPH COMPANY,

a Texas corporation,

	 	 	 	 	WESTLAND PRINTERS, INC.,

a Maryland corporation,

	 	 	 	 	WETZEL BROTHERS, LLC,

a Wisconsin limited liability company,

 

 

	 	 	 	 	 	 	 	 	 
	 	 	WOODRIDGE PRESS, INC.,

      a California corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 /s/ Jon C. Biro	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Jon C. Biro,

Executive Vice President
of each of the foregoing	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	SERCO FORMS, LLC,

      a Kansas limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	BIGINK MAILING & FULFILLMENT COMPANY, a Kansas
corporation, and MERCURY WEB PRINTING, INC., a
Kansas corporation, Members	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 /s/ Jon C. Biro	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Jon C. Biro,	 	 
	 

	 	 	 	 	 	Executive Vice President
of each of the foregoing	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	CONSOLIDATED GRAPHICS MANAGEMENT,
LTD.,

      a Texas limited partnership,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	CGML GENERAL PARTNER, INC., a Delaware
corporation, sole general partner of Consolidated
Graphics Management, Ltd.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 /s/ Jon C. Biro	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Jon C. Biro,	 	 
	 

	 	 	 	 	 	Executive Vice President	 	 

 

 

	 	 	 	 	 	 	 	 	 
	ADMINISTRATIVE AGENT 

AND LENDERS:	 	JPMORGAN CHASE BANK, N.A.,

as Administrative Agent and as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Erin Robbins	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Erin Robbins	 	 
	 

	 	 	 	Title:
	 	Vice
President

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL
ASSOCIATION, as Syndication Agent and as
a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Chad Johnson 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Chad Johnson	 	 
	 

	 	 	 	Title:
	 	Vice
President

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Julie Castano	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Julie Castano	 	 
	 

	 	 	 	Title:
	 	Vice
President

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	BRANCH BANKING & TRUST COMPANY	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Mark B. Grover	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Mark B. Grover	 	 
	 

	 	 	 	Title:
	 	Senior
Vice President

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ D. Barnell 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	D. Barnell	 	 
	 

	 	 	 	Title:
	 	Authorized
Signatory

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	BANK OF TEXAS, N.A.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Marian Livingston	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Marian Livingston	 	 
	 

	 	 	 	Title:
	 	SVP

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	IBERIABANK FSB	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Steven C. Krueger	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Steven C. Krueger	 	 
	 

	 	 	 	Title:
	 	Sr.
Vice Presidentexv10w1

Exhibit 10.1

THE J. M. SMUCKER COMPANY

2010 EQUITY AND INCENTIVE COMPENSATION PLAN

     1. Purpose. The purpose of The J. M. Smucker Company 2010 Equity and Incentive Compensation
Plan is to attract and retain Directors, consultants, officers and other employees of The J. M.
Smucker Company, an Ohio corporation, and its Subsidiaries and to provide to such persons
incentives and rewards for performance.

     2. Definitions. As used in this Plan,

          (a) “Appreciation Right” means a right granted pursuant to Section 5 or Section 9 of this
Plan, and will include both Free-Standing Appreciation Rights and Tandem Appreciation Rights.

          (b) “Base Price” means the price to be used as the basis for determining the Spread upon the
exercise of a Free-Standing Appreciation Right or a Tandem Appreciation Right.

          (c) “Board” means the Board of Directors of the Company and, to the extent of any delegation
by the Board to a committee (or subcommittee thereof) pursuant to Section 11 of this Plan, such
committee (or subcommittee).

          (d) “Cash Incentive Award” means a cash award granted pursuant to Section 8 of this Plan.

          (e) “Change in Control” has the meaning set forth in Section 13 of this Plan.

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

          (g) “Common Shares” means the shares of common stock, without par value, of the Company or any
security into which such common shares may be changed by reason of any transaction or event of the
type referred to in Section 12 of this Plan.

          (h) “Company” means The J. M. Smucker Company, an Ohio corporation, and its successors.

          (i) “Covered Employee” means a Participant who is, or is determined by the Board to be likely
to become, a “covered employee” within the meaning of Section 162(m) of the Code (or any successor
provision).

          (j) “Date of Grant” means the date specified by the Board on which a grant of Option Rights,
Appreciation Rights, Performance Shares, Performance Units, Cash Incentive Awards or other awards
contemplated by Section 10 of this Plan, or a grant or sale of Restricted Stock, Restricted Stock
Units, or other awards contemplated by Section 10 of this Plan will

 

 

become effective (which date will not be earlier than the date on which the Board takes action
with respect thereto).

          (k) “Detrimental Activity” means:

	 	(i)	 	Engaging in any activity, as an employee, principal, agent, or
consultant for another entity that competes with the Company in any actual,
researched, or prospective product, service, system, or business activity for
which the Participant has had any direct responsibility during the last two
years of his or her employment with the Company or a Subsidiary, in any
territory in which the Company or a Subsidiary manufactures, sells, markets,
services, or installs such product, service, or system, or engages in such
business activity.
	 
	 	(ii)	 	Soliciting any employee of the Company or a Subsidiary to
terminate his or her employment with the Company or a Subsidiary.
	 
	 	(iii)	 	The disclosure to anyone outside the Company or a Subsidiary,
or the use in other than the Company’s or a Subsidiary’s business, without
prior written authorization from the Company, of any confidential, proprietary
or trade secret information or material relating to the business of the Company
or its Subsidiaries, acquired by the Participant during his or her employment
with the Company or its Subsidiaries or while acting as a consultant for the
Company or its Subsidiaries thereafter.
	 
	 	(iv)	 	The failure or refusal to disclose promptly and to assign to
the Company upon request all right, title and interest in any invention or
idea, patentable or not, made or conceived by the Participant during employment
by the Company or any Subsidiary, relating in any manner to the actual or
anticipated business, research or development work of the Company or any
Subsidiary or the failure or refusal to do anything reasonably necessary to
enable the Company or any Subsidiary to secure a patent where appropriate in
the United States and in other countries.
	 
	 	(v)	 	Activity that results in Termination for Cause. For the
purposes of this Section, “Termination for Cause” will mean a termination:

	 	(A)	 	due to the Participant’s willful and continuous
gross neglect of his or her duties for which he or she is employed; or
	 
	 	(B)	 	due to an act of dishonesty on the part of the
Participant constituting a felony resulting or intended to result,
directly or indirectly, in his or her gain for personal enrichment at
the expense of the Company or a Subsidiary.

	 	(vi)	 	Any other conduct or act determined to be injurious,
detrimental or prejudicial to any significant interest of the Company or any
Subsidiary unless the Participant acted in good faith and in a manner he or she

2

 

	 	 	 	reasonably believed to be in or not opposed to the best interests of the
Company.

          (l) “Director” means a member of the Board.

          (m) “Effective Date” means, with respect to Cash Incentive Awards, the date this Plan is
approved by the shareholders of the Company and, with respect to all other awards under this Plan,
November 7, 2010 provided that this Plan is approved by the shareholders of the Company prior to or
on such date.

