Common use of Page Clause in Contracts

Page. Article I — Definitions 2 Section 1.1 Use of Defined Terms 2 Section 1.2 Definitions 2 Section 1.3 Certain Words and References 7 Article II — Determination and Representations 8 Section 2.1 Determinations of the Director 8 Section 2.2 Representations, Warranties and Agreements of the Company 8 Section 2.3 Miscellaneous Information Regarding the Company 10 Article III — Loan, Provision of the Project and Conditions to Disbursement 12 Section 3.1 State Loan 12 Section 3.2 Provision of the Project 12 Section 3.3 Establishment Of Completion Date 12 Section 3.4 Company Required to Pay Costs in Event State Loan Proceeds Insufficient 13 Section 3.5 Plans and Specifications; Inspections 13 Section 3.6 Conditions to Disbursement of the State Loan 14 Section 3.7 Disbursement of the State Loan 15 Article IV — Maintenance, Taxes and Insurance 17 Section 4.1 Maintenance and Modifications of Project by the Company 17 Section 4.2 Removal of Project Facilities. 17 Section 4.3 Indemnification by the Company 17 Section 4.4 Taxes, Other Governmental Charges and Utility Charges 18 Section 4.5 Advances 18 Section 4.6 Environmental Matters 18 Article V — Special Covenants 22 Section 5.1 No Warranty of Condition or Suitability 22 Section 5.2 Right of Access to the Project 22 Section 5.3 Information Concerning Operations 22 Section 5.4 Affirmative Covenants Of The Company 22 Section 5.5 Negative Covenants Of The Company 25 Section 5.6 Mechanics’ and Other Liens 26 Section 5.7 Assignment, Sale or Lease by the Company 26 Article VI — Events of Default and Remedies 27 Section 6.1 Events of Default 27 Section 6.2 Remedies 28 Section 6.3 No Remedy Exclusive 28 Page

Page. Article I — Definitions SECTION 1. BASIC DEFINITIONS 1 Section 1.1. Closing Date 1 Section 1.2. Contract Period 1 Section 1.3. Due Diligence Period 1 Section 1.4. Personal Property 1 Section 1.5. Property 1 Section 1.6. Real Property 1 Section 1.7. Title Company 1 SECTION 2. PURCHASE AND SALE 1 Section 2.1. Purchase and Sale 1 Section 2.2. Purchase Price 1 Section 2.3. Buyer’s Review and Seller’s Disclaimer 2 Section 1.1 Use 2.4. Approval of Defined Terms 2 Title Exceptions 6 SECTION 3. CONDITIONS PRECEDENT 7 Section 1.2 Definitions 2 3.1. Buyer’s Conditions 7 Section 1.3 Certain Words and References 7 Article II — Determination 3.2. Seller’s Conditions 8 Section 3.3. Waiver of Conditions Precedent 9 SECTION 4. COVENANTS, WARRANTIES AND REPRESENTATIONS 6 Section 4.1. Seller’s Warranties and Representations 8 9 Section 2.1 Determinations of the Director 8 4.2. Seller’s Covenants 10 Section 2.2 Representations, 4.3. Buyer’s Warranties and Agreements of the Company 8 Section 2.3 Miscellaneous Information Regarding the Company 10 Article III — Loan, Provision of the Project and Conditions to Disbursement Representations 11 SECTION 5. DEPOSIT 11 SECTION 6. BUYER’S DEFAULT AND LIQUIDATED DAMAGES 9 SECTION 7. SELLER’S DEFAULT 12 Section 3.1 State Loan 12 Section 3.2 Provision of the Project 12 Section 3.3 Establishment Of Completion Date 12 Section 3.4 Company Required to Pay Costs in Event State Loan Proceeds Insufficient SECTION 8. ESCROW AND CLOSING 13 Section 3.5 Plans and Specifications; Inspections 8.1. Escrow Arrangements 13 Section 3.6 Conditions to Disbursement of the State Loan 8.2. Closing 14 Section 3.7 Disbursement 8.3. Filing of the State Loan Reports 14 Section 8.4. Prorations and Real Estate Taxes 14 Section 8.5. Other Closing Costs 15 Article IV — Maintenance, Taxes and Insurance 17 Section 4.1 Maintenance and Modifications of Project by the Company 17 Section 4.2 Removal of Project Facilities8.6. 17 Section 4.3 Indemnification by the Company 17 Section 4.4 Taxes, Other Governmental Charges and Utility Charges 18 Section 4.5 Advances 18 Section 4.6 Environmental Matters 18 Article V — Special Covenants 22 Section 5.1 No Warranty of Condition or Suitability 22 Section 5.2 Right of Access to the Project 22 Section 5.3 Information Concerning Operations 22 Section 5.4 Affirmative Covenants Of The Company 22 Section 5.5 Negative Covenants Of The Company 25 Section 5.6 Mechanics’ and Other Liens 26 Section 5.7 Assignment, Sale or Lease by the Company 26 Article VI — Events of Default and Remedies 27 Section 6.1 Events of Default 27 Section 6.2 Remedies 28 Section 6.3 No Remedy Exclusive 28 PagePossession 15 SECTION HEADING

Page. Article I — Section 1. DEFINITIONS; RULES OF CONSTRUCTION 1 1.1 Definitions 2 1 1.2 Accounting Terms 24 1.3 Uniform Commercial Code 24 1.4 Certain Matters of Construction 24 Section 1.1 2. CREDIT FACILITIES 25 2.1 Term Loans 25 2.1.1 Term A Loans 25 2.1.2 Term Notes 25 2.1.3 Use of Defined Terms 2 Proceeds 25 2.1.4 Prepayments 25 Section 1.2 Definitions 2 3. INTEREST AND CHARGES 26 3.1 Rates and Payment of Interest 26 3.2 Computation of Interest and Yield Protection 26 3.3 Reimbursement Obligations 26 3.4 Capital Adequacy 27 3.5 Mitigation 27 3.6 Maximum Interest 27 Section 1.3 4. LOAN ADMINISTRATION 28 4.1 Borrower Representative 28 4.2 One Obligation 28 4.3 Effect of Termination 28 Section 5. PAYMENTS 29 5.1 General Payment Provisions 29 5.2 Payment of Other Obligations 29 5.3 Marshaling; Payments Set Aside 29 5.4 Post-Default Allocation of Payments 29 5.4.1 Allocation 29 5.4.2 Erroneous Application 30 5.5 Loan Account 30 5.6 Taxes 30 5.6.1 Payments Free of Taxes 30 5.6.2 Payment 30 5.6.3 Refunds 31 5.7 Lender Tax Information 31 5.7.1 Status of Lenders 31 5.7.2 Documentation 31 5.7.3 Lender Obligations 32 5.8 Nature and Extent of Each Borrower’s Liability 32 5.8.1 Joint and Several Liability 32 5.8.2 Waivers 33 5.8.3 Extent of Liability; Contribution 34 5.8.4 Joint Enterprise 34 5.8.5 Subordination 34 Section 6. CONDITIONS PRECEDENT 35 6.1 Conditions Precedent 35 Section 7. COLLATERAL 36 7.1 Security Reaffirmation 36 7.2 Administration of Accounts 36 7.3 Administration of Inventory 37 7.3.1 Records and Reports of Inventory 37 7.3.2 Returns of Inventory 37 7.3.3 Acquisition, Sale and Maintenance 37 7.4 [Intentionally Omitted] 37 7.5 Administration of Deposit Accounts and Securities Accounts 37 7.6 General Provisions 38 7.6.1 Location of Collateral 38 7.6.2 Insurance of Collateral 38 Section 8. REPRESENTATIONS AND WARRANTIES 39 8.1 General Representations and Warranties 39 8.1.1 Organization and Qualification 39 8.1.2 Power and Authority 39 8.1.3 Enforceability 39 8.1.4 Capital Structure 39 8.1.5 Corporate Names; Locations 39 8.1.6 Title to Properties; Priority of Liens 40 8.1.7 Financial Statements 40 8.1.8 Surety Obligations 40 8.1.9 Taxes 40 8.1.10 Brokers 41 8.1.11 Intellectual Property 41 8.1.12 Governmental Approvals 41 8.1.13 Compliance with Laws 41 8.1.14 Compliance with Environmental Laws 41 8.1.15 Burdensome Contracts 42 8.1.16 Litigation 42 8.1.17 No Defaults 42 8.1.18 ERISA 42 8.1.19 Trade Relations 42 8.1.20 Labor Relations 43 8.1.21 Payable Practices 43 8.1.22 Not a Regulated Entity 43 8.1.23 Margin Stock 43 