Document:

EX-4.1

Exhibit 4.1

R. G. Barry Corporation

and

The Bank of New York Mellon,

as Rights Agent

RIGHTS AGREEMENT

Dated as of May 1, 2009

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 1.

	 	Certain Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	Section 2.

	 	Appointment of Rights Agent
	 	 	5	 
	 
	 	 	 	 	 	 
	Section 3.

	 	Issuance of Rights Certificates
	 	 	5	 
	 
	 	 	 	 	 	 
	Section 4.

	 	Form of Rights Certificates
	 	 	7	 
	 
	 	 	 	 	 	 
	Section 5.

	 	Countersignature and Registration
	 	 	8	 
	 
	 	 	 	 	 	 
	Section 6.

	 	Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost
or Stolen Rights Certificates
	 	 	8	 
	 
	 	 	 	 	 	 
	Section 7.

	 	Exercise of Rights; Purchase Price; Expiration Date of Rights
	 	 	9	 
	 
	 	 	 	 	 	 
	Section 8.

	 	Cancellation and Destruction of Rights Certificates
	 	 	11	 
	 
	 	 	 	 	 	 
	Section 9.

	 	Reservation and Availability of Capital Shares
	 	 	11	 
	 
	 	 	 	 	 	 
	Section 10.

	 	Preferred Share Record Date
	 	 	13	 
	 
	 	 	 	 	 	 
	Section 11.

	 	Adjustment of Purchase Price, Number and Kind of Shares or Number of
Rights
	 	 	13	 
	 
	 	 	 	 	 	 
	Section 12.

	 	Certificate of Adjusted Purchase Price or Number of Shares
	 	 	20	 
	 
	 	 	 	 	 	 
	Section 13.

	 	Consolidation, Merger or Sale or Transfer of Assets, Cash Flow or
Earning Power
	 	 	21	 
	 
	 	 	 	 	 	 
	Section 14.

	 	Fractional Rights and Fractional Shares
	 	 	23	 
	 
	 	 	 	 	 	 
	Section 15.

	 	Exchange of Rights
	 	 	24	 
	 
	 	 	 	 	 	 
	Section 16.

	 	Rights of Action
	 	 	25	 
	 
	 	 	 	 	 	 
	Section 17.

	 	Agreement of Rights Holders
	 	 	25	 
	 
	 	 	 	 	 	 
	Section 18.

	 	Rights Certificate Holder Not Deemed a Shareholder
	 	 	26	 
	 
	 	 	 	 	 	 
	Section 19.

	 	Concerning the Rights Agent
	 	 	26	 
	 
	 	 	 	 	 	 
	Section 20.

	 	Merger or Consolidation or Change of Name of Rights Agent
	 	 	27	 
	 
	 	 	 	 	 	 
	Section 21.

	 	Duties of Rights Agent
	 	 	27	 
	 
	 	 	 	 	 	 
	Section 22.

	 	Change of Rights Agent
	 	 	30	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 23.

	 	Issuance of New Rights Certificates
	 	 	30	 
	 
	 	 	 	 	 	 
	Section 24.

	 	Redemption and Termination
	 	 	31	 
	 
	 	 	 	 	 	 
	Section 25.

	 	Notice of Certain Events
	 	 	32	 
	 
	 	 	 	 	 	 
	Section 26.

	 	Notices
	 	 	32	 
	 
	 	 	 	 	 	 
	Section 27.

	 	Supplements and Amendments
	 	 	33	 
	 
	 	 	 	 	 	 
	Section 28.

	 	Successors
	 	 	34	 
	 
	 	 	 	 	 	 
	Section 29.

	 	Determinations and Actions by the Board of Directors, etc
	 	 	34	 
	 
	 	 	 	 	 	 
	Section 30.

	 	Benefits of this Agreement
	 	 	34	 
	 
	 	 	 	 	 	 
	Section 31.

	 	Severability
	 	 	34	 
	 
	 	 	 	 	 	 
	Section 32.

	 	Governing Law
	 	 	35	 
	 
	 	 	 	 	 	 
	Section 33.

	 	Counterparts
	 	 	35	 
	 
	 	 	 	 	 	 
	Section 34.

	 	Descriptive Headings
	 	 	35	 
	 
	 	 	 	 	 	 
	Section 35.

	 	Force Majeure
	 	 	35	 

ii

 

RIGHTS AGREEMENT

     This Rights Agreement, dated as of May 1, 2009 (the “Agreement”), is entered into
between R. G. Barry Corporation, an Ohio corporation (the “Company”), and The Bank of New York
Mellon, a New York banking corporation (the “Rights Agent”).

Witnesseth:

     Whereas, on May 1, 2009 (the “Rights Dividend Declaration Date”), the Board of
Directors of the Company (the “Board”) authorized and declared a dividend distribution of one Right
(as hereinafter defined) for each common share, par value $1.00 per share, of the Company (the
“Common Shares”) outstanding at the Close of Business on May 15, 2009 (the “Record Date”) and has
authorized the issuance of one Right (as such number may hereinafter be adjusted pursuant to the
provisions of Section 11(p) hereof) for each Common Share issued between the Record Date (whether
originally issued or delivered from the Company’s treasury) and the Distribution Date (as
hereinafter defined), each Right initially representing the right to purchase one one-hundredth of
a share of Series II Junior Participating Class A Preferred Shares (the “Preferred Shares”) of the
Company having the rights, powers and preferences set forth in the form of Certificate of Amendment
to the Articles of Incorporation attached hereto as Exhibit A, upon the terms and subject
to the conditions hereinafter set forth (the “Rights”);

     Now, Therefore, in consideration of the premises and the mutual agreements herein set
forth, the parties hereby agree as follows:

     Section 1. Certain Definitions. For purposes of this Agreement, the following terms
have the meanings indicated:

          (a) “Acquiring Person” shall mean any Person who or which, together with all Affiliates and
Associates of such Person, shall be the Beneficial Owner of fifteen percent (15%) or more of the
Common Shares then outstanding, other than in connection with any transfer by reason of the death
of, or gift from, any Person (including succeeding any such Person as trustee), but shall not
include (i) the Company, (ii) any Subsidiary of the Company, (iii) any employee benefit plan of the
Company or of any Subsidiary of the Company, (iv) any Person or entity organized, appointed or
established by the Company for or pursuant to the terms of any such plan, (v) any Person who
becomes the Beneficial Owner of fifteen percent (15%) or more of the Common Shares then outstanding
as a result of a reduction in the number of Common Shares outstanding due to the repurchase of
Common Shares by the Company unless and until such Person, after becoming aware that such Person
has become the Beneficial Owner of fifteen percent (15%) or more of the then outstanding Common
Shares, acquires beneficial ownership of additional Common Shares representing one percent (1%) or
more of the Common Shares then outstanding; provided, however, that if the Board of Directors of
the Company determines in good faith that a Person who would otherwise be an “Acquiring Person” as
defined pursuant to the foregoing provisions of this subsection (a) has become such inadvertently,
and such Person promptly (and in any event within ten (10) Business Days after being so requested
by the Company) certifies to the Company that such Person acquired Common Shares causing such
Person to become an Acquiring Person inadvertently or without knowledge of the terms of the Rights
and who, together with all Affiliates and Associates, thereafter does not acquire

 

additional Common Shares while the Beneficial Owner of fifteen percent (15%) or more of the
Common Shares then outstanding; provided further, that if the Person requested to so certify fails
to do so within ten (10) Business Days, then such Person shall become an Acquiring Person
immediately after such ten (10) Business Day period.

          (b) “Act” shall mean the Securities Act of 1933, as amended and in effect on the date of this
Agreement.

          (c) “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in
Rule 12b-2 of the General Rules and Regulations under the Securities Exchange Act of 1934, as
amended and in effect on the date of this Agreement (the “Exchange Act”).

          (d) A Person shall be deemed the “Beneficial Owner” of, and shall be deemed to “beneficially
own,” any securities:

          (i) which such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has the right to acquire (whether such right is exercisable immediately or only
after the passage of time) pursuant to any agreement, arrangement or understanding (whether
or not in writing) or upon the exercise of conversion rights, exchange rights, rights,
warrants or options, or otherwise; provided, however, that a Person shall not be deemed the
“Beneficial Owner” of, or to “beneficially own,” (A) securities tendered pursuant to a
tender or exchange offer made by such Person or any of such Person’s Affiliates or
Associates until such tendered securities are accepted for purchase or exchange, (B)
securities issuable upon exercise of Rights at any time prior to the occurrence of a
Triggering Event (as hereinafter defined), or (C) securities issuable upon exercise of
Rights from and after the occurrence of a Triggering Event which Rights were acquired by
such Person or any of such Person’s Affiliates or Associates prior to the Distribution Date
(as hereinafter defined) or pursuant to Section 3(a) or Section 23 hereof (the “Original
Rights”) or pursuant to Section 11(i) hereof in connection with an adjustment made with
respect to any Original Rights;

          (ii) which such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has the right to vote or dispose of or has “beneficial ownership” of (as
determined pursuant to Rule 13d-3 of the General Rules and Regulations under the Exchange
Act), including pursuant to any agreement, arrangement or understanding, whether or not in
writing; provided, however, that a Person shall not be deemed the “Beneficial Owner” of, or
to “beneficially own,” any security under this subparagraph (ii) as a result of an
agreement, arrangement or understanding to vote such security if such agreement, arrangement
or understanding: (A) arises solely from a revocable proxy given in response to a public
proxy or consent solicitation made pursuant to, and in accordance with, the applicable
provisions of the General Rules and Regulations under the Exchange Act, and (B) is not
reportable by such Person on Schedule 13D or Schedule 13G under the Exchange Act (or any
comparable or successor report); or

          (iii) which are beneficially owned, directly or indirectly, by any other Person (or any
Affiliate or Associate thereof) with which such Person (or any of such

2

 

Person’s Affiliates or Associates) has any agreement, arrangement or understanding
(whether or not in writing), for the purpose of acquiring, holding, voting (except pursuant
to a revocable proxy as described in the proviso to subparagraph (ii) of this paragraph (d))
or disposing of any voting securities of the Company, provided, however, that nothing in
this paragraph (d) shall cause a Person engaged in business as an underwriter of securities
to be the “Beneficial Owner” of, or to “beneficially own,” any securities acquired through
such Person’s participation in good faith in a firm commitment underwriting until the
expiration of forty (40) days after the date of such acquisition, and then only if such
securities continue to be owned by such Person at the expiration of forty (40) days.

          (e) “Business Day” shall mean any day other than a Saturday, Sunday or a day on which banking
institutions in the States of New York, New Jersey or Ohio are authorized or obligated by law or
executive order to close.

          (f) “Close of Business” on any given date shall mean 5:00 P.M., New York City time, on such
date; provided, however, that if such date is not a Business Day it shall mean 5:00 P.M., New York
City time, on the next succeeding Business Day.

          (g) “Common Shares” shall mean the common shares, par value $1.00 per share, of the Company,
except that “Common Shares” when used with reference to any Person other than the Company shall
mean the capital stock of such Person with the greatest voting power, or the equity securities or
other equity interest having power to control or direct the management, of such Person.

          (h) “Common Share Equivalents” shall have the meaning set forth in Section 11(a)(iii) hereof.

          (i) “Current Market Price” shall have the meaning set forth in Section 11(d)(i) hereof.

          (j) “Current Value” shall have the meaning set forth in Section 11(a)(iii) hereof.

          (k) “Distribution Date” shall have the meaning set forth in Section 3(a) hereof.

          (l) “Equivalent Preferred Shares” shall have the meaning set forth in Section 11(b) hereof.

          (m) “Exchange Act” shall have the meaning set forth in Section 1(a) hereof.

          (n) “Expiration Date” shall have the meaning set forth in Section 7(a) hereof.

          (o) “Final Expiration Date” shall have the meaning set forth in Section 7(a) hereof.

          (p) “Flip-In Event” shall have the meaning set forth in Section 11(a)(ii).

3

 

          (q) “Flip-In Trigger Date” shall have the meaning set forth in Section 11(a)(iii) hereof.

          (r) “Flip-Over Event” shall mean any event described in clauses (x), (y) or (z) of Section
13(a) hereof.

          (s) “Person” shall mean any individual, firm, corporation, limited liability company,
partnership, trust or other entity.

          (t) “Preferred Shares” shall mean the Series II Junior Participating Class A Preferred Shares,
par value $1.00 per share, of the Company, and, to the extent that there are not a sufficient
number of Series II Junior Participating Class A Preferred Shares authorized to permit the full
exercise of the Rights, any other series of Class A Preferred Shares, par value $1.00 per share, or
Class B Preferred Shares, par value $1.00 per share, of the Company designated for such purpose
containing terms substantially similar to the terms of the Series II Junior Participating Class A
Preferred Shares.

          (u) “Principal Party” shall have the meaning set forth in Section 13(b) hereof.

          (v) “Purchase Price” shall have the meaning set forth in Section 7(b) hereof.

          (w) “Record Date” shall have the meaning set forth in the WHEREAS clause at the beginning of
this Agreement.

          (x) “Redemption Price” shall have the meaning set forth in Section 24(a) hereof.

          (y) “Rights” shall have the meaning set forth in the WHEREAS clause at the beginning of this
Agreement.

          (z) “Rights Agent” shall have the meaning set forth in the parties clause at the beginning of
this Agreement.

          (aa) “Rights Certificate” shall have the meaning set forth in Section 3(a) hereof.

          (bb) “Rights Dividend Declaration Date” shall have the meaning set forth in the WHEREAS clause
at the beginning of this Agreement.

          (cc) “Spread” shall have the meaning set forth in Section 11(a)(iii) hereof.

          (dd) “Share Acquisition Date” shall mean the first date of public announcement (which, for
purposes of this definition, shall include, without limitation, a report filed or amended pursuant
to Section 13(d) under the Exchange Act) by the Company or an Acquiring Person that an Acquiring
Person has become such.

          (ee) “Subsidiary” shall mean, with reference to any Person, any corporation of which an amount
of voting securities sufficient to elect at least a majority of the directors of such

4

 

corporation is beneficially owned, directly or indirectly, by such Person, or otherwise
controlled by such Person.

          (ff) “Substitution Period” shall have the meaning set forth in Section 11(a)(iii) hereof.

          (gg) “Summary of Rights” shall have the meaning set forth in Section 3(b) hereof.

          (hh) “Trading Day” shall have the meaning set forth in Section 11(d)(i) hereof.

          (ii) “Triggering Event” shall mean any Flip-In Event or any Flip-Over Event.

     Section 2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent
to act as agent for the Company in accordance with the terms and conditions hereof, and the Rights
Agent hereby accepts such appointment. The Company may from time to time appoint such co-rights
agents as it may deem necessary or desirable upon ten (10) days’ prior written notice to the Rights
Agent. The Rights Agent shall have no duty to supervise, and shall in no event be liable for, the
acts or omissions of any such co-rights agent.

     Section 3. Issuance of Rights Certificates.

          (a) Until the earlier of (i) the Close of Business on the tenth Business Day after the Share
Acquisition Date (or, if the tenth Business Day after the Share Acquisition Date occurs before the
Record Date, the Close of Business on the Record Date), or (ii) the Close of Business on the tenth
Business Day (or such later date as the Board shall determine) after the date that a tender or
exchange offer by any Person (other than the Company, any Subsidiary of the Company, any employee
benefit plan of the Company or of any Subsidiary of the Company, or any Person or entity organized,
appointed or established by the Company for or pursuant to the terms of any such plan) is first
published or sent or given within the meaning of Rule 14d-2(a) of the General Rules and Regulations
under the Exchange Act, if upon consummation thereof, such Person would become an Acquiring Person
(the earlier of (i) and (ii) being herein referred to as the “Distribution Date”), (x) the Rights
will be evidenced (subject to the provisions of paragraph (b) of this Section 3) by the
certificates for the Common Shares registered in the names of the holders of the Common Shares (or,
in the case of uncertificated Common Shares, by the book-entry account that evidences record
ownership of such shares) and not by separate certificates (the certificates for Common Shares
being deemed also to be certificates for Rights), and (y) the Rights will be transferable only in
connection with the transfer of the underlying Common Shares (including a transfer to the Company).
The Company shall give the Rights Agent prompt written notice of the Distribution Date. Until
such notice is received by the Rights Agent, the Rights Agent may presume conclusively for all
purposes that the Distribution Date has not occurred. As soon as practicable after the
Distribution Date, the Company will prepare and execute, the Rights Agent will countersign, and the
Company will send or cause to be sent (and the Rights Agent will, if requested and provided with
all necessary information, send), at the expense of the Company, by first-class, insured, postage
prepaid mail,
to each record holder of the Common Shares as of the Close of Business on the Distribution
Date, at the address of such holder shown on the records of the Company or the transfer agent or

5

 

registrar for the Common Shares, one or more rights certificates, in substantially the form of
Exhibit B hereto (the “Rights Certificates”), evidencing one Right for each Common Share so
held, subject to adjustment as provided herein. In the event that an adjustment in the number of
Rights per Common Share has been made pursuant to Section 11(p) hereof, at the time of distribution
of the Rights Certificates, the Company shall make the necessary and appropriate rounding
adjustments (in accordance with Section 14(a) hereof) so that Rights Certificates representing only
whole numbers of Rights are distributed and cash is paid in lieu of any fractional Rights. As of
and after the Distribution Date, the Rights will be evidenced solely by such Rights Certificates,
and the Rights will be transferable only separately from the transfer of the Common Shares.

          (b) As promptly as practicable following the Record Date, the Company will make available a
copy of a Summary of Rights, in substantially the form attached hereto as Exhibit C (the
“Summary of Rights”), to any holder of Rights who may so request from time to time prior to the
Expiration Date. With respect to certificates for the Common Shares outstanding as of the Record
Date, until the Distribution Date, the Rights will be evidenced by such certificates for the Common
Shares and the registered holders of the Common Shares shall also be the registered holders of the
associated Rights. Until the earlier of the Distribution Date or the Expiration Date (as such term
is defined in Section 7(a) hereof), the transfer of any certificates representing Common Shares in
respect of which Rights have been issued shall also constitute the transfer of the Rights
associated with such Common Shares.

    
      (c) Rights shall be issued in respect of all Common Shares which are issued (whether
originally issued or from the Company’s treasury) after the Record Date but prior to the earlier of
the Distribution Date or the Expiration Date. Certificates representing such Common Shares shall
also be deemed to be certificates for Rights, and shall bear a legend in substantially the
following form:

This certificate also evidences and entitles the holder hereof to
certain Rights as set forth in the Rights Agreement between
R. G. Barry Corporation (the “Company”) and The Bank of New York
Mellon, as the Rights Agent, dated as of May 1, 2009 (the “Rights
Agreement”), the terms of which are hereby incorporated herein by
reference and a copy of which is on file at the principal offices of
the Company. Under certain circumstances, as set forth in the Rights
Agreement, such Rights will be evidenced by separate certificates
and will no longer be evidenced by this certificate. The Company
will mail to the holder of this certificate a copy of the Rights
Agreement, as in effect on the date of mailing, without charge
within five days after receipt of a written request therefor. Under
certain circumstances set forth in the Rights Agreement, Rights
issued to, or held by, any Person who is, was or becomes an
Acquiring Person or any Affiliate or Associate thereof (as such
terms are defined in the Rights Agreement), whether
currently held by or on behalf of such Person or by any subsequent
holder, may become null and void.

6

 

With respect to such certificates containing the foregoing legend, until the earlier of (i) the
Distribution Date or (ii) the Expiration Date, the Rights associated with the Common Shares
represented by such certificates shall be evidenced by such certificates alone and registered
holders of Common Shares shall also be the registered holders of the associated Rights, and the
transfer of any of such certificates shall also constitute the transfer of the Rights associated
with the Common Shares represented by such certificates.

     Section 4. Form of Rights Certificates.

          (a) The Rights Certificates (and the forms of election to purchase and of assignment to be
printed on the reverse thereof) shall each be substantially in the form set forth in Exhibit
B hereto and may have such marks of identification or designation and such legends, summaries
or endorsements printed thereon as the Company may deem appropriate (but which do not affect the
rights, immunities, duties or responsibilities of the Rights Agent) and as are not inconsistent
with the provisions of this Agreement, or as may be required to comply with any applicable law or
with any rule or regulation made pursuant thereto or with any rule or regulation of any stock
exchange on which the Rights may from time to time be listed, or to conform to usage. The Rights
Certificates shall be in a machine printable format and in a form reasonably satisfactory to the
Rights Agent. Subject to the provisions of Section 11 and Section 23 hereof, the Rights
Certificates, whenever distributed, shall be dated as of the Record Date, shall show the date of
countersignature and on their face shall entitle the holders thereof to purchase such number of one
one-hundredths of a Preferred Share as shall be set forth therein at the price set forth therein
(such exercise price per one one-hundredth of a share, the “Purchase Price”), but the amount and
type of securities purchasable upon the exercise of each Right and the Purchase Price thereof shall
be subject to adjustment as provided herein.

          (b) Any Rights Certificate issued pursuant to Section 3(a), Section 11(i), or Section 23
hereof that represents Rights beneficially owned by: (i) an Acquiring Person or any Associate or
Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any such
Associate or Affiliate) who becomes a transferee after the Acquiring Person becomes such, or (iii)
a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a
transferee prior to or concurrently with the Acquiring Person becoming such and receives such
Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring
Person to holders of equity interests in such Acquiring Person or to any Person with whom such
Acquiring Person has any continuing agreement, arrangement or understanding (whether or not in
writing) regarding the transferred Rights or (B) a transfer which the Board has determined is part
of a plan, arrangement or understanding (whether or not in writing) which has as a primary purpose
or effect avoidance of Section 7(e) hereof, and any Rights Certificate issued pursuant to Section 6
or Section 11 hereof upon transfer, exchange, replacement or adjustment of any other Rights
Certificate referred to in this sentence, shall contain (to the extent feasible) a legend in
substantially the following form:

The Rights represented by this Rights Certificate are or were
beneficially owned by a Person who was or became an Acquiring Person
or an Affiliate or Associate of an Acquiring Person (as such terms
are defined in the Rights Agreement). Accordingly, this Rights
Certificate and the Rights represented hereby may become

7

 

null and
void in the circumstances specified in Section 7(e) of the Rights
Agreement.

The Company shall instruct the Rights Agent in writing of the Rights which should be so legended
and shall supply the Rights Agent with such legended Rights Certificates.

     Section 5. Countersignature and Registration.

          (a) The Rights Certificates shall be executed on behalf of the Company by its Chairman of the
Board, its President or any Vice President, either manually or by facsimile signature, and shall be
attested to by the Secretary or an Assistant Secretary of the Company, either manually, or by
facsimile signature. The Rights Certificates shall be countersigned by the Rights Agent, either
manually or by facsimile signature, and shall not be valid for any purpose unless so countersigned.
In case any officer of the Company who shall have signed any of the Rights Certificates shall cease
to be such officer of the Company before countersignature by the Rights Agent and issuance and
delivery by the Company, such Rights Certificates, nevertheless, may be countersigned by the Rights
Agent and issued and delivered by the Company with the same force and effect as though the person
who signed such Rights Certificates had not ceased to be such officer of the Company; and any
Rights Certificates may be signed on behalf of the Company by any person who, at the actual date of
the execution of such Rights Certificate, shall be a proper officer of the Company to sign such
Rights Certificate, although at the date of the execution of this Rights Agreement any such person
was not such an officer.

          (b) Following the Distribution Date, upon receipt by the Rights Agent of notice to that effect
and all other relevant information referred to in Section 3(a), the Rights Agent will keep or cause
to be kept, at its office or offices designated for such purpose, books for registration and
transfer of the Rights Certificates issued hereunder. Such books shall show the names and addresses
of the respective holders of the Rights Certificates, the number of Rights evidenced on its face by
each of the Rights Certificates and the date of each of the Rights Certificates.

     Section 6. Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated,
Destroyed, Lost or Stolen Rights Certificates.

          (a) Subject to the provisions of Section 4(b), Section 7(e) and Section 14 hereof, at any time
after the Close of Business on the Distribution Date, and at or prior to the Close of Business on
the Expiration Date, any Rights Certificate(s) may be transferred, split up, combined or exchanged
for another Rights Certificate(s), entitling the registered holder to purchase a like number of one
one-hundredths of a Preferred Share (or, following a Triggering
Event, Common Shares, other securities, cash or other assets, as the case may be) as the
Rights Certificate(s) surrendered then entitles such holder (or former holder in the case of a
transfer) to purchase. Any registered holder desiring to transfer, split up, combine or exchange
any Rights Certificate(s) shall make such request in writing delivered to the Rights Agent, and
shall surrender the Rights Certificate(s) to be transferred, split up, combined or exchanged at the
office or offices of the Rights Agent designated for such purpose. The Right Certificates are
transferable only on the registry books of the Rights Agent. Neither the Rights Agent nor the
Company shall be obligated to take any action whatsoever with respect to the transfer of any

8

 

such
surrendered Rights Certificate until the registered holder shall have (i) properly completed and
duly signed the certificate contained in the form of assignment on the reverse side of such Rights
Certificate, (ii) provided such additional evidence of the identity of the Beneficial Owner (or
former Beneficial Owner) thereof and of the Rights evidenced thereby and the Affiliates and
Associates of such Beneficial Owner (or former Beneficial Owner) as the Company or the Rights Agent
shall reasonably request and (iii) paid a sum sufficient to cover any tax or charge that may be
imposed in connection with any transfer, split up, combination or exchange of Rights Certificates
as required by Section 9(e) hereof. Thereupon the Rights Agent shall, subject to Section 4(b),
Section 7(e) and Section 14 hereof, countersign and deliver to the Person entitled thereto a Rights
Certificate or Rights Certificates, as the case may be, as so requested, registered in such name or
names as may be designated by the surrendering registered holder. The Rights Agent shall promptly
forward any such sum collected by it to the Company or to such Persons as the Company shall specify
by written notice. The Rights Agent shall have no duty or obligation to take any action under any
section of this Agreement which requires the payment by a Rights holder of applicable taxes and/or
charges unless and until it is satisfied that all such taxes and/or charges have been paid.

          (b) Upon receipt by the Company and the Rights Agent of evidence satisfactory to them of the
loss, theft, destruction or mutilation of a Rights Certificate, and, in case of loss, theft or
destruction, of indemnity or security satisfactory to them, and reimbursement to the Company and
the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the Rights
Agent and cancellation of the Rights Certificate if mutilated, the Company will execute and deliver
a new Rights Certificate of like tenor to the Rights Agent for countersignature and delivery to the
registered holder in lieu of the Rights Certificate so lost, stolen, destroyed or mutilated.

     Section 7. Exercise of Rights; Purchase Price; Expiration Date of Rights.

          (a) Subject to Section 7(e) hereof, at any time after the Distribution Date, the registered
holder of any Rights Certificate may exercise the Rights evidenced thereby (except as otherwise
provided herein including, without limitation, the restrictions on exercisability set forth in
Section 9(c), Section 11(a)(iii) and Section 24(a) hereof) in whole or in part upon surrender of
the Rights Certificate, with the form of election to purchase and the certificate on the reverse
side thereof properly completed and duly executed, to the Rights Agent at the office or offices of
the Rights Agent designated for such purpose, together with payment of the aggregate Purchase Price
with respect to the total number of one one-hundredths of a share (or other securities, cash or
other assets, as the case may be) as to which such surrendered Rights are then exercisable, at or
prior to the earlier of (i) 5:00 P.M., New York City time, on May 1, 2014,
or such later date as may be established by the Board prior to the expiration of the Rights
(such date, as it may be extended by the Board (the “Final Expiration Date”), or (ii) the time at
which the Rights are redeemed as provided in Section 24 hereof (the earlier of (i) and (ii) being
herein referred to as the “Expiration Date”).

          (b) The Purchase Price for each one one-hundredth (1/100) of a Preferred Share pursuant to the
exercise of a Right shall initially be Twenty-Five Dollars ($25.00) and shall be subject to
adjustment from time to time as provided in Sections 11 and 13(a) hereof and shall be payable in
accordance with paragraph (c) below.

9

 

          (c) Upon receipt of a Rights Certificate representing exercisable Rights, with the form of
election to purchase and the certificate duly executed, accompanied by payment, with respect to
each Right so exercised, of the Purchase Price per one one-hundredth (1/100) of a Preferred Share
(or other shares, securities, cash or other assets, as the case may be) to be purchased as set
forth below and an amount equal to any applicable tax or charge required to be paid under Section
9(e) hereof, the Rights Agent shall, subject to Section 21(k) hereof, thereupon promptly (i) (A)
requisition from any transfer agent of the Preferred Shares (or make available, if the Rights Agent
is the transfer agent for such shares) certificates for the total number of one one-hundredths of a
Preferred Share to be purchased and the Company hereby irrevocably authorizes its transfer agent to
comply with all such requests, or (B) if the Company shall have elected to deposit the total number
of Preferred Shares issuable upon exercise of the Rights hereunder with a depositary agent,
requisition from the depositary agent depositary receipts representing such number of one
one-hundredths of a Preferred Share as are to be purchased (in which case certificates for the
Preferred Shares represented by such receipts shall be deposited by the transfer agent with the
depositary agent) and the Company will direct the depositary agent to comply with such request,
(ii) when necessary to comply with this Agreement, requisition from the Company the amount of cash,
if any, to be paid in lieu of fractional shares in accordance with Section 14 hereof, (iii) after
receipt of such certificates or depositary receipts, cause the same to be delivered to or upon the
order of the registered holder of such Rights Certificate, registered in such name or names as may
be designated by such holder, and (iv) when necessary to comply with this Agreement, after receipt
thereof, deliver such cash, if any, to or upon the order of the registered holder of such Rights
Certificate. The payment of the Purchase Price and any applicable tax or charge (as such amount may
be reduced pursuant to Section 11(a)(iii) hereof) shall be made by certified check, cashier’s
check, bank draft or money order payable to the order of the Company. In the event that the Company
is obligated to issue other securities (including Common Shares) of the Company, pay cash and/or
distribute other property pursuant to Section 11(a) hereof, the Company will make all arrangements
necessary so that such other securities, cash and/or other property are available for distribution
by the Rights Agent, if and when appropriate. The Company reserves the right to require prior to
the occurrence of a Triggering Event that, upon any exercise of Rights, a number of Rights be
exercised so that only whole Preferred Shares would be issued.

          (d) If the registered holder of any Rights Certificate exercises less than all the Rights
evidenced thereby, a new Rights Certificate evidencing Rights equivalent to the Rights remaining
unexercised shall be issued by the Rights Agent and delivered to, or upon the order of, the
registered holder of such Rights Certificate or to his duly authorized assigns, registered in
such name or names as may be designated by such holder, subject to the provisions of Section
14 hereof.

          (e) Notwithstanding anything in this Agreement to the contrary, from and after the first
occurrence of a Flip-In Event, any Rights beneficially owned by (i) an Acquiring Person or an
Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any
such Associate or Affiliate) who becomes a transferee after the Acquiring Person becomes such, or
(iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a
transferee prior to or concurrently with the Acquiring Person becoming such and receives such
Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring
Person to holders of equity interests in such Acquiring Person or to any

10

 

Person with whom the
Acquiring Person has any continuing agreement, arrangement or understanding (whether or not in
writing) regarding the transferred Rights or (B) a transfer which the Board has determined is part
of a plan, arrangement or understanding (whether or not in writing) which has as a primary purpose
or effect the avoidance of this Section 7(e), shall become null and void without any further action
and no holder of such Rights shall have any rights whatsoever with respect to such Rights, whether
under any provision of this Agreement or otherwise. The Company shall use all reasonable efforts to
insure that the provisions of this Section 7(e) and Section 4(b) hereof are complied with, but
shall have no liability to any holder of Rights Certificates or any other Person as a result of its
failure to make any determinations with respect to an Acquiring Person or its Affiliates,
Associates or transferees hereunder.

          (f) Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor
the Company shall be obligated to undertake any action with respect to a registered holder upon the
occurrence of any purported exercise as set forth in this Section 7 unless such registered holder
shall have (i) properly completed and duly signed the certificate contained in the form of election
to purchase set forth on the reverse side of the Rights Certificate surrendered for such exercise,
and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former
Beneficial Owner) thereof and of the Rights evidenced thereby and of the Affiliates and Associates
of such Beneficial Owner (or former Beneficial Owner) as the Company or the Rights Agent shall
reasonably request.

     Section 8. Cancellation and Destruction of Rights Certificates. All Rights
Certificates surrendered for the purpose of exercise, transfer, split up, combination or exchange
shall, if surrendered to the Company or any of its agents, be delivered to the Rights Agent for
cancellation or in cancelled form, or, if surrendered to the Rights Agent, shall be cancelled by
it, and no Rights Certificates shall be issued in lieu thereof except as expressly permitted by any
of the provisions of this Agreement. The Company shall deliver to the Rights Agent for cancellation
and retirement, and the Rights Agent shall so cancel and retire, any other Rights Certificate
purchased or acquired by the Company otherwise than upon the exercise thereof. The Rights Agent
shall deliver all cancelled Rights Certificates to the Company, or shall, at the written request of
the Company, destroy such cancelled Rights Certificates, and in such case shall deliver a
certificate of destruction thereof to the Company.

     Section 9. Reservation and Availability of Capital Shares.

          (a) The Company covenants and agrees that it will cause to be reserved and kept available out
of its authorized and unissued Preferred Shares, the number of Preferred Shares that, as provided
in this Agreement including Section 11(a)(iii) hereof, will be sufficient to permit the exercise in
full of all outstanding Rights.

          (b) So long as the Preferred Shares (and, following the occurrence of a Triggering Event,
Common Shares and/or other securities) issuable and deliverable upon the exercise of the Rights may
be listed on any national securities exchange, the Company shall use its best efforts to cause,
from and after such time as the Rights become exercisable, all shares reserved for such issuance to
be listed on such exchange upon official notice of issuance upon such exercise.

11

 

          (c) The Company shall use its best efforts to (i) file, as soon as practicable following the
earliest date after the first occurrence of a Flip-In Event on which the consideration to be
delivered by the Company upon exercise of the Rights has been determined in accordance with Section
11(a)(iii) hereof, a registration statement under the Act with respect to the securities
purchasable upon exercise of the Rights on an appropriate form, (ii) cause such registration
statement to become effective as soon as practicable after such filing, and (iii) cause such
registration statement to remain effective (with a prospectus at all times meeting the requirements
of the Act) until the earlier of (A) the date as of which the Rights are no longer exercisable for
such securities, and (B) the date of the expiration of the Rights. The Company will also take such
action as may be appropriate under, or to ensure compliance with, the securities or “blue sky” laws
of the various states in connection with the exercisability of the Rights. The Company may
temporarily suspend, for a period of time not to exceed ninety (90) days after the date set forth
in clause (i) of the first sentence of this Section 9(c), the exercisability of the Rights in order
to prepare and file such registration statement and permit it to become effective. Upon any such
suspension, the Company shall issue a public announcement stating that the exercisability of the
Rights has been temporarily suspended, as well as a public announcement at such time as the
suspension has been rescinded, in each case with simultaneous written notice, which notice shall
include a copy of such announcement, to the Rights Agent. In addition, if the Company shall
determine that a registration statement is required following the Distribution Date, the Company
may temporarily suspend the exercisability of the Rights until such time as a registration
statement has been declared effective. Notwithstanding any provision of this Agreement to the
contrary, the Rights shall not be exercisable in any jurisdiction if the requisite qualification in
such jurisdiction shall not have been obtained, the exercise thereof shall not be permitted under
applicable law or a registration statement shall not have been declared effective. The Rights Agent
may assume that any Right exercised is permitted to be exercised under applicable law and shall
have no liability for acting in reliance upon such assumption.

          (d) The Company covenants and agrees that it will take all such action as may be necessary to
ensure that all one one-hundredths of a Preferred Share (and, following the occurrence of a
Triggering Event, Common Shares and/or other securities) delivered upon exercise of Rights shall,
at the time of delivery of the certificates for such shares (subject to payment of the Purchase
Price), be duly and validly authorized and issued and fully paid and nonassessable.

          (e) The Company further covenants and agrees that it will pay when due and payable any and all
taxes and charges which may be payable in respect of the issuance or delivery of the Rights
Certificates and of any certificates for a number of one one-hundredths of a Preferred Share (or
Common Shares and/or other securities, as the case may be) upon the exercise of Rights. The Company
shall not, however, be required to pay any tax or charge which may be payable in respect of any
transfer or delivery of Rights Certificates to a Person other than, or the issuance or delivery of
a number of one one-hundredths of a Preferred Share (or Common Shares and/or other securities, as
the case may be) in respect of a name other than that of, the registered holder of the Rights
Certificates evidencing Rights surrendered for exercise or to issue or deliver any certificates for
a number of one one-hundredths of a Preferred Share (or Common Shares and/or other securities, as
the case may be) in a name other than that of the registered holder upon the exercise of any Rights
until such tax or charge shall have been paid (any such tax or charge being payable by the holder
of such Rights Certificate at the time of

12

 

surrender) or until it has been established to the
Company’s or the Rights Agent’s satisfaction that no such tax or charge is due.

     Section 10. Preferred Share Record Date. Each Person in whose name any certificate
for a number of one one-hundredths of a Preferred Share (or Common Share and/or other securities,
as the case may be) is issued upon the exercise of Rights shall for all purposes be deemed to have
become the holder of record of such fractional Preferred Share (or Common Share and/or other
securities, as the case may be) represented thereby on, and such certificate shall be dated, the
date upon which the Rights Certificate evidencing such Rights was duly surrendered and payment of
the Purchase Price (and all applicable taxes or charges) was duly made; provided, however, that if
the date of such surrender and payment is a date upon which the Preferred Shares (or Common Shares
and/or other securities, as the case may be) transfer books of the Company are closed, such Person
shall be deemed to have become the record holder of such shares (fractional or otherwise) on, and
such certificate shall be dated, the next succeeding Business Day on which the Preferred Shares (or
Common Shares and/or other securities, as the case may be) transfer books of the Company are open.
Prior to the exercise of the Rights evidenced thereby, the holder of a Rights Certificate shall not
be entitled to any rights of a shareholder of the Company with respect to shares for which the
Rights shall be exercisable, including, without limitation, the right to vote, to receive dividends
or other distributions or to exercise any preemptive rights, and shall not be entitled to receive
any notice of any proceedings of the Company, except as provided herein.

     Section 11. Adjustment of Purchase Price, Number and Kind of Shares or Number of
Rights. The Purchase Price, the number and kind of shares covered by each Right and the number
of Rights outstanding are subject to adjustment from time to time as provided in this Section 11.