          (n) “Evidence of Award” means an agreement, certificate, resolution or other type or form of
writing or other evidence approved by the Board that sets forth the terms and conditions of the
awards granted under the Plan. An Evidence of Award may be in an electronic medium, may be limited
to notation on the books and records of the Company and, with the approval of the Board, need not
be signed by a representative of the Company or a Participant.

          (o) “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder, as such law, rules and regulations may be amended from time to time.

          (p) “Existing Plan” means The J. M. Smucker Company 2006 Equity Compensation Plan.

          (q) “Free-Standing Appreciation Right” means an Appreciation Right granted pursuant to Section
5 or Section 9 of this Plan that is not granted in tandem with an Option Right.

          (r) “Incentive Stock Options” means Option Rights that are intended to qualify as “incentive
stock options” under Section 422 of the Code or any successor provision.

          (s) “Management Objectives” means the measurable performance objective or objectives
established pursuant to this Plan for Participants who have received grants of Performance Shares
or Performance Units or, when so determined by the Board, Cash Incentive Awards, Option Rights,
Appreciation Rights, Restricted Stock, Restricted Stock Units, dividend credits and other awards
pursuant to this Plan. Management Objectives may be described in terms of Company-wide objectives
or objectives that are related to the performance of the individual Participant or of the
Subsidiary, division, department, region or function within the Company or Subsidiary in which the
Participant is employed. The Management Objectives may be made relative to the performance of
other companies or subsidiaries, divisions, departments, regions or functions within such other
companies, and may be made relative to an index or one or more of the performance criteria
themselves. The Board may grant awards subject to Management Objectives that are either Qualified
Performance-Based Awards or are not Qualified Performance-Based Awards. The Management Objectives
applicable to any Qualified Performance-Based Award to a Covered Employee will be based on one or
more, or a combination, of the following metrics:

	 	(i)	 	Profits (e.g., operating income, income from continuing
operations, EBIT, EBT, net income, earnings per share, segment profit,
residual or

3

 

	 	 	 	economic earnings — these profitability metrics could be measured before
certain specified special items and subject to GAAP definition);
	 
	 	(ii)	 	Cash Flow (e.g., EBITDA, adjusted EBITDA, operating
cash flow, cash from operations, total cash flow, free cash flow, cash flow in
excess of cost of capital, residual cash flow, or cash flow return on
investment);
	 
	 	(iii)	 	Returns (e.g., profits or cash flow returns on:
assets, invested capital, net capital employed, and equity);
	 
	 	(iv)	 	Working Capital (e.g., working capital divided by
sales, days’ sales outstanding, days’ sales in inventory, and days’ sales in
payables);
	 
	 	(v)	 	Profit Margins (e.g., profits divided by net sales);
	 
	 	(vi)	 	Liquidity Measures (e.g., debt-to-capital,
debt-to-EBITDA, total debt ratio);
	 
	 	(vii)	 	Sales Growth, Cost Initiative and Stock Price Metrics
(e.g., net sales, net sales growth, stock price appreciation, total
return to shareholders, administrative costs divided by net sales, cost
reduction targets, and selling, administrative and distribution costs divided
by net sales); and
	 
	 	(viii)	 	Strategic Initiatives Key Deliverable Metrics consisting of one or more of
the following: product development, strategic partnering, research and
development, market penetration, geographic business expansion goals, cost
targets, customer satisfaction, employee satisfaction, management of employment
practices and employee benefits, supervision of litigation and information
technology, and goals relating to acquisitions or divestitures of subsidiaries,
affiliates and joint ventures.

     If the Board determines that a change in the business, operations, corporate structure or
capital structure of the Company, or the manner in which it conducts its business, or other events
or circumstances render the Management Objectives unsuitable, the Board may in its discretion
modify such Management Objectives or the related minimum acceptable level of achievement, in whole
or in part, as the Board deems appropriate and equitable, except in the case of a Qualified
Performance-Based Award (other than in connection with a Change in Control) where such action would
result in the loss of the otherwise available exemption of the award under Section 162(m) of the
Code. In such case, the Board will not make any modification of the Management Objectives or
minimum acceptable level of achievement with respect to such Covered Employee.

          (t) “Market Value per Share” means, as of any particular date, the average of the high and low
sales prices of the Common Shares as reported on the New York Stock Exchange Composite Tape or, if
not listed on such exchange, on any other national securities exchange on which the Common Shares
are listed, or if there are no sales on such day, on the next preceding trading day during which a
sale occurred. If there is no regular trading market for such Common Shares, the Market Value per
Share will be determined by the Board.

4

 

          (u) “Non-Employee Director” means a person who is a “Non-Employee Director” of the Company
within the meaning of Rule 16b-3 of the Securities and Exchange Commission promulgated under the
Exchange Act and an “outside director” within the meaning of Section 162(m) of the Code and the
regulations promulgated thereunder by the U.S. Department of the Treasury.

          (v) “Optionee” means the optionee named in an Evidence of Award evidencing an outstanding
Option Right.

          (w) “Option Price” means the purchase price payable on exercise of an Option Right.

          (x) “Option Right” means the right to purchase Common Shares upon exercise of an option
granted pursuant to Section 4 or Section 9 of this Plan.

          (y) “Participant” means a person who is selected by the Board to receive benefits under this
Plan and who is at the time a consultant, an officer, or other employee of the Company or any one
or more of its Subsidiaries, or who has agreed to commence serving in any of such capacities within
90 days of the Date of Grant, and will also include each non-employee Director who receives an
award under this Plan. The term “Participant” will also include any person who provides services
to the Company or a Subsidiary that are equivalent to those typically provided by an employee.

          (z) “Performance Period” means, in respect of a Performance Share or Performance Unit, a
period of time established pursuant to Section 8 of this Plan within which the Management
Objectives relating to such Performance Share or Performance Unit are to be achieved.

          (aa) “Performance Share” means a bookkeeping entry that records the equivalent of one Common
Share awarded pursuant to Section 8 of this Plan.

          (bb) “Performance Unit” means a bookkeeping entry awarded pursuant to Section 8 of this Plan
that records a unit equivalent to $1.00 or such other value as is determined by the Board.

          (cc) “Plan” means The J. M. Smucker Company 2010 Equity and Incentive Compensation Plan, as
may be amended from time to time.

          (dd) “Qualified Performance-Based Award” means any award of Cash Incentive Awards, Performance
Shares, Performance Units, Restricted Stock, Restricted Stock Units or other awards contemplated
under Section 10 of this Plan, or portion of such award, to a Covered Employee that is intended to
satisfy the requirements for “qualified performance-based compensation” under Section 162(m) of the
Code.

          (ee) “Restricted Stock” means Common Shares granted or sold pursuant to Section 6 or Section 9
of this Plan as to which neither the substantial risk of forfeiture nor the prohibition on
transfers has expired.

5

 

          (ff) “Restriction Period” means the period of time during which Restricted Stock Units are
subject to restrictions, as provided in Section 7 or Section 9 of this Plan.

          (gg) “Restricted Stock Unit” means an award made pursuant to Section 7 or Section 9 of this
Plan of the right to receive Common Shares or cash at the end of a specified period. An award of
Restricted Stock Units may be described as an award of “Deferred Stock Units”.

