exv10w1






Exhibit 10.1




Execution Version




 

 





EZCORP, INC.


FIFTH AMENDED AND RESTATED

CREDIT AGREEMENT


DATED AS OF DECEMBER 31, 2008


UNION BANK OF CALIFORNIA, N.A.,

AS SYNDICATION AGENT,


AND


WELLS FARGO BANK, NATIONAL ASSOCIATION,

AS ADMINISTRATIVE AGENT AND ISSUING BANK



 

 







 









 








TABLE OF CONTENTS





	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE I
	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	Section 1.1
	 	Definitions	 	 	1	 
	Section 1.2
	 	Other Definitional Provisions	 	 	20	 
	Section 1.3
	 	Consolidation of Variable Interest Entities	 	 	20	 
	 
	 	 	 	 	 	 
	ARTICLE II
	 	Revolving Credit Loan, Term Loan, and Swing Loan	 	 	21	 
	 
	 	 	 	 	 	 
	Section 2.1
	 	Revolving Credit Commitments	 	 	21	 
	Section 2.2
	 	Term Loan Commitment	 	 	21	 
	Section 2.3
	 	Notes	 	 	21	 
	Section 2.4
	 	Repayment of Loans	 	 	21	 
	Section 2.5
	 	Interest	 	 	22	 
	Section 2.6
	 	Revolving Credit Loan Borrowing Procedure	 	 	22	 
	Section 2.7
	 	Conversions and Continuations	 	 	23	 
	Section 2.8
	 	Swing Loans	 	 	23	 
	Section 2.9
	 	Use of Proceeds	 	 	24	 
	Section 2.10
	 	Fees	 	 	25	 
	Section 2.11
	 	Determination of Eurodollar Margin, Base Rate Margin, and Commitment Fee Rate	 	 	25	 
	Section 2.12
	 	Reduction or Termination of Revolving Credit Commitments	 	 	26	 
	Section 2.13
	 	Increase in Revolving Credit Commitments	 	 	27	 
	 
	 	 	 	 	 	 
	ARTICLE III
	 	Letters of Credit	 	 	30	 
	 
	 	 	 	 	 	 
	Section 3.1
	 	Letters of Credit	 	 	30	 
	Section 3.2
	 	Procedure for Issuing Letters of Credit	 	 	31	 
	Section 3.3
	 	Presentment and Reimbursement	 	 	31	 
	Section 3.4
	 	Payment	 	 	31	 
	Section 3.5
	 	Letter of Credit Fee	 	 	32	 
	Section 3.6
	 	Obligations Absolute	 	 	32	 
	Section 3.7
	 	Limitation of Liability	 	 	33	 
	 
	 	 	 	 	 	 
	ARTICLE IV
	 	Payments	 	 	33	 
	 
	 	 	 	 	 	 
	Section 4.1
	 	Method of Payment	 	 	33	 
	Section 4.2
	 	Voluntary Prepayment	 	 	34	 
	Section 4.3
	 	Mandatory Prepayments	 	 	34	 
	Section 4.4
	 	Pro Rata Treatment	 	 	35	 
	Section 4.5
	 	Non-Receipt of Funds by the Agent	 	 	36	 
	Section 4.6
	 	Taxes	 	 	36	 
	Section 4.7
	 	Mitigation Obligations; Replacement of Lenders	 	 	38	 
	Section 4.8
	 	Computation of Interest	 	 	39	 
	Section 4.9
	 	Proceeds of Collateral and Collections under the Guaranty	 	 	39	 






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TABLE OF CONTENTS

(continued)





	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE V
	 	Yield Protection	 	 	41	 
	 
	 	 	 	 	 	 
	Section 5.1
	 	Increased Costs	 	 	41	 
	Section 5.2
	 	Limitation on Types of Advances	 	 	42	 
	Section 5.3
	 	Illegality	 	 	43	 
	Section 5.4
	 	Treatment of Affected Advances	 	 	43	 
	Section 5.5
	 	Compensation	 	 	43	 
	Section 5.6
	 	Additional Costs in Respect of Letters of Credit	 	 	44	 
	 
	 	 	 	 	 	 
	ARTICLE VI
	 	Conditions Precedent	 	 	44	 
	 
	 	 	 	 	 	 
	Section 6.1
	 	Initial Extension of Credit	 	 	44	 
	Section 6.2
	 	All Extensions of Credit	 	 	46	 
	 
	 	 	 	 	 	 
	ARTICLE VII
	 	Representations and Warranties	 	 	46	 
	 
	 	 	 	 	 	 
	Section 7.1
	 	Existence	 	 	46	 
	Section 7.2
	 	Financial Statements	 	 	46	 
	Section 7.3
	 	Action; No Breach	 	 	47	 
	Section 7.4
	 	Operation of Business	 	 	47	 
	Section 7.5
	 	Litigation and Judgments	 	 	47	 
	Section 7.6
	 	Rights in Properties; Liens	 	 	47	 
	Section 7.7
	 	Enforceability	 	 	48	 
	Section 7.8
	 	Approvals	 	 	48	 
	Section 7.9
	 	Debt	 	 	48	 
	Section 7.10
	 	Taxes	 	 	48	 
	Section 7.11
	 	Use of Proceeds; Margin Securities	 	 	48	 
	Section 7.12
	 	ERISA	 	 	48	 
	Section 7.13
	 	Disclosure	 	 	49	 
	Section 7.14
	 	Subsidiaries	 	 	49	 
	Section 7.15
	 	Agreements	 	 	49	 
	Section 7.16
	 	Compliance with Laws	 	 	49	 
	Section 7.17
	 	Investment Company Act	 	 	49	 
	Section 7.18
	 	Public Utility Holding Company Act	 	 	49	 
	Section 7.19
	 	Environmental Matters	 	 	50	 
	 
	 	 	 	 	 	 
	ARTICLE VIII
	 	Positive Covenants	 	 	51	 
	 
	 	 	 	 	 	 
	Section 8.1
	 	Reporting Requirements	 	 	51	 
	Section 8.2
	 	Maintenance of Existence; Conduct of Business	 	 	53	 
	Section 8.3
	 	Maintenance of Properties	 	 	53	 
	Section 8.4
	 	Taxes and Claims	 	 	53	 
	Section 8.5
	 	Insurance	 	 	53	 
	Section 8.6
	 	Inspection Rights; Audits	 	 	53	 
	Section 8.7
	 	Keeping Books and Records	 	 	53	 






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TABLE OF CONTENTS

(continued)





	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 8.8
	 	Compliance with Laws	 	 	54	 
	Section 8.9
	 	Compliance with Agreements	 	 	54	 
	Section 8.10
	 	Further Assurances	 	 	54	 
	Section 8.11
	 	ERISA	 	 	55	 
	Section 8.12
	 	Landlord’s Waivers or Subordinations	 	 	55	 
	 
	 	 	 	 	 	 
	ARTICLE IX
	 	Negative Covenants	 	 	55	 
	 
	 	 	 	 	 	 
	Section 9.1
	 	Debt	 	 	55	 
	Section 9.2
	 	Limitation on Liens	 	 	56	 
	Section 9.3
	 	Mergers, Etc.	 	 	57	 
	Section 9.4
	 	Restricted Payments	 	 	57	 
	Section 9.5
	 	Investments	 	 	58	 
	Section 9.6
	 	Limitation on Issuance of Capital Stock	 	 	58	 
	Section 9.7
	 	Transactions With Affiliates	 	 	58	 
	Section 9.8
	 	Disposition of Assets	 	 	59	 
	Section 9.9
	 	Nature of Business	 	 	59	 
	Section 9.10
	 	Environmental Protection	 	 	60	 
	Section 9.11
	 	Accounting	 	 	60	 
	Section 9.12
	 	Prepayment of Debt	 	 	60	 
	 
	 	 	 	 	 	 
	ARTICLE X
	 	Financial Covenants	 	 	60	 
	 
	 	 	 	 	 	 
	Section 10.1
	 	Consolidated Net Worth	 	 	60	 
	Section 10.2
	 	Total Leverage Ratio	 	 	60	 
	Section 10.3
	 	Fixed Charge Coverage Ratio	 	 	60	 
	 
	 	 	 	 	 	 
	ARTICLE XI
	 	Default	 	 	60	 
	 
	 	 	 	 	 	 
	Section 11.1
	 	Events of Default	 	 	60	 
	Section 11.2
	 	Remedies	 	 	62	 
	Section 11.3
	 	Performance by the Agent	 	 	64	 
	 
	 	 	 	 	 	 
	ARTICLE XII
	 	The Agent	 	 	64	 
	 
	 	 	 	 	 	 
	Section 12.1
	 	Appointment and Authority	 	 	64	 
	Section 12.2
	 	Rights as a Lender	 	 	64	 
	Section 12.3
	 	Exculpatory Provisions	 	 	64	 
	Section 12.4
	 	Reliance by Agent	 	 	65	 
	Section 12.5
	 	Delegation of Duties	 	 	66	 
	Section 12.6
	 	Resignation of Agent	 	 	66	 
	Section 12.7
	 	Non-Reliance on Agent and Other Lenders	 	 	66	 
	Section 12.8
	 	Sharing of Payments, Etc.	 	 	67	 
	Section 12.9
	 	Indemnification	 	 	67	 
	Section 12.10
	 	Several Commitments	 	 	68	 






 iii









 





TABLE OF CONTENTS

(continued)





	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 12.11
	 	Agent May File Proofs of Claim	 	 	68	 
	Section 12.12
	 	Collateral and Guaranty Matters	 	 	69	 
	Section 12.13
	 	No Other Duties, Etc.	 	 	69	 
	 
	 	 	 	 	 	 
	ARTICLE XIII
	 	Miscellaneous	 	 	69	 
	 
	 	 	 	 	 	 
	Section 13.1
	 	Expenses; Indemnity; Damage Waiver	 	 	69	 
	Section 13.2
	 	Limitation of Liability	 	 	71	 
	Section 13.3
	 	No Duty	 	 	71	 
	Section 13.4
	 	No Fiduciary Relationship	 	 	71	 
	Section 13.5
	 	Equitable Relief	 	 	71	 
	Section 13.6
	 	No Waiver; Cumulative Remedies	 	 	72	 
	Section 13.7
	 	Successors and Assigns	 	 	72	 
	Section 13.8
	 	Survival	 	 	75	 
	Section 13.9
	 	Amendments, Etc.	 	 	75	 
	Section 13.10
	 	Maximum Interest Rate	 	 	76	 
	Section 13.11
	 	Notices	 	 	76	 
	Section 13.12
	 	Governing Law; Venue; Service of Process	 	 	78	 
	Section 13.13
	 	Binding Arbitration	 	 	79	 
	Section 13.14
	 	Counterparts	 	 	81	 
	Section 13.15
	 	Severability	 	 	81	 
	Section 13.16
	 	Headings	 	 	81	 
	Section 13.17
	 	Construction	 	 	81	 
	Section 13.18
	 	Independence of Covenants	 	 	81	 
	Section 13.19
	 	Treatment of Certain Information; Confidentiality	 	 	82	 
	Section 13.20
	 	USA Patriot Act Notice	 	 	82	 
	Section 13.21
	 	WAIVER OF JURY TRIAL	 	 	82	 
	Section 13.22
	 	ENTIRE AGREEMENT	 	 	83	 
	Section 13.23
	 	Amendment and Restatement	 	 	83	 







 iv









 








INDEX TO EXHIBITS




	 	 	 
	Exhibit	 	Description of Exhibit
	 
	 	 
	A

	 	Form of Revolving Credit Note
	B

	 	Form of Term Note
	C

	 	Form of Swing Note
	D

	 	Advance Request Form
	E

	 	Letter of Credit Request Form
	F

	 	Form of Assignment and Assumption
	G

	 	Form of Commitment and Acceptance






INDEX TO SCHEDULES




	 	 	 
	Schedule	 	Description of Schedule
	 
	 	 
	1.1(a)

	 	Commitments
	1.1(c)

	 	Pay-Day Advance Loan Documents
	7.14

	 	List of Subsidiaries
	9.1

	 	Existing Debt
	9.2

	 	Existing Liens







 v











 





FIFTH AMENDED AND RESTATED CREDIT AGREEMENT




     THIS FIFTH AMENDED AND RESTATED CREDIT AGREEMENT (the “Agreement”), dated as of
December 31, 2008, is among EZCORP, INC., a Delaware corporation (the “Borrower”), each of
the banks or other lending institutions which is or which may from time to time become a signatory
hereto or any successor or assignee thereof (individually, a “Lender” and, collectively,
the “Lenders”), UNION BANK OF CALIFORNIA, N.A., as syndication agent (in such capacity,
together with its successors in such capacity, the “Syndication Agent”), and WELLS FARGO
BANK, NATIONAL ASSOCIATION, a national banking association, as administrative agent for itself and
the other Lenders (in such capacity, together with its successors in such capacity, the
“Agent”) and as the Issuing Bank and Swing Lender (each as hereinafter defined).



RECITALS




     A. The Borrower, the Agent, the Issuing Bank and certain banks or other lending institutions
party thereto have entered into that certain Fourth Amended and Restated Credit Agreement dated as
of October 13, 2006, as amended through the date hereof (as amended, the “Existing Credit
Agreement”).



     B. The Borrower has requested and the Agent, the Issuing Bank and the Lenders have agreed to
restructure and increase the existing revolving credit facility, standby letter of credit
subfacility and swing-line subfacility, to extend a term loan facility, and to amend, modify and
restate the Existing Credit Agreement upon the terms and conditions hereinafter set forth.



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



ARTICLE I




Definitions




     Section 1.1 Definitions. As used in this Agreement, the following terms have the
following meanings:




     “AAA” is defined in Section 13.13(b).




     “Accumulated Other Comprehensive Income” means, at any particular time, the
amount shown in the equity section of the Borrower’s consolidated balance sheet.




     “Act” is defined in Section 13.20.




     “Adjusted Eurodollar Rate” means, for any Eurodollar Advance for any Interest
Period therefor, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of
1%) determined by the Agent to be equal to the Eurodollar Rate for such Eurodollar Advance
for such Interest Period.




     “Adjustment Date” is defined in Section 2.11.



 









 






     “Administrative Questionnaire” means an Administrative Questionnaire in a form
supplied by the Agent.




     “Advance” means an advance of funds by the Lenders or any of them to the
Borrower pursuant to Article II (inclusive of the Revolving Credit Loan, the Term
Loan, and the Swing Loan) and the Continuation or Conversion thereof pursuant to Section
2.7 and Article V hereof.




     “Advance Request Form” means a certificate, in substantially the form of
Exhibit D hereto, properly completed and signed by the Borrower requesting an
Advance.




     “Affiliate” means, with respect to a specified Person, (a) another Person that
directly, or indirectly through one or more intermediaries, Controls or is Controlled by or
is under common Control with the Person specified; or (b) that directly or indirectly
beneficially owns or holds 5% or more of any class of voting stock of such Person; or (c) 5%
or more of the voting stock of which is directly or indirectly beneficially owned or held by
the Person in question.




     “Agent” has the meaning set forth in the introductory paragraph of this
Agreement.




     “Agreement” has the meaning set forth in the introductory paragraph of this
Agreement, as the same may from time to time be amended, restated, supplemented or modified.




     “Alpha Corporation” means that certain corporation that is the subject of a
proposed acquisition by the Borrower or any of its Subsidiaries as disclosed to the Agent in
writing prior to the date hereof.




     “Applicable Lending Office” means for each Lender and each Type of Advance, the
lending office of such Lender (or of an Affiliate of such Lender) designated for such Type
of Advance below its name on the signature pages hereof or such other office of such Lender
(or of an Affiliate of such Lender) as such Lender may from time to time specify to the
Borrower and the Agent as the office by which its Advances of such Type are to be made and
maintained.




     “Applicable Percentage” means with respect to any Lender, the percentage of the
total Commitments represented by such Lender’s Commitment. If the Commitments have
terminated or expired, the Applicable Percentages shall be determined based upon the
Commitments most recently in effect, giving effect to any assignments.




     “Applicable Rate” means: (a) during the period that an Advance is a Base Rate
Advance, the Base Rate, plus the Base Rate Margin, and (b) during the period that an Advance
is a Eurodollar Advance, the Adjusted Eurodollar Rate, plus the Eurodollar Margin.




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



2









 






     “Assignment and Assumption” means an assignment and assumption entered into by
a Lender and an Eligible Assignee (with the consent of any party whose consent is required
by Section 13.7) and accepted by the Agent pursuant to Section 13.7, in
substantially the form of Exhibit F hereto or any other form approved by the Agent.




     “Base Rate” means as of any date of determination, a rate per annum equal to
the greater of (a) the Prime Rate in effect on such day, or (b) the sum of the Federal Funds
Rate in effect on such day plus 0.5%. Any change in the Base Rate due to a change in the
Prime Rate or the Federal Funds Rate shall be effective on the effective date of such change
in the Prime Rate or the Federal Funds Rate, respectively, without notice to the Borrower.




     “Base Rate Advances” means Advances that bear interest at rates based
upon the Base Rate.




     “Base Rate Margin” has the meaning set forth in Section 2.11.




     “Borrower” is defined in the introductory paragraph of this Agreement.




     “Borrower Security Agreement” means that certain Fourth Amended and Restated
Borrower Security Agreement dated as of the date hereof, executed by the Borrower in favor
of the Agent for the benefit of the Lenders, in form and substance satisfactory to the Agent
and Lenders, as the same may be amended, restated, supplemented, or modified from time to
time.




     “Brady Law” means the Brady Handgun Violence Prevention Act § 102(s)(1), 18
U.S.C.A. § 922(s)(1) (West Supp. 2003).




     “Business Day” means (a) any day on which commercial banks are not authorized
or required to close in Austin, Texas and (b) with respect to all borrowings, payments,
Conversions, Continuations, Interest Periods, and notices in connection with Eurodollar
Advances, any day on which dealings in Dollar deposits are carried out in the London
interbank market.




     “Capital Expenditures” means, for any period, all expenditures of the Borrower
and its Subsidiaries which are classified as additions to property, plant and equipment on
the consolidated statement of cash flows of the Borrower in accordance with GAAP, including
all such expenditures so classified as “recurring capital expenditures” and all such
expenditures associated with Capital Lease Obligations, but excluding all such expenditures
used to acquire fixed assets from a Target in connection with a Permitted Acquisition.




     “Capital Lease Obligation” means, as to any Person, the obligations of such
Person to pay rent or other amounts under a lease of (or other agreement conveying the right
to use) real and/or personal property, which obligations are required to be classified and
accounted for as a capital lease on a balance sheet of such Person under GAAP. For purposes
of this Agreement, the amount of such Capital Lease Obligations shall be the capitalized
amount thereof, determined in accordance with GAAP.



3









 






     “Cash Equivalent Investment” means, as to any Person, (a) securities issued or
directly and fully guaranteed or insured by the United States or any agency or
instrumentality thereof (provided that the full faith and credit of the United States is
pledged in support thereof) having maturities of not more than six months from the date of
acquisition, (b) time deposits and certificates of deposit of any commercial bank having, or
which is the principal banking subsidiary of a bank holding company having, a long-term
unsecured debt rating of at least “AAA” or the equivalent thereof from Standard & Poor’s, a
division of The McGraw-Hill Companies, Inc. or “Aaa” or the equivalent thereof from Moody’s
Investors Service, Inc. with maturities of not more than six months from the date of
acquisition by such Person, (c) repurchase obligations with a term of not more than seven
days for underlying securities of the types described in clause (a) above entered
into with any bank meeting the qualifications specified in clause (b) above, (d)
commercial paper issued by any Person incorporated in the United States rated at least A-1
or the equivalent thereof by Standard & Poor’s, a division of The McGraw-Hill Companies,
Inc. or at least P-1 or the equivalent thereof by Moody’s Investors Service, Inc. and in
each case maturing not more than six months after the date of acquisition by such Person and
(e) investments in money market funds substantially all of whose assets are comprised of
securities of the types described in clauses (a) through (d) above.




     “Change in Law” means the occurrence, after the date of this Agreement, of any
of the following: (a) the adoption or taking effect of any law, rule, regulation (including
Regulation D) or treaty, (b) any change in any law, rule, regulation or treaty or in the
administration, interpretation or application thereof by any Governmental Authority or (c)
the making or issuance of any request, guideline or directive (whether or not having the
force of law) by any Governmental Authority.




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




     “Collateral” means the property in which Liens have been granted to the Agent
for the benefit of the Lenders pursuant to the Borrower Security Agreement, the Subsidiary
Security Agreement, or any other agreement, document, or instrument executed by the Borrower
or a Guarantor in accordance with Section 8.10, whether such Liens are now existing
or hereafter arise.




     “Commitment” means, as to each Lender, the obligation of such Lender to (a)
make Revolving Credit Loan Advances pursuant to Section 2.1, (b) purchase
participations (or with respect to the Swing Lender or the Issuing Bank, hold other
interests in) the Swing Loan and in Letters of Credit as described in Articles II
and III hereunder, and (c) make the Term Loan pursuant to Section 2.2.




     “Commitment and Acceptance” is defined in Section 2.13(a).




     “Commitment Fee” is defined in Section 2.10.




     “Commitment Fee Rate” has the meaning set forth in Section 2.11.




     “Communications” is defined in Section 13.11(b)(iii).



4









 






     “Compliance Certificate” is defined in Section 8.1(c).




     “Consolidated Net Income” means, at any particular time, the aggregate net
income or loss of the Borrower and its consolidated Subsidiaries determined on a
consolidated basis as determined in accordance with GAAP.




     “Consolidated Net Worth” means, at any particular time, all amounts which, in
conformity with GAAP, would be included as stockholders’ equity on a consolidated balance
sheet of the Borrower and the Subsidiaries; provided, however, there shall be excluded
therefrom (a) any amount at which shares of capital stock of the Borrower appear as an asset
on the Borrower’s balance sheet, and (b) the Accumulated Other Comprehensive Income.




     “Consumer Obligations” is defined in Section 9.8(c).




     “Continue,” “Continuation,” and “Continued” shall refer to the
continuation pursuant to Section 2.7 of a Eurodollar Advance as a Eurodollar Advance
from one Interest Period to the next Interest Period.




     “Continuing Lenders” is defined in Section 13.23.




     “Contribution and Indemnification Agreement” means that certain Fourth Amended
and Restated Contribution and Indemnification Agreement dated as of the date hereof executed
by the Borrower and the Guarantors, in form and substance satisfactory to the Agent and the
Lenders, as the same may be amended, restated, supplemented or modified from time to time.




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




     “Convert,” “Conversion,” and “Converted” shall refer to a
conversion pursuant to Section 2.7 or Article V of one Type of Advance into
another Type of Advance.




     “CSO LC Issuer” means, with respect to any CSO LC, the Borrower or a
Guarantor that issued such CSO LC.




     “CSO LC” means, any letter of credit issued by a CSO LC Issuer to an
unaffiliated third party lender for the account of a borrower of a consumer loan in
connection with the CSO Program.




     “CSO LC Disbursement” means a disbursement by a CSO LC Issuer to an
unaffiliated third party lender in connection with a drawing under a CSO LC.




     “CSO Program” means the credit services organization program implemented by the
Borrower or any Guarantor in compliance with applicable provisions of law, including without
limitation in those instances where Texas law is applicable, the Texas Finance Code and
Sections 302 and 393 thereof.



5









 






     “Debt” means as to any Person at any time (without duplication): (a) all
obligations of such Person for borrowed money, (b) all obligations of such Person evidenced
by bonds, notes, debentures, or other similar instruments, (c) all obligations of such
Person to pay the deferred purchase price of property or services, except trade accounts
payable of such Person arising in the ordinary course of business that are not past due by
more than 90 days, (d) all Capital Lease Obligations of such Person, (e) all Debt or other
obligations of others Guaranteed by such Person, (f) all obligations secured by a Lien
existing on property owned by such Person, whether or not the obligations secured thereby
have been assumed by such Person or are non-recourse to the credit of such Person, (g) all
reimbursement obligations of such Person (whether contingent or otherwise) in respect of
letters of credit, bankers’ acceptances, surety or other bonds and similar instruments, and
(h) all liabilities of such Person in respect of unfunded vested benefits under any Plan.




     “Default” means an Event of Default or the occurrence of an event or condition
which with notice or lapse of time or both would become an Event of Default.




     “Default Rate” means the lesser of (a) the Maximum Rate or, (b) the sum of the
Base Rate in effect from day to day plus 5% per annum.




     “Deposit and Cash Management Services” means the deposit and/or cash management
products and services provided by a Lender in connection with any deposit or other accounts
of the Borrower or any of its Subsidiaries, including without limitation, the extensions of
credit made by a Lender to or for the account of the Borrower or any of its Subsidiaries in
the ordinary course of business in connection therewith.




     “Disposition” is defined in Section 9.8.




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




     “EBITDA” means, for any period of determination, Consolidated Net Income, plus,
to the extent that any of the following were deducted in calculating such Consolidated Net
Income, interest expense, tax expenses, and depreciation and amortization. EBITDA will
exclude all extraordinary items of income and loss and any gain or loss on the sale of
assets. In the event a Permitted Acquisition shall have been consummated prior to the end of
the period for which EBITDA is calculated, but during the period covered by the calculation,
the Borrower shall include the historical EBITDA (as calculated in accordance with this
definition) of the Target in connection with a Permitted Acquisition for the time period
covered by the calculation.




     “Eligible Assignee” means (a) a Lender, (b) an Affiliate of a Lender, (c) an
Approved Fund, and (d) any other Person (other than a natural person) approved by (i) the
Agent, (ii) in the case of any assignment of a Revolving Credit Commitment, the Issuing
Bank, and (iii) unless a Default has occurred and is continuing, the Borrower, such approval
not to be unreasonably withheld or delayed by the Borrower; provided that
notwithstanding the foregoing, “Eligible Assignee” shall not include the Borrower or any of
the Borrower’s Affiliates or Subsidiaries.



6









 






     “Environmental Laws” means any and all federal, state, and local laws,
regulations, and requirements pertaining to health, safety, or the environment, as such
laws, regulations, and requirements may be amended or supplemented from time to time.




     “Environmental Liabilities” means, as to any Person, all liabilities,
obligations, responsibilities, Remedial Actions, losses, damages, punitive damages,
consequential damages, treble damages, costs, and expenses, (including, without limitation,
all reasonable fees, disbursements and expenses of counsel, expert and consulting fees and
costs of investigation and feasibility studies), fines, penalties, sanctions, and interest
incurred as a result of any claim or demand, by any Person, whether based in contract, tort,
implied or express warranty, strict liability, criminal or civil statute, including any
Environmental Law, permit, order or agreement with any Governmental Authority or other
Person, arising from environmental, health or safety conditions or the Release or threatened
Release of a Hazardous Material into the environment.




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




     “ERISA Affiliate” means any corporation or trade or business which is a member
of the same controlled group of corporations (within the meaning of Section 414(b) of the
Code) as the Borrower, which is under common control (within the meaning of Section 414(c)
of the Code) with the Borrower, or which is otherwise affiliated with the Borrower (within
the meaning of Section 414(m) or Section 414(o) of the Code).




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




     “Eurodollar Advances” means Advances the interest rates on which are determined
on the basis of the rates referred to in the definition of “Adjusted Eurodollar Rate” in
this Section 1.1.




     “Eurodollar Margin” is defined in Section 2.11.




     “Eurodollar Rate” means, for any Interest Period for all Eurodollar Loans, an
interest rate per annum equal to the rate per annum obtained by dividing (a) the rate per
annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on Telerate Page
3750 (or any successor page) as the London interbank offered rate for deposits in Dollars at
11:00 a.m. (London time) two Business Days before the first day of such Interest Period for
a period equal to such Interest Period (provided that, if for any reason such rate is not
available, the term “Eurodollar Rate” shall mean, for any Interest Period for all Eurodollar
Advances, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%)
appearing on Reuters Screen LIBO Page as the London interbank offered rate for deposits in
Dollars at approximately 11:00 a.m. (London time) two Business Days prior to the first day
of such Interest Period for a term comparable to such Interest Period; provided, however, if
more than one rate is specified on Reuters Screen LIBO Page, the applicable rate shall be
the arithmetic mean of all such rates) by (b) a percentage equal to 100% minus the
Eurodollar Rate Reserve Percentage for such Interest Period. Each determination by the
Agent pursuant to this definition shall be conclusive absent manifest error.