     (a) (i) If the Company at any time after the date of this Agreement (A) declares a
dividend on the Preferred Shares payable in Preferred Shares, (B) subdivides the outstanding
Preferred Shares, (C) combines the outstanding Preferred Shares into a smaller number of
shares, or (D) issues any of its capital shares in a reclassification of the Preferred
Shares (including any such reclassification in connection with a consolidation or merger in
which the Company is the continuing or surviving corporation), except as
otherwise provided in this Section 11(a) and Section 7(e) hereof, the Purchase Price in
effect at the time of the record date for such dividend or of the effective date of such
subdivision, combination or reclassification, and the number and kind of shares of Preferred
Shares or capital stock, as the case may be, issuable on such date, shall be proportionately
adjusted so that the holder of any Right exercised after such time shall be entitled to
receive, upon payment of the Purchase Price then in effect, the aggregate number and kind of
Preferred Shares or shares of capital stock, as the case may be, which, if such Right had
been exercised immediately prior to such date and at a time when the Preferred Shares
transfer books of the Company were open, such holder would have owned upon such exercise and
been entitled to receive by virtue of such dividend, subdivision, combination or
reclassification. If an event occurs which would require an adjustment under both this
Section 11(a)(i) and Section 11(a)(ii) hereof, the adjustment provided for in this Section
11(a)(i) shall be in addition to, and shall be made prior to, any adjustment required
pursuant to Section 11(a)(ii) hereof.

13

 

          (ii) If any Person, alone or together with its Affiliates or Associates, shall, at any
time after the Rights Dividend Declaration Date, become an Acquiring Person, unless the
event causing such Person to become an Acquiring Person is a transaction set forth in
Section 13(a) hereof (a “Flip-In Event”), then, promptly following the occurrence of any
such Flip-In Event, proper provision shall be made so that each holder of a Right (except as
provided below and in Section 7(e) hereof) shall thereafter have the right to receive, upon
exercise thereof at the then current Purchase Price in accordance with the terms of this
Agreement, in lieu of a number of one one-hundredths of a Preferred Share, such number of
Common Shares as shall equal the result obtained by (x) multiplying the then current
Purchase Price by the then number of one one-hundredths of a Preferred Share for which a
Right was exercisable immediately prior to the first occurrence of a Flip-In Event, and (y)
dividing that product (which, following such first occurrence, shall thereafter be referred
to as the “Purchase Price” for each Right and for all purposes of this Agreement) by 50% of
the Current Market Price (determined pursuant to Section 11(d) hereof) per Common Share on
the date of such first occurrence (such number of shares, the “Adjustment Shares”).

          No Right Certificate shall be issued pursuant to Section 3 hereof that represents
Rights Beneficially Owned by an Acquiring Person whose Rights would be null and void
pursuant to Section 7(e) hereof or any Associate or Affiliate or nominee thereof; no Right
Certificate shall be issued at any time upon the transfer of any Rights to an Acquiring
Person whose Rights would be null and void pursuant to pursuant to Section 7(e) hereof or
any Associate or Affiliate thereof or to any nominee of such Acquiring Person, Associate or
Affiliate; and any Right Certificate delivered to the Rights Agent for transfer to an
Acquiring Person whose Rights would be null and void pursuant to pursuant to Section 7(e)
hereof or any Associate or Affiliate thereof or to any nominee of such Acquiring Person,
Associate or Affiliate shall be cancelled. The Company shall give the Rights Agent written
notice of the identity of any such Acquiring Person, Associate or Affiliate, or the nominee
of any of the foregoing, and the Rights Agent may rely on such notice in carrying out its
duties under this Agreement and shall be deemed not to have any knowledge of the identity of
any such Acquiring Person,
Associate or Affiliate, or the nominee of any of the foregoing unless and until it
shall have received such notice.

          (iii) If the number of shares of Common Shares which are authorized by the Company’s
Articles of Incorporation but which are not outstanding or reserved for issuance for
purposes other than upon exercise of the Rights are not sufficient to permit the exercise in
full of the Rights in accordance with the foregoing subparagraph (ii) of this Section 11(a),
the Company shall (A) determine the value of the Adjustment Shares issuable upon the
exercise of a Right (the “Current Value”), and (B) with respect to each Right (subject to
Section 7(e) hereof), make adequate provision to substitute for the Adjustment Shares, upon
the exercise of a Right and payment of the applicable Purchase Price, (1) cash, (2) a
reduction in the Purchase Price, (3) Common Shares or other equity securities of the Company
(including, without limitation, preferred shares or units of preferred shares, such as the
Preferred Shares, which the Board has deemed to have essentially the same value or economic
rights as Common Shares (such preferred shares being referred to as “Common Share
Equivalents”)), (4) debt securities of the Company,

14

 

(5) other assets, or (6) any combination
of the foregoing, having an aggregate value equal to the Current Value (less the amount of
any reduction in the Purchase Price), where such aggregate value has been determined by the
Board based upon the advice of a nationally recognized investment banking firm selected by
the Board; provided, however, that if the Company shall not have made adequate provision to
deliver value pursuant to clause (B) above within thirty (30) days following the later of
(x) the first occurrence of a Flip-In Event and (y) the date on which the Company’s right of
redemption pursuant to Section 24(a) expires (the later of (x) and (y) being referred to
herein as the “Flip-In Trigger Date”), then the Company shall be obligated to deliver, upon
the surrender for exercise of a Right and without requiring payment of the Purchase Price,
Common Shares (to the extent available) and then, if necessary, cash, which shares and/or
cash have an aggregate value equal to the Spread. For purposes of the preceding sentence,
the term “Spread” shall mean the excess of (i) the Current Value over (ii) the Purchase
Price. If the Board determines in good faith that it is likely that sufficient additional
Common Shares could be authorized for issuance upon exercise in full of the Rights, the
thirty (30) day period set forth above may be extended to the extent necessary, but not more
than one hundred twenty (120) days after the Flip-In Trigger Date, in order that the Company
may seek shareholder approval for the authorization of such additional shares (such thirty
(30) day period, as it may be extended, being the “Substitution Period”). To the extent that
action is to be taken pursuant to the first and/or third sentences of this Section
11(a)(iii), the Company (1) shall provide, subject to Section 7(e) hereof, that such action
shall apply uniformly to all outstanding Rights, and (2) may suspend the exercisability of
the Rights until the expiration of the Substitution Period in order to seek such shareholder
approval for such authorization of additional shares and/or to decide the appropriate form
of distribution to be made pursuant to such first sentence and to determine the value
thereof. In the event of any such suspension, the Company shall issue a public announcement
stating that the exercisability of the Rights has been temporarily suspended (with prompt
written notice thereof to the Rights Agent), as well as a public announcement at such time
as the suspension is no longer in effect (with prompt written notice thereof to the Rights
Agent). For purposes of this Section 11(a)(iii), the per share or per unit value shall be
the Current Market Price per Common Share on the Flip-In Trigger Date and the value of
any Common Share Equivalent shall be deemed to equal the current market price per
Common Share on such date.

          (b) If the Company fixes a record date for the issuance of rights, options or warrants to all
holders of Preferred Shares entitling them to subscribe for or purchase (for a period expiring
within forty-five (45) calendar days after such record date) Preferred Shares (or shares having the
same rights, privileges and preferences as the Preferred Shares (“Equivalent Preferred Shares”)) or
securities convertible into Preferred Shares or Equivalent Preferred Shares at a price per
Preferred Share or per Equivalent Preferred Share (or having a conversion price per share, if a
security convertible into Preferred Shares or Equivalent Preferred Shares) less than the Current
Market Price (as determined pursuant to Section 11(d) hereof) per Preferred Share on such record
date, the Purchase Price to be in effect after such record date shall be determined by multiplying
the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of
which shall be the number of Preferred Shares outstanding on such record date, plus the number of
Preferred Shares which the aggregate offering price of the total number of Preferred Shares and/or
Equivalent Preferred Shares so to be offered (and/or the

15

 

aggregate initial conversion price of the
convertible securities so to be offered) would purchase at such Current Market Price, and the
denominator of which shall be the number of Preferred Shares outstanding on such record date, plus
the number of additional Preferred Shares and/or Equivalent Preferred Shares to be offered for
subscription or purchase (or into which the convertible securities so to be offered are initially
convertible). In case such subscription price may be paid by delivery of consideration, part or all
of which may be in a form other than cash, the value of such consideration shall be as determined
in good faith by the Board, whose determination shall be described in a statement filed with the
Rights Agent and shall be binding on the Rights Agent and the holders of the Rights. Preferred
Shares owned by or held for the account of the Company shall not be deemed outstanding for the
purpose of any such computation. Such adjustment shall be made successively whenever such a record
date is fixed, and in the event that such rights or warrants are not so issued, the Purchase Price
shall be adjusted to be the Purchase Price which would then be in effect if such record date had
not been fixed.

          (c) If the Company fixes a record date for a distribution to all holders of Preferred Shares
(including any such distribution made in connection with a consolidation or merger in which the
Company is the continuing corporation) of evidences of indebtedness, cash (other than a regular
quarterly cash dividend out of the earnings or retained earnings of the Company), assets (other
than a dividend payable in Preferred Shares, but including any dividend payable in shares other
than Preferred Shares) or evidences of indebtedness, or of subscription rights or warrants
(excluding those referred to in Section 11(b) hereof), the Purchase Price to be in effect after
such record date shall be determined by multiplying the Purchase Price in effect immediately prior
to such record date by a fraction, the numerator of which shall be the Current Market Price (as
determined pursuant to Section 11(d) hereof) per Preferred Shares on such record date, less the
fair market value (as determined in good faith by the Board, whose determination shall be described
in a statement filed with the Rights Agent) of the portion of the cash, assets or evidences of
indebtedness so to be distributed or of such subscription rights or warrants applicable to a
Preferred Share and the denominator of which shall be such Current Market Price (as determined
pursuant to Section 11(d) hereof) per Preferred Share. Such adjustments shall be made successively
whenever such a record date is fixed, and in the event
that such distribution is not so made, the Purchase Price shall be adjusted to be the Purchase
Price which would have been in effect if such record date had not been fixed.

          (d) (i) For the purpose of any computation hereunder, other than computations made pursuant to
Section 11(a)(iii) hereof, the “Current Market Price” per Common Share on any date shall be deemed
to be the average of the daily closing prices per Common Share for the thirty (30) consecutive
Trading Days immediately prior to such date, and for purposes of computations made pursuant to
Section 11(a)(iii) hereof, the Current Market Price per Common Share on any date shall be deemed to
be the average of the daily closing prices per Common Share for the ten (10) consecutive Trading
Days immediately following such date; provided, however, that in the event that the Current Market
Price per Common Share is determined during a period following the announcement by the issuer of
such Common Share of (A) a dividend or distribution on such Common Share payable in Common Shares
or securities convertible into Common Shares (other than the Rights), or (B) any subdivision,
combination or reclassification of such Common Share, and the ex-dividend date for such dividend or
distribution, or the record date for such subdivision, combination or reclassification shall not

16

 

have occurred prior to the commencement of the requisite thirty (30) Trading Day or ten (10)
Trading Day period, as set forth above, then, and in each such case, the Current Market Price shall
be properly adjusted to take into account ex-dividend trading. The closing price for each day shall
be the last sale price, regular way, or, in case no such sale takes place on such day, the average
of the closing bid and asked prices, regular way, in either case as reported in the principal
consolidated transaction reporting system with respect to securities listed or admitted to trading
on The NASDAQ Stock Market or, if the Common Shares are not listed or admitted to trading on The
NASDAQ Stock Market, as reported in the principal consolidated transaction reporting system with
respect to securities listed on the principal national securities exchange on which the Common
Shares are listed or admitted to trading, or if the Common Shares are not listed or admitted to
trading on any national securities exchange, the last quoted price or, if not so quoted, the
average of the high bid and low asked prices in the over-the-counter market or, if on any such date
the Common Shares are not quoted by any such organization, the average of the closing bid and asked
prices as furnished by a professional market maker making a market in the Common Shares selected by
the Board. If on any such date no market maker is making a market in the Common Shares, the fair
value of such shares on such date as determined in good faith by the Board shall be used. The term
“Trading Day” shall mean a day on which the principal national securities exchange on which the
Common Shares are listed or admitted to trading is open for the transaction of business or, if the
Common Shares are not listed or admitted to trading on any national securities exchange, a Business
Day. If the Common Shares are not publicly held or not so listed or traded, Current Market Price
per share shall mean the fair value per share as determined in good faith by the Board, whose
determination shall be described in a statement filed with the Rights Agent and shall be conclusive
for all purposes.

          (ii) For the purpose of any computation hereunder, the Current Market Price per
Preferred Share shall be determined in the same manner as set forth above for the Common
Shares in clause (i) of this Section 11(d) (other than the last sentence thereof). If the
Current Market Price per Preferred Share cannot be determined in the manner provided above
or if the Preferred Shares are not publicly held or listed or traded in a manner described
in clause (i) of this Section 11(d), the Current Market Price per Preferred Share shall be
conclusively deemed to be an amount equal to one hundred (100)
(as such number may be appropriately adjusted for such events as stock splits, stock
dividends and recapitalizations with respect to the Common Shares occurring after the date
of this Agreement) multiplied by the Current Market Price per Common Share. If neither the
Common Shares nor the Preferred Shares are publicly held or so listed or traded, Current
Market Price per Preferred Share shall mean the fair value per share as determined in good
faith by the Board, whose determination shall be described in a statement filed with the
Rights Agent and shall be conclusive for all purposes. For all purposes of this Agreement,
the Current Market Price of one one-hundredth of a Preferred Share shall be equal to the
Current Market Price of one Preferred Share divided by one hundred (100).

          (e) Anything herein to the contrary notwithstanding, no adjustment in the Purchase Price shall
be required unless such adjustment would require an increase or decrease of at least one percent
(1%) in the Purchase Price; provided, however, that any adjustments which by reason of this Section
11(e) are not required to be made shall be carried forward and taken into account in any subsequent
adjustment. All calculations under this Section 11 shall be made

17

 

to the nearest cent or to the
nearest ten-thousandth of a Common Share or other share or one-millionth of a Preferred Share, as
the case may be. Notwithstanding the first sentence of this Section 11(e), any adjustment required
by this Section 11 shall be made no later than the earlier of (i) three (3) years from the date of
the transaction which mandates such adjustment, or (ii) the Expiration Date.

          (f) If as a result of an adjustment made pursuant to Section 11(a)(ii) or Section 13(a)
hereof, the holder of any Right thereafter exercised shall become entitled to receive any capital
shares other than Preferred Shares, thereafter the number of such other shares so receivable upon
exercise of any Right and the Purchase Price thereof shall be subject to adjustment from time to
time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to
the Preferred Shares contained in Sections 11(a), (b), (c), (e), (g), (h), (i), (j), (k) and (m),
and the provisions of Sections 7, 9, 10, 13 and 14 hereof with respect to the Preferred Shares
shall apply on like terms to any such other shares.

          (g) All Rights originally issued by the Company subsequent to any adjustment made to the
Purchase Price hereunder shall evidence the right to purchase, at the adjusted Purchase Price, the
number of one one-hundredths of a Preferred Share purchasable from time to time hereunder upon
exercise of the Rights, all subject to further adjustment as provided herein.

          (h) Unless the Company has exercised its election as provided in Section 11(i), upon each
adjustment of the Purchase Price as a result of the calculations made in Sections 11(b) and (c),
each Right outstanding immediately prior to the making of such adjustment shall thereafter evidence
the right to purchase, at the adjusted Purchase Price, that number of one one-hundredths of a
Preferred Share (calculated to the nearest one-millionth) obtained by (i) multiplying (x) the
number of one one-hundredths of a share covered by a Right immediately prior to this adjustment, by
(y) the Purchase Price in effect immediately prior to such adjustment of the Purchase Price, and
(ii) dividing the product so obtained by the Purchase Price in effect immediately after such
adjustment of the Purchase Price.

          (i) The Company may elect on or after the date of any adjustment of the Purchase Price to
adjust the number of Rights, in lieu of any adjustment in the number of one one-hundredths of a
Preferred Share purchasable upon the exercise of a Right. Each of the Rights outstanding after the
adjustment in the number of Rights shall be exercisable for the number of one one-hundredths of a
Preferred Share for which a Right was exercisable immediately prior to such adjustment. Each Right
held of record prior to such adjustment of the number of Rights shall become that number of Rights
(calculated to the nearest one-millionth) obtained by dividing the Purchase Price in effect
immediately prior to adjustment of the Purchase Price by the Purchase Price in effect immediately
after adjustment of the Purchase Price. The Company shall make a public announcement (with prompt
written notice thereof to the Rights Agent) of its election to adjust the number of Rights,
indicating the record date for the adjustment, and if known at the time, the amount of the
adjustment to be made. This record date may be the date on which the Purchase Price is adjusted or
any day thereafter, but, if the Rights Certificates have been issued, shall be at least ten (10)
days later than but not including the date of the public announcement. If Rights Certificates have
been issued, upon each adjustment of the number of Rights pursuant to this Section 11(i), the
Company shall, as promptly as practicable, cause to be distributed to holders of record of Rights
Certificates on such record date Rights Certificates

18

 

evidencing, subject to Section 14 hereof, the
additional Rights to which such holders shall be entitled as a result of such adjustment, or, at
the option of the Company, shall cause to be distributed to such holders of record in substitution
and replacement for the Rights Certificates held by such holders prior to the date of adjustment,
and upon surrender thereof, if required by the Company, new Rights Certificates evidencing all the
Rights to which such holders shall be entitled after such adjustment. Rights Certificates so to be
distributed shall be issued, executed and delivered by the Company, and countersigned and delivered
by the Rights Agent, in the manner provided for herein (and may bear, at the option of the Company,
the adjusted Purchase Price) and shall be registered in the names of the holders of record of
Rights Certificates on the record date specified in the public announcement.

          (j) Irrespective of any adjustment or change in the Purchase Price or the number of one
one-hundredths of a Preferred Share issuable upon the exercise of the Rights, the Rights
Certificates theretofore and thereafter issued may continue to express the Purchase Price per one
one-hundredth of a share and the number of one one-hundredth of a share which were expressed in the
initial Rights Certificates issued hereunder.

          (k) Before taking any action that would cause an adjustment reducing the Purchase Price below
the then stated value, if any, of the number of one one-hundredths of a Preferred Share issuable
upon exercise of the Rights, the Company shall take any corporate action which may, in the opinion
of its counsel, be necessary in order that the Company may validly and legally issue fully paid and
nonassessable such number of one one-hundredths of a Preferred Share at such adjusted Purchase
Price.

          (l) In any case in which this Section 11 requires that an adjustment in the Purchase Price be
made effective as of a record date for a specified event, the Company may elect to defer (with
prompt written notice thereof to the Rights Agent) until the occurrence of such event the issuance
to the holder of any Right exercised after such record date the number of one one-hundredths of a
Preferred Share and other capital shares or securities of the Company, if any, issuable upon such
exercise over and above the number of one one-hundredths of a
Preferred Share and other capital shares or securities of the Company, if any, issuable upon
such exercise on the basis of the Purchase Price in effect prior to such adjustment; provided,
however, that the Company shall deliver to such holder a due bill or other appropriate instrument
evidencing such holder’s right to receive such additional shares (fractional or otherwise) or
securities upon the occurrence of the event requiring such adjustment.

          (m) Anything in this Section 11 to the contrary notwithstanding, the Company shall be entitled
to make such reductions in the Purchase Price, in addition to those adjustments expressly required
by this Section 11, as and to the extent that in their good faith judgment the Board shall
determine to be advisable in order that any (i) consolidation or subdivision of the Preferred
Shares, (ii) issuance wholly for cash of any Preferred Shares at less than the Current Market
Price, (iii) issuance wholly for cash of Preferred Shares or securities which by their terms are
convertible into or exchangeable for Preferred Shares, (iv) Preferred Share dividends or (v)
issuance of rights, options or warrants referred to in this Section 11, hereafter made by the
Company to holders of its Preferred Shares shall not be taxable to such shareholders.

19

 

          (n) The Company covenants and agrees that it shall not, at any time after the Distribution
Date, (i) consolidate with any other Person (other than a Subsidiary of the Company in a
transaction which complies with Section 11(o) hereof), (ii) merge with or into any other Person
(other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof),
or (iii) sell or transfer (or permit any Subsidiary to sell or transfer), in one transaction, or a
series of related transactions, assets, cash flow or earning power aggregating more than fifty
percent (50%) of the assets or earning power of the Company and its Subsidiaries (taken as a whole)
to any other Person or Persons (other than the Company and/or any of its Subsidiaries in one or
more transactions each of which complies with Section 11(o) hereof), if (x) at the time of or
immediately after such consolidation, merger or sale there are any rights, warrants or other
instruments or securities outstanding or agreements in effect which would substantially diminish or
otherwise eliminate the benefits intended to be afforded by the Rights or (y) prior to,
simultaneously with or immediately after such consolidation, merger or sale, the shareholders of
the Person who constitutes, or would constitute, the “Principal Party” for purposes of Section
13(a) hereof shall have received a distribution of Rights previously owned by such Person or any of
its Affiliates and Associates.

          (o) The Company covenants and agrees that, after the Distribution Date, it will not, except as
permitted by Section 24 or Section 27 hereof, take (or permit any Subsidiary to take) any action if
at the time such action is taken it is reasonably foreseeable that such action will diminish
substantially or otherwise eliminate the benefits intended to be afforded by the Rights.

          (p) Anything in this Agreement to the contrary notwithstanding, in the event that the Company
shall at any time after the Rights Dividend Declaration Date and prior to the Distribution Date (i)
declare a dividend on the outstanding Common Shares payable in Common Shares, (ii) subdivide the
outstanding Common Shares, or (iii) combine the outstanding Common Shares into a smaller number of
shares, the number of Rights associated with each Common Share then outstanding, or issued or
delivered thereafter but prior to the Distribution Date, shall be proportionately adjusted so that
the number of Rights thereafter associated with each Common Share following any such event shall
equal the result obtained by multiplying the
number of Rights associated with each Common Share immediately prior to such event by a
fraction the numerator which shall be the total number of Common Shares outstanding immediately
prior to the occurrence of the event and the denominator of which shall be the total number of
Common Shares outstanding immediately following the occurrence of such event.

     Section 12. Certificate of Adjusted Purchase Price or Number of Shares. Whenever an
adjustment is made or any event affecting the Rights or their exercisability (including without
limitation an event which causes the Rights to become null and void) occurs as provided in Section
11 and Section 13 hereof, the Company shall (a) promptly prepare a certificate setting forth such
adjustment or describing such event, and a brief, reasonably detailed statement of the facts,
computations and methodology accounting for such adjustment, (b) promptly file with the Rights
Agent, and with each transfer agent for the Preferred Shares and the Common Shares, a copy of such
certificate and (c) if a Distribution Date has occurred, mail a brief summary thereof to each
holder of a Rights Certificate in accordance with Section 26 hereof. The Rights Agent shall be
fully protected in relying on any such certificate and on any adjustment or statement therein
contained and shall have no duty or liability with respect to, and
shall not be deemed to have
knowledge of, such adjustment or event unless and until it shall have received such certificate.

20

 

     Section 13. Consolidation, Merger or Sale or Transfer of Assets, Cash Flow or Earning
Power.

          (a) If, following the Share Acquisition Date, directly or indirectly, (x) the Company shall
consolidate with, or merge with and into, any other Person (other than a Subsidiary of the Company
in a transaction which complies with Section 11(o) hereof), and the Company shall not be the
continuing or surviving corporation of such consolidation or merger, (y) any Person (other than a
Subsidiary of the Company in a transaction which complies with Section 11(o) hereof) shall
consolidate with, or merge with or into, the Company, and the Company shall be the continuing or
surviving corporation of such consolidation or merger and, in connection with such consolidation or
merger, all or part of the outstanding Common Shares shall be changed into or exchanged for shares
or other securities of any other Person or cash or any other property, or (z) the Company shall
sell or otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise transfer),
in one transaction or a series of related transactions, assets, cash flow or earning power
aggregating more than fifty percent (50%) of the assets, cash flow or earning power of the Company
and its Subsidiaries (taken as a whole) to any Person or Persons (other than the Company or any
Subsidiary of the Company in one or more transactions each of which complies with Section 11(o)
hereof), then, and in each such case (except as may be contemplated by Section 13(d) hereof),
proper provision shall be made so that: (i) each holder of a Right, except as provided in Section
7(e) hereof, shall thereafter have the right to receive, upon the exercise thereof at the then
current Purchase Price in accordance with the terms of this Agreement, such number of validly
authorized and issued, fully paid, non-assessable and freely tradeable Common Shares of the
Principal Party (as such term is hereinafter defined), not subject to any liens, encumbrances,
rights of first refusal or other adverse claims, as shall be equal to the result obtained by (1)
multiplying the then current Purchase Price by the number of one one-hundredths of a Preferred
Share for which a Right is exercisable immediately prior to
the first occurrence of a Flip-Over Event (or, if a Flip-In Event has occurred prior to the
first occurrence of a Flip-Over Event, multiplying the number of such one one-hundredths of a share
for which a Right was exercisable immediately prior to the first occurrence of a Flip-In Event by
the Purchase Price in effect immediately prior to such first occurrence), and dividing that product
(which, following the first occurrence of a Flip-Over Event, shall be referred to as the “Purchase
Price” for each Right and for all purposes of this Agreement) by (2) fifty percent (50%) of the
Current Market Price (determined pursuant to Section 11(d)(i) hereof) per Common Share of such
Principal Party on the date of consummation of such Flip-Over Event; (ii) such Principal Party
shall thereafter be liable for, and shall assume, by virtue of such Flip-Over Event, all the
obligations and duties of the Company pursuant to this Agreement; (iii) the term “Company” shall
thereafter be deemed to refer to such Principal Party, it being specifically intended that the
provisions of Section 11 hereof shall apply only to such Principal Party following the first
occurrence of a Flip-Over Event; (iv) such Principal Party shall take such steps (including, but
not limited to, the reservation of a sufficient number of its Common Shares) in connection with the
consummation of any such transaction as may be necessary to assure that the provisions hereof shall
thereafter be applicable, as nearly as reasonably may be, in relation to its Common Shares
thereafter deliverable upon the exercise of the Rights; and (v) the provisions of Section 11(a)(ii)
hereof shall be of no effect following the first occurrence of any Flip-Over Event.

21

 

          (b) “Principal Party” shall mean:

          (i) in the case of any transaction described in clause (x) or (y) of the first sentence
of Section 13(a), the Person that is the issuer of any securities into which Common Shares
of the Company are converted in such merger or consolidation, and if no securities are so
issued, the Person that is the other party to such merger or consolidation; and

          (ii) in the case of any transaction described in clause (z) of the first sentence of
Section 13(a), the Person that is the party receiving the greatest portion of the assets,
cash flow or earning power transferred pursuant to such transaction or transactions;
provided, however, that in any such case, (1) if the Common Shares of such Person are not at
such time and have not been continuously over the preceding twelve (12) month period
registered under Section 12 of the Exchange Act, and such Person is a direct or indirect
Subsidiary of another Person the Common Shares of which are and have been so registered,
“Principal Party” shall refer to such other Person; and (2) in case such Person is a
Subsidiary, directly or indirectly, of more than one Person, the Common Shares of two or
more of which are and have been so registered, “Principal Party” shall refer to whichever of
such Persons is the issuer of the Common Shares having the greatest aggregate market value.

          (c) The Company shall not consummate any such consolidation, merger, sale or transfer unless
the Principal Party shall have a sufficient number of authorized shares of its Common Shares which
have not been issued or reserved for issuance to permit the exercise in full of the Rights in
accordance with this Section 13 and unless prior thereto the Company and such Principal Party shall
have executed and delivered to the Rights Agent a supplemental agreement providing for the terms
set forth in paragraphs (a) and (b) of this Section 13 and
further providing that, as soon as practicable after the date of any consolidation, merger or
sale of assets mentioned in paragraph (a) of this Section 13, the Principal Party will:

          (i) prepare and file a registration statement under the Act, with respect to the Rights
and the securities purchasable upon exercise of the Rights on an appropriate form, and will
use its best efforts to cause such registration statement to (A) become effective as soon as
practicable after such filing and (B) remain effective (with a prospectus at all times
meeting the requirements of the Act) until the Expiration Date;

          (ii) take all such other action as may be necessary to enable the Principal Party to
issue the securities purchasable upon exercise of the Rights, including but not limited to
the registration or qualification of such securities under all requisite securities laws of
jurisdictions of the various states and the listing of such securities on such exchanges and
trading markets as may be necessary or appropriate; and

          (iii) will deliver to holders of the Rights historical financial statements for the
Principal Party and each of its Affiliates which comply in all respects with the
requirements for registration on Form 10 under the Exchange Act.

22

 

          (d) In no event shall the Rights Agent have any liability in respect of any such Principal
Party transactions, including, without limitation, the propriety thereof. The Rights Agent may rely
and be fully protected in relying upon a certificate of the Company stating that the provisions of
this Section 13 have been fulfilled. Notwithstanding anything in this Agreement to the contrary,
the prior written consent of the Rights Agent must be obtained in connection with any supplemental
agreement which alters the rights, immunities, duties and obligations of the Rights Agent.

          (e) In case the Principal Party which is to be a party to a transaction referred to in
this Section 13 has provision in any of its authorized securities or in its Certificate of
Incorporation or By-laws or other instrument governing its corporate affairs, which provision would
have the effect of (i) causing such Principal Party to issue, in connection with, or as a
consequence of, the consummation of a transaction referred to in this Section 13, shares of Common
Shares of such Principal Party at less than the then Current Market Price per share (determined
pursuant to Section 11(d) hereof) or securities exercisable for, or convertible into, Common Shares
of such Principal Party at less than such then Current Market Price (other than to holders of
Rights pursuant to this Section 13) or (ii) providing for any special payment, tax or similar
provisions in connection with the issuance of the Common Shares of such Principal Party pursuant to
the provisions of Section 13; then, in such event, the Company shall not consummate any such
transaction unless prior thereto the Company and such Principal Party shall have executed and
delivered to the Rights Agent a supplemental agreement providing that the provision in question of
such Principal Party shall have been cancelled, waived or amended, or that the authorized
securities shall be redeemed, so that the applicable provision will have no effect in connection
with, or as a consequence of, the consummation of the proposed transaction.

          (f) The provisions of this Section 13 shall similarly apply to successive mergers or
consolidations or sales or other transfers. In the event that a Flip-Over Event shall
occur at any time after the occurrence of a Flip-In Event, the Rights which have not
theretofore been exercised shall thereafter become exercisable in the manner described in Section
13(a).

     Section 14. Fractional Rights and Fractional Shares.

          (a) The Company shall not be required to issue fractions of Rights, except prior to the
Distribution Date as provided in Section 11(p) hereof, or to distribute Rights Certificates which
evidence fractional Rights. In lieu of such fractional Rights, the Company shall pay to the
registered holders of the Rights Certificates with regard to which such fractional Rights would
otherwise be issuable, an amount in cash equal to the same fraction of the current market value of
a whole Right. For purposes of this Section 14(a), the current market value of a whole Right shall
be the closing price of the Rights for the Trading Day immediately prior to the date on which such
fractional Rights would have been otherwise issuable. The closing price of the Rights for any day
shall be the last sale price, regular way, or, in case no such sale takes place on such day, the
average of the closing bid and asked prices, regular way, in either case as reported in the
principal consolidated transaction reporting system with respect to securities listed or admitted
to trading on The NASDAQ Stock Market or, if the Rights are not listed or

23

 

admitted to trading on
The NASDAQ Stock Market, as reported in the principal consolidated transaction reporting system
with respect to securities listed on the principal national securities exchange on which the Rights
are listed or admitted to trading, or if the Rights are not listed or admitted to trading on any
national securities exchange, the last quoted price or, if not so quoted, the average of the high
bid and low asked prices in the over-the-counter market or, if on any such date the Rights are not
quoted by any such organization, the average of the closing bid and asked prices as furnished by a
professional market maker making a market in the Rights selected by the Board. If on any such date
no such market maker is making a market in the Rights, the fair value of the Rights on such date as
determined in good faith by the Board shall be used.

          (b) The Company shall not be required to issue fractions of Preferred Shares (other than
fractions which are integral multiples of one one-hundredth of a Preferred Share) upon exercise of
the Rights or to distribute certificates which evidence fractional Preferred Shares (other than
fractions which are integral multiples of one one-hundredth of a Preferred Share). In lieu of
fractional Preferred Shares that are not integral multiples of one one-hundredth of a Preferred
Share, the Company may pay to the registered holders of Rights Certificates at the time such Rights
are exercised as herein provided an amount in cash equal to the same fraction of the current market
value of one one-hundredth of a Preferred Share. For purposes of this Section 14(b), the current
market value of one one-hundredth of a Preferred Share shall be one one-hundredth of the closing
price of a Preferred Share (as determined pursuant to Section 11(d)(ii) hereof) for the Trading Day
immediately prior to the date of such exercise.

          (c) Following the occurrence of a Triggering Event, the Company shall not be required to issue
fractions of Common Shares upon exercise of the Rights or to distribute certificates which evidence
fractional Common Shares. In lieu of fractional Common Shares, the Company may pay to the
registered holders of Rights Certificates at the time such Rights are exercised as herein provided
an amount in cash equal to the same fraction of the current market value of one (1) Common Share.
For purposes of this Section 14(c), the current market value of
one Common Share shall be the closing price of one (1) Common Share (as determined pursuant to
Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of such exercise.

          (d) The holder of a Right by the acceptance of the Rights expressly waives his right to
receive any fractional Rights or any fractional shares upon exercise of a Right, except as
permitted by this Section 14.

          (e) Whenever a payment for fractional Rights or fractional shares is to be made by the Rights
Agent, the Company shall (i) promptly prepare and deliver to the Rights Agent a certificate setting
forth in reasonable detail the facts related to such payments and the prices and/or formulas
utilized in calculating such payments, and (ii) provide sufficient monies to the Rights Agent in
the form of fully collected funds to make such payments. The Rights Agent shall be fully protected
in relying upon such a certificate and shall have no duty with respect to, and shall not be deemed
to have knowledge of any payment for fractional Rights or fractional shares under any Section of
this Agreement relating to the payment of fractional Rights or fractional shares unless and until
the Rights Agent shall have received such a certificate and sufficient monies.

     Section 15. Exchange of Rights. At any time after any person or group becomes an
Acquiring Person and prior to the acquisition by such person or group of 50% or more of the
outstanding Common Shares, the Board of Directors of the Company may, at its option,

24

 

exchange the Rights (other than Rights owned by such person or group which will have become void), in whole or
in part, at an exchange ratio of one Common Share, or one one-hundredth (1/100) of a Preferred
Share (or of a share of a class or series of the Company’s preferred stock having equivalent
rights, preferences and privileges), per Right (subject to adjustment). If the Board authorizes
such an exchange, the Rights will immediately terminate and the only right of the holders of such
Rights will be to receive the exchange shares.

     Section 16. Rights of Action. All rights of action in respect of this Agreement,
excepting the rights of action given to the Rights Agent under Section 19 and Section 21 hereof,
are vested in the respective registered holders of the Rights Certificates (and, prior to the
Distribution Date, the registered holders of the Common Shares); and any registered holder of any
Rights Certificate (or, prior to the Distribution Date, of the Common Shares), without the consent
of the Rights Agent or of the holder of any other Rights Certificate (or, prior to the Distribution
Date, of the Common Shares), may, in his own behalf and for his own benefit, enforce, and may
institute and maintain any suit, action or proceeding against the Company to enforce, or otherwise
act in respect of, his right to exercise the Rights evidenced by such Rights Certificate in the
manner provided in such Rights Certificate and in this Agreement. Without limiting the foregoing or
any remedies available to the holders of Rights, it is specifically acknowledged that the holders
of Rights would not have an adequate remedy at law for any breach by the Company of this Agreement
and shall be entitled to specific performance of the obligations hereunder and injunctive relief
against actual or threatened violations by the Company of the obligations hereunder of any Person
subject to this Agreement.

     Section 17. Agreement of Rights Holders. Every holder of a Right by accepting the
same consents and agrees with the Company and the Rights Agent and with every other holder of a
Right that:

          (a) prior to the Distribution Date, the Rights will be transferable only in connection with
the transfer of Common Shares;

          (b) after the Distribution Date, the Rights Certificates are transferable only on the registry
books of the Rights Agent if surrendered at the office or offices of the Rights Agent designated
for such purposes, duly endorsed or accompanied by a proper instrument of transfer and with the
appropriate forms and certificates fully executed;

          (c) subject to Section 6(a) and Section 7(f) hereof, the Company and the Rights Agent may deem
and treat the Person in whose name a Rights Certificate (or, prior to the Distribution Date, the
associated Common Share certificate) is registered as the absolute owner thereof and of the Rights
evidenced thereby (notwithstanding any notations of ownership or writing on the Rights Certificates
or the associated Common Share certificate made by anyone other than the Company or the Rights
Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent, subject to the
last sentence of Section 7(e) hereof, shall be required to be affected by any notice to the
contrary; and

          (d) notwithstanding anything in this Agreement to the contrary, neither the Company nor the
Rights Agent shall have any liability to any holder of a Right or other Person

25

 

as a result of its inability to perform any of its obligations under this Agreement by reason of any preliminary or
permanent injunction or other order, judgment, decree or ruling (whether interlocutory or final)
issued by a court of competent jurisdiction or by a governmental, regulatory or administrative
agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by
any governmental authority, prohibiting or otherwise restraining performance of such obligation;
provided, however, the Company must use its best efforts to have any such order, judgment, decree
or ruling lifted or otherwise overturned as soon as possible.

     Section 18. Rights Certificate Holder Not Deemed a Shareholder. No holder, as such,
of any Rights Certificate shall be entitled to vote, receive dividends or be deemed for any purpose
the holder of the number of one one-hundredths of a Preferred Share or any other securities of the
Company which may at any time be issuable on the exercise of the Rights represented thereby, nor
shall anything contained herein or in any Rights Certificate be construed to confer upon the holder
of any Rights Certificate, as such, any of the rights of a shareholder of the Company or any right
to vote for the election of directors or upon any matter submitted to shareholders at any meeting
thereof, or to give or withhold consent to any corporate action, or to receive notice of meetings
or other actions affecting shareholders (except as provided in Section 25 hereof), or to receive
dividends or subscription rights, or otherwise, until the Right or Rights evidenced by such Rights
Certificate shall have been exercised in accordance with the provisions hereof.

     Section 19. Concerning the Rights Agent.

