Document:

exv10w18

 

EXHIBIT 10.18

Execution
Copy

 

AMENDED AND RESTATED CREDIT AGREEMENT

dated as of March 31, 2006

among

ENNIS, INC.,

as the Company

EACH OF THE OTHER CO-BORROWERS PARTY HERETO,

as Co-Borrowers

THE VARIOUS FINANCIAL INSTITUTIONS PARTY HERETO,

as Lenders

LASALLE BANK NATIONAL ASSOCIATION,

as Administrative Agent

BANK OF AMERICA, N.A.,

as Documentation Agent,

JPMORGAN CHASE BANK, N.A.,

as Syndication Agent,

LASALLE BANK NATIONAL ASSOCIATION,

as Arranger

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	SECTION 1 DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	1.1 Definitions
	 	 	1	 
	1.2 Other Interpretive Provisions
	 	 	16	 
	 
	 	 	 	 
	SECTION 2 COMMITMENTS OF THE LENDERS; BORROWING, CONVERSION AND
LETTER OF CREDIT

               PROCEDURES
	 	 	16	 
	 
	 	 	 	 
	2.1 Commitments
	 	 	16	 
	2.1.1 Revolving Loan Commitment
	 	 	17	 
	2.1.2 Increase in Revolving Commitment
	 	 	17	 
	2.1.3 Term Loan Commitment
	 	 	17	 
	2.1.4 L/C Commitment
	 	 	17	 
	2.2 Loan Procedures
	 	 	18	 
	2.2.1 Various Types of Loans
	 	 	18	 
	2.2.2 Borrowing Procedures
	 	 	18	 
	2.2.3 Conversion and Continuation Procedures
	 	 	18	 
	2.2.4 Swing Line Facility
	 	 	19	 
	2.3 Letter of Credit Procedures
	 	 	21	 
	2.3.1 L/C Applications
	 	 	21	 
	2.3.2 Participations in Letters of Credit
	 	 	22	 
	2.3.3 Reimbursement Obligations
	 	 	22	 
	2.3.4 Funding by Lenders to Issuing Lender
	 	 	23	 
	2.4 Commitments Several
	 	 	23	 
	2.5 Certain Conditions
	 	 	24	 
	2.6 Appointment of the Parent as Agent for Co-Borrowers; Reliance by
Administrative Agent
	 	 	24	 
	 
	 	 	 	 
	SECTION 3 EVIDENCING OF LOANS
	 	 	24	 
	 
	 	 	 	 
	3.1 Notes
	 	 	24	 
	3.2 Recordkeeping
	 	 	24	 
	 
	 	 	 	 
	SECTION 4 INTEREST
	 	 	24	 
	 
	 	 	 	 
	4.1 Interest Rates
	 	 	24	 
	4.2 Interest Payment Dates
	 	 	25	 
	4.3 Setting and Notice of LIBOR Rates
	 	 	25	 
	4.4 Computation of Interest
	 	 	25	 
	 
	 	 	 	 
	SECTION 5 FEES
	 	 	25	 
	 
	 	 	 	 
	5.1 Non-Use Fee
	 	 	25	 
	5.2 Letter of Credit Fees
	 	 	25	 
	5.3 Administrative Agent’s Fees
	 	 	26	 

 -i-

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	SECTION 6 REDUCTION OR TERMINATION OF THE REVOLVING COMMITMENT; PREPAYMENTS
	 	 	26	 
	 
	 	 	 	 
	6.1 Reduction or Termination of the Revolving Commitment
	 	 	26	 
	6.1.1 Voluntary Reduction or Termination of the Revolving Commitment
	 	 	26	 
	6.1.2 INTENTIONALLY OMITTED
	 	 	26	 
	6.1.3 All Reductions of the Revolving Commitment
	 	 	26	 
	6.2 Prepayments
	 	 	26	 
	6.2.1 Voluntary Prepayments
	 	 	26	 
	6.2.2 Mandatory Prepayments
	 	 	27	 
	6.3 Manner of Prepayments
	 	 	27	 
	6.3.1 All Prepayments
	 	 	27	 
	6.4 Repayments
	 	 	27	 
	6.4.1 Revolving Loans
	 	 	27	 
	 
	 	 	 	 
	SECTION 7 MAKING AND PRORATION OF PAYMENTS; SETOFF; TAXES
	 	 	27	 
	 
	 	 	 	 
	7.1 Making of Payments
	 	 	27	 
	7.2 Application of Certain Payments
	 	 	27	 
	7.3 Due Date Extension
	 	 	28	 
	7.4 Setoff
	 	 	28	 
	7.5 Proration of Payments
	 	 	28	 
	7.6 Taxes
	 	 	28	 
	 
	 	 	 	 
	SECTION 8 INCREASED COSTS; SPECIAL PROVISIONS FOR LIBOR LOANS
	 	 	30	 
	 
	 	 	 	 
	8.1 Increased Costs
	 	 	30	 
	8.2 Basis for Determining Interest Rate Inadequate or Unfair
	 	 	31	 
	8.3 Changes in Law Rendering LIBOR Loans Unlawful
	 	 	31	 
	8.4 Funding Losses
	 	 	32	 
	8.5 Right of Lenders to Fund through Other Offices
	 	 	32	 
	8.6 Discretion of Lenders as to Manner of Funding
	 	 	32	 
	8.7 Mitigation of Circumstances; Replacement of Lenders
	 	 	32	 
	8.8 Conclusiveness of Statements; Survival of Provisions
	 	 	33	 
	 
	 	 	 	 
	SECTION 9 REPRESENTATIONS AND WARRANTIES
	 	 	33	 
	 
	 	 	 	 
	9.1 Organization
	 	 	33	 
	9.2 Authorization; No Conflict
	 	 	33	 
	9.3 Validity and Binding Nature
	 	 	34	 
	9.4 Financial Condition
	 	 	34	 
	9.5 No Material Adverse Change
	 	 	34	 
	9.6 Litigation and Contingent Liabilities
	 	 	34	 
	9.7 Ownership of Properties; Liens
	 	 	34	 

 -ii-

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	9.8 Equity Ownership; Subsidiaries
	 	 	34	 
	9.9 Pension Plans
	 	 	35	 
	9.10 Investment Company Act
	 	 	35	 
	9.11 Public Utility Holding Company Act
	 	 	35	 
	9.12 Regulations T, U and X
	 	 	35	 
	9.13 Taxes
	 	 	36	 
	9.14
Solvency, etc.
	 	 	36	 
	9.15 Environmental Matters
	 	 	36	 
	9.16 Insurance
	 	 	36	 
	9.17 Real Property
	 	 	37	 
	9.18 Information
	 	 	37	 
	9.19 Intellectual Property
	 	 	37	 
	9.20 Burdensome Obligations
	 	 	37	 
	9.21 Labor Matters
	 	 	37	 
	9.22 No Default
	 	 	37	 
	 
	 	 	 	 
	SECTION 10 AFFIRMATIVE COVENANTS
	 	 	38	 
	 
	 	 	 	 
	10.1 Reports, Certificates and Other Information
	 	 	38	 
	10.1.1 Annual Report
	 	 	38	 
	10.1.2 Interim Reports
	 	 	38	 
	10.1.3 Compliance Certificates
	 	 	38	 
	10.1.4 Reports to the SEC and to Shareholders
	 	 	38	 
	10.1.5 Notice of Default, Litigation and ERISA Matters
	 	 	38	 
	10.1.6 Management Reports
	 	 	39	 
	10.1.7 Projections
	 	 	39	 
	10.1.8 Subordinated Debt and Related Transaction Notices
	 	 	40	 
	10.1.9 Other Information
	 	 	40	 
	10.2 Books, Records and Inspections
	 	 	40	 
	10.3 Maintenance of Property; Insurance
	 	 	40	 
	10.4 Compliance with Laws; Payment of Taxes and Liabilities
	 	 	41	 
	10.5
Maintenance of Existence, etc.
	 	 	42	 
	10.6 Use of Proceeds
	 	 	42	 
	10.7 Employee Benefit Plans
	 	 	42	 
	10.8 Environmental Matters
	 	 	42	 
	10.9 Further Assurances
	 	 	43	 
	 
	 	 	 	 
	SECTION 11 NEGATIVE COVENANTS
	 	 	43	 
	 
	 	 	 	 
	11.1 Debt
	 	 	43	 
	11.2 Liens
	 	 	44	 
	11.3 Operating Leases
	 	 	45	 
	11.4 Restricted Payments
	 	 	45	 
	11.5 Mergers, Consolidations, Sales
	 	 	45	 

 -iii-

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	11.6 Modification of Organizational Documents; Factoring Facility
	 	 	47	 
	11.7 Transactions with Affiliates
	 	 	47	 
	11.8 Unconditional Purchase Obligations
	 	 	47	 
	11.9 Inconsistent Agreements
	 	 	47	 
	11.10 Business Activities
	 	 	47	 
	11.11 Investments
	 	 	48	 
	11.12 Restriction of Amendments to Certain Documents
	 	 	48	 
	11.13 Fiscal Year
	 	 	48	 
	11.14 Financial Covenants
	 	 	48	 
	11.14.1 Fixed Charge Coverage Ratio
	 	 	48	 
	11.14.2 Total Funded Debt to EBITDA Ratio
	 	 	49	 
	11.14.3 Minimum Net Worth
	 	 	49	 
	11.15 Cancellation of Debt
	 	 	49	 
	11.16 Contingent Liabilities
	 	 	49	 
	 
	 	 	 	 
	SECTION 12
EFFECTIVENESS; CONDITIONS OF LENDING, ETC.
	 	 	49	 
	 
	 	 	 	 
	12.1 Initial Credit Extension
	 	 	49	 
	12.1.1   Notes
	 	 	49	 
	12.1.2   Authorization Documents
	 	 	50	 
	12.1.3
  Consents, etc.
	 	 	50	 
	12.1.4   Letter of Direction
	 	 	50	 
	12.1.5   Security Agreement
	 	 	50	 
	12.1.6   Perfection Certificate
	 	 	50	 
	12.1.7   Real Estate Documents
	 	 	50	 
	12.1.8   Opinions of Counsel
	 	 	51	 
	12.1.9
  Insurance
	 	 	51	 
	12.1.10 Payment of Fees
	 	 	51	 
	12.1.11 Solvency Certificate
	 	 	52	 
	12.1.12 Pro Forma; Financial Statements
	 	 	52	 
	12.1.13 Environmental Reports
	 	 	52	 
	12.1.14 Search Results; Lien Terminations
	 	 	52	 
	12.1.15 Filings, Registrations and Recordings
	 	 	52	 
	12.1.16 Closing Certificate, Consents and Permits
	 	 	52	 
	12.1.17 Account Control Agreements
	 	 	52	 
	12.1.18 Other
	 	 	52	 
	12.2 Conditions
	 	 	53	 
	12.2.1
  Compliance with Warranties, No Default, etc.
	 	 	53	 
	12.2.2
  Confirmatory Certificate
	 	 	53	 
	 
	 	 	 	 
	SECTION 13 EVENTS OF DEFAULT AND THEIR EFFECT
	 	 	53	 
	 
	 	 	 	 
	13.1 Events of Default
	 	 	53	 
	13.1.1
  Non-Payment of the Loans, etc.
	 	 	53	 

 -iv-

 

 

TABLE
OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	13.1.2
  Non-Payment of Other Debt
	 	 	53	 
	13.1.3   Other Material Obligations
	 	 	54	 
	13.1.4
  Bankruptcy, Insolvency, etc.
	 	 	54	 
	13.1.5   Non-Compliance with Loan Documents
	 	 	54	 
	13.1.6   Representations; Warranties
	 	 	54	 
	13.1.7   Pension Plans
	 	 	54	 
	13.1.8   Judgments
	 	 	54	 
	13.1.9
  Invalidity of Collateral Documents, etc.
	 	 	55	 
	13.1.10
Invalidity of Subordination Provisions, etc.
	 	 	55	 
	13.1.11 Change of Control
	 	 	55	 
	13.2 Effect of Event of Default
	 	 	55	 
	 
	 	 	 	 
	SECTION 14 THE AGENTS
	 	 	55	 
	 
	 	 	 	 
	14.1 Appointment and Authorization
	 	 	56	 
	14.2 Issuing Lender
	 	 	56	 
	14.3 Delegation of Duties
	 	 	56	 
	14.4 Exculpation of Administrative Agent
	 	 	56	 
	14.5 Reliance by Administrative Agent
	 	 	57	 
	14.6 Notice of Default
	 	 	57	 
	14.7 Credit Decision
	 	 	57	 
	14.8 Indemnification
	 	 	58	 
	14.9 Administrative Agent in Individual Capacity
	 	 	58	 
	14.10 Successor Administrative Agent
	 	 	59	 
	14.11 Collateral Matters
	 	 	59	 
	14.12 Administrative Agent May File Proofs of Claim
	 	 	59	 
	14.13 Other Agents; Arrangers and Managers
	 	 	60	 
	14.14 Relationship Among Lenders
	 	 	60	 
	14.15 Benefit of Article
	 	 	61	 
	 
	 	 	 	 
	SECTION 15 GENERAL
	 	 	61	 
	 
	 	 	 	 
	15.1 Waiver; Amendments
	 	 	61	 
	15.2 Confirmations
	 	 	61	 
	15.3 Notices
	 	 	61	 
	15.4 Computations
	 	 	62	 
	15.5 Costs, Expenses and Taxes
	 	 	62	 
	15.6 Assignments; Participations
	 	 	62	 
	15.6.1   Assignments
	 	 	62	 
	15.6.2   Participations
	 	 	63	 
	15.7 Register
	 	 	64	 
	15.8 GOVERNING LAW
	 	 	64	 
	15.9 Confidentiality
	 	 	64	 
	15.10 Severability
	 	 	65	 

 -v-

 

 

TABLE
OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	15.11
  Nature of Remedies
	 	 	65	 
	15.12   Entire Agreement
	 	 	66	 
	15.13   Counterparts
	 	 	66	 
	15.14   Successors and Assigns
	 	 	66	 
	15.15   Captions
	 	 	66	 
	15.16   Customer Identification — USA Patriot Act Notice
	 	 	66	 
	15.17   INDEMNIFICATION BY THE COMPANY
	 	 	66	 
	15.18   Nonliability of Lenders
	 	 	67	 
	15.19   FORUM SELECTION AND CONSENT TO JURISDICTION
	 	 	68	 
	15.20   WAIVER OF JURY TRIAL
	 	 	68	 
	 
	 	 	 	 
	SECTION 16 CROSS-GUARANTY
	 	 	69	 
	 
	 	 	 	 
	16.1   Cross-Guaranty
	 	 	69	 
	16.2   Waivers by Co-Borrowers
	 	 	69	 
	16.3   Benefit of Guaranty
	 	 	69	 
	16.4
  Waiver of Subrogation, Etc.
	 	 	69	 
	16.5   Election of Remedies
	 	 	70	 
	16.6   Limitation
	 	 	70	 
	16.7   Contribution with Respect to Guaranty Obligations
	 	 	70	 
	16.8   Liability Cumulative
	 	 	71	 
	16.9   Stay of Acceleration
	 	 	71	 
	16.10 Benefit to Co-Borrowers
	 	 	72	 

 -vi-

 

 

ANNEXES

	 	 	 
	ANNEX A

	 	Lenders and Pro Rata Shares
	ANNEX B

	 	Addresses for Notices

SCHEDULES

	 	 	 
	SCHEDULE 9.6

	 	Litigation and Contingent Liabilities
	SCHEDULE 9.8

	 	Subsidiaries
	SCHEDULE 9.16

	 	Insurance
	SCHEDULE 9.17

	 	Real Property
	SCHEDULE 9.21

	 	Labor Matters
	SCHEDULE 11.1

	 	Existing Debt
	SCHEDULE 11.2

	 	Existing Liens
	SCHEDULE 11.11

	 	Investments
	SCHEDULE 12.1

	 	Debt to be Repaid

EXHIBITS

	 	 	 
	EXHIBIT A-1

	 	Form of Revolving Note
	EXHIBIT A-2

	 	Form of Swing Line Note
	EXHIBIT B

	 	Form of Compliance Certificate (Section 10.1.3)
	EXHIBIT C

	 	Form of Assignment Agreement (Section 15.6.1)
	EXHIBIT D

	 	Form of Notice of Borrowing (Section 2.2.2)
	EXHIBIT E

	 	Form of Notice of Conversion/Continuation (Section 2.2.3)

 

 

AMENDED AND RESTATED CREDIT AGREEMENT

     THIS AMENDED AND RESTATED CREDIT AGREEMENT dated as of March 31, 2006 (this
“Agreement”) is entered into among ENNIS, INC. (the “Parent”), EACH OF THE PARTIES
LISTED UNDER THE HEADING CO-BORROWERS ON THE SIGNATURE PAGES HERETO (individually with the Parent
referred to herein as a “Co-Borrower” and collectively with the Parent called, the
“Company”), the financial institutions that are or may from time to time become parties
hereto (together with their respective successors and assigns, the “Lenders”) LASALLE BANK
NATIONAL ASSOCIATION (in its individual capacity, “LaSalle”), as administrative agent for
the Lenders, JPMORGAN CHASE BANK, N.A, as syndication agent (the “Syndication Agent”) and
BANK OF AMERICA, N.A., as documentation agent (the “Documentation Agent”).

     The Company, Lenders, LaSalle, Syndication Agent and Documentation Agent are parties to that
certain Credit Agreement dated as of November 19, 2004 (“November 19 Agreement”) and desire
to modify the terms thereof increasing the amount of the revolving loan, eliminating and paying off
in full the term loan and materially modifying various covenants thereunder. The Lenders have
agreed to make available to the Company a revolving credit facility (which includes letters of
credit) upon the terms and conditions set forth in this Agreement.

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

SECTION 1 DEFINITIONS.

     1.1 Definitions. When used herein the following terms shall have the following
meanings:

     Account Debtor is defined in the Security Agreement.

     Account or Accounts is defined in the UCC.

     Acquisition means any transaction or series of related transactions for the purpose of
or resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the
assets of a Person, or of all or substantially all of any business or division of a Person, (b) the
acquisition of in excess of 50% of the Capital Securities of any Person, or otherwise causing any
Person to become a Subsidiary, or (c) a merger or consolidation or any other combination with
another Person (other than a Person that is already a Subsidiary).

     Administrative Agent means LaSalle in its capacity as administrative agent for the
Lenders hereunder and any successor thereto in such capacity.

     Affected Loan — see Section 8.3.

     Affiliate of any Person means (a) any other Person which, directly or indirectly,
controls or is controlled by or is under common control with such Person, (b) any officer or
director of such Person and (c) with respect to any Lender, any entity administered or managed by
such

 

 

Lender or an Affiliate or investment advisor thereof and which is engaged in making,
purchasing, holding or otherwise investing in commercial loans. A Person shall be deemed to be
“controlled by” any other Person if such Person possesses, directly or indirectly, power to vote
10% or more of the securities (on a fully diluted basis) having ordinary voting power for the
election of directors or managers or power to direct or cause the direction of the management and
policies of such Person whether by contract or otherwise. Unless expressly stated otherwise
herein, neither the Administrative Agent nor any Lender shall be deemed an Affiliate of any Loan
Party.

     Agent Fee Letter means the Fee letter dated as of March 31, 2006 between the Parent
and the Administrative Agent.

     Aggregate Revolving Commitment means $150,000,000, as reduced from time to time
pursuant to Section 6.1.

     Agreement — see the Preamble.

     Allocable
Amount — see Section 16.7(b).

     Applicable Margin means, for any day, the rate per annum set forth below opposite the
level (the “Level”) then in effect, it being understood that the Applicable Margin for (i)
LIBOR Loans shall be the percentage set forth under the column “LIBOR Margin”, (ii) Base Rate Loans
shall be the percentage set forth under the column “Base Rate Margin”, (iii) the Non-Use Fee Rate
shall be the percentage set forth under the column “Non-Use Fee Rate” and (iv) the L/C Fee shall be
the percentage set forth under the column “L/C Fee Rate”:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Total Funded Debt	 	LIBOR	 	Base Rate	 	Non-Use	 	L/C Fee
	Level	 	to EBITDA Ratio	 	Margin	 	Margin	 	Fee Rate	 	Rate
	I

	 	Greater than or
equal to 2.50:1
	 	 	1.50	%	 	 	0	%	 	 	0.25	%	 	 	1.50	%
	II

	 	Greater than or
equal to 2.00:1 but
less than 2.50:1
	 	 	1.25	%	 	 	0	%	 	 	0.225	%	 	 	1.25	%
	III

	 	Greater than or
equal to 1.50:1 but
less than 2.00:1
	 	 	1.00	%	 	 	0	%	 	 	0.20	%	 	 	1.00	%
	IV

	 	Greater than or
equal to 1.00:1 but
less than 1.50:1
	 	 	0.75	%	 	 	0	%	 	 	0.175	%	 	 	0.75	%
	V

	 	Less than 1.00:1
	 	 	0.50	%	 	 	0	%	 	 	0.15	%	 	 	0.50	%

     The LIBOR Margin, the Base Rate Margin, the Non-Use Fee Rate and the L/C Fee Rate shall be
adjusted, to the extent applicable, on the fifth (5th) Business Day after the Company provides or
is required to provide the annual and quarterly financial statements and other information pursuant
to Section 10.1.1 or 10.1.2, as applicable, and the related Compliance Certificate,
pursuant to Section 10.1.3. Notwithstanding anything contained in this paragraph to the
contrary, (a) if the Company fails to deliver the such financial statements and Compliance
Certificate within ten (10) Business Days of the date required under the provisions of
Section 10.1.1, 10.1.2 and/or 10.1.3, the LIBOR Margin, the Base
Rate Margin, the Non-Use Fee Rate

- 2 -

 

and the L/C Fee Rate shall be based upon Level I above beginning on the 10th Business Day
after the date such financial statements and Compliance Certificate were required to be delivered
until the fifth (5th) Business Day after such financial statements and Compliance Certificate are
actually delivered, whereupon the Applicable Margin shall be determined by the then current Level;
(b) no reduction to any Applicable Margin shall become effective at any time when an Event of
Default or Unmatured Event of Default has occurred and is continuing; and (c) the initial
Applicable Margin on the Closing Date shall be based on Level IV until the date on which the
financial statements and Compliance Certificate are required to be delivered for the Fiscal Quarter
ending May 31, 2006.

     Asset Disposition means the sale, lease, assignment or other transfer for value (each,
a “Disposition”) by any Loan Party to any Person (other than a Loan Party) of any asset or
right of such Loan Party (including, the loss, destruction or damage of any thereof or any actual
or threatened (in writing to any Loan Party) condemnation, confiscation, requisition, seizure or
taking thereof) other than (a) the Disposition of any asset which is to be replaced, and is in fact
replaced, within 180 days with another asset performing the same or a similar function, and (b) the
sale or lease of inventory in the ordinary course of business.

     Assignee — see Section 15.6.1.

     Assignment Agreement — see Section 15.6.1.

     Attorney Costs means, with respect to any Person, all reasonable fees and charges of
any legal counsel to such Person and all court costs and similar legal expenses.

     Bank Product Agreements means those certain cash management service agreements entered
into from time to time between any Loan Party and a Lender or its Affiliates in connection with any
of the Bank Products.

     Bank Product Obligations means all obligations, liabilities, contingent reimbursement
obligations, fees, and expenses owing by the Loan Parties to any Lender or its Affiliates pursuant
to or evidenced by the Bank Product Agreements and irrespective of whether for the payment of
money, whether direct or indirect, absolute or contingent, due or to become due, now existing or
hereafter arising, and including all such amounts that a Loan Party is obligated to reimburse to
the Administrative Agent or any Lender as a result of the Administrative Agent or such Lender
purchasing participations or executing indemnities or reimbursement obligations with respect to the
Bank Products provided to the Loan Parties pursuant to the Bank Product Agreements.

     Bank Products means any service or facility (but excluding the Loans and the Letters
of Credit) extended to any Loan Party by any Lender or its Affiliates including: (a) credit cards,
(b) credit card processing services, (c) debit cards, (d) purchase cards, (e) ACH Transactions, (f)
cash management, including controlled disbursement accounts or services, or (g) Hedging
Agreements.

     Base Rate means at any time the greater of (a) the Federal Funds Rate plus 0.5% and
(b) the Prime Rate.

     Base Rate Loan means any Loan which bears interest at or by reference to the Base
Rate.

- 3 -

 

     Base Rate Margin — see the definition of Applicable Margin.

     BSA — see Section 10.4.

     Business Day means any day on which LaSalle is open for commercial banking business in
Chicago, Illinois and, in the case of a Business Day which relates to a LIBOR Loan, on which
dealings are carried on in the London interbank eurodollar market.

     Capital Expenditures means all expenditures which, in accordance with GAAP, would be
required to be capitalized and shown on the consolidated balance sheet of the Company, including
expenditures in respect of Capital Leases, but excluding expenditures made in connection with the
replacement, substitution or restoration of assets to the extent financed (a) from insurance
proceeds (or other similar recoveries) paid on account of the loss of or damage to the assets being
replaced or restored or (b) with awards of compensation arising from the taking by eminent domain
or condemnation of the assets being replaced.

     Capital Lease means, with respect to any Person, any lease of (or other agreement
conveying the right to use) any real or personal property by such Person that, in conformity with
GAAP, is accounted for as a capital lease on the balance sheet of such Person.

     Capital Securities means, with respect to any Person, all shares, interests,
participations or other equivalents (however designated, whether voting or non-voting) of such
Person’s capital, whether now outstanding or issued or acquired after the Closing Date, including
common shares, preferred shares, membership interests in a limited liability company, limited or
general partnership interests in a partnership, interests in a trust, interests in other
unincorporated organizations or any other equivalent of such ownership interest.

     Cash Collateralize means to deliver cash collateral to the Administrative Agent, to be
held as cash collateral for outstanding Letters of Credit, pursuant to documentation satisfactory
to the Administrative Agent. Derivatives of such term have corresponding meanings.

     Cash Equivalent Investment means, at any time, (a) any evidence of Debt, maturing not
more than one year after such time, issued or guaranteed by the United States Government or any
agency thereof, (b) commercial paper, maturing not more than one year from the date of issue, or
corporate demand notes, in each case (unless issued by a Lender or its holding company) rated at
least A-l by Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. or
P-l by Moody’s Investors Service, Inc., (c) any certificate of deposit, time deposit or banker’s
acceptance, maturing not more than one year after such time, or any overnight Federal Funds
transaction that is issued or sold by any Lender or its holding company (or by a commercial banking
institution that is a member of the Federal Reserve System and has a combined capital and surplus
and undivided profits of not less than $500,000,000), (d) any repurchase agreement entered into
with any Lender (or commercial banking institution of the nature referred to in clause (c))
which (i) is secured by a fully perfected security interest in any obligation of the type described
in any of clauses (a) through (c) above and (ii) has a market value at the time
such repurchase agreement is entered into of not less than 100% of the repurchase obligation of
such Lender (or other commercial banking institution) thereunder and (e) money market accounts or
mutual funds which invest exclusively in assets satisfying the

- 4 -

 

foregoing requirements, and (f) other short term liquid investments approved in writing by the
Administrative Agent.

     Change of Control means the occurrence of any of the following events: (a) any Person
or group of Persons (within the meaning of Section 13 or 14 of the Securities Exchange Act of 1934)
shall acquire beneficial ownership (within the meaning of Rule 13d-3 promulgated under such Act) of
more than 50% of the outstanding securities (on a fully diluted basis and taking into account any
securities or contract rights exercisable, exchangeable or convertible into equity securities) of
the Company having voting rights in the election of directors under normal circumstances; (b) a
majority of the members of the Board of Directors of the Company shall cease to be Continuing
Members; or (c) the Company shall cease to, directly or indirectly, own and control 100% of each
class of the outstanding Capital Securities of each Co-Borrower and of each other Subsidiary. For
purposes of the foregoing, “Continuing Member” means a member of the Board of Directors of
the Company who either (i) was a member of the Company’s Board of Directors on the day before the
Closing Date and has been such continuously thereafter or (ii) became a member of such Board of
Directors after the day before the Closing Date and whose election or nomination for election was
approved by a vote of the majority of the Continuing Members then members of the Company’s Board of
Directors.

     Closing Date — see Section 12.1.

     Co-Borrower — see the Preamble.

     Code means the Internal Revenue Code of 1986.

     Collateral Access Agreement means an agreement in form and substance reasonably
satisfactory to the Administrative Agent pursuant to which a mortgagee or lessor of real property
on which collateral is stored or otherwise located, or a warehouseman, processor or other bailee of
Inventory or other property owned by any Loan Party, acknowledges the Liens of the Administrative
Agent and waives any Liens held by such Person on such property, and, in the case of any such
agreement with a mortgagee or lessor, permits the Administrative Agent reasonable access to and use
of such real property following the occurrence and during the continuance of an Event of Default to
assemble, complete and sell any collateral stored or otherwise located thereon.

     Collateral Documents means, collectively, the Security Agreement, each Mortgage, each
Collateral Access Agreement, each Perfection Certificate, each control agreement and any other
agreement or instrument pursuant to which the Company, any Subsidiary or any other Person grants or
purports to grant collateral to the Administrative Agent for the benefit of the Lenders or
otherwise relates to such collateral.

     Commitment means, as to any Lender, such Lender’s commitment to make Loans, and to
issue or participate in Letters of Credit, under this Agreement. The initial amount of each
Lender’s commitment to make Loans is set forth on Annex A. Each Lender’s commitment to
make the Revolving Loans is described herein as its “Revolving Commitment”.

     Company — see the Preamble.

- 5 -

 

     Compliance Certificate means a Compliance Certificate in substantially the form of
Exhibit B.

     Computation Period means each period of four consecutive Fiscal Quarters ending on the
last day of a Fiscal Quarter.

     Consolidated Net Income means, with respect to the Company and its Subsidiaries for
any period, the net income (or loss) of the Company and its Subsidiaries for such period,
excluding any gains from Asset Dispositions, any extraordinary gains and any gains from
discontinued operations.

     Contingent Liability means, with respect to any Person, each obligation and liability
of such Person and all such obligations and liabilities of such Person incurred pursuant to any
agreement, undertaking or arrangement by which such Person: (a) guarantees, endorses or otherwise
becomes or is contingently liable upon (by direct or indirect agreement, contingent or otherwise,
to provide funds for payment, to supply funds to, or otherwise to invest in, a debtor, or otherwise
to assure a creditor against loss) the indebtedness, dividend, obligation or other liability of any
other Person in any manner (other than by endorsement of instruments in the course of collection),
including any indebtedness, dividend or other obligation which may be issued or incurred at some
future time; (b) guarantees the payment of dividends or other distributions upon the Capital
Securities of any other Person; (c) undertakes or agrees (whether contingently or otherwise): (i)
to purchase, repurchase, or otherwise acquire any indebtedness, obligation or liability of any
other Person or any property or assets constituting security therefor, (ii) to advance or provide
funds for the payment or discharge of any indebtedness, obligation or liability of any other Person
(whether in the form of loans, advances, stock purchases, capital contributions or otherwise), or
to maintain solvency, assets, level of income, working capital or other financial condition of any
other Person, or (iii) to make payment to any other Person other than for value received; (d)
agrees to lease property or to purchase securities, property or services from such other Person
with the purpose or intent of assuring the owner of such indebtedness or obligation of the ability
of such other Person to make payment of the indebtedness or obligation; (e) to induce the issuance
of, or in connection with the issuance of, any letter of credit for the benefit of such other
Person; or (f) undertakes or agrees otherwise to assure a creditor against loss. The amount of any
Contingent Liability shall (subject to any limitation set forth herein) be deemed to be the
outstanding principal amount (or maximum permitted principal amount, if larger) of the
indebtedness, obligation or other liability guaranteed or supported thereby.

     Controlled Group means all members of a controlled group of corporations, all members
of a controlled group of trades or businesses (whether or not incorporated) under common control
and all members of an affiliated service group which, together with the Company or any of its
Subsidiaries, are treated as a single employer under Section 414 of the Code or Section 4001 of
ERISA.

