FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

THIS FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (“Amendment”) is
made as of June 30, 2014 by and among Landauer, Inc., a Delaware corporation
(“Landauer”), Global Physics Solutions, Inc., a Delaware corporation (“GPS”) and
IZI Medical Products, LLC, a Delaware limited liability company (“IZI”,
Landauer, GPS and IZI being hereinafter collectively referred to as the
“Borrowers” and each individually as a “Borrower”), the Lenders that are
currently parties to the Credit Agreement (as defined below) and BMO Harris Bank
N.A. (in its individual capacity, “BMO”), as administrative agent for the
Lenders (in such capacity, the “Administrative Agent”).

RECITALS

A. The Administrative Agent, the Lenders and the Borrowers are currently parties
to that certain Amended and Restated Credit Agreement dated as of August 2, 2013
which amended and restated that certain Credit Agreement dated as of November
11, 2011, as heretofore amended (the “Credit Agreement”).

B. The parties to the Credit Agreement desire to enter into this Amendment for
the purpose of making certain amendments to the Credit Agreement.

AGREEMENT

In consideration of the matters set forth in the recitals and the covenants and
provisions herein set forth, and other valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

1. Definitions.  Capitalized terms used but not defined herein are used as
defined in the Credit Agreement.

2. Amendments.  Upon satisfaction of the conditions precedent hereinafter set
forth, the Credit Agreement shall be amended as follows:

2.1. Section 1.1 of the Credit Agreement is hereby amended by adding a new
definition of “First Amendment Effective Date” thereto in the appropriate
alphabetical order which reads as follows:

“First Amendment Effective Date means June 30, 2014.”

2.2. Section 1.1 of the Credit Agreement is hereby amended by amending and
restating the definitions of “Capital Expenditures” and “EBITDA” in their
entirety to read as follows:

“Capital Expenditures” means all expenditures which, in accordance with GAAP,
would be required to be capitalized and shown on the consolidated statement of
cash flows of Landauer and its Subsidiaries, including expenditures in respect
of Capital Leases, but excluding expenditures made in connection with the
replacement, substitution or

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restoration of assets (a) from insurance proceeds (or other similar recoveries)
paid on account of the loss of or damage to the assets being replaced or
restored or (b) with awards of compensation arising from the taking by eminent
domain or condemnation of the assets being replaced.”

“EBITDA means, for any period, the sum for such period of: (a) Consolidated Net
Income, plus (b) to the extent deducted in determining such Consolidated Net
Income, (i) Interest Expense, (ii) federal and state income taxes, (iii) all
amounts treated as expense for depreciation and amortization (the sum of (x) all
foregoing items plus (y) the amount of non-recurring expenses and non-cash
charges in respect of IZI set forth in clause (vi) below, constituting
“Unadjusted EBITDA”), all as reflected on Landauer’s consolidated financial
statements as determined in accordance with GAAP, (iv) all extraordinary or
non-recurring losses and expenses as well as other non-cash charges, including
restructuring charges, fees associated with mergers and Acquisitions, impairment
charges, non-recurring foreign exchange valuation adjustments and equity
compensation expense, provided that the aggregate of such losses, expenses and
charges cannot exceed 10% of Unadjusted EBITDA for any Fiscal Year (subject to
variances acceptable to the Administrative Agent in excess of such limits), (v)
non-recurring expenses and non-cash charges of up to $23,000,000 incurred in
connection with asset impairments associated with IZI in the third Fiscal
Quarter of 2013 and other non-recurring restructuring charges of up to
$1,000,000 incurred in the third and fourth Fiscal Quarters of 2013, not subject
to the caps in clause (b)(iv) hereof and (vi) non-recurring expenses and
non-cash charges of up to $65,000,000 incurred in connection with asset
impairments associated with IZI in the third Fiscal Quarter of 2014 and other
non-recurring restructuring and reorganization charges of up to $6,000,000
incurred in the third Fiscal Quarter of 2014, not subject to the caps in clause
(b)(iv) hereof, minus (c) any item of extraordinary gain as defined by GAAP,
including that portion of Consolidated Net Income arising from the sale of
assets outside the ordinary course of business.”

 

2.3. Section 11.13.1 of the Credit Agreement is hereby amended and restated in
its entirety to read as follows:

“Fixed Charge Coverage Ratio.  From and after the First Amendment Effective
Date, not permit the Fixed Charge Coverage Ratio as of the last day of any
Computation Period to be less than 1.10 to 1.00 for such Computation Period.”

2.4. Section 11.13.2 of the Credit Agreement is hereby amended and restated in
its entirety to read as follows:

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“Leverage Ratio.  From and after the First Amendment Effective Date, not permit
the Leverage Ratio as of the last day of any Computation Period to exceed 3.50
to 1.00 for such Computation Period.”