8.1.24 Plan Assets 43 8.1.25 Immaterial Subsidiaries 43 8.1.26 Patriot Act 43 8.1.27 OFAC 43 8.1.28 Nature of Business 44 8.1.29 Material Contracts 44 8.1.30 No Bankruptcy Filing 44 8.2 Complete Disclosure 44 Section 9. COVENANTS AND CONTINUING AGREEMENTS 44 9.1 Affirmative Covenants 44 9.1.1 Inspections 44 9.1.2 Financial and Other Information 45 9.1.3 Notices 47 9.1.4 Landlord and Storage Agreements 47 9.1.5 Compliance with Laws 48 9.1.6 Taxes 48 9.1.7 Insurance 48 9.1.8 Licenses 48 9.1.9 Future Subsidiaries 48 9.1.10 Additional Guarantors 49 9.1.11 Preservation of Existence, Etc. 49 9.1.12 Keeping of Records and Books of Account 49 9.1.13 Maintenance of Properties, Etc. 49 9.1.14 Obtaining of Permits, Etc. 49 9.1.15 Further Assurances 49 9.2 Negative Covenants 50 9.2.1 Permitted Debt 50 9.2.2 Permitted Liens 51 9.2.3 [Intentionally Omitted] 52 9.2.4 Distributions; Upstream Payments 52 9.2.5 Restricted Investments 53 9.2.6 Disposition of Assets 53 9.2.7 Loans; Extensions of Credit 53 9.2.8 Restrictions on Payment of Certain Words and References 7 Article II — Determination and Representations 8 Section 2.1 Determinations Debt 53 9.2.9 Fundamental Changes 53 9.2.10 Subsidiaries 54 9.2.11 Organic Documents 54 9.2.12 Tax Consolidation 54 9.2.13 Accounting Changes 54 9.2.14 Restrictive Agreements 54 9.2.15 Hedging Agreements 54 9.2.16 Conduct of the Director 8 Section 2.2 Representations, Warranties and Agreements of the Company 8 Section 2.3 Miscellaneous Information Regarding the Company 10 Article III — Loan, Provision of the Project and Conditions to Disbursement 12 Section 3.1 State Loan 12 Section 3.2 Provision of the Project 12 Section 3.3 Establishment Of Completion Date 12 Section 3.4 Company Required to Pay Costs in Event State Loan Proceeds Insufficient 13 Section 3.5 Business 54 9.2.17 Affiliate Transactions 54 9.2.18 Plans and Specifications; Inspections 13 Section 3.6 Conditions to Disbursement of the State Loan 14 Section 3.7 Disbursement of the State Loan 15 Article IV — Maintenance, Taxes and Insurance 17 Section 4.1 Maintenance and Modifications of Project by the Company 17 Section 4.2 Removal of Project Facilities. 17 Section 4.3 Indemnification by the Company 17 Section 4.4 Taxes, Other Governmental Charges and Utility Charges 18 Section 4.5 Advances 18 Section 4.6 Environmental Matters 18 Article V — Special Covenants 22 Section 5.1 No Warranty of Condition or Suitability 22 Section 5.2 Right of Access 55 9.2.19 Amendments to the Project 22 Indenture, Convertible Debenture, the Convertible Debenture Agreement, the Indenture Guaranty, the Convertible Debenture Guaranty, Revolver Agreement or Subordinated Debt 55 9.2.20 Immaterial Subsidiaries 55 9.2.21 Fixed Charge Coverage Ratio 56 9.2.22 Federal Reserve Regulations 56 9.2.23 Investment Company Act of 1940 56 9.2.24 2009 Debenture Intercreditor Agreement 56 Section 5.3 Information Concerning Operations 22 Section 5.4 Affirmative Covenants Of The Company 22 Section 5.5 Negative Covenants Of The Company 25 Section 5.6 Mechanics’ and Other Liens 26 Section 5.7 Assignment, Sale or Lease by the Company 26 Article VI — 10. EVENTS OF DEFAULT; REMEDIES ON DEFAULT 56 10.1 Events of Default 56 10.2 Remedies upon Default 58 10.3 License 59 10.4 Setoff 59 10.5 Remedies Cumulative; No Waiver 60 10.5.1 Cumulative Rights 60 10.5.2 Waivers 60 Section 11. COLLATERAL AGENT 60 11.1 Appointment, Authority and Remedies 27 Section 6.1 Events Duties of Collateral Agent 60 11.1.1 Appointment and Authority 60 11.1.2 Duties 61 11.1.3 Collateral Agent Professionals 61 11.1.4 Instructions of Required Lenders 61 11.2 Agreements Regarding Collateral and Field Examination Reports 61 11.2.1 Lien Releases; Care of Collateral 61 11.2.2 Possession of Collateral 62 11.2.3 Reports 62 11.3 Reliance By Collateral Agent 62 11.4 Action Upon Default 27 Section 6.2 Remedies 28 Section 6.3 62 11.5 Ratable Sharing 63 11.6 Indemnification of Agent Indemnitees 63 11.6.1 Indemnification 63 11.6.2 Proceedings 64 11.7 Limitation on Responsibilities of Collateral Agent 64 11.8 Successor Agent and Co-Agents 64 11.8.1 Resignation; Successor Collateral Agent 64 11.8.2 Separate Collateral Agent 65 11.9 Due Diligence and Non-Reliance 65 11.10 No Remedy Exclusive 28 PageThird Party Beneficiaries 65 11.11 Collateral Agent in its Individual Capacity 66

Page. Article I — Definitions SECTION 1. AUTHORIZATION OF NOTES 1 Section 1.1. Description of Notes 1 Section 1.2. Interest Rate 1 SECTION 2. SALE AND PURCHASE OF NOTES 2 Section 1.1 Use of Defined Terms 2.1. Series A Notes 2 Section 1.2 Definitions 2.2. Additional Series of Notes 2 Section 1.3 Certain Words 2.3. Each Series Ranks Pari Passu 3 SECTION 3. CLOSING DATE AND FUNDING DATE 4 SECTION 4. CONDITIONS TO CLOSING AND FUNDING 4 Section 4.1. Representations and References Warranties 4 Section 4.2. Performance; No Default 4 Section 4.3. Compliance Certificates 5 Section 4.4. Opinions of Counsel 5 Section 4.5. Purchase Permitted By Applicable Law, Etc 5 Section 4.6. Sale of Other Notes 5 Section 4.7. Payment of Special Counsel Fees 6 Section 4.8. Private Placement Number 6 Section 4.9. Changes in Corporate Structure 6 Section 4.10. Funding Instructions 6 Section 4.11. Proceedings and Documents 6 SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY 6 Section 5.1. Organization; Power and Authority 6 Section 5.2. Authorization, Etc 6 Section 5.3. Disclosure 7 Article II — Determination Section 5.4. Organization and Representations Ownership of Shares of Subsidiaries; Affiliates 7 Section 5.5. Financial Statements; Material Liabilities 8 Section 2.1 Determinations of the Director 5.6. Compliance with Laws, Other Instruments, Etc 8 Section 2.2 Representations5.7. Governmental Authorizations, Warranties and Agreements of the Company Etc 8 Section 2.3 Miscellaneous Information Regarding the Company 5.8. Litigation; Observance of Agreements, Statutes and Orders 8 Section 5.9. Taxes 9 Section 5.10. Title to Property; Leases 9 Section 5.11. Licenses, Permits, Etc 9 Section 5.12. Compliance with ERISA 10 Article III — Loan, Provision of the Project and Conditions to Disbursement 12 Section 3.1 State Loan 12 Section 3.2 Provision of the Project 12 Section 3.3 Establishment Of Completion Date 12 Section 3.4 Company Required to Pay Costs in Event State Loan Proceeds Insufficient 13 Section 3.5 Plans and Specifications; Inspections 13 Section 3.6 Conditions to Disbursement of the State Loan 14 Section 3.7 Disbursement of the State Loan 15 Article IV — Maintenance, Taxes and Insurance 17 Section 4.1 Maintenance and Modifications of Project 5.13. Private Offering by the Company 17 11 Section 4.2 Removal 5.14. Use of Project FacilitiesProceeds; Margin Regulations 11 Section 5.15. 