     Debt of any Person means, without duplication, (a) all indebtedness of such Person
(excluding trade accounts payable in the ordinary course of business and accrued expenses arising
in the ordinary course of business), (b) all borrowed money of such Person, whether or not
evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person as
lessee under Capital Leases which have been or should be recorded as liabilities on a

- 6 -

 

balance sheet of such Person in accordance with GAAP, (d) all obligations of such Person to
pay the deferred purchase price of property or services (excluding trade accounts payable in the
ordinary course of business and accrued expenses arising in the ordinary course of business), (e)
all indebtedness secured by a Lien on the property of such Person, whether or not such indebtedness
shall have been assumed by such Person; provided that if such Person has not assumed or
otherwise become liable for such indebtedness, such indebtedness shall be measured at the fair
market value of such property securing such indebtedness at the time of determination, (f) all
obligations, contingent or otherwise, with respect to the face amount of all letters of credit
(whether or not drawn), bankers’ acceptances and similar obligations issued for the account of such
Person (including the Letters of Credit), (g) all Hedging Obligations of such Person, (h) all
guarantees of indebtedness of any Person, and (i) all Debt of any partnership of which such Person
is a general partner.

     Debt to be Repaid means Debt listed on Schedule 12.1.

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

     EBITDA means, for any period, Consolidated Net Income for such period plus, to
the extent deducted in determining such Consolidated Net Income, Interest Expense, income tax
expense, depreciation and amortization for such period.

     Environmental Claims means all claims, however asserted, by any governmental,
regulatory or judicial authority or other Person alleging potential liability or responsibility for
violation of any Environmental Law, or for release or injury to the environment.

     Environmental Laws means all present or future federal, state or local laws, statutes,
common law duties, rules, regulations, ordinances and codes, together with all administrative or
judicial orders, consent agreements, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any governmental authority, in each case relating to any matter
arising out of or relating to public health and safety, or pollution or protection of the
environment or workplace, including any of the foregoing relating to the presence, use, production,
generation, handling, transport, treatment, storage, disposal, distribution, discharge, emission,
release, threatened release, control or cleanup of any Hazardous Substance.

     ERISA means the Employee Retirement Income Security Act of 1974.

     Event of Default means any of the events described in Section 13.1.

     Excluded Taxes means taxes based upon, or measured by, the Lender’s or Administrative
Agent’s (or a branch of the Lender’s or Administrative Agent’s) overall net income, overall net
receipts, or overall net profits (including franchise taxes imposed in lieu of such taxes), but
only to the extent such taxes are imposed by a taxing authority (a) in a jurisdiction in which such
Lender or Administrative Agent is organized, (b) in a jurisdiction which the Lender’s or
Administrative Agent’s principal office is located, or (c) in a jurisdiction in which such Lender’s
or Administrative Agent’s lending office (or branch) in respect of which payments under this
Agreement are made is located.

- 7 -

 

     Factoring Facility means those certain arrangements pursuant to (a) that certain
Second Amended and Restated Collection Date Factoring Agreement, dated September 30, 2001, between
the CIT Group/Commercial Services, Inc. and A and G, Inc. (b) that certain Assignment of Monies Due
Under Factoring Agreement dated September 30, 2001 between Suntrust Bank and A and G, Inc.; and (c)
and that certain Factoring Agreement dated November 27, 2001 between UPS Capital Global Trade
Finance Corporation and A and G, Inc.

     Federal Funds Rate means, for any day, a fluctuating interest rate equal for each day
during such period to the weighted average of the rates on overnight Federal funds transactions
with members of the Federal Reserve System arranged by Federal funds brokers, as published for such
day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day,
the average of the quotations for such day on such transactions received by the Administrative
Agent from three Federal funds brokers of recognized standing selected by the Administrative Agent.
The Administrative Agent’s determination of such rate shall be binding and conclusive absent
manifest error.

     Fiscal Quarter means a fiscal quarter of a Fiscal Year.

     Fiscal Year means the fiscal year of the Company and its Subsidiaries, which period
shall be the 12-month period ending on February 28th (or February 29th, in the case of a leap year)
of each year. References to a Fiscal Year with a number corresponding to any calendar year (e.g.,
“Fiscal Year 2006”) refer to the Fiscal Year ending on February 28th of such calendar year
(or February 29th, in the case of a leap year).

     Fixed Charge Coverage Ratio means, for any Computation Period, the ratio of (a) the
total for such period of EBITDA minus the sum of income taxes paid in cash by the Loan
Parties and all unfinanced Capital Expenditures to (b) the sum for such period of (i) cash
Interest Expense plus (ii) required payments of principal of Funded Debt (excluding the
Revolving Loans) plus (iii) an amount equal to the advances, dividends and distributions
(other than distributions on non-redeemable equity securities of the Parent), and redemptions and
repurchases of equity securities of the Parent (to the extent otherwise permitted herein) made by
the Parent to holders of its Capital Securities.

     FRB means the Board of Governors of the Federal Reserve System or any successor
thereto.

     Funded Debt means, as to any Person, all Debt of such Person that matures more than
one year from the date of its creation (or is renewable or extendible, at the option of such
Person, to a date more than one year from such date).

     GAAP means generally accepted accounting principles set forth from time to time in the
opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board (or agencies with similar functions of comparable stature and authority within the
U.S. accounting profession) and the Securities and Exchange Commission, which are applicable to the
circumstances as of the date of determination.

- 8 -

 

     Group — see Section 2.2.1.

     Guarantor
Payment — see Section 16.7(a).

     Hazardous Substances means (a) any petroleum or petroleum products, radioactive
materials, asbestos in any form that is or could become friable, urea formaldehyde foam insulation,
dielectric fluid containing levels of polychlorinated biphenyls, radon gas and mold; and (b) any
chemicals, materials, pollutant or substances defined as or included in the definition of
“hazardous substances”, “hazardous waste”, “hazardous materials”, “extremely hazardous substances”,
“restricted hazardous waste”, “toxic substances”, “toxic pollutants”, “contaminants”, “pollutants”
or words of similar import, under any applicable Environmental Law; and (c) any other chemical,
material or substance, the exposure to, or release of which is prohibited, limited or regulated by
any governmental authority pursuant to any Environmental Law, or for which any duty or standard of
care is imposed pursuant to any Environmental Law.

     Hedging Agreement means any interest rate, currency or commodity swap agreement, cap
agreement or collar agreement, and any other agreement or arrangement designed to protect a Person
against fluctuations in interest rates, currency exchange rates or commodity prices.

     Hedging Obligation means, with respect to any Person, any liability of such Person
under any Hedging Agreement. The amount of any Person’s obligation in respect of any Hedging
Obligation shall be deemed to be the incremental obligation that would be reflected in the
financial statements of such Person in accordance with GAAP.

     Indemnified Liabilities — see Section 15.17.

     Interest Expense means for any period the consolidated interest expense of the Company
and its Subsidiaries for such period (including all imputed interest on Capital Leases).

     Interest Period means, as to any LIBOR Loan, the period commencing on the date such
Loan is borrowed or continued as, or converted into, a LIBOR Loan and ending on the date one, two,
three or six months thereafter as selected by the Company pursuant to Section 2.2.2 or
2.2.3, as the case may be; provided that:

     (a) if any Interest Period would otherwise end on a day that is not a Business Day,
such Interest Period shall be extended to the following Business Day unless the result of
such extension would be to carry such Interest Period into another calendar month, in which
event such Interest Period shall end on the preceding Business Day;

     (b) any Interest Period that begins on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period shall end on the
last Business Day of the calendar month at the end of such Interest Period; and

     (c) the Company may not select any Interest Period for a Revolving Loan which would
extend beyond the scheduled Termination Date.

     Inventory is defined in the Security Agreement.

- 9 -

 

     Investment means, with respect to any Person, any investment in another Person,
whether by acquisition of any debt or Capital Security, by making any loan or advance, by becoming
obligated with respect to a Contingent Liability in respect of obligations of such other Person
(other than travel and similar advances to employees in the ordinary course of business) or by
making an Acquisition.

     Issuing Lender means LaSalle, in its capacity as the issuer of Letters of Credit
hereunder, or any Affiliate of LaSalle that may from time to time issue Letters of Credit, and
their successors and assigns in such capacity.

     LaSalle — see the Preamble.

     L/C Application means, with respect to any request for the issuance of a Letter of
Credit, a letter of credit application in the form being used by the Issuing Lender at the time of
such request for the type of letter of credit requested.

     L/C Fee Rate — see the definition of Applicable Margin.

     Lender — see the Preamble. References to the “Lenders” shall include the
Issuing Lender; for purposes of clarification only, to the extent that LaSalle (or any successor
Issuing Lender) may have any rights or obligations in addition to those of the other Lenders due to
its status as Issuing Lender, its status as such will be specifically referenced. In addition to
the foregoing, for the purpose of identifying the Persons entitled to share in the Collateral and
the proceeds thereof under, and in accordance with the provisions of, this Agreement and the
Collateral Documents, the term “Lender” shall include Affiliates of a Lender providing a Bank
Product.

     Lender Party — see Section 15.17.

     Letter of Credit — see Section 2.1.4.

     LIBOR Loan means any Loan which bears interest at a rate determined by reference to
the LIBOR Rate.

     LIBOR Margin — see the definition of Applicable Margin.

     LIBOR Office means with respect to any Lender the office or offices of such Lender
which shall be making or maintaining the LIBOR Loans of such Lender hereunder. A LIBOR Office of
any Lender may be, at the option of such Lender, either a domestic or foreign office.

     LIBOR Rate means a rate of interest equal to (a) the per annum rate of interest at
which United States dollar deposits in an amount comparable to the amount of the relevant LIBOR
Loan and for a period equal to the relevant Interest Period are offered in the London Interbank
Eurodollar market at 11:00 A.M. (London time) two (2) Business Days prior to the commencement of
such Interest Period (or three (3) Business Days prior to the commencement of such Interest Period
if banks in London, England were not open and dealing in offshore United States dollars on such
second preceding Business Day), as displayed in the Bloomberg Financial Markets system (or other
authoritative source selected by the Administrative Agent in its sole discretion) or, if the
Bloomberg Financial Markets system or another authoritative source

- 10 -

 

is not available, as the LIBOR Rate is otherwise determined by the Administrative Agent in its
reasonable discretion, divided by (b) a number determined by subtracting from 1.00 the then stated
maximum reserve percentage for determining reserves to be maintained by member banks of the Federal
Reserve System for Eurocurrency funding or liabilities as defined in Regulation D (or any successor
category of liabilities under Regulation D), such rate to remain fixed for such Interest Period.
The Administrative Agent’s determination of the LIBOR Rate shall be conclusive, absent manifest
error.

     Lien means, with respect to any Person, any interest granted by such Person in any
real or personal property, asset or other right owned or being purchased or acquired by such Person
(including an interest in respect of a Capital Lease) which secures payment or performance of any
obligation and shall include any mortgage, lien, encumbrance, title retention lien, charge or other
security interest of any kind, whether arising by contract, as a matter of law, by judicial process
or otherwise.

     Loan Documents means this Agreement, the Notes, the Letters of Credit, the Master
Letter of Credit Agreement, the L/C Applications, the Agent Fee Letter, the Collateral Documents,
and all documents, instruments and agreements delivered in connection with the foregoing.

     Loan Party means the Company and each Subsidiary.

     Loan or Loans means, as the context may require, Revolving Loans and/or Swing Line
Loans.

     Margin Stock means any “margin stock” as defined in Regulation U.

     Master Letter of Credit Agreement means, at any time, with respect to the issuance of
Letters of Credit, a master letter of credit agreement or reimbursement agreement in the form, if
any, being used by the Issuing Lender at such time.

     Material means, with respect to any Loan Party, at the time of determination that
either the assets of such Loan Party comprised more than 10% of the assets of the Loan Parties
taken as a whole or the contribution of such Loan Party to EBITDA, determined as of the most
recently ended four Fiscal Quarter period, was 10% or more of EBITDA for such period.

     Material Adverse Effect means (a) a material adverse change in, or a material adverse
effect upon, the financial condition, operations, assets, business, properties or prospects of the
Loan Parties taken as a whole, (b) a material impairment of the ability of any Material Loan Party
to perform any of the Obligations under any Loan Document (provided that, if an incident, or series
of incidents, affects more than one Loan Party with assets that in the aggregate comprise more than
20% of the assets of the Loan Parties taken as a whole or the contribution of such Loan Parties to
EBITDA, determined as of the most recently ended four Fiscal Quarter period, was 20% or more of
EBITDA for such period, all such Loan Parties shall be determined to be Material for the purposes
of this definition of Material Adverse Effect) or (c) a material adverse effect upon any
substantial portion of the collateral under the Collateral Documents or upon the legality,
validity, binding effect or enforceability against any Loan Party of any Loan Document.

- 11 -

 

     Mortgage means a mortgage, deed of trust, leasehold mortgage or similar instrument
granting the Administrative Agent a Lien on real property of any Loan Party.

     Multiemployer Pension Plan means a multiemployer plan, as defined in Section
4001(a)(3) of ERISA, to which the Company or any other member of the Controlled Group may have any
liability.

     Non-U.S. Participant — see Section 7.6(d).

     Non-Use Fee Rate — see the definition of Applicable Margin.

     Note means any promissory note substantially in the form of Exhibit A-1 and
Exhibit A-2, as applicable.

     Notice of Borrowing — see Section 2.2.2.

     Notice of Conversion/Continuation — see Section 2.2.3.

     Obligations means all obligations (monetary (including post-petition interest, allowed
or not) or otherwise) of any Loan Party under this Agreement and any other Loan Document including
Attorney Costs and any reimbursement obligations of each Loan Party in respect of Letters of Credit
and surety bonds, all Hedging Obligations permitted hereunder which are owed to any Lender or its
Affiliate, and all Bank Product Obligations, all in each case howsoever created, arising or
evidenced, whether direct or indirect, absolute or contingent, now or hereafter existing, or due or
to become due.

     OFAC — see Section 10.4.

     Operating Lease means any lease of (or other agreement conveying the right to use) any
real or personal property by any Loan Party, as lessee, other than any Capital Lease.

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

     Parent — see the Preamble.

     Participant — see Section 15.6.2.

     Pension Plan means a “pension plan”, as such term is defined in Section 3(2) of ERISA,
which is subject to Title IV of ERISA or the minimum funding standards of ERISA (other than a
Multiemployer Pension Plan), and as to which the Company or any member of the Controlled Group may
have any liability, including any liability by reason of having been a substantial employer within
the meaning of Section 4063 of ERISA at any time during the preceding five years, or by reason of
being deemed to be a contributing sponsor under Section 4069 of ERISA.

     Perfection Certificate means a perfection certificate executed and delivered to the
Administrative Agent by a Loan Party.

- 12 -

 

     Permitted Lien means a Lien expressly permitted hereunder pursuant to Section
11.2.

     Person means any natural person, corporation, partnership, trust, limited liability
company, association, governmental authority or unit, or any other entity, whether acting in an
individual, fiduciary or other capacity.

     Prime Rate means, for any day, the rate of interest in effect for such day as publicly
announced from time to time by the Administrative Agent as its prime rate (whether or not such rate
is actually charged by the Administrative Agent), which is not intended to be the Administrative
Agent’s lowest or most favorable rate of interest at any one time. Any change in the Prime Rate
announced by the Administrative Agent shall take effect at the opening of business on the day
specified in the public announcement of such change; provided that the Administrative Agent
shall not be obligated to give notice of any change in the Prime Rate.

     Pro Rata Share means, with respect to a Lender’s obligation to make Revolving Loans,
participate in Letters of Credit, reimburse the Issuing Lender, and receive payments of principal,
interest, fees, costs, and expenses with respect thereto and with respect to all matters as to a
particular Lender, (x) prior to the Aggregate Revolving Commitment being terminated or reduced to
zero, the percentage obtained by dividing (i) such Lender’s Revolving Commitment, by (ii) the
Aggregate Revolving Commitment and (y) from and after the time the Aggregate Revolving Commitment
has been terminated or reduced to zero, the percentage obtained by dividing (i) the aggregate
unpaid principal amount of such Lender’s Revolving Outstandings (after settlement and repayment of
all Swing Line Loans by the Lenders) by (ii) the aggregate unpaid principal amount of all Revolving
Outstandings.

     Refunded Swing Line Loan — see Section 2.2.4(c).

     Regulation D means Regulation D of the FRB.

     Regulation T means Regulation T of the FRB.

     Regulation U means Regulation U of the FRB.

     Regulation X means Regulation X of the FRB.

     Replacement Lender — see Section 8.7(b).

     Reportable Event means a reportable event as defined in Section 4043 of ERISA and the
regulations issued thereunder as to which the PBGC has not waived the notification requirement of
Section 4043(a), or the failure of a Pension Plan to meet the minimum funding standards of Section
412 of the Code (without regard to whether the Pension Plan is a plan described in Section
4021(a)(2) of ERISA) or under Section 302 of ERISA.

     Required Lenders means, at any time, Lenders whose Pro Rata Shares are equal to or in
excess of 51% as determined pursuant to clause (c) of the definition of Pro Rata Share.

     Revolving
Commitment — see the definition of Commitment.

- 13 -

 

     Revolving Loan — see Section 2.1.1.

     Revolving Outstandings means, at any time, the sum of (a) the aggregate principal
amount of all outstanding Revolving Loans, plus (b) the Stated Amount of all Letters of Credit.

     SEC means the Securities and Exchange Commission or any other governmental authority
succeeding to any of the principal functions thereof.

     Security Agreement means the Amended and Restated Security Agreement dated as of the
date hereof executed and delivered by the Loan Parties, together with any joinders thereto and any
other collateral security agreement executed by a Loan Party, in each case in form and substance
satisfactory to the Administrative Agent.

     Specified Hedging Obligation means any Hedging Obligations of the Company under any
Specified Hedging Agreement and Specified Hedging Obligations means all such obligations
and liabilities collectively.

     Specified Hedging Agreement means any Hedging Agreement (a) entered into by (i) a
Co-Borrower and (ii) any Lender (as determined as of the date such Hedging Agreement is entered
into) or any affiliate thereof, as counterparty and (b)(i) the covered transactions thereunder are
the Revolving Loan or Obligations hereunder or (ii) that has otherwise been designated by the
Administrative Agent, such Lender or such affiliate, as the case may be, and the Parent on behalf
of such Co-Borrower, by notice to the Administrative Agent, as a Specified Hedging Agreement. The
designation of any Hedging Agreement as a Specified Hedging Agreement shall not create in favor of
the Administrative Agent, any Lender or affiliate thereof that is a party thereto any rights in
connection with the management or release of any Collateral or of the obligations of any guarantor
under this Agreement or the Loan Documents.

     Senior Officer means, with respect to any Loan Party, any of the chief executive
officer, the chief financial officer, the chief operating officer or the treasurer of such Loan
Party.

     Stated Amount means, with respect to any Letter of Credit at any date of
determination, (a) the maximum aggregate amount available for drawing thereunder under any and all
circumstances plus (b) the aggregate amount of all unreimbursed payments and disbursements under
such Letter of Credit.

     Subordinated Debt means any unsecured Debt of the Company which has subordination
terms, covenants, pricing and other terms which have been approved in writing by the Required
Lenders.

     Subordinated Debt Documents means all documents and instruments relating to
Subordinated Debt and all amendments and modifications thereof approved by the Administrative
Agent.

     Subordination Agreements means all subordination agreements executed by a holder of
Subordinated Debt in favor of the Administrative Agent and the Lenders from time to time after the
Closing Date.

- 14 -

 

     Subsidiary means, with respect to any Person, a corporation, partnership, limited
liability company or other entity of which such Person owns, directly or indirectly, such number of
outstanding Capital Securities as have more than 50% of the ordinary voting power for the election
of directors or other managers of such corporation, partnership, limited liability company or other
entity. Unless the context otherwise requires, each reference to Subsidiaries herein shall be a
reference to Subsidiaries of the Company.

     Swing Line Availability means the lesser of (a) the Swing Line Commitment Amount and
(b) the Revolving Loan Commitment (less Revolving Outstandings at such time).

     Swing Line Commitment Amount means $20,000,000 as reduced from time to time pursuant
to Section 6.1, which commitment constitutes a subfacility of the Revolving Commitment of
the Swing Line Lender.

     Swing Line Lender means LaSalle.

     Swing Line Loan — see Section 2.2.4.

     Taxes means any and all present and future taxes, duties, levies, imposts, deductions,
assessments, charges or withholdings, and any and all liabilities (including interest and penalties
and other additions to taxes) with respect to the foregoing, but excluding Excluded Taxes.

     Term Loans means those term loans in the aggregate amount of $50,000,000 pursuant to
the November 19 Agreement.

     Termination Date means the earlier to occur of (a) March 31, 2010 or (b) such other
date on which the Commitments terminate pursuant to Section 6 or 13.

     Termination Event means, with respect to a Pension Plan that is subject to Title IV of
ERISA, (a) a Reportable Event, (b) the withdrawal of Company or any other member of the Controlled
Group from such Pension Plan during a plan year in which Company or any other member of the
Controlled Group was a “substantial employer” as defined in Section 4001(a)(2) of ERISA or was
deemed such under Section 4068(f) of ERISA, (c) the termination of such Pension Plan, the filing of
a notice of intent to terminate the Pension Plan or the treatment of an amendment of such Pension
Plan as a termination under Section 4041 of ERISA, (d) the institution by the PBGC of proceedings
to terminate such Pension Plan or (e) any event or condition that might constitute grounds under
Section 4042 of ERISA for the termination of, or appointment of a trustee to administer, such
Pension Plan.

     Total Funded Debt means all Debt of the Company and its Subsidiaries, determined on a
consolidated basis, excluding, without duplication, (a) contingent obligations in respect of
Contingent Liabilities (except to the extent constituting Contingent Liabilities in respect of Debt
of a Person other than any Loan Party), (b) Hedging Obligations and (c) Debt of the Company to
Subsidiaries and Debt of Subsidiaries to the Company or to other Subsidiaries.

     Total Funded Debt to EBITDA Ratio means, as of the last day of any Fiscal Quarter, the
ratio of (a) Total Funded Debt as of such day to (b) EBITDA for the Computation Period ending on
such day.

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     Total Plan Liability means, at any time, the present value of all vested and unvested
accrued benefits under all Pension Plans, determined as of the then most recent valuation date for
each Pension Plan, using PBGC actuarial assumptions for single employer plan terminations.

     type — see Section 2.2.1.

     UCC is defined in the Security Agreement.

     Unfunded Liability means the amount (if any) by which the actuarial present value of
projected benefits over periods of employee service (applying an actuarial cost method) under all
Pension Plans exceeds the actuarial value of all assets allocable to those benefits, all determined
as of the then most recent valuation date for each Pension Plan, using PBGC actuarial assumptions
for single employer plan terminations.

     Unmatured Event of Default means any event that, if it continues uncured, will, with
lapse of time or notice or both, constitute an Event of Default.

     Withholding Certificate — see Section 7.6(d).

     Wholly-Owned Subsidiary means, as to any Person, a Subsidiary all of the Capital
Securities of which (except directors’ qualifying Capital Securities) are at the time directly or
indirectly owned by such Person and/or another Wholly-Owned Subsidiary of such Person.

     1.2 Other Interpretive Provisions. (a) The meanings of defined terms are equally
applicable to the singular and plural forms of the defined terms.

               (b) Section, Annex, Schedule and Exhibit references are to this Agreement unless otherwise
specified.

               (c) The term “including” is not limiting and means “including without limitation.”

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

               (e) Unless otherwise expressly provided herein, (i) references to agreements (including this
Agreement and the other Loan Documents) and other contractual instruments shall be deemed to
include all subsequent amendments, restatements, supplements and other modifications thereto, but
only to the extent such amendments, restatements, supplements and other modifications are not
prohibited by the terms of any Loan Document, and (ii) references to any statute or regulation
shall be construed as including all statutory and regulatory provisions amending, replacing,
supplementing or interpreting such statute or regulation.

               (f) This Agreement and the other Loan Documents may use several different limitations, tests
or measurements to regulate the same or similar matters. All such

- 16 -

 

limitations, tests and measurements are cumulative and each shall be performed in accordance
with its terms.

               (g) This Agreement and the other Loan Documents are the result of negotiations among and have
been reviewed by counsel to the Administrative Agent, the Company, the Lenders and the other
parties thereto and are the products of all parties. Accordingly, they shall not be construed
against the Administrative Agent or the Lenders merely because of the Administrative Agent’s or
Lenders’ involvement in their preparation.

SECTION 2 COMMITMENTS OF THE LENDERS; BORROWING, CONVERSION AND LETTER OF CREDIT PROCEDURES.

     2.1 Commitments. On and subject to the terms and conditions of this Agreement, each
of the Lenders, severally and for itself alone, agrees to make loans to, and to issue or
participate in letters of credit for the account of, the Company as follows:

          2.1.1 Revolving Loan Commitment. Each Lender with a Revolving Commitment agrees to
make loans on a revolving basis (“Revolving Loans”) from time to time until the Termination
Date in such Lender’s Pro Rata Share of such aggregate amounts as the Company may request from all
Lenders; provided that the Revolving Outstandings will not at any time exceed the Aggregate
Revolving Commitment (less the amount of any Swing Line Loans outstanding at such time)

          2.1.2 Increase in Revolving Commitment. The Company may, at its option any time
before the Termination Date, on no more than three occasions, seek to increase the Revolving
Commitment by up to an aggregate amount not exceeding $50,000,000 (resulting in maximum Revolving
Commitment of $200,000,000) upon written notice to the Administrative Agent, which notice shall
specify the amount of any such incremental increase (which shall not be less than $10,000,000)
sought by the Company and shall be delivered at a time when no Unmatured Event of Default or Event
of Default has occurred and is continuing. The Administrative Agent, subject to the consent of the
Company, which shall not be unreasonably withheld, may allocate the incremental increase (which may
be declined by any Lender (including in its sole discretion)) in the Revolving Commitment on either
a ratable basis to the Lenders or on a non pro-rata basis to one or more Lenders and/or to other
banks or entities reasonably acceptable to the Administrative Agent and the Company which have
expressed a desire to accept the increase in Revolving Commitment. The Administrative Agent will
then notify each existing and potentially new Lender of such revised allocations of the Revolving
Commitment, including the desired increase. No increase in the Revolving Commitment shall become
effective until each of the existing or new Lenders extending such incremental Revolving Commitment
and the Company shall have delivered to the Administrative Agent a document in form reasonably
satisfactory to the Administrative Agent pursuant to which any such existing Lender states the
amount of its Revolving Commitment increase, any such new Lender states its Revolving Commitment
amount and agrees to assume and accept the obligations and rights of a Lender hereunder, and the
Company accepts such new Commitments. After giving effect to such increase in Revolving
Commitment, all Loans and all such other credit exposure shall be held ratably by the Lenders in
proportion to their respective Commitments, as revised to reflect the increase in the Revolving
Commitment. Upon any

- 17 -

 

increase in Revolving Commitment pursuant to this Section, the Company shall pay
Administrative Agent for the ratable benefit of only the Lenders (including any new Lender) whose
Revolving Commitment are increased an upfront fee in an amount equal to what is mutually agreed to
among the Company, the Lenders whose Revolving Commitments are increased and the Administrative
Agent. Administrative Agent will use its best efforts to arrange the increase in Revolving
Commitment sought by Company but is under no obligation to consummate any such increase. Company
will cooperate with Administrative Agent in such efforts.

          2.1.3 Term Loan Commitment. [Intentionally Deleted].

          2.1.4 L/C Commitment. Subject to Section 2.3.1, the Issuing Lender agrees to
issue letters of credit, in each case containing such terms and conditions as are permitted by this
Agreement and are reasonably satisfactory to the Issuing Lender (each, a “Letter of
Credit”), at the request of and for the account of the Company from time to time before the
scheduled Termination Date and, as more fully set forth in Section 2.3.2, each Lender
agrees to purchase a participation in each such Letter of Credit; provided that (a) the
aggregate Stated Amount of all Letters of Credit shall not at any time exceed $20,000,000 and (b)
the Revolving Outstandings shall not at any time exceed the Aggregate Revolving Commitment (less
the amount of any Swing Line Loans outstanding at such time).

     2.2 Loan Procedures.

          2.2.1 Various Types of Loans. Each Revolving Loan shall be divided into tranches
which are, either a Base Rate Loan or a LIBOR Loan (each a “type” of Loan), as the Company
shall specify in the related notice of borrowing or conversion pursuant to Section 2.2.2 or
2.2.3. LIBOR Loans having the same Interest Period which expire on the same day are
sometimes called a “Group” or collectively “Groups”. Base Rate Loans and LIBOR
Loans may be outstanding at the same time, provided that not more than five (5) different
Groups of LIBOR Loans shall be outstanding at any one time. All borrowings, conversions and
repayments of Revolving Loans shall be effected so that each Lender will have a ratable share
(according to its Pro Rata Share) of all types and Groups of Loans.

          2.2.2 Borrowing Procedures. The Company shall give written notice (each such written
notice, a “Notice of Borrowing”) substantially in the form of Exhibit D or
telephonic notice (followed immediately by a Notice of Borrowing) to the Administrative Agent of
each proposed borrowing not later than (a) in the case of a Base Rate borrowing, 11:00 A.M.,
Chicago time, on the proposed date of such borrowing, and (b) in the case of a LIBOR borrowing,
11:00 A.M., Chicago time, at least three Business Days prior to the proposed date of such
borrowing. Each such notice shall be effective upon receipt by the Administrative Agent, shall be
irrevocable, and shall specify the date, amount and type of borrowing and, in the case of a LIBOR
borrowing, the initial Interest Period therefor. Promptly upon receipt of such notice, the
Administrative Agent shall advise each Lender thereof. Not later than 1:00 P.M., Chicago time, on
the date of a proposed borrowing, each Lender shall provide the Administrative Agent at the office
specified by the Administrative Agent with immediately available funds covering such Lender’s Pro
Rata Share of such borrowing and, so long as the Administrative Agent has not received written
notice that the conditions precedent set forth in Section 12 with respect to

- 18 -

 

such borrowing have not been satisfied, the Administrative Agent shall pay over the funds
received by the Administrative Agent to the Company on the requested borrowing date. Each
borrowing shall be on a Business Day. Each Base Rate borrowing shall be in an aggregate amount of
at least $1,000,000 and an integral multiple of $1,000,000, and each LIBOR borrowing shall be in
an aggregate amount of at least $5,000,000 and an integral multiple of at least $1,000,000.

          2.2.3 Conversion and Continuation Procedures. (a) Subject to Section 2.2.1,
the Company may, upon irrevocable written notice to the Administrative Agent in accordance with
clause (b) below:

               (A) elect, as of any Business Day, to convert any Loans (or any part thereof in an aggregate
amount of not less than $5,000,000 or a higher integral multiple of $1,000,000) into Loans of the
other type; or

               (B) elect, as of the last day of the applicable Interest Period, to continue any LIBOR Loans
having Interest Periods expiring on such day (or any part thereof in an aggregate amount of not
less than $5,000,000 or a higher integral multiple of $1,000,000) for a new Interest Period;

provided that after giving effect to any prepayment, conversion or continuation, the
aggregate principal amount of each Group of LIBOR Loans shall be at least $5,000,000 and an
integral multiple of $1,000,000.

               (b) The Company shall give written notice (each such written notice, a “Notice of
Conversion/Continuation”) substantially in the form of Exhibit E or telephonic notice
(followed immediately by a Notice of Conversion/Continuation) to the Administrative Agent of each
proposed conversion or continuation not later than (i) in the case of conversion into Base Rate
Loans, 11:00 A.M., Chicago time, on the proposed date of such conversion and (ii) in the case of
conversion into or continuation of LIBOR Loans, 11:00 A.M., Chicago time, at least three Business
Days prior to the proposed date of such conversion or continuation, specifying in each case:

               (A) the proposed date of conversion or continuation;

               (B) the aggregate amount of Loans to be converted or continued;

               (C) the type of Loans resulting from the proposed conversion or continuation; and

               (D) in the case of conversion into, or continuation of, LIBOR Loans, the duration of the
requested Interest Period therefor.