          (a) The Company agrees to pay to the Rights Agent such compensation as shall be agreed in
writing from time to time by the Company and the Rights Agent for all services rendered by it
hereunder and, from time to time, on demand of the Rights Agent, its reasonable expenses and
counsel fees and disbursements and other disbursements incurred in the preparation, negotiation,
delivery, amendment, administration and execution of this Agreement and the exercise and
performance of its duties hereunder. The Company also agrees to indemnify the Rights Agent for, and
to hold it harmless against, any and all loss, liability, damage, judgment, fine, penalty, demand,
settlement, cost, claim or expense, incurred without gross negligence, bad faith or willful
misconduct on the part of the Rights Agent (which gross negligence, bad faith or willful misconduct
must be determined by a final, non-appealable judgment of a court of competent jurisdiction), for
any action taken, suffered or omitted by the Rights Agent in connection with the acceptance,
exercise, performance and administration of its duties under this Agreement, including the costs
and expenses of defending against any claim of liability in the premises. The costs and expenses
incurred in enforcing this right or indemnification shall be paid by the Company. The provisions
of this Section 19(a) shall survive the exercise or expiration of the Rights, the resignation,
replacement or removal of the Rights Agent and the termination of this Agreement.

          (b) The Rights Agent shall be authorized and protected and shall incur no liability for or in
respect of any action taken, suffered or omitted by it in connection with its acceptance and
administration of this Agreement and the exercise and performance of its duties hereunder in
reliance upon any Rights Certificate or certificate for Common Shares or for other securities of
the Company, instrument of assignment or transfer, power of attorney, endorsement,

26

 

instruction,
opinion, affidavit, letter, notice, direction, consent, certificate, statement, or other paper or
document believed by it to be genuine and to be signed, executed and, where necessary, to be
verified or acknowledged by the proper Person or Persons, or otherwise upon the advice of counsel
as set forth in Section 21 hereof. The Rights Agent shall not be deemed to have knowledge of any
event of which it was supposed to receive notice thereof hereunder, and the Rights Agent shall be
fully protected and shall incur no liability for failing to take action in connection therewith
unless and until it has received such notice.

     Section 20. Merger or Consolidation or Change of Name of Rights Agent.

          (a) Any Person into which the Rights Agent or any successor Rights Agent may be merged or with
which it may be consolidated, or any Person resulting from any merger or consolidation to which the
Rights Agent or any successor Rights Agent shall be a party, or any Person succeeding to all or
substantially all the corporate trust or stock transfer or other shareholder services business of
the Rights Agent or any successor Rights Agent, shall be the successor to the Rights Agent under
this Agreement without the execution or filing of any paper or any further act on the part of any
of the parties hereto; provided, however, that such Person would be eligible for appointment as a
successor Rights Agent under the provisions of Section 22 hereof. In case at the time such
successor Rights Agent shall succeed to the agency created by this Agreement, any of the Rights
Certificates shall have been countersigned but not delivered,
any such successor Rights Agent may adopt the countersignature of a predecessor Rights Agent
and deliver such Rights Certificates so countersigned; and in case at that time any of the Rights
Certificates shall not have been countersigned, any successor Rights Agent may countersign such
Rights Certificates either in the name of the predecessor Rights Agent or in the name of the
successor Rights Agent; and in all such cases such Rights Certificates shall have the full force
provided in the Rights Certificates and in this Agreement.

          (b) In case at any time the name of the Rights Agent shall be changed and at such time any of
the Rights Certificates shall have been countersigned but not delivered, the Rights Agent may adopt
the countersignature under its prior name and deliver Rights Certificates so countersigned; and in
case at that time any of the Rights Certificates shall not have been countersigned, the Rights
Agent may countersign such Rights Certificates either in its prior name or in its changed name; and
in all such cases such Rights Certificates shall have the full force provided in the Rights
Certificates and in this Agreement.

     Section 21. Duties of Rights Agent. The Rights Agent undertakes to perform only the
duties and obligations expressly imposed by this Agreement upon the following terms and conditions,
and no implied duties or obligations shall be read into this Agreement against the Rights Agent, by
all of which the Company and the holders of Rights Certificates, by their acceptance thereof, shall
be bound:

          (a) The Rights Agent may consult with legal counsel of its selection (who may be legal counsel
for the Company or an employee of the Rights Agent), and the advice or opinion of such counsel
shall be full and complete authorization and protection to the Rights Agent as to any action taken,
suffered or omitted by it in accordance with such advice or opinion.

27

 

          (b) Whenever in the performance of its duties under this Agreement the Rights Agent shall deem
it necessary or desirable that any fact or matter (including, without limitation, the identity of
any Acquiring Person and the determination of Current Market Price) be proved or established by the
Company prior to taking or suffering any action hereunder, such fact or matter (unless other
evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively
proved and established by a certificate signed by the Chairman of the Board, the President, any
Vice President, the Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary of
the Company and delivered to the Rights Agent; and such certificate shall be full and complete
authorization and protection to the Rights Agent and the Rights Agent shall incur no liability for
or in respect of any action taken, suffered or omitted by it under the provisions of this Agreement
in reliance upon such certificate.

          (c) The Rights Agent shall be liable hereunder to the Company and any other Person only for
its own gross negligence, bad faith or willful misconduct (which gross negligence, willful
misconduct or bad faith must be determined by a final, non-appealable judgment of a court of
competent jurisdiction). Anything to the contrary notwithstanding, in no event shall the Rights
Agent be liable for special, punitive, indirect, consequential or incidental loss or damage of any
kind whatsoever (including but not limited to lost profits), even if the Rights Agent has been
advised of the likelihood of such loss or damage. Any liability of the Rights Agent under this
Rights Agreement will be limited to the amount of annual fees paid by the Company to the Rights
Agent hereunder

          (d) The Rights Agent shall not be liable for or by reason of any of the statements of fact or
recitals contained in this Agreement or in the Rights Certificates or be required to verify the
same (except as to its countersignature on such Rights Certificates), but all such statements and
recitals are and shall be deemed to have been made by the Company only.

          (e) The Rights Agent shall not have any liability for or be under any responsibility in
respect of the validity of this Agreement or the execution and delivery hereof (except the due
execution hereof by the Rights Agent) or in respect of the validity or execution of any Rights
Certificate (except its countersignature thereof); nor shall it be responsible for any breach by
the Company of any covenant or condition contained in this Agreement or in any Rights Certificate;
nor shall it be responsible for any change in the exercisability of the Rights (including the
Rights becoming null and void pursuant to Section 7(e) hereof) or any change or adjustment in the
terms of the Rights required under the provisions of Section 3, Section 11, Section 13 or Section
24 hereof or responsible for the manner, method or amount of any such change or adjustment or the
ascertaining of the existence of facts that would require any such change or adjustment (except
with respect to the exercise of Rights evidenced by Rights Certificates after actual notice
pursuant to Section 12, upon which the Rights Agent may rely, of any such adjustment); nor shall it
by any act hereunder be deemed to make any representation or warranty as to the authorization or
reservation of any Common Shares or Preferred Shares to be issued pursuant to this Agreement or any
Rights Certificate or as to whether any Common Shares or Preferred Shares will, when so issued, be
validly authorized and issued, fully paid and nonassessable; nor shall the Rights Agent be
responsible for the legality of the terms hereof in its capacity as an administrative agent.

28

 

          (f) The Company agrees that it will perform, execute, acknowledge and deliver or cause to be
performed, executed, acknowledged and delivered all such further and other acts, instruments and
assurances as may reasonably be required by the Rights Agent for the carrying out or performing by
the Rights Agent of the provisions of this Agreement.

          (g) The Rights Agent is hereby authorized and directed to accept instructions with respect to
the performance of its duties hereunder from the Chairman of the Board, the President, any Vice
President, the Secretary, any Assistant Secretary, the Treasurer or any Assistant Treasurer of the
Company, and to apply to such officers for advice or instructions in connection with its duties,
and such instructions shall be full authorization and protection to the Rights Agent and the Rights
Agent shall not be liable for any action taken, suffered or omitted to be taken by it in accordance
with instructions of any such officer or for any delay in acting while waiting for those
instructions. The Rights Agent shall be fully authorized and protected in relying upon the most
recent instructions received from any such officer. Any application by the Rights Agent for
written instructions from the Company may, at the option of the Rights Agent, set forth in writing
any action proposed to be taken, suffered or omitted by the Rights Agent under this Agreement and
the date on and/or after which such action shall be taken or suffered or such omission shall be
effective. The Rights Agent shall not be liable for any action taken or suffered by, or omission
of, the Rights Agent in accordance with a proposal included in such application on or after the
date specified in such application (which date shall not be less than three Business Days after but
not including the date any officer of the Company actually receives such application, unless any
such officer shall have consented in writing to any earlier date) unless prior to taking any such
action (or the effective date in the case of an omission), the
Rights Agent shall have received written instructions in response to such application
specifying the action to be taken, suffered or omitted.

          (h) The Rights Agent and any shareholder, affiliate, director, officer or employee of the
Rights Agent may buy, sell or deal in any of the Rights or other securities of the Company or
become pecuniarily interested in any transaction in which the Company may be interested, or
contract with or lend money to the Company or otherwise act as fully and freely as though the
Rights Agent were not Rights Agent under this Agreement. Nothing herein shall preclude the Rights
Agent or any such shareholder, affiliate, director, officer or employee from acting in any other
capacity for the Company or for any other Person.

          (i) The Rights Agent may execute and exercise any of the rights or powers hereby vested in it
or perform any duty hereunder either itself (through its directors, officers and employees) or by
or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for
any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the
Company or any other Person resulting from any such act, default, neglect or misconduct, absent
gross negligence, willful misconduct or bad faith in the selection and continued employment thereof
(which gross negligence, willful misconduct or bad faith must be determined by a final,
non-appealable judgment of a court of competent jurisdiction).

          (j) No provision of this Agreement shall require the Rights Agent to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of its duties hereunder
or in the exercise of its rights if it reasonably believes that repayment of such funds or adequate
indemnification against such risk or liability is not reasonably assured to it.

29

 

          (k) If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or
transfer, the certificate attached to the form of assignment or form of election to purchase, as
the case may be, has either not been completed or indicates an affirmative response to clause (1)
and/or (2) thereof, the Rights Agent shall not take any further action with respect to such
requested exercise or transfer without first consulting with the Company.

          (l) The Company agrees to give the Rights Agent prompt written notice of any event or
ownership which would prohibit the exercise or transfer of the Rights Certificates.

     Section 22. Change of Rights Agent. The Rights Agent or any successor Rights Agent
may resign and be discharged from its duties under this Agreement upon thirty (30) days’ notice in
writing mailed to the Company, and to each transfer agent of the Common Shares and Preferred Shares
known to the Rights Agent, by registered or certified mail, and to the holders of the Rights
Certificates by first-class mail. The Company may remove the Rights Agent or any successor Rights
Agent upon thirty (30) days’ notice in writing, mailed to the Rights Agent or successor Rights
Agent, as the case may be, and to each transfer agent of the Common Shares and Preferred Shares, by
registered or certified mail, and to the holders of the Rights Certificates by first-class mail. If
the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the
Company shall appoint a successor to the Rights Agent. If the Company shall fail to make such
appointment within a period of thirty (30) days after giving notice of such removal or after it has
been notified in writing of such resignation or incapacity by the resigning or incapacitated Rights
Agent or by
the holder of a Rights Certificate (who shall, with such notice, submit his Rights Certificate
for inspection by the Company), then the Rights Agent or any registered holder of any Rights
Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights
Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be
(a) a Person organized and doing business under the laws of the United States or of any State
thereof, in good standing, which is authorized under such laws to exercise corporate trust, stock
transfer or shareholder services powers and which has at the time of its appointment as Rights
Agent a combined capital and surplus of at least $50,000,000 or (b) an affiliate of a Person
described in clause (a) of this sentence. After appointment, the successor Rights Agent shall be
vested with the same powers, rights, immunities, duties and obligations as if it had been
originally named as Rights Agent without further act or deed; but the predecessor Rights Agent
shall deliver and transfer to the successor Rights Agent any property at the time held by it
hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the
purpose. Not later than the effective date of any such appointment, the Company shall file notice
thereof in writing with the predecessor Rights Agent and each transfer agent of the Common Shares
and the Preferred Shares, and, if such appointment occurs after the Distribution Date, mail a
notice thereof in writing to the registered holders of the Rights Certificates. Failure to give any
notice provided for in this Section 22, however, or any defect therein, shall not affect the
legality or validity of the resignation or removal of the Rights Agent or the appointment of the
successor Rights Agent, as the case may be.

     Section 23. Issuance of New Rights Certificates. Notwithstanding any of the
provisions of this Agreement or of the Rights to the contrary, the Company may, at its option,
issue new Rights Certificates evidencing Rights in such form as may be approved by the Board to
reflect any adjustment or change in the Purchase Price and the number or kind or class of

30

 

shares or
other securities or property purchasable under the Rights Certificates made in accordance with the
provisions of this Agreement. In addition, in connection with the issuance or sale of Common Shares
following the Distribution Date and prior to the redemption or expiration of the Rights, the
Company (a) shall, with respect to Common Shares so issued or sold pursuant to the exercise of
stock options or under any employee plan or arrangement, granted or awarded as of the Distribution
Date, or upon the exercise, conversion or exchange of securities hereinafter issued by the Company,
and (b) may, in any other case, if deemed necessary or appropriate by the Board, issue Rights
Certificates representing the appropriate number of Rights in connection with such issuance or
sale; provided, however, that (i) no such Rights Certificate shall be issued if, and to the extent
that, the Company shall be advised by counsel that such issuance would create a significant risk of
material adverse tax consequences to the Company or the Person to whom such Rights Certificate
would be issued, and (ii) no such Rights Certificate shall be issued if, and to the extent that,
appropriate adjustment shall otherwise have been made in lieu of the issuance thereof.

     Section 24. Redemption and Termination.

          (a) The Board may, at its option, at any time prior to the earlier of (i) the Close of
Business on the tenth Business Day following the Share Acquisition Date (or, if the Share
Acquisition Date shall have occurred prior to the Record Date, the Close of Business on
the tenth Business Day following the Record Date), or (ii) the Final Expiration Date, redeem
all but not less than all of the then outstanding Rights at a redemption price of $.01 per Right,
as such amount may be appropriately adjusted to reflect any stock split, stock dividend or similar
transaction occurring after the date hereof (such redemption price being hereinafter referred to as
the “Redemption Price”). Notwithstanding anything contained in this Agreement to the contrary, the
Rights shall not be exercisable after the first occurrence of a Flip-In Event until such time as
the Company’s right of redemption hereunder has expired. The Company may, at its option, pay the
Redemption Price in cash, Common Shares (based on the Current Market Price, as defined in Section
11(d)(i) hereof, of the Common Shares at the time of redemption) or any other form of consideration
deemed appropriate by the Board.

          (b) Immediately upon the action of the Board ordering the redemption of the Rights, evidence
of which shall have been filed with the Rights Agent and without any further action and without any
notice, the right to exercise the Rights will terminate and the only right thereafter of the
holders of Rights shall be to receive the Redemption Price for each Right so held. Promptly after
the action of the Board ordering the redemption of the Rights, the Company shall give notice of
such redemption to the Rights Agent and the holders of the then outstanding Rights by mailing such
notice to all such holders at each holder’s last address as it appears upon the registry books of
the Rights Agent or, prior to the Distribution Date, on the registry books of the transfer agent
for the Common Shares. Any notice which is mailed in the manner herein provided shall be deemed
given, whether or not the holder receives the notice. Each such notice of redemption will state the
method by which the payment of the Redemption Price will be made.

          (c) Notwithstanding the provisions of Section 24(a) hereof, in the event that a majority of
the Board is elected by shareholder action by written consent, or is comprised of persons elected
at a meeting of shareholders who were not nominated or recommended by the

31

 

Board in office
immediately prior to such meeting, then for a period of one hundred and eighty (180) days following
the effectiveness of such election the Rights shall not be redeemed if such redemption is
reasonably likely to have the purpose or effect of allowing any Person to become an Acquiring
Person or otherwise facilitating the occurrence of a Triggering Event or a transaction with an
Acquiring Person.

     Section 25. Notice of Certain Events.

          (a) In case the Company shall propose, at any time after the Distribution Date, (i) to pay any
dividend payable in shares of any class to the holders of Preferred Shares or to make any other
distribution to the holders of Preferred Shares (other than a regular quarterly cash dividend out
of earnings or retained earnings of the Company), or (ii) to offer to the holders of Preferred
Shares rights or warrants to subscribe for or to purchase any additional Preferred Shares or shares
of any class or any other securities, rights or options, or (iii) to effect any reclassification of
its Preferred Shares (other than a reclassification involving only the subdivision of outstanding
Preferred Shares), or (iv) to effect any consolidation or merger into or with any other Person
(other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof),
or to effect any sale or other transfer (or to permit one or more of its Subsidiaries to effect any
sale or other transfer), in one transaction or a series of related
transactions, of more than fifty percent (50%) of the assets, cash flow or earning power of
the Company and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the
Company and/or any of its Subsidiaries in one or more transactions each of which complies with
Section 11(o) hereof), or (v) to effect the liquidation, dissolution or winding up of the Company,
then, in each such case, the Company shall give to each holder of a Rights Certificate and to the
Rights Agent, to the extent feasible and in accordance with Section 26 hereof, a notice of such
proposed action, which shall specify the record date for the purposes of such stock dividend,
distribution of rights or warrants, or the date on which such reclassification, consolidation,
merger, sale, transfer, liquidation, dissolution, or winding up is to take place and the date of
participation therein by the holders of the Preferred Shares, if any such date is to be fixed, and
such notice shall be so given in the case of any action covered by clause (i) or (ii) above at
least twenty (20) days prior to the record date for determining holders of the Preferred Shares for
purposes of such action, and in the case of any such other action, at least twenty (20) days prior
to the date of the taking of such proposed action or the date of participation therein by the
holders of the Preferred Shares whichever shall be the earlier.

          (b) If any Flip-In Event shall occur, then (i) the Company shall as soon as practicable
thereafter give to the Rights Agent and, to the extent feasible, to each holder of a Rights
Certificate, in accordance with Section 26 hereof, a notice of the occurrence of such event, which
shall specify the event and the consequences of the event to holders of Rights under Section
11(a)(ii) hereof, and (ii) all references in the preceding paragraph to Preferred Shares shall be
deemed thereafter to refer to Common Shares and/or, if appropriate, other securities.

     Section 26. Notices. Notices or demands authorized by this Agreement to be given or
made by the Rights Agent or by the holder of any Rights Certificate to or on the Company shall be
sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another
address is filed in writing with the Rights Agent) as follows:

32

 

R. G. Barry Corporation

13405 Yarmouth Road, N.W.

Pickerington, Ohio 43147

Attention: Corporate Secretary

Subject to the provisions of Section 22, any notice or demand authorized by this Agreement to be
given or made by the Company or by the holder of any Rights Certificate to or on the Rights Agent
shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until
another address is filed in writing by the Rights Agent with the Company) as follows:

The Bank of New York Mellon

c/o Mellon Investor Services LLC

BNY Mellon Shareowner Services

300 Galleria Parkway — Suite 1020

Atlanta, Georgia 30339

Attention: Relationship Manager

with a copy to:

Mellon Investor Services LLC

Newport Office Center VII

480 Washington Boulevard

Jersey City, New Jersey 07310

Attention: General Counsel

Notices or demands authorized by this Agreement to be given or made by the Company or the Rights
Agent to the holder of any Rights Certificate (or, if prior to the Distribution Date, to the holder
of certificates representing Common Shares) shall be sufficiently given or made if sent by
first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown
on the registry books of the Company.

     Section 27. Supplements and Amendments. Prior to the Distribution Date, the Company
and the Rights Agent shall, if the Company so directs, supplement or amend any provision of this
Agreement without the approval of any holders of certificates representing Common Shares. From and
after the Distribution Date, the Company and the Rights Agent shall, if the Company so directs,
supplement or amend this Agreement without the approval of any holders of Rights Certificates in
order (i) to cure any ambiguity, (ii) to correct or supplement any provision contained herein which
may be defective or inconsistent with any other provisions herein, (iii) to shorten or lengthen any
time period hereunder, or (iv) to change or supplement the provisions hereunder in any manner which
the Company may deem necessary or desirable and which shall not adversely affect the interests of
the holders of Rights Certificates (other than an Acquiring Person or an Affiliate or Associate of
an Acquiring Person); provided, from and after the Distribution Date, this Agreement may not be
supplemented or amended to lengthen pursuant to clause (iii) of this sentence any time period
hereunder, unless such lengthening is for the purpose of protecting, enhancing or clarifying the
rights of, and/or the benefits to, the holders of Rights, any such supplement or amendment to be
evidenced by a writing signed by the Company and the Rights
Agent. Upon the delivery of a certificate from an appropriate officer of the

33

 

Company, which
states that the proposed supplement or amendment, is in compliance with the terms of this Section
27, the Rights Agent shall execute such supplement or amendment. Notwithstanding any other
provision hereof, the Rights Agent’s consent must be obtained regarding any amendment or supplement
which alters the Rights Agent’s rights, immunities, duties and obligations under this Agreement,
and the Rights Agent may, but shall not be obligated to, enter into any such amendment or
supplement. Notwithstanding anything contained herein to the contrary, this Agreement may not be
amended at a time when the Rights are not redeemable. Prior to the Distribution Date, the interests
of the holders of Rights shall be deemed coincident with the interests of the holders of Common
Shares.

     Section 28. Successors. All the covenants and provisions of this Agreement by or for
the benefit of the Company or the Rights Agent shall bind and inure to the benefit of their
respective successors and assigns hereunder.

     Section 29. Determinations and Actions by the Board of Directors, etc. For all
purposes of this Agreement, any calculation of the number of Common Shares outstanding at any
particular time, including for purposes of determining the particular percentage of such
outstanding Common Shares of which any Person is the Beneficial Owner, shall be made in accordance
with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and Regulations under the
Exchange Act. The Board shall have the exclusive power and authority to administer this Agreement
and to exercise all rights and powers specifically granted to the Board or to the Company, or as
may be necessary or advisable in the administration of this Agreement, including, without
limitation, the right and power to (i) interpret the provisions of this Agreement, and (ii) make
all determinations deemed necessary or advisable for the administration of this Agreement
(including a determination to redeem or not redeem the Rights or to amend the Agreement). All such
actions, calculations, interpretations and determinations (including, for purposes of clause (y)
below, all omissions with respect to the foregoing) which are done or made by the Board in good
faith, shall (x) be final, conclusive and binding on the Company, the Rights Agent, the holders of
the Rights and all other parties, and (y) not subject the Board to any liability to the holders of
the Rights. The Rights Agent is entitled always to assume the Company’s Board acted in good faith
and shall be fully protected and incur no liability in reliance thereon.

     Section 30. Benefits of this Agreement. Nothing in this Agreement shall be construed
to give to any Person other than the Company, the Rights Agent and the registered holders of the
Rights Certificates (and, prior to the Distribution Date, registered holders of the Common Shares)
any legal or equitable right, remedy or claim under this Agreement; but this Agreement shall be for
the sole and exclusive benefit of the Company, the Rights Agent and the registered holders of the
Rights Certificates (and, prior to the Distribution Date, registered holders of the Common Shares).

     Section 31. Severability. If any term, provision, covenant or restriction of this
Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no
way be affected, impaired or invalidated; provided, however, that notwithstanding anything in
this Agreement to the contrary, if any such term, provision, covenant or restriction is held by
such court or authority to be

34

 

invalid, void or unenforceable and the Board determines in its good
faith judgment that severing the invalid language from this Agreement would adversely affect the
purpose or effect of this Agreement, the right of redemption set forth in Section 24 hereof shall
be reinstated and shall not expire until the Close of Business on the tenth day following the date
of such determination by the Board; provided further, however, that if such excluded provision
shall affect the rights, immunities, duties and obligations of the Rights Agent, the Rights Agent
shall be entitled to resign immediately.

     Section 32. Governing Law. This Agreement, each Right and each Rights Certificate
issued hereunder shall be deemed to be a contract made under the laws of the State of Ohio and for
all purposes shall be governed by and construed in accordance with the laws of such State
applicable to contracts made and to be performed entirely within such State; provided, however,
that all provisions regarding the rights, immunities, duties and obligations of the Rights Agent
shall be governed by and construed in accordance with the laws of the State of New York applicable
to contracts made to be performed entirely within such State.

     Section 33. Counterparts. This Agreement may be executed in any number of
counterparts and by facsimile and electronic transmission and each of such counterparts shall for
all purposes be deemed to be an original, and all such counterparts shall together constitute but
one and the same instrument.

     Section 34. Descriptive Headings. Descriptive headings of the several Sections of
this Agreement are inserted for convenience only and shall not control or affect the meaning or
construction of any of the provisions hereof.

     Section 35. Force Majeure. Notwithstanding anything to the contrary contained herein,
the Rights Agent shall not be liable for any delays or failures in performance resulting from acts
beyond its reasonable control including, without limitation, acts of God, terrorist acts, shortage
of supply, breakdowns or malfunctions, interruptions or malfunctions of computer facilities, or
loss of data due to power failures or mechanical difficulties with information storage or retrieval
systems, labor difficulties, war or civil unrest.

[Remainder of page intentionally blank. Signatures follow.]

35

 

     IN WITNESS WHEREOF, the parties hereto have caused this Rights Agreement to be duly executed,
all as of the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	Attest:	 	 	 	R. G. BARRY CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By: 

Name:

	 	/s/ Jose Ibarra
 

Jose Ibarra
	 	 	 	By:

Name:
	 	/s/ Greg Tunney
 

Greg Tunney
	 	 
	Title:

	 	Senior Vice President-Finance
	 	 	 	Title:
	 	President and	 	 
	 

	 	Chief Financial Officer and Secretary
	 	 	 	 	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Attest:	 	 	 	THE BANK OF NEW YORK MELLON,

as Rights Agent	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Rita A. Swartz	 	 	 	By:	 	/s/ Mitzi Brinkman 	 	 
	Name:

	 	 

Rita A. Swartz	 	 	 	Name:
	 	 
Mitzi Brinkman
	 	 
	Title:

	 	Relationship Manager	 	 	 	Title:	 	Relationship Manager 	 	 

36

 

Exhibit A

FORM OF CERTIFICATE OF AMENDMENT

TO THE ARTICLES OF INCORPORATION OF

R. G. BARRY CORPORATION AUTHORIZING THE

SERIES II JUNIOR PARTICIPATING CLASS A PREFERRED SHARES

     RESOLVED, that pursuant to the authority vested in the Board of Directors by Article FOURTH,
Section II of the Articles of Incorporation of R. G. Barry Corporation (the “Company”), Article
FOURTH of the Articles of Incorporation of the Company be, and the same hereby is, amended to add a
new Article FOURTH, Section X to fix the division of 225,000 shares of the existing authorized and
unissued Class A Preferred Shares, par value $1.00 per share, into a series designated as “Series
II Junior Participating Class A Preferred Shares” the express terms of which are as follows:

     X. Series II Junior Participating Class A Preferred Shares.

     A. Designation of Series. The series shall be designated “Series II Junior
Participating Class A Preferred Shares,” par value $1.00 per share (hereinafter called “Series II
Class A Preferred Shares”).

     B. Number of Shares. The authorized number of shares of Series II Class A Preferred
Shares is 225,000, which number the Board of Directors may increase or decrease to the extent
appropriate in connection with the terms under which such Series II Class A Preferred Shares (or
options or rights related thereto) are issued; provided, that no decrease shall reduce the number
of Series II Class A Preferred Shares to a number less than that of the shares then outstanding
plus the number of shares issuable upon exercise of outstanding rights, options or warrants or upon
conversion of outstanding securities issued by the Company.

     C. Dividend Payment Dates. The dates on which dividends on shares of the Series II
Class A Preferred Shares shall be payable are the fifteenth day of March, June, September and
December of each year (each such date being referred to herein as a “Quarterly Dividend Payment
Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share
or fraction of a share of Series II Class A Preferred Shares.

     D. Dividend Rate. The dividend rate for the Series II Class A Preferred Shares shall
be, subject to the provision for adjustment hereinafter set forth, one hundred (100) times the
aggregate per share amount (payable in kind) of all non-cash dividends or other distributions
(other than a dividend payable in Common Shares (by reclassification or otherwise)), declared on
the Common Shares, par value $1.00 per share, of the Company since the immediately preceding
Quarterly Dividend Payment Date or, with respect to the first Quarterly Dividend Payment Date,
since the first issuance of any share or fraction of a share of Series II Class A Preferred Shares.
In the event the Company shall at any time after May 1, 2009 (i) declare or pay any dividend on
its Common Shares payable in Common Shares, (ii) subdivide the outstanding Common Shares or (iii)
combine the outstanding Common Shares into a smaller number of shares, then in each such case, the
amount to which holders of shares of Series II Class A Preferred Shares were entitled immediately
prior to such event under this Paragraph shall be adjusted by multiplying

37

 

such amount by a fraction the numerator of which is the number of Common Shares outstanding
immediately after such event and the denominator of which is the number of Common Shares that were
outstanding immediately prior to such event.

     Subject to the prior and superior rights of the holders of any preferred shares ranking prior
and superior to the Series II Class A Preferred Shares with respect to dividends, the Company shall
declare a dividend or distribution on the Series II Class A Preferred Shares as provided in the
immediately preceding subparagraph after it declares a dividend or distribution on the Common
Shares (other than a dividend payable in Common Shares); provided that, in the event no dividend or
distribution shall have been declared on the Common Shares during the period between any Quarterly
Dividend Payment Date and the next subsequent Quarterly Dividend Payment Date, a dividend of $0.50
per share on the Series II Class A Preferred Shares shall nevertheless be payable on such
subsequent Quarterly Dividend Payment Date.

     E. Cumulative Dates. Dividends shall begin to accrue and be cumulative on outstanding
shares of Series II Class A Preferred Shares from the Quarterly Dividend Payment Date next
preceding the date of issue of such Series II Class A Preferred Shares, unless the date of issue of
such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which
case dividends on such shares shall begin to accrue from the date of issue of such shares, or
unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date
for the determination of holders of shares of Series II Class A Preferred Shares entitled to
receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either of which
events such dividends shall begin to accrue and be cumulative from such Quarterly Dividend Payment
Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on the Series II Class
A Preferred Shares in an amount less than the total amount of such dividends at the time accrued
and payable on such shares shall be allocated pro rata on a share-by-share basis among all such
shares at the time outstanding. The Board of Directors may fix a record date for the determination
of holders of shares of Series II Class A Preferred Shares entitled to receive payment of a
dividend or distribution declared thereon, which record date shall be no more than 45 days prior to
the date fixed for the payment thereof.

     F. Voting Rights. The holders of shares of Series II Class A Preferred Shares shall
have the voting rights set forth in Article FOURTH of the Articles of Incorporation and as may
otherwise be required by law.

     G. Reacquired Shares. Any Series II Class A Preferred Shares purchased or otherwise
acquired by the Company in any manner whatsoever shall be retired and cancelled promptly after the
acquisition thereof. All such shares shall upon their cancellation become authorized but unissued
Class A Preferred Shares and may be reissued as part of a new series of Class A Preferred Shares to
be created by resolution or resolutions of the Board of Directors, subject to the conditions and
restrictions on issuance set forth herein.

     H. Liquidation, Dissolution or Winding Up.

          (1) Upon any liquidation (voluntary or otherwise), dissolution or winding up of the Company,
no distribution shall be made to the holders of shares ranking junior (either as to dividends or
upon liquidation, dissolution or winding up) to the Series II Class A Preferred

38

 

Shares unless, prior thereto, the holders of shares of Series II Class A Preferred Shares
shall have received $100 per share, plus an amount equal to accrued and unpaid dividends and
distributions thereon, whether or not declared, to the date of such payment (the “Series II Class A
Liquidation Preference”). Following the payment of the full amount of the Series II Class A
Liquidation Preference, no additional distributions shall be made to the holders of shares of
Series II Class A Preferred Shares unless, prior thereto, the holders of (Common Shares shall have
received an amount per share (the “Common Adjustment”) equal to the quotient obtained by dividing
(i) the Series II Class A Liquidation Preference by (ii) one hundred (100) (as appropriately
adjusted as set forth in subparagraph 3 below to reflect such events as stock splits, stock
dividends and recapitalizations with respect to the Common Shares) (such number in clause (ii), the
“Adjustment Number”). Following the payment of the full amount of the Series II Class A
Liquidation Preference and the Common Adjustment in respect of all outstanding shares of Series II
Class A Preferred Shares and Common Shares, respectively, holders of Series II Class A Preferred
Shares and holders of Common Shares shall receive their ratable and proportionate share of the
remaining assets to be distributed in the ratio of the Adjustment Number to 1 with respect to such
Series II Class A Preferred Shares and Common Shares, on a per share basis, respectively.

          (2) In the event, however, that there are not sufficient assets available to permit payment in
full of the Series II Class A Liquidation Preference and the liquidation preferences of all other
series of preferred stock, if any, which rank on a parity with the Series II Class A Preferred
Shares, then such remaining assets shall be distributed ratably to the holders of such parity
shares in proportion to their respective liquidation preferences. In the event, however, that
there are not sufficient assets available to permit payment in full of the Common Adjustment, then
such remaining assets shall be distributed ratably to the holders of Common Shares.

          (3) In the event the Company shall at any time after May 1, 2009 (i) declare any dividend on
Common Stock payable in Common Shares, (ii) subdivide the outstanding Common Shares, or (iii)
combine the outstanding Common Shares into a smaller number of shares, then in each such case the
Adjustment Number in effect immediately prior to such event shall be adjusted by multiplying such
Adjustment Number by a fraction the numerator of which is the number of Common Shares outstanding
immediately after such event and the denominator of which is the number of Common Shares that were
outstanding immediately prior to such event.

     I. Consolidation, Merger, etc. In case the Company shall enter into any
consolidation, merger, combination or other transaction in which the shares of Common Shares are
exchanged for or changed into other stock or securities, cash and/or any other property, then in
any such case the shares of Series II Class A Preferred Shares shall at the same time be similarly
exchanged or changed in an amount per share (subject to the provision for adjustment hereinafter
set forth) equal to one hundred (100) times the aggregate amount of stock, securities, cash and/or
any other property (payable in kind), as the case may be, into which or for which each Common Share
is changed or exchanged. In the event the Company shall at any time after May 1, 2009 (i) declare
any dividend on Common Shares payable in Common Shares, (ii) subdivide the outstanding Common
Shares, or (iii) combine the outstanding Common Shares into a smaller number of shares, then in
each such case the amount set forth in the preceding

39

 

sentence with respect to the exchange or change of shares of Series II Class A Preferred
Shares shall be adjusted by multiplying such amount by a fraction the numerator of which is the
number of Common Shares outstanding immediately after such event and the denominator of which is
the number of Common Shares that were outstanding immediately prior to such event.

     J. No Redemption. The Series II Class A Preferred Shares shall not be redeemable.

     K. Ranking. The Series II Class A Preferred Shares shall rank junior to all other
series of the Company’s Class A or Class B Preferred Shares as to the payment of dividends and the
distribution of assets, unless the terms of any such series shall provide otherwise.

     L. Amendment. So long as any Series II Class A Preferred Shares are outstanding, the
Articles of Incorporation of the Company shall not be further amended in any manner which would
materially alter or change the powers, preferences or special rights of the Series II Class A
Preferred Shares so as to affect them adversely without the affirmative vote of the holders of a
majority or more of the outstanding shares of Series II Class A Preferred Shares, voting separately
as a class.

     M. Fractional Shares. Series II Class A Preferred Shares may be issued in fractions
of a share which shall entitle the holder, in proportion to such holder’s fractional shares, to
exercise voting rights, receive dividends, participate in distributions and to have the benefit of
all other rights of holders of Series II Class A Preferred Shares.

40

 

Exhibit B

[Form of Rights Certificate]

Certificate No. R-                     Rights

NOT EXERCISABLE AFTER MAY 1, 2014 OR EARLIER IF REDEEMED BY THE COMPANY, THE RIGHTS ARE SUBJECT TO
REDEMPTION, AT THE OPTION OF THE COMPANY, AT $.01 PER RIGHT ON THE TERMS SET FORTH IN THE RIGHTS
AGREEMENT. UNDER CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON (AS SUCH
TERM IS DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL
AND VOID. [THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A
PERSON WHO WAS OR BECAME AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON
(AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE
RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e)
OF SUCH AGREEMENT.](1)

Rights Certificate

R. G. BARRY CORPORATION

     This certifies that                                                             , or
                                                             registered assigns, is the registered owner of the number
of Rights set forth above, each of which entitles the owner thereof, subject to the terms,
provisions and conditions of the Rights Agreement, dated as of                     , 2009, (the “Rights
Agreement”), between R. G. Barry Corporation, an Ohio corporation (the “Company”), and The Bank of
New York Mellon, a New York banking corporation (the “Rights Agent”), to purchase from the Company
at any time prior to 5:00 P.M. (New York City time) on                     , 2014 at the office or offices of
the Rights Agent designated for such purpose, or its successors as Rights Agent, one one-hundredth
of a fully paid, non-assessable Series II Junior Participating Class A Preferred Share (the
“Preferred Shares”) of the Company, at a purchase price of $25.00 per one one-hundredth of a share
(the “Purchase Price”), upon presentation and surrender of this Rights Certificate with the Form of
Election to Purchase and related Certificate duly executed. The number of Rights evidenced by this
Rights Certificate (and the number of shares which may be purchased upon exercise thereof) set
forth above, and the Purchase Price per share set forth above, are the number and Purchase Price as
of                     , 2009, based on the Preferred Shares as constituted at such date. The Company
reserves the right to require prior to the occurrence of a Triggering Event (as such term is
defined in the Rights Agreement) that a number of Rights be exercised so that only whole Preferred
Shares will be issued.

 

			
	(1)	 	The portion of the legend in brackets shall be inserted only if applicable and shall replace
the preceding sentence.

41

 

     Upon the occurrence of a Flip-In Event (as such term is defined in the Rights Agreement), if
the Rights evidenced by this Rights Certificate are beneficially owned by (i) an Acquiring Person
or an Affiliate or Associate of any such Acquiring Person (as such terms are defined in the Rights
Agreement), (ii) a transferee of any such Acquiring Person, Associate or Affiliate, or (iii) under
certain circumstances specified in the Rights Agreement, a transferee of a person who, after such
transfer, became an Acquiring Person, or an Affiliate or Associate of an Acquiring Person, such
Rights shall become null and void and no holder hereof shall have any right with respect to such
Rights from and after the occurrence of such Flip-In Event.

     As provided in the Rights Agreement, the Purchase Price and the number and kind of Preferred
Shares or other securities, which may be purchased upon the exercise of the Rights evidenced by
this Rights Certificate are subject to modification and adjustment upon the happening of certain
events, including Triggering Events.

     This Rights Certificate is subject to all of the terms, provisions and conditions of the
Rights Agreement, which terms, provisions and conditions are hereby incorporated herein by
reference and made a part hereof and to which Rights Agreement reference is hereby made for a full
description of the rights limitations of rights, obligations, duties and immunities hereunder of
the Rights Agent, the Company and the holders of the Rights Certificates, which limitations of
rights include the temporary suspension of the exercisability of such Rights under the specific
circumstances set forth in the Rights Agreement. Copies of the Rights Agreement are on file at the
above-mentioned office of the Rights Agent and are also available upon written request to the
Rights Agent.

