Document:

exv10w1

 

Exhibit 10.1

[Published CUSIP Number: ________________]  

CREDIT AGREEMENT

Dated as of November 18, 2005

among

MICHAELS STORES, INC.

as the Borrower,

BANK OF AMERICA, N.A.,

as Administrative Agent, Swing Line Lender

and

L/C Issuer,

and

The Other Lenders Party Hereto

JPMORGAN CHASE BANK, N.A.,

as Syndication Agent

BANC OF AMERICA SECURITIES LLC

and

J.P. MORGAN SECURITIES, INC.,

as Joint Lead Arrangers and Joint Book Managers

and

CITICORP USA, INC., WACHOVIA BANK, N.A., WELLS FARGO BANK, N.A., as Co-

Documentation Agents

 

 

TABLE
OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE I.
	 	DEFINITIONS AND ACCOUNTING TERMS	 	 	1	 
	1.01.
	 	Defined Terms	 	 	1	 
	1.02.
	 	Other Interpretive Provisions	 	 	19	 
	1.03.
	 	Accounting Terms	 	 	20	 
	1.04.
	 	Rounding	 	 	21	 
	1.05.
	 	Times of Day	 	 	21	 
	1.06.
	 	Letter of Credit Amounts	 	 	21	 
	1.07.
	 	Exchange Rates; Currency Equivalents	 	 	21	 
	1.08.
	 	Additional Alternative Currencies	 	 	21	 
	1.09.
	 	Change of Currency	 	 	22	 
	ARTICLE II.
	 	the COMMITMENTS and Credit Extensions	 	 	22	 
	2.01.
	 	Committed Loans	 	 	22	 
	2.02.
	 	Borrowings, Conversions and Continuations of Committed Loans	 	 	23	 
	2.03.
	 	Bid Loans	 	 	24	 
	2.04.
	 	Letters of Credit	 	 	27	 
	2.05.
	 	Swing Line Loans	 	 	35	 
	2.06.
	 	Prepayments	 	 	37	 
	2.07.
	 	Termination or Reduction of Commitments	 	 	38	 
	2.08.
	 	Repayment of Loans	 	 	39	 
	2.09.
	 	Interest	 	 	39	 
	2.10.
	 	Fees	 	 	39	 
	2.11.
	 	Computation of Interest and Fees	 	 	40	 
	2.12.
	 	Evidence of Debt	 	 	40	 
	2.13.
	 	Payments Generally; Administrative
Agent’s Clawback	 	 	41	 
	2.14.
	 	Sharing of Payments by Lenders	 	 	42	 
	2.15.
	 	Increase in Commitments	 	 	43	 
	2.16.
	 	Guaranties	 	 	44	 
	ARTICLE III.
	 	TAXES, YIELD PROTECTION AND ILLEGALITY	 	 	44	 
	3.01.
	 	Taxes	 	 	44	 
	3.02.
	 	Illegality	 	 	47	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	3.03.
	 	Inability to Determine Rates	 	 	47	 
	3.04.
	 	Increased Costs; Reserves of Eurocurrency Loans	 	 	47	 
	3.05.
	 	Compensation for Losses	 	 	49	 
	3.06.
	 	Mitigation Obligations; Replacement of Lenders	 	 	50	 
	3.07.
	 	Requests for Compensation	 	 	51	 
	3.08.
	 	Survival	 	 	51	 
	ARTICLE IV.
	 	CONDITIONS PRECEDENT TO Credit Extensions	 	 	51	 
	4.01.
	 	Conditions of Initial Credit Extension	 	 	51	 
	4.02.
	 	Conditions to all Credit Extensions	 	 	52	 
	ARTICLE V.
	 	REPRESENTATIONS AND WARRANTIES	 	 	53	 
	5.01.
	 	Existence, Qualification and Power	 	 	53	 
	5.02.
	 	Authorization; No Contravention	 	 	53	 
	5.03.
	 	Governmental Authorization; Other Consents	 	 	53	 
	5.04.
	 	Binding Effect	 	 	53	 
	5.05.
	 	Financial Statements	 	 	53	 
	5.06.
	 	Litigation	 	 	54	 
	5.07.
	 	No Default	 	 	54	 
	5.08.
	 	Ownership of Property; Liens	 	 	54	 
	5.09.
	 	Environmental Compliance	 	 	54	 
	5.10.
	 	Intentionally Omitted	 	 	54	 
	5.11.
	 	Taxes	 	 	55	 
	5.12.
	 	ERISA Compliance	 	 	55	 
	5.13.
	 	Subsidiaries; Guarantors	 	 	55	 
	5.14.
	 	Margin Regulations; Investment Company Act; Public Utility
Holding Company Act	 	 	55	 
	5.15.
	 	Disclosure	 	 	56	 
	5.16.
	 	Compliance with Laws	 	 	56	 
	5.17.
	 	Intellectual Property; Licenses, Etc	 	 	56	 
	5.18.
	 	Fiscal Year	 	 	56	 
	5.19.
	 	Obligor Group Requirement	 	 	56	 

ii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE VI.
	 	AFFIRMATIVE COVENANTS	 	 	57	 
	6.01.
	 	Financial Statements	 	 	57	 
	6.02.
	 	Certificates; Other Information	 	 	57	 
	6.03.
	 	Notices	 	 	58	 
	6.04.
	 	Payment of Obligations	 	 	59	 
	6.05.
	 	Preservation of Existence, Etc.	 	 	59	 
	6.06.
	 	Maintenance of Properties	 	 	59	 
	6.07.
	 	Maintenance of Insurance	 	 	60	 
	6.08.
	 	Compliance with Laws	 	 	60	 
	6.09.
	 	Books and Records	 	 	60	 
	6.10.
	 	Inspection Rights	 	 	60	 
	6.11.
	 	Use of Proceeds	 	 	60	 
	6.12.
	 	Additional Guarantors	 	 	60	 
	6.13.
	 	Business Activities	 	 	61	 
	6.14.
	 	Further Assurances	 	 	61	 
	ARTICLE VII.
	 	NEGATIVE COVENANTS	 	 	61	 
	7.01.
	 	Liens	 	 	61	 
	7.02.
	 	Fundamental Changes	 	 	62	 
	7.03.
	 	Burdensome Agreements	 	 	62	 
	7.04.
	 	Use of Proceeds	 	 	63	 
	7.05.
	 	Financial Covenants	 	 	63	 
	ARTICLE VIII.
	 	EVENTS OF DEFAULT AND REMEDIES	 	 	63	 
	8.01.
	 	Events of Default	 	 	63	 
	8.02.
	 	Remedies Upon Event of Default	 	 	65	 
	8.03.
	 	Application of Funds	 	 	65	 
	ARTICLE IX.
	 	ADMINISTRATIVE AGENT	 	 	66	 
	9.01.
	 	Appointment and Authority	 	 	66	 
	9.02.
	 	Rights as a Lender	 	 	66	 
	9.03.
	 	Exculpatory Provisions	 	 	66	 
	9.04.
	 	Reliance by Administrative Agent	 	 	67	 

iii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	9.05.
	 	Delegation of Duties	 	 	67	 
	9.06.
	 	Resignation of Administrative Agent	 	 	68	 
	9.07.
	 	Non-Reliance on Administrative Agent and Other Lenders	 	 	68	 
	9.08.
	 	No Other Duties, Etc.	 	 	69	 
	9.09.
	 	Administrative Agent May File Proofs of Claim	 	 	69	 
	9.10.
	 	Guaranty Matters	 	 	69	 
	9.11.
	 	Reliance by the Borrower	 	 	69	 
	ARTICLE X.
	 	MISCELLANEOUS	 	 	70	 
	10.01.
	 	Amendments, Etc.	 	 	70	 
	10.02.
	 	Notices; Effectiveness; Electronic Communication	 	 	71	 
	10.03.
	 	No Waiver; Cumulative Remedies	 	 	73	 
	10.04.
	 	Expenses; Indemnity; Damage Waiver	 	 	73	 
	10.05.
	 	Payments Set Aside	 	 	74	 
	10.06.
	 	Successors and Assigns	 	 	75	 
	10.07.
	 	Treatment of Certain Information; Confidentiality	 	 	78	 
	10.08.
	 	Right of Setoff	 	 	78	 
	10.09.
	 	Interest Rate Limitation	 	 	79	 
	10.10.
	 	Counterparts; Integration; Effectiveness	 	 	79	 
	10.11.
	 	Survival of Representations and Warranties	 	 	79	 
	10.12.
	 	Severability	 	 	79	 
	10.13.
	 	Replacement of Lenders	 	 	79	 
	10.14.
	 	Governing Law; Jurisdiction; Etc.	 	 	80	 
	10.15.
	 	Waiver of Jury Trial	 	 	81	 
	10.16.
	 	USA PATRIOT Act Notice	 	 	81	 
	10.17.
	 	Time of the Essence	 	 	81	 
	10.18.
	 	Judgment Currency	 	 	81	 
	10.19.
	 	Collateral	 	 	82	 
	10.20.
	 	Entire Agreement	 	 	82	 

iv

 

SCHEDULES

1.01  Mandatory Cost Formulae

2.01  Commitments and Applicable Percentages

5.13  Subsidiaries; Guarantors

5.17  Intellectual Property Matters

10.02  Administrative Agent’s Office; Certain Addresses for Notices

10.06  Processing and Recordation Fees

EXHIBITS

               Form of

A            Committed Loan Notice

B-1         Bid Request

B-2         Competitive Bid

C            Swing Line Loan Notice

D            Note

E            Compliance Certificate

F            Assignment and Assumption

G            Guaranty

 

 

CREDIT AGREEMENT

     This CREDIT AGREEMENT (“Agreement”) is entered into as of November 18, 2005 among
MICHAELS STORES, INC., a Delaware corporation (the “Borrower”), each lender from time to
time party hereto (collectively, the “Lenders” and individually, a “Lender”), and
BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

     The Borrower has requested that the Lenders provide a revolving credit facility, and the
Lenders are willing to do so on the terms and conditions set forth herein.

     In consideration of the mutual covenants and agreements herein contained, the parties hereto
covenant and agree as follows:

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS

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

     “Absolute Rate” means a fixed rate of interest expressed in multiples of
1/100th of one basis point.

     “Absolute Rate Loan” means a Bid Loan that bears interest at a rate determined with
reference to an Absolute Rate.

     “Administrative Agent” means Bank of America in its capacity as administrative agent
for the Lenders under any of the Loan Documents, or any successor administrative agent appointed
pursuant to Article IX.

     “Administrative Agent’s Office” means, with respect to any currency, the
Administrative Agent’s address and, as appropriate, account set forth on Schedule 10.02
with respect to such currency, or such other address or account with respect to such currency as
the Administrative Agent may from time to time notify in writing to the Borrower and the Lenders.

     “Administrative Questionnaire” means an Administrative Questionnaire in a form
supplied by the Administrative Agent duly completed copies of which have been delivered to the
Administrative Agent (and thereafter delivered by the Administrative Agent to the Borrower).

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

     “Aggregate Commitments” means the Commitments of all the Lenders. As of the date
hereof, the Aggregate Commitment is $300,000,000.

     “Agreement” has the meaning specified in the introductory paragraph hereto.

     “Alternative Currency” means each of Euro, Sterling, Yen and the Canadian Dollar and
each other currency (other than Dollars) that is approved in accordance with Section 1.08.

 

 

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

     “Alternative Currency Sublimit” means an amount equal to the lesser of the Aggregate
Commitments and $25,000,000. The Alternative Currency Sublimit is part of, and not in addition to,
the Aggregate Commitments.

     “Applicable Percentage” means with respect to any Lender at any time, the percentage
(carried out to the ninth decimal place) of the Aggregate Commitments represented by such Lender’s
Commitment at such time. If the commitment of each Lender to make Loans and the obligation of the
L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section 8.02 or
if the Aggregate Commitments have expired, then the Applicable Percentage of each Lender shall be
determined based on the Applicable Percentage of such Lender most recently in effect, giving effect
to any subsequent assignments. The initial Applicable Percentage of each Lender is set forth
opposite the name of such Lender on Schedule 2.01 or in the Assignment and Assumption
pursuant to which such Lender becomes a party hereto, as applicable.

     “Applicable Rate” means the following percentages per annum, based upon the
Consolidated Leverage Ratio as set forth in the most recent Compliance Certificate received by the
Administrative Agent pursuant to Section 6.02(a):

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applicable Rate 
	 	 	 	 	 	 	 	 	Eurocurrency	 	 	 	 
	 	 	 	 	 	 	 	 	Rate	 	 	 	 
	 	 	 	 	 	 	 	 	Standby	 	 	 	 
	 	 	Consolidated	 	 	 	 	 	Letters of	 	Commercial Letters	 	 
	Pricing Level	 	Leverage Ratio	 	Commitment Fee	 	Credit	 	of Credit	 	Base Rate
	I

	 	32.75:1.00
	 	 	0.225	%	 	 	1.25	%	 	 	0.625	%	 	 	0	%
	II

	 	<2.75:1.00 and
32.25:1.00
	 	 	0.175	%	 	 	1.00	%	 	 	0.50	%	 	 	0	%
	III

	 	<2.25:1.00 and
31.75:1.00
	 	 	0.125	%	 	 	0.75	%	 	 	0.375	%	 	 	0	%
	IV

	 	<1.75:1.00 and
31.25:1.00
	 	 	0.11	%	 	 	0.625	%	 	 	0.3125	%	 	 	0	%
	V

	 	<1.25:1.00
	 	 	0.10	%	 	 	0.50	%	 	 	0.25	%	 	 	0	%

     Any increase or decrease in the Applicable Rate resulting from a change in the Consolidated
Leverage Ratio shall become effective as of the first Business Day immediately following the date a
Compliance Certificate is delivered pursuant to Section 6.02(a); provided,
however, that if a Compliance Certificate is not delivered when due in accordance with such
Section, then Pricing Level I shall apply as of the first Business Day after the date on which such
Compliance Certificate was required to have been delivered. The Applicable Rate in effect from the
Closing Date through the first Business Day immediately following the date the Compliance
Certificate is delivered for the fiscal quarter ended January 28, 2006 shall be determined based
upon Pricing Level III.

     “Applicable Time” means, with respect to any borrowings and payments in any
Alternative

2

 

Currency, the local time in the place of settlement for such Alternative Currency as
may be determined by the Administrative Agent or the L/C Issuer, as the case may be, to be
necessary for timely settlement on
the relevant date in accordance with normal banking procedures in the place of payment.

     “Assignee Group” means two or more Eligible Assignees that are Affiliates of one
another.

     “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an Eligible Assignee (with the consent of any party whose consent is required by
Section 10.06(b), and accepted by the Administrative Agent, in substantially the form of
Exhibit F or any other form reasonably accepted by the Administrative Agent.

     “Attributable Indebtedness” means, on any date, (a) in respect of any capital lease of
any Person, the capitalized amount thereof that would appear on a balance sheet of such Person
prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease
Obligation, the capitalized amount of the remaining lease payments under the relevant lease that
would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if
such lease were accounted for as a capital lease.

     “Audited Financial Statements” means the audited consolidated balance sheet of the
Borrower and its Subsidiaries for the fiscal year ended January 29, 2005 and the related
consolidated statements of income or operations, shareholders’ equity and cash flows for such
fiscal year of the Borrower and its Subsidiaries, including the notes thereto.

     “Availability Period” means the period from and including the Closing Date to the
earliest of (a) the Maturity Date, (b) the date of termination of the Aggregate Commitments
pursuant to Section 2.07, and (c) the date of termination of the commitment of each Lender
to make Loans and of the obligation of the L/C Issuer to make L/C Credit Extensions pursuant to
Section 8.02.

     “Bank of America” means Bank of America, N.A. and its successors.

     “Base Rate" means for any day a fluctuating rate per annum equal to the
higher of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect for such
day as publicly announced from time to time by Bank of America as its “prime rate.” Any change in
such rate announced by Bank of America shall take effect at the opening of business on the day
specified in the public announcement of such change.

     “Base Rate Committed Loan” means a Committed Loan that is a Base Rate Loan.

     “Base Rate Loan” means a Loan that bears interest based on the Base Rate. All Base
Rate Loans shall be denominated in Dollars.

     “Bid Borrowing” means a borrowing consisting of simultaneous Bid Loans of the same
Type from each of the Lenders whose offer to make one or more Bid Loans as part of such borrowing
has been accepted under the auction bidding procedures described in Section 2.03.

     “Bid Loan” has the meaning specified in Section 2.03(a). Bid Loans may only be
denominated in Dollars.

     “Bid Loan Lender” means, in respect of any Bid Loan, the Lender making such Bid Loan
to the Borrower.

3

 

     “Bid Loan Sublimit” means an amount equal to $50,000,000. The Bid Loan Sublimit is
part of, and not in addition to, the Aggregate Commitments.

     “Bid Request” means a written request for one or more Bid Loans substantially in the
form of Exhibit B-1 or any other form reasonably accepted by the Administrative Agent.

     “Borrower” has the meaning specified in the introductory paragraph hereto.

     “Borrower Materials” has the meaning specified in Section 6.02.

     “Borrowing” means a Committed Borrowing, a Bid Borrowing or a Swing Line Borrowing, as
the context may require.

     “Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact closed in, the State of
Texas or the state where the Administrative Agent’s Office with respect to Obligations denominated
in Dollars is located as set forth on Schedule 10.02 and:

     (a) if such day relates to any interest rate settings as to a Eurocurrency Rate Loan
denominated in Dollars, any fundings, disbursements, settlements and payments in Dollars in respect
of any such Eurocurrency Rate Loan, or any other dealings in Dollars to be carried out pursuant to
this Agreement in respect of any such Eurocurrency Rate Loan, means any such day on which dealings
in deposits in Dollars are conducted by and between banks in the London interbank eurodollar
market;

     (b) if such day relates to any interest rate settings as to a Eurocurrency Rate Committed Loan
denominated in Euro, any fundings, disbursements, settlements and payments in Euro in respect of
any such Eurocurrency Rate Committed Loan, or any other dealings in Euro to be carried out pursuant
to this Agreement in respect of any such Eurocurrency Rate Committed Loan, means a TARGET Day;

     (c) if such day relates to any interest rate settings as to a Eurocurrency Rate Committed Loan
denominated in a currency other than Dollars or Euro, means any such day on which dealings in
deposits in the relevant currency are conducted by and between banks in the London or other
applicable offshore interbank market for such currency; and

     (d) if such day relates to any fundings, disbursements, settlements and payments in a currency
other than Dollars or Euro in respect of a Eurocurrency Rate Committed Loan denominated in a
currency other than Dollars or Euro, or any other dealings in any currency other than Dollars or
Euro to be carried out pursuant to this Agreement in respect of any such Eurocurrency Rate
Committed Loan (other than any interest rate settings), means any such day on which banks are open
for foreign exchange business in the principal financial center of the country of such currency.

     “Canadian Dollars” means dollars in lawful currency of Canada.

     “Capitalized Leases” means, with respect to any Person, leases under which such
Person is the lessee or obligor, the obligations under which are required to be capitalized on the
balance sheet of the lessee or obligor in accordance with GAAP.

     “Cash Collateralize” has the meaning specified in Section 2.04(g).

     “Change in Law” means the occurrence, after the date of this Agreement (or, if later,
the date on which the applicable Lender affected by any of the following became a Lender
hereunder), of any of the

4

 

following: (a) the adoption or taking effect of any law, rule, regulation
or treaty, (b) any change in any law, rule, regulation or treaty or in the administration,
interpretation or application thereof by any
Governmental Authority or (c) the making or issuance of any request, guideline or directive
(whether or not having the force of law) by any Governmental Authority.

     “Change of Control” means (a) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the Securities Exchange
Act of 1934 and the rules of the SEC thereunder), other than (i) an employee benefit or stock
ownership plan of the Borrower and any person or entity acting in its capacity as trustee, agent or
other fiduciary or administrator of such plan and (ii) any Permitted Holder, of Equity Interests
representing more than 35% of the aggregate ordinary voting power represented by the issued and
outstanding Equity Interests of the Borrower or (b) the occupation of a majority of the seats
(other than vacant seats) on the board of directors of the Borrower by Persons who were neither (i)
nominated by the board of directors of the Borrower nor (ii) appointed by directors so nominated.

     “Closing Date” means the first date all the conditions precedent in Section
4.01 are satisfied or waived in accordance with Section 10.01.

     “Code” means the Internal Revenue Code of 1986.

     “Commitment” means, as to each Lender, its obligation to (a) make Committed Loans to
the Borrower pursuant to Section 2.01, (b) purchase participations in L/C Obligations, and
(c) purchase participations in Swing Line Loans, in an aggregate principal amount at any one time
outstanding not to exceed the Dollar amount set forth opposite such Lender’s name on Schedule
2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto,
as applicable, as such amount may be increased from time to time pursuant to Section 2.15
or otherwise adjusted from time to time in accordance with this Agreement.

     “Committed Borrowing” means a borrowing consisting of simultaneous Committed Loans of
the same Type, in the same currency and, in the case of Eurocurrency Rate Committed Loans, having
the same Interest Period made by each of the Lenders pursuant to Section 2.01.

     “Committed Loan” has the meaning specified in Section 2.01.

     “Committed Loan Notice” means a notice of (a) a Committed Borrowing, (b) a conversion
of Committed Loans from one Type to the other, or (c) a continuation of Eurocurrency Rate Committed
Loans, pursuant to Section 2.02(a), which, if in writing, shall be substantially in the
form of Exhibit A or any other form reasonably accepted by the Administrative Agent.

     “Competitive Bid” means a written offer by a Lender to make one or more Bid Loans,
substantially in the form of Exhibit B-2, duly completed and signed by a Lender.

     “Compliance Certificate” means a certificate substantially in the form of Exhibit
E or any other form reasonably accepted by the Administrative Agent.

     “Consolidated EBITDAR” means, with respect to the Borrower and its Subsidiaries on a
consolidated basis for any period, (a) Consolidated Net Income, but before payment or provision for
(i) any income taxes for such period, (ii) Consolidated Total Interest Expense for such period,
(iii) depreciation for such period, (iv) amortization for such period, and (v) all other noncash
charges (excluding charges that result in an accrual or a reserve for cash charges in the future)
for such period plus (b) Consolidated Rental Expense for such period, all determined in
accordance with GAAP.

5

 

     “Consolidated Fixed Charge Coverage Ratio” means, as of any date of determination, the
ratio of (a) Consolidated EBITDAR for the period of the four prior fiscal quarters ending on such
date to (b) (i) Consolidated Total Interest Expense for such period plus (ii) Consolidated
Rental Expense for such period; provided that if, on or prior to the applicable date of
determination an acquisition or disposition permitted hereunder outside the ordinary course of
business has occurred that has the effect of increasing or decreasing the Consolidated Fixed Charge
Coverage Ratio, then the Consolidated Fixed Charge Coverage Ratio shall be calculated on a pro
forma basis following any such acquisition or disposition as though such acquisition or disposition
occurred at the beginning of the four fiscal quarter period most recently ended.

     “Consolidated Funded Indebtedness” means, at any time of determination, the sum of (i)
the amount of the Loans outstanding (after giving account to any amounts requested and without
duplication of amounts on account of conversions of Loans from one Type to another Type and
continuations of any Type of Loans as such); plus (ii) the outstanding amount of any other
Indebtedness for borrowed money, in respect of Capitalized Leases of the Borrower and its
Subsidiaries or which is otherwise subject to the payment of interest.

     “Consolidated Leverage Ratio” means, as of any date of determination, the ratio of (a)
(i) Consolidated Funded Indebtedness as of such date plus (ii) Consolidated Rental Expense
for the four prior fiscal quarters ending on such date multiplied by 6 to (b) Consolidated EBITDAR
for the four prior fiscal quarters ending on such date ; provided that if, on or prior to
the applicable date of determination an acquisition or disposition permitted hereunder outside the
ordinary course of business has occurred that has the effect of increasing or decreasing the
Consolidated Leverage Ratio, then the Consolidated Leverage Ratio shall be calculated on a pro
forma basis following any such acquisition or disposition as though such acquisition or disposition
occurred at the beginning of the four fiscal quarter period most recently ended.

     “Consolidated Net Income” means, with respect to the Borrower and its Subsidiaries on
a consolidated basis for any period, the consolidated earnings (or loss) from operations of the
Borrower and its Subsidiaries for such period, after eliminating therefrom all extraordinary
nonrecurring items of income (including gains on the sale of assets and earnings from the sale of
discontinued business lines), and after all expenses and other proper charges, all determined in
accordance with GAAP.

     “Consolidated Rental Expense” means, for any period, all fixed minimum rental expense
of the Borrower and its Subsidiaries during such period, determined on a consolidated basis in
accordance with GAAP, incurred under any rental agreements or leases of real or personal property,
including space leases and ground leases, other than obligations in respect of any Capitalized
Leases of the Borrower and its Subsidiaries.

     “Consolidated Tangible Net Worth” means the excess of Consolidated Total Assets over
Consolidated Total Liabilities, and less the sum of:

     (a) the total book value of all assets of the Borrower and its Subsidiaries properly
classified as intangible assets under GAAP, including such items as goodwill, the purchase price of
acquired assets in excess of the fair market value thereof, trademarks, trade names, service marks,
brand names, copyrights, patents and licenses, and rights with respect to the foregoing;
plus

     (b) all amounts representing any write-up in the book value of any assets of the Borrower or
its Subsidiaries resulting from a revaluation thereof subsequent to the date of the Audited
Financial Statements; plus

6

 

     (c) to the extent otherwise includable in the computation of Consolidated Tangible Net Worth,
any subscriptions receivable.

     “Consolidated Total Assets” means all assets of the Borrower and its Subsidiaries
determined on a consolidated basis in accordance with GAAP.

     “Consolidated Total Interest Expense” means, for any period, the aggregate amount of
interest required to be paid or accrued by the Borrower and its Subsidiaries during such period on
all Indebtedness of the Borrower and its Subsidiaries outstanding during all or any part of such
period, whether such interest was or is required to be reflected as an item of expense or
capitalized (excluding capitalized interest relating to construction projects determined in
accordance with GAAP), including payments consisting of interest in respect of any Capitalized
Lease of the Borrower or any of its Subsidiaries, and including commitment fees, agency fees and
facility fees, all exclusive of investment income.

     “Consolidated Total Liabilities” means all liabilities of the Borrower and its
Subsidiaries determined on a consolidated basis in accordance with GAAP.

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

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

     “Credit Extension” means each of the following: (a) a Borrowing and (b) an L/C Credit
Extension.

     “Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other
applicable liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, fraudulent conveyance, reorganization, or
similar debtor relief Laws of the United States or other applicable jurisdictions from time to time
in effect and affecting the rights of creditors generally.

     “Default” means any event or condition that constitutes an Event of Default or that,
with the giving of any notice, the passage of time, or both, would be an Event of Default.

     “Default Rate” means (a) when used with respect to Obligations other than Letter of
Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate, if
any, applicable to Base Rate Loans plus (iii) 2% per annum; provided,
however, that with respect to a Eurocurrency Rate Loan, the Default Rate shall be an
interest rate equal to the interest rate (including any Applicable Rate and any Mandatory Cost)
otherwise applicable to such Loan plus 2% per annum, and (b) when used with respect to Letter of
Credit Fees, a rate equal to the Applicable Rate plus 2% per annum.

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

7

 

     “Dispose” means the sale, transfer, license, lease or other disposition (including any
sale and leaseback transaction) of any property by any Person, including any sale, assignment,
transfer or other disposal, with or without recourse, of any notes or accounts receivable or any
rights and claims associated therewith.

     “Dollar” and “$” mean lawful money of the United States.

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

     “Domestic Subsidiary” means any Subsidiary that is organized under the laws of the
United States, a State thereof or the District of Columbia.

     “Eligible Assignee” means (a) a Lender; (b) an Affiliate of a Lender; and (c) any
other Person (other than a natural person) approved by (i) the Administrative Agent, the L/C Issuer
and the Swing Line Lender, and (ii) unless an Event of Default has occurred and is continuing, the
Borrower (each such approval not to be unreasonably withheld or delayed); provided that
notwithstanding the foregoing, “Eligible Assignee” shall not include the Borrower or any of the
Borrower’s Affiliates or Subsidiaries; and provided further, however, that
an Eligible Assignee shall include only a Lender, an Affiliate of a Lender or another Person,
which, through its Lending Offices, is capable of lending the applicable Alternative Currency to
the Borrower without the imposition of any additional Indemnified Taxes.

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

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

     “Environmental Laws” means any and all applicable Federal, state, local, and foreign
statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions,
grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the
protection of the environment or the release of any materials into the environment, including those
related to Hazardous Materials.

     “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the
Borrower or any of its Subsidiaries directly or indirectly resulting from or based upon (a)
violation of any Environmental Law, (b) the generation, use, handling, transportation, storage,
treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the
release or threatened release of any Hazardous Materials into the environment or (e) any contract,
agreement or other consensual arrangement pursuant to which liability is assumed or imposed with
respect to any of the foregoing.

     “Equity Interests” means, with respect to any Person, all of the shares of capital
stock of (or other ownership or profit interests in) such Person, all of the warrants, options or
other rights for the purchase or acquisition from such Person of shares of capital stock of (or
other ownership or profit interests in) such Person, all of the securities convertible into or
exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person
or warrants, rights or options for the purchase or acquisition

8

 

from such Person of such shares (or such other interests), and all of the other ownership or
profit interests in such Person (including partnership, member or trust interests therein), whether
voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests
are outstanding on any date of determination.

     “ERISA” means the Employee Retirement Income Security Act of 1974.

     “ERISA Affiliate” means any trade or business (whether or not incorporated) under
common control with the Borrower within the meaning of Section 414(b) or (c) of the Code (and
Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the
Code).

     “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a
withdrawal by the Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of
ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2)
of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e)
of ERISA; (c) the incurrence by the Borrower or any ERISA Affiliate of any liability with respect
to the complete or partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer
Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of
intent to terminate, the treatment of a Plan amendment as a termination under Sections 4041 or
4041A of ERISA, or the commencement of proceedings by the PBGC to terminate, a Pension Plan or
Multiemployer Plan; (e) an event or condition which constitutes grounds under Section 4042 of ERISA
for the termination of, or the appointment of a trustee to administer, any Pension Plan or
Multiemployer Plan; or (f) the imposition of any liability under Title IV of ERISA, other than for
PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA
Affiliate.

     “Euro,”
“EUR” and “€” mean the lawful currency of the Participating
Member States introduced in accordance with the EMU Legislation.

     “Eurocurrency Bid Margin” means the margin above or below the Eurocurrency Rate to be
added to or subtracted from the Eurocurrency Rate, which margin shall be expressed in multiples of
1/100th of one basis point.

     “Eurocurrency Margin Bid Loan” means a Bid Loan that bears interest at a rate based
upon the Eurocurrency Rate.

     “Eurocurrency Rate” means, for any Interest Period with respect to a Eurocurrency Rate
Loan, the rate per annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”),
as published by Reuters (or other commercially available source providing quotations of BBA LIBOR
as designated by the Administrative Agent from time to time) at approximately 10:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period, for deposits in the
relevant currency (for delivery on the first day of such Interest Period) with a term equivalent to
such Interest Period. If such rate is not available at such time for any reason, then the
“Eurocurrency Rate” for such Interest Period shall be the rate per annum determined by the
Administrative Agent to be the rate at which deposits in the relevant currency for delivery on the
first day of such Interest Period in Same Day Funds in the approximate amount of the Eurocurrency
Rate Loan being made, continued or converted by the Administrative Agent and with a term equivalent
to such Interest Period would be offered by the Administrative Agent’s London Branch (or other
branch or Affiliate of the Administrative Agent) to major banks in the London or other offshore
interbank market for such currency at their request at approximately 10:00 a.m. (London time) two
Business Days prior to the commencement of such Interest Period.

9

 

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

     “Eurocurrency Rate Loan” means a Eurocurrency Rate Committed Loan or a Eurocurrency
Margin Bid Loan.

     “Event of Default” has the meaning specified in Section 8.01.

     “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the L/C
Issuer or any other recipient of any payment to be made by or on account of any obligation of the
Borrower hereunder, (a) taxes imposed on or measured by its overall net income (however
denominated), and franchise taxes imposed on it, by any Governmental Authority, (b) any branch
profits taxes imposed by any Governmental Authority and (c) in the case of a Foreign Lender (other
than an assignee pursuant to a request by the Borrower under Section 10.13), any
withholding tax that is imposed on amounts payable to such Foreign Lender that is in effect at the
time such Foreign Lender becomes a party hereto (or designates a new Lending Office) or is
attributable to such Foreign Lender’s failure or inability (other than as a result of a Change in
Law) to comply with Section 3.01(e), except to the extent that such Foreign Lender (or its
assignor, if any) was entitled, at the time of designation of a new Lending Office (or assignment),
to receive additional amounts from the Borrower with respect to such withholding tax pursuant to
Section 3.01(a).

     “Existing Credit Agreement” means that certain Revolving Credit Agreement, as amended,
dated as of May 1, 2001 among the Borrower, Bank of America, N.A. (as successor by merger to Fleet
National Bank), as agent, and a syndicate of lenders.

     “Existing Letters of Credit” means the letters of credit issued prior to the Closing
Date for the account of the Borrower or a Subsidiary of the Borrower under the Existing Credit
Agreement.

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

     “Fee Letters” means (a) the letter agreement, dated October 24, 2005, among the
Borrower, the Administrative Agent, the Syndication Agent and the Joint Arrangers and (b) the
letter agreement, dated October 24, 2005, among the Borrower, the Administrative Agent and Banc of
America Securities LLC.

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

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

10

 

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

     “GAAP” means generally accepted accounting principles in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board or such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the circumstances as of the date
of determination, consistently applied.

     “Governmental Authority” means the government of the United States or any other
nation, or of any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government (including any supra-national bodies such as the European Union or the European Central
Bank).

     “Guarantee” means, as to any Person, any obligation, contingent or otherwise, of such
Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other
obligation payable or performable by another Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation, (ii) to purchase or lease property, securities or services for the purpose of
assuring the obligee in respect of such Indebtedness or other obligation of the payment or
performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity
capital or any other financial statement condition or liquidity or level of income or cash flow of
the primary obligor so as to enable the primary obligor to pay such Indebtedness or other
obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in
respect of such Indebtedness or other obligation of the payment or performance thereof or to
protect such obligee against loss in respect thereof (in whole or in part); provided, that
the term Guarantee shall not include endorsements for the collection or deposit in the ordinary
course of business. The amount of any Guarantee shall be deemed to be an amount equal to the
stated or determinable amount of the related primary obligation, or portion thereof, in respect of
which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated
liability in respect thereof as determined by the guaranteeing Person in good faith. The term
“Guarantee” as a verb has a corresponding meaning.

     “Guarantors” means, collectively, Michaels Procurement and each other Subsidiary that
executes a Guaranty pursuant to Section 6.12.

     “Guaranty” means collectively or individually as the context may require, each
Guaranty, dated as of the Closing Date, made by the Guarantors in favor of the Administrative Agent
and the Lenders and each other Guaranty at any time delivered by a Subsidiary, each substantially
in the form of Exhibit G.

     “Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law.

     “Indebtedness” means, as to any Person at a particular time, without duplication, all
of the following:

     (a) all obligations of such Person for borrowed money and all obligations of such Person
evidenced by bonds, debentures, notes or other similar instruments;

11

 

     (b) net obligations of such Person under any Swap Contract;

     (c) all obligations of such Person to pay the deferred purchase price of property or services
(other than trade account payables in the ordinary course of business);

     (d) indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or
being purchased by such Person (including indebtedness arising under conditional sales or other
title retention agreements), whether or not such indebtedness shall have been assumed by such
Person or is limited in recourse;

     (e) Capitalized Leases and Synthetic Lease Obligations; and

     (f) all Guarantees of such Person in respect of any of the foregoing.

The amount of any net obligation under any Swap Contract on any date shall be deemed to be the Swap
Termination Value thereof as of such date. The amount of any Capitalized Lease or Synthetic Lease
Obligation as of any date shall be deemed to be the amount of Attributable Indebtedness in respect
thereof as of such date. Indebtedness of a Person shall not include endorsements of checks, bills
of exchange and other instruments for deposit or collection in the ordinary course of business.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Indemnitees” has the meaning specified in Section 10.04(b).

     “Information” has the meaning specified in Section 10.07.

     “Interest Payment Date” means, (a) as to any Loan other than a Base Rate Loan, the
last day of each Interest Period applicable to such Loan and the Maturity Date; provided,
however, that if any Interest Period for a Eurocurrency Rate Loan exceeds three months, the
respective dates that fall every three months after the beginning of such Interest Period shall
also be Interest Payment Dates; and (b) as to any Base Rate Loan (including a Swing Line Loan), the
last Business Day of each April, July, October and January and the Maturity Date.

     “Interest Period” means, as to each Eurocurrency Rate Loan, the period
commencing on the date such Eurocurrency Rate Loan is disbursed or (in the case of any Eurocurrency
Rate Committed Loan) converted to or continued as a Eurocurrency Rate Loan and ending on the date
one, two, three or six months thereafter, as selected by the Borrower in its Committed Loan Notice
or Bid Request, as the case may be; and (b) as to each Absolute Rate Loan, a period of not less
than 14 days and not more than 180 days as selected by the Borrower in its Bid Request;
provided that:

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

     (b) any Interest Period pertaining to a Eurocurrency 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
calendar month at the end of such Interest Period; and

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

12

 

     “IRS” means the United States Internal Revenue Service.

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

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

     “Joint Arrangers” means Banc of America Securities LLC and J.P. Morgan Securities,
Inc., in their capacities as lead arrangers and book managers.

     “Laws” means, collectively, all international, foreign, Federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or
judicial precedents or authorities, including the interpretation or administration thereof by any
Governmental Authority charged with the enforcement, interpretation or administration thereof, and
all applicable administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Authority, in each case whether or not having the
force of law.

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

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

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

     “L/C Issuer” means Bank of America in its capacity as issuer of Letters of Credit
hereunder, or any successor issuer of Letters of Credit hereunder.

     “L/C Obligations” means, as at any date of determination, the aggregate amount
available to be drawn under all outstanding Letters of Credit plus the aggregate of all
Unreimbursed Amounts, including all L/C Borrowings. For purposes of computing the amount available
to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in
accordance with Section 1.06. For all purposes of this Agreement, if on any date of
determination a Letter of Credit has expired by its terms but any amount may still be drawn
thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be
deemed to be “outstanding” in the amount so remaining available to be drawn.

     “Lender” has the meaning specified in the introductory paragraph hereto and, as the
context requires, includes the Swing Line Lender.

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

13

 

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

     “Letter of Credit Application” means an application and agreement for the issuance or
amendment of a Letter of Credit substantially in the form from time to time in use by the L/C
Issuer.

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

     “Letter of Credit Fee” has the meaning specified in Section 2.04(i).

     “Letter of Credit Sublimit” means an amount equal to $250,000,000. The Letter of
Credit Sublimit is part of, and not in addition to, the Aggregate Commitments.

     “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge, or preference, priority or other security interest
or preferential arrangement in the nature of a security interest of any kind or nature whatsoever
(including any conditional sale or other title retention agreement, any easement, right of way or
other encumbrance on title to real property, and any financing lease having substantially the same
economic effect as any of the foregoing).

     “Loan” means an extension of credit by a Lender to the Borrower under Article
II in the form of a Committed Loan, a Bid Loan or a Swing Line Loan.

     “Loan Documents” means this Agreement, each Note, each Issuer Document, each Fee
Letter, and the Guaranty.

     “Loan Parties” means, collectively, the Borrower and each Guarantor.

     “Mandatory Cost” means, with respect to any period, the percentage rate per annum
determined in accordance with Schedule 1.01.

     “Material Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the operations, business, properties, liabilities (actual or contingent) or
financial condition of the Borrower or the Borrower and its Subsidiaries taken as a whole; (b) a
material adverse effect on the ability of any Loan Party to perform any of its material obligations
under any Loan Document to which it is a party; or (c) a material adverse effect upon the legality,
validity, binding effect or enforceability against any Loan Party of any Loan Document to which it
is a party.

     “Maturity Date” means November 18, 2010.

     “Michaels Procurement” means Michaels Stores Procurement Company, Inc., a Delaware
corporation and a wholly-owned subsidiary of the Borrower.

     “Multiemployer Plan” means any employee benefit plan of the type described in Section
4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to make
contributions, or during the preceding five plan years, has made or been obligated to make
contributions.

14

 

     “Note” means a promissory note made by the Borrower in favor of a Lender evidencing
Loans made by such Lender, substantially in the form of Exhibit D.

     “Obligations” means all advances to, and debts, liabilities, obligations, covenants
and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan
or Letter of Credit, whether direct or indirect (including those acquired by assumption), absolute
or contingent, due or to become due, now existing or hereafter arising and including interest and
fees that accrue after the commencement by or against any Loan Party or any Affiliate thereof of
any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding,
regardless of whether such interest and fees are allowed claims in such proceeding.

     “Obligor Assets” means all assets of the Obligor Group determined in accordance with
GAAP minus, the amount of such assets relating to the capital stock of Subsidiaries of the
Obligor Group which are not members of the Obligor Group.

     “Obligor Group” means, collectively, the Borrower and the Guarantors (including any
Subsidiary of the Borrower which as of any date of determination has become a Guarantor pursuant to
the provisions of this Agreement).

     “Obligor Group Threshold Percentage” means 85% of Consolidated Total Assets.

     “Organization Documents” means, (a) with respect to any corporation, the certificate
or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents
with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the
certificate or articles of formation or organization and operating agreement; and (c) with respect
to any partnership, joint venture, trust or other form of business entity, the partnership, joint
venture or other applicable agreement of formation or organization and any agreement, instrument,
filing or notice with respect thereto filed in connection with its formation or organization with
the applicable Governmental Authority in the jurisdiction of its formation or organization and, if
applicable, any certificate or articles of formation or organization of such entity.

     “Other Taxes” means all present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies (but excluding any tax, charge or levy that
constitutes an Excluded Tax) arising from any payment made hereunder or under any other Loan
Document or from the execution, delivery or enforcement of, or otherwise with respect to, this
Agreement or any other Loan Document, other than those resulting from a transfer by a Lender of all
or a portion of its interest in this Agreement, the Notes or any other Loan Documents.

     “Outstanding Amount” means (i) with respect to Committed Loans on any date, the Dollar
Equivalent amount of the aggregate outstanding principal amount thereof after giving effect to any
borrowings and prepayments or repayments of such Committed Loans occurring on such date; (ii) with
respect to Swing Line Loans on any date, the aggregate outstanding principal amount thereof after
giving effect to any borrowings and prepayments or repayments of such Swing Line Loans occurring on
such date; and (iii) with respect to any L/C Obligations on any date, the Dollar Equivalent amount
of the aggregate outstanding amount of such L/C Obligations on such date after giving effect to any
L/C Credit Extension occurring on such date and any other changes in the aggregate amount of the
L/C Obligations as of such date, including as a result of any reimbursements by the Borrower of
Unreimbursed Amounts.

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

15

 

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

     “Participant” has the meaning specified in Section 10.06(d).

     “Participating Member State” means each state so described in any EMU Legislation.

     “PBGC” means the Pension Benefit Guaranty Corporation.

     “Pension Plan” means any “employee pension benefit plan” (as such term is defined in
Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and
is sponsored or maintained by the Borrower or any ERISA Affiliate or to which the Borrower or any
ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple
employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time
during the immediately preceding five plan years.