7









 






     “Eurodollar Rate Reserve Percentage” for any Interest Period for all Eurodollar
Loans 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 Loans is determined) having a term equal to such Interest
Period.




     “Event of Default” is defined in Section 11.1.




     “Exchange Act” means the Securities and Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder.




     “Excluded Foreign Subsidiary” means any Subsidiary of the Borrower organized
under the laws of any jurisdiction outside the United States in respect of which either (a)
the pledge of all the ownership or equity interest of such Subsidiary as Collateral, (b) the
pledge by such Subsidiary of all of its assets as Collateral or (c) the guarantee by such
Subsidiary of the Obligations, would, in the good faith judgment of the Borrower and
acceptable to the Agent, result in adverse tax consequences to the Borrower.




     “Excluded Taxes” means, with respect to the Agent, any Lender, the Issuing Bank
or any other recipient of any payment to be made by or on account of any obligation of the
Borrower hereunder, (a) taxes imposed on or measured by its overall net income (however
denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the
jurisdiction (or any political subdivision thereof) under the laws of which such recipient
is organized or in which its principal office is located or, in the case of any Lender, in
which its Applicable Lending Office is located, (b) any branch profits taxes imposed by the
United States of America or any similar tax imposed by any other jurisdiction in which the
Borrower is located and (c) in the case of a Foreign Lender (other than an assignee pursuant
to a request by the Borrower under Section 4.7), any withholding tax that is imposed
on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party
hereto (or designates a new lending office) or is attributable to such Foreign Lender’s
failure or inability (other than as a result of a Change in Law) to comply with Section
4.6(e), except to the extent that such Foreign Lender (or its assignor, if any) was
entitled, at the time of designation of a new lending office (or assignment), to receive
additional amounts from the Borrower with respect to such withholding tax pursuant to
Section 4.6(a).




     “Existing Credit Agreement” is defined in the recitals of this Agreement.




     “Existing Debt” means the Debt listed on Schedule 9.1.




     “Federal Funds Rate” means, for any day, the rate per annum (rounded upwards,
if necessary, to the nearest 1/16 of 1%) equal to the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers on such day, as published by the Federal Reserve



8









 







Bank of New York on the Business Day next succeeding such day, provided that (a) if the
day for which such rate is to be determined is not a Business Day, the Federal Funds Rate
for such day shall be such rate on such transactions on the next preceding Business Day as
so published on the next succeeding Business Day, and (b) if such rate is not so published
on such next succeeding Business Day, the Federal Funds Rate for any day shall be the
average rate charged to Wells Fargo Bank, National Association on such day on such
transactions as determined by the Agent.




     “Fiscal Quarter” means any three-month period ending December 31, March 31,
June 30, or September 30.




     “Fiscal Year” means each 12-month period ending September 30 of each year.




     “Fixed Charge Coverage Ratio” means, for each Fiscal Quarter, the quotient
determined by dividing (a) the sum of EBITDA, plus Rental Expense, minus Capital
Expenditures, minus dividends paid in cash by the Borrower, minus taxes paid in cash by the
Borrower and its consolidated Subsidiaries, in each case for the period of such Fiscal
Quarter, plus the three prior Fiscal Quarters, by (b) the sum of the aggregate interest
expense, the current portion of long-term Debt (excluding the current portion of the
outstanding balance under the Revolving Credit Commitments) and Rental Expense of the
Borrower and its consolidated Subsidiaries, in each case for the period of such Fiscal
Quarter plus the three prior Fiscal Quarters.




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




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




     “Funded Debt” means, at any particular time, the sum of the following,
calculated on a consolidated basis for the Borrower and the Subsidiaries in accordance with
GAAP: (a) all obligations for borrowed money, including but not limited to senior bank
debt, senior notes and subordinated debt, (b) all obligations relating to the deferred
purchase price of property and services, (c) all Capital Lease Obligations, (d) all
obligations as a reimbursement obligor with respect to an issued letter of credit or similar
instrument (whether drawn or undrawn), and (e) all obligations under a Guarantee of borrowed
money, or any other type of direct or contingent obligation other than Guarantees permitted
under Section 9.1(g).




     “GAAP” means generally accepted accounting principles, applied on a consistent
basis, as set forth in Opinions of the Accounting Principles Board of the American Institute
of Certified Public Accountants and/or in statements of the Financial Accounting Standards
Board and/or their respective successors and which are applicable in the circumstances as of
the date in question. Accounting principles are applied on a “consistent basis” when the
accounting principles applied in a current period are



9









 







comparable in all material respects to those accounting principles applied in a
preceding period.




     “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).




     “Guarantee” by any Person means any obligation, contingent or otherwise, of
such Person directly or indirectly guaranteeing any Debt or other obligation of any other
Person and, without limiting the generality of the foregoing, any obligation, direct or
indirect, contingent or otherwise, of such Person (a) to purchase or pay (or advance or
supply funds for the purchase or payment of) such Debt or other obligation (whether arising
by virtue of partnership arrangements, by agreement to keep-well, to purchase assets, goods,
securities or services, to take-or-pay, or to maintain financial statement conditions or
otherwise) or (b) entered into for the purpose of assuring in any other manner the obligee
of such Debt or other obligation of the payment thereof or to protect the obligee against
loss in respect thereof (in whole or in part), provided that the term Guarantee shall not
include endorsements for collection or deposit in the ordinary course of business. The term
“Guarantee” used as a verb has a corresponding meaning.




     “Guarantor” means collectively, (a) each and every domestic Subsidiary of the
Borrower in existence as of the date hereof which include but are not limited to those
Subsidiaries listed on Schedule 7.14, (b) each and every Subsidiary of the Borrower
organized under the laws of any jurisdiction outside the United States that executes the
Guaranty or a supplement to the Guaranty in accordance with Section 8.10 and (c)
each and every Significant Subsidiary formed or acquired on or after the date hereof (which
are listed on Schedule 7.14 as the same may be amended from time to time in
accordance with Section 8.10) that executes a supplement to the Guaranty in
accordance with Section 8.10.




     “Guaranty” means that certain Fourth Amended and Restated Guaranty Agreement
dated as of the date hereof, executed by the Guarantors in favor of the Agent and the
Lenders, in form and substance satisfactory to the Agent and the Lenders, as the same has
been or may be amended, restated, supplemented, or otherwise modified from time to time.




     “Hazardous Material” means any substance, product, waste, pollutant, material,
chemical, contaminant, constituent, or other material which is or becomes listed, regulated,
or addressed under any Environmental Law.




     “Hedge Agreements” means all swaps, caps, collars or similar arrangements
providing for protection against fluctuations in interest rates (whether from floating to
fixed or from fixed to floating), currency exchange rates or commodities prices or the
exchange of nominal interest obligations, either generally or under specific contingencies.




     “Increase Date” is defined in Section 2.13(b).



10









 






     “Increasing Lenders” is defined in Section 2.13(a).




     “Indemnified Taxes” means Taxes other than Excluded Taxes.




     “Indemnitee” is defined in Section 13.1(b).




     “Information” is defined in Section 13.19.




     “Interest Period” means the period commencing, with respect to any Eurodollar
Advances, on the date such Eurodollar Advances are made or Converted from Advances of
another Type or, in the case of each subsequent, successive Interest Period applicable to a
Eurodollar Advance, the last day of the next preceding Interest Period with respect to such
Advance, and ending on the numerically corresponding day in the first, second, third or
sixth calendar month thereafter, as the Borrower may select as provided in Section
2.6 or 2.7 hereof, except that each such Interest Period which commences on the
last Business Day of a calendar month (or on any day for which there is no numerically
corresponding day in the appropriate subsequent calendar month) shall end on the last
Business Day of the first, second, third or sixth calendar month thereafter, as the case may
be. Notwithstanding the foregoing: (a) each Interest Period which would otherwise end on a
day which is not a Business Day shall end on the next succeeding Business Day or, if such
succeeding Business Day falls in the next succeeding calendar month, on the next preceding
Business Day; (b) any Interest Period for Eurodollar Advances under the Revolving Credit
Loan which would otherwise extend beyond the Revolving Credit Termination Date shall end on
the Revolving Credit Termination Date and the provisions of Section 5.5 shall apply;
(c) any Interest Period for Eurodollar Advances under the Term Loan which would otherwise
extend beyond the Term Loan Termination Date shall end on the Term Loan Termination Date and
the provisions of Section 5.5 shall apply; and (d) no Interest Period for any
Eurodollar Advances shall have a duration of less than one month, and, if the Interest
Period for any Eurodollar Advances would otherwise be a shorter period, such Advances shall
not be available hereunder.




     “Inventory” means at any particular time, inventory (as defined in the UCC) of
the Borrower or any of the Subsidiaries including, without limitation, all materials and
goods held by or for the benefit of the Borrower or any of the Subsidiaries for sale, lease
or consumption.




     “Issuing Bank” means Wells Fargo Bank, National Association, in its capacity as
issuer of Letters of Credit hereunder.




     “LC Participation” means, with respect to any Lender, at any time, the amount
of participating interest held by such Lender (or in the case of the Issuing Bank, other
interests) in respect of a Letter of Credit.




     “Leased Location” means any location which is leased by the Borrower or any
Subsidiary and at which the Borrower or the applicable Subsidiary maintains Collateral.




     “Lender” has the meaning specified in the introductory paragraph of this
Agreement and, as the context requires, includes the Swing Lender.



11









 






     “Letter of Credit” means, any standby letter of credit issued by the Issuing
Bank for the account of the Borrower pursuant to Article III.




     “Letter of Credit Disbursement” means a disbursement by the Issuing Bank to the
beneficiary of a Letter of Credit in connection with a drawing thereunder.




     “Letter of Credit Liabilities” means, at any time, the sum of (a) the aggregate
amounts available to be drawn of all outstanding Letters of Credits and (b) the aggregate
amount of all Letter of Credit Disbursements for which the Issuing Bank has not been
reimbursed by the Borrower.




     “Letter of Credit Request Form” means, a certificate, in substantially the form
of Exhibit E hereto, properly completed and signed by the Borrower requesting
issuance of a Letter of Credit.




     “Lien” means any lien, mortgage, security interest, tax lien, financing
statement, pledge, charge, hypothecation, assignment, preference, priority, or other
encumbrance of any kind or nature whatsoever (including, without limitation, any conditional
sale or title retention agreement), whether arising by contract, operation of law, or
otherwise.




     “Litigation Fund Account” means a litigation fund account established and
maintained by the Borrower or any Subsidiary to secure the Borrower’s and/or its
Subsidiaries’ obligations to be incurred with County Bank of Rehoboth Beach, Delaware in
connection with Pay-Day Advance Loans, such obligations to be established and governed by
the Pay-Day Advance Loan Documents.




     “Loan Documents” means this Agreement, the Notes, the Guaranty, the
Contribution and Indemnification Agreement, the Borrower Security Agreement, the Subsidiary
Security Agreement, the Trademark Security Agreement and all other promissory notes,
security agreements, assignments, deeds of trust, guaranties, and other instruments,
documents, and agreements now or hereafter executed and delivered pursuant to or in
connection with this Agreement, as such instruments, documents, and agreements may be
amended, modified, renewed, extended, or supplemented from time to time.




     “Loans” means, collectively, the Revolving Credit Loan, the Term Loan, and the
Swing Loan.




     “Material Adverse Effect” means a material adverse effect on (a) the business,
condition (financial or otherwise), operations, prospects, or properties of the Borrower and
the Subsidiaries taken as a whole, or (b) the validity or enforceability of this Agreement
or any of the other Loan Documents or the rights or remedies of the Agent or the Lenders
hereunder or thereunder. In determining whether any individual event could reasonably be
expected to result in a Material Adverse Effect, notwithstanding that such event does not
itself have such effect, a Material Adverse Effect shall be deemed to have occurred if the
cumulative effect of such event and all other then existing events could reasonably be
expected to result in a Material Adverse Effect.




     “Material Debt” is defined in Section 11.1(h).



12









 






     “Maximum Rate” means, at any time and with respect to any Lender, the maximum
rate of interest under applicable law that such Lender may charge the Borrower. The Maximum
Rate shall be calculated in a manner that takes into account any and all fees, payments, and
other charges in respect of the Loan Documents that constitute interest under applicable
law. Each change in any interest rate provided for herein based upon the Maximum Rate
resulting from a change in the Maximum Rate shall take effect without notice to the Borrower
at the time of such change in the Maximum Rate. For purposes of determining the Maximum
Rate under Texas law, the applicable rate ceiling shall be the applicable weekly ceiling
described in, and computed in accordance with, Chapter 303 of the Texas Finance Code.




     “Monthly Payment Date” means the third day of each calendar month of each year,
the first of which shall be February 3, 2009.




     “Multiemployer Plan” means a multiemployer plan defined as such in Section
3(37) of ERISA to which contributions have been made by the Borrower or any ERISA Affiliate
and which is covered by Title IV of ERISA.




     “Net Proceeds” from any issuance, sale or disposition of any shares of equity
securities (or any securities convertible or exchangeable for any such shares, or any
rights, warrants, or options to subscribe for or purchase any such shares) means the amount
equal to (a) the aggregate gross proceeds of such issuance, sale or other disposition, less
(b) the following: (i) placement agent fees, (ii) underwriting discounts and commissions,
(iii) bank and other lender fees, and (iv) reasonable legal fees and other reasonable
expenses payable by the issuer in connection with such issuance, sale or other disposition.
“Net Proceeds” from any disposition of assets means the amount equal to (a) the
aggregate gross proceeds of such disposition, less (b) the following: (i) sales or other
similar taxes paid or payable by the seller in connection with such disposition, (ii)
reasonable broker fees in connection with such disposition, (iii) reasonable legal fees and
other reasonable expenses payable by the seller in connection with such disposition and (iv)
the amount of any Debt secured by the assets that must be repaid in connection with such
disposition so long as it is a Debt permitted under this Agreement.




     “New Lenders” means (a) an Affiliate of a Lender; (b) an Approved Fund; and (c)
any other Person (other than a natural person) approved by the Agent, the Issuing Bank, the
Swing Lender and the Borrower (such approval not to be unreasonably withheld) that,
immediately prior to its issuance of a Revolving Credit Commitment pursuant to Section
2.13 was not a Lender hereunder.




     “Notes” means, collectively, the Revolving Credit Notes, the Term Notes, and
the Swing Note.




     “Obligated Party” means each Guarantor and any other Person who is or becomes
party to any written agreement that guarantees or secures payment and performance of the
Obligations or any part thereof.




     “Obligations” means, collectively, the Primary Obligations and the Secondary
Obligations.



13









 






     “Other Taxes” means all present or future stamp or documentary taxes or any
other excise or property taxes, charges or similar levies arising from any payment made
hereunder or under any other Loan Document or from the execution, delivery or enforcement
of, or otherwise with respect to, this Agreement or any other Loan Document.




     “Participant” has the meaning assigned to such term in Section 13.7(d).




     “Pay-Day Advance Loan Documents” means the documents, instruments and
agreements which are acceptable to the Agent and the Lenders and are more specifically
described on Schedule 1.1(c) attached hereto, and all amendments, modifications,
renewals, extensions, restatements and supplements thereto, copies of which have been
provided to the Agent and the Lenders and are satisfactory in form and substance to the
Agent and the Lenders; provided that if such amendments, modifications, renewals,
extensions, restatements and supplements are non-substantive from the perspective of the
economics of the transactions evidenced by such documents, instruments and agreements
described on Schedule 1.1(c), prior approval by the Agent and the Lenders is not
required.




     “Pay-Day Advance Loans” means loans which are anticipated to be repaid by the
proceeds of deferred presentment checks or through an ACH debit from the account of the
borrower of the Pay-Day Advance Loan.




     “Payment Office” means the operational office of the Agent in Denver, Colorado,
presently located at 1740 Broadway, 3rd Floor, MAC #C7300-034, Denver, Colorado 80274.




     “PBGC” means the Pension Benefit Guaranty Corporation or any entity succeeding
to all or any of its functions under ERISA.




     “Permitted Acquisitions” means (a) those acquisitions by the Borrower or any of
its Subsidiaries of all or substantially all of either the assets of, or equity interests
in, a Target so long as (i) the purchase price (whether in cash or other consideration) of
such acquisition shall not exceed an amount equal to 15% of the Borrower’s Consolidated Net
Worth as of the closing date of such acquisition, (ii) such acquisitions shall be of either
the assets of a Target used in, or equity interests in a Target engaged in, the same or
substantially similar businesses as the Borrower and its Subsidiaries as of the date hereof,
(iii) such acquisitions must not be hostile acquisitions, (iv) no Default or Event of
Default has occurred and is continuing or would result therefrom, (v) the Borrower has
furnished to the Agent a Compliance Certificate setting forth (A) recalculations of
compliance with the covenants contained in Article X for the prior four Fiscal
Quarters then most recently ended prior to the date of such Permitted Acquisition, on a pro
forma basis as if such Permitted Acquisition had occurred on the first day of such period,
and such recalculations shall show that such covenants would have been complied with if the
Permitted Acquisition had occurred on the first day of such period and (B) the Borrower in
good faith believes that after giving effect to such Permitted Acquisition the covenants
contained in Article X will continue to be met for the one year period following the
consummation of such Permitted Acquisition, (vi) after giving effect to such Permitted Acquisition, the aggregate amount of Revolving Credit Loan Advances available to be



14









 








advanced pursuant to Section 2.1 shall be at least $10,000,000, and (vii) the Agent
shall have received from the Borrower notice of such Permitted Acquisition at least 30 days
prior to the closing of such Permitted Acquisition, and (b) the Permitted Alpha Acquisition.




     “Permitted Alpha Acquisition” means an acquisition by the Borrower or any of
its Subsidiaries of all or substantially all of the equity interests in Alpha Corporation so
long as (a) no Default or Event of Default has occurred and is continuing or would result
therefrom, (b) the Borrower has furnished to the Agent a Compliance Certificate setting
forth (i) recalculations of compliance with the covenants contained in Article X for
the prior four Fiscal Quarters then most recently ended prior to the date of such Permitted
Alpha Acquisition, on a pro forma basis as if such Permitted Alpha Acquisition had occurred
on the first day of such period, and such recalculations shall show that such covenants
would have been complied with if the Permitted Alpha Acquisition had occurred on the first
day of such period and (ii) the Borrower in good faith believes that after giving effect to
such Permitted Alpha Acquisition the covenants contained in Article X will continue
to be met for the one year period following the consummation of such Permitted Alpha
Acquisition, (c) after giving effect to such Permitted Alpha Acquisition, the aggregate
amount of Revolving Credit Loan Advances available to be advanced pursuant to Section
2.1 shall be at least $10,000,000, (d) the Agent shall have received from the Borrower
notice of such Permitted Acquisition at least 30 days prior to the closing of such Permitted
Acquisition, and (e) the closing of the Permitted Alpha Acquisition shall occur no later
than December 31, 2008, otherwise such acquisition will be subject to the tests set forth in
clause (a) of the definition of “Permitted Acquisitions”.




     “Permitted Debt” means (a) the Obligations, (b) Existing Debt and (c) other
Debt permitted by Section 9.1.




     “Permitted Liens” means Liens permitted by Section 9.2.




     “Permitted Payments” means those dividends or other payments or distributions
on account of its capital stock or made to redeem, purchase, retire, or otherwise acquire
any of its capital stock (or the purchase or acquisition by any Subsidiary of any capital
stock of the Borrower or another Subsidiary), so long as (a) no Default or Event of Default
has occurred and is continuing or would result therefrom, (b) the Borrower has furnished to
the Agent a Compliance Certificate setting forth (i) recalculations of compliance with the
covenants contained in Article X for the prior four Fiscal Quarters then most
recently ended prior to the date of such Permitted Payment, on a pro forma basis as if such
Permitted Payment had occurred on the first day of such period, and such recalculations
shall show that such covenants would have been complied with if the Permitted Payment had
occurred on the first day of such period and (ii) the Borrower in good faith believes that
after giving effect to such Permitted Payment the covenants contained in Article X
will continue to be met for the one year period following the consummation of such Permitted
Payment, and (c) the aggregate amount of all such Permitted Payments shall not exceed
$10,000,000 in any Fiscal Year of the Borrower.




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



15









 






     “Plan” means any employee benefit plan (within the meaning of Section 3(3) of
ERISA) established or maintained by the Borrower or any ERISA Affiliate, which plan is
subject to the provisions of ERISA.




     “Platform” is defined in Section 13.11(b)(iii).




     “Primary Obligations” means all obligations, indebtedness, and liabilities of
the Borrower to the Agent, the Issuing Bank, and the Lenders, or any of them, arising
pursuant to any of the Loan Documents, now existing or hereafter arising, whether direct,
indirect, related, unrelated, fixed, contingent, liquidated, unliquidated, joint, several,
or joint and several, including, without limitation, the obligations, indebtedness, and
liabilities of the Borrower under this Agreement, the Notes, and the other Loan Documents
(including without limitation, all of the Borrower’s contingent reimbursement obligations in
respect of Letters of Credit), and all interest accruing thereon and all attorneys’ fees and
other expenses incurred in the enforcement or collection thereof.




     “Prime Rate” means, at any time, the rate of interest per annum then most
recently announced by Wells Fargo Bank, National Association at its principal office in San
Francisco as its prime rate, which rate may not be the lowest rate of interest charged by
Wells Fargo Bank, National Association to its borrowers. Each change in any interest rate
provided for herein based upon the Prime Rate resulting from a change in the Prime Rate
shall take effect on the date the change is announced by Wells Fargo Bank, National
Association without notice to the Borrower at the time of such change in the Prime Rate.




     “Principal Office” means the principal office of the Agent in Austin, Texas,
presently located at 111 Congress Avenue, Suite 2200, Austin, Texas 78701.




     “Prohibited Transaction” means any transaction set forth in Section 406 or 407
of ERISA or Section 4975(c)(1) of the Code for which there does not exist a statutory or
administrative exemption.




     “Quarterly Payment Date” means the third day of each January, April, July and
October of each year, the first of which shall be April 3, 2009.




     “Register” is defined in Section 13.7(c).




     “Regulation D” means Regulation D of the Board of Governors of the Federal
Reserve System as the same may be amended or supplemented from time to time.




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




     “Release” means, as to any Person, any release, spill, emission, leaking,
pumping, injection, deposit, disposal, disbursement, leaching, or migration of Hazardous
Materials into the indoor or outdoor environment or into or out of property owned by such
Person,
including, without limitation, the movement of Hazardous Materials through or in the
air, soil, surface water, ground water, or property in violation of Environmental Laws. The
term “Release” used as a verb has a corresponding meaning.




16











 






     “Remedial Action” means all actions required to (a) clean up, remove, treat, or
otherwise address Hazardous Materials in the indoor or outdoor environment, (b) prevent the
Release or threat of Release or minimize the further Release of Hazardous Materials so that
they do not migrate or endanger or threaten to endanger public health or welfare or the
indoor or outdoor environment, or (c) perform pre-remedial studies and investigations and
post-remedial monitoring and care.




     “Rental Expense” means the amounts paid by the Borrower and each Subsidiary to
lease facilities for business operations.




     “Reportable Event” means any of the events set forth in Section 4043 of ERISA.




     “Required Lenders” means at any time while no Advances or Letters of Credit
Liabilities are outstanding, two or more Lenders having more than 50% of the aggregate
amount of the Commitments and, at any time while Advances or Letter of Credit Liabilities
are outstanding, two or more Lenders holding more than 50% of the outstanding aggregate
principal amount of the Revolving Credit Loan Advances, the Term Loan, the LC
Participations, and the SL Participations.




     “Reserve Requirement” means, for any Eurodollar Advance for any Interest Period
therefor, the average maximum rate at which reserves (including any marginal, supplemental
or emergency reserves) are required to be maintained during such Interest Period under
Regulation D by member banks of the Federal Reserve System in New York City with deposits
exceeding one billion Dollars against “Eurocurrency Liabilities” as such term is used in
Regulation D. Without limiting the effect of the foregoing, the Reserve Requirement shall
reflect any other reserves required to be maintained by such member banks by reason of any
Change in Law against (i) any category of liabilities which includes deposits by reference
to which the Adjusted Eurodollar Rate is to be determined, or (ii) any category of
extensions of credit or other assets which include Eurodollar Advances.




     “Revolving Credit Commitment” means, as to each Lender, the obligation of such
Lender to (a) make the Revolving Credit Loan pursuant to Section 2.1 and (b)
purchase participations (or with respect to the Swing Lender or the Issuing Bank, held other
interests in) the Swing Loan and in Letters of Credit described in Articles II and
III hereunder, in the aggregate principal amount up to but not exceeding the amount
set forth opposite the name of such Lender on Schedule 1.1(a) hereto under the
heading “Revolving Credit Commitment”, as the same may be reduced pursuant to Section
2.12, terminated pursuant to Section 2.12 or 11.2 or increased pursuant
to Section 2.13. As of the date hereof, the aggregate amount of all Revolving
Credit Commitments is $80,000,000.




     “Revolving Credit Loan” means the revolving credit loan made or to be made
hereunder to Borrower pursuant to Section 2.1.




     “Revolving Credit Loan Advance” means an Advance under the Revolving Credit
Loan.



17









 






     “Revolving Credit Notes” means the promissory notes of the Borrower payable to
the order of the Lenders in the aggregate principal amount of the Revolving Credit Loan, in
substantially the form of Exhibit A hereto, and all extensions, renewals, and
modifications thereof.




     “Revolving Credit Termination Date” means 10:00 a.m. (Austin, Texas time) on
December 31, 2011 or such earlier date and time on which the Revolving Credit Commitments
and Swing Commitment terminate as provided in this Agreement.




     “Rules” is defined in Section 13.13(b).




     “Secondary Obligations” means all obligations, indebtedness, and liabilities of
the Borrower to the Lenders or any of them, arising pursuant to or in connection with the
Deposit and Cash Management Services or any Specified Hedge Agreement, now existing or
hereafter arising, whether direct, indirect, related, unrelated, fixed, contingent,
liquidated, unliquidated, joint, several, or joint and several, including without
limitation, the obligations of the Borrower to pay all fees, costs and expenses (including
without limitation, reasonable attorneys’ fees) provided for in connection with the
documentation governing the Deposit and Cash Management Services or any Specified Hedge
Agreement.




     “Significant Subsidiary” means any direct or indirect Subsidiary of the
Borrower formed or acquired after the date hereof which either (a) has assets with an
aggregate book value of equal to or greater than $5,000,000, (b) is designated by the Agent
or the Required Lenders as a Significant Subsidiary, or (c) owns equity interests in a
foreign Significant Subsidiary.




     “SL Participation” means, with respect to any Lender, at any time, the amount
of participating interest held by such Lender (or in the case of the Swing Lender, other
interests) in respect of the Swing Loan.




     “Specified Hedge Agreement” means any Hedge Agreement entered into by Borrower
or any of its Subsidiaries and any Lender, or any Person that was a Lender when such Hedge
Agreement was entered into as counterparty.




     “Subsidiary” means any corporation (or other entity) of which at least a
majority of the outstanding shares of stock (or other ownership interests) having by the
terms thereof ordinary voting power to elect a majority of the board of directors (or
similar governing body) of such corporation (or other entity) (irrespective of whether or
not at the time stock (or other ownership interests) of any other class or classes of such
corporation (or other entity) shall have or might have voting power by reason of the
happening of any contingency) is at the time directly or indirectly owned or controlled by
the Borrower or one or more of the Subsidiaries or by the Borrower and one or more of the
Subsidiaries.




     “Subsidiary Security Agreement” means collectively, those certain Fourth
Amended and Restated Subsidiary Security Agreements dated as of the date hereof executed by
the Guarantors in favor of the Agent for the benefit of the Lenders, in form



18









 







and substance satisfactory to the Agent and the Lenders, as the same may be amended,
restated, supplemented, or modified from time to time.




     “Swing Commitment” means an amount (subject to reduction or cancellation as
herein provided) equal to $10,000,000.




     “Swing Lender” means Wells Fargo Bank, National Association.