17 Existing Debt; Future Liens 11 Section 4.3 Indemnification 5.16. Foreign Assets Control Regulations, Etc 12 Section 5.17. Status under Certain Statutes 12 Section 5.18. Environmental Matters 12 Section 5.19. Notes Rank Pari Passu 13 SECTION 6. REPRESENTATIONS OF THE PURCHASER 13 Section 6.1. Purchase for Investment 13 Section 6.2. Accredited Investor 13 Section 6.3. Source of Funds 13 SECTION 7. INFORMATION AS TO COMPANY 15 Section 7.1. Financial and Business Information 15 Section 7.2. Officer’s Certificate 18 Section 7.3. Visitation 18 SECTION 8. PAYMENT OF THE NOTES 18 Section 8.1. Required Prepayments 18 Section 8.2. Optional Prepayments with Make-Whole Amount 19 Section 8.3. Allocation of Partial Prepayments 19 Section 8.4. Maturity; Surrender, Etc. 19 Section 8.5. Purchase of Notes 20 Section 8.6. Make-Whole Amount for the Series A Notes 20 SECTION 9. AFFIRMATIVE COVENANTS 21 Section 9.1. Compliance with Law 21 Section 9.2. Insurance 21 Section 9.3. Maintenance of Properties 22 Section 9.4. Payment of Taxes and Claims 22 Section 9.5. Corporate Existence, Etc 22 Section 9.6. Designation of Subsidiaries 22 Section 9.7. Notes to Rank Pari Passu 23 Section 9.8. Additional Subsidiary Guarantors 23 Section 9.9. Books and Records 24 SECTION 10. NEGATIVE COVENANTS 24 Section 10.1. Consolidated Net Worth 24 Section 10.2. Consolidated Debt to Consolidated Total Capitalization 24 Section 10.3. Interest Coverage Ratio 24 Section 10.4. Priority Debt 24 Section 10.5. Limitation on Liens 24 Section 10.6. Sales of Asset 26 Section 10.7. Merger and Consolidation 27 Section 10.8. Restrictions on Investments 28 Section 10.9. Transactions with Affiliates 28 Section 10.10. Terrorism Sanctions Regulations 28 SECTION 11. EVENTS OF DEFAULT 28 SECTION 12. REMEDIES ON DEFAULT, ETC 31 Section 12.1. Acceleration 31 Section 12.2. Other Remedies 31 Section 12.3. Rescission 31 Section 12.4. No Waivers or Election of Remedies, Expenses, Etc 32 SECTION 13. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES 32 Section 13.1. Registration of Notes 32 Section 13.2. Transfer and Exchange of Notes 32 Section 13.3. Replacement of Notes 33 Section 13.4. Prohibition on Transfer to a Competitor 33 SECTION 14. PAYMENTS ON NOTES 34 Section 14.1. Place of Payment 34 Section 14.2. Home Office Payment 34 SECTION 15. EXPENSES, ETC 34 Section 15.1. Transaction Expenses 34 Section 15.2. Survival 35 SECTION 16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT 35 SECTION 17. AMENDMENT AND WAIVER 35 Section 17.1. Requirements 35 Section 17.2. Solicitation of Holders of Notes 36 Section 17.3. Binding Effect, Etc 37 Section 17.4. Notes Held by Company, Etc 37 SECTION 18. NOTICES 37 SECTION 19. REPRODUCTION OF DOCUMENTS 38 SECTION 20. CONFIDENTIAL INFORMATION 38 SECTION 21. SUBSTITUTION OF PURCHASER 39 SECTION 22. MISCELLANEOUS 40 Section 22.1. Successors and Assigns 40 Section 22.2. Payments Due on Non-Business Days 40 Section 22.3. Accounting Terms 40 Section 22.4. Severability 40 Section 22.5. Construction 40 Section 22.6. Counterparts 40 Section 22.7. Governing Law 41 Section 22.8. Jurisdiction and Process; Waiver of Jury Trial 41 SCHEDULE A — INFORMATION RELATING TO PURCHASERS SCHEDULE B — DEFINED TERMS SCHEDULE 4.9 — Changes in Corporate Structure SCHEDULE 5.4 — Subsidiaries of the Company, Ownership of Subsidiary Stock, Affiliates SCHEDULE 5.5 — Financial Statements SCHEDULE 5.8 — Disclosure of Certain Litigation SCHEDULE 5.11 — Licenses, Permits, Etc. SCHEDULE 5.15 — Existing Debt SCHEDULE 5.18 — Disclosure of Certain Environmental Matters SCHEDULE 10.5 — Existing Liens EXHIBIT 1(a) — Form of 5.69% Series 2005-A Senior Notes, due November 1, 2018 EXHIBIT 4.4(a) — Form of Opinion of General Counsel to the Company 17 Section 4.4 Taxes, Other Governmental Charges and Utility Charges 18 Section 4.5 Advances 18 Section 4.6 Environmental Matters 18 Article V EXHIBIT 4.4(b) — Form of Opinion of Special Covenants 22 Section 5.1 No Warranty of Condition or Suitability 22 Section 5.2 Right of Access Counsel to the Project 22 Section 5.3 Information Concerning Operations 22 Section 5.4 Affirmative Covenants Of The Company 22 Section 5.5 Negative Covenants Of The Company 25 Section 5.6 Mechanics’ and Other Liens 26 Section 5.7 Assignment, Sale or Lease by EXHIBIT 4.4(c) — Form of Opinion of Special Counsel to the Purchasers EXHIBIT S — Form of Supplement to Note Purchase Agreement EXHIBIT 8.8(b) — Form of Opinion of Special Counsel to the Company 26 Article VI — Events STEPAN COMPANY XXXXX AND XXXXXXXX XXXX XXXXXXXXXX, XXXXXXXX 00000 $40,000,000 5.69% SERIES 2005-A SENIOR NOTES, DUE NOVEMBER 1, 2018 Dated as of Default September 29, 2005 TO THE PURCHASERS LISTED IN THE ATTACHED SCHEDULE A: Ladies and Remedies 27 Section 6.1 Events of Default 27 Section 6.2 Remedies 28 Section 6.3 No Remedy Exclusive 28 PageGentlemen: STEPAN COMPANY, a Delaware corporation (the “Company”), agrees with the Purchasers listed in the attached Schedule A (the “Purchasers”) to this Note Purchase Agreement (this “Agreement”) as follows:

Page. Article I — Definitions Section 1. The Credits 1 Section 1.1. Revolving Credit 1 Section 1.2. Revolving Credit Loans 1 Section 1.3. Letters of Credit 2 Section 1.1 1.4. Term Credit 3 Section 1.5. Manner and Disbursement of Loans 4 Section 2. Interest and Change In Circumstances 5 Section 2.1. Interest Rate Options 5 Section 2.2. Minimum LIBOR Portions 6 Section 2.3. Computation of Interest 6 Section 2.4. Manner of Rate Selection 6 Section 2.5. Change of Law 6 Section 2.6 Unavailability of Deposits or Inability to Ascertain Adjusted LIBOR 7 Section 2.7. Taxes and Increased Costs 7 Section 2.8. Funding Indemnity 8 Section 2.9. Lending Branch 8 Section 2.10. Discretion of Lender as to Manner of Funding 8 Section 3. Fees, Prepayments, Terminations, and Applications 9 Section 3.1. Fees 9 Section 3.2. Voluntary Prepayments 9 Section 3.3. Mandatory Termination 10 Section 3.4. Voluntary Terminations 10 Section 3.5. Place and Application of Payments 10 Section 3.6. Notations 10 Section 4. Definitions; Interpretation 11 Section 4.1. Definitions 11 Section 4.2. Interpretation 17 Section 5. Representations and Warranties 18 Section 5.1. Organization and Qualification 18 Section 5.2. Subsidiaries 18 Section 5.3. Corporate Authority and Validity of Obligations 19 Section 5.4. Use of Defined Terms 2 Proceeds; Margin Stock 19 Section 1.2 Definitions 2 5.5. Financial Reports 19 Section 1.3 Certain Words 5.6. No Material Adverse Change 20 Section 5.7. Full Disclosure 20 Section 5.8. Good Title 20 Section 5.9. Litigation and References 7 Article II — Determination and Representations 8 Other Controversies 20 Section 2.1 Determinations 5.10. Taxes 20 Section 5.11. Approvals 21 Section 5.12. Affiliate Transactions 21 Section 5.13. Investment Company; Public Utility Holding Company 21 Section5.14. ERISA 21 Section5.15. Compliance with Laws 21 Section 5.16. Other Agreements 22 Section 5.17. Merger 22 Section 5.18. No Default 22 Section 6. Conditions Precedent 22 Section 6.1. All Advances 23 Section 6.2. Initial Advance 23 Section 7. Covenants 24 Section 7.1. Maintenance of the Director 8 Business 24 Section 2.2 Representations, Warranties and Agreements 7.2. Maintenance of the Company 8 Properties 25 Section 2.3 Miscellaneous Information Regarding the Company 10 Article III — Loan, Provision of the Project and Conditions to Disbursement 12 Section 3.1 State Loan 12 Section 3.2 Provision of the Project 12 Section 3.3 Establishment Of Completion Date 12 Section 3.4 Company Required to Pay Costs in Event State Loan Proceeds Insufficient 13 Section 3.5 Plans and Specifications; Inspections 13 Section 3.6 Conditions to Disbursement of the State Loan 14 Section 3.7 Disbursement of the State Loan 15 Article IV — Maintenance, 7.3. Taxes and Insurance 17 Section 4.1 Maintenance and Modifications of Project by the Company 17 Section 4.2 Removal of Project Facilities. 