     “Permitted Holders” means Sam Wyly, Charles J. Wyly, Jr., any of their immediate
family members (as defined in Regulation S-K under the Securities Laws), any of their lineal
descendants, trusts established by or for the benefit of any such Persons, entities controlled by
any such trusts, and their respective Affiliates.

     “Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

     “Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of
ERISA) established by the Borrower or, with respect to any such plan that is subject to Section 412
of the Code or Title IV of ERISA, any ERISA Affiliate.

     “Platform” has the meaning specified in Section 6.02.

     “Public Lender” has the meaning specified in Section 6.02.

     “Register” has the meaning specified in Section 10.06(c).

     “Registered Public Accounting Firm” has the meaning specified in the Securities Laws
and shall be independent of the Borrower as prescribed by the Securities Laws.

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

     “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA,
other than events for which the 30 day notice period has been waived.

     “Request for Credit Extension” means (a) with respect to a Borrowing, conversion or
continuation of Committed Loans, a Committed Loan Notice, (b) with respect to a Bid Loan, a Bid
Request, (c) with respect to an L/C Credit Extension, a Letter of Credit Application, and (d) with
respect to a Swing Line Loan, a Swing Line Loan Notice.

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     “Required Lenders” means, as of any date of determination, Lenders having more than
50% of the Aggregate Commitments or, if the commitment of each Lender to make Loans and the
obligation of the L/C Issuer to make L/C Credit Extensions have been terminated pursuant to
Section 8.02, Lenders holding in the aggregate more than 50% of the Total Outstandings
(with the aggregate amount of each Lender’s risk participation and funded participation in L/C
Obligations and Swing Line Loans being deemed “held” by such Lender for purposes of this
definition); provided that the Commitment of, and the portion of the Total Outstandings
held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a
determination of Required Lenders

     “Responsible Officer” means the chief executive officer, chief financial officer or
vice president-treasurer of a Loan Party. Any document delivered hereunder that is signed by a
Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all
necessary corporate, partnership and/or other action on the part of such Loan Party and such
Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party.

     “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any capital stock or other Equity Interest of the
Borrower or any Subsidiary, or any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such capital stock or other Equity Interest, or on
account of any return of capital to the Borrower’s stockholders, partners or members (or the
equivalent Person thereof).

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

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

     “Sarbanes-Oxley” means the Sarbanes-Oxley Act of 2002.

     “SEC” means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

     “Securities Laws” means the Securities Act of 1933, the Securities Exchange Act of
1934, Sarbanes-Oxley and the applicable accounting and auditing principles, rules, standards and
practices promulgated, approved or incorporated by the SEC or the Public Company Accounting
Oversight Board, as each of the foregoing may be amended and in effect on any applicable date
hereunder.

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     “Special Notice Currency” means at any time an Alternative Currency, other than the
currency of a country that is a member of the Organization for Economic Cooperation and Development
at such time located in North America or Europe.

     “Spot Rate” for a currency means the rate determined by the Administrative Agent or
the L/C Issuer, as applicable, to be the rate quoted by the Person acting in such capacity as the
spot rate for the purchase by such Person of such currency with another currency through its
principal foreign exchange trading office at approximately 10:00 a.m. on the date two Business Days
prior to the date as of which the foreign exchange computation is made; provided that the
Administrative Agent or the L/C Issuer may obtain such spot rate from another financial institution
designated by the Administrative Agent or the L/C Issuer if the Person acting in such capacity does
not have as of the date of determination a spot buying rate for any such currency; and
provided further that the L/C Issuer may use such spot rate quoted on the date as
of which the foreign exchange computation is made in the case of any Letter of Credit denominated
in an Alternative Currency.

     “Sterling” and “£” mean the lawful currency of the United Kingdom.

     “Subsidiary” of a Person means a corporation, partnership, joint venture, limited
liability company or other business entity of which a majority of the shares of securities or other
interests having ordinary voting power for the election of directors or other governing body (other
than securities or interests having such power only by reason of the happening of a contingency)
are at the time beneficially owned, or the management of which is otherwise controlled, directly,
or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise
specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary
or Subsidiaries of the Borrower.

     “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, commodity swaps, equity or equity index swaps, currency swap transactions,
cross-currency rate swap transactions, or any other substantially similar transactions or any
combination of any of the foregoing (including any options to enter into any of the foregoing),
whether or not any such transaction is governed by or subject to any master agreement, and (b) any
and all transactions of any kind, and the related confirmations, which are subject to the terms and
conditions of, or governed by, any form of master agreement published by the International Swaps
and Derivatives Association, Inc. or any International Foreign Exchange Master Agreement (any such
master agreement, together with any related schedules, a “Master Agreement”), including any
such obligations or liabilities under any Master Agreement.

     “Swap Termination Value” means, in respect of any one or more Swap Contracts, after
taking into account the effect of any legally enforceable netting agreement relating to such Swap
Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and
termination value(s) determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market
value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily
available quotations provided by any recognized dealer in such Swap Contracts (which may include a
Lender or any Affiliate of a Lender).

     “Swing Line” means the revolving credit facility made available by the Swing Line
Lender pursuant to Section 2.05.

     “Swing Line Borrowing” means a borrowing of a Swing Line Loan pursuant to Section
2.05.

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     “Swing Line Lender” means Bank of America in its capacity as provider of Swing Line
Loans, or any successor swing line lender hereunder.

     “Swing Line Loan” has the meaning specified in Section 2.05(a). Swing Line
Loans may only be denominated in Dollars.

     “Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to
Section 2.05(b), which, if in writing, shall be substantially in the form of Exhibit
C or any other form reasonably accepted by the Administrative Agent.

     “Swing Line Sublimit” means an amount equal to the lesser of (a) $50,000,000 and (b)
the Aggregate Commitments. The Swing Line Sublimit is part of, and not in addition to, the
Aggregate Commitments.

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

     “TARGET Day” means any day on which the Trans-European Automated Real-time Gross
Settlement Express Transfer (TARGET) payment system (or, if such payment system ceases to be
operative, such other payment system (if any) determined by the Administrative Agent to be a
suitable replacement) is open for the settlement of payments in Euro.

     “Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental Authority, including
any interest, additions to tax or penalties applicable thereto.

     “Threshold Amount” means $15,000,000.

     “Total Outstandings” means the aggregate Outstanding Amount of all Loans and all L/C
Obligations.

     “Type” means (a) with respect to a Committed Loan, its character as a Base Rate Loan
or a Eurocurrency Rate Loan, and (b) with respect to a Bid Loan, its character as an Absolute Rate
Loan or a Eurocurrency Margin Bid Loan.

     “Unfunded Pension Liability” means the excess of a Pension Plan’s benefit liabilities
under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets.

     “United States” and “U.S.” mean the United States of America.

     “Unreimbursed Amount” has the meaning specified in Section 2.04(c)(i).

     “Yen” and “¥” mean the lawful currency of Japan.

     1.02. Other Interpretive Provisions. With reference to this Agreement and each other Loan
Document, unless otherwise specified herein or in such other Loan Document:

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     (a) The definitions of terms herein shall apply equally to the singular and plural forms of
the terms defined. Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include,” “includes” and
“including” shall be deemed to be followed by the phrase “without limitation.” The word
“will” shall be construed to have the same meaning and effect as the word “shall.”
Unless the context requires otherwise, (i) any definition of or reference to any agreement,
instrument or other document (including any Organization Document) shall be construed as referring
to such agreement, instrument or other document as from time to time amended, supplemented or
otherwise modified (subject to any restrictions on such amendments, supplements or modifications
set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be
construed to include such Person’s successors and assigns, (iii) the words “herein,”
“hereof” and “hereunder,” and words of similar import when used in any Loan
Document, shall be construed to refer to such Loan Document in its entirety and not to any
particular provision thereof, (iv) all references in a Loan Document to Articles, Sections,
Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and
Schedules to, the Loan Document in which such references appear, (v) any reference to any law shall
include all statutory and regulatory provisions consolidating, amending, replacing or interpreting
such law and any reference to any law or regulation shall, unless otherwise specified, refer to
such law or regulation as amended, modified or supplemented from time to time, and (vi) the words
“asset” and “property” shall be construed to have the same meaning and effect and
to refer to any and all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

     (b) In the computation of periods of time from a specified date to a later specified date, the
word “from” means “from and including;” the words “to” and “until”
each mean “to but excluding;” and the word “through” means “to and
including.”

     (c) Section headings herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any other Loan
Document.

     1.03. Accounting Terms. (a) Generally. All accounting terms not specifically or
completely defined herein shall be construed in conformity with, and all financial data (including
financial ratios and other financial calculations) required to be submitted pursuant to this
Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect
from time to time, applied in a manner consistent with that used in preparing the Audited Financial
Statements, except as otherwise specifically permitted herein; provided,
however, that the Borrower shall be permitted to change its method of accounting to the
lower of cost or market with cost being determined by the weighted average cost method (including
any changes in valuation or reporting as a result thereby).

     (b) Changes in GAAP. If at any time any change in GAAP would affect the computation
of any financial ratio or requirement set forth in any Loan Document, and either the Borrower or
the Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrower shall
negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof
in light of such change in GAAP (subject to the approval of the Required Lenders and the Borrower);
provided that, until so amended, (i) such ratio or requirement shall continue to be
computed in accordance with GAAP prior to such change therein and (ii) the Borrower shall provide
to the Administrative Agent and the Lenders financial statements and other documents required under
this Agreement or as reasonably requested hereunder setting forth a reconciliation between
calculations of such ratio or requirement made before and after giving effect to such change in
GAAP.

     (c) Consolidation of Variable Interest Entities. All references herein to
consolidated financial statements of the Borrower and its Subsidiaries or to the determination of
any amount for the Borrower and its Subsidiaries on a consolidated basis or any similar reference
shall, in each case, be

20

 

deemed to include each variable interest entity that the Borrower is required to consolidate
pursuant to FASB Interpretation No. 46 – Consolidation of Variable Interest Entities: an
interpretation of ARB No. 51 (January 2003) as if such variable interest entity were a Subsidiary
as defined herein.

     1.04. Rounding. Any financial ratios required to be maintained by the Borrower pursuant to
this Agreement shall be calculated by dividing the appropriate component by the other component,
carrying the result to one place more than the number of places by which such ratio is expressed
herein and rounding the result up or down to the nearest number (with a rounding-up if there is no
nearest number).

     1.05. Times of Day. Unless otherwise specified, all references herein to times of day shall
be references to Central time (daylight or standard, as applicable).

     1.06. Letter of Credit Amounts. Unless otherwise specified herein, the amount of a Letter of
Credit at any time shall be deemed to be the Dollar Equivalent of the stated amount of such Letter
of Credit in effect at such time; provided, however, that with respect to any Letter of Credit
that, by its terms or the terms of any Issuer Document related thereto, provides for one or more
automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be
deemed to be the Dollar Equivalent of the maximum stated amount of such Letter of Credit after
giving effect to all such increases, whether or not such maximum stated amount is in effect at such
time

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

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

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

     (b) Any such request shall be made to the Administrative Agent not later than 10:00 a.m., 20
Business Days prior to the date of the desired Credit Extension (or such other time or date as may
be agreed by the Administrative Agent and, in the case of any such request pertaining to Letters of
Credit,

21

 

the L/C Issuer, in its or their reasonable discretion). In the case of any such request
pertaining to Eurocurrency Rate Committed Loans, the Administrative Agent shall promptly notify
each Lender thereof; and in the case of any such request pertaining to Letters of Credit, the
Administrative Agent shall promptly notify the L/C Issuer thereof. Each Lender (in the case of any
such request pertaining to Eurocurrency Rate Committed Loans) or the L/C Issuer (in the case of a
request pertaining to Letters of Credit) shall notify the Administrative Agent, not later than
10:00 a.m., ten Business Days after receipt of such request whether it consents, in its reasonable
discretion, to the making of Eurocurrency Rate Committed Loans or the issuance of Letters of
Credit, as the case may be, in such requested currency.

     (c) Any failure by a Lender or the L/C Issuer, as the case may be, to respond to such request
within the time period specified in the preceding sentence shall be deemed to be a refusal by such
Lender or the L/C Issuer, as the case may be, to permit Eurocurrency Rate Committed Loans to be
made or Letters of Credit to be issued in such requested currency. If the Administrative Agent and
all the Lenders consent to making Eurocurrency Rate Committed Loans in such requested currency, the
Administrative Agent shall so notify the Borrower and such currency shall thereupon be deemed for
all purposes to be an Alternative Currency hereunder for purposes of any Committed Borrowings of
Eurocurrency Rate Committed Loans; and if the Administrative Agent and the L/C Issuer consent to
the issuance of Letters of Credit in such requested currency, the Administrative Agent shall so
notify the Borrower and such currency shall thereupon be deemed for all purposes to be an
Alternative Currency hereunder for purposes of any Letter of Credit issuances. If the
Administrative Agent shall fail to obtain consent to any request for an additional currency under
this Section 1.08, the Administrative Agent shall promptly so notify the Borrower.

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

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

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

ARTICLE II.

THE COMMITMENTS AND CREDIT EXTENSIONS

     2.01. Committed Loans. Subject to the terms and conditions set forth herein, each Lender
severally agrees to make loans (each such loan, a “Committed Loan”) to the Borrower in
Dollars or in one or more Alternative Currencies from time to time, on any Business Day during the
Availability Period, in

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an aggregate amount not to exceed at any time outstanding the amount of such Lender’s
Commitment; provided, however, that after giving effect to any Committed Borrowing,
(i) the Total Outstandings shall not exceed the Aggregate Commitments, (ii) the aggregate
Outstanding Amount of the Committed Loans of any Lender, plus such Lender’s Applicable
Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable
Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s
Commitment, and (iii) the aggregate Outstanding Amount of all Committed Loans denominated in
Alternative Currencies plus the aggregate Outstanding Amount of all L/C Obligations in
respect of Letters of Credit issued in Alternative Currencies shall not exceed the Alternative
Currency Sublimit. Within the limits of each Lender’s Commitment, and subject to the other terms
and conditions hereof, the Borrower may borrow under this Section 2.01, prepay under
Section 2.06, and reborrow under this Section 2.01. Committed Loans may be Base
Rate Loans or Eurocurrency Rate Loans, as further provided herein.

     2.02. Borrowings, Conversions and Continuations of Committed Loans.

     (a) Each Committed Borrowing, each conversion of Committed Loans from one Type to the other,
and each continuation of Eurocurrency Rate Committed Loans shall be made upon the Borrower’s
irrevocable notice to the Administrative Agent, which may be given by telephone. Each such notice
must be received by the Administrative Agent not later than 11:00 a.m. (i) three Business Days
prior to the requested date of any Borrowing of, conversion to or continuation of Eurocurrency Rate
Committed Loans denominated in Dollars or of any conversion of Eurocurrency Rate Committed Loans
denominated in Dollars to Base Rate Committed Loans, (ii) four Business Days (or five Business Days
in the case of a Special Notice Currency) prior to the requested date of any Borrowing or
continuation of Eurocurrency Rate Committed Loans denominated in Alternative Currencies, and (iii)
on the requested date of any Borrowing of Base Rate Committed Loans. Each telephonic notice by the
Borrower pursuant to this Section 2.02(a) must be confirmed promptly by delivery to the
Administrative Agent of a written Committed Loan Notice, appropriately completed and signed by a
Responsible Officer of the Borrower. Each Borrowing of, conversion to or continuation of
Eurocurrency Rate Committed Loans shall be in a principal amount of $1,000,000 or a whole multiple
of $100,000 in excess thereof. Except as provided in Sections 2.04(c) and 2.05(c), each
Borrowing of or conversion to Base Rate Committed Loans shall be in a principal amount of $500,000
or a whole multiple of $100,000 in excess thereof. Each Committed Loan Notice (whether telephonic
or written) shall specify (i) whether the Borrower is requesting a Committed Borrowing, a
conversion of Committed Loans from one Type to the other, or a continuation of Eurocurrency Rate
Committed Loans, (ii) the requested date of the Borrowing, conversion or continuation, as the case
may be (which shall be a Business Day), (iii) the principal amount of Committed Loans to be
borrowed, converted or continued, (iv) the Type of Committed Loans to be borrowed or to which
existing Committed Loans are to be converted, (v) if applicable, the duration of the Interest
Period with respect thereto and (vi) the currency of the Committed Loans to be borrowed. If the
Borrower fails to specify a currency in a Committed Loan Notice requesting a Borrowing, then the
Committed Loans so requested shall be made in Dollars. If the Borrower fails to specify a Type of
Committed Loan in a Committed Loan Notice or if the Borrower fails to give a timely notice
requesting a conversion or continuation, then the applicable Committed Loans shall be made as, or
converted to, Base Rate Loans; provided, however, that in the case of a failure to
timely request a continuation of Committed Loans denominated in an Alternative Currency, such Loans
shall be continued as Eurocurrency Rate Committed Loans in their original currency with an Interest
Period of one month. Any automatic conversion to Base Rate Loans shall be effective as
of the last day of the Interest Period then in effect with respect to the applicable Eurocurrency
Rate Committed Loans. If the Borrower requests a Borrowing of, conversion to, or continuation of
Eurocurrency Rate Committed Loans in any such Committed Loan Notice, but fails to specify an
Interest Period, it will be deemed to have specified an Interest Period of one month. No Committed
Loan may be converted into or continued as a Committed Loan denominated in a different

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currency, but instead must be repaid in the original currency of such Committed Loan and
reborrowed in the other currency.

     (b) Following receipt of a Committed Loan Notice, the Administrative Agent shall promptly
notify each Lender of the amount (and currency) of its Applicable Percentage of the applicable
Committed Loans, and if no timely notice of a conversion or continuation is provided by the
Borrower, the Administrative Agent shall notify each Lender of the details of any automatic
conversion to Base Rate Loans or continuation of Committed Loans denominated in a currency other
than Dollars, in each case, described in the preceding subsection. In the case of a Committed
Borrowing, each Lender shall make the amount of its Committed Loan available to the Administrative
Agent in Same Day Funds at the Administrative Agent’s Office for the applicable currency not later
than 1:00 p.m., in the case of any Committed Loan denominated in Dollars, and not later than the
Applicable Time specified by the Administrative Agent in the case of any Committed Loan in an
Alternative Currency, in each case on the Business Day specified in the applicable
Committed Loan Notice. Upon satisfaction of the applicable conditions set forth in Section
4.02 (and, if such Borrowing is the initial Credit Extension, Section 4.01), the
Administrative Agent shall make all funds so received available to the Borrower in like funds as
received by the Administrative Agent either by (i) crediting the account of the Borrower on the
books of Bank of America with the amount of such funds or (ii) wire transfer of such funds, in each
case in accordance with instructions provided to (and reasonably acceptable to) the Administrative
Agent by the Borrower; provided, however, that if, on the date the Committed Loan
Notice with respect to such Borrowing denominated in Dollars is given by the Borrower, there are
L/C Borrowings outstanding, then the proceeds of such Borrowing, first, shall be applied to
the payment in full of any such L/C Borrowings, and second, shall be made available to the
Borrower as provided above.

     (c) Except as otherwise provided herein, a Eurocurrency Rate Committed Loan may be continued
or converted only on the last day of an Interest Period for such Eurocurrency Rate Committed Loan.
During the existence of a Default, no Loans may be requested as, converted to or continued as
Eurocurrency Rate Committed Loans (whether in Dollars or any Alternative Currency) without the
consent of the Required Lenders, and the Required Lenders may demand that any or all of the then
outstanding Eurocurrency Rate Loans denominated in an Alternative Currency be repaid, or
redenominated into Dollars in the amount of the Dollar Equivalent thereof, on the last day of the
then current Interest Period with respect thereto.

     (d) The Administrative Agent shall promptly notify the Borrower and the Lenders of the
interest rate applicable to any Interest Period for Eurocurrency Rate Committed Loans upon
determination of such interest rate. At any time that Base Rate Loans are outstanding, the
Administrative Agent shall notify the Borrower and the Lenders of any change in Bank of America’s
prime rate used in determining the Base Rate promptly following the public announcement of such
change.

     (e) After giving effect to all Committed Borrowings, all conversions of Committed Loans from
one Type to the other, and all continuations of Committed Loans as the same Type, there shall not
be more than ten Interest Periods in effect with respect to Committed Loans.

     2.03. Bid Loans.

     (a) General. Subject to the terms and conditions set forth herein, each Lender agrees
that the Borrower may from time to time request the Lenders to submit offers to make loans in
Dollars (each such loan, a “Bid Loan”) to the Borrower prior to the Maturity Date pursuant
to this Section 2.03; provided, however, that after giving effect to any
Bid Borrowing, (i) the Total Outstandings shall not exceed the Aggregate Commitments, and (ii) the
aggregate Outstanding Amount of all Bid Loans shall not exceed

24

 

the Bid Loan Sublimit. There shall not be more than five different Interest Periods in effect
with respect to Bid Loans at any time.

     (b) Requesting Competitive Bids. The Borrower may request the submission of
Competitive Bids by delivering a Bid Request to the Administrative Agent not later than 12 Noon (i)
one Business Day prior to the requested date of any Bid Borrowing that is to consist of Absolute
Rate Loans, or (ii) four Business Days prior to the requested date of any Bid Borrowing that is to
consist of Eurocurrency Margin Bid Loans. Each Bid Request shall specify (i) the requested date of
the Bid Borrowing (which shall be a Business Day), (ii) the aggregate principal amount of Bid Loans
requested (which must be $5,000,000 or a whole multiple of $1,000,000 in excess thereof), (iii) the
Type of Bid Loans requested, and (iv) the duration of the Interest Period with respect thereto, and
shall be signed by a Responsible Officer of the Borrower. No Bid Request shall contain a request
for (i) more than one Type of Bid Loan or (ii) Bid Loans having more than three different Interest
Periods. Unless the Administrative Agent otherwise agrees in its sole and absolute discretion, the
Borrower may not submit a Bid Request if it has submitted another Bid Request within the prior
three Business Days.

     (c) Submitting Competitive Bids.

     (i) The Administrative Agent shall promptly notify each Lender of each Bid Request
received by it from the Borrower and the contents of such Bid Request.

     (ii) Each Lender may (but shall have no obligation to) submit a Competitive Bid
containing an offer to make one or more Bid Loans in response to such Bid Request. Such
Competitive Bid must be delivered to the Administrative Agent not later than 9:30 a.m. (A)
on the requested date of any Bid Borrowing that is to consist of Absolute Rate Loans, and
(B) three Business Days prior to the requested date of any Bid Borrowing that is to consist
of Eurocurrency Margin Bid Loans; provided, however, that any Competitive
Bid submitted by Bank of America in its capacity as a Lender in response to any Bid Request
must be submitted to the Administrative Agent not later than 9:15 a.m. on the date on which
Competitive Bids are required to be delivered by the other Lenders in response to such Bid
Request. Each Competitive Bid shall specify (A) the proposed date of the Bid Borrowing; (B)
the principal amount of each Bid Loan for which such Competitive Bid is being made, which
principal amount (x) may be equal to, greater than or less than the Commitment of the
bidding Lender, (y) must be $5,000,000 or a whole multiple of $1,000,000 in excess thereof,
and (z) may not exceed the principal amount of Bid Loans for which Competitive Bids were
requested; (C) if the proposed Bid Borrowing is to consist of Absolute Rate Bid Loans, the
Absolute Rate offered for each such Bid Loan and the Interest Period applicable thereto; (D)
if the proposed Bid Borrowing is to consist of Eurocurrency Margin Bid Loans, the
Eurocurrency Bid Margin with respect to each such Eurocurrency Margin Bid Loan and the
Interest Period applicable thereto; and (E) the identity of the bidding Lender.

     (iii) Any Competitive Bid shall be disregarded if it (A) is received after the
applicable time specified in clause (ii) above, (B) is not substantially in the form of a
Competitive Bid as specified herein, (C) contains qualifying, conditional or similar
language, (D) proposes terms other than or in addition to those set forth in the applicable
Bid Request, or (E) is otherwise not responsive to such Bid Request. Any Lender may correct
a Competitive Bid containing a manifest error by submitting a corrected Competitive Bid
(identified as such) not later than the applicable time required for submission of
Competitive Bids. Any such submission of a corrected Competitive Bid shall constitute a
revocation of the Competitive Bid that contained the manifest error. The Administrative
Agent may, but shall not be required to, notify any Lender of any manifest error it detects
in such Lender’s Competitive Bid.

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     (iv) Subject only to the provisions of Sections 3.02, 3.03 and
4.02 and clause (iii) above, each Competitive Bid shall be irrevocable.

     (d) Notice to Borrower of Competitive Bids. Not later than 11:00 a.m. (i) on the
requested date of any Bid Borrowing that is to consist of Absolute Rate Loans, or (ii) three
Business Days prior to the requested date of any Bid Borrowing that is to consist of Eurocurrency
Margin Bid Loans, the Administrative Agent shall notify the Borrower of the identity of each Lender
that has submitted a Competitive Bid that complies with Section 2.03(c) and of the terms of
the offers contained in each such Competitive Bid.

     (e) Acceptance of Competitive Bids. Not later than 11:00 a.m. (i) on the requested
date of any Bid Borrowing that is to consist of Absolute Rate Loans, and (ii) three Business Days
prior to the requested date of any Bid Borrowing that is to consist of Eurocurrency Margin Bid
Loans, the Borrower shall notify the Administrative Agent of its acceptance or rejection of the
offers notified to it pursuant to Section 2.03(d). The Borrower shall be under no
obligation to accept any Competitive Bid and may choose to reject all Competitive Bids. In the
case of acceptance, such notice shall specify the aggregate principal amount of Competitive Bids
for each Interest Period that is accepted. The Borrower may accept any Competitive Bid in whole or
in part; provided that:

     (i) the aggregate principal amount of each Bid Borrowing may not exceed the applicable
amount set forth in the related Bid Request;

     (ii) the principal amount of each Bid Loan must be $5,000,000 or a whole multiple of
$1,000,000 in excess thereof;

     (iii) the acceptance of offers may be made only on the basis of ascending Absolute
Rates or Eurocurrency Bid Margins within each Interest Period; and

     (iv) the Borrower may not accept any offer that is described in Section
2.03(c)(iii) or that otherwise fails to comply with the requirements hereof.

     (f) Procedure for Identical Bids. If two or more Lenders have submitted Competitive
Bids at the same Absolute Rate or Eurocurrency Bid Margin, as the case may be, for the same
Interest Period, and the result of accepting all of such Competitive Bids in whole (together with
any other Competitive Bids at lower Absolute Rates or Eurocurrency Bid Margins, as the case may be,
accepted for such Interest Period in conformity with the requirements of Section
2.03(e)(iii)) would be to cause the aggregate outstanding principal amount of the applicable
Bid Borrowing to exceed the amount specified therefor in the related Bid Request, then, unless
otherwise agreed by the Borrower, the Administrative Agent and such Lenders, such Competitive Bids
shall be accepted as nearly as possible in proportion to the amount offered by each such Lender in
respect of such Interest Period, with such accepted amounts being rounded to the nearest whole
multiple of $1,000,000.

     (g) Notice to Lenders of Acceptance or Rejection of Bids. The Administrative Agent
shall promptly notify each Lender having submitted a Competitive Bid whether or not its offer has
been accepted and, if its offer has been accepted, of the amount of the Bid Loan or Bid Loans to be
made by it on the date of the applicable Bid Borrowing. Any Competitive Bid or portion thereof
that is not accepted by the Borrower by the applicable time specified in Section 2.03(e)
shall be deemed rejected.

     (h) Notice of Eurocurrency Rate. If any Bid Borrowing is to consist of Eurocurrency
Margin Loans, the Administrative Agent shall determine the Eurocurrency Rate for the relevant
Interest Period,

26

 

and promptly after making such determination, shall notify the Borrower and the Lenders that
will be participating in such Bid Borrowing of such Eurocurrency Rate.

     (i) Funding of Bid Loans. Each Lender that has received notice pursuant to
Section 2.03(g) that all or a portion of its Competitive Bid has been accepted by the
Borrower shall make the amount of its Bid Loan(s) available to the Administrative Agent in
immediately available funds at the Administrative Agent’s Office not later than 12 Noon on the date
of the requested Bid Borrowing. Upon satisfaction of the applicable conditions set forth in
Section 4.02, the Administrative Agent shall make all funds so received available to the
Borrower in like funds as received by the Administrative Agent.

     (j) Notice of Range of Bids. After each Competitive Bid auction pursuant to this
Section 2.03, the Administrative Agent shall notify each Lender that submitted a
Competitive Bid in such auction of the ranges of bids submitted (without the bidder’s name) and
accepted for each Bid Loan and the aggregate amount of each Bid Borrowing.

     2.04. Letters of Credit.

     (a) The Letter of Credit Commitment.

     (i) Subject to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in
reliance upon the agreements of the Lenders set forth in this Section 2.04, (1) from
time to time on any Business Day during the period from the Closing Date until the Letter of
Credit Expiration Date, to issue Letters of Credit denominated in Dollars or in one or more
Alternative Currencies for the account of the Borrower or its domestic Subsidiaries, and to
amend or extend Letters of Credit previously issued by it, in accordance with subsection (b)
below, and (2) to honor drawings under the Letters of Credit; and (B) the Lenders severally
agree to participate in Letters of Credit issued for the account of the Borrower or its
domestic Subsidiaries and any drawings thereunder; provided that after giving effect
to any L/C Credit Extension with respect to any Letter of Credit, (w) the Total Outstandings
shall not exceed the Aggregate Commitments, (x) the aggregate Outstanding Amount of the
Committed Loans of any Lender, plus such Lender’s Applicable Percentage of the
Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable Percentage
of the Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s Commitment,
(y) the Outstanding Amount of the L/C Obligations shall not exceed the Letter of Credit
Sublimit and (z) the aggregate Outstanding Amount of all Committed Loans denominated in
Alternative Currencies plus the aggregate Outstanding Amount of all L/C Obligations
in respect of Letters of Credit issued in Alternative Currencies shall not exceed the
Alternative Currency Sublimit. Each request by the Borrower for the issuance or amendment
of a Letter of Credit shall be deemed to be a representation by the Borrower that the L/C
Credit Extension so requested complies with the conditions set forth in the proviso to the
preceding sentence. Within the foregoing limits, and subject to the terms and conditions
hereof, the Borrower’s ability to obtain Letters of Credit shall be fully revolving, and
accordingly the Borrower may, during the foregoing period, obtain Letters of Credit to
replace Letters of Credit that have expired or that have been drawn upon and reimbursed.
All Existing Letters of Credit shall be deemed to have been issued pursuant hereto, and from
and after the Closing Date shall be subject to and governed by the terms and conditions
hereof (including, without limitation, Section 2.04(i)).

     (ii) The L/C Issuer shall not issue any Letter of Credit, if:

27

 

     (A) subject to Section 2.04(b)(iii), the expiry date of such requested Letter
of Credit would occur more than twelve months after the date of issuance or last
extension, unless the Required Lenders have approved such expiry date; or

     (B) the expiry date of such requested Letter of Credit would occur after the
Letter of Credit Expiration Date, unless the Required Lenders have approved such
expiry date; provided that one or more Letters of Credit may contain an
expiration date beyond the Letter of Credit Expiration Date so long as the Borrower
Cash Collateralizes such Letters of Credit pursuant to Section 2.04(g)(ii).

     (iii) The L/C Issuer shall not be under any obligation to issue any Letter of Credit
if:

     (A) any order, judgment or decree of any Governmental Authority or arbitrator
shall by its terms purport to enjoin or restrain the L/C Issuer from issuing such
Letter of Credit, or any Law applicable to the L/C Issuer or any request or
directive (whether or not having the force of law) from any Governmental Authority
with jurisdiction over the L/C Issuer shall prohibit, or request that the L/C Issuer
refrain from, the issuance of letters of credit generally or such Letter of Credit
in particular or shall impose upon the L/C Issuer with respect to such Letter of
Credit any restriction, reserve or capital requirement (for which the L/C Issuer is
not otherwise compensated hereunder) not in effect on the Closing Date, or shall
impose upon the L/C Issuer any unreimbursed loss, cost or expense referred to in
Article III hereof which was not applicable on the Closing Date and which
the L/C Issuer in good faith deems material to it;

     (B) the issuance of such Letter of Credit would violate one or more policies of
general applicability of the L/C Issuer;

     (C) except as otherwise agreed by the Administrative Agent and the L/C Issuer,
such Letter of Credit is in an initial stated amount less than $25,000, in the case
of a commercial Letter of Credit, or $250,000, in the case of a standby Letter of
Credit;

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

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

     (F) a default of any Lender’s obligations to fund under Section 2.04(c)
exists or any Lender is at such time a Defaulting Lender hereunder, unless the L/C
Issuer has entered into satisfactory arrangements with the Borrower or such Lender
to eliminate the L/C Issuer’s risk with respect to such Lender; or

     (G) the L/C Issuer does not as of the issuance date of such requested Letter of
Credit issue Letters of Credit in the requested currency.

     (iv) The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would not be
permitted at such time to issue such Letter of Credit in its amended form under the terms
hereof.

28

 

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

     (vi) The L/C Issuer shall act on behalf of the Lenders with respect to any Letters of
Credit issued by it and the documents associated therewith, and the L/C Issuer shall have
all of the benefits and immunities (A) provided to the Administrative Agent in Article
IX with respect to any acts taken or omissions suffered by the L/C Issuer in connection
with Letters of Credit issued by it or proposed to be issued by it and Issuer Documents
pertaining to such Letters of Credit as fully as if the term “Administrative Agent” as used
in Article IX included the L/C Issuer with respect to such acts or omissions, and
(B) as additionally provided herein with respect to the L/C Issuer.

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

     (i) Each Letter of Credit shall be issued or amended, as the case may be, upon the
request of the Borrower delivered to the L/C Issuer (with a copy to the Administrative
Agent) in the form of a Letter of Credit Application, appropriately completed and signed by
a Responsible Officer of the Borrower. Such Letter of Credit Application must be received
by the L/C Issuer and the Administrative Agent not later than 11:00 a.m. at least two
Business Days prior to the proposed issuance date or date of amendment, as the case may be.
In the case of a request for an initial issuance of a Letter of Credit, such Letter of
Credit Application shall specify in form and detail satisfactory to the L/C Issuer: (A) the
proposed issuance date of the requested Letter of Credit (which shall be a Business Day);
(B) the amount and currency thereof; (C) the expiry date thereof; (D) the name and address
of the beneficiary thereof; (E) the documents to be presented by such beneficiary in case of
any drawing thereunder; (F) the full text of any certificate to be presented by such
beneficiary in case of any drawing thereunder; and (G) such other matters as the L/C Issuer
may reasonably require. In the case of a request for an amendment of any outstanding Letter
of Credit, such Letter of Credit Application shall specify in form and detail reasonably
satisfactory to the L/C Issuer (A) the Letter of Credit to be amended; (B) the proposed date
of amendment thereof (which shall be a Business Day); (C) the nature of the proposed
amendment; and (D) such other matters as the L/C Issuer may reasonably require.
Additionally, the Borrower shall furnish to the L/C Issuer and the Administrative Agent such
other documents and information pertaining to such requested Letter of Credit issuance or
amendment, including any Issuer Documents, as the L/C Issuer or the Administrative Agent may
reasonably require.

     (ii) Promptly after receipt of any Letter of Credit Application, the L/C Issuer will
confirm with the Administrative Agent (by telephone or in writing) that the Administrative
Agent has received a copy of such Letter of Credit Application from the Borrower and, if
not, the L/C Issuer will provide the Administrative Agent with a copy thereof. Unless the
L/C Issuer has received written notice from any Lender, the Administrative Agent or any Loan
Party, at least one Business Day prior to the requested date of issuance or amendment of the
applicable Letter of Credit, that one or more applicable conditions contained in Article
IV shall not then be satisfied, then, subject to the terms and conditions hereof, the
L/C Issuer shall, on the requested date, issue a Letter of Credit for the account of the
Borrower (or the applicable domestic Subsidiary) or enter into the applicable amendment, as
the case may be, in each case in accordance with the L/C Issuer’s usual and customary
business practices. Immediately upon the issuance of each Letter of Credit, each Lender
shall be deemed to, and hereby irrevocably and unconditionally agrees to,

29

 

purchase from the L/C Issuer a risk participation in such Letter of Credit in an amount
equal to the product of such Lender’s Applicable Percentage times the amount of such
Letter of Credit.

     (iii) If the Borrower so requests in any applicable Letter of Credit Application, the
L/C Issuer may, in its reasonable discretion, agree to issue a Letter of Credit that has
automatic extension provisions (each, an “Auto-Extension Letter of Credit”);
provided that any such Auto-Extension Letter of Credit must permit the L/C Issuer to
prevent any such extension at least once in each twelve-month period (commencing with the
date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof
not later than a day (the “Non-Extension Notice Date”) in each such twelve-month
period to be agreed upon at the time such Letter of Credit is issued. Unless otherwise
directed by the L/C Issuer, the Borrower shall not be required to make a specific request to
the L/C Issuer for any such extension. Once an Auto-Extension Letter of Credit has been
issued, the Lenders shall be deemed to have authorized (but may not require) the L/C Issuer
to permit the extension of such Letter of Credit at any time to an expiry date not later
than the Letter of Credit Expiration Date (or a later date if permitted pursuant to clause
(ii)(B) of Section 2.03(a); provided, however, that the L/C Issuer
shall not permit any such extension if (A) the L/C Issuer has determined that it would not
be permitted, or would have no obligation, at such time to issue such Letter of Credit in
its revised form (as extended) under the terms hereof (by reason of the provisions of clause
(ii) or (iii) of Section 2.04(a) or otherwise), or (B) it has received notice (which
may be by telephone or in writing) on or before the day that is five Business Days before
the Non-Extension Notice Date (1) from the Administrative Agent that the Required Lenders
have elected to prevent such extension (but only if such election is consistent with the
terms of the applicable Letter of Credit and the Borrower would not be entitled to the
issuance of such Letter of Credit in its revised form (as extended) under the terms hereof)
or (2) from the Administrative Agent, any Lender or the Borrower that one or more of the
applicable conditions specified in Section 4.02 is not then satisfied, and in each
such case directing the L/C Issuer not to permit such extension.

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

      (c) Drawings and Reimbursements; Funding of Participations.

     (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of a
drawing under such Letter of Credit, the L/C Issuer shall promptly notify the Borrower and
the Administrative Agent thereof in accordance with its customary practices. In the case of
a Letter of Credit denominated in an Alternative Currency, the Borrower shall reimburse the
L/C Issuer in such Alternative Currency, unless (A) the L/C Issuer (at its option) shall
have specified in such notice that it will require reimbursement in Dollars, or (B) in the
absence of any such requirement for reimbursement in Dollars, the Borrower shall have
notified the L/C Issuer promptly following receipt of the notice of drawing that the
Borrower will reimburse the L/C Issuer in Dollars. In the case of any such reimbursement in
Dollars of a drawing under a Letter of Credit denominated in an Alternative Currency, the
L/C Issuer shall notify the Borrower in writing of the Dollar Equivalent of the amount of
the drawing promptly following the determination thereof. Not later than 10:00 a.m. (or in
the event the Borrower has not been notified of such drawing prior to such time, within two
hours of such notice) on the date of any payment by the L/C Issuer under a Letter of Credit
to be reimbursed in Dollars, or the Applicable Time on the date of any payment by the L/C
Issuer under a Letter of Credit to be reimbursed in an Alternative Currency (each such date,
an “Honor Date”), the Borrower shall reimburse the L/C Issuer through the
Administrative

30

 

Agent in an amount equal to the amount of such drawing in the applicable currency. If
the Borrower fails to so reimburse the L/C Issuer by such time, the Administrative Agent
shall promptly notify each Lender of the Honor Date, the amount of the unreimbursed drawing
(expressed in Dollars in the amount of the Dollar Equivalent thereof in the case of a Letter
of Credit denominated in an Alternative Currency) (the “Unreimbursed Amount”), and
the amount of such Lender’s Applicable Percentage thereof. In such event, the Borrower
shall be deemed to have requested a Committed Borrowing of Base Rate Loans to be disbursed
on the Honor Date in an amount equal to the Unreimbursed Amount, without regard to the
minimum and multiples specified in Section 2.02 for the principal amount of Base
Rate Loans, but subject to the amount of the unutilized portion of the Aggregate Commitments
and the conditions set forth in Section 4.02 (other than the delivery of a Committed
Loan Notice). Any notice given by the L/C Issuer or the Administrative Agent pursuant to
this Section 2.04(c)(i) may be given by telephone if immediately confirmed in
writing; provided that the lack of such an immediate confirmation shall not affect
the conclusiveness or binding effect of such notice.

     (ii) Each Lender shall upon any notice pursuant to Section 2.04(c)(i) make
funds available to the Administrative Agent for the account of the L/C Issuer, in Dollars,
at the Administrative Agent’s Office for Dollar-denominated payments in an amount equal to
its Applicable Percentage of the Unreimbursed Amount not later than 12 Noon on the Business
Day specified in such notice by the Administrative Agent, whereupon, subject to the
provisions of Section 2.04(c)(iii), each Lender that so makes funds available shall
be deemed to have made a Base Rate Committed Loan to the Borrower in such amount. The
Administrative Agent shall remit the funds so received to the L/C Issuer in Dollars.

     (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a
Committed Borrowing of Base Rate Loans because the conditions set forth in Section
4.02 cannot be satisfied or for any other reason, the Borrower shall be deemed to have
incurred from the L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that
is not so refinanced, which L/C Borrowing shall be due and payable within three days of
demand (together with interest) and shall bear interest at the Base Rate; provided that the
Administrative Agent shall have the right to convert such L/C Borrowing into a Committed
Loan bearing interest at the Base Rate (without regard to the minimum and multiples
specified in Section 2.02 for the principal amount of Base Rate Loans or the
conditions set forth in Section 4.02). In such event, each Lender’s payment to the
Administrative Agent for the account of the L/C Issuer pursuant to Section
2.04(c)(ii) shall be deemed payment in respect of its participation in such L/C
Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its
participation obligation under this Section 2.04.

     (iv) Until each Lender funds its Committed Loan or L/C Advance pursuant to this
Section 2.04(c) to reimburse the L/C Issuer for any amount drawn under any Letter of
Credit, interest in respect of such Lender’s Applicable Percentage of such amount shall be
solely for the account of the L/C Issuer.

     (v) Each Lender’s obligation to make Committed Loans or L/C Advances to reimburse the
L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section
2.04(c), shall be absolute and unconditional and shall not be affected by any
circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right
which such Lender may have against the L/C Issuer, the Borrower or any other Person for any
reason whatsoever; (B) the occurrence or continuance of a Default, or (C) any other
occurrence, event or condition, whether or not similar to any of the foregoing;
provided, however, that each Lender’s obligation to make Committed Loans
pursuant to this Section 2.04(c) is subject to the conditions

31

 

set forth in Section 4.02 (other than delivery by the Borrower of a Committed
Loan Notice). No such making of an L/C Advance shall relieve or otherwise impair the
obligation of the Borrower to reimburse the L/C Issuer for the amount of any payment made by
the L/C Issuer under any Letter of Credit, together with interest as provided herein.

     (vi) If any Lender fails to make available to the Administrative Agent for the account
of the L/C Issuer any amount required to be paid by such Lender pursuant to the foregoing
provisions of this Section 2.04(c) by the time specified in Section
2.04(c)(ii), the L/C Issuer shall be entitled to recover from such Lender (acting
through the Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment is required to the date on which such payment is
immediately available to the L/C Issuer at a rate per annum equal to the applicable
Overnight Rate from time to time in effect. A certificate of the L/C Issuer submitted to
any Lender (through the Administrative Agent) with respect to any amounts owing under this
clause (vi) shall be conclusive absent manifest error.

(d) Repayment of Participations.