     “Swing Loan” means the swing loan made or to be made hereunder to the Borrower
pursuant to Section 2.8.




     “Swing Loan Advance” means an Advance under the Swing Loan.




     “Swing Note” means the promissory note of the Borrower payable to the order of
the Swing Lender in the principal amount of the Swing Commitment in substantially the form
of Exhibit C hereto, and all extensions, renewals, and modifications thereof.




     “Syndication Agent” has the meaning set forth in the introductory paragraph of
this Agreement.




     “Target” means a Person that is the subject of a Permitted Acquisition,
including but not limited to Alpha Corporation.




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




     “Term Loan” means the term loan made or to be made hereunder to Borrower
pursuant to Section 2.2.




     “Term Loan Commitment” means, as to each Lender, the obligation of such Lender
to make the Term Loan as described in Section 2.2 hereunder in the principal amount
up to but not exceeding the amount set forth opposite the name of such Lender on
Schedule 1.1(a) hereto under the heading “Term Loan Commitment.” As of the date
hereof, the aggregate amount of the Term Loan Commitments of all Lenders equals $40,000,000.




     “Term Notes” means the promissory notes of the Borrower payable to the order of
the Lenders in the aggregate principal amount of the Term Loan, in substantially the form of
Exhibit B hereto, and all extensions, renewals, and modifications thereof.




     “Term Loan Termination Date” means 10:00 a.m. (Austin, Texas time) on December
31, 2012 or such earlier date and time as provided in this Agreement.




     “Total Leverage Ratio” means, as of any Fiscal Quarter end, the ratio of (a)
Funded Debt to (b) EBITDA, in each case for such Fiscal Quarter and the prior three Fiscal
Quarters.




     “Trademark Security Agreement” means those certain Security Interest Assignment
of Trademarks dated as of March 31, 2000, October 13, 2006, and December



19









 







31, 2008, executed
by the Borrower in favor of the Agent for the benefit of the Lenders, in form and substance
satisfactory to the Agent and the Lenders, as the same may be amended, restated,
supplemented or modified from time to time.




     “Type” means any type of Advance (i.e., Base Rate Advance or Eurodollar
Advance).




     “UCC” means the Uniform Commercial Code as in effect in the State of Texas from
time to time.




     “Waiver” is defined in Section 8.12.



     Section 1.2 Other Definitional Provisions. The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined. Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The
words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without
limitation.” The word “will” shall be construed to have the same meaning and effect as the word
“shall.” Unless the context requires otherwise (a) any definition of or reference to any
agreement, instrument or other document herein shall be construed as referring to such agreement,
instrument or other document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications set forth herein),
(b) any reference herein to any Person shall be construed to include such Person’s successors and
assigns, (c) the words “herein,” “hereof” and “hereunder,” and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to any particular provision hereof,
(d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer
to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference to
any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as
amended, modified or supplemented from time to time and (f) the words “asset” and “property” shall
be construed to have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, securities, accounts and contract rights. All
accounting terms not specifically defined herein shall be construed in accordance with GAAP. Terms
used herein that are defined in the UCC, unless otherwise defined herein, shall have the meanings
specified in the UCC. In the event of any changes in accounting principles required by GAAP or
recommended by the Borrower’s certified public accountants and implemented by the Borrower occur
and such changes result in a change in the method of the calculation of financial covenants,
standards, or terms under this Agreement, then the Borrower, the Agent, and the Lenders agree to
enter into negotiations in order to amend such provisions of this Agreement so as to equitably
reflect such changes with the desired result that the criteria for evaluating such covenants,
standards, or terms shall be the same after such changes as if such changes had not been made.
Until such time as such an amendment shall have been executed and delivered by the Agent, the
Borrower and the Required Lenders, all financial covenants, standards, and terms in this Agreement
shall continue to be calculated or construed as if such changes had not occurred.



     Section 1.3 Consolidation of Variable Interest Entities. All references herein to
consolidated financial statements of the Borrower and the Subsidiaries or to the determination of
any amount for the Borrower and its Subsidiaries on a consolidated basis or any similar
reference shall, in each case, be deemed to include each variable interest entity that the Borrower
is required to consolidate pursuant to FASB Interpretation No. 46 — Consolidation of Variable



20









 







Interest Entities: an interpretation of ARB No. 51 (January 2003), as if such variable interest
entity were a Subsidiary as defined herein, but each such variable interest entity shall not be
considered a Subsidiary for any other purpose hereunder.



ARTICLE II




Revolving Credit Loan, Term Loan, and Swing Loan




     Section 2.1 Revolving Credit Commitments. Subject to the terms and conditions of this
Agreement, each Lender severally agrees to make one or more Revolving Credit Loan Advances to the
Borrower from time to time from the date hereof to but excluding the Revolving Credit Termination
Date in an aggregate principal amount at any time outstanding up to but not exceeding the amount of
such Lender’s Revolving Credit Commitment as then in effect, provided that the aggregate amount of
all Revolving Credit Loan Advances at any time outstanding shall not exceed (a) the Revolving
Credit Commitments, minus (b) the sum of the outstanding Swing Loan Advances and the Letter of
Credit Liabilities. Subject to the foregoing limitations, and the other terms and provisions of
this Agreement, the Borrower may borrow, repay, and reborrow hereunder the amount of the Revolving
Credit Commitments by means of Base Rate Advances and Eurodollar Advances and, until the Revolving
Credit Termination Date, the Borrower may Convert Revolving Credit Loan Advances of one Type into
Revolving Credit Loan Advances of another Type. Revolving Credit Loan Advances of each Type made
by each Lender shall be made and maintained at such Lender’s Applicable Lending Office for Advances
of such Type.



     Section 2.2 Term Loan Commitment. Subject to the terms and conditions of this
Agreement, each Lender severally agrees to extend a term loan to the Borrower on the date hereof in
an aggregate principal amount up to but not exceeding the amount of such Lender’s Term Loan
Commitment. Such Term Loan shall be made by way of a single Advance made on the date hereof. Any
portion of each Lender’s Term Loan Commitment not utilized by such Advance on such date shall be
permanently cancelled. Amounts advanced and repaid under the Term Loan may not be reborrowed. The
Term Loan made by each Lender shall be made and maintained at such Lender’s Applicable Lending
Office.



     Section 2.3 Notes. The obligation of the Borrower to repay each Lender for Revolving
Credit Loan Advances made by such Lender and interest thereon shall be evidenced by a Revolving
Credit Note executed by the Borrower, payable to the order of such Lender, in the principal amount
of such Lender’s Revolving Credit Commitment dated the date hereof. The obligation of the Borrower
to repay each Lender for the Term Loan made by such Lender and interest thereon shall be evidenced
by a Term Note executed by the Borrower, payable to the order of such Lender, in the principal
amount of such Lender’s Term Loan Commitment dated the date hereof.



     Section 2.4 Repayment of Loans.




     (a) The Borrower shall repay the outstanding principal amount of the Revolving Credit
Loan and the Swing Loan on the Revolving Credit Termination Date.




     (b) To the extent not otherwise required to be paid earlier as provided herein, the
Borrower shall repay the aggregate principal amount of the Term Loan on each Quarterly
Payment Date in installments in the principal amount of $2,500,000 (less any



21









 







amounts applied
to such installments as permitted pursuant to Sections 4.2 or 4.3), with
final payment of the remaining principal balance on the Term Loan due on the Term Loan
Termination Date.



     Section 2.5 Interest. The unpaid principal amount of the Loans shall bear interest at
a varying rate per annum equal from day to day to the lesser of (a) the Maximum Rate or (b) the
Applicable Rate. If at any time the Applicable Rate for any Advance shall exceed the Maximum Rate,
thereby causing the interest accruing on such Advance to be limited to the Maximum Rate, then any
subsequent reduction in the Applicable Rate for such Advance shall not reduce the rate of interest
on such Advance below the Maximum Rate until the aggregate amount of interest accrued on such
Advance equals the aggregate amount of interest which would have accrued on such Advance if the
Applicable Rate had at all times been in effect. Accrued and unpaid interest on the Loans shall be
due and payable as follows:




     (a) in the case of all Base Rate Advances, on each Monthly Payment Date;




     (b) in the case of all Eurodollar Advances, on the last day of the Interest Period with
respect thereto and, in the case of an Interest Period with a duration greater than three
months, at three-month intervals after the first day of such Interest Period;




     (c) upon the payment or prepayment of any Eurodollar Advance or the Conversion of any
Eurodollar Advance to an Advance of another Type (but only on the principal amount so paid,
prepaid, or Converted);




     (d) with respect to Revolving Credit Loan Advances and Swing Loan Advances, on the
Revolving Credit Termination Date; and




     (e) with respect to the Term Loan, on the Term Loan Termination Date.



     Notwithstanding the foregoing, upon the occurrence and during the continuance of an Event of
Default, the outstanding principal amounts of all Advances and (to the fullest extent permitted by
law) any other amounts payable by the Borrower under any Loan Document shall bear interest at the
Default Rate at the Required Lenders’ option beginning upon the occurrence of such Event of Default
or such later date as selected by the Required Lenders. Interest payable at the Default Rate shall
be payable from time to time on demand.



     Section 2.6 Revolving Credit Loan Borrowing Procedure. The Borrower shall give the
Agent notice by means of an Advance Request Form of each requested Revolving Credit Loan Advance at
least one Business Day before the requested date of each Base Rate Advance, and at least three
Business Days before the requested date of each Eurodollar Advance, specifying: (a) the requested
date of such Revolving Credit Loan Advance (which shall be a Business Day), (b) the amount of such
Revolving Credit Loan Advance, (c) the Type of Revolving Credit Loan Advance, and (d) in the case
of a Eurodollar Advance, the duration of the Interest Period for such Revolving Credit Loan
Advance. Each Eurodollar Advance under the Revolving Credit Loan shall be in a minimum principal
amount of $1,000,000 or a whole multiple of $500,000 in excess thereof. Each Base Rate Advance
under the Revolving Credit Loan shall be in a minimum principal amount of $500,000 or a whole multiple of $100,000 in
excess thereof. The Agent shall notify each Lender of the contents of each such notice promptly.
Not later than 1:00 p.m. (Austin, Texas time) on the date specified for each Revolving Credit



22









 







 Loan
Advance hereunder, each Lender will make available to the Agent at the Principal Office in
immediately available funds, for the account of the Borrower, its pro rata share of each Revolving
Credit Loan Advance. After the Agent’s receipt of such funds and subject to the other terms and
conditions of this Agreement, the Agent will make each Revolving Credit Loan Advance available to
the Borrower by depositing the same, in immediately available funds, in an account of the Borrower
(designated by the Borrower) maintained with the Agent at the Principal Office. All notices by the
Borrower under this Section shall be irrevocable and shall be given not later than 11:00 a.m.
(Austin, Texas time) on the day which is not less than the number of Business Days specified above
for such notice.



     Section 2.7 Conversions and Continuations. The Borrower shall have the right from
time to time to Convert all or part of an Advance of one Type into an Advance of another Type or to
Continue Eurodollar Advances as Eurodollar Advances by giving the Agent written notice at least one
Business Day before Conversion into a Base Rate Advance, and at least three Business Days before
Conversion into or Continuation of a Eurodollar Advance, specifying: (a) the Conversion or
Continuation date, (b) the amount of the Advance to be Converted or Continued, (c) in the case of
Conversions, the Type of Advance to be Converted into, and (d) in the case of a Continuation of or
Conversion into a Eurodollar Advance, the duration of the Interest Period applicable thereto;
provided that (i) Eurodollar Advances may only be Converted on the last day of the Interest Period,
(ii) except for Conversions into Base Rate Advances, no Conversions shall be made while a Default
has occurred and is continuing, and (iii) no more than five Interest Periods shall be in effect at
the same time. The Agent shall notify each Lender of the contents of each such notice promptly and
in any event not later than one Business Day after receipt thereof. All notices by the Borrower
under this Section shall be irrevocable and shall be given not later than 11:00 a.m. (Austin, Texas
time) on the day which is not less than the number of Business Days specified above for such
notice. If the Borrower shall fail to give the Agent the notice as specified above for
Continuation or Conversion of a Eurodollar Advance prior to the end of the Interest Period with
respect thereto, such Eurodollar Advance shall be Converted automatically into a Base Rate Advance
on the last day of the then current Interest Period for such Eurodollar Advance.



     Section 2.8 Swing Loans.




     (a) Making Swing Loans; Interest Rate. For the convenience of the parties and
as an integral part of the transactions contemplated by the Loan Documents, the Swing
Lender, solely for its own account, agrees, on the terms and conditions hereinafter set
forth, to make Swing Loans to the Borrower (which the Borrower may repay and reborrow from
time to time in accordance with the terms and provisions hereof) from time to time on any
Business Day during the period from the date hereof to but excluding the Revolving Credit
Termination Date in an aggregate principal amount at any one time outstanding which shall
not exceed the Swing Commitment; provided that, the Swing Lender shall not be obligated to
make any Swing Loan (i) which when added to the then outstanding Revolving Credit Loan
Advances plus the outstanding Letter of Credit Liabilities plus the outstanding Swing Loan
Advances would exceed the Revolving Credit Commitments, and (ii) at any time after any
Lender has refused to purchase a
participation in any Swing Loan as provided in Section 2.8(d). All Swing Loans
shall bear interest at the lesser of (A) the Maximum Rate and (B) the Applicable Rate for
Base Rate Advances (subject to Section 2.5) and shall be included within the Primary



23









 







Obligations hereunder. Each Swing Loan shall be subject to all the terms and conditions
applicable to the Revolving Credit Loan; provided that, (i) there shall be no minimum Swing
Loan Advance amount or repayment for a Swing Loan except as provided in Section
2.8(c), and (ii) each Swing Loan shall be available and may be prepaid on same day
telephonic notice to be followed promptly with an Advance Request Form (except for
telephonic notices of prepayment) from the Borrower to the Swing Lender, so long as such
notice is received by the Swing Lender prior to 11:00 a.m. (Austin, Texas time).




     (b) Swing Note. The Swing Loan Advances made by the Swing Lender shall be
evidenced by a single promissory note of the Borrower in substantially the form of
Exhibit C hereto, payable to the order of the Swing Lender in a principal amount
equal to the Swing Commitment as originally in effect and otherwise duly completed.




     (c) Repayment of Swing Loan Advances. Upon the earlier to occur of (i) the
date 10 Business Days after each Swing Loan Advance, and (ii) demand by the Swing Lender,
the Borrower shall promptly borrow Revolving Credit Loan Advances from the Lenders, pursuant
to Section 2.1 hereof and apply the proceeds of such Revolving Credit Loan Advances
to the repayment of such Swing Loan Advance then due.




     (d) Participation of Lenders. In the event the Borrower shall fail to repay
when due any Swing Loan Advance, each Lender with a Revolving Credit Commitment shall
irrevocably and unconditionally purchase from the Swing Lender an SL Participation in such
Swing Loan Advance in lawful money of the United States and in the same day funds, in an
amount equal to such Lender’s pro rata share (based on the Revolving Credit Commitments) of
the principal amount of such Swing Loan Advances then due. If such amount is not in fact
made available to the Swing Lender by any Lender with a Revolving Credit Commitment, the
Swing Lender shall be entitled to recover such amount on demand from such Lender together
with accrued interest thereon, for each day from the date of demand therefor, if made prior
to 1:00 p.m. (Austin, Texas time) on any Business Day, or, if made at any other time, from
the next Business Day following the date of such demand, until the date such amount is paid
to the Swing Lender by such Lender at the Federal Funds Rate. If such Lender does not pay
such amount forthwith upon the Swing Lender’s demand therefor, and until such time as such
Lender makes the required payment, the Swing Lender shall be deemed to continue to have
outstanding a Swing Loan in the amount of such unpaid participation obligation for all
purposes under the Loan Documents other than those provisions requiring the other Lenders
with a Revolving Credit Commitment to purchase a participation therein. Thereafter, each
payment of all or any part of the Primary Obligations evidenced by the Swing Note shall be
paid to the Swing Lender for the ratable benefit of the Swing Lender and the Lenders who are
participants in the Swing Loan; provided that, with respect to any participation hereunder,
all interest accruing on the Swing Loan (or any portion thereof) to which such participation
relates prior to the date of purchase of any participation hereunder shall be payable solely
to the Swing Lender for its own account.



     Section 2.9 Use of Proceeds. The proceeds of Advances shall be used by the Borrower
(a) for working capital in the ordinary course of business and other general corporate purposes and
(b) to finance Permitted Acquisitions.



24









 





     Section 2.10 Fees. (a) On or prior to each December 31 during the term hereof,
beginning as of the date hereof, the Borrower agrees to pay to the Agent for the account of the
Agent an annual agent fee in an amount to be agreed to by the Borrower and the Agent pursuant to a
side letter agreement, and (b) the Borrower agrees to pay to the Agent for the account of each
Lender a “Commitment Fee” (herein so called) on the average daily unused amount of such Lender’s
Revolving Credit Commitment for the period from and including the date of this Agreement to and
including the Revolving Credit Termination Date at the Commitment Fee Rate, based on a 360 day year
and the actual number of days elapsed. The accrued Commitment Fee shall be payable in arrears on
each Quarterly Payment Date and on the Revolving Credit Termination Date. For the purpose of
calculating the Commitment Fee hereunder, the Revolving Credit Commitments shall be deemed utilized
by the amount of all Revolving Credit Loan Advances and all Letter of Credit Liabilities and
without giving effect to any Swing Loan Advances or SL Participations.



     Section 2.11 Determination of Eurodollar Margin, Base Rate Margin, and Commitment Fee
Rate. The Eurodollar Margin, Base Rate Margin and Commitment Fee Rate shall be defined and
determined as follows:




     “Base Rate Margin” means (i) during the period commencing on the date hereof
and ending on but not including the first Adjustment Date (defined below), 0.50% per annum,
and (ii) during each period, from and including one Adjustment Date to but excluding the
next Adjustment Date (herein a “Calculation Period”), the percent per annum set
forth in the table below in this Section 2.11 under the heading “Base Rate
Margin” opposite the Total Leverage Ratio calculated for the completed four Fiscal
Quarters which immediately preceded the beginning of the applicable Calculation Period.




     “Commitment Fee Rate” means (i) during the period commencing on the date hereof
and ending on but not including the first Adjustment Date, 0.25% per annum, and (ii) during
each Calculation Period, the percent per annum set forth in the table below in this
Section 2.11 under the heading “Commitment Fee Rate” opposite the Total
Leverage Ratio calculated for the completed four Fiscal Quarters which immediately preceded
the beginning of the applicable Calculation Period.




     “Eurodollar Margin” means (i) during the period commencing on the date hereof
and ending on but not including the first Adjustment Date, 2.50% per annum, and (ii) during
each Calculation Period, the percent per annum set forth in the table below in this
Section 2.11 under the heading “Eurodollar Margin” opposite the Total
Leverage Ratio calculated for the completed four Fiscal Quarters which immediately preceded
the beginning of the applicable Calculation Period.



25









 





	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Leverage Ratio	 	Eurodollar Margin	 	Base Rate Margin	 	Commitment Fee Rate
	Less than 1.00:1.00
	 	 	1.75	%	 	 	0.00	%	 	 	0.25	%
	Less than 1.50:1.00, but greater
than or equal to 1.00:1.00
	 	 	2.00	%	 	 	0.00	%	 	 	0.25	%
	Less than 2.00:1.00, but greater
than or equal to 1.50:1.00
	 	 	2.25	%	 	 	0.25	%	 	 	0.25	%
	Greater than or equal to 2.00:1.00
	 	 	2.50	%	 	 	0.50	%	 	 	0.30	%







     Upon delivery of the Compliance Certificate pursuant to Section 8.1(c) in
connection with the financial statements required to be delivered pursuant to Section
8.1(b) at the end of each Fiscal Quarter commencing with such Compliance Certificate
delivered with respect to the Fiscal Quarter ending June 30, 2009 the Eurodollar Margin, the
Base Rate Margin and the Commitment Fee Rate shall automatically be adjusted as set forth in
the table above, such automatic adjustment to take effect as of the first Business Day after
the receipt by the Agent of the related Compliance Certificate (each such Business Day when
the Eurodollar Margin, the Base Rate Margin or the Commitment Fee Rate is adjusted pursuant
to this sentence or below, herein an “Adjustment Date”). If the Borrower fails to
deliver such Compliance Certificate which so sets forth the Total Leverage Ratio within the
period of time required by Section 8.1(c), the Eurodollar Margin, the Base Rate
Margin and the Commitment Fee Rate shall automatically be adjusted to the highest applicable
percentage set forth in the grid above, such automatic adjustment to take effect as of the
first Business Day after the last day on which the Borrower was required to deliver the
applicable Compliance Certificate in accordance with Section 8.1(c) and to remain in
effect until subsequently adjusted in accordance herewith upon the delivery of a Compliance
Certificate.




     If, as a result of any restatement of or other adjustment to the financial statements
of the Borrower or for any other reason, the Borrower or the Lenders determine that (i) the
Total Leverage Ratio as calculated by the Borrower as of any applicable date was inaccurate
and (ii) a proper calculation of the Total Leverage Ratio would have resulted in higher
pricing for such period, the Borrower shall promptly and retroactively be obligated to pay
to the Agent for the account of the applicable Lenders, promptly on demand by the Agent (or,
after the occurrence of an actual or deemed entry of an order for relief with respect to the
Borrower under the Bankruptcy Code of the United States, automatically and without further
action by the Agent, any Lender or the Issuing Bank), an amount equal to the excess of the
amount of interest and fees that should have been paid for such period over the amount of
interest and fees actually paid for such period. This paragraph shall not limit the rights
of the Agent, any Lender or the Issuing Bank, as the case may be, under Sections 2.5,
2.8(a), 2.10, 3.3 or 3.5 or under Article XI. The Borrower’s
obligations under this paragraph shall survive for a period of six (6) months after the
termination of the Commitments and the repayment of all other Obligations hereunder.



     Section 2.12 Reduction or Termination of Revolving Credit Commitments.




     (a) Optional. The Borrower shall have the right to terminate in whole or
reduce in part the unused portion of the Revolving Credit Commitments (including the



26









 







Swing Commitment) upon at least three Business Days prior notice (which notice shall be
irrevocable) to the Agent and each Lender specifying the effective date thereof, whether a
termination or reduction is being made, and the amount of any partial reduction, provided
that each partial reduction shall be in the amount of $5,000,000 (or in the case of the
Swing Commitment, $1,000,000) or an integral multiple thereof and the Revolving Credit
Commitments (other than the Swing Commitment) shall not be reduced below the outstanding
Letter of Credit Liabilities, and the Borrower shall simultaneously prepay the amount by
which the unpaid principal amount of the Revolving Credit Loan Advances, the Swing Loan
Advances and outstanding Letter of Credit Liabilities exceeds the Revolving Credit
Commitments (after giving effect to such notice) plus accrued and unpaid interest on the
principal amount so prepaid. The Revolving Credit Commitments may not be reinstated after
they have been terminated or reduced. In addition the Swing Commitment may never be more
than the Revolving Credit Commitments (exclusive of the amount of the Swing Commitment).




     (b) Mandatory. Upon the occurrence of any event requiring a mandatory
prepayment under Section 4.3(c), (i) the Revolving Credit Commitments shall
automatically reduce by the amount equal to 100% of the Net Proceeds from the sale of
assets occurring on such date to the extent such amount exceeds either (A) $2,000,000 per
Disposition or (B) $6,000,000 in the aggregate for all Dispositions which have occurred
since the date hereof, and (ii) the Borrower shall simultaneously prepay the amount by which
the unpaid principal amount of the Advances plus the Letter of Credit Liabilities exceeds
the Revolving Credit Commitments (after giving effect to such reduction) plus accrued and
unpaid interest on the principal amount so prepaid.



     Section 2.13 Increase in Revolving Credit Commitments.




     (a) Request for Increase. So long as (i) no Default has occurred and is
continuing, and (ii) the Borrower has not otherwise terminated or reduced in part any unused
portion of the aggregate Revolving Credit Commitments at any time pursuant to Section
2.12, the Borrower may by notice to the Agent, request, not more than two (2) times, an
increase in the amount of the aggregate Revolving Credit Commitments within the limitations
hereafter described, which notices shall set forth the amount of such increase. In
accordance with Section 2.13(d), the amount of the aggregate Revolving Credit
Commitments may be so increased either by having one or more New Lenders that have been
approved by the Borrower become Lenders and/or by having any one or more of the then
existing Lenders (at their respective election in their sole discretion) increase the amount
of their Revolving Credit Commitments (“Increasing Lenders”), provided that (i) the
Revolving Credit Commitment of any New Lender shall not be less than $5,000,000 and the sum
of the Revolving Credit Commitments of the New Lenders and the increases in the Revolving
Credit Commitments of the Increasing Lenders shall be in an aggregate amount of not less
than $10,000,000 (and, if in excess thereof, in integral multiples of $1,000,000); (ii) the
aggregate amount of all the increases in the Revolving Credit Commitments pursuant to this
Section 2.13 shall not exceed $30,000,000 and the aggregate Revolving Credit
Commitments shall not exceed $110,000,000; (iii) the Borrower, each New Lender and/or each
Increasing Lender shall have executed and delivered to the Agent a commitment and acceptance
(the “Commitment and Acceptance”) substantially in the form of Exhibit G
hereto, and the Agent shall have



27









 







accepted and executed the same, (iv) the Borrower shall have executed and delivered to
the Agent a Revolving Credit Note or Revolving Credit Notes payable to the order of each New
Lender and/or each Increasing Lender, each such Revolving Credit Note to be in the amount of
such New Lender’s Revolving Credit Commitment or such Increasing Lender’s Revolving Credit
Commitment (as applicable); (v) if requested by the Agent, the Borrower shall have delivered
to the Agent opinions of Borrower’s in-house counsel (substantially similar to the forms of
opinions provided for in Section 6.1(l), modified to apply to the increase in the
Revolving Credit Commitments and each new Revolving Credit Note and Commitment and
Acceptance executed and delivered in connection therewith); (vi) the Guarantors shall have
consented in writing to the new Revolving Credit Commitments or increases in Revolving
Credit Commitments (as applicable) and shall have agreed that their Guaranty and the
Subsidiary Security Agreement continues in full force and effect, and (vii) the Borrower,
each New Lender and/or each Increasing Lender shall otherwise have executed and delivered
such other instruments and documents as the Agent shall have reasonably requested in
connection with such new Revolving Credit Commitment or increase in the Revolving Credit
Commitment (as applicable). The form and substance of the documents required under
clauses (iii) through (vii) above shall be reasonably acceptable to the
Agent. The Agent shall provide written notice to all of the Lenders hereunder of the
admission of any New Lender or the increase in the Revolving Credit Commitment of any
Increasing Lender hereunder and shall furnish to each of the Lenders copies of the documents
required under clause (iii), (v), (vi) and (vii) above.




     (b) Payments Related to Increase. Upon the effective date of any increase in
the aggregate Revolving Credit Commitments pursuant to the provisions hereof (such date
hereinafter referred to as the “Increase Date”), which Increase Date shall be
mutually agreed upon by the Borrower, each New Lender, each Increasing Lender and the Agent,
each New Lender and/or Increasing Lender shall make a payment to the Agent in an amount
sufficient, upon the application of such payments by all New Lenders and Increasing Lenders
to the reduction of the outstanding Revolving Credit Loans held by the Lenders (including
the Increasing Lenders) to cause the principal amount outstanding under the Revolving Credit
Loans made by each Lender to be equal to each Lender’s Applicable Percentage of the
Revolving Credit Commitments as so increased as described herein. The Borrower hereby
irrevocably authorizes each New Lender and/or each Increasing Lender to fund to the Agent
the payment required to be made pursuant to the immediately preceding sentence for
application to the reduction of the outstanding Revolving Credit Loans held by the other
Lenders, and each such payment shall constitute a Revolving Credit Loan hereunder. If, as a
result of the repayment of the Revolving Credit Loans provided for in this Section
2.13(b), any payment of a Eurodollar Advance occurs on a day which is not the last day
of the applicable Interest Period, the Borrower will pay to the Agent for the benefit of any
of the Lenders (including any Increasing Lender to the extent of Eurodollar Advances held by
such Increasing Lender prior to such Increase Date) holding a Eurodollar Advance any loss or
cost incurred by such Lender resulting therefrom in accordance with Section 5.5.
Upon the Increase Date, all Revolving Credit Loans outstanding hereunder (including any
Revolving Credit Loans made by the New Lenders and/or Increasing Lenders on the Increase
Date) shall be Base Rate Advances, subject to the Borrower’s right to Convert the same to
Eurodollar Advances on or after such date in accordance with the provisions of Section
2.7.