          (hh) “Spread” means the excess of the Market Value per Share on the date when an Appreciation
Right is exercised over the Option Price or Base Price provided for in the related Option Right or
Free-Standing Appreciation Right, respectively.

          (ii) “Subsidiary” means a corporation, company or other entity (i) at least 50 percent of
whose outstanding shares or securities (representing the right to vote for the election of
directors or other managing authority) are, or (ii) which does not have outstanding shares or
securities (as may be the case in a partnership, joint venture or unincorporated association), but
at least 50 percent of whose ownership interest representing the right generally to make decisions
for such other entity is, now or hereafter, owned or controlled, directly or indirectly, by the
Company except that for purposes of determining whether any person may be a Participant for
purposes of any grant of Incentive Stock Options, “Subsidiary” means any corporation in which at
the time the Company owns or controls, directly or indirectly, at least 50 percent of the total
combined voting power represented by all classes of stock issued by such corporation.

          (jj) “Tandem Appreciation Right” means an Appreciation Right granted pursuant to Section 5 or
Section 9 of this Plan that is granted in tandem with an Option Right.

     3. Shares Available Under the Plan.

          (a) Maximum Shares Available Under Plan.

	 	(i)	 	Subject to adjustment as provided in Section 12 of this Plan,
the number of Common Shares that may be issued or transferred (A) upon the
exercise of Option Rights or Appreciation Rights, (B) in payment of Restricted
Stock and released from substantial risks of forfeiture thereof, (C) in payment
of Restricted Stock Units, (D) in payment of Performance Shares or Performance
Units that have been earned, (E) as awards to non-employee Directors, (F) as
awards contemplated by Section 10 of this Plan, or (G) in payment of dividend
equivalents paid with respect to awards made under the Plan will not exceed in
the aggregate 7,000,000 Common Shares plus, as of the Effective Date, the
number of Common Shares available for awards under the Existing Plan on the
Effective Date. Such shares may be shares of original issuance or treasury
shares or a combination of the foregoing.
	 
	 	(ii)	 	Common Shares covered by an award granted under the Plan will
not be counted as used unless and until they are actually issued and delivered
to a Participant and, therefore, the total number of shares available under the
Plan as of a given date will not be reduced by any shares relating to prior

6

 

	 	 	 	awards that have expired or have been forfeited or cancelled. Upon payment
in cash of the benefit provided by any award granted under the Plan, any
Common Shares that were covered by that award will again be available for
issue or transfer hereunder. Notwithstanding anything to the contrary
contained herein: (A) if Common Shares are tendered or otherwise used in
payment of the Option Price of an Option Right the total number of shares
covered by the Option Right being exercised will reduce the aggregate plan
limit described above; (B) Common Shares withheld by the Company to satisfy
the tax withholding obligation will count against the plan limit described
above; and (C) the number of Common Shares covered by an Appreciation Right,
to the extent that it is exercised and settled in Common Shares, and whether
or not shares are actually issued to the Participant upon exercise of the
right, will be considered issued or transferred pursuant to the Plan. In
the event that the Company repurchases shares with Option Right proceeds,
those shares will not be added to the aggregate plan limit described above.
If, under this Plan, a Participant has elected to give up the right to
receive compensation in exchange for Common Shares based on fair market
value, such Common Shares will not count against the aggregate plan limit
described above.

          (b) Life of Plan Limits. Notwithstanding anything in this Section 3, or elsewhere in
this Plan, to the contrary and subject to adjustment as provided in Section 12 of this Plan:

	 	(i)	 	The aggregate number of Common Shares actually issued or
transferred by the Company upon the exercise of Incentive Stock Options will
not exceed 7,000,000 Common Shares.
	 
	 	(ii)	 	Awards will not be granted under Section 9 or Section 10 of the
Plan to the extent they would involve the issuance of more than 350,000 shares
in the aggregate.

          (c) Individual Participant Limits. Notwithstanding anything in this Section 3, or
elsewhere in this Plan to the contrary, and subject to adjustment as provided in Section 12 of this
Plan:

	 	(i)	 	No Participant will be granted Option Rights or Appreciation
Rights, in the aggregate, for more than 1,000,000 Common Shares during any
calendar year.
	 
	 	(ii)	 	No Participant will be granted Qualified Performance-Based
Awards of Restricted Stock, Restricted Stock Units, Performance Shares or other
awards under Section 10 of this Plan, in the aggregate, for more than 400,000
Common Shares during any calendar year.
	 
	 	(iii)	 	Notwithstanding any other provision of this Plan to the
contrary, in no event will any Participant in any calendar year receive a
Qualified

7

 

	 	 	 	Performance-Based Award of Performance Units having an aggregate maximum
value as of their respective Dates of Grant in excess of $7,000,000.
	 
	 	(iv)	 	In no event will any Participant in any calendar year receive a
Qualified Performance-Based Award that is a Cash Incentive Award having an
aggregate maximum value in excess of $7,000,000.

     4. Option Rights. The Board may, from time to time and upon such terms and conditions as it
may determine, authorize the granting to Participants of options to purchase Common Shares. Each
such grant may utilize any or all of the authorizations contained in the following provisions:

          (a) Each grant will specify the number of Common Shares to which it pertains subject to the
limitations set forth in Section 3 of this Plan.

          (b) Each grant will specify an Option Price per share, which may not be less than the Market
Value per Share on the Date of Grant.

          (c) Each grant will specify whether the Option Price will be payable (i) in cash or by check
acceptable to the Company or by wire transfer of immediately available funds, (ii) by the actual or
constructive transfer to the Company of Common Shares owned by the Optionee for at least six months
(or other consideration authorized pursuant to Section 4(d) of this Plan) having a value at the
time of exercise equal to the total Option Price, (iii) by a combination of such methods of
payment, or (iv) by such other methods as may be approved by the Board.

          (d) To the extent permitted by law, any grant may provide for deferred payment of the Option
Price from the proceeds of sale through a bank or broker on a date satisfactory to the Company of
some or all of the shares to which such exercise relates.

          (e) Successive grants may be made to the same Participant whether or not any Option Rights
previously granted to such Participant remain unexercised.

          (f) Each grant will specify the period or periods of continuous service by the Optionee with
the Company or any Subsidiary that is necessary before the Option Rights or installments thereof
will become exercisable. A grant of Option Rights may provide for the earlier exercise of such
Option Rights in the event of the retirement, the attainment of reasonable age and service
requirements approved by the Board, death or disability of a Participant or a Change in Control.

          (g) Any grant of Option Rights may specify Management Objectives that must be achieved as a
condition to the exercise of such rights.

          (h) Option Rights granted under this Plan may be (i) options, including, without limitation,
Incentive Stock Options, that are intended to qualify under particular provisions of the Code, (ii)
options that are not intended so to qualify, or (iii) combinations of the

8

 

foregoing. Incentive Stock Options may only be granted to Participants who meet the
definition of “employees” under Section 3401(c) of the Code.

          (i) The exercise of an Option Right will result in the cancellation on a share- for-share
basis of any Tandem Appreciation Right authorized under Section 5 of this Plan.

          (j) No Option Right will be exercisable more than 10 years from the Date of Grant.