     (i) At any time after the L/C Issuer has made a payment under any Letter of Credit and
has received from any Lender such Lender’s L/C Advance in respect of such payment in
accordance with Section 2.04(c), if the Administrative Agent receives for the
account of the L/C Issuer any payment in respect of the related Unreimbursed Amount or
interest thereon (whether directly from the Borrower or otherwise, including proceeds of
Cash Collateral applied thereto by the Administrative Agent), the Administrative Agent will
distribute to such Lender its Applicable Percentage thereof (appropriately adjusted, in the
case of interest payments, to reflect the period of time during which such Lender’s L/C
Advance was outstanding) in Dollars in the same funds as those received by the
Administrative Agent.

     (ii) If any payment received by the Administrative Agent for the account of the L/C
Issuer pursuant to Section 2.04(c)(i) is required to be returned under any of the
circumstances described in Section 10.05 (including pursuant to any settlement
entered into by the L/C Issuer in its discretion), each Lender shall pay to the
Administrative Agent for the account of the L/C Issuer its Applicable Percentage thereof on
demand of the Administrative Agent, plus interest thereon from the date of such demand to
the date such amount is returned by such Lender, at a rate per annum equal to the applicable
Overnight Rate from time to time in effect. The obligations of the Lenders under this
clause shall survive the payment in full of the Obligations and the termination of this
Agreement.

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

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

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

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

     (iv) any payment by the L/C Issuer under such Letter of Credit against presentation of
a draft or certificate that does not strictly comply with the terms of such Letter of Credit
(as amended); provided that such draft or certificate must materially comply with the terms
of such Letter of Credit (as amended); or any payment made by the L/C Issuer under such
Letter of Credit to any Person purporting to be a trustee in bankruptcy,
debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or other
representative of or successor to any beneficiary or any transferee of such Letter of
Credit, including any arising in connection with any proceeding under any Debtor Relief Law;

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

     (vi) any material adverse change in the relevant exchange rates or in the availability
of the relevant Alternative Currency to the Borrower or any Subsidiary or in the relevant
currency markets generally.

The Borrower shall promptly examine a copy of each Letter of Credit and each amendment
thereto that is delivered to it and, in the event of any claim of noncompliance with the
Borrower’s instructions or other irregularity, the Borrower will promptly notify the L/C
Issuer. The Borrower shall be conclusively deemed to have waived any such claim against the
L/C Issuer and its correspondents unless such notice is given as aforesaid.

     (f) Role of L/C Issuer. Each Lender and the Borrower agree that, in paying any
drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any
document (other than any sight draft, certificates and documents expressly required by the Letter
of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the
authority of the Person executing or delivering any such document. None of the L/C Issuer, the
Administrative Agent, any of their respective Related Parties nor any correspondent, participant or
assignee of the L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in
connection herewith at the request or with the approval of the Lenders or the Required Lenders, as
applicable; (ii) any action taken or omitted in the absence of gross negligence or willful
misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document
or instrument related to any Letter of Credit or Issuer Document. The Borrower hereby assumes all
risks of the acts or omissions of any beneficiary or transferee with respect to its use of any
Letter of Credit; provided, however, that this assumption is not intended to, and
shall not, preclude the Borrower’s pursuing such rights and remedies as it may have against the
beneficiary or transferee at law or under any other agreement. None of the L/C Issuer, the
Administrative Agent, any of their respective Related Parties nor any correspondent, participant or
assignee of the L/C Issuer shall be liable or responsible for any of the matters described in
clauses (i) through (v) of Section 2.04(e); provided, however, that
anything in such clauses to the contrary notwithstanding, the Borrower may have a claim against the
L/C Issuer, and the L/C Issuer may be liable to the Borrower, to the extent, but only to the
extent, of any direct, as opposed to consequential or exemplary, damages suffered by the Borrower
which the Borrower proves were caused by the L/C Issuer’s willful misconduct or gross negligence or
the L/C Issuer’s willful failure to pay under any Letter of Credit after the presentation to it by
the beneficiary of a sight draft and certificate(s) strictly complying with the terms and
conditions of a Letter of Credit. In furtherance and not in limitation of the foregoing, the L/C
Issuer may accept documents that appear on

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their face to be in order, without responsibility for further investigation, regardless of any
notice or information to the contrary, and the L/C Issuer shall not be responsible for the validity
or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a
Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part,
which may prove to be invalid or ineffective for any reason.

     (g) Cash Collateral. Upon the written request of the Administrative Agent (i) (A) if
an Event of Default has occurred and is continuing or (B) if, as of the Letter of Credit Expiration
Date, any L/C Obligation for any reason remains outstanding, the Borrower shall, in each case,
immediately Cash Collateralize the then Outstanding Amount of all L/C Obligations and (ii) if, six
days prior to the Maturity Date, any L/C Obligation remains outstanding with respect to any Letter
of Credit stated to expire beyond the Letter of Credit Expiration Date, the Borrower shall
immediately Cash Collateralize the then Outstanding Amount of all such L/C Obligations. In
addition, if the Administrative Agent notifies the Borrower at any time that the Outstanding Amount
of all L/C Obligations at such time exceeds 105% of the Letter of Credit Sublimit then in effect,
then, within two Business Days after receipt of such notice, the Borrower shall Cash Collateralize
the L/C Obligations in an amount equal to the amount by which the Outstanding Amount of all L/C
Obligations exceeds the Letter of Credit Sublimit. Sections 2.06 and 8.02(c) set
forth certain additional requirements to deliver Cash Collateral hereunder. For purposes of this
Section 2.04, Section 2.06 and Section 8.02(c), “Cash
Collateralize” means to pledge and deposit with or deliver to the Administrative Agent, for the
benefit of the L/C Issuer and the Lenders, as collateral for the L/C Obligations, cash or deposit
account balances pursuant to documentation in form and substance reasonably satisfactory to the
Administrative Agent and the L/C Issuer (which documents are hereby consented to by the Lenders).
Derivatives of such term have corresponding meanings.

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

     (i) Letter of Credit Fees. The Borrower shall pay to the Administrative Agent for the
account of each Lender in accordance with its Applicable Percentage, in Dollars, a Letter of Credit
fee (the “Letter of Credit Fee”) for each Letter of Credit equal to the relevant (i.e.,
for standby Letters of Credit or commercial Letters of Credit) Applicable Rate times the
Dollar Equivalent of the daily amount available to be drawn under such Letter of Credit. For
purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount
of such Letter of Credit shall be determined in accordance with Section 1.06. Letter of
Credit Fees shall be (i) computed on a quarterly basis in arrears and (ii) due and payable on the
first Business Day after the end of each April, July, October and January, commencing with the
first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit
Expiration Date and thereafter on demand. If there is any change in the Applicable Rate during any
fiscal quarter, the daily amount available to be drawn under each Letter of Credit shall be
computed and multiplied by the Applicable Rate separately for each period during such quarter that
such Applicable Rate was in effect.

     (j) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer. The
Borrower shall pay directly to the L/C Issuer for its own account, in Dollars, a fronting fee (i)
with respect

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to each commercial Letter of Credit, at a rate separately agreed between the Borrower and the
L/C Issuer, computed on the Dollar Equivalent of the amount of such Letter of Credit, and payable
upon the issuance thereof, (ii) with respect to any amendment of a commercial Letter of
Credit increasing the amount of such Letter of Credit, at a rate separately agreed between the
Borrower and the L/C Issuer, computed on the Dollar Equivalent of the amount of such increase, and
payable upon the effectiveness of such amendment and (iii) with respect to each standby Letter of
Credit, at a rate separately agreed between the Borrower and the L/C Issuer, computed on the Dollar
Equivalent of the amount of such Letter of Credit, and payable upon the issuance thereof. Such
fronting fees shall be due and payable on the tenth Business Day after the end of each April, July,
October and January in respect of the most recently-ended fiscal quarterly period (or portion
thereof, in the case of the first payment), commencing with the first such date to occur after the
issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on
demand. For purposes of computing the daily amount available to be drawn under any Letter of
Credit, the amount of such Letter of Credit shall be determined in accordance with Section
1.06. In addition, the Borrower shall pay directly to the L/C Issuer for its own account, in
Dollars, the customary issuance, presentation, amendment and other processing fees, and other
standard costs and charges, of the L/C Issuer relating to letters of credit as from time to time in
effect. Such customary fees and standard costs and charges are due and payable on demand and are
nonrefundable.

     (k) Conflict with Issuer Documents. In the event of any conflict between the terms
hereof and the terms of any Issuer Document, the terms hereof shall control.

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

     2.05. Swing Line Loans.

     (a) The Swing Line. Subject to the terms and conditions set forth herein, the Swing
Line Lender agrees, in reliance upon the agreements of the other Lenders set forth in this
Section 2.05, to make loans in Dollars (each such loan, a “Swing Line Loan”) to the
Borrower from time to time on any Business Day during the Availability Period in an aggregate
amount not to exceed at any time outstanding the amount of the Swing Line Sublimit, notwithstanding
the fact that such Swing Line Loans, when aggregated with the Applicable Percentage of the
Outstanding Amount of Committed Loans and L/C Obligations of the Lender acting as Swing Line
Lender, may exceed the amount of such Lender’s Commitment; provided, however, that
after giving effect to any Swing Line Loan, (i) the Total Outstandings shall not exceed the
Aggregate Commitments, and (ii) the aggregate Outstanding Amount of the Committed Loans of any
Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C
Obligations, plus such Lender’s Applicable Percentage of the Outstanding Amount of all
Swing Line Loans shall not exceed such Lender’s Commitment. Within the foregoing limits, and
subject to the other terms and conditions hereof, the Borrower may borrow under this Section
2.05, prepay under Section 2.06, and reborrow under this Section 2.05. Each
Swing Line Loan shall be a Base Rate Loan. Immediately upon the making of a Swing Line Loan, each
Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the
Swing Line Lender a risk participation in such Swing Line Loan in an amount equal to the product of
such Lender’s Applicable Percentage times the amount of such Swing Line Loan.

     (b) Borrowing Procedures. Each Swing Line Borrowing shall be made upon the Borrower’s
irrevocable notice to the Swing Line Lender and the Administrative Agent, which may be given by

35

 

telephone. Each such notice must be received by the Swing Line Lender and the Administrative
Agent not later than 1:00 p.m. on the requested borrowing date, and shall specify (i) the amount to
be borrowed, which shall be a minimum of $5,000,000, and (ii) the requested borrowing date, which
shall be a Business Day. Each such telephonic notice must be confirmed promptly by delivery to the
Swing Line Lender and the Administrative Agent of a written Swing Line Loan Notice, appropriately
completed and signed by a Responsible Officer of the Borrower. Promptly after receipt by the Swing
Line Lender of any telephonic Swing Line Loan Notice, the Swing Line Lender will confirm with the
Administrative Agent (by telephone or in writing) that the Administrative Agent has also received
such Swing Line Loan Notice and, if not, the Swing Line Lender will notify the Administrative Agent
(by telephone or in writing) of the contents thereof. Unless the Swing Line Lender has received
notice (by telephone or in writing) from the Administrative Agent (including at the reasonable
request of any Lender) prior to 1:30 p.m. on the date of the proposed Swing Line Borrowing (A)
directing the Swing Line Lender not to make such Swing Line Loan as a result of the limitations set
forth in the proviso to the first sentence of Section 2.05(a), or (B) that one or more of
the applicable conditions specified in Article IV is not then satisfied, then, subject to
the terms and conditions hereof, the Swing Line Lender will, not later than 2:00 p.m. on the
borrowing date specified in such Swing Line Loan Notice, make the amount of its Swing Line Loan
available to the Borrower pursuant to the Borrower’s instructions in Same Day Funds.

     (c) Refinancing of Swing Line Loans.

     (i) The Swing Line Lender at any time in its sole and absolute discretion may request,
on behalf of the Borrower (which hereby irrevocably authorizes the Swing Line Lender to so
request on its behalf), that each Lender make a Base Rate Committed Loan in an amount equal
to such Lender’s Applicable Percentage of the amount of Swing Line Loans then outstanding.
Such request shall be made in writing (which written request shall be deemed to be a
Committed Loan Notice for purposes hereof) and in accordance with the requirements of
Section 2.02, without regard to the minimum and multiples specified therein for the
principal amount of Base Rate Loans, but subject to the unutilized portion of the Aggregate
Commitments and the conditions set forth in Section 4.02. The Swing Line Lender
shall furnish the Borrower with a copy of the applicable Committed Loan Notice promptly
after delivering such notice to the Administrative Agent. Each Lender shall make an amount
equal to its Applicable Percentage of the amount specified in such Committed Loan Notice
available to the Administrative Agent in Same Day Funds for the account of the Swing Line
Lender at the Administrative Agent’s Office for Dollar-denominated payments not later than
12 Noon on the day specified in such Committed Loan Notice, whereupon, subject to
Section 2.05(c)(ii), each Lender that so makes funds available shall be deemed to
have made a Base Rate Committed Loan to the Borrower in such amount. The Administrative
Agent shall remit the funds so received to the Swing Line Lender.

     (ii) If for any reason any Swing Line Loan cannot be refinanced by such a Committed
Borrowing in accordance with Section 2.05(c)(i), the request for Base Rate Committed
Loans submitted by the Swing Line Lender as set forth herein shall be deemed to be a request
by the Swing Line Lender that each of the Lenders fund its risk participation in the
relevant Swing Line Loan and each Lender’s payment to the Administrative Agent for the
account of the Swing Line Lender pursuant to Section 2.05(c)(i) shall be deemed
payment in respect of such participation.

     (iii) If any Lender fails to make available to the Administrative Agent for the account
of the Swing Line Lender any amount required to be paid by such Lender pursuant to the
foregoing provisions of this Section 2.05(c) by the time specified in Section
2.05(c)(i), the Swing Line Lender shall be entitled to recover from such Lender (acting
through the Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment

36

 

is required to the date on which such payment is immediately available to the Swing
Line Lender at a rate per annum equal to the applicable Overnight Rate from time to time in
effect. A certificate of the Swing Line Lender submitted to any Lender (through the
Administrative Agent) with respect to any amounts owing under this clause (iii) shall be
conclusive absent manifest error.

     (iv) Each Lender’s obligation to make Committed Loans or to purchase and fund risk
participations in Swing Line Loans pursuant to this Section 2.05(c) shall be
absolute and unconditional and shall not be affected by any circumstance, including (A) any
setoff, counterclaim, recoupment, defense or other right which such Lender may have against
the Swing Line Lender, the Borrower or any other Person for any reason whatsoever, (B) the
occurrence or continuance of a Default, or (C) any other occurrence, event or condition,
whether or not similar to any of the foregoing; provided, however, that each
Lender’s obligation to make Committed Loans pursuant to this Section 2.05(c) is
subject to the conditions set forth in Section 4.02. No such funding of risk
participations shall relieve or otherwise impair the obligation of the Borrower to repay
Swing Line Loans, together with interest as provided herein.

(d) Repayment of Participations.

     (i) At any time after any Lender has purchased and funded a risk participation in a
Swing Line Loan, if the Swing Line Lender receives any payment on account of such Swing Line
Loan, the Swing Line Lender will distribute to such Lender its Applicable Percentage of such
payment (appropriately adjusted, in the case of interest payments, to reflect the period of
time during which such Lender’s risk participation was funded) in the same funds as those
received by the Swing Line Lender.

     (ii) If any payment received by the Swing Line Lender in respect of principal or
interest on any Swing Line Loan is required to be returned by the Swing Line Lender under
any of the circumstances described in Section 10.05 (including pursuant to any
settlement entered into by the Swing Line Lender in its discretion), each Lender shall pay
to the Swing Line Lender its Applicable Percentage thereof on demand of the Administrative
Agent, plus interest thereon from the date of such demand to the date such amount is
returned, at a rate per annum equal to the applicable Overnight Rate. The Administrative
Agent will make such demand upon the request of the Swing Line Lender. The obligations of
the Lenders under this clause shall survive the payment in full of the Obligations and the
termination of this Agreement.

(e) Interest for Account of Swing Line Lender. The Swing Line Lender shall be
responsible for invoicing the Borrower for interest on the Swing Line Loans. Until each Lender
funds its Base Rate Committed Loan or risk participation pursuant to this Section 2.05 to
refinance such Lender’s Applicable Percentage of any Swing Line Loan, interest in respect of such
Applicable Percentage shall be solely for the account of the Swing Line Lender.

(f) Payments Directly to Swing Line Lender. The Borrower shall make all payments of
principal and interest in respect of the Swing Line Loans directly to the Swing Line Lender.

     2.06. Prepayments.

     (a) The Borrower may, upon notice to the Administrative Agent, at any time or from time to
time voluntarily prepay Committed Loans in whole or in part without premium or penalty;
provided that (i) such notice must be received by the Administrative Agent not later than
11:00 a.m. (A) three Business Days prior to any date of prepayment of Eurocurrency Rate Committed
Loans denominated in Dollars,

37

 

(B) four Business Days (or five, in the case of prepayment of Loans denominated in Special
Notice Currencies) prior to any date of prepayment of Eurocurrency Rate Committed Loans denominated
in Alternative Currencies and (C) on the date of prepayment of Base Rate Committed Loans; (ii) any
prepayment of Eurocurrency Rate Committed Loans shall be in a minimum principal amount of
$1,000,000 or a whole multiple of $100,000 in excess thereof and (iii) any prepayment of Base Rate
Committed Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in
excess thereof or, in each case, if less, the entire principal amount thereof then outstanding.
Each such notice shall specify the date and amount of such prepayment and the Type(s) of Committed
Loans to be prepaid and, if Eurocurrency Rate Loans are to be prepaid, the Interest Period(s) of
such Loans. The Administrative Agent will promptly notify each Lender of its receipt of each such
notice, and of the amount of such Lender’s Applicable Percentage of such prepayment. If such
notice is given by the Borrower, the Borrower shall make such prepayment and the payment amount
specified in such notice shall be due and payable on the date specified therein. Any prepayment of
a Eurocurrency Rate Loan shall be accompanied by all accrued interest on the amount prepaid,
together with any additional amounts required pursuant to Section 3.05. Each such
prepayment shall be applied to the Committed Loans of the Lenders in accordance with their
respective Applicable Percentages.

     (b) No Bid Loan may be prepaid without the prior consent of the applicable Bid Loan Lender.

     (c) The Borrower may, upon notice to the Swing Line Lender (with a copy to the Administrative
Agent), at any time or from time to time, voluntarily prepay Swing Line Loans in whole or in part
without premium or penalty; provided that (i) such notice must be received by the Swing
Line Lender and the Administrative Agent not later than 12 Noon on the date of the prepayment, and
(ii) any such prepayment shall be in a minimum principal amount of $100,000. Each such notice
shall specify the date and amount of such prepayment. If such notice is given by the Borrower, the
Borrower shall make such prepayment and the payment amount specified in such notice shall be due
and payable on the date specified therein.

     (d) If for any reason the Total Outstandings at any time exceed the Aggregate Commitments then
in effect, the Borrower shall immediately prepay Loans and/or Cash Collateralize the L/C
Obligations in an aggregate amount equal to such excess; provided, however, that
the Borrower shall not be required to Cash Collateralize the L/C Obligations pursuant to this
Section 2.06(d) unless after the prepayment in full of the Committed Loans and Swing Line
Loans the Total Outstandings exceed the Aggregate Commitments then in effect.

     2.07. Termination or Reduction of Commitments. The Borrower may, upon notice to the
Administrative Agent, terminate the Aggregate Commitments, or from time to time permanently reduce
the Aggregate Commitments; provided that (i) any such notice shall be received by the
Administrative Agent not later than 11:00 a.m. three Business Days prior to the date of termination
or reduction, (ii) any such partial reduction shall be in an aggregate amount of $1,000,000 or any
whole integral multiple in excess thereof, (iii) the Borrower shall not terminate or reduce the
Aggregate Commitments if, after giving effect thereto and to any concurrent prepayments hereunder,
the Total Outstandings would exceed the Aggregate Commitments, and (iv) if, after giving effect to
any reduction of the Aggregate Commitments, the Alternative Currency Sublimit, the Bid Loan
Sublimit, the Letter of Credit Sublimit or the Swing Line Sublimit exceeds the amount of the
Aggregate Commitments, such Sublimit shall be automatically reduced by the amount of such excess.
The Administrative Agent will promptly notify the Lenders of any such notice of termination or
reduction of the Aggregate Commitments. Any reduction of the Aggregate Commitments shall be
applied to the Commitment of each Lender according to its Applicable Percentage. All fees accrued
until the effective date of any termination of the Aggregate Commitments shall be paid on the
effective date of such termination.

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     2.08. Repayment of Loans.

     (a) The Borrower shall repay to the Lenders on the Maturity Date the aggregate principal
amount of Committed Loans outstanding on such date.

     (b) The Borrower shall repay each Bid Loan on the last day of the Interest Period in respect
thereof.

     (c) The Borrower shall repay each Swing Line Loan on the earlier to occur of (i) the date ten
Business Days after such Loan is made and (ii) the Maturity Date.

     2.09. Interest.

     (a) Subject to the provisions of subsection (b) below, (i) each Eurocurrency Rate Committed
Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a
rate per annum equal to the Eurocurrency Rate for such Interest Period plus the Applicable
Rate plus (in the case of a Eurocurrency Rate Committed Loan of any Lender which is lent
from a Lending Office in the United Kingdom or a Participating Member State) the Mandatory Cost;
(ii) each Base Rate Committed Loan shall bear interest on the outstanding principal amount thereof
from the applicable borrowing date at a rate per annum equal to the Base Rate plus the
Applicable Rate; (iii) each Bid Loan shall bear interest on the outstanding principal amount
thereof for the Interest Period therefor at a rate per annum equal to the Eurocurrency Rate for
such Interest Period plus (or minus) the Eurocurrency Bid Margin, or at the Absolute Rate for such
Interest Period, as the case may be; and (iv) each Swing Line Loan shall bear interest on the
outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal
to the Base Rate plus the Applicable Rate.

     (b) (i) If any amount of principal of any Loan is not paid when due (without regard to any
applicable grace periods), whether at stated maturity, by acceleration or otherwise, such amount
shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the
Default Rate to the fullest extent permitted by applicable Laws.

     (ii) If any amount (other than principal of any Loan) payable by the Borrower under any
Loan Document is not paid when due (without regard to any applicable grace periods), whether
at stated maturity, by acceleration or otherwise, such amount shall thereafter bear interest
at a fluctuating interest rate per annum at all times equal to the Default Rate to the
fullest extent permitted by applicable Laws.

     (iii) While any Event of Default exists, the Borrower shall pay interest on the
principal amount of all outstanding Obligations hereunder at a fluctuating interest rate per
annum at all times equal to the Default Rate to the fullest extent permitted by applicable
Laws.

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

     (c) Interest on each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein. Interest hereunder shall be
due and payable in accordance with the terms hereof before and after judgment, and before and after
the commencement of any proceeding under any Debtor Relief Law.

     2.10. Fees. In addition to certain fees described in subsections (i) and (j) of Section
2.04:

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     (a) Commitment Fee. The Borrower shall pay to the Administrative Agent for the
account of each Lender in accordance with its Applicable Percentage, a commitment fee equal to the
Applicable Rate times the actual daily amount by which the Aggregate Commitments exceed the
sum of (i) the Outstanding Amount of Committed Loans and (ii) the Outstanding Amount of L/C
Obligations. The commitment fee shall accrue at all times during the Availability Period,
including at any time during which one or more of the conditions in Article IV is not met,
and shall be due and payable quarterly in arrears on the last Business Day of each April, July,
October and January, commencing with the first such date to occur after the Closing Date, and on
the Maturity Date. The commitment fee shall be calculated quarterly in arrears, and if there is
any change in the Applicable Rate during any fiscal quarter, the actual daily amount shall be
computed and multiplied by the Applicable Rate separately for each period during such fiscal
quarter that such Applicable Rate was in effect.

     (b) Other Fees. (i) The Borrower shall pay to the Joint Arrangers and the
Administrative Agent for their own respective accounts, in Dollars, fees in the amounts and at the
times specified in the Fee Letters. Such fees shall be fully earned when paid and shall not be
refundable for any reason whatsoever.

     (ii) The Borrower shall pay to the Lenders, in Dollars, such fees as shall have been
separately agreed upon in writing in the amounts and at the times so specified. Such fees
shall be fully earned when paid and shall not be refundable for any reason whatsoever.

     2.11. Computation of Interest and Fees. All computations of interest for Base Rate Loans when
the Base Rate is determined by Bank of America’s “prime rate” shall be made on the basis of a year
of 365 or 366 days, as the case may be, and actual days elapsed. All other computations of fees
and interest shall be made on the basis of a 360-day year and actual days elapsed (which results in
more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year),
or, in the case of interest in respect of Committed Loans denominated in Alternative Currencies as
to which market practice differs from the foregoing, in accordance with such market practice.
Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a
Loan, or any portion thereof, for the day on which the Loan or such portion is paid,
provided that any Loan that is repaid on the same day on which it is made shall, subject to
Section 2.13(a), bear interest for one day. Each determination by the Administrative Agent
of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent
manifest error.

     2.12. Evidence of Debt.

     (a) The Credit Extensions made by each Lender shall be evidenced by one or more accounts or
records maintained by such Lender and by the Administrative Agent in the ordinary course of
business. The accounts or records maintained by the Administrative Agent and each Lender shall be
conclusive absent manifest error of the amount of the Credit Extensions made by the Lenders to the
Borrower and the interest and payments thereon. Any failure to so record or any error in doing so
shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any
amount owing with respect to the Obligations. In the event of any conflict between the accounts
and records maintained by any Lender and the accounts and records of the Administrative Agent in
respect of such matters, the accounts and records of the Administrative Agent shall control in the
absence of manifest error. Upon the request of any Lender made through the Administrative Agent,
the Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Note,
which shall evidence such Lender’s Loans in addition to such accounts or records. Each Lender may
attach schedules to its Note and endorse thereon the date, Type (if applicable), amount, currency
and maturity of its Loans and payments with respect thereto.

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     (b) In addition to the accounts and records referred to in subsection (a), each Lender and the
Administrative Agent shall maintain in accordance with its usual practice accounts or records
evidencing the purchases and sales by such Lender of participations in Letters of Credit and Swing
Line Loans. In the event of any conflict between the accounts and records maintained by the
Administrative Agent and the accounts and records of any Lender in respect of such matters, the
accounts and records of the Administrative Agent shall control in the absence of manifest error.

     2.13. Payments Generally; Administrative Agent’s Clawback.

     (a) General. All payments to be made by the Borrower shall be made without condition
or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly
provided herein and except with respect to principal of and interest on Loans denominated in an
Alternative Currency, all payments by the Borrower hereunder shall be made to the Administrative
Agent, for the account of the respective Lenders to which such payment is owed, at the applicable
Administrative Agent’s Office in Dollars and in Same Day Funds not later than 1:00 p.m. on the date
specified herein. Except as otherwise expressly provided herein, all payments by the Borrower
hereunder with respect to principal and interest on Loans denominated in an Alternative Currency
shall be made to the Administrative Agent, for the account of the respective Lenders to which such
payment is owed, at the applicable Administrative Agent’s Office in such Alternative Currency and
in Same Day Funds not later than the Applicable Time specified by the Administrative Agent on the
dates specified herein. Without limiting the generality of the foregoing, the Administrative Agent
may require that any payments due under this Agreement be made in the United States. If, for any
reason, the Borrower is prohibited by any Law from making any required payment hereunder in an
Alternative Currency, the Borrower shall make such payment in Dollars in the Dollar Equivalent of
the Alternative Currency payment amount. The Administrative Agent will promptly
distribute to each Lender its Applicable Percentage (or other applicable share as provided herein)
of such payment in like funds as received by wire transfer to such Lender’s Lending Office. All
payments received by the Administrative Agent (i) after 1:00 p.m., in the case of payments in
Dollars, or (ii) after the Applicable Time specified by the Administrative Agent in the case of
payments in an Alternative Currency, shall in each case be deemed received on the next succeeding
Business Day and any applicable interest or fee shall continue to accrue. If any payment to be
made by the Borrower shall come due on a day other than a Business Day, payment shall be made on
the next following Business Day, and such extension of time shall be reflected in computing
interest or fees, as the case may be.

     (b) (i) Funding by Lenders; Presumption by Administrative Agent. Unless the
Administrative Agent shall have received notice from a Lender prior to the proposed date of any
Committed Borrowing of Eurocurrency Rate Loans (or, in the case of any Committed Borrowing of Base
Rate Loans, prior to 11:00 a.m. on the date of such Committed Borrowing) that such Lender will not
make available to the Administrative Agent such Lender’s share of such Committed Borrowing, the
Administrative Agent may assume that such Lender has made such share available on such date in
accordance with Section 2.02 (or, in the case of a Committed Borrowing of Base Rate Loans,
that such Lender has made such share available in accordance with and at the time required by
Section 2.02) and may, in reliance upon such assumption, make available to the Borrower a
corresponding amount. In such event, if a Lender has not in fact made its share of the applicable
Committed Borrowing available to the Administrative Agent, then the applicable Lender and the
Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding
amount in Same Day Funds with interest thereon, for each day from and including the date such
amount is made available to the Borrower to but excluding the date of payment to the Administrative
Agent, at (A) in the case of a payment to be made by such Lender, the Overnight Rate and (B) in the
case of a payment to be made by the Borrower, the interest rate applicable to Base Rate Loans. If
the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an
overlapping period, the Administrative Agent shall promptly

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remit to the Borrower the amount of such interest paid by the Borrower for such period. If
such Lender pays its share of the applicable Committed Borrowing to the Administrative Agent, then
the amount so paid shall constitute such Lender’s Committed Loan included in such Committed
Borrowing. Any payment by the Borrower shall be without prejudice to any claim the Borrower may
have against a Lender that shall have failed to make such payment to the Administrative Agent.

     (ii) Payments by Borrower; Presumptions by Administrative Agent. Unless the
Administrative Agent shall have received notice from the Borrower prior to the date on which
any payment is due to the Administrative Agent for the account of the Lenders or the L/C
Issuer hereunder that the Borrower will not make such payment, the Administrative Agent may
assume that the Borrower has made such payment on such date in accordance herewith and may,
in reliance upon such assumption, distribute to the Lenders or the L/C Issuer, as the case
may be, the amount due. In such event, if the Borrower has not in fact made such payment,
then each of the Lenders or the L/C Issuer, as the case may be, severally agrees to repay to
the Administrative Agent forthwith on demand the amount so distributed to such Lender or the
L/C Issuer, in Same Day Funds with interest thereon, for each day from and including the
date such amount is distributed to it to but excluding the date of payment to the
Administrative Agent, at the Overnight Rate.

A notice of the Administrative Agent to any Lender or the Borrower with respect to any
amount owing under this subsection (b) shall be conclusive, absent manifest error.

     (c) Failure to Satisfy Conditions Precedent. If any Lender makes available to the
Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing
provisions of this Article II, and such funds are not made available to the Borrower by the
Administrative Agent because the conditions to the applicable Credit Extension set forth in
Article IV are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from such Lender) to such
Lender, without interest.

     (d) Obligations of Lenders Several. The obligations of the Lenders hereunder to make
Committed Loans, to fund participations in Letters of Credit and Swing Line Loans and to make
payments pursuant to Section 10.04(c) are several and not joint. The failure of any Lender
to make any Committed Loan, to fund any such participation or to make any payment under Section
10.04(c) on any date required hereunder shall not relieve any other Lender of its corresponding
obligation to do so on such date, and no Lender shall be responsible for the failure of any other
Lender to so make its Committed Loan, to purchase its participation or to make its payment under
Section 10.04(c).

     (e) Funding Source. Nothing herein shall be deemed to obligate any Lender to obtain
the funds for any Loan in any particular place or manner or to constitute a representation by any
Lender that it has obtained or will obtain the funds for any Loan in any particular place or
manner.

     2.14. Sharing of Payments by Lenders. If any Lender shall, by exercising any right of setoff
or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of
the Committed Loans made by it, or the participations in L/C Obligations or in Swing Line Loans
held by it resulting in such Lender’s receiving payment of a proportion of the aggregate amount of
such Committed Loans or participations and accrued interest thereon greater than its pro rata share
thereof as provided herein, then the Lender receiving such greater proportion shall:

     (a) notify the Administrative Agent of such fact, and

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     (b) purchase (for cash at face value) participations in the Committed Loans and
subparticipations in L/C Obligations and Swing Line Loans of the other Lenders, or make such other
adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the
Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on
their respective Committed Loans and other amounts owing them, provided that:

     (i) if any such participations or subparticipations are purchased and all or any
portion of the payment giving rise thereto is recovered, such participations or
subparticipations shall be rescinded and the purchase price restored to the extent of such
recovery, without interest; and

     (ii) the provisions of this Section shall not be construed to apply to (x) any payment
made by the Borrower pursuant to and in accordance with the express terms of this Agreement
or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a
participation in any of its Committed Loans or subparticipations in L/C Obligations or Swing
Line Loans to any assignee or participant, other than to the Borrower or any Subsidiary
thereof (as to which the provisions of this Section shall apply).

The Borrower consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against the Borrower rights of setoff and counterclaim with
respect to such participation as fully as if such Lender were a direct creditor of the
Borrower in the amount of such participation.

     2.15. Increase in Commitments.

     (a) Request for Increase. Provided there exists no Default, upon written notice to
the Administrative Agent and the Lenders, the Borrower may from time to time following the Closing
Date, request an increase in the Aggregate Commitments by an amount (for all such requests) not
exceeding $100,000,000; provided that (i) any such request for an increase shall be in a
minimum amount of $5,000,000, and (ii) the Borrower may make a maximum of ten such requests. At
the time of sending such notice, the Borrower (in consultation with the Administrative Agent) shall
specify the time period within which each Lender is requested to respond (which shall in no event
be less than ten Business Days from the date of delivery of such notice to the Lenders).

     (b) Lender Elections to Increase. Each Lender shall notify the Administrative Agent
in writing within such time period whether or not it agrees to increase its Commitment and, if so,
whether by an amount equal to, greater than, or less than its Applicable Percentage of such
requested increase. Any Lender not responding within such time period shall be deemed to have
declined to increase its Commitment.

     (c) Notification by Administrative Agent; Additional Lenders. The Administrative
Agent shall notify the Borrower and each Lender of the Lenders’ responses to each request made
hereunder. In the event that the Lenders do not express willingness to increase their Commitments
in an amount equal to the amount requested by the Borrower, to achieve the full amount of a
requested increase and subject to the approval of the Administrative Agent and the L/C Issuer
(which approvals shall not be unreasonably withheld, conditioned or delayed), the Borrower may also
invite additional Eligible Assignees to become Lenders pursuant to a joinder agreement in form and
substance reasonably satisfactory to the Administrative Agent and its counsel.

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     (d) Effective Date and Allocations. If the Aggregate Commitments are increased in
accordance with this Section, the Administrative Agent and the Borrower shall determine the
effective date (the “Increase Effective Date”) and the final allocation of such increase.
The Administrative Agent shall promptly notify the Borrower and the Lenders of the final allocation
of such increase and the Increase Effective Date.

     (e) Conditions to Effectiveness of Increase. As a condition precedent to such
increase, (i) the Borrower shall deliver to the Administrative Agent a certificate of each Loan
Party dated as of the Increase Effective Date (in sufficient copies for each Lender) signed by a
Responsible Officer of such Loan Party (A) certifying and attaching the resolutions adopted by such
Loan Party approving or consenting to such increase, and (B) in the case of the Borrower,
certifying that, before and after giving effect to such increase, (1) the representations and
warranties contained in Article V and the other Loan Documents are true and correct in all
material respects on and as of the Increase Effective Date, except to the extent that such
representations and warranties specifically refer to an earlier date, in which case they are true
and correct in all material respects as of such earlier date, and except that for purposes of this
Section 2.15, the representations and warranties contained in subsections (a) and (b) of
Section 5.05 shall be deemed to refer to the most recent statements furnished pursuant to
clauses (a) and (b), respectively, of Section 6.01, and (2) no Default exists and (ii) the
Borrower, the Lenders and any such additional Eligible Assignees shall otherwise have executed and
delivered such other instruments and documents as the Administrative Agent shall have reasonably
requested in connection with such increase. The Borrower shall prepay any Committed Loans
outstanding on the Increase Effective Date (and pay any additional amounts required pursuant to
Section 3.05) to the extent necessary to keep the outstanding Committed Loans ratable with
any revised Applicable Percentages arising from any nonratable increase in the Commitments under
this Section.

     (f) Conflicting Provisions. This Section shall supersede any provisions in
Sections 2.14 or 10.01 to the contrary.

     2.16. Guaranties. The Obligations shall be guaranteed pursuant to the terms of the Guaranty,
executed by each Guaranty.

ARTICLE III.

TAXES, YIELD PROTECTION AND ILLEGALITY

     3.01. Taxes.

     (a) Payments Free of Taxes. Any and all payments by or on account of any obligation
of the Borrower hereunder or under any other Loan Document shall be made free and clear of and
without reduction or withholding for any Indemnified Taxes or Other Taxes, provided that if
the Borrower shall be required by applicable law to deduct any Indemnified Taxes (including any
Other Taxes) from such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to additional sums payable
under this Section) the Administrative Agent, Lender or L/C Issuer, as the case may be, receives an
amount equal to the sum it would have received had no such deductions been made; provided,
however, that the Borrower shall be entitled to deduct and withhold any Taxes and shall not
be required to increase any such amounts payable to any Lender not organized under the laws of the
United States of America or any state thereof (or whose Lending Office is located in a jurisdiction
outside the United States of America) if such Lender fails to comply with the requirements of
Section 3.01(e) hereof, (ii) the Borrower shall make such deductions and (iii) the Borrower
shall timely pay the full amount deducted to the relevant Governmental Authority in accordance with
applicable law.

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     (b) Payment of Other Taxes by the Borrower. Without limiting the provisions of
subsection (a) above, the Borrower shall timely pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

     (c) Indemnification by the Borrower. The Borrower shall indemnify the Administrative
Agent, each Lender and the L/C Issuer, within 30 days after written demand therefor, for the full
amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed
or asserted on or attributable to amounts payable under this Section) paid by the Administrative
Agent, such Lender or the L/C Issuer, as the case may be, and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified
Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental
Authority. A certificate as to the amount of such payment or liability setting forth in reasonable
detail the computations made to determine such payment or liability delivered to the Borrower by a
Lender or the L/C Issuer (with a copy to the Administrative Agent), or by the Administrative Agent
on its own behalf or on behalf of a Lender or the L/C Issuer, shall be conclusive absent manifest
error. Notwithstanding the foregoing, the Borrower shall not be liable for the reimbursement of
any interest, penalties or expenses relating to Indemnified Taxes or Other Taxes arising from the
gross negligence or willful misconduct of the Administrative Agent, any Lender or the L/C Issuer in
taking any action it was required to take.

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

     (e) Status of Lenders. Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the law of the jurisdiction in which the Borrower is resident
for tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments
hereunder or under any other Loan Document shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law or reasonably requested by
the Borrower or the Administrative Agent, such properly completed and executed documentation
prescribed by applicable law or reasonably requested by the Borrower as will permit such payments
to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if
requested by the Borrower or the Administrative Agent, shall deliver such other documentation
prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as
will enable the Borrower or the Administrative Agent to determine whether or not such Lender is
subject to backup withholding or information reporting requirements.

Without limiting the generality of the foregoing, in the event that the Borrower is resident for
tax purposes in the United States, any Foreign Lender shall deliver to the Borrower and the
Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior
to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to
time thereafter upon the request of the Borrower or the Administrative Agent, but only if such
Foreign Lender is legally entitled to do so), whichever of the following is applicable:

     (i) duly completed copies of Internal Revenue Service Form W-8BEN claiming eligibility
for benefits of an income tax treaty to which the United States is a party,

     (ii) duly completed copies of Internal Revenue Service Form W-8ECI,

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     (iii) in the case of a Foreign Lender claiming the benefits of the exemption for
portfolio interest under section 881(c) of the Code, (x) a certificate to the effect that
such Foreign Lender is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the
Code, (B) a “10 percent shareholder” of the Borrower within the meaning of section
881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in section
881(c)(3)(C) of the Code and (y) duly completed copies of Internal Revenue Service Form
W-8BEN, or

     (iv) any other form prescribed by applicable law as a basis for claiming exemption from
or a reduction in United States Federal withholding tax duly completed together with such
supplementary documentation as may be prescribed by applicable law to permit the Borrower to
determine the withholding or deduction required to be made.

     Without limiting the obligations of the Lenders set forth above regarding delivery of certain
forms and documents to establish each Lender’s status for U.S. withholding tax purposes, each
Lender agrees promptly to deliver to the Administrative Agent or the Borrower, as the
Administrative Agent or the Borrower shall reasonably request, on or prior to the Closing Date, and
in a timely fashion thereafter, such other documents and forms required by any relevant taxing
authorities under the Laws of any other jurisdiction, duly executed and completed by such Lender,
as are required under such Laws to confirm such Lender’s entitlement to any available exemption
from, or reduction of, applicable withholding taxes in respect of all payments to be made to such
Lender outside of the U.S. by the Borrower pursuant to this Agreement or otherwise to establish
such Lender’s status for withholding tax purposes in such other jurisdiction. Each Lender shall
promptly (i) notify the Administrative Agent of any change in circumstances which would modify or
render invalid any such claimed exemption or reduction, and (ii) take such steps as shall not be
materially disadvantageous to it, in the reasonable judgment of such Lender, and as may be
reasonably necessary (including the re-designation of its Lending Office) to avoid any requirement
of applicable Laws of any such jurisdiction that the Borrower make any deduction or withholding for
taxes from amounts payable to such Lender. Additionally, the Borrower shall promptly deliver to
the Administrative Agent or any Lender, as the Administrative Agent or such Lender shall reasonably
request, on or prior to the Closing Date, and in a timely fashion thereafter, such documents and
forms required by any relevant taxing authorities under the Laws of any jurisdiction, duly executed
and completed by the Borrower, as are required to be furnished by such Lender or the Administrative
Agent under such Laws in connection with any payment by the Administrative Agent or any Lender of
Taxes or Other Taxes, or otherwise in connection with the Loan Documents, with respect to such
jurisdiction. If such Person fails to deliver the above forms or other documentation, then the
Administrative Agent may withhold from any interest payment to such Person an amount equivalent to
the applicable withholding tax imposed by Sections 1441 and 1442 of the Code, without reduction.
If any Governmental Authority asserts that the Administrative Agent did not properly withhold any
Tax or other amount from payments made in respect of such Person, such Person shall indemnify the
Administrative Agent therefor, including all penalties and interest, any Taxes imposed by any
jurisdiction on the amounts payable to the Administrative Agent under this Section 3.01,
and costs and expenses (including all attorney fees and expenses) of the Administrative Agent.

     (f) Treatment of Certain Refunds. If the Administrative Agent, any Lender or the L/C
Issuer determines, in its reasonable discretion, that it has received a refund of any Taxes or
Other Taxes as to which it has been indemnified by the Borrower or with respect to which the
Borrower has paid additional amounts pursuant to this Section, it shall pay to the Borrower an
amount equal to such refund (but only to the extent of indemnity payments made, or additional
amounts paid, by the Borrower under this Section with respect to the Taxes or Other Taxes giving
rise to such refund), net of all reasonable out-of-pocket expenses of the Administrative Agent,
such Lender or the L/C Issuer, as the case may be, and without interest (other than any interest
paid by the relevant Governmental Authority with respect to such refund), provided that the
Borrower, upon the request of the Administrative Agent, such Lender or the L/C Issuer,

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agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other
charges imposed by the relevant Governmental Authority) to the Administrative Agent, such Lender or
the L/C Issuer in the event the Administrative Agent, such Lender or the L/C Issuer is required to
repay such refund to such Governmental Authority. This subsection shall not be construed to
require the Administrative Agent, any Lender or the L/C Issuer to make available its tax returns
(or any other information relating to its taxes that it deems confidential) to the Borrower or any
other Person.