               (c) If upon the expiration of any Interest Period applicable to LIBOR Loans, the Company has
failed to select timely a new Interest Period to be applicable to such LIBOR Loans, the Company
shall be deemed to have elected to convert such LIBOR Loans into Base Rate Loans effective on the
last day of such Interest Period.

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               (d) The Administrative Agent will promptly notify each Lender of its receipt of a notice of
conversion or continuation pursuant to this Section 2.2.3 or, if no timely notice is
provided by the Company, of the details of any automatic conversion.

               (e) Any conversion of a LIBOR Loan on a day other than the last day of an Interest Period
therefor shall be subject to Section 8.4.

          2.2.4 Swing Line Facility.

               (a) The Administrative Agent shall notify the Swing Line Lender upon the Administrative
Agent’s receipt of any Notice of Borrowing. Subject to the terms and conditions hereof, the Swing
Line Lender may, in its sole discretion, make available from time to time until the Termination
Date advances (each, a “Swing Line Loan”) in accordance with any such notice,
notwithstanding that after making a requested Swing Line Loan, the sum of the Swing Line Lender’s
Pro Rata Share of the Revolving Outstanding and all outstanding Swing Line Loans, may exceed the
Swing Line Lender’s Pro Rata Share of the Revolving Commitment. The provisions of this Section
2.2.4 shall not relieve Lenders of their obligations to make Revolving Loans under Section
2.1.1; provided that if the Swing Line Lender makes a Swing Line Loan pursuant to any
such notice, such Swing Line Loan shall be in lieu of any Revolving Loan that otherwise may be made
by the Lenders pursuant to such notice. The aggregate amount of Swing Line Loans outstanding shall
not exceed at any time the Swing Line Availability. Until the Termination Date, the Company may
from time to time borrow, repay and reborrow under this Section 2.2.4. Each Swing Line
Loan shall be made pursuant to a Notice of Borrowing delivered by the Company to the Administrative
Agent in accordance with Section 2.2.2. Any such notice must be given no later than 12:00
p.m., Chicago time, on the Business Day of the proposed Swing Line Loan. Unless the Swing Line
Lender has received at least one Business Day’s prior written notice from the Required Lenders
instructing it not to make a Swing Line Loan, the Swing Line Lender shall, notwithstanding the
failure of any condition precedent set forth in Section 12.2, be entitled to fund that
Swing Line Loan, and to have such Lender make Revolving Loans in accordance with Section
2.2.4(c) or purchase participating interests in accordance with Section 2.2.4(d).
Notwithstanding any other provision of this Agreement or the other Loan Documents, each Swing Line
Loan shall constitute a Base Rate Loan. The Company shall repay the aggregate outstanding
principal amount of each Swing Line Loan upon demand therefor by the Administrative Agent.

               (b) The entire unpaid balance of each Swing Line Loan and all other noncontingent Obligations
shall be immediately due and payable in full in immediately available funds on the Termination Date
if not sooner paid in full.

               (c) The Swing Line Lender, at any time and from time to time no less frequently than once
weekly, shall on behalf of the Company (and the Company hereby irrevocably authorizes the Swing
Line Lender to so act on its behalf) request each Lender with a Revolving Commitment (including the
Swing Line Lender) to make a Revolving Loan to the Company (which shall be a Base Rate Loan) in an
amount equal to that Lender’s Pro Rata Share of the principal amount of all Swing Line Loans (the
“Refunded Swing Line Loan”) outstanding on the date such notice is given that were made in
conformity with Section 2.2.4(a). Unless any of the events described in Section
13.1.4 has occurred (in which event the procedures of Section 

- 20 -

 

2.2.4(d) shall apply) and regardless of whether the conditions precedent set forth in
this Agreement to the making of a Revolving Loan are then satisfied, each Lender shall disburse
directly to the Administrative Agent, its Pro Rata Share on behalf of the Swing Line Lender, prior
to 2:00 P.M., Chicago time, in immediately available funds on the date that notice is given
(provided that such notice is given by 2:00 P.M., Chicago time, on such date). The
proceeds of those Revolving Loans shall be immediately paid to the Swing Line Lender and applied to
repay the Refunded Swing Line Loan.

               (d) If, prior to refunding a Swing Line Loan with a Revolving Loan pursuant to Section
2.2.4(c), one of the events described in Section 13.1.4 has occurred, then, subject to
the provisions of Section 2.2.4(e) below, each Lender shall, on the date such Revolving
Loan was to have been made for the benefit of the Company, purchase from the Swing Line Lender an
undivided participation interest in the Swing Line Loan that were made in conformity with
Section 2.2.4(a) in an amount equal to its Pro Rata Share of such Swing Line Loan. Upon
request, each Lender shall promptly transfer to the Swing Line Lender, in immediately available
funds, the amount of its participation interest.

               (e) Each Lender’s obligation to make Revolving Loans in accordance with Section
2.2.4(c) and to purchase participation interests in accordance with Section 2.2.4(d)
shall be absolute and unconditional and shall not be affected by any circumstance, including (i)
any setoff, counterclaim, recoupment, defense or other right that such Lender may have against the
Swing Line Lender, the Company or any other Person for any reason whatsoever; (ii) the occurrence
or continuance of any Unmatured Event of Default or Event of Default; (iii) any inability of the
Company to satisfy the conditions precedent to borrowing set forth in this Agreement at any time or
(iv) any other circumstance, happening or event whatsoever, whether or not similar to any of the
foregoing. If and to the extent any Lender shall not have made such amount available to the
Administrative Agent or the Swing Line Lender, as applicable, by 2:00 P.M., Chicago time, the
amount required pursuant to Sections 2.2.4(c) or 2.2.4(d), as the case may be, on the
Business Day on which such Lender receives notice from the Administrative Agent of such payment or
disbursement (it being understood that any such notice received after noon, Chicago time, on any
Business Day shall be deemed to have been received on the next following Business Day), such Lender
agrees to pay interest on such amount to the Administrative Agent for the Swing Line Lender’s
account forthwith on demand, for each day from the date such amount was to have been delivered to
the Administrative Agent to the date such amount is paid, at a rate per annum equal to (a) for the
first three days after demand, the Federal Funds Rate from time to time in effect and (b)
thereafter, the Base Rate from time to time in effect.

     2.3 Letter of Credit Procedures.

          2.3.1 L/C Applications. The Company shall execute and deliver to the Issuing Lender
the Master Letter of Credit Agreement from time to time in effect. The Company shall give notice
to the Administrative Agent and the Issuing Lender of the proposed issuance of each Letter of
Credit on a Business Day which is at least three Business Days (or such lesser number of days as
the Administrative Agent and the Issuing Lender shall agree in any particular instance in their
sole discretion) prior to the proposed date of issuance of such Letter of Credit. Each such notice
shall be accompanied by an L/C Application, duly executed by the Company

- 21 -

 

and in all respects satisfactory to the Administrative Agent and the Issuing Lender, together
with such other documentation as the Administrative Agent or the Issuing Lender may request in
support thereof, it being understood that each L/C Application shall specify, among other things,
the date on which the proposed Letter of Credit is to be issued, the expiration date of such Letter
of Credit (which shall not be later than 25 days prior to the scheduled Termination Date (unless
such Letter of Credit is Cash Collateralized)) and whether such Letter of Credit is to be
transferable in whole or in part. Any Letter of Credit outstanding after the scheduled Termination
Date which is Cash Collateralized for the benefit of the Issuing Lender shall be the sole
responsibility of the Issuing Lender. So long as the Issuing Lender has not received written
notice that the conditions precedent set forth in Section 12 with respect to the issuance
of such Letter of Credit have not been satisfied, the Issuing Lender shall issue such Letter of
Credit on the requested issuance date. The Issuing Lender shall promptly advise the Administrative
Agent of the issuance of each Letter of Credit and of any amendment thereto, extension thereof or
event or circumstance changing the amount available for drawing thereunder. In the event of any
inconsistency between the terms of the Master Letter of Credit Agreement, any L/C Application and
the terms of this Agreement, the terms of this Agreement shall control.

          2.3.2 Participations in Letters of Credit. Concurrently with the issuance of each
Letter of Credit, the Issuing Lender shall be deemed to have sold and transferred to each Lender
with a Revolving Loan Commitment, and each such Lender shall be deemed irrevocably and
unconditionally to have purchased and received from the Issuing Lender, without recourse or
warranty, an undivided interest and participation, to the extent of such Lender’s Pro Rata Share,
in such Letter of Credit and the Company’s reimbursement obligations with respect thereto. If the
Company does not pay any reimbursement obligation when due, the Company shall be deemed to have
immediately requested that the Lenders make a Revolving Loan which is a Base Rate Loan in a
principal amount equal to such reimbursement obligations. The Administrative Agent shall promptly
notify such Lenders of such deemed request and, without the necessity of compliance with the
requirements of Section 2.2.2, 12.2 or otherwise such Lender shall make available
to the Administrative Agent its Pro Rata Share of such Loan. The proceeds of such Loan shall be
paid over by the Administrative Agent to the Issuing Lender for the account of the Company in
satisfaction of such reimbursement obligations. For the purposes of this Agreement, the
unparticipated portion of each Letter of Credit shall be deemed to be the Issuing Lender’s
“participation” therein. The Issuing Lender hereby agrees, upon request of the Administrative
Agent or any Lender, to deliver to the Administrative Agent or such Lender a list of all
outstanding Letters of Credit issued by the Issuing Lender, together with such information related
thereto as the Administrative Agent or such Lender may reasonably request.

          2.3.3 Reimbursement Obligations. (a) The Company hereby unconditionally and
irrevocably agrees to reimburse the Issuing Lender for each payment or disbursement made by the
Issuing Lender under any Letter of Credit honoring any demand for payment made by the beneficiary
thereunder, in each case on the date that such payment or disbursement is made. Any amount not
reimbursed on the date of such payment or disbursement shall bear interest from the date of such
payment or disbursement to the date that the Issuing Lender is reimbursed by the Company therefor,
payable on demand, at a rate per annum equal to the Base Rate from time to time in effect
plus the Base Rate Margin from time to time in effect plus, beginning on the third
Business Day after receipt of notice from the Issuing Lender of such payment or disbursement, 2%.
The Issuing Lender shall notify the Company and the

- 22 -

 

Administrative Agent whenever any demand for payment is made under any Letter of Credit by the
beneficiary thereunder; provided that the failure of the Issuing Lender to so notify the
Company or the Administrative Agent shall not affect the rights of the Issuing Lender or the
Lenders in any manner whatsoever.

               (b) The Company’s reimbursement obligations hereunder shall be irrevocable and unconditional
under all circumstances, including (a) any lack of validity or enforceability of any Letter of
Credit, this Agreement or any other Loan Document, (b) the existence of any claim, set-off, defense
or other right which any Loan Party may have at any time against a beneficiary named in a Letter of
Credit, any transferee of any Letter of Credit (or any Person for whom any such transferee may be
acting), the Administrative Agent, the Issuing Lender, any Lender or any other Person, whether in
connection with any Letter of Credit, this Agreement, any other Loan Document, the transactions
contemplated herein or any unrelated transactions (including any underlying transaction between any
Loan Party and the beneficiary named in any Letter of Credit), (c) the validity, sufficiency or
genuineness of any document which the Issuing Lender has determined complies on its face with the
terms of the applicable Letter of Credit, even if such document should later prove to have been
forged, fraudulent, invalid or insufficient in any respect or any statement therein shall have been
untrue or inaccurate in any respect, or (d) the surrender or impairment of any security for the
performance or observance of any of the terms hereof. Without limiting the foregoing, no action or
omission whatsoever by the Administrative Agent or any Lender (excluding any Lender in its capacity
as the Issuing Lender) under or in connection with any Letter of Credit or any related matters
shall result in any liability of the Administrative Agent or any Lender to the Company, or relieve
the Company of any of its obligations hereunder to any such Person.

          2.3.4 Funding by Lenders to Issuing Lender. If the Issuing Lender makes any payment
or disbursement under any Letter of Credit issued in accordance with the terms hereof and (a) the
Company has not reimbursed the Issuing Lender in full for such payment or disbursement by 11:00
A.M., Chicago time, on the date of such payment or disbursement, (b) a Revolving Loan may not be
made in accordance with Section 2.3.2 or (c) any reimbursement received by the Issuing
Lender from the Company is or must be returned or rescinded upon or during any bankruptcy or
reorganization of the Company or otherwise, each other Lender with a Revolving Loan Commitment
shall be obligated to pay to the Administrative Agent for the account of the Issuing Lender, in
full or partial payment of the purchase price of its participation in such Letter of Credit, its
Pro Rata Share of such payment or disbursement (but no such payment shall diminish the obligations
of the Company under Section 2.3.3), and, upon notice from the Issuing Lender, the
Administrative Agent shall promptly notify each other Lender thereof. Each other Lender
irrevocably and unconditionally agrees to so pay to the Administrative Agent in immediately
available funds for the Issuing Lender’s account the amount of such other Lender’s Pro Rata Share
of such payment or disbursement. If and to the extent any Lender shall not have made such amount
available to the Administrative Agent by 2:00 P.M., Chicago time, on the Business Day on which such
Lender receives notice from the Administrative Agent of such payment or disbursement (it being
understood that any such notice received after noon, Chicago time, on any Business Day shall be
deemed to have been received on the next following Business Day), such Lender agrees to pay
interest on such amount to the Administrative Agent for the Issuing Lender’s account forthwith on
demand, for each day from the date such amount was to have been delivered to the Administrative
Agent to the date such

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amount is paid, at a rate per annum equal to (a) for the first three days after demand, the
Federal Funds Rate from time to time in effect and (b) thereafter, the Base Rate from time to time
in effect. Any Lender’s failure to make available to the Administrative Agent its Pro Rata Share
of any such payment or disbursement shall not relieve any other Lender of its obligation hereunder
to make available to the Administrative Agent such other Lender’s Pro Rata Share of such payment,
but no Lender shall be responsible for the failure of any other Lender to make available to the
Administrative Agent such other Lender’s Pro Rata Share of any such payment or disbursement.

     2.4 Commitments Several. The failure of any Lender to make a requested Loan on any
date shall not relieve any other Lender of its obligation (if any) to make a Loan on such date, but
no Lender shall be responsible for the failure of any other Lender to make any Loan to be made by
such other Lender.

     2.5 Certain Conditions. Except as otherwise provided in Sections 2.2.4 and
2.3.4 of this Agreement, no Lender shall have an obligation to make any Loan, or to permit
the continuation of or any conversion into any LIBOR Loan, and the Issuing Lender shall not have
any obligation to issue any Letter of Credit, if an Event of Default or Unmatured Event of Default
exists.

     2.6 Appointment of the Parent as Agent for Co-Borrowers; Reliance by Administrative
Agent. Each Co-Borrower irrevocably appoints the Parent as its agent hereunder to make
requests on such Co-Borrower’s behalf under Section 2 hereof for borrowings to be made by
such Co-Borrower and for Letters of Credit to be issued for such Co-Borrower’s sole or joint
account, to select on such Co-Borrower’s behalf the interest rate to be applicable under
Section 2 hereof to Borrowings made by such Co-Borrower and to take any other action
contemplated by the Loan Documents with respect to credit extended hereunder to such Co-Borrower.
The Administrative Agent and the Lenders shall be entitled to conclusively presume that any action
by the Parent under the Loan Documents is taken on behalf of any one or more of the relevant
Co-Borrowers whether or not the Parent so indicates.

SECTION 3 EVIDENCING OF LOANS.

     3.1 Notes. The Loans of each Lender shall be evidenced by a Note, with appropriate
insertions, payable to the order of such Lender in a face principal amount equal to the sum of such
Lender’s Revolving Commitment.

     3.2 Recordkeeping. The Administrative Agent, on behalf of each Lender, shall record
in its records, the date and amount of each Loan made by each Lender, each repayment or conversion
thereof and, in the case of each LIBOR Loan, the dates on which each Interest Period for such Loan
shall begin and end. The aggregate unpaid principal amount so recorded shall be rebuttably
presumptive evidence of the principal amount of the Loans owing and unpaid. The failure to so
record any such amount or any error in so recording any such amount shall not, however, limit or
otherwise affect the Obligations of the Company hereunder or under any Note to repay the principal
amount of the Loans hereunder, together with all interest accruing thereon.

SECTION 4 INTEREST.

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     4.1 Interest Rates. The Company promises to pay interest on the unpaid principal
amount of each Loan for the period commencing on the date of such Loan until such Loan is paid in
full as follows:

               (a) at all times while such Loan is a Base Rate Loan, at a rate per annum equal to the sum of
the Base Rate from time to time in effect plus the Base Rate Margin from time to time in effect;
and

               (b) at all times while such Loan is a LIBOR Loan, at a rate per annum equal to the sum of the
LIBOR Rate applicable to each Interest Period for such Loan plus the LIBOR Margin from time to time
in effect;

provided that at any time an Event of Default exists, unless the Required Lenders otherwise
consent, the interest rate applicable to each Loan shall be increased by 2% (and, in the case of
Obligations not bearing interest, such Obligations shall bear interest if not paid when due, from
the due date until paid, at the Base Rate applicable to Revolving Loans plus 2%), provided
further that such increase may thereafter be rescinded by the Required Lenders,
notwithstanding Section 15.1. Notwithstanding the foregoing, upon the occurrence of an
Event of Default under Section 13.1.1 or 13.1.4, such increase shall occur
automatically.

     4.2 Interest Payment Dates. Accrued interest on each Base Rate Loan shall be payable
in arrears on the last day of each calendar quarter and at maturity. Accrued interest on each
LIBOR Loan shall be payable on the last day of each Interest Period relating to such Loan (and, in
the case of a LIBOR Loan with an Interest Period in excess of three months, on the three-month
anniversary of the first day of such Interest Period), upon a prepayment of such Loan, and at
maturity. After maturity, and at any time an Event of Default exists, accrued interest on all
Loans shall be payable on demand.

     4.3 Setting and Notice of LIBOR Rates. The applicable LIBOR Rate for each Interest
Period shall be determined by the Administrative Agent, and notice thereof shall be given by the
Administrative Agent promptly to the Company and each Lender. Each determination of the applicable
LIBOR Rate by the Administrative Agent shall be conclusive and binding upon the parties hereto, in
the absence of demonstrable error. The Administrative Agent shall, upon written request of the
Company or any Lender, deliver to the Company or such Lender a statement showing the computations
used by the Administrative Agent in determining any applicable LIBOR Rate hereunder.

     4.4 Computation of Interest. Interest shall be computed for the actual number of days
elapsed on the basis of a year of 360 days; provided that calculations of interest with respect to
Base Rate Loans shall be for the actual number of days elapsed on the basis of a year of 365/366
days. The applicable interest rate for each Base Rate Loan shall change simultaneously with each
change in the Base Rate.

SECTION 5 FEES.

     5.1 Non-Use Fee. The Company agrees to pay to the Administrative Agent for the
account of each Lender a non-use fee, for the period from the Closing Date to the Termination Date,
at the Non-Use Fee Rate in effect from time to time of such Lender’s Pro Rata Share (as

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adjusted from time to time) of the unused amount of the Aggregate Revolving Commitment. For
purposes of calculating usage under this Section, the Aggregate Revolving Commitment shall be
deemed used to the extent of Revolving Outstandings. Such non-use fee shall be payable in arrears
on the last day of each calendar quarter and on the Termination Date for any period then ending for
which such non-use fee shall not have previously been paid. The non-use fee shall be computed for
the actual number of days elapsed on the basis of a year of 360 days.

     5.2 Letter of Credit Fees. (a) The Company agrees to pay to the Administrative Agent
for the account of each Lender a letter of credit fee for each Letter of Credit equal to the L/C
Fee Rate in effect from time to time of such Lender’s Pro Rata Share (as adjusted from time to
time) of the undrawn amount of such Letter of Credit (computed for the actual number of days
elapsed on the basis of a year of 360 days); provided that, unless the Required Lenders
otherwise consent, the rate applicable to each Letter of Credit shall be increased by 2% per annum
at any time that an Event of Default exists. Such letter of credit fee shall be payable in arrears
on the last day of each calendar quarter and on the Termination Date (or such later date on which
such Letter of Credit expires or is terminated) for the period from the date of the issuance of
each Letter of Credit (or the last day on which the letter of credit fee was paid with respect
thereto) to the date such payment is due or, if earlier, the date on which such Letter of Credit
expired or was terminated.

               (b) In addition, with respect to each Letter of Credit, the Company agrees to pay to the
Issuing Lender, for its own account, (i) such fees and expenses as the Issuing Lender customarily
requires in connection with the issuance, negotiation, processing and/or administration of letters
of credit in similar situations and (ii) a letter of credit fronting fee in the amount and at the
times agreed to by the Company and the Issuing Lender.

     5.3 Administrative Agent’s Fees. The Company agrees to pay to the Administrative
Agent such agent’s fees as are mutually agreed to from time to time by the Company and the
Administrative Agent including the fees set forth in the Agent Fee Letter; it being understood that
letter of credit fees which are described in Section 5.2 shall be payable on the terms
therein notwithstanding that such fees may be described in the Agent Fee Letter.

SECTION 6 REDUCTION OR TERMINATION OF THE REVOLVING COMMITMENT; PREPAYMENTS.

     6.1 Reduction or Termination of the Revolving Commitment.

          6.1.1 Voluntary Reduction or Termination of the Revolving Commitment. The Company may
from time to time on at least five Business Days’ prior written notice received by the
Administrative Agent (which shall promptly advise each Lender thereof) permanently reduce the
Aggregate Revolving Commitment to an amount not less than the Revolving Outstandings plus
the outstanding amount of all Swing Line Loans. Any such reduction shall be in an amount not less
than $5,000,000 or a higher integral multiple of $1,000,000. Concurrently with any reduction of
the Aggregate Revolving Commitment to zero, the Company shall pay all interest on the Revolving
Loans, all non-use fees and all letter of credit fees and shall Cash Collateralize in full all
obligations arising with respect to the Letters of Credit.

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          6.1.2 INTENTIONALLY OMITTED.

          6.1.3 All Reductions of the Revolving Commitment. All reductions of the Aggregate
Revolving Commitment shall reduce the Revolving Commitments of the Lenders ratably according to
their respective Pro Rata Shares.

     6.2 Prepayments.

          6.2.1 Voluntary Prepayments. The Company may from time to time prepay, without
premium or penalty (except as provided in Section 8.4), the Loans in whole or in part;
provided that the Company shall give the Administrative Agent (which shall promptly advise
each Lender) notice thereof not later than 11:00 A.M., Chicago time, on the day of such prepayment
(which shall be a Business Day), specifying the Loans to be prepaid and the date and amount of
prepayment. Any such partial prepayment shall be in an amount equal to $1,000,000 or a higher
integral multiple of $1,000,000.

          6.2.2 Mandatory Prepayments. If on any day on which the Revolving Commitment is
reduced pursuant to Section 6.1 the Revolving Outstandings plus the outstanding
amount of the Swing Line Loan exceeds the Revolving Commitment, the Company shall immediately
prepay Revolving Loans or Cash Collateralize the outstanding Letters of Credit, or do a combination
of the foregoing, in an amount sufficient to eliminate such excess.

     6.3 Manner of Prepayments.

          6.3.1 All Prepayments. Each voluntary partial prepayment shall be in a principal
amount of $1,000,000 or a higher integral multiple of $1,000,000. Any partial prepayment of a
Group of LIBOR Loans shall be subject to the proviso to Section 2.2.3(a). Any prepayment
of a LIBOR Loan on a day other than the last day of an Interest Period therefor shall include
interest on the principal amount being repaid and shall be subject to Section 8.4. Except
as otherwise provided by this Agreement, all principal payments in respect of the Loans (other than
the Swing Line Loans) shall be applied first, to repay outstanding Base Rate Loans and then to
repay outstanding LIBOR Rate Loans in direct order of Interest Period maturities.

     6.4 Repayments.

          6.4.1 Revolving Loans. The Revolving Loans of each Lender shall be paid in full and
the Revolving Commitment shall terminate on the Termination Date.

SECTION 7 MAKING AND PRORATION OF PAYMENTS; SETOFF; TAXES.

     7.1 Making of Payments. All payments of principal or interest on the Notes, and of
all fees, shall be made by the Company to the Administrative Agent in immediately available funds
at the office specified by the Administrative Agent not later than 12:00 p.m., Chicago time, on the
date due; and funds received after that time shall be deemed to have been received by the
Administrative Agent on the following Business Day. The Administrative Agent shall promptly remit
to each Lender its share of all such payments received in collected funds by the Administrative
Agent for the account of such Lender. All payments under Section 8.1 shall be

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made by the Company directly to the Lender entitled thereto without setoff, counterclaim or
other defense.

     7.2 Application of Certain Payments. So long as no Unmatured Event of Default or
Event of Default has occurred and is continuing, (a) payments matching specific scheduled payments
then due shall be applied to those scheduled payments and (b) voluntary and mandatory prepayments
shall be applied as set forth in Sections 6.2 and 6.3. After the occurrence and
during the continuance of an Unmatured Event of Default or Event of Default, all amounts collected
or received by the Administrative Agent or any Lender as proceeds from the sale of, or other
realization upon, all or any part of the collateral shall be applied as set forth in the Security
Agreement. Concurrently with each remittance to any Lender of its share of any such payment, the
Administrative Agent shall advise such Lender as to the application of such payment.

     7.3 Due Date Extension. If any payment of principal or interest with respect to any
of the Loans, or of any fees, falls due on a day which is not a Business Day, then such due date
shall be extended to the immediately following Business Day (unless, in the case of a LIBOR Loan,
such immediately following Business Day is the first Business Day of a calendar month, in which
case such due date shall be the immediately preceding Business Day) and, in the case of principal,
additional interest shall accrue and be payable for the period of any such extension.

     7.4 Setoff. The Company agrees that the Administrative Agent and each Lender have all
rights of set-off and bankers’ lien provided by applicable law, and in addition thereto, the
Company agrees that at any time any Event of Default exists, the Administrative Agent and each
Lender may apply to the payment of any Obligations of the Company hereunder, whether or not then
due, any and all balances, credits, deposits, accounts or moneys of the Company then or thereafter
with the Administrative Agent or such Lender.

     7.5 Proration of Payments. If any Lender shall obtain any payment or other recovery
(whether voluntary, involuntary, by application of offset or otherwise, on account of (a) principal
of or interest on any Loan, but excluding (i) any payment pursuant to Section 8.7 or
15.6 and (ii) payments of interest on any Affected Loan or (b) its participation in any
Letter of Credit) in excess of its applicable Pro Rata Share (determined pursuant to subpart (c) of
the definition of Pro Rata Share herein) of payments and other recoveries obtained by all Lenders
on account of principal of and interest on the Loans (or such participation) then held by them,
then such Lender shall purchase from the other Lenders such participations in the Loans (or
sub-participations in Letters of Credit) held by them as shall be necessary to cause such
purchasing Lender to share the excess payment or other recovery ratably with each of them;
provided that if all or any portion of the excess payment or other recovery is thereafter
recovered from such purchasing Lender, the purchase shall be rescinded and the purchase price
restored to the extent of such recovery.

     7.6 Taxes.

               (a) All payments made by the Company hereunder or under any Loan Documents shall be made
without setoff, counterclaim, or other defense. To the extent permitted by applicable law, all
payments hereunder or under the Loan Documents (including any payment

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of principal, interest, or fees) to, or for the benefit, of any person shall be made by the
Company free and clear of and without deduction or withholding for, or account of, any Taxes now or
hereinafter imposed by any taxing authority.

               (b) If the Company makes any payment hereunder or under any Loan Document in respect of which
it is required by applicable law to deduct or withhold any Taxes, the Company shall increase the
payment hereunder or under any such Loan Document such that after the reduction for the amount of
Taxes withheld (and any taxes withheld or imposed with respect to the additional payments required
under this Section 7.6(b)), the amount paid to the Lenders or the Administrative Agent
equals the amount that was payable hereunder or under any such Loan Document without regard to this
Section 7.6(b). To the extent the Company withholds any Taxes on payments hereunder or
under any Loan Document, the Company shall pay the full amount deducted to the relevant taxing
authority within the time allowed for payment under applicable law and shall deliver to the
Administrative Agent within 30 days after it has made payment to such authority a receipt issued by
such authority (or other evidence satisfactory to the Administrative Agent) evidencing the payment
of all amounts so required to be deducted or withheld from such payment.

               (c) If any Lender or the Administrative Agent is required by law to make any payments of any
Taxes on or in relation to any amounts received or receivable hereunder or under any other Loan
Document, or any Tax is assessed against a Lender or the Administrative Agent with respect to
amounts received or receivable hereunder or under any other Loan Document, the Company will
indemnify such Lender or the Administrative Agent against (i) such Tax (and any reasonable counsel
fees and expenses associated with such Tax) and (ii) any taxes imposed as a result of the receipt
of the payment under this Section 7.6(c). A certificate prepared in good faith as to the
amount of such payment by such Lender or the Administrative Agent shall, absent manifest error, be
final, conclusive, and binding on all parties.

               (d) (i) To the extent permitted by applicable law, each Lender that is not a United States
person within the meaning of Code section 7701(a)(30) (a “Non-U.S. Participant”) shall
deliver to the Company and the Administrative Agent on or prior to the Closing Date (or in the case
of a Lender that is an Assignee, on the date of such assignment to such Lender) two accurate and
complete original signed copies of IRS Form W-8BEN, W-8ECI, or W-8IMY (or any successor or other
applicable form prescribed by the IRS) certifying to such Lender’s entitlement to a complete
exemption from, or a reduced rate in, United States withholding tax on interest payments to be made
hereunder or any Loan. If a Lender that is a Non-U.S. Participant is claiming a complete exemption
from withholding on interest pursuant to Sections 871(h) or 881(c) of the Code, the Lender shall
deliver (along with two accurate and complete original signed copies of IRS Form W-8BEN) a
certificate in form and substance reasonably acceptable to Administrative Agent (any such
certificate, a “Withholding Certificate”). In addition, each Lender that is a Non-U.S.
Participant agrees that from time to time after the Closing Date, (or in the case of a Lender that
is an Assignee, after the date of the assignment to such Lender), when a lapse in time (or change
in circumstances occurs) renders the prior certificates hereunder obsolete or inaccurate in any
material respect, such Lender shall, to the extent permitted under applicable law, deliver to the
Company and the Administrative Agent two new and accurate and complete original signed copies of an
IRS Form W-8BEN, W-8ECI, or W-8IMY (or any successor or other applicable forms prescribed by the
IRS), and if

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applicable, a new Withholding Certificate, to confirm or establish the entitlement of such
Lender or the Administrative Agent to an exemption from, or reduction in, United States withholding
tax on interest payments to be made hereunder or any Loan.

                    (ii) Each Lender that is not a Non-U.S. Participant (other than any such Lender which is taxed
as a corporation for U.S. federal income tax purposes) shall provide two properly completed and
duly executed copies of IRS Form W-9 (or any successor or other applicable form) to the Company and
the Administrative Agent certifying that such Lender is exempt from United States backup
withholding tax. To the extent that a form provided pursuant to this Section 7.6(d)(ii) is
rendered obsolete or inaccurate in any material respects as result of change in circumstances with
respect to the status of a Lender, such Lender shall, to the extent permitted by applicable law,
deliver to the Company and the Administrative Agent revised forms necessary to confirm or establish
the entitlement to such Lender’s or Agent’s exemption from United States backup withholding tax.

                    (iii) The Company shall not be required to pay additional amounts to a Lender, or indemnify
any Lender, under this Section 7.6 to the extent that such obligations would not have
arisen but for the failure of such Lender to comply with Section 7.6(d).