          (k) Each grant of Option Rights will be evidenced by an Evidence of Award. Each Evidence of
Award will be subject to this Plan and will contain such terms and provisions, consistent with this
Plan, as the Board may approve.

     5. Appreciation Rights.

          (a) The Board may, from time to time and upon such terms and conditions as it may determine,
authorize the granting (i) to any Optionee, of Tandem Appreciation Rights in respect of Option
Rights granted hereunder, and (ii) to any Participant, of Free-Standing Appreciation Rights. A
Tandem Appreciation Right will be a right of the Optionee, exercisable by surrender of the related
Option Right, to receive from the Company an amount determined by the Board, which will be
expressed as a percentage of the Spread (not exceeding 100 percent) at the time of exercise.
Tandem Appreciation Rights may be granted at any time prior to the exercise or termination of the
related Option Rights; provided, however, that a Tandem Appreciation Right awarded
in relation to an Incentive Stock Option must be granted concurrently with such Incentive Stock
Option. A Free-Standing Appreciation Right will be a right of the Participant to receive from the
Company an amount determined by the Board, which will be expressed as a percentage of the Spread
(not exceeding 100 percent) at the time of exercise.

          (b) Each grant of Appreciation Rights may utilize any or all of the authorizations contained
in the following provisions:

	 	(i)	 	Each grant will specify that the amount payable on exercise of
an Appreciation Right will be paid by the Company in cash, Common Shares or in
any combination thereof.
	 
	 	(ii)	 	Any grant may specify that the amount payable on exercise of an
Appreciation Right may not exceed a maximum specified by the Board at the Date
of Grant.
	 
	 	(iii)	 	Any grant may specify waiting periods before exercise and
permissible exercise dates or periods.
	 
	 	(iv)	 	Any grant may specify that such Appreciation Right may be
exercised only in the event of, or earlier in the event of, the retirement, the
attainment of reasonable age and service requirements approved by the Board,
death or disability of a Participant or a Change in Control.

9

 

	 	(v)	 	Any grant of Appreciation Rights may specify Management
Objectives that must be achieved as a condition of the exercise of such
Appreciation Rights.
	 
	 	(vi)	 	Each grant of Appreciation Rights will be evidenced by an
Evidence of Award, which Evidence of Award will describe such Appreciation
Rights, identify the related Option Rights (if applicable), and contain such
other terms and provisions, consistent with this Plan, as the Board may
approve.

          (c) Any grant of Tandem Appreciation Rights will provide that such Tandem Appreciation Rights
may be exercised only at a time when the related Option Right is also exercisable and at a time
when the Spread is positive, and by surrender of the related Option Right for cancellation.
Successive grants of Tandem Appreciation Rights may be made to the same Participant regardless of
whether any Tandem Appreciation Rights previously granted to the Participant remain unexercised.

          (d) Regarding Free-Standing Appreciation Rights only:

	 	(i)	 	Each grant will specify in respect of each Free-Standing
Appreciation Right a Base Price, which may not be less than the Market Value
per Share on the Date of Grant;

	 	(ii)	 	Successive grants may be made to the same Participant
regardless of whether any Free-Standing Appreciation Rights previously granted
to the Participant remain unexercised; and

	 	(iii)	 	No Free-Standing Appreciation Right granted under this Plan
may be exercised more than 10 years from the Date of Grant.

     6. Restricted Stock. The Board may, from time to time and upon such terms and conditions as it
may determine, also authorize the grant or sale of Restricted Stock to Participants. Each such
grant or sale may utilize any or all of the authorizations contained in the following provisions:

          (a) Each such grant or sale will constitute an immediate transfer of the ownership of Common
Shares to the Participant in consideration of the performance of services, entitling such
Participant to voting, dividend and other ownership rights, but subject to the substantial risk of
forfeiture and restrictions on transfer hereinafter referred to.

          (b) Each such grant or sale may be made without additional consideration or in consideration
of a payment by such Participant that is less than the Market Value per Share at the Date of Grant.

          (c) Each such grant or sale will provide that the Restricted Stock covered by such grant or
sale that vests upon the passage of time will be subject to a “substantial risk of forfeiture”
within the meaning of Section 83 of the Code for a period to be determined by the Board at the Date
of Grant or upon achievement of Management Objectives referred to in subparagraph (e) below. If the
elimination of restrictions is based only on the passage of time

10

 

rather than the achievement of Management Objectives, the period of time will be no shorter
than three years, except that the restrictions may be removed ratably during the three-year period,
on at least an annual basis, as determined by the Board.

          (d) Each such grant or sale will provide that during or after the period for which such
substantial risk of forfeiture is to continue, the transferability of the Restricted Stock will be
prohibited or restricted in the manner and to the extent prescribed by the Board at the Date of
Grant (which restrictions may include, without limitation, rights of repurchase or first refusal in
the Company or provisions subjecting the Restricted Stock to a continuing substantial risk of
forfeiture in the hands of any transferee).

          (e) Any grant of Restricted Stock may specify Management Objectives that, if achieved, will
result in termination or early termination of the restrictions applicable to such Restricted Stock;
provided, however, that notwithstanding subparagraph (c) above, restrictions
relating to Restricted Stock that vests upon the achievement of Management Objectives may not
terminate sooner than one year from the Date of Grant. Each grant may specify in respect of such
Management Objectives a minimum acceptable level of achievement and may set forth a formula for
determining the number of shares of Restricted Stock on which restrictions will terminate if
performance is at or above the minimum or threshold level or levels, or is at or above the target
level or levels, but falls short of maximum achievement of the specified Management Objectives.
The grant of a Qualified Performance-Based Award of Restricted Stock will specify that, before the
termination or early termination of restrictions applicable to such Restricted Stock, the Board
must determine that the Management Objectives have been satisfied.

          (f) Notwithstanding anything to the contrary contained in this Plan, any grant or sale of
Restricted Stock may provide for the earlier termination of restrictions on such Restricted Stock
in the event of the retirement, the attainment of reasonable age and service requirements approved
by the Board, death or disability of a Participant or a Change in Control.

          (g) Any such grant or sale of Restricted Stock may require that any or all dividends or other
distributions paid thereon during the period of such restrictions be automatically deferred and
reinvested in additional shares of Restricted Stock, which may be subject to the same restrictions
as the underlying award; provided, however, that dividends or other distributions
on Restricted Stock with restrictions that lapse as a result of the achievement of Management
Objectives will be deferred until and paid contingent upon the achievement of the applicable
Management Objectives.

          (h) Each grant or sale of Restricted Stock will be evidenced by an Evidence of Award and will
contain such terms and provisions, consistent with this Plan, as the Board may approve. Unless
otherwise directed by the Board, (i) all certificates representing shares of Restricted Stock will
be held in custody by the Company until all restrictions thereon will have lapsed, together with a
stock power or powers executed by the Participant in whose name such certificates are registered,
endorsed in blank and covering such shares or (ii) all shares of Restricted Stock will be held at
the Company’s transfer agent in book entry form with appropriate restrictions relating to the
transfer of such shares of Restricted Stock.