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     (c) Participations in Letters of Credit and Swing Loans. Upon the Increase
Date and the making of the Revolving Credit Loans by the New Lenders and/or Increasing
Lenders in accordance with the provisions of Section 2.13(b), each New Lender and/or
each Increasing Lender shall also be deemed to have irrevocably and unconditionally
purchased and received without recourse or warranty, from the Lenders immediately prior to
the Increase Date, an undivided interest and participation in any Letter of Credit and Swing
Loan, as applicable, then outstanding, ratably, such that each Lender (including each New
Lender) with Revolving Credit Commitments holds a participation interest in each such Letter
of Credit and Swing Loan, as applicable, in proportion to such Lender’s Applicable
Percentage of the Revolving Credit Commitments as so increased.




     (d) Lender Elections to Increase. Upon the notice by the Borrower to the Agent
pursuant to Section 2.13(a) hereof, each of the then existing Lenders shall have the
right (at such Lender’s election) to increase its Revolving Credit Commitment by an amount
equal to such Lender’s Applicable Percentage of the proposed increase in the aggregate
Revolving Credit Commitments. If less than all of the proposed increase in aggregate
Revolving Credit Commitments is elected by the existing Lenders, then any of the then
existing Lenders shall have the right to increase its Revolving Credit Commitment in an
amount greater than such Lender’s Applicable Percentage of the proposed increase in the
aggregate Revolving Credit Commitments with the Agent’s approval. If the entire amount of
the proposed increase in aggregate Revolving Credit Commitments is still not obtained, the
Borrower may with the Agent’s cooperation add New Lenders, such New Lenders to be reasonably
acceptable to the Agent, with new Revolving Credit Commitments which when added to the
increase in Revolving Credit Commitments of the Increasing Lenders, shall equal the
requested increase in the aggregate Revolving Credit Commitments. In the event the sum of
each New Lender’s Revolving Credit Commitment and the increase in each Increasing Lender’s
Revolving Credit Commitment is less than the requested increase in the aggregate Revolving
Credit Commitments, the Borrower may elect to accept the increase in the aggregate Revolving
Credit Commitments to be equal to such lesser amount. Notwithstanding anything to the
contrary, Agent shall not be liable for any failure to obtain Increasing Lenders or New
Lenders hereunder or any failure to increase the aggregate Revolving Credit Commitments by
the amount so requested by the Borrower pursuant to Section 2.13(a).




     (e) No Commitment to Increase. Nothing contained herein shall constitute, or
otherwise be deemed to be a commitment or agreement on the part of any Lender to increase
its Revolving Credit Commitment hereunder at any time. No Lender (except only for itself)
shall have the right to decline Borrower’s request pursuant to Section 2.13(a) for
an increase in the aggregate Revolving Credit Commitments.




     (f) Conflicting Provisions. This Section shall supersede any provisions in
Section 13.9 to the contrary.



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ARTICLE III




Letters of Credit




     Section 3.1 Letters of Credit.




     (a) Subject to the terms and conditions of this Agreement, the Issuing Bank agrees to
issue one or more Letters of Credit for the account of the Borrower or any Guarantor from
time to time from the date hereof to but excluding the date 30 days prior to the Revolving
Credit Termination Date; provided, however, that the outstanding Letter of Credit
Liabilities shall not at any time exceed the lesser of (i) $5,000,000, and (ii) an amount
equal to (A) the aggregate Revolving Credit Commitments, minus (B) the sum of the
outstanding Revolving Credit Loan Advances and Swing Loan Advances. Each Letter of Credit
shall have an expiration date not beyond five Business Days prior to the Revolving Credit
Termination Date, shall be payable in Dollars, must support a transaction that is entered
into in the ordinary course of the Borrower’s business, must be satisfactory in form and
substance to the Issuing Bank, and shall be issued pursuant to such documents and
instruments (including, without limitation, the Issuing Bank’s standard application for
issuance of letters of credit as then in effect) as the Issuing Bank may require. No Letter
of Credit shall require any payment by the Issuing Bank to the beneficiary thereunder
pursuant to a drawing prior to the third Business Day following presentment of a draft and
any related documents to the Issuing Bank.




     (b) By the issuance of each Letter of Credit and without any further action on the part
of the Issuing Bank or any of the Lenders in respect thereof, the Issuing Bank hereby grants
to each Lender and each Lender hereby agrees to acquire from the Issuing Bank a
participation in each Letter of Credit and the related Letter of Credit Liabilities,
effective upon the issuance thereof without recourse or warranty, equal to such Lender’s pro
rata share (based on the Revolving Credit Commitments) of such Letter of Credit and Letter
of Credit Liabilities. In furtherance of the foregoing, each Lender hereby absolutely and
unconditionally agrees to pay to the Issuing Bank, as and when required by Section
3.4, such Lender’s pro rata share of each Letter of Credit Disbursement. Each Lender
acknowledges and agrees that its obligation to acquire participations pursuant to this
Section 3.1(b) in respect of each Letter of Credit is absolute and unconditional and
shall not be affected by any circumstance whatsoever, including without limitation the
occurrence and continuance of any Default, and that each such payment shall be made without
any offset, abatement, withholding, or reduction whatsoever. This agreement to grant and
acquire participations is an agreement between the Issuing Bank and the Lenders, and neither
the Borrower nor any beneficiary of a Letter of Credit shall be entitled to rely thereon.
The Borrower agrees that each Lender purchasing a participation from the Issuing Bank
pursuant to this Section 3.1(b) may exercise all its rights to payment against the
Borrower including the right of setoff, with respect to such participation as fully as if
such Lender were the direct creditor of the Borrower in the amount of such participation.




     (c) The Issuing Bank agrees with each Lender that it shall transfer to such Lender,
without any offset, abatement, withholding, or reduction whatsoever, such Lender’s
proportionate share of any payment of a reimbursement obligation of the
Borrower with respect to a Letter of Credit Disbursement, including interest payments



30









 







made to the Issuing Bank on such Letter of Credit Disbursement, based on the proportion that
the payment made by such Lender to the Issuing Bank in respect of the principal amount of
such Letter of Credit Disbursement bears to the outstanding principal amount of such Letter
of Credit Disbursement.



     Section 3.2 Procedure for Issuing Letters of Credit. Each Letter of Credit shall be
issued on at least three Business Days prior notice from the Borrower to the Issuing Bank by means
of a Letter of Credit Request Form describing the transaction proposed to be supported thereby and
specifying (a) the date on which such Letter of Credit is to be issued (which shall be a Business
Day) and the face amount thereof, (b) the name and address of the beneficiary, (c) whether such
Letter of Credit shall permit a single drawing or multiple drawings, (d) the conditions permitting
the drawing or drawings thereunder, (e) whether the draft thereunder shall be a sight or time draft
and, if the latter, the date when the draft shall be payable, (f) the form of the draft and any
other documents required to be presented at the time of any drawing (such notice to set forth the
exact wording of such documents or to attach copies thereof), and (g) the expiration date of such
Letter of Credit. Upon fulfillment of the applicable conditions precedent in Article VI,
the Issuing Bank shall make the applicable Letter of Credit available to the Borrower or, if so
requested by the Borrower, to the beneficiary of the Letter of Credit.



     Section 3.3 Presentment and Reimbursement. (a) Promptly upon receipt of any documents
purporting to represent a demand for payment under a Letter of Credit, the Issuing Bank shall give
notice to the Borrower of the receipt thereof, which notice may be telephonic to be followed by
written notice (which notice may be made by electronic mail or other electronic media) to the
Borrower’s general counsel and chief financial officer. If the Issuing Bank shall have determined
that a demand for payment under a Letter of Credit appears on its face to be in conformity with the
terms and conditions of such Letter of Credit, the Issuing Bank shall give notice to the Borrower,
which notice may be telephonic, of the receipt and amount of such drawing and the date on which
payment thereon will be made. If the Borrower shall not have discharged in full by 10:00 a.m.
(Austin, Texas time) on the date of such payment, its obligation to reimburse the Issuing Bank in
the amount of such drawing under such Letter of Credit, then the amount of such drawing for which
the Issuing Bank shall not have been reimbursed by the Borrower shall be paid by the Borrower to
the Issuing Bank or, to the extent the Issuing Bank shall have received payments with respect to
such drawing from the Lenders, to the Issuing Bank for the account of the Lenders, within three
Business Days after the date of such drawing (but in any event before the Revolving Credit
Termination Date), together with interest on such amount at the Default Rate from the date of
payment by the Issuing Bank to the beneficiary under the Letter of Credit (each such payment made
after 10:00 a.m. (Austin, Texas time) on such due date to be deemed to be made on the next
succeeding Business Day). The obligations of the Borrower under this Section 3.3 shall be
unconditional, absolute, and irrevocable in all respects.



     Section 3.4 Payment. If the Issuing Bank shall pay any draft presented under a Letter
of Credit issued by it and if the Borrower shall not have discharged in full its reimbursement
obligation by 10:00 a.m. (Austin, Texas time) on the date of such Letter of Credit Disbursement,
then the Issuing Bank shall as promptly as practicable give telephonic (which shall be promptly
confirmed in writing) or facsimile notice to each Lender of the date of such payment and the amount
of such payment and each Lender shall pay to the Issuing Bank, in immediately available funds, not
later than 3:00 p.m. (Austin, Texas time) on the date of such payment (or, if Issuing
Bank shall notify the Lenders of such payment after 11:00 a.m. (Austin, Texas time) then not



31









 







later than 12:00 p.m. (Austin, Texas time) on the next succeeding Business Day), an amount equal to
such Lender’s pro rata share of such drawing; provided that, if any Lender shall for any reason
fail to pay the Issuing Bank its pro rata share of the drawing on the date of such payment, the
Issuing Bank shall itself fund such Lender’s pro rata share while retaining the right to proceed
against such Lender for reimbursement therefor. In the event that the Issuing Bank shall fund a
Lender’s pro rata share of a drawing, the amount so funded shall bear interest at a rate per annum
equal to the Federal Funds Rate and shall be payable by such Lender when it reimburses the Issuing
Bank for funding its pro rata part (with interest to accrue from and including the date of such
funding to and excluding the date of reimbursement). In the event that a Lender, after notice,
pays its pro rata share of a drawing hereunder and such payment is not required to fund a Letter of
Credit Disbursement, the Issuing Bank shall return such payment to the Lender with interest
calculated at a rate per annum equal to the Federal Funds Rate (with interest to accrue from and
including the date of such funding to and excluding the date of return). The obligation of each
Lender to pay to the Issuing Bank such Lender’s pro rata part of any drawing under a Letter of
Credit shall be absolute and unconditional under any and all circumstances (including without
limitation the passage of the Revolving Credit Termination Date), and such obligations shall be
several and not joint.



     Section 3.5 Letter of Credit Fee. The Borrower shall pay to the Agent, for the
account of the Lenders, a nonrefundable letter of credit fee for each Letter of Credit payable in
arrears on each Quarterly Payment Date in an amount equal to the applicable Eurodollar Margin
multiplied by the undrawn amount of such Letter of Credit, based on a 360 day year and the actual
number of days in the stated term of such Letter of Credit. In addition, the Borrower shall pay to
the Issuing Bank, solely for its own account as issuer of Letters of Credit, nonrefundable
fronting, amendment, transfer, negotiation and other fees as determined in accordance with the
Issuing Bank’s then current fee policy.



     Section 3.6 Obligations Absolute. The obligations of the Borrower under this
Agreement and the other Loan Documents (including without limitation the obligation of the Borrower
to reimburse the Issuing Bank for draws under any Letter of Credit) shall be absolute,
unconditional, and irrevocable, and shall be performed strictly in accordance with the terms of
this Agreement and the other Loan Documents under all circumstances whatsoever, including without
limitation the following circumstances:




     (a) Any lack of validity or enforceability of any Letter of Credit or any other Loan
Document;




     (b) Any amendment or waiver of or any consent to departure from any Loan Document;




     (c) The existence of any claim, set-off, counterclaim, defense or other rights which
the Borrower, any Obligated Party, or any other Person may have at any time against any
beneficiary of any Letter of Credit, the Issuing Bank, any Lender, the Agent, or any other
Person, whether in connection with this Agreement or any other Loan Document or any
unrelated transaction;




     (d) Any statement, draft, or other document presented under any Letter of Credit
proving to be forged, fraudulent, invalid, or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect whatsoever;



32









 






     (e) Payment by the Issuing Bank under any Letter of Credit against presentation of a
draft or other document which does not comply with the terms of such Letter of Credit; or




     (f) Any other circumstance or happening whatsoever, whether or not similar to any of
the foregoing.



     Section 3.7 Limitation of Liability. The Borrower assumes all risks of the acts or
omissions of any beneficiary of any Letter of Credit with respect to its use of such Letter of
Credit. Neither the Issuing Bank, the Lenders, the Agent, nor any of their officers or directors
shall have any responsibility or liability to the Borrower or any other Person for: (a) the
failure of any draft to bear any reference or adequate reference to any Letter of Credit, or the
failure of any documents to accompany any draft at negotiation, or the failure of any Person to
surrender or to take up any Letter of Credit or to send documents apart from drafts as required by
the terms of any Letter of Credit, or the failure of any Person to note the amount of any
instrument on any Letter of Credit, each of which requirements, if contained in any Letter of
Credit itself, it is agreed may be waived by the Issuing Bank, (b) errors, omissions,
interruptions, or delays in transmission or delivery of any messages, (c) the validity,
sufficiency, or genuineness of any draft or other document, or any endorsement(s) thereon, even if
any such draft, document or endorsement should in fact prove to be in any and all respects invalid,
insufficient, fraudulent, or forged or any statement therein is untrue or inaccurate in any
respect, (d) the payment by the Issuing Bank to the beneficiary of any Letter of Credit against
presentation of any draft or other document that does not comply with the terms of the Letter of
Credit, or (e) any other circumstance whatsoever in making or failing to make any payment under a
Letter of Credit. The Borrower shall have a claim against the Issuing Bank, and the Issuing Bank
shall be liable to the Borrower, to the extent of any direct, but not consequential, damages
suffered by the Borrower which the Borrower proves in a final nonappealable judgment were caused by
(i) the Issuing Bank’s willful misconduct or gross negligence in determining whether documents
presented under any Letter of Credit complied with the terms thereof or (ii) the Issuing Bank’s
willful failure to pay under any Letter of Credit after presentation to it of documents strictly
complying with the terms and conditions of such Letter of Credit. The Issuing Bank may accept
documents that appear on their face to be in order, without responsibility for further
investigation, regardless of any notice or information to the contrary.



ARTICLE IV




Payments




     Section 4.1 Method of Payment. Except as provided in Article III, all
payments of principal, interest, and other amounts to be made by the Borrower under this Agreement
and the other Loan Documents shall be made to the Agent at the Payment Office for the account of
each Lender’s Applicable Lending Office in Dollars and in immediately available funds by credit to
Account Number 4518-151436, without setoff, deduction, or counterclaim, not later than 1:00 p.m.
(Austin, Texas time) on the date on which such payment shall become due (each such
payment made after such time on such due date to be deemed to have been made on the next
succeeding Business Day). The Borrower shall, at the time of making each such payment, specify to
the Agent the sums payable by the Borrower under this Agreement and the other Loan Documents to
which such payment is to be applied (and in the event that the Borrower fails to so specify, or if
an Event of Default has occurred and is continuing, the Agent may apply such



33









 







payment to the
Obligations in such order and manner as it may elect in its sole discretion, subject to Section
4.4 hereof). Each payment received by the Agent under this Agreement or any other Loan
Document for the account of a Lender shall be paid by the Agent to such Lender, in immediately
available funds, for the account of such Lender’s Applicable Lending Office within one Business Day
following receipt thereof. Whenever any payment under this Agreement or any other Loan Document
shall be stated to be due on a day that is not a Business Day, such payment may be made on the next
succeeding Business Day, and such extension of time shall in such case be included in the
computation of the payment of interest, the Commitment Fee and any other fees, as the case may be.



     Section 4.2 Voluntary Prepayment. The Borrower may, upon at least one Business Day
prior notice to the Agent in the case of Base Rate Advances (except as otherwise provided for under
Section 2.8(a) for Swing Loan Advances), and at least three Business Days prior notice to
the Agent in the case of Eurodollar Advances, voluntarily prepay the Advances in whole at any time
or from time to time in part without premium or penalty but with accrued interest to the date of
prepayment on the amount so prepaid, provided that (a) any prepayments of Eurodollar Advances, if
prepaid on other than the last day of the Interest Period for such Advances, shall be accompanied
by all additional amounts which may be required pursuant to Sections 5.1 and 5.5
and (b) each partial prepayment shall be in the principal amount of $500,000 or a whole multiple of
$100,000 in excess thereof. All notices under this Section shall be irrevocable and shall be given
not later than 11:00 a.m. (Austin, Texas time) on the day which is not less than the number of
Business Days specified above for such notice. Any such voluntary prepayments shall be applied as
the Borrower and the Agent may agree, but in the absence of such agreement, first to the Swing Loan
Advances, then to Letter of Credit Disbursements for which the Issuing Bank has not been reimbursed
by the Borrower, then to Base Rate Advances under the Revolving Credit Loan, then to Eurodollar
Advances under the Revolving Credit Loan, then to the remaining Letter of Credit Liabilities and
then to the Term Loan to be applied to the scheduled payments in inverse order of maturity. Any
prepayments hereunder shall be accompanied with accrued and unpaid interest on the amount prepaid
to the date of prepayment.



     Section 4.3 Mandatory Prepayments.




     (a) If at any time the amount equal to the sum of (i) the outstanding principal amount
of all Revolving Credit Loan Advances and the Swing Loan Advances, plus (ii) the Letter of
Credit Liabilities, exceeds the Revolving Credit Commitments, the Borrower shall promptly
prepay Revolving Credit Loan Advances, Swing Loan Advances and the Letter of Credit
Disbursements by the amount of the excess or, if no Revolving Credit Loan Advances, Swing
Loan Advances or Letter of Credit Disbursements are outstanding, the Borrower shall
immediately pledge to the Agent cash or Cash Equivalent Investments (subject to no other
Liens) in an amount equal to the excess as security for the Obligations. Any such mandatory
prepayments shall be applied first to the Term Loan, then to the Swing Loan Advances, then
to Letter of Credit Disbursements for which the Issuing Bank has not been reimbursed by the
Borrower,
then to Base Rate Advances under the Revolving Credit Loan, then to Eurodollar Advances
under the Revolving Credit Loan, and then to the remaining Letter of Credit Liabilities.
Any prepayments hereunder shall be accompanied with accrued and unpaid interest on the
amount prepaid to the date of prepayment.



34









 






     (b) After any reduction in the Revolving Credit Commitments pursuant to Section
2.12, the Borrower shall promptly prepay the outstanding Revolving Credit Loan Advances
and Swing Loan Advances by the amount which the sum of the outstanding principal amount of
the Advances under the Revolving Credit Loan and the Swing Loan plus the Letter of Credit
Liabilities exceeds the Revolving Credit Commitments, as reduced.




     (c) Upon the Disposition of any assets (other than Dispositions of equity interests or
Dispositions of assets permitted under Sections 9.8(a) and (d)), the
Borrower shall promptly prepay the Advances by an amount equal to the Net Proceeds of such
Disposition; provided however, with respect to any Dispositions permitted under Sections
9.8(b), (c) and (e), the Borrower shall promptly prepay the Advances by
an amount equal to the Net Proceeds of such Disposition to the extent such amount exceeds
either (i) $2,000,000 per Disposition or (ii) $6,000,000 in the aggregate for all
Dispositions which have occurred since the date hereof. Any such mandatory prepayments
shall be applied first to the Term Loan, then to the Swing Loan Advances, then to Letter of
Credit Disbursements for which the Issuing Bank has not been reimbursed by the Borrower,
then to the Base Rate Advances under the Revolving Credit Loan, then to Eurodollar Advances
under the Revolving Credit Loan, and then to the remaining Letter of Credit Liabilities.
Any prepayments hereunder shall be accompanied with accrued and unpaid interest on the
amount prepaid to the date of prepayment.



     Section 4.4 Pro Rata Treatment. Except to the extent otherwise provided herein: (a)
each Advance shall be made by the Lenders under Section 2.1, the Term Loan shall be made by
the Lenders under Section 2.2, each payment of the Commitment Fee under Section
2.10, each payment of the Letter of Credit fee under Section 3.5 (except as provided
therein) shall be made for the account of the Lenders, pro rata according to their respective
Commitments; (b) each termination or reduction of the Revolving Credit Commitments under
Section 2.12 shall be applied to the Revolving Credit Commitments of the Lenders, pro rata
according to the respective Revolving Credit Commitments; (c) the making, Conversion, and
Continuation of Advances of a particular Type (other than Conversions provided for by Section
5.4) shall be made pro rata among the Lenders holding Advances of such Type according to the
amounts of their respective Commitments; (d) each payment and prepayment of principal of or
interest on Advances by the Borrower or any Obligated Party of a particular Type of Loan shall be
made to the Agent for the account of the Lenders pro rata in accordance with the respective unpaid
principal amounts of such Advances of such Loan held by such Lenders; (e) any and all other monies
received by the Agent from any source other than pursuant to any of clauses (a) through
(d) hereinabove (including, without limitation, from the Borrower or any Guarantor) to be
applied first against the Primary Obligations and shall be for the pro rata benefit and account of
the Lenders based upon each Lender’s aggregate outstanding Advances of all Types and LC
Participations and SL Participations to the aggregate outstanding Advances of all Types and LC
Participations and SL Participations of all Lenders and then against the Secondary Obligations and
shall be for the pro rata benefit and account of the Lenders based upon their respective
unpaid amounts of the Secondary Obligations; and (f) the Lenders shall purchase from the
Issuing Bank and the Swing Lender pursuant to Section 3.1 and Section 2.8
respectively, participations in the Letters of Credit and the related Letter of Credit Liabilities
and the Swing Loans respectively, pro rata in accordance with their Revolving Credit Commitments.



35









 





     Section 4.5 Non-Receipt of Funds by the Agent.




     (a) Funding by Lenders; Presumption by Agent. Unless the Agent shall have
received notice from a Lender prior to the proposed date of any Advance that such Lender
will not make available to the Agent such Lender’s share of such Advance, the Agent may
assume that such Lender has made such share available on such date in accordance with
Section 2.6 and may, in reliance upon such assumption, make available to the
Borrower a corresponding amount. In such event, if a Lender has not in fact made its share
of the applicable Advance available to the Agent, then the applicable Lender and the
Borrower severally agree to pay to the Agent forthwith on demand such corresponding amount
with interest thereon, for each day from and including the date such amount is made
available to the Borrower to but excluding the date of payment to the Agent, at (i) in the
case of a payment to be made by such Lender, the greater of the Federal Funds Rate and a
rate determined by the Agent in accordance with banking industry rules on interbank
compensation and (ii) in the case of a payment to be made by the Borrower, the interest rate
applicable to Base Rate Advances. If the Borrower and such Lender shall pay such interest
to the Agent for the same or an overlapping period, the Agent shall promptly remit to the
Borrower the amount of such interest paid by the Borrower for such period. If such Lender
pays its share of the applicable Advance to the Agent, then the amount so paid shall
constitute such Lender’s Loan included in such Advance. Any payment by the Borrower shall
be without prejudice to any claim the Borrower may have against a Lender that shall have
failed to make such payment to the Agent.




     (b) Payments by Borrower; Presumptions by Agent. Unless the Agent shall have
received notice from the Borrower prior to the date on which any payment is due to the Agent
for the account of the Lenders or the Issuing Bank hereunder that the Borrower will not make
such payment, the Agent may assume that the Borrower has made such payment on such date in
accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or
the Issuing Bank, as the case may be, the amount due. In such event, if the Borrower has
not in fact made such payment, then each of the Lenders or the Issuing Bank, as the case may
be, severally agrees to repay to the Agent forthwith on demand the amount so distributed to
such Lender or the Issuing Bank, with interest thereon, for each day from and including the
date such amount is distributed to it to but excluding the date of payment to the Agent, at
the greater of the Federal Funds Rate and a rate determined by the Agent in accordance with
banking industry rules on interbank compensation.



     Section 4.6 Taxes.




     (a) Payments Free of Taxes. Any and all payments by or on account of any
obligation of the Borrower hereunder or under any other Loan Document shall be made free and
clear of and without reduction or withholding for any Indemnified Taxes or
Other Taxes, provided that if the Borrower shall be required by applicable law
to deduct any Indemnified Taxes (including any Other Taxes) from such payments, then (i) the
sum payable shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section) the Agent,
Lender or Issuing Bank, 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



36









 







such deductions
and (iii) the Borrower shall timely pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.




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




     (c) Indemnification by the Borrower. The Borrower shall indemnify the Agent,
each Lender and the Issuing Bank, within 10 days after demand therefor, for the full amount
of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed
or asserted on or attributable to amounts payable under this Section) paid by the Agent,
such Lender or the Issuing Bank, as the case may be, and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, whether or not such
Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority. A certificate as to the amount of such payment or
liability delivered to the Borrower by a Lender or the Issuing Bank (with a copy to the
Agent), or by the Agent on its own behalf or on behalf of a Lender or the Issuing Bank,
shall be conclusive absent manifest error.




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




     (e) Status of Lenders. Any Foreign Lender that is entitled to an exemption
from or reduction of withholding tax under the law of the jurisdiction in which the Borrower
is resident for tax purposes, or any treaty to which such jurisdiction is a party, with
respect to payments hereunder or under any other Loan Document shall deliver to the Borrower
(with a copy to the Agent), at the time or times prescribed by applicable law or reasonably
requested by the Borrower or the Agent, such properly completed and executed documentation
prescribed by applicable law as will permit such payments to be made without withholding or
at a reduced rate of withholding. In addition, any Lender, if requested by the Borrower or
the Agent, shall deliver such other documentation prescribed by applicable law or reasonably
requested by the Borrower or the Agent as will enable the Borrower or the Agent to determine
whether or not such Lender is subject to backup withholding or information reporting
requirements. Without limiting the generality of the foregoing, in the event that the
Borrower is resident for tax purposes in the United States of America, any Foreign Lender
shall deliver to the Borrower and the Agent (in such number of copies as shall be requested
by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from
time to time thereafter upon the request of the Borrower or the Agent, but only if such
Foreign Lender is legally entitled to do so), whichever of the following is applicable:




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




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



37









 






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




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




     (f) Treatment of Certain Refunds. If the Agent, a Lender or the Issuing Bank
determines, in its sole discretion, that it has received a refund of any Taxes or Other
Taxes as to which it has been indemnified by the Borrower or with respect to which the
Borrower has paid additional amounts pursuant to this Section, it shall pay to the Borrower
an amount equal to such refund (but only to the extent of indemnity payments made, or
additional amounts paid, by the Borrower under this Section with respect to the Taxes or
Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Agent,
such Lender or the Issuing Bank, as the case may be, and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such refund), provided
that the Borrower, upon the request of the Agent, such Lender or the Issuing Bank, agrees to
repay the amount paid over to the Borrower (plus any penalties, interest or other charges
imposed by the relevant Governmental Authority) to the Agent, such Lender or the Issuing
Bank in the event the Agent, such Lender or the Issuing Bank is required to repay such
refund to such Governmental Authority. This clause shall not be construed to require the
Agent, any Lender or the Issuing Bank to make available its tax returns (or any other
information relating to its taxes that it deems confidential) to the Borrower or any other
Person.



     Section 4.7 Mitigation Obligations; Replacement of Lenders.




     (a) Designation of a Different Lending Office. If any Lender requests
compensation under Section 5.1, or requires the Borrower to pay any additional
amount to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 4.6, then such Lender shall use reasonable efforts to designate a different
lending office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in the judgment
of such
Lender, such designation or assignment (i) would eliminate or reduce amounts payable
pursuant to Section 4.6 or 5.1, as the case may be, 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.