                    (iv) Each Lender agrees to indemnify the Administrative Agent and hold the Administrative
Agent harmless for the full amount of any and all present or future Taxes and related liabilities
(including penalties, interest, additions to tax and expenses, and any Taxes imposed by any
jurisdiction on amounts payable to the Administrative Agent under this Section 7.6) which
are imposed on or with respect to principal, interest or fees payable to such Lender hereunder and
which are not paid by the Company pursuant to this Section 7.6, whether or not such Taxes
or related liabilities were correctly or legally asserted. This indemnification shall be made
within 30 days from the date the Administrative Agent makes written demand therefor.

SECTION 8 INCREASED COSTS; SPECIAL PROVISIONS FOR LIBOR LOANS.

     8.1 Increased Costs. (a) If, after the date hereof, the adoption of, or any change
in, any applicable law, rule or regulation, or any change in the interpretation or administration
of any applicable law, rule or regulation by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance by any Lender with
any request or directive (whether or not having the force of law) of any such authority, central
bank or comparable agency: (i) shall impose, modify or deem applicable any reserve (including any
reserve imposed by the FRB, but excluding any reserve included in the determination of the LIBOR
Rate pursuant to Section 4), special deposit or similar requirement against assets of,
deposits with or for the account of, or credit extended by any Lender; or (ii) shall impose on any
Lender any other condition affecting its LIBOR Loans, its Note or its obligation to make LIBOR
Loans; and the result of anything described in clauses (i) and (ii) above is to increase the cost
to (or to impose a cost on) such Lender (or any LIBOR Office of such Lender) of making or
maintaining any LIBOR Loan, or to reduce the amount of any sum received or receivable by such
Lender (or its LIBOR Office) under this Agreement or under its Note with respect thereto, then upon
demand by such Lender (which demand shall be

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accompanied by a statement setting forth the basis for such demand and a calculation of the
amount thereof in reasonable detail, a copy of which shall be furnished to the Administrative
Agent), the Company shall pay directly to such Lender such additional amount as will compensate
such Lender for such increased cost or such reduction, so long as such amounts have accrued on or
after the day which is 180 days prior to the date on which such Lender first made demand therefor.

               (b) If any Lender shall reasonably determine that any change in, or the adoption or phase-in
of, any applicable law, rule or regulation regarding capital adequacy, or any change in the
interpretation or administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or the compliance by any Lender
or any Person controlling such Lender with any request or directive regarding capital adequacy
(whether or not having the force of law) of any such authority, central bank or comparable agency,
has or would have the effect of reducing the rate of return on such Lender’s or such controlling
Person’s capital as a consequence of such Lender’s obligations hereunder or under any Letter of
Credit to a level below that which such Lender or such controlling Person could have achieved but
for such change, adoption, phase-in or compliance (taking into consideration such Lender’s or such
controlling Person’s policies with respect to capital adequacy) by an amount deemed by such Lender
or such controlling Person to be material, then from time to time, upon demand by such Lender
(which demand shall be accompanied by a statement setting forth the basis for such demand and a
calculation of the amount thereof in reasonable detail, a copy of which shall be furnished to the
Administrative Agent), the Company shall pay to such Lender such additional amount as will
compensate such Lender or such controlling Person for such reduction so long as such amounts have
accrued on or after the day which is 180 days prior to the date on which such Lender first made
demand therefor.

     8.2 Basis for Determining Interest Rate Inadequate or Unfair. If

               (a) the Administrative Agent reasonably determines (which determination shall be binding and
conclusive on the Company) that by reason of circumstances affecting the interbank LIBOR market
adequate and reasonable means do not exist for ascertaining the applicable LIBOR Rate; or

               (b) the Required Lenders advise the Administrative Agent that the LIBOR Rate as determined by
the Administrative Agent will not adequately and fairly reflect the cost to such Lenders of
maintaining or funding LIBOR Loans for such Interest Period (taking into account any amount to
which such Lenders may be entitled under Section 8.1) or that the making or funding of
LIBOR Loans has become impracticable as a result of an event occurring after the date of this
Agreement which in the opinion of such Lenders materially affects such Loans;

then the Administrative Agent shall promptly notify the other parties thereof and, so long
as such circumstances shall continue, (i) no Lender shall be under any obligation to make or
convert any Base Rate Loans into LIBOR Loans and (ii) on the last day of the current Interest
Period for each LIBOR Loan, such Loan shall, unless then repaid in full, automatically convert to a
Base Rate Loan.

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     8.3 Changes in Law Rendering LIBOR Loans Unlawful. If any change in, or the adoption
of any new, law or regulation, or any change in the interpretation of any applicable law or
regulation by any governmental or other regulatory body charged with the administration thereof,
should make it (or in the good faith judgment of any Lender cause a substantial question as to
whether it is) unlawful for any Lender to make, maintain or fund LIBOR Loans, then such Lender
shall promptly notify each of the other parties hereto and, so long as such circumstances shall
continue, (a) such Lender shall have no obligation to make or convert any Base Rate Loan into a
LIBOR Loan (but shall make Base Rate Loans concurrently with the making of or conversion of Base
Rate Loans into LIBOR Loans by the Lenders which are not so affected, in each case in an amount
equal to the amount of LIBOR Loans which would be made or converted into by such Lender at such
time in the absence of such circumstances) and (b) on the last day of the current Interest Period
for each LIBOR Loan of such Lender (or, in any event, on such earlier date as may be required by
the relevant law, regulation or interpretation), such LIBOR Loan shall, unless then repaid in full,
automatically convert to a Base Rate Loan. Each Base Rate Loan made by a Lender which, but for the
circumstances described in the foregoing sentence, would be a LIBOR Loan (an “Affected
Loan”) shall remain outstanding for the period corresponding to the Group of LIBOR Loans of
which such Affected Loan would be a part absent such circumstances.

     8.4 Funding Losses. The Company hereby agrees that upon demand by any Lender (which
demand shall be accompanied by a statement setting forth the basis for the amount being claimed, a
copy of which shall be furnished to the Administrative Agent), the Company will indemnify such
Lender against any net loss or expense which such Lender may sustain or incur (including any net
loss or expense incurred by reason of the liquidation or reemployment of deposits or other funds
acquired by such Lender to fund or maintain any LIBOR Loan), as reasonably determined by such
Lender, as a result of (a) any payment, prepayment or conversion of any LIBOR Loan of such Lender
on a date other than the last day of an Interest Period for such Loan (including any conversion
pursuant to Section 8.3) or (b) any failure of the Company to borrow, convert or continue
any Loan on a date specified therefor in a notice of borrowing, conversion or continuation pursuant
to this Agreement. For this purpose, all notices to the Administrative Agent pursuant to this
Agreement shall be deemed to be irrevocable.

     8.5 Right of Lenders to Fund through Other Offices. Each Lender may, if it so elects,
fulfill its commitment as to any LIBOR Loan by causing a foreign branch or Affiliate of such Lender
to make such Loan; provided that in such event for the purposes of this Agreement such Loan
shall be deemed to have been made by such Lender and the obligation of the Company to repay such
Loan shall nevertheless be to such Lender and shall be deemed held by it, to the extent of such
Loan, for the account of such branch or Affiliate.

     8.6 Discretion of Lenders as to Manner of Funding. Notwithstanding any provision of
this Agreement to the contrary, each Lender shall be entitled to fund and maintain its funding of
all or any part of its Loans in any manner it sees fit, it being understood, however, that for the
purposes of this Agreement all determinations hereunder shall be made as if such Lender had
actually funded and maintained each LIBOR Loan during each Interest Period for such Loan through
the purchase of deposits having a maturity corresponding to such Interest Period and bearing an
interest rate equal to the LIBOR Rate for such Interest Period.

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     8.7 Mitigation of Circumstances; Replacement of Lenders. (a) Each Lender shall
promptly notify the Company and the Administrative Agent of any event of which it has knowledge
which will result in, and will use reasonable commercial efforts available to it (and not, in such
Lender’s sole judgment, otherwise disadvantageous to such Lender) to mitigate or avoid, (i) any
obligation by the Company to pay any amount pursuant to Section 7.6 or 8.1 or (ii)
the occurrence of any circumstances described in Section 8.2 or 8.3 (and, if any
Lender has given notice of any such event described in clause (i) or (ii) above and thereafter such
event ceases to exist, such Lender shall promptly so notify the Company and the Administrative
Agent). Without limiting the foregoing, each Lender will designate a different funding office if
such designation will avoid (or reduce the cost to the Company of) any event described in clause
(i) or (ii) above and such designation will not, in such Lender’s sole judgment, be otherwise
disadvantageous to such Lender.

               (b) If the Company becomes obligated to pay additional amounts to any Lender pursuant to
Section 7.6 or 8.1, or any Lender gives notice of the occurrence of any
circumstances described in Section 8.2 or 8.3, the Company may designate another
bank which is acceptable to the Administrative Agent and the Issuing Lender in their reasonable
discretion (such other bank being called a “Replacement Lender”) to purchase the Loans of
such Lender and such Lender’s rights hereunder, without recourse to or warranty by, or expense to,
such Lender, for a purchase price equal to the outstanding principal amount of the Loans payable to
such Lender plus any accrued but unpaid interest on such Loans and all accrued but unpaid fees owed
to such Lender and any other amounts payable to such Lender under this Agreement, and to assume all
the obligations of such Lender hereunder, and, upon such purchase and assumption (pursuant to an
Assignment Agreement), such Lender shall no longer be a party hereto or have any rights hereunder
(other than rights with respect to indemnities and similar rights applicable to such Lender prior
to the date of such purchase and assumption) and shall be relieved from all obligations to the
Company hereunder, and the Replacement Lender shall succeed to the rights and obligations of such
Lender hereunder.

     8.8 Conclusiveness of Statements; Survival of Provisions. Determinations and
statements of any Lender pursuant to Section 8.1, 8.2, 8.3 or 8.4
shall be conclusive absent demonstrable error. Lenders may use reasonable averaging and
attribution methods in determining compensation under Sections 8.1 and 8.4, and the
provisions of such Sections shall survive repayment of the Obligations, cancellation of any Notes,
expiration or termination of the Letters of Credit and termination of this Agreement.

SECTION 9 REPRESENTATIONS AND WARRANTIES.

     To induce the Administrative Agent and the Lenders to enter into this Agreement and to induce
the Lenders to make Loans and issue and participate in Letters of Credit hereunder, the Company
represents and warrants to the Administrative Agent and the Lenders that:

     9.1 Organization. Each Loan Party is validly existing and in good standing under the
laws of its jurisdiction of organization; and each Loan Party is duly qualified to do business in
each jurisdiction where, because of the nature of its activities or properties, such qualification
is required, except for such jurisdictions where the failure to so qualify would not have a
Material Adverse Effect.

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     9.2 Authorization; No Conflict. Each Loan Party is duly authorized to execute and
deliver each Loan Document to which it is a party, the Company is duly authorized to borrow monies
hereunder and each Loan Party is duly authorized to perform its Obligations under each Loan
Document to which it is a party. The execution, delivery and performance by each Loan Party of
each Loan Document to which it is a party, and the borrowings by the Company hereunder, do not and
will not (a) require any consent or approval of any governmental agency or authority (other than
any consent or approval which has been obtained and is in full force and effect), (b) conflict with
(i) any provision of law, (ii) the charter, by-laws or other organizational documents of any Loan
Party or (iii) any agreement, indenture, instrument or other document, or any judgment, order or
decree, which is binding upon any Loan Party or any of their respective properties or (c) require,
or result in, the creation or imposition of any Lien on any asset of any Loan Party (other than
Liens in favor of the Administrative Agent created pursuant to the Collateral Documents).

     9.3 Validity and Binding Nature. Each of this Agreement and each other Loan Document
to which any Loan Party is a party is the legal, valid and binding obligation of such Person,
enforceable against such Person in accordance with its terms, subject to bankruptcy, insolvency and
similar laws affecting the enforceability of creditors’ rights generally and to general principles
of equity.

     9.4 Financial Condition. The audited consolidated financial statements of the Company
and its Subsidiaries as at February 28, 2005 and the unaudited consolidated financial statements of
the Company and the Subsidiaries as at November 30, 2005, copies of each of which have been
delivered to each Lender, were prepared in accordance with GAAP (subject, in the case of such
unaudited statements, to the absence of footnotes and to normal year-end adjustments) and present
fairly the consolidated financial condition of the Company and its Subsidiaries as at such dates
and the results of their operations for the periods then ended.

     9.5 No Material Adverse Change. Since February 28, 2005, there has been no material
adverse change in the financial condition, operations, assets, business, properties or prospects of
the Loan Parties taken as a whole.

     9.6 Litigation and Contingent Liabilities. No litigation (including derivative
actions), arbitration proceeding or governmental investigation or proceeding is pending or, to the
Company’s knowledge, threatened against any Loan Party which might reasonably be expected to have a
Material Adverse Effect, except as set forth in Schedule 9.6. Other than any liability
incident to such litigation or proceedings, no Loan Party has any material contingent liabilities
not listed on Schedule 9.6 or permitted by Section 11.1.

     9.7 Ownership of Properties; Liens. Each Loan Party owns good and, in the case of
real property, marketable title to all of its properties and assets, real and personal, tangible
and intangible, of any nature whatsoever (including patents, trademarks, trade names, service marks
and copyrights), free and clear of all Liens, charges and claims (including infringement claims
with respect to patents, trademarks, service marks, copyrights and the like) except as permitted by
Section 11.2.

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     9.8 Equity Ownership; Subsidiaries. All issued and outstanding Capital Securities of
each Loan Party are duly authorized and validly issued, fully paid, non-assessable, and free and
clear of all Liens other than those in favor of the Administrative Agent, and such securities were
issued in compliance with all applicable state and federal laws concerning the issuance of
securities. Schedule 9.8 sets forth the authorized Capital Securities of each Loan Party
as of the Closing Date. All of the issued and outstanding Capital Securities of the Company are
owned as set forth on Schedule 9.8 as of the Closing Date, and all of the issued and
outstanding Capital Securities of each Wholly-Owned Subsidiary is, directly or indirectly, owned by
the Company. As of the Closing Date, except as set forth on Schedule 9.8, there are no
pre-emptive or other outstanding rights, options, warrants, conversion rights or other similar
agreements or understandings for the purchase or acquisition of any Capital Securities of any Loan
Party.

     9.9 Pension Plans. (a) The Unfunded Liability of all Pension Plans does not in the
aggregate exceed twenty percent of the Total Plan Liability for all such Pension Plans. Each
Pension Plan complies in all material respects with all applicable requirements of law and
regulations. No contribution failure under Section 412 of the Code, Section 302 of ERISA or the
terms of any Pension Plan has occurred with respect to any Pension Plan, sufficient to give rise to
a Lien under Section 302(f) of ERISA, or otherwise to have a Material Adverse Effect. There are no
pending or, to the knowledge of Company, threatened, claims, actions, investigations or lawsuits
against any Pension Plan, any fiduciary of any Pension Plan, or Company or other any member of the
Controlled Group with respect to a Pension Plan or a Multiemployer Pension Plan which could
reasonably be expected to have a Material Adverse Effect. Neither the Company nor any other member
of the Controlled Group has engaged in any prohibited transaction (as defined in Section 4975 of
the Code or Section 406 of ERISA) in connection with any Pension Plan or Multiemployer Pension Plan
which would subject that Person to any material liability. Within the past five years, neither the
Company nor any other member of the Controlled Group has engaged in a transaction which resulted in
a Pension Plan with an Unfunded Liability being transferred out of the Controlled Group, which
could reasonably be expected to have a Material Adverse Effect. No Termination Event has occurred
or is reasonably expected to occur with respect to any Pension Plan, which could reasonably be
expected to have a Material Adverse Effect.

               (b) All contributions (if any) have been made to any Multiemployer Pension Plan that are
required to be made by the Company or any other member of the Controlled Group under the terms of
the plan or of any collective bargaining agreement or by applicable law; neither the Company nor
any other member of the Controlled Group has withdrawn or partially withdrawn from any
Multiemployer Pension Plan, incurred any withdrawal liability with respect to any such plan or
received notice of any claim or demand for withdrawal liability or partial withdrawal liability
from any such plan, and no condition has occurred which, if continued, could result in a withdrawal
or partial withdrawal from any such plan; and neither the Company nor any other member of the
Controlled Group has received any notice that any Multiemployer Pension Plan is in reorganization,
that increased contributions may be required to avoid a reduction in plan benefits or the
imposition of any excise tax, that any such plan is or has been funded at a rate less than that
required under Section 412 of the Code, that any such plan is or may be terminated, or that any
such plan is or may become insolvent.

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     9.10 Investment Company Act. No Loan Party is an “investment company” or a company
“controlled” by an “investment company” or a “subsidiary” of an “investment company,” within the
meaning of the Investment Company Act of 1940.

     9.11 Public Utility Holding Company Act. No Loan Party is a “holding company”, or a
“subsidiary company” of a “holding company,” or an “affiliate” of a “holding company” or of a
“subsidiary company” of a “holding company,” within the meaning of the Public Utility Holding
Company Act of 1935.

     9.12 Regulations T, U and X. The Company is not engaged principally, or as one of its
important activities, in the business of extending credit for the purpose of purchasing or carrying
Margin Stock. No use of the proceeds of the Loans hereunder shall be in violation of Regulations
T, U or X.

     9.13 Taxes. Each Loan Party has timely filed all tax returns and reports required by
law to have been filed by it and has paid all taxes and governmental charges due and payable with
respect to such return, except any such taxes or charges which are being diligently contested in
good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP shall
have been set aside on its books. The Loan Parties have made adequate reserves on their books and
records in accordance with GAAP for all taxes that have accrued but which are not yet due and
payable. No Loan Party has participated in any transaction that relates to a year of the taxpayer
(which is still open under the applicable statute of limitations) which is a “reportable
transaction” within the meaning of Treasury Regulation Section 1.6011-4(b)(2) (irrespective of the
date when the transaction was entered into).

     9.14 Solvency, etc. On the Closing Date, and immediately prior to and after giving
effect to the issuance of each Letter of Credit and each borrowing hereunder and the use of the
proceeds thereof, with respect to each Loan Party, individually, (a) the fair value of its assets
is greater than the amount of its liabilities (including disputed, contingent and unliquidated
liabilities) as such value is established and liabilities evaluated in accordance with GAAP, (b)
the present fair saleable value of its assets is not less than the amount that will be required to
pay the probable liability on its debts as they become absolute and matured, (c) it is able to
realize upon its assets and pay its debts and other liabilities (including disputed, contingent and
unliquidated liabilities) as they mature in the normal course of business, (d) it does not intend
to, and does not believe that it will, incur debts or liabilities beyond its ability to pay as such
debts and liabilities mature and (e) it is not engaged in business or a transaction, and is not
about to engage in business or a transaction, for which its property would constitute unreasonably
small capital.

     9.15 Environmental Matters. The on-going operations of each Loan Party comply in all
respects with all Environmental Laws, except such non-compliance which could not (if enforced in
accordance with applicable law) reasonably be expected to result, either individually or in the
aggregate, in a Material Adverse Effect. Each Loan Party has obtained, and maintained in good
standing, all licenses, permits, authorizations, registrations and other approvals required under
any Environmental Law and required for their respective ordinary course operations, and for their
reasonably anticipated future operations, and each Loan Party is in compliance with all terms and
conditions thereof, except where the failure to do so could not reasonably be expected to result in
material liability to any Loan Party and could not reasonably be expected to result,

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either individually or in the aggregate, in a Material Adverse Effect. No Loan Party or any
of its properties or operations is subject to, or reasonably anticipates the issuance of, any
written order from or agreement with any Federal, state or local governmental authority, nor
subject to any judicial or docketed administrative or other proceeding, respecting any
Environmental Law, Environmental Claim or Hazardous Substance. There are no Hazardous Substances
or other conditions or circumstances existing with respect to any property, arising from operations
prior to the Closing Date, or relating to any waste disposal, of any Loan Party that would
reasonably be expected to result, either individually or in the aggregate, in a Material Adverse
Effect. No Loan Party has any underground storage tanks that are not properly registered or
permitted under applicable Environmental Laws or that at any time have released, leaked, disposed
of or otherwise discharged Hazardous Substances.

     9.16 Insurance. Set forth on Schedule 9.16 is a complete and accurate summary
of the property and casualty insurance program of the Loan Parties as of the Closing Date
(including the names of all insurers, policy numbers, expiration dates, amounts and types of
coverage, annual premiums, exclusions, deductibles, self-insured retention, and a description in
reasonable detail of any self-insurance program, retrospective rating plan, fronting arrangement or
other risk assumption arrangement involving any Loan Party). Each Loan Party and its properties
are insured with financially sound and reputable insurance companies which are not Affiliates of
the Loan Parties, in such amounts, with such deductibles and covering such risks as are customarily
carried by companies engaged in similar businesses and owning similar properties in localities
where such Loan Parties operate.

     9.17 Real Property. Set forth on Schedule 9.17 is a complete and accurate
list, as of the Closing Date, of the address of all real property owned or leased by any Loan
Party, together with, in the case of leased property, the name and mailing address of the lessor of
such property.

     9.18 Information. All information heretofore or contemporaneously herewith furnished
in writing by any Loan Party to the Administrative Agent or any Lender for purposes of or in
connection with this Agreement and the transactions contemplated hereby is, and all written
information hereafter furnished by or on behalf of any Loan Party to the Administrative Agent or
any Lender pursuant hereto or in connection herewith will be, true and accurate in every material
respect on the date as of which such information is dated or certified, and none of such
information is or will be incomplete by omitting to state any material fact necessary to make such
information not misleading in light of the circumstances under which it was made; it being hereby
acknowledged by the Administrative Agent and the Lenders that any projections and forecasts
provided by the Company are based on good faith estimates and assumptions believed by the Company
to be reasonable as of the date of the applicable projections or assumptions and that actual
results during the period or periods covered by any such projections and forecasts may differ from
projected or forecasted results.

     9.19 Intellectual Property. Each Loan Party owns and possesses or has a license or
other right to use all patents, patent rights, trademarks, trademark rights, trade names, trade
name rights, service marks, service mark rights and copyrights as are necessary for the conduct of
the businesses of the Loan Parties, without any infringement upon rights of others which could
reasonably be expected to have a Material Adverse Effect.

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     9.20 Burdensome Obligations. No Loan Party is a party to any agreement or contract or
subject to any restriction contained in its organizational documents which could reasonably be
expected to have a Material Adverse Effect.

     9.21 Labor Matters. Except as set forth on Schedule 9.21, no Loan Party is
subject to any labor or collective bargaining agreement. There are no existing or threatened
strikes, lockouts or other labor disputes involving any Loan Party that singly or in the aggregate
could reasonably be expected to have a Material Adverse Effect. Hours worked by and payment made
to employees of the Loan Parties are not in violation of the Fair Labor Standards Act or any other
applicable law, rule or regulation dealing with such matters.

     9.22 No Default. No Event of Default or Unmatured Event of Default exists or would
result from the incurrence by any Loan Party of any Debt hereunder or under any other Loan
Document.

SECTION 10 AFFIRMATIVE COVENANTS.

     Until the expiration or termination of the Commitments and thereafter until all Obligations
hereunder and under the other Loan Documents are paid in full and all Letters of Credit have been
terminated, the Company agrees that, unless at any time the Required Lenders shall otherwise
expressly consent in writing, it will:

     10.1 Reports, Certificates and Other Information. Furnish to the Administrative Agent
and each Lender:

          10.1.1 Annual Report. Promptly when available and in any event within 90 days after
the close of each Fiscal Year a copy of the annual audit report of the Company and its Subsidiaries
for such Fiscal Year, including therein consolidated balance sheets and statements of earnings and
cash flows of the Company and its Subsidiaries as at the end of such Fiscal Year, certified
without adverse reference to going concern value and without qualification by independent auditors
of recognized standing selected by the Company and reasonably acceptable to the Administrative
Agent, together with a comparison with the previous Fiscal Year certified by a Senior Officer of
the Company.

          10.1.2 Interim Reports. Promptly when available and in any event within 45 days after
the end of each Fiscal Quarter (except the last Fiscal Quarter of each Fiscal Year), consolidated
(and if requested by Agent, consolidating) balance sheets of the Company and its Subsidiaries as of
the end of such Fiscal Quarter, together with consolidated (and, if requested by Agent,
consolidating) statements of earnings and cash flows for such Fiscal Quarter and for the period
beginning with the first day of such Fiscal Year and ending on the last day of such Fiscal Quarter,
certified by a Senior Officer of the Company.

          10.1.3 Compliance Certificates. Contemporaneously with the furnishing of a copy of
each annual audit report pursuant to Section 10.1.1 and each set of quarterly statements
pursuant to Section 10.1.2, a duly completed compliance certificate in the form of
Exhibit B, with appropriate insertions, dated the date of such annual report or such
quarterly statements and signed by a Senior Officer of the Company, containing a computation of
each of the financial ratios and restrictions set forth in Section 11.14 and to the effect
that such officer has not become

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aware of any Event of Default or Unmatured Event of Default that has occurred and is
continuing or, if there is any such event, describing it and the steps, if any, being taken to cure
it.

          10.1.4 Reports to the SEC and to Shareholders. Promptly upon the filing or sending
thereof, copies of all regular, periodic or special reports of any Loan Party filed with the SEC;
copies of all registration statements of any Loan Party filed with the SEC (other than on Form
S-8); and copies of all proxy statements or other communications made to security holders
generally.

          10.1.5 Notice of Default, Litigation and ERISA Matters. Promptly upon becoming aware
of any of the following, written notice describing the same and the steps being taken by the
Company or the Subsidiary affected thereby with respect thereto:

               (a) the occurrence of an Event of Default or an Unmatured Event of Default;

               (b) any litigation, arbitration or governmental investigation or proceeding not previously
disclosed by the Company to the Lenders which has been instituted or, to the knowledge of the
Company, is threatened against any Loan Party or to which any of the properties of any thereof is
subject which might reasonably be expected to have a Material Adverse Effect;

               (c) the institution of any steps by any member of the Controlled Group or any other Person to
terminate any Pension Plan, or the failure of any member of the Controlled Group to make a required
contribution to any Pension Plan (if such failure is sufficient to give rise to a Lien under
Section 302(f) of ERISA) or to any Multiemployer Pension Plan, or the taking of any action with
respect to a Pension Plan which could result in the requirement that the Company furnish a bond or
other security to the PBGC or such Pension Plan, or the occurrence of any event with respect to any
Pension Plan or Multiemployer Pension Plan which could result in the incurrence by any member of
the Controlled Group of any material liability, fine or penalty (including any claim or demand for
withdrawal liability or partial withdrawal from any Multiemployer Pension Plan), or any material
increase in the contingent liability of the Company with respect to any post-retirement welfare
benefit plan or other employee benefit plan of the Company or another member of the Controlled
Group, or any notice that any Multiemployer Pension Plan is in reorganization, that increased
contributions may be required to avoid a reduction in plan benefits or the imposition of an excise
tax, that any such plan is or has been funded at a rate less than that required under Section 412
of the Code, that any such plan is or may be terminated, or that any such plan is or may become
insolvent;

               (d) any cancellation or material change in any insurance maintained by any Loan Party; or

               (e) any other event (including (i) any violation of any Environmental Law or the assertion of
any Environmental Claim or (ii) the enactment or effectiveness of any law, rule or regulation)
which might reasonably be expected to have a Material Adverse Effect.

          10.1.6 Management Reports. Promptly upon receipt thereof, copies of all detailed
financial and management reports submitted to the Company by independent auditors in

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connection with each annual or interim audit made by such auditors of the books of the
Company.

          10.1.7 Projections. As soon as practicable, and in any event not later than 45 days
after the commencement of each Fiscal Year, financial projections for the Company and its
Subsidiaries for such Fiscal Year (including quarterly operating and cash flow budgets and, if
requested by the Administrative Agent, monthly operating and cash flow budgets) prepared in a
manner consistent with the projections delivered by the Company to the Lenders prior to the Closing
Date or otherwise in a manner reasonably satisfactory to the Administrative Agent, accompanied by a
certificate of a Senior Officer of the Company on behalf of the Company to the effect that (a) such
projections were prepared by the Company in good faith, (b) the Company has a reasonable basis for
the assumptions contained in such projections and (c) such projections have been prepared in
accordance with such assumptions.

          10.1.8 Subordinated Debt and Related Transaction Notices. Promptly following receipt,
copies of any notices (including notices of default or acceleration) received from any holder or
trustee of, under or with respect to any Subordinated Debt.

          10.1.9 Other Information. Promptly from time to time, such other information
concerning the Loan Parties as any Lender or the Administrative Agent may reasonably request.

     10.2 Books, Records and Inspections. Keep, and cause each other Loan Party to keep,
its books and records in accordance with sound business practices sufficient to allow the
preparation of financial statements in accordance with GAAP; permit, and cause each other Loan
Party to permit, any Lender or the Administrative Agent or any representative thereof to inspect
the properties and operations of the Loan Parties; and permit, and cause each other Loan Party to
permit, at any reasonable time and with reasonable notice (or at any time without notice if an
Event of Default exists), any Lender or the Administrative Agent or any representative thereof to
visit any or all of its offices, to discuss its financial matters with its officers and its
independent auditors (and the Company hereby authorizes such independent auditors to discuss such
financial matters with any Lender or the Administrative Agent or any representative thereof), and
to examine (and, at the expense of the Loan Parties, photocopy extracts from) any of its books or
other records; and permit, and cause each other Loan Party to permit, the Administrative Agent and
its representatives to inspect the Inventory and other tangible assets of the Loan Parties, to
perform, after the occurrence and during the continuation of any Event of Default, appraisals of
the equipment of the Loan Parties, and to inspect, audit, check and make copies of and extracts
from the books, records, computer data, computer programs, journals, orders, receipts,
correspondence and other data relating to Inventory, Accounts and any other collateral. All such
inspections or audits by the Administrative Agent shall be at the Company’s expense; provided that
so long as no Event of Default or Unmatured Event of Default shall have occurred and be continuing
(i) there shall be no more than one (1) such inspection or audit per Fiscal Year and (ii) the
maximum expense for which the Company shall be responsible shall be $25,000.

     10.3 Maintenance of Property; Insurance. (a) Keep, and cause each other Loan Party
to keep, all property useful and necessary in the business of the Loan Parties in good working
order and condition, ordinary wear and tear excepted.

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               (b) Maintain, and cause each other Loan Party to maintain, with responsible insurance
companies, such insurance coverage as may be required by any law or governmental regulation or
court decree or order applicable to it and such other insurance, to such extent and against such
hazards and liabilities, as is customarily maintained by companies similarly situated, but which
shall insure against all risks and liabilities of the type identified on Schedule 9.16 and
shall have insured amounts no less than, and deductibles no higher than, those set forth on such
schedule; and, upon request of the Administrative Agent or any Lender, furnish to the
Administrative Agent or such Lender a certificate setting forth in reasonable detail the nature and
extent of all insurance maintained by the Loan Parties. The Company shall cause each issuer of an
insurance policy to provide the Administrative Agent with an endorsement (i) showing the
Administrative Agent as loss payee with respect to each policy of property or casualty insurance
and naming the Administrative Agent and each Lender as an additional insured with respect to each
policy of liability insurance, (ii) providing that 30 days’ notice will be given to the
Administrative Agent prior to any cancellation of, material reduction or change in coverage
provided by or other material modification to such policy and (iii) reasonably acceptable in all
other respects to the Administrative Agent. The Company shall execute and deliver to the
Administrative Agent a collateral assignment, in form and substance satisfactory to the
Administrative Agent, of each business interruption insurance policy maintained by the Company.