     3.02. Illegality. If any Lender determines that any Change in Law has made it unlawful, or
that any Governmental Authority after the date hereof (or, if later, the date on which such Lender
became a Lender hereunder) has asserted that it is unlawful, for such Lender or its applicable
Lending Office to make, maintain or fund Eurocurrency Rate Loans (whether denominated in Dollars or
an Alternative Currency), or to determine or charge interest rates based upon the Eurocurrency
Rate, or any Governmental Authority has after the date hereof (or, if later, the date on which such
Lender became a Lender hereunder) imposed material restrictions on the authority of such Lender to
purchase or sell, or to take deposits of, Dollars or any Alternative Currency in the applicable
interbank market, then, on notice thereof by such Lender to the Borrower through the Administrative
Agent, any obligation of such Lender to make or continue Eurocurrency Rate Loans in the affected
currency or currencies or, in the case of Eurocurrency Rate Loans in Dollars, to convert Base Rate
Committed Loans to Eurocurrency Rate Committed Loans shall be suspended until such Lender notifies
the Administrative Agent and the Borrower that the circumstances giving rise to such determination
no longer exist. Upon receipt of such notice, the Borrower shall, upon written demand from such
Lender (with a copy to the Administrative Agent), prepay or, if applicable and such Loans are
denominated in Dollars, convert such Eurocurrency Rate Loans of such Lender to Base Rate Loans,
either on the last day of the Interest Period therefor, if such Lender may lawfully continue to
maintain such Eurocurrency Rate Loans to such day, or immediately, if such Lender may not lawfully
continue to maintain such Eurocurrency Rate Loans. Upon any such prepayment or conversion, the
Borrower shall also pay accrued interest on the amount so prepaid or converted.

     3.03. Inability to Determine Rates. If the Required Lenders determine in their reasonable
discretion that for any reason in connection with any request for a Eurocurrency Rate Loan or a
conversion to or continuation thereof that (a) deposits (whether in Dollars or an Alternative
Currency) are not being offered to banks in the applicable offshore interbank market for such
currency for the applicable amount and Interest Period of such Eurocurrency Rate Loan, (b) adequate
and reasonable means do not exist for determining the Eurocurrency Rate for any requested Interest
Period with respect to a proposed Eurocurrency Rate Committed Loan, or (c) the Eurocurrency Rate
for any requested Interest Period with respect to a proposed Eurocurrency Rate Committed Loan does
not adequately and fairly reflect the cost to such Lenders of funding such Loan, the Administrative
Agent will promptly so notify the Borrower and each Lender. Thereafter, the obligation of the
Lenders to make or maintain Eurocurrency Rate Loans in the affected currency or currencies shall be
suspended until the Administrative Agent (upon the instruction of the Required Lenders) revokes
such notice. Upon receipt of such notice, the Borrower may revoke any pending request for a
Borrowing of, conversion to or continuation of Eurocurrency Rate Committed Loans in the affect
currency or currencies or, failing that, will be deemed to have converted such request into a
request for a Committed Borrowing of Base Rate Loans in the amount specified therein.

     3.04. Increased Costs; Reserves of Eurocurrency Loans.

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

     (i) impose, modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for the account

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of, or credit extended or participated in by, any Lender (except (A) any reserve
requirement contemplated by Section 3.04(e) and (B) the requirements of the Bank of
England and the Financial Services Authority or the European Central Bank reflected in the
Mandatory Cost, other than as set forth below) or the L/C Issuer;

     (ii) subject any Lender or the L/C Issuer to any tax of any kind whatsoever with
respect to this Agreement, any Letter of Credit, any participation in a Letter of Credit or
any Eurocurrency Rate Loan made by it, or change the basis of taxation of payments to such
Lender or the L/C Issuer in respect thereof (except for Indemnified Taxes or Other Taxes
covered by Section 3.01 and the imposition of, or any change in the rate of, any
Excluded Tax payable by such Lender or the L/C Issuer);

     (iii) result in the Mandatory Cost, as calculated hereunder, not representing the cost
to any Lender of complying with the requirements of the Bank of England and/or the Financial
Services Authority or the European Central Bank in relation to its making, funding or
maintaining Eurocurrency Rate Loans; or

     (iv) impose on any Lender or the L/C Issuer or the London interbank market any other
condition, cost or expense affecting this Agreement or Eurocurrency Rate Loans made by such
Lender or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of
making or maintaining any Eurocurrency Rate Loan (or of maintaining its obligation to make
any such Loan), or to increase the cost to such Lender or the L/C Issuer of participating
in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to
participate in or to issue any Letter of Credit), or to reduce the amount of any sum
received or receivable by such Lender or the L/C Issuer hereunder (whether of principal,
interest or any other amount) then, upon the written request of such Lender or the L/C
Issuer, the Borrower will pay to such Lender or the L/C Issuer, as the case may be, such
additional amount or amounts as will compensate such Lender or the L/C Issuer, as the case
may be, for such additional costs incurred or reduction suffered.

     (b) Capital Requirements. If any Lender or the L/C Issuer determines in good faith
that any Change in Law affecting such Lender or the L/C Issuer or any Lending Office of such Lender
or such Lender’s or the L/C Issuer’s holding company, if any, regarding capital requirements has or
would have the effect of reducing the rate of return on such Lender’s or the L/C Issuer’s capital
or on the capital of such Lender’s or the L/C Issuer’s holding company, if any, as a consequence of
this Agreement, the Commitments of such Lender or the Loans made by, or participations in Letters
of Credit held by, such Lender, or the Letters of Credit issued by the L/C Issuer, to a level below
that which such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company could
have achieved but for such Change in Law (taking into consideration such Lender’s or the L/C
Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s holding company with
respect to capital adequacy), then from time to time the Borrower will pay to such Lender or the
L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or
the L/C Issuer or such Lender’s or the L/C Issuer’s holding company for any such reduction
suffered.

     (c) Certificates for Reimbursement. A certificate of a Lender or the L/C Issuer
delivered to the Borrower setting forth the amount or amounts necessary to compensate such Lender
or the L/C Issuer or its holding company, as the case may be, as specified in subsection (a) or (b)
of this Section and explaining in reasonable detail the method by which such amount or amounts
shall have been determined shall be conclusive absent manifest error. The Borrower shall pay such
Lender or the L/C Issuer, as the case may be, the amount shown as due on any such certificate
within 30 days after receipt thereof.

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     (d) Delay in Requests. Failure or delay on the part of any Lender or the L/C Issuer
to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a
waiver of such Lender’s or the L/C Issuer’s right to demand such compensation, provided
that the Borrower shall not be required to compensate a Lender or the L/C Issuer pursuant to the
foregoing provisions of this Section for any increased costs incurred or reductions suffered more
than 90 days prior to the date that such Lender or the L/C Issuer, as the case may be, notifies the
Borrower of the Change in Law giving rise to such increased costs or reductions and of such
Lender’s or the L/C Issuer’s intention to claim compensation therefor (except that, if the Change
in Law giving rise to such increased costs or reductions is retroactive, then the 90-day period
referred to above shall be extended to include the period of retroactive effect thereof).

     (e) Additional Reserve Requirements. The Borrower shall pay to each Lender, (i) as
long as such Lender shall be required to maintain reserves with respect to liabilities or assets
consisting of or including Eurocurrency funds or deposits (currently known as “Eurocurrency
liabilities”), additional interest on the unpaid principal amount of each Eurocurrency Rate Loan
equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined by
such Lender in good faith and on an equitable basis, which determination shall be conclusive), and
(ii) as long as such Lender shall be required to comply with any reserve ratio requirement or
analogous requirement of any other central banking or financial regulatory authority imposed in
respect of the maintenance of the Commitments or the funding of the Eurocurrency Rate Loans, such
additional costs (expressed as a percentage per annum and rounded upwards, if necessary, to the
nearest five decimal places) equal to the actual costs allocated to such Commitment or Loan by such
Lender (as determined by such Lender in good faith, which determination shall be conclusive absent
manifest error), which in each case shall be due and payable on each date on which interest is
payable on such Loan, provided the Borrower shall have received at least 30 days’ prior
notice (with a copy to the Administrative Agent) of such additional interest or costs from such
Lender. If a Lender fails to give notice 30 days prior to the relevant Interest Payment Date, such
additional interest or costs shall be due and payable 30 days from receipt of such notice.

     (f) No Compensation. Notwithstanding the foregoing provisions of this Section, a
Lender shall not be entitled to compensation pursuant to this Section in respect of any Bid Loan
(i) if the Change in Law that would otherwise entitle it to such compensation shall have been
publicly announced prior to submission of the Competitive Bid pursuant to which such Bid Loan was
made or (ii) if it is not at the time the general policy or practice of such Lender to demand
compensation in similar circumstances in similar credit agreements.

     3.05. Compensation for Losses. Upon the written demand of any Lender (with a copy to the
Administrative Agent) from time to time, the Borrower shall promptly compensate such Lender for and
hold such Lender harmless from any reasonable loss, cost or expense incurred by it as a result of:

     (a) any continuation, conversion, payment or prepayment of any Loan other than a Base Rate
Loan on a day other than the last day of the Interest Period for such Loan (whether voluntary,
mandatory, automatic, by reason of acceleration, or otherwise);

     (b) any failure by the Borrower (for a reason other than the failure of such Lender to make a
Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the date or in
the amount notified by the Borrower;

     (c) any failure by the Borrower to make payment of any Loan or drawing under any Letter of
Credit (or interest due thereon) denominated in an Alternative Currency on its scheduled due date
or any payment thereof in a different currency; or

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     (d) any assignment of a Eurocurrency Rate Loan on a day other than the last day of the
Interest Period therefor as a result of a request by the Borrower pursuant to Section
10.13;

including any reasonable loss of anticipated profits, any reasonable foreign exchange losses and
any reasonable loss or expense arising from the liquidation or reemployment of funds obtained by it
to maintain such Loan, from fees payable to terminate the deposits from which such funds were
obtained or from the performance of any foreign exchange contract. The Borrower shall also pay any
customary administrative fees charged by such Lender in connection with the foregoing.

     Notwithstanding the foregoing, the Borrower shall not be required to compensate a Lender
pursuant to the foregoing provisions of this Section for any losses, costs or expenses incurred
more than 90 days prior to the date that such Lender notifies the Borrower of such losses, costs
and/or expenses.

     For purposes of calculating amounts payable by the Borrower to the Lenders under this
Section 3.05, each Lender shall be deemed to have funded each Eurocurrency Rate Committed
Loan made by it at the Eurocurrency Rate for such Loan by a matching deposit or other borrowing in
the offshore interbank market for such currency a comparable amount and for a comparable period,
whether or not such Eurocurrency Rate Committed Loan was in fact so funded.

     A certificate of any Lender setting forth any amount or amounts that such Lender is entitled
to receive pursuant to this Section and explaining in reasonable detail the method by which such
amount or amounts shall have been determined shall be delivered to the Borrower and shall be
conclusive absent manifest error. The Borrower will pay such Lender the amount shown as due on any
such certificate within 30 days after receipt thereof.

     3.06. Mitigation Obligations; Replacement of Lenders.

     (a) Designation of a Different Lending Office. If any Lender requests compensation
under Section 3.04, or the Borrower is required to pay any additional amount to any Lender
or any Governmental Authority for the account of any Lender pursuant to Section 3.01 or as
a result of any Mandatory Cost, or if any Lender gives a notice pursuant to Section 3.02,
then such Lender shall use reasonable efforts to designate a different Lending Office for funding
or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its
offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment
(i) would eliminate or reduce such Mandatory Cost or amounts payable pursuant to Section
3.01 or 3.04, as the case may be, in the future, or eliminate the need for the notice
pursuant to Section 3.02, as applicable, and (ii) in each case, would not subject such
Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such
Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender
in connection with any such designation or assignment.

     (b) Replacement of Lenders. If any Lender requests compensation under Section
3.04, or if the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 3.01 or as a result of
any Mandatory Cost, the Borrower may (i) replace such Lender in accordance with Section
10.13 or (ii) reduce the Aggregate Commitment in the full amount of such Lender’s Applicable
Percentage of the Aggregate Commitment; provided that such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans and L/C Advances, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder and under the other
Loan Documents (including any amounts under Section 3.05) from the Borrower. If the
Aggregate Commitment is reduced by the Borrower pursuant to clause (ii) above, the Borrower and the
Lenders agree that the Applicable Percentage of each Lender will be automatically ratably adjusted
to reflect such reduction of the Aggregate Commitment.

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     3.07. Requests for Compensation.

     (a) No Duplication. Any amount payable by the Borrower on account of any of the
foregoing Sections contained in this Article III shall not be duplicative of any amount
paid under any other such Sections.

     (b) Refunds. Any amount reasonably determined by the Administrative Agent to be paid
by the Borrower in error under any of the foregoing Sections contained in this Article III
shall be promptly refunded to the Borrower or applied to amounts due and owing hereunder, as the
Borrower may elect.

     3.08. Survival. All of the Borrower’s obligations under this Article III shall
survive termination of the Aggregate Commitments and repayment of all other Obligations hereunder.

ARTICLE IV.

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

     4.01. Conditions of Initial Credit Extension. The obligation of the L/C Issuer and each
Lender to make its initial Credit Extension hereunder is subject to satisfaction on or prior to the
Closing Date, of the following conditions precedent:

     (a) The Administrative Agent’s receipt of the following, each of which shall be originals or
telecopies (followed promptly by originals) unless otherwise specified, each properly executed by a
Responsible Officer of the signing Loan Party, each dated the Closing Date (or, in the case of
certificates of governmental officials, a recent date before the Closing Date) and each in form and
substance reasonably satisfactory to the Administrative Agent and each of the Lenders:

     (i) executed counterparts of this Agreement, sufficient in number for distribution to
the Administrative Agent, each Lender and the Borrower;

     (ii) a Note executed by the Borrower in favor of each Lender requesting a Note;

     (iii) executed counterparts of each of the other Loan Documents;

     (iv) such certificates of resolutions or other action, incumbency certificates and/or
other certificates of Responsible Officers of each Loan Party as the Administrative Agent
may require (A) evidencing the identity, authority and capacity of each Responsible Officer
thereof authorized to act as a Responsible Officer in connection this Agreement and the
other Loan Documents to which such Loan Party is a party, and (B) authorizing the execution,
delivery and performance of this Agreement and the other Loan Documents to which such Loan
Party is a party;

     (v) such documents and certifications as the Administrative Agent may reasonably
require to evidence that each Loan Party is duly organized or formed, validly existing and
in good standing in its jurisdiction of incorporation;

     (vi) a favorable opinion of Jones Day, counsel to the Loan Parties, addressed to the
Administrative Agent and each Lender, as to the matters concerning the Loan Parties and the
Loan Documents as the Required Lenders may reasonably request;

     (vii) a certificate signed by a Responsible Officer of the Borrower certifying (A) that
the conditions specified in Sections 4.02(a) and (b) have been satisfied and
(B) that, as of the

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Closing Date, there has been no event or circumstance since the date of the Audited
Financial Statements that has had or could be reasonably expected to have, either
individually or in the aggregate, a Material Adverse Effect;

     (viii) payoff letter evidencing that the Existing Credit Agreement has been, or
concurrently with the Closing Date is, being terminated; and

     (ix) such other assurances, certificates, documents, consents or opinions as the
Administrative Agent, the L/C Issuer, the Swing Line Lender or the Required Lenders
reasonably may require.

     (b) Any fees required to be paid on or before the Closing Date shall have been paid.

     (c) Unless waived by the Administrative Agent, the Borrower shall have paid all reasonable
fees, charges and disbursements of counsel to the Administrative Agent to the extent invoiced at
least two (2) Business Days prior to the Closing Date.

     (d) As of the Closing Date, since the date of the Audited Financial Statements, there shall
have been no event or circumstance that has had or could reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect.

     (e) The Closing Date shall have occurred on or before December 30, 2005.

     Without limiting the generality of the provisions of Section 9.04, for purposes of
determining compliance with the conditions specified in this Section 4.01, 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
written notice from such Lender prior to the proposed Closing Date specifying its objection
thereto.

     4.02. Conditions to all Credit Extensions. The obligation of each Lender to honor any Request
for Credit Extension (other than a Committed Loan Notice requesting only a conversion of Committed
Loans to the other Type, or a continuation of Eurocurrency Rate Committed Loans) is subject to the
following conditions precedent:

     (a) The representations and warranties of the Borrower contained in Article V or any
other Loan Document, or which are contained in any document furnished at any time under or in
connection herewith or therewith, shall be true and correct in all material respects on and as of
the date of such Credit Extension, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and correct in all material
respects as of such earlier date, and except that for purposes of this Section 4.02, the
representations and warranties contained in subsections (a) and (b) of Section 5.05 shall
be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b),
respectively, of Section 6.01.

     (b) No Default shall exist, or would result from such proposed Credit Extension or from the
application of the proceeds thereof.

     (c) The Administrative Agent and, if applicable, the L/C Issuer or the Swing Line Lender shall
have received a Request for Credit Extension in accordance with the requirements hereof.

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     (d) In the case of a Credit Extension to be denominated in an Alternative Currency, there
shall not have occurred any change in national or international financial, political or economic
conditions or currency exchange rates or exchange controls which in the reasonable opinion of the
Administrative Agent, the Required Lenders (in the case of any Loans to be denominated in an
Alternative Currency) or the L/C Issuer (in the case of any Letter of Credit to be denominated in
an Alternative Currency) would make it impracticable for such Credit Extension to be denominated in
the relevant Alternative Currency.

     Each Request for Credit Extension (other than a Committed Loan Notice requesting only a conversion
of Committed Loans to the other Type or a continuation of Eurocurrency Rate Committed Loans)
submitted by the Borrower shall be deemed to be a representation and warranty that the conditions
specified in Sections 4.02(a) and (b) have been satisfied on and as of the date of
the applicable Credit Extension.

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

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

     5.01. Existence, Qualification and Power. Each Loan Party and each Subsidiary thereof (a) is
duly organized or formed, validly existing and in good standing under the Laws of the jurisdiction
of its incorporation or organization, (b) has all requisite power and authority and all requisite
governmental licenses, authorizations, consents and approvals to (i) own or lease its assets and
carry on its business and (ii) execute, deliver and perform its obligations under the Loan
Documents to which it is a party, and (c) is duly qualified and is licensed and in good standing
under the Laws of each jurisdiction where its ownership, lease or operation of properties or the
conduct of its business requires such qualification or license, except in each case referred to in
clause (b)(i) or (c), to the extent that failure to do so could not reasonably be expected to have
a Material Adverse Effect.

     5.02. Authorization; No Contravention. The execution, delivery and performance by each Loan
Party of each Loan Document to which such Person is party, have been duly authorized by all
necessary corporate or other organizational action, and do not and will not (a) contravene the
terms of any of such Person’s Organization Documents; (b) conflict with or result in any material
breach or contravention of, or the creation of any material Lien under, or require any payment to
be made under (i) any Contractual Obligation to which such Person is a party or affecting such
Person or the properties of such Person or any of its Subsidiaries or (ii) any order, injunction,
writ or decree of any Governmental Authority or any arbitral award to which such Person or its
property is subject, in each case, in a manner that could reasonably be expected to result in a
Material Adverse Effect; or (c) violate any Law, except to the extent that such violation could not
reasonably be expected to have a Material Adverse Effect.

     5.03. Governmental Authorization; Other Consents. No approval, consent, exemption,
authorization, or other action by, or notice to, or filing with, any Governmental Authority or any
other Person is necessary or required in connection with the execution, delivery or performance by,
or enforcement against, any Loan Party of this Agreement or any other Loan Document.

     5.04. Binding Effect. This Agreement has been, and each other Loan Document, when delivered
hereunder, will have been, duly executed and delivered by each Loan Party that is party thereto.
This Agreement constitutes, and each other Loan Document when so delivered will constitute, a
legal, valid and binding obligation of such Loan Party, enforceable against each Loan Party that is
party thereto in accordance with its terms.

     5.05. Financial Statements.

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     (a) The Audited Financial Statements (i) were prepared in accordance with GAAP consistently
applied throughout the period covered thereby, except as otherwise expressly noted therein and (ii)
fairly present the financial condition of the Borrower and its Subsidiaries as of the date thereof
and their results of operations for the period covered thereby in accordance with GAAP consistently
applied throughout the period covered thereby, except as otherwise expressly noted therein.

     (b) The unaudited consolidated balance sheet of the Borrower and its Subsidiaries dated July
30, 2005, and the related consolidated statements of income or operations and cash flows for the
fiscal quarter ended on that date (i) were prepared in accordance with GAAP consistently applied
throughout the period covered thereby, except as otherwise expressly noted therein, and (ii) fairly
present the financial condition of the Borrower and its Subsidiaries as of the date thereof and
their results of operations for the period covered thereby, subject, in the case of clauses (i) and
(ii), to the absence of footnotes and to normal year-end audit adjustments.

     (c) The consolidated forecasted balance sheet and statements of income and cash flows of the
Borrower and its Subsidiaries, dated October 21, 2005, delivered to the Administrative Agent and
the Lenders were prepared in good faith on the basis of the assumptions stated therein, which
assumptions the Borrower deems were reasonable in light of the conditions existing at the time of
delivery of such forecasts, and represented, at the time of delivery, the Borrower’s good faith
estimate of its future financial performance.

     5.06. Litigation. There are no actions, suits, proceedings, claims or disputes pending or, to
the knowledge of any Responsible Officer of the Borrower after due and diligent investigation,
threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority,
by or against the Borrower or any of its Subsidiaries or against any of their properties or
revenues that (a) purport to affect or pertain to this Agreement or any other Loan Document, or any
of the transactions contemplated hereby, or (b) except as disclosed in the Borrower’s most recent
annual report (filed on Form 10-K or such other form required by the SEC) and subsequent
periodic reports filed under the Securities and Exchange Act of 1934, either individually or in
the aggregate, if determined adversely, could reasonably be expected to have a Material Adverse
Effect.

     5.07. No Default. Neither the Borrower nor any Subsidiary is in default under or with respect
to any Contractual Obligation that could, either individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. No Default has occurred and is continuing or would
result from the consummation of the transactions contemplated by this Agreement or any other Loan
Document.

     5.08. Ownership of Property; Liens. Each of the Borrower and each Subsidiary has good record
and marketable title in fee simple to, or valid leasehold interests in, all real property necessary
or used in the ordinary conduct of its business, except for such defects in title as could not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The
property of the Borrower and its Subsidiaries is subject to no Liens, other than Liens permitted by
Section 7.01.

     5.09. Environmental Compliance. The Borrower and its Subsidiaries conduct in the ordinary
course of business a review of the effect of existing applicable Environmental Laws and claims
alleging potential liability or responsibility for violation of any applicable Environmental Law on
their respective businesses, operations and properties, and as a result thereof the Borrower has
reasonably concluded that, except as disclosed in the Borrower’s most recent periodic report filed
under the Securities and Exchange Act of 1934, such Environmental Laws and claims could not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

     5.10. Intentionally Omitted.

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     5.11. Taxes. The Borrower and its Subsidiaries have filed all Federal, state and other
material tax returns and reports required to be filed, except those returns and reports as to which
the failure to so file would not create an outstanding liability for taxes due which would
reasonably be expected to result in a Material Adverse Effect, and have paid all Federal, state and
other material taxes, assessments, fees and other governmental charges levied or imposed upon them
or their properties, income or assets otherwise due and payable, except those which are being
contested in good faith by appropriate proceedings diligently conducted and for which adequate
reserves have been provided in accordance with GAAP or to the extent that the failure to do so
could not reasonably be expected to result in a Material Adverse Effect.

     5.12. ERISA Compliance.

     (a) Each Plan is in compliance in all material respects with the applicable provisions of
ERISA, the Code and other Federal or state Laws, except where such noncompliance would not have a
Material Adverse Effect. The Borrower and each ERISA Affiliate have made all required
contributions to each Plan subject to Section 412 of the Code, and no application for a funding
waiver or an extension of any amortization period pursuant to Section 412 of the Code has been made
with respect to any Plan.

     (b) There are no pending or, to the knowledge of the Borrower, threatened claims, actions or
lawsuits, or action by any Governmental Authority, with respect to any Plan that could reasonably
be expected to have a Material Adverse Effect. There has been no prohibited transaction or
violation of the fiduciary responsibility rules with respect to any Plan that has resulted or could
reasonably be expected to result in a Material Adverse Effect.

     (c) (i) No ERISA Event has occurred or is reasonably expected to occur; (ii) based on the
latest valuation of each Pension Plan prepared for financial disclosure purposes under Statement of
Financial Accounting Standards (“SFAS”) 87, as amended by SFAS 132, and on the actuarial
methods and assumptions employed for purposes of such valuation, the aggregate Unfunded Pension
Liability of all Pension Plans which have any Unfunded Pension Liability does not exceed the
Threshold Amount; (iii) neither the Borrower nor any ERISA Affiliate has incurred, or reasonably
expects to incur, any material liability under Title IV of ERISA with respect to any Pension Plan
(other than premiums due and not delinquent under Section 4007 of ERISA); (iv) neither the Borrower
nor any ERISA Affiliate has incurred, or reasonably expects to incur, any material liability (and
no event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in
such liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v)
neither the Borrower nor any ERISA Affiliate has engaged in a transaction that could be subject to
Sections 4069 or 4212(c) of ERISA.

     5.13. Subsidiaries; Guarantors. The Borrower has no Subsidiaries other than those
specifically disclosed in Part (a) of Schedule 5.13. Part (b) of Schedule 5.13
lists all Guarantors.

     5.14. Margin Regulations; Investment Company Act; Public Utility Holding Company Act.

     (a) The Borrower is not engaged and will not engage, principally or as one of its important
activities, in the business of purchasing or carrying margin stock (within the meaning of
Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying
margin stock. Following the application of the proceeds of each Borrowing or drawing under each
Letter of Credit, not more than 25% of the value of the assets (either of the Borrower only or of
the Borrower and its Subsidiaries on a consolidated basis) subject to the provisions of Section
7.01 or subject to any restriction contained in any agreement or instrument between the
Borrower and any Lender or any Affiliate of any Lender relating to Indebtedness and within the
scope of Section 8.01(e) will be margin stock.

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     (b) None of the Borrower or any Subsidiary (i) is a “holding company,” or a “subsidiary
company” of a “holding company,” or an “affiliate” of a “holding company” or of a “subsidiary
company” of a “holding company,” within the meaning of the Public Utility Holding Company Act of
1935, or (ii) is or is required to be registered as an “investment company” under the Investment
Company Act of 1940.

     5.15. Disclosure. All written certificates, documents and written statements heretofore
furnished by the Borrower to the Administrative Agent or the Lenders for use in connection with
this Agreement, and all such information hereafter furnished by the Borrower to the Administrative
Agent or the Lenders for use in connection with this Agreement, will not, at the time delivered,
taken as a whole with all other certificates, documents and written statements furnished
substantially contemporaneously therewith, contain any untrue statement of a material fact or omit
to state a material fact known to any Responsible Officer of the Borrower and necessary in order to
make the statements made or to be made, in light of the circumstances under which they were or will
be made, not misleading; provided that, with respect to projected financial information,
the Borrower represents only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time in light of the circumstances when made.

     5.16. Compliance with Laws. Each of the Borrower and each Subsidiary is in compliance in all
material respects with the requirements of all Laws and all orders, writs, injunctions and decrees
applicable to it or to its properties, except in such instances in which (a) such requirement of
Law or order, writ, injunction or decree is being contested in good faith by appropriate
proceedings diligently conducted or (b) the failure to comply therewith, either individually or in
the aggregate, could not reasonably be expected to have a Material Adverse Effect.

     5.17. Intellectual Property; Licenses, Etc. The Borrower and its Subsidiaries own, or possess
the right to use, all of the trademarks, service marks, trade names, copyrights, patents, patent
rights, franchises, licenses and other intellectual property rights that are reasonably necessary
for the operation of their respective businesses, without conflict with the rights of any other
Person, except where the failure to own such property or rights would not have a Material Adverse
Effect or where the failure to own such property or rights relates to a Subsidiary that was
acquired within 60 days prior to the date such representation is being made and the Borrower is
using reasonable efforts to obtain such property and rights. To the knowledge of the Borrower, no
slogan or other advertising device, product, process, method, substance, part or other material now
employed, or now contemplated to be employed, by the Borrower or any Subsidiary infringes upon any
rights held by any other Person, except where such infringement could not reasonably be expected to
result in a Material Adverse Effect. Except as specifically disclosed in Schedule 5.17, no
claim or litigation regarding any of the foregoing is pending or, to the knowledge of the Borrower,
threatened, which, either individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

     5.18. Fiscal Year. As of the Closing Date, the Borrower and the Subsidiaries have a fiscal
year which ends on the Saturday nearest January 31 of each calendar year, with fiscal quarters
consisting of four (4) thirteen (13) week periods

     5.19. Obligor Group Requirement. As of the Closing Date, the Obligor Assets are not less than
85% of Consolidated Total Assets.

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ARTICLE VI.

AFFIRMATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, the
Borrower shall, and shall (except in the case of the covenants set forth in Sections 6.01,
6.02, and 6.03) cause each Subsidiary to:

     6.01. Financial Statements. Deliver to the Administrative Agent and each Lender, in form and
detail satisfactory to the Administrative Agent and the Required Lenders:

     (a) as soon as available, but in any event within 105 days after the end of each fiscal year
of the Borrower, a consolidated balance sheet of the Borrower and its Subsidiaries as at the end of
such fiscal year, and the related consolidated statements of income or operations, shareholders’
equity and cash flows for such fiscal year, setting forth in each case in comparative form the
figures for the previous fiscal year, all in reasonable detail and prepared in accordance with
GAAP, audited and accompanied by a report and opinion of a Registered Public Accounting Firm of
nationally recognized standing reasonably acceptable to the Required Lenders, which report and
opinion shall be prepared in accordance with generally accepted auditing standards and applicable
Securities Laws and shall not be subject to any “going concern” or like qualification or exception
or any qualification or exception as to the scope of such audit; and

     (b) as soon as available, but in any event within 50 days after the end of each of the first
three fiscal quarters of each fiscal year of the Borrower (commencing with the fiscal quarter ended
October 29, 2005), a consolidated balance sheet of the Borrower and its Subsidiaries as at the end
of such fiscal quarter, and the related consolidated statements of income or operations and cash
flows for such fiscal quarter and for the portion of the Borrower’s fiscal year then ended, setting
forth in each case in comparative form the figures for the corresponding fiscal quarter of the
previous fiscal year and the corresponding portion of the previous fiscal year, all in reasonable
detail, certified by a Responsible Officer of the Borrower as fairly presenting the financial
condition, results of operations and cash flows of the Borrower and its Subsidiaries in accordance
with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes.

With respect to any information contained in materials furnished pursuant to Section
6.02(b), the Borrower shall not be separately required to furnish such information under clause
(a) or (b) above, but the foregoing shall not be in derogation of the obligation of the Borrower to
furnish the information and materials described in clauses (a) and (b) above at the times specified
therein.

     6.02. Certificates; Other Information. Deliver to the Administrative Agent and each Lender,
in form and detail satisfactory to the Administrative Agent and the Required Lenders:

     (a) concurrently with the delivery of the financial statements referred to in Sections
6.01(a) and (b), a duly completed Compliance Certificate signed by a Responsible
Officer of the Borrower;

     (b) promptly after the same are publicly available, copies of each annual report, proxy or
financial statement or other report or communication sent to the stockholders of the Borrower, and
copies of all annual, regular, periodic and special reports and registration statements which the
Borrower may file or be required to file with the SEC under Section 13 or 15(d) of the Securities
Exchange Act of 1934, and not otherwise required to be delivered to the Administrative Agent
pursuant hereto;

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     (c) promptly, and in any event within 20 Business Days after receipt thereof by any Loan Party
or any Subsidiary thereof, copies of each notice or other correspondence received from the SEC (or
comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or possible
investigation or other inquiry by such agency regarding financial or other operational results of
any Loan Party or any Subsidiary thereof; and

     (d) promptly, such additional information regarding the business, financial or corporate
affairs of the Borrower or any Subsidiary, or compliance with the terms of the Loan Documents, as
the Administrative Agent or any Lender may from time to time reasonably request.

     Documents required to be delivered pursuant to Section 6.01(a) or (b) or Section
6.02(b) (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 on the
Borrower’s website on the Internet at the website address listed on Schedule 10.02; or (ii)
on which such documents are posted on the Borrower’s behalf on an Internet or intranet website, if
any, to which each Lender and the Administrative Agent have access (whether a commercial,
third-party website or whether sponsored by the Administrative Agent); provided that: (i)
the Borrower shall deliver paper copies of such documents to the Administrative Agent or any Lender
that requests the Borrower to deliver such paper copies until a written request to cease delivering
paper copies is given by the Administrative Agent or such Lender and (ii) the Borrower shall notify
the Administrative Agent and each Lender (by telecopier or electronic mail) of the posting of any
such documents and provide to the Administrative Agent by electronic mail electronic versions
(i.e., soft copies) of such documents. Notwithstanding anything contained herein, in every
instance the Borrower shall be required to provide paper copies of the Compliance Certificates
required by Section 6.02(a) to the Administrative Agent. Except for such Compliance
Certificates, the Administrative Agent shall have no obligation to request the delivery or to
maintain copies of the documents referred to above, and in any event shall have no responsibility
to monitor compliance by the Borrower with any such request for delivery, and each Lender shall be
solely responsible for requesting delivery to it or maintaining its copies of such documents.

     The Borrower hereby acknowledges that (a) the Administrative Agent and/or the Joint Arrangers
will make available to the Lenders and the L/C Issuer materials and/or information provided by or
on behalf of the Borrower hereunder (collectively, “Borrower Materials”) by posting the
Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and
(b) certain of the Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to receive
material non-public information with respect to the Borrower or its securities) (each, a
“Public Lender”). The Borrower hereby agrees that so long as the Borrower is the issuer of
any outstanding debt or equity securities that are registered or issued pursuant to a private
offering or is actively contemplating issuing any such securities (w) all Borrower Materials that
are to be made available to Public Lenders shall be clearly and conspicuously marked “PUBLIC”
which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page
thereof; (x) by marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to have
authorized the Administrative Agent, the Joint Arrangers, the L/C Issuer and the Lenders to treat
such Borrower Materials as not containing any material non-public information with respect to the
Borrower or its securities for purposes of United States Federal and state securities laws
(provided, however, that to the extent such Borrower Materials constitute
Information, they shall be treated as set forth in Section 10.07); (y) all Borrower
Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform
designated “Public Investor;” and (z) the Administrative Agent and the Joint Arrangers will treat
any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion
of the Platform not designated “Public Investor.”

     6.03. Notices. Promptly notify the Administrative Agent and each Lender:

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     (a) of the occurrence of any Default;

     (b) of any matter that has resulted or could reasonably be expected to result in a Material
Adverse Effect, including (i) breach or non-performance of, or any default under, a Contractual
Obligation of the Borrower or any Subsidiary; (ii) any dispute, litigation, investigation,
proceeding or suspension between the Borrower or any Subsidiary and any Governmental Authority; or
(iii) the commencement of, or any material adverse development in, any litigation or proceeding
affecting the Borrower or any Subsidiary, including pursuant to any applicable Environmental Laws;

     (c) of the occurrence of any ERISA Event; and

     (d) of any material change in accounting policies or financial reporting practices by the
Borrower or any Subsidiary (other than a change to a cost accounting method).

     Each notice pursuant to this Section shall be accompanied by a statement of a Responsible
Officer of the Borrower setting forth details of the occurrence referred to therein and stating
what action the Borrower has taken and proposes to take with respect thereto. Each notice pursuant
to Section 6.03(a) shall describe with particularity any and all provisions of this
Agreement and any other Loan Document that have been breached.

     6.04. Payment of Obligations. Pay and discharge as the same shall become due and payable, all
its obligations and liabilities, including (a) all tax liabilities, assessments and governmental
charges or levies upon it or its properties or assets, unless the same are being contested in good
faith by appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP
are being maintained by the Borrower or such Subsidiary, (b) all lawful claims which, if unpaid,
would by law become a Lien upon its property, and (c) all Indebtedness, as and when due and
payable, but subject to any subordination provisions contained in any instrument or agreement
evidencing such Indebtedness, except in all of the foregoing clauses (a) through (c) where the
failure to pay could not reasonably be expected to result in a Material Adverse Effect.
Notwithstanding the foregoing, with respect to Liens or charges securing an amount less than
$1,000,000, the Borrower and its Subsidiaries shall have 60 days grace to accomplish such discharge
from the date the Borrower becomes aware of such Lien or charge; provided that the Borrower
and each Subsidiary of the Borrower will pay all such taxes, assessments, charges, levies or claims
forthwith upon the commencement of proceedings to foreclose any Lien that may have attached as
security therefor.

     6.05. Preservation of Existence, Etc. (a) Preserve, renew and maintain in full force and
effect its legal existence and good standing under the Laws of the jurisdiction of its organization
except in a transaction permitted by Section 7.02 or, with respect to any Subsidiary of the
Borrower, to the extent the failure to do so could not reasonably be expected to have a Material
Adverse Effect; (b) take all reasonable action to maintain all rights, privileges, permits,
licenses and franchises necessary or desirable in the normal conduct of its business, except to the
extent that failure to do so could not reasonably be expected to have a Material Adverse Effect;
and (c) preserve or renew all of its registered patents, trademarks, trade names and service marks,
the non-preservation of which could reasonably be expected to have a Material Adverse Effect.
Notwithstanding the foregoing, nothing in this Section shall prevent the Borrower from dissolving
or disposing of a Subsidiary, if such dissolution or disposition (i) is, in the judgment of the
Borrower, desirable in the conduct of its business and (ii) could not reasonably be expected to
have a Material Adverse Effect.

     6.06. Maintenance of Properties. (a) Maintain, preserve and protect all of its material
properties and equipment necessary in the operation of its business in good working order and
condition, ordinary wear and tear excepted; (b) make all necessary repairs thereto and renewals and
replacements

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thereof except where the failure to do so could not reasonably be expected to have a Material
Adverse Effect; and (c) use the standard of care typical in the industry in the operation and
maintenance of its facilities. Notwithstanding the foregoing, nothing in this Section shall prevent
the Borrower or any of its Subsidiaries from discontinuing the operation and maintenance of any of
its businesses or properties, if such discontinuance (i) is, in the judgment of the Borrower and
its Subsidiaries, desirable in the conduct of its or their business and (ii) could not reasonably
be expected to have a Material Adverse Effect.

     6.07. Maintenance of Insurance. Maintain with financially sound and reputable insurance
companies not Affiliates of the Borrower, insurance with respect to its properties and business
against loss or damage of the kinds customarily insured against by Persons engaged in the same or
similar business, of such types and in such amounts (after giving effect to any self-insurance
compatible with the following standards) as are customarily carried under similar circumstances by
such other Persons.

     6.08. Compliance with Laws. Comply in all material respects with the requirements of all Laws
and all orders, writs, injunctions and decrees applicable to it or to its business or property,
except in such instances in which (a) such requirement of Law or order, writ, injunction or decree
is being contested in good faith by appropriate proceedings diligently conducted; or (b) the
failure to comply therewith could not reasonably be expected to have a Material Adverse Effect.

     6.09. Books and Records. (a) Maintain proper books of record and account, in which full, true
and correct entries in conformity with GAAP consistently applied (except as a result of a change to
its method of accounting to a cost accounting method) shall be made of all financial transactions
and matters involving the assets and business of the Borrower or such Subsidiary, as the case may
be; and (b) maintain such books of record and account in material conformity with all applicable
requirements of any Governmental Authority having regulatory jurisdiction over the Borrower or such
Subsidiary, as the case may be.

     6.10. Inspection Rights. Permit representatives and independent contractors of the
Administrative Agent and each Lender to visit and inspect any of its material properties, to
examine its corporate, financial and operating records, and make copies thereof or abstracts
therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and
independent public accountants, all at such reasonable times during normal business hours and as
often as may be reasonably desired, upon reasonable advance notice to the Borrower;
provided, however, that when an Event of Default exists the Administrative Agent or
any Lender (or any of their respective representatives or independent contractors) may do any of
the foregoing at the expense of the Borrower at any time during normal business hours and without
advance notice. Notwithstanding the foregoing, prior to the occurrence of a Default, the
Administrative Agent, the Lender, or their respective representatives and independent contractors
will obtain the prior approval of a Responsible Officer of the Borrower, which approval shall not
be unreasonably withheld, prior to any such discussions with officers of the Borrower or any of its
Subsidiaries.

     6.11. Use of Proceeds. Use the proceeds of the Credit Extensions for working capital and
other general corporate purposes not in contravention of any Law or of any Loan Document, including
stock repurchases and acquisitions permitted hereunder.

     6.12. Additional Guarantors. In the event that the Obligor Assets do not equal or exceed the
Obligor Group Threshold Percentage, as evidenced by the most recent Compliance Certificate
delivered by the Borrower pursuant to Section 6.02(a), the Borrower shall cause, within 30
days of the date such Compliance Certificate is required to be delivered pursuant to Section
6.02(a), the Subsidiary or Subsidiaries (as the case may be) to become a Guarantor hereunder as
would be necessary to cause the Obligor Assets to equal or exceed the Obligor Group Threshold
Percentage. The Borrower shall cause

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such additional Subsidiaries to become a Guarantor hereunder by causing them to execute and
deliver a Guaranty and to deliver such legal opinions and other documents and instruments as the
Administrative Agent may reasonably request.

     6.13. Business Activities. The Borrower and its Subsidiaries, taken as a whole, will continue
to engage in the business conducted by the Borrower and its Subsidiaries on the Closing Date.

     6.14. Further Assurances. The Borrower will, and will cause each of its Subsidiaries to,
execute such further instruments and documents as the Administrative Agent shall reasonably request
to carry out more effectively the purposes of this Agreement and the other Loan Documents.

ARTICLE VII.

NEGATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, the
Borrower shall not, nor shall it permit any Subsidiary to, directly or indirectly:

     7.01. Liens. Create, incur, assume or suffer to exist any Lien upon any of its property,
assets or revenues, whether now owned or hereafter acquired, other than the following:

     (a) Liens pursuant to any Loan Document;

     (b) Liens existing on the date hereof (other than blanket Liens on the Borrower’s or its
Subsidiary’s inventory or accounts receivable);

     (c) Liens (other than blanket Liens on the Borrower’s or its Subsidiaries’ equipment,
inventory, accounts or other receivables), securing Indebtedness of the Borrower and its
Subsidiaries not to exceed 5% of the Consolidated Tangible Net Worth of the Borrower and its
Subsidiaries;

     (d) Liens for taxes or assessments either not yet delinquent or the validity or amount of
which is being contested in good faith by appropriate proceedings diligently prosecuted and as to
which adequate reserves shall have been set aside in conformity with GAAP;

     (e) deposits or pledges to secure the payment of workers compensation, unemployment insurance
or other social security benefits or obligations, or to secure the performance of bids, trade
contracts, public or statutory obligations, surety or appeal bonds and other obligations of a like
nature incurred in the ordinary course of business;

     (f) materialmen’s, mechanic’s, workmen’s, repairmen’s, or other Liens of a like nature arising
in the ordinary course of business or by operation of law to secure obligations not yet delinquent
or which within 30 days of receipt by the Borrower or any of its Subsidiaries of any Lien filing by
a Lien claimant are (i) being contested by the Borrower or such Subsidiary in good faith and for
which adequate reserves shall have been set aside in conformity with GAAP or (ii) as to which
adequate bonds shall have been obtained;

     (g) Liens securing Indebtedness of the Borrower and its Subsidiaries represented by
Capitalized Lease obligations, Synthetic Lease Obligations, mortgage financings or purchase money
obligations, in each case incurred for the purpose of financing or refinancing all or any part of
the purchase price or costs of construction, repairs, renovation, remodeling, expansion or other
improvement

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of property, plant and equipment, including services and equipment supporting such items used
in Borrower’s business or any Subsidiary’s business; provided that,

     (i) no such Lien shall extend to or cover any other property or assets of the Borrower
or of any Subsidiary, as the case may be, and

     (ii) the aggregate principal amount of the Indebtedness secured by all such liens in
respect of any such property or assets shall not exceed the greater of (A) the fair market
value of such property or assets at the time of such acquisition, or (B) the good faith
allocated purchase price of such assets;

     (h) consensual landlord’s Liens and landlord’s Liens arising by operation of law

     (i) Liens on or pledges of cash or cash equivalents securing the obligations of the Borrower
or any Subsidiary under or in connection with any Swap Contract, so long as the aggregate amount of
all cash or cash equivalents subject to such Liens or pledges does not exceed $25,000,000 at any
time;

     (j) judgment liens in respect of judgments that do not constitute an Event of Default under
Section 8.01(h);

     (k) any Lien on property or assets of the Borrower or any Subsidiary in favor of the Borrower
or any Subsidiary; and

     (l) easements, zoning restrictions, rights-of-way and similar encumbrances on real property
imposed by law or arising in the ordinary course of business that do not secure any monetary
obligations and do not materially detract from the value of the affected property or interfere with
the ordinary conduct of business of the Borrower or any Subsidiary.

     7.02. Fundamental Changes. Merge, dissolve, liquidate, consolidate with or into another
Person, or Dispose of (whether in one transaction or in a series of transactions) all or
substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any
Person, except that, so long as no Default exists or would result therefrom:

     (a) any Subsidiary may Dispose of all or substantially all of its assets (upon voluntary
liquidation or otherwise) to the Borrower or to another Subsidiary; provided that if the
transferor in such a transaction is a Guarantor, then the transferee must either be the Borrower or
a Guarantor; and

     (b) any Subsidiary may merge with (i) the Borrower, provided that the Borrower shall
be the continuing or surviving Person, or (ii) any one or more other Subsidiaries, provided
that when any Guarantor is merging with another Subsidiary, the Guarantor shall be the continuing
or surviving Person.

     Notwithstanding the foregoing, nothing in this Section shall prevent the Borrower from
dissolving or disposing of a Subsidiary, if such dissolution or disposition (i) is, in the judgment
of the Borrower, desirable in the conduct of its business and (ii) could not reasonably be expected
to have a Material Adverse Effect.

     7.03. Burdensome Agreements. Enter into any Contractual Obligation (other than this Agreement
or any other Loan Document) that (a) limits the ability (i) of any Subsidiary to make Restricted
Payments to the Borrower or any Guarantor or to otherwise transfer property to the Borrower or any
Guarantor, (ii) of any Subsidiary to Guarantee the Indebtedness of the Borrower or (iii) of the
Borrower or any Subsidiary to create, incur, assume or suffer to exist Liens on property of such
Person;

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provided, however, that this clause (iii) shall not prohibit any negative
pledge granted to any Person prohibiting any such Lien on assets in which such Person has a prior
security interest which is permitted by Section 7.01; or (b) requires the grant of a Lien
to secure an obligation of such Person if a Lien is granted to secure another obligation of such
Person.

     7.04. Use of Proceeds. (a) Use the proceeds of any Credit Extension, whether directly or
indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock
(within the meaning of Regulation U of the FRB) or to extend credit to others for the purpose of
purchasing or carrying margin stock or to refund indebtedness originally incurred for such purpose
in violation of Regulation U of the FRB or (b) following the application of the proceeds of each
Borrowing or drawing under each Letter of Credit, permit more than 25% of the value of the assets
(either of the Borrower only or of the Borrower and its Subsidiaries on a consolidated basis)
subject to the provisions of Section 7.01 or subject to any restriction contained in any
agreement or instrument between the Borrower and any Lender or any Affiliate of any Lender relating
to Indebtedness and within the scope of Section 8.01(e), to be margin stock. The Borrower
will not hold repurchased shares of its common stock purchased with the proceeds of any Credit
Extension as treasury stock if, after giving effect to such action, the Borrower, any Lender or any
Credit Extension pursuant to this Agreement would be in violation of Regulation U, and upon the
Borrower’s repurchase of shares of its common stock using the proceeds of any Credit Extension, it
will immediately cancel and retire such stock to the extent necessary to comply with Regulation U.

     7.05. Financial Covenants.

     (a) Consolidated Fixed Charge Coverage Ratio. Permit the Consolidated Fixed Charge Coverage
Ratio as of the end of any fiscal quarter of the Borrower to be less than 2.0:1.0.

     (b) Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio as of the end of any
fiscal quarter of the Borrower to be greater than 3.5:1.0.

ARTICLE VIII.

EVENTS OF DEFAULT AND REMEDIES

     8.01. Events of Default. Any of the following shall constitute an Event of Default:

     (a) Non-Payment. The Borrower or any other Loan Party fails to pay (i) when and as
required to be paid herein, and in the currency required hereunder, any amount of principal of any
Loan or any L/C Obligation, or (ii) within 5 Business Days after receipt of written notice from the
Administrative Agent that the same shall have become due, interest on any Loan or on any L/C
Obligation, any fee due hereunder, or any other amount payable hereunder or under any other Loan
Document; or

     (b) Specific Covenants. The Borrower fails to perform or observe any term, covenant
or agreement contained in Article VII; or

     (c) Other Defaults. Any Loan Party fails to perform or observe any other covenant or
agreement (not specified in subsection (a) or (b) above) contained in any Loan Document on its part
to be performed or observed and such failure continues for 30 days after written notice of such
failure has been given to the Borrower by the Administrative Agent; or

     (d) Representations and Warranties. Any representation, warranty, certification or
statement of fact made or deemed made by or on behalf of the Borrower or any other Loan Party
herein, in any other Loan Document, or in any document delivered in connection herewith or
therewith shall prove to

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have been false in any material respect upon the date when made or deemed to have been made or
repeated; or

     (e) Cross-Default. (i) Any event or condition occurs in respect of any Indebtedness
or Guarantee (other than Indebtedness hereunder and Indebtedness under Swap Contracts) of any Loan
Party having an aggregate principal amount (including undrawn committed or available amounts and
including amounts owing to all creditors under any combined or syndicated credit arrangement) of
more than the Threshold Amount, the effect of which event or condition is to cause, or to permit
the holder or holders of such Indebtedness or the beneficiary or beneficiaries of such Guarantee
(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 be demanded or to become due or
to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to
repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity,
or such Guarantee to become payable or cash collateral in respect thereof to be demanded; or (ii)
there occurs under any Swap Contract an Early Termination Date (as defined in such Swap Contract)
resulting from (A) any event of default under such Swap Contract as to which any Loan Party is the
Defaulting Party (as defined in such Swap Contract) or (B) any Termination Event (as so defined)
under such Swap Contract as to which any Loan Party is an Affected Party (as so defined) and, in
either event, the Swap Termination Value owed by such Loan Party as a result thereof is greater
than the Threshold Amount; or

     (f) Insolvency Proceedings, Etc. Any Loan Party institutes or consents to the
institution of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit
of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of
its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or
similar officer is appointed without the application or consent of such Person and the appointment
continues undischarged or unstayed for 60 calendar days; or any proceeding under any Debtor Relief
Law relating to any such Person or to all or any material part of its property is instituted
without the consent of such Person and continues undismissed or unstayed for 60 calendar days, or
an order for relief is entered in any such proceeding; or

     (g) Inability to Pay Debts; Attachment. (i) Any Loan Party becomes unable or admits
in writing its inability or fails generally to pay its debts as they become due, or (ii) any writ
or warrant of attachment or execution or similar process is issued or levied against all or any
material part of the property of any such Person and is not released, vacated or fully bonded
within 45 days after its issue or levy; or

     (h) Judgments. There is entered against any Loan Party a final judgment or order for
the payment of money in an aggregate amount exceeding the Threshold Amount (to the extent not
covered by independent third-party insurance as to which the insurer does not dispute coverage) and
(i) enforcement proceedings are commenced by any creditor upon such judgment or order, or (ii) such
judgment or order shall remain undischarged for a period of 60 (whether or not consecutive) days
during which execution shall not be effectively stayed, vacated or bonded; or

     (i) ERISA. (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer
Plan which has resulted or could reasonably be expected to result in liability of the Borrower
under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount
in excess of the Threshold Amount, or (ii) the Borrower or any ERISA Affiliate fails to pay when
due, after the expiration of any applicable grace period, any installment payments with respect to
its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate
amount in excess of the Threshold Amount; or

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     (j) Invalidity of Loan Documents. Any provision of any Loan Document, at any time
after its execution and delivery and for any reason other than as expressly permitted hereunder or
thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect;
or any Loan Party or any other Person contests in any manner the validity or enforceability of any
provision of any Loan Document; or any Loan Party denies that it has any or further liability or
obligation under any Loan Document, or purports to revoke, terminate or rescind any provision of
any Loan Document; or

     (k) Change of Control. There occurs any Change of Control.

     8.02. Remedies Upon Event of Default. If any Event of Default occurs and is continuing, the
Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders,
take any or all of the following actions:

     (a) by notice in writing to the Borrower, declare the commitment of each Lender to make Loans
and any obligation of the L/C Issuer to make L/C Credit Extensions to be terminated, whereupon such
commitments and obligation shall be terminated;

     (b) by notice in writing to the Borrower, declare the unpaid principal amount of all
outstanding Loans, all interest accrued and unpaid thereon, and all other amounts owing or payable
hereunder or under any other Loan Document to be immediately due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby expressly waived by the
Borrower;

     (c) by notice in writing to the Borrower, require that the Borrower Cash Collateralize the L/C
Obligations (in an amount equal to the then Outstanding Amount thereof); and

     (d) exercise on behalf of itself and the Lenders all other rights and remedies available to it
and the Lenders under the Loan Documents and the Administrative Agent, if required by applicable
law, shall give written notice thereof to the Borrower;

provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to the Borrower under the Bankruptcy Code of the United States, the
obligation of each Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit
Extensions shall automatically terminate, the unpaid principal amount of all outstanding Loans and
all interest and other amounts as aforesaid shall automatically become due and payable, and the
obligation of the Borrower to Cash Collateralize the L/C Obligations as aforesaid shall
automatically become effective, in each case without further act of the Administrative Agent or any
Lender.

     8.03. Application of Funds. After the exercise of remedies provided for in Section
8.02 (or after the Loans have automatically become immediately due and payable and the L/C
Obligations have automatically been required to be Cash Collateralized as set forth in the proviso
to Section 8.02), any amounts received on account of the Obligations shall be applied by
the Administrative Agent in the following order:

     First, to payment of that portion of the Obligations constituting fees, indemnities,
expenses and other amounts payable hereunder (including fees, charges and disbursements of counsel
to the Administrative Agent and amounts payable under Article III) payable to the
Administrative Agent in its capacity as such;

     Second, to payment of that portion of the Obligations constituting fees, indemnities
and other amounts (other than principal, interest and Letter of Credit Fees) payable hereunder to
the Lenders and the L/C Issuer (including actual, out-of-pocket fees, charges and disbursements of
counsel to the

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respective Lenders and the L/C Issuer and amounts payable under Article III), ratably
among them in proportion to the respective amounts described in this clause Second payable
to them;

     Third, to payment of that portion of the Obligations constituting accrued and unpaid
Letter of Credit Fees and interest on the Loans, L/C Borrowings and other Obligations, ratably
among the Lenders and the L/C Issuer in proportion to the respective amounts described in this
clause Third payable to them;

     Fourth, to payment of that portion of the Obligations constituting unpaid principal of
the Loans and L/C Borrowings, ratably among the Lenders and the L/C Issuer in proportion to the
respective amounts described in this clause Fourth held by them;

     Fifth, to the Administrative Agent for the account of the L/C Issuer, to Cash
Collateralize that portion of L/C Obligations comprised of the aggregate undrawn amount of Letters
of Credit, to the extent not already Cash Collateralized hereunder; and

     Last, the balance, if any, after all of the Obligations have been indefeasibly paid in
full, to the Borrower or as otherwise required by Law.

     Subject to Section 2.04(c), amounts used to Cash Collateralize the aggregate undrawn
amount of Letters of Credit pursuant to clause Fifth above shall be applied to satisfy
drawings under such Letters of Credit as they occur. If any amount remains on deposit as Cash
Collateral after all Letters of Credit have either been fully drawn or expired, such remaining
amount shall be applied to the other Obligations, if any, in the order set forth above.

ARTICLE IX.

ADMINISTRATIVE AGENT

     9.01. Appointment and Authority. Each of the Lenders and the L/C Issuer hereby irrevocably
appoints Bank of America to act on its behalf as the Administrative Agent hereunder and under the
other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and
to exercise such powers as are delegated to the Administrative Agent by the terms hereof or
thereof, together with such actions and powers as are reasonably incidental thereto. The
provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and
the L/C Issuer, and the Borrower shall not have rights as a third party beneficiary of any of such
provisions, other than as provided in Sections 9.06 and 9.11.

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

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

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

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

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

     The Administrative Agent shall not be liable for any action taken or not taken by it (i) with
the consent or at the request of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be
necessary, under the circumstances as provided in Sections 10.01 and 8.02) or (ii)
in the absence of its own gross negligence or willful misconduct. The Administrative Agent shall
be deemed not to have knowledge of any Default unless and until notice describing such Default is
given to the Administrative Agent by the Borrower, a Lender or the L/C Issuer.

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

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

     9.05. Delegation of Duties. The Administrative Agent may perform any and all of its duties
and exercise its rights and powers hereunder or under any other Loan Document by or through any one
or

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

     9.06. Resignation of Administrative Agent. The Administrative Agent may at any time give
written notice of its resignation to the Lenders, the L/C Issuer and the Borrower. Upon receipt of
any such notice of resignation, the Borrower shall have the right, with the consent of the Required
Lenders (which consent shall not be unreasonably withheld, conditioned or delayed), to appoint a
successor, which shall be a bank with an office in the United States, or an Affiliate of any such
bank with an office in the United States. If no such successor shall have been so appointed by the
Borrower (with the consent of the Required Lenders) and shall have accepted such appointment within
30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may on behalf of the Lenders and the L/C Issuer, appoint a successor
Administrative Agent meeting the qualifications set forth above; provided that if the
Administrative Agent shall notify the Borrower and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become effective in accordance
with such notice and (a) the retiring Administrative Agent shall be discharged from its duties and
obligations hereunder and under the other Loan Documents and (b) all payments, communications and
determinations provided to be made by, to or through the Administrative Agent shall instead be made
by or to each Lender and the L/C Issuer directly, until such time as the Borrower appoints (with
the consent of the Required Lenders) a successor Administrative Agent as provided for above in this
Section. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such
successor shall succeed to and become vested with all of the rights, powers, privileges and duties
of the retiring (or retired) Administrative Agent, and the retiring Administrative Agent shall be
discharged from all of its duties and obligations hereunder or under the other Loan Documents (if
not already discharged therefrom as provided above in this Section). The fees payable by the
Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Borrower and such successor. After the retiring Administrative
Agent’s resignation hereunder and under the other Loan Documents, the provisions of this Article
and Section 10.04 shall continue in effect for the benefit of such retiring Administrative
Agent, its sub-agents and their respective Related Parties in respect of any actions taken or
omitted to be taken by any of them while the retiring Administrative Agent was acting as
Administrative Agent.

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

     9.07. Non-Reliance on Administrative Agent and Other Lenders. Each Lender and the L/C Issuer
acknowledges that it has, independently and without reliance upon the Administrative Agent or any
other Lender or any of their Related Parties and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each
Lender and the L/C Issuer also acknowledges that it will, independently and without reliance upon
the Administrative Agent or any other Lender or any of their Related Parties and based on such
documents

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and information as it shall from time to time deem appropriate, continue to make its own
decisions in taking or not taking action under or based upon this Agreement, any other Loan
Document or any related agreement or any document furnished hereunder or thereunder.

     9.08. No Other Duties, Etc. Anything herein to the contrary notwithstanding, none of the
Joint Arrangers, Syndication Agent or Co-Documentation Agent listed on the cover page hereof shall
have any powers, duties or responsibilities under this Agreement or any of the other Loan
Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or the L/C
Issuer hereunder.

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

     (a) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans, L/C Obligations and all other Obligations that are owing and unpaid
and to file such other documents as may be necessary or advisable in order to have the claims of
the Lenders, the L/C Issuer and the Administrative Agent (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Lenders, the L/C Issuer and the
Administrative Agent and their respective agents and counsel and all other amounts due the Lenders,
the L/C Issuer and the Administrative Agent under Sections 2.04(i) and (j), 2.10
and 10.04) allowed in such judicial proceeding; and

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

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender and the L/C Issuer to make such
payments to the Administrative Agent and, in the event that the Administrative Agent shall consent
to the making of such payments directly to the Lenders and the L/C Issuer, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and
advances of the Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 2.10 and 10.04.

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

     9.10. Guaranty Matters. The Lenders and the L/C Issuer irrevocably authorize the
Administrative Agent, at its option and in its discretion, to release any Guarantor from its
obligations under the Guaranty if such Person ceases to be a Subsidiary as a result of a
transaction permitted hereunder. Upon request by the Administrative Agent at any time, the
Required Lenders will confirm in writing the Administrative Agent’s authority to release any
Guarantor from its obligations under the Guaranty pursuant to this Section 9.10.

     9.11. Reliance by the Borrower. The Borrower shall be entitled to rely upon, and to act or
refrain from acting on the basis of, any written notice, statement, certificate, waiver or other
document or

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instrument delivered by the Administrative Agent to the Borrower so long as the Administrative
Agent is purporting to act in its capacity as the Administrative Agent pursuant to this Agreement
and specifies in such written notice, statement, certificate, waiver or other document or
instrument that any required approvals or consents from the Lenders or Required Lenders, as
applicable, have been obtained pursuant to the terms hereof, and the Borrower shall not be
responsible or liable to any Lender (or to any Participant or Assignee) as a result of any action
or failure to act (including actions or omissions which would otherwise constitute defaults
hereunder) which is based upon such reliance upon the Administrative Agent. The Borrower shall be
entitled to treat the Administrative Agent as the properly authorized Administrative Agent pursuant
to this Agreement until the Borrower shall have received notice of resignation, and the Borrower
shall not be obligated to recognize any successor Administrative Agent until the Borrower shall
have received written notification of the appointment of such successor.

ARTICLE X.

MISCELLANEOUS

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

     (a) waive any condition set forth in Section 4.01(a) without the written consent of
each Lender;

     (b) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated
pursuant to Section 8.02) without the written consent of such Lender;

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

     (d) reduce the principal of, or the rate of interest specified herein on, any Loan or L/C
Borrowing, or (subject to clause (iv) of the second proviso to this Section 10.01) any fees
or other amounts payable hereunder or under any other Loan Document, or change the manner of
computation of any financial ratio (including any change in any applicable defined term) used in
determining the Applicable Rate that would result in a reduction of any interest rate on any Loan
or any fee payable hereunder without the written consent of each Lender directly affected thereby;
provided, however, that only the consent of the Required Lenders shall be necessary
to amend the definition of “Default Rate” or to waive any obligation of the Borrower to pay
interest or Letter of Credit Fees at the Default Rate;

     (e) change Section 2.14 or Section 8.03 in a manner that would alter the pro
rata sharing of payments required thereby without the written consent of each Lender;

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

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     (g) except as set forth in Section 9.10, release all or substantially all of the value
of the Guaranty without the written consent of each Lender; or

     (h) amend Section 1.09 or the definition of “Alternative Currency” without the written
consent of each Lender.

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

10.02. Notices; Effectiveness; Electronic Communication.

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

     (i) if to the Borrower, the Administrative Agent, the L/C Issuer or the Swing Line
Lender, to the address, telecopier number, electronic mail address or telephone number
specified for such Person on Schedule 10.02; and

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

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

     (b) Electronic Communications. Notices and other communications to the Lenders and
the L/C Issuer hereunder may be delivered or furnished by electronic communication (including
e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative
Agent, provided that the foregoing shall not apply to notices to any Lender or the L/C
Issuer pursuant to Article II if such Lender or the L/C Issuer, as applicable, has notified
the Administrative Agent that it is incapable of receiving notices under such Article by electronic
communication. The Administrative Agent or the Borrower may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications pursuant to
procedures approved by it, provided that approval of such procedures may be limited to
particular notices or communications.

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

     (c) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR
THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE
BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE
BORROWER MATERIALS OR THE PLATFORM. In no event shall the Administrative Agent or any of its
Related Parties (collectively, the “Agent Parties”) have any liability to the Borrower, any
Lender, the L/C Issuer or any other Person for losses, claims, damages, liabilities or expenses of
any kind (whether in tort, contract or otherwise) arising out of the Borrower’s or the
Administrative Agent’s transmission of Borrower Materials through the Internet, except to the
extent that such losses, claims, damages, liabilities or expenses are determined by a court of
competent jurisdiction by a final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Agent Party; provided, however, that in no
event shall any Agent Party have any liability to the Borrower, any Lender, the L/C Issuer or any
other Person for indirect, special, incidental, consequential or punitive damages (as opposed to
direct or actual damages).

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

     (e) Reliance by Administrative Agent, L/C Issuer and Lenders. The Administrative
Agent, the L/C Issuer and the Lenders shall be entitled to rely and act upon any notices (including
telephonic Committed Loan Notices and Swing Line Loan Notices) purportedly given by or on behalf of
the Borrower even if (i) such notices were not made in a manner specified herein, were incomplete
or were not preceded or followed by any other form of notice specified herein, or (ii) the terms
thereof, as understood by the recipient, varied from any confirmation thereof. The Borrower shall
indemnify the Administrative Agent, the L/C Issuer, each Lender and the Related Parties of each of
them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on
each notice purportedly given by or on behalf of the Borrower, except to the extent such losses,
costs, expenses and liabilities resulted from the gross negligence or willful misconduct of such
Person.

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     10.03. No Waiver; Cumulative Remedies. No failure by any Lender, the L/C Issuer or the
Administrative Agent to exercise, and no delay by any such Person in exercising, 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.

	     10.04.	 	Expenses; Indemnity; Damage Waiver.

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

     (b) Indemnification by the Borrower. The Borrower shall indemnify the Administrative
Agent (and any sub-agent thereof), each Lender and the L/C Issuer, and each Related Party of any of
the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold
each Indemnitee harmless from, any and all actual and direct losses, claims, damages, liabilities
and related expenses (including the reasonable fees, charges and disbursements of any counsel for
any Indemnitee), incurred by any Indemnitee or awarded against any Indemnitee by any third party or
by the Borrower or any other Loan Party arising out of, in connection with, or by reason of (i) the
execution or delivery of this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby or thereby, the performance by the parties hereto of their respective
obligations hereunder or thereunder, the consummation of the transactions contemplated hereby or
thereby, or, in the case of the Administrative Agent (and any sub-agent thereof) and its Related
Parties only, the administration of this Agreement and the other Loan Documents, (ii) any Loan or
Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by the
L/C Issuer to honor a demand for payment under a Letter of Credit if the documents presented in
connection with such demand do not strictly comply with the terms of such Letter of Credit), or
(iii) any actual or prospective claim, litigation, investigation or proceeding relating to any of
the foregoing, whether based on contract, tort or any other theory, whether brought by a third
party or by the Borrower or any other Loan Party, and regardless of whether any Indemnitee is a
party thereto, in all cases, whether or not caused by or arising, in whole or in part, out of
the comparative, contributory or sole negligence of the Indemnitee; provided that such
indemnity and hold harmless agreement shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by the
Borrower or any other Loan Party against an Indemnitee for breach of such Indemnitee’s obligations
hereunder or under any other Loan Document, if

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the Borrower or such Loan Party has obtained a final and nonappealable judgment in its favor
on such claim as determined by a court of competent jurisdiction.

     (c) Reimbursement by Lenders. To the extent that the Borrower for any reason fails to
indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by it
to the Administrative Agent (or any sub-agent thereof), the L/C Issuer or any Related Party of any
of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such
sub-agent), the L/C Issuer or such Related Party, as the case may be, such Lender’s Applicable
Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment
is sought) of such unpaid amount, provided that the unreimbursed expense or indemnified
loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted
against the Administrative Agent (or any such sub-agent) or the L/C Issuer in its capacity as such,
or against any Related Party of any of the foregoing acting for the Administrative Agent (or any
such sub-agent) or L/C Issuer in connection with such capacity. The obligations of the Lenders
under this subsection (c) are subject to the provisions of Section 2.13(d).

     (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable law, no party hereto or any Related Party thereof shall assert, and each such Person
hereby waives, any claim against any other such Person, on any theory of liability, for special,
indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out
of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement
or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or
Letter of Credit or the use of the proceeds thereof. In the absence of gross negligence or willful
misconduct, no party hereto or any Related Party thereof shall be liable for any damages arising
from the use by unintended recipients of any information or other materials distributed by it
through telecommunications, electronic or other information transmission systems in connection with
this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.

     (e) Payments. All amounts due under this Section shall be payable not later than 20
Business Days after written demand therefor.

     (f) Survival. The agreements in this Section shall survive the resignation of the
Administrative Agent and the L/C Issuer, the replacement of any Lender, the termination of the
Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations.

     10.05. Payments Set Aside. To the extent that any payment by or on behalf of the Borrower is
made to the Administrative Agent, the L/C Issuer or any Lender, or the Administrative Agent, the
L/C Issuer or any Lender exercises its right of setoff, and such payment or the proceeds of such
setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential,
set aside or required (including pursuant to any settlement entered into by the Administrative
Agent, the L/C Issuer or such Lender in its discretion) to be repaid to a trustee, receiver or any
other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a)
to the extent of such recovery, the obligation or part thereof originally intended to be satisfied
shall be revived and continued in full force and effect as if such payment had not been made or
such setoff had not occurred, and (b) each Lender and the L/C Issuer severally agrees to pay to the
Administrative Agent upon demand its applicable share (without duplication) of any amount so
recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such
demand to the date such payment is made at a rate per annum equal to the applicable Overnight Rate
from time to time in effect, in the applicable currency of such recovery or payment. The
obligations of the Lenders and the L/C Issuer under clause (b) of the preceding sentence shall
survive the payment in full of the Obligations and the termination of this Agreement.

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     10.06. Successors and Assigns.

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

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

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

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

     (iii) any assignment of a Commitment must be approved by the Administrative Agent, the
L/C Issuer and the Swing Line Lender unless the Person that is the proposed assignee is
itself a Lender (whether or not the proposed assignee would otherwise qualify as an Eligible
Assignee); and

     (iv) the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation fee in the
amount, if any, required as set forth in Schedule 10.06, and the Eligible Assignee,
if it shall not be

75

 

a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire (a
copy of which shall promptly be provided to the Borrower).

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c)
of this Section, from and after the effective date specified in each Assignment and Assumption, the
Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be
entitled to the benefits of Sections 3.01, 3.04, 3.05, and 10.04
with respect to facts and circumstances occurring prior to the effective date of such assignment.
Upon request, the Borrower (at its expense) shall execute and deliver a Note to the assignee
Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that
does not comply with this subsection shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance with subsection (d) of
this Section.

     (c) Register. The Administrative Agent, acting solely for this purpose as an agent of
the Borrower, shall maintain at the Administrative Agent’s Office a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and addresses of the
Lenders, and the Commitments of, and principal amounts of the Loans and L/C Obligations owing to,
each Lender pursuant to the terms hereof from time to time (the “Register”). The entries
in the Register shall be conclusive, absent manifest error, and the Borrower, the Administrative
Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to the
terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to
the contrary. The Register shall be available for inspection by each of the Borrower and the L/C
Issuer at any reasonable time and from time to time upon reasonable prior notice. In addition, at
any time that a request for a consent for a material or substantive change to the Loan Documents is
pending, any Lender may request and receive from the Administrative Agent a copy of the Register.
Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and
an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee shall
already be a Lender hereunder), the processing and recordation fee referred to in clause
(b)(iv) of this Section and any written consent to such assignment required by this Section,
the Administrative Agent shall accept such Assignment and Assumption and record the information
contained therein in the Register.

     (d) Participations. Any Lender may at any time, without the consent of, or notice to,
the Borrower or the Administrative Agent, sell participations to any Person (other than a natural
person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a
“Participant”) in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans (including such Lender’s
participations in L/C Obligations and/or Swing Line Loans) owing to it); provided that (i)
such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of such obligations and
(iii) the Borrower, the Administrative Agent, the Lenders and the L/C Issuer shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights and obligations under
this Agreement.

     Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in the first proviso to
Section 10.01 that affects such Participant.

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Subject to subsection (e) of this Section, the Borrower agrees that each Participant shall be
entitled to the benefits of Sections 3.01, 3.04 and 3.05 to the same extent
as if it were a Lender and had acquired its interest by assignment pursuant to subsection (b) of
this Section. To the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 10.08 as though it were a Lender, provided such Participant
agrees to be subject to Section 2.13 as though it were a Lender.

     (e) Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Section 3.01, 3.04 or 3.05 than the
applicable Lender would have been entitled to receive with respect to the participation sold to
such Participant. A Participant that would be a Foreign Lender if it were a Lender shall not be
entitled to the benefits of Section 3.01 unless the Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the benefit of the
Borrower, to comply with Section 3.01(e) as though it were a Lender.

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

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

     (h) Resignation as L/C Issuer or Swing Line Lender after Assignment. Notwithstanding
anything to the contrary contained herein, if at any time Bank of America assigns all of its
Commitment and Loans pursuant to subsection (b) above, Bank of America shall, (i) upon 30 days’
notice to the Borrower and the Lenders, resign as L/C Issuer and/or (ii) upon 30 days’ notice to
the Borrower, resign as Swing Line Lender. In the event of any such resignation as L/C Issuer or
Swing Line Lender, the Borrower shall be entitled to appoint from among the Lenders a successor L/C
Issuer or Swing Line Lender hereunder; provided, however, that no failure by the
Borrower to appoint any such successor shall affect the resignation of Bank of America as L/C
Issuer or Swing Line Lender, as the case may be. If Bank of America resigns as L/C Issuer, it
shall retain all the rights, powers, privileges and duties of the L/C Issuer hereunder with respect
to all Letters of Credit outstanding as of the effective date of its resignation as L/C Issuer and
all L/C Obligations with respect thereto (including the right to require the Lenders to make Base
Rate Committed Loans or fund risk participations in Unreimbursed Amounts pursuant to Section
2.03(c)). If Bank of America resigns as Swing Line Lender, it shall retain all the rights of
the Swing Line Lender provided for hereunder with respect to Swing Line Loans made by it and
outstanding as of the effective date of such resignation, including the right to require the
Lenders to make Base Rate Committed Loans or fund risk participations in outstanding Swing Line
Loans pursuant to Section 2.04(c). Upon the appointment of a successor L/C Issuer and/or
Swing Line Lender, (a) such successor shall succeed to and become vested with all of the rights,
powers, privileges and duties of the retiring L/C Issuer or Swing Line Lender, as the case may be,
and (b) the successor L/C Issuer shall issue letters of credit in substitution for the Letters of
Credit, if any, outstanding at the time of such succession or make other arrangements reasonably
satisfactory to Bank of America and the Borrower to effectively assume the obligations of Bank of
America with respect to such Letters of Credit.

77

 

     10.07. Treatment of Certain Information; Confidentiality. Each of the Administrative Agent,
the Lenders and the L/C Issuer agrees to maintain the confidentiality of the Information (as
defined below), except that Information may be disclosed (a) solely in connection with this
Agreement and the transactions contemplated hereby, to its Affiliates and to its and its
Affiliates’ respective partners, directors, officers, employees, agents, advisors and
representatives (it being understood that the Persons to whom such disclosure is made shall keep
such Information confidential), (b) to the extent requested by any regulatory authority purporting
to have jurisdiction over it (including any self-regulatory authority, such as the National
Association of Insurance Commissioners), (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process; provided, however, to the
extent permitted by applicable law, regulation and otherwise, the Borrower is promptly notified in
order that it may seek a protective order or take other appropriate action, (d) to any other party
hereto, (e) to the extent required or deemed advisable by the Administrative Agent, the L/C Issuer
or such Lender, in connection with the exercise of any remedies hereunder or under any other Loan
Document or any action or proceeding relating to this Agreement or any other Loan Document or the
enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations under this Agreement or
(ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction
relating to the Borrower and its obligations, (g) with the consent of the Borrower or (h) to the
extent such Information (x) becomes publicly available other than as a result of a breach of this
Section or (y) becomes available to the Administrative Agent, any Lender, the L/C Issuer or any of
their respective Affiliates on a nonconfidential basis from a source other than the Borrower.

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

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

     10.08. Right of Setoff. If an Event of Default shall have occurred and be continuing, each
Lender, the L/C Issuer and each of their respective Affiliates is hereby authorized at any time and
from time to time, to the fullest extent permitted by applicable law, to set off and apply any and
all deposits (general or special, time or demand, provisional or final, in whatever currency) at
any time held and other obligations (in whatever currency) at any time owing by such Lender, the
L/C Issuer or any such Affiliate to or for the credit or the account of the Borrower against any
and all of the obligations of the Borrower now or hereafter existing under this Agreement or any
other Loan Document to such Lender or the L/C Issuer, irrespective of whether or not such Lender or
the L/C Issuer shall have made any demand under this Agreement or any other Loan Document and
although such obligations of the Borrower may be contingent or unmatured or are owed to a branch or
office of such Lender or the L/C Issuer different from the branch or office holding such deposit or
obligated on such indebtedness. The rights of each Lender, the L/C Issuer and their respective
Affiliates under this Section are in addition to other rights and

78

 

remedies (including other rights of setoff) that such Lender, the L/C Issuer or their
respective Affiliates may have. Each Lender and the L/C Issuer agrees to notify the Borrower and
the Administrative Agent promptly after any such setoff and application, provided that the
failure to give such notice shall not affect the validity of such setoff and application.

     10.09. Interest Rate Limitation. Notwithstanding anything to the contrary contained in any
Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the
maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”). If
the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum
Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the Borrower. In determining whether the interest contracted for,
charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person
may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal
as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the
effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the
total amount of interest throughout the contemplated term of the Obligations hereunder.

     10.10. Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement and the other Loan Documents constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous agreements and
understandings (other than the Fee Letters), oral or written, relating to the subject matter
hereof. Except as provided in Section 4.01, this Agreement shall become effective when it
shall have been executed by the Administrative Agent and when the Administrative Agent shall have
received counterparts hereof that, when taken together, bear the signatures of each of the other
parties hereto. Delivery of an executed counterpart of a signature page of this Agreement by
telecopy shall be effective as delivery of a manually executed counterpart of this Agreement.

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

     10.12. Severability. If any provision of this Agreement or the other Loan Documents is held
to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the
remaining provisions of this Agreement and the other Loan Documents shall not be affected or
impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the
illegal, invalid or unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the illegal, invalid or unenforceable provisions. The
invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

     10.13. Replacement of Lenders. If (a) any Lender requests compensation under Section
3.04, (b) if the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 3.01, (c) if any
Lender is a Defaulting Lender, (d) if any Lender is acquired by or merges with any other Person
(including any other Lender)

79

 

and such Lender is not the surviving Person, or (e) if any Lender fails to approve an
amendment, consent or waiver hereunder which is approved by the Required Lenders, then the Borrower
may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent,
require such Lender to assign and delegate, without recourse (in accordance with and subject to the
restrictions contained in, and consents required by, Section 10.06), all of its interests,
rights and obligations under this Agreement and the related Loan Documents to an assignee that
shall assume such obligations (which assignee may be another Lender, if a Lender accepts such
assignment), provided that:

     (a) the Borrower or the assignee shall have paid to the Administrative Agent the assignment
fee specified in Section 10.06(b);

     (b) such Lender shall have received payment of an amount equal to the outstanding principal of
its Loans and L/C Advances, accrued interest thereon, accrued fees and all other amounts payable to
it hereunder and under the other Loan Documents (including any amounts under Section 3.05)
from the assignee (to the extent of such outstanding principal and accrued interest and fees) or
the Borrower (in the case of all other amounts); and

     (c) such assignment does not conflict with applicable Laws.

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

     10.14. Governing Law; Jurisdiction; Etc.

     (a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW.

     (b) SUBMISSION TO JURISDICTION. PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL
OBLIGATIONS LAW, THE BORROWER IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY,
TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE FEDERAL COURTS
SITTING THEREIN, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF
ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS
IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE
COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE
PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE
AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED
BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE
ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ITS
PROPERTIES IN THE COURTS OF ANY JURISDICTION.

     (c) WAIVER OF VENUE. THE BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE

80

 

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

     (d) SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS
IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02. NOTHING IN THIS AGREEMENT WILL AFFECT
THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

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

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

     10.17. Time of the Essence. Time is of the essence of the Loan Documents.

     10.18. Judgment Currency. If, for the purposes of obtaining judgment in any court, it is
necessary to convert a sum due hereunder or any other Loan Document in one currency into another
currency, the rate of exchange used shall be that at which in accordance with normal banking
procedures the Administrative Agent could purchase the first currency with such other currency on
the Business Day preceding that on which final judgment is given. The obligation of the Borrower
in respect of any such sum due from it to the Administrative Agent or the Lenders hereunder or
under the other Loan Documents shall, notwithstanding any judgment in a currency (the “Judgment
Currency”) other than that in which such sum is denominated in accordance with the applicable
provisions of this Agreement (the “Agreement Currency”), be discharged only to the extent
that on the Business Day following receipt by the Administrative Agent of any sum adjudged to be so
due in the Judgment Currency, the Administrative Agent may in accordance with normal banking
procedures purchase the Agreement Currency with the Judgment Currency. If the amount of the
Agreement Currency so purchased is less than the sum originally due to the Administrative Agent
from the Borrower in the Agreement Currency, the Borrower agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify the Administrative Agent or the Person to whom such
obligation was owing against such loss. If the amount of the

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Agreement Currency so purchased is greater than the sum originally due to the Administrative
Agent in such currency, the Administrative Agent agrees to return the amount of any excess to the
Borrower (or to any other Person who may be entitled thereto under applicable law).

     10.19. Collateral. Each of the Lenders represents to the Administrative Agent, each Loan
Party, and each of the other Lenders that it in good faith is not relying upon any “margin stock”
(as defined in Regulation U of the FRB) as collateral in the extension or maintenance of the credit
provided for in this Agreement.

     10.20. Entire Agreement. This Agreement and the other Loan Documents represent the final
agreement among the parties and may not be contradicted by evidence of prior, contemporaneous, or
subsequent oral agreements of the parties. There are no unwritten oral agreements among the
parties.

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as
of the date first above written.

	 	 	 	 	 	 	 
	 	 	MICHAELS STORES, INC.
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Lisa K. Klinger
	 	 	 	 	 
	 	 	Name:	 	Lisa K. Klinger
	 	 	Title:	 	Vice President-Treasurer and Investor Relations

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as
	 	 	Administrative Agent
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Mollie S. Canup	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Mollie S. Canup	 	 
	 	 	Title:	 	Vice President	 	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as a Lender, L/C Issuer and
	 	 	Swing Line Lender
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Dan M. Killian	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Dan M. Killian	 	 
	 	 	Title:	 	Senior Vice President	 	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, NA
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Barry Bergman	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Barry Bergman	 	 
	 	 	Title:	 	Managing Director	 	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	CITIBANK N.A., as a Lender
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ James Buchanan	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	James Buchanan	 	 
	 	 	Title:	 	Vice President	 	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Beth Rue	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Beth Rue	 	 
	 	 	Title:	 	AVP	 	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A.
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ David C. Oldani	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	David C. Oldani	 	 
	 	 	Title:	 	Vice President	 	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Marianne T. Meil	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Marianne T. Meil	 	 
	 	 	Title:	 	Vice President	 	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	NATIONAL CITY BANK
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Jennifer A. Taliaferro	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Jennifer A. Taliaferro	 	 
	 	 	Title:	 	Relationship Manager	 	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Scott DeTraglia	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Scott DeTraglia	 	 
	 	 	Title:	 	Assistant Vice President	 	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	COMPASS BANK
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Key Coker	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Key Coker	 	 
	 	 	Title:	 	Executive Vice President	 	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	THE ROYAL BANK OF SCOTLAND PLC
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Michaela V. Galluzzo	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Michaela V. Galluzzo	 	 
	 	 	Title:	 	Vice President	 	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	SOVEREIGN BANK
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Judith C.E. Kelly	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Judith C.E. Kelly	 	 
	 	 	Title:	 	Senior Vice President	 	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	SUNTRUST BANK
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Daniel S. Komitor	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Daniel S. Komitor	 	 
	 	 	Title:	 	Director	 	 

Signature Page to Credit AgreementEXECUTION
COPY

	
		
	

AGREEMENT AND PLAN OF
MERGER

AMONG

SPRINT NEXTEL
CORPORATION,

AHI MERGER SUB
INC.

AND

ALAMOSA HOLDINGS,
INC.