     (b) Replacement of Lenders. If any Lender requests compensation under
Section 5.1, or
if the Borrower is required to pay any additional amount to any
Lender or



38









 







any Governmental Authority for the account of any Lender pursuant to Section
4.6, or if any Lender defaults in its obligation to fund Loans hereunder, then the
Borrower may, at its sole expense and effort, upon notice to such Lender and the Agent,
require such Lender to assign and delegate, without recourse (in accordance with and subject
to the restrictions contained in, and consents required by, Section 13.7), all of
its interests, rights and obligations under this Agreement and the related Loan Documents to
an assignee that shall assume such obligations (which assignee may be another Lender, if a
Lender accepts such assignment), provided that:




     (i) the Borrower shall have paid to the Agent the assignment fee specified in
Section 13.7;




     (ii) such Lender shall have received payment of an amount equal to the
outstanding principal of its Loans and LC Participations, accrued interest thereon,
accrued fees and all other amounts payable to it hereunder and under the other Loan
Documents (including any amounts under Section 5.5) from the assignee (to
the extent of such outstanding principal and accrued interest and fees) or the
Borrower (in the case of all other amounts);




     (iii) in the case of any such assignment resulting from a claim for
compensation under Section 5.1 or payments required to be made pursuant to
Section 4.6, such assignment will result in a reduction in such compensation
or payments thereafter; and




     (iv) such assignment does not conflict with applicable law.




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



     Section 4.8 Computation of Interest. Interest on the Advances based on the Prime Rate
shall be computed on the basis of a year of 365 or 366 days, as the case may be. All other
interest on the Advances and all other amounts payable by the Borrower hereunder shall be computed
on the basis of a year of 360 days and the actual number of days elapsed (including the first day
but excluding the last day) unless such calculation would result in a usurious rate, in which case
interest shall be calculated on the basis of a year of 365 or 366 days, as the case may be.



     Section 4.9 Proceeds of Collateral and Collections under the Guaranty.




     (a) Proceeds. Except as otherwise permitted by Section 4.3, any
proceeds received by the Agent from the sale or other liquidation of the Collateral and from
collections under the Guaranty shall first be applied as payment of the accrued and unpaid
fees of the Agent hereunder and then to all other unpaid or unreimbursed Obligations
(including reasonable attorneys’ fees and expenses) owing to the Agent in its capacity as
Agent only. Any amount of such proceeds remaining after the applications described in the
preceding sentence shall be distributed:



39









 






     (i) first, to the Lenders, pro rata, in accordance with the respective unpaid
amounts of the Primary Obligations (including in such Primary Obligations for
purposes of this calculation all Letter of Credit Liabilities) until all Primary
Obligations are paid in full and provided that each Lender’s pro rata portion of
such proceeds applicable to Letter of Credit Liabilities shall be held by the Agent
(and not disbursed to the Lenders) as collateral for the Letter of Credit
Liabilities relating thereto;




     (ii) then to the Lenders, pro rata, in accordance with the respective unpaid
amounts of the Secondary Obligations; and




     (iii) after all Primary Obligations are paid in full, and all Letter of Credit
Liabilities have terminated or are otherwise satisfied, all remaining portions of
the proceeds of the Collateral then held by the Agent or such Lender as collateral
for the Letter of Credit Liabilities shall be distributed to the Lenders, pro rata,
in accordance with their respective unpaid amounts of the Secondary Obligations.




     (b) Noncash Proceeds. Notwithstanding anything to the contrary contained
herein, if the Agent shall ever acquire any Collateral through foreclosure or by a
conveyance in lieu of foreclosure or by retaining any of the Collateral in satisfaction of
all or part of the Obligations or if any proceeds of Collateral received by the Agent to be
distributed and shared pursuant to this Section 4.9 are in a form other than
immediately available funds, the Agent shall not be required to remit any share thereof
under the terms hereof and the Lenders shall only be entitled to their undivided interests
in the Collateral or noncash proceeds as determined hereby. The Lenders shall receive the
applicable portions (as determined in accordance with Section 4.9(a)) of any
immediately available funds consisting of proceeds from such Collateral or proceeds of such
noncash proceeds so acquired only if any when paid in connection with the subsequent
disposition thereof. While any Collateral or other property to be shared pursuant to this
Section 4.9 is held by the Agent pursuant to this clause (b), the Agent
shall hold such Collateral or other property for the benefit of the Lenders and all matters
relating to the management, operation, further disposition or any other aspect of such
Collateral or other property shall be resolved by the agreement of the Required Lenders.




     (c) Payments Set Aside. To the extent that any payment by or on behalf of the
Borrower is made to the Agent or any Lender, or the Agent or any Lender exercises its right
of set-off, and such payment or the proceeds of such set-off or any part thereof is
subsequently invalidated, declared to be fraudulent or preferential, set aside or
required (including pursuant to any settlement entered into by the Agent or such Lender in
its discretion) to be repaid to a trustee, receiver or any other party, in connection with
any proceeding under the Bankruptcy Code of the United States of America, or any other
liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, reorganization or similar laws of the
applicable jurisdictions or otherwise, then (i) to the extent of such recovery, the
obligation or part thereof originally intended to be satisfied shall be revived and
continued in full force and effect as if such payment had not been made or such set-off had
not occurred, and (ii) each Lender severally agrees to pay to the Agent upon demand its
applicable share of any amount so recovered from or repaid by the Agent, plus interest



40









 







thereon from the date of such demand to the date such payment is made at a rate per annum
equal to the Federal Funds Rate from time to time in effect.



ARTICLE V




Yield Protection




     Section 5.1 Increased Costs.




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




     (i) impose, modify or deem applicable any reserve, special deposit, compulsory
loan, insurance charge or similar requirement against assets of, deposits with or
for the account of, or credit extended or participated in by, any Lender (except any
reserve requirement reflected in the Adjusted Eurodollar Rate) or the Issuing Bank;




     (ii) subject any Lender or the Issuing Bank to any tax of any kind whatsoever
with respect to this Agreement, any Letter of Credit, any participation in a Letter
of Credit or any Eurodollar Advance made by it, or change the basis of taxation of
payments to such Lender or the Issuing Bank in respect thereof (except for
Indemnified Taxes or Other Taxes covered by Section 4.6 and the imposition
of, or any change in the rate of, any Excluded Tax payable by such Lender or the
Issuing Bank); or




     (iii) impose on any Lender or the Issuing Bank or the London interbank market
any other condition, cost or expense affecting this Agreement or Eurodollar Advances
made by such Lender or any Letter of Credit or participation therein;




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




     (b) Capital Requirements. If any Lender or the Issuing Bank determines that
any Change in Law affecting such Lender or the Issuing Bank or any lending office of such
Lender or such Lender’s or the Issuing Bank’s holding company, if any, regarding capital
requirements has or would have the effect of reducing the rate of return on such Lender’s or
the Issuing Bank’s capital or on the capital of such Lender’s or the Issuing Bank’s holding
company, if any, as a consequence of this Agreement, the Commitments of such Lender or the
Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters
of Credit issued by the Issuing Bank, to a level below that which



41









 







such Lender or the Issuing
Bank or such Lender’s or the Issuing Bank’s holding company could have achieved but for such
Change in Law (taking into consideration such Lender’s or the Issuing Bank’s policies and
the policies of such Lender’s or the Issuing Bank’s holding company with respect to capital
adequacy), then from time to time the Borrower will pay to such Lender or the Issuing Bank,
as the case may be, such additional amount or amounts as will compensate such Lender or the
Issuing Bank or such Lender’s or the Issuing Bank’s holding company for any such reduction
suffered.




     (c) Certificates for Reimbursement. A certificate of a Lender or the Issuing
Bank setting forth the amount or amounts necessary to compensate such Lender or the Issuing
Bank or its holding company, as the case may be, as specified in clauses (a) or
(b) of this Section and delivered to the Borrower shall be conclusive absent
manifest error. The Borrower shall pay such Lender or the Issuing Bank, as the case may be,
the amount shown as due on any such certificate within 10 days after receipt thereof.




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



     Section 5.2 Limitation on Types of Advances. Anything herein to the contrary
notwithstanding, if with respect to any Eurodollar Advances for any Interest Period therefor:




     (a) The Agent determines (which determination shall be conclusive) that quotations of
interest rates for the relevant deposits referred to in the definition of “Eurodollar Rate”
in Section 1.1 hereof are not being provided in the relative amounts or for the
relative maturities for purposes of determining the rate of interest for such Advances as
provided in this Agreement; or




     (b) Required Lenders determine (which determination shall be conclusive absent manifest
error) and notify the Agent that the relevant rates of interest referred to in the
definition of “Eurodollar Rate” in Section 1.1 hereof on the basis of which the rate
of interest for such Advances for such Interest Period is to be determined do not accurately
reflect the cost to the Lenders of making or maintaining such Advances for such Interest
Period;


then the Agent shall give the Borrower prompt notice thereof specifying the relevant amounts or
periods, and so long as such condition remains in effect, the Lenders shall be under no obligation
to make additional Eurodollar Advances or to Convert Base Rate Advances into Eurodollar Advances
and the Borrower shall, on the last day(s) of the then current Interest Period(s) for the
outstanding Eurodollar Advances, either prepay such Eurodollar Advances or Convert such Eurodollar
Advances into Base Rate Advances in accordance with the terms of this Agreement.




42









 








     Section 5.3 Illegality. Notwithstanding any other provision of this Agreement, in the
event that it becomes unlawful for any Lender or its Applicable Lending Office to (a) honor its
obligation to make Eurodollar Advances hereunder or (b) maintain Eurodollar Advances hereunder,
then such Lender shall promptly notify the Borrower (with a copy to the Agent) thereof and such
Lender’s obligation to make or maintain Eurodollar Advances and to Convert Base Rate Advances into
Eurodollar Advances hereunder shall be suspended until such time as such Lender may again make and
maintain Eurodollar Advances (in which case the provisions of Section 5.4 hereof shall be
applicable).



     Section 5.4 Treatment of Affected Advances. If the Eurodollar Advances of any Lender
(such Eurodollar Advances being hereinafter called “Affected Advances”) are to be Converted
pursuant to Section 5.1 or 5.3 hereof, such Lender’s Affected Advances shall be
automatically Converted into Base Rate Advances on the last day(s) of the then current Interest
Period(s) for the Affected Advances (or, in the case of a Conversion required by Section
5.1(b) or 5.3 hereof, on such earlier date as such Lender may specify to the Borrower
with a copy to the Agent) and, unless and until such Lender gives notice as provided below that the
circumstances specified in Section 5.1 or 5.3 hereof which gave rise to such
Conversion no longer exist:




     (a) To the extent that such Lender’s Affected Advances have been so Converted, all
payments and prepayments of principal which would otherwise be applied to such Lender’s
Affected Advances shall be applied instead to its Base Rate Advances; and




     (b) All Affected Advances which would otherwise be made or Continued by such Lender as
Eurodollar Advances shall be made as or Converted into Base Rate Advances and all Affected
Advances of such Lender which would otherwise be Converted into Eurodollar Advances shall be
Converted instead into (or shall remain as) Base Rate Advances.


If such Lender gives notice to the Borrower (with a copy to the Agent) that the circumstances
specified in Section 5.1 or 5.3 hereof which gave rise to the Conversion of such
Lender’s Affected Advances pursuant to this Section 5.4 no longer exist (which such Lender
agrees to do promptly upon such circumstances ceasing to exist) at a time when Affected Advances
are outstanding, such Lender’s Base Rate Advances shall be automatically Converted, on the first
day(s) of the next succeeding Interest Period(s) for such outstanding Affected Advances to the
extent necessary so that, after giving effect thereto, all Eurodollar Advances held by the Lenders
holding Eurodollar Advances and by such Lender are held pro rata (as to principal amounts, and
Interest Periods) in accordance with their respective Revolving Credit Commitments.




     Section 5.5 Compensation. The Borrower shall pay to the Agent for the account of each
Lender, upon the request of such Lender through the Agent, such amount or amounts as shall be
sufficient (in the reasonable opinion of such Lender) to compensate it for any loss, cost, or
expense incurred by it as a result of:




     (a) Any payment, prepayment or Conversion of a Eurodollar Advance for any reason
(including, without limitation, the acceleration of the outstanding Advances pursuant to
Section 11.2 and assignments pursuant to Section 4.7(b)) on a date other
than the last day of an Interest Period for such Eurodollar Advance; or




43












 






     (b) Any failure by the Borrower for any reason (including, without limitation, the
failure of any conditions precedent specified in Article VI to be satisfied) to
borrow, Convert, or prepay a Eurodollar Advance on the date for such borrowing, Conversion,
or prepayment, specified in the relevant notice of borrowing, prepayment, or Conversion
under this Agreement.



     Section 5.6 Additional Costs in Respect of Letters of Credit. If as a result of any
Change in Law there shall be imposed, modified, or deemed applicable any tax, reserve, special
deposit, or similar requirement against or with respect to or measured by reference to Letters of
Credit issued or to be issued hereunder or the Issuing Bank’s commitment to issue Letters of Credit
hereunder, and the result shall be to increase the cost to the Issuing Bank of issuing or
maintaining any Letter of Credit or its commitment to issue Letters of Credit hereunder or reduce
any amount receivable by the Issuing Bank hereunder in respect of any Letter of Credit (which
increase in cost, or reduction in amount receivable, shall be the result of the Issuing Bank’s
reasonable allocation of the aggregate of such increases or reductions resulting from such event),
then, upon demand by the Issuing Bank, the Borrower agrees to pay the Issuing Bank, from time to
time as specified by the Issuing Bank, such additional amounts as shall be sufficient to compensate
the Issuing Bank for such increased costs or reductions in amount. A statement as to such
increased costs or reductions in amount incurred by the Issuing Bank, submitted by the Issuing Bank
to the Borrower, shall be conclusive as to the amount thereof, provided that the determination
thereof is made on a reasonable basis.



ARTICLE VI




Conditions Precedent




     Section 6.1 Initial Extension of Credit. The obligation of each Lender to make its
initial Advance and of the Issuing Bank to issue the initial Letter of Credit is subject to the
condition precedent that the Agent shall have received on or before the day of such Advance or such
Letter of Credit all of the following, each dated (unless otherwise indicated) the date hereof, in
form and substance satisfactory to the Agent:




     (a) Resolutions. Resolutions of the Board of Directors of the Borrower and
each Guarantor certified by its Secretary or an Assistant Secretary which authorize the
execution, delivery, and performance of the Loan Documents to which it is or is to be a
party;




     (b) Incumbency Certificate. A certificate of incumbency certified by the
Secretary or an Assistant Secretary of the Borrower and each Guarantor certifying the names
of each of its officers authorized to sign the Loan Documents to which it is or is to be a
party (including the certificates contemplated herein) together with specimen signatures of
such officers;




     (c) Certificate or Articles of Incorporation and Certificate of Limited
Partnership. The certificate or articles of incorporation or certificate of limited
partnership, as applicable, of the Borrower and each Guarantor certified by the Secretary of
State of the State of its organization;



44









 






     (d) Bylaws and Limited Partnership Agreement. The bylaws or limited
partnership agreement, as applicable, of the Borrower and each Guarantor certified by the
Secretary or an Assistant Secretary of such Person;




     (e) Existence and Good Standing. Certificates of the appropriate government
officials of the state of organization of the Borrower and each Guarantor as to its
existence and good standing and certificates of appropriate government officials of each
state in which the Borrower and each Guarantor is required to qualify to do business and
where failure to so qualify could reasonably be expected to have a Material Adverse Effect,
as to the Borrower’s and each Guarantor’s qualification to do business and good standing in
such state, all dated a current date;




     (f) Notes. The Notes executed by the Borrower;




     (g) Guaranty. The Guaranty executed by the Guarantors;




     (h) Contribution and Indemnification Agreement. The Contribution and
Indemnification Agreement executed by the Borrower and the Guarantors;




     (i) Borrower Security Agreement. The Borrower Security Agreement executed by
the Borrower;




     (j) Subsidiary Security Agreement. The Subsidiary Security Agreement executed
by each Guarantor, as applicable;




     (k) Opinion of Counsel. A favorable opinion of legal counsel to the Borrower
and each Guarantor (which opinion may be prepared in part by Borrower’s in-house counsel)
satisfactory to the Agent, as to such matters as the Agent may reasonably request;




     (l) Fees of Lenders. Evidence that all fees of the Agent and the Lenders
payable pursuant to side letter agreements shall have been paid in full by the Borrower;




     (m) Attorneys’ Fees and Expenses. Evidence that the costs and expenses
(including attorneys’ fees) referred to in Section 13.1, to the extent incurred,
shall have been paid in full by the Borrower;




     (n) Financial Statements. Audited consolidated financial statements of the
Borrower and its Subsidiaries as at and for the Fiscal Year ended September 30, 2007, and
unaudited consolidated financial statements of the Borrower and its Subsidiaries for the
twelve-month period ended September 30, 2008;




     (o) Financial Statements of Alpha Corporation. Audited consolidated financial
statements of Alpha Corporation and its Subsidiaries as of and for the fiscal year ending
December 31, 2007, and unaudited consolidated financial statements of Alpha Corporation and
its Subsidiaries for the nine-month period ended September 30, 2008; and




     (p) Trademark Security Agreement. The Trademark Security Agreement executed by
the Borrower.



45









 





     Section 6.2 All Extensions of Credit. The obligation of each Lender to make any
Advance and of the Issuing Bank to issue any Letter of Credit (including the initial Advance and
the initial Letter of Credit) is subject to the following additional conditions precedent:




     (a) Advance Request Form, Telephonic Request, or Letter of Credit Request Form.
The Agent in respect of Revolving Credit Loan Advances and the Term Loan, the Swing Lender
in respect of Swing Loan Advances, and the Issuing Bank in respect of Letters of Credit
shall have received, in accordance with Section 2.6, 2.8 or 3.2, as
the case may be, an Advance Request Form, a telephonic request, or Letter of Credit Request
Form, as applicable, executed by an authorized officer of the Borrower;




     (b) No Default. No Default shall have occurred and be continuing, or would
result from such Advance or Letter of Credit;




     (c) Representations and Warranties. All of the representations and warranties
contained in Article VII hereof and in the other Loan Documents shall be true and
correct in all material respects on and as of the date of such Advance or issuance of Letter
of Credit with the same force and effect as if such representations and warranties had been
made on and as of such date except to the extent such representations and warranties speak
to a specific date;




     (d) No Material Adverse Effect. Neither any Material Adverse Effect or any
material adverse change in the financial or capital markets shall have occurred since the
date of the most recent financial statements delivered to the Agent and the Lenders pursuant
to Section 8.1 hereof; and




     (e) Additional Documentation. The Agent shall have received such additional
approvals, opinions, or documents as the Agent or its legal counsel, Winstead PC, may
reasonably request.



ARTICLE VII




Representations and Warranties




     To induce the Agent, the Issuing Bank, and the Lenders to enter into this Agreement, the
Borrower represents and warrants to the Agent, the Issuing Bank, and the Lenders that:



     Section 7.1 Existence. The Borrower and each Subsidiary (a) is a corporation (or
other entity as set forth on Schedule 7.14) duly organized, validly existing, and in good
standing under the laws of the jurisdiction of its incorporation or organization; (b) has all
requisite power and authority to own its assets and carry on its business as now being or as
proposed to be conducted; and (c) is qualified to do business in all jurisdictions in which the
nature of its business makes such qualification necessary and where failure to so qualify would
have a Material Adverse Effect. Each of the Borrower and the Guarantors has the power and
authority to execute, deliver, and perform its obligations under the Loan Documents to which it is
or may become a party.



     Section 7.2 Financial Statements. The financial statements delivered to the Agent
pursuant to Section 6.1(n) are true and correct, have been prepared in accordance with
GAAP,



46









 







and fairly and accurately present, on a consolidated basis, the financial condition of the
Borrower and its Subsidiaries as of the respective dates indicated therein and the results of
operations for the respective periods indicated therein. As of the date hereof, neither the
Borrower nor any of its Subsidiaries has any material contingent liabilities, liabilities for
taxes, unusual forward or long-term commitments, or unrealized or anticipated losses from any
unfavorable commitments except as referred to or reflected in such financial statements, and there
has been no Material Adverse Effect since the effective date of the most recent financial
statements referred to in this Section.



     Section 7.3 Action; No Breach. The execution, delivery, and performance by the
Borrower and each Guarantor of the Loan Documents to which it is or may become a party, and
compliance with the terms and provisions hereof and thereof have been duly authorized by all
requisite action on the part of the Borrower and each Guarantor and do not and will not (a) violate
or conflict with, or result in a breach of, or require any consent, other than such consents which
have been obtained and copies of which have been provided to the Agent, under (i) the articles of
incorporation or bylaws or the applicable organizational documents of the Borrower or any
Guarantor, (ii) any applicable law, rule, or regulation or any order, writ, injunction, or decree
of any Governmental Authority or arbitrator, including without limitation, the provisions of the
Texas Pawnshop Act (Chapter 371 of the Texas Finance Code) and the consumer loan provisions of the
Texas Finance Code, or (iii) any agreement or instrument to which the Borrower or any of the
Guarantors is a party or by which any of them or any of their property is bound or subject, or (b)
constitute a default under any such agreement or instrument, or result in the creation or
imposition of any Lien upon any of the revenues or assets of the Borrower or any Guarantor (except
for Liens in favor of the Agent for the benefit of the Lenders).



     Section 7.4 Operation of Business. The Borrower and each of its Subsidiaries possess
all licenses, permits, franchises, patents, copyrights, trademarks, and tradenames, or rights
thereto, necessary to conduct their respective businesses substantially as now conducted and as
presently proposed to be conducted, and the Borrower and each of its Subsidiaries are not in
violation of any valid rights of others with respect to any of the forgoing except where such
violation individually or in combination with all other such violations could not reasonably be
expected to have a Material Adverse Effect.



     Section 7.5 Litigation and Judgments. There is no action, suit, investigation, or
proceeding before or by any Governmental Authority or arbitrator pending, or to the knowledge of
the Borrower, threatened against or affecting the Borrower or any Subsidiary, that could, if
adversely determined, reasonably be expected to have a Material Adverse Effect. As of the date
hereof, there are no outstanding judgments against the Borrower or any Subsidiary, except for those
certain default judgments in an aggregate amount not exceeding $100,000 outstanding on the date
hereof.



     Section 7.6 Rights in Properties; Liens. The Borrower and each Subsidiary have good
and indefeasible title to or valid leasehold interests in their respective properties and assets,
real and personal, including the properties, assets, and leasehold interests reflected in the
financial statements described in Section 7.2, and none of the properties, assets, or
leasehold interests of the Borrower or any Subsidiary is subject to any Lien, except as permitted
by Section 9.2.



47









 





     Section 7.7 Enforceability. The Loan Documents to which the Borrower or a Guarantor
is a party, when delivered, shall constitute the legal, valid, and binding obligations of the
Borrower or such Guarantor, as applicable, enforceable against the Borrower or such Guarantor, as
applicable, in accordance with their respective terms, except as limited by bankruptcy, insolvency,
or other laws of general application relating to the enforcement of creditors’ rights and general
principles of equity.



     Section 7.8 Approvals. No authorization, approval, or consent of, and no filing or
registration with, any Governmental Authority or third party is or will be necessary for the
execution, delivery, or performance by the Borrower of this Agreement and by the Borrower or any
Guarantor of the other Loan Documents to which the Borrower or such Guarantor, as applicable, is or
may become a party or for the validity or enforceability thereof.



     Section 7.9 Debt. The Borrower and the Subsidiaries have no Debt, except as permitted
by Section 9.1.



     Section 7.10 Taxes. The Borrower and each Subsidiary have filed all tax returns
(federal, state, and local) required to be filed, including all income, franchise, employment,
property, and sales tax returns, and have paid all of their respective liabilities for taxes,
assessments, governmental charges, and other levies that are due and payable other than those being
contested in good faith by appropriate proceedings diligently pursued for which adequate reserves
have been established. The Borrower knows of no pending investigation of the Borrower or any
Subsidiary by any taxing authority or of any pending but unassessed tax liability of the Borrower
or any Subsidiary.



     Section 7.11 Use of Proceeds; Margin Securities. Neither the Borrower nor any
Subsidiary is engaged principally, or as one of its important activities, in the business of
extending credit for the purpose of purchasing or carrying margin stock (within the meaning of
Regulations T, U, or X of the Board of Governors of the Federal Reserve System), and no part of the
proceeds of any Advance will be used to purchase or carry any margin stock or to extend credit to
others for the purpose of purchasing or carrying margin stock.



     Section 7.12 ERISA. As of the date hereof, the Borrower, each Subsidiary, each ERISA
Affiliate, and each Plan are in compliance in all material respects with all applicable provisions
of ERISA and the Code except for events of noncompliance that will not have a Material Adverse
Effect. Neither a Reportable Event nor a Prohibited Transaction has occurred and is continuing
with respect to any Plan. No notice of intent to terminate a Plan has been filed, nor has any Plan
been terminated. No circumstances exist which constitute grounds entitling the PBGC to institute
proceedings to terminate, or appoint a trustee to administer, a Plan, nor has the PBGC instituted
any such proceedings. Neither the Borrower nor any ERISA Affiliate has completely or partially
withdrawn from a Multiemployer Plan. With respect to any Plan that is subject to Title IV or
Section 302 of ERISA or Section 412 or 4971 of the Code (a) no circumstances exist which constitute
grounds entitling the PBGC to institute proceedings to terminate, or appoint a trustee to
administer, a Plan, nor has the PBGC instituted any such proceedings, (b) the Borrower and each
ERISA Affiliate have met their minimum funding requirements under ERISA, and no “accumulated
funding deficiency” (for which an excise tax is due or would be due in the absence of a waiver) as
defined in Section 412 of the Code or Section 302(a)(2) of ERISA, whichever may apply, has been
incurred with respect to any Plan, whether
or not waived, (c) the present value of all vested benefits under each Plan do not exceed



48









 







the
fair market value of all Plan assets allocable to such benefits, determined on a termination basis
as of the most recent valuation date of the Plan and in accordance with ERISA, and (d) neither the
Borrower nor any ERISA Affiliate (i) has incurred any liability to the PBGC under ERISA, (ii) is
subject to any lien imposed under Section 412(n) of the Code or Section 302(f) or 4068 of ERISA,
whichever may apply, with respect to any Plan or (iii) is required to provide security to a Plan
under Section 401(a)(29) of the Code.



     Section 7.13 Disclosure. All factual information (taken as a whole) furnished by or
on behalf of the Borrower in writing to the Agent or any Lender (including, without limitation, all
information contained in the Loan Documents) for purposes of or in connection with this Agreement,
the other Loan Documents or any transaction contemplated herein or therein is, and all other such
factual information (taken as a whole) hereafter furnished by or on behalf of the Borrower to the
Agent or any Lender, will be true and accurate in all material respects on the date as of which
such information is dated or certified and not incomplete by omitting to state any fact necessary
to make such information (taken as a whole) not misleading in any material respect at such time in
light of the circumstances under which such information was provided.



     Section 7.14 Subsidiaries. As of the date hereof, the Borrower has no Subsidiaries
other than those listed on Schedule 7.14 hereto, and Schedule 7.14 sets forth (a)
the type of each Subsidiary listed thereon, and (b) the jurisdiction of incorporation or
organization of each Subsidiary, and the percentage of the Borrower’s (or intervening Subsidiary’s)
ownership of the outstanding voting stock or other ownership interests of each Subsidiary. All of
the outstanding capital stock of each corporate Subsidiary has been validly issued, is fully paid,
and is nonassessable. There are no outstanding subscriptions, options, warrants, calls, or rights
to acquire, and no outstanding securities or instruments convertible into, capital stock of any
Subsidiary except as listed on Schedule 7.14.