               (c) UNLESS THE COMPANY PROVIDES THE ADMINISTRATIVE AGENT WITH EVIDENCE OF THE INSURANCE
COVERAGE REQUIRED BY THIS AGREEMENT, AFTER NOT LESS THAN FIFTEEN (15) DAYS WRITTEN NOTICE TO THE
COMPANY, THE ADMINISTRATIVE AGENT MAY PURCHASE INSURANCE AT THE COMPANY’S EXPENSE TO PROTECT THE
ADMINISTRATIVE AGENT’S AND THE LENDERS’ INTERESTS IN THE COLLATERAL. THIS INSURANCE MAY, BUT NEED
NOT, PROTECT ANY LOAN PARTY’S INTERESTS. THE COVERAGE THAT THE ADMINISTRATIVE AGENT PURCHASES MAY
NOT PAY ANY CLAIM THAT IS MADE AGAINST ANY LOAN PARTY IN CONNECTION WITH THE COLLATERAL. THE
COMPANY MAY LATER CANCEL ANY INSURANCE PURCHASED BY THE ADMINISTRATIVE AGENT, BUT ONLY AFTER
PROVIDING THE ADMINISTRATIVE AGENT WITH EVIDENCE THAT THE COMPANY HAS OBTAINED INSURANCE AS
REQUIRED BY THIS AGREEMENT. IF THE ADMINISTRATIVE AGENT PURCHASES INSURANCE FOR THE COLLATERAL,
THE COMPANY WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE, INCLUDING INTEREST AND ANY OTHER
CHARGES THAT MAY BE IMPOSED WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF THE
CANCELLATION OR EXPIRATION OF THE INSURANCE. THE COSTS OF THE INSURANCE MAY BE ADDED TO THE
PRINCIPAL AMOUNT OF THE LOANS OWING HEREUNDER. THE COSTS OF THE INSURANCE MAY BE MORE THAN THE
COST OF THE INSURANCE THE LOAN PARTIES MAY BE ABLE TO OBTAIN ON THEIR OWN.

     10.4 Compliance with Laws; Payment of Taxes and Liabilities. (a) Comply, and cause
each other Loan Party to comply, in all material respects with all applicable laws, rules,
regulations, decrees, orders, judgments, licenses and permits, except where failure to comply could
not reasonably be expected to have a Material Adverse Effect; (b) without limiting clause 

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(a) above, ensure, and cause each other Loan Party to ensure, that no person who owns
a controlling interest in or otherwise controls a Loan Party is or shall be (i) listed on the
Specially Designated Nationals and Blocked Person List maintained by the Office of Foreign Assets
Control (“OFAC”), Department of the Treasury, and/or any other similar lists maintained by
OFAC pursuant to any authorizing statute, Executive Order or regulation or (ii) a person designated
under Section 1(b), (c) or (d) of Executive Order No. 13224 (September 23, 2001), any related
enabling legislation or any other similar Executive Orders; (c) without limiting clause (a)
above, comply, and cause each other Loan Party to comply, with all applicable Bank Secrecy Act
(“BSA”) and anti-money laundering laws and regulations; and (d) pay, and cause each other
Loan Party to pay, prior to delinquency, all taxes and other governmental charges against it or any
collateral, as well as claims of any kind which, if unpaid, could become a Lien on any of its
property; provided that the foregoing shall not require any Loan Party to pay any such tax
or charge so long as it shall contest the validity thereof in good faith by appropriate proceedings
and shall set aside on its books adequate reserves with respect thereto in accordance with GAAP
and, in the case of a claim which could become a Lien on any collateral, such contest proceedings
shall stay the foreclosure of such Lien or the sale of any portion of the collateral to satisfy
such claim.

     10.5 Maintenance of Existence, etc. Maintain and preserve, and (subject to
Section 11.5) cause each other Loan Party to maintain and preserve, (a) its existence and
good standing in the jurisdiction of its organization and (b) its qualification to do business and
good standing in each jurisdiction where the nature of its business makes such qualification
necessary (other than such jurisdictions in which the failure to be qualified or in good standing
could not reasonably be expected to have a Material Adverse Effect).

     10.6 Use of Proceeds. Use the proceeds of the Loans, and the Letters of Credit,
solely to finance the repayment in full of the Term Loans, for working capital purposes, for
Acquisitions permitted by Section 11.5, for Capital Expenditures and for other general
business purposes; and not use or permit any proceeds of any Loan to be used, either directly or
indirectly, for the purpose, whether immediate, incidental or ultimate, of “purchasing or carrying”
any Margin Stock.

     10.7 Employee Benefit Plans.

               (a) Maintain, and cause each other member of the Controlled Group to maintain, each Pension
Plan in substantial compliance with all applicable requirements of law and regulations.

               (b) Make, and cause each other member of the Controlled Group to make, on a timely basis, all
required contributions to any Multiemployer Pension Plan.

               (c) Not, and not permit any other member of the Controlled Group to (i) seek a waiver of the
minimum funding standards of ERISA, (ii) terminate or withdraw from any Pension Plan or
Multiemployer Pension Plan or (iii) take any other action with respect to any Pension Plan that
would reasonably be expected to entitle the PBGC to terminate, impose liability in respect of, or
cause a trustee to be appointed to administer, any Pension Plan, unless

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the actions or events described in clauses (i), (ii) and (iii) individually or in the
aggregate would not have a Material Adverse Effect.

     10.8 Environmental Matters. If any release or threatened release or other disposal of
Hazardous Substances shall occur or shall have occurred on any real property or any other assets of
any Loan Party, the Company shall, or shall cause the applicable Loan Party to, cause the prompt
containment and removal of such Hazardous Substances and the remediation of such real property or
other assets as necessary to comply with all Environmental Laws and to preserve the value of such
real property or other assets. Without limiting the generality of the foregoing, the Company
shall, and shall cause each other Loan Party to, comply with any Federal or state judicial or
administrative order requiring the performance at any real property of any Loan Party of activities
in response to the release or threatened release of a Hazardous Substance. To the extent that the
transportation of Hazardous Substances is permitted by this Agreement, the Company shall, and shall
cause its Subsidiaries to, dispose of such Hazardous Substances, or of any other wastes, only at
licensed disposal facilities operating in compliance with Environmental Laws.

     10.9 Further Assurances. Except as otherwise provided in this Agreement, take, and
cause each other Loan Party to take, such actions as are necessary or as the Administrative Agent
or the Required Lenders may reasonably request from time to time to ensure that the Obligations of
each Loan Party under the Loan Documents are secured by substantially all of the assets of the
Company and each domestic Subsidiary (as well as all Capital Securities of each domestic Subsidiary
and 65% of all Capital Securities of each direct foreign Subsidiary) and guaranteed by each
domestic Subsidiary (including, upon the acquisition or creation thereof, any Subsidiary acquired
or created after the Closing Date), in each case as the Administrative Agent may determine,
including (a) the execution and delivery of guaranties, security agreements, pledge agreements,
mortgages, deeds of trust, financing statements and other documents, and the filing or recording of
any of the foregoing and (b) the delivery of certificated securities and other collateral with
respect to which perfection is obtained by possession; provided, however, that to the extend the
requirements of this Section 10.9 are applicable to any new Subsidiary formed following the
date hereof, or applicable to a Subsidiary or assets acquired in connection with an Acquisition
where the entire consideration is less than $10,000,000, the Company shall have 10 days following
the date of such formation or Acquisition, as applicable, to fully comply with the requirements of
this Section 10.9. Further, and notwithstanding anything to the contrary set forth above,
pursuant to Section 12.1.7(b) no Obligations of any Loan Party will be secured by any
parcel of real property owned or acquired by the Company or any Subsidiary thereof on or after the
date hereof with a net book value at such time of less than $2,500,000 and for which no Mortgage
was previously delivered to Administrative Agent in connection with the November 19 Agreement.

SECTION 11 NEGATIVE COVENANTS

     Until the expiration or termination of the Commitments and thereafter until all Obligations
hereunder and under the other Loan Documents are paid in full and all Letters of Credit have been
terminated, the Company agrees that, unless at any time the Required Lenders shall otherwise
expressly consent in writing, it will:

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     11.1 Debt. Not, and not permit any other Loan Party to, create, incur, assume or
suffer to exist any Debt, except:

               (a) Obligations under this Agreement and the other Loan Documents;

               (b) Debt secured by Liens permitted by Sections 11.2(d) and 11.2(h), and
extensions, renewals and refinancings thereof; provided that the aggregate amount of all
such Debt at any time outstanding shall not exceed $25,000,000;

               (c) Debt of the Company to any domestic Wholly-Owned Subsidiary or Debt of any domestic
Wholly-Owned Subsidiary to the Company or another domestic Wholly-Owned Subsidiary;
provided that such Debt shall be evidenced by a demand note in form and substance
reasonably satisfactory to the Administrative Agent and pledged and delivered to the Administrative
Agent pursuant to the Collateral Documents as additional collateral security for the Obligations,
and the obligations under such demand note shall be subordinated to the Obligations of the Company
hereunder in a manner reasonably satisfactory to the Administrative Agent;

               (d) Subordinated Debt;

               (e) Hedging Obligations approved by Administrative Agent and incurred in favor of a Lender or
an Affiliate thereof for bona fide hedging purposes and not for speculation;

               (f) Debt described on Schedule 11.1 and any extension, renewal or refinancing thereof
so long as the principal amount thereof is not increased;

               (g) the Debt to be Repaid (so long as such Debt is repaid on the Closing Date with the
proceeds of the initial Loans hereunder);

               (h) the maximum amount of secured obligations at any one time outstanding under and pursuant
to the Factoring Facility, not to exceed $30,000,000 in the aggregate, at any one time outstanding;

               (i) Debt assumed in connection with Acquisitions permitted under Section 11.5 not to
exceed $10,000,000 at any time outstanding;

               (j) Debt consisting of seller financing incurred in connection with Acquisitions permitted
under Section 11.5 not to exceed $10,000,000 at any time outstanding; and

               (k) other unsecured Debt, in addition to the Debt listed above, in an aggregate outstanding
amount not at any time exceeding $20,000,000.

     11.2 Liens. Not, and not permit any other Loan Party to, create or permit to exist
any Lien on any of its real or personal properties, assets or rights of whatsoever nature (whether
now owned or hereafter acquired), except:

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               (a) Liens for taxes or other governmental charges not at the time delinquent or thereafter
payable without penalty or being contested in good faith by appropriate proceedings and, in each
case, for which it maintains adequate reserves;

               (b) Liens arising in the ordinary course of business (such as (i) Liens of carriers,
warehousemen, mechanics and materialmen and other similar Liens imposed by law and (ii) Liens in
the form of deposits or pledges incurred in connection with worker’s compensation, unemployment
compensation and other types of social security (excluding Liens arising under ERISA) or in
connection with surety bonds, bids, performance bonds and similar obligations) for sums not overdue
or being contested in good faith by appropriate proceedings and not involving any advances or
borrowed money or the deferred purchase price of property or services and, in each case, for which
it maintains adequate reserves;

               (c) Liens described on Schedule 11.2 as of the Closing Date;

               (d) subject to the limitation set forth in Section 11.1(b), (i) Liens arising in
connection with Capital Leases (and attaching only to the property being leased), (ii) Liens
existing on property at the time of the acquisition thereof by any Loan Party (and not created in
contemplation of such acquisition) and (iii) Liens that constitute purchase money security
interests on any property securing debt incurred for the purpose of financing all or any part of
the cost of acquiring such property, provided that any such Lien attaches to such property
within 20 days of the acquisition thereof and attaches solely to the property so acquired;

               (e) attachments, appeal bonds, judgments and other similar Liens, for sums not exceeding
$5,000,000 arising in connection with court proceedings, provided the execution or other
enforcement of such Liens is effectively stayed and the claims secured thereby are being actively
contested in good faith and by appropriate proceedings;

               (f) easements, rights of way, restrictions, minor defects or irregularities in title and other
similar Liens not interfering in any material respect with the ordinary conduct of the business of
any Loan Party;

               (g) Liens arising under the Loan Documents;

               (h) Subject to the limitation set forth in Section 11.1(b), Liens existing on assets
acquired, or on the assets of Person acquired, in connection with an Acquisition permitted by
Section 11.5 (and not created in contemplation of such Acquisition); and

               (i) the replacement, extension or renewal of any Lien permitted by clause (c) above
upon or in the same property subject thereto arising out of the extension, renewal or replacement
of the Debt secured thereby (without increase in the amount thereof).

     11.3 Operating Leases. [INTENTIONALLY OMITTED].

     11.4 Restricted Payments. Not, and not permit any other Loan Party to, (a) make any
distribution to any holders of its Capital Securities unless both before and after giving effect
thereto no Event of Default or Unmatured Event of Default would result therefrom (determined, in
the case of the financial covenants under Sections 11.14.1 and 11.14.2, as if such
distribution

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had been made on the last day of the then-ending or most recently ended fiscal quarter of the
Company), (b) purchase or redeem any of its Capital Securities in excess of $5,000,000 per annum,
except in connection with the repurchase of Capital Securities pursuant to and in accordance with
the provisions of any existing employee stock option or benefit plan, (c) pay any management fees
or similar fees to any of its equityholders or any Affiliate thereof (but excluding compensation
paid to employees who are holders of its Capital Securities which compensation is reasonable and
customary or has been approved by the Compensation Committee of the Board of Directors of the
Parent), (d) make any redemption, prepayment, defeasance, repurchase or any other payment in
respect of any Subordinated Debt or (e) set aside funds for any of the foregoing. Notwithstanding
the foregoing, (i) any Subsidiary may pay dividends or make other distributions to the Company or
to a domestic Wholly-Owned Subsidiary; and (ii) the Company may make regularly scheduled payments
in respect of Subordinated Debt to the extent permitted under the subordination provisions thereof.

     11.5 Mergers, Consolidations, Sales. Not, and not permit any other Loan Party to, (a)
be a party to any merger or consolidation, or purchase or otherwise acquire all or substantially
all of the assets or any Capital Securities of any class of, or any partnership or joint venture
interest in, any other Person, (b) sell, transfer, convey or lease all or any substantial part of
its assets or Capital Securities (including the sale of Capital Securities of any Subsidiary)
except for sales of inventory in the ordinary course of business, or (c) sell or assign with or
without recourse any receivables, except for (i) any such merger, consolidation, sale, transfer,
conveyance, lease or assignment of or by any Wholly-Owned Subsidiary into the Company or into any
other domestic Wholly-Owned Subsidiary; (ii) any sales of receivables pursuant to the Factoring
Facility, (iii) any such purchase or other acquisition by the Company or any domestic Wholly-Owned
Subsidiary of the assets or Capital Securities of any Wholly-Owned Subsidiary; and (iv) any
Acquisition by the Company or any domestic Wholly-Owned Subsidiary where:

               (A) the business or division acquired are for use, or the Person acquired is engaged, in
businesses permitted by Section 11.10 hereof;

               (B) immediately before and after giving effect to such Acquisition, no Event of Default or
Unmatured Event of Default shall exist;

               (C) (i) the entire consideration to be paid by the Loan Parties is comprised of common stock
issued by the Parent or (ii) the aggregate consideration to be paid by the Loan Parties (including
any Debt assumed or issued in connection therewith, the amount thereof to be calculated in
accordance with GAAP, but not including any common stock issued by the Parent as part of the
consideration thereof, for which the limitations set forth in this Section 11.5(C) shall
not apply) in connection with such Acquisition (or any series of related Acquisitions) is less than
$25,000,000;

               (D) immediately after giving effect to such Acquisition, the Company is in pro forma
compliance with all the financial ratios and restrictions set forth in Section 11.14;

               (E) in the case of the Acquisition of any Person, the Board of Directors or similar governing
body of such Person has approved such Acquisition;

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               (F) reasonably prior to an Acquisition wherein the entire consideration is $10,000,000 or
greater, the Administrative Agent shall have received complete executed or conformed copies of each
material document, instrument and agreement to be executed in connection with such Acquisition
together with all lien search reports and, except in connection with liens which will continue
pursuant to applicable exceptions set forth in clauses (a) through (i) of Section 11.2 lien
release letters and other documents as the Administrative Agent may require to evidence the
termination of Liens on the assets or business to be acquired;

               (G) not less than ten Business Days prior to an Acquisition wherein the entire consideration
is $10,000,000 or greater, the Administrative Agent shall have received an acquisition summary with
respect to the Person and/or business or division to be acquired, such summary to include a
reasonably detailed description thereof (including financial information) and operating results
(including financial statements for the most recent 12 month period for which they are available
and as otherwise available), the terms and conditions, including economic terms, of the proposed
Acquisition, and the Company’s calculation of pro forma EBITDA relating thereto;

               (H) the Administrative Agent shall have approved the Company’s computation of pro forma EBITDA
wherein the entire consideration is $10,000,000 or greater;

               (I) (1) consents have been obtained in favor of and delivered to the Administrative Agent and
the Lenders consenting to the collateral assignment of rights and indemnities under the related
Acquisition documents, (2) opinions of counsel for the Loan Parties in favor of the Administrative
Agent and the Lenders as to the enforceability of such collateral assignment of rights and
indemnities under the related Acquisition documents, and (3) to the extent an opinion of counsel to
the selling party is delivered in connection with such Acquisition, permission for the
Administrative Agent and the Lenders to rely on such opinion, each wherein the entire consideration
is $10,000,000 or greater; and

               (J) the provisions of Section 10.9 have been satisfied.

     Notwithstanding the foregoing requirements of this Section 11.5, for Acquisitions
where the entire consideration is less than $10,000,000 the requirements of (iv)(F), (G), and (I)
above shall be satisfied within sixty (60) days following the consummation of the Acquisition and
the requirements of (iv)(H) above shall be waived.

     11.6 Modification of Organizational Documents; Factoring Facility. Not permit the
charter, by-laws or other organizational documents, or the Factoring Facility of any Loan Party to
be amended or modified in any way which could reasonably be expected to materially adversely affect
the interests of the Lenders.

     11.7 Transactions with Affiliates. Not, and not permit any other Loan Party to, enter
into, or cause, suffer or permit to exist any transaction, arrangement or contract with any of its
other Affiliates (other than the Loan Parties) which is on terms which are less favorable than are
obtainable from any Person which is not one of its Affiliates.

     11.8 Unconditional Purchase Obligations. Not, and not permit any other Loan Party to,
enter into or be a party to any contract for the purchase of materials, supplies or other

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property or services if such contract requires that payment be made by it regardless of
whether delivery is ever made of such materials, supplies or other property or services.

     11.9 Inconsistent Agreements. Not, and not permit any other Loan Party to, enter into
any agreement containing any provision which would (a) be violated or breached by any borrowing by
the Company hereunder or by the performance by any Loan Party of any of its Obligations hereunder
or under any other Loan Document, (b) prohibit any Loan Party from granting to the Administrative
Agent and the Lenders, a Lien on any of its assets or (c) create or permit to exist or become
effective any encumbrance or restriction on the ability of any Subsidiary to (i) pay dividends or
make other distributions to the Company or any other Subsidiary, or pay any Debt owed to the
Company or any other Subsidiary, (ii) make loans or advances to any Loan Party or (iii) transfer
any of its assets or properties to any Loan Party, other than (A) customary restrictions and
conditions contained in agreements relating to the sale of all or a substantial part of the assets
of any Subsidiary pending such sale, provided that such restrictions and conditions apply
only to the Subsidiary to be sold and such sale is permitted hereunder (B) restrictions or
conditions imposed by any agreement relating to purchase money Debt, Capital Leases and other
secured Debt permitted by this Agreement if such restrictions or conditions apply only to the
property or assets securing such Debt and (C) customary provisions in leases and other contracts
restricting the assignment thereof.

     11.10 Business Activities. Not, and not permit any other Loan Party to, engage in any
line of business other than (a) the businesses engaged in on the date hereof, (b) the printing,
forms, and apparel business, (c) lines of business which are similar or complementary thereto, and
(d) lines of business set forth in the Company’s strategic business plan, as it may be amended from
time to time by the Company.

     11.11 Investments. Not, and not permit any other Loan Party to, make or permit to
exist any Investment in any other Person, except the following:

               (a) contributions by the Company to the capital of any Wholly-Owned Subsidiary, or by any
Subsidiary to the capital of any other domestic Wholly-Owned Subsidiary, so long as the recipient
of any such capital contribution has guaranteed the Obligations and such guaranty is secured by a
pledge of all of its Capital Securities and substantially all of its real and personal property, in
each case in accordance with Section 10.9;

               (b) Investments constituting Debt permitted by Section 11.1;

               (c) Contingent Liabilities permitted by Section 11.6 or Liens permitted by Section
11.2;

               (d) Cash Equivalent Investments;

               (e) Investments in securities of Account Debtors received pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of such account debtors;

               (f) Investments to consummate Acquisitions permitted by Section 11.5; and

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               (g) Investments listed on Schedule 11.11 as of the Closing Date.

provided that (x) any Investment which when made complies with the requirements of the
definition of the term “Cash Equivalent Investment” may continue to be held notwithstanding
that such Investment if made thereafter would not comply with such requirements; (y) no Investment
otherwise permitted by clause (b), (c), or (g) shall be permitted to be made if,
immediately before or after giving effect thereto, any Event of Default or Unmatured Event of
Default exists.

     11.12 Restriction of Amendments to Certain Documents. Not amend or otherwise modify,
or waive any rights under, any documents relating to Subordinated Debt if, in any case, such
amendment, modification or waiver could be adverse to the interests of the Lenders.

     11.13 Fiscal Year. Not change its Fiscal Year.

     11.14 Financial Covenants.

          11.14.1 Fixed Charge Coverage Ratio. Not permit the Fixed Charge Coverage Ratio for
any Computation Period to be less than 1.25:1.00. For purposes of this Section 11.14.1,
the measurement of EBITDA shall include the pro form effect of Acquisitions during the relevant
measurement period as if such Acquisition had been consummated at the beginning of the relevant
measurement period.

          11.14.2 Total Funded Debt to EBITDA Ratio. Not permit the Total Funded Debt to EBITDA
Ratio as of the last day of any Computation Period to exceed 3.00:1.00. For purposes of this
Section 11.14.2, the measurement of EBITDA shall include the pro form effects of
Acquisitions during the relevant measurement period as if any Acquisition had been consummated at
the beginning of the relevant measurement period.

          11.14.3 Minimum Net Worth. Not permit the Consolidated Net Worth of the Company to be
less than $245,000,000 plus 25% of Consolidated Net Income commencing with the Company’s fiscal
quarter ending February 28, 2006. As used herein “Consolidated Net Worth” means for the Company
and its Subsidiaries, on a consolidated basis, as at the end of any Fiscal Quarter, (i) the total
amount of all consolidated assets that, in accordance with GAAP, are properly shown as such on the
consolidated balance sheet of the Company and its Subsidiaries as at the end of such Fiscal
Quarter, prepared in accordance with GAAP (with Inventory being valued at the lower of cost or
market value), after deducting all proper reserves (including reserves for depreciation and
amortization), minus (ii) the total amount of all consolidated liabilities of the Company and its
Subsidiaries that, in accordance with GAAP, are properly shown as such on such balance sheet.

     11.15 Cancellation of Debt. Not, and not permit any other Loan Party to, cancel any
claim or debt owing to it, except for reasonable consideration or in the ordinary course of
business, and except for the cancellation of debts or claims not to exceed $100,000 in any Fiscal
Year.

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     11.16 Contingent Liabilities. Except for those Contingent Liabilities of the Company
owed pursuant to this Agreement, not, and not permit any other Loan Party to, incur any Contingent
Liabilities.

SECTION 12 EFFECTIVENESS; CONDITIONS OF LENDING, ETC.

     The obligation of each Lender to make its Loans and of the Issuing Lender to issue Letters of
Credit is subject to the following conditions precedent:

     12.1 Initial Credit Extension. The obligation of the Lenders to make the initial
Loans and the obligation of the Issuing Lender to issue its initial Letter of Credit (whichever
first occurs) is, in addition to the conditions precedent specified in Section 12.2,
subject to the conditions precedent that (a) all Debt to be Repaid has been (or concurrently with
the initial borrowing will be) paid in full, and that all agreements and instruments governing the
Debt to be Repaid and that all Liens securing such Debt to be Repaid have been (or concurrently
with the initial borrowing will be) terminated and (b) the Administrative Agent shall have received
all of the following, each duly executed and dated the Closing Date (or such earlier date as shall
be satisfactory to the Administrative Agent), in form and substance satisfactory to the
Administrative Agent (and the date on which all such conditions precedent have been satisfied or
waived in writing by the Administrative Agent and the Lenders is called the “Closing
Date”):

          12.1.1 Notes. A Note for each Lender.

          12.1.2 Authorization Documents. For each Loan Party, such Person’s (a) charter (or
similar formation document), certified by the appropriate governmental authority; (b) good standing
certificates in its state of incorporation (or formation) and in each other state requested by the
Administrative Agent; (c) bylaws (or similar governing document); (d) resolutions of its board of
directors (or similar governing body) approving and authorizing such Person’s execution, delivery
and performance of the Loan Documents to which it is party and the transactions contemplated
thereby; and (e) signature and incumbency certificates of its officers executing any of the Loan
Documents (it being understood that the Administrative Agent and each Lender may conclusively rely
on each such certificate until formally advised by a like certificate of any changes therein), all
certified by its secretary or an assistant secretary (or similar officer) as being in full force
and effect without modification.

          12.1.3 Consents, etc. Certified copies of all documents evidencing any necessary
corporate or partnership action, consents and governmental approvals (if any) required for the
execution, delivery and performance by the Loan Parties of the documents referred to in this
Section 12.

          12.1.4 Letter of Direction. A letter of direction containing funds flow information
with respect to the proceeds of the Loans on the Closing Date.

          12.1.5 Security Agreement. A counterpart of the Security Agreement executed by each
Loan Party, together with all instruments, transfer powers and other items required to be delivered
in connection therewith.

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          12.1.6 Perfection Certificate. A Perfection Certificate completed and executed by
each Loan Party.

          12.1.7 Real Estate Documents. (a) With respect to each parcel of real property owned
by any Loan Party on the date hereof and for which a Mortgage was previously delivered to
Administrative Agent in connection with the November 19 Agreement, a duly executed First Amendment
to Mortgage providing for the continuation of the fully perfected Lien, in favor of the
Administrative Agent, in all right, title and interest of the Company or such Subsidiary in such
real property, together with:

                    (i) A “date down” endorsement to each existing ALTA Loan Title Insurance Policy, issued by an
insurer acceptable to the Administrative Agent, insuring the Administrative Agent’s Lien on such
real property and containing such endorsements as the Administrative Agent may reasonably require
(it being understood that the amount of coverage, exceptions to coverage and status of title set
forth in such policy shall be acceptable to the Administrative Agent);

                    (ii) copies of all documents of record not previously delivered to Administrative Agent
concerning such real property as shown on the commitment for the ALTA Loan Title Insurance Policy
referred to above;

                    (iii) original or certified copies of all insurance policies required to be maintained with
respect to such real property by this Agreement, the applicable Mortgage or any other Loan
Document;

                    (iv) if not previously delivered in connection with the November 19 Agreement, a flood
insurance policy concerning such real property, if required by the Flood Disaster Protection Act of
1973.

               (b) With respect to each parcel of real property with a net book value of $2,500,000 or
greater owned on the date hereof or acquired at any time after the date hereof, by any Loan Party,
a duly executed Mortgage providing for a fully perfected Lien, in favor of the Administrative
Agent, in all right, title and interest of the Company or such Subsidiary in such real property,
together with:

                    (i) an ALTA Loan Title Insurance Policy, issued by an insurer acceptable to the Administrative
Agent, insuring the Administrative Agent’s Lien on such real property and containing such
endorsements as the Administrative Agent may reasonably require (it being understood that the
amount of coverage, exceptions to coverage and status of title set forth in such policy shall be
acceptable to the Administrative Agent);

                    (ii) copies of all documents of record concerning such real property as shown on the
commitment for the ALTA Loan Title Insurance Policy referred to above;

                    (iii) original or certified copies of all insurance policies required to be maintained with
respect to such real property by this Agreement, the applicable Mortgage or any other Loan
Document;

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                    (iv) a survey certified to the Administrative Agent meeting such standards as the
Administrative Agent may reasonably establish and otherwise reasonably satisfactory to the
Administrative Agent; and

                    (v) a flood insurance policy concerning such real property, if required by the Flood Disaster
Protection Act of 1973.

Additionally, (x) in the case of any leased real property, a Collateral Access Agreement from the
landlord of such property waiving any landlord’s Lien in respect of personal property kept at the
premises subject to such lease and (y) in the case of any mortgaged real property, a waiver from
the mortgagee thereof waiving any Lien in respect of personal property kept at the premises subject
to such Mortgage.

          12.1.8 Opinions of Counsel. Opinions of counsel for each Loan Party, including local
counsel reasonably requested by the Administrative Agent including local counsel opinions in
relation to the Mortgages referenced in Section 12.1.7 hereof.

          12.1.9 Insurance. Evidence of the existence of insurance required to be maintained
pursuant to Section 10.3(b), together with evidence that the Administrative Agent has been
named as a lender’s loss payee and an additional insured on all related insurance policies.

          12.1.10 Payment of Fees. Evidence of payment by the Company of all accrued and unpaid
fees, costs and expenses to the extent then due and payable on the Closing Date, together with all
Attorney Costs of the Administrative Agent to the extent invoiced prior to the Closing Date,
plus such additional amounts of Attorney Costs as shall constitute the Administrative
Agent’s reasonable estimate of Attorney Costs incurred or to be incurred by the Administrative
Agent through the closing proceedings (provided that such estimate shall not thereafter
preclude final settling of accounts between the Company and the Administrative Agent).

          12.1.11 Solvency Certificate. If requested by the Administrative Agent, a Solvency
Certificate executed by a Senior Officer of the Company.

          12.1.12 Pro Forma; Financial Statements. [Intentionally Deleted].

          12.1.13 Environmental Reports. Environmental site assessment reports, to the extent
not previously delivered and if and to the extent requested by the Administrative Agent.

          12.1.14 Search Results; Lien Terminations. Certified copies of Uniform Commercial
Code search reports dated a date reasonably near to the Closing Date, listing all effective
financing statements which name any Loan Party or any of its Subsidiaries (under their present
names and any previous names) as debtors, together with (a) copies of such financing statements,
(b) payoff letters evidencing repayment in full of all Debt to be Repaid other than the Term Loan,
if any, the termination of all agreements relating thereto and the release of all Liens granted in
connection therewith, with Uniform Commercial Code or other appropriate termination statements and
documents effective to evidence the foregoing (other than Liens permitted by Section 11.2)
and (c) such other Uniform Commercial Code termination statements as the Administrative Agent may
reasonably request.

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          12.1.15 Filings, Registrations and Recordings. The Administrative Agent shall have
received each document (including Uniform Commercial Code financing statements) required by the
Collateral Documents or under law or reasonably requested by the Administrative Agent to be filed,
registered or recorded in order to create in favor of the Administrative Agent, for the benefit of
the Lenders, a perfected Lien on the collateral described therein, prior to any other Liens
(subject only to Liens permitted pursuant to Section 11.2), in proper form for filing,
registration or recording.

          12.1.16 Closing Certificate, Consents and Permits. A certificate executed by an
officer of the Company on behalf of the Company certifying the matters set forth in Section
12.2.1 as of the Closing Date.

          12.1.17 Account Control Agreements. Amended and Restated Account Control Agreements,
as referred to in the Security Agreement, duly executed by each of the Pledged Account Banks (as
defined in the Security Agreement), the applicable Loan Party and the Administrative Agent.

          12.1.18 Other. Such other documents as the Administrative Agent or any Lender may
reasonably request.

     12.2 Conditions. The obligation (a) of each Lender to make each Loan and (b) of the
Issuing Lender to issue each Letter of Credit is subject to the following further conditions
precedent that:

          12.2.1 Compliance with Warranties, No Default, etc. Both before and after giving
effect to any borrowing and the issuance of any Letter of Credit, the following statements shall be
true and correct:

               (a) the representations and warranties of each Loan Party set forth in this Agreement and the
other Loan Documents shall be true and correct in all respects with the same effect as if then made
(except to the extent stated to relate to a specific earlier date, in which case such
representations and warranties shall be true and correct as of such earlier date); and

               (b) no Event of Default or Unmatured Event of Default shall have then occurred and be
continuing.