DATED AS OF NOVEMBER 21,
2005

	
		
	

TABLE OF
CONTENTS

											
	 		 		Page
	ARTICLE
I		THE
MERGER		1
	Section
1.1.		The Merger		1
	Section
1.2.		Effective Time;
Closing		2
	Section 1.3.		Effect
of the Merger		2
	Section
1.4.		Conversion of Company Capital
Stock		2
	Section
1.5.		Dissenting
Shares		3
	Section
1.7.		Employee Stock Purchase
Plan		4
	Section 1.8.		Surrender
of Shares of Company Capital Stock; Stock Transfer
Books		5
	ARTICLE
II		THE
SURVIVING CORPORATION		7
	Section
2.1.		Certificate of
Incorporation		7
	Section
2.2.		Bylaws		7
	Section
2.3.		Directors and
Officers		7
	ARTICLE
III		REPRESENTATIONS
AND WARRANTIES OF THE
COMPANY		7
	Section
3.1.		Organization and
Standing		8
	Section
3.2.		Capitalization		8
	Section
3.3.		Authority for
Agreement		9
	Section 3.4.		No
Conflict		10
	Section
3.5.		Required Filings and
Consents		11
	Section
3.6.		Compliance		11
	Section
3.7.		Licenses and
Permits		11
	Section
3.8.		Reports; Financial Statements; Internal
Controls		12
	Section
3.9.		Absence of Certain Changes or
Events		14
	Section
3.10.		Taxes		14
	Section
3.11.		Title to
Assets		15
	Section
3.12.		Change of Control
Agreements		16
	Section
3.13.		Litigation		16
	Section
3.14.		Contracts and
Commitments		16
	Section
3.15.		Information
Supplied		17
	Section
3.16.		Employee Benefit
Plans		17
	Section 3.17.		Labor
and Employment Matters		18
	Section
3.18.		Environmental
Compliance		19
	Section
3.19.		Intellectual
Property		20
	Section
3.20.		Undisclosed
Liabilities		21
	Section
3.21.		Brokers		21
	Section
3.22.		Related Party
Transactions		21
	Section
3.23.		Anti-Takeover
Provisions		22
	Section
3.24.		Company
Indentures		22
	Section
3.25.		Disclaimer		23
	ARTICLE
IV		REPRESENTATIONS
AND WARRANTIES OF PARENT AND
BUYER		23
	Section
4.1.		Organization and
Standing		23
	Section
4.2.		Authority for Agreement;
Enforceability		23
	Section
4.3.		No Conflict		23
	Section
4.4.		Required Filings and
Consents		24
	Section
4.5.		Information
Supplied		24
	Section
4.6.		Brokers		24
	Section
4.7.		No Prior
Activities		24
	Section
4.8.		Available
Funds		25
	Section
4.9.		Ownership of Company Capital Stock; Affiliates and
Associates.		25
	

											
	 		 		Page
	Section
4.10.		Disclaimer		25
	ARTICLE
V		COVENANTS		25
	Section
5.1.		Conduct of the Business Pending the
Merger.		25
	Section
5.2.		Access to Information;
Confidentiality		27
	Section
5.3.		Notification of Certain
Matters		29
	Section
5.4.		Further
Assurances		29
	Section
5.5.		Board
Recommendations		30
	Section
5.6.		Stockholder
Litigation		31
	Section
5.7.		Indemnification		31
	Section
5.8.		Public
Announcements		33
	Section
5.9.		Acquisition
Proposals		33
	Section
5.10.		Stockholders’ Meeting; Proxy
Statement		34
	Section
5.11.		Stockholder
Lists		35
	Section
5.12.		Director
Resignations		36
	Section
5.13.		Benefits Continuation;
Severance		36
	Section
5.14.		Rule 16b-3		37
	ARTICLE
VI		CONDITIONS		37
	Section
6.1.		Conditions to the Obligation of Each
Party		37
	Section
6.2.		Conditions to Obligations of Parent and Buyer to Effect
the Merger		38
	Section
6.3.		Conditions to Obligations of the Company to Effect the
Merger		39
	ARTICLE
VII		TERMINATION,
AMENDMENT AND WAIVER		40
	Section
7.1.		Termination		40
	Section
7.2.		Effect of
Termination		41
	Section
7.3.		Amendments		42
	Section
7.4.		Waiver		42
	ARTICLE
VIII		GENERAL
PROVISIONS		42
	Section 8.1.		No
Third Party Beneficiaries		42
	Section
8.2.		Entire
Agreement		42
	Section
8.3.		Succession and
Assignment		43
	Section
8.4.		Counterparts		43
	Section
8.5.		Governing Law; Venue; Service of Process, Waiver of Jury
Trial		43
	Section
8.6.		Severability		43
	Section
8.7.		Specific
Performance		44
	Section
8.8.		Construction		44
	Section
8.9.		Non-Survival of Representations and Warranties and
Agreements		44
	Section
8.10.		Certain
Definitions		44
	Section
8.11.		Fees and
Expenses		44
	Section
8.12.		Notices		44
	Section
8.13.		Cross-References to Certain Terms Defined Elsewhere in
This
Agreement		45
	

AGREEMENT AND PLAN
OF MERGER

THIS AGREEMENT AND PLAN OF MERGER (this
‘‘Agreement’’), dated as of November 21,
2005, by and among SPRINT NEXTEL CORPORATION, a Kansas corporation
(‘‘Parent’’), AHI MERGER SUB INC., a
Delaware corporation (‘‘Buyer’’) and wholly
owned subsidiary of Parent, and ALAMOSA HOLDINGS, INC., a Delaware
corporation (the
‘‘Company’’).

W I T N E S
S E T H:

WHEREAS, the parties to this Agreement desire to
effect the acquisition of the Company by Parent through a merger of the
Company and Buyer;

WHEREAS, in furtherance of the foregoing, upon
the terms and subject to the conditions of this Agreement and in
accordance with the Delaware General Corporation Law (the
‘‘DGCL’’), Buyer shall merge with and into
the Company (the ‘‘Merger’’) in accordance
with the provisions of the DGCL, with the Company as the surviving
corporation;

WHEREAS, concurrently with the execution and
delivery of this Agreement, and as a condition and inducement to
Parent’s entering into this Agreement, certain stockholders have
entered into a stockholders agreement, dated as of the date hereof (the
‘‘Stockholders Agreement’’), pursuant to
which, among other things, such stockholders have agreed to vote its
shares of Company Common Stock in favor of the Merger, subject to the
terms and conditions contained therein;

WHEREAS, the Board of
Directors of the Company has approved this Agreement, the Merger and
the transactions contemplated hereby; and

WHEREAS, the Board of
Directors of the Company has determined that the consideration to be
paid for each share of Company Common Stock and for each share of
Series B convertible preferred stock, par value $0.01 per share, of the
Company (‘‘Series B Preferred Stock,’’ and
together with the Company Common Stock, the ‘‘Company
Capital Stock’’) in the Merger is fair to and in the best
interests of the Company and the holders of each series of Company
Capital Stock (the ‘‘Company
Stockholders’’) and resolved to recommend that the
Company Stockholders adopt this Agreement and approve the Merger and
the other transactions contemplated hereby.

NOW, THEREFORE, in
consideration of the foregoing and the respective representations,
warranties, covenants and agreements contained in this Agreement and
intending to be legally bound hereby, the parties agree as
follows:

ARTICLE I

THE MERGER

Section
1.1.    The Merger.    Upon the terms and subject to the
conditions of this Agreement, and in accordance with the DGCL, at the
Effective Time, Buyer shall be merged with and into the Company. As a
result of the Merger, the separate corporate existence of Buyer shall
cease and the Company shall continue as the surviving corporation
following the Merger (the ‘‘Surviving
Corporation’’). The corporate existence of the Company,
with all its purposes, rights, privileges, franchises, powers and
objects, shall continue unaffected and unimpaired by the Merger and, as
the Surviving Corporation, it shall be governed by the
DGCL.

Section 1.2.    Effective Time; Closing.    
As promptly as practicable (and in any event within five business days)
after the satisfaction or waiver of the conditions set forth in Article
VI (other than those conditions which by their terms can only be
satisfied at the Closing, but subject to the satisfaction or waiver of
such conditions at the Closing), the parties shall cause the Merger to
be consummated by filing a certificate of merger (the
‘‘Certificate of Merger’’), with the
Secretary of State of the State of Delaware and by making all other
filings or recordings required under the DGCL in connection with the
Merger, in such form as is required by, and executed in accordance with
the relevant provisions of, the DGCL. The Merger shall become effective
at such time as the Certificate of Merger is duly filed with the
Secretary of State of the State of Delaware, or at such other time (but
not earlier than the time that the Certificate of 

1

Merger is filed) as the parties agree shall be
specified in the Certificate of Merger (the date and time the Merger
becomes effective, the ‘‘Effective Time’’).
On the date of such filing, a closing (the
‘‘Closing’’) shall be held at 10:00 a.m.
Eastern time, at the offices of King & Spalding LLP, 191 Peachtree
Street, Atlanta, Georgia 30303, or at such other time and location as
the parties shall otherwise agree.

Section 1.3.    Effect
of the Merger    . At the Effective Time, the effect of
the Merger shall be as provided in the applicable provisions of the
DGCL. Without limiting the generality of the foregoing, and subject
thereto, at the Effective Time all the property, rights, privileges,
powers and franchises of the Company and Buyer shall vest in the
Surviving Corporation, and all debts, liabilities, obligations,
restrictions, disabilities and duties of the Company and Buyer shall
become the debts, liabilities, obligations, restrictions, disabilities
and duties of the Surviving Corporation.

Section
1.4.    Conversion of Company Capital Stock.     At the
Effective Time, by virtue of the Merger and without any action on the
part of Buyer, the Company or the holders of any of the securities
described in this Section 1.4:

(a)    Each
share of Company Common Stock issued and outstanding immediately prior
to the Effective Time (other than shares canceled pursuant to Section
1.4(c) and Dissenting Shares, if any) shall be canceled and, by virtue
of the Merger and without any action on the part of the holder thereof,
shall be converted automatically into the right to receive an amount in
cash equal to $18.75 payable, less any required withholding taxes as
described in Section 1.8(e) and without interest, to the holder of such
share of Company Common Stock, upon surrender of the certificate that
formerly evidenced such share of Company Common Stock in the manner
provided in Section 1.8 (the ‘‘Common Stock Merger
Consideration’’);

(b)    Each
share of Series B Preferred Stock issued and outstanding immediately
prior to the Effective Time (other than shares canceled pursuant to
Section 1.4(c) and Dissenting Shares, if any) shall be canceled and, by
virtue of the Merger and without any action on the part of the holder
thereof, shall be converted automatically into the right to receive an
amount in cash equal to $1,378.69 plus any accrued and unpaid dividends
as of the Effective Time payable, less any required withholding taxes
as described in Section 1.8(e) and without interest, to the holder of
such share of Series B Preferred Stock, upon surrender of the
certificate that formerly evidenced such share of Series B Preferred
Stock in the manner provided in Section 1.8 (the ‘‘Series
B Merger Consideration’’ and together with the Common
Stock Merger Consideration, the ‘‘Merger
Consideration’’);

(c)    Each
share of Company Capital Stock issued and outstanding immediately prior
to the Effective Time that is owned by Parent or Buyer and each share
of Company Capital Stock that is owned by the Company as treasury stock
shall be canceled and retired and cease to exist and no payment or
distribution shall be made with respect
thereto;

(d)    At the Effective Time, all
shares of the Company Capital Stock converted pursuant to Section
1.4(a) or (b) shall no longer be outstanding and shall automatically be
canceled and retired and cease to exist, and each holder of a
certificate (‘‘Certificate’’) representing
any such shares of Company Capital Stock shall cease to have any rights
with respect thereto, except the right to receive the Merger
Consideration in accordance with Section 1.4(a) or (b), as applicable;
and

(e)    Each share of common stock, par
value $0.01 per share, of Buyer issued and outstanding immediately
prior to the Effective Time shall be converted into and become one
validly issued, fully paid and nonassessable share of common stock, par
value $0.01 per share, of the Surviving Corporation and shall
constitute the only outstanding shares of capital stock of the
Surviving Corporation.

Section 1.5.    Dissenting
Shares.

(a)    Notwithstanding anything
in this Agreement to the contrary, shares of Company Capital Stock that
are issued and outstanding immediately prior to the Effective Time and
which are held by the Company Stockholders who have demanded and
perfected their demands for appraisal of such shares of Company Capital
Stock in the time and manner provided in Section 262 of the DGCL and,
as of the Effective Time, have neither effectively withdrawn nor lost
their rights to such appraisal and 

2

payment under the DGCL (the
‘‘Dissenting Shares’’) shall not be
converted as described in Section 1.4(a) or (b), as applicable, but
shall, by virtue of the Merger, be entitled to only such rights as are
granted by Section 262 of the DGCL; provided, however,
that if such holder shall have failed to perfect or shall have
effectively withdrawn or lost his, her or its right to appraisal and
payment under the DGCL, such holder’s shares of Company Capital
Stock shall thereupon be deemed to have been converted, at the
Effective Time, as described in Section 1.4(a) or (b), as applicable,
into the right to receive the Merger Consideration set forth in such
provisions, without any interest
thereon.

(b)    The Company shall give Parent
(i) prompt notice of any demands for appraisal pursuant to Section 262
of the DGCL received by the Company, withdrawals of such demands, and
any other instruments served pursuant to the DGCL with respect to
demands for appraisal and received by the Company and (ii) the
opportunity to direct all negotiations and proceedings with respect to
demands for appraisal under the DGCL. The Company shall not, except
with the prior written consent of Parent or as otherwise required by
applicable Law, make any payment with respect to any such demands for
appraisal or offer to settle or settle any such demands.

Section
1.6.    Stock Options and
Warrants.

(a)    The Company shall
ensure that all outstanding options to acquire Company Common Stock
(the ‘‘Company Options’’) granted under the
Amended and Restated 1999 Long-Term Incentive Plan (the
‘‘Company Stock Option Plan’’) that are not
exercised prior to the Effective Time shall terminate and expire
immediately after Effective Time. In addition, the Surviving
Corporation shall pay such holder, immediately after the Effective
Time, in exchange for the cancellation of such holder’s Company
Options (regardless of exercise price or whether or not such Company
Options are vested and exercisable), an amount in cash determined by
multiplying (a) the excess, if any, of the Common Stock Merger
Consideration over the applicable exercise price per share of the
Company Option by (b) the number of shares of Company Common Stock such
holder could have purchased had such holder exercised such Company
Option in full immediately after the Effective Time (assuming such
Company Option was fully vested), less any withholding taxes as
described in Section 1.8(e) and without
interest.

(b)    All holders of Company
Warrants shall be entitled to receive the excess, if any, of the
applicable Common Stock Merger Consideration over the applicable
exercise price of the Company Warrant upon the surrender of any Company
Warrant to the Paying Agent in accordance with Section 1.8(f). At the
Effective Time, the Company Warrants will be automatically exercisable
for the Merger Consideration to which the holder of the Company Warrant
would have received immediately after the Effective Time if the holder
had exercised the Company Warrant immediately prior to the Effective
Time.

Section 1.7.    Employee Stock Purchase
Plan.     The ‘‘Offering Period’’
(as defined in the ESPP) that started on September 1, 2005 under the
Company’s Third Amended and Restated Employee Stock Purchase
Plan (the ‘‘ESPP’’) may continue through
February 28, 2006 or until the end of the last business day before the
Effective Time; provided, (a) no person shall be allowed to elect to
increase his or her payroll deductions or other contributions to
purchase Company Common Stock for such Offering Period after the date
hereof; (b) the Company shall not commence any new Offering Periods
under the ESPP on or after the date hereof; and (c) if any whole shares
of Company Common Stock purchased in such Offering Period by a
participant have not been issued before the Effective Time to such
participant, in lieu of the issuance of such shares, the Surviving
Corporation shall pay such participant, immediately after the Effective
Time, a cash payment determined by multiplying (i) such number of whole
shares    by (ii) the Common Stock Merger Consideration, plus a cash
payment equal to the balance, if any, in his or her account in the ESPP
after the purchase of such whole shares of Company Common Stock, less
any withholding taxes as described in Section 1.8(e) and without
interest. Effective as of the Effective Time, the ESPP shall be
terminated.

Section 1.8.    Surrender of Shares of Company
Capital Stock; Stock Transfer
Books.

(a)    Prior to the Effective
Time, Parent shall designate a bank or trust company, reasonably
acceptable to the Company, to act as agent (the ‘‘Paying
Agent’’) for the Company Stockholders to 

3

receive the funds necessary to make the
payments to the Company Stockholders pursuant to Section 1.4 upon
surrender of the Company Stockholders’ Certificates and pursuant
to Section 1.6 in the case of holders who exercise Company Warrants.
Parent shall, at or prior to the Effective Time, deposit with the
Paying Agent the aggregate Merger Consideration to be paid in respect
of the shares of Company Capital Stock (the
‘‘Fund’’). The Fund shall be invested by
the Paying Agent as directed by Parent. Any net profit resulting from,
or interest or income produced by, such investments, shall be payable
to Parent. Parent shall replace any monies lost through any investment
made pursuant to this Section 1.8(a). The Paying Agent shall make the
payments provided in Section
1.4.

(b)    Promptly after the Effective
Time, Parent shall cause to be mailed to each person who was, at the
Effective Time, a holder of record of shares of Company Capital Stock
entitled to receive the Merger Consideration pursuant to Section 1.4 a
form of letter of transmittal (which shall specify that delivery shall
be effected, and risk of loss and title to the Certificates shall pass,
only upon proper delivery of the Certificates to the Paying Agent) and
instructions for use in effecting the surrender of the Certificates
pursuant to such letter of transmittal. Upon surrender to the Paying
Agent of a Certificate, together with such letter of transmittal, duly
completed and validly executed in accordance with the instructions
thereto, and such other documents as may be required pursuant to such
instructions, the holder of such Certificate shall be entitled to
receive, in exchange therefor, the Merger Consideration for each share
of each series of Company Capital Stock formerly evidenced by such
Certificate, and such Certificate shall then be canceled. Until so
surrendered, each such Certificate shall, at and after the Effective
Time, represent for all purposes only the right to receive Merger
Consideration. No interest shall accrue or be paid to any beneficial
owner of shares of Company Capital Stock or any holder of any
Certificate with respect to the Merger Consideration payable upon the
surrender of any Certificate. If payment of the Merger Consideration is
to be made to a person other than the person in whose name the
surrendered Certificate is registered on the stock transfer books of
the Company, it shall be a condition of payment that the Certificate so
surrendered shall be endorsed in blank or to the Paying Agent or
otherwise be in proper form for transfer, in the sole discretion of the
Paying Agent, and that the person requesting such payment shall have
paid all transfer and other taxes required by reason of the payment of
the Merger Consideration to a person other than the registered holder
of the Certificate surrendered or shall have established to the
satisfaction of Parent that such taxes either have been paid or are not
applicable. If any Certificate shall have been lost, stolen or
destroyed, upon making of an affidavit of that fact by the person
claiming such Certificate to be lost, stolen or destroyed and, if
required by Parent, the posting by such person of a bond, in such
reasonable amount as Parent may direct, as indemnity against any claim
that may be made against it with respect to such Certificate, the
Paying Agent shall issue in exchange for such lost, stolen or destroyed
Certificate the applicable Merger Consideration such holder is entitled
to receive pursuant to Section 1.4.

(c)    At
any time following the date that is six months after the Effective
Time, Parent shall be entitled to require the Paying Agent to deliver
to it any portion of the Fund that had been made available to the
Paying Agent and not disbursed to the Company Stockholders (including
all interest and other income received by the Paying Agent in respect
of all amounts held in the Fund or other funds made available to it),
and thereafter each such holder shall be entitled to look only to
Parent (subject to abandoned property, escheat and other similar Laws),
and only as general creditors thereof, with respect to any Merger
Consideration that may be payable upon due surrender of the
Certificates held by such holder. If any Certificates representing
shares of Company Capital Stock shall not have been surrendered
immediately prior to such date on which the Merger Consideration in
respect of such Certificate would otherwise escheat to or become the
property of any Governmental Entity, any such cash, shares, dividends
or distributions payable in respect of such Certificate shall become
the property of Parent, free and clear of all claims or interest of any
person previously entitled thereto. Notwithstanding the foregoing, none
of the Surviving Corporation, Parent, Buyer or the Paying Agent shall
be liable to any Company Stockholder for any Merger Consideration
delivered in respect of such share of Company Capital Stock to a public
official pursuant to any abandoned property, escheat or other similar
Law.

4

(d)    At the Effective
Time, the stock transfer books of the Company shall be closed, and
thereafter there shall be no further registration of transfers of
shares of Company Capital Stock on the records of the Company. From and
after the Effective Time, except for Parent and Buyer, the Company
Stockholders holding shares of Company Capital Stock outstanding
immediately prior to the Effective Time shall cease to have any rights
with respect to such shares of Company Capital Stock except as
otherwise provided herein or by applicable Law, and the Merger
Consideration paid pursuant to this Article I upon the surrender or
exchange of Certificates shall be deemed to have been paid in full
satisfaction of all rights pertaining to the shares of Company Capital
Stock theretofore represented by such
Certificates.

(e)    Parent, Buyer, the
Surviving Corporation and the Paying Agent, as the case may be, shall
be entitled to deduct and withhold from the Merger Consideration and
any other amount otherwise payable pursuant to this Agreement to any
Company Stockholder, any holder of Company Options or Company Warrants
and any participant in the ESPP (each, a
‘‘Payee’’) such amounts that Parent, Buyer,
the Surviving Corporation or the Paying Agent is required to deduct and
withhold with respect to the making of such payment under the Internal
Revenue Code of 1986 (the ‘‘Code’’), the
rules and regulations promulgated thereunder or any provision of state,
local or foreign tax Law. Any amounts so withheld shall be treated for
all purposes of this Agreement as having been paid to
Payee.

(f)    Upon the surrender to the
Paying Agent of an original copy of a Company Warrant, the Paying Agent
shall pay to such holder the excess, if any, of the Common Stock Merger
Consideration for each share of Company Common Stock represented by
such Company Warrant over the applicable exercise price. The procedures
set forth in this Section 1.8 shall apply to any surrender of a Company
Warrant.

ARTICLE II

THE SURVIVING
CORPORATION

Section 2.1.    Certificate of
Incorporation.     The certificate of incorporation of the
Surviving Corporation shall be amended as of the Effective Time to be
substantially the same as the certificate of incorporation attached
hereto as Exhibit A, until the same shall thereafter be
altered, amended or repealed in accordance with applicable Law or such
certificate of incorporation.

Section
2.2.    Bylaws.     The bylaws of the Surviving
Corporation shall be amended as of the Effective Time to be
substantially the same as the bylaws attached hereto as Exhibit
B, until the same shall thereafter be altered, amended or repealed
in accordance with applicable Law, the certificate of incorporation of
the Surviving Corporation or such bylaws.

Section
2.3.    Directors and Officers.     From and after the
Effective Time, until the earlier of their resignation or removal or
until their respective successors are duly elected or appointed and
qualified in accordance with applicable Law, (a) the directors of Buyer
at the Effective Time shall be the directors of the Surviving
Corporation and (b) the officers of Buyer at the Effective Time shall
be the officers of the Surviving Corporation.

ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF THE
COMPANY

Except as disclosed in (a) a publicly available
final registration statement, prospectus, report, form, schedule or
proxy statement filed since January 1, 2005 by the Company with the
Securities and Exchange Commission
(‘‘SEC’’) pursuant to the Securities Act of
1933, as amended (the ‘‘Securities Act’’)
or the Securities Exchange Act of 1934, as amended (the
‘‘Exchange Act’’) (collectively, the
‘‘Company SEC Reports’’) and prior to the
date hereof, but excluding any risk factor disclosure contained in any
such Company SEC Report under the heading ‘‘Risk
Factors’’ or ‘‘Cautionary Note Regarding
Forward-Looking Statements’’ or similar heading, or (b)
the disclosure letter (the ‘‘Company Disclosure
Letter’’) delivered by the Company to the other parties
concurrently with the execution of this Agreement (which 

5

letter sets forth items of disclosure with
specific reference to the particular Section or subsection of this
Agreement to which the information in the Company Disclosure Letter
relates; provided, however, that any information set forth in
one section of the Company Disclosure Letter will be deemed to apply to
each other Section or subsection of this Agreement to which its
relevance is reasonably apparent; provided, further, that,
notwithstanding anything in this Agreement to the contrary, the
inclusion of an item in such letter as an exception to a representation
or warranty will not be deemed an admission that such item represents a
material exception or material fact, event or circumstance or that such
item has had or would reasonably be expected to have a Material Adverse
Effect), the Company represents and warrants to each of the other
parties as follows:

Section 3.1.    Organization and
Standing.     Each of the Company and each direct or indirect
subsidiary of the Company (a
‘‘Subsidiary’’) (a) is a corporation,
limited liability company or partnership duly organized, validly
existing and in good standing under the Laws of the jurisdiction of its
organization, (b) has full corporate or other power and authority to
own, lease and operate its properties and assets and to conduct its
business as presently conducted and (c) is duly qualified or licensed
to do business as a foreign corporation or other entity and is in good
standing in each jurisdiction where the character of the properties
owned, leased or operated by it or the nature of its business makes
such qualification or licensing necessary, except where failure to have
such approvals or to be so qualified or licensed has not had, and would
not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect. The Company has furnished or made available to
Parent true and complete copies of the Company’s certificate of
incorporation (the ‘‘Company Certificate of
Incorporation’’) and the Company’s bylaws (the
‘‘Company Bylaws’’) and the certificate of
incorporation and bylaws (or equivalent organizational documents) of
each Subsidiary, each as amended to date. Such certificates of
incorporation and bylaws (or equivalent organizational documents) are
in full force and effect, and neither the Company nor any Subsidiary is
in violation of any provision of its certificate of incorporation or
bylaws (or equivalent organizational documents).

Section
3.2.    Capitalization.     The authorized capital stock
of the Company consists of 290,000,000 shares of Company Common Stock
and 10,000,000 shares of preferred stock, par value $0.01 per share, of
which 300,000 have been designated as Series A Preferred Stock, 750,000
have been designated as Series B Preferred Stock and 500,000 have been
designated as Series C Convertible Preferred Stock. As of the date
hereof, (a) 163,413,654 shares of Company Common Stock are issued and
outstanding, all of which are validly issued, fully paid and
nonassessable and free of preemptive rights, (b) no shares of Company
Common Stock are held in the treasury of the Company, (c) 8,487,770
Company Options are outstanding pursuant to the Company Stock Option
Plan, each such option entitling the holder thereof to purchase one
share of Company Common Stock, (d) 266,963 shares of Company Common
Stock are authorized and reserved for future issuance pursuant to the
ESPP, (e) 300,000 shares of Series A Preferred Stock, par value $0.01,
of the Company are reserved for issuance, (f) 220,301 shares of Series
B Preferred Stock are issued and outstanding, all of which are validly
issued, fully paid and nonassessable and free of preemptive rights and
which are convertible into 16,198,603 shares of Company Common Stock,
(g) no shares of Series C Preferred Stock are issued and outstanding
and (h) no shares of Company Common Stock are reserved for issuance
upon exercise of outstanding stock options or otherwise, except for (x)
8,487,770 shares of Company Common Stock reserved for issuance pursuant
to Company Options, (y) shares of Company Common Stock reserved for
issuance upon conversion of the outstanding shares of Series B
Preferred Stock and (z) 298,631 shares of Company Common Stock reserved
for issuance under the outstanding warrants to purchase shares of
Company Common Stock (the ‘‘Company
Warrants’’). Section 3.2 of the Company Disclosure Letter
sets forth a true and complete list of the outstanding Company Options
and Company Warrants, with the exercise price of each such Company
Option and each such Company Warrant. Except as set forth above and
except for rights (‘‘Company Rights’’)
distributed to holders of Company Common Stock pursuant to the Rights
Agreement, dated as of February 14, 2001, between the Company and
Mellon Investor Services LLC, as Rights Agent (the
‘‘Rights Agreement’’), there are no
options, warrants, convertible securities, subscriptions, stock
appreciation rights, phantom stock plans or stock equivalents or other
rights, agreements, arrangements or commitments (contingent or
otherwise) of any character issued or authorized by the Company or any
Subsidiary relating to the issued or unissued capital stock of the
Company or any Subsidiary or obligating 

6

the Company or any Subsidiary to issue or sell
any shares of capital stock of, or options, warrants, convertible
securities, subscriptions or other equity interests in, the Company or
any Subsidiary. All shares of Company Common Stock subject to issuance
as aforesaid, upon issuance on the terms and conditions specified in
the instruments pursuant to which they are issuable, shall be duly
authorized, validly issued, fully paid and nonassessable. There are no
outstanding contractual obligations of the Company or any Subsidiary to
repurchase, redeem or otherwise acquire any shares of Company Capital
Stock or any capital stock of any Subsidiary or to pay any dividend or
make any other distribution in respect thereof or to provide funds to,
or make any investment (in the form of a loan, capital contribution or
otherwise) in, any person. Each outstanding share of capital stock of
each Subsidiary is duly authorized, validly issued, fully paid and
nonassessable and free of any preemptive rights. The Company owns
(either directly or indirectly) beneficially and of record all of the
issued and outstanding capital stock of each Subsidiary, free and clear
of all security interests, liens, claims, pledges, options, rights of
first refusal, agreements, limitations on the Company’s or such
other Subsidiary’s voting rights, charges and other encumbrances
of any nature whatsoever and does not own an equity interest in any
other corporation, partnership or entity, other than in the
Subsidiaries. No bonds, debentures, notes or other indebtedness of the
Company or the Subsidiaries having the right to vote on any matter on
which stockholders may vote are issued or outstanding.

Section
3.3.    Authority for
Agreement.

(a)    The Company has all
necessary corporate power and authority to execute and deliver this
Agreement, to perform its obligations hereunder and, subject to
obtaining necessary stockholder approval, to consummate the Merger and
the other transactions contemplated by this Agreement. The execution,
delivery and performance by the Company of this Agreement, and the
consummation by the Company of the Merger and the other transactions
contemplated by this Agreement have been duly authorized by all
necessary corporate action (including the approval of the Board of
Directors of the Company), and no other corporate proceedings on the
part of the Company are necessary to authorize this Agreement or to
consummate the Merger or the other transactions contemplated by this
Agreement (other than, with respect to the Merger, the approval and
adoption of this Agreement by the affirmative vote of holders of a
majority of the voting power of the then issued and outstanding shares
of Company Capital Stock and the filing and recordation of the
certificate of merger as required by the DGCL). This Agreement has been
duly executed and delivered by the Company and, assuming the due
authorization, execution and delivery by Parent and Buyer, constitutes
a legal, valid and binding obligation of the Company enforceable
against the Company in accordance with its terms. The affirmative vote
of holders of a majority of the issued and outstanding shares of
Company Capital Stock is the only vote of the Company’s equity
holders necessary to approve this Agreement, the Merger and the other
transactions contemplated by this
Agreement.

(b)    At a meeting duly called
and held on November 21, 2005, the Board of Directors of the Company
(i) determined that this Agreement and the other transactions
contemplated hereby, including the Merger, are fair to and in the best
interests of, the Company and the Company Stockholders, (ii) approved,
authorized and adopted this Agreement and approved and authorized the
Merger and the other transactions contemplated hereby and (iii)
resolved to recommend approval and adoption by the Company Stockholders
of this Agreement, the Merger and the other transactions contemplated
by this Agreement. The Blackstone Group and UBS Investment Bank (the
‘‘Independent Advisors’’), the independent
financial advisors to the Board of Directors of the Company, have
delivered to the Board of Directors of the Company their opinions,
dated as of the date of this Agreement, that, as of such date and based
on the assumptions, qualifications and limitations contained in such
opinions, the consideration to be received by the Company Stockholders
in the Merger is fair, from a financial point of view, to such
holders.

Section 3.4.    No Conflict.     The
execution and delivery of this Agreement by the Company do not, and the
performance of this Agreement by the Company and the consummation of
the Merger and the other transactions contemplated by this Agreement
and the Stockholders Agreement will not, (a) conflict with or violate
the Company Certificate of Incorporation or the Company Bylaws or
equivalent organizational documents of any of the Subsidiaries, (b)
subject to Section 3.5, conflict with or violate any 

7

United States federal, state or local or any
foreign statute, law, rule, regulation, ordinance, code, order,
judgment, decree or any other requirement or rule of law (a
‘‘Law’’) applicable to the Company or any
of the Subsidiaries or by which any property or asset of the Company or
any of the Subsidiaries is bound or affected, or (c) result in a breach
of or constitute a default (or an event which with notice or lapse of
time or both would become a default) under, give to others any right of
termination, amendment, acceleration or cancellation of, result in
triggering any payment or other obligations, or result in the creation
of a lien or other encumbrance on any property or asset of the Company
or any of the Subsidiaries pursuant to, any note, bond, mortgage,
indenture, contract, agreement, lease, license, permit, franchise or
other instrument or obligation to which the Company or any of the
Subsidiaries is a party or by which the Company or any of the
Subsidiaries or any property or asset of any of them is bound or
affected, except in the case of clauses (b) and (c) above for any such
conflicts, violations, breaches, defaults or other occurrences that
have not had, and would not reasonably be expected to have,
individually or in the aggregate , a Material Adverse Effect.
‘‘Material Adverse Effect shall mean (i) a
material adverse effect on the business, operations or financial
condition of the Company and the Subsidiaries taken as a whole
(provided, however, that with respect to this clause (i),
Material Adverse Effect will be deemed not to include effects to the
extent resulting from (A) changes, after the date hereof, in U.S.
generally accepted accounting principles
(‘‘GAAP’’) or the accounting rules and
regulations of the SEC, (B) the public announcement of the Merger, (C)
any action or failure to act by Parent or any of its affiliates under
agreements between Parent or any of its affiliates, on the one hand,
and the Company or any of the Subsidiaries, on the other hand, (D)
Parent’s acquisition of Nextel or any action by Parent or any of
its affiliates in connection with the integration thereof, (E) changes
in or relating to the United States economy or United States financial,
credit or securities markets in general or (F) changes in or relating
to the industries in which the Company or the Subsidiaries operate or
the markets for any of such entity’s products or services in
general, which changes in the case of clauses (E) and (F) do not affect
the Company or any Subsidiary to a materially disproportionate degree
relative to other entities operating in such markets or industries or
serving such markets) or (ii) a material adverse effect on the ability
of the Company to perform its obligations under this Agreement and to
consummate the Merger and the other transactions contemplated by this
Agreement.

Section 3.5.    Required Filings and
Consents.     The execution and delivery of this Agreement by
the Company do not, and the performance of this Agreement by the
Company will not, require any consent, approval, authorization or
permit of, or filing with or notification to, any United States
federal, state or local or any foreign government or any court,
administrative or regulatory agency or commission or other governmental
authority or agency, domestic or foreign (a
‘‘Governmental Entity’’) or any consent,
approval or authorization of, or notification to, any other person,
except (a) for applicable requirements, if any, of state securities or
‘‘blue sky’’ Laws (‘‘Blue Sky
Laws’’) and filing and recordation of the certificate of
merger as required by the DGCL, (b) for those required by the
Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the
‘‘HSR Act’’), (c) for those required by the
Federal Communications Commission or any successor entity (the
‘‘FCC’’) under the Communications Act of
1934 and the rules, regulations and policies of the FCC promulgated
thereunder (the ‘‘FCC Filings’’), (d) for
such filings and approvals as are required to be made or obtained with
or from any state public service or public utility commission or
similar state regulatory bodies in connection with the consummation of
the Merger and the other transactions contemplated by this Agreement,
(e) for the filing of the Proxy Statement with the SEC and any national
securities exchange or trading system and (f) where failure to obtain
such consents, approvals, authorizations or permits, or to make such
filings or notifications, has not had, and would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse
Effect.

Section 3.6.    Compliance.     Subject to
Section 3.7, each of the Company and the Subsidiaries has been operated
at all times in compliance with all Laws applicable to the Company or
any of the Subsidiaries or by which any property, business or asset of
the Company or any of the Subsidiaries is bound or affected, except for
any such failures to comply or violations that have not had, and would
not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect.

Section 3.7.    Licenses and
Permits.

(a)    Except as set forth in
Section 3.7(a) of the Company Disclosure Letter, neither the Company
nor any of the Subsidiaries has any Licenses issued or granted by the
FCC.

8

(b)    The Company and
each of the Subsidiaries each has all governmental permits, licenses,
franchises, variances, exemptions, orders issued or granted by a
Governmental Entity and all other authorizations, consents,
certificates of public convenience and/or necessity and approvals
issued or granted by a Governmental Entity (collectively,
‘‘Licenses’’) necessary to conduct its
business as presently conducted (the ‘‘Company Material
Licenses’’), except those the absence of which have not
had, and would not reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect. Each Company Material License
is listed on Section 3.7(b) of the Company Disclosure
Letter.

Each of the Company and the Subsidiaries is in
compliance with (i) its obligations under each of the Company Licenses
and (ii) the rules and regulations of the Governmental Entity issuing
such Company Licenses, except, in either case, for such failures to be
in compliance as have not had, and would not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect.
There is no pending or, to the Knowledge of the Company, threatened by
or before the FCC, the Federal Aviation Administration (the
‘‘FAA’’) or any other Governmental Entity,
any proceeding, notice of violation, order of forfeiture or complaint
or investigation against the Company or any of the Subsidiaries
relating to any of the Company Material Licenses, except as have not
had, and would not reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect. The term
‘‘Company Licenses’’ means, to the extent
not otherwise Company Material Licenses, all Licenses issued or granted
to the Company or any of the Subsidiaries by a Governmental Entity of
any state of the United States regulating telecommunications businesses
and all Licenses issued or granted to the Company or any of the
Subsidiaries by foreign Governmental Entities regulating
telecommunications businesses. For purposes of this Agreement, the term
‘‘Knowledge’’ means the actual knowledge of
the following officers of the Company: David Sharbutt (Chief Executive
Officer), Kendall Cowan (Chief Financial Officer), Steve Richardson
(Chief Operation Officer), Anthony Sabatino (Chief Technology Officer),
Loyd Rinehart (Senior Vice President — Corporate Finance), Paula
Sexton (Vice President — Administration) and Margaret Z. Couch
(Chief Integration Officer).

Section 3.8.    Reports;
Financial Statements; Internal
Controls.

(a)    The Company and each of
the Subsidiaries have timely filed all reports, registrations,
schedules, forms, statements and other documents, together with any
amendments required to be made with respect thereto (each, a
‘‘Report’’), that they were required to
file since January 1, 2003 with (i) the FCC, (ii) the SEC, (iii) any
state or other federal regulatory authority (other than any taxing
authority, which is dealt with exclusively in covered by Section 3.10)
and (iv) any foreign regulatory authority (other than any taxing
authority, which is dealt with exclusively in Section 3.10), and have
paid all fees and assessments due and payable in connection therewith,
except in each case where the failure to file such Report, or to pay
such fees and assessments, has not had, and would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse
Effect. No Report of the Company made with the SEC, as of the date of
such Report, contained any untrue statement of a material fact or
omitted to state any material fact required to be stated therein or
necessary in order to make the statements made therein, in the light of
the circumstances in which they were made, not misleading, except that
information as of a later date (but before the date of this Agreement)
shall be deemed to modify information as of an earlier date. Since
January 1, 2003, as of their respective dates, all Reports of the
Company made with the SEC complied as to form in all material respects
with the applicable requirements of the Securities Act, the Exchange
Act, the Sarbanes-Oxley Act of 2002 (the ‘‘SOX
Act’’) and the rules and regulations thereunder with
respect thereto. No executive officer of the Company has failed in any
respect to make the certifications required of him or her under Section
302 or 906 of the SOX Act, and no enforcement action has been initiated
against the Company by the SEC relating to disclosures contained in any
Report of the Company made with the
SEC.

(b)    The Company has previously made
available to Parent copies of (i) the consolidated balance sheet of the
Company and the Subsidiaries as of December 31, 2004, and the related
consolidated statements of operations, stockholders’ equity and
cash flows for each of the two years in the period ended December 31,
2004, as reported in the Company’s Annual Report on Form 10-K
for the fiscal year ended December 31, 2004, including any amendments
thereto filed with the SEC 

9

(collectively, the ‘‘Company
2004 10-K’’), filed with the SEC under the Exchange Act,
accompanied by the audit report by PricewaterhouseCoopers LLP, the
independent registered public accounting firm with respect to the
Company for such periods (such balance sheets and statements, the
‘‘Audited Company Financial Statements’’)
and (ii) the unaudited consolidated balance sheet of the Company and
the Subsidiaries as of September 30, 2005 and the related consolidated
statements of operations, stockholders’ equity and cash flows
for the nine-month period ended September 30, 2005, as reported in the
Company’s Quarterly Report on Form 10-Q for the quarterly period
ended September 30, 2005, including any amendments (collectively, the
‘‘Company 10-Q’’) (such balance sheets and
statements, the ‘‘Unaudited Company Financial
Statements’’ and, together with the Audited Company
Financial Statements, the ‘‘Company Financial
Statements’’). The consolidated balance sheets of the
Company (including the related notes, where applicable) included in the
Company Financial Statements fairly present in all material respects
the consolidated financial position of the Company and the Subsidiaries
as of the dates thereof, and the other financial statements included in
the Company Financial Statements (including the related notes, where
applicable) fairly present in all material respects the consolidated
results of the operations and changes in stockholders’ equity
and cash flows of the Company and the Subsidiaries for the respective
fiscal periods therein set forth, subject in the case of the Unaudited
Company Financial Statements to normal year-end audit adjustments that
are consistent with past experience; each of such statements (including
the related notes, where applicable) complies in all material respects
with the published rules and regulations of the SEC with respect
thereto; and each of the Company Financial Statements (including the
related notes, where applicable) has been prepared in all material
respects in accordance with GAAP consistently applied during the
periods involved, except, in each case, as indicated in such statements
or in the notes thereto.

(c)    The Company
and the Subsidiaries have designed and maintain a system of internal
controls over financial reporting (as defined in Rules 13a-15(f) and
15d-15(f) of the Exchange Act) sufficient to provide reasonable
assurances regarding the reliability of financial reporting. The
Company (i) has designed and maintains disclosure controls and
procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange
Act) to ensure that material information required to be disclosed by
the Company in the Reports that it files or submits under the Exchange
Act is recorded, processed, summarized and reported within the time
periods specified in the SEC’s rules and forms and is
accumulated and communicated to the Company’s management as
appropriate to allow timely decisions regarding required disclosure and
(ii) has disclosed, based on its most recent evaluation of such
disclosure controls and procedures prior to the date hereof, to the
Company’s auditors and the audit committee of the Board of
Directors of the Company (A) any significant deficiencies and material
weaknesses in the design or operation of internal controls over
financial reporting that are reasonably likely to adversely affect in
any material respect the Company’s ability to record, process,
summarize and report financial information and (B) any fraud, whether
or not material, that involves management or other employees who have a
significant role in the Company’s internal controls over
financial reporting.

Section 3.9.    Absence of Certain
Changes or Events.     Except as contemplated by this Agreement,
(a) since December 31, 2004, there has not been any event or occurrence
of any condition that has had or would reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect, and (b)
since December 31, 2004 through the date of this Agreement, the Company
and the Subsidiaries have conducted their respective businesses in all
material respects in the ordinary course and consistent with prior
practice and there has not been (i) any declaration, setting aside or
payment of any dividend or any other distribution with respect to any
of the capital stock of the Company or any Subsidiary, (ii) any
material change in accounting methods, principles or practices employed
by the Company, (iii) any material change in the Company’s
internal controls over financial reporting (as defined in Rules
13a-15(f) and 15d-15(f) of the Exchange Act) or (iv) any action of the
type described in Section 5.1(b) (other than Section 5.1(b)(iv)) or
Section 5.1(c) that had such action been taken after the date of this
Agreement would be in violation of any such Section.