     This Rights Certificate, with or without other Rights Certificates, upon surrender at the
office or offices of the Rights Agent designated for such purpose, may be exchanged for another
Rights Certificate or Rights Certificates of like tenor and date evidencing Rights entitling the
holder to purchase a like aggregate number of one-tenths of a Preferred Share as the Rights
evidenced by the Rights Certificate or Rights Certificates surrendered shall have entitled such
holder to purchase. If this Rights Certificate shall be exercised in part, the holder shall be
entitled to receive upon surrender hereof another Rights Certificate or Rights Certificates for the
number of whole Rights not exercised.

     Subject to the provisions of the Rights Agreement, the Rights evidenced by this Certificate
may be redeemed by the Company at its option at a redemption price of $.0l per Right at any time
prior to the earlier of the Close of Business on (i) the tenth Business Day following the Share
Acquisition Date (as such time period may be extended pursuant to the Rights Agreement), and (ii)
the Final Expiration Date. The foregoing notwithstanding, the Rights generally may not be redeemed
for one hundred eighty (180) days following a change in a majority of the Board as a result of a
proxy contest.

     No fractional Preferred Shares will be issued upon the exercise of any Right or Rights
evidenced hereby (other than, except as set forth in the Rights Agreement, fractions which are
integral multiples of one one-hundredths of a Preferred Share, which may, at the election of the
Company, be evidenced by depositary receipts), but in lieu thereof a cash payment will be made, as
provided in the Rights Agreement.

42

 

     No holder of this Rights Certificate shall be entitled to vote or receive dividends or be
deemed for any purpose the holder of Preferred Shares or of any other securities of the Company
which may at any time be issuable on the exercise hereof, nor shall anything contained in the
Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the
rights of a shareholder of the Company or any right to vote for the election of directors or upon
any matter submitted to shareholders at any meeting thereof, or to give or withhold consent to any
corporate action, or, to receive notice of meetings or other actions affecting shareholders (except
as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise,
until the Right or Rights evidenced by this Rights Certificate shall have been exercised as
provided in the Rights Agreement.

     This Rights Certificate shall not be valid or obligatory for any purpose until it shall have
been countersigned by the Rights Agent.

     WITNESS the facsimile signature of the proper officers of the Company and its corporate seal.

Dated as of                           , 2009

ATTEST: R. G. BARRY CORPORATION

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Secretary	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Countersigned:	 	 	 	 	 	 	 	 
	 
	[BANK]	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Authorized Signatory	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date of Countersignature:	 	 	 	 	 	 	 	 

43

 

[Form of Reverse Side of Rights Certificate]

FORM OF ASSIGNMENT

(To be executed by the registered holder if such holder desires to transfer the Rights Certificate.)

			
	FOR VALUE RECEIVED	 	
 

			
	hereby sells, assigns and transfers unto	 	
 

 

(Please print name and address of transferee)

 

this Rights Certificate, together with all right, title and interest therein, and does hereby
irrevocably constitute and appoint                                          Attorney, to transfer the within Rights
Certificate on the books of the within-named Company, with full power of substitution.

Dated:                                         , 20     

    
                                                   
                
         

Signature

Signature Guaranteed:

     Signatures must be guaranteed by a participant in the Securities Transfer Agent Medallion
Program, the Stock Exchanges Medallion Program or the New York Stock Exchange, Inc. Medallion
Signature Program.

Certificate

     The undersigned hereby certifies by checking the appropriate boxes that:

     (1) this Rights Certificate [ ] is [ ] is not being sold, assigned and transferred by or on
behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of any such
Acquiring Person (as such terms are defined pursuant to the Rights Agreement);

     (2) after due inquiry and to the best knowledge of the undersigned, it [ ] did [ ] did not
acquire the Rights evidenced by this Rights Certificate from any Person who is, was or subsequently
became an Acquiring Person or an Affiliate or Associate of an Acquiring Person.

	 	 	 	 	 	 	 
	Dated:                     , 20     
	 	 	 	 	 	 
	 

	 	 	 	 

Signature
	 	 

Signature Guaranteed:

     Signatures must be guaranteed by a participant in the Securities Transfer Agent Medallion
Program, the Stock Exchanges Medallion Program or the New York Stock Exchange, Inc. Medallion
Signature Program.

44

 

NOTICE

     The signature to the foregoing Assignment and Certificate must correspond to the name as
written upon the face of this Rights Certificate in every particular, without alteration or
enlargement or any change whatsoever.

FORM OF ELECTION TO PURCHASE

(To be executed if holder desires to exercise Rights represented by the Rights Certificate.)

     To: R. G. BARRY CORPORATION:

     The undersigned hereby irrevocably elects to exercise                      Rights represented by this
Rights Certificate to purchase the Preferred Shares issuable upon the exercise of the Rights (or
such other securities of the Company or of any other person which may be issuable upon the exercise
of the Rights) and requests that certificates for such shares be issued in the name of and
delivered to:

Please insert social security

or other identifying number

 

(Please print name and address)

 

     If such number of Rights shall not be all the Rights evidenced by this Rights Certificate, a
new Rights Certificate for the balance of such Rights shall be registered in the name of and
delivered to:

Please insert social security

or other identifying number

 

(Please print name and address)

Dated:                     , 20     

                                                            
Signature

Signature Guaranteed:

     Signatures must be guaranteed by a participant in the Securities Transfer Agent Medallion
Program, the Stock Exchanges Medallion Program or the New York Stock Exchange, Inc. Medallion
Signature Program.

45

 

Certificate

     The undersigned hereby certifies by checking the appropriate boxes that:

     (1) the Rights evidenced by this Rights Certificate [     ] are [     ] are not being exercised by or
on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of any such
Acquiring Person (as such terms are defined pursuant to the Rights Agreement);

     (2) after due inquiry and to the best knowledge of the undersigned, it [     ] did [     ] did not
acquire the Rights evidenced by this Rights Certificate from any Person who is, was or became an
Acquiring Person or an Affiliate or Associate of an Acquiring Person.

	 	 	 	 	 	 	 
	Dated:                     , 20     
	 	 	 	 	 	 
	 

	 	 	 	 

Signature
	 	 

Signature Guaranteed:

NOTICE

     The signature to the foregoing Election to Purchase and Certificate must correspond to the
name as written upon the face of this Rights Certificate in every particular, without alteration or
enlargement or any change whatsoever.

46

 

Exhibit C

SUMMARY OF RIGHTS TO PURCHASE PREFERRED SHARES

     On May 1, 2009, the Board of Directors of R. G. Barry Corporation (the “Company”) declared a
dividend distribution of one Right for each outstanding Common Share of the Company to shareholders
of record at the close of business on May 15, 2009. Each Right entitles the registered holder to
purchase from the Company a unit consisting of one one-hundredth (1/100) of a share (a “Unit”) of
Series II Junior Participating Class A Preferred Shares, par value $1.00 per share (the “Preferred
Shares”) at a Purchase Price of $25.00 per Unit, subject to adjustment. The description and terms
of the Rights are set forth in a Rights Agreement (the “Rights Agreement”) between the Company and
The Bank of New York Mellon, as Rights Agent.

     Initially, the Rights will be attached to all certificates representing Common Shares then
outstanding (or, in the case of uncertificated Common Shares, by the book-entry account that
evidences record ownership of such shares), and no separate Rights Certificates will be
distributed. The Rights will separate from the Common Shares and a Distribution Date will occur
upon the earlier of (i) 10 business days following a public announcement that a person or group of
affiliated or associated persons, has acquired, or obtained the right to acquire, beneficial
ownership of 15% or more of the outstanding Common Shares (the
“Share Acquisition Date”), other
than as a result of repurchases of stock by Company or certain inadvertent actions by institutional
or certain other shareholders, or (ii) 10 business days (or such later date as the Board shall
determine) following the commencement of a tender offer or exchange offer that would result in a
person or group beneficially owning 15% or more of such outstanding Common Shares. Until the
Distribution Date, (i) the Rights will be evidenced by the Common Share certificates and will be
transferred with and only with such Common Share certificates, (ii) new Common Share certificates
issued after the Record Date will contain a notation incorporating the Rights Agreement by
reference and (iii) the surrender for transfer of any certificates for Common Shares outstanding
will also constitute the transfer of the Rights associated with the Common Shares represented by
such certificate.

     The Rights are not exercisable until the Distribution Date and will expire at the close of
business on May 1, 2014, unless earlier redeemed or exchanged by the Company as described below.

     As soon as practicable after the Distribution Date, Rights Certificates will be mailed to
holders of record of the Common Shares as of the close of business on the Distribution Date and,
thereafter, the separate Rights Certificates alone will represent the Rights. Except as otherwise
determined by the Board of Directors, only shares of Common Shares issued prior to the Distribution
Date will be issued with Rights.

     In the event that a Person becomes the beneficial owner of 15% or more of the then outstanding
Common Shares, each holder of a Right will thereafter have the right to receive, upon exercise,
Common Shares (or, in certain circumstances, cash, property or other securities of the Company)
having a value equal to two times the exercise price of the Right. Notwithstanding any of the
foregoing, following the occurrence of the event set forth in this

47

 

paragraph, all Rights that are, or (under certain circumstances specified in the Rights
Agreement) were, beneficially owned by any Acquiring Person will be null and void. However, Rights
are not exercisable following the occurrence of the event set forth above until such time as the
Rights are no longer redeemable by the Company as set forth below.

     For example, at an exercise price of $25.00 per Right, each Right not owned by an Acquiring
Person (or by certain related parties) following an event set forth in the preceding paragraph
would entitle its holder to purchase $50.00 worth of Common Shares (or other consideration, as
noted above) for $25.00. Assuming that the Common Shares had a per share value of $12.50 at such
time, the holder of each valid Right would be entitled to purchase four Common Shares for $25.00.

     In the event that, at any time following the Share Acquisition Date, (i) the Company is
acquired in a merger or other business combination transaction in which the Company is not the
surviving corporation, or (ii) 50% or more of the Company’s assets, cash flow or earning power is
sold or transferred, each holder of a Right (except Rights which previously have been voided as set
forth above) shall thereafter have the right to receive, upon exercise, common shares of the
acquiring company having a value equal to two times the exercise price of the Right. The events
set forth in this paragraph and in the second preceding paragraph are referred to as the
“Triggering Events.”

     At any time until 10 business days following the Share Acquisition Date, the Company may
redeem the Rights in whole, but not in part, at a price of $.01 per Right (payable in cash, Common
Shares or other consideration deemed appropriate by the Board of Directors). Immediately upon the
action of the Board of Directors ordering redemption of the Rights, the Rights will terminate and
the only right of the holders of Rights will be to receive the $.01 redemption price. The Board of
Directors may also exchange the Rights at a ratio of one Common Share or one one-hundredth of a
Preferred Share per Right (subject to adjustment).

     Until a Right is exercised, the holder thereof, as such, will have no rights as a shareholder
of the Company, including, without limitation, the right to vote or to receive dividends. While
the distribution of the Rights will not be taxable to shareholders or to the Company, shareholders
may, depending upon the circumstances, recognize taxable income in the event that the Rights become
exercisable for Common Shares (or other consideration) of the Company or for common shares of the
acquiring company as set forth above.

     Any of the provisions of the Rights Agreement may be amended by the Board of Directors of the
Company prior to the Distribution Date. After the Distribution Date, the provisions of the Rights
Agreement may be amended by the Board in order to cure any ambiguity, to make changes which do not
adversely affect the interests of holders of Rights, or to shorten or lengthen any time period
under the Rights Agreement; provided, however, that no amendment may be made at such time as the
Rights are not redeemable.

     A copy of the Rights Agreement has been filed with the Securities and Exchange Commission as
an Exhibit to a Current Report on Form 8-K. A copy of the Rights Agreement is available free of
charge from the Company. This summary description of the Rights does not purport to be complete
and is qualified in its entirety by reference to the Rights Agreement,
which is incorporated herein by reference.

48EX-10.1

Exhibit 10.1

EXECUTION COPY

TWO-YEAR CREDIT AGREEMENT

Dated as of April 29, 2009

Among

DTE ENERGY COMPANY,

as Borrower

and

THE INITIAL LENDERS NAMED HEREIN,

as Initial Lenders

and

CITIBANK, N.A.,

as Administrative Agent

and

	 	 	 	 	 
	BARCLAYS CAPITAL,
	 	THE BANK OF NOVA
	 	JPMORGAN CHASE BANK,
	 
	 	SCOTIA,
	 	N.A.,
	 	 	 	 	 
	as Co-Syndication Agent
	 	as Co-Syndication Agent
	 	as Co-Syndication Agent

and

THE ROYAL BANK OF SCOTLAND plc,

as Documentation Agent

      

	 	 	 
	CITIGROUP GLOBAL MARKETS INC.,
	 	BARCLAYS CAPITAL,
	 	 	 
	as Co-Lead Arranger and Joint Book Runner
	 	as Co-Lead Arranger and Joint Book Runner

      

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I: DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	 
	SECTION 1.01. Certain Defined Terms
	 	 	1	 
	 
	SECTION 1.02. Computation of Time Periods
	 	 	15	 
	 
	SECTION 1.03. Accounting Terms
	 	 	15	 
	 
	 	 	 	 
	ARTICLE II: AMOUNTS AND TERMS OF THE REVOLVING CREDIT ADVANCES
	 	 	15	 
	 
	SECTION 2.01. Commitment
	 	 	15	 
	 
	SECTION 2.02. Making the Revolving Credit Advances
	 	 	15	 
	 
	SECTION 2.03. Fees
	 	 	17	 
	 
	SECTION 2.04. Termination or Reduction of the Commitments; Increase of the
Commitments
	 	 	17	 
	 
	SECTION 2.05. Repayment of Revolving Credit Advances
	 	 	18	 
	 
	SECTION 2.06. Interest on Revolving Credit Advances
	 	 	18	 
	 
	SECTION 2.07. Interest Rate Determination
	 	 	19	 
	 
	SECTION 2.08. Optional Conversion of Revolving Credit Advances
	 	 	20	 
	 
	SECTION 2.09. Prepayments of Revolving Credit Advances
	 	 	20	 
	 
	SECTION 2.10. Increased Costs
	 	 	21	 
	 
	SECTION 2.11. Illegality.
	 	 	22	 
	 
	SECTION 2.12. Payments and Computations
	 	 	22	 
	 
	SECTION 2.13. Taxes
	 	 	23	 
	 
	SECTION 2.14. Sharing of Payments, Etc
	 	 	26	 
	 
	SECTION 2.15. Use of Proceeds
	 	 	26	 
	 
	SECTION 2.16. Noteless Agreement; Evidence of Indebtedness
	 	 	26	 
	 
	SECTION 2.17. Defaulting Lenders
	 	 	27	 
	 
	 	 	 	 
	ARTICLE III: CONDITIONS TO EFFECTIVENESS AND LENDING
	 	 	28	 
	 
	SECTION 3.01. Conditions Precedent to Effectiveness of this Agreement
	 	 	28	 
	 
	SECTION 3.02. Conditions Precedent to Each Borrowing
	 	 	29	 
	 
	SECTION 3.03. Determinations Under Section 3.01
	 	 	30	 

i

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE IV: REPRESENTATIONS AND WARRANTIES
	 	 	30	 
	 
	SECTION 4.01. Representations and Warranties of the Borrower
	 	 	30	 
	 
	 	 	 	 
	ARTICLE V: COVENANTS OF THE BORROWER
	 	 	33	 
	 
	SECTION 5.01. Affirmative Covenants
	 	 	33	 
	 
	SECTION 5.02. Negative Covenants
	 	 	35	 
	 
	 	 	 	 
	ARTICLE VI: EVENTS OF DEFAULT
	 	 	35	 
	 
	SECTION 6.01. Events of Default
	 	 	35	 
	 
	 	 	 	 
	ARTICLE VII: THE AGENT
	 	 	38	 
	 
	SECTION 7.01. Authorization and Action
	 	 	38	 
	 
	SECTION 7.02. Agent’s Reliance, Etc
	 	 	38	 
	 
	SECTION 7.03. Citibank and Affiliates
	 	 	38	 
	 
	SECTION 7.04. Lender Credit Decision
	 	 	39	 
	 
	SECTION 7.05. Indemnification
	 	 	39	 
	 
	SECTION 7.06. Successor Agent
	 	 	39	 
	 
	SECTION 7.07. Co-Syndication Agents and Documentation Agent
	 	 	40	 
	 
	 	 	 	 
	ARTICLE VIII: MISCELLANEOUS
	 	 	40	 
	 
	SECTION 8.01. Amendments, Etc
	 	 	40	 
	 
	SECTION 8.02. Notices, Etc.
	 	 	40	 
	 
	SECTION 8.03. No Waiver; Remedies
	 	 	42	 
	 
	SECTION 8.04. Costs and Expenses
	 	 	43	 
	 
	SECTION 8.05. Right of Set-off
	 	 	44	 
	 
	SECTION 8.06. Binding Effect
	 	 	44	 
	 
	SECTION 8.07. Assignments, Designations and Participations
	 	 	45	 
	 
	SECTION 8.08. Confidentiality
	 	 	49	 
	 
	SECTION 8.09. Governing Law
	 	 	49	 
	 
	SECTION 8.10. Execution in Counterparts; Integration
	 	 	49	 
	 
	SECTION 8.11. Jurisdiction, Etc
	 	 	49	 
	 
	SECTION 8.12. Waiver of Jury Trial
	 	 	50	 
	 
	SECTION 8.13. USA Patriot Act Notification
	 	 	50	 
	 
	SECTION 8.14. Severability
	 	 	50	 

ii

 

SCHEDULES AND EXHIBITS

	 	 	 
	Schedules
	 	 
	 
	 	 
	Schedule I

	 	-  List of Applicable Lending Offices
	 
	 	 
	Pricing Schedule
	 	 
	 
	 	 
	Exhibits
	 	 
	 
	 	 
	Exhibit A

	 	-  Form of Note (If Requested)
	 
	 	 
	Exhibit B

	 	-  Form of Notice of Borrowing
	 
	 	 
	Exhibit C

	 	-  Form of Assignment and Acceptance
	 
	 	 
	Exhibit D

	 	-  Form of Certificate by Borrower
	 
	 	 
	Exhibit E-1

	 	-  Form of Opinion of Associate General Counsel to
the Borrower
	 
	 	 
	Exhibit E-2

	 	-  Form of Opinion of Hunton & Williams LLP
	 
	 	 
	Exhibit F

	 	-  Form of Compliance Certificate
	 
	 	 
	Exhibit G

	 	-  Form of Lender Supplement

iii

 

          This TWO-YEAR CREDIT AGREEMENT (this “Agreement”) dated as of April 29, 2009 is
entered into among DTE ENERGY COMPANY, a Michigan corporation (the “Borrower”), the banks,
financial institutions and other institutional lenders (the “Initial Lenders”) listed on
the signature pages hereof, and CITIBANK, N.A. (“Citibank”), as Administrative Agent (the
“Agent”) for the Lenders (as hereinafter defined).

PRELIMINARY STATEMENT

          In consideration of the premises and the mutual covenants and agreements contained herein, the
parties hereto hereby agree, subject to the satisfaction of the conditions set forth in Article
III, as follows:

ARTICLE I: DEFINITIONS AND ACCOUNTING TERMS

          SECTION 1.01. Certain Defined Terms. As used in this Agreement, the following terms
shall have the following meanings (such meanings to be equally applicable to both the singular and
plural forms of the terms defined):

     “Affiliate” means, as to any Person, any other Person that, directly or
indirectly, controls, is controlled by or is under common control with such Person or is a
director or officer of such Person. For purposes of this definition, the term “control”
(including the terms “controlling”, “controlled by” and “under common control with”) of a
Person means the possession, direct or indirect, of the power to vote 25% or more of the
Voting Stock of such Person or to direct or cause the direction of the management and
policies of such Person, whether through the ownership of Voting Stock, by contract or
otherwise.

     “Agent” has the meaning specified in the recital of parties to this Agreement.

     “Agent’s Account” means the account of the Agent maintained by the Agent at
Citibank with its office at Two Penns Way, Suite 200, New Castle, Delaware 19720, Account
No. 36852248, Attention: Charles Huester.

     “Agents” means the Agent and each Co-Syndication Agent, collectively.

     “Agent Parties” has the meaning specified in Section 8.02(b).

     “Anti-Money Laundering Laws” has the meaning specified in Section 4.01(p).

     “Applicable Lending Office” means, with respect to each Lender, such Lender’s
Domestic Lending Office in the case of a Base Rate Advance and such Lender’s Eurodollar
Lending Office in the case of a Eurodollar Rate Advance.

     “Applicable Margin” means, as of any date, (i) with respect to all Base Rate
Advances, the percentage rate per annum which is applicable at such time with respect to
Base Rate Advances as set forth in the Pricing Schedule, and (ii) with respect to all
Eurodollar Rate Advances, the percentage rate per annum which is applicable at such time
with respect to Eurodollar Rate Advances as set forth in the Pricing Schedule.

 

 

     “Applicable Percentage” means, as of any date, the percentage rate per annum at
which Facility Fees are accruing on each Lender’s Commitment (without regard to usage) at
such time as set forth in the Pricing Schedule.

     “Approved Fund” means any Person (other than a natural person) that (a) is
engaged in making, purchasing, holding or investing in bank loans and similar extensions of
credit in the ordinary course of its business, (b) has a combined capital and surplus of at
least $500,000,000, and (c) is administered or managed by (x) a Lender, (y) an Affiliate of
a Lender or (z) an entity or an Affiliate of an entity that administers or manages a Lender.

     “Arrangers” means, collectively, Citigroup Global Markets Inc. and Barclays
Capital, the investment banking division of Barclays Bank PLC, in their capacities as
co-lead arrangers and joint book runners for the credit facility evidenced by this
Agreement.

     “Assignment and Acceptance” means an assignment and acceptance entered into by
a Lender and an Eligible Assignee, and accepted by the Agent, in substantially the form of
Exhibit C hereto.

     “Audited Statements” means the Consolidated balance sheets of the Borrower,
DECO and MichCon as at December 31, 2008, and the related Consolidated statements of income
and cash flows of the Borrower, DECO and MichCon for the fiscal year then ended, accompanied
by the opinion thereon of the Borrower’s, DECO’s and MichCon’s independent public
accountants.

     “Base Rate” means a fluctuating interest rate per annum equal to, for any day,
the highest of:

     (a) the Prime Rate in effect on such day;

     (b) the Eurodollar Rate for a one month Interest Period on such day (or if such
day is not a Business Day, the immediately preceding Business Day) plus 1%; or

     (c) 1/2 of 1% per annum above the Federal Funds Rate in effect on such day.

     “Base Rate Advance” means a Revolving Credit Advance that bears interest as
provided in Section 2.06(a)(i).

     “Borrower” has the meaning specified in the recital of parties to this
Agreement.

     “Borrowing” means a borrowing consisting of simultaneous Revolving Credit
Advances of the same Type and (in the case of Eurodollar Rate Advances) having the same
Interest Period, made by each of the Lenders pursuant to Section 2.01.

     “Business Day” means a day of the year on which banks are not required or
authorized by law to close in New York City or Chicago, Illinois and, if the applicable

2

 

Business Day relates to any Eurodollar Rate Advances, on which dealings are carried on
in the London interbank market.

     “Capitalization” means the sum of (a) Total Funded Debt plus (b)
Consolidated Net Worth.

     “Citibank” has the meaning specified in the recital of parties to this
Agreement.

     “Commitment” means, for each Lender, the obligation of such Lender to make
Revolving Credit Advances to the Borrower in an aggregate amount not exceeding the amount
set forth opposite such Lender’s name on Schedule I hereto or if such Lender has entered
into any Assignment and Acceptance, set forth for such Lender in the Register maintained by
the Agent pursuant to Section 8.07(d), as such amount may be modified from time to time
pursuant to the terms hereof.

     “Communications” has the meaning specified in Section 8.02(b).

     “Confidential Information” means information that the Borrower furnishes to the
Agent or any Lender designated as confidential, but does not include any such information
that is or becomes generally available to the public or that is or becomes available to the
Agent or such Lender from a source other than the Borrower.

     “Consolidated” refers to the consolidation of accounts in accordance with GAAP.

     “Consolidated Net Worth” means, as of any date of determination, the
consolidated total stockholders’ equity, including capital stock (but excluding treasury
stock and capital stock subscribed and unissued), additional paid-in capital and retained
earnings (but excluding the Excluded Pension Effects) of the Borrower and its Subsidiaries
determined in accordance with GAAP.

     “Convert”, “Conversion” and “Converted” each refers to a
conversion of Revolving Credit Advances of one Type into Revolving Credit Advances of the
other Type pursuant to Section 2.07 or 2.08.

     “Co-Syndication Agents” means, collectively, Barclays Capital, the investment
banking division of Barclays Bank PLC, The Bank of Nova Scotia, and JPMorgan Chase Bank,
N.A., in their capacities as co-syndication agents for the credit facility evidenced by this
Agreement.

     “Credit Agreements” means, collectively, this Agreement, the DECO Credit
Agreement and the MichCon Credit Agreement.

     “Debt” of any Person means, without duplication, (a) all indebtedness of such
Person for borrowed money, (b) all obligations of such Person for the deferred purchase
price of property or services (other than trade payables not overdue by more than 60 days
incurred in the ordinary course of such Person’s business), (c) all obligations of such
Person evidenced by notes, bonds, debentures or other similar instruments, (d) all
obligations of such Person created or arising under any conditional sale or other title

3

 

retention agreement with respect to property acquired by such Person (even though the
rights and remedies of the seller or lender under such agreement in the event of default are
limited to repossession or sale of such property), (e) all obligations of such Person as
lessee under leases that have been or should be, in accordance with GAAP, recorded as
capital leases, (f) all obligations, contingent or otherwise, of such Person in respect of
acceptances, letters of credit or similar extensions of credit, (g) all obligations of such
Person in respect of Hedge Agreements, (h) all Debt of others referred to in clauses (a)
through (g) above or clause (i) below guaranteed directly or indirectly in any manner by
such Person, or in effect guaranteed directly or indirectly by such Person through an
agreement (1) to pay or purchase such Debt or to advance or supply funds for the payment or
purchase of such Debt, (2) to purchase, sell or lease (as lessee or lessor) property, or to
purchase or sell services, primarily for the purpose of enabling the debtor to make payment
of such Debt or to assure the holder of such Debt against loss, (3) to supply funds to or in
any other manner invest in the debtor (including any agreement to pay for property or
services irrespective of whether such property is received or such services are rendered) or
(4) otherwise to assure a creditor against loss (all such obligations under this clause
(h) being “Guaranteed Obligations”), and (i) all Debt referred to in clauses (a)
through (h) above secured by (or for which the holder of such Debt has an existing right,
contingent or otherwise, to be secured by) any Lien on property (including, without
limitation, accounts and contract rights) owned by such Person, even though such Person has
not assumed or become liable for the payment of such Debt. See the definition of
“Nonrecourse Debt” below.

     “DECO” means The Detroit Edison Company, a Michigan corporation wholly owned by
the Borrower.

     “DECO Credit Agreement” means that certain Two-Year Credit Agreement, dated as
of the date hereof, by and among DECO, as borrower, the financial institutions from time to
time parties thereto as lenders, and Barclays Bank PLC, as administrative agent for the
lenders, as the same may be amended, restated, supplemented or otherwise modified from time
to time.

     “Default” means any Event of Default or any event that would constitute an
Event of Default but for the requirement that notice be given or time elapse or both.

     “Defaulting Lender” means any Lender, as determined by the Agent, that has (a)
failed to fund any portion of its Revolving Credit Advances within three Business Days of
the date required to be funded by it hereunder, unless the subject of a good faith dispute,
(b) notified the Borrower, the Agent or any Lender in writing, or has otherwise indicated
through a public statement, that it does not intend to comply with its funding obligations
generally under agreements in which it commits to extend credit, (c) failed, within three
Business Days after receipt of a written request from the Agent, to confirm that it will
comply with the terms of this Agreement relating to its obligations to fund prospective
Revolving Credit Advances, unless the subject of a good faith dispute, (d) otherwise failed
to pay over to the Agent or any other Lender any other amount required to be paid by it
hereunder within three Business Days of the date when due, unless the subject of a good
faith dispute, or (e) become the subject of a bankruptcy or insolvency

4

 

proceeding, or has had a receiver, conservator, trustee, custodian, administrator,
assignee for the benefit of creditors or similar Person charged with reorganization or
liquidation of its business, appointed for it, or has taken any action in furtherance of, or
indicating its consent to, approval of or acquiescence in any such proceeding or appointment
or has a parent company that has become the subject of a bankruptcy or insolvency
proceeding, or has had a receiver, conservator, trustee, custodian, administrator, assignee
for the benefit of creditors or similar Person charged with reorganization or liquidation of
its business, appointed for it, or has taken any action in furtherance of, or indicating its
consent to, approval of or acquiescence in any such proceeding or appointment;
provided that (i) if a Lender would be a “Defaulting Lender” solely by reason of
events relating to a parent company of such Lender or solely because a Governmental
Authority has been appointed as receiver, conservator, trustee or custodian for such Lender,
in each case as described in clause (e) above, the Agent may, in its discretion, determine
that such Lender is not a “Defaulting Lender” if and for so long as the Agent is satisfied
that such Lender will continue to perform its funding obligations hereunder, (ii) subject to
the last sentence of Section 2.17, the Agent and the Borrower, by joint notice to the
Lenders, may declare that a Defaulting Lender is no longer a “Defaulting Lender” if the
Agent and the Borrower each determines, in its sole respective discretion, that the
circumstances that resulted in such Lender becoming a “Defaulting Lender” no longer apply,
and (iii) a Lender shall not be a Defaulting Lender solely by virtue of the ownership or
acquisition of Voting Stock or any other equity interest in such Lender or a parent company
thereof by a Governmental Authority or an instrumentality thereof.

     “Designating Lender” has the meaning specified in Section 8.07(h).

     “Disclosed Litigation” has the meaning specified in Section 4.01(f).

     “Domestic Lending Office” means, with respect to any Lender, the office of such
Lender specified as its “Domestic Lending Office” opposite its name on Schedule I hereto or
in the Assignment and Acceptance pursuant to which it became a Lender, or such other office
of such Lender as such Lender may from time to time specify to the Borrower and the Agent.

     “Effective Date” has the meaning specified in Section 3.01.

     “Eligible Assignee” means (i) a Lender; (ii) an Affiliate of a Lender; (iii) a
commercial bank organized under the laws of the United States, or any State thereof, and
having a combined capital and surplus of at least $500,000,000; (iv) a savings and loan
association or savings bank organized under the laws of the United States, or any State
thereof, and having a combined capital and surplus of at least $500,000,000; (v) a
commercial bank organized under the laws of any other country that is a member of the
Organization for Economic Cooperation and Development or has concluded special lending
arrangements with the International Monetary Fund associated with its General Arrangements
to Borrow, or a political subdivision of any such country, and having a combined capital and
surplus of at least $500,000,000, so long as such bank is acting through a branch or agency
located in the United States; (vi) the central bank of any country that is a member of the
Organization for Economic Cooperation and

5

 

Development; (vii) a finance company, insurance company or other financial institution
or fund (whether a corporation, partnership, trust or other entity) that is engaged in
making, purchasing or otherwise investing in commercial loans in the ordinary course of its
business and having a combined capital and surplus of at least $500,000,000; (viii) an
Approved Fund; and (ix) any other Person approved by the Agent and, so long as no Event of
Default shall be continuing, the Borrower, such approval not to be unreasonably withheld or
delayed by either party; provided, however, that neither the Borrower nor an
Affiliate of the Borrower shall qualify as an Eligible Assignee.

     “Enterprises” means DTE Enterprises, Inc., a Michigan corporation wholly-owned
by the Borrower.

     “Environmental Action” means any action, suit, demand, demand letter, claim,
notice of non-compliance or violation, notice of liability or potential liability,
investigation, proceeding, consent order or consent agreement relating in any way to any
Environmental Law, Environmental Permit or Hazardous Materials or arising from alleged
injury or threat of injury to the environment, including, without limitation, (a) by any
governmental or regulatory authority for enforcement, cleanup, removal, response, remedial
or other actions or damages and (b) by any governmental or regulatory authority or any third
party for damages, contribution, indemnification, cost recovery, compensation or injunctive
relief.

     “Environmental Law” means any federal, state, local or foreign statute, law,
ordinance, rule, regulation, code, order, judgment, decree or judicial or agency
interpretation, policy or guidance relating to pollution or protection of the environment or
natural resources, including, without limitation, those relating to the use, handling,
transportation, treatment, storage, disposal, release or discharge of Hazardous Materials.

     “Environmental Permit” means any permit, approval, identification number,
license or other authorization required under any Environmental Law.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended
from time to time, and the regulations promulgated and rulings issued thereunder.

     “ERISA Affiliate” means any Person that for purposes of Title IV of ERISA is a
member of the Borrower’s controlled group, or under common control with the Borrower, within
the meaning of Section 414 of the Internal Revenue Code.

     “ERISA Event” means (a) (i) the occurrence of a reportable event, within the
meaning of Section 4043 of ERISA, with respect to any Plan unless the 30-day notice
requirement with respect to such event has been waived by the PBGC, or (ii) the requirements
of subsection (1) of Section 4043(b) of ERISA (without regard to subsection (2) of such
Section) are met with respect to a contributing sponsor, as defined in Section 4001(a)(13)
of ERISA, of a Plan, and an event described in paragraph (9), (10), (11), (12) or (13) of
Section 4043(c) of ERISA is reasonably expected to occur with respect to such Plan within
the following 30 days; (b) the application for a minimum

6

 

funding waiver with respect to a Plan; (c) the provision by the administrator of any
Plan of a notice of intent to terminate such Plan pursuant to Section 4041(a)(2) of ERISA
(including any such notice with respect to a plan amendment referred to in Section 4041(e)
of ERISA); (d) the cessation of operations at a facility of the Borrower or any ERISA
Affiliate in the circumstances described in Section 4062(e) of ERISA; (e) the withdrawal by
the Borrower or any ERISA Affiliate from a Multiple Employer Plan during a plan year for
which it was a substantial employer, as defined in Section 4001(a)(2) of ERISA; (f) the
conditions for the imposition of a lien under Section 302(f) of ERISA shall have been met
with respect to any Plan; (g) the adoption of an amendment to a Plan requiring the provision
of security to such Plan pursuant to Section 307 of ERISA; or (h) the institution by the
PBGC of proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the occurrence
of any event or condition described in Section 4042 of ERISA that constitutes grounds for
the termination of, or the appointment of a trustee to administer, a Plan.

     “Eurocurrency Liabilities” has the meaning assigned to that term in
Regulation D of the Board of Governors of the Federal Reserve System, as in effect from time
to time.

     “Eurodollar Lending Office” means, with respect to any Lender, the office of
such Lender specified as its “Eurodollar Lending Office” opposite its name on Schedule I
hereto or in the Assignment and Acceptance pursuant to which it became a Lender (or, if no
such office is specified, its Domestic Lending Office), or such other office of such Lender
as such Lender may from time to time specify to the Borrower and the Agent.

     “Eurodollar Rate” means, for any Interest Period for each Eurodollar Rate
Advance comprising part of the same Borrowing, an interest rate per annum equal to the rate
per annum obtained by dividing (a) the rate appearing on Reuters Screen LIBOR01 Page (or on
any successor or substitute page of the Service, or any successor to or substitute for the
Service, providing rate quotations comparable to those currently provided on such page of
the Service, as determined by the Agent after consultation with the Borrower from time to
time for purposes of providing quotations of interest rates applicable to U.S. dollar
deposits in the London interbank market) at approximately 11:00 A.M. (London time) two
Business Days prior to the commencement of such Interest Period, as the rate for U.S. dollar
deposits with a maturity comparable to such Interest Period, or in the event that such rate
is not available at such time for any reason, the average (rounded upward to the nearest
whole multiple of 1/16 of 1% per annum, if such average is not such a multiple) of the rate
per annum at which deposits in U.S. dollars are offered by the principal office of each of
the Reference Banks in London, England to prime banks in the London interbank market at
11:00 A.M. (London time) two Business Days before the first day of such Interest Period in
an amount approximately equal to such Reference Bank’s Eurodollar Rate Advance comprising
part of such Borrowing to be outstanding during such Interest Period and for a period equal
to such Interest Period, by (b) a percentage equal to 100% minus the Eurodollar Rate Reserve
Percentage for such Interest Period, subject, however, to the provisions of
Section 2.07.

7

 

     “Eurodollar Rate Advance” means a Revolving Credit Advance that bears interest
as provided in Section 2.06(a)(ii).

     “Eurodollar Rate Reserve Percentage” for any Interest Period for all Eurodollar
Rate Advances comprising part of the same Borrowing means the reserve percentage applicable
two Business Days before the first day of such Interest Period under regulations issued from
time to time by the Board of Governors of the Federal Reserve System (or any successor) for
determining the maximum reserve requirement (including, without limitation, any emergency,
supplemental or other marginal reserve requirement) for a member bank of the Federal Reserve
System in New York City with respect to liabilities or assets consisting of or including
Eurocurrency Liabilities (or with respect to any other category of liabilities that includes
deposits by reference to which the interest rate on Eurodollar Rate Advances is determined)
having a term equal to such Interest Period.

     “Events of Default” has the meaning specified in Section 6.01.

     “Excluded Pension Effects” means the non-cash effects on Consolidated Net Worth
resulting from the implementation of FASB Statement of Financial Accounting Standards No.
158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans, an
amendment of FASB Statements No. 87, 88, 106, and 132(R), dated September 2006.

     “Excluded Short-Term Debt” means Debt of MichCon or any of its Subsidiaries
having an original maturity of not more than 365 days in an aggregate amount of not more
than $450,000,000.

     “Existing Credit Agreement” means that certain Second Amended and Restated
Five-Year Credit Agreement, dated as of October 17, 2005, by and among the Borrower, the
financial institutions from time to time parties thereto as lenders, and Citibank, as
Administrative Agent, as amended, restated, supplemented or otherwise modified from time to
time.

     “Facility Fee” has the meaning specified in Section 2.03(a).

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

     “Financial Officer” of any Person means the chief executive officer, president,
chief financial officer, any vice president, controller, assistant controller, treasurer or
any assistant treasurer of such Person.

8

 

     “Funded Debt” means, as to any Person, without duplication: (a) all Debt of
such Person for borrowed money or which has been incurred in connection with the acquisition
of assets (excluding (i) contingent reimbursement obligations in respect of letters of
credit and bankers’ acceptances, (ii) Nonrecourse Debt, (iii) Junior Subordinated Debt, (iv)
Mandatorily Convertible Securities, and (v) Hybrid Equity Securities), (b) all capital lease
obligations of such Person and (c) all Guaranteed Obligations of Funded Debt of other
Persons.