          12.2.2 Confirmatory Certificate. If requested by the Administrative Agent or any
Lender, the Administrative Agent shall have received (in sufficient counterparts to provide one to
each Lender) a certificate dated the date of such requested Loan or Letter of Credit and signed by
a duly authorized representative of the Company as to the matters set out in Section 12.2.1
(it being understood that each request by the Company for the making of a Loan or the issuance of a
Letter of Credit shall be deemed to constitute a representation and warranty by the Company that
the conditions precedent set forth in Section 12.2.1 will be satisfied at the time of the
making of such Loan or the issuance of such Letter of Credit), together with such other documents
as the Administrative Agent or any Lender may reasonably request in support thereof.

SECTION 13 EVENTS OF DEFAULT AND THEIR EFFECT.

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     13.1 Events of Default. Each of the following shall constitute an Event of Default
under this Agreement:

          13.1.1 Non-Payment of the Loans, etc. Default in the payment when due of the
principal of any Loan; or default, and continuance thereof for five days thereafter, in the payment
when due of any interest, fee, reimbursement obligation with respect to any Letter of Credit or
other amount payable by the Company hereunder or under any other Loan Document.

          13.1.2 Non-Payment of Other Debt. Any default shall occur under the terms applicable
to any Debt of any Loan Party in an aggregate amount (for all such Debt so affected and including
undrawn committed or available amounts and amounts owing to all creditors under any combined or
syndicated credit arrangement) exceeding $500,000 and such default shall (a) continue beyond any
applicable notice and cure periods, (b) consist of the failure to pay such Debt when due, whether
by acceleration or otherwise, or (c) accelerate the maturity of such Debt or permit the holder or
holders thereof, or any trustee or agent for such holder or holders, to cause such Debt to become
due and payable (or require any Loan Party to purchase or redeem such Debt or post cash collateral
in respect thereof) prior to its expressed maturity.

          13.1.3 Other Material Obligations. Default in the payment when due, or in the
performance or observance of, any material obligation of, or condition agreed to by, any Loan Party
with respect to any material purchase or lease of goods or services where such default, singly or
in the aggregate with all other such defaults, might reasonably be expected to have a Material
Adverse Effect.

          13.1.4 Bankruptcy, Insolvency, etc. Any Loan Party becomes insolvent or generally
fails to pay, or admits in writing its inability or refusal to pay, debts as they become due; or
any Loan Party applies for, consents to, or acquiesces in the appointment of a trustee, receiver or
other custodian for such Loan Party or any property thereof, or makes a general assignment for the
benefit of creditors; or, in the absence of such application, consent or acquiescence, a trustee,
receiver or other custodian is appointed for any Loan Party or for a substantial part of the
property of any thereof and is not discharged within 60 days; or any bankruptcy, reorganization,
debt arrangement, or other case or proceeding under any bankruptcy or insolvency law, or any
dissolution or liquidation proceeding, is commenced in respect of any Loan Party, and if such case
or proceeding is not commenced by such Loan Party, it is consented to or acquiesced in by such Loan
Party, or remains for 60 days undismissed; or any Loan Party takes any action to authorize, or in
furtherance of, any of the foregoing.

          13.1.5 Non-Compliance with Loan Documents. (a) Failure by any Loan Party to comply
with or to perform any covenant set forth in Section 10.1.5, 10.3(b) or 10.5 or
Section 11; or (b) failure by any Loan Party to comply with or to perform any other
provision of this Agreement or any other Loan Document (and not constituting an Event of Default
under any other provision of this Section 13) and continuance of such failure described in
this clause (b) for 30 days.

          13.1.6 Representations; Warranties. Any representation or warranty made by any Loan
Party herein or any other Loan Document is breached or is false or misleading in any material
respect, or any schedule, certificate, financial statement, report, notice or other

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writing furnished by any Loan Party to the Administrative Agent or any Lender in connection
herewith is false or misleading in any material respect on the date as of which the facts therein
set forth are stated or certified.

          13.1.7 Pension Plans. (a) Any Person institutes steps to terminate a Pension Plan if
as a result of such termination the Company or any member of the Controlled Group could be required
to make a contribution to such Pension Plan, or could incur a liability or obligation to such
Pension Plan, in excess of $3,500,000; (b) a contribution failure occurs with respect to any
Pension Plan sufficient to give rise to a Lien under Section 302(f) of ERISA; (c) the Unfunded
Liability exceeds twenty percent of the Total Plan Liability, or (d) there shall occur any
withdrawal or partial withdrawal from a Multiemployer Pension Plan and the withdrawal liability
(without unaccrued interest) to Multiemployer Pension Plans as a result of such withdrawal
(including any outstanding withdrawal liability that the Company or any member of the Controlled
Group have incurred on the date of such withdrawal) exceeds $3,500,000.

          13.1.8 Judgments. Final judgments which exceed an aggregate of $2,500,000 shall be
rendered against any Loan Party and shall not have been paid, discharged or vacated or had
execution thereof stayed pending appeal within 30 days after entry or filing of such judgments.

          13.1.9 Invalidity of Collateral Documents, etc. Any Collateral Document shall cease
to be in full force and effect; or any Loan Party (or any Person by, through or on behalf of any
Loan Party) shall contest in any manner the validity, binding nature or enforceability of any
Collateral Document.

          13.1.10 Invalidity of Subordination Provisions, etc. Any subordination provision in
any document or instrument governing any Subordinated Debt, or any subordination provision in any
guaranty by any Subsidiary of any Subordinated Debt, shall cease to be in full force and effect, or
any Loan Party or any other Person (including the holder of any applicable Subordinated Debt) shall
contest in any manner the validity, binding nature or enforceability of any such provision.

          13.1.11 Change of Control. A Change of Control shall occur.

     13.2 Effect of Event of Default. If any Event of Default described in Section
13.1.4 shall occur in respect of the Company, the Commitments shall immediately terminate and
the Loans and all other Obligations (other than any outstanding Specified Hedging Obligations which
would not pursuant to their terms be, become or be declared to be then due and payable) hereunder
shall become immediately due and payable and the Company shall become immediately obligated to Cash
Collateralize all Letters of Credit, all without presentment, demand, protest, notice of intent to
accelerate, notice of acceleration, or notice of any kind; and, if any other Event of Default shall
occur and be continuing, the Administrative Agent may (and, upon the written request of the
Required Lenders shall) declare the Commitments to be terminated in whole or in part and/or declare
all or any part of the Loans and all other Obligations (other than any outstanding Specified
Hedging Obligations which would not pursuant to their terms be, become or be declared to be then
due and payable) hereunder to be

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due and payable and/or demand that the Company immediately Cash Collateralize all or any
Letters of Credit, whereupon the Commitments shall immediately terminate (or be reduced, as
applicable) and/or the Loans and other Obligations (other than any outstanding Specified Hedging
Obligations which would not pursuant to their terms be, become or be declared to be then due and
payable) hereunder shall become immediately due and payable (in whole or in part, as applicable)
and/or the Company shall immediately become obligated to Cash Collateralize the Letters of Credit
(all or any, as applicable), all without presentment, demand, protest or notice of any kind. The
Administrative Agent shall promptly advise the Company of any such declaration, but failure to do
so shall not impair the effect of such declaration. Any cash collateral delivered hereunder shall
be held by the Administrative Agent (without liability for interest thereon) and applied to the
Obligations arising in connection with any drawing under a Letter of Credit. After the expiration
or termination of all Letters of Credit, such cash collateral shall be applied by the
Administrative Agent to any remaining Obligations hereunder and any excess shall be delivered to
the Company, or as a court of competent jurisdiction may elect.

SECTION 14 THE AGENTS.

     14.1 Appointment and Authorization. Each Lender hereby irrevocably (subject to
Section 14.10) appoints, designates and authorizes the Administrative Agent to take such
action on its behalf under the provisions of this Agreement and each other Loan Document and to
exercise such powers and perform such duties as are expressly delegated to it by the terms of this
Agreement or any other Loan Document, together with such powers as are reasonably incidental
thereto. Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in
any other Loan Document, the Administrative Agent shall not have any duty or responsibility except
those expressly set forth herein, nor shall the Administrative Agent have or be deemed to have any
fiduciary relationship with any Lender or participant, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other
Loan Document or otherwise exist against the Administrative Agent. Without limiting the generality
of the foregoing sentence, the use of the term “agent” herein and in other Loan Documents with
reference to the Agent is not intended to connote any fiduciary or other implied (or express)
obligations arising under agency doctrine of any applicable law. Instead, such term is used merely
as a matter of market custom, and is intended to create or reflect only an administrative
relationship between independent contracting parties.

     14.2 Issuing Lender. The Issuing Lender shall act on behalf of the Lenders (according
to their Pro Rata Shares) with respect to any Letters of Credit issued by it and the documents
associated therewith. The Issuing Lender shall have all of the benefits and immunities (a)
provided to the Administrative Agent in this Section 14 with respect to any acts taken or
omissions suffered by the Issuing Lender in connection with Letters of Credit issued by it or
proposed to be issued by it and the applications and agreements for letters of credit pertaining to
such Letters of Credit as fully as if the term “Administrative Agent”, as used in this Section
14, included the Issuing Lender with respect to such acts or omissions and (b) as additionally
provided in this Agreement with respect to the Issuing Lender.

     14.3 Delegation of Duties. The Administrative Agent may execute any of its duties
under this Agreement or any other Loan Document by or through agents, employees or
attorneys-in-fact and shall be entitled to advice of counsel and other consultants or experts

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concerning all matters pertaining to such duties. The Administrative Agent shall not be
responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects in
the absence of gross negligence or willful misconduct.

     14.4 Exculpation of Administrative Agent. None of the Administrative Agent nor any of
its directors, officers, employees or agents shall (a) be liable for any action taken or omitted to
be taken by any of them under or in connection with this Agreement or any other Loan Document or
the transactions contemplated hereby (except to the extent resulting from its own gross negligence
or willful misconduct in connection with its duties expressly set forth herein as determined by a
final, nonappealable judgment by a court of competent jurisdiction), or (b) be responsible in any
manner to any Lender or participant for any recital, statement, representation or warranty made by
any Loan Party or Affiliate of the Company, or any officer thereof, contained in this Agreement or
in any other Loan Document, or in any certificate, report, statement or other document referred to
or provided for in, or received by the Administrative Agent under or in connection with, this
Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Loan Document (or the creation, perfection or
priority of any Lien or security interest therein), or for any failure of the Company or any other
party to any Loan Document to perform its Obligations hereunder or thereunder. The Administrative
Agent shall not be under any obligation to any Lender to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions of, this Agreement
or any other Loan Document, or to inspect the properties, books or records of the Company or any of
the Company’s Subsidiaries or Affiliates.

     14.5 Reliance by Administrative Agent. The Administrative Agent shall be entitled to
rely, and shall be fully protected in relying, upon any writing, communication, signature,
resolution, representation, notice, consent, certificate, electronic mail message, affidavit,
letter, telegram, facsimile, telex or telephone message, statement or other document or
conversation believed by it to be genuine and correct and to have been signed, sent or made by the
proper Person or Persons, and upon advice and statements of legal counsel (including counsel to the
Company), independent accountants and other experts selected by the Administrative Agent. The
Administrative Agent shall be fully justified in failing or refusing to take any action under this
Agreement or any other Loan Document unless it shall first receive such advice or concurrence of
the Required Lenders as it deems appropriate and, if it so requests, confirmation from the Lenders
of their obligation to indemnify the Administrative Agent against any and all liability and expense
which may be incurred by it by reason of taking or continuing to take any such action. The
Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting,
under this Agreement or any other Loan Document in accordance with a request or consent of the
Required Lenders and such request and any action taken or failure to act pursuant thereto shall be
binding upon each Lender. For purposes of determining compliance with the conditions specified in
Section 12, each Lender that has signed this Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with, each document or other matter required thereunder
to be consented to or approved by or acceptable or satisfactory to a Lender unless the
Administrative Agent shall have received written notice from such Lender prior to the proposed
Closing Date specifying its objection thereto.

     14.6 Notice of Default. The Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of any Event of Default or Unmatured Event of Default

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except
with respect to defaults in the payment of principal, interest and fees required to be paid
to the Administrative Agent for the account of the Lenders, unless the Administrative Agent
shall have received written notice from a Lender or the Company referring to this Agreement,
describing such Event of Default or Unmatured Event of Default and stating that such notice is a
“notice of default”. The Administrative Agent will notify the Lenders of its receipt of any such
notice. The Administrative Agent shall take such action with respect to such Event of Default or
Unmatured Event of Default as may be requested by the Required Lenders in accordance with
Section 13; provided that unless and until the Administrative Agent has received
any such request, the Administrative Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Event of Default or Unmatured Event of
Default as it shall deem advisable or in the best interest of the Lenders.

     14.7 Credit Decision. Each Lender acknowledges that the Administrative Agent has not
made any representation or warranty to it, and that no act by the Administrative Agent hereafter
taken, including any consent and acceptance of any assignment or review of the affairs of the Loan
Parties, shall be deemed to constitute any representation or warranty by the Administrative Agent
to any Lender as to any matter, including whether the Administrative Agent has disclosed material
information in its possession. Each Lender represents to the Administrative Agent that it has,
independently and without reliance upon the Administrative Agent and based on such documents and
information as it has deemed appropriate, made its own appraisal of and investigation into the
business, prospects, operations, property, financial and other condition and creditworthiness of
the Loan Parties, and made its own decision to enter into this Agreement and to extend credit to
the Company hereunder. Each Lender also represents that it will, independently and without
reliance upon the Administrative Agent and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Agreement and the other Loan Documents, and to make such
investigations as it deems necessary to inform itself as to the business, prospects, operations,
property, financial and other condition and creditworthiness of the Company. Except for notices,
reports and other documents expressly herein required to be furnished to the Lenders by the
Administrative Agent, the Administrative Agent shall not have any duty or responsibility to provide
any Lender with any credit or other information concerning the business, prospects, operations,
property, financial or other condition or creditworthiness of the Company which may come into the
possession of the Administrative Agent.

     14.8 Indemnification. Whether or not the transactions contemplated hereby are
consummated, each Lender shall indemnify upon demand the Administrative Agent and its directors,
officers, employees and agents (to the extent not reimbursed by or on behalf of the Company and
without limiting the obligation of the Company to do so), according to its applicable Pro Rata
Share, from and against any and all Indemnified Liabilities (as hereinafter defined);
provided that no Lender shall be liable for any payment to any such Person of any portion
of the Indemnified Liabilities to the extent determined by a final, nonappealable judgment by a
court of competent jurisdiction to have resulted from the applicable Person’s own gross negligence
or willful misconduct. No action taken in accordance with the directions of the Required Lenders
shall be deemed to constitute gross negligence or willful misconduct for purposes of this Section.
Without limitation of the foregoing, each Lender shall reimburse the Administrative Agent upon
demand for its ratable share of any costs or out-of-pocket expenses

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(including Attorney Costs and
Taxes) incurred by the Administrative Agent 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, this Agreement, any other Loan Document, or any document
contemplated by or referred to herein, to the extent that the Administrative Agent is not
reimbursed for such expenses by or on behalf of the Company. The undertaking in this Section shall
survive repayment of the Loans, cancellation of the Notes, expiration or termination of the Letters
of Credit, any foreclosure under, or modification, release or discharge of, any or all of the
Collateral Documents, termination of this Agreement and the resignation or replacement of the
Administrative Agent.

     14.9 Administrative Agent in Individual Capacity. LaSalle and its Affiliates may make
loans to, issue letters of credit for the account of, accept deposits from, acquire equity
interests in and generally engage in any kind of banking, trust, financial advisory, underwriting
or other business with the Loan Parties and Affiliates as though LaSalle were not the
Administrative Agent hereunder and without notice to or consent of any Lender. Each Lender
acknowledges that, pursuant to such activities, LaSalle or its Affiliates may receive information
regarding the Company or its Affiliates (including information that may be subject to
confidentiality obligations in favor of the Company or such Affiliate) and acknowledge that the
Administrative Agent shall be under no obligation to provide such information to them. With
respect to their Loans (if any), LaSalle and its Affiliates shall have the same rights and powers
under this Agreement as any other Lender and may exercise the same as though LaSalle were not the
Administrative Agent, and the terms “Lender” and “Lenders” include LaSalle and its Affiliates, to
the extent applicable, in their individual capacities.

     14.10 Successor Administrative Agent. The Administrative Agent may resign as
Administrative Agent upon 30 days’ notice to the Lenders. If the Administrative Agent resigns
under this Agreement, the Required Lenders shall, with (so long as no Event of Default exists) the
consent of the Company (which shall not be unreasonably withheld or delayed), appoint from among
the Lenders a successor agent for the Lenders. If no successor agent is appointed prior to the
effective date of the resignation of the Administrative Agent, the Administrative Agent may
appoint, after consulting with the Lenders and the Company, a successor agent from among the
Lenders. Upon the acceptance of its appointment as successor agent hereunder, such successor agent
shall succeed to all the rights, powers and duties of the retiring Administrative Agent and the
term “Administrative Agent” shall mean such successor agent, and the retiring Administrative
Agent’s appointment, powers and duties as Administrative Agent shall be terminated. After any
retiring Administrative Agent’s resignation hereunder as Administrative Agent, the provisions of
this Section 14 and Sections 15.5 and 15.17 shall inure to its benefit as
to any actions taken or omitted to be taken by it while it was Administrative Agent under this
Agreement. If no successor agent has accepted appointment as Administrative Agent by the date
which is 30 days following a retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become effective and the Lenders
shall perform all of the duties of the Administrative Agent hereunder until such time, if any, as
the Required Lenders appoint a successor agent as provided for above.

     14.11 Collateral Matters. The Lenders irrevocably authorize the Administrative Agent,
at its option and in its discretion, (a) to release any Lien granted to or held by the
Administrative

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Agent under any Collateral Document (i) upon termination of the Commitments and
payment in
full of all Loans and all other obligations of the Company hereunder and the expiration or
termination of all Letters of Credit; (ii) constituting property sold or to be sold or disposed of
as part of or in connection with any disposition permitted hereunder; or (iii) subject to
Section 15.1, if approved, authorized or ratified in writing by the Required Lenders; or
(b) to subordinate its interest in any collateral to any holder of a Lien on such collateral which
is permitted by Section 11.2(d)(i) or (d)(iii) (it being understood that the
Administrative Agent may conclusively rely on a certificate from the Company in determining whether
the Debt secured by any such Lien is permitted by Section 11.1(b)). Upon request by the
Administrative Agent at any time, the Lenders will confirm in writing the Administrative Agent’s
authority to release, or subordinate its interest in, particular types or items of collateral
pursuant to this Section 14.11. Each Lender hereby authorizes the Administrative Agent to
give blockage notices in connection with any Subordinated Debt at the direction of Required Lenders
and agrees that it will not act unilaterally to deliver such notices.

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

               (a) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans, 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 Administrative Agent (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Lenders and the Administrative Agent and their respective agents
and counsel and all other amounts due the Lenders and the Administrative Agent under Sections
5, 15.5 and 15.17) allowed in such judicial proceedings; 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
Administrative Agent and, in the event that the Administrative Agent shall consent to the making of
such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its
agents and counsel, and any other amounts due the Administrative Agent under Sections 5,
15.5 and 15.17.

     Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize
or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement,
adjustment or composition affecting the Obligations or the rights of any Lender or

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to authorize the
Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

     14.13 Other Agents; Arrangers and Managers. None of the Lenders or other Persons
identified on the facing page or signature pages of this Agreement as a “syndication agent,”
“documentation agent,” “co-agent,” “book manager,” “lead manager,” “arranger,” “lead arranger” or
“co-arranger”, if any, shall have any right, power, obligation, liability, responsibility or duty
under this Agreement other than, in the case of such Lenders, those applicable to all Lenders as
such. Without limiting the foregoing, none of the Lenders or other Persons so identified shall
have or be deemed to have any fiduciary relationship with any Lender. Each Lender acknowledges
that it has not relied, and will not rely, on any of the Lenders or other Persons so identified in
deciding to enter into this Agreement or in taking or not taking action hereunder.

     14.14 Relationship Among Lenders. The obligations of each Lender and each Issuing
Bank under this Agreement are several. Neither the Administrative Agent, any Issuing Bank, nor any
Lender shall be liable for the failure of any Lender or any Issuing Bank to perform its obligations
under this Agreement. Each Lender and each Issuing Bank agrees that it will not take any legal
action, or institute any action or proceedings, against the company or any Loan Party or with
respect to any Collateral, without the prior written consent of the Required Lenders.

     14.15 Benefit of Article. The provisions contained in this Article are solely for the
benefit of the Administrative Agent, the Issuing Bank, and the Lenders and are not for the benefit
of, nor may they be relied upon by, the Company, any Loan Party, or any third party.

SECTION 15 GENERAL.

     15.1 Waiver; Amendments. No delay on the part of the Administrative Agent or any
Lender in the exercise of any right, power or remedy shall operate as a waiver thereof, nor shall
any single or partial exercise by any of them of any right, power or remedy preclude other or
further exercise thereof, or the exercise of any other right, power or remedy. No amendment,
modification or waiver of, or consent with respect to, any provision of this Agreement or the other
Loan Documents shall in any event be effective unless the same shall be in writing and acknowledged
by Lenders having an aggregate Pro Rata Shares of not less than the aggregate Pro Rata Shares
expressly designated herein with respect thereto or, in the absence of such designation as to any
provision of this Agreement, by the Required Lenders, and then any such amendment, modification,
waiver or consent shall be effective only in the specific instance and for the specific purpose for
which given. No amendment, modification, waiver or consent shall (a) extend or increase the
Commitment of any Lender without the written consent of such Lender, (b) extend the date scheduled
for payment of any principal (excluding mandatory prepayments) of or interest on the Loans or any
fees payable hereunder without the written consent of each Lender directly affected thereby, (c)
reduce the principal amount of any Loan, the rate of interest thereon or any fees payable
hereunder, without the consent of each Lender directly affected thereby; or (d) waive any Unmatured
Event of Default or Event of Default or release any party from its obligations under the Guaranty
or all or any substantial part of the collateral granted under the Collateral Documents, change the
definition of Required Lenders,

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any provisions of Section 14, any provision of this
Section 15.1 or reduce the aggregate Pro Rata Share required to effect an amendment,
modification, waiver or consent, without, in each case, the written consent of all Lenders. No
provision of Section 14 or other provision of this Agreement affecting the Administrative
Agent in its capacity as such shall be amended, modified
or waived without the consent of the Administrative Agent. No provision of this Agreement
relating to the rights or duties of the Issuing Lender in its capacity as such shall be amended,
modified or waived without the consent of the Issuing Lender. No provision of this Agreement
relating to the rights or duties of the Swing Line Lender in its capacity as such shall be amended,
modified or waived without the consent of the Swing Line Lender.

     15.2 Confirmations. The Company and each holder of a Note agree from time to time,
upon written request received by it from the other, to confirm to the other in writing (with a copy
of each such confirmation to the Administrative Agent) the aggregate unpaid principal amount of the
Loans then outstanding under such Note.

     15.3 Notices. Except as otherwise provided in Sections 2.2.2 and
2.2.3, all notices hereunder shall be in writing (including facsimile transmission) and
shall be sent to the applicable party at its address shown on Annex B or at such other
address as such party may, by written notice received by the other parties, have designated as its
address for such purpose. Notices sent by facsimile transmission shall be deemed to have been
given when sent; notices sent by mail shall be deemed to have been given three Business Days after
the date when sent by registered or certified mail, postage prepaid; and notices sent by hand
delivery or overnight courier service shall be deemed to have been given when received. For
purposes of Sections 2.2.2 and 2.2.3, the Administrative Agent shall be entitled to
rely on telephonic instructions from any person that the Administrative Agent in good faith
believes is an authorized officer or employee of the Company, and the Company shall hold the
Administrative Agent and each other Lender harmless from any loss, cost or expense resulting from
any such reliance.

     15.4 Computations. Where the character or amount of any asset or liability or item of
income or expense is required to be determined, or any consolidation or other accounting
computation is required to be made, for the purpose of this Agreement, such determination or
calculation shall, to the extent applicable and except as otherwise specified in this Agreement, be
made in accordance with GAAP, consistently applied; provided that if the Company notifies
the Administrative Agent that the Company wishes to amend any covenant in Section 10 (or
any related definition) to eliminate or to take into account the effect of any change in GAAP on
the operation of such covenant (or if the Administrative Agent notifies the Company that the
Required Lenders wish to amend Section 10 (or any related definition) for such purpose),
then the Company’s compliance with such covenant shall be determined on the basis of GAAP in effect
immediately before the relevant change in GAAP became effective, until either such notice is
withdrawn or such covenant (or related definition) is amended in a manner satisfactory to the
Company and the Required Lenders.

     15.5 Costs, Expenses and Taxes. The Company agrees to pay on demand all reasonable
out-of-pocket costs and expenses of the Administrative Agent (including Attorney Costs and any
Taxes) in connection with the preparation, execution, syndication, delivery and administration
(including perfection and protection of any collateral and the costs of Intralinks (or other
similar service), if applicable) of this Agreement, the other Loan Documents and all

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other
documents provided for herein or delivered or to be delivered hereunder or in connection herewith
(including any amendment, supplement or waiver to any Loan Document), whether or not the
transactions contemplated hereby or thereby shall be consummated, and all reasonable out-of-pocket
costs and expenses (including Attorney Costs and any Taxes) incurred by the
Administrative Agent after an Event of Default in connection with the collection of the
Obligations or the enforcement of this Agreement the other Loan Documents or any such other
documents or during any workout, restructuring or negotiations in respect thereof. In addition,
the Company agrees to pay, and to save the Administrative Agent and the Lenders harmless from all
liability for, any fees of the Company’s auditors in connection with any reasonable exercise by the
Administrative Agent and the Lenders of their rights pursuant to Section 10.2. All
Obligations provided for in this Section 15.5 shall survive repayment of the Loans,
cancellation of the Notes, expiration or termination of the Letters of Credit and termination of
this Agreement.

     15.6 Assignments; Participations.

          15.6.1 Assignments. (a) Any Lender may at any time assign to one or more Persons
(any such Person, an “Assignee”) all or any portion of such Lender’s Loans and Commitments,
with the prior written consent of the Administrative Agent, the Issuing Lender (for an assignment
of the Revolving Loans and the Revolving Commitment) and, so long as no Event of Default exists,
the Company (which consents shall not be unreasonably withheld or delayed and shall not be required
for an assignment by a Lender to a Lender or an Affiliate of a Lender). Except as the
Administrative Agent may otherwise agree, any such assignment shall be in a minimum aggregate
amount equal to $5,000,000 or, if less, the remaining Commitment and Loans held by the assigning
Lender. The Company and the Administrative Agent shall be entitled to continue to deal solely and
directly with such Lender in connection with the interests so assigned to an Assignee until the
Administrative Agent shall have received and accepted an effective assignment agreement in
substantially the form of Exhibit D hereto (an “Assignment Agreement”) executed,
delivered and fully completed by the applicable parties thereto and a processing fee of $3,500. No
assignment may be made to any Person if at the time of such assignment the Company would be
obligated to pay any greater amount under Section 7.6 or 8 to the Assignee than the
Company is then obligated to pay to the assigning Lender under such Sections (and if any assignment
is made in violation of the foregoing, the Company will not be required to pay such greater
amounts). Any attempted assignment not made in accordance with this Section 15.6.1 shall
be treated as the sale of a participation under Section 15.6.2. The Company shall be
deemed to have granted its consent to any assignment requiring its consent hereunder unless the
Company has expressly objected to such assignment within three Business Days after notice thereof.

               (b) From and after the date on which the conditions described above have been met, (i) such
Assignee shall be deemed automatically to have become a party hereto and, to the extent that rights
and obligations hereunder have been assigned to such Assignee pursuant to such Assignment
Agreement, shall have the rights and obligations of a Lender hereunder and (ii) the assigning
Lender, to the extent that rights and obligations hereunder have been assigned by it pursuant to
such Assignment Agreement, shall be released from its rights (other than its indemnification
rights) and obligations hereunder. Upon the request of the Assignee (and, as applicable, the
assigning Lender) pursuant to an effective Assignment

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Agreement, the Company shall execute and
deliver to the Administrative Agent for delivery to the Assignee (and, as applicable, the assigning
Lender) a Note in the principal amount of the Assignee’s Pro Rata Share of the Revolving Commitment
plus the principal amount of the Assignee’s Term Loan (and, as applicable, a Note in the principal
amount of the Pro Rata Share
of the Revolving Commitment retained by the assigning Lender plus the principal amount of the
Term Loan retained by the assigning Lender). Each such Note shall be dated the effective date of
such assignment. Upon receipt by the assigning Lender of such Note, the assigning Lender shall
return to the Company any prior Note held by it.

               (c) 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, and this Section shall not apply to any
such pledge or assignment of a security interest; provided that no such pledge or
assignment of a security interest shall release a Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

          15.6.2 Participations. Any Lender may at any time sell to one or more Persons
participating interests in its Loans, Commitments or other interests hereunder (any such Person, a
“Participant”). In the event of a sale by a Lender of a participating interest to a
Participant, (a) such Lender’s obligations hereunder shall remain unchanged for all purposes, (b)
the Company and the Administrative Agent shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations hereunder, (c) all amounts payable
by the Company shall be determined as if such Lender had not sold such participation and shall be
paid directly to such Lender and (d) the Lender shall send notice to the Administrative Agent and
the Administrative Agent shall send notice to the Company, which shall include the name of the
Participant and the size of the participation. No Participant shall have any direct or indirect
voting rights hereunder except with respect to any event described in Section 15.1
expressly requiring the unanimous vote of all Lenders or, as applicable, all affected Lenders.
Each Lender agrees to incorporate the requirements of the preceding sentence into each
participation agreement which such Lender enters into with any Participant. The Company agrees
that if amounts outstanding under this Agreement are due and payable (as a result of acceleration
or otherwise), each Participant shall be deemed to have the right of set-off in respect of its
participating interest in amounts owing under this Agreement and with respect to any Letter of
Credit to the same extent as if the amount of its participating interest were owing directly to it
as a Lender under this Agreement; provided that such right of set-off shall be subject to
the obligation of each Participant to share with the Lenders, and the Lenders agree to share with
each Participant, as provided in Section 7.5. The Company also agrees that each
Participant shall be entitled to the benefits of Section 7.6 or 8 as if it were a
Lender (provided that on the date of the participation no Participant shall be entitled to
any greater compensation pursuant to Section 7.6 or 8 than would have been paid to
the participating Lender on such date if no participation had been sold and that each Participant
complies with Section 7.6(d) as if it were an Assignee).

     15.7 Register. The Administrative Agent shall maintain a copy of each Assignment
Agreement delivered and accepted by it and register (the “Register”) for the recordation of
names and addresses of the Lenders and the Commitment of each Lender from time to time and whether
such Lender is the original Lender or the Assignee. No assignment shall be effective

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unless and
until the Assignment Agreement is accepted and registered in the Register. All records of transfer
of a Lender’s interest in the Register shall be conclusive, absent manifest error, as to the
ownership of the interests in the Loans. The Administrative Agent shall not incur any liability of
any kind with respect to any Lender with respect to the maintenance of the Register.