Section
3.10.    Taxes.     (a) The Company and each of the
Subsidiaries have timely filed all material Tax Returns required to be
filed by any of them; (b) all such Tax Returns are true, correct
and complete 

10

in all material respects; (c) all
Taxes of the Company and the Subsidiaries that are (i) shown as
due on such Tax Returns, (ii) otherwise due and payable or
(iii) claimed or asserted by any taxing authority to be due,
have been paid, except for those Taxes being contested in good faith
and for which adequate reserves have been established in the Company
Financial Statements; (d) there are no liens for any Taxes upon
the assets of the Company or any of the Subsidiaries, other than
statutory liens for real estate Taxes not yet due and payable and liens
for Taxes contested in good faith; (e) the Company does not have
any Knowledge of any proposed or threatened Tax claims or assessments
that, if upheld, would, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect; (f) neither the
Company nor any of the Subsidiaries has waived any statute of
limitations in respect of Taxes or agreed to any extension of time with
respect to a Tax assessment or deficiency; (g) the Company and
each Subsidiary has withheld and paid over to the relevant taxing
authority all Taxes required to have been withheld and paid in
connection with payments to employees, independent contractors,
creditors, stockholders or other third parties, except for such Taxes
that individually or in the aggregate would not reasonably be expected
to have a Material Adverse Effect; (h) except as would not
reasonably be expected, individually or in the aggregate, to have a
Material Adverse Effect, the unpaid Taxes of the Company and the
Subsidiaries did not exceed the accrual for Tax liability (disregarding
any reserve for deferred Taxes established to reflect timing
differences between book and Tax income) set forth on the face of the
balance sheet in the most recent Company Financial Statement
(disregarding any notes thereto); (i) neither the Company nor
any Subsidiary (A) has been a member of any other affiliated
group filing a consolidated federal income Tax Return (except the
affiliated group of which the Company is the common parent) or
(B) has any liability for the Taxes of any person under Treasury
Regulations Section 1.1502-6 (or any similar provision of state,
local, or foreign law), as a transferee or successor, by contract, or
otherwise; (j) all Tax Returns filed by or on behalf of the
Company or any Subsidiary have been examined by the relevant
Governmental Entity or the statute of limitations with respect to such
Tax Returns has expired; (k) no claim has been made by any
Governmental Entity in a jurisdiction in which the Company or any of
the Subsidiaries does not file a Tax Return that the Company or any of
the Subsidiaries is or may be subject to taxation by such jurisdiction;
(l) neither the Company nor any Subsidiary is a party to or
bound by any tax allocation or sharing agreement; (m) no closing
agreement pursuant to Section 7121 of the Code (or any similar
provision of state, local or foreign Tax law), private letter rulings,
technical advice memoranda or similar agreement or ruling has been
entered into by or with respect to the Company or any of the
Subsidiaries; (n) neither the Company nor any of the
Subsidiaries is a party to any agreement, contract, arrangement or plan
that has resulted or could result, separately or in the aggregate, in
the payment of any amount that will not be fully deductible as a result
of Section 162(m) of the Code (or any corresponding provision of
state, local or foreign Tax law); (o) neither the Company nor
any Subsidiary has entered into, or otherwise participated (directly or
indirectly) in, any ‘‘reportable
transaction’’ within the meaning of Treasury Regulations
Section 1.6011-4(b) or has received a written opinion from a tax
advisor that was intended to provide protection against a tax penalty;
and (p) the Company has not made any distribution of stock, and
no distribution of stock of the Company has been made, in a transaction
described in Section 355 of the Code. For purposes of this
Agreement, ‘‘Tax’’ (and, with correlative
meaning, ‘‘Taxes’’) means any federal,
state, local or foreign income, gross receipts, property, sales, use,
license, excise, franchise, employment, payroll, premium, withholding,
alternative or added minimum, ad valorem, transfer or excise tax, or
any other tax, custom, duty, governmental fee or other like assessment
or charge of any kind whatsoever, together with any interest or penalty
or addition thereto, whether disputed or not, imposed by any
Governmental Entity; and ‘‘Tax Return’’
means any return, report or similar statement required to be filed with
respect to any Tax (including any attached schedules), including any
information return, claim for refund, amended return or declaration of
estimated Tax.

Section 3.11.    Title to Assets.    
The Company and each of the Subsidiaries have good and marketable title
to, or a valid leasehold interest in, all of their real and personal
properties and assets reflected in the Company 2004 10-K or acquired
after December 31, 2004 (other than assets disposed of since December
31, 2004 in the ordinary course of business consistent with past
practice) or otherwise used in the conduct of business of the Company
and the Subsidiaries, in each case free and clear of all title defects,
liens, encumbrances and restrictions, except for (a) liens,
encumbrances or restrictions that secure indebtedness that are
reflected in the Company 10-Q; (b) liens for Taxes accrued but not yet
payable; (c) liens arising as a matter of Law in the ordinary course of
business with respect to obligations incurred after 

11

December 31, 2004; provided that the
obligations secured by such liens are not delinquent; and (d) such
title defects, liens, encumbrances and restrictions, if any, as
individually or in the aggregate, have not had, and would not
reasonably be expected to have a Material Adverse Effect (each a
‘‘Company Permitted Lien’’). The Company
and each of the Subsidiaries either own, or have valid leasehold
interests in, all properties and assets used by them in the conduct of
their business, except where the absence of such ownership or leasehold
interest has not had, and would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse
Effect.

Section 3.12.    Change of Control
Agreements.     Neither the execution and delivery of this
Agreement nor the consummation of the Merger or the other transactions
contemplated by this Agreement, will (either alone or in conjunction
with any other event) result in, cause the accelerated vesting or
delivery of, or increase the amount or value of, any payment or benefit
to any director, officer or employee of the Company. Without limiting
the generality of the foregoing, no amount paid or payable by the
Company in connection with or by reason of the Merger or the other
transactions contemplated by this Agreement, including accelerated
vesting of options (either solely as a result thereof or as a result of
such transactions in conjunction with any other event) will be an
‘‘excess parachute payment’’ within the
meaning of Section 280G of the Code.

Section
3.13.    Litigation.     Section 3.13 of the Company
Disclosure Letter sets forth a true, correct and complete list of all
claims, suits, actions, governmental investigations, indictments or
administrative, arbitration or other legal proceedings
(‘‘Litigation’’) pending or, to the
Knowledge of the Company, threatened against the Company or any of the
Subsidiaries. No Litigation pending or, to the Knowledge of the
Company, threatened against the Company or any of the Subsidiaries has
had, or would reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect. Except for such matters which
have not had, and would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect, there are
no judgments, orders, injunctions, decrees, stipulations or awards
(whether rendered by a court, administrative agency, or by arbitration,
pursuant to a grievance or other procedure) against or relating to the
Company or any of the Subsidiaries.

Section
3.14.    Contracts and
Commitments.

(a)    As of the date of
this Agreement, neither the Company nor any of the Subsidiaries is a
party to or bound by any contract, arrangement, commitment or
understanding (whether written or oral) (i) that is a
‘‘material contract’’ (as such term is
defined in Item 601(b)(10) of Regulation S-K promulgated under the
Securities Act) to be performed after the date of this Agreement that
has not been filed or incorporated by reference in the Reports filed
prior to the date hereof, (ii) that materially restricts the conduct of
any material line of business by the Company, or the ability of the
Company to operate in any geographic area or upon consummation of the
Merger will materially restrict the ability of the Surviving
Corporation to engage in any line of business material to the Company
or to operate in any geographical area, (iii) with or to a labor union
or guild (including any collective bargaining agreement), (iv) relating
to the borrowing of money or any guarantee in respect of any
indebtedness of any person (other than the endorsement of negotiable
instruments for collection in the ordinary course of business),
(v) that extends ‘‘most favored
nations’’ or similar pricing to the counterparty to such
contract or (vi) between the Company and any of the Subsidiaries, on
the one hand, and any of the Company’s stockholders (in their
capacity as such), on the other hand. In addition, neither the Company
nor any of the Subsidiaries is a party to or bound by any written
employment contract. Each contract, arrangement, commitment or
understanding of the type described in the preceding two sentences of
this Section 3.14(a), whether or not set forth in the Company
Disclosure Letter, is referred to as a ‘‘Material
Contract,’’ and neither the Company nor any of the
Subsidiaries has Knowledge of any violation of any Material Contract by
any of the other parties thereto that has had, or would reasonably be
expected to have, individually or in the aggregate, a Material Adverse
Effect.

(b)    With such exceptions that
have not had, or would not reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect, (i) each Material
Contract is valid and binding on the Company or the applicable
Subsidiary, as applicable, and is in full force and effect, (ii) the
Company or the applicable Subsidiary has performed all obligations
required to be performed by 

12

it to date under each Material Contract, and
(iii) no event or condition exists that constitutes or, after notice or
lapse of time or both, will constitute, a default on the part of the
Company or any of the Subsidiaries under any such Material
Contract.

Section 3.15.    Information Supplied.    
The proxy statement to be mailed to the Company Stockholders in
connection with the meeting (the ‘‘Stockholders’
Meeting’’) to be called to consider the Merger (the
‘‘Proxy Statement’’) at the date the Proxy
Statement is filed with the SEC, first published, sent or delivered to
Company Stockholders or, unless promptly corrected, at any time during
the pendency of the Stockholders’ Meeting, as the case may be,
shall not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary in
order to make the statements made therein, in the light of the
circumstances under which they were made, not misleading. The Proxy
Statement filed with the SEC will comply as to form in all material
respects with the requirements of the Exchange Act. Notwithstanding the
foregoing, no representation or warranty is made by the Company with
respect to statements made or incorporated by reference therein based
on information supplied by Parent or Buyer for inclusion or
incorporation by reference in the Proxy Statement.

Section
3.16.    Employee Benefit Plans.     All employee benefit
plans (as defined in Section 3(3) of the Employee Retirement Income
Security Act of 1974 (‘‘ERISA’’)) and all
other agreements, plans, programs and policies which provide
compensation or benefits to current or former employees or directors or
independent contractors of the Company or any of the Subsidiaries and
with respect to which the Company or any Subsidiary has any material
liability, whether contingent or otherwise (individually a
‘‘Company Benefit Plan’’ and collectively
the ‘‘Company Benefit Plans’’), are
identified in Section 3.16 of the Company Disclosure Letter by the name
shown on their plan documents, and there are no Company Benefit Plans
other than the Company Benefit Plans identified in Section 3.16 of the
Company Disclosure Letter. A true and complete copy of each Company
Benefit Plan as currently in effect, any related trust agreement, any
ERISA required summary plan description and any Form 5500 filed for
2004, 2003 and 2002 (together with all related schedules, exhibits and
attachments) have been furnished to Parent. No Company Benefit Plan is
subject to Title IV of ERISA or Code Section 412. Except as would not,
individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect, (a) each Company Benefit Plan complies by its
terms and in its operation with all the applicable requirements of
ERISA, the Code and other applicable Law, (b) no Company Benefit Plan
is under audit or investigation by any government agency and to the
Knowledge of the Company no such audit or investigation is pending or
threatened, (c) each Company Benefit Plan intended to be qualified
under Section 401(a) of the Code is so qualified, and each plan has
received a favorable determination letter from the Internal Revenue
Service or a favorable opinion letter from the Internal Revenue Service
regarding the status of such plan as an approved prototype plan, (d)
neither the Company nor any of the Subsidiaries nor any ERISA Affiliate
has any liability, contingent or otherwise, under any benefit plan that
is subject to Title IV of ERISA or Section 412 of the Code or is
described in Section 413 of the Code or Section 3(37) or Section 3(40)
of ERISA, (e) neither any Company Benefit Plan nor the Company nor any
Subsidiary or ERISA Affiliate has any liability under Chapter 43 of the
Code or Section 409 or Section 502(i) of ERISA which has not been
satisfied in full or, to the Knowledge of the Company, has engaged in
any transaction that would reasonably be expected to result in any such
liability, (f) all contributions which are called for under the terms
of any Company Benefit Plan or ERISA or the Code or other applicable
Law have been made in full on or before the deadline for making such
contributions, (g) there is no Litigation against or otherwise
involving any of the Company Benefit Plans and no Litigation (excluding
claims for benefits incurred in the ordinary course of Company Benefit
Plan activities) has been brought against or with respect to any such
Company Benefit Plan and, to the Knowledge of the Company, no such
Litigation is pending or threatened and (h) except as required by Law,
neither the Company nor any of the Subsidiaries has any liability,
contingent or otherwise, under any Company Benefit Plan to provide life
insurance or medical or other employee welfare benefits to any current
or former employee or director or independent contractor upon his or
her retirement or termination of employment or service, and neither the
Company nor any of the Subsidiaries has ever agreed (whether in oral or
written form) to provide any such benefits any current or former
employee or director or independent contractor. ‘‘ERISA

13

Affiliate’’ means any entity
whose employees are treated as employees of the Company or a Subsidiary
under Sections 414(b), (c), (m) or (o) of the Code or Section
4001(a)(14) of ERISA.

Section 3.17.    Labor and Employment
Matters.

(a)    Neither the Company nor
any of the Subsidiaries is a party to, or bound by, any collective
bargaining agreement or other contracts, arrangements, agreements or
understandings with a labor union or labor organization that was
certified by the National Labor Relations Board
(‘‘NLRB’’) or any other Governmental
Entity. There is no existing, pending or, to the Knowledge of the
Company, threatened (i) unfair labor practice charge or complaint,
labor dispute, labor arbitration proceeding or any other matter before
the NLRB or any other comparable state agency against or involving the
Company or any of the Subsidiaries, (ii) activity or proceeding by a
labor union or representative thereof to organize any employees of the
Company or any of the Subsidiaries, (iii) certification or
decertification question relating to collective bargaining units at the
premises of the Company or any of the Subsidiaries or (iv) lockout,
strike, organized slowdown, work stoppage or work interruption with
respect to such employees.

(b)    Since
January 1, 2003, neither the Company nor any of the Subsidiaries has
experienced any labor strike, work slowdown or stoppage or other
material labor dispute and there is no such strike, slowdown, stoppage,
or dispute actually pending or, to the Knowledge of the Company,
threatened against or affecting the Company or any of the
Subsidiaries.

(c)    There are no
investigations, administrative proceedings, charges or formal
complaints of discrimination (including discrimination based upon sex,
age, marital status, race, national origin, sexual preference,
disability, handicap, veteran status, or other protected category)
pending or, to the Knowledge of the Company, threatened before the
Equal Employment Opportunity Commission or any federal, state or local
agency or court against or involving the Company or any of the
Subsidiaries that involve allegations of disparate impact, pattern or
practice or class-wide discrimination.

Section
3.18.    Environmental
Compliance.

(a)    Except as otherwise
does not have, and would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect, (i) the
Company possesses, and is in compliance in all material respects with,
all permits, licenses and government authorizations and has filed all
notices that are required under local, state and federal Laws relating
to protection of the environment or human health, pollution control,
product registration and hazardous materials
(‘‘Environmental Laws’’) applicable to the
Company, and (ii) the Company is in compliance with all applicable
limitations, restrictions, conditions, standards, prohibitions,
requirements, obligations, schedules and timetables contained in those
Laws or contained in any Law or demand letter issued, entered,
promulgated or approved
thereunder.

(b)    There are no pending or,
to the Knowledge of the Company, threatened legal, administrative,
arbitral or other proceedings, claims, actions, causes of action,
private environmental investigations or remediation activities, or
governmental investigations, requests for information or notices of
violation of any nature seeking to impose, or that are reasonably
likely to result in the imposition, on the Company or any of the
Subsidiaries, of any liability or obligation arising under common law
or under any Environmental Law (including the federal Comprehensive
Environmental Response, Compensation and Liability Act), which
liability or obligation, individually or in the aggregate, has or would
reasonably be expected to have a Material Adverse Effect. To the
Knowledge of the Company, there is no reasonable basis for any such
proceeding, claim, action, investigation or remediation that would
impose any liability or obligation that, individually or in the
aggregate, has or would reasonably be expected to have a Material
Adverse Effect. Neither the Company nor any of the Subsidiaries is
subject to any agreement, order, judgment, decree, directive or lien by
or with any Governmental Entity or third party with respect to any
environmental liability or obligation that, individually or in the
aggregate, has or would reasonably be expected to have a Material
Adverse Effect.

Section 3.19.    Intellectual
Property.     Except as does not have and would not reasonably
be expected to have, individually or in the aggregate, a Material
Adverse Effect:

14

(a)    (i) the
Company has good and exclusive title to each item of the Intellectual
Property Rights; (ii) the Intellectual Property Rights are free and
clear of any liens, claims or encumbrances, are not subject to any
license (royalty bearing or royalty free) and are not subject to any
other arrangement requiring any payment to any person or the obligation
to grant such rights to any person in exchange for payment or other
consideration; (iii) to the Knowledge of the Company, the
Company’s rights in the Licensed Rights and all other material
rights in the Licensed Rights are free and clear of any liens, claims,
encumbrances, royalties or other obligations; and (iv) the Intellectual
Property Rights and the Licensed Rights are all those material
intellectual property rights necessary to the conduct of the business
of each of the Company and the Subsidiaries as presently conducted. The
validity of the Intellectual Property Rights and title thereto, (A)
have not been questioned in any prior Litigation; (B) are not being
questioned in any pending Litigation; and (C) to the Knowledge of the
Company, are not the subject of any threatened or proposed
Litigation.

(b)    To the Knowledge of the
Company, the business of each of the Company and the Subsidiaries, as
presently conducted, does not conflict with or infringe on and has not
been alleged to conflict with or infringe on any patents, trademarks,
trade names, service marks, copyrights, trade secrets or other
intellectual property rights of others or to constitute unfair
competition or trade practices under the laws of any jurisdiction in
which the Company and the Subsidiaries
operate.

(c)    The consummation of the
transactions contemplated hereby will not result in the loss or
impairment of any of the Intellectual Property Rights or the
Company’s or the Subsidiaries’ right to use any of the
Licensed Rights. To the Knowledge of the Company, there are no third
parties using any of the Intellectual Property Rights material to the
business of the Company or the Subsidiaries as presently
conducted.

(d)    Each of the Company and the
Subsidiaries exclusively owns, or possesses valid rights to, all
computer software programs that are material to the conduct of the
business of the Company and the Subsidiaries. To the Company’s
Knowledge, there are no infringement or misappropriation suits, actions
or proceedings pending or threatened against the Company or any
Subsidiary with respect to any software owned or licensed by the
Company or any Subsidiary. The use by each of the Company and the
Subsidiaries of computer software licensed by others to the Company or
the Subsidiaries does not breach any terms of any license or other
contract between the Company or the Subsidiaries and any third party.
The Company and the Subsidiaries are in compliance with the terms and
conditions of all license agreements in favor of the Company and the
Subsidiaries relating to computer software programs licensed by others
for use by the Company or the
Subsidiaries.

(e)    For purposes of this
Section 3.19, (i) ‘‘Intellectual Property
Rights’’ means all United States and foreign patents and
patent applications, all United States and foreign trademark, service
mark and copyright registrations and applications therefor, all
internet uniform resource locator and domain name registrations and
applications therefor, and all material trademarks, trade names,
service marks, domain names and copyrights owned by the Company and the
Subsidiaries, and (ii) ‘‘Licensed Rights’’
means all United States and foreign patents, trademarks, trade names,
service marks and copyrights licensed to the Company or any of the
Subsidiaries.

Section 3.20.    Undisclosed
Liabilities.     Except for those liabilities that are reflected
or reserved against on the Company’s consolidated balance sheet
or disclosed in the notes to the Unaudited Company’s Financial
Statements, in each case included in the Company 10-Q, and for
liabilities incurred in the ordinary course of business consistent with
past practice since September 30, 2005 or liabilities incurred in
connection with this Agreement and the transactions contemplated
hereby, neither the Company nor any of the Subsidiaries has any
liability or obligation of any nature whatsoever (whether absolute,
accrued, contingent or otherwise and whether due or to become due and
including any off-balance sheet loans, financings, indebtedness,
make-whole or similar liabilities or obligations) that, individually or
in the aggregate, has had or would reasonably be expected to have a
Material Adverse Effect.

Section
3.21.    Brokers.     Except pursuant to the engagement
letters between each of the Independent Advisors and the Company, no
broker, finder or investment banker is entitled to any brokerage,
finder’s or other fee or commission in connection with this
Agreement, the Merger or the other 

15

transactions contemplated by this Agreement
based upon arrangements made by or on behalf of the Company. Section
3.21 of the Company Disclosure Letter includes a complete and correct
copy of all agreements between the Company and each Independent Advisor
pursuant to which each such firm would be entitled to any payment
relating to this Agreement, the Merger or the other transactions
contemplated by this Agreement.

Section 3.22.    Related
Party Transactions.     To the Knowledge of the Company, no
officer or director of the Company or any of the Subsidiaries owns or
holds, directly or indirectly, any interest in (excepting holdings
solely for passive investment purposes of securities of publicly held
and traded entities constituting less than 5% of the equity of
any such entity), or is an officer, director, employee or consultant of
any person that is, a competitor, lessor, lessee or supplier of the
Company or which conducts a business similar to any business conducted
by the Company. No officer or director of the Company or any of the
Subsidiaries (a) owns or holds, directly or indirectly, in whole or in
part, any intellectual property used by the Company or any of the
Subsidiaries, (b) to the Knowledge of the Company, has any claim,
charge, action or cause of action against the Company or any of the
Subsidiaries, except for claims for reasonable unreimbursed travel or
entertainment expenses, accrued vacation pay or accrued benefits under
any employee benefit plan existing on the date hereof, (c) to the
Knowledge of the Company, has made, on behalf of the Company or any of
the Subsidiaries, any payment or commitment to pay any commission, fee
or other amount to, or to purchase or obtain or otherwise contract to
purchase or obtain any goods or services from, any other person of
which any officer or director of the Company or any of the Subsidiaries
is a partner or shareholder (except holdings solely for passive
investment purposes of securities of publicly held and traded entities
constituting less than 5% of the equity of any such entity), (d)
owes any money to the Company or any of the Subsidiaries or (e) to the
Knowledge of the Company, has any material interest in any property,
real or personal, tangible or intangible, used in or pertaining to the
business of the Company or any of the Subsidiaries.

Section
3.23.    Anti-Takeover
Provisions.

(a)    No
‘‘moratorium,’’ ‘‘control
share,’’ ‘‘fair price,’’
‘‘business combination’’ or other
antitakeover Laws are applicable to the Merger or any of the other
transactions contemplated by this Agreement or the Stockholders
Agreement. Except for Company Rights and related plan, the Company is
not a party to any stockholder rights agreement or otherwise subject to
a stockholder rights plan or similar
arrangement.

(b)    The Company has or will
have as of the date hereof amended the Rights Agreement to provide that
(i) neither Parent nor Buyer shall be deemed an Acquiring Person and
(ii) the Company Rights will not separate from the Shares, in each case
as a result of entering into this Agreement or the Stockholders
Agreement or consummating the Merger and the other transactions
contemplated hereby and thereby. The Company has taken all necessary
action with respect to all of the outstanding Company Rights so that,
as of the Effective Time, (A) neither the Company, Parent nor Buyer
will have any obligations under the Company Rights or the Rights
Agreement, and (B) the holders of the Company Rights will have no
rights with respect to the Company Rights or under the Rights
Agreement.

Section 3.24.    Company
Indentures.

(a)    Neither the Company
nor any of the Subsidiaries has made any ‘‘Restricted
Payments’’ pursuant to, nor has any of them otherwise
utilized any of the capacity provided for under, clause (b) of Section
4.03 of the Indentures. ‘‘Indentures’’
means (i) the Indenture, dated as of November 10, 2003, related to the
11% Senior Notes due 2010 issued by Alamosa (Delaware), Inc.,
(ii) the Indenture, dated as of November 10, 2003, related to the
12% Senior Discount Notes due 2009 issued by Alamosa (Delaware),
Inc., (iii) the Indenture, dated as of January 20, 2004, related to the
8 1/2% Senior Notes due 2012 issued by Alamosa (Delaware), Inc.,
(iv) the Indenture, dated as of January 31, 2001, related to the 12
1/2% Senior Notes due 2011 issued by Alamosa (Delaware) Inc.,
(v) the Indenture, dated as of August 15, 2011, related to the 13
5/8% Senior Notes due 2011 issued by Alamosa (Delaware) Inc.,
(vi) the Indenture, dated as of February 20, 2004, related to the 9
7/8% Senior Subordinated Secured Notes due 2009 issued by
AirGate PCS, Inc., AGW Leasing Company, Inc., AirGate Network Services,
LLC and AirGate Service Company, Inc. (collectively, the
‘‘AirGate 

16

Entities’’) and (vii) the
Indenture, dated as of October 25, 2004, related to the First Priority
Senior Secured Floating Rate Notes due 2011 issued by the AirGate
Entities.

(b)    No ‘‘Event of
Default’’ (as defined in each of the Indentures) has
occurred and is continuing under either of the Indentures, and neither
the Company nor any of the Subsidiaries has previously received a
waiver of any Event of Default under either of the
Indentures.

Section 3.25.    Disclaimer.    
Notwithstanding anything in this Agreement to the contrary, the Company
does not make (and shall not be deemed to make) any representation or
warranty regarding any contract, agreement, arrangement, development,
fact or circumstance involving or relating to Parent or any of its
affiliates, other than this Agreement and the Merger.

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES OF PARENT AND
BUYER

Each of Parent and Buyer jointly and severally
represents and warrants to the Company as follows:

Section
4.1.    Organization and Standing.     Such person (a) is
a corporation duly organized, validly existing and in good standing
under the Laws of its jurisdiction of incorporation and (b) is duly
qualified or licensed to do business as a foreign corporation and is in
good standing in each jurisdiction where the character of the
properties owned, leased or operated by it or the nature of its
business makes such qualification or licensing necessary, except where
the failure to be so qualified or licensed has not had, and would not
reasonably be expected to have, individually or in the aggregate, a
material adverse effect on the ability of Parent or Buyer to perform
its respective obligations under this Agreement and to consummate the
Merger and the other transactions contemplated by this
Agreement.

Section 4.2.    Authority for Agreement;
Enforceability.     Such person has all necessary corporate
power and authority to execute and deliver this Agreement, to perform
its obligations hereunder and to consummate the Merger and the other
transactions contemplated by this Agreement. The execution, delivery
and performance by such person of this Agreement, and the consummation
by each such person of the Merger and the other transactions
contemplated by this Agreement, have been duly authorized by all
necessary corporate action and no other corporate proceedings on the
part of such person are necessary to authorize this Agreement or to
consummate the Merger or the other transactions contemplated by this
Agreement (other than, with respect to the Merger, the filing and
recordation of the certificate of merger as required by the DGCL). This
Agreement has been duly executed and delivered by such person and,
assuming due authorization, execution and delivery by the Company,
constitutes a legal, valid and binding obligation of each such person
enforceable against such person in accordance with its
terms.

Section 4.3.    No Conflict.     The
execution and delivery of this Agreement by such person do not, and the
performance of this Agreement by such person and the consummation of
the Merger and the other transactions contemplated by this Agreement
and the Stockholders Agreement will not, (a) conflict with or violate
the articles or certificate of incorporation or bylaws of such person,
(b) conflict with or violate any Law applicable to such person, or (c)
result in a breach of or constitute a default (or an event which with
notice or lapse of time or both would become a default) under, give to
others any right of termination, amendment, acceleration or
cancellation of, or result in triggering any payment or other
obligations, or result in the creation of a lien or other encumbrance
on any property or asset of such person pursuant to, any note, bond,
mortgage, indenture, contract, agreement, lease, license, permit,
franchise or other instrument or obligation to which such person is a
party or by which such person or any property or asset of either of
them is bound or affected, except in the case of clauses (b) and (c)
for any such conflicts, violations, breaches, defaults or other
occurrences that have not, and would not reasonably be expected to,
individually or in the aggregate, prevent or materially delay the
performance by such person of any of its respective obligations under
this Agreement or the consummation of the Merger or the other
transactions contemplated by this Agreement.

Section
4.4.    Required Filings and Consents.     The execution
and delivery of this Agreement by such person do not, and the
performance of this Agreement by such person will not, require any
consent, 

17

approval, authorization or permit of, or
filing with or notification to, any Governmental Entity, except (a) for
applicable requirements, if any, of Blue Sky Laws and filing and
recordation of the certificate of merger as required by the DGCL, (b)
for those required by the HSR Act, (c) for the FCC Filings, (d) for
such filings and approvals as are required to be made or obtained with
or from any state public service or public utility commission or
similar state regulatory bodies in connection with the consummation of
the Merger and the other transactions contemplated by this Agreement
and (e) where failure to obtain such consents, approvals,
authorizations or permits, or to make such filings or notifications,
would not, and would not reasonably be expected to, individually or in
the aggregate, prevent or materially delay the performance by such
person of any of its respective obligations under this Agreement or the
consummation of the Merger or the other transactions contemplated by
this Agreement.

Section 4.5.    Information
Supplied.     None of the information supplied or to be supplied
by such person for inclusion or incorporation by reference in the Proxy
Statement will, at the date the Proxy Statement is filed with the SEC,
first published, sent or delivered to Company Stockholders or, unless
promptly corrected, at any time during the pendency of the
Stockholders’ Meeting, as the case may be, contain any untrue
statement of a material fact or omit to state any material fact
required to be stated therein or necessary in order to make the
statements made therein, in light of the circumstances under which they
were made, not misleading. Notwithstanding the foregoing, no
representation or warranty is made by such person with respect to
statements made or incorporated by reference therein based on
information supplied by the Company for inclusion or incorporation by
reference in the Proxy Statement.

Section
4.6.    Brokers.     No broker, finder or investment
banker (other than Citigroup Global Markets Inc.) is entitled to any
brokerage, finder’s or other fee or commission payable by such
person in connection with this Agreement, the Merger or the other
transactions contemplated by this Agreement based upon arrangements
made by or on behalf of such person.

Section 4.7.    No
Prior Activities.     Except for obligations or liabilities
incurred in connection with its incorporation or organization or the
negotiation and consummation of this Agreement, the Merger and the
transactions contemplated hereby, Buyer has not incurred any
obligations or liabilities, and has not engaged in any business or
activities of any type or kind whatsoever or entered into any
agreements or arrangements with any person or entity.

Section
4.8.    Available Funds.     At the Effective Time, Parent
and Buyer will have available all of the funds necessary for the
acquisition of all shares of Company Capital Stock pursuant to the
Merger and to perform their respective obligations under this
Agreement.

Section 4.9.    Ownership of Company Capital
Stock; Affiliates and
Associates.

(a)    Neither Parent, Buyer
nor any of their respective affiliates or associates (as such terms are
defined under the Exchange Act) (i) beneficially owns, directly or
indirectly, or (ii) is a party to any agreement, arrangement or
understanding for the purpose of acquiring, holding, voting or
disposing of, any shares of capital stock of the Company, except in
each case for (A) shares held solely for passive investment purposes
and (B) any Company Warrants, provided that the aggregate of the shares
of capital stock held by Parent, Buyer and their respective affiliates
and associates constitute less than 5% of the outstanding shares
of Company Capital Stock; and

(b)    Neither
Parent, Buyer or any of their respective subsidiaries is an
‘‘interested stockholder’’ of the Company
or an ‘‘associate’’ or
‘‘affiliate’’ of any
‘‘interested stockholder’’ of the Company
(as such terms are defined in Section 203 of the DGCL).

Section
4.10.    Disclaimer.     Notwithstanding anything
in this Agreement to the contrary, neither Parent nor Buyer makes (and
shall not be deemed to make) any representation or warranty regarding
any contract, agreement, arrangement, development, fact or circumstance
involving or relating to the Company or any of its affiliates, other
than this Agreement and the Merger and the ownership of capital stock
of the Company.

18

ARTICLE
V

COVENANTS

Section 5.1.    Conduct of the
Business Pending the Merger.

(a)    The
Company covenants and agrees that between the date of this Agreement
and the Effective Time, except as otherwise provided in Section 5.1(a)
of the Company Disclosure Letter or unless Parent shall otherwise
consent in writing (such consent not to be unreasonably withheld), (i)
the business of the Company and the Subsidiaries shall be conducted
only in the ordinary course of business and in a manner consistent with
prior practice, (ii) the Company and the Subsidiaries shall use all
commercially reasonable efforts to preserve substantially intact their
business organizations, to keep available the services of their current
officers and employees and to preserve the current relationships of the
Company and the Subsidiaries with customers, suppliers and other
persons with which the Company or the Subsidiaries have significant
business relations such that their ongoing businesses shall not be
impaired in any material respect at the Effective Time, and (iii) the
Company will comply in all material respects with all applicable Laws
wherever its business is conducted, including the filing of all
reports, forms or other documents with the FCC and with the SEC
required pursuant to the Securities Act or the Exchange
Act.

(b)    The Company covenants and agrees
that between the date of this Agreement and the Effective Time, the
Company shall not, nor shall the Company permit any of the Subsidiaries
to, (i) declare or pay any dividends on or make other distributions
(whether in cash, stock or property) in respect of any of its capital
stock, except for dividends by a wholly owned Subsidiary of the Company
to the Company or another wholly owned Subsidiary of the Company; (ii)
split, combine or reclassify any of its capital stock or issue or
authorize or propose the issuance of any other securities in respect
of, in lieu of or in substitution for shares of its capital stock;
(iii) repurchase or otherwise acquire any shares of its capital stock;
or (iv) except as set forth in Section 5.1(b) of the Company Disclosure
Letter, issue, deliver or sell, or authorize or propose the issuance,
delivery or sale of, any shares of its capital stock or any securities
convertible into any such shares of its capital stock, or any rights,
warrants or options to acquire any such shares or convertible
securities or any stock appreciation rights, phantom stock plans or
stock equivalents, other than the issuance of shares of Company Common
Stock (A) upon the exercise of Company Warrants or Company Options
outstanding as of the date of this Agreement, (B) upon the conversion
of any Series B Preferred Stock or (C) under the ESPP as described in
Section 1.7.

(c)    Except as set forth in
Section 5.1(c) of the Company Disclosure Letter, the Company covenants
and agrees that between the date of this Agreement and the Effective
Time without the prior written consent of Parent (which consent shall
not be unreasonably withheld), the Company shall not, nor shall the
Company permit any of the Subsidiaries to, (i) amend its certificate of
incorporation or bylaws (or other equivalent organizational documents);
(ii) incur any indebtedness for borrowed money or guaranty any such
indebtedness of another person, other than (A) borrowings under
existing lines of credit (or under any refinancing of such existing
lines) or (B) indebtedness owing to, or guaranties of indebtedness
owing to, the Company; (iii) make any loans or advances to any other
person other than loans or advances between any Subsidiary or between
the Company and any Subsidiary (other than loans or advances less than
$100,000 made in the ordinary course of business consistent with past
practice); (iv) except as permitted in Section 5.5(b), merge or
consolidate with any other entity in any transaction, or acquire (other
than capital expenditures permitted by Section 5.1(d)) or sell any
business or assets in a single transaction or series of transactions in
which the aggregate consideration is $200,000 or greater or enter into
any partnership, joint venture or similar arrangement; (v) change any
material accounting policies or methods of accounting in effect at
September 30, 2005, except as required by the SEC or as required by
GAAP as concurred with by the Company’s independent auditors;
(vi) make any change in employment terms for any of its directors or
officers; (vii) alter, amend or create any obligations with respect to
compensation, severance, benefits, change of control payments or any
other payments to employees, directors or affiliates of the Company or
the Subsidiaries, other than with respect to alterations, amendments or
creations made with respect to non-officers and non-directors in the
ordinary course 

19

of business consistent with past practice or
required by applicable Law or as expressly contemplated by this
Agreement or consented to in writing by Parent; (viii) other than as
required by applicable Law, make any change to the Company Benefit
Plans; (ix) acquire, or participate in any auction or other process
related to the acquisition of, personal communications service licenses
or wireless spectrum; (x) settle any material claim, action or
proceeding, except to the extent subject to and not in excess of
reserves that relate to the matter being settled existing as of
September 30, 2005; (xi) other than the renewal in the ordinary course
of business, amend in any material respect, waive any of its material
rights under, or enter into any agreements, arrangements or commitments
that would be required to be disclosed in Section 3.14 or Section 3.22
of the Company Disclosure Letter; (xii) except as required by Law, make
or change any election with respect to Taxes or change any accounting
method, file any claim for refund or any amended Tax Return, settle any
Tax dispute or waive or extend the statute of limitations relating to
any Taxes of the Company or any Subsidiary; or (xiii) apply for or
otherwise seek to obtain any License issued or granted by the FCC; or
(xiv) commit or agree to take any of the actions described in this
Section 5.1.

(d)    Section 5.1(d) of
the Company Disclosure Letter sets forth the projected capital
expenditures for the Company and the Subsidiaries on a consolidated
basis from the date of this Agreement through December 31, 2006. The
Company agrees that it shall not incur capital expenditures, in the
aggregate, in excess of such projected capital
expenditures.

Section 5.2.    Access to Information;
Confidentiality.

(a)    From the date
hereof to the Effective Time, the Company shall, and shall cause the
officers, directors, employees, auditors, attorneys, financial
advisors, lenders and other agents (collectively, the
‘‘Representatives’’) of the Company to,
afford the Representatives of Parent and Buyer reasonable access at all
reasonable times to the officers, employees, agents, properties,
offices and other facilities, books and records of the Company and the
Subsidiaries, and shall furnish Parent and Buyer with all financial,
operating and other data and information as Parent or Buyer, through
its Representatives, may reasonably request, except in each case with
respect to any document or other information with respect to any
potential or current litigation between the Company and the
Subsidiaries, on the one hand, and Parent or any of its affiliates, on
the other hand, that is subject to an attorney-client or other
privilege or constitutes attorney work product (collectively with all
analyses, compilations, studies or other documents or records prepared
by Parent, Buyer or any of their Representatives that contain or are
otherwise reflect or are generated from such information, the
‘‘Confidential Information’’); provided,
however, that ‘‘Confidential Information’’
does not include any information provided by the Company or any of its
subsidiaries to Parent or any of its subsidiaries pursuant to any
Sprint PCS Management Agreement or related agreement in effect between
the Company or any of its subsidiaries, on the one hand, or Parent or
any of its subsidiaries, on the other hand (each a
‘‘Sprint PCS Management Agreement’’, and
collectively, the ‘‘Sprint PCS Management
Agreements’’), which information shall be treated in
accordance with the terms of the applicable Sprint PCS Management
Agreement (the ‘‘Management Agreement
Information’’). In addition, from the date hereof to the
Effective Time, the Company shall, and shall cause its Representatives
to, cooperate and consult with Parent regarding transition planning and
post-closing integration issues as reasonably requested by Parent. To
facilitate such cooperation and consultation, the Company shall make
available to such Representatives of Parent office space and
secretarial or other administrative services as reasonably requested by
Parent. The use of any information, including Confidential Information
or Management Agreement Information, for the purpose of evaluating the
Merger or the other transactions contemplated by this Agreement that
Parent or Buyer or any of their affiliates may possess regarding the
Company or any of its affiliates, including information provided under
any agreement to which Parent, Buyer or any of its affiliates, on the
one hand, and the Company or any of its affiliates, on the other hand,
are a party, shall not be deemed a breach of any non-competition,
non-disclosure or non-use agreement or other restrictive agreement
between the Company and Parent with respect
thereto.

(b)    All Confidential Information
furnished by Company or its Representatives to Parent, Buyer or their
respective Representatives, as the case may be, shall be treated as the
sole property of the Company and, if the Merger shall not occur,
Parent, Buyer and their respective representatives 

20

shall return to the Company all documents
furnished by the Company or its Representatives without retaining
copies thereof and shall destroy all other information and all
documents, notes, summaries or other materials containing, reflecting
or referring to, or derived from, such Confidential Information (except
that Management Agreement Information shall not be required to be so
destroyed pursuant to this Section 5.2(b)) and upon the
Company’s request, an officer of Parent shall certify the same
to the Company. Each of Parent and Buyer shall, and shall use all
commercially reasonable efforts to cause their Representatives to, keep
confidential all Confidential Information, and shall not directly or
indirectly use any Confidential Information for any competitive or
other commercial purpose. The obligation to keep Confidential
Information confidential shall continue for two years from the date the
proposed Merger is abandoned and shall not apply to (i) any
Confidential Information which (x) was already in Parent's
possession prior to the disclosure thereof by the Company or its
Representatives and that is not otherwise subject to obligations of
confidentiality (for purposes of clarity, Confidential Information that
is also Management Agreement Information will remain subject to the
confidentiality terms of the applicable Sprint PCS Management
Agreement); (y) was then generally known to the public other than as a
result of a disclosure by Parent, Buyer or any of their Representatives
in violation of this Agreement or other obligations of confidentiality
(including those under any Sprint PCS Management Agreement); or (z) was
disclosed to Parent, Buyer or their respective Representatives by a
third party not bound by an obligation of confidentiality or (ii)
disclosures made as required by Law. If in the absence of a protective
order or the receipt of a waiver hereunder Parent or Buyer is
nonetheless, in the opinion of its independent outside legal counsel,
compelled to disclose Confidential Information to any tribunal or
governmental body or agency or else stand liable for contempt or suffer
other censure or penalty, Parent or Buyer, as the case may be, may
disclose such Confidential Information, after written notice to the
Company, to such tribunal or governmental body or agency. Parent and
Buyer shall use commercially reasonable efforts to obtain reliable
assurance that confidential treatment will be accorded to the
Confidential Information so disclosed and will furnish only that
portion of Confidential Information that Parent or Buyer is advised by
its independent outside legal counsel is required. It is further agreed
that Parent and Buyer shall not be liable for the disclosure of
Confidential Information hereunder to a tribunal or governmental body
or agency compelling such disclosure unless such disclosure was not in
accordance with this Agreement or was caused by or resulted from a
previous disclosure by Parent, Buyer or any of their Representatives
not permitted hereunder.

(c)    No
investigation pursuant to this Section 5.2 shall affect any
representation or warranty in this Agreement of any party or any
condition to the obligations of the parties.

Section
5.3.    Notification of Certain Matters.     The Company
shall give prompt notice to Parent of any change or event (i) that has
or would reasonably be expected to have a Material Adverse Effect or
(ii) that it believes results or would reasonably be expected to result
in a failure of the condition set forth in Section 6.2(a). Parent shall
give prompt notice to the Company of any change or event (i) that has
or would reasonably be expected to have a material adverse effect on
the ability of Parent or Buyer to perform its respective obligations
under this Agreement or to consummate the Merger and the other
transactions contemplated by this Agreement or (ii) that it believes
results or would reasonably be expected to result in a failure of the
conditions set forth in Section 6.3. The delivery of any notice
pursuant to this Section 5.3, however, shall not limit or
otherwise affect the remedies available hereunder to the party
receiving such notice. If any event or matter arises after the date of
this Agreement that, if existing or occurring at the date of this
Agreement, would have been required to be set forth or described in the
Company Disclosure Letter or that is necessary to correct any
information in the Company Disclosure Letter that has been rendered
inaccurate thereby, then the Company shall promptly supplement, or
amend the Company Disclosure Letter that it has delivered pursuant to
this Agreement and deliver such supplement or amendment to Parent;
provided that such supplement or amendment shall be for
informational purposes only and shall not enlarge, reduce or otherwise
modify the rights of the parties hereunder (including the right of any
party to assert the failure of a condition to Closing set forth in
Article VI without regard to any such supplement or
amendment).

21

Section 5.4.    Further
Assurances.

(a)    Upon the terms and
subject to the conditions hereof, each of the parties shall use all
commercially reasonable efforts to take, or cause to be taken, all
appropriate action, and to do, or cause to be done, all things
necessary, proper or advisable under Law, subject to Section 5.5,
to consummate and make effective the Merger and the other
transactions contemplated by this Agreement, including using all
commercially reasonable efforts to obtain all licenses, permits,
consents, approvals, authorizations, qualifications and orders of each
Governmental Entity and parties to contracts with the Company and the
Subsidiaries as are necessary for the consummation of the Merger and
the other transactions contemplated by this Agreement and to fulfill
the conditions set forth in Article VI. If at any time after the
Effective Time any further action is necessary or desirable to carry
out the purposes of this Agreement, the proper officers of each party
to this Agreement and the Surviving Corporation, subject to Section
5.5, shall use all commercially reasonable efforts to take all
such action.

(b)    In connection with, and
without limiting the foregoing, the Company shall (i) take all
commercially reasonable actions necessary to ensure that no state
antitakeover statute or similar statute or regulation is or becomes
operative with respect to this Agreement, the Merger or any other
transactions contemplated by this Agreement and (ii) if any state
antitakeover statute or similar statute or regulation is or becomes
operative with respect to this Agreement, the Merger or any other
transaction contemplated by this Agreement, take all commercially
reasonable actions necessary to ensure that this Agreement, the Merger
and any other transactions contemplated by this Agreement may be
consummated as promptly as practicable on the terms contemplated by
this Agreement and otherwise to minimize the effect of such statute or
regulation on the Merger and the other transactions contemplated by
this Agreement.

Section 5.5.    Board
Recommendations.

(a)    In connection
with the Merger and the Stockholders’ Meeting, the Board of
Directors of the Company shall (i) subject to Section 5.5(b),
recommend to the Company Stockholders to vote in favor of the
approval of the Merger Agreement and the Merger and use all
commercially reasonable efforts to obtain the necessary approvals by
the Company Stockholders of this Agreement, the Merger and the other
transactions contemplated by this Agreement and (ii) otherwise comply
with the legal requirements applicable to such
meeting.