17 Section 4.3 Indemnification by the Company 17 Section 4.4 Taxes, Other Governmental Charges and Utility Charges 18 Section 4.5 Advances 18 Section 4.6 Environmental Matters 18 Article V — Special Covenants 22 Section 5.1 No Warranty of Condition or Suitability 22 Section 5.2 Right of Access to the Project 22 Section 5.3 Information Concerning Operations 22 Section 5.4 Affirmative Covenants Of The Company 22 Section 5.5 Negative Covenants Of The Company Assessments 25 Section 5.6 Mechanics’ and Other Liens 7.4. Insurance 25 Section 7.5. Financial Reports 26 Section 5.7 Assignment, Sale or Lease by 7.6. Inspection 27 Section 7.7. Non-Performing Assets 28 Section 7.8. Regulatory Capital Requirements 28 Section 7.9. Adjusted Net Worth 28 Section 7.10. Adjusted Net Income 28 Section 7.11. Indebtedness for Borrowed Money 28 Section 7.12. Liens 30 Section 7.13. Mergers and Consolidations 30 Section 7.14. Maintenance of Subsidiaries 30 Section 7.15. Dividends and Certain Other Restricted Payments 30 Section 7.16. ERISA 30 Section 7.17. Compliance with Laws 30 Section 7.18. Burdensome Contracts With Affiliates 31 Section 7.19. Change in the Company 26 Article VI — Nature of Business 31 Section 7.20. Subordinated Debt 31 Section 8. Events of Default and Remedies 27 31 Section 6.1 8.1. Events of Default 27 31 Section 6.2 Remedies 28 8.2. Non-Bankruptcy Defaults 33 Section 6.3 No Remedy Exclusive 28 Page8.3. Bankruptcy Defaults 33 Section 8.4. Collateral for Undrawn Letters of Credit 34

Page. Article I — Definitions 2 Section 1.1 Use of Defined Terms 2 5.10 Title to Property; Leases 7 Section 1.2 Definitions 2 5.11 Licenses, Permits, Etc 7 Section 1.3 Certain Words and References 7 Article II — Determination and Representations 5.12 Compliance with ERISA 8 Section 2.1 Determinations of the Director 8 Section 2.2 Representations, Warranties and Agreements of the Company 8 Section 2.3 Miscellaneous Information Regarding the Company 10 Article III — Loan, Provision of the Project and Conditions to Disbursement 12 Section 3.1 State Loan 12 Section 3.2 Provision of the Project 12 Section 3.3 Establishment Of Completion Date 12 Section 3.4 Company Required to Pay Costs in Event State Loan Proceeds Insufficient 13 Section 3.5 Plans and Specifications; Inspections 13 Section 3.6 Conditions to Disbursement of the State Loan 14 Section 3.7 Disbursement of the State Loan 15 Article IV — Maintenance, Taxes and Insurance 17 Section 4.1 Maintenance and Modifications of Project 5.13 Private Offering by the Company 9 Section 5.14 Use of Proceeds; Margin Regulations 9 Section 5.15 Existing Debt; Future Liens 9 Section 5.16 Foreign Assets Control Regulations, Etc 10 Section 5.17 Status under Certain Statutes 10 Section 5.18 Investment Company Act 10 Section 5.19 Environmental Matters 11 Section 5.20 Notes Rank Pari Passu 11 Section 5.21 Credit and Collection Policy 11 SECTION 6. REPRESENTATIONS OF THE PURCHASERS 11 Section 6.1 Purchase for Investment 11 Section 6.2 Source of Funds 12 Section 6.3 Accredited Investor 13 SECTION 7. INFORMATION AS TO COMPANY 13 Section 7.1 Financial and Business Information 13 Section 7.2 Officer’s Certificate 15 Section 7.3 Inspection 16 SECTION 8. PREPAYMENT OF THE NOTES 16 Section 8.1 Required Prepayments 16 Section 8.2 Optional Prepayments with Make-Whole Amount 16 Section 8.3 Prepayment for Tax Reasons 17 Section 4.2 Removal 8.4 Allocation of Project Facilities. 17 Section 4.3 Indemnification by the Company 17 Section 4.4 Taxes, Other Governmental Charges and Utility Charges Partial Prepayments 18 Section 4.5 Advances 8.5 Maturity; Surrender, Etc 18 Section 4.6 Environmental Matters 8.6 Purchase of Notes 18 Article V — Special Covenants 22 Section 5.1 No Warranty 8.7 Make-Whole Amount 18 Section 8.8 Payments Free and Clear of Condition or Suitability 22 Taxes 20 SECTION 9. AFFIRMATIVE COVENANTS 23 Section 5.2 Right 9.1 Compliance with Law 23 TABLE OF CONTENTS (Not a part of Access to the Project 22 Section 5.3 Information Concerning Operations 22 Section 5.4 Affirmative Covenants Of The Company 22 Section 5.5 Negative Covenants Of The Company 25 Section 5.6 Mechanics’ and Other Liens 26 Section 5.7 Assignment, Sale or Lease by the Company 26 Article VI — Events of Default and Remedies 27 Section 6.1 Events of Default 27 Section 6.2 Remedies 28 Section 6.3 No Remedy Exclusive 28 PageAgreement) SECTION HEADING

Page. Article I — Definitions 2 Section 1.1 5.1.2 Shares of Borrower; Subsidiaries; and Subsidiary Shares 58 5.1.3 Power and Authority 58 5.1.4 Validity and Binding Effect 58 5.1.5 No Conflict 59 5.1.6 Litigation 59 5.1.7 Financial Statements 59 5.1.8 Use of Defined Terms 2 Section 1.2 Definitions 2 Section 1.3 Certain Words Proceeds; Margin Stock 60 5.1.9 Full Disclosure 61 5.1.10 Taxes 61 5.1.11 Consents and References 7 Article II — Determination Approvals 61 5.1.12 No Event of Default; Compliance With Instruments and Representations 8 Section 2.1 Determinations of the Director 8 Section 2.2 Representations, Warranties and Agreements of the Company 8 Section 2.3 Miscellaneous Information Regarding the Company 10 Article III — Loan, Provision of the Project and Conditions to Disbursement 12 Section 3.1 State Loan 12 Section 3.2 Provision of the Project 12 Section 3.3 Establishment Of Completion Date 12 Section 3.4 Company Required to Pay Costs in Event State Loan Proceeds Insufficient 13 Section 3.5 Material Contracts 62 5.1.13 Insurance 62 5.1.14 Compliance With Laws 62 5.1.15 Investment Companies; Regulated Entities 63 5.1.16 Plans and SpecificationsBenefit Arrangements 63 5.1.17 Employment Matters 64 5.1.18 Environmental Health and Safety Matters 64 5.1.19 Senior Debt Status 65 5.1.20 Property Matters 65 5.1.21 Patents, Trademarks, Copyrights, Licenses, Etc 67 5.1.22 Security Interests and Mortgage Liens 67 5.1.23 Status of Pledged Collateral 68 5.1.24 Solvency 68 5.1.25 Anti-Terrorism Laws 69 5.1.26 Surety Bonds 70 5.1.27 Coal Supply Agreements 70 5.2 Updates to Schedules 70 6. CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT 70 6.1 First Loans and Letters of Credit 71 6.1.1 Officer’s Certificate 71 6.1.2 Secretary’s Certificate 71 6.1.3 Delivery of Loan Documents 71 6.1.4 Opinion of Counsel 72 6.1.5 Legal Details 72 6.1.6 Payment of Fees 72 6.1.7 Consents 72 6.1.8 Officer’s Certificate Regarding No Material Adverse Change and Solvency 72 6.1.9 No Violation of Laws 73 6.1.10 No Actions or Proceedings 73 6.1.11 Insurance Policies; Inspections 13 Section 3.6 Conditions to Disbursement Certificates of the State Loan 14 Section 3.7 Disbursement of the State Loan 15 Article IV — Maintenance, Taxes and Insurance 17 Section 4.1 Maintenance and Modifications of Project by the Company 17 Section 4.2 Removal of Project Facilities. 