11

 

     7. Restricted Stock Units. The Board may, from time to time and upon such terms and conditions
as it may determine, also authorize the granting or sale of Restricted Stock Units (which may also
be referred to as Deferred Stock Units) to Participants. Each such grant or sale may utilize any
or all of the authorizations contained in the following provisions:

          (a) Each such grant or sale will constitute the agreement by the Company to deliver Common
Shares or cash to the Participant in the future in consideration of the performance of services,
but subject to the fulfillment of such conditions (which may include the achievement of Management
Objectives) during the Restriction Period as the Board may specify. If a grant of Restricted Stock
Units specifies that the Restriction Period will terminate only upon the achievement of Management
Objectives, then, notwithstanding anything to the contrary contained in subparagraph (c) below,
such Restriction Period may not terminate sooner than one year from the Date of Grant. Each grant
may specify in respect of such Management Objectives a minimum acceptable level of achievement and
may set forth a formula for determining the number of Restricted Stock Units on which restrictions
will terminate if performance is at or above the minimum or threshold level or levels, or is at or
above the target level or levels, but falls short of maximum achievement of the specified
Management Objectives. The grant of Qualified Performance-Based Awards of Restricted Stock Units
will specify that, before the termination or early termination of restrictions applicable to such
Restricted Stock Units, the Board must determine that the Management Objectives have been
satisfied.

          (b) Each such grant or sale may be made without additional consideration or in consideration
of a payment by such Participant that is less than the Market Value per Share at the Date of Grant.

          (c) If the Restriction Period lapses only by the passage of time rather than the achievement
of Management Objectives as provided in subparagraph (a) above, each such grant or sale will be
subject to a Restriction Period of not less than three years, except that a grant or sale may
provide that the Restriction Period will expire ratably during the three-year period, on an annual
basis, as determined by the Board.

          (d) Notwithstanding anything to the contrary contained in this Plan, any grant or sale of
Restricted Stock Units may provide for the earlier lapse or other modification of the Restriction
Period in the event of the retirement, the attainment of reasonable age and service requirements
approved by the Board, death or disability of a Participant or a Change in Control.

          (e) During the Restriction Period, the Participant will have no right to transfer any rights
under his or her award and will have no rights of ownership in the Common Shares deliverable upon
payment of the Restricted Stock Units and will have no right to vote them, but the Board may, at
the Date of Grant, authorize the payment of dividend equivalents on such Restricted Stock Units on
either a current or deferred or contingent basis, either in cash or in additional Common Shares;
provided, however, that dividends or other distributions on Common Shares
underlying Restricted Stock Units with restrictions that lapse as a result of the achievement of
Management Objectives will be deferred until and paid contingent upon the achievement of the
applicable Management Objectives.

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          (f) Each grant or sale will specify the time and manner of payment of the Restricted Stock
Units that have been earned. Each grant or sale will specify that the amount payable with respect
thereto will be paid by the Company in Common Shares or cash.

          (g) Each grant or sale of Restricted Stock Units will be evidenced by an Evidence of Award and
will contain such terms and provisions, consistent with this Plan, as the Board may approve.

     8. Cash Incentive Awards, Performance Shares and Performance Units. The Board may, from time
to time and upon such terms and conditions as it may determine, also authorize the granting of Cash
Incentive Awards, Performance Shares and Performance Units. Each such grant may utilize any or all
of the authorizations contained in the following provisions:

          (a) Each grant will specify the number of Performance Shares or Performance Units, or amount
payable with respect to Cash Incentive Awards, to which it pertains, which number or amount may be
subject to adjustment to reflect changes in compensation or other factors; provided,
however, that no such adjustment will be made in the case of a Qualified Performance-Based
Award (other than in connection with the death or disability of the Participant or a Change in
Control) where such action would result in the loss of the otherwise available exemption of the
award under Section 162(m) of the Code.

          (b) The Performance Period with respect to each Cash Incentive Award, Performance Share or
Performance Unit will be such period of time (not less than one year) as will be determined by the
Board at the time of grant, which may be subject to earlier lapse or other modification in the
event of the retirement, death or disability of a Participant or a Change in Control;
provided, however, that no such adjustment will be made in the case of a Qualified
Performance-Based Award (other than in connection with the death or disability of the Participant
or a Change in Control) where such action would result in the loss of the otherwise available
exemption of the award under Section 162(m) of the Code.

          (c) Any grant of Cash Incentive Awards, Performance Shares or Performance Units may specify
Management Objectives which, if achieved, will result in payment or early payment of the award, and
each grant may specify in respect of such specified Management Objectives a minimum acceptable
level or levels of achievement and will set forth a formula for determining the number of
Performance Shares or Performance Units, or amount payable with respect to Cash Incentive Awards,
that will be earned if performance is at or above the minimum or threshold level or levels, or is
at or above the target level or levels, but falls short of maximum achievement of the specified
Management Objectives. The grant of a Qualified Performance-Based Award of a Cash Incentive Award,
Performance Shares or Performance Units will specify that, before the Cash Incentive Award,
Performance Shares or Performance Units will be earned and paid, the Board must determine that the
Management Objectives have been satisfied.

          (d) Each grant will specify the time and manner of payment of Cash Incentive Awards,
Performance Shares or Performance Units that have been earned. Any grant may specify that the
amount payable with respect thereto may be paid by the Company in cash, in Common Shares, in
Restricted Stock or Restricted Stock Units or in any combination thereof.

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          (e) Any grant of Cash Incentive Awards, Performance Shares or Performance Units may specify
that the amount payable or the number of Common Shares, shares of Restricted Stock or Restricted
Stock Units with respect thereto may not exceed a maximum specified by the Board at the Date of
Grant.

          (f) The Board may, at the Date of Grant of Performance Shares, provide for the payment of
dividend equivalents to the holder thereof either in cash or in additional Common Shares, subject
in all cases to deferral and payment on a contingent basis based on the Participant’s earning of
the Performance Shares with respect to which such dividend equivalents are paid.

          (g) Each grant of Cash Incentive Awards, Performance Shares or Performance Units will be
evidenced by an Evidence of Award and will contain such other terms and provisions, consistent with
this Plan, as the Board may approve.

     9. Awards to Non-Employee Directors. Subject to the limit set forth in Section 3(b)(ii) of
this Plan, the Board may, from time to time and upon such terms and conditions as it may determine,
authorize the granting to non-employee Directors of Option Rights, Appreciation Rights or other
awards contemplated by Section 10 of this Plan and may also authorize the grant or sale of Common
Shares, Restricted Stock or Restricted Stock Units (which may also be referred to as Deferred Stock
Units) to non-employee Directors. Each grant of an award to a non-employee Director will be upon
such terms and conditions as approved by the Board and will be evidenced by an Evidence of Award in
such form as will be approved by the Board. Each grant will specify in the case of an Option Right
an Option Price per share, and in the case of a Free-Standing Appreciation Right, a Base Price per
share, which will not be less than the Market Value per Share on the Date of Grant. Each Option
Right and Free-Standing Appreciation Right granted under the Plan to a non-employee Director will
expire not more than 10 years from the Date of Grant and will be subject to earlier termination as
hereinafter provided. Non-employee Directors, pursuant to this Section 9, may be awarded, or may
be permitted to elect to receive, pursuant to procedures established by the Board, all or any
portion of their annual retainer, meeting fees or other fees in Common Shares, Restricted Stock,
Restricted Stock Units or other awards under the Plan in lieu of cash.