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

     “Governmental Authority” means the government of the United States of America
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).

     “Guaranteed Obligations” has the meaning specified in clause (h) of the
definition of “Debt”.

     “Hazardous Materials” means (a) petroleum and petroleum products, by-products
or breakdown products, radioactive materials, asbestos-containing materials, polychlorinated
biphenyls and radon gas and (b) any other chemicals, materials or substances designated,
classified or regulated as hazardous or toxic or as a pollutant or contaminant under any
Environmental Law.

     “Hedge Agreements” means interest rate swap, cap or collar agreements, interest
rate future or option contracts, currency swap agreements, currency future or option
contracts and other similar agreements.

     “Hybrid Equity Securities” means any securities issued by the Borrower or its
Subsidiary or a financing vehicle of the Borrower or its Subsidiary that (i) are classified
as possessing a minimum of “intermediate equity content” by S&P, Basket C equity credit by
Moody’s, and 50% equity credit by Fitch and (ii) require no repayments or prepayments and no
mandatory redemptions or repurchases, in each case, prior to at least 91 days after the
later of the termination of the Commitments and the repayment in full of the Revolving
Credit Advances and all other amounts due under this Agreement.

     “Identified Reports on Form 8-K” means those certain reports of the Borrower
and DECO on Form 8-K filed or furnished with the Securities and Exchange Commission on (a)
January 27, February 23, February 24, March 4, March 5, March 6, March 19, March 20, and
April 8, 2009 with respect to the Borrower, and (b) January 27, February 23, February 24,
March 5, March 6, and April 8, 2009 with respect to DECO.

     “Initial Lenders” has the meaning specified in the recital of parties to this
Agreement.

9

 

     “Interest Period” means, for each Eurodollar Rate Advance comprising part of
the same Borrowing, the period commencing on the date of such Eurodollar Rate Advance or the
date of the Conversion of any Base Rate Advance into such Eurodollar Rate Advance and ending
on the last day of the period selected by the Borrower pursuant to the provisions below and,
thereafter, with respect to Eurodollar Rate Advances, each subsequent period commencing on
the last day of the immediately preceding Interest Period and ending on the last day of the
period selected by the Borrower pursuant to the provisions below. The duration of each such
Interest Period shall be one, two, three or six months, as the Borrower may, upon notice
received by the Agent not later than 11:00 A.M. (New York City time) on the third Business
Day prior to the first day of such Interest Period, select; provided,
however, that:

     (i) the Borrower may not select any Interest Period that ends after the
Termination Date then in effect;

     (ii) Interest Periods commencing on the same date for Eurodollar Rate Advances
comprising part of the same Borrowing shall be of the same duration;

     (iii) whenever the last day of any Interest Period would otherwise occur on a
day other than a Business Day, the last day of such Interest Period shall be
extended to occur on the next succeeding Business Day, provided,
however, that, if such extension would cause the last day of such Interest
Period to occur in the next following calendar month, the last day of such Interest
Period shall occur on the next preceding Business Day; and

     (iv) whenever the first day of any Interest Period occurs on a day of an
initial calendar month for which there is no numerically corresponding day in the
calendar month that succeeds such initial calendar month by the number of months
equal to the number of months in such Interest Period, such Interest Period shall
end on the last Business Day of such succeeding calendar month.

     “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended
from time to time, and the regulations promulgated and rulings issued thereunder.

     “Junior Subordinated Debt” means (a) subordinated junior deferrable interest
debentures of the Borrower, DECO, Enterprises or MichCon, (b) the related preferred
securities, if applicable, of Subsidiaries of the Borrower and (c) the related subordinated
guarantees, if applicable, of the Borrower, DECO, Enterprises or MichCon, in each case, from
time to time outstanding.

     “Lender Supplement” has the meaning specified in Section 2.04(c).

     “Lenders” means the Initial Lenders and each Person that shall become a party
hereto pursuant to Section 8.07(a), (b) and (c).

     “Lien” means any lien, security interest or other charge or encumbrance of any
kind, or any other type of preferential arrangement, including, without limitation, the lien

10

 

or retained security title of a conditional vendor and any easement, right of way or
other encumbrance on title to real property.

     “Loan Documents” means this Agreement and the Notes.

     “Mandatorily Convertible Securities” means any mandatorily convertible
equity-linked securities issued by the Borrower or its Subsidiary, so long as the terms of
such securities require no repayments or prepayments and no mandatory redemptions or
repurchases, in each case prior to at least 91 days after the later of the termination of
the Commitments and the repayment in full of the Revolving Credit Advances and all other
amounts due under this Agreement.

     “Material Adverse Change” means any material adverse change in the business,
condition (financial or otherwise), operations, performance or properties of the Borrower
and its Subsidiaries taken as a whole.

     “Material Adverse Effect” means a material adverse effect on (a) the business,
condition (financial or otherwise), operations, performance or properties of the Borrower
and its Subsidiaries taken as a whole, or (b) the ability of the Borrower to perform its
obligations under any Loan Document to which it is a party.

     “MichCon” means Michigan Consolidated Gas Company, a Michigan corporation,
wholly owned (indirectly) by the Borrower.

     “MichCon Credit Agreement” means that certain Two-Year Credit Agreement, dated
as of the date hereof, among MichCon, as borrower, the financial institutions from time to
time parties thereto as lenders, and JPMorgan Chase Bank, N.A., as administrative agent for
the lenders, as amended, restated, supplemented or otherwise modified from time to time.

     “Moody’s” means Moody’s Investors Service, Inc.

     “Moody’s Rating” is defined in the Pricing Schedule.

     “Multiemployer Plan” means a multiemployer plan, as defined in
Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate is making or
accruing an obligation to make contributions, or has within any of the preceding five plan
years made or accrued an obligation to make contributions.

     “Multiple Employer Plan” means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the Borrower or any
ERISA Affiliate and at least one Person other than the Borrower and the ERISA Affiliates or
(b) was so maintained and in respect of which the Borrower or any ERISA Affiliate could have
liability under Section 4064 or 4069 of ERISA in the event such plan has been or were to be
terminated.

     “Nonrecourse Debt” means Debt of the Borrower or any of its Subsidiaries in
respect of which no recourse may be had by the creditors under such Debt against the

11

 

Borrower or such Subsidiary in its individual capacity or against the assets of the
Borrower or such Subsidiary, other than (a) to assets which were purchased or refinanced by
the Borrower or such Subsidiary with the proceeds of such Debt, (b) to the proceeds of such
assets, or (c) if such assets are held by a Subsidiary formed solely for such purpose, to
such Subsidiary or the equity interests in such Subsidiary; provided that, for
purposes of clarity, it is understood that Securitization Bonds shall constitute Nonrecourse
Debt for all purposes of the Loan Documents, except to the extent (and only to the extent)
of any claims made against DECO in respect of its indemnification obligations relating to
such Securitization Bonds.

     “Note” has the meaning specified in Section 2.16.

     “Notice of Borrowing” has the meaning specified in Section 2.02(a).

     “Obligations” means all unpaid principal of and accrued and unpaid interest on
Revolving Credit Advances, all accrued and unpaid fees and all expenses, reimbursements,
indemnities and other obligations of the Borrower to the Lenders or to any Lender, the Agent
or any indemnified party arising under the Loan Documents.

     “OFAC” has the meaning specified in Section 4.01(o).

     “Other Taxes” has the meaning specified in Section 2.13(b).

     “PBGC” means the Pension Benefit Guaranty Corporation (or any successor).

     “Person” means an individual, partnership, corporation (including a business
trust), joint stock company, trust, unincorporated association, joint venture, limited
liability company or other entity, or a government or any political subdivision or agency
thereof.

     “Plan” means a Single Employer Plan or a Multiple Employer Plan.

     “Platform” has the meaning specified in Section 8.02(b).

     “Pricing Schedule” means the Pricing Schedule identifying the Applicable Margin
and the Applicable Percentage attached hereto identified as such.

     “Prime Rate” means the rate of interest per annum established by Citibank in
New York, New York, from time to time, as Citibank’s prime rate or base rate.

     “Pro Rata Share” means, with respect to a Lender, a portion equal to a fraction
the numerator of which is such Lender’s Commitment and the denominator of which is the
aggregate of all the Lenders’ Commitments; provided that, in the case of Section
2.17 when a Defaulting Lender shall exist (other than, for purposes of clarity, a Lender
that is attempting to cure its “Defaulting Lender” status pursuant to the last sentence of
Section 2.17), “Pro Rata Share” shall mean a portion equal to a fraction the numerator of
which is such Lender’s Commitment and the denominator of which is the aggregate of all the
Lender’s Commitments (disregarding any such Defaulting Lender’s Commitment). If the

12

 

Commitment has terminated or expired, the Pro Rata Shares shall be determined based
upon the Commitments most recently in effect, giving effect to any assignments and to any
Lender’s status as a Defaulting Lender at the time of determination.

     “Reference Banks” means Citibank, Barclays Bank PLC, JPMorgan Chase Bank, N.A.
and their respective successors.

     “Register” has the meaning specified in Section 8.07(d).

     “Required Lenders” means, subject to Section 2.17, at any time, Lenders owed
more than fifty percent (50%) of the then-aggregate unpaid principal amount of the Revolving
Credit Advances owing to the Lenders, or, if no such principal amount is then outstanding,
Lenders having more than fifty percent (50%) of the Commitments.

     “Revolving Credit Advance” means an advance by a Lender to the Borrower as part
of a Borrowing, and refers to a Base Rate Advance or a Eurodollar Rate Advance (each of
which shall be a “Type” of Revolving Credit Advance).

     “S&P” means Standard & Poor’s Ratings Services, a division of the McGraw-Hill
Companies, Inc.

     “S&P Rating” is defined in the Pricing Schedule.

     “SEC Reports” means the following reports and financial statements:

     (i) the Borrower’s and DECO’s Annual Reports on Form 10-K, as amended, in the case of
the Borrower’s Annual Report on Form 10-K, by Form 10-K/A, for the year ended December 31,
2008, as filed with or sent to the Securities and Exchange Commission, including the Audited
Statements of the Borrower and DECO, respectively; and

     (ii) the Identified Reports on Form 8-K, including therein the Audited Statements of
MichCon.

     “Service” means Reuters Monitor Money Rate Service.

     “Securitization Bonds” means Debt of one or more Securitization SPEs, issued
pursuant to The Customer Choice and Electricity Reliability Act, Act No. 142, Public Acts of
Michigan, 2000, as the same may be amended from time to time.

     “Securitization SPE” means an entity established or to be established directly
or indirectly by the Borrower for the purpose of issuing Securitization Bonds and includes
The Detroit Edison Securitization Funding LLC, a limited liability company organized under
the laws of the State of Michigan.

     “Significant Subsidiary” means (i) DECO, Enterprises and MichCon, and (ii) any
other Subsidiary of the Borrower (A) the total assets (after intercompany eliminations) of
which exceed 30% of the total assets of the Borrower and its Subsidiaries or (B) the net

13

 

worth of which exceeds 30% of the Consolidated Net Worth, in each case as shown on the
audited Consolidated financial statements of the Borrower as of the end of the fiscal year
immediately preceding the date of determination.

     “Single Employer Plan” means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of the Borrower or any
ERISA Affiliate and no Person other than the Borrower and the ERISA Affiliates or (b) was so
maintained and in respect of which the Borrower or any ERISA Affiliate could have liability
under Section 4069 of ERISA in the event such plan has been or were to be terminated.

     “SPV” has the meaning specified in Section 8.07(h).

     “Subsidiary” of any Person means any corporation, partnership, joint venture,
limited liability company, trust or estate of which (or in which) more than 50% of (a) the
issued and outstanding capital stock having ordinary voting power to elect a majority of the
Board of Directors of such corporation (irrespective of whether at the time capital stock of
any other class or classes of such corporation shall or might have voting power upon the
occurrence of any contingency), (b) the interest in the capital or profits of such limited
liability company, partnership or joint venture or (c) the beneficial interest in such trust
or estate is at the time directly owned or controlled by such Person, by such Person and one
or more of its other Subsidiaries or by one or more of such Person’s other Subsidiaries.

     “Taxes” has the meaning specified in Section 2.13(a).

     “Terminating Agreements” means, collectively, (a) the Existing Credit
Agreement, (b) that certain Second Amended and Restated Five-Year Credit Agreement, dated as
of October 17, 2005, by and among DECO, as borrower, the financial institutions from time to
time parties thereto as lenders, and Barclays Bank PLC, as Administrative Agent, as amended,
restated, supplemented or otherwise modified from time to time, and (c) that certain Second
Amended and Restated Five-Year Credit Agreement, dated as of October 17, 2005, by and among
MichCon, as borrower, the financial institutions from time to time parties thereto as
lenders, and JPMorgan Chase Bank, N.A., as Administrative Agent, as amended, restated,
supplemented or otherwise modified from time to time.

     “Termination Date” means the earlier of (a) April 29, 2011, and (b) the date of
termination in whole of the Commitments pursuant to Section 2.04 or 6.01.

     “Total Funded Debt” means all Funded Debt of the Borrower and its Consolidated
Subsidiaries, on a consolidated basis, as determined in accordance with GAAP.

     “2005 Five-Year Agreement” means that certain Five-Year Credit Agreement dated
as of October 17, 2005, by and among the Borrower, the lenders party thereto, and Citibank,
as Administrative Agent, as the same may be amended, restated, supplemented or otherwise
modified from time to time.

14

 

     “Voting Stock” means capital stock issued by a corporation, or equivalent
interests in any other Person, the holders of which are ordinarily, in the absence of
contingencies, entitled to vote for the election of directors (or persons performing similar
functions) of such Person, even if the right so to vote has been suspended by the happening
of such a contingency.

     “Withdrawal Liability” has the meaning specified in Part I of Subtitle E of
Title IV of ERISA.

          SECTION 1.02. Computation of Time Periods. In this Agreement in the computation of
periods of time from a specified date to a later specified date, the word “from” means “from and
including” and the words “to” and “until” each mean “to but excluding”.

          SECTION 1.03. Accounting Terms. Except as otherwise expressly provided herein, all
terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect
from time to time; provided that, if the Borrower notifies the Agent that the Borrower
requests an amendment to any provision hereof to eliminate the effect of any change occurring after
the date hereof in GAAP or in the application thereof on the operation of such provision (or if the
Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof
for such purpose), regardless of whether any such notice is given before or after such change in
GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP
as in effect and applied immediately before such change shall have become effective until such
notice shall have been withdrawn or such provision amended in accordance herewith. Notwithstanding
any other provision contained herein, all terms of an accounting or financial nature used herein
shall be construed, and all computations of amounts and ratios referred to herein shall be made,
without giving effect to any election under Statement of Financial Accounting Standards 159 (or any
other Financial Accounting Standard having a similar result or effect) to value any Debt or other
liabilities of the Borrower or any of its Subsidiaries at “fair value”, as defined therein.

ARTICLE II: AMOUNTS AND TERMS OF THE REVOLVING CREDIT ADVANCES

          SECTION 2.01. Commitment. Each Lender severally agrees, on the terms and conditions
hereinafter set forth, to make Revolving Credit Advances to the Borrower from time to time on any
Business Day during the period from the Effective Date until the Termination Date in an aggregate
amount not to exceed at any time outstanding such Lender’s Commitment. Each Borrowing shall be in
an aggregate amount of $5,000,000 or an integral multiple of $1,000,000 in excess thereof, or the
remaining balance of Commitments available for a Borrowing, if such balance is less than
$5,000,000, and shall consist of Revolving Credit Advances of the same Type made on the same day by
the Lenders ratably according to their respective Commitments. Within the limits of each Lender’s
Commitment, the Borrower may borrow under this Section 2.01, prepay pursuant to Section 2.09 and
reborrow under this Section 2.01.

          SECTION 2.02. Making the Revolving Credit Advances. (a) Each Borrowing shall be made
on notice, given not later than 11:00 A.M. (New York City time) on the third Business Day prior to
the date of the proposed Borrowing in the case of a Borrowing

15

 

consisting of Eurodollar Rate Advances, or 10:00 A.M. (New York City time) on the Business Day
of the proposed Borrowing in the case of a Borrowing consisting of Base Rate Advances, by the
Borrower to the Agent, which shall give to each Lender prompt notice thereof by telecopier or
telex. Each such notice of a Borrowing (a “Notice of Borrowing”) shall be by telephone,
confirmed immediately in writing signed by a Financial Officer in substantially the form of
Exhibit B hereto, specifying therein the requested (i) date of such Borrowing, (ii) Type of
Revolving Credit Advances comprising such Borrowing, (iii) aggregate amount of such Borrowing,
(iv) in the case of a Borrowing consisting of Eurodollar Rate Advances, initial Interest Period for
each such Revolving Credit Advance and (v) wire transfer instructions. Each Lender shall, before
12:00 noon (New York City time) on the date of such Borrowing, make available for the account of
its Applicable Lending Office to the Agent at the Agent’s Account, in same day funds, such Lender’s
ratable portion of such Borrowing. After the Agent’s receipt of such funds and upon fulfillment of
the applicable conditions set forth in Article III, the Agent will make such funds available to the
Borrower as specified in the Notice of Borrowing.

     (b) Anything in subsection (a) above to the contrary notwithstanding, (i) the Borrower may not
select Eurodollar Rate Advances for any Borrowing if the aggregate amount of such Borrowing is less
than $5,000,000 or if the obligation of the Lenders to make Eurodollar Rate Advances shall then be
suspended pursuant to Section 2.07 or 2.11(a) and (ii) at no time shall the aggregate number of all
Borrowings comprising Eurodollar Rate Advances outstanding hereunder be greater than ten.

     (c) Each Notice of Borrowing shall be irrevocable and binding on the Borrower. In the case of
any Borrowing that the related Notice of Borrowing specifies is to be comprised of Eurodollar Rate
Advances, the Borrower shall indemnify each Lender against any loss, cost or expense incurred by
such Lender as a result of any failure to fulfill on or before the date specified in such Notice of
Borrowing for such Borrowing the applicable conditions set forth in Article III, including, without
limitation, any loss (excluding loss of anticipated profits), cost or expense incurred by reason of
the liquidation or reemployment of deposits or other funds acquired by such Lender to fund the
Revolving Credit Advance to be made by such Lender as part of such Borrowing when such Revolving
Credit Advance, as a result of such failure, is not made on such date.

     (d) Unless the Agent shall have received notice from a Lender prior to the time of any
Borrowing that such Lender will not make available to the Agent such Lender’s ratable portion of
such Borrowing, the Agent may assume that such Lender has made such portion available to the Agent
on the date of such Borrowing in accordance with subsection (a) of this Section 2.02 and the Agent
may, in reliance upon such assumption, make available to the Borrower on such date a corresponding
amount. If and to the extent that such Lender shall not have so made such ratable portion
available to the Agent, such Lender and the Borrower severally agree to repay to the Agent
forthwith on demand such corresponding amount together with interest thereon, for each day from the
date such amount is made available to the Borrower until the date such amount is repaid to the
Agent, at (i) in the case of the Borrower, the interest rate applicable at the time to Revolving
Credit Advances comprising such Borrowing and (ii) in the case of such Lender, the Federal Funds
Rate. If such Lender shall repay to the Agent such corresponding amount, such amount so repaid
shall constitute such Lender’s Revolving Credit Advance as part of such Borrowing for purposes of
this Agreement.

16

 

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

          SECTION 2.03. Fees. (a) Facility Fee. The Borrower agrees to pay to the
Agent for the account of each Lender a facility fee (the “Facility Fee”) on the aggregate
amount of such Lender’s Commitment from the date hereof in the case of each Initial Lender and from
effective date specified in the Assignment and Acceptance pursuant to which it became a Lender in
the case of each other Lender until all of the Obligations have been paid in full and the
Commitments under this Agreement have been terminated at a rate per annum equal to the Applicable
Percentage in effect from time to time, payable in arrears quarterly on the last day of each March,
June, September and December, and on the Termination Date.

     (b) Agent’s Fees. The Borrower shall pay to the Agent for its own account such fees
as may from time to time be agreed between the Borrower and the Agent.

          SECTION 2.04. Termination or Reduction of the Commitments; Increase of the
Commitments. (a) The Commitments shall be automatically terminated on the Termination Date.

     (b) The Borrower shall have the right, upon at least three Business Days’ notice to the Agent,
to terminate in whole or reduce ratably in part the unused portions of the respective Commitments
of the Lenders, provided that each partial reduction shall be in the aggregate amount of
$5,000,000 or an integral multiple of $1,000,000 in excess thereof, or the remaining balance, if
less than $5,000,000. Once terminated, a Commitment or portion thereof may not be reinstated.

     (c) At any time prior to the Termination Date the Borrower may, on the terms set forth below,
request that the Commitments hereunder be increased; provided, however, that (i) an
increase in the Commitments hereunder may only be made at a time when no Default shall have
occurred and be continuing, (ii) the “Commitments” under each of the DECO Credit Agreement and the
MichCon Credit Agreement (as such term is defined in each of the respective Credit Agreements) must
be simultaneously increased by a ratable portion (in proportion to the aggregate “Commitments”
under each such Credit Agreement (as such term is defined in each of the respective Credit
Agreements)) pursuant to and in accordance with Section 2.04(c) of each thereof, and (iii) in no
event shall the aggregate “Commitments” under all Credit Agreements (as such term is defined in
each of the respective Credit Agreements) (x) exceed $1,025,000,000, or (y) be increased pursuant
to Section 2.04(c) of each Credit Agreement by an aggregate amount in excess of $25,000,000. In
the event of such a requested increase in the Commitments, any Lender or other financial
institution which the Borrower and the Agent invite to become a Lender or to increase its
Commitment may set the amount of its Commitment at a level agreed to by the Borrower and the Agent.
In the event that the Borrower and one or more of the Lenders (or other financial institutions)
shall agree upon such an increase in the Commitments (i) the Borrower, the Agent and each Lender or
other financial institution increasing its Commitment or extending a new Commitment shall enter
into a supplement to this Agreement (each, a “Lender 

17

 

Supplement”) substantially in the form of Exhibit G setting forth, among other
things, the amount of the increased Commitment of such Lender or the new Commitment of such other
financial institution, as applicable, and (ii) the Borrower shall furnish, if requested, new or
amended and restated Notes, as applicable, to each financial institution that is extending a new
Commitment and each Lender that is increasing its Commitment. No such Lender Supplement shall
require the approval or consent of any Lender whose Commitment is not being increased. Upon the
execution and delivery of such Lender Supplements as provided above and the occurrence of the
“Effective Date” specified therein, and upon satisfaction of such other conditions as the Agent may
reasonably specify, the financial institutions that are extending new Commitments and the Lenders
that are increasing their Commitments (including, without limitation, the Agent administering the
reallocation of the aggregate Revolving Credit Advances ratably among the Lenders after giving
effect to each such increase in the Commitments, and the delivery of certificates, evidence of
corporate authority and legal opinions on behalf of the Borrower), this Agreement shall be deemed
to be amended accordingly.

          SECTION 2.05. Repayment of Revolving Credit Advances. The Borrower shall repay to the
Agent for the ratable account of the Lenders on the Termination Date the aggregate principal amount
of the Revolving Credit Advances then outstanding and all other unpaid Obligations.

          SECTION 2.06. Interest on Revolving Credit Advances. (a) Scheduled Interest.
The Borrower shall pay interest on the unpaid principal amount of each Revolving Credit Advance
owing to each Lender from the date of such Revolving Credit Advance until such principal amount
shall be paid in full, at the following rates per annum:

     (i) Base Rate Advances. During such periods as such Revolving Credit Advance
is a Base Rate Advance, a rate per annum equal at all times to the sum of (x) the Base Rate
in effect from time to time plus (y) the Applicable Margin in effect from time to
time, payable in arrears quarterly on the last day of each March, June, September and
December during such periods and on the date such Base Rate Advance shall be Converted or
paid in full.

     (ii) Eurodollar Rate Advances. During such periods as such Revolving Credit
Advance is a Eurodollar Rate Advance, a rate per annum equal at all times during each
Interest Period for such Revolving Credit Advance to the sum of (x) the Eurodollar Rate for
such Interest Period for such Revolving Credit Advance plus (y) the Applicable
Margin in effect from time to time, payable in arrears on the last day of such Interest
Period and, if such Interest Period has a duration of more than three months, on each day
that occurs during such Interest Period every three months from the first day of such
Interest Period and on the date such Eurodollar Rate Advance shall be Converted or paid in
full.

     (b) Default Interest. (i) Upon the occurrence and during the continuance of an Event
of Default, the Borrower shall pay interest on the unpaid principal amount of each Revolving Credit
Advance owing to each Lender, payable in arrears on the dates referred to in clause (a)(i) or
(a)(ii) above, at a rate per annum equal at all times to 2% per annum above the rate per annum
required to be paid on such Revolving Credit Advance pursuant to clause (a)(i) or (a)(ii) above,

18

 

and (ii) the Borrower shall pay, to the fullest extent permitted by law, interest on the
amount of any interest, fee or other amount payable hereunder that is not paid when due, from the
date such amount shall be due until such amount shall be paid in full, payable in arrears on the
date such amount shall be paid in full and on demand, at a rate per annum equal at all times to 2%
per annum above the rate per annum required to be paid on Base Rate Advances pursuant to
clause (a)(i) above.

          SECTION 2.07. Interest Rate Determination. (a) If applicable, each Reference Bank
agrees to furnish to the Agent timely information for the purpose of determining each Eurodollar
Rate. If any one or more of the Reference Banks shall not furnish such timely information to the
Agent for the purpose of determining any such interest rate, the Agent shall determine such
interest rate on the basis of timely information furnished by the remaining Reference Banks. The
Agent shall give prompt notice to the Borrower and the Lenders of the applicable interest rate
determined by the Agent for purposes of Section 2.06(a)(i) or (ii), and the rate, if any, furnished
by each Reference Bank for the purpose of determining the interest rate under Section 2.06(a)(ii).

     (b) If, with respect to any Eurodollar Rate Advances, the Required Lenders notify the Agent
that the Eurodollar Rate for any Interest Period for such Eurodollar Rate Advances will not
adequately reflect the cost to such Required Lenders of making, funding or maintaining their
respective Eurodollar Rate Advances for such Interest Period, the Agent shall forthwith so notify
the Borrower and the Lenders, whereupon (i) each Eurodollar Rate Advance will automatically, on the
last day of the then existing Interest Period therefor, Convert into a Base Rate Advance, and
(ii) the obligation of the Lenders to make, or to Convert Revolving Credit Advances into,
Eurodollar Rate Advances shall be suspended until the Agent shall notify the Borrower and the
Lenders that the circumstances causing such suspension no longer exist.

     (c) If the Borrower shall fail to select the duration of any Interest Period for any
Eurodollar Rate Advances in accordance with the provisions contained in the definition of “Interest
Period” in Section 1.01, the Agent will forthwith so notify the Borrower and the Lenders and such
Eurodollar Rate Advances will automatically, on the last day of the then existing Interest Period
therefor, Convert into Base Rate Advances.

     (d) On the date on which the aggregate unpaid principal amount of Eurodollar Rate Advances
comprising any Borrowing shall be reduced, by payment or prepayment or otherwise, to less than
$5,000,000, such Eurodollar Rate Advances shall automatically Convert into Base Rate Advances.

     (e) Upon the occurrence and during the continuance of any Event of Default, (i) each
Eurodollar Rate Advance will automatically, on the last day of the then existing Interest Period
therefor, Convert into a Base Rate Advance and (ii) the obligation of the Lenders to make, or to
Convert Revolving Credit Advances into, Eurodollar Rate Advances shall be suspended.

     (f) If the Service is not available or a rate does not timely appear on the Service and fewer
than two Reference Banks furnish timely information to the Agent for determining the Eurodollar
Rate for any Eurodollar Rate Advances:

19

 

     (i) the Agent shall forthwith notify the Borrower and the Lenders that the interest
rate cannot be determined for such Eurodollar Rate Advances,

     (ii) with respect to Eurodollar Rate Advances, each such Eurodollar Rate Advance will
automatically, on the last day of the then existing Interest Period therefor, Convert into a
Base Rate Advance (or if such Advance is then a Base Rate Advance, will continue as a Base
Rate Advance), and

     (iii) the obligation of the Lenders to make Eurodollar Rate Advances or to Convert
Revolving Credit Advances into Eurodollar Rate Advances shall be suspended until the Agent
shall notify the Borrower and the Lenders that the circumstances causing such suspension no
longer exist.

          SECTION 2.08. Optional Conversion of Revolving Credit Advances. The Borrower may on
any Business Day, upon notice given to the Agent not later than 11:00 A.M. (New York City time) on
the third Business Day prior to the date of the proposed Conversion and subject to the provisions
of Sections 2.07 and 2.11(a), Convert all Revolving Credit Advances of one Type comprising the same
Borrowing into Revolving Credit Advances of the other Type (it being understood that such
Conversion of a Revolving Credit Advance or of its Interest Period does not constitute a repayment
or prepayment of such Revolving Credit Advance); provided, however, that any
Conversion of Eurodollar Rate Advances into Base Rate Advances shall be made only on the last day
of an Interest Period for such Eurodollar Rate Advances, any Conversion of Base Rate Advances into
Eurodollar Rate Advances shall be in an amount not less than the minimum amount specified in
Section 2.02(b) and no Conversion of any Revolving Credit Advances shall result in more separate
Borrowings than permitted under Section 2.02(b). Each such notice of a Conversion shall, within
the restrictions specified above, specify (i) the date of such Conversion, (ii) the Revolving
Credit Advances to be Converted, and (iii) if such Conversion is into Eurodollar Rate Advances, the
duration of the initial Interest Period for each such Eurodollar Rate Advance. Each notice of
Conversion shall be irrevocable and binding on the Borrower.

          SECTION 2.09. Prepayments of Revolving Credit Advances. (a) Optional
Prepayment. The Borrower may on any Business Day, upon notice given to the Agent not later
than 11:00 A.M. (New York City time), (i) on the same day for Base Rate Advances and (ii) on the
second Business Day prior to the prepayment in the case of Eurodollar Rate Advances stating the
proposed date and aggregate principal amount of the prepayment (and if such notice is given the
Borrower shall) prepay the outstanding principal amount of the Revolving Credit Advances comprising
part of the same Borrowing in whole or ratably in part, together with accrued interest to the date
of such prepayment on the principal amount prepaid; provided, however, that (x)
each partial prepayment shall be in an aggregate principal amount of $5,000,000 or an integral
multiple of $1,000,000 in excess thereof, or the remaining balance, if less than $5,000,000, and
(y) in the event of any such prepayment of a Eurodollar Rate Advance, the Borrower shall be
obligated to reimburse the Lenders in respect thereof pursuant to Section 8.04(c).

     (b) Mandatory Prepayment. The Borrower shall, upon five Business Days’ notice from
the Agent given at the request or with the consent of the Required Lenders, prepay the aggregate
outstanding principal amount of all Revolving Credit Advances plus all interest

20

 

thereon and all other amounts payable hereunder or under the Notes, in the event that any
Person or two or more Persons acting in concert shall have acquired beneficial ownership (within
the meaning of Rule 13d-3 of the Securities and Exchange Commission under the Securities Exchange
Act of 1934), directly or indirectly, of Voting Stock of the Borrower (or other securities
convertible into such Voting Stock) representing 30% or more of the combined voting power of all
Voting Stock of the Borrower.

          SECTION 2.10. Increased Costs. (a) If, due to either (i) the introduction of or any
change in or in the interpretation of any law or regulation or (ii) the compliance with any
guideline or request from any central bank or other Governmental Authority (whether or not having
the force of law), there shall be any increase in the cost to any Lender of agreeing to make or
making, funding or maintaining Eurodollar Rate Advances (excluding for purposes of this Section
2.10 any such increased costs resulting from taxes (as to which Section 2.13 shall govern), then
the Borrower shall from time to time, upon demand by such Lender (with a copy of such demand to the
Agent), pay to the Agent for the account of such Lender additional amounts sufficient to compensate
such Lender for such increased cost. A certificate as to the amount of such increased cost,
submitted to the Borrower and the Agent by such Lender, shall be conclusive and binding for all
purposes, absent manifest error.

     (b) If any Lender determines that compliance with any law or regulation or any guideline or
request from any central bank or other Governmental Authority (whether or not having the force of
law) affects or would affect the amount of capital required or expected to be maintained by such
Lender or any corporation controlling such Lender and that the amount of such capital is increased
by or based upon the existence of such Lender’s commitment to lend hereunder and other commitments
of this type, then, upon demand by such Lender (with a copy of such demand to the Agent), the
Borrower shall pay to the Agent for the account of such Lender from time to time as specified by
such Lender, additional amounts sufficient to compensate such Lender or such corporation in the
light of such circumstances, to the extent that such Lender reasonably determines such increase in
capital to be allocable to the existence of such Lender’s commitment to lend hereunder. A
certificate as to such amounts submitted to the Borrower and the Agent by such Lender shall be
conclusive and binding for all purposes, absent manifest error.

     (c) In the event that a Lender demands payment from the Borrower for amounts owing pursuant to
subsection (a) or (b) of this Section 2.10, the Borrower may, upon payment of such amounts and
subject to the requirements of Sections 8.04 and 8.07, substitute for such Lender another financial
institution, which financial institution shall be an Eligible Assignee and shall assume the
Commitments of such Lender and purchase the Revolving Credit Advances held by such Lender in
accordance with Section 8.07, provided, however, that (i) no Default shall have
occurred and be continuing, (ii) the Borrower shall have satisfied all of its obligations in
connection with the Loan Documents with respect to such Lender, and (iii) if such assignee is not a
Lender, (A) such assignee is acceptable to the Agent and (B) the Borrower shall have paid the Agent
a $3,000 administrative fee.

     (d) If any Lender requests compensation under this Section 2.10, then such Lender shall use
reasonable efforts to designate a different Applicable Lending Office for funding or booking its
Revolving Credit Advances hereunder or to assign its rights and obligations

21

 

hereunder to another of its offices, branches or affiliates, if, in the judgment of such
Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to
this Section 2.10 in the future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to
pay all reasonable costs and expenses incurred by any Lender in connection with any such
designation or assignment.

          SECTION 2.11. Illegality.

     (a) Notwithstanding any other provision of this Agreement, if any Lender shall notify the
Agent that the introduction of or any change in or in the interpretation of any law or regulation
makes it unlawful, or any central bank or other Governmental Authority asserts that it is unlawful,
for any Lender or its Eurodollar Lending Office to perform its obligations hereunder to make
Eurodollar Rate Advances or to fund or maintain Eurodollar Rate Advances hereunder, (i) each
Eurodollar Rate Advance will automatically, upon such demand, Convert into a Base Rate Advance or a
Revolving Credit Advance that bears interest at the rate set forth in Section 2.06(a)(i), as the
case may be, and (ii) the obligation of the Lenders to make Eurodollar Rate Advances or to Convert
Revolving Credit Advances into Eurodollar Rate Advances shall be suspended until the Agent shall
notify the Borrower and the Lenders that the circumstances causing such suspension no longer exist.

     (b) If a Conversion occurs or the obligation of the Lenders to make Eurodollar Rate Advances
or to Convert Revolving Credit Advances into Eurodollar Rate Advances is suspended, in each case,
pursuant to Section 2.11(a), then the Lender causing such Conversion and/or suspension shall use
reasonable efforts to designate a different Applicable Lending Office for funding or booking its
Revolving Credit Advances 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 reinstate the Lenders’ obligations to make Eurodollar Rate Advances and to
Convert Revolving Credit Advances into Eurodollar Rate Advances and (ii) would not subject such
Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such
Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender
in connection with any such designation or assignment.

          SECTION 2.12. Payments and Computations. (a) The Borrower shall make each payment
hereunder and under the Notes not later than 11:00 A.M. (New York City time) on the day when due in
U.S. dollars to the Agent at the Agent’s Account in same day funds and without set off, deduction
or counterclaim other than deductions on account of taxes. The Agent will promptly thereafter
cause to be distributed like funds relating to the payment of principal or interest or Facility
Fees ratably (other than amounts payable pursuant to Section 2.10, 2.13 or 8.04(c)) to the Lenders
for the account of their respective Applicable Lending Offices, and like funds relating to the
payment of any other amount payable to any Lender to such Lender for the account of its Applicable
Lending Office, in each case to be applied in accordance with the terms of this Agreement. Upon
its acceptance of an Assignment and Acceptance and recording of the information contained therein
in the Register pursuant to Section 8.07(c), from and after the effective date specified in such
Assignment and Acceptance, the Agent shall make all payments hereunder and under the Notes in
respect of the interest assigned thereby to the Lender assignee

22

 

thereunder, and the parties to such Assignment and Acceptance shall make all appropriate
adjustments in such payments for periods prior to such effective date directly between themselves.

     (b) The Borrower hereby authorizes each Lender, if and to the extent payment owed to such
Lender is not made when due hereunder or under the Note held by such Lender, to charge from time to
time against any or all of the Borrower’s accounts with such Lender any amount so due.

     (c) All computations of interest based on the Base Rate, when such computations of the Base
Rate are based on the Prime Rate, shall be made by the Agent on the basis of a year of 365 or 366
days, as the case may be, and all computations of interest based on the Base Rate (other than such
computations of the Base Rate that are based on the Prime Rate), of interest based on the
Eurodollar Rate, and of the Facility Fees shall be made by the Agent on the basis of a year of 360
days, in each case, for the actual number of days (including the first day but excluding the last
day) occurring in the period for which such interest or Facility Fees are payable. Each
determination by the Agent of an interest rate hereunder shall be conclusive and binding for all
purposes, absent manifest error.

     (d) Whenever any payment hereunder or under the Notes shall be stated to be due on a day other
than a Business Day, such payment shall be made on the next succeeding Business Day, and such
extension of time shall in such case be included in the computation of payment of interest or
Facility Fee, as the case may be; provided, however, that, if such extension would
cause payment of interest on or principal of Eurodollar Rate Advances to be made in the next
following calendar month, such payment shall be made on the next preceding Business Day.

     (e) Unless the Agent shall have received notice from the Borrower prior to the date on which
any payment is due to the Lenders hereunder that the Borrower will not make such payment in full,
the Agent may assume that the Borrower has made such payment in full to the Agent on such date and
the Agent may, in reliance upon such assumption, cause to be distributed to each Lender on such due
date an amount equal to the amount then due such Lender. If and to the extent the Borrower shall
not have so made such payment in full to the Agent, each Lender shall repay to the Agent forthwith
on demand such amount distributed to such Lender together with interest thereon, for each day from
the date such amount is distributed to such Lender until the date such Lender repays such amount to
the Agent, at the Federal Funds Rate.