17 Section 4.3 Indemnification by the Company 17 Section 4.4 Taxes, Other Governmental Charges and Utility Charges 18 Section 4.5 Advances 18 Section 4.6 Insurance; Endorsements 73 6.1.12 Satisfactory Environmental Matters 18 Article V — Special Covenants 22 Section 5.1 No Warranty of Condition or Suitability 22 Section 5.2 Right of Access to the Project 22 Section 5.3 Information Concerning Operations 22 Section 5.4 Affirmative Covenants Of The Company 22 Section 5.5 Negative Covenants Of The Company 25 Section 5.6 Mechanics’ Review 73 6.1.13 Satisfactory ERISA Review and Other Liens 26 Due Diligence 73 6.1.14 UCC, Lien and Judgment Searches 74 6.1.15 Filing Receipts 74 6.1.16 Repayment of Certain Indebtedness 74 - iii - TABLE OF CONTENTS Section 5.7 Assignment, Sale or Lease by the Company 26 Article VI — Events of Default and Remedies 27 Section 6.1 Events of Default 27 Section 6.2 Remedies 28 Section 6.3 No Remedy Exclusive 28 Page

Page. Article I — Definitions 2 Section 1.1 Use 5.16 Citizenship; Flag of Defined Terms 2 Vessel; Vessel Classifications; Operation of Vessels 129 Section 1.2 Definitions 2 5.17 Designation of Subsidiaries 131 Section 1.3 Certain Words 5.18 Material Agreements 132 Section 5.19 Ship Management 132 ARTICLE VI NEGATIVE COVENANTS 132 Section 6.01 Indebtedness 132 Section 6.02 Liens 134 Section 6.03 Sale and References 7 Article II — Determination Leaseback Transactions 137 Section 6.04 Investments, Loans and Representations 8 Advances 138 Section 2.1 Determinations 6.05 Mergers and Consolidations 139 Section 6.06 Asset Sales 140 Section 6.07 Acquisitions 142 Section 6.08 Dividends 142 Section 6.09 Transactions with Affiliates 143 Section 6.10 Financial Covenant 144 Section 6.11 Prepayments of the Director 8 Section 2.2 Representations, Warranties and Agreements of the Company 8 Section 2.3 Miscellaneous Information Regarding the Company 10 Article III — Loan, Provision of the Project and Conditions to Disbursement 12 Section 3.1 State Loan 12 Section 3.2 Provision of the Project 12 Section 3.3 Establishment Of Completion Date 12 Section 3.4 Company Required to Pay Costs in Event State Loan Proceeds Insufficient 13 Section 3.5 Plans and SpecificationsOther Indebtedness; Inspections 13 Section 3.6 Conditions to Disbursement of the State Loan 14 Section 3.7 Disbursement of the State Loan 15 Article IV — Maintenance, Taxes and Insurance 17 Section 4.1 Maintenance and Modifications of Project by Organizational Documents and Certain Other Documents, etc. 144 Section 6.12 Limitation on Certain Restrictions on Subsidiaries 145 Section 6.13 Limitation on Issuance of Capital Stock 145 Section 6.14 Business 146 Section 6.15 Limitation on Accounting Changes 146 Section 6.16 Fiscal Periods 146 Section 6.17 No Further Negative Pledge 146 Section 6.18 Anti-Terrorism Law; Anti-Money Laundering 147 Section 6.19 Embargoed Person 147 Section 6.20 Restrictions on Chartering, etc. 147 Section 6.21 Additional Holdings Covenants 147 Section 6.22 Amended Reorganization Plan and Confirmation Order 147 ARTICLE VII GUARANTEE 148 Section 7.01 The Guarantee 148 Section 7.02 Obligations Unconditional 149 Section 7.03 Reinstatement 149 Section 7.04 Subrogation; Subordination 149 Section 7.05 Remedies 149 Section 7.06 Instrument for the Company 17 Payment of Money 149 Section 4.2 Removal 7.07 Continuing Guarantee 150 Section 7.08 General Limitation on Guarantee Obligations 150 Section 7.09 Release of Project Facilities. 17 Guarantors 150 Section 4.3 Indemnification by the Company 17 Section 4.4 Taxes, Other Governmental Charges and Utility Charges 18 Section 4.5 Advances 18 Section 4.6 Environmental Matters 18 Article V — Special Covenants 22 Section 5.1 No Warranty of Condition or Suitability 22 Section 5.2 7.10 Right of Access to the Project 22 Contribution 150 Section 5.3 Information Concerning Operations 22 Section 5.4 Affirmative Covenants Of The Company 22 Section 5.5 Negative Covenants Of The Company 25 Section 5.6 Mechanics’ and Other Liens 26 Section 5.7 Assignment, Sale or Lease by the Company 26 Article VI — Events of Default and Remedies 27 Section 6.1 Events of Default 27 Section 6.2 Remedies 28 Section 6.3 No Remedy Exclusive 28 Page7.11 Keepwell 150

Page. Article I — Definitions SECTION 1. AUTHORIZATION OF NOTES 1 SECTION 2. SALE AND PURCHASE OF NOTES 1 SECTION 3. CLOSING 1 SECTION 4. CONDITIONS TO CLOSING 2 Section 1.1 Use of Defined Terms 4.1 Representations and Warranties 2 Section 1.2 Definitions 4.2 Performance; No Default 2 Section 1.3 Certain Words 4.3 Compliance Certificates 2 Section 4.4 Opinions of Counsel 2 Section 4.5 Purchase Permitted by Applicable Law, Etc. 2 Section 4.6 Related Transactions 3 Section 4.7 Payment of Special Counsel Fees 3 Section 4.8 Private Placement Number 3 Section 4.9 Changes in Corporate Structure 3 Section 4.10 Funding Instructions 3 Section 4.11 Proceedings and References Documents 3 SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY 3 Section 5.1 Organization; Power and Authority 3 Section 5.2 Authorization, Etc. 4 Section 5.3 Disclosure 4 Section 5.4 Organization and Ownership of Shares of Subsidiaries; Affiliates 4 Section 5.5 Financial Statements 5 Section 5.6 Compliance with Laws, Other Instruments, Etc. 5 Section 5.7 Governmental Authorizations, Etc. 5 Section 5.8 Litigation; Observance of Agreements, Statutes and Orders 6 Section 5.9 Taxes 6 Section 5.10 Title to Property; Leases 6 Section 5.11 Licenses, Permits, Etc. 6 Section 5.12 Compliance with ERISA 7 Article II — Determination and Representations 8 Section 2.1 Determinations of the Director 8 Section 2.2 Representations, Warranties and Agreements of 5.13 Private Offering by the Company 8 Section 2.3 Miscellaneous 5.14 Use of Proceeds; Margin Regulations 8 Section 5.15 Existing Debt; Future Liens 8 Section 5.16 Foreign Assets Control Regulations, Etc. 9 Section 5.17 Status under Certain Statutes 9 Section 5.18 Investment Company Act 9 Section 5.19 Environmental Matters 10 Section 5.20 Notes Rank Pari Passu 10 Section 5.21 Credit and Collection Policy 10 SECTION 6. REPRESENTATIONS OF THE PURCHASERS 10 Section 6.1 Purchase for Investment 10 Section 6.2 Source of Funds 11 Section 6.3 Accredited Investor 11 SECTION 7. INFORMATION AS TO COMPANY 11 Section 7.1 Financial and Business Information Regarding the Company 10 Article III — Loan, Provision of the Project and