     10. Other Awards.

          (a) Subject to limitations under applicable law and to the limit set forth in Section 3(b)(ii)
of this Plan, the Board may grant to any Participant such other awards that may be denominated or
payable in, valued in whole or in part by reference to, or otherwise based on, or related to,
Common Shares or factors that may influence the value of such shares, including, without
limitation, convertible or exchangeable debt securities, other rights convertible or exchangeable
into Common Shares, purchase rights for Common Shares, awards with value and payment contingent
upon performance of the Company or specified Subsidiaries, affiliates or other business units
thereof or any other factors designated by the Board, and awards valued by reference to the book
value of Common Shares or the value of securities of, or the performance of specified Subsidiaries
or affiliates or other business units of the Company. The Board will determine the terms and
conditions of such awards. Common Shares delivered pursuant to an award in the nature of a
purchase right granted under this Section 10 will be purchased for such

14

 

consideration, paid for at such time, by such methods, and in such forms, including, without
limitation, Common Shares, other awards, notes or other property, as the Board determines.

          (b) The Board may grant Common Shares as a bonus, or may grant other awards in lieu of
obligations of the Company or a Subsidiary to pay cash or deliver other property under this Plan or
under other plans or compensatory arrangements, subject to such terms as will be determined by the
Board.

          (c) Share-based awards pursuant to this Section 10 are not required to be subject to any
minimum vesting period.

     11. Administration of the Plan.

          (a) This Plan will be administered by the Board, which may from time to time delegate all or
any part of its authority under this Plan to the Executive Compensation Committee of the Board or
any other committee of the Board (or a subcommittee thereof), as constituted from time to time. To
the extent of any such delegation, references in this Plan to the Board will be deemed to be
references to such committee or subcommittee.

          (b) The interpretation and construction by the Board of any provision of this Plan or of any
agreement, notification or document evidencing the grant of Option Rights, Appreciation Rights,
Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units or other awards
pursuant to Section 10 of this Plan and any determination by the Board pursuant to any provision of
this Plan or of any such agreement, notification or document will be final and conclusive.

          (c) The Board or, to the extent of any delegation as provided in Section 11(a), the committee,
may delegate to one or more of its members or to one or more executive officers of the Company, or
to one or more agents or advisors, such administrative duties or powers as it may deem advisable,
and the Board, the committee, or any person to whom duties or powers have been delegated as
aforesaid, may employ one or more persons to render advice with respect to any responsibility the
Board, the committee or such person may have under the Plan. The Board or the committee may, by
resolution, authorize one or more executive officers of the Company to do one or both of the
following on the same basis as the Board or the committee: (i) designate employees to be recipients
of awards under this Plan; (ii) determine the size of any such awards; provided,
however, that (A) the Board or the Committee will not delegate such responsibilities to any
such executive officer for awards granted to an employee who is an executive officer, Director, or
more than 10% beneficial owner of any class of the Company’s equity securities that is registered
pursuant to Section 12 of the Exchange Act, as determined by the Board in accordance with Section
16 of the Exchange Act, or any Covered Employee; (B) the resolution providing for such
authorization sets forth the total number of Common Shares such executive officer(s) may grant; and
(C) the executive officer(s) will report periodically to the Board or the committee, as the case
may be, regarding the nature and scope of the awards granted pursuant to the authority delegated.

     12. Adjustments. The Board will make or provide for such adjustments in the numbers of Common
Shares covered by outstanding Option Rights, Appreciation Rights,

15

 

Restricted Stock Units, Performance Shares and Performance Units granted hereunder and, if
applicable, in the number of Common Shares covered by other awards granted pursuant to Section 10
hereof, in the Option Price and Base Price provided in outstanding Option Rights and Appreciation
Rights, and in the kind of shares covered thereby, as the Board, in its sole discretion, may
determine is equitably required to prevent dilution or enlargement of the rights of Participants or
Optionees that otherwise would result from (a) any stock dividend, stock split, combination of
shares, recapitalization or other change in the capital structure of the Company, (b) any merger,
consolidation, spin-off, split- off, spin-out, split-up, reorganization, partial or complete
liquidation or other distribution of assets, issuance of rights or warrants to purchase securities,
or (c) any other corporate transaction or event having an effect similar to any of the foregoing.
Moreover, in the event of any such transaction or event or in the event of a Change in Control, the
Board, in its discretion, may provide in substitution for any or all outstanding awards under this
Plan such alternative consideration (including cash), if any, as it, in good faith, may determine
to be equitable in the circumstances and may require in connection therewith the surrender of all
awards so replaced in a manner that complies with Section 409A of the Code. In addition, for each
Option Right or Appreciation Right with an Option Price or Base Price greater than the
consideration offered in connection with any such transaction or event or Change in Control, the
Board may in its sole discretion elect to cancel such Option Right or Appreciation Right without
any payment to the person holding such Option Right or Appreciation Right. The Board will also
make or provide for such adjustments in the numbers of shares specified in Section 3 of this Plan
as the Board in its sole discretion, exercised in good faith, may determine is appropriate to
reflect any transaction or event described in this Section 12; provided, however,
that any such adjustment to the number specified in Section 3(b)(i) will be made only if and to the
extent that such adjustment would not cause any option intended to qualify as an Incentive Stock
Option to fail to so qualify.

     13. Change in Control. For purposes of this Plan, except as may be otherwise prescribed by
the Board in an Evidence of Award made under this Plan, a “Change in Control” will be deemed to
have occurred upon the occurrence of any of the following events:

          (a) The consummation of a merger, consolidation, combination (as defined in Section
1701.01(Q), Ohio Revised Code), or majority share acquisition (as defined in Section 1701.01(R),
Ohio Revised Code) involving the Company and as a result of which the securities of the Company
entitled to vote generally in the election of Directors that are outstanding immediately prior to
the transaction do not continue to represent, directly or indirectly (either by remaining
outstanding or by being converted into securities of the surviving entity or any parent thereof
entitled to vote in the election of directors of such entity), one-third or more of the voting
power of the surviving entity or any parent thereof;

          (b) The consummation of the sale of all or substantially all of the assets of the Company;

          (c) The adoption of any resolution of reorganization or dissolution of the Company by the
shareholders;

          (d) If during any period of two consecutive years, individuals who at the beginning of such
period constitute the Directors of the Company cease for any reason to

16

 

constitute a majority thereof; provided, however, that any individual who
becomes a Director during such period whose election, or nomination for election by the Company’s
shareholders, was approved by a vote of at least two-thirds of the Directors then still in office
who were Directors of the Company at the beginning of such period (either by specific vote or by
approval of the proxy statement of the Company in which such individual is named as a nominee for
Director, without objection to such nomination) will be considered as though such individual were a
Director of the Company at the beginning of such period, but excluding, for this purpose, any such
individual whose initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of Directors or other actual or threatened
solicitation of proxies or consents by or on behalf of any individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) other than the Board; or

          (e) The acquisition by any person (including a group within the meaning of Sections 13(d)(3)
or 14(d)(2) of the Exchange Act other than the Company (or any of its Subsidiaries) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 25% or more of
the Company’s then outstanding securities, unless such acquisition is approved by the vote of at
least two-thirds of the Directors of the Company then in office.