     Section 7.15 Agreements. Neither the Borrower nor any Subsidiary is a party to any
indenture, loan, or credit agreement, or to any lease or other agreement or instrument, or subject
to any charter or corporate restriction which could reasonably be expected to have a Material
Adverse Effect. Neither the Borrower nor any Subsidiary is in default in any material respect in
the performance, observance, or fulfillment of any of the obligations, covenants, or conditions
contained in any agreement or instrument material to its business to which it is a party other than
defaults which could not reasonably be expected to have a Material Adverse Effect.



     Section 7.16 Compliance with Laws. Neither the Borrower nor any Subsidiary is in
violation of any law, rule, regulation, order, or decree of any Governmental Authority or
arbitrator, including without limitation, the provisions of the Texas Pawnshop Act (Chapter 371 of
the Texas Finance Code), the consumer loan provisions of the Texas Finance Code and provisions of
the Brady Law and other laws, rules and regulations related to the regulation of firearms, other
than violations which could not reasonably be expected to have a Material Adverse Effect.



     Section 7.17 Investment Company Act. Neither the Borrower nor any Subsidiary is an
“investment company” within the meaning of the Investment Company Act of 1940, as amended.



     Section 7.18 Public Utility Holding Company Act. Neither the Borrower nor any
Subsidiary is a “holding company”’ or a “subsidiary company” of a “holding company” or an



49









 







“affiliate” of a “holding company” or a “public utility” within the meaning of the Public Utility
Holding Company Act of 2005, as amended.



     Section 7.19 Environmental Matters. Except for those matters which will not
individually or collectively have a Material Adverse Effect:




     (a) The Borrower, each Subsidiary, and all of their respective properties, assets, and
operations are in full compliance with all Environmental Laws. The Borrower is not aware
of, nor has the Borrower received notice of, any past, present, or future conditions,
events, activities, practices, or incidents which may interfere with or prevent the
compliance or continued compliance of the Borrower and the Subsidiaries with all
Environmental Laws;




     (b) The Borrower and each Subsidiary have obtained all permits, licenses, and
authorizations that are required under applicable Environmental Laws, and all such permits
are in good standing and the Borrower and its Subsidiaries are in compliance with all of the
terms and conditions of such permits;




     (c) No Hazardous Materials exist on, about, or within or have been used, generated,
stored, transported, disposed of on, or Released from any of the properties or assets of the
Borrower or any Subsidiary. The use which the Borrower and the Subsidiaries make and intend
to make of their respective properties and assets will not result in the use, generation,
storage, transportation, accumulation, disposal, or Release of any Hazardous Material on,
in, or from any of their properties or assets except in compliance with Environmental Laws;




     (d) Neither the Borrower nor any of its Subsidiaries nor any of their respective
currently or previously owned or leased properties or operations is subject to any
outstanding or, to the best of its knowledge, threatened order from or agreement with any
Governmental Authority or other Person or subject to any judicial or docketed administrative
proceeding with respect to (i) failure to comply with Environmental Laws, (ii) Remedial
Action, or (iii) any Environmental Liabilities arising from a Release or threatened Release;




     (e) There are no conditions or circumstances associated with the currently or
previously owned or leased properties or operations of the Borrower or any of its
Subsidiaries that could reasonably be expected to give rise to any Environmental
Liabilities;




     (f) Neither the Borrower nor any of its Subsidiaries is a treatment, storage, or
disposal facility requiring a permit under the Resource Conservation and Recovery Act, 42
U.S.C. § 6901 et seq., regulations thereunder or any comparable provision of state law. The
Borrower and its Subsidiaries are in compliance with all applicable financial responsibility
requirements of all Environmental Laws;




     (g) Neither the Borrower nor any of its Subsidiaries has filed or failed to file any
notice required under applicable Environmental Law reporting a Release; and



50









 






     (h) No Lien arising under any Environmental Law has attached to any property or
revenues of the Borrower or its Subsidiaries.



ARTICLE VIII




Positive Covenants




     The Borrower covenants and agrees that, as long as the Obligations or any part thereof are
outstanding or any Lender has any Commitment hereunder, or the Issuing Bank has any obligation to
issue Letters of Credit hereunder, the Borrower will perform and observe the following positive
covenants:



     Section 8.1 Reporting Requirements. The Borrower will furnish to the Agent, the
Issuing Bank, and each Lender:




     (a) Annual Audited Financial Statements. As soon as available, and in any
event within 90 days after the end of each Fiscal Year of the Borrower and the Subsidiaries,
beginning with the Fiscal Year ending September 30, 2008, a copy of the annual audited
financial statements of the Borrower and the Subsidiaries for such Fiscal Year containing,
on a consolidated basis, balance sheets and statements of income, retained earnings, and
cash flow as at the end of such Fiscal Year and for the 12-month period then ended, in each
case setting forth in comparative form the figures for the preceding Fiscal Year, all in
reasonable detail and audited and certified by BDO Seidman, LLP, or other independent
certified public accountants of recognized standing acceptable to the Agent, to the effect
that such report has been prepared in accordance with GAAP;




     (b) Quarterly Financial Statements. As soon as available and in any event
within 45 days after the end of each Fiscal Quarter in each Fiscal Year of the Borrower (for
the first three Fiscal Quarters in each Fiscal Year), a copy of an unaudited financial
report of the Borrower and the Subsidiaries as of the end of such Fiscal Quarter and for the
portion of the Fiscal Year then ended, containing, on a consolidated basis (and, at the
request of the Agent, on a consolidating basis), balance sheets and statements of income,
and a year-to-date cash flow statement in each case setting forth in comparative form the
figures for the corresponding period of the preceding Fiscal Year, all in reasonable detail
certified by the chief financial officer of the Borrower to have been prepared in accordance
with GAAP and to fairly and accurately present (subject to year-end audit adjustments and
the absence of footnotes) the financial condition and results of operations of the Borrower
and the Subsidiaries, on a consolidated basis (and, at the request of the Agent, on a
consolidating basis), at the date and for the periods indicated therein;




     (c) Compliance Certificate. As soon as available, and in any event within 45
days after the end of each Fiscal Quarter of each Fiscal Year of the Borrower for the first
three Fiscal Quarters of each Fiscal Year and within 90 days after the end of the fourth
Fiscal Quarter of each Fiscal Year, a certificate (the “Compliance Certificate”) of
the chief financial officer of the Borrower (i) stating that to the best of such officer’s
knowledge, no Default has occurred and is continuing, or if a Default has occurred and is
continuing, a statement as to the nature thereof and the action that is proposed to be
taken



51









 







with respect thereto, and (ii) showing in reasonable detail the most recent Fiscal
Quarter calculations demonstrating compliance with Article X;




     (d) Projections. As soon as available and in any event within 30 days after
the end of each Fiscal Year, projections of consolidated financial statements of the
Borrower and its Subsidiaries for the upcoming Fiscal Year;




     (e) Management Letters. Promptly upon receipt thereof, a copy of any
management letter or written report submitted to the Borrower or any Subsidiary by
independent certified public accountants with respect to the business, condition (financial
or otherwise), operations, prospects, or properties of the Borrower or any Subsidiary;




     (f) Notice of Litigation. Promptly after the commencement thereof, notice of
all actions, suits, and proceedings before any Governmental Authority or arbitrator
affecting the Borrower or any Subsidiary which, if determined adversely to the Borrower or
such Subsidiary, could reasonably be expected to have a Material Adverse Effect;




     (g) Notice of Default. As soon as possible and in any event within 10 days
after the Borrower knows of the occurrence of each Default, a written notice setting forth
the details of such Default and the action that the Borrower has taken and proposes to take
with respect thereto;




     (h) ERISA Reports. Promptly after the filing or receipt thereof, copies of all
reports, including annual reports or informational returns, notices which the Borrower or
any ERISA Affiliate files with or receives from the PBGC or the U.S. Department of Labor
under ERISA, and any tax returns the Borrower or any ERISA Affiliate file with the Internal
Revenue Service related to any Plan; and as soon as possible and in any event within five
days after the Borrower or any ERISA Affiliate knows or has reason to know that any
Reportable Event (as to which the thirty day notice requirement to the PBGC has not been
waived) or Prohibited Transaction has occurred with respect to any Plan or that the PBGC or
the Borrower or any Subsidiary or any ERISA Affiliate has instituted or will institute
proceedings under Title IV of ERISA to terminate any Plan, a certificate of the chief
financial officer of the Borrower setting forth the details as to such Reportable Event or
Prohibited Transaction or Plan termination and the action that the Borrower proposes to take
with respect thereto;




     (i) Notice of Material Adverse Effect. As soon as possible and in any event
within 10 days after the Borrower knows of the occurrence thereof, written notice of any
matter that could reasonably be expected to have a Material Adverse Effect;




     (j) Proxy Statements, Etc. As soon as available, one copy of each financial
statement, report, notice or proxy statement sent by the Borrower or any Subsidiary to its
stockholders generally and one copy of each regular, periodic or special report,
registration statement, or prospectus filed by the Borrower or any Subsidiary with any
securities exchange or the Securities and Exchange Commission or any successor agency;




     (k) CSO Program Agreements. As soon as available and in any event within 30
days after the execution and delivery thereof, copies of each credit services
organization and lender agreement or other similar agreement between the Borrower or



52









 







any Guarantor and an unaffiliated, third-party lender in connection with any CSO Program
and, at the request of the Agent, copies of any other agreements related thereto; and




     (l) General Information. Promptly, such other information concerning the
Borrower or any Subsidiary as the Agent or any Lender may from time to time reasonably
request.



     Section 8.2 Maintenance of Existence; Conduct of Business. The Borrower will preserve
and maintain, and will cause each Subsidiary to preserve and maintain, its corporate (or
partnership, limited liability company or other entity) existence and all of its leases,
privileges, licenses, permits, franchises, qualifications, and rights that are necessary or
desirable in the ordinary conduct of its business. The Borrower will conduct, and will cause each
Subsidiary to conduct, its business in an orderly and efficient manner in accordance with good
business practices customary in the industry in which the Borrower and the Subsidiaries are
engaged.



     Section 8.3 Maintenance of Properties. The Borrower will maintain, keep, and
preserve, and cause each Subsidiary to maintain, keep, and preserve, all of its properties
(tangible and intangible) necessary or useful in the proper conduct of its business in good working
order and condition (ordinary wear and tear excepted).



     Section 8.4 Taxes and Claims. The Borrower will pay or discharge, and will cause each
Subsidiary to pay or discharge, at or before maturity or before becoming delinquent (a) all taxes,
levies, assessments, and governmental charges imposed on it or its income or profits or any of its
property, and (b) all lawful claims for labor, material, and supplies, which, if unpaid, might
become a Lien upon any of its property; provided, however, that neither the Borrower nor any
Subsidiary shall be required to pay or discharge any tax, levy, assessment, or governmental charge
which is being contested in good faith by appropriate proceedings diligently pursued, and for which
adequate reserves have been established.



     Section 8.5 Insurance. The Borrower will maintain, and will cause each Subsidiary to
maintain, insurance with financially sound and reputable insurance companies in such amounts and
covering such risks as is usually carried by corporations engaged in similar businesses and owning
similar properties in the same general areas in which the Borrower and the Subsidiaries operate,
provided that in any event the Borrower will maintain and cause each Subsidiary to maintain
workmen’s compensation insurance, property insurance, comprehensive general liability insurance,
reasonably satisfactory to the Agent.



     Section 8.6 Inspection Rights; Audits. At any reasonable time and from time to time,
the Borrower will permit, and will cause each Subsidiary to permit, representatives of the Agent
and each Lender to examine, copy, and make extracts from its books and records, to visit and
inspect its properties, and to discuss its business, operations, and financial condition with its
officers, employees, and independent certified public accountants.



     Section 8.7 Keeping Books and Records. The Borrower will maintain, and will cause
each Subsidiary to maintain, proper books of record and account in which full, true, and correct
entries in conformity with GAAP shall be made of all dealings and transactions in relation to its
business and activities.



53









 





     Section 8.8 Compliance with Laws. The Borrower will comply, and will cause each
Subsidiary to comply, in all respects with all applicable laws, rules, regulations, orders, and
decrees of any Governmental Authority or arbitrator, including without limitation, the provisions
of the Texas Pawnshop Act (Chapter 371 of the Texas Finance Code), the consumer loan provisions of
the Texas Finance Code and the provisions of the Brady Law and other laws, rules and regulations
related to the regulation of firearms, other than such non-compliance which could not reasonably be
expected to have a Material Adverse Effect.



     Section 8.9 Compliance with Agreements. The Borrower will comply, and will cause each
Subsidiary to comply, in all respects with all agreements, contracts, and instruments binding on it
or affecting its properties or business other than such non-compliance which could not reasonably
be expected to have a Material Adverse Effect.



     Section 8.10 Further Assurances. The Borrower will, and will cause each Subsidiary
to, execute and deliver such further agreements and instruments and take such further action as may
be reasonably requested by the Agent to carry out the provisions and purposes of this Agreement and
the other Loan Documents. Without limiting the foregoing, upon the creation, formation or
acquisition of any Significant Subsidiary or a new store by a new Significant Subsidiary or by a
Guarantor in a new state, the Borrower shall, within 30 calendar days following the date the
Borrower has knowledge that such creation, formation or acquisition, as the case maybe, has been
consummated, all in form and substance satisfactory to the Agent:




     (a) provide written notice of such creation, formation or acquisition to the Agent;




     (b) cause each such Significant Subsidiary (other than an Excluded Foreign Subsidiary)
to execute and deliver (i) a supplement to the Guaranty, a supplement to the Contribution
and Indemnification Agreement, (ii) if requested by the Agent or the Required Lenders, a
supplement to the Subsidiary Security Agreement, Uniform Commercial Code financing
statements (delivery only), and a Waiver for each Leased Location (subject in all respects
to a best efforts standard of performance), and (iii) a legal opinion of the Borrower’s and
Guarantors’ counsel (which may in the Agent’s discretion be a legal opinion of the
Borrower’s in-house counsel); and




     (c) cause the holder of the equity interest of such Excluded Foreign Subsidiary to
execute and deliver amendments and supplements to the Loan Documents and take any other
actions as Agent deems advisable or necessary to grant to Agent for the benefit of the
Secured Parties (as defined in the Borrower Security Agreement and the Subsidiary Security
Agreement), a perfected first priority security interest in such equity interest (provided
that in no event shall more than 66% of the total outstanding voting equity interest of any
such new Excluded Foreign Subsidiary be required to be so pledged).


If any Subsidiary is created or acquired after the date hereof, the Borrower shall deliver to the
Agent (i) an amended Schedule 7.14 to this Agreement to reflect the addition of the new
Subsidiary and (ii) if such Subsidiary is a Significant Subsidiary, any other documents which would
have otherwise been required to be delivered to the Agent and the Lenders if such Significant
Subsidiary had been a Guarantor as of the date hereof.




54









 








     Section 8.11 ERISA. With respect to any Plan that is subject to Title IV or Section
302 of ERISA or Section 412 or 4971 of the Code, the Borrower will comply, and will cause each
Subsidiary to comply, with all minimum funding requirements, and all other material requirements of
ERISA, if applicable, so as not to give rise to any liability thereunder which could reasonably be
expected to have a Material Adverse Effect.



     Section 8.12 Landlord’s Waivers or Subordinations. At the request of the Agent or the
Required Lenders, the Borrower will, and will cause each Subsidiary to, deliver promptly a waiver
or subordination of the landlord’s lien in the Collateral (a “Waiver”) by the landlord of a
Leased Location (subject in all respects to a best efforts standard of performance), the Waiver to
be in form and substance reasonably satisfactory to the Agent.



ARTICLE IX




Negative Covenants




     The Borrower covenants and agrees that, as long as the Obligations or any part thereof are
outstanding or any Lender has any Commitment hereunder or the Issuing Bank has any obligation to
issue Letters of Credit hereunder, the Borrower will perform and observe the following negative
covenants:



     Section 9.1 Debt. The Borrower will not incur, create, assume, or permit to exist,
and will not permit any Subsidiary to incur, create, assume, or permit to exist, any Debt, except:




     (a) Debt to the Lenders and the Issuing Bank pursuant to the Loan Documents;




     (b) Debt listed on Schedule 9.1;




     (c) unsecured Debt owed by a Guarantor to another Guarantor evidenced by a promissory
note which is issued to satisfy any applicable state regulatory requirement for the issuance
of a license for consumer loan activity, such promissory note being pledged to and held by
the Agent as Collateral;




     (d) Guarantee by the Borrower of real estate lease obligations of a Guarantor;




     (e) subordinated Debt which is fully subordinated to the Obligations, on terms
specifically including, without limitation, that payments on such Debt shall be prohibited
if a Default exists or would result from such payment, the maturity date of such Debt shall
be later than the later of (i) the Revolving Credit Termination Date or (ii) the Term Loan
Termination Date, and other terms and conditions and pursuant to documentation, all in form
and substance satisfactory to the Agent and the Required Lenders;




     (f) Debt consisting of CSO LCs;




     (g) Guarantees of the Debt permitted in clause (f) above;




     (h) Debt assumed by the Borrower or any Subsidiary in connection with Permitted
Acquisitions in an aggregate amount not to exceed $5,000,000 at any one time outstanding;



55









 






     (i) purchase money Debt which in each case shall not exceed 100% of the lesser of the
total purchase price and the fair market value of such acquired asset as determined at the
time of acquisition;




     (j) Guarantees by the Borrower or any Subsidiary of real estate lease obligations of an
employee or agent of Borrower or a Guarantor; and




     (k) Debt (other than Debt described in clauses (a) through and including
(j) above) in an aggregate amount not to exceed $2,000,000.00 at any one time
outstanding.



     Section 9.2 Limitation on Liens. The Borrower will not incur, create, assume, or
permit to exist, and will not permit any Subsidiary to incur, create, assume, or permit to exist,
any Lien upon any of its property, assets, or revenues, whether now owned or hereafter acquired,
except:




     (a) Liens disclosed on Schedule 9.2 hereto and Liens in favor of the Agent for
the benefit of the Lenders;




     (b) Liens for taxes, assessments, or other governmental charges which are not
delinquent or which are being diligently contested in good faith and for which adequate
reserves have been established;




     (c) Liens of mechanics, materialmen, warehousemen, carriers, landlords or other similar
statutory Liens securing obligations that are not yet due and are incurred in the ordinary
course of business;




     (d) Liens resulting from good faith deposits to secure payments of workmen’s
compensation or other social security programs or to secure the performance of tenders,
statutory obligations, surety and appeal bonds, bids, contracts (other than for payment of
Debt), or leases made in the ordinary course of business;




     (e) Liens on the Litigation Fund Account in favor of County Bank of Rehoboth Beach,
Delaware;




     (f) purchase money Liens securing Permitted Debt described in Section 9.1(i),
provided that the Debt secured by any such Lien encumbers only the asset so purchased;




     (g) financing statements filed in connection with operating lease transactions for
computers;




     (h) Liens in favor of a landlord of a Leased Location on only the assets of the
Borrower or any Subsidiary located at such Leased Location so long as no financing statement
will be filed in connection with such Lien unless (i) the collateral description listed on
such financing statement is limited to the assets of the Borrower or applicable
Subsidiary located at such Leased Location, and (ii) if requested by the Agent or the
Required Lenders, the Borrower or applicable Subsidiary has obtained a Waiver for such
Leased Location from such landlord (subject in all respects to a best efforts standard of
performance), such Waiver to be in form and substance satisfactory to the Agent;



56









 






     (i) Liens in favor of former holders of equity interests in a Target on holdback and
escrow accounts established by the Borrower pursuant to purchase agreements related to
Permitted Acquisitions; and




     (j) Liens on deposit accounts of the Borrower or any Subsidiary required by the issuers
of debit cards in connection with the Borrower’s or any such Subsidiary’s acceptance of
debit card payments.



     Neither the Borrower nor any Subsidiary shall enter into or assume any agreement (other than
the Loan Documents) prohibiting the creation or assumption of any Lien upon its properties or
assets whether now owned or hereafter acquired; provided that in connection with the creation of
purchase money Liens permitted hereby, the Borrower or the Subsidiary may agree that it will not
permit any other Liens (other than the Liens in favor of the Agent for the benefit of the Lenders)
to encumber the assets subject to such purchase money Lien. Further, the Borrower will not and
will not permit any Subsidiaries directly or indirectly to create or otherwise cause or suffer to
exist to become effective any consensual encumbrance or restriction of any kind on the ability of
any Subsidiary to: (i) pay dividends or make any other distribution on any of such Subsidiaries’
capital stock owned by the Borrower or any Subsidiary of the Borrower; (ii) subject to
subordination provisions pay any Debt owed to the Borrower or any other Subsidiary; (iii) make
loans or advances to the Borrower or any other Subsidiary; or (iv) transfer any of its properties
or assets to the Borrower or any other Subsidiary not restricted hereby.



     Section 9.3 Mergers, Etc. The Borrower will not, and will not permit any Subsidiary
to become a party to a merger or consolidation, or to purchase or otherwise acquire all or a
substantial part of the business or assets of any Person or any shares or other equity interest of
any Person (whether or not certificated), or wind-up, dissolve, or liquidate itself; provided that,
(i) a domestic Subsidiary may wind-up, dissolve or liquidate if no Default exists or would result
therefrom and its assets are transferred to the Borrower or another domestic Significant
Subsidiary; (ii) a foreign Subsidiary may wind-up, dissolve or liquidate if no Default exists or
would result therefrom; (iii) any Subsidiary may merge with and into the Borrower if the Borrower
is the surviving entity and no Default exists or would result therefrom; (iv) any Subsidiary may
merge with and into any other domestic Significant Subsidiary if the domestic Significant
Subsidiary is the surviving entity, no Default exists or would result therefrom and Section
8.10 is complied with; (v) any foreign Subsidiary may merge with any other foreign Subsidiary
if no Default exists or would result therefrom; (vi) the Borrower or a Subsidiary may make
investments permitted under Section 9.5 hereof; (vii) the Borrower or a Subsidiary may make
Permitted Acquisitions; (viii) any Subsidiary that is not a Significant Subsidiary may merge with
and into any other Subsidiary if the other Subsidiary is the surviving entity and no Default exists
or would result therefrom; and (ix) the Borrower or any Subsidiary may acquire assets as permitted
under Section 9.7.



     Section 9.4 Restricted Payments. The Borrower will not declare or pay any dividends
or make any other payment or distribution (whether in cash, property, or obligations) on account
of its capital stock, or redeem, purchase, retire, or otherwise acquire any of its capital
stock, or permit any of its Subsidiaries to purchase or otherwise acquire any capital stock of the
Borrower or another Subsidiary, or set apart any money for a sinking or other analogous fund for
any dividend or other distribution on its capital stock or for any redemption, purchase,
retirement, or other acquisition of any of its capital stock; provided however, the Borrower may
declare or pay Permitted Payments.



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     Section 9.5 Investments. Other than pawn loans, Pay-Day Advance Loans (and
participations therein) and other consumer loans (and participations therein) extended in the
ordinary course of business, the Borrower will not make, and will not permit any Subsidiary to
make, any advance, loan, extension of credit, or capital contribution to or investment in, or
purchase to own, or permit any Subsidiary to purchase or own, any stock, bonds, notes, debentures,
or other securities of any Person, except:




     (a) investments that are permitted and approved by the Borrower in accordance with the
Corporate Investment Policy adopted by the Borrower’s board of directors on July 21, 2006,
as may be amended or modified to permit Hedge Agreements, other than any investments in
Albemarle & Bond Holdings plc;




     (b) investments in Subsidiaries existing on the date of this Agreement and investments
in subsequently created Subsidiaries so long as the Borrower and the Subsidiaries have
complied with the terms and conditions of Section 8.10;




     (c) any loans or investments not covered in the previous sections of this Section
9.5 (including any additional investments made after the date hereof in Albemarle & Bond
Holdings plc) not to exceed $15,000,000 in the aggregate;




     (d) Permitted Acquisitions;




     (e) any CSO LC Disbursements made by the CSO LC Issuer in connection with the CSO
Program; and




     (f) investments in Albemarle & Bond Holdings plc existing on the date of this
Agreement.



     Section 9.6 Limitation on Issuance of Capital Stock. The Borrower will not permit any
of its Subsidiaries to, at any time issue, sell, assign, or otherwise dispose of (a) any of its
capital stock (or any equivalent interest therein), (b) any securities exchangeable for or
convertible into or carrying any rights to acquire any of its capital stock (or any equivalent
interest therein), or (c) any option, warrant, or other right to acquire any of its capital stock
(or any equivalent interest therein), except issuances by a Subsidiary to the Borrower.



     Section 9.7 Transactions With Affiliates. The Borrower will not enter into, and will
not permit any Subsidiary to enter into, any transaction, including, without limitation, the
purchase, sale, or exchange of property or the rendering of any service, with any Affiliate of the
Borrower or such Subsidiary, except, so long as no Default has occurred and is continuing or would
result therefrom, any of the following: (a) the transfers of assets with a book value not greater
than $2,500,000 in the aggregate during each Fiscal Year, (b) upon fair and reasonable terms no
less favorable to the Borrower or such Subsidiary than would be obtained in a
comparable arm’s-length transaction with a Person not an Affiliate of the Borrower or such
Subsidiary, (c) transfers of assets to Borrower or any Obligated Party so long as, if such assets
are subject to a Lien in favor of the Agent, then Borrower or such transferee Obligated Party shall
grant promptly first priority perfected Liens in such assets to the Agent, (d) transfers of cash to
any Subsidiary so long as such cash is deposited into a deposit account that is subject to a first
priority perfected Lien in favor of the Agent, (e) transfers of cash to any other Subsidiary so
long as such cash shall be used by the transferee Subsidiary in the ordinary course of business, or



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(f) transfers by any Subsidiary that is not an Obligated Party of any assets not constituting
Collateral (including cash) to another Subsidiary that is not an Obligated Party.



     Section 9.8 Disposition of Assets. The Borrower will not sell, lease, assign,
transfer, or otherwise dispose (collectively “Dispositions”) of any of its assets, or
permit any Subsidiary to do so with any of its assets, except:




     (a) Dispositions of Inventory in the ordinary course of business;




     (b) Dispositions of obsolete, worn or used equipment;




     (c) Dispositions in the ordinary course of business of short-term consumer loans and
any other rights related to such consumer loans arising under the CSO Program (including
reimbursement obligations under CSO LCs) (collectively the “Consumer Obligations”)
so long as (i) such consumers have defaulted on such loans and (ii) the related CSO LCs have
been fully drawn;




     (d) Dispositions to a Guarantor as to which Agent has in its possession an executed
Guaranty, Contribution and Indemnification Agreement, and Subsidiary Security Agreement, if
applicable;




     (e) Dispositions of certain store locations (including sales of real property and
operating business (which may include the sale of Inventory, pawn loans and interests in
Pay-Day Advance Loans of the Borrower or any Subsidiary in connection with the sale of such
location and sales of the Consumer Obligations described in Section 9.8(c) above in
connection with the sale of such location), but excluding liquidating sales of Inventory,
pawn loans and interests in Pay-Day Advance Loans and Consumer Obligations made in
connection with the CSO Program of the Borrower or any Subsidiary, which do not occur in
connection with the sale of any real property or operating business) owned by the Borrower
or any of its Subsidiaries as of the date hereof so long as the Net Proceeds of such
Disposition are promptly paid to the Agent in accordance with Section 4.3;




     (f) Dispositions to the Borrower or a Subsidiary permitted under Section 9.7;
and




     (g) Dispositions to an employee or agent of Borrower or a Guarantor to compensate such
employee or agent for any liabilities incurred pursuant to any Guarantee permitted by
Section 9.1(j).



     Section 9.9 Nature of Business. The Borrower will not, and will not permit any
Subsidiary to, engage in any business other than the businesses in which they are engaged on the
date hereof and similar businesses thereto in connection with the providing of consumer loan
products or financial services, directly and indirectly. Without in any way limiting the
foregoing, such businesses shall include, but not be limited to, the following: pawn loans,
check-cashing, money wires, Pay-Day Advance Loans, other consumer loans, directly (as a lender) and
indirectly (as a participant), jewelry and merchandise sales, insurance products and services,
credit services, loan broker services and other businesses, services and products incidental to the
foregoing.