Conditions to Disbursement 12 11 Section 3.1 State Loan 12 Section 3.2 Provision of the Project 12 Section 3.3 Establishment Of Completion Date 12 Section 3.4 Company Required to Pay Costs in Event State Loan Proceeds Insufficient 7.2 Officer’s Certificate 13 Section 3.5 Plans and Specifications; Inspections 13 Section 3.6 Conditions to Disbursement of the State Loan 7.3 Inspection 14 SECTION 8. PREPAYMENT OF THE NOTES 14 Section 3.7 Disbursement 8.1 Required Prepayments 14 Section 8.2 Optional Prepayments 14 Section 8.3 Allocation of the State Loan Partial Prepayments 15 Article IV — MaintenanceSection 8.4 Maturity; Surrender, Etc. 15 Section 8.5 Purchase of Notes 15 Section 8.6 [Reserved] 15 SECTION 9. AFFIRMATIVE COVENANTS 16 Section 9.1 Compliance with Law 16 Section 9.2 Insurance 16 Section 9.3 Maintenance of Properties 16 Section 9.4 Payment of Taxes and Insurance 17 Claims 16 Section 4.1 Maintenance and Modifications of Project by the Company 17 Section 4.2 Removal of Project Facilities9.5 Corporate Existence, Etc. 17 Section 4.3 Indemnification 9.6 Credit and Collection Policy 17 SECTION 10. NEGATIVE COVENANTS 17 Section 10.1 Minimum Consolidated Tangible Net Worth 17 Section 10.2 Interest Charges Coverage Ratio 17 Section 10.3 Limitation on Debt 17 Section 10.4 Available Asset Coverage 17 Section 10.5 Merger, Consolidation and Sale of Assets, Etc. 18 Section 10.6 Nature of Business 20 Section 10.7 Transactions with Affiliates 20 SECTION 11. EVENTS OF DEFAULT 20 SECTION 12. REMEDIES ON DEFAULT, ETC. 22 Section 12.1 Acceleration 22 Section 12.2 Other Remedies 23 Section 12.3 Rescission 23 Section 12.4 No Waivers or Election of Remedies, Expenses, Etc. 23 SECTION 13. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES 23 Section 13.1 Registration of Notes 23 Section 13.2 Transfer and Exchange of Notes 24 Section 13.3 Replacement of Notes 24 SECTION 14. PAYMENTS ON NOTES 24 Section 14.1 Place of Payment 24 Section 14.2 Home Office Payment 24 SECTION 15. EXPENSES, ETC. 25 Section 15.1 Transaction Expenses 25 Section 15.2 Survival 25 SECTION 16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT 25 SECTION 17. AMENDMENT AND WAIVER 26 Section 17.1 Requirements 26 Section 17.2 Solicitation of Holders of Notes 26 Section 17.3 Binding Effect, Etc. 26 Section 17.4 Notes Held by Company, Etc. 27 SECTION 18. NOTICES 27 SECTION 19. REPRODUCTION OF DOCUMENTS 27 SECTION 20. CONFIDENTIAL INFORMATION 28 SECTION 21. SUBSTITUTION OF PURCHASER 29 SECTION 22. MISCELLANEOUS 29 Section 22.1 Successors and Assigns 29 Section 22.2 Payments Due on Non-Business Days 29 Section 22.3 Severability 29 Section 22.4 Construction 29 Section 22.5 Counterparts 30 Section 22.6 Governing Law 30 ATTACHMENTS TO NOTE PURCHASE AGREEMENT: SCHEDULE A — Information Relating to Purchasers SCHEDULE B — Defined Terms SCHEDULE 4.9 — Changes in Corporate Structure SCHEDULE 5.3 — Disclosure Materials SCHEDULE 5.4 — Subsidiaries of the Company 17 Section 4.4 Taxesand Ownership of Subsidiary Stock SCHEDULE 5.5 — Financial Statements SCHEDULE 5.11 — Patents, Other Governmental Charges and Utility Charges 18 Section 4.5 Advances 18 Section 4.6 Environmental Matters 18 Article V Etc. SCHEDULE 5.14 — Use of Proceeds SCHEDULE 5.15 — Existing Debt; Future Liens EXHIBIT 1 — Form of Floating Rate Senior Note, Series 2005-B, due October 30, 2020 EXHIBIT 4.4(a) — Form of Opinion of Special Covenants 22 Section 5.1 No Warranty of Condition or Suitability 22 Section 5.2 Right of Access to the Project 22 Section 5.3 Information Concerning Operations 22 Section 5.4 Affirmative Covenants Of The Company 22 Section 5.5 Negative Covenants Of The Company 25 Section 5.6 Mechanics’ and Other Liens 26 Section 5.7 Assignment, Sale or Lease by Counsel for the Company 26 Article VI EXHIBIT 4.4(b) — Events Form of Default Opinion of Special Counsel for the Purchasers EXHIBIT 5.21 — Credit and Remedies 27 Section 6.1 Events Collection Policy AMERICAN CAPITAL STRATEGIES, LTD. 0 Xxxxxxxx Xxxxx Xxxxxx, 00xx Xxxxx Xxxxxxxx, Xxxxxxxx 00000 Floating Rate Senior Notes, Series 2005-B, due October 30, 2020 Dated as of Default 27 Section 6.2 Remedies 28 Section 6.3 No Remedy Exclusive 28 PageSeptember 26, 2005 TO THE PURCHASERS LISTED IN THE ATTACHED SCHEDULE A: Ladies and Gentlemen: AMERICAN CAPITAL STRATEGIES, LTD., a Delaware corporation (the “Company”), agrees with the purchasers listed in the attached Schedule A (the “Purchasers”) as follows:

Page. Article I — Definitions SECTION 1. AUTHORIZATION OF NOTES 1 Section 1.1. Series A Notes 1 Section 1.2. Subsequent Series 1 SECTION 2. SALE AND PURCHASE OF NOTES; SUBSEQUENT SALES 2 Section 1.1 2.1. Purchase and Sale of Notes 2 Section 2.2. Guarantees 2 Section 2.3. Subsequent Sales 4 SECTION 3. CLOSING 4 SECTION 4. CONDITIONS TO CLOSING 5 Section 4.1. Representations and Warranties 5 Section 4.2. Performance; No Default 6 Section 4.3. Compliance Certificates 6 Section 4.4. Opinions of Counsel 7 Section 4.5. Purchase Permitted By Applicable Law, Etc. 7 Section 4.6. Sale of Other Notes 7 Section 4.7. Bank Credit Agreement, Security Documents, Etc 7 Section 4.8. Filing and Recording 7 Section 4.9. Payment of Special Counsel Fees. 8 Section 4.10. Private Placement Number 8 Section 4.11. Changes in Corporate Structure 8 Section 4.12. Funding Instructions 8 Section 4.13. Proceedings and Documents 8 SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY 8 Section 5.1. Organization; Power and Authority 9 Section 5.2. Authorization, Etc. 9 Section 5.3. Disclosure 9 Section 5.4. Organization and Ownership of Shares of Subsidiaries 9 Section 5.5. Financial Statements 10 Section 5.6. Compliance with Laws, Other Instruments, Etc. 10 Section 5.7. Governmental Authorizations, Etc. 10 Section 5.8. Litigation; Observance of Statutes and Orders 10 Section 5.9. Taxes 11 Section 5.10. Title to Property; Leases 11 Section 5.11. Licenses, Permits, Etc. 11 Section 5.12. Compliance with ERISA 11 Section 5.13. Private Offering by the Company 12 Section 5.14. Use of Defined Terms 2 Proceeds; Margin Regulations 12 Section 1.2 Definitions 2 5.15. Existing Debt 13 Section 1.3 5.16. Foreign Assets Control Regulations, Etc. 13 Section 5.17. Status under Certain Words Statutes 13 Section 5.18. Pledge Agreements 13 SECTION 6. REPRESENTATIONS OF THE PURCHASER 14 Section 6.1. Purchase for Investment 14 Section 6.2. Source of Funds 14 SECTION 7. INFORMATION AS TO THE COMPANY 15 Section 7.1. Financial and References 7 Article II Business Information 15 Section 7.2. Officer’s Certificate 18 Section 7.3. Inspection 18 SECTION 8. PREPAYMENT OF THE NOTES 19 Section 8.1. Required Prepayments 19 Section 8.2. Optional Prepayments with Make-Whole Amount 19 Section 8.3. Allocation of Partial Prepayments 19 Section 8.4. Maturity; Surrender, Etc. 20 Section 8.5. Purchase of Notes 20 Section 8.6. Make-Whole Amount 20 SECTION 9. AFFIRMATIVE COVENANTS 22 Section 9.1. Compliance with Law 22 Section 9.2. Insurance 22 Section 9.3. Maintenance of Properties 22 Section 9.4. Payment of Taxes 22 Section 9.5. Corporate Existence, Etc. 23 Section 9.6. Notes to Rank Pari Passu 23 Section 9.7. Guaranty by Subsidiaries 23 Section 9.8. Stock Pledges 23 SECTION 10. NEGATIVE COVENANTS 24 Section 10.1. Consolidated Net Worth 24 Section 10.2. Limitations on Debt 24 Section 10.3. Limitation on Liens 25 Section 10.4. Mergers and Consolidations, Etc 27 Section 10.5. Sale of Assets 28 Section 10.6. Transactions with Affiliates 30 Section 10.7. Designation of Subsidiaries 30 SECTION 11. EVENTS OF DEFAULT 31 SECTION 12. REMEDIES ON DEFAULT, ETC. 33 Section 12.1. Acceleration 33 Section 12.2. Other Remedies 34 Section 12.3. Rescission 34 Section 12.4. No Waivers or Election of Remedies, Expenses, Etc. 34 SECTION 13. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES 35 Section 13.1. Registration of Notes 35 Section 13.2. Transfer and Exchange of Notes 35 Section 13.3. Replacement of Notes 35 SECTION 14. PAYMENTS ON NOTES 36 Section 14.1. Place of Payment 36 Section 14.2. Home Office Payment 36 SECTION 15. EXPENSES, ETC. 36 Section 15.1. Transaction Expenses 36 Section 15.2. Survival 37 SECTION 16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT 37 SECTION 17. AMENDMENT AND WAIVER 38 Section 17.1. Requirements 38 Section 17.2. Solicitation of Holders of Notes 38 Section 17.3. Binding Effect, Etc. 39 Section 17.4. Notes Held by Company, Etc. 39 SECTION 18. NOTICES 39 SECTION 19. REPRODUCTION OF DOCUMENTS 40 SECTION 20. CONFIDENTIAL INFORMATION 40 SECTION 21. SUBSTITUTION OF PURCHASER 41 SECTION 22. MISCELLANEOUS 41 Section 22.1. Successors and Assigns 41 Section 22.2. Payments Due on Non-Business Days 42 Section 22.3. Severability 42 Section 22.4. Construction 42 Section 22.5. Counterparts 42 Section 22.6. Governing Law 42 Section 22.7. Submission to Jurisdiction; Waiver of Jury Trial 42 Signature 44 SCHEDULE A — Determination and Representations 8 Section 2.1 Determinations of the Director 8 Section 2.2 Representations, Warranties and Agreements INFORMATION RELATING TO INITIAL PURCHASERS SCHEDULE B — DEFINED TERMS SCHEDULE 5.3 — Disclosure Materials SCHEDULE 5.4 — Subsidiaries of the Company 8 Section and Ownership of Subsidiary Stock SCHEDULE 5.5 — Financial Statements SCHEDULE 5.11 — Patents, etc. SCHEDULE 5.14 — Use of Proceeds SCHEDULE 5.15 — Existing Debt EXHIBIT 1-A — Form of 4.20% Senior Note, Series A-1, due December 15, 2008 EXHIBIT 1-B — Form of 5.25% Senior Note, Series A-2, due December 15, 2013 EXHIBIT 1-C — Form of 5.38% Senior Note, Series A-3, due December 15, 2015 EXHIBIT 1.2 — Form of Supplemental Note EXHIBIT 2.2(a) — Form of Subsidiary Guaranty EXHIBIT 2.2(b) — Form of Pledge Agreement EXHIBIT 2.2(c) — Form of Intercreditor Agreement EXHIBIT 2.3 Miscellaneous Information Regarding the Company 10 Article III — Loan, Provision Form of the Project and Conditions to Disbursement 12 Section 3.1 State Loan 12 Section 3.2 Provision Supplemental Note Purchase Agreement EXHIBIT 4.4(a) — Form of the Project 12 Section 3.3 Establishment Of Completion Date 12 Section 3.4 Company Required to Pay Costs in Event State Loan Proceeds Insufficient 13 Section 3.5 Plans and Specifications; Inspections 13 Section 3.6 Conditions to Disbursement Opinion of the State Loan 14 Section 3.7 Disbursement of the State Loan 15 Article IV — Maintenance, Taxes and Insurance 17 Section 4.1 Maintenance and Modifications of Project by the Company 17 Section 4.2 Removal of Project Facilities. 17 Section 4.3 Indemnification by the Company 17 Section 4.4 Taxes, Other Governmental Charges and Utility Charges 18 Section 4.5 Advances 18 Section 4.6 Environmental Matters 18 Article V — Special Covenants 22 Section 5.1 No Warranty of Condition or Suitability 22 Section 5.2 Right of Access Counsel to the Project 22 Section 5.3 Information Concerning Operations 22 Section 5.4 Affirmative Covenants Of The Company 22 Section 5.5 Negative Covenants Of The Company 25 Section 5.6 Mechanics’ Company, the Subsidiary Guarantors and Other Liens 26 Section 5.7 Assignmentthe Pledgors EXHIBIT 4.4(b) — Form of Opinion of Special Counsel to the Purchasers STERIS CORPORATION 0000 XXXXXXX XXXX MENTOR, Sale or Lease by OHIO 44060-1834 $40,000,000 4.20% Senior Notes, Series A-1, due December 15, 2008 $40,000,000 5.25% Senior Notes, Series A-2, due December 15, 2013 $20,000,000 5.38% Senior Notes, Series A-3, due December 15, 2015 Dated as of December 17, 2003 TO THE PURCHASER LISTED IN THE ATTACHED SCHEDULE A WHO IS A SIGNATORY HERETO: Ladies and Gentlemen: STERIS Corporation, an Ohio corporation (the Company 26 Article VI — Events of Default and Remedies 27 Section 6.1 Events of Default 27 Section 6.2 Remedies 28 Section 6.3 No Remedy Exclusive 28 Page“Company”), agrees with you as follows:

Page. Article I — Definitions 2 Section 1.1 Use 6.2. Issuer’s, Trustee’s, and Fiscal Agent’s Expenses; Release and Indemnification Provisions 11 Section 6.3. Maintenance of Defined Terms 2 Section 1.2 Definitions 2 Section 1.3 Certain Words and References 7 Article II — Determination and Representations 8 Section 2.1 Determinations of the Director 8 Section 2.2 Representations, Warranties and Agreements of the Company 8 Section 2.3 Miscellaneous Information Regarding the Company 10 Article III — Loan, Provision of the Project and Conditions to Disbursement Existence 12 Section 3.1 State Loan 6.4. Agreement of Issuer Not to Assign or Pledge 12 Section 3.2 Provision 6.5. Redemption of the Project Bonds 12 Section 3.3 Establishment Of Completion Date 12 Section 3.4 Company Required 6.6. Reference to Pay Costs in Event State Loan Proceeds Insufficient Bonds Ineffective After Bonds Paid 13 Section 3.5 Plans and Specifications; Inspections 6.7. Assignment, Sale or Lease of Project 13 Section 3.6 Conditions to Disbursement of the State Loan 14 6.8. Financing Statements 13 Section 3.7 Disbursement of the State Loan 15 Article IV — Maintenance, Taxes and Insurance 17 6.9. Compliance with Credit Agreement 13 Section 4.1 Maintenance and Modifications 6.10. Inspection of Project by the Company 17 13 Section 4.2 Removal of 6.11. Project FacilitiesList 13 Section 6.12. 17 Section 4.3 Indemnification by the Company 17 Section 4.4 Taxes, Other Governmental Charges and Utility Charges 18 Section 4.5 Advances 18 Section 4.6 Environmental Matters 18 Article V — Special Covenants 22 Section 5.1 No Warranty of Condition or Suitability by Issuer 13 Section 6.13 Depreciation and Investment Tax Credit 14 Section 6.14. Alteration of Project 14 Section 6.15. Release of Certain Land from the Agreement 14 Section 6.16. Removal of Project Equipment 15 Section 6.17. Additions to Project 16 Section 6.18. Gross Receipts and Compensating Tax 16 Section 6.19. Assessment in the Company’s Name 16 Section 6.20. Payment in Lieu of Taxes 17 Section 6.21. Employment Matters 17 ARTICLE VII—DEFAULT AND REMEDIES 17 Section 7.1. Events of Default 17 Section 7.2. Remedies 18 Section 7.3. No Remedies Exclusive 19 Section 7.4. Agreement to Pay Counsel Fees and Expenses 19 Section 7.5. Waiver of Events of Default and Rescission of Acceleration 19 ARTICLE VIII—SUPPLEMENTAL LEASE AGREEMENTS 20 Section 8.1. Supplemental Lease Agreements without Consent of Bondowners 20 Section 8.2. Supplemental Lease Agreements with Consent of Bondowners 20 Section 8.3. Execution of Supplemental Lease Agreements 20 Section 8.4. Effect of Supplemental Lease Agreements 21 Section 8.5. Reference in Bonds to Supplemental Lease Agreements 21 ARTICLE IX—PREPAYMENT AND ACCELERATION OF LEASE PAYMENTS 21 Section 9.1. Prepayment at the Option of the Company 21 Section 9.2. 