          SECTION 2.13. Taxes. (a) Subject to the exclusions set forth below in this Section
2.13(a) and, if applicable, compliance with Section 2.13(e), any and all payments by the Borrower
hereunder or under the Notes shall be made, in accordance with Section 2.12, free and clear of and
without deduction for any and all present or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto, excluding, in the case of each
Lender and the Agent, any and all present or future taxes, levies, imposts, deductions, charges or
withholdings imposed on its income, and franchise taxes imposed on it in lieu of income taxes, (i)
by the jurisdiction under the laws of which such Lender or the Agent (as the case may be) is
organized or any political subdivision thereof and (ii), in the case of each Lender, by the
jurisdiction of such Lender’s Applicable Lending Office or any political subdivision thereof (all
such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities in

23

 

respect of payments hereunder or under the Notes being hereinafter referred to as
“Taxes”). Notwithstanding the above, if the Borrower shall be required by law to deduct
any Taxes from or in respect of any sum payable hereunder or under any Note to any Lender or the
Agent, the Borrower will so deduct and (i) the sum payable shall be increased as may be necessary
so that after making all such deductions on account of Taxes (including deductions on account of
Taxes applicable to additional sums payable under this Section 2.13) such Lender or the Agent (as
the case may be) receives an amount equal to the sum it would have received had no such deductions
been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full
amount deducted to the relevant taxation authority or other authority in accordance with applicable
law.

     (b) The Borrower agrees to pay any present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies that arise from any payment made hereunder or
under the Notes or from the execution, delivery or registration of this Agreement or the Notes
(hereinafter referred to as “Other Taxes”).

     (c) Without duplication of the Borrower’s payment obligations on account of Taxes or Other
Taxes pursuant to Sections 2.13(a) and (b), the Borrower shall indemnify each Lender and the Agent
for the full amount of Taxes or Other Taxes (including, without limitation, any Taxes imposed by
any jurisdiction on amounts payable under this Section 2.13) imposed on or paid by such Lender or
the Agent (as the case may be) and any liability (including penalties, interest and expenses)
arising therefrom or with respect thereto. This indemnification shall be made within 30 days from
the date such Lender or the Agent (as the case may be) makes written demand therefor.

     (d) Within 30 days after the date of any payment of Taxes, the Borrower shall furnish to the
Agent, at its address referred to in Section 8.02, the original or a certified copy of a receipt
evidencing payment thereof. In the case of any payment hereunder or under the Notes by or on
behalf of the Borrower through an account or branch outside the United States or by or on behalf of
the Borrower by a payor that is not a United States person, if the Borrower determines that no
Taxes are payable in respect thereof, the Borrower shall furnish, or shall cause such payor to
furnish, to the Agent, at such address, an opinion of counsel acceptable to the Agent stating that
such payment is exempt from Taxes. For purposes of this subsection (d) and subsection (e), the
terms “United States” and “United States person” shall have the meanings specified
in Section 7701 of the Internal Revenue Code.

     (e) Each Lender organized under the laws of a jurisdiction outside the United States, on or
prior to the date of its execution and delivery of this Agreement in the case of each Initial
Lender and on the date of the Assignment and Acceptance pursuant to which it becomes a Lender in
the case of each other Lender, and from time to time thereafter as requested in writing by the
Borrower (but only so long as such Lender remains lawfully able to do so), shall provide each of
the Agent and the Borrower with two original Internal Revenue Service Form W-8BEN or W-8ECI, as
appropriate, or any successor or other form prescribed by the Internal Revenue Service, certifying
that such Lender is exempt from United States withholding tax on payments pursuant to this
Agreement or the Notes. If any form or document referred to in this subsection (e) requires the
disclosure of information, other than information necessary to compute the tax payable and
information required on the date hereof by Internal Revenue Service Form W-8BEN

24

 

or W-8ECI, that the Lender reasonably considers to be confidential, the Lender shall give
notice thereof to the Borrower and shall not be obligated to include in such form or document such
confidential information; however, such a Lender will not be entitled to any payment or
indemnification on account of any Taxes imposed by the United States.

     (f) Notwithstanding any provision to the contrary in this Agreement, the Borrower will not be
obligated to make payments on account of or indemnify the Lenders or the Agents for any present or
future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with
respect thereto, or any present or future stamp or other documentary taxes or property taxes,
charges or similar levies that are neither Taxes nor Other Taxes.

     (g) For any period with respect to which a Lender has failed to provide the Borrower with the
appropriate form described in Section 2.13(e) (other than if such failure is due to
a change in law occurring subsequent to the date on which a form originally was required to be
provided, or if such form otherwise is not required under the first sentence of subsection (e)
above), such Lender shall not be entitled to indemnification under Section 2.13(a) or (c) with
respect to Taxes imposed by the United States by reason of such failure; provided,
however, that should a Lender become subject to Taxes because of its failure to deliver a
form required hereunder, the Borrower shall take such steps as the Lender shall reasonably request
to assist the Lender to recover such Taxes.

     (h) In the event that a Lender demands payment from the Borrower for amounts owing pursuant to
subsection (a) or (b) of this Section 2.13, the Borrower may, upon payment of such amounts and
subject to the requirements of Sections 8.04 and 8.07, substitute for such Lender another financial
institution, which financial institution shall be an Eligible Assignee and shall assume the
Commitments of such Lender and purchase the Revolving Credit Advances held by such Lender in
accordance with Section 8.07, provided, however, that (i) no Default shall have
occurred and be continuing, (ii) the Borrower shall have satisfied all of its obligations in
connection with the Loan Documents with respect to such Lender, and (iii) if such assignee is not a
Lender, (A) such assignee is acceptable to the Agent and (B) the Borrower shall have paid the Agent
a $3,000 administrative fee.

     (i) Notwithstanding any provision to the contrary in this Agreement, in the event that a
Lender that is not an Initial Lender and who purchased its interest in this Agreement without the
consent of the Borrower pursuant to Section 8.07(a), seeks (i) payment of additional amounts
pursuant to Section 2.13(a), (ii) payment of Other Taxes pursuant to Section 2.13(b), or (iii)
indemnification for Taxes or Other Taxes pursuant to Section 2.13(c), the amount of any such
payment or indemnification will be no greater than what it would have been had the Initial Lender
not transferred, assigned or sold its interest in this Agreement.

     (j) 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 this Section 2.13, then such Lender shall use
reasonable efforts to designate a different Applicable Lending Office for funding or booking its
Revolving Credit Advances hereunder or to assign its rights and obligations hereunder to another of
its offices, branches or affiliates, if, in the judgment of such Lender, such designation or
assignment (i) would eliminate or reduce amounts payable pursuant to this Section 2.13 in the
future and (ii) would not subject such Lender to any unreimbursed cost

25

 

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.

          SECTION 2.14. Sharing of Payments, Etc. If any Lender shall obtain any payment
(whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on
account of the Revolving Credit Advances owing to it (other than pursuant to Section 2.10, 2.13 or
8.04(c)) in excess of its ratable share of payments on account of the Revolving Credit Advances
obtained by all of the Lenders, such Lender shall forthwith purchase from the other Lenders such
participations in the Revolving Credit Advances owing to them as shall be necessary to cause such
purchasing Lender to share the excess payment ratably with each of them; provided,
however, that if all or any portion of such excess payment is thereafter recovered from
such purchasing Lender, such purchase from each Lender shall be rescinded and such Lender shall
repay to the purchasing Lender the purchase price to the extent of such recovery together with an
amount equal to such Lender’s ratable share (according to the proportion of (i) the amount of such
Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of
any interest or other amount paid or payable by the purchasing Lender in respect of the total
amount so recovered. The Borrower agrees that any Lender so purchasing a participation from
another Lender pursuant to this Section 2.14 may, to the fullest extent permitted by law, exercise
all its rights of payment (including the right of set-off) with respect to such participation as
fully as if such Lender were the direct creditor of the Borrower in the amount of such
participation.

          SECTION 2.15. Use of Proceeds. The proceeds of the Revolving Credit Advances shall be
available (and the Borrower agrees that it shall use such proceeds) solely for refinancing Debt of
the Borrower under the Existing Credit Agreement (if any), and for general corporate purposes,
including commercial paper liquidity, of the Borrower and its Subsidiaries.

          SECTION 2.16. Noteless Agreement; Evidence of Indebtedness.

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

     (b) The Agent shall also maintain accounts in which it will record (i) the date and the amount
of each Revolving Credit Advance made hereunder and the Interest Period, if any, applicable
thereto, (ii) the amount of any principal or interest due and payable or to become due and payable
from the Borrower to each Lender hereunder, (iii) the effective date and amount of each Assignment
and Acceptance delivered to and accepted by it and the parties thereto pursuant to Section 8.07,
(iv) the amount of any sum received by the Agent hereunder from the Borrower and each Lender’s
share thereof, and (v) all other appropriate debits and credits as provided in this Agreement,
including, without limitation, all fees, charges, expenses and interest.

     (c) The entries maintained in the accounts maintained pursuant to clauses (a) and (b) above
shall be prima facie evidence of the existence and amounts of the obligations hereunder and under
the Notes therein recorded; provided, however, that the failure of the Agent or any

26

 

Lender to maintain such accounts or any error therein shall not in any manner affect the
obligation of the Borrower to repay such obligations in accordance with their terms.

     (d) Any Lender may request that its Revolving Credit Advances be evidenced by a promissory
note representing its Revolving Credit Advances substantially in the form of Exhibit A
(each, a “Note”). In such event, the Borrower shall prepare, execute and deliver to
such Lender such Note payable to the order of such Lender. Thereafter, the Revolving Credit
Advances evidenced by each such Note and interest thereon shall at all times (including after any
assignment pursuant to Section 8.07) be represented by one or more Notes payable to the order of
the payee named therein or any assignee pursuant to Section 8.07, except to the extent that any
such Lender or assignee subsequently returns any such Note for cancellation and requests that such
Revolving Credit Advances once again be evidenced as described in clauses (a) and (b) above.

          SECTION 2.17. Defaulting Lenders. Notwithstanding any provision of this Agreement to
the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply
for so long as such Lender is a Defaulting Lender:

     (a) fees shall cease to accrue on the unfunded portion of the Commitment of such Defaulting
Lender pursuant to Section 2.03(a);

     (b) the Commitment and Revolving Credit Advances of such Defaulting Lender shall not be
included in determining whether the Required Lenders have taken or may take any action hereunder
(including any consent to any amendment or waiver pursuant to Section 8.01, other than those which
require the consent of all Lenders or of each affected Lender);

     (c) the Borrower may, subject to the requirements of Sections 8.04 and 8.07, substitute for
such Defaulting Lender another financial institution, which financial institution shall be an
Eligible Assignee and shall assume the Commitments of such Defaulting Lender and purchase the
Revolving Credit Advances held by such Defaulting Lender in accordance with Section 8.07;
provided, however, that (i) no Default shall have occurred and be continuing,
(ii) the Borrower shall have satisfied all of its obligations in connection with the Loan Documents
with respect to such Defaulting Lender, and (iii) if such assignee is not a Lender, (A) such
assignee is acceptable to the Agent and (B) the Borrower shall have paid the Agent a $3,000
administrative fee;

     (d) to the extent the Agent receives any payments or other amounts for the account of a
Defaulting Lender, such Defaulting Lender shall be deemed to have requested that the Agent use such
payment or other amount to fulfill such Defaulting Lender’s previously unsatisfied obligations to
fund a Revolving Credit Advance or any other unfunded payment obligation of such Defaulting Lender
under Section 2.02(d), 2.12(e) or 7.05;

     (e) no Lender shall be deemed to have consented to increase its Commitment pursuant to Section
2.04(c) unless that Lender shall have affirmatively given consent in accordance with that Section;
and

27

 

     (f) for the avoidance of doubt, the Borrower shall retain and reserve its other rights and
remedies respecting each Defaulting Lender.

In the event that the Agent and the Borrower each agrees that a Defaulting Lender has adequately
remedied all matters that caused such Lender to be a Defaulting Lender, such Lender shall purchase
at par on a ratable basis such of the Revolving Credit Advances of the other Lenders as the Agent
shall determine may be necessary in order for such Lender to hold such Revolving Credit Advances in
accordance with its Pro Rata Share.

ARTICLE III: CONDITIONS TO EFFECTIVENESS AND LENDING

          SECTION 3.01. Conditions Precedent to Effectiveness of this Agreement. This Agreement
shall become effective on and as of the date hereof (the “Effective Date”),
provided that the following conditions precedent have been satisfied on such date:

     (a) There shall have occurred (i) no Material Adverse Change since December 31, 2008, except
as shall have been disclosed or contemplated in the SEC Reports, and (ii) no material adverse
change in the primary or secondary loan syndication markets or capital markets generally that makes
it impracticable to consummate the transactions contemplated by the Loan Documents.

     (b) The Lenders shall have been given such access, as such Lenders have reasonably requested,
to the management, records, books of account, contracts and properties of the Borrower and its
Significant Subsidiaries as they shall have requested.

     (c) All governmental and third party consents, authorizations and approvals necessary in
connection with the transactions contemplated hereby shall have been obtained (without the
imposition of any conditions that are not acceptable to the Lenders) and shall remain in effect,
and no law or regulation shall be applicable in the reasonable judgment of the Agents that
restrains, prevents or imposes materially adverse conditions upon the transactions contemplated by
the Loan Documents.

     (d) The Borrower shall have notified each Lender and the Agent in writing as to the proposed
Effective Date.

     (e) The Borrower shall have paid all accrued fees and reasonable expenses due and payable to
the Agents, the Lenders and the Arrangers on or prior to the Effective Date, including, to the
extent invoiced, reimbursements or payment of all out-of-pocket expenses required to be reimbursed
or paid by the Borrower hereunder.

     (f) On the Effective Date, the following statements shall be true and the Agent shall have
received for the account of each Lender a certificate, substantially in the form of Exhibit
D hereto, signed on behalf of the Borrower by a duly authorized Financial Officer of the
Borrower, dated the Effective Date, stating, among other things, that:

     (i) The representations and warranties contained in Section 4.01 are correct on and as
of the Effective Date, and

28

 

     (ii) No event has occurred and is continuing that constitutes a Default.

     (g) The Agent shall have received on or before the Effective Date the following, each dated
such day, in form and substance satisfactory to the Agent and (except for any Notes requested by
the Lenders) in sufficient copies for each Lender:

     (i) Counterpart signature pages of this Agreement, executed by each of the parties
hereto.

     (ii) Notes, if any, to the order of each Lender requesting the issuance of a Note as of
the Effective Date pursuant to Section 2.16.

     (iii) Certified copies of the resolutions of the Board of Directors of the Borrower
approving each Loan Document to which it is a party, and of all documents evidencing other
necessary corporate action and governmental approvals, if any, with respect to each Loan
Document to which it is a party.

     (iv) A certificate of the Corporate Secretary or an Assistant Corporate Secretary of
the Borrower certifying the names and true signatures of the officers of the Borrower
authorized to sign each Loan Document to which it is a party and the other documents to be
delivered hereunder or thereunder.

     (v) Favorable opinion letters of Patrick B. Carey, the Associate General Counsel of the
Borrower, and Hunton & Williams LLP, counsel to the Borrower, substantially in the form of
Exhibits E-1 and E-2, respectively, hereto.

     (vi) Evidence satisfactory to the Agent that (A) all loans and letters of credit
outstanding and other fees and amounts owed to the lenders or agents under the Terminating
Agreements have been paid in full (or, in respect of any letters of credit thereunder, (x)
such letters of credit shall have been assigned or transferred to the 2005 Five-Year Credit
Agreement (such that each such letter of credit shall constitute a “Facility LC” thereunder)
or (y) cash collateral or other credit support in respect thereof shall have been
delivered), and (B) the Terminating Agreements have been terminated.

          SECTION 3.02. Conditions Precedent to Each Borrowing. The obligation of each Lender
to make a Revolving Credit Advance on the occasion of each Borrowing shall be subject to the
conditions precedent that the Effective Date shall have occurred and on the date of such Borrowing:
(a) the following statements shall be true (and each of the giving of the applicable Notice of
Borrowing and the acceptance by the Borrower of the proceeds of such Borrowing shall constitute a
representation and warranty by the Borrower that on the date of such Borrowing such statements are
true):

     (i) the representations and warranties contained in Section 4.01 are correct on and as
of the date of such Borrowing, before and after giving effect to such Borrowing and to the
application of the proceeds therefrom, as though made on and as of such date;
provided, that such condition shall not apply to (x) the last sentence of Section
4.01(e) or (y) Section 4.01(f),

29

 

     (ii) after giving effect to the application of the proceeds of all Borrowings on such
date (together with any other resources of the Borrower applied
together therewith), no event has occurred and is continuing, or would result from such Borrowing or from
the application of the proceeds therefrom, that constitutes a Default, and

     (iii) the Borrower has not received notice from the Agent on or prior to the date of
such Borrowing that a mandatory prepayment is required under Section 2.09(b) (other than any
such notice that has been withdrawn in writing by the Agent);

and (b) the Agent shall have received such other approvals, opinions or documents as any Lender
through the Agent may reasonably request.

          SECTION 3.03. Determinations Under Section 3.01. For purposes of determining
compliance with the conditions specified in Section 3.01, each Lender 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 the Lenders unless an
officer of the Agent responsible for the transactions contemplated by this Agreement shall have
received notice from such Lender prior to the date that the Borrower, by notice to the Lenders,
designates as the proposed Effective Date, specifying its objection thereto. The Agent shall
promptly notify the Lenders of the occurrence of the Effective Date.

ARTICLE IV: REPRESENTATIONS AND WARRANTIES

          SECTION 4.01. Representations and Warranties of the Borrower. The Borrower represents
and warrants as follows:

     (a) The Borrower is a corporation duly organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation.

     (b) The execution, delivery and performance by the Borrower of the Loan Documents to which it
is a party, and the consummation of the transactions contemplated hereby and thereby, are within
the Borrower’s corporate powers, have been duly authorized by all necessary corporate action, and
do not contravene (i) the Borrower’s charter or by-laws or (ii) law or any contractual restriction
binding on or affecting the Borrower.

     (c) No consent, authorization or approval or other action by, and no notice to or filing with,
any Governmental Authority or regulatory body or any other third party is required for the due
execution, delivery and performance by the Borrower of any Loan Document to which it is a party.

     (d) This Agreement has been, and each of the Notes when delivered hereunder will have been,
duly executed and delivered by the Borrower. This Agreement is, and each of the Notes when
delivered hereunder will be, the legal, valid and binding obligation of the Borrower enforceable
against the Borrower in accordance with their respective terms, subject to the effect of any
applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors
rights generally.

30

 

     (e) The Audited Statements of the Borrower, DECO and MichCon, copies of each of which have
been furnished to each Lender, fairly present, in all material respects, the Consolidated financial
condition, results of operations and cash flows of the relevant Persons and
entities, as at the dates and for the periods therein indicated, all in accordance with
generally accepted accounting principles consistently applied as in effect on the date of such
Audited Statements. Since December 31, 2008, there has been no Material Adverse Change, except as
shall have been disclosed or contemplated in the SEC Reports.

     (f) There is no pending or threatened action, suit, investigation, litigation or proceeding,
including, without limitation, any Environmental Action, affecting the Borrower or any of its
Significant Subsidiaries before any court, governmental agency or arbitrator that (i) could be
reasonably likely to have a Material Adverse Effect other than the matters disclosed or
contemplated in the SEC Reports (the “Disclosed Litigation”) or (ii) purports to affect the
legality, validity or enforceability of any Loan Document or the consummation of the transactions
contemplated hereby, and there has been no adverse change in the status or financial effect on the
Borrower or any of its Significant Subsidiaries, of the Disclosed Litigation from that disclosed or
contemplated in the SEC Reports that could be reasonably likely to have a Material Adverse Effect.

     (g) The operations and properties of the Borrower and each of the Significant Subsidiaries
comply in all material respects with all applicable Environmental Laws and Environmental Permits,
all past non-compliance with such Environmental Laws and Environmental Permits has been resolved
without ongoing material obligations or costs, except as disclosed or contemplated in the SEC
Reports, and no circumstances exist that could be reasonably likely to (i) form the basis of an
Environmental Action against the Borrower or any of the Significant Subsidiaries or any of their
properties that could have a Material Adverse Effect or (ii) cause any such property to be subject
to any restrictions on ownership, occupancy, use or transferability under any Environmental Law
that could have a Material Adverse Effect.

     (h) No ERISA Event has occurred or is reasonably expected to occur with respect to any Plan.

     (i) Schedule B (Actuarial Information) to the most recent annual report (Form 5500 Series) for
each Plan, copies of which have been filed with the Internal Revenue Service, is complete and
accurate and fairly presents the funding status of such Plan, and since the date of such Schedule B
there has been no material adverse change in such funding status.

     (j) Neither the Borrower nor any ERISA Affiliate has incurred or is reasonably expected to
incur any Withdrawal Liability to any Multiemployer Plan.

     (k) Neither the Borrower nor any ERISA Affiliate has been notified by the sponsor of a
Multiemployer Plan that such Multiemployer Plan is in reorganization or has been terminated, within
the meaning of Title IV of ERISA, and no such Multiemployer Plan is reasonably expected to be in
reorganization or to be terminated, within the meaning of Title IV of ERISA.

     (l) Except as set forth in the financial statements referred to in subsection (e) above, the
Borrower and its Subsidiaries have no material liability with respect to “expected post

31

 

retirement
benefit obligations” within the meaning of Statement of Financial Accounting Standards No. 106.

     (m) The Borrower is not engaged in the business of extending credit for the purpose of
purchasing or carrying margin stock (within the meaning of Regulation U issued by the Board of
Governors of the Federal Reserve System), and no proceeds of any Revolving Credit Advance will be
used to purchase or carry any margin stock or to extend credit to others for the purpose of
purchasing or carrying any margin stock; and after applying the proceeds of each Revolving Credit
Advance hereunder, margin stock (within the meaning of Regulation U issued by the Board of
Governors of the Federal Reserve System) constitutes less than twenty-five percent (25%) of the
value of those assets of the Borrower and its Subsidiaries which are subject to any limitation on
sale or pledge, or any other restriction hereunder.

     (n) Neither the Borrower nor any of its Subsidiaries is, or after the making of any Revolving
Credit Advance or the application of the proceeds or repayment thereof, or the consummation of any
of the other transactions contemplated hereby, will be, required to be registered as an “investment
company”, or an “affiliated person” of, or “promoter” or “principal underwriter” for, an
“investment company” (within the meaning of the Investment Company Act of 1940, as amended).

     (o) Neither the Borrower nor any Subsidiary of the Borrower (i) is a person named on the list
of “Specially Designated Nationals” or “Blocked Persons” maintained by The Office of Foreign Assets
Control of the United States Department of the Treasury (the “OFAC”) available at
http://www.treas.gov/offices/enforcement/ofac/sdn/index.html, or as otherwise published from time
to time; or (ii) is (x) an agency of the government of a country, (y) an organization controlled by
a country, or (z) a person resident in a country that is subject to a sanctions program identified
on the list maintained by the OFAC and available at
http://www.treas.gov/offices/enforcement/ofac/sanctions/index.html, or as otherwise published from
time to time, as such program may be applicable to such agency, organization or person; or (iii)
derives more than 10% of its assets or operating income from investments in or transactions with
any such country, agency, organization or person.  Neither the Borrower nor any Subsidiary of the
Borrower will use the proceeds of the Revolving Credit Advances to finance any operations,
investments or activities in, or make any payments to, any such country, agency, organization, or
person.

     (p) Neither the Borrower nor any Subsidiary of the Borrower (i) is under investigation by any
Governmental Authority for, or has been charged with, or convicted of, money laundering, drug
trafficking, terrorist-related activities, or any violation under any laws or regulations relating
to money laundering or terrorist financing, including the Bank Secrecy Act, 31 U.S.C. §§5311 et.
seq. (the “Anti-Money Laundering Laws”), (ii) has been assessed civil penalties under any
Anti-Money Laundering Laws, or (iii) has had any of its funds seized or forfeited in an action
under any Anti-Money Laundering Laws.

32

 

ARTICLE V: COVENANTS OF THE BORROWER

          SECTION 5.01. Affirmative Covenants. So long as any Revolving Credit Advance shall
remain unpaid or any Lender shall have any Commitment hereunder, the Borrower will:

     (a) Compliance with Laws, Etc. Comply, and cause each of its Subsidiaries to comply
with all applicable laws, rules, regulations and orders, such compliance to include, without
limitation, compliance with ERISA and Environmental Laws, except where the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

     (b) Payment of Taxes, Etc. Pay and discharge, and cause each of its Subsidiaries to
pay and discharge, before the same shall become delinquent, all taxes, assessments and governmental
charges or levies imposed upon it or upon its property that, if not paid, could be reasonably
expected to result in a Material Adverse Effect; provided, however, that neither
the Borrower nor any of its Subsidiaries shall be required to pay or discharge any such tax,
assessment, charge or claim that is being contested in good faith and by proper proceedings and as
to which appropriate reserves are being maintained, unless and until any Lien resulting therefrom
attaches to its property and becomes enforceable against its other creditors.

     (c) Maintenance of Insurance. Maintain, and cause each of its Subsidiaries to
maintain, insurance with responsible and reputable insurance companies or associations in such
amounts and covering such risks as is usually carried by companies engaged in similar businesses
and owning similar properties (including customary self-insurance) in the same general areas in
which the Borrower or such Subsidiary operates.

     (d) Preservation of Corporate Existence, Etc. Preserve and maintain its corporate
existence, rights (charter and statutory) and franchises; provided, however, that
the Borrower shall not be required to preserve any right or franchise if the Board of Directors of
the Borrower or such Subsidiary shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Borrower and that the loss thereof is not
disadvantageous in any material respect to the Borrower and its Subsidiaries taken as a whole or
the ability of the Borrower to meet its obligations hereunder.

     (e) Visitation Rights. At any reasonable time and from time to time, permit the Agent
or any of the Lenders or any agents or representatives thereof, to examine and make copies of and
abstracts from the records and books of account of, and visit the properties of, the Borrower and
any of its Significant Subsidiaries, and to discuss the affairs, finances and accounts of the
Borrower and any of its Significant Subsidiaries with any of their officers or directors and with
their independent certified public accountants.

     (f) Keeping of Books. Keep, and cause each of its Significant Subsidiaries to keep,
proper books of record and account, in which full and correct entries shall be made of all
financial transactions and the assets and business of the Borrower and each such Subsidiary in
accordance with generally accepted accounting principles in effect from time to time.

33

 

     (g) Maintenance of Properties, Etc. Subject to clause (d) above, maintain and
preserve, and cause each of its Significant Subsidiaries to maintain and preserve, all of their
respective properties that are used or useful in the conduct of their respective businesses in good
working order and condition, ordinary wear and tear excepted.

     (h) Reporting Requirements. Furnish to the Lenders:

     (i) as soon as available and in any event within 65 days after the end of each of the
first three quarters of each fiscal year of the Borrower, Consolidated balance sheet of the
Borrower and its Consolidated Subsidiaries as of the end of such quarter and Consolidated
statements of income and cash flows of the Borrower and its Subsidiaries for the period
commencing at the end of the previous fiscal year and ending with the end of such quarter;

     (ii) as soon as available and in any event within 115 days after the end of each fiscal
year of the Borrower, a copy of the annual report to Shareholders for such year for the
Borrower and its Consolidated Subsidiaries, containing the Consolidated balance sheet of the
Borrower and its Consolidated Subsidiaries as of the end of such fiscal year and
Consolidated statements of income and cash flows of the Borrower and its Subsidiaries for
such fiscal year, in each case accompanied by an opinion by PricewaterhouseCoopers LLP or
any other independent public accounting firms which (x) as of the date of this Agreement is
one of the “big four” accounting firms or (y) is reasonably acceptable to the Required
Lenders;

     (iii) together with the financial statements required under clauses (i) or (ii) above,
a compliance certificate in substantially the form of Exhibit F signed by a
Financial Officer of the Borrower showing the then current information and calculations
necessary to determine the Applicable Margin and the Applicable Percentage and compliance
with this Agreement and stating that no Event of Default or Default exists, or if any Event
of Default or Default exists, stating the nature and status thereof;

     (iv) as soon as possible and in any event within five days after the occurrence of each
Default continuing on the date of such statement, a statement of a Financial Officer of the
Borrower setting forth details of such Default and the action that the Borrower has taken
and proposes to take with respect thereto;

     (v) reasonably promptly after the sending or filing thereof copies of all reports and
registration statements that the Borrower or any Subsidiary filed with the Securities and
Exchange Commission or any national securities exchange; and

     (vi) such other information respecting the Borrower or any of its Subsidiaries as any
Lender through the Agent may from time to time reasonably request.

     Information required to be delivered pursuant to clauses (i), (ii) or (v) above shall be
deemed to have been delivered on the date on which the Borrower has posted such information on the
Borrower’s website on the Internet at www.dteenergy.com (or any successor or replacement website
thereof), which website includes an option to subscribe to a free service

34

 

alerting subscribers by
email of new Securities and Exchange Commission filings at
http://phx.corporate-ir.net/phoenix.zhtml?c=68233&p=irol-alerts, or at www.sec.gov or at another
website identified in a notice to the Lenders and accessible by the Lenders without charge.

          SECTION 5.02. Negative Covenants. At all times on and after the Effective Date so
long as any Revolving Credit Advance shall remain unpaid or any Lender shall have any Commitment
hereunder, the Borrower will not:

     (a) Liens, Etc. Create or suffer to exist, or permit any Significant Subsidiary to
create or suffer to exist, any Lien on or with respect to any shares of any class of equity
securities (including, without limitation, Voting Stock) of any Significant Subsidiary, whether
such shares are now owned or hereafter acquired.

     (b) Debt. Create, incur, assume or suffer to exist any Debt except (i) Debt that is
expressly or effectively pari passu with or expressly subordinated to the Debt of the Borrower
hereunder, (ii) Nonrecourse Debt or (iii) other Debt incurred in the ordinary course of the
Borrower’s business up to an aggregate amount of $50,000,000.

     (c) Mergers, Etc. Merge or consolidate with or into, or convey, transfer, lease or
otherwise 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, any Person, or permit
any Significant Subsidiary to do so, except that (i) any Significant Subsidiary may merge or
consolidate with or into any other Significant Subsidiary, (ii) any Significant Subsidiary may
merge into or dispose of assets to the Borrower, and (iii) the Borrower may merge or consolidate
with or into any other Person so long as the Borrower shall be the surviving entity and has, after
giving effect to such merger or consolidation, senior unsecured Debt outstanding rated at least
BBB- by S&P and Baa3 by Moody’s; provided, in each case, that no Default shall have
occurred and be continuing at the time of such proposed transaction or would result therefrom.

     (d) Change in Nature of Business. Make, or permit any of its Significant Subsidiaries
(including Enterprises and MichCon) to make, any material change in the nature of its business as
carried on the date hereof, other than as disclosed or contemplated in the SEC Reports.

     (e) Accounting Changes. Make or permit any change in accounting policies or reporting
practices, except as required or permitted by generally accepted accounting principles; or permit
any of its Subsidiaries to make or permit any change in accounting policies or reporting practices
if, as a result of such change, the Borrower shall fail to maintain a system of accounting
established and administered in accordance with generally accepted accounting principles.

ARTICLE VI: EVENTS OF DEFAULT

          SECTION 6.01. Events of Default. If any of the following events (“Events of
Default”) shall occur and be continuing:

     (a) The Borrower shall fail to pay any principal of any Revolving Credit Advance when the same
becomes due and payable; or the Borrower shall fail to pay any interest on any

35

 

Revolving Credit
Advance or make any other payment of fees or other amounts payable under this Agreement or any Note
within three Business Days after the same becomes due and payable; or

     (b) Any representation or warranty made by the Borrower herein, by the Borrower (or any of its
officers) in connection with this Agreement shall prove to have been incorrect in any material
respect when made; or

     (c) (i) The Borrower shall fail to perform or observe any term, covenant or agreement
contained in Section 2.09(b), 5.01(d), (e) or (h) or 5.02, or (ii) the Borrower shall fail to
perform or observe any other term, covenant or agreement contained in any Loan Document on its part
to be performed or observed if such failure shall remain unremedied for 30 days after written
notice thereof shall have been given to the Borrower by the Agent or any Lender; or

     (d) The Borrower or any of its Significant Subsidiaries shall fail to pay any principal of or
premium or interest on any Debt that is outstanding in a principal or notional amount of at least
$50,000,000 in the aggregate (but excluding Debt outstanding hereunder and Nonrecourse Debt) of the
Borrower or such Significant Subsidiary (as the case may be), when the same becomes due and payable
(whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such
failure shall continue after the applicable grace period, if any, specified in the agreement or
instrument relating to such Debt; or any other event shall occur or condition shall exist under any
agreement or instrument relating to any such Debt and shall continue after the applicable grace
period, if any, specified in such agreement or instrument, if the effect of such event or condition
is to accelerate, or to permit the acceleration of, the maturity of such Debt; or any such Debt
shall be declared to be due and payable, or required to be prepaid or redeemed (other than by a
regularly scheduled required prepayment or redemption), purchased or defeased, or an offer to
prepay, redeem, purchase or defease such Debt shall be required to be made, in each case prior to
the stated maturity thereof; or

     (e) The Borrower or any of its Significant Subsidiaries shall generally not pay its debts as
such debts become due, or shall admit in writing its inability to pay its debts generally, or shall
make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or
against the Borrower or any of its Significant Subsidiaries seeking to adjudicate it a bankrupt or
insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection,
relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment
of a receiver, trustee, custodian or other similar official for it or for any substantial part of
its property and, in the case of any such proceeding instituted against it (but not instituted by
it), either such proceeding shall remain undismissed or unstayed for a period of 60 days, or any of
the actions sought in such proceeding (including, without limitation, the entry of an order for
relief against, or the appointment of a receiver, trustee, custodian or other similar official for,
it or for any substantial part of its property) shall occur; or the Borrower or any of its
Significant Subsidiaries shall take any corporate action to authorize any of the actions set forth
above in this subsection (e); or

     (f) Any judgment or order for the payment of money, individually or in the aggregate, in
excess of $50,000,000 shall be rendered against the Borrower or any of its

36

 

Significant Subsidiaries
and either (i) enforcement proceedings shall have been commenced by any creditor upon such judgment
or order or (ii) there shall be any period of 30 consecutive days during which a stay of
enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in
effect; or

     (g) The Borrower shall at any time cease to hold directly or indirectly 100% of the Voting
Stock of DECO and MichCon; or

     (h) The Borrower or any of its ERISA Affiliates shall incur, or, in the reasonable opinion of
the Required Lenders, shall be reasonably likely to incur liability in excess of $50,000,000
individually or in the aggregate as a result of one or more of the following: (i) the occurrence
of any ERISA Event; (ii) the partial or complete withdrawal of the Borrower or any of its ERISA
Affiliates from a Multiemployer Plan; or (iii) the reorganization or termination of a Multiemployer
Plan; or

     (i) The Borrower and its Subsidiaries, on a Consolidated basis, shall, as of the last day of
any fiscal quarter of the Borrower, have a ratio of (a) Total Funded Debt to (b) Capitalization in
excess of .65:1; provided that for purposes of calculating the foregoing ratio as of the
last day of any fiscal quarter other than any fiscal quarter ending on June 30, “Total Funded
Debt” for purposes of clauses (a) and (b) above shall be calculated exclusive
of all Excluded Short-Term Debt outstanding as of such date; or

     (j) Any provision of any of the Loan Documents after delivery thereof pursuant to Section 3.01
shall for any reason cease to be valid and binding on or enforceable against the Borrower, or the
Borrower shall so state in writing; or

     (k) Any “Event of Default” shall have occurred and be continuing under (and as defined in) the
2005 Five-Year Agreement;

then, and in any such event, the Agent (i) shall at the request, or may with the consent, of the
Required Lenders, by notice to the Borrower, declare the obligation of each Lender to make
Revolving Credit Advances to be terminated, whereupon the same shall forthwith terminate, and
(ii) shall at the request, or may with the consent, of the Required Lenders, by notice to the
Borrower, declare the Revolving Credit Advances, all interest thereon and all other amounts payable
under this Agreement to be forthwith due and payable, whereupon the Revolving Credit Advances, all
such interest and all such amounts shall become and be forthwith due and payable, without
presentment, demand, protest or further notice of any kind, all of which are hereby expressly
waived by the Borrower; provided, however, that in the event of an actual or deemed
entry of an order for relief with respect to the Borrower under the Federal Bankruptcy Code,
(A) the obligation of each Lender to make Revolving Credit Advances shall automatically be
terminated, and (B) the Revolving Credit Advances, all such interest and all such amounts shall
automatically become and be due and payable, without presentment, demand, protest or any notice of
any kind, all of which are hereby expressly waived by the Borrower.

37

 

ARTICLE VII: THE AGENT

          SECTION 7.01. Authorization and Action. Each Lender hereby appoints and authorizes
the Agent to take such action as agent on its behalf and to exercise such powers and discretion
under this Agreement as are delegated to the Agent by the terms hereof, together with such powers
and discretion as are reasonably incidental thereto. As to any matters not expressly provided for
by this Agreement (including, without limitation, enforcement or collection of the Revolving Credit
Advances), the Agent shall not be required to exercise any
discretion or take any action, but shall be required to act or to refrain from acting (and
shall be fully protected in so acting or refraining from acting) upon the instructions of the
Required Lenders (or all of the Lenders to the extent required by the terms of this Agreement), and
such instructions shall be binding upon all Lenders and all holders of Revolving Credit Advances;
provided, however, that the Agent shall not be required to take any action that
exposes the Agent to personal liability or that is contrary to this Agreement or applicable law.
The Agent agrees to give to each Lender prompt notice of each notice given to it by the Borrower
pursuant to the terms of this Agreement.

          SECTION 7.02. Agent’s Reliance, Etc. Neither the Agent nor any of its directors,
officers, agents or employees shall be liable for any action taken or omitted to be taken by it or
them under or in connection with this Agreement, except for its or their own gross negligence or
willful misconduct. Without limitation of the generality of the foregoing, the Agent: (i) may
treat the payee in respect of any Revolving Credit Advance as the owner thereof until the Agent
receives and accepts an Assignment and Acceptance entered into by the Lender that is the payee in
respect of such Revolving Credit Advance, as assignor, and an Eligible Assignee, as assignee, as
provided in Section 8.07; (ii) may consult with legal counsel (including counsel for the Borrower),
independent public accountants and other experts selected by it and shall not be liable for any
action taken or omitted to be taken in good faith by it in accordance with the advice of such
counsel, accountants or experts; (iii) makes no warranty or representation to any Lender and shall
not be responsible to any Lender for any statements, warranties or representations (whether written
or oral) made in or in connection with this Agreement; (iv) shall not have any duty to ascertain or
to inquire as to the performance or observance of any of the terms, covenants or conditions of this
Agreement on the part of the Borrower or to inspect the property (including the books and records)
of the Borrower; (v) shall not be responsible to any Lender for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of, or the perfection or priority of
any lien or security interest created or purported to be created under or in connection with, any
Loan Document or any other instrument or document furnished pursuant hereto; and (vi) shall incur
no liability under or in respect of this Agreement by acting upon any notice, consent, certificate
or other instrument or writing (which may be by telecopier, telegram or telex) believed by it to be
genuine and signed or sent by the proper party or parties.