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     Section 9.10 Environmental Protection. The Borrower will not, and will not permit any
of its Subsidiaries to, (a) use (or permit any tenant to use) any of their respective properties or
assets for the handling, processing, storage, transportation, or disposal of any Hazardous
Material, (b) generate any Hazardous Material, (c) conduct any activity that is likely to cause a
Release or threatened Release of any Hazardous Material, or (d) otherwise conduct any activity or
use any of their respective properties or assets in any manner that is likely to violate any
Environmental Law or create any Environmental Liabilities for which the Borrower or any of its
Subsidiaries would be responsible.



     Section 9.11 Accounting. The Borrower will not, and will not permit any of its
Subsidiaries to, change its Fiscal Year or make any change in accounting treatment or reporting
practices, except as permitted by GAAP and disclosed to the Agent.



     Section 9.12 Prepayment of Debt. The Borrower will not, and will not permit any
Subsidiary to, prepay any Debt except (i) the Obligations and (ii) intercompany Debt among
Guarantors permitted pursuant to Section 9.1(c).



ARTICLE X




Financial Covenants




     The Borrower covenants and agrees that, as long as the Obligations or any part thereof are
outstanding or any Lender has any Commitment hereunder or the Issuing Bank has any obligation to
issue Letters of Credit hereunder, the Borrower will perform and observe the following financial
covenants:



     Section 10.1 Consolidated Net Worth. The Borrower will maintain at all times
Consolidated Net Worth in an amount not less than the sum of (a) 90% of Consolidated Net Worth as
of December 31, 2008, plus (b) an amount equal to 50% of Consolidated Net Income (not less than
zero dollars [$0.00]) for all periods subsequent to the Fiscal Quarter ending December 31, 2008,
plus (c) an amount equal to 100% of the Net Proceeds of all equity offerings (including conversions
of debt securities into common stock) of the Borrower subsequent to December 31, 2008.



     Section 10.2 Total Leverage Ratio. The Borrower will maintain a Total Leverage Ratio
at the end of each Fiscal Quarter of not greater than 2.50 to 1.00.



     Section 10.3 Fixed Charge Coverage Ratio. The Borrower will maintain a Fixed Charge
Coverage Ratio at the end of each Fiscal Quarter of not less than 1.25 to 1.00.



ARTICLE XI




Default




     Section 11.1 Events of Default. Each of the following shall be deemed an “Event
of Default”:




     (a) The Borrower or any Obligated Party shall fail to pay the Obligations or any part
thereof within three (3) days after the same becomes due.



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     (b) Any representation or warranty made or deemed made by the Borrower or any Obligated
Party (or any of their respective officers) in any Loan Document or in any certificate,
report, notice, or financial statement furnished at any time in connection with this
Agreement shall be false, misleading, or erroneous in any material respect when made or
deemed to have been made.




     (c) The Borrower shall fail to perform, observe, or comply with any covenant,
agreement, or term contained in Section 8.1, Article IX, or Article
X of this Agreement; or the Borrower or any Obligated Party shall fail to perform,
observe, or comply with any other covenant, agreement, or term contained in this Agreement
or any other Loan Document (other than covenants to pay the Obligations) and such failure
shall continue for a period of 15 days.




     (d) The Borrower, any Subsidiary, or any Obligated Party shall commence a voluntary
proceeding seeking liquidation, reorganization, or other relief with respect to itself or
its debts under any bankruptcy, insolvency, or other similar law now or hereafter in effect
or seeking the appointment of a trustee, receiver, liquidator, custodian, or other similar
official of it or a substantial part of its property or shall consent to any such relief or
to the appointment of or taking possession by any such official in an involuntary case or
other proceeding commenced against it or shall make a general assignment for the benefit of
creditors or shall generally fail to pay its debts as they become due or shall take any
corporate action to authorize any of the foregoing.




     (e) An involuntary proceeding shall be commenced against the Borrower, any Subsidiary,
or any Obligated Party seeking liquidation, reorganization, or other relief with respect to
it or its debts under any bankruptcy, insolvency, or other similar law now or hereafter in
effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official for it or a substantial part of its property, and such involuntary
proceeding shall remain undismissed and unstayed for a period of 30 days.




     (f) The Borrower, any Subsidiary, or any Obligated Party shall fail to discharge within
a period of 45 days after the commencement thereof any attachment, sequestration, or similar
proceeding or proceedings involving an aggregate amount in excess of $1,000,000 against any
of its assets or properties.




     (g) A final judgment or judgments for the payment of money in excess of $1,000,000 in
the aggregate shall be rendered by a court or courts against the Borrower, any of its
Subsidiaries, or any Obligated Party and the same shall not be discharged (or provision
shall not be made for such discharge), or a stay of execution thereof shall not
be procured, within 45 days from the date of entry thereof and the Borrower or the
relevant Subsidiary or Obligated Party shall not, within said period of 45 days, or such
longer period during which execution of the same shall have been stayed, appeal therefrom
and cause the execution thereof to be stayed during such appeal.




     (h) The Borrower, any Subsidiary, or any Obligated Party shall fail to pay when due any
principal of or interest on any Material Debt (hereinafter defined) (other than the
Obligations), or the maturity of any such Debt shall have been accelerated, or any such Debt
shall have been required to be prepaid prior to the stated maturity thereof, or any event
shall have occurred that permits any holder or holders of such Debt or any



61









 







Person acting on
behalf of such holder or holders to accelerate the maturity thereof or require any such
prepayment. For purposes of this clause (h), the term “Material Debt” means
Debt owed by the Borrower or any Subsidiary the principal amount of which exceeds
$1,000,000.




     (i) This Agreement or any other Loan Document shall cease to be in full force and
effect or shall be declared null and void or the validity or enforceability thereof shall be
contested or challenged by the Borrower, any Subsidiary, any Obligated Party or any of their
respective shareholders, or the Borrower or any Obligated Party shall deny that it has any
further liability or obligation under any of the Loan Documents.




     (j) Any of the following events shall occur or exist with respect to the Borrower or
any ERISA Affiliate: (i) any Prohibited Transaction involving any Plan; (ii) any Reportable
Event with respect to any Plan; (iii) the filing under Section 4041 of ERISA of a notice of
intent to terminate any Plan or the termination of any Plan; (iv) any event or circumstance
that might constitute grounds entitling the PBGC to institute proceedings under Section 4042
of ERISA for the termination of, or for the appointment of a trustee to administer, any
Plan, or the institution by the PBGC of any such proceedings; or (v) complete or partial
withdrawal under Section 4201 or 4204 of ERISA from a Multiemployer Plan or the
reorganization, insolvency, or termination of any Multiemployer Plan; and in each case
above, such event or condition, together with all other events or conditions, if any, have
subjected or could in the reasonable opinion of Required Lenders subject the Borrower to any
tax, penalty, or other liability to a Plan, a Multiemployer Plan, the PBGC, or otherwise (or
any combination thereof) which in the aggregate exceed or could reasonably be expected to
exceed $1,000,000.




     (k) Any Person or group of related Persons for purposes of Section 13(d) of the
Exchange Act sells or acquires after the date hereof “beneficial ownership” (within the
meaning of Section 13(d) of the Exchange Act) in excess of 33% of the total voting power of
all classes of capital stock then outstanding of the Borrower entitled (without regard to
the occurrence of any contingency) to vote in elections of directors of the Borrower.




     (l) The Borrower or any of its Subsidiaries, or any of their properties, revenues, or
assets, shall become the subject of an order of forfeiture, seizure, or divestiture and the
same shall not have been discharged (or provisions shall not be made for such discharge)
within 30 days from the date of entry thereof.




     (m) Any Material Adverse Effect shall occur.



     Section 11.2 Remedies.




     (a) Remedies. If any Event of Default shall occur and be continuing, the Agent
may (and if directed by Required Lenders, shall) do any one or more of the following:




     (i) Acceleration. Declare all outstanding principal of and accrued and
unpaid interest on the Notes, all outstanding Letter of Credit Disbursements, and
all other obligations of the Borrower under the Loan Documents immediately due and
payable, and the same shall thereupon become immediately due



62









 







and payable, without
notice, demand, presentment, notice of dishonor, notice of acceleration, notice of
intent to accelerate, protest, or other formalities of any kind, all of which are
hereby expressly waived by the Borrower.




     (ii) Termination of Revolving Credit Commitments and Swing Commitment.
Terminate the Revolving Credit Commitments and the Swing Commitment and the
obligation of the Issuing Bank to issue Letters of Credit without notice to the
Borrower.




     (iii) Judgment. Reduce any claim to judgment.




     (iv) Foreclosure. Foreclose or otherwise enforce any Lien granted to
the Agent for the benefit of itself and the Lenders to secure payment and
performance of the Obligations in accordance with the terms of the Loan Documents.




     (v) Rights. Exercise any and all rights and remedies afforded by the
laws of the State of Texas or any other jurisdiction, by any of the Loan Documents,
by equity, or otherwise.




Provided, however, that upon the occurrence of an Event of Default under subsection
(d) or (e) of Section 11.1, the Revolving Credit Commitments of all of
the Lenders and the obligation of the Issuing Bank to issue Letters of Credit shall
automatically terminate, and the outstanding principal of and accrued and unpaid interest on
the Notes and all other obligations of the Borrower under the Loan Documents shall thereupon
become immediately due and payable without notice, demand, presentment, notice of dishonor,
notice of acceleration, notice of intent to accelerate, protest, or other formalities of any
kind, all of which are hereby expressly waived by the Borrower.




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



63









 






provided that the failure to
give such notice shall not affect the validity of such setoff and
application.


     (c) Cash Collateral. If an Event of Default shall have occurred and be
continuing the Borrower shall, if requested by the Agent or Required Lenders, pledge to the
Agent as security for the Obligations an amount in immediately available funds equal to the
then outstanding Letter of Credit Liabilities, such funds to be held in a cash collateral
account at the Agent without any right of withdrawal by the Borrower.



     Section 11.3 Performance by the Agent. If the Borrower shall fail to perform any
covenant or agreement in accordance with the terms of the Loan Documents, the Agent may, at the
direction of Required Lenders, perform or attempt to perform such covenant or agreement on behalf
of the Borrower. In such event, the Borrower shall, at the request of the Agent, promptly pay any
amount reasonably expended by the Agent or the Lenders in connection with such performance or
attempted performance to the Agent at the Principal Office, together with interest thereon at the
Default Rate from and including the date of such expenditure to but excluding the date such
expenditure is paid in full. Notwithstanding the foregoing, it is expressly agreed that neither
the Agent nor any Lender shall have any liability or responsibility for the performance of any
obligation of the Borrower under this Agreement or any of the other Loan Documents.



ARTICLE XII




The Agent




     Section 12.1 Appointment and Authority. Each of the Lenders and the Issuing Bank
hereby irrevocably appoints Wells Fargo Bank, National Association to act on its behalf as the
Agent hereunder and under the other Loan Documents and authorizes the Agent to take such actions on
its behalf and to exercise such powers as are delegated to the Agent by the terms hereof or
thereof, together with such actions and powers as are reasonably incidental thereto. The
provisions of this Article are solely for the benefit of the Agent, the Lenders and the Issuing
Bank, and neither the Borrower nor any Obligated Party shall have rights as a third party
beneficiary of any of such provisions.



     Section 12.2 Rights as a Lender. The Person serving as the Agent hereunder shall have
the same rights and powers in its capacity as a Lender as any other Lender and may exercise the
same as though it were not the Agent and the term “Lender” or “Lenders” shall, unless otherwise
expressly indicated or unless the context otherwise requires, include the Person serving as the
Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits
from, lend money to, act as the financial advisor or in any other advisory capacity for and
generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate
thereof as if such Person were not the Agent hereunder and without any duty to account therefor to
the Lenders.



     Section 12.3 Exculpatory Provisions. The Agent shall not have any duties or
obligations except those expressly set forth herein and in the other Loan Documents. Without
limiting the generality of the foregoing, the Agent:




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



64









 






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




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


The Agent shall not be liable for any action taken or not taken by it (i) with the consent or at
the request of the Required Lenders (or such other number or percentage of the Lenders as shall be
necessary, or as the Agent shall believe in good faith shall be necessary, under the circumstances
as provided in Sections 13.9 and 11.2) or (ii) in the absence of its own gross
negligence or willful misconduct. The Agent shall be deemed not to have knowledge of any Default
unless and until notice describing such Default is given to the Agent by the Borrower, a Lender or
the Issuing Bank.




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



     Section 12.4 Reliance by Agent. The Agent shall be entitled to rely upon, and shall
not incur any liability for relying upon, any notice, request, certificate, consent, statement,
instrument, document or other writing (including any electronic message, Internet or intranet
website posting or other distribution) believed by it to be genuine and to have been signed, sent
or otherwise authenticated by the proper Person. The Agent also may rely upon any statement
made to it orally or by telephone and believed by it to have been made by the proper Person,
and shall not incur any liability for relying thereon. In determining compliance with any
condition hereunder to the making of a Loan, or the issuance of a Letter of Credit, that by its
terms must be fulfilled to the satisfaction of a Lender or the Issuing Bank, the Agent may presume
that such condition is satisfactory to such Lender or the Issuing Bank unless the Agent shall have
received notice to the contrary from such Lender or the Issuing Bank prior to the making of such
Loan or the issuance of such Letter of Credit. The Agent may consult with legal counsel (who may
be counsel for the Borrower), independent accountants and other experts selected by it, and shall
not be liable for any action taken or not taken by it in accordance with the advice of any such
counsel, accountants or experts.




65











 





     Section 12.5 Delegation of Duties. The Agent may perform any and all of its duties
and exercise its rights and powers hereunder or under any other Loan Document by or through any one
or more sub-agents appointed by the Agent. The Agent and any such sub-agent may perform any and
all of its duties and exercise its rights and powers by or through their respective Related
Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the
Related Parties of the Agent and any such sub-agent, and shall apply to their respective activities
in connection with the syndication of the credit facilities provided for herein as well as
activities as Agent.



     Section 12.6 Resignation of Agent. The Agent may at any time give notice of its
resignation to the Lenders, the Issuing Bank and the Borrower. Upon receipt of any such notice of
resignation, the Required Lenders shall have the right, in consultation with the Borrower, to
appoint a successor, which shall be a bank with an office in the United States of America, or an
Affiliate of any such bank with an office in the United States of America. If no such successor
shall have been so appointed by the Required Lenders and shall have accepted such appointment
within 30 days after the retiring Agent gives notice of its resignation, then the retiring Agent
may on behalf of the Lenders and the Issuing Bank, appoint a successor Agent meeting the
qualifications set forth above provided that if the Agent shall notify the Borrower and the Lenders
that no qualifying Person has accepted such appointment, then such resignation shall nonetheless
become effective in accordance with such notice and (a) the retiring Agent shall be discharged from
its duties and obligations hereunder and under the other Loan Documents (except that in the case of
any collateral security held by the Agent on behalf of the Lenders or the Issuing Bank under any of
the Loan Documents, the retiring Agent shall continue to hold such collateral security until such
time as a successor Agent is appointed) and (b) all payments, communications and determinations
provided to be made by, to or through the Agent shall instead be made by or to each Lender and the
Issuing Bank directly, until such time as the Required Lenders appoint a successor Agent as
provided for above in this Section. Upon the acceptance of a successor’s appointment as Agent
hereunder, such successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring (or retired) Agent, and the retiring Agent shall be
discharged from all of its duties and obligations hereunder or under the other Loan Documents (if
not already discharged therefrom as provided above in this Section). The fees payable by the
Borrower to a successor Agent shall be the same as those payable to its predecessor unless
otherwise agreed between the Borrower and such successor. After the retiring Agent’s resignation
hereunder and under the other Loan Documents, the provisions of this Article and Section
13.1 shall continue in effect for the benefit of such retiring Agent, its sub-agents and their
respective Related Parties in respect of any actions taken or omitted to be taken by any of them
while the retiring Agent was acting as Agent.



     Section 12.7 Non-Reliance on Agent and Other Lenders. Each Lender and the Issuing
Bank acknowledges that it has, independently and without reliance upon the Agent or any other
Lender or any of their Related Parties and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender
and the Issuing Bank also acknowledges that it will, independently and without reliance upon the
Agent or any other Lender or any of their Related Parties and based on such documents and
information as it shall from time to time deem appropriate, continue to make its own decisions in
taking or not taking action under or based upon this Agreement, any other Loan Document or any
related agreement or any document furnished hereunder or thereunder.



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     Section 12.8 Sharing of Payments, Etc. If any Lender shall, by exercising any right
of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest
on any of its Loans or other obligations hereunder resulting in such Lender’s receiving payment of
a proportion of the aggregate amount of its Loans and accrued interest thereon or other such
obligations greater than its pro rata share thereof as provided herein, then the Lender receiving
such greater proportion shall (a) notify the Agent of such fact, and (b) purchase (for cash at face
value) participations in the Loans and such other obligations of the other Lenders, or make such
other adjustments as shall be equitable, so that the benefit of all such payments shall be shared
by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest
on their respective Loans and other amounts owing them, provided that:




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




     (b) the provisions of this clause shall not be construed to apply to (i) any payment
made by the Borrower pursuant to and in accordance with the express terms of this Agreement
or (ii) any payment obtained by a Lender as consideration for the assignment of or sale of a
participation in any of its Loans or participations in Letter of Credit Disbursements to any
assignee or participant, other than to the Borrower or any Subsidiary thereof (as to which
the provisions of this clause shall apply).


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




     Section 12.9 Indemnification. THE LENDERS HEREBY AGREE TO INDEMNIFY THE AGENT AND THE
ISSUING BANK FROM AND HOLD THE AGENT AND THE ISSUING BANK HARMLESS AGAINST (TO THE EXTENT NOT
REIMBURSED UNDER SECTIONS 13.1 AND 13.2, BUT WITHOUT LIMITING THE OBLIGATIONS OF
THE BORROWER UNDER SECTIONS 13.1 AND 13.2), RATABLY IN ACCORDANCE WITH THEIR
RESPECTIVE REVOLVING CREDIT COMMITMENTS, ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES,
PENALTIES, ACTIONS, JUDGMENTS, DEFICIENCIES, SUITS, COSTS, EXPENSES (INCLUDING REASONABLE
ATTORNEYS’ FEES), AND DISBURSEMENTS OF ANY KIND OR NATURE WHATSOEVER WHICH MAY BE IMPOSED ON,
INCURRED BY, OR ASSERTED AGAINST THE AGENT AND THE ISSUING BANK IN ANY WAY RELATING TO OR ARISING
OUT OF ANY OF THE LOAN DOCUMENTS OR ANY ACTION TAKEN OR OMITTED TO BE TAKEN BY THE AGENT AND THE
ISSUING BANK UNDER OR IN RESPECT OF ANY OF THE LOAN DOCUMENTS; PROVIDED, FURTHER, THAT NO LENDER
SHALL BE LIABLE FOR ANY PORTION OF THE FOREGOING TO THE EXTENT CAUSED BY THE AGENT’S OR THE ISSUING
BANK’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. WITHOUT LIMITING ANY OTHER PROVISION OF THIS
SECTION, EACH LENDER AGREES TO REIMBURSE THE AGENT AND THE ISSUING BANK PROMPTLY UPON DEMAND FOR
ITS PRO RATA SHARE (CALCULATED ON THE BASIS OF THE REVOLVING CREDIT COMMITMENTS) OF ANY AND ALL



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OUT-OF-POCKET EXPENSES (INCLUDING REASONABLE ATTORNEYS’ FEES) INCURRED BY THE AGENT AND THE
ISSUING BANK 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, THE LOAN DOCUMENTS, TO THE EXTENT THAT
THE AGENT OR THE ISSUING BANK IS NOT REIMBURSED FOR SUCH EXPENSES BY THE BORROWER.




     Section 12.10 Several Commitments. The Commitments and other obligations of the
Lenders under this Agreement are several. The default by any Lender in making an Advance in
accordance with its Commitment shall not relieve the other Lenders of their obligations under this
Agreement. In the event of any default by any Lender in making any Advance, each nondefaulting
Lender shall be obligated to make its Advance but shall not be obligated to advance the amount
which the defaulting Lender was required to advance hereunder. In no event shall any Lender be
required to advance an amount or amounts to the Borrower which shall in the aggregate exceed such
Lender’s Revolving Credit Commitment. No Lender shall be responsible for any act or omission of
any other Lender.



     Section 12.11 Agent May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to the Borrower or any Obligated Party, the Agent
(irrespective of whether the principal of any Advance or Letter of Credit Liabilities shall then be
due and payable as herein expressed or by declaration or otherwise and irrespective of whether the
Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention
in such proceeding or otherwise




     (a) to file and prove a claim for the whole amount of the principal and interest owing
and unpaid in respect of the Advances, Letter of Credit Liabilities and all other
Obligations that are owing and unpaid and to file such other documents as may be necessary
or advisable in order to have the claims of the Lenders and the Agent (including any claim
for the reasonable compensation, expenses, disbursements and advances of the Lenders and the
Agent and their respective agents and counsel and all other amounts due the Lenders and the
Agent under Sections 2.10 and 13.1) allowed in such judicial proceeding; and




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


and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender to make such payments to the
Agent and, in the event that the Agent shall consent to the making of such payments directly to the
Lenders, to pay to the Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Agent and its agents and counsel, and any other amounts due the
Agent under Sections 2.10 and 13.1.




     Nothing contained herein shall be deemed to authorize the Agent to authorize or consent to or
accept or adopt on behalf of any Lender any plan of reorganization, arrangement,



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adjustment or composition affecting the Obligations or the rights of any Lender or to
authorize the Agent to vote in respect of the claim of any Lender in any such proceeding.




     Section 12.12 Collateral and Guaranty Matters. The Lenders irrevocably authorize the
Agent, at its option and in its discretion:




     (a) to release any Lien on any property granted to or held by the Agent under any Loan
Document (i) upon termination of the Commitments and payment in full of all Obligations
(other than contingent indemnification obligations) and the expiration or termination of all
Letters of Credit, (ii) that is sold or to be sold as part of or in connection with any sale
permitted hereunder or under any other Loan Document, or (iii) subject to Section
13.9, if approved, authorized or ratified in writing by the Required Lenders; and




     (b) to release any Guarantor from its obligations under the Guaranty if such Person
ceases to be a Subsidiary as a result of a transaction permitted hereunder.



     Upon request by the Agent at any time, the Required Lenders will confirm in writing the
Agent’s authority to release its interest in particular types or items of property, or to release
any Guarantor from its obligations under the Guaranty pursuant to this Section 12.12.



     Section 12.13 No Other Duties, Etc. Anything herein to the contrary notwithstanding,
none of the bookrunners, arrangers or Syndication Agent listed on the cover page hereof shall have
any powers, duties or responsibilities under this Agreement or any of the other Loan Documents,
except in its capacity, as applicable, as the Agent, a Lender, the Swing Lender or the Issuing Bank
hereunder.



ARTICLE XIII




Miscellaneous




     Section 13.1 Expenses; Indemnity; Damage Waiver.




     (a) Costs and Expenses. The Borrower shall pay (i) all reasonable
out-of-pocket expenses incurred by the Agent and its Affiliates (including the reasonable
fees, charges and disbursements of counsel for the Agent), and shall pay all fees and time
charges and disbursements for attorneys who may be employees of the Agent, in connection
with the syndication of the credit facilities provided for herein, the preparation,
negotiation, execution, delivery and administration of this Agreement and the other Loan
Documents or any amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be consummated), (ii)
all reasonable out-of-pocket expenses incurred by the Issuing Bank in connection with the
issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment
thereunder and (iii) all out-of-pocket expenses incurred by the Agent, any Lender or the
Issuing Bank (including the fees, charges and disbursements of any counsel for the Agent,
any Lender or the Issuing Bank), and shall pay all fees and time charges for attorneys who
may be employees of the Agent, any Lender or the Issuing Bank, in connection with the
enforcement or protection of its rights (A) in connection with this Agreement and the other
Loan Documents,



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including its rights under this Section, or (B) in connection with the Loans made or
Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred
during any workout, restructuring or negotiations in respect of such Loans or Letters of
Credit.




     (b) Indemnification by the Borrower. The Borrower shall indemnify the Agent
(and any sub-agent thereof), each Lender and the Issuing Bank, and each Related Party of any
of the foregoing Persons (each such Person being called an “Indemnitee”) against,
and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and
related expenses (including the reasonable fees, charges and disbursements of any counsel
for any Indemnitee), and shall indemnify and hold harmless each Indemnitee from all
reasonable fees and time charges and disbursements for attorneys who may be employees of any
Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any third party
or by the Borrower or any Obligated Party arising out of, in connection with, or as a result
of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement
or instrument contemplated hereby or thereby, the performance by the parties hereto of their
respective obligations hereunder or thereunder or the consummation of the transactions
contemplated hereby or thereby, (ii) any Loan or Letter of Credit or the use or proposed use
of the proceeds therefrom (including any refusal by the Issuing Bank to honor a demand for
payment under a Letter of Credit if the documents presented in connection with such demand
do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged
presence or Release of Hazardous Materials on or from any property owned or operated by the
Borrower or any of its Subsidiaries, or any Environmental Liability related in any way to
the Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory, whether brought by a third party or by the Borrower or
any other Obligated Party, and regardless of whether any Indemnitee is a party thereto,
provided that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses (x) are determined by a
court of competent jurisdiction by final and nonappealable judgment to have resulted from
the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim
brought by the Borrower or any Obligated Party against an Indemnitee for breach in bad faith
of such Indemnitee’s obligations hereunder or under any other Loan Document, if the Borrower
or such Obligated Party has obtained a final and nonappealable judgment in its favor on such
claim as determined by a court of competent jurisdiction.




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



70









 







of the foregoing acting for the Agent (or any such sub-agent) or Issuing Bank in
connection with such capacity. The obligations of the Lenders under this clause (c)
are subject to the provisions of Section 12.10.




     (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable law, the Borrower shall not assert, and hereby waives, any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or punitive
damages (as opposed to direct or actual damages) arising out of, in connection with, or as a
result of, this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of
Credit or the use of the proceeds thereof. No Indemnitee referred to in clause (b)
above shall be liable for any damages arising from the use by unintended recipients of any
information or other materials distributed by it through telecommunications, electronic or
other information transmission systems in connection with this Agreement or the other Loan
Documents or the transactions contemplated hereby or thereby.




     (e) Payments. All amounts due under this Section shall be payable promptly
after demand therefor.



     Section 13.2 Limitation of Liability. None of the Agent, the Issuing Bank, any
Lender, or any Affiliate, officer, director, employee, attorney, or agent thereof shall have any
liability with respect to, and the Borrower hereby waives, releases, and agrees not to sue any of
them upon, any claim for any special, indirect, incidental, or consequential damages suffered or
incurred by the Borrower in connection with, arising out of, or in any way related to, this
Agreement or any of the other Loan Documents, or any of the transactions contemplated by this
Agreement or any of the other Loan Documents, including without limitation, any damages suffered or
incurred by the Borrower in connection with Swing Loan Advances made by telephonic notice pursuant
to Section 2.8(a) hereto, except for such Person’s gross negligence or willful misconduct.



     Section 13.3 No Duty. All attorneys, accountants, appraisers, and other professional
Persons and consultants retained by the Agent, the Issuing Bank and the Lenders shall have the
right to act exclusively in the interest of the Agent, the Issuing Bank and the Lenders and shall
have no duty of disclosure, duty of loyalty, duty of care, or other duty or obligation of any type
or nature whatsoever to the Borrower or any of the Borrower’s shareholders or any other Person.



     Section 13.4 No Fiduciary Relationship. The relationship between the Borrower and
each of the Agent, the Issuing Bank and the Lenders is solely that of debtor and creditor, and
neither the Agent, the Issuing Bank nor any Lender has any fiduciary or other special relationship
with the Borrower, and no term or condition of any of the Loan Documents shall be construed so as
to deem the relationship between the Borrower and any of the Agent, the Issuing Bank and the
Lenders to be other than that of debtor and creditor.



     Section 13.5 Equitable Relief. The Borrower recognizes that in the event the Borrower
fails to pay, perform, observe, or discharge any or all of the Obligations, any remedy at law may
prove to be inadequate relief to the Agent, the Issuing Bank and the Lenders. The Borrower
therefore agrees that the Agent, the Issuing Bank and the Lenders, if the Agent, the Issuing Bank



71









 




or the Lenders so request, shall be entitled to temporary and permanent injunctive relief in any
such case without the necessity of proving actual damages.