     15.8 GOVERNING LAW. THIS AGREEMENT AND EACH NOTE SHALL BE A CONTRACT MADE UNDER AND
GOVERNED BY AND ALL ISSUES ARISING THEREUNDER, INCLUDING THE VALIDITY AND ENFORCEABILITY SHALL BE
DETERMINED UNDER THE INTERNAL LAWS OF THE STATE OF ILLINOIS APPLICABLE TO CONTRACTS MADE AND TO BE
PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

     15.9 Confidentiality. As required by federal law and the Administrative Agent’s
policies and practices, the Administrative Agent may need to obtain, verify, and record certain
customer identification information and documentation in connection with opening or maintaining
accounts, or establishing or continuing to provide services. The Administrative Agent and each
Lender agree to use commercially reasonable efforts (equivalent to the efforts the Administrative
Agent or such Lender applies to maintain the confidentiality of its own confidential information)
to maintain as confidential all information provided to them by any Loan Party and designated as
confidential (it being understood that the information provided pursuant to Section 10.1.7
and financial information delivered on a pro forma basis in connection with an acquisition shall be
confidential information subject to the provisions of this Section 15.9), except that the
Administrative Agent and each Lender may disclose such information (a) to Persons employed or
engaged by the Administrative Agent or such Lender in evaluating, approving, structuring,
collecting, or administering the Loans and the Commitments; (b) to any assignee or participant or
potential assignee or participant that has agreed to comply with the covenant contained in this
Section 15.9 (and any such assignee or participant or potential assignee or participant may
disclose such information to Persons employed or engaged by them as described in clause (a) above);
(c) as required or requested by any federal or state regulatory authority or examiner, or any
insurance industry association that agrees to be bound by the terms of this Section 15.9,
or as reasonably believed by the Administrative Agent or such Lender to be compelled by any court
decree, subpoena or legal or administrative order or process; (d) as, on the advice of the
Administrative Agent’s or such Lender’s counsel, is required by law; (e) in connection with the
exercise of any right or remedy under the Loan Documents or in connection with any litigation to
which the Administrative Agent or such Lender is a party; (f) to any nationally recognized rating
agency that requires access to information about a Lender’s investment portfolio in connection with
ratings issued with respect to such Lender and agrees to be bound by the provisions of this
Section 15.9; (g) to any Affiliate of the Administrative Agent, the Issuing Lender or any
other Lender who may provide Bank Products to the Loan Parties that agrees to be bound by the terms
of this Section 15.9; or (h) that ceases to be confidential through no fault of the
Administrative Agent or any Lender. Notwithstanding the foregoing, the Company consents to the
publication by the Administrative Agent or any Lender of a tombstone or similar advertising
material relating to the financing transactions contemplated by this Agreement, and the
Administrative Agent reserves the right to provide to industry trade

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organizations information
necessary and customary for inclusion in league table measurements, provided that such shall not
include material non-public information.

     15.10 Severability. Whenever possible each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement. All obligations of the Company
and rights of the Administrative Agent and the Lenders expressed herein or in any other Loan
Document shall be in addition to and not in limitation of those provided by applicable law.

     15.11 Nature of Remedies. All Obligations of the Company and rights of the
Administrative Agent and the Lenders expressed herein or in any other Loan Document shall be in
addition to and not in limitation of those provided by applicable law. No failure to exercise and
no delay in exercising, on the part of the Administrative Agent or any Lender, any right, remedy,
power or privilege hereunder, shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege.

     15.12 Entire Agreement. This Agreement, together with the other Loan Documents,
embodies the entire agreement and understanding among the parties hereto and supersedes all prior
or contemporaneous agreements and understandings of such Persons, verbal or written, relating to
the subject matter hereof and thereof (except as relates to the fees described in Section
5.3) and any prior arrangements made with respect to the payment by the Company of (or any
indemnification for) any fees, costs or expenses payable to or incurred (or to be incurred) by or
on behalf of the Administrative Agent or the Lenders.

     15.13 Counterparts. This Agreement may be executed in any number of counterparts and
by the different parties hereto on separate counterparts and each such counterpart shall be deemed
to be an original, but all such counterparts shall together constitute but one and the same
Agreement. Receipt of an executed signature page to this Agreement by facsimile or other
electronic transmission shall constitute effective delivery thereof. Electronic records of
executed Loan Documents maintained by the Lenders shall deemed to be originals.

     15.14 Successors and Assigns. This Agreement shall be binding upon the Company, the
Lenders and the Administrative Agent and their respective successors and assigns, and shall inure
to the benefit of the Company, the Lenders and the Administrative Agent and the successors and
assigns of the Lenders and the Administrative Agent. No other Person shall be a direct or indirect
legal beneficiary of, or have any direct or indirect cause of action or claim in connection with,
this Agreement or any of the other Loan Documents. The Company may not assign or transfer any of
its rights or Obligations under this Agreement without the prior written consent of the
Administrative Agent and each Lender.

     15.15 Captions. Section captions used in this Agreement are for convenience only and
shall not affect the construction of this Agreement.

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     15.16 Customer Identification — USA Patriot Act Notice. Each Lender and LaSalle (for
itself and not on behalf of any other party) hereby notifies the Loan Parties that, pursuant to the
requirements of the USA Patriot Act, Title III of Pub. L. 107-56, signed into law October 26, 2001
(the “Act”), it is required to obtain, verify and record information that identifies the
Loan Parties, which information includes the name and address of the Loan Parties and other
information that will allow such Lender or LaSalle, as applicable, to identify the Loan Parties in
accordance with the Act.

     15.17 INDEMNIFICATION BY THE COMPANY. IN CONSIDERATION OF THE EXECUTION AND DELIVERY
OF THIS AGREEMENT BY THE ADMINISTRATIVE AGENT AND THE LENDERS AND THE AGREEMENT TO EXTEND THE
COMMITMENTS PROVIDED HEREUNDER, THE COMPANY HEREBY AGREES TO INDEMNIFY, EXONERATE AND HOLD THE
ADMINISTRATIVE AGENT, EACH LENDER AND EACH OF THE OFFICERS, DIRECTORS, EMPLOYEES, AFFILIATES AND
AGENTS OF THE ADMINISTRATIVE AGENT AND EACH LENDER (EACH A “LENDER PARTY”) FREE AND
HARMLESS FROM AND AGAINST ANY AND ALL ACTIONS, CAUSES OF ACTION, SUITS, LOSSES, LIABILITIES,
DAMAGES AND EXPENSES, INCLUDING ATTORNEY COSTS (COLLECTIVELY, THE “INDEMNIFIED
LIABILITIES”), INCURRED BY THE LENDER PARTIES OR ANY OF THEM AS A RESULT OF, OR ARISING OUT OF,
OR RELATING TO (A) ANY TENDER OFFER, MERGER, PURCHASE OF CAPITAL SECURITIES, PURCHASE OF ASSETS OR
OTHER SIMILAR TRANSACTION FINANCED OR PROPOSED TO BE FINANCED IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, WITH THE PROCEEDS OF ANY OF THE LOANS, (B) THE USE, HANDLING, RELEASE, EMISSION,
DISCHARGE, TRANSPORTATION, STORAGE, TREATMENT OR DISPOSAL OF ANY HAZARDOUS SUBSTANCE AT ANY
PROPERTY OWNED OR LEASED BY ANY LOAN PARTY, (C) ANY VIOLATION OF ANY ENVIRONMENTAL LAWS WITH
RESPECT TO CONDITIONS AT ANY PROPERTY OWNED OR LEASED BY ANY LOAN PARTY OR THE OPERATIONS CONDUCTED
THEREON, (D) THE INVESTIGATION, CLEANUP OR REMEDIATION OF OFFSITE LOCATIONS AT WHICH ANY LOAN PARTY
OR THEIR RESPECTIVE PREDECESSORS ARE ALLEGED TO HAVE DIRECTLY OR INDIRECTLY DISPOSED OF HAZARDOUS
SUBSTANCES OR (E) THE EXECUTION, DELIVERY, PERFORMANCE OR ENFORCEMENT OF THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT BY ANY OF THE LENDER PARTIES, EXCEPT FOR ANY SUCH INDEMNIFIED LIABILITIES
ARISING ON ACCOUNT OF THE APPLICABLE LENDER PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS
DETERMINED BY A FINAL, NONAPPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION. IF AND TO THE
EXTENT THAT THE FOREGOING UNDERTAKING MAY BE UNENFORCEABLE FOR ANY REASON, THE COMPANY HEREBY
AGREES TO MAKE THE MAXIMUM CONTRIBUTION TO THE PAYMENT AND SATISFACTION OF EACH OF THE INDEMNIFIED
LIABILITIES WHICH IS PERMISSIBLE UNDER APPLICABLE LAW. ALL OBLIGATIONS PROVIDED FOR IN THIS
SECTION 15.17 SHALL SURVIVE REPAYMENT OF THE LOANS, CANCELLATION OF THE NOTES, EXPIRATION
OR TERMINATION OF THE LETTERS OF CREDIT, ANY FORECLOSURE UNDER, OR ANY

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MODIFICATION, RELEASE OR
DISCHARGE OF, ANY OR ALL OF THE COLLATERAL DOCUMENTS AND TERMINATION OF THIS AGREEMENT.

     15.18 Nonliability of Lenders. The relationship between the Company on the one hand
and the Lenders and the Administrative Agent on the other hand shall be solely that of borrower and
lender. Neither the Administrative Agent nor any Lender has any fiduciary relationship with or
duty to any Loan Party arising out of or in connection with this Agreement or any of the other Loan
Documents, and the relationship between the Loan Parties, on the one hand, and the
Administrative Agent and the Lenders, on the other hand, in connection herewith or therewith
is solely that of debtor and creditor. Neither the Administrative Agent nor any Lender undertakes
any responsibility to any Loan Party to review or inform any Loan Party of any matter in connection
with any phase of any Loan Party’s business or operations. The Company agrees, on behalf of itself
and each other Loan Party, that neither the Administrative Agent nor any Lender shall have
liability to any Loan Party (whether sounding in tort, contract or otherwise) for losses suffered
by any Loan Party in connection with, arising out of, or in any way related to the transactions
contemplated and the relationship established by the Loan Documents, or any act, omission or event
occurring in connection therewith, unless it is determined in a final non-appealable judgment by a
court of competent jurisdiction that such losses resulted from the gross negligence or willful
misconduct of the party from which recovery is sought. NO LENDER PARTY SHALL BE LIABLE FOR ANY
DAMAGES ARISING FROM THE USE BY OTHERS OF ANY INFORMATION OR OTHER MATERIALS OBTAINED THROUGH
INTRALINKS OR OTHER SIMILAR INFORMATION TRANSMISSION SYSTEMS IN CONNECTION WITH THIS AGREEMENT, NOR
SHALL ANY LENDER PARTY HAVE ANY LIABILITY WITH RESPECT TO, AND THE COMPANY ON BEHALF OF ITSELF AND
EACH OTHER LOAN PARTY, HEREBY WAIVES, RELEASES AND AGREES NOT TO SUE FOR ANY SPECIAL, INDIRECT OR
CONSEQUENTIAL DAMAGES RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR ARISING OUT OF ITS
ACTIVITIES IN CONNECTION HEREWITH OR THEREWITH (WHETHER BEFORE OR AFTER THE CLOSING DATE). The
Company acknowledges that it has been advised by counsel in the negotiation, execution and delivery
of this Agreement and the other Loan Documents to which it is a party. No joint venture is created
hereby or by the other Loan Documents or otherwise exists by virtue of the transactions
contemplated hereby among the Lenders or among the Loan Parties and the Lenders

     15.19 FORUM SELECTION AND CONSENT TO JURISDICTION. ANY LITIGATION BASED HEREON, OR
ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, SHALL BE
BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF ILLINOIS OR IN THE UNITED STATES
DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS; PROVIDED THAT NOTHING IN THIS
AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE THE ADMINISTRATIVE AGENT FROM BRINGING SUIT OR
TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION. THE COMPANY HEREBY EXPRESSLY AND IRREVOCABLY
SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF ILLINOIS AND OF THE UNITED STATES
DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET
FORTH ABOVE. THE COMPANY FURTHER IRREVOCABLY

- 68 -

 

CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED
MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF ILLINOIS. THE COMPANY
HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION
WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY
SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM.

     15.20 WAIVER OF JURY TRIAL. EACH OF THE COMPANY, THE ADMINISTRATIVE AGENT AND EACH
LENDER HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND
ANY RIGHTS UNDER THIS AGREEMENT, ANY NOTE, ANY OTHER LOAN DOCUMENT AND ANY AMENDMENT, INSTRUMENT,
DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR
THEREWITH OR ARISING FROM ANY LENDING RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE
FOREGOING, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT
BEFORE A JURY.

SECTION 16 CROSS-GUARANTY.

     16.1 Cross-Guaranty. Each Co-Borrower hereby agrees that such Co-Borrower is jointly
and severally liable for, and hereby absolutely and unconditionally guarantees to the
Administrative Agent and Lenders and their respective successors and assigns, the full and prompt
payment (whether at stated maturity, by acceleration or otherwise) and performance of, all
Obligations owed or hereafter owing to the Administrative Agent and Lenders by each other
Co-Borrower. Each Co-Borrower agrees that its guaranty obligation hereunder is a continuing
guaranty of payment and performance and not of collection, that its obligations under this
Section 16 shall not be discharged until payment and performance, in full, of the
Obligations has occurred, and that its obligations under this Section 16 shall be absolute
and unconditional, irrespective of, and unaffected by,

               (a) the genuineness, validity, regularity, enforceability or any future amendment of, or
change in, this Agreement, any other Loan Document or any other agreement, document or instrument
to which any Co-Borrower is or may become a party;

               (b) the absence of any action to enforce this Agreement (including this Section 16) or
any other Loan Document or the waiver or consent by the Administrative Agent and Lenders with
respect to any of the provisions thereof;

               (c) the insolvency of any Co-Borrower or Subsidiary; or

               (d) any other action or circumstances that might otherwise constitute a legal or equitable
discharge or defense of a surety or guarantor.

Each Co-Borrower shall be regarded, and shall be in the same position, as principal debtor with
respect to the Obligations guaranteed hereunder.

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     16.2 Waivers by Co-Borrowers. Each Co-Borrower expressly waives all rights it may
have now or in the future under any statute, or at common law, or at law or in equity, or
otherwise, to compel the Administrative Agent or Lenders to marshal assets or to proceed in respect
of the Obligations guaranteed hereunder against any other Co-Borrower or Subsidiary, any other
party or against any security for the payment and performance of the Obligations before proceeding
against, or as a condition to proceeding against, such Co-Borrower. It is agreed among each
Co-Borrower, the Administrative Agent and Lenders that the foregoing waivers are of the essence of
the transaction contemplated by this Agreement and the other Loan
Documents and that, but for the provisions of this Section 16 and such waivers, the
Administrative Agent and Lenders would decline to enter into this Agreement.

     16.3 Benefit of Guaranty. Each Co-Borrower agrees that the provisions of this
Section 16 are for the benefit of the Administrative Agent and Lenders and their respective
successors, transferees, endorsees and assigns, and nothing herein contained shall impair, as
between any other Co-Borrower and the Administrative Agent or Lenders, the obligations of such
other Co-Borrower under the Loan Documents.

     16.4 Waiver of Subrogation, Etc. Notwithstanding anything to the contrary in this
Agreement or in any other Loan Document, and except as set forth in Section 16.7, each
Co-Borrower hereby expressly and irrevocably waives any and all rights at law or in equity to
subrogation, reimbursement, exoneration, contribution, indemnification or set off and any and all
defenses available to a surety, guarantor or accommodation co-obligor. Each Co-Borrower
acknowledges and agrees that this waiver is intended to benefit the Administrative Agent and
Lenders and shall not limit or otherwise affect such Co-Borrower’s liability hereunder or the
enforceability of this Section 16, and that the Administrative Agent, Lenders and their
respective successors and assigns are intended third party beneficiaries of the waivers and
agreements set forth in this Section 16.4.

     16.5 Election of Remedies. If the Administrative Agent or any Lender may, under
applicable law, proceed to realize its benefits under any of the Loan Documents, the Administrative
Agent or any Lender may, at its sole option, determine which of its remedies or rights it may
pursue without affecting any of its rights and remedies under this Section 16. If, in the
exercise of any of its rights and remedies, the Administrative Agent or any Lender shall forfeit
any of its rights or remedies, including its right to enter a deficiency judgment against any
Co-Borrower or any other Person, whether because of any applicable laws pertaining to “election of
remedies” or the like, each Co-Borrower hereby consents to such action by the Administrative Agent
or such Lender and waives any claim based upon such action, even if such action by the
Administrative Agent or such Lender shall result in a full or partial loss of any rights of
subrogation that each Co-Borrower might otherwise have had but for such action by the
Administrative Agent or such Lender. Any election of remedies that results in the denial or
impairment of the right of the Administrative Agent or any Lender to seek a deficiency judgment
against any Co-Borrower shall not impair any other Co-Borrower’s obligation to pay the full amount
of the Obligations.

     16.6 Limitation. Notwithstanding any provision herein contained to the contrary, each
Co-Borrower’s liability under this Section 16 (which liability is in any event in addition
to

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amounts for which such Co-Borrower is primarily liable under Section 2) shall be limited
to an amount not to exceed as of any date of determination the greater of:

               (a) the net amount of all Loans advanced to any other Co-Borrower under this Agreement and
then re-loaned or otherwise transferred to, or for the benefit of, such Co-Borrower; and

               (b) the amount that could be claimed by the Administrative Agent and Lenders from such
Co-Borrower under this Section 16 without rendering such claim voidable or
avoidable under Section 548 of Chapter 11 of the Bankruptcy Code or under any applicable state
Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or common law
after taking into account, among other things, such Co-Borrower’s right of contribution and
indemnification from each other Co-Borrower under Section 16.7.

     16.7 Contribution with Respect to Guaranty Obligations.

               (a) To the extent that any Co-Borrower shall make a payment under this Section 16 of
all or any of the Obligations (other than Loans made to that Co-Borrower for which it is primarily
liable) (a “Guarantor Payment”) that, taking into account all other Guarantor Payments then
previously or concurrently made by any other Co-Borrower, exceeds the amount that such Co-Borrower
would otherwise have paid if each Co-Borrower had paid the aggregate Obligations satisfied by such
Guarantor Payment in the same proportion that such Co-Borrower’s “Allocable Amount” (as defined
below) (as determined immediately prior to such Guarantor Payment) bore to the aggregate Allocable
Amounts of each of the Co-Borrowers as determined immediately prior to the making of such Guarantor
Payment, then, following indefeasible payment in full in cash of the Obligations and termination of
the Commitments, such Co-Borrower shall be entitled to receive contribution and indemnification
payments from, and be reimbursed by, each other Co-Borrower for the amount of such excess, pro rata
based upon their respective Allocable Amounts in effect immediately prior to such Guarantor
Payment.

               (b) As of any date of determination, the “Allocable Amount” of any Co-Borrower shall be equal
to the maximum amount of the claim that could then be recovered from such Co-Borrower under this
Section 16 without rendering such claim voidable or avoidable under Section 548 of Chapter
11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform
Fraudulent Conveyance Act or similar statute or common law.

               (c) This Section 16.7 is intended only to define the relative rights of Co-Borrowers
and nothing set forth in this Section 16.7 is intended to or shall impair the obligations
of Co-Borrowers, jointly and severally, to pay any amounts as and when the same shall become due
and payable in accordance with the terms of this Agreement, including Section 16.1.
Nothing contained in this Section 16.7 shall limit the liability of any Co-Borrower to pay
the Loans made directly or indirectly to that Co-Borrower and accrued interest, fees and expenses
with respect thereto for which such Co-Borrower shall be primarily liable.

- 71 -

 

               (d) The parties hereto acknowledge that the rights of contribution and indemnification
hereunder shall constitute assets of the Co-Borrower to which such contribution and indemnification
is owing.

               (e) The rights of the indemnifying Co-Borrowers against other Co-Borrowers under this
Section 16.7 shall be exercisable upon the full and indefeasible payment of the Obligations
and the termination of the Commitments.

     16.8 Liability Cumulative. The liability of Co-Borrowers under this Section
16 is in addition to and shall be cumulative with all liabilities of each Co-Borrower to the
Administrative Agent and Lenders under this Agreement and the other Loan Documents to which such
Co- Borrower is a party or in respect of any Obligations or obligation of the other Co-Borrower,
without any limitation as to amount, unless the instrument or agreement evidencing or creating such
other liability specifically provides to the contrary.

     16.9 Stay of Acceleration. If acceleration of the time for payment of any amount
payable by the Co-Borrowers under this Agreement is stayed upon the insolvency, bankruptcy or
reorganization of any of the Co-Borrowers, all such amounts otherwise subject to acceleration under
the terms of this Agreement shall nonetheless be payable jointly and severally by the Co-Borrower
hereunder forthwith on demand by the Administrative Agent made at the request of the Required
Lenders.

     16.10 Benefit to Co-Borrowers. All of the Co-Borrowers and their Subsidiaries are
engaged in related businesses and integrated to such an extent that the financial strength and
flexibility of each such Person has a direct impact on the success of each other Person. Each
Co-Borrower and each Subsidiary will derive substantial direct and indirect benefit from the
extension of credit hereunder.

[signature pages follow]

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     The parties hereto have caused this Agreement to be duly executed and delivered by their duly
authorized officers as of the date first set forth above.

	 	 	 
	 

	 	CO-BORROWERS :
	 
	 	 
	 

	 	Ennis, Inc.
	 

	 	Ennis Business Forms of Kansas, Inc.
	 

	 	Connolly Tool and Machine Co.
	 

	 	Admore, Inc.
	 

	 	PFC Products, Inc.
	 

	 	Ennis Acquisitions, Inc.
	 

	 	Northstar Computer Forms, Inc.
	 

	 	General Financial Supply, Inc.
	 

	 	Calibrated Forms Co. Inc.
	 

	 	Crabar/GBF, Inc.
	 

	 	Royal Business Forms, Inc.
	 

	 	Alstyle Apparel LLC
	 

	 	A and G, Inc.
	 

	 	Alstyle Ensenada LLC
	 

	 	Alstyle Hermosilla LLC
	 

	 	Diaco USA, LLC
	 

	 	Tennessee Business Forms Company d/b/a

Avant-Garde
	 

	 	TBF Realty, LLC, a Delaware limited liability

company

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

     Keith S. Walters, President of each
	 	 
	 
	 

	 	 	 	American Forms I, L.P.	 	 
	 

	 	 	 	Adams McClure I, L.P.	 	 
	 

	 	 	 	Texas EBF, L.P.	 	 
	 

	 	 	 	Ennis Sales, L.P.	 	 
	 

	 	 	 	Ennis Management, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Ennis, Inc., the sole general partner of
each	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

     Keith S. Walters, President
	 	 

Signature Page to

Amended and Restated Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	LASALLE BANK NATIONAL	 	 
	 	 	 ASSOCIATION, as Administrative Agent, 
Arranger, as Issuing Lender and as a Lender	 	 
	 	 		 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Signature Page to

Amended and Restated Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	COMPASS BANK, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:	 	 

	 	 
	 

	 	 	 	 

	 	 

Signature Page to

Amended and Restated Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., as
 Syndication Agent and as a Lender	 	 
	 	 		 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:	 	 

	 	 
	 

	 	 	 	 

	 	 

Signature Page to

Amended and Restated Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as Documentation	 	 
	 	 	 Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

Signature Page to

Amended and Restated Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NA, as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

Signature Page to

Amended and Restated Credit Agreement

 

 

ANNEX A

LENDERS AND PRO RATA SHARES

	 	 	 	 	 	 	 	 	 
	 	 	REVOLVING	 	 
	LENDER	 	COMMITMENT	 	PRO RATA SHARE
	LaSalle Bank National Association
	 	$	40,000,000	 	 	 	26.6666666667	%
	Compass Bank
	 	$	20,000,000	 	 	 	13.3333333333	%
	JPMorgan Chase Bank, N.A.
	 	$	30,000,000	 	 	 	20.0000000000	%
	Wachovia Bank, NA
	 	$	20,000,000	 	 	 	13.3333333333	%
	Bank of America, N.A.
	 	$	40,000,000	 	 	 	26.6666666667	%
	TOTALS
	 	$	150,000,000.00	 	 	 	100.000000000	%

 

 

ANNEX B

ADDRESSES FOR NOTICES

ENNIS, INC. and the other CO-BORROWERS

2441 Presidential Parkway

Midlothian, Texas 76065

	 	 	 
	Attention:

	 	Rich Travis — Chief Financial Officer
	Telephone:

	 	972-775-9805
	Facsimile:

	 	800-579-4271

LASALLE BANK NATIONAL ASSOCIATION, as Administrative Agent, Issuing Lender and a Lender

Notices of Borrowing , Conversion, Continuation and Letter of Credit Issuance

135 South LaSalle Street

Chicago, Illinois 60603

Attention: John Mostofi

Telephone: (312) 904-8141

Facsimile: (312) 904-4269

All Other Notices

135 South LaSalle Street

Chicago, Illinois 60603

Attention: John Mostofi

Telephone: (312) 904-8141

Facsimile: (312) 904-4269

JPMorgan Chase Bank, N.A.

1717 Main Street

3rd Floor / TX1-2436

Dallas, Texas 75201

Attention: J. Patrick Brockette

Telephone: (214) 290-2453

Facsimile: (214) 290-2453

Compass Bank

8080 North Central Expressway, Suite 250

Dallas, Texas 75206

Attention: Carol Martin

Telephone: (214) 706-8024

Facsimile: (214) 890-8625

 

 

Bank of America, N.A.

Vice President, Commercial Banking

901 Main Street, 68th Floor

TX1-492-68-05

Dallas, Texas 75202

Attention: Michael F. Murray

Telephone: (214) 209-0323

Facsimile: (214) 209-9560

Wachovia Bank, NA

5080 Spectrum Drive

Suite 500 East

Addison, Texas 75001

Attention: Gideon Oosthuizen

Telephone: (972) 419-3658

Facsimile: (972) 419-3136

 

 

EXHIBIT A-1

FORM OF

REVOLVING NOTE

			
	Executed as of the 31st day of
	 	No.                    
	March, 2006 at Chicago, Illinois.	 	 
	 	 	 
	Amount $                    	 	 

     FOR VALUE RECEIVED, the Undersigned, jointly and severally, promise to pay to the order of
                                                             (hereinafter, together with any holder hereof, called “Lender”), at
the main office of Agent (as defined below) or pursuant to such other instructions or at such other
address as it shall designate), the principal sum of                                                                                  Dollars
($                                        ) plus the aggregate unpaid principal amount of all advances made by Lender to the
Undersigned pursuant to and in accordance with Section 2 of the Credit Agreement (as
hereinafter defined) in excess of such amount, or, if less, the aggregate unpaid principal amount
of all advances made by Lender to the Undersigned pursuant to and in accordance with Section
2 of the Credit Agreement. The Undersigned, jointly and severally, further promise to pay
interest on the outstanding principal amount hereof on the dates and at the rates provided in the
Credit Agreement from the date hereof until payment in full hereof.

     This Note was delivered pursuant to that certain Amended and Restated Credit Agreement of even
date herewith (as amended, amended and restated or otherwise modified from time to time, the
“Credit Agreement”) as it may be amended from time to time, together with all exhibits
thereto, dated as of March 31, 2006 among LaSalle Bank National Association as agent
(“Agent”) for Lender and the other lenders from time to time party thereto and the
Undersigned, and a certain Amended and Restated Security Agreement dated as of March ___, 2006 (as
amended, amended and restated or otherwise modified from time to time, the “Security
Agreement”) by the Undersigned in favor of Agent for the benefit of Lender and the other
Lenders, and other related loan documents of even date herewith (collectively, with the Credit
Agreement and the Security Agreement, and as each may be amended or otherwise modified from time to
time, the “Financing Agreements”). All terms which are capitalized and used herein (which
are not otherwise defined herein) shall have the meaning ascribed to such term in the Credit
Agreement.

     The Undersigned hereby authorize the Agent and Lender to charge any account of the Undersigned
for all sums due hereunder. If payment hereunder becomes due and payable on a Saturday, Sunday or
legal holiday under the laws of the United States or the State of Illinois, the due date thereof
shall be extended to the next succeeding business day, and interest shall be payable thereon at the
rate specified during such extension. Credit shall be given for payments made in the manner and at
the times provided in the Credit Agreement. It is the intent of the parties that the rate of
interest and other charges to the Undersigned under this Note shall be lawful; therefore, if for
any reason the interest or other charges payable hereunder are found by a court of competent
jurisdiction, in a final determination, to exceed the limit which Lender may lawfully charge the
Undersigned, then the obligation to pay interest or other charges shall

A1 - 1

 

automatically be reduced to such limit and, if any amount in excess of such limit shall have
been paid, then such amount shall be refunded to the Undersigned.

     The principal and all accrued interest hereunder may be prepaid by the Undersigned, in part or
in full, at any time.

     The Undersigned waive every defense, counterclaim or setoff which the Undersigned may now have
or hereafter may have to any action by Agent or Lender in enforcing this Note and/or any of the
other Obligations, or in enforcing Agent’s rights in the Collateral and ratifies and confirms
whatever Agent and Lender may do pursuant to the terms hereof and of the Financing Agreements and
with respect to the Collateral and agrees that neither Agent nor Lender shall be liable for any
error in judgment or mistakes of fact or law.

     The Undersigned, any other party liable with respect to the Obligations and any and all
endorsers and accommodation parties, and each one of them, if more than one, waive any and all
presentment, demand, notice of dishonor, protest, notice of intent to accelerate, notice of
acceleration, and all other notices and demands in connection with the enforcement of Agent’s and
Lender’s rights hereunder.

     The loan evidenced hereby has been made and this Note has been delivered at Chicago, Illinois.
THIS NOTE SHALL BE GOVERNED AND CONTROLLED BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS AS TO
INTERPRETATION, ENFORCEMENT, VALIDITY, CONSTRUCTION, EFFECT, AND IN ALL OTHER RESPECTS, INCLUDING
WITHOUT LIMITATION, THE LEGALITY OF THE INTEREST RATE AND OTHER CHARGES, and shall be binding upon
the Undersigned and the Undersigned’s heirs, legal representatives, successors and assigns.
Wherever possible, each provision of this Note shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Note shall be prohibited by
or be invalid under such law, such provision shall be severable, and be ineffective to the extent
of such prohibition or invalidity, without invalidating the remaining provisions of this Note. If
more than one party shall execute this Note, the term “Undersigned” as used herein shall mean all
parties signing this Note, and each one of them, and all such parties, their respective heirs,
executors, administrators, successors and assigns, shall be jointly and severally obligated
hereunder.

     To induce the Lender to make the loan evidenced by this Note, the Undersigned (i) irrevocably
agree that, subject to Agent’s sole and absolute election, all actions arising directly or
indirectly as a result or in consequence of this Note or any other agreement with the Lender, or
the Collateral, shall be instituted and litigated only in courts having situs in the City of
Chicago, Illinois; (ii) hereby consent to the exclusive jurisdiction and venue of any State or
Federal Court located and having its situs in said city; and (iii) waive any objection based on
forum non-conveniens. IN ADDITION, LENDER AND THE UNDERSIGNED HEREBY WAIVE TRIAL BY JURY IN ANY
ACTION OR PROCEEDING WHICH PERTAINS DIRECTLY OR INDIRECTLY TO THIS NOTE, THE OBLIGATIONS, THE
COLLATERAL, ANY ALLEGED TORTIOUS CONDUCT BY THE UNDERSIGNED OR LENDER OR WHICH IN ANY WAY, DIRECTLY
OR INDIRECTLY, ARISES OUT OF OR RELATES TO THE RELATIONSHIP AMONG THE UNDERSIGNED, AGENT AND
LENDER. In addition, the Undersigned agree that all service of process shall be made as provided in
the Credit Agreement.

A1 - 2

 

     As used herein, all provisions shall include the masculine, feminine, neuter, singular and
plural thereof, wherever the context and facts require such construction and in particular the word
“Undersigned” shall be so construed.

[SIGNATURES ON FOLLOWING PAGE]

A1 - 3

 

     IN WITNESS WHEREOF, each of the Undersigned has executed this Note on the date above set
forth.

	 	 	 
	 

	 	Ennis, Inc.
	 

	 	Ennis Business Forms of Kansas, Inc.
	 

	 	Connolly Tool and Machine Co.
	 

	 	Admore, Inc.
	 

	 	PFC Products, Inc.
	 

	 	Ennis Acquisitions, Inc.
	 

	 	Northstar Computer Forms, Inc.
	 