          SECTION 7.03. Citibank and Affiliates. With respect to its Commitment, the Revolving
Credit Advances made by it and any Note issued to it, Citibank shall have the same rights and
powers under this Agreement as any other Lender and may exercise the same as though it were not the
Agent; and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include
Citibank in its individual capacity. Citibank and its Affiliates may accept deposits from, lend
money to, act as trustee under indentures of, accept investment banking engagements from and
generally engage in any kind of business with, the Borrower, any

38

 

of its Subsidiaries and any Person
who may do business with or own securities of the Borrower or any such Subsidiary, all as if
Citibank were not the Agent and without any duty to account therefor to the Lenders.

          SECTION 7.04. Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Agent or any other Lender and based on the financial
statements referred to in Section 4.01 and such other documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this Agreement.
Each Lender also acknowledges that it will, independently and without reliance upon the Agent
or any other Lender and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action under this
Agreement.

          SECTION 7.05. Indemnification. The Lenders agree to indemnify the Agent (to the
extent not reimbursed by the Borrower), solely in its capacity as Agent hereunder, ratably
according to the respective principal amounts of their respective Revolving Credit Advances (or if
no Revolving Credit Advances are at the time outstanding or if any Revolving Credit Advances are
owing to Persons that are not Lenders, ratably according to the respective amounts of their
Commitments), from and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever that
may be imposed on, incurred by, or asserted against the Agent in any way relating to or arising out
of any Loan Document or any action taken or omitted by the Agent under any Loan Document,
provided that no Lender shall be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting
from the Agent’s gross negligence or willful misconduct. Without limitation of the foregoing, each
Lender agrees to reimburse the Agent promptly upon demand for its ratable share of any
out-of-pocket expenses (including reasonable counsel fees) incurred by the Agent, solely in its
capacity as Agent hereunder, in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, any
Loan Document, to the extent that the Agent is not reimbursed for such expenses by the Borrower.

          SECTION 7.06. Successor Agent. The Agent may resign at any time by giving written
notice thereof to the Lenders and the Borrower and may be removed at any time with or without cause
by the Required Lenders. Upon any such resignation or removal, the Required Lenders shall have the
right to appoint a successor Agent. If no successor Agent shall have been so appointed by the
Required Lenders, and shall have accepted such appointment, within 30 days after the retiring
Agent’s giving of notice of resignation or the Required Lenders’ removal of the retiring Agent,
then the retiring Agent may, on behalf of the Lenders, appoint a successor Agent, which shall be a
commercial bank organized under the laws of the United States of America or of any State thereof
and having a combined capital and surplus of at least $500,000,000. Upon the acceptance of any
appointment as Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed
to and become vested with all the rights, powers, discretion, privileges and duties of the retiring
Agent, and the retiring Agent shall be discharged from its duties and obligations under this
Agreement. After any retiring Agent’s resignation or removal hereunder as Agent, the provisions of
this Article VII shall inure to its

39

 

benefit as to any actions taken or omitted to be taken by it
while it was Agent under this Agreement.

          SECTION 7.07. Co-Syndication Agents and Documentation Agent. None of the Lenders
identified in this Agreement as a Co-Syndication Agent or a Documentation Agent shall have any
right, power, obligation, liability, responsibility or duty under this Agreement other than those
applicable to all Lenders as such. Without limiting the foregoing, none of such Lenders shall have
or be deemed to have a fiduciary relationship with any Lender.
Each Lender hereby makes the same acknowledgments with respect to such Lenders as it makes
with respect to the Agent in Section 7.04.

ARTICLE VIII: MISCELLANEOUS

          SECTION 8.01. Amendments, Etc. No amendment or waiver of any provision of this
Agreement or the Notes, nor consent to any departure by the Borrower therefrom, shall in any event
be effective unless the same shall be in writing and signed by the Required Lenders, and then such
waiver or consent shall be effective only in the specific instance and for the specific purpose for
which given; provided, however, that no amendment, waiver or consent shall, unless
in writing and signed by all the Lenders affected thereby, do any of the following: (a) waive any
of the conditions specified in Section 3.01, (b) increase the Commitments of the Lenders or subject
the Lenders to any additional obligations, (c) reduce the principal of, or rate of interest on, the
Revolving Credit Advances or any fees or other amounts payable hereunder, (d) postpone any date
fixed for any payment of principal of, or interest on, the Revolving Credit Advances or any fees or
other amounts payable hereunder, (e) change the percentage of the Commitments or of the aggregate
unpaid principal amount of the Revolving Credit Advances, or the number of Lenders, that shall be
required for the Lenders or any of them to take or approve any action hereunder (including, without
limitation, amending the definition of “Required Lenders”), (f) alter the manner in which payments
or prepayments of principal, interest or other amounts hereunder shall be applied or shared as
among the Lenders or Types of Revolving Credit Advances, (g) amend any provisions hereunder
relating to the pro rata treatment of the Lenders, or (h) amend this Section 8.01; and
provided further that no amendment, waiver or consent shall, unless in writing and
signed by the Agent in addition to the Lenders required above to take such action, affect the
rights or duties of the Agent under this Agreement or any Note; and provided
further that no amendments, consents or waivers are required to effectuate the increases in
Commitments pursuant to Section 2.04(c) except as provided in such Section.

          SECTION 8.02. Notices, Etc.

     (a) All notices and other communications provided for hereunder shall be in writing or
confirmed in writing (including telecopier communication) and mailed, telecopied or delivered, if
to the Borrower, at its address at One Energy Plaza, Detroit, MI 48226, Attention: Treasurer; if
to any Lender, at its Domestic Lending Office; and if to the Agent, at its address at Two Penns
Way, Suite 200, New Castle, Delaware 19720, Attention: Charles Huester, with a copy to J. Nicholas
McKee, 388 Greenwich Street, New York, New York 10013; or, as to the Borrower or the Agent, at such
other address as shall be designated

40

 

by such party in a written notice to the other parties and, as
to each other party, at such other address as shall be designated by such party in a written notice
to the Borrower and the Agent. All such notices and communications shall, when mailed or
telecopied be effective when deposited in the mails or telecopied, respectively, except that
notices and communications to the Agent pursuant to Article II, III or VII shall not be effective
until received by the Agent. Delivery by telecopier of an executed counterpart of any amendment or
waiver of any provision of this Agreement or the Notes or of any Exhibit hereto to be executed and
delivered hereunder shall be effective as delivery of a manually executed counterpart thereof.

     (b) (i) Except as otherwise provided in Section 5.01(h), the Borrower shall provide to the
Agent all information, documents and other materials that it is obligated to furnish to the Agent
pursuant to this Agreement and the other Loan Documents, including, without limitation, all
notices, requests, financial statements, financial and other reports, certificates and other
information materials, but excluding any such communication that (i) relates to a Notice of
Borrowing or other request for a new, or a conversion of an existing, Borrowing or other extension
of credit (including any election of an interest rate or Interest Period relating thereto),
(ii) relates to the payment of any principal or other amount due hereunder prior to the scheduled
date therefor, (iii) provides notice of any Default or Event of Default hereunder or (iv) is
required to be delivered to satisfy any condition precedent to the effectiveness of this Agreement
and/or any Borrowing or other extension of credit hereunder (all such non-excluded communications
being referred to herein collectively as “Communications”), by transmitting the
Communications in an electronic/soft medium in a format acceptable to the Agent to
oploanswebadmin@citigroup.com, or such other electronic mail address as the Agent shall identify to
the Borrower. In addition, the Borrower shall continue to provide the Communications to the Agent
in the manner specified in this Agreement but only to the extent requested by the Agent. The
Borrower further agrees that the Agent may make the Communications available to the Lenders by
posting the Communications on Intralinks, or a substantially similar electronic transmission system
mutually agreeable to the Agent and the Borrower (the “Platform”). Nothing in this Section
8.02(b) shall prejudice the right of the Agent or any Lender to give any notice or other
communication pursuant hereto or to any other Loan Document in any other manner specified herein or
therein.

          (ii) The Agent agrees that the receipt of the Communications by the Agent at its e-mail
address set forth in clause (i) above shall constitute effective delivery of the Communications to
the Agent for purposes of each Loan Document. The Borrower agrees that e-mail notice to it (at the
address provided pursuant to the next sentence and deemed delivered as provided in subclause
(iii) below) specifying that Communications have been posted to the Platform shall constitute
effective delivery of such Communications to it for purposes of the Loan Documents. The Borrower
agrees (A) to notify the Agent in writing (including by electronic communication) from time to time
to ensure that the Agent has on record an effective e-mail address for the Borrower to which the
foregoing notices may be sent by electronic transmission and (B) that the foregoing notices may be
sent to such e-mail address. Each Lender agrees that e-mail notice to it (at the address provided
pursuant to the next sentence and deemed delivered as provided in subclause (iii) below) specifying
that the Communications have been posted to the Platform shall constitute effective delivery of the
Communications to such Lender for purposes of the Loan Documents. Each Lender agrees (A) to notify
the Agent in writing (including by electronic communication) from time to time of such Lender’s
e-mail address to

41

 

which the foregoing notice may be sent by electronic transmission and (B) that the foregoing notice
may be sent to such e-mail address.

          (iii) Each party hereto agrees that any electronic communication referred to in this clause
(b) shall be deemed delivered upon the posting of a record of such Communication as “sent” in the
e-mail system of the sending party or, in the case of any such Communication to the Agent, upon the
posting of a record of such Communication as “received” in the e-mail system of the Agent;
provided, however, that if such Communication is received by the Agent after the
normal business hours of the Agent, such Communication shall be deemed delivered at the opening of
business on the next Business Day for the Agent; provided, further, that in the
event that the Agent’s e-mail system shall be unavailable for receipt of any Communication,
Borrower may deliver such Communication to the Agent in a manner mutually agreeable to the Agent
and the Borrower.

          (iv) The parties hereto acknowledge and agree that the distribution of the Communications and
other material through an electronic medium is not necessarily secure and that there are
confidentiality and other risks associated with such distribution. EACH OF THE PARTIES HERETO
ACKNOWLEDGES AND AGREES AS FOLLOWS: (A) THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”; (B)
THE AGENT PARTIES DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE
ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE
COMMUNICATIONS; (C) NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT
LIMITATION, 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 THE AGENT PARTIES IN
CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM; AND (D) IN NO EVENT SHALL THE AGENT OR ANY OF
ITS AFFILIATES OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR
REPRESENTATIVES (COLLECTIVELY, THE “AGENT PARTIES”) HAVE ANY LIABILITY TO THE BORROWER, ANY
LENDER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING, WITHOUT LIMITATION, DIRECT
OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT,
CONTRACT OR OTHERWISE) ARISING OUT OF THE BORROWER’S OR THE AGENT’S TRANSMISSION OF COMMUNICATIONS
THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND IN A FINAL
NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED PRIMARILY FROM SUCH
AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

          (v) This clause (b) shall terminate on the date that neither Citibank nor any of its
Affiliates is the Agent under this Agreement.

          SECTION 8.03. No Waiver; Remedies. No failure on the part of any Lender or the Agent
to exercise, and no delay in exercising, any right hereunder or under any Note shall operate as a
waiver thereof; nor shall any single or partial exercise of any such right

42

 

preclude any other or further exercise thereof or the exercise of any other right. The
remedies herein provided are cumulative and not exclusive of any remedies provided by law.

          SECTION 8.04. Costs and Expenses. (a) The Borrower agrees to pay on demand, upon
presentation of a statement of account and absent manifest error, all reasonable costs and
reasonable expenses of the Agent in connection with the preparation, execution, delivery,
administration, modification and amendment of the Loan Document and the other documents to be
delivered hereunder and thereunder, including, without limitation, (A) all due diligence,
syndication (including printing, distribution and bank meetings), transportation, computer,
duplication, appraisal, consultant, and audit expenses and (B) the reasonable fees and reasonable
expenses of counsel for the Agent with respect thereto and with respect to advising the Agent as to
its rights and responsibilities under the Loan Documents. The Borrower further agrees to pay on
demand all reasonable costs and reasonable expenses of the Agent and the Lenders, if any
(including, without limitation, reasonable internal and external counsel fees and expenses,
provided such fees and expenses are not duplicative), in connection with the “workout”,
restructuring or enforcement (whether through negotiations, legal proceedings or otherwise) of the
Loan Documents and the other documents to be delivered hereunder, including, without limitation,
reasonable fees and expenses of counsel for the Agent and each Lender in connection with the
enforcement of rights under this Section 8.04(a).

     (b) The Borrower agrees to indemnify, to the extent legally permissible, and hold harmless the
Agent and each Lender and each of their Affiliates and their officers, directors, employees, agents
and advisors (each, an “Indemnified Party”) from and against any and all claims, damages,
losses, liabilities and expenses (including, without limitation, reasonable fees and expenses of
counsel) that may be incurred by or asserted or awarded against any Indemnified Party, in each case
arising out of or in connection with or by reason of, or in connection with the preparation for a
defense of, any investigation, litigation or proceeding arising out of, related to or in connection
with (i) the Loan Documents, any of the transactions contemplated herein or therein or the actual
or proposed use of the proceeds of the Revolving Credit Advances or (ii) the actual or alleged
presence of Hazardous Materials on any property of the Borrower or any of its Subsidiaries or any
Environmental Action relating in any way to the Borrower or any of its Subsidiaries, in each case
whether or not such investigation, litigation or proceeding is brought by the Borrower, its
directors, shareholders or creditors or an Indemnified Party or any other Person or any Indemnified
Party is otherwise a party thereto and whether or not the transactions contemplated hereby are
consummated, except to the extent such claim, damage, loss, liability or expense is found in a
final, non-appealable judgment by a court of competent jurisdiction to have resulted from such
Indemnified Party’s gross negligence or willful misconduct; provided that upon receipt of
notice of any such matter by a representative of the Agent or any Lender, as applicable, having
primary responsibility for the relationship between the Borrower and the Agent or such Lender, as
applicable, the Agent or such Lender, as applicable, shall promptly notify the Borrower to the
extent permitted by applicable law. The Borrower shall have no liability for any settlement
effected without its prior written consent, which consent shall not be unreasonably withheld or
delayed. The Borrower also agrees not to assert any claim against the Agent, any Lender, any of
their Affiliates, or any of their respective directors, officers, employees, attorneys and agents,
on any theory of liability, for special, indirect, consequential or punitive damages arising out of
or otherwise relating to the Loan Documents, any of the

43

 

transactions contemplated herein or therein or the actual or proposed use of the proceeds of
the Revolving Credit Advances.

     (c) If any payment of principal of, or Conversion of, any Eurodollar Rate Advance is made by
the Borrower to or for the account of a Lender other than on the last day of the Interest Period
for such Revolving Credit Advance, as a result of a payment or Conversion pursuant to Section
2.07(d) or (e), 2.09 or 2.11(a), acceleration of the maturity of the Revolving Credit Advances
pursuant to Section 6.01, or for any other reason, the Borrower shall, upon demand by such Lender
(with a copy of such demand to the Agent), pay to the Agent for the account of such Lender any
amounts required to compensate such Lender for any additional losses, costs or expenses that it may
reasonably incur as a result of such payment or Conversion, including, without limitation, any loss
(including loss of anticipated profits), cost or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by any Lender to fund or maintain such Revolving
Credit Advance.

     (d) Without prejudice to the survival of any other agreement of the Borrower hereunder, the
agreements and obligations of the Borrower contained in Sections 2.10, 2.13 and 8.04 shall survive
the payment in full of principal, interest and all other amounts payable hereunder and under the
Notes.

          SECTION 8.05. Right of Set-off. Upon (i) the occurrence and during the continuance of
any Event of Default and (ii) the making of the request or the granting of the consent specified by
Section 6.01 to authorize the Agent to declare the Revolving Credit Advances due and payable
pursuant to the provisions of Section 6.01, each Lender and each of its Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted by law, to set off
and apply any and all deposits (general or special, time or demand, provisional or final) at any
time held and other indebtedness at any time owing by such Lender or 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 the Loan Documents and any Note held by such Lender, whether or not such
Lender shall have made any demand under this Agreement or such Note and although such obligations
may be unmatured. Each Lender agrees promptly to notify the Agent and the Borrower after any such
set-off and application, provided that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of each Lender and its Affiliates under this
Section are in addition to other rights and remedies (including, without limitation, other rights
of set-off) that such Lender and its Affiliates may have.

          SECTION 8.06. Binding Effect. This Agreement shall become effective (other than
Section 2.01, which shall only become effective upon satisfaction of the conditions precedent set
forth in Section 3.01) when it shall have been executed by the Borrower and the Agent and when the
Agent shall have been notified by each Initial Lender that such Initial Lender has executed it and
thereafter shall be binding upon and inure to the benefit of the Borrower, the Agent and each
Lender and their respective successors and assigns, except that the Borrower shall not have the
right to assign its rights hereunder or any interest herein without the prior written consent of
the Lenders to any Person.

44

 

          SECTION 8.07. Assignments, Designations and Participations. (a) Each Lender may (i)
with the prior consent of the Agent (which consent shall not be unreasonably withheld, and which
consent shall not be required in the event of an assignment or grant pursuant to Sections 8.07(g)
or (h) or an assignment to any other Lender, an Affiliate of a Lender, or an Approved Fund) and
(ii) for so long as no Default has occurred and is continuing, with the consent of the Borrower
(which consent shall not be unreasonably withheld, and which consent shall not be required in the
event of an assignment or grant pursuant to Sections 8.07(g) or (h) or an assignment to any other
Lender, an Affiliate of a Lender, or an Approved Fund), assign to one or more Persons all or a
portion of its rights and obligations under this Agreement (including, without limitation, all or a
portion of its Commitment, the Revolving Credit Advances owed to it and any Note or Notes held by
it); provided, however, that (A) each such assignment shall be of a constant, and
not a varying, percentage of all rights and obligations under this Agreement, (B) except in the
case of an assignment to a Person that, immediately prior to such assignment, was a Lender or an
assignment of all of a Lender’s rights and obligations under this Agreement, the amount of the
Commitment of the assigning Lender being assigned pursuant to each such assignment (determined as
of the date of the Assignment and Acceptance with respect to such assignment) shall in no event be
less than $10,000,000 or an integral multiple of $1,000,000 in excess thereof, (C) each such
assignment shall be to an Eligible Assignee, and (D) the parties to each such assignment shall
execute and deliver to the Agent, for its acceptance and recording in the Register, an Assignment
and Acceptance, together with any Note subject to such assignment and a processing and recordation
fee of $3,000. Upon such execution, delivery, acceptance and recording, from and after the
effective date specified in each Assignment and Acceptance, (1) the assignee thereunder shall be a
party hereto and, to the extent that rights and obligations hereunder have been assigned to it
pursuant to such Assignment and Acceptance, have the rights and obligations of a Lender hereunder
and (2) the Lender assignor thereunder shall, to the extent that rights and obligations hereunder
have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights and be
released from its obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto).

     (b) By executing and delivering an Assignment and Acceptance, the Lender assignor thereunder
and the assignee thereunder confirm to and agree with each other and the other parties hereto as
follows: (i) other than as provided in such Assignment and Acceptance, such assigning Lender makes
no representation or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or the execution,
legality, validity, enforceability, genuineness, sufficiency or value of, or the perfection or
priority of any lien or security interest created or purported to be created under or in connection
with, this Agreement or any other instrument or document furnished pursuant hereto; (ii) such
assigning Lender makes no representation or warranty and assumes no responsibility with respect to
the financial condition of the Borrower or the performance or observance by the Borrower of any of
its obligations under this Agreement or any other instrument or document furnished pursuant hereto;
(iii) such assignee confirms that it has received a copy of this Agreement, together with copies of
the financial statements referred to in Section 4.01 and such other documents and information as it
has deemed appropriate to make its own credit analysis and decision to enter into such Assignment
and Acceptance; (iv) such assignee will,

45

 

independently and without reliance upon the Agent, such assigning Lender or any other Lender
and based on such documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under this Agreement; (v) such
assignee confirms that it is an Eligible Assignee; (vi) such assignee appoints and authorizes the
Agent to take such action as agent on its behalf and to exercise such powers and discretion under
this Agreement as are delegated to the Agent by the terms hereof, together with such powers and
discretion as are reasonably incidental thereto; and (vii) such assignee agrees that it will
perform in accordance with their terms all of the obligations that by the terms of this Agreement
are required to be performed by it as a Lender.

     (c) Upon its receipt of an Assignment and Acceptance executed by an assigning Lender and an
assignee representing that it is an Eligible Assignee, together with any Note or Notes subject to
such assignment, the Agent shall, if such Assignment and Acceptance has been completed and is in
substantially the form of Exhibit C hereto, (i) accept such Assignment and Acceptance, (ii)
record the information contained therein in the Register and (iii) give prompt notice thereof to
the Borrower. Within five Business Days after the Borrower’s receipt of such notice, if requested
by the applicable Lender, the Borrower, at its own expense, shall execute and deliver to the Agent
in exchange for the surrendered Note a new Note to the order of such Eligible Assignee in an amount
equal to the Commitment assumed by it pursuant to such Assignment and Acceptance and, if the
assigning Lender has retained a Commitment hereunder, if requested by such assigning Lender, a new
Note to the order of the assigning Lender in an amount equal to the Commitment retained by it
hereunder. Such new Note or Notes shall be in an aggregate principal amount equal to the aggregate
principal amount of such surrendered Note or Notes, shall be dated the effective date of such
Assignment and Acceptance and shall otherwise be in substantially the form of Exhibit A
hereto.

     (d) The Agent shall maintain at its address referred to in Section 8.02 a copy of each
Assignment and Acceptance delivered to and accepted by it and a register for the recordation of the
names and addresses and Commitment of, and principal amount of Revolving Credit Advances owing to,
each Lender from time to time (the “Register”). The entries in the Register shall be
conclusive and binding for all purposes, absent manifest error, and the Borrower, the Agent and the
Lenders may treat each Person whose name is recorded in the Register as a Lender hereunder for all
purposes of this Agreement. The Register shall be available for inspection by the Borrower or any
Lender at any reasonable time and from time to time upon reasonable prior notice.

     (e) Each Lender may sell participations to one or more banks or other entities (other than the
Borrower or any of its Affiliates) in or to all or a portion of its rights and obligations under
this Agreement (including, without limitation, all or a portion of its Commitment, the Revolving
Credit Advances owing to it and any Note or Notes held by it); provided, however,
that (i) such Lender’s obligations under this Agreement (including, without limitation, its
Commitment to the Borrower hereunder) shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations, (iii) such Lender
shall remain the owner of such Revolving Credit Advances for all purposes of this Agreement, (iv)
the Borrower, the Agent and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this Agreement and (v) no
participant under any such participation shall have any right to approve

46

 

any amendment or waiver of any provision of this Agreement or any Note, or any consent to any
departure by the Borrower therefrom, except to the extent that such amendment, waiver or consent
would (A) reduce the principal of, or interest on, the Revolving Credit Advances or any fees or
other amounts payable hereunder, or (B) increase the Commitments, in each case to the extent
subject to such participation, or postpone any date fixed for any payment of principal of, or
interest on, the Revolving Credit Advances or any fees or other amounts payable hereunder, in each
case to the extent subject to such participation. Each participant shall be entitled to the
benefits and subject to the exclusions, in each case, as if it were a Lender, of Sections 2.10,
2.11(a) and 2.13 to the same extent as if it were a Lender and had acquired its interest under this
Agreement by an assignment made pursuant to this Section 8.07, provided, however,
that (i) such participant complies with the requirements of Section 2.13(e) and (ii) in no event
shall the Borrower be obligated to make any payment with respect to such Sections that is greater
than the amount that the Borrower would have otherwise made had no participations been sold under
this Section 8.07(e).

     (f) Any Lender may, in connection with any assignment, designation or participation or
proposed assignment, designation or participation pursuant to this Section 8.07, disclose to the
assignee, designee or participant or proposed assignee, designee or participant, any information
relating to the Borrower furnished to such Lender by or on behalf of the Borrower; provided
that, prior to any such disclosure, the assignee, designee or participant or proposed assignee,
designee or participant shall agree to preserve the confidentiality of any Confidential Information
relating to the Borrower received by it from such Lender.

     (g) Notwithstanding any other provision set forth in this Agreement, any Lender may at any
time create a security interest in all or a portion of its rights under this Agreement (including,
without limitation, the Revolving Credit Advances owing to it and the Note or Notes held by it) in
favor of any Person (other than the Borrower or an Affiliate of the Borrower), including, without
limitation, any Federal Reserve Bank in accordance with Regulation A of the Board of Governors of
the Federal Reserve System.

     (h) Notwithstanding anything to the contrary contained herein, any Lender (a “Designating
Lender”) may grant to one or more special purpose funding vehicles (each an “SPV”),
identified as such in writing from time to time by the Designating Lender to the Agent and the
Borrower, the option to provide to the Borrower all or any part of any Revolving Credit Advance
that such Designating Lender would otherwise be obligated to make to the Borrower pursuant to this
Agreement; provided that (i) nothing herein shall constitute a commitment by any SPV to make any
Revolving Credit Advance, (ii) if an SPV elects not to exercise such option or otherwise fails to
provide all or any part of such Revolving Credit Advance, the Designating Lender shall be obligated
to make such Revolving Credit Advance pursuant to the terms hereof, (iii) the Designating Lender
shall remain liable for any indemnity or other payment obligation with respect to its Commitment
hereunder and (iv) no SPV or Designating Lender shall be entitled to receive any greater amount
under this Agreement than the Designating Lender would have been entitled to receive had the
Designating Lender not otherwise granted such SPV the option to provide any Revolving Credit
Advance to the Borrower. The making of a Revolving Credit Advance by an SPV hereunder shall
utilize the Commitment of the Designating Lender to the same extent, and as if, such Revolving
Credit Advance were made by such Designating Lender.

47

 

     (i) Each party hereto hereby acknowledges and agrees that no SPV shall have the rights of a
Lender hereunder, such rights being retained by the applicable Designating Lender. Accordingly,
and without limiting the foregoing, each party hereby further acknowledges and agrees that no SPV
shall have any voting rights hereunder and that the voting rights attributable to any Revolving
Credit Advance made by an SPV shall be exercised only by the relevant Designating Lender and that
each Designating Lender shall serve as the administrative agent and attorney-in-fact for its SPV
and shall on behalf of its SPV receive any and all payments made for the benefit of such SPV and
take all actions hereunder to the extent, if any, such SPV shall have any rights hereunder. No
additional Note shall be required to evidence the Revolving Credit Advances or portion thereof made
by an SPV; and the related Designating Lender shall be deemed to hold its Note or Notes, if any, as
administrative agent for such SPV to the extent of the Revolving Credit Advances or portion thereof
funded by such SPV. In addition, any payments for the account of any SPV shall be paid to its
Designating Lender as administrative agent for such SPV.

     (j) Each party hereto hereby agrees that no SPV shall be liable for any indemnity or payment
under this Agreement for which a Lender would otherwise be liable so long as, and to the extent
that, the related Designating Lender provides such indemnity or makes such payment; provided, with
respect to such agreement by the Borrower that the related Designating Lender shall not be in
breach of its obligation to make Revolving Credit Advances to the Borrower hereunder. In
furtherance of the foregoing, each party hereto hereby agrees (which agreements shall survive the
termination of this Agreement) that prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior indebtedness of any SPV, it
will not institute against, or join any other person in instituting against, such SPV any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws of
the United States or any State thereof; provided, with respect to such agreement by the Borrower
that the related Designating Lender shall not be in breach of its obligation to make Revolving
Credit Advances to the Borrower hereunder. Notwithstanding the foregoing, the Designating Lender
unconditionally agrees to indemnify the Borrower, the Agent and each Lender against all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever which may be incurred by or asserted against the
Borrower, the Agent or such Lender, as the case may be, in any way relating to or arising as a
consequence of any such forbearance or delay in the initiation of any such proceeding against its
SPV.

     (k) In addition, notwithstanding anything to the contrary contained in subsection 8.07(h),
(i), (j) or (k) or otherwise in this Agreement, any SPV may (i) at any time and without paying any
processing fee therefor, assign or participate all or a portion of its interest in any Revolving
Credit Advances to the Designating Lender or to any financial institutions providing liquidity
and/or credit support to or for the account of such SPV to support the funding or maintenance of
Revolving Credit Advances and (ii) disclose on a confidential basis any non-public information
relating to its Revolving Credit Advances to any rating agency, commercial paper dealer or provider
of any surety, guarantee or credit or liquidity enhancements to such SPV. Subsection 8.07(h), (i),
(j) or (k) may not be amended without the written consent of any Designating Lender affected
thereby.

48

 

          SECTION 8.08. Confidentiality. Neither the Agent nor any Lender shall disclose any
Confidential Information to any other Person without the consent of the Borrower, other than (a) to
the Agent’s or such Lender’s Affiliates and their officers, directors, employees, agents and
advisors and, as contemplated by Section 8.07(f), to actual or prospective assignees and
participants, and then only on a confidential basis, (b) as required by any law, rule or regulation
or judicial process, (c) to any rating agency when required by it, provided that, prior to
any such disclosure, such rating agency shall undertake to preserve the confidentiality of any
Confidential Information relating to the Borrower received by it from the Agent or such Lender, (d)
as requested or required by any state, federal or foreign authority or examiner regulating banks,
other financial institutions or banking, (e) in connection with the exercise of any remedies
hereunder or any suit, action or proceeding relating to this Agreement or the enforcement of rights
hereunder, (f) on a confidential basis to any Lender’s direct or indirect contractual
counterparties in swap agreements or to legal counsel, accountants and other professional advisors
to such counterparties, and (g) subject to an agreement containing provisions substantially the
same as those of this Section, (x) to any credit or financial insurance provider in connection with
the Borrower’s obligations hereunder, and (y) to any Person that requires such Confidential
Information in connection with obtaining CUSIP-based identifiers.

          SECTION 8.09. Governing Law. This Agreement and the Notes shall be governed by, and
construed in accordance with, the laws of the State of New York.

          SECTION 8.10. Execution in Counterparts; Integration. This Agreement may be executed
in any number of counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of a signature page to
this Agreement by telecopier shall be effective as delivery of a manually executed counterpart of
this Agreement. This Agreement and any separate letter agreement with respect to fees payable to
the Agent or confidential information (the latter of which shall apply solely to information
provided prior to the date hereof) constitute the entire contract among the parties relating to the
subject matter hereof and supersede any and all previous agreements and understandings, oral or
written, relating to the subject matter hereof.

          SECTION 8.11. Jurisdiction, Etc. (a) Each of the parties hereto hereby irrevocably
and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any
New York State court or federal court of the United States of America sitting in New York City, and
any appellate court from any thereof, in any action or proceeding arising out of or relating to
this Agreement or the Notes, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such
action or proceeding may be heard and determined in any such New York State court or, to the extent
permitted by law, in such federal court. Each of the parties hereto agrees that a final judgment
in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall
affect any right that any party may otherwise have to bring any action or proceeding relating to
this Agreement or the Notes in the courts of any jurisdiction.

     (b) Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent
it may legally and effectively do so, any objection that it may now or hereafter have to the

49

 

laying of venue of any suit, action or proceeding arising out of or relating to this Agreement
or the Notes in any New York State or federal court. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

          SECTION 8.12. Waiver of Jury Trial. Each of the Borrower, the Agent and the Lenders
hereby irrevocably waives all right to trial by jury in any action, proceeding or counterclaim
(whether based on contract, tort or otherwise) arising out of or relating to this Agreement or the
Notes or the actions of the Agent or any Lender in the negotiation, administration, performance or
enforcement thereof.

          SECTION 8.13. USA Patriot Act Notification. The following notification is provided to
the Borrower pursuant to Section 326 of the USA Patriot Act of 2001, 31 U.S.C. Section 5318:

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help the government
fight the funding of terrorism and money laundering activities, Federal law requires all financial
institutions to obtain, verify, and record information that identifies each person or entity that
opens an account, including any deposit account, treasury management account, loan, other extension
of credit, or other financial services product. What this means for the Borrower: When the
Borrower opens an account, the Agent and the Lenders will ask for the Borrower’s name, tax
identification number, business address, and other information that will allow the Agent and the
Lenders to identify the Borrower. The Agent and the Lenders may also ask to see the Borrower’s
legal organizational documents or other identifying documents.

          SECTION 8.14. Severability. In the event any one or more of the provisions contained
in this Agreement should be held invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein shall not in any way be
affected or impaired thereby.

Remainder of Page Intentionally Blank

50

 

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

	 	 	 	 	 	 	 
	 	 	DTE ENERGY COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Borrower’s FEIN: 38-3217752

Signature Page to

DTE Energy Company

Two-Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	Lenders	 	 
	 
	 	 	 	 	 	 
	 	 	CITIBANK, N.A., as Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., as a Co-Syndication Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	BARCLAYS BANK PLC, as a Co-Syndication Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	THE BANK OF NOVA SCOTIA, as a Co-Syndication Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

Signature Page to

DTE Energy Company

Two-Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	THE ROYAL BANK OF SCOTLAND plc, as Documentation Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

Signature Page to

DTE Energy Company

Two-Year Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	[OTHER LENDERS], as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

Signature Page to

DTE Energy Company

Two-Year Credit Agreement

 

 

SCHEDULE I

DTE ENERGY COMPANY

APPLICABLE LENDING OFFICES

	 	 	 	 	 	 	 	 	 
	Name of Initial Lender	 	Domestic Lending Office	 	Eurodollar Lending Office	 	Commitment
	Citibank, N.A.

	 	Two Penns Way

Suite 200

New Castle, DE 19720

Attention: Charles Huester

Telephone: (302) 864-6010

Facsimile: (212) 816-8098
	 	388 Greenwich St.,

New York, NY 10013

Attention: Nick Perazza

Telephone: (302) 894-6110

Facsimile: (212) 994-0847
	 	$	44,344,214.34	 
	 
	 	 	 	 	 	 	 	 
	Barclays Bank PLC

	 	200 Park Avenue

New York, NY 10166

Attention: Alicia

Borys/Nicholas Guzzardo

Telecopier: (201) 499-3087
	 	Same as Domestic Lending
Office
	 	$	44,344,214.34	 
	 
	 	 	 	 	 	 	 	 
	The Bank of Nova Scotia

	 	1 Liberty Plaza

165 Broadway

New York, NY 10006

Attention: Isabel Abella
and Estella Xue

Telephone: (212) 225-5305
and (212) 225-5705

Facsimile: (212) 225-5480

and (212) 225-5709
	 	Same as Domestic Lending
Office
	 	$	44,344,214.34	 
	 
	 	 	 	 	 	 	 	 
	JPMorgan Chase Bank, N.A.

	 	JPMorgan Chase Bank, N.A.

10 South Dearborn Street

Mail Code IL1-0010

Chicago, IL 60603

Attention: April Yebd

Telephone: (312)-732-5078

Facsimile: (312)-385-7096
	 	Same as Domestic Lending
Office
	 	$	44,344,214.34	 
	 
	 	 	 	 	 	 	 	 
	The Royal Bank of
Scotland, plc

	 	101 Park Avenue 

New York, NY 10178

Attention: Luis Montanti

Telephone: (212) 401-1402

Facsimile: (212) 401-1494
	 	Same as Domestic Lending
Office
	 	$	44,344,214.34	 
	 
	 	 	 	 	 	 	 	 
	Bank of America, N.A.

	 	Bank of America, N.A.

100 North Tryon Street

Charlotte, NC 28255

Attention: Jennifer Baines

Telephone: (925) 675-8409

Facsimile: (888) 969-2294
	 	Same as Domestic Lending
Office
	 	$	44,344,214.34	 
	 
	 	 	 	 	 	 	 	 
	Comerica Bank, N.A.

	 	500 Woodward Ave MC 3268

Detroit, MI 48226

Attention: Dan Roman

Telephone: (313) 222-3803

Facsimile: (313) 222-9514
	 	Same as Domestic Lending
Office
	 	$	30,038,378.84	 
	 
	 	 	 	 	 	 	 	 
	KeyBank National 

Association

	 	127 Public Square

Cleveland, OH 44114

Attention: Marianne Meil

Telephone: (216) 689-3549

Facsimile: (216) 689-4981
	 	Same as Domestic Lending
Office
	 	$	30,038,378.84	 

 

 

	 	 	 	 	 	 	 	 	 
	Name of Initial Lender	 	Domestic Lending Office	 	Eurodollar Lending Office	 	Commitment
	BNP Paribas

	 	787 Seventh Avenue

New York, NY 10019

Attention: Project Finance
& Utilities

Telephone: (212) 841-2000

Facsimile: (212) 841-2146
	 	Same as Domestic Lending
Office
	 	$	30,005,366.16	 
	 
	 	 	 	 	 	 	 	 
	Fifth Third Bank

	 	c/o Madisonville
Operations Center

MD 1M0C2B

Cincinnati, OH 45263-5300

Attention: Gina Schmidt

Telecopier: (513) 358-0221
	 	Same as Domestic Lending
Office
	 	$	28,035,820.25	 
	 
	 	 	 	 	 	 	 	 
	UBS Loan Finance LLC

	 	677 Washington Boulevard
Stamford, CT 06901 

Attention: Shaneequa
Thomas, Banking Product
Services

6-South

Telephone: (203) 719-3385

Facsimile: (203) 719-3888
	 	Same as Domestic Lending
Office
	 	$	27,535,180.60	 
	 
	 	 	 	 	 	 	 	 
	Union Bank, N.A.

	 	Energy Capital Services

445 South Figuroa St.,

15th Floor

Los Angeles, CA 90071

Attention: Jesus Serrano

Telephone: (213) 236-4194

Facsimile: (213) 236-4096
	 	Same as Domestic Lending
Office
	 	$	23,898,079.63	 
	 
	 	 	 	 	 	 	 	 
	U.S. Bank National
Association

	 	461 Fifth Avenue 

New York, NY 10017

Attention: Paul Vastola

Telephone: (646) 935-4541

Facsimile: (646) 935-4551
	 	Same as Domestic Lending
Office
	 	$	20,025,585.89	 
	 
	 	 	 	 	 	 	 	 
	Deutsche Bank AG New 

York Branch

	 	60 Wall Street, 44th Floor

New York, NY 10005 

Attention: Rainer Meier

Telecopier: (212) 797-4346
	 	Same as Domestic Lending
Office
	 	$	18,587,395.88	 
	 
	 	 	 	 	 	 	 	 
	The Bank of New York
Mellon

	 	One Wall Street

New York, NY 10286

Attention: Hussam S.
Alsahlani

Telephone: (412) 234-5624

Telecopier: (412) 236-6112
	 	Same as Domestic Lending
Office
	 	$	17,522,387.66	 
	 
	 	 	 	 	 	 	 	 
	Bank of Tokyo-Mitsubishi
UFJ

	 	1251 Avenue of the Americas

12th Floor

New York, NY 10020-1104

Attention: Rolando Uy

Telephone: (201) 413-8570

Telecopier: (201) 521-2304
	 	Same as Domestic Lending
Office
	 	$	17,522,387.66	 
	 
	 	 	 	 	 	 	 	 
	National City Bank

	 	755 W. Big Beaver Rd.

Suite 2500

Troy, MI 48084

Telephone: (248) 729-8594

Telecopier: (248) 729-8820
	 	Same as Domestic Lending
Office
	 	$	17,522,387.66	 

 

 

	 	 	 	 	 	 	 	 	 
	Name of Initial Lender	 	Domestic Lending Office	 	Eurodollar Lending Office	 	Commitment
	Morgan Stanley Bank, N.A.