     Section 13.6 No Waiver; Cumulative Remedies. No failure on the part of the Agent, the
Issuing Bank or any Lender to exercise and no delay in exercising, and no course of dealing with
respect to, any right, power, or privilege under this Agreement shall operate as a waiver thereof,
nor shall any single or partial exercise of any right, power, or privilege under this Agreement
preclude any other or further exercise thereof or the exercise of any other right, power, or
privilege. The rights and remedies provided for in this Agreement and the other Loan Documents are
cumulative and not exclusive of any rights and remedies provided by law.



     Section 13.7 Successors and Assigns.




     (a) Successors and Assigns Generally. The provisions of this Agreement shall
be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby, except that neither the Borrower nor any Obligated
Party may assign or otherwise transfer any of its rights or obligations hereunder without
the prior written consent of the Agent and each Lender and no Lender may assign or otherwise
transfer any of its rights or obligations hereunder except (i) to an assignee in accordance
with the provisions of clause (b) of this Section, (ii) by way of participation in
accordance with the provisions of clause (d) of this Section or (iii) by way of
pledge or assignment of a security interest subject to the restrictions of clause (f)
of this Section (and any other attempted assignment or transfer by any party hereto
shall be null and void). Nothing in this Agreement, expressed or implied, shall be
construed to confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby, Participants to the extent provided in clause
(d) of this Section and, to the extent expressly contemplated hereby, the Related
Parties of each of the Agent and the Lenders) any legal or equitable right, remedy or claim
under or by reason of this Agreement.




     (b) Assignments by Lenders. Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Agreement (including all
or a portion of its Commitment and the Loans at the time owing to it); provided that any
such assignment shall be subject to the following conditions:




               (i) Minimum Amounts.




     (A) in the case of an assignment of the entire remaining amount of the
assigning Lender’s Commitment and the Loans at the time owing to it or in
the case of an assignment to a Lender, an Affiliate of a Lender or an
Approved Fund, no minimum amount need be assigned; and




     (B) in any case not described in clause (b)(i)(A) of this
Section, the aggregate amount of the Commitment (which for this purpose
includes Loans outstanding thereunder) or, if the applicable Commitment is
not then in effect, the principal outstanding balance of the Loans of the
assigning Lender subject to each such assignment (determined as of the date
the Assignment and Assumption with respect to such assignment is delivered
to the Agent or, if “Trade Date” is specified in the Assignment



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and Assumption, as of the Trade Date) shall not be less than $5,000,000, in the
case of any assignment in respect of a revolving facility, or $1,000,000 in
the case of any assignment in respect of a term facility,
unless each of the Agent and, so long as no Default has occurred and is
continuing, the Borrower otherwise consents (each such consent not to be
unreasonably withheld or delayed).




               (ii) Proportionate Amounts. Each partial assignment shall be made as
an assignment of a proportionate part of all the assigning Lender’s rights and
obligations under this Agreement with respect to the Loan or the Commitment
assigned.




               (iii) Required Consents. No consent shall be required for any
assignment except to the extent required by clause (b)(i)(B) of this
Section and, in addition:




                    (A) the consent of the Borrower (such consent not to be unreasonably
withheld or delayed) shall be required unless (x) a Default has occurred and
is continuing at the time of such assignment or (y) such assignment is to a
Lender, an Affiliate of a Lender or an Approved Fund;




                    (B) the consent of the Agent (such consent not to be unreasonably
withheld or delayed) shall be required for assignments in respect of (i) an
unfunded or revolving facility if such assignment is to a Person that is not
a Lender with a Commitment in respect of such facility, an Affiliate of such
Lender or an Approved Fund with respect to such Lender or (ii) a funded term
facility to a Person who is not a Lender, an Affiliate of a Lender or an
Approved Fund;




                    (C) the consent of the Issuing Bank (such consent not to be
unreasonably withheld or delayed) shall be required for any assignment that
increases the obligation of the assignee to participate in exposure under
one or more Letters of Credit (whether or not then outstanding); and




                    (D) the consent of the Swing Lender (such consent not to be unreasonably
withheld or delayed) shall be required for any assignment in respect of
Revolving Credit Loans and Revolving Credit Commitments.




               (iv) Assignment and Assumption. The parties to each assignment shall
execute and deliver to the Agent an Assignment and Assumption, together with a
processing and recordation fee of $3,000, and the assignee, if it is not a Lender,
shall deliver to the Agent an Administrative Questionnaire.




               (v) No Assignment to Borrower. No such assignment shall be made to the
Borrower or any of the Borrower’s Affiliates or Subsidiaries.




               (vi) No Assignment to Natural Persons. No such assignment shall be
made to a natural person.



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Subject to acceptance and recording thereof by the Agent pursuant to clause (c) of
this Section, from and after the effective date specified in each Assignment and Assumption,
the assignee thereunder shall be a party to this Agreement and, to the extent of the
interest assigned by such Assignment and Assumption, have the rights and obligations of a
Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption, be released from its obligations under
this Agreement (and, in the case of an Assignment and Assumption covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to
be a party hereto) but shall continue to be entitled to the benefits of Sections 5.1
and 13.1 with respect to facts and circumstances occurring prior to the effective
date of such assignment. Any assignment or transfer by a Lender of rights or obligations
under this Agreement that does not comply with this Section shall be treated for purposes of
this Agreement as a sale by such Lender of a participation in such rights and obligations in
accordance with clause (d) of this Section.



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




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




     Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to
approve any amendment, modification or waiver of any provision of this Agreement; provided
that such agreement or instrument may provide that such Lender will not, without the consent
of the Participant, agree to any amendment, modification or waiver with respect to the
following that affects such Participant: (A) any increase of such Lender’s Commitments, (B)
any reduction of the principal amount of, or interest to be paid on, the Advances and LC
Participations of such Lender, (C) any reduction of any commitment fee or other amount
payable to such Lender under any Loan Document, or (D) any postponement of any date for the
payment of any amount payable in respect of the Advances or LC Participations of such
Lender. Subject to



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clause (e) of this Section, the Borrower agrees that each
Participant shall be entitled to the benefits of Section 5.1 to the same extent as
if it were a Lender and had acquired its interest by assignment pursuant to clause
(b) of this Section. To the extent permitted by
law, each Participant also shall be entitled to the benefits of Section 11.2(b)
as though it were a Lender, provided such Participant agrees to be subject to Sections
4.9(c) and 12.8 as though it were a Lender.




     (e) Limitations upon Participant Rights. A Participant shall not be entitled
to receive any greater payment under Sections 4.6 and 5.1 than the
applicable Lender would have been entitled to receive with respect to the participation sold
to such Participant, unless the sale of the participation to such Participant is made with
the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 4.6 unless the
Borrower is notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 4.6(e) as though it
were a Lender.




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



     Section 13.8 Survival. All representations and warranties made in this Agreement or
any other Loan Document or in any document, statement, or certificate furnished in connection with
this Agreement shall survive the execution and delivery of this Agreement and the other Loan
Documents, and no investigation by the Agent, the Issuing Bank or any Lender or any closing shall
affect the representations and warranties or the right of the Agent, the Issuing Bank or any Lender
to rely upon them. Without prejudice to the survival of any other obligation of the Borrower
hereunder, the obligations of the Borrower under Article V and Sections 13.1 and
13.2 shall survive repayment of the Notes and termination of the Commitments and the
Letters of Credit.



     Section 13.9 Amendments, Etc. No amendment or waiver of any provision of this
Agreement, the Notes, or any other Loan Document to which the Borrower or any Obligated Party is a
party, nor any consent to any departure by the Borrower or any Obligated Party therefrom, shall in
any event be effective unless the same shall be agreed or consented to by Required Lenders and the
Borrower or the Obligated Party, as applicable, and each such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given; provided, that no
amendment, waiver, or consent shall: (a) increase the Commitment of any Lender or subject any
Lender to any additional obligations without the written consent of such Lender; (b) reduce the
principal of, or interest on, the Notes or any fees or other amounts due to the Lenders (or any of
them) hereunder or under any other Loan Document without the written consent of each Lender
directly affected thereby; (c) postpone any date fixed for any payment of principal of, or interest
on, the Notes or Letter of Credit Disbursements or any fees or other amounts due to the Lenders (or
any of them) hereunder or under any other Loan Document without the written consent of each Lender
directly affected thereby; (d) waive any of the conditions specified in Article VI without
the written consent of each Lender; (e) change the percentage of the Commitments or of the
aggregate unpaid principal amount of the Notes or



75









 





Letter of Credit Liabilities or the number of
Lenders which shall be required for the Lenders or any of them to take any action under this
Agreement without the written consent of each Lender; (f) change any provision contained in this
Section 13.9 without the written consent of each
Lender; (g) release the Borrower from any of its obligations under this Agreement or the other
Loan Documents or, except as provided in Section 12.12, release any Guarantor from its
obligations under its Guaranty without the written consent of each Lender; and (h) release any
Collateral securing the Guaranty, or the Obligations except in accordance with and as contemplated
by the Loan Documents without the written consent of each Lender. Notwithstanding anything to the
contrary contained in this Section, no amendment, waiver, or consent shall be made (i) with respect
to Article XII hereof without the prior written consent of the Agent, (ii) with respect to
Section 2.8 hereof without the prior written consent of the Swing Lender, or (iii) with
respect to Article III hereof without the prior written consent of the Issuing Bank.



     Section 13.10 Maximum Interest Rate. No provision of this Agreement or of any other
Loan Document shall require the payment or the collection of interest in excess of the maximum
amount permitted by applicable law. If any excess of interest in such respect is hereby provided
for, or shall be adjudicated to be so provided, in any Loan Document or otherwise in connection
with this loan transaction, the provisions of this Section shall govern and prevail and neither the
Borrower nor the sureties, guarantors, successors, or assigns of the Borrower shall be obligated to
pay the excess amount of such interest or any other excess sum paid for the use, forbearance, or
detention of sums loaned pursuant hereto. In the event any Lender ever receives, collects, or
applies as interest any such sum, such amount which would be in excess of the maximum amount
permitted by applicable law shall be applied as a payment and reduction of the principal of the
indebtedness evidenced by the Notes and the LC Participations; and, if the principal of the Notes
and the LC Participations has been paid in full, any remaining excess shall forthwith be paid to
the Borrower. In determining whether or not the interest paid or payable exceeds the Maximum Rate,
the Borrower and each Lender shall, to the extent permitted by applicable law, (a) characterize any
non-principal payment as an expense, fee, or premium rather than as interest, (b) exclude voluntary
prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread the total
amount of interest throughout the entire contemplated term of the indebtedness evidenced by the
Notes and LC Participations so that interest for the entire term does not exceed the Maximum Rate.



     Section 13.11 Notices.




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




               (i) if to the Borrower or any Obligated Party, to it at the address specified
below the Borrower’s name on the signature page hereof;




               (ii) if to the Agent, to it at the address specified below its name on the
signature page hereof;



76









 






               (iii) if to the Issuing Bank, to it at the address specified below its name on
the signature page hereof; and




               (iv) if to a Lender, to it at its address (or telecopier number) set forth in
its Administrative Questionnaire.


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





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




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




     (iii) The Borrower agrees that any Agent may make any material delivered by the
Borrower to such Agent, as well as any amendments, waivers, consents, and other
written information, documents, instruments and other materials relating to the
Borrower, any of its Subsidiaries, or any other materials or matters relating to
this Agreement, the other Loan Documents or any of the transactions contemplated
hereby (collectively, the “Communications”) available to the Lenders by
posting such notices on an electronic delivery system (which may be provided by an
Agent, an Affiliate of an Agent, or any Person that is not an Affiliate of an
Agent), such as IntraLinks, or a substantially similar electronic system (the
“Platform”). The Borrower acknowledges that (A) the distribution of
material through an electronic medium is not necessarily secure and that there are



77









 







confidentiality and other risks associated with such distribution, (B) the Platform
is provided “as is” and “as available” and (C) neither any Agent nor any of its
Affiliates warrants the accuracy, completeness, timeliness, sufficiency, or
sequencing of the Communications posted on the Platform. Each Agent and its
Affiliates expressly disclaim with respect to the Platform any liability for errors
in transmission, incorrect or incomplete downloading, delays in posting or delivery,
or problems accessing the Communications posted on the Platform and any liability
for any losses, costs, expenses or liabilities that may be suffered or incurred in
connection with the Platform. 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 any Agent or any of its Affiliates in
connection with the Platform.




     (iv) Each Lender agrees that notice to it specifying that any Communication has
been posted to the Platform shall for purposes of this Agreement constitute
effective delivery to such Lender of such information, documents or other materials
comprising such Communication. Each Lender agrees (A) to notify, on or before the
date such Lender becomes a party to this Agreement, each Agent in writing of such
Lender’s e-mail address to which a notice may be sent (and from time to time
thereafter to ensure that each Agent has on record an effective e-mail address for
such Lender) and (B) that any notice may be sent to such e-mail address.




     (c) Change of Address, Etc. Any party hereto may change its address or
telecopier number for notices and other communications hereunder by notice to the other
parties hereto.



     Section 13.12 Governing Law; Venue; Service of Process.




     (a) Governing Law. This Agreement shall be governed by, and construed in
accordance with, the law of the State of Texas.




     (b) Submission to Jurisdiction. The Borrower and each Obligated Party
irrevocably and unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of the courts of the State of Texas sitting in Travis County and of the United
States District Court Western District of Texas sitting in Travis County; and any appellate
court from any thereof, in any action or proceeding arising out of or relating to this
Agreement or any other Loan Document, or for recognition or enforcement of any judgment, and
each of the parties hereto irrevocably and unconditionally agrees that all claims in respect
of any such action or proceeding may be heard and determined in such Texas State court or,
to the fullest extent permitted by applicable law, in such Federal court. Each of the
parties hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or in any
other manner provided by law. Nothing in this Agreement or in any other Loan Document shall
affect any right that the Agent, any Lender or the Issuing Bank may otherwise have to bring
any action or proceeding relating to this Agreement or any other Loan Document against the
Borrower or any Obligated Party or its properties in the courts of any jurisdiction.



78









 






     (c) Waiver of Venue. The Borrower and each Obligated Party irrevocably and
unconditionally waives, to the fullest extent permitted by applicable law, any
objection that it may now or hereafter have to the laying of venue of any action or
proceeding arising out of or relating to this Agreement or any other Loan Document in any
court referred to in clause (b) of this Section. Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by applicable law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such court.




     (d) Service of Process. Each party hereto irrevocably consents to service of
process in the manner provided for notices in Section 13.11. Nothing in this
Agreement will affect the right of any party hereto to serve process in any other manner
permitted by applicable law.



     Section 13.13 Binding Arbitration.




     (a) Arbitration. The parties hereto agree, upon demand by any party, to submit
to binding arbitration all claims, disputes and controversies between or among them (and
their respective employees, officers, directors, attorneys, and other agents), whether in
tort, contract or otherwise arising out of or relating to in any way (i) the loan and
related Loan Documents which are the subject of this Agreement and its negotiation,
execution, collateralization, administration, repayment, modification, extension,
substitution, formation, inducement, enforcement, default or termination; or (ii) requests
for additional credit.




     (b) Governing Rules. Any arbitration proceeding will (i) proceed in a location
in Texas selected by the American Arbitration Association (“AAA”); (ii) be governed
by the Federal Arbitration Act (Title 9 of the United States Code), notwithstanding any
conflicting choice of law provision in any of the documents between the parties; and (iii)
be conducted by the AAA, or such other administrator as the parties shall mutually agree
upon, in accordance with the AAA’s commercial dispute resolution procedures, unless the
claim or counterclaim is at least $1,000,000.00 exclusive of claimed interest, arbitration
fees and costs in which case the arbitration shall be conducted in accordance with the AAA’s
optional procedures for large, complex commercial disputes (the commercial dispute
resolution procedures or the optional procedures for large, complex commercial disputes to
be referred to, as applicable, as the “Rules”). If there is any inconsistency
between the terms hereof and the Rules, the terms and procedures set forth herein shall
control. Any party who fails or refuses to submit to arbitration following a demand by any
other party shall bear all costs and expenses incurred by such other party in compelling
arbitration of any dispute. Nothing contained herein shall be deemed to be a waiver by any
party that is a bank of the protections afforded to it under 12 U.S.C. §91 or any similar
applicable state law.




     (c) No Waiver of Provisional Remedies, Self-Help and Foreclosure. The
arbitration requirement does not limit the right of any party to (i) foreclose against real
or personal property collateral; (ii) exercise self-help remedies relating to collateral or
proceeds of collateral such as setoff or repossession; or (iii) obtain provisional or
ancillary remedies such as replevin, injunctive relief, attachment or the appointment of a
receiver, before during or after the pendency of any arbitration proceeding. This exclusion
does not constitute a waiver of the right or obligation of any party to submit



79









 






any dispute
to arbitration or reference hereunder, including those arising from the exercise of the
actions detailed in clauses (i), (ii) and (iii) of this Section
13.13(c).




     (d) Arbitrator Qualifications and Powers. Any arbitration proceeding in which
the amount in controversy is $5,000,000.00 or less will be decided by a single arbitrator
selected according to the Rules, and who shall not render an award of greater than
$5,000,000.00. Any dispute in which the amount in controversy exceeds $5,000,000.00 shall
be decided by majority vote of a panel of three arbitrators; provided however, that all
three arbitrators must actively participate in all hearings and deliberations. The
arbitrator will be a neutral attorney licensed in the State of Texas with a minimum of ten
years experience in the substantive law applicable to the subject matter of the dispute to
be arbitrated. The arbitrator will determine whether or not an issue is arbitratable and
will give effect to the statutes of limitation in determining any claim. In any arbitration
proceeding the arbitrator will decide (by documents only or with a hearing at the
arbitrator’s discretion) any pre-hearing motions which are similar to motions to dismiss for
failure to state a claim or motions for summary adjudication. The arbitrator shall resolve
all disputes in accordance with the substantive law of Texas and may grant any remedy or
relief that a court of such state could order or grant within the scope hereof and such
ancillary relief as is necessary to make effective any award. The arbitrator shall also
have the power to award recovery of all costs and fees, to impose sanctions and to take such
other action as the arbitrator deems necessary to the same extent a judge could pursuant to
the Federal Rules of Civil Procedure, the Texas Rules of Civil Procedure or other applicable
law. Judgment upon the award rendered by the arbitrator may be entered in any court having
jurisdiction. The institution and maintenance of an action for judicial relief or pursuit
of a provisional or ancillary remedy shall not constitute a waiver of the right of any
party, including the plaintiff, to submit the controversy or claim to arbitration if any
other party contests such action for judicial relief.




     (e) Discovery. In any arbitration proceeding discovery will be permitted in
accordance with the Rules. All discovery shall be expressly limited to matters directly
relevant to the dispute being arbitrated and must be completed no later than 20 days before
the hearing date and within 180 days of the filing of the dispute with the AAA. Any
requests for an extension of the discovery periods, or any discovery disputes, will be
subject to final determination by the arbitrator upon a showing that the request for
discovery is essential for the party’s presentation and that no alternative means for
obtaining information is available.




     (f) Class Proceedings and Consolidations. The resolution of any dispute
arising pursuant to the terms of this Agreement shall be determined by a separate
arbitration proceeding and such dispute shall not be consolidated with other disputes or
included in any class proceeding.




     (g) Payment Of Arbitration Costs And Fees. The arbitrator shall award all
costs and expenses of the arbitration proceeding.




     (h) Miscellaneous. To the maximum extent practicable, the AAA, the arbitrators
and the parties shall take all action required to conclude any arbitration proceeding within
180 days of the filing of the dispute with the AAA. No arbitrator or other party to an
arbitration proceeding may disclose the existence, content or results



80









 






thereof, except for
disclosures of information by a party required in the ordinary course of its business or by
applicable law or regulation. If more than one agreement for arbitration by or between the
parties potentially applies to a dispute, the arbitration
provision most directly related to the Loan Documents or the subject matter of the
dispute shall control. This arbitration provision shall survive termination, amendment or
expiration of any of the Loan Documents or any relationship between the parties.



     Section 13.14 Counterparts.




     (a) Counterparts; Integration; Effectiveness. This Agreement may be executed
in counterparts (and by different parties hereto in different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single
contract. This Agreement and the other Loan Documents, and any separate letter agreements
with respect to fees payable to the Agent, 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. Except as provided
in Article VI, this Agreement shall become effective when it shall have been
executed by the Agent and when the Agent shall have received counterparts hereof that, when
taken together, bear the signatures of each of the other parties hereto. Delivery of an
executed counterpart of a signature page of this Agreement by telecopy shall be effective as
delivery of a manually executed counterpart of this Agreement.




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



     Section 13.15 Severability. Any provision of this Agreement held by a court of
competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder
of this Agreement and the effect thereof shall be confined to the provision held to be invalid or
illegal.



     Section 13.16 Headings. The headings, captions, and arrangements used in this
Agreement are for convenience only and shall not affect the interpretation of this Agreement.



     Section 13.17 Construction. The Borrower, the Agent, the Issuing Bank and each Lender
acknowledge that each of them has had the benefit of legal counsel of its own choice and has been
afforded an opportunity to review this Agreement and the other Loan Documents with its legal
counsel and that this Agreement and the other Loan Documents shall be construed as if jointly
drafted by the parties hereto.



     Section 13.18 Independence of Covenants. All covenants hereunder shall be given
independent effect so that if a particular action or condition is not permitted by any of such
covenants, the fact that it would be permitted by an exception to, or be otherwise within the



81









 




limitations of, another covenant shall not avoid the occurrence of a Default if such action is
taken or such condition exists.




     Section 13.19 Treatment of Certain Information; Confidentiality. Each of the Agent,
the Lenders and the Issuing Bank agrees to maintain the confidentiality of the Information (as
defined below), except that Information may be disclosed (a) to its Affiliates and to its and its
Affiliates’ respective partners, directors, officers, employees, agents, advisors and other
representatives (it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority purporting to have
jurisdiction over it (including any self-regulatory authority, such as the National Association of
Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the
exercise of any remedies hereunder or under any other Loan Document or any action or proceeding
relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or
thereunder, (f) subject to an agreement containing provisions substantially the same as those of
this Section, to (i) any assignee of or Participant in, or any prospective assignee of or
Participant in, any of its rights or obligations under this Agreement or (ii) any actual or
prospective counterparty (or its advisors) to any swap or derivative transaction relating to the
Borrower and its obligations, (g) with the consent of the Borrower or (h) to the extent such
Information (x) becomes publicly available other than as a result of a breach of this Section or
(y) becomes available to the Agent, any Lender, the Issuing Bank or any of their respective
Affiliates on a nonconfidential basis from a source other than the Borrower.



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



     Section 13.20 USA Patriot Act Notice. Each Lender, the Issuing Bank and the Agent
(for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the
requirements of the USA Patriot Act (Title III of Pub.L.No. 107.56 (signed into law October 26,
2001)) (the “Act”), it is required to obtain, verify and record information that identifies
the Borrower, which information includes the name and address of the Borrower and other information
that will allow such Lender, the Issuing Bank or the Agent, as applicable, to identify the Borrower
in accordance with the Act.



     Section 13.21 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT



82









 




OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PERSON HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.




     Section 13.22 ENTIRE AGREEMENT. THIS AGREEMENT, THE NOTES, AND THE OTHER LOAN
DOCUMENTS REFERRED TO HEREIN REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES HERETO AND MAY NOT BE
CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR
DISCUSSIONS OF THE PARTIES HERETO. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES
HERETO.



     Section 13.23 Amendment and Restatement. This Agreement amends and restates in its
entirety the Existing Credit Agreement. The execution of this Agreement and the other Loan
Documents executed in connection herewith does not extinguish the indebtedness outstanding in
connection with the Existing Credit Agreement nor does it constitute a novation with respect to
such indebtedness. THE BORROWER REPRESENTS AND WARRANTS THAT AS OF THE DATE HEREOF THERE ARE NO
CLAIMS OR OFFSETS AGAINST OR DEFENSES OR COUNTERCLAIMS TO ITS OR ANY OBLIGATED PARTIES’ OBLIGATIONS
UNDER THE EXISTING CREDIT AGREEMENT, THE OTHER LOAN DOCUMENTS AND THE DOCUMENTATION RELATING TO THE
DEPOSIT AND CASH MANAGEMENT SERVICES. On the date hereof, with respect to the Lenders party to the
Existing Credit Agreement which are continuing as Lenders under this Agreement (the “Continuing
Lenders”), the Agent shall make the appropriate allocations and adjustments in the initial
funding instructions to the Lenders to reflect the modifications affected by the Loan Documents to
each Continuing Lender’s Commitment.



[Remainder of Page Intentionally Left Blank.]




83









 





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



	 	 	 	 	 
	 	BORROWER:



EZCORP, INC.

 	 
	 	By:  	 	 
	 	 	Daniel N. Tonissen 	 
	 	 	Senior Vice President 	 



Address for Notices:




1901 Capital Parkway

Austin, TX 78746

Fax No.: (512) 314-3404

Telephone No.: (512) 314-2289

Email: dtonissen@ezcorp.com

Attention:    Daniel N. Tonissen

      
             Chief Financial Officer




With a courtesy copy to:




Connie Kondik

Vice President & General Counsel

EZCORP, Inc.

1901 Capital Parkway

Austin, TX 78746

Fax No.: (512) 314-3463

Telephone No.: (512) 314-3462

Email: connie_kondik@ezcorp.com




(Signature Page to Fifth Amended and Restated Credit Agreement)




 









 








	 	 	 	 	 
	 	AGENT, ISSUING BANK AND LENDERS:



WELLS FARGO BANK, NATIONAL ASSOCIATION, as Agent, Issuing Bank, Swing Lender and a Lender

 	 
	 	By:  	 	 
	 	 	Michael Brewer 	 
	 	 	Vice President 	 



Address for Notices:




111 Congress Avenue, Suite 2200

Austin, Texas 78701

Fax No.: (512) 344-7318

Telephone No.: (512) 344-7037

Email: michael.brewer@wellsfargo.com

Attention: Michael Brewer




Address for Operational Notices:




Wells Fargo Bank, N.A.

1700 Lincoln, 3rd Floor

MAC # C7300-034

Denver, Colorado 80274

Fax No.: (303) 863-5533

Telephone No.: (303) 863-5415

Email: kevin.j.rapp@wellsfargo.com

Attention: Kevin J. Rapp




with a copy to:




Winstead PC

5400 Renaissance Tower

1201 Elm Street

Dallas, Texas 75270

Fax No.: (214) 745-5390

Telephone No.: (214) 745-5265

Email: rmatthews@winstead.com

Attention: T. Randall Matthews, Esq.




Lending Office for Base Rate Advances and Eurodollar

Advances:




111 Congress Avenue, Suite 2200

Austin, Texas 78701




(Signature Page to Fifth Amended and Restated Credit Agreement)




 









 








	 	 	 	 	 
	 	____________________________________,
as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 



Address for Notices and Applicable Lending Office:

_________________________________________

_________________________________________




Fax No.: __________________________________

Telephone No.: _____________________________

Attn: ____________________________________




Lending Office for Base Rate Advances and Eurodollar

Advances:




________________________________________

________________________________________

Attn: ___________________________________




(Signature Page to Fifth Amended and Restated Credit Agreement)




 









 








SCHEDULE 1.1(a)




Commitments




	 	 	 	 	 	 	 	 	 
	 	 	Revolving Credit	 	Term Loan
	Lender:	 	Commitment:	 	Commitment:
	Wells Fargo Bank, National
Association
	 	$	33,333,334	 	 	$	16,666,667	 
	Union Bank of California, N.A.
	 	$	16,666,666	 	 	$	8,333,333	 
	Guaranty Bank
	 	$	13,333,334	 	 	$	6,666,667	 
	U.S. Bank National Association
	 	$	10,000,000	 	 	$	5,000,000	 
	Allied Irish Bank plc
	 	$	6,666,666	 	 	$	3,333,333	 
	Total:
	 	$	80,000,000	 	 	$	40,000,000	 






(Signature Page to Fifth Amended and Restated Credit Agreement)