3. Affirmation.  Except as expressly amended hereby, the Credit Agreement is and
shall continue in full force and effect and each Borrower hereby fully ratifies
and affirms the Credit Agreement and each Loan Document to which it is a
party.  Reference in any of this Amendment, the Credit Agreement or any Loan
Document to the Credit Agreement shall be a reference to the Credit Agreement as
amended hereby and as further amended, modified, restated, supplemented or
extended from time to time.

4. Representations and Warranties.  Each Borrower hereby confirms to the Lenders
and the Administrative Agent that the representations and warranties set forth
in the Credit Agreement, as amended by this Amendment, and in the Loan Documents
to which such Borrower is a party are true and correct in all material respects
(or in all respects in the case of any representation or warranty qualified by
materiality or Material Adverse Effect) as of the date hereof and shall be
deemed to be remade as of the date hereof, except to the extent any such
representation or warranty expressly relates to an earlier date, in which case
such representations and warranties are true and correct as of such earlier
date.  Each Borrower represents and warrants to the Lenders and the
Administrative Agent that (i) such Borrower has full power and authority to
execute and deliver this Amendment and to perform its obligations hereunder,
(ii) upon the execution and delivery hereof, this Amendment will be valid,
binding and enforceable upon such Borrower in accordance with its terms, subject
to bankruptcy, insolvency and similar laws affecting the enforceability of
creditors’ rights generally and to general principles of equity, (iii) the
execution and delivery and performance of this Amendment does not and will not
conflict with (x) any provision of applicable law, (y) the charter, by-laws or
other organizational documents of any Loan Party or (z) any material agreement,
indenture, material instrument or other material document, or any judgment,
order or decree, which is binding upon any Loan Party or any of their respective
properties and (iv) as of the date hereof, no Unmatured Event of Default or
Event of Default exists.

5. Conditions to Amendment.  This Amendment shall become effective upon the
satisfaction in full of all of the following conditions precedent, each of which
shall be reasonably satisfactory to the Administrative Agent and the Required
Lenders:

5.1. The Borrowers, the Administrative Agent and the Required Lenders shall have
executed and delivered this Amendment to the Administrative Agent.

5.2. The Administrative Agent shall have received a non-refundable amendment fee
for the account of the Lenders executing this Amendment in an aggregate amount
equal to .10% of each such Lender’s Commitment, together with any other fees and
expenses (including, without limitation, invoiced Attorney Costs) owing to the
Administrative Agent or its counsel.

6. Counterparts.  This Amendment may be executed in two or more counterparts,
each of which shall constitute an original, but all of which when taken together
shall constitute one instrument.  Delivery of an executed counterpart of this
Amendment by facsimile or electronic pdf format shall be effective as delivery
of an original counterpart.

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7. Headings.  The headings and captions of this Amendment are for the purposes
of reference only and shall not affect the construction of, or be taken into
consideration in interpreting, this Amendment.

8. APPLICABLE LAW.  THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF ILLINOIS WITHOUT GIVING EFFECT TO ILLINOIS
CHOICE OF LAW DOCTRINE.

The parties hereto have caused this Amendment to be executed by their duly
authorized officers, all as of the day and year first above written.

Signature Pages Follow

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LANDAUER, INC.

By: /s/ Jeffrey S. Volz

Name: Jeffrey S. Volz

Title: VP Finance, Treasurer

 

 

 

 

GLOBAL PHYSICS SOLUTIONS, INC.

By: /s/ Jeffrey S. Volz

Name: Jeffrey S. Volz

Title: Treasurer

 

 

 

 

IZI MEDICAL PRODUCTS, LLC

By: /s/ Jeffrey S. Volz

Name: Jeffrey S. Volz

Title: VP Finance, Treasurer

 

 

 

 

First Amendment Signature Page

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Acknowledged and agreed to as of the date first above written.

BMO HARRIS BANK, N.A., individually as a Lender and as Administrative Agent

 

 

 

By: /s/ Mark Mital

Name: Mark Mital

Title: Sr. Vice President

 

First Amendment Signature Page

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PNC BANK, NATIONAL ASSOCIATION, individually as a Lender

 

 

 

By: /s/ Michael T. Crowe

Name: Michael T. Crowe

Title: Senior Vice President

 

First Amendment Signature Page

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U.S. BANK NATIONAL ASSOCIATION, individually as a Lender

 

 

 

By: /s/ Elizabeth Cadwallader

Name:  Elizabeth Cadwallader

Title: Senior Vice President

 

First Amendment Signature Page

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FIFTH THIRD BANK, individually as a Lender

 

 

 

By: /s/ Gayne Underwood

Name: Gayne Underwood

Title:  Vice President

 

First Amendment Signature Page

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BANK OF AMERICA, N.A., individually as a Lender

 

 

 

By: /s/ Brian McDonald

Name: Brian McDonald

Title: Senior Vice President

 

First Amendment Signature Page

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