     14. Detrimental Activity. Any Evidence of Award may provide that if a Participant, either
during employment by the Company or a Subsidiary or within a specified period after termination of
such employment, will engage in any Detrimental Activity, and the Board will so find, forthwith
upon notice of such finding, the Participant will:

          (a) Forfeit any award granted under this Plan then held by the Participant;

          (b) Return to the Company, in exchange for payment by the Company of any amount actually paid
therefor by the Participant, all Common Shares that the Participant has not disposed of that were
offered pursuant to this Plan within a specified period prior to the date of the commencement of
such Detrimental Activity, and

          (c) With respect to any Common Shares so acquired that the Participant has disposed of, pay to
the Company in cash the difference between:

	 	(i)	 	Any amount actually paid therefor by the Participant pursuant
to this Plan, and

	 	(ii)	 	The Market Value per Share of the Common Shares on the date of
such disposition.

          (d) To the extent that such amounts are not paid to the Company, the Company may set off the
amounts so payable to it against any amounts that may be owing from time to time by the Company or
a Subsidiary to the Participant, whether as wages, deferred compensation or vacation pay or in the
form of any other benefit or for any other reason.

In addition, notwithstanding anything in the Plan to the contrary, any Evidence of Award may
provide for the cancellation or forfeiture of an award or the forfeiture and repayment to the

17

 

Company of any gain related to an award, or other provisions intended to have a similar effect,
upon such terms and conditions as may be determined by the Board from time to time.

     15. Non U.S. Participants. In order to facilitate the making of any grant or combination of
grants under this Plan, the Board may provide for such special terms for awards to Participants who
are foreign nationals or who are employed by the Company or any Subsidiary outside of the United
States of America or who provide services to the Company under an agreement with a foreign nation
or agency, as the Board may consider necessary or appropriate to accommodate differences in local
law, tax policy or custom. Moreover, the Board may approve such supplements to or amendments,
restatements or alternative versions of this Plan (including, without limitation, sub-plans) as it
may consider necessary or appropriate for such purposes, without thereby affecting the terms of
this Plan as in effect for any other purpose, and the Secretary or other appropriate officer of the
Company may certify any such document as having been approved and adopted in the same manner as
this Plan. No such special terms, supplements, amendments or restatements, however, will include
any provisions that are inconsistent with the terms of this Plan as then in effect unless this Plan
could have been amended to eliminate such inconsistency without further approval by the
shareholders of the Company.

     16. Transferability.

          (a) Except as otherwise determined by the Board, no Option Right, Appreciation Right,
Restricted Stock, Restricted Stock Unit, Performance Share, Performance Unit, Cash Incentive Award,
award contemplated by Section 9 or 10 of this Plan or dividend equivalents paid with respect to
awards made under the Plan will be transferable by the Participant except by will or the laws of
descent and distribution, and in no event will any such award granted under the Plan be transferred
for value. Except as otherwise determined by the Board, Option Rights and Appreciation Rights will
be exercisable during the Participant’s lifetime only by him or her or, in the event of the
Participant’s legal incapacity to do so, by his or her guardian or legal representative acting on
behalf of the Participant in a fiduciary capacity under state law or court supervision.

          (b) The Board may specify at the Date of Grant that part or all of the Common Shares that are
(i) to be issued or transferred by the Company upon the exercise of Option Rights or Appreciation
Rights, upon the termination of the Restriction Period applicable to Restricted Stock Units or upon
payment under any grant of Performance Shares or Performance Units or (ii) no longer subject to the
substantial risk of forfeiture and restrictions on transfer referred to in Section 6 of this Plan,
will be subject to further restrictions on transfer.

     17. Withholding Taxes. To the extent that the Company is required to withhold federal, state,
local or foreign taxes in connection with any payment made or benefit realized by a Participant or
other person under this Plan, and the amounts available to the Company for such withholding are
insufficient, it will be a condition to the receipt of such payment or the realization of such
benefit that the Participant or such other person make arrangements satisfactory to the Company for
payment of the balance of such taxes required to be withheld, which arrangements (in the discretion
of the Board) may include relinquishment of a portion of such benefit. If a Participant’s benefit
is to be received in the form of Common Shares, and such

18

 

Participant fails to make arrangements for the payment of tax, the Company will withhold such
Common Shares having a value equal to the amount required to be withheld. Notwithstanding the
foregoing, when a Participant is required to pay the Company an amount required to be withheld
under applicable income and employment tax laws, the Participant may elect to satisfy the
obligation, in whole or in part, by electing to have withheld, from the shares required to be
delivered to the Participant, Common Shares having a value equal to the amount required to be
withheld (except in the case of Restricted Stock where an election under Section 83(b) of the Code
has been made), or by delivering to the Company other Common Shares held by such Participant. The
shares used for tax withholding will be valued at an amount equal to the Market Value per Share of
such Common Shares on the date the benefit is to be included in Participant’s income. In no event
will the Market Value per Share of the Common Shares to be withheld and delivered pursuant to this
Section to satisfy applicable withholding taxes in connection with the benefit exceed the minimum
amount of taxes required to be withheld. Participants will also make such arrangements as the
Company may require for the payment of any withholding tax obligation that may arise in connection
with the disposition of Common Shares acquired upon the exercise of Option Rights.

     18. Compliance with Section 409A of the Code.

          (a) To the extent applicable, it is intended that this Plan and any grants made hereunder
comply with the provisions of Section 409A of the Code, so that the income inclusion provisions of
Section 409A(a)(1) of the Code do not apply to the Participants. This Plan and any grants made
hereunder will be administered in a manner consistent with this intent. Any reference in this Plan
to Section 409A of the Code will also include any regulations or any other formal guidance
promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal
Revenue Service.

          (b) Neither a Participant nor any of a Participant’s creditors or beneficiaries will have the
right to subject any deferred compensation (within the meaning of Section 409A of the Code) payable
under this Plan and grants hereunder to any anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, attachment or garnishment. Except as permitted under Section 409A of the Code,
any deferred compensation (within the meaning of Section 409A of the Code) payable to a Participant
or for a Participant’s benefit under this Plan and grants hereunder may not be reduced by, or
offset against, any amount owing by a Participant to the Company or any of its Subsidiaries.

          (c) If, at the time of a Participant’s separation from service (within the meaning of
Section 409A of the Code), (i) the Participant will be a specified employee (within the meaning of
Section 409A of the Code and using the identification methodology selected by the Company from time
to time) and (ii) the Company makes a good faith determination that an amount payable hereunder
constitutes deferred compensation (within the meaning of Section 409A of the Code) the payment of
which is required to be delayed pursuant to the six-month delay rule set forth in Section 409A of
the Code in order to avoid taxes or penalties under Section 409A of the Code, then the Company will
not pay such amount on the otherwise scheduled payment date but will instead pay it, without
interest, on the tenth business day of the seventh month after such separation from service.