	 	One Utah Center

201 South Main Street

5th Floor

Salt Lake City, UT 84111

Telephone: (801) 236-3655

Facsimile: (718) 233-0967
	 	Same as Domestic Lending
Office
	 	$	6,658,507.31	 
	 
	 	 	 	 	 	 	 	 
	The Northern Trust 

Company

	 	50 South LaSalle Street

Chicago, IL 60675

Attention: Preeti Jain

Telephone: (312) 444-2376

Facsimile: (312) 444-4906
	 	Same as Domestic Lending
Office
	 	$	5,006,396.47	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 
	Total

	 	 	 	 	 	$	538,461,538.89	 
	 
	 	 	 	 	 	 
	 	 

 

 

PRICING SCHEDULE

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Level I Status	 	Level II Status	 	Level III Status	 	Level IV Status	 	Level V Status
	Applicable
Percentage
	 	0.500%	 	0.625%	 	0.875%	 	1.125%	 	1.250%
	 
	 	 	 	 	 	 	 	 	 	 
	Applicable Margin
(Eurodollar Rate)
	 	2.000%	 	2.375%	 	2.625%	 	2.875%	 	3.250%
	 
	 	 	 	 	 	 	 	 	 	 
	Applicable Margin
(Base Rate)
	 	1.000%	 	1.375%	 	1.625%	 	1.875%	 	2.250%

          For the purposes of this Schedule, the following terms have the following meanings, subject to
the final paragraph of this Schedule:

          “Level I Status” exists at any date if, on such date, the Borrower’s Moody’s Rating is A3 or
better or the Borrower’s S&P Rating is A- or better.

          “Level II Status” exists at any date if, on such date, (i) the Borrower has not qualified for
Level I Status and (ii) the Borrower’s Moody’s Rating is Baa1 or better or the Borrower’s S&P
Rating is BBB+ or better.

          “Level III Status” exists at any date if, on such date, (i) the Borrower has not qualified for
Level I Status or Level II Status and (ii) the Borrower’s Moody’s Rating is Baa2 or better or the
Borrower’s S&P Rating is BBB or better.

          “Level IV Status” exists at any date if, on such date, (i) the Borrower has not qualified for
Level I Status, Level II Status or Level III Status and (ii) the Borrower’s Moody’s Rating is Baa3
or better or the Borrower’s S&P Rating is BBB- or better.

          “Level V Status” exists at any date if, on such date, the Borrower has not qualified for Level
I Status, Level II Status, Level III Status or Level IV Status.

          “Moody’s Rating” means, at any time, the rating issued by Moody’s and then in effect with
respect to the Borrower’s senior unsecured long-term debt securities without third-party credit
enhancement.

          “S&P Rating” means, at any time, the rating issued by S&P and then in effect with respect to
the Borrower’s senior unsecured long-term debt securities without third-party credit enhancement.

          “Status” means Level I Status, Level II Status, Level III Status, Level IV Status or Level V
Status.

 

 

          The Applicable Margin and Applicable Percentage shall be determined in accordance with the
foregoing table based on the Borrower’s Status as determined from its then-current Moody’s and S&P
Ratings. The credit rating in effect on any date for the purposes of this Schedule is that in
effect at the close of business on such date. If at any time the Borrower does not have both a
Moody’s Rating and an S&P Rating, Level V Status shall exist; provided, however,
that if the credit rating system of Moody’s or S&P shall change, or if either such rating agency
shall cease to be in the business of rating corporate debt obligations, the Borrower and the
Lenders shall negotiate in good faith to amend this Schedule to reflect such changed rating system
or the unavailability of ratings from such rating agency and, pending the effectiveness of any such
amendment, the applicable Status for the Borrower shall be the Borrower’s Status most recently in
effect prior to such change or cessation.

          Except as specifically provided above in this Schedule, in the event that a split occurs
between the two ratings, the pricing shall be based upon (x) the higher of the two ratings then
applicable if all such ratings shall be in Level I Status, Level II Status, Level III Status or
Level IV Status and (y) the lower of the two ratings if any of such ratings shall be in Level V
Status. However, if (x) the split is greater than one level and the lowest rating shall be in
Level III Status or Level IV Status, then the pricing shall be based upon the rating one level
above the lower of the two ratings and (y) the split is greater than one level and the lowest
rating shall be in Level V Status, then pricing shall be based upon Level V Status.

 

 

EXHIBIT
A - FORM OF NOTE

	 	 	 	 	 	 	 	 	 	 	 	 	 
	U.S.$

	 	 	 	 	 	Dated:
	 	 	 	 	 	, 200_
	 

	 	 

	 	 	 	 	 	 

	 	 	 	 

          FOR VALUE RECEIVED, the undersigned, DTE ENERGY COMPANY, a Michigan corporation (the
“Borrower”), HEREBY PROMISES TO PAY to the order of
___ (the
“Lender”) for the account of its Applicable Lending Office on the Termination Date (each as
defined in the Credit Agreement referred to below), the principal sum of U.S.$[amount of
the Lender’s Commitment in figures] or, if less, the aggregate principal amount of the
Revolving Credit Advances made by the Lender to the Borrower pursuant to the Two-Year Credit
Agreement dated as of April 29, 2009 (as amended or modified from time to time, the “Credit
Agreement”; the terms defined therein being used herein as therein defined) among the Borrower,
the Lender and certain other lenders parties thereto, and Citibank, N.A., as Agent for the Lender
and such other lenders outstanding on the Termination Date.

          The Borrower promises to pay interest on the unpaid principal amount of each Revolving Credit
Advance from the date of such Revolving Credit Advance until such principal amount is paid in full,
at such interest rates, and payable at such times, as are specified in the Credit Agreement.

          Both principal and interest are payable in lawful money of the United States of America to
Citibank, N.A., as Agent, at Two Penns Way, Suite 200, New Castle, Delaware 19720, Account No.
36852248, Attention: Charles Huester, in same day funds. Each Revolving Credit Advance owing to
the Lender by the Borrower pursuant to the Credit Agreement, and all payments made on account of
principal thereof, shall be recorded by the Lender and, prior to any transfer hereof, endorsed on
the grid attached hereto which is part of this Promissory Note.

          This Promissory Note is one of the Notes referred to in, and is entitled to the benefits of,
the Credit Agreement. The Credit Agreement, among other things, (i) provides for the making of
Revolving Credit Advances by the Lender to the Borrower from time to time in an aggregate amount
not to exceed at any time outstanding the U.S. dollar amount first above mentioned, the
indebtedness of the Borrower resulting from each such Revolving Credit Advance being evidenced by
this Promissory Note, and (ii) contains provisions for acceleration of the maturity hereof upon the
happening of certain stated events and also for prepayments on account of principal hereof prior to
the maturity hereof upon the terms and conditions therein specified.

	 	 	 	 	 	 	 
	 	 	DTE ENERGY COMPANY
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	Title:
	 	 

	 	 

 

 

ADVANCES AND PAYMENTS OF PRINCIPAL

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Unpaid	 	 
	 
	 	Amount of
	 	Amount of Principal
	 	Principal	 	 
	Date
	 	Advance
	 	Paid or Prepaid
	 	Balance
	 	Notation Made By
	 
	 	 
	 	 
	 	 
	 	 

 

 

EXHIBIT
B - FORM OF NOTICE OF BORROWING

Citibank, N.A., as Agent for the Lenders parties

          to the Credit Agreement referred to below

Two Penns Way, Suite 200

New Castle, Delaware 19720

Attention: Charles Huester

[Date]

Ladies and Gentlemen:

          The undersigned, DTE ENERGY COMPANY, refers to the Two-Year Credit Agreement dated as of April
29, 2009 (as amended or modified from time to time, the “Credit Agreement”; the terms
defined therein being used herein as therein defined), among the undersigned, certain Lenders
parties thereto and Citibank, N.A., as Agent for said Lenders, and hereby gives you notice,
irrevocably, pursuant to Section 2.02 of the Credit Agreement that the undersigned hereby requests
a Borrowing under the Credit Agreement, and in that connection sets forth below the information
relating to such Borrowing (the “Proposed Borrowing”) as required by Section 2.02(a) of the
Credit Agreement:

	 	(i)	 	The Business Day of the Proposed Borrowing is                     , ___.
	 
	 	(ii)	 	The Type of Advances comprising the Proposed Borrowing is [Base Rate
Advances] [Eurodollar Rate Advances].
	 
	 	(iii)	 	The aggregate amount of the Proposed Borrowing is $                    .
	 
	 	(iv)	 	[The initial Interest Period for each Eurodollar Rate Advance made as part
of the Proposed Borrowing is ___month[s].]
	 
	 	(v)	 	[Wire transfer instructions].

          The undersigned hereby certifies that the following statements are true on the date hereof,
and will be true on the date of the Proposed Borrowing:

     (i) the representations and warranties contained in Section 4.01 of the Credit
Agreement are correct, before and after giving effect to the Proposed Borrowing and to the
application of the proceeds therefrom, as though made on and as of such date; provided,
that, the foregoing certification shall not apply to the representations and warranties set
forth in (x) the last sentence of Section 4.01(e) of the Credit Agreement, and (y) Section
4.01(f) of the Credit Agreement;

     (ii) after giving effect to the application of the proceeds of all Borrowings on such
date (together with any other resources of the Borrower applied together therewith),

 

 

no event has occurred and is continuing, or would result from such Proposed Borrowing
or from the application of the proceeds therefrom, that constitutes a Default; and

     (iii) the Borrower has not received notice from the Agent on or prior to the date of
such Proposed Borrowing that a mandatory prepayment is required under Section 2.09(b) of the
Credit Agreement (other than any such notice that has been withdrawn in writing by the
Agent).

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	Title:
	 	[Financial Officer]

 

 

EXHIBIT
C - FORM OF

ASSIGNMENT AND ACCEPTANCE

          Reference is made to the Two-Year Credit Agreement dated as of April 29, 2009 (as amended or
modified from time to time, the “Credit Agreement”) among DTE Energy Company, a Michigan
corporation (the “Borrower”), the Lenders (as defined in the Credit Agreement) and
Citibank, N.A., as agent for the Lenders (the “Agent”). Terms used but not otherwise
defined herein have the respective meanings assigned to such terms in the Credit Agreement.

          The “Assignor” and the “Assignee” referred to on Schedule 1 hereto agree as follows:

          1. The Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases
and assumes from the Assignor, an interest in and to the Assignor’s rights and obligations under
the Credit Agreement as of the date hereof (if any) equal to the percentage interest specified on
Schedule 1 hereto of all outstanding rights and obligations under the Credit Agreement. After
giving effect to such sale and assignment, the Assignee’s Commitment and the amount of the
Revolving Credit Advances owing to the Assignee under the Credit Agreement will be as set forth on
Schedule 1 hereto.

          2. The Assignor (i) represents and warrants that it is the legal and beneficial owner of the
interest being assigned by it hereunder and that such interest is free and clear of any adverse
claim; (ii) makes no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the Credit Agreement or the
execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit
Agreement or any other instrument or document furnished pursuant thereto; (iii) makes no
representation or warranty and assumes no responsibility with respect to the financial condition of
the Borrower or the performance or observance by the Borrower of any of its obligations under the
Credit Agreement or any other instrument or document furnished pursuant thereto; and (iv) attaches
the Note or Notes held by the Assignor, if any, and requests that the Agent exchange such Note or
Notes for a new Note or Notes payable to the order of the Assignee in an amount equal to the
Commitment assumed by the Assignee pursuant hereto and the Credit Agreement or new Notes payable to
the order of the Assignee in an amount equal to the Commitment assumed by the Assignee pursuant
hereto and the Credit Agreement and the Assignor in an amount equal to the Commitment retained by
the Assignor under the Credit Agreement, respectively, as specified on Schedule 1 hereto.

          3. The Assignee (i) confirms that it has received a copy of the Credit Agreement, together
with copies of the financial statements referred to in Section 4.01 thereof and such other
documents and information as it has deemed appropriate to make its own credit analysis and decision
to enter into this Assignment and Acceptance; (ii) agrees that it will, independently and without
reliance upon the Agent, the Assignor or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Credit Agreement; (iii) confirms that it is an Eligible
Assignee; (iv) appoints and authorizes the Agent to take such action as agent on its behalf and to
exercise such powers and discretion under the Credit Agreement as are delegated to the Agent by the
terms thereof, together with such powers and discretion as are

 

 

reasonably incidental thereto; (v) agrees that it will perform in accordance with their terms
all of the obligations that by the terms of the Credit Agreement are required to be performed by it
as a Lender; and (vi) attaches any U.S. Internal Revenue Service forms required under Section 2.13
of the Credit Agreement.

          4. Following the execution of this Assignment and Acceptance, it will be delivered to the
Agent for acceptance and recording by the Agent. The effective date for this Assignment and
Acceptance (the “Effective Date”) shall be the date of acceptance hereof by the Agent,
unless otherwise specified on Schedule 1 hereto.

          5. Upon such acceptance and recording by the Agent, as of the Effective Date, (i) the Assignee
shall be a party to the Credit Agreement, and, to the extent provided in this Assignment and
Acceptance, have the rights and obligations of a Lender thereunder and (ii) the Assignor shall, to
the extent provided in this Assignment and Acceptance, relinquish its rights and be released from
its obligations under the Credit Agreement.

          6. Upon such acceptance and recording by the Agent, from and after the Effective Date, the
Agent shall make all payments under the Credit Agreement, and the Notes in respect of the interest
assigned hereby (including, without limitation, all payments of principal, interest and Facility
Fees with respect thereto) to the Assignee. The Assignor and Assignee shall make all appropriate
adjustments in payments under the Credit Agreement, and the Notes for periods prior to the
Effective Date directly between themselves.

          7. This Assignment and Acceptance shall be governed by, and construed in accordance with, the
laws of the State of New York.

          8. This Assignment and Acceptance may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of Schedule 1 to this Assignment and Acceptance by telecopier
shall be effective as delivery of a manually executed counterpart of this Assignment and
Acceptance.

          IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1 to this Assignment
and Acceptance to be executed by their officers thereunto duly authorized as of the date specified
thereon.

 

 

Schedule 1 to

Assignment and Acceptance

	 	 	 	 	 
	Percentage interest assigned:
	 	 	    %	 
	Assignee’s Commitment:
	 	$	 	 
	Aggregate
outstanding principal amount of Revolving Credit Advances
assigned:
	 	$	 	 
	Principal
amount of Revolving Credit Advances payable to Assignee:
	 	$	 	 
	Principal
amount of Revolving Credit Advances payable to Assignor:
	 	$	 	 
	Effective Date1:
	 	$	 	 

	 	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNOR], as Assignor	 	 
	 
	 	 	 	 	 	 
	 

	 	By

Title:
	 	

 

	 	 
	 

	 	Dated:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNEE], as Assignee	 	 
	 
	 	 	 	 	 	 
	 

	 	By

Title:
	 	

 

	 	 
	 

	 	Dated:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Domestic Lending Office:	 	 
	 	 	[Address]	 	 
	 
	 	 	 	 	 	 
	 	 	Eurodollar Lending Office:	 	 
	 	 	[Address]	 	 

 

1    This date should be no earlier than five Business Days
after the delivery of this Assignment and Acceptance to the Agent.

 

 

Accepted [and Approved]2 this day of

                                                            , as Agent

By                                                                      

Title:

[Approved this [ ] day of                                  

DTE ENERGY COMPANY

By                                                                     

 Title: ] 3

 

			
	2	 	Required if the Assignee is an Eligible Assignee solely
by reason of clause (viii) of the definition of “Eligible Assignee”.
	 
	3	 	To be added only if the consent of the Borrower is
required by the terms of the Credit Agreement.

 

 

EXHIBIT
D - FORM OF CERTIFICATE BY BORROWER

DTE ENERGY COMPANY

THE DETROIT EDISON COMPANY

MICHIGAN CONSOLIDATED GAS COMPANY

OFFICER’S CERTIFICATE

          I, David R. Murphy, Assistant Treasurer of DTE ENERGY COMPANY (“DTE”), THE DETROIT EDISON
COMPANY (“DECO”) and MICHIGAN CONSOLIDATED GAS COMPANY (“MichCon”), each a Michigan corporation
(each a “Borrower” and collectively the “Borrowers”), DO HEREBY CERTIFY, pursuant to Section 3.01
of each of (i) the Two-Year Credit Agreement (the “DTE Credit Agreement”), dated as of
April 29, 2009, among DTE, the financial institutions from time to time parties thereto as
“Lenders” and Citibank, N.A. (“Citibank”), as agent for said Lenders, (ii) the Two-Year
Credit Agreement (the “DECO Credit Agreement”), dated as of April 29, 2009, among DECO, the
financial institutions from time to time parties thereto as “Lenders” and Barclays Bank PLC
(“Barclays”), as agent for said Lenders, and (iii) the Two-Year Credit Agreement (the
“MichCon Credit Agreement”, and, together with the DTE Credit Agreement and the DECO Credit
Agreement, the “Credit Agreements”), dated as of April 29, 2009, among MichCon, the
financial institutions from time to time parties thereto as “Lenders” and JPMorgan Chase Bank, N.A.
(“JPMCB”), as agent for said Lenders, that the terms defined in the Credit Agreements are
used herein as therein defined and, further, that:

          1. The Effective Date shall be April 29, 2009.

          2. The representations and warranties contained in Section 4.01 of each of the Credit
Agreements are true and correct on and as of the date hereof.

          3. No event has occurred and is continuing that constitutes a Default.

          4. As of the date hereof, there are no loans or letters of credit outstanding under the
Terminating Agreements and all fees and amounts owed to the lenders or agents thereunder have been
paid in full (or, in respect of any letters of credit thereunder, such letters of credit have been
assigned or transferred to the 2005 Five-Year Credit Agreement (as defined in the DTE Credit
Agreement) (such that each such letter of credit constitutes a “Facility LC” thereunder)).

 

 

Dated as of the _____ day of                     , 2009.

	 	 	 	 	 
	 	 	DTE ENERGY COMPANY
	 	 	THE DETROIT EDISON COMPANY
	 	 	MICHIGAN CONSOLIDATED GAS COMPANY
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	Name:
	 	David R. Murphy
	 

	 	Title:
	 	Assistant Treasurer

 

 

EXHIBIT
E-1 - FORM OF

OPINION OF ASSOCIATE GENERAL COUNSEL TO THE BORROWER

April 29, 2009

To each of the Lenders party to the

Credit Agreement defined below

DTE Energy Company

Ladies and Gentlemen:

          This opinion is furnished to you pursuant to Section 3.01(g)(v) of the Two-Year Credit
Agreement (the “Credit Agreement”), dated as of April 29, 2009, among DTE Energy Company
(the “Borrower”), the financial institutions from time to time parties thereto as “Lenders”
and Citibank, N.A. (the “Agent”), as agent for said Lenders. Terms defined in the Credit
Agreement are used herein as therein defined.

          I am the Associate General Counsel of the Borrower and have acted as counsel for the Borrower
in connection with the preparation, execution and delivery of the Loan Documents.

          In that connection, I, in conjunction with the members of my staff, have examined:

     (i) Each Loan Document, executed by each of the parties thereto.

     (ii) The other documents furnished by the Borrower pursuant to Article III of the
Credit Agreement.

     (iii) The Restated Articles of Incorporation of the Borrower and all amendments thereto
(the “Charter”).

     (iv) The Bylaws of the Borrower and all amendments thereto (the “Bylaws”).

     (v) A certificate from the State of Michigan attesting to the continued corporate
existence and good standing of the Borrower.

In addition, I have examined the originals or copies certified to my satisfaction, of such other
corporate records of the Borrower, certificates of public officials and of officers of the
Borrower, and agreements, instruments and other documents, as I have deemed necessary as a basis
for the opinions expressed below. As to questions of fact material to such opinions, I have, when
relevant facts were not independently established by me, relied upon certificates of public
officials. I have assumed the due execution and delivery, pursuant to due authorization, of the
Credit Agreement by the Lenders and the Agent.

          My opinions expressed below are limited to the law of the State of Michigan and the federal
law of the United States.

 

 

          Based upon the foregoing and upon such investigation as I have deemed necessary, I am of the
following opinion:

          1. The Borrower is a corporation duly organized, validly existing and in good standing under
the laws of the State of Michigan.

          2. The execution, delivery and performance by the Borrower of the Loan Documents to which it
is party, and the consummation of the transactions contemplated thereby, are within the Borrower’s
corporate powers, have been duly authorized by all necessary corporate action, and do not
contravene (i) the Charter or the Bylaws, (ii) any law, rule or regulation applicable to the
Borrower, or (iii) any contractual restriction binding on or affecting the Borrower.

          3. No consent, authorization or approval or other action by, and no notice to or filing with,
any Governmental Authority or regulatory body or any other third party is required for the due
execution, delivery, recordation, filing or performance by the Borrower of the Loan Documents to
which it is a party.

          4. The Credit Agreement has been, and each of the Notes when delivered will have been, duly
executed and delivered on behalf of the Borrower.

          5. Except as may have been disclosed to you in the SEC Reports, to the best of my knowledge
(after due inquiry) there are no pending or overtly threatened actions or proceedings affecting the
Borrower or any of its Significant Subsidiaries before any court, governmental agency or arbitrator
that (i) could be reasonably likely to have a Material Adverse Effect or (ii) purport to affect the
legality, validity, or enforceability of any Loan Documents to which the Borrower is a party or the
consummation of the transactions contemplated thereby.

          6. In a properly presented case, a Michigan court or a federal court sitting in the State of
Michigan applying Michigan choice of law rules should give effect to the choice of law provisions
of the Loan Documents and should hold that the Loan Documents are to be governed by the laws of the
State of New York rather than the laws of the State of Michigan. In rendering the foregoing
opinion, I note that by their terms the Loan Documents expressly select New York law as the laws
governing their interpretation and that the Loan Documents governed by New York law were delivered
by the parties thereto to the Agent in New York. The choice of law provisions of the Loan
Documents are not voidable under the laws of the State of Michigan.

          7. If, despite the provisions of Section 8.09 of the Credit Agreement, wherein the parties
thereto agree that the Loan Documents shall be governed by, and construed in accordance with, the
laws of the State of New York, a court of the State of Michigan or a federal court sitting in the
State of Michigan were to hold that the Loan Documents are governed by, and to be construed in
accordance with the laws of the State of Michigan, the Loan Documents would be, under the laws of
the State of Michigan, legal, valid and binding obligations of the Borrower, enforceable against
the Borrower in accordance with their respective terms.

          8. Neither the Borrower nor any of its Subsidiaries is an “investment company,” or an
“affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company,” as
such terms are defined in the Investment Company Act of 1940, as amended;

 

 

          The opinions set forth above are subject to the following qualifications:

     (a) My opinion in paragraph 7 above as to enforceability is
subject to the effect of any applicable bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium or laws affecting
creditors’ rights generally.

     (b) My opinion in paragraph 7 above as to enforceability is
subject to the effect of general principles of equity, including,
without limitation, concepts of materiality, reasonableness, good
faith and fair dealing (regardless of whether considered in a
proceeding in equity or at law).

     (c) I express no opinion as to participation and the effect of
the law of any jurisdiction other than the State of Michigan wherein
any Lender may be located or wherein enforcement of the Loan
Documents may be sought that limits the rates of interest legally
chargeable or collectible.

          I am a member of the Bar of the State of Michigan, and do not express any opinion concerning
any law other than the law of the State of Michigan and the federal laws of the United States of
America.

          This opinion letter is rendered to you in connection with the above-described transaction.
This opinion letter may not be relied upon by you for any other purpose, or relied upon by any
other person or entity without my prior written consent (provided, that this opinion letter may be
furnished to and relied upon by a subsequent assignee of, or participant under, the Credit
Agreement and a Note, if any, solely for the purpose of such assignment or participation, subject
to the assumptions, limitations and qualifications, set forth herein, without any prior written
consent). I undertake no duty to inform you or any assignee or participant of events occurring
subsequent to the date hereof.

Very truly yours,

 

 

EXHIBIT
E-2 - FORM OF

OPINION OF HUNTON & WILLIAMS LLP

April 29, 2009

To each of the Lenders party to the

Credit Agreements defined below

DTE Energy Company

The Detroit Edison Company

Michigan Consolidated Gas Company

Ladies and Gentlemen:

          This opinion is delivered to you pursuant to Section 3.01(g)(v) of each of (i) the Two-Year
Credit Agreement (the “DTE Credit Agreement”), dated as of April 29, 2009, among DTE Energy
Company (“DTE”), the financial institutions from time to time parties thereto as “Lenders”
and Citibank, N.A. (“Citibank”), as agent for said Lenders, (ii) the Two-Year Credit
Agreement (the “DECO Credit Agreement”), dated as of April 29, 2009, among The Detroit
Edison Company (“DECO”), the financial institutions from time to time parties thereto as
“Lenders” and Barclays Bank PLC (“Barclays”), as agent for said Lenders, and (iii) the
Two-Year Credit Agreement (the “MichCon Credit Agreement”, and, together with the DTE
Credit Agreement and the DECO Credit Agreement, the “Credit Agreements”), dated as of April
29, 2009, among Michigan Consolidated Gas Company (“MichCon”), the financial institutions
from time to time parties thereto as “Lenders” and JPMorgan Chase Bank, N.A. (“JPMCB”), as
agent for said Lenders. Terms used herein which are defined in each Credit Agreement shall have
the respective meanings set forth in each Credit Agreement, unless otherwise defined herein.

          We have acted as special counsel to the Borrowers in connection with the preparation,
execution and delivery of the Credit Agreements.

          In connection with this opinion we have examined a copy of each Credit Agreement signed by
each of the parties thereto. We have also examined the originals, or duplicates or certified or
conformed copies, of such records, agreements, instruments and other documents and have made such
other investigations as we have deemed relevant and necessary in connection with the opinions
expressed herein. As to questions of fact material to this opinion, we have relied upon
certificates of public officials and of officers and representatives of the Borrowers. In
addition, we have examined, and have relied as to matters of fact upon, the representations made in
the Credit Agreements.

 

 

          In rendering the opinions set forth below, we have assumed the genuineness of all signatures,
the legal capacity of natural persons, the authenticity of all documents submitted to us as
originals, the conformity to original documents of all documents submitted to us as duplicates or
certified or conformed copies, and the authenticity of the originals of such latter documents. We
have assumed without independent investigation that (a) the Loan Documents have been duly
authorized, executed and delivered by the Borrowers, (b) the Borrowers have been duly incorporated
and are validly existing and in good standing under the laws of their jurisdictions of
incorporation and have the corporate power and authority to execute, deliver and perform their
obligations under the Loan Documents, (c) the execution, delivery and performance of the Loan
Documents by each Borrower party thereto (i) have been duly authorized by all necessary corporate
action on their part, (ii) do not contravene their certificates of incorporation or by-laws or,
except as opined upon in paragraph 2 below, violate, or require any consent not obtained under, any
applicable law or regulation or any order, writ, injunction or decree of any court or other
Governmental Authority binding upon any of them and (iii) do not violate, or require any consent
not obtained under, any contractual obligation applicable to or binding upon any of them, and (d)
the Credit Agreements constitute the valid and legally binding obligation of the applicable Agent
and the applicable Lenders.

          Based upon and subject to the foregoing, and subject to the assumptions, qualifications and
comments set forth herein, we are of the opinion that:

     1. Each of the Credit Agreements is the legal, valid and binding obligation of the Borrower
party thereto, enforceable against such Borrower in accordance with its respective terms. Each of
the respective Notes issued on the date hereof, if any, is the legal, valid and binding obligation
of the issuing Borrower, enforceable against such Borrower in accordance with its terms.

     2. The execution, delivery and performance by each of the Borrowers of the Loan Documents to
which it is a party will not violate any Federal or New York statute or any rule or regulation
issued pursuant to any Federal or New York statute.

          Our opinion in paragraph 1 above is subject to (i) the effect of any applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium or laws affecting creditors’ rights
generally, (ii) general equitable principles (regardless of whether enforcement is sought in a
proceeding in equity or at law) and (iii) an implied covenant of good faith and fair dealing.

          We express no opinion with respect to: (a) the effect of any provision of the Loan Documents
that is intended (i) to establish any standard as the measure of the performance by any party
thereto of such party’s obligations of good faith, diligence, fair dealing, reasonableness or care
or (ii) to permit modification thereof only by means of an agreement in writing signed by the
parties thereto; (b) the effect of any provision of the Loan Documents insofar as it provides that
any Person purchasing a participation from a Lender or other Person may exercise set-off or similar
rights with respect to such participation or that any Lender or other Person may exercise set-off
or similar rights other than in accordance with applicable law; (c) the effect of any provision of
the Loan Documents imposing penalties or forfeitures; (d) the effect of any provision of the Loan
Documents relating to indemnification or exculpation in connection with

 

 

violations of any securities laws or relating to indemnification, contribution or exculpation
in connection with willful, reckless or criminal acts or gross negligence of the indemnified or
exculpated Person or the Person receiving contribution; (e) any provision of the Loan Documents
which purports to provide for a waiver by the Borrowers of any immunity, defense or right which may
be available to the Borrowers; and (f) any provision of the Loan Documents which purports to
establish an evidentiary standard for determinations by any Person.

          In connection with the provisions of the Credit Agreements whereby the Borrowers submit to the
jurisdiction of the courts of the United States of America located in the State of New York, we
note the limitations of 28 U.S.C. §§ 1331 and 1332 on subject matter jurisdiction of the Federal
courts. In connection with the provisions of the Credit Agreements that relate to forum selection
(including, without limitation, any waiver of any objection to venue or any objection that a court
is an inconvenient forum), we note that under NYCPLR § 510, a New York State court may have
discretion to transfer the place of trial, and under 28 U.S.C. §1404(a), a United States District
Court has discretion to transfer an action from one Federal court to another.

          We are members of the Bar of the State of New York, and we do not express any opinion
concerning any law other than Federal law and the law of the State of New York.

          This opinion letter is rendered to you in connection with the above-described transactions.
This opinion letter may not be relied upon by you for any other purpose, or relied upon by any
other person or entity without our prior written consent (provided, that this opinion Letter may be
furnished to and relied upon by a subsequent assignee of, or participant under, the Credit
Agreements and a Note, if any, solely for the purpose of such assignment or participation, subject
to the assumptions, limitations and qualifications set forth herein without our prior written
consent). This opinion letter speaks only as of its date, there is no assurance that it will be
correct as of any date after its date, and we undertake no duty to inform you or any assignee or
participant of events occurring subsequent to the date hereof.

Very truly yours,

 

 

EXHIBIT
F - FORM OF

COMPLIANCE CERTIFICATE

COMPLIANCE CERTIFICATE

	 	 	 
	To:

	 	The Lenders parties to the
	 

	 	Credit Agreement Described Below

          This Compliance Certificate is furnished pursuant to that certain Two-Year Credit Agreement,
dated as of April 29, 2009 (as amended or modified from time to time, the “Agreement”)
among DTE Energy Company, a Michigan corporation (the “Borrower”), the lenders parties
thereto, and Citibank, N.A., as Agent for the lenders. Unless otherwise defined herein,
capitalized terms used in this Compliance Certificate have the meanings ascribed thereto in the
Agreement.

          THE UNDERSIGNED HEREBY CERTIFIES THAT:

          1.
I am the duly elected                      of the Borrower;

          2. I have reviewed the terms of the Agreement and I have made, or have caused to be made under
my supervision, a detailed review of the transactions and conditions of the Borrower and its
Subsidiaries during the accounting period covered by the attached financial statements;

          3. The examinations described in paragraph 2 did not disclose, and I have no knowledge of, the
existence of any condition or event which constitutes an Event of Default or Default during or at
the end of the accounting period covered by the attached financial statements or as of the date of
this Certificate, except as set forth below; and

          4. Schedule 1 attached hereto sets forth financial data and computations evidencing the
Borrower’s compliance with certain covenants of the Agreement, all of which data and computations
are true, complete and correct.

          Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature
of the condition or event, the period during which it has existed and the action which the Borrower
has taken, is taking, or proposes to take with respect to each such condition or event:

          The foregoing certifications, together with the computations set forth in Schedule I hereto
and the financial statements delivered with this Certificate in support hereof, are made and
delivered this ___ day of                     ,___.

	 	 	 	 	 	 	 
	 	 	DTE ENERGY COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	

 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

 

 

SCHEDULE 1 TO COMPLIANCE CERTIFICATE

Compliance as of                     , ___with

Provisions of Section 5.01(h) of

the Agreement

FINANCIAL COVENANT

Ratio of Total Funded Debt to Capitalization (Section 6.01(i)).

	 	 	 	 	 
	(A) Numerator (Total Funded Debt):
	 	 	 	 
	(i) Debt for borrowed money or which has been
incurred in connection with the acquisition of
assets (exclusive of contingent reimbursement
obligations in respect of letters of credit
and bankers’ acceptances):
	 	 	$                    	 
	(ii) Minus: Nonrecourse Debt:
	 	 	-$                    	 
	(iii) Minus: Junior Subordinated Debt:
	 	 	-$                    	 
	(iv) Minus: Mandatorily Convertible
Securities:
	 	 	-$                    	 
	(v) Minus: Hybrid Equity Securities:
	 	 	-$                    	 
	(vi) Minus: For any fiscal quarter other than
the fiscal quarter ending on June 30, Excluded
Short-Term Debt:
	 	 	-$                    	 
	(vii) Plus: Capital lease obligations:
	 	 	+$                    	 
	(viii) Plus: Guaranty Obligations of Funded
Debt of other Persons:
	 	 	+$                    	 
	(ix) Numerator: (A)(i) minus (A)(ii) through
(A)(vi) plus (A)(vii) plus (A)(viii):
	 	 	$                    	 
	 
	 	 	 	 
	(B) Denominator (Capitalization):
	 	 	 	 
	(i) Total Funded Debt: (A)(ix)
	 	 	$                    	 
	(ii) Plus: Consolidated Net Worth:
	 	 	+$                    	 
	(iii) Denominator: (B)(i) plus (B)(ii):
	 	 	$                    	 
	(C) State whether the ratio of (A)(ix) to (B)(iii) was not greater than .65:1:
	 	YES/NO

 

 

EXHIBIT
G - FORM OF

LENDER SUPPLEMENT

LENDER SUPPLEMENT

Dated                      ____, 20___

     Reference is made to that certain Two-Year Credit Agreement, dated as of April 29, 2009 (as
amended or modified from time to time, the “Credit Agreement”) among DTE Energy Company, a
Michigan corporation (the “Borrower”), the lenders parties thereto (the “Lenders”),
and Citibank, N.A., as agent for the Lenders (the “Agent”). Unless otherwise defined
herein, capitalized terms used in this Lender Supplement have the meanings ascribed thereto in the
Credit Agreement.

     Pursuant to Section 2.04(c) of the Credit Agreement, the Borrower has requested an increase in
the aggregate Commitments from $                     to $                    . Such increase in the aggregate
Commitments is to become effective on the date (the “Effective Date”) which is the later of
(i)                    ,
20___ and (ii) the date on which the conditions set forth in Section
2.04(c) in respect of such increase have been satisfied. In connection with such requested
increase in the aggregate Commitments, the Borrower, the Agent and                      (the
“Accepting Bank”) hereby agree as follows:

     1. Effective as of the Effective Date, [the Accepting Bank shall become a party to the
Credit Agreement as a Lender and shall have all of the rights and obligations of a Lender
thereunder and shall thereupon have a Commitment under and for purposes of the Credit Agreement in
an amount equal to the] [the Commitment of the Accepting Bank under the Credit
Agreement shall be increased from $                     to the] amount set forth opposite the
Accepting Bank’s name on the signature page hereof.

     [2. The Accepting Bank hereby (a) represents and warrants that (i) it has full power
and authority, and has taken all action necessary, to execute and deliver this Lender Supplement
and to consummate the transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement that are
required to be satisfied by it in order to acquire an interest thereunder and become a Lender,
(iii) from and after the Effective Date, it shall be bound by the provisions of the Credit
Agreement as a Lender thereunder and, to the extent of its interest thereunder, shall have the
obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together
with copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as
applicable, and such other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Lender Supplement and to purchase an interest under
the Credit Agreement on the basis of which it has made such analysis and decision independently and
without reliance on the Agent or any other Lender, and (v) attaches any U.S. Internal Revenue
Service forms required under Section 2.13 of the Credit Agreement; and (b) agrees that (i) it will,
independently and without reliance on the Agent or any other Lender, and based on such documents
and information as it shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under the Loan Documents, and (ii) it

 

 

will perform in accordance with their terms all of the obligations which by the terms of the
Loan Documents are required to be performed by it as a Lender.]4

     [3.] The Borrower hereby represents and warrants that as of the date hereof
and as of the Effective Date, (a) all representations and warranties of the Borrower contained in
Section 4.01 of the Credit Agreement shall be true and correct in all material respects as though
made on such date; provided that, the foregoing representation and warranty, solely with
respect to the representations and warranties set forth in (x) the last sentence of Section 4.01(e)
of the Credit Agreement and (y) Section 4.01(f) of the Credit Agreement, shall be made only as of
the “Effective Date” (as such term is defined in the Credit Agreement); and (b) no event shall have
occurred and then be continuing which constitutes a Default.

     [4.] THIS LENDER SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

     [5.] This Lender Supplement may be executed in one or more counterparts, each
of which shall be deemed an original, but all of which taken together shall constitute one and the
same instrument.

     IN WITNESS WHEREOF, the parties hereto have caused this Lender Supplement to be executed by
their respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 	 	 
	 	 	DTE ENERGY COMPANY, as the Borrower	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

	 	 	 	 	 
	Consented to and Accepted:	 	 
	 
	 	 	 	 
	CITIBANK, N.A., as Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 

	 	 	 	 	 	 	 
	COMMITMENT	 	ACCEPTING BANK	 	 
	 
	 	 	 	 	 	 
	$	 	[BANK]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

 

			
	4	 	To be included only in a Lender Supplement for a new
Lender.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00158-of-00352.parquet"}]]