(b)    Neither the Board of
Directors of the Company nor any committee thereof shall, except as
expressly permitted by this Section 5.5(b), (i) withdraw,
qualify or modify, or propose publicly to withdraw, qualify or modify
the approval or recommendation of such Board of Directors or such
committee of the Merger or this Agreement, (ii) approve or recommend,
or propose publicly to approve or recommend, any Alternative
Transaction (any action described in clause (i) above or in this clause
(ii) being referred to as an ‘‘Adverse Recommendation
Change’’), or (iii) cause the Company to enter into any
letter of intent, agreement in principle, acquisition agreement or
other similar agreement (other than a confidentiality agreement in
compliance with the provisions of Section 5.9(b) (each, an
‘‘Acquisition Agreement’’) related to any
transaction involving an Acquisition Proposal from a third party (an
‘‘Alternative Transaction’’).
Notwithstanding the foregoing, if prior to the adoption of this
Agreement by the Company Stockholders, the Board of Directors of the
Company determines in good faith, after it has received a Superior
Proposal in compliance with this Section 5.5(b) and after receipt of
advice from outside counsel, that it is required to do so to comply
with fiduciary duties to the Company Stockholders under applicable
Delaware Law, the Board of Directors of the Company may (subject to
this and the following sentences) make an Adverse Recommendation
Change, but only at a time that is after the fourth business day
following Parent’s receipt of written notice advising Parent
that the Board of Directors of the Company has received a Superior
Proposal or an Acquisition Proposal that is reasonably likely to be a
Superior Proposal. Such written notice shall specify the material terms
and conditions of such Superior Proposal or Acquisition Proposal (and
include a copy thereof with all accompanying documentation, if in
writing), identify the person making such Superior Proposal and state
that the Board of Directors of the Company is considering making an
Adverse Recommendation Change. 

22

During such four business day period, the
Company shall provide an opportunity for Parent to propose such
adjustments to the terms and conditions of this Agreement as would
enable the Company to proceed with its recommendation to the Company
Stockholders without an Adverse Recommendation Change; provided,
however, that any such proposed adjustment shall be at the
discretion of Parent at the time. For purposes of this Agreement, a
‘‘Superior Proposal’’ means any proposal
(on its most recently amended or modified terms, if amended or
modified) made by a third party to enter into an Alternative
Transaction that the Board of Directors of the Company determines in
its good faith judgment (based on the advice of an independent
financial advisor) to be more favorable to the Company Stockholders
than the Merger, taking into account all relevant factors (including
whether, in the good faith judgment of the Board of Directors of the
Company, after obtaining the advice of such independent financial
advisor, the third party is reasonably able to finance the transaction,
and any proposed changes to this Agreement that may be proposed by
Parent in response to such Alternative Transaction). Notwithstanding
any such Adverse Recommendation Change, the Company shall submit this
Agreement to the Company Stockholders, with such disclosures as shall
be required by Law, and provided that in the event of an Adverse
Recommendation Change permitted under this Section 5.5(b), the Company
may submit this Agreement to the Company Stockholders without a
recommendation or with a negative recommendation, in which event the
Board of Directors of the Company may communicate the basis for its
lack of recommendation or negative recommendation to the Company
Stockholders in the Proxy Statement or an appropriate amendment or
supplement thereto. Nothing contained in this Agreement shall prohibit
the Company or the Board of Directors of the Company from taking and
disclosing to the Company Stockholders pursuant to Rule 14e-2
promulgated under the Exchange Act a position with respect to a tender
or exchange offer by a third party or from making any similar
disclosure, in either case to the extent required by applicable Law;
provided, that the Company may not, except as provided by this
Section 5.5(b), withdraw, qualify or modify, in a manner adverse to
Parent, the approval or recommendation of such Board of Directors of
the Merger or this Agreement

Section 5.6.    Stockholder
Litigation.     The Company or Parent shall give the other party
the opportunity to participate in the defense or settlement of any
stockholder Litigation against the Company and its directors or Parent
and its directors, as the case may be, relating to the transactions
contemplated by this Agreement or the Merger; provided, however,
that no such settlement shall be agreed to without Parent’s
consent, which consent will not be unreasonably withheld.

Section
5.7.    Indemnification.

(a)    It
is understood and agreed that all rights to indemnification by the
Company now existing in favor of each present and former director,
officer, employee and agent of the Company or the Subsidiaries (the
‘‘Indemnified Parties’’) as provided in the
Company Certificate of Incorporation or the Company Bylaws, in each
case as in effect on the date of this Agreement, or pursuant to any
other agreements in effect on the date hereof, copies of which have
been made available to Parent, shall survive the Merger, and Parent
shall, subject to Section 5.7(c), (i) cause the Surviving Corporation
to continue in full force and effect for a period of at least six years
from the Effective Time and (ii) perform, or cause the Surviving
Corporation to perform, in a timely manner, the Surviving
Corporation’s obligation with respect thereto (without regard to
any discharge of such obligation in any bankruptcy or similar
proceeding). Parent and Buyer agree that any claims for indemnification
hereunder as to which they have received written notice prior to the
sixth anniversary of the Effective Time shall survive, whether or not
such claims shall have been finally adjudicated or
settled.

(b)    Parent shall cause the
Surviving Corporation to, and the Surviving Corporation shall, maintain
in effect for six years from the Effective Time, if available, the
Company’s current directors’ and officers’
liability insurance policies covering acts or omissions occurring at or
prior to the Effective Time with respect to those persons who are
currently (and any additional persons who prior to the Effective Time
become) Indemnified Parties (‘‘D&O
Insurance’’) (provided that the Surviving Corporation may
substitute therefor policies with reputable and financially sound
carriers of at least the same coverage containing terms and conditions
that are not materially less favorable to the Indemnified Parties);
provided, however, that in no event shall the Surviving
Corporation be required to expend pursuant to this Section 5.7(b) more
than an amount per year equal to 200% of current 

23

annual premiums paid by the Company for such
insurance. In the event that, but for the proviso to the immediately
preceding sentence, the Surviving Corporation would be required to
expend more than 200% of current annual premiums, the Surviving
Corporation shall obtain the maximum amount of such insurance
obtainable by payment of annual premiums equal to 200% of
current annual premiums. If the Surviving Corporation elects to reduce
the amount of insurance coverage pursuant to the preceding sentence, it
will furnish to the officers and directors currently covered by such
D&O Insurance reasonable notice of such reduction in coverage and
shall, to the extent additional coverage is available, afford such
persons the opportunity to pay such additional premiums as may be
necessary to maintain the existing level of D&O Insurance coverage.
In lieu of the foregoing, the Company may purchase, prior to the
Effective Time, a six-year ‘‘tail’’ prepaid
officers’ and directors’ liability insurance policy in
respect of acts or omissions occurring prior to the Effective Time
covering each such Indemnified Party; provided that the premium
and terms of such insurance are reasonably acceptable to Parent (it
being understood that a policy with a one-time premium not in excess of
250% of the current annual premium shall be deemed to be
reasonably acceptable to Parent).

(c)    If
the Surviving Corporation or any of its successors or assigns (i)
consolidates with or merges into any other person and shall not be the
continuing or surviving corporation or entity of such consolidation or
merger or (ii) transfers all or substantially all of its properties and
assets to any person, then, and in each such case, proper provision
shall be made so that the successors and assigns of the Surviving
Corporation shall assume the obligations set forth in this Section
5.7.

(d)    The provisions of this Section
5.7 are intended to be for the benefit of, and shall be enforceable by,
each Indemnified Party, his or her heirs and his or her
representatives.

Section 5.8.    Public
Announcements.     Parent and the Company shall consult with
each other before issuing any press release or otherwise making any
public statements with respect to this Agreement or the Merger and
shall not issue any such press release or make any such public
statement prior to such consultation, except as may be required by Law
or any listing agreement with a national securities exchange or trading
system to which Parent or the Company is a party. The parties agree
that the initial press release to be issued with respect to the
transactions contemplated by this Agreement will be substantially in
the form attached as Exhibit C.

Section
5.9.    Acquisition
Proposals.

(a)    The Company shall, on
the date hereof, terminate (and shall cause each Subsidiary to
terminate) all direct and indirect negotiations and discussions with
all other parties with respect to any Acquisition Proposal or any
potential Acquisition Proposal.

(b)    The
Company shall not, nor shall it authorize or permit any of the
Subsidiaries or Representatives to, directly or indirectly, (i)
solicit, initiate or knowingly encourage the submission of any
Acquisition Proposal or (ii) participate in or knowingly encourage any
discussion or negotiations regarding, or furnish to any person any
non-public information with respect to, or take any other action to
knowingly facilitate any inquiries or the making of, any proposal that
constitutes, or may reasonably be expected to lead to, any Acquisition
Proposal; provided, however, that the foregoing shall not
prohibit the Board of Directors of the Company from furnishing
information to, or entering into discussions or negotiations with, any
person or entity that makes an unsolicited Acquisition Proposal prior
to the adoption of this Agreement by the Company Stockholders if, and
only to the extent that, (A) the Board of Directors of the Company,
based upon the advice of independent outside legal counsel, determines
in good faith that such action is required for the Board of Directors
of the Company to comply with its fiduciary obligations to the Company
Stockholders under applicable Delaware Law, (B) prior to taking such
action, the Company receives from such person or entity an executed
agreement in reasonably customary form relating to the confidentiality
of information to be provided to such person or entity containing
provisions no less favorable to the Company than those set forth in
Section 5.2(b) (provided that such agreement need not contain any
‘‘standstill’’ or similar provision) and
(C) the Board of Directors of the Company concludes in good faith,
based upon advice from its independent financial advisor, that the
Acquisition Proposal is reasonably likely to lead to a Superior
Proposal. The Company shall provide prompt (and at least within 24
hours) oral and written notice to Parent of (1) the receipt of any such
Acquisition Proposal 

24

or any inquiry that could reasonably be
expected to lead to any Acquisition Proposal, (2) the material terms
and conditions of such Acquisition Proposal or inquiry, (3) the
identity of such person or entity making any such Acquisition Proposal
or inquiry and (4) the Company’s intention to furnish
information to, or enter into discussions or negotiations with, such
person or entity. The Company shall continue to keep Parent fully and
promptly informed of the status and material changes to the terms of
any such Acquisition Proposal or inquiry. For purposes of this
Agreement, ‘‘Acquisition Proposal’’ means
any proposal with respect to (i) a transaction pursuant to which any
person (or group of persons) other than Parent or its affiliates,
directly or indirectly, acquires or would acquire more than 20%
of the outstanding shares of common stock of the Company or of the
outstanding voting power of the Company, whether from the Company or
pursuant to a tender offer or exchange offer or otherwise, (ii) a
merger, share exchange, consolidation, business combination,
recapitalization or any other transaction involving the Company (other
than the Merger) or any of the Subsidiaries pursuant to which any
person or group of persons (other than Parent or its affiliates) party
thereto, or its stockholders, owns or would own more than 20% of
the outstanding shares of common stock or the outstanding voting power
of the Company or, if applicable, the parent entity resulting from any
such transaction immediately upon consummation thereof, or (iii) any
transaction pursuant to which any person (or group of persons) other
than Parent or its affiliates acquires or would acquire control of
assets (including for this purpose the outstanding equity securities of
the Subsidiaries of the Company and securities of the entity surviving
any merger or business combination involving any of the Subsidiaries of
the Company) of the Company or any of the Subsidiaries representing
more than 20% of the fair market value of all the assets of the
Company and the Subsidiaries, taken as a whole, immediately prior to
such transaction.

Section 5.10.    Stockholders’
Meeting; Proxy Statement.

(a)    At the
request of Parent, the Company shall cause the Stockholders’
Meeting to be duly called and held as soon as practicable after the
Proxy Statement is cleared by the SEC, for the purpose of voting on the
approval and adoption of this Agreement and the
Merger.

(b)    The Company shall take all
action necessary in accordance with applicable Law and the Company
Certificate of Incorporation and Company Bylaws to duly call, give
notice of, and convene the Stockholders’
Meeting.

(c)    Subject to Sections 5.5 and
5.9, the Company shall (i) solicit from the Company Stockholders
entitled to vote at the Stockholders’ Meeting proxies in favor
of such approval and (ii) take all other action reasonably necessary to
secure the vote or consent of such holders required by the DGCL or this
Agreement to effect the Merger.

(d)    Parent
and the Company will as promptly as practicable after the date of this
Agreement jointly prepare the Proxy Statement, and the Company shall
file the Proxy Statement with the SEC, and shall use all commercially
reasonable efforts to respond to the comments of the SEC and to cause
the Proxy Statement to be mailed to the Company Stockholders at the
earliest practical time. The Company shall furnish all information
concerning it and the holders of its capital stock as Parent may
reasonably request in connection with such actions, and Parent shall
furnish all information concerning it and Buyer as the Company may
reasonably request in connection with such actions. Each party to this
Agreement will notify the other parties and the Board of Directors of
the Company promptly of the receipt of the comments of the SEC, if any,
and of any request by the SEC for amendments or supplements to the
Proxy Statement or for additional information with respect thereto, and
will supply the other parties with copies of all correspondence between
such party or its Representatives, on the one hand, and the SEC or
members of its staff, on the other hand, with respect to the Proxy
Statement or the Merger. If (i) at any time prior to the
Stockholders’ Meeting, any event should occur relating to the
Company or any of the Subsidiaries that should be set forth in an
amendment of, or a supplement to, the Proxy Statement, the Company
shall promptly inform Parent and (ii) if at any time prior to the
Stockholders’ Meeting, any event should occur relating to Parent
or Buyer or any of their respective associates or affiliates, or
relating to the plans of any such persons for the Company after the
Effective Time that should be set forth in an amendment of, or a
supplement to, the Proxy Statement, Parent will promptly inform the
Company, and in the case of 

25

(i) or (ii) the Company and Parent, will,
upon learning of such event, promptly prepare, and the Company shall
file with the SEC and, if required, mail such amendment or supplement
to the Company Stockholders; provided, prior to such filing, the
Company and Parent shall consult with each other with respect to such
amendment or supplement and shall incorporate the other’s
comments, except with respect to any comment that would create a
misstatement of fact or an omission of a material fact. Each of Parent
and Buyer shall vote, or cause to be voted, in favor of the Merger and
this Agreement all shares of Company Capital Stock directly or
indirectly beneficially owned by
it.

(e)    The Company hereby consents to the
inclusion in the Proxy Statement of the recommendation of the Board of
Directors of the Company described in Section 3.3, subject to any
modification, amendment or withdrawal thereof in accordance with
Section 5.5.

Section 5.11.    Stockholder Lists.    
The Company shall promptly upon the request by Parent, or shall cause
its transfer agent to promptly, furnish Parent and Buyer with mailing
labels containing the names and addresses of all record holders of
shares of Company Capital Stock and with security position listings of
shares of Company Capital Stock held in stock depositories, each as of
the most recent practicable date, together with all other available
listings and computer files containing names, addresses and security
position listings of record holders and beneficial owners of shares of
Company Capital Stock. The Company shall furnish Parent and Buyer with
such additional information, including updated listings and computer
files of the Company Stockholders, mailing labels and security position
listings, and such other assistance as Parent, Buyer or their agents
may reasonably request. Subject to the requirements of applicable Law,
and except for such steps as are necessary to disseminate the Proxy
Statement and any other documents necessary to consummate the Merger,
Parent shall hold in confidence the information contained in any such
labels, listings and files, and the additional information referred to
in the preceding sentence, will use such information only in connection
with the Merger and, if this Agreement shall be terminated, shall, upon
request, deliver to the Company all copies of such information then in
its possession or control or in the possession or control of its agents
or representatives.

Section 5.12.    Director
Resignations.     The Company shall cause to be delivered to
Parent resignations of all the directors of the Company’s
Subsidiaries to be effective upon the consummation of the Merger. The
Company shall cause such directors, prior to resignation, to appoint
new directors nominated by Parent to fill such vacancies.

Section
5.13.    Benefits Continuation;
Severance.

(a)    For a period of not
less than 12 months following the Effective Time, Parent, the Company
and the Surviving Corporation shall provide, or shall cause their
subsidiaries to provide, benefits that are substantially comparable in
the aggregate to those provided under the Company Benefit Plans (other
than the Company Stock Option Plan) as in effect on the date hereof for
the employees of the Company and the Subsidiaries as of the Effective
Time (‘‘Affected Employees’’);
notwithstanding the foregoing, however, Parent, the Company and the
Surviving Corporation shall not be obligated to make matching
contributions or any other payments under the Company Retirement
Savings Plan (the ‘‘Company 401(K) Plan’’)
in amounts or percentage levels comparable to matching contributions or
other payments made by the Company prior to the consummation of the
Merger but will provide matching contributions and other such payments
in amounts and percentage levels comparable to similarly situated
employees of Parent. Parent, the Company and the Surviving Corporation
shall comply with the terms of all Company Benefit Plans in effect
immediately prior to the Effective Time, subject to any reserved right
to amend or terminate any Company Benefit Plan; provided,
however, that no such amendment or termination may be inconsistent
with Parent’s and the Surviving Corporation’s obligations
pursuant to the first sentence of this Section 5.13(a). Without
limiting the generality of the foregoing, Parent, the Company and the
Surviving Corporation agree to honor all obligations to Affected
Employees, including, but not limited to, obligations for severance pay
and other severance benefits (x) pursuant to the terms of the written
employment and separation agreements listed in Section 3.16 of the
Company Disclosure Letter or pursuant to Section 5.1(c) of the Company
Disclosure Letter and (y) who are terminated prior to the date that is
12 months following the Effective Time in accordance with the
Company’s severance policies set forth in Section 5.13(a) of the
Company Disclosure Letter.

26

(b)    Affected
Employees shall be given credit for all service with the Company and
the Subsidiaries (or service credited by the Company or the
Subsidiaries) under all employee benefit plans and arrangements
currently maintained or established in the future by Parent or any of
its subsidiaries (including the Surviving Corporation) in which they
are or become participants for purposes of participation, eligibility,
vesting and level of benefits (but not for benefit accruals under any
defined benefit pension plan or any plan providing post-retirement
medical, dental or prescription drug benefits or as would otherwise
result in duplication of benefits). Parent and its subsidiaries
(including the Surviving Corporation) shall cause any pre-existing
conditions or limitations, eligibility waiting periods or required
physical examinations under any welfare benefit plans of Parent and its
subsidiaries (including the Surviving Corporation) to be waived with
respect to Affected Employees and their eligible dependents to the
extent waived under the corresponding Company Benefit Plan in which the
applicable Affected Employee participated prior to the Effective Time
and, with respect to life insurance coverage, up to the Affected
Employee’s current level of insurability. Parent and its
subsidiaries (including the Surviving Corporation) shall give Affected
Employees and their eligible dependents credit for the plan year in
which the Effective Time (or, if later, the commencement of
participation in any benefit plan) occurs toward applicable deductibles
and annual out-of-pocket limits for expenses incurred prior to the
Effective Time (or, if later, the date of commencement of participation
in such benefit plan).

(c)    Prior to the
Effective Time, the Company will agree to make retention bonus payments
to the individuals listed on Section 5.13(c) of the Company Disclosure
Letter for continuing in the employ of the Company after the Effective
Time in such amounts and subject to such terms and conditions as
satisfactory to Parent.

(d)    As an
inducement to Buyer and Parent’s willingness to enter into this
Agreement, the Company has entered into amendments to certain
employment agreements between the Company the individuals listed on
Section 5.13(d) of the Company Disclosure
Letter.

(e)    Nothing in this Section 5.13
shall confer any rights or remedies upon any person, individual or
whomsoever other than the Company, Parent and Buyer.

Section
5.14.    Rule 16b-3.     Prior to the Effective Time, the
Company may approve in accordance with the procedures set forth in Rule
16b-3 promulgated under the Exchange Act and the Skadden, Arps, Slate,
Meagher & Flom LLP SEC No-Action Letter (January 12, 1999) any
dispositions of equity securities of the Company (including derivative
securities with respect to equity securities of the Company) resulting
from the transactions contemplated by this Agreement by each officer or
director of the Company who is subject to Section 16 of the Exchange
Act with respect to equity securities of the Company.

ARTICLE
VI

CONDITIONS

Section 6.1.    Conditions to the
Obligation of Each Party.    The respective obligations of
Parent, Buyer and the Company to effect the Merger are subject to the
satisfaction of the following conditions, unless waived in writing by
all parties at or prior to the Effective
Time:

(a)    This Agreement and the Merger
shall have been adopted by the requisite vote of the Company
Stockholders, as required by the DGCL, the Company Certificate of
Incorporation and the Company
Bylaws;

(b)    No temporary restraining
order, preliminary or permanent injunction or other order issued by any
Governmental Entity of competent jurisdiction preventing the
consummation of the Merger (an
‘‘Injunction’’) shall be in effect;
provided, however, that each of the parties shall use all
commercially reasonable efforts to prevent the entry of any such
Injunction and to cause any such Injunction that may be entered to be
vacated or otherwise rendered of no
effect;

(c)    No statute, rule or regulation
shall have been enacted or promulgated by any Governmental Entity of
competent jurisdiction which temporarily, preliminarily or permanently
restrains, precludes, enjoins or otherwise prohibits the consummation
of the Merger or makes the Merger illegal; and

27

(d)    All actions by
or in respect of or filings with any Governmental Entity required to
permit the consummation of the Merger shall have been obtained or made
(including the expiration or termination of any applicable waiting
period under the HSR Act).

Section 6.2.    Conditions to
Obligations of Parent and Buyer to Effect the Merger.     The
obligations of Parent and Buyer to effect the Merger are further
subject to satisfaction or waiver at or prior to the Effective Time of
the following conditions:

(a)    (i)    the
representations and warranties of the Company set forth in this
Agreement (other than those set forth in Section 3.2 or Section 3.23)
shall be true and correct as of the date of this Agreement and (except
to the extent such representations and warranties speak as of an
earlier date) as of the Closing Date as though made on and as of the
Closing Date, except where the failure of such representations and
warranties to be so true and correct has not had and would not
reasonably be expected to have a Material Adverse Effect (disregarding
for these purposes (A) any qualification or exception for, or reference
to, materiality in any such representation or warranty and (B) any use
of the terms ‘‘material,’’
‘‘materiality,’’ ‘‘in all
material respects,’’ ‘‘material adverse
change,’’ ‘‘Material Adverse
Effect’’ or similar terms or phrases in any such
representation or warranty); and the representations and warranties of
the Company set forth in Section 3.2 and Section 3.23 of this Agreement
shall be true and correct in all material respects as of the date of
this Agreement and (except to the extent such representations and
warranties speak as of an earlier date) as of the Closing Date as
though made on and as of the Closing
Date;

(ii)    the Company shall have
performed in all material respects each of its obligations under this
Agreement required to be performed by it at or prior to the Effective
Time pursuant to the terms of this Agreement;
and

(iii)    an executive officer of the
Company shall have delivered to Parent a certificate to the effect that
each of the conditions specified in clauses (i) and (ii) of this
Section 6.2(a) is satisfied in all respects.

(b)    The Company
and the Subsidiaries shall have procured all consents identified in
Section 6.2(b) of the Company Disclosure
Letter.

(c)    There shall not be pending any action,
investigation or proceeding by any Governmental Entity, and there shall
not be pending any action or proceeding by any other person, domestic
or foreign, before any Governmental Entity, which is reasonably likely
to be determined adversely to Parent, (i) challenging or seeking to
make illegal, to delay materially or otherwise, directly or indirectly,
to restrain or prohibit the consummation of the Merger, (ii) seeking to
restrain, prohibit or delay the exercise of full rights of ownership or
operation by Parent or its subsidiaries of all or any portion of the
business or assets of the Company and the Subsidiaries, taken as a
whole, or of Parent or any of its subsidiaries, or to compel Parent or
any of its subsidiaries to dispose of or hold separate all or any
material portion of the business or assets of the Company and the
Subsidiaries, taken as a whole, or of Parent or any of its subsidiaries
or (iii) seeking to require divestiture by Parent or any of its
subsidiaries of the shares of Company Common Stock; provided,
however, that if (A) all of the conditions set forth in this
Article VI other than (x) this Section 6.2(c) and (y) those conditions
which by their terms can only be satisfied at the Closing (the
conditions set forth in this Article VI, other than those described in
the foregoing clauses (x) and (y) are referred to herein as the
‘‘Relevant Conditions’’) shall have been
satisfied or waived and (B) the Company shall have provided notice to
Parent that the Relevant Conditions have been satisfied or waived, and
within five business days after the later of (I) the satisfaction or
waiver of the last of the Relevant Conditions and (II) the date the
Company provides notice thereof to Parent, Parent shall not have waived
the condition set forth in this Section 6.2(c) with respect to facts
then known to Parent, then at any time after such five business day
period, the Company, upon written notice to Parent, shall be entitled
to terminate this Agreement; provided, further, however, that if
following any such waiver by Parent, the Closing shall not occur due to
the failure of any condition set forth in this Article VI (including
this Section 6.2(c)), then the foregoing proviso shall apply to any
further satisfaction or waiver of the Relevant
Conditions.

28

Section 6.3.    Conditions to
Obligations of the Company to Effect the Merger.    The
obligations of the Company to effect the Merger are further subject to
satisfaction or waiver at or prior to the Effective Time of the
following conditions:

(a)    (i)    the
representations and warranties of Parent and Buyer in this Agreement
that are qualified by materiality shall be true and correct in all
respects as of the date of this Agreement and (except to the extent
such representations and warranties speak as of an earlier date) as of
the Closing Date as though made on and as of the Closing Date; and the
representations and warranties of Parent and Buyer in this Agreement
that are not qualified by materiality shall be true and correct in all
material respects as of the date of this Agreement and (except to the
extent such representations and warranties speak as of an earlier date)
as of the Closing Date as though made on and as of the Closing
Date;

(ii) each of Parent and Buyer shall have
performed in all material respects its obligations under this Agreement
required to be performed by it at or prior to the Effective Time
pursuant to the terms of this Agreement;
and

(iii) an executive officer of each of Parent
and Buyer shall have delivered to the Company a certificate to the
effect that each of the conditions specified in clauses (i) and (ii) of
this Section 6.3(a) is satisfied in all respects by Parent and Buyer,
respectively.

(b)    No proceeding initiated
by any Governmental Entity seeking an Injunction shall be
pending.

ARTICLE VII

TERMINATION, AMENDMENT AND
WAIVER

Section 7.1.    Termination.    This
Agreement may be terminated and the Merger may be abandoned at any time
prior to the Effective Time, whether before or after approval of
matters presented in connection with the Merger by the Company
Stockholders:

(a)    By mutual written
consent duly authorized by the Boards of Directors of Parent and the
Company;

(b)    By either Parent or the
Company, upon written notice to the other, if any court of competent
jurisdiction or other Governmental Entity shall have issued an order,
decree, ruling or taken any other action permanently restraining,
enjoining or otherwise prohibiting the Merger and such order, decree,
ruling or other action shall have become final and nonappealable;
provided, however, that the party terminating this Agreement
pursuant to this Section 7.1(b) shall use all commercially reasonable
efforts to have such order, decree, ruling or action
vacated;

(c)    By either Parent or the
Company upon written notice to the other if the Merger shall not have
been consummated on or before June 30, 2006; provided, however,
that the right to terminate this Agreement under this Section 7.1(c)
shall not be available to any party whose failure to fulfill any of its
obligation under this Agreement has been the primary cause of, or
resulted in, the failure to consummate the Merger on or before such
date;

(d)    By Parent, upon written notice
to the Company, if, prior to the approval required by Section 6.1(a) of
the Company Stockholders at the Stockholders’ Meeting, the Board
of Directors of the Company (i) shall have withdrawn or shall have
modified in a manner adverse to Parent or Buyer its approval or
recommendation of the Merger or this Agreement, (ii) causes the Company
to enter into an agreement with respect to an Acquisition Proposal
(other than a confidentiality agreement), (iii) shall have endorsed,
approved or recommended any Acquisition Proposal or (iv) shall have
resolved to do any of the foregoing.

(e)    By the Company or Buyer, upon written
notice to the other, if this Agreement shall fail to be adopted by the
Company Stockholders at the Stockholders’ Meeting (including any
adjournment or postponement thereof);

29

(f)    By Parent or
the Company, upon written notice to the other, if there shall have been
a material breach of or any inaccuracy in any of the representations or
warranties set forth in this Agreement on the part of any of the other
parties, which breach is not cured within 30 days following receipt by
the breaching party of written notice of such breach from the
terminating party, or which breach, by its nature, cannot be cured
prior to the Closing (provided that the terminating party is not then
in material breach of any representation, warranty, covenant or other
agreement contained herein); provided, however, that neither party
shall have the right to terminate this Agreement pursuant to this
Section 7.1(f) unless the breach of representation or warranty,
together with all other such breaches, would entitle the party
receiving such representation not to consummate the transactions
contemplated by this Agreement under Section 6.2(a) (in the case of a
breach of representation or warranty by the Company) or Section 6.3(a)
(in the case of a breach of representation or warranty by Parent or
Buyer);

(g)    By Parent or the Company,
upon written notice to the other, if there shall have been a material
breach of any of the covenants or agreements set forth in this
Agreement on the part of any of the other parties, which breach shall
not have been cured within 30 days following receipt by the breaching
party of written notice of such breach from the terminating party, or
which breach, by its nature, cannot be cured prior to the Closing
(provided that the terminating party is not then in material breach of
any representation, warranty, covenant or other agreement contained
herein); or

(h)    By the Company, upon
written notice to Parent, in accordance with the proviso to Section
6.2(c).

Section 7.2.    Effect of
Termination.

(a)    In the event of the
termination of this Agreement pursuant to Section 7.1 hereof, this
Agreement shall forthwith be terminated and have no further effect
except that Section 5.2(b), Section 5.11, this Section 7.2 and Article
VIII shall survive termination of this Agreement; provided that
nothing herein shall relieve any party from liability for any willful
breach hereof.

(b)    If Parent or Buyer
exercises its right to terminate this Agreement under Section 7.1(d),
then the Company shall within three business days of such termination
pay to Parent $100,000,000 in immediately available funds (the
‘‘Termination
Fee’’).

(c)    In the event
that (i)(x) an Acquisition Proposal has been proposed by any person
(other than Parent and Buyer or any of their respective affiliates) or
any person has announced its intention (whether or not conditional) to
make an Acquisition Proposal or an Acquisition Proposal or such
intention has otherwise become known to the Company’s directors
or officers, or its stockholders generally and (y) thereafter this
Agreement is terminated by either the Company or Parent pursuant to
Section 7.1(c), 7.1(e) or 7.1(g), and (ii) within 12 months after such
termination of this Agreement, the Company or any of its Subsidiaries
enters into any definitive agreement providing for an Acquisition
Proposal, or an Acquisition Proposal is consummated, then the Company
shall pay Parent the Termination Fee upon the first to occur of the
events described in clause (ii) of this sentence. For purposes of this
Section 7.2(c), references to 20% in the definition of
‘‘Acquisition Proposal’’ as such term
relates to an Alternative Transaction will be deemed to be references
to 50%.

(d)    Notwithstanding
anything to the contrary set forth in this Agreement, if the Company
fails promptly to pay to Parent any amounts due under this Section 7.2,
the Company shall pay the costs and expenses (including reasonable
legal fees and expenses) in connection with any action, including the
filing of any lawsuit or other legal action, taken to collect payment,
together with interest on the amount of any unpaid fee or obligation at
the publicly announced prime rate of Citibank, N.A. in effect from time
to time from the date such fee or obligation was required to be
paid.

Section 7.3.    Amendments.     This Agreement
may not be amended except by action taken or authorized by the board of
directors of each of the parties (and, in the case of the Company, with
the approval of the Board of Directors of the Company) set forth in an
instrument in writing signed on behalf of each of the parties;
provided, however, that after adoption of this Agreement by the
Company Stockholders, no amendment may be made without the further
approval of the Company Stockholders if the effect of such amendment
would be to reduce the Merger Consideration or change the form thereof
or such further approvals otherwise required by the
DGCL.

30

Section 7.4.    Waiver.    
At any time prior to the Effective Time, whether before or after the
Stockholders’ Meeting, any party, by action taken or authorized
by its board of directors, may (a) extend the time for the performance
of any of the covenants, obligations or other acts of any other party
or (b) waive any inaccuracy of any representations or warranties or
compliance with any of the agreements, covenants or conditions of any
other party or with any conditions to its own obligations. Any
agreement on the part of a party to any such extension or waiver shall
be valid only if set forth in an instrument in writing signed on behalf
of such party by its duly authorized officer. The failure of any party
to this Agreement to assert any of its rights under this Agreement or
otherwise shall not constitute a waiver of such rights. The waiver of
any such right with respect to particular facts and other circumstances
shall not be deemed a waiver with respect to any other facts and
circumstances and each such right shall be deemed an ongoing right that
may be asserted at any time and from time to time.

ARTICLE
VIII

GENERAL PROVISIONS

Section 8.1.    No Third
Party Beneficiaries.     Other than the provisions of Section
5.7, nothing in this Agreement shall confer any rights or remedies upon
any person other than the parties.

Section 8.2.    Entire
Agreement.     This Agreement constitutes the entire Agreement
among the parties with respect to the subject matter hereof and
supersedes any prior understandings, agreements, or representations by
or among the parties, written or oral, with respect to the subject
matter hereof, except for the Sprint PCS Management
Agreements.

Section 8.3.    Succession and
Assignment.     This Agreement shall be binding upon and inure
to the benefit of the parties named herein and their respective
successors. No party may assign either this Agreement or any of its
rights, interests, or obligations hereunder without the prior written
approval of the other parties.

Section
8.4.    Counterparts.     This Agreement may be executed
in two or more counterparts, each of which shall be deemed an original
but all of which together shall constitute one and the same
instrument.

Section 8.5.    Governing Law; Venue; Service
of Process, Waiver of Jury
Trial.

(a)    This Agreement shall be
governed by and construed in accordance with the Laws of the State of
Delaware, without regard to principles of conflicts of law
thereof.

(b)    The parties (i) agree that
any suit, action or proceeding arising out of or relating to this
Agreement will be brought solely in the state or federal courts of the
State of Delaware, (ii) consent to the exclusive jurisdiction of each
such court in any suit, action or proceeding relating to arising out of
this Agreement and (iii) waive any objection that it may have to the
laying of venue in any such suit, action or proceeding in any such
court.

(c)    Each party irrevocably consents
to service of process in the manner provided for the giving of notices
pursuant to this Agreement; provided that such service will be
deemed to have been given only when actually received by such party.
Nothing in this Agreement will affect the right of a party to serve
process in another manner permitted by
Law.

(d)    EACH PARTY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT, AND WHETHER MADE BY CLAIM, COUNTERCLAIM,
THIRD PARTY CLAIM OR OTHERWISE.

Section
8.6.    Severability.    Any term or provision of this
Agreement that is invalid or unenforceable in any situation in any
jurisdiction shall not affect the validity or enforceability of the
remaining terms and provisions hereof or the validity or enforceability
of the offending term or provision in any other situation or in any
other jurisdiction. If the final judgment of a court of competent
jurisdiction declares that any 

31

term or provision hereof is invalid or
unenforceable, the parties agree that the court making the
determination of invalidity or unenforceability shall have the power to
reduce the scope, duration, or area of the term or provision, to delete
specific words or phrases, or to replace any invalid or unenforceable
term or provision with a term or provision that is valid and
enforceable and that comes closest to expressing the intention of the
invalid or unenforceable term or provision, and this Agreement shall be
enforceable as so modified after the expiration of the time within
which the judgment may be appealed.

Section
8.7.    Specific Performance.    Each of the parties
acknowledges and agrees that the other party would be damaged
irreparably in the event any of the provisions of this Agreement are
not performed in accordance with their specific terms or otherwise are
breached. Accordingly, each of the parties agrees that the other party
shall be entitled to seek an injunction or injunctions to prevent
breaches of the provisions of this Agreement and to enforce
specifically this Agreement and the terms and provisions
hereof.

Section 8.8.    Construction.    The
language used in this Agreement shall be deemed to be the language
chosen by the parties to express their mutual intent, and no rule of
strict construction shall be applied against any party. Whenever the
words ‘‘include,’’
‘‘includes’’ or
‘‘including’’ are used in this Agreement,
they shall be deemed to be followed by the words
‘‘without limitation.’’ All references to
the ‘‘parties’’ means the parties to this
Agreement unless the context otherwise requires. All references to any
agreement, instrument, statute or regulation are to it as amended and
supplemented from time to time (and, in the case of a statute or
regulation, to any corresponding provisions or successor statutes or
regulations). When a reference is made in this Agreement to Sections,
such reference shall be to a Section of this Agreement unless otherwise
indicated. The phrase ‘‘the date of this
Agreement,’’ ‘‘date hereof’’
and terms of similar import, unless the context otherwise requires,
shall be deemed to refer to November 21, 2005.

Section
8.9.    Non-Survival of Representations and Warranties and
Agreements.    The representations, warranties and agreements in
this Agreement shall terminate at the Effective Time, except that the
agreements set forth in Article I and Article VIII and Section 5.4,
Section 5.7 and Section 5.13 shall survive the Effective Time in
accordance with their terms.

Section 8.10.    Certain
Definitions.    For purposes of this Agreement, the terms
‘‘associate’’ and
‘‘affiliate’’ shall have the same meaning
as set forth in Rule l2b-2 promulgated under the Exchange Act, and the
term ‘‘person’’ shall mean any individual,
corporation, partnership (general or limited), limited liability
company, limited liability partnership, trust, joint venture,
joint-stock company, syndicate, association, entity, unincorporated
organization or government or any political subdivision, agency or
instrumentality thereof.

Section 8.11.    Fees and
Expenses.     Each party shall pay its own costs and expenses
incurred in connection with this Agreement and the transactions
contemplated hereby.

Section 8.12.    Notices.    
All notices, requests, claims, demands and other communications
hereunder shall be in writing and shall be given (and shall be deemed
to have been duly given upon receipt) by delivery in person, by
telecopy or by registered or certified mail (postage prepaid, return
receipt requested) to the respective parties at the following
addresses, or at such other address for a party as shall be specified
in a notice given in accordance with this Section
8.12:

		
	 	If to Sprint Nextel Corporation
to:

		
	 	Sprint Nextel Corporation
2001 Edmund
Drive
Reston, VA 20191
Telecopier: (703)
433-4846
Attention: General Counsel

32

		
	 	with a copy
to:

		
	 	King & Spalding LLP
191 Peachtree
Street
Atlanta, GA 30303-1763
Telecopier: (404)
572-5100
Attention:    Michael J. Egan
Sephen M.
Wiseman

		
	 	if after March 27, 2006
to:

		
	 	King & Spalding LLP
1180
Peachtree Street
Atlanta, GA 30309
Telecopier: (404)
572-5100
Attention:    Michael J.
Egan
                      Stephen M.
Wiseman

		
	 	If to the
Company:

		
	 	Alamosa Holdings, Inc.
5225 S.
Loop 289, Suite 120
 Lubbock, Texas 79424
 Telecopier: (806)
722-1423
 Attention: Chief Financial Officer

with a
copy to:

		
	 	Skadden, Arps, Slate, Meagher &
Flom LLP
4 Times Square
New York, NY
10036
Telecopier:    (212) 735-2000
Attention: Fred B.
White
Frank Bayouth

Section 8.13.    Cross-References
to Certain Terms Defined Elsewhere in This
Agreement.

							
	TERM		Section
	Acquisition
Agreement		5.5(b)
	Acquisition
Proposal		5.9(b)
	Adverse Recommendation
Change		5.5(b)
	Affected
Employees		5.13(a)
	Agreement		Preamble
	AirGate
Entities		3.24(a)
	Alternative
Transaction		5.5(b)
	Audited Company Financial
Statements		3.8(b)
	Blue Sky
Laws		3.5
	Buyer		Preamble
	Certificate		1.4(c)
	Certificate
of
Merger		1.2
	Closing		1.2
	Code		1.8(e)
	Common
Stock Merger
Consideration		1.4(a)
	Company		Preamble
	Company
10-Q		3.8(b)
	Company 401(k)
Plan		5.13(a)
	Company 2004
10-K		3.8(b)
	

33

							
	TERM		Section
	Company Benefit
Plan		3.16
	Company Benefit
Plans		3.16
	Company
Bylaws		3.1
	Company Certificate of
Incorporation		3.1
	Company Common
Stock		Preamble
	Company Capital
Stock		Preamble
	Company Disclosure
Letter		Article III
	Company Financial
Statements		3.8(b)
	Company
Licenses		3.7(c)
	Company Material
Licenses		3.7(b)
	Company
Options		1.6
	Company Permitted
Lien		3.11
	Company
Rights		3.2
	Company SEC
Reports		Article III
	Company Stock Option
Plan		1.6
	Company
Stockholders		Preamble
	Company
Warrants		3.2
	Confidential
Information		5.2(b)
	D&O
Insurance		5.7(b)
	DGCL		Preamble
	Dissenting
Shares		1.5(a)
	Effective
Time		1.2
	Environmental
Laws		3.18(a)
	ERISA		3.16
	ERISA
Affiliate		3.16
	ESPP		1.7
	Exchange
Act		Article
III
	FAA		3.7(c)
	FCC		3.5
	FCC
Filings		3.5
	Fund		1.8(a)
	GAAP		3.4
	Governmental
Entity		3.5
	HSR
Act		3.5
	Indemnified
Parties		5.7(a)
	Indentures		3.24(a)
	Independent
Advisors		3.3(b)
	Injunction		6.1(b)
	Intellectual
Property
Rights		3.19(e)
	Knowledge		3.7(c)
	Law		3.4
	Licenses		3.7(b)
	Litigation		3.13
	Material
Adverse Effect		3.4
	Material
Contract		3.14(a)
	Merger		Preamble
	Merger
Consideration		1.4(b)
	NLRB		3.17(a)
	Parent		Preamble
	

34

							
	TERM		Section
	Payee		1.8(e)
	Paying
Agent		1.8(a)
	Preferred
Stock		3.2
	Proxy
Statement		3.15
	Relevant
Conditions		6.2(c)
	Report		3.8(a)
	Representatives		5.2(a)
	Rights
Agreement		3.2
	SEC		Article
III
	Securities Act		Article
III
	Series B Merger
Consideration		1.4(b)
	Series B Preferred
Stock		Preamble
	SOX
Act		3.8(a)
	Sprint PCS Management
Agreement		5.2(a)
	Stockholders
Agreement		Preamble
	Stockholders’
Meeting		3.15
	Subsequent
Determination		5.5(b)
	Subsidiary		3.1
	Superior
Proposal		5.5(b)
	Surviving
Corporation		1.1
	Tax		3.10
	Tax
Return		3.10
	Taxes		3.10
	Termination
Fee		7.2(b)
	Unaudited Company Financial
Statements		3.8(b)
	

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

35

IN WITNESS WHEREOF, the Company, Parent
and Buyer and have caused this Agreement to be executed as of the date
first written above by their respective officers thereunto duly
authorized.

		
	 	SPRINT NEXTEL
CORPORATION

		By:  /S/ Paul
Salen

        Name: Paul
Salen
        Title: Chief Financial
Officer

		
	 	AHI MERGER SUB
INC.

		By:  /s/ Paul
Salen

        Name: Paul
Salen
        Title: Executive Vice President
and
                  Chief
Financial Officer

		
	 	ALAMOSA HOLDINGS,
INC.

		By:  /s/ David
Sharbutt

        Name: David
Sharbutt
        Title: Chief Executive
Officer

36

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