19

 

          (d) Notwithstanding any provision of this Plan and grants hereunder to the contrary, in light
of the uncertainty with respect to the proper application of Section 409A of the Code, the Company
reserves the right to make amendments to this Plan and grants hereunder as the Company deems
necessary or desirable to avoid the imposition of taxes or penalties under Section 409A of the
Code. In any case, a Participant will be solely responsible and liable for the satisfaction of all
taxes and penalties that may be imposed on a Participant or for a Participant’s account in
connection with this Plan and grants hereunder (including any taxes and penalties under
Section 409A of the Code), and neither the Company nor any of its affiliates will have any
obligation to indemnify or otherwise hold a Participant harmless from any or all of such taxes or
penalties.

     19. Amendments.

          (a) The Board may at any time and from time to time amend this Plan in whole or in part;
provided, however, that if an amendment to this Plan (i) would materially increase
the benefits accruing to participants under this Plan, (ii) would materially increase the number of
Common Shares which may be issued under this Plan, (iii) would materially modify the requirements
for participation in this Plan, or (iv) must otherwise be approved by the shareholders of the
Company in order to comply with applicable law or the rules of the New York Stock Exchange or, if
the Common Shares are not traded on the New York Stock Exchange, the principal national securities
exchange upon which the Common Shares are traded or quoted, then, such amendment will be subject to
shareholder approval and will not be effective unless and until such approval has been obtained.

          (b) Except in connection with a corporate transaction or event described in Section 12 of this
Plan, the terms of outstanding awards may not be amended to reduce the Option Price of outstanding
Option Rights or the Base Price of outstanding Appreciation Rights, or cancel outstanding Option
Rights or Appreciation Rights in exchange for cash, other awards or Option Rights or Appreciation
Rights with an Option Price or Base Price, as applicable, that is less than the Option Price of the
original Option Rights or Base Price of the original Appreciation Rights, as applicable, without
shareholder approval. This Section 19(b) is intended to prohibit the repricing of “underwater”
Option Rights and Appreciation Rights and will not be construed to prohibit the adjustments
provided for in Section 12 of this Plan.

          (c) If permitted by Section 409A of the Code and Section 162(m) of the Code, but subject to
the paragraph that follows, in the case of involuntary termination of employment or
termination of employment by reason of death, disability, retirement, closing of business or
operation units, or elimination of job position, or in the case of unforeseeable emergency or other
special circumstances (including reaching reasonable age and service requirements approved by the
Board from time to time), of or relating to a Participant who holds an Option Right or Appreciation
Right not immediately exercisable in full, or any shares of Restricted Stock as to which the
substantial risk of forfeiture or the prohibition or restriction on transfer has not lapsed, or any
Restricted Stock Units as to which the Restriction Period has not been completed, or any Cash
Incentive Awards, Performance Shares or Performance Units which have not been fully earned, or any
other awards made pursuant to Section 10 subject to any vesting schedule or transfer restriction,
or who holds Common Shares subject to any transfer restriction imposed pursuant to Section 16(b) of
this Plan, the Board may, in its sole discretion, accelerate the time at

20

 

which such Option Right, Appreciation Right or other award may be exercised or the time at
which such substantial risk of forfeiture or prohibition or restriction on transfer will lapse or
the time when such Restriction Period will end or the time at which such Cash Incentive Awards,
Performance Shares or Performance Units will be deemed to have been fully earned or the time when
such transfer restriction will terminate or may waive any other limitation or requirement under any
such award except in the case of a Qualified Performance-Based Award where such action would result
in the loss of the otherwise available exemption of the award under Section 162(m) of the Code.

Subject to Section 19(b) hereof, the Board may amend the terms of any award theretofore granted
under this Plan prospectively or retroactively, except in the case of a Qualified Performance-Based
Award (other than in connection with the Participant’s death or disability, or a Change of Control)
where such action would result in the loss of the otherwise available exemption of the award under
Section 162(m) of the Code. In such case, the Board will not make any modification of the
Management Objectives or the level or levels of achievement with respect to such Qualified
Performance-Based Award. Subject to Section 12 above, no such amendment will impair the rights of
any Participant without his or her consent. The Board may, in its discretion, terminate this Plan
at any time. Termination of this Plan will not affect the rights of Participants or their
successors under any awards outstanding hereunder and not exercised in full on the date of
termination.

     20. Governing Law. This Plan and all grants and awards and actions taken hereunder will be
governed by and construed in accordance with the internal substantive laws of the State of Ohio.

     21. Effective Date/Termination. This Plan will be effective as of the Effective Date. No
grants will be made on or after November 7, 2010 (provided that this Plan is approved by the
shareholders of the Company prior to or on such date) under the Existing Plan, except that
outstanding awards granted under the Existing Plan will continue unaffected following such date.
No grant will be made under this Plan more than 10 years after November 7, 2010, but all grants
made on or prior to such date will continue in effect thereafter subject to the terms thereof and
of this Plan.

     22. Miscellaneous Provisions.

          (a) The Company will not be required to issue any fractional Common Shares pursuant to this
Plan. The Board may provide for the elimination of fractions or for the settlement of fractions in
cash.

          (b) This Plan will not confer upon any Participant any right with respect to continuance of
employment or other service with the Company or any Subsidiary, nor will it interfere in any way
with any right the Company or any Subsidiary would otherwise have to terminate such Participant’s
employment or other service at any time.

          (c) To the extent that any provision of this Plan would prevent any Option Right that was
intended to qualify as an Incentive Stock Option from qualifying as such, that provision will be
null and void with respect to such Option Right. Such provision, however, will

21

 

remain in effect for other Option Rights and there will be no further effect on any provision
of this Plan.

          (d) No award under this Plan may be exercised by the holder thereof if such exercise, and the
receipt of stock thereunder, would be, in the opinion of counsel selected by the Board, contrary to
law or the regulations of any duly constituted authority having jurisdiction over this Plan.

          (e) Absence on leave approved by a duly constituted officer of the Company or any of its
Subsidiaries will not be considered interruption or termination of service of any employee for any
purposes of this Plan or awards granted hereunder, except that no awards may be granted to an
employee while he or she is absent on leave.

          (f) No Participant will have any rights as a stockholder with respect to any shares subject to
awards granted to him or her under this Plan prior to the date as of which he or she is actually
recorded as the holder of such shares upon the stock records of the Company.

          (g) The Board may condition the grant of any award or combination of awards authorized under
this Plan on the surrender or deferral by the Participant of his or her right to receive a cash
bonus or other compensation otherwise payable by the Company or a Subsidiary to the Participant.

          (h) Except with respect to Option Rights and Appreciation Rights, the Board may permit
Participants to elect to defer the issuance of Common Shares under the Plan pursuant to such rules,
procedures or programs as it may establish for purposes of this Plan and which are intended to
comply with the requirements of Section 409A of the Code. The Board also may provide that deferred
issuances and settlements include the payment or crediting of dividend equivalents or interest on
the deferral amounts.

          (i) If any provision of this Plan is or becomes invalid, illegal or unenforceable in any
jurisdiction, or would disqualify this Plan or any award under any law deemed applicable by the
Board, such provision will be construed or deemed amended or limited in scope to conform to
applicable laws or, in the discretion of the Board, it will be stricken and the remainder of this
Plan will remain in full force and effect.

22

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