21 Section 9.3. Mandatory Prepayment Upon Certain Events 21 Section 9.4. Right to Prepay at Any Time 21 Page Section 9.5. Notice of Prepayment 21 Section 9.6. Precedence of this Article 22 ARTICLE X—OPTION TO PURCHASE THE PROJECT 22 Section 5.2 Right of Access 10.1. Option to Purchase the Project 22 Section 5.3 Information Concerning Operations 10.2. Conveyance of the Project and Site 22 Section 5.4 Affirmative Covenants Of The Company 22 10.3. Relative Position of Option and Indenture 23 Section 5.5 Negative Covenants Of The 10.4. Mandatory Purchase of Project Property 23 ARTICLE XI—TERM AND TERMINATION OF LEASE AGREEMENT 23 Section 11.1. Term of Lease Agreement 23 Section 11.2. Termination and Discharge of Lease Agreement 23 Section 11.3. Amounts Remaining in Funds 23 ARTICLE XII—MISCELLANEOUS PROVISIONS 24 Section 12.1. Notices 24 Section 12.2. Further Assurances 24 Section 12.3. Payments Due on Saturdays, Sundays and Holidays 24 Section 12.4. Issuer’s Obligations Limited 24 Section 12.5. Immunity of Officers, Employees and Directors of the Issuer and the Company 25 Section 5.6 Mechanics’ and Other Liens 12.6. Net Lease 25 Section 12.7. Benefit of Lease Agreement 25 Section 12.8. Severability 26 Section 5.7 Assignment12.9. Amendments, Sale Changes and Modifications 26 Section 12.10. Counterparts 26 Section 12.11. Governing Law 26 LEASE AGREEMENT THIS LEASE AGREEMENT (the “Lease Agreement” or Lease by “Agreement”), dated as of September 1, 2005 between Bernalillo County, New Mexico (the Company 26 Article VI — Events of Default “Issuer”), and Remedies 27 Section 6.1 Events of Default 27 Section 6.2 Remedies 28 Section 6.3 No Remedy Exclusive 28 PageTempur Production USA, Inc., a Virginia Corporation (the “Company”);

Page. Article I — SECTION 1. DEFINITIONS; INTERPRETATION 1 Section 1.1. Definitions 2 1 Section 1.1 1.2. Interpretation 13 Section 1.3. Change in Accounting Principles 14 SECTION 2. THE CREDIT FACILITIES 14 Section 2.1. Commitments 14 Section 2.2. Letters of Credit 15 Section 2.3. Applicable Interest Rates 18 Section 2.4. Manner of Borrowing Loans and Designating Applicable Interest Rates 19 Section 2.5. Minimum Borrowing Amounts; Maximum Eurodollar Loans 20 Section 2.6. Maturity of Loans 21 Section 2.7. Prepayments 21 Section 2.8. Place and Application of Payments 21 Section 2.9. Commitment Terminations 22 Section 2.10. The Notes 23 Section 2.11. Fees 23 Section 2.12. Swing Loans 24 SECTION 3. CONDITIONS PRECEDENT 26 Section 3.1. All Credit Events 26 Section 3.2. Initial Credit Event 26 SECTION 4. THE GUARANTIES 28 Section 4.1. Guaranties 28 Section 4.2. Further Assurances 28 Section 4.3. Guarantor Release 28 Section 4.4. Exclusion of Foreign Subsidiaries 28 SECTION 5. REPRESENTATIONS AND WARRANTIES 28 Section 5.1. Organization and Qualification 28 Section 5.2. Authority and Enforceability 29 Section 5.3. Financial Reports 29 Section 5.4. No Material Adverse Effect 29 Section 5.5. Litigation and other Controversies 29 Section 5.6. True and Complete Disclosure 30 Section 5.7. Use of Defined Terms 2 Proceeds; Margin Stock 30 Section 1.2 Definitions 2 5.8. Taxes 30 Section 1.3 Certain Words 5.9. ERISA 30 Section 5.10. Material Subsidiaries 30 Section 5.11. Compliance with Laws 30 Section 5.12. Environmental Matters 31 Section 5.13. Investment Company; Public Utility Holding Company 31 Section 5.14. Intellectual Property 31 Section 5.15. Good Title 31 Section 5.16. Labor Relations 32 Section 5.17. Indebtedness 32 Section 5.18. Capitalization 32 Section 5.19. Other Agreements 32 Section 5.20. Governmental Authority and References 7 Article II — Determination Licensing 32 Section 5.21. Approvals 32 Section 5.22. Affiliate Transactions 33 Section 5.23. Solvency 33 SECTION 6. COVENANTS 33 Section 6.1. Information Covenants 33 Section 6.2. Inspections 35 Section 6.3. Maintenance of Property, Insurance, Environmental Matters, etc 35 Section 6.4. Preservation of Existence 36 Section 6.5. Compliance with Laws 36 Section 6.6. ERISA 36 Section 6.7. Payment of Taxes 37 Section 6.8. Contracts With Affiliates 37 Section 6.9. No Changes in Fiscal Year 37 Section 6.10. Change in the Nature of Business 37 Section 6.11. Indebtedness 37 Section 6.12. Liens 38 Section 6.13. Consolidation, Merger, Sale of Assets, etc 39 Section 6.14. Advances, Investments and Representations 8 Loans 40 Section 2.1 Determinations 6.15. Limitation on Restrictions 42 Section 6.16. Notice of the Director 8 Creation of Subsidiaries 42 Section 2.2 Representations, Warranties and Agreements of the Company 8 Section 2.3 Miscellaneous Information Regarding the Company 10 Article III — Loan, Provision of the Project and Conditions to Disbursement 12 Section 3.1 State Loan 12 Section 3.2 Provision of the Project 12 Section 3.3 Establishment Of Completion Date 12 Section 3.4 Company Required to Pay Costs in Event State Loan Proceeds Insufficient 13 Section 3.5 Plans and Specifications; Inspections 13 Section 3.6 Conditions to Disbursement of the State Loan 14 Section 3.7 Disbursement of the State Loan 15 Article IV — Maintenance, Taxes and Insurance 17 Section 4.1 Maintenance and Modifications of Project by the Company 17 Section 4.2 Removal of Project Facilities6.17. 17 Section 4.3 Indemnification by the Company 17 Section 4.4 Taxes, Other Governmental Charges and Utility Charges 18 Section 4.5 Advances 18 Section 4.6 Environmental Matters 18 Article V — Special Covenants 22 Section 5.1 No Warranty of Condition or Suitability 22 Section 5.2 Right of Access to the Project 22 Section 5.3 Information Concerning Operations 22 Section 5.4 Affirmative Covenants Of The Company 22 Section 5.5 Negative Covenants Of The Company 25 Section 5.6 Mechanics’ Dividends and Other Liens 26 Restricted Payments 42 Section 5.7 Assignment, Sale or Lease by the Company 26 Article VI — 6.18. Financial Covenants 42 Section 6.19. Limitation on Non-Material Subsidiaries 42 SECTION 7. EVENTS OF DEFAULT AND REMEDIES 43 Section 7.1. Events of Default and Remedies 27 43 Section 6.1 Events 7.2. Non-Bankruptcy Defaults 45 Section 7.3. Bankruptcy Defaults 45 Section 7.4. Collateral for Undrawn Letters of Credit 45 Section 7.5. Notice of Default 27 46 Section 6.2 Remedies 28 Section 6.3 No Remedy Exclusive 28 Page7.6. Expenses 46