	 	General Financial Supply, Inc.
	 

	 	Calibrated Forms Co. Inc.
	 

	 	Crabar/GBF, Inc.
	 

	 	Royal Business Forms, Inc.
	 

	 	Alstyle Apparel LLC
	 

	 	A and G, Inc.
	 

	 	Alstyle Ensenada LLC
	 

	 	Alstyle Hermosilla LLC
	 

	 	Diaco USA, LLC
	 

	 	Tennessee Business Forms Company d/b/a Avant-Garde
	 

	 	TBF Realty, LLC, a Delaware limited liability company

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Keith S. Walters, President of each
	 	 

	 	 	 
	 

	 	American Forms I, L.P.
	 

	 	Adams McClure I, L.P.
	 

	 	Texas EBF, L.P.
	 

	 	Ennis Sales, L.P.
	 

	 	Ennis Management, L.P.
	 
	 	 
	 

	 	By: Ennis, Inc., the sole general partner of each

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Keith S. Walters, President
	 	 

FOR BANK USE ONLY

Officer’s Initials:                     

Approval:                     

A1 - 4

 

EXHIBIT A-2

FORM OF

SWING LINE NOTE

			
	Executed as of the 31st day of
	 	No.                    
	March, 2006 at Chicago, Illinois.	 	 
	 	 	 
	Amount $                    	 	 

     FOR VALUE RECEIVED, the Undersigned, jointly and severally, hereby unconditionally promise to
pay to the order of                                                                                  (“Lender”), at the main office of Agent (as
defined below) or at such other place as the Agent may from time to time designate in writing, in
lawful money of the United States of America and in immediately available funds, the principal sum
of                                                              ($                                        ), or, if less, the aggregate unpaid principal
balance of the Swing Line Loans made to Borrower by Lender pursuant to the Credit Agreement
described below, at such times as are specified therein.

     This Note was delivered pursuant to that certain Amended and Restated Credit Agreement of even
date herewith (as amended, amended and restated or otherwise modified from time to time, the
“Credit Agreement”) as it may be amended from time to time, together with all exhibits
thereto, dated as of March 31, 2006 among LaSalle Bank National Association as agent
(“Agent”) for itself and the other lenders from time to time party thereto and the
Undersigned, and a certain Amended and Restated Security Agreement dated as of March ___, 2006 (as
amended, amended and restated or otherwise modified from time to time, the “Security
Agreement”) by the Undersigned in favor of Agent for the benefit of Lender and the other
Lenders, and other related loan documents of even date herewith (collectively, with the Credit
Agreement and the Security Agreement, and as each may be amended or otherwise modified from time to
time, the “Financing Agreements”). All terms which are capitalized and used herein (which
are not otherwise defined herein) shall have the meaning ascribed to such term in the Credit
Agreement.

     The Undersigned, jointly and severally, further promise to pay interest on the outstanding
unpaid principal amount hereof from the date hereof until payment in full at the rate from time to
time applicable to the Swing Line Loans as determined in accordance with the Credit Agreement;
provided, however, that upon the occurrence and during the continuance of an Event of Default, the
Undersigned shall pay interest on the outstanding principal balance of this Note at the rate of
interest applicable following the occurrence of an Event of Default as determined in accordance
with the Credit Agreement.

     THE OUTSTANDING PRINCIPAL BALANCE OF THE UNDERSIGNEDS’ OBLIGATIONS TO LENDER UNDER THIS NOTE
SHALL BE PAYABLE UPON DEMAND. Prior to demand, principal hereunder shall be payable pursuant to
the terms of the Credit Agreement.

A2 - 1

 

     The Undersigned hereby authorize the Agent and Lender to charge any account of the Undersigned
for all sums due hereunder. If payment hereunder becomes due and payable on a Saturday, Sunday or
legal holiday under the laws of the United States or the State of Illinois, the due date thereof
shall be extended to the next succeeding business day, and interest shall be payable thereon at the
rate specified during such extension. Credit shall be given for payments made in the manner and at
the times provided in the Credit Agreement. It is the intent of the parties that the rate of
interest and other charges to the Undersigned under this Note shall be lawful; therefore, if for
any reason the interest or other charges payable hereunder are found by a court of competent
jurisdiction, in a final determination, to exceed the limit which Lender may lawfully charge the
Undersigned, then the obligation to pay interest or other charges shall automatically be reduced to
such limit and, if any amount in excess of such limit shall have been paid, then such amount shall
be refunded to the Undersigned.

     The principal and all accrued interest hereunder may be prepaid by the Undersigned, in part or
in full, at any time.

     The Undersigned waive every defense, counterclaim or setoff which the Undersigned may now have
or hereafter may have to any action by Agent or Lender in enforcing this Note and/or any of the
other Obligations, or in enforcing Agent’s rights in the Collateral and ratifies and confirms
whatever Agent and Lender may do pursuant to the terms hereof and of the Financing Agreements and
with respect to the Collateral and agrees that neither Agent nor Lender shall be liable for any
error in judgment or mistakes of fact or law.

     The Undersigned, any other party liable with respect to the Obligations and any and all
endorsers and accommodation parties, and each one of them, if more than one, waive any and all
presentment, demand, notice of dishonor, protest, notice of intent to accelerate, notice of
acceleration, and all other notices and demands in connection with the enforcement of Agent’s and
Lender’s rights hereunder.

     The loan evidenced hereby has been made and this Note has been delivered at Chicago, Illinois.
THIS NOTE SHALL BE GOVERNED AND CONTROLLED BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS AS TO
INTERPRETATION, ENFORCEMENT, VALIDITY, CONSTRUCTION, EFFECT, AND IN ALL OTHER RESPECTS, INCLUDING
WITHOUT LIMITATION, THE LEGALITY OF THE INTEREST RATE AND OTHER CHARGES, and shall be binding upon
the Undersigned and the Undersigned’s heirs, legal representatives, successors and assigns.
Wherever possible, each provision of this Note shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Note shall be prohibited by
or be invalid under such law, such provision shall be severable, and be ineffective to the extent
of such prohibition or invalidity, without invalidating the remaining provisions of this Note. If
more than one party shall execute this Note, the term “Undersigned” as used herein shall mean all
parties signing this Note, and each one of them, and all such parties, their respective heirs,
executors, administrators, successors and assigns, shall be jointly and severally obligated
hereunder.

     To induce the Lender to make the loan evidenced by this Note, the Undersigned (i) irrevocably
agree that, subject to Agent’s sole and absolute election, all actions arising directly or
indirectly as a result or in consequence of this Note or any other agreement with the Lender, or

A2 - 2

 

the Collateral, shall be instituted and litigated only in courts having situs in the City of
Chicago, Illinois; (ii) hereby consent to the exclusive jurisdiction and venue of any State or
Federal Court located and having its situs in said city; and (iii) waive any objection based on
forum non-conveniens. IN ADDITION, LENDER AND THE UNDERSIGNED HEREBY WAIVE TRIAL BY JURY IN ANY
ACTION OR PROCEEDING WHICH PERTAINS DIRECTLY OR INDIRECTLY TO THIS NOTE, THE OBLIGATIONS, THE
COLLATERAL, ANY ALLEGED TORTIOUS CONDUCT BY THE UNDERSIGNED OR LENDER OR WHICH IN ANY WAY, DIRECTLY
OR INDIRECTLY, ARISES OUT OF OR RELATES TO THE RELATIONSHIP AMONG THE UNDERSIGNED, AGENT AND
LENDER. In addition, the Undersigned agree that all service of process shall be made as provided in
the Credit Agreement.

     As used herein, all provisions shall include the masculine, feminine, neuter, singular and
plural thereof, wherever the context and facts require such construction and in particular the word
“Undersigned” shall be so construed.

[SIGNATURES ON FOLLOWING PAGE]

A2 - 3

 

     IN WITNESS WHEREOF, each of the Undersigned has executed this Note on the date above set
forth.

	 	 	 
	 

	 	Ennis, Inc.
	 

	 	Ennis Business Forms of Kansas, Inc.
	 

	 	Connolly Tool and Machine Co.
	 

	 	Admore, Inc.
	 

	 	PFC Products, Inc.
	 

	 	Ennis Acquisitions, Inc.
	 

	 	Northstar Computer Forms, Inc.
	 

	 	General Financial Supply, Inc.
	 

	 	Calibrated Forms Co. Inc.
	 

	 	Crabar/GBF, Inc.
	 

	 	Royal Business Forms, Inc.
	 

	 	Alstyle Apparel LLC
	 

	 	A and G, Inc.
	 

	 	Alstyle Ensenada LLC
	 

	 	Alstyle Hermosilla LLC
	 

	 	Diaco USA, LLC
	 

	 	Tennessee Business Forms Company d/b/a

Avant-Garde
	 

	 	TBF Realty, LLC, a Delaware limited liability

company

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Keith S. Walters, President of each
	 	 

	 	 	 
	 

	 	American Forms I, L.P.
	 

	 	Adams McClure I, L.P.
	 

	 	Texas EBF, L.P.
	 

	 	Ennis Sales, L.P.
	 

	 	Ennis Management, L.P.
	 
	 	 
	 

	 	By: Ennis, Inc., the sole general partner of each

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Keith S. Walters, President
	 	 

FOR BANK USE ONLY

Officer’s Initials:                     

Approval:                     

A2 - 4

 

EXHIBIT B

FORM
OF COMPLIANCE CERTIFICATE1

To:           LaSalle Bank National Association, as Administrative Agent

     Please refer to the Amended and Restated Credit Agreement dated as of March 31, 2006 (as
amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”) among Ennis, Inc. (the “Company”), each of the other entities signatory
thereto under the heading “Co-Borrowers”, various financial institutions and LaSalle Bank National
Association, as Administrative Agent. Terms used but not otherwise defined herein are used herein
as defined in the Credit Agreement.

	I.	 	     Reports. Enclosed herewith is a copy of the [annual audited/quarterly] report of the
Company as at                     , ___(the “Computation Date”), which report fairly
presents in all material respects the financial condition and results of operations [(subject
to the absence of footnotes and to normal year-end adjustments)] of the Company as of the
Computation Date and has been prepared in accordance with GAAP consistently applied.
	 
	II.	 	     Financial Tests. The Company hereby certifies and warrants to you that the following
is a true and correct computation as at the Computation Date of the following ratios and/or
financial restrictions contained in the Credit Agreement:
	 
	A.	 	Section 11.14.1 — Minimum Fixed Charge Coverage Ratio

	 	 	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	EBITDA
	 	$                     
	 
	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	Income taxes paid
	 	$                     
	 
	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	Capital Expenditures
	 	$                     
	 
	 	 	 	 	 	 	 	 
	 

	 	 	4.	 	 	Sum of (2) and (3)
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	5.	 	 	Remainder of (1) minus (4)
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	6.	 	 	Interest Expense
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	7.	 	 	Required payments of
principal of Funded Debt
(excluding Revolving Loans)
	 	$                    

B - 1

 

	 	 	 	 	 	 	 	 	 
	 

	 	 	8.	 	 	Distributions to holders
of Parent Capital Securities (other
than distributions of non-redeemable
common equity securities)
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	9.	 	 	Sum of (6), (7) and (8)
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	10.	 	 	Ratio of (5) to (9)
	 	___to 1
	 
	 	 	 	 	 	 	 	 
	 

	 	 	11.	 	 	Minimum Required
	 	___to 1
	 
	 	 	 	 	 	 	 	 

	B.	 	Section 11.14.2 — Maximum Total Funded Debt to EBITDA Ratio

	 	 	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	Total Funded Debt
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	EBITDA
(from Item A(3) above)
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	Ratio of (1) to (2)
	 	___to 1
	 
	 	 	 	 	 	 	 	 
	 

	 	 	4.	 	 	Maximum allowed
	 	___to 1
	 
	 	 	 	 	 	 	 	 

	C.	 	Section 11.14.3 — Minimum Net Worth

	 	 	 	 	 	 	 	 	 
	 

	 	 	1.	 	 	Consolidated Net Worth
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	Baseline value
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	Consolidated Net Income
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	4.	 	 	25% of C.3.
	 	$                    
	 
	 	 	 	 	 	 	 	 
	 

	 	 	5.	 	 	Minimum Net Worth
(sum of C.2 and C.4)
	 	$                    
	 
	 	 	 	 	 	 	 	 

     The Company further certifies to you that no Event of Default or Unmatured Event of Default
has occurred and is continuing.

     The Company has caused this Certificate to be executed and delivered by its duly authorized
officer on ___, ___.

	 	 	 	 	 	 	 
	 	 	ENNIS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

B - 2

 

EXHIBIT C

FORM OF

ASSIGNMENT AGREEMENT

Date:                    

	 	 	 
	To:

	 	[Company Lower Case]
	 
	 	 
	 

	 	and
	 
	 	 
	 

	 	LaSalle Bank National Association, as Administrative Agent
	 
	 	 
	Re:

	 	Assignment under the Amended and Restated Credit Agreement referred to below

Gentlemen and Ladies:

     Please refer to Section 15.6.1 of the Amended and Restated Credit Agreement dated as of March
31, 2006 (as amended or otherwise modified from time to time, the “Credit Agreement”) among
Ennis, Inc. (the “Company”), each of the other parties signatory thereto under the heading
“Co-Borrower”, various financial institutions and LaSalle Bank National Association, as
administrative agent (in such capacity, the “Administrative Agent”). Unless otherwise
defined herein or the context otherwise requires, terms used herein have the meanings provided in
the Credit Agreement.

                                             (the “Assignor”) hereby sells and assigns, without recourse, to                      (the
“Assignee”), and the Assignee hereby purchases and assumes from the Assignor, that interest
in and to the Assignor’s rights and obligations under the Credit Agreement as of the date hereof
equal to  % of all of the Loans, of the participation interests in the Letters of Credit
and of the Commitments, such sale, purchase, assignment and assumption to be effective as of
                    , ___, or such later date on which the Company and the Administrative Agent shall have
consented hereto (the “Effective Date”). After giving effect to such sale, purchase,
assignment and assumption, the Assignee’s and the Assignor’s respective Percentages for purposes of
the Credit Agreement will be as set forth opposite their names on the signature pages hereof.

     The Assignor hereby instructs the Administrative Agent to make all payments from and after the
Effective Date in respect of the interest assigned hereby directly to the Assignee. The Assignor
and the Assignee agree that all interest and fees accrued up to, but not including, the Effective
Date are the property of the Assignor, and not the Assignee. The Assignee agrees that, upon
receipt of any such interest or fees, the Assignee will promptly remit the same to the Assignor.

     The Assignor represents and warrants that it is the legal and beneficial owner of the interest
being assigned by it hereunder and that such interest is free and clear of any adverse claim.

C - 1

 

     The Assignee represents and warrants to the Company and the Administrative Agent that, as of
the date hereof, the Company will not be obligated to pay any greater amount under Section 7.6 or 8
of the Credit Agreement than the Company is obligated to pay to the Assignor under such Section.
[The Assignee has delivered, or is delivering concurrently herewith, to the Company and the
Administrative Agent the forms required by Section 7.6 of the Credit Agreement.] [INSERT IF
ASSIGNEE IS ORGANIZED UNDER THE LAWS OF A JURISDICTION OTHER THAN THE UNITED STATES OF AMERICA OR A
STATE THEREOF.] The Company shall pay the fee payable to the Administrative Agent pursuant to
Section 15.6.1.

     The Assignee hereby confirms that it has received a copy of the Credit Agreement. Except as
otherwise provided in the Credit Agreement, effective as of the Effective Date:

	 	(a)	 	the Assignee (i) shall be deemed automatically to have become a party to the
Credit Agreement and to have all the rights and obligations of a “Lender” under the
Credit Agreement as if it were an original signatory thereto to the extent specified in
the second paragraph hereof; and (ii) agrees to be bound by the terms and conditions
set forth in the Credit Agreement as if it were an original signatory thereto; and
	 
	 	(b)	 	the Assignor shall be released from its obligations under the Credit Agreement
to the extent specified in the second paragraph hereof.

     The Assignee hereby advises each of you of the following administrative details with respect
to the assigned Loans and Commitment:

	 	(A)	 	Institution Name:
	 
	 	 	 	Address:
	 
	 	 	 	Attention:
	 
	 	 	 	Telephone:
	 
	 	 	 	Facsimile:
	 
	 	(B)	 	Payment Instructions:

     This Assignment shall be governed by and construed in accordance with the laws of the State of
Illinois

     Please evidence your receipt hereof and your consent to the sale, assignment, purchase and
assumption set forth herein by signing and returning counterparts hereof to the Assignor and the
Assignee.

C - 2

 

	 	 	 	 	 	 	 
	Percentage = -%	 	[ASSIGNEE]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Adjusted Percentage = -%	 	[ASSIGNOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 
	ACKNOWLEDGED AND CONSENTED TO
	this ____ day of                     , ____
	 
	 	 	 	 
	LASALLE BANK NATIONAL ASSOCIATION, as Administrative Agent
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	ACKNOWLEDGED AND CONSENTED TO
	this ____ day of                     , ____
	 
	 	 	 	 
	ENNIS, INC.
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

C - 3

 

EXHIBIT D

FORM OF NOTICE OF BORROWING

To:           LaSalle Bank National Association, as Administrative Agent

     Please refer to the Amended and Restated Credit Agreement dated as of March 31, 2006 (as
amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”) among Ennis, Inc. (the “Company”), each of the other persons signatory
thereto under the heading “Co-Borrower”, various financial institutions and LaSalle Bank National
Association, as Administrative Agent. Terms used but not otherwise defined herein are used herein
as defined in the Credit Agreement.

     The undersigned hereby gives irrevocable notice, pursuant to Section 2.2.2 of the
Credit Agreement, of a request hereby for a borrowing as follows:

     (i) The requested borrowing date for the proposed borrowing (which is a Business Day) is
                                        , ___.

     (ii) The aggregate amount of the proposed borrowing is $___.

     (iii) The type of Revolving Loans comprising the proposed borrowing are [Base Rate] [LIBOR]
Loans.

     (iv) The duration of the Interest Period for each LIBOR Loan made as part of the proposed
borrowing, if applicable, is                      months (which shall be 1, 2, 3 or 6 months).

     The undersigned hereby certifies that on the date hereof and on the date of borrowing set
forth above, and immediately after giving effect to the borrowing requested hereby: (i) there
exists and there shall exist no Unmatured Event of Default or Event of Default under the Credit
Agreement; and (ii) each of the representations and warranties contained in the Credit Agreement
and the other Loan Documents is true and correct as of the date hereof, except to the extent that
such representation or warranty expressly relates to another date and except for changes therein
expressly permitted or expressly contemplated by the Credit Agreement.

     The Company has caused this Notice of Borrowing to be executed and delivered by its officer
thereunto duly authorized on                     , ___.

	 	 	 	 	 	 	 
	 	 	ENNIS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

D - 1

 

EXHIBIT E

FORM OF NOTICE OF CONVERSION/CONTINUATION

To:           LaSalle Bank National Association, as Administrative Agent

     Please refer to the Amended and Restated Credit Agreement dated as of March 31, 2006 (as
amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”)
among Ennis, Inc. (the “Company”), the other parties signatory thereto under the heading
“Co-Borrowers”, various financial institutions and LaSalle Bank National Association, as
Administrative Agent. Terms used but not otherwise defined herein are used herein as defined in
the Credit Agreement.

     The undersigned hereby gives irrevocable notice, pursuant to Section 2.2.3 of the
Credit Agreement, of its request to:

     (a) on [ date ] convert $[                    ]of the aggregate outstanding principal amount of the
[                    ] Loan, bearing interest at the [                    ] Rate, into a(n) [                    ] Loan [and, in the
case of a LIBOR Loan, having an Interest Period of [                    ] month(s)];

     [(b) on [ date ] continue $[                    ]of the aggregate outstanding principal amount of the
[                    ] Loan, bearing interest at the LIBOR Rate, as a LIBOR Loan having an Interest Period of
[___] month(s)].

     The undersigned hereby represents and warrants that all of the conditions contained in
Section 12.2 of the Credit Agreement have been satisfied on and as of the date hereof, and
will continue to be satisfied on and as of the date of the conversion/continuation requested
hereby, before and after giving effect thereto.

     The Company has caused this Notice of Conversion/Continuation to be executed and delivered by
its officer thereunto duly authorized on                     , ___.

	 	 	 	 	 	 	 
	 	 	ENNIS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

E - 1exv10w19

 

EXHIBIT 10.19

Execution Copy

 

AMENDED AND RESTATED SECURITY AGREEMENT

dated as of March 31, 2006

among

ENNIS, INC.

and

THE OTHER PARTIES HERETO,

as Grantors,

and

LASALLE BANK NATIONAL ASSOCIATION,

as the Administrative Agent

 

 

 

SECURITY AGREEMENT

     THIS AMENDED AND RESTATED SECURITY AGREEMENT dated as of March 31, 2006 (this
“Agreement”) is entered into among ENNIS, INC. (the “Parent”) and each other Person
signatory hereto as a Grantor (together with any other Person that becomes a party hereto as
provided herein, and including the Parent, the “Grantors”) in favor of LASALLE BANK
NATIONAL ASSOCIATION, as the Administrative Agent for all the Lenders party to the Credit Agreement
(as hereafter defined).

RECITALS:

     A. The Lenders have severally agreed to extend credit to the Parent and the other Grantors
pursuant to the Credit Agreement. The Parent is affiliated with each other Grantor. The Parent
and the other Grantors are engaged in interrelated businesses, and each Grantor will derive
substantial direct and indirect benefit from extensions of credit under the Credit Agreement.

     B. The Grantor and Administrative Agent entered into a Security Agreement dated as of November
19, 2004 (the “Original Agreement”).

     C. The Grantor and Lender desire to amend and restate, in its entirety, the Original
Agreement, and it is a condition precedent to each Lender’s obligation to extend credit under the
Credit Agreement that the Grantors shall have executed and delivered this Agreement to the
Administrative Agent for the ratable benefit of all the Lenders.

AGREEMENT:

          Now Therefore in consideration of the premises and to induce the Administrative Agent and the
Lenders to enter into the Credit Agreement and to induce the Lenders to extend credit thereunder,
each Grantor hereby agrees with the Administrative Agent, for the ratable benefit of the Lenders,
as follows:

SECTION 1 DEFINITIONS.

          1.1 Unless otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement, and the following terms are used
herein as defined in the UCC: Accounts, Certificated Security, Commercial Tort Claims, Deposit
Accounts, Documents, Electronic Chattel Paper, Equipment, Farm Products, Goods, Health Care
Insurance Receivables, Instruments, Inventory, Leases, Letter-of-Credit Rights, Money, Payment
Intangibles, Supporting Obligations, and Tangible Chattel Paper.

          1.2 When used herein the following terms shall have the following meanings:

     Assigned Agreements means (i) the Agreement and Plan of Merger, dated as of June 25,
2004, by and among the Parent, its wholly-owned subsidiary, Midlothian Holdings LLC, a Delaware
limited liability company (“Merger Sub”) and Centrum Acquisition, Inc., a Delaware
corporation (the “Target”), as amended by the First Amendment to Agreement and Plan of

 

 

Merger, dated as of August 23, 2004, among the Parent, Merger Sub and the Target, (ii) the
Indemnity Agreement dated as of June 25, 2004 by and among Laurence Ashkin, Roger Brown, John
McLinden, Arthur Slaven, Merger Sub and the Parent, (iii) the First Amendment Agreement dated as of
June 25, 2004 by and among Amin Amdani, an individual and resident of the State of Nevada, Ayes
Amin Amdani, an individual and wife of Amin Amdani, Rauf Gajiani, and individual and resident of
the State of Nevada, the Target, the Parent and the Merger Sub; (iv) Stock Pledge and Escrow
Agreement, dated as of the date hereof, by and among the Parent, Midlothian, Laurence Ashkin, Roger
Brown, John McLinden and Arthur Slaven and JPMorgan Chase Bank, N.A., as escrow agent, and (v)
Escrow Agreement, dated as of the date hereof, by and among Parent, Merger Sub, the Target, Amin
Amdani, Ayesha Amin Amndani and Rauf Gajiani and JPMorgan Chase Bank, N.A., as escrow agent.

     Agreement has the meaning set forth in the preamble hereto.

     Chattel Paper means all “chattel paper” as such term is defined in Section
9-102(a)(11) of the UCC and, in any event, including with respect to any Grantor, all Electronic
Chattel Paper and Tangible Chattel Paper.

     Collateral means (a) all of the personal property now owned or at any time hereafter
acquired by any Grantor or in which any Grantor now has or at any time in the future may acquire
any right, title or interest, including all of each Grantor’s Accounts, Chattel Paper, Commercial
Tort Claims, Deposit Accounts, Documents, Equipment, Fixtures, General Intangibles, Health Care
Insurance Receivables, Farm Products, Goods, Instruments, Intellectual Property, Inventory,
Investment Property, Leases, Letter-of-Credit Rights, Money, Supporting Obligations and Identified
Claims and Pledged Equity, (b) all books and records pertaining to any of the foregoing, (c) all
Proceeds and products of any of the foregoing, and (d) all collateral security and guaranties given
by any Person with respect to any of the foregoing. Where the context requires, terms relating to
the Collateral or any part thereof, when used in relation to a Grantor, shall refer to such
Grantor’s Collateral or the relevant part thereof.

     Contract Rights means all of the Grantors’ rights and remedies with respect to the
Assigned Agreements.

     Copyrights means all copyrights arising under the laws of the United States, any other
country or any political subdivision thereof, whether registered or unregistered and whether
published or unpublished, including those listed on Schedule 5, all registrations and
recordings thereof, and all applications in connection therewith, including all registrations,
recordings and applications in the United States Copyright Office, and the right to obtain all
renewals of any of the foregoing.

     Copyright Licenses means all written agreements naming any Grantor as licensor or
licensee, including those listed on Schedule 5, granting any right under any Copyright,
including the grant of rights to manufacture, distribute, exploit and sell materials derived from
any Copyright.

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     Credit Agreement means the Amended and Restated Credit Agreement of even date herewith
among the Parent, the other Grantors, the Lenders and the Administrative Agent, as amended,
supplemented, restated or otherwise modified from time to time.

     Excluded Property means (a) any permit, lease, license, contract or other agreement
held by any Grantor or any contract or agreement to which any Grantor is a party (including any
rights thereunder) that validly prohibits the creation by such Grantor of a security interest
therein or under the terms of which the creation of a security interest therein shall constitute or
result (i) in the abandonment, invalidation or unenforceability of any right, title or interest of
any Grantor therein or (ii) in a breach or termination pursuant to the terms of, or a default
under, any such lease, license, contract, property rights or agreement (other than any such permit,
lease, license, contract or other agreement, the terms of which prohibiting creation of a security
interest or having the result described in clauses (i) and (ii) above would be rendered ineffective
pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or
provisions) of any relevant jurisdiction or any other applicable law (including the Bankruptcy
Code) or principles of equity); provided, however, that any such Grantor shall
make its best efforts to receive the consent of such contracting party for the assignment of any
material permit, lease, license, contract or other agreement to the Administrative Agent, upon the
request of the Administrative Agent; (b) any permit, lease, license, contract or other agreement
held by any Grantor to the extent that any requirement of law applicable thereto prohibits the
creation of a security interest therein (other than any such permit, lease, license, contract or
other agreement, to the extent that any requirement of law applicable thereto prohibiting the
creation of a security interest therein would be rendered ineffective pursuant to Sections 9-406,
9-407, 9-408 or 9-409 of the UCC (or any successor provision or provisions) of any relevant
jurisdiction or any other applicable law (including the Bankruptcy Code) or principles of equity);
(c) Equipment owned by any Grantor on the date hereof or hereafter acquired that is subject to a
Lien securing a purchase money obligation or obligation under a Capital Lease permitted to be
incurred pursuant to the provisions of the Credit Agreement if the contract or other agreement in
which such Lien is granted (or the documentation providing for such purchase money obligation or
obligation under a Capital Lease) validly prohibits the creation of any other Lien on such
Equipment; and (d) equity interests in foreign Subsidiaries; provided, however,
that in each case described in clauses (a), (b) and (c) of this definition, such property shall
constitute “Excluded Property” only to the extent and for so long as such permit, lease, license,
contract or other agreement or Requirement of Law applicable thereto validly prohibits the creation
of a Lien on such property in favor of either Administrative Agent and, upon the termination of
such prohibition (howsoever occurring), such property shall cease to constitute “Excluded
Property.”

     Fixtures means all of the following, whether now owned or hereafter acquired by a
Grantor: plant fixtures; business fixtures; other fixtures and storage facilities, wherever
located; and all additions and accessories thereto and replacements therefor.

     General Intangibles means all “general intangibles” as such term is defined in Section
9-102(a)(42) of the UCC and, in any event, including with respect to any Grantor, all Payment
Intangibles, all contracts and Contract Rights (including all Assigned Agreements and Target
Undertakings), agreements, instruments and indentures in any form, and portions thereof, to which
such Grantor is a party or under which such Grantor has any right, title or interest or to which
such Grantor or any property of such Grantor is subject, as the same from time to time

-3-

 

may be amended, supplemented or otherwise modified, including, without limitation, (a) all
rights of such Grantor to receive moneys due and to become due to it thereunder or in connection
therewith, (b) all rights of such Grantor to damages arising thereunder and (c) all rights of such
Grantor to perform and to exercise all remedies thereunder; provided, that the foregoing
limitation shall not affect, limit, restrict or impair the grant by such Grantor of a security
interest pursuant to this Agreement in any Receivable or any money or other amounts due or to
become due under any such Payment Intangible, contract, agreement, instrument or indenture.

     Grantor has the meaning set forth in the preamble hereto.

     Identified Claims means the Commercial Tort Claims described on Schedule 7 as
such schedule shall be supplemented from time to time.

     Intellectual Property means the collective reference to all rights, priorities and
privileges relating to intellectual property, whether arising under United States, multinational or
foreign laws or otherwise, including the Copyrights, the Copyright Licenses, the Patents, the
Patent Licenses, the Trademarks and the Trademark Licenses, and all rights to sue at law or in
equity for any infringement or other impairment thereof, including the right to receive all
proceeds and damages therefrom.

     Intercompany Note means any promissory note evidencing loans made by any Grantor to
any other Grantor.

     Investment Property means the collective reference to (a) all “investment property” as
such term is defined in Section 9-102(a)(49) of the UCC (other than the equity interest of any
foreign Subsidiary excluded from the definition of Pledged Equity), (b) all “financial assets” as
such term is defined in Section 8-102(a)(9) of the UCC, and (c) whether or not constituting
“investment property” as so defined, all Pledged Notes and all Pledged Equity.

     Issuers means the collective reference to each issuer of any Investment Property.

     Original Agreement has the meaning set forth in the recitals hereto.

     Paid in Full means (a) the payment in full in cash and performance of all Secured
Obligations, (b) the termination of all Commitments and (c) either (i) the cancellation and return
to the Administrative Agent of all Letters of Credit or (ii) the cash collateralization of all
Letters of Credit in accordance with the Credit Agreement.

     Parent has the meaning set forth in the preamble hereto.

     Patents means (a) all letters patent of the United States, any other country or any
political subdivision thereof, all reissues and extensions thereof and all goodwill associated
therewith, including any of the foregoing referred to in Schedule 5, (b) all applications
for letters patent of the United States or any other country and all divisions, continuations and
continuations-in-part thereof, including any of the foregoing referred to in Schedule 5,
and (c) all rights to obtain any reissues or extensions of the foregoing.

-4-

 

     Patent Licenses means all agreements, whether written or oral, providing for the grant
by or to any Grantor of any right to manufacture, use or sell any invention covered in whole or in
part by a Patent, including any of the foregoing referred to in Schedule 5.

     Payments has the meaning set forth in Section 2.2 hereto.

     Pledged Equity means the equity interests listed on Schedule 1, together with
any other equity interests, certificates, options or rights of any nature whatsoever in respect of
the equity interests of any Person that may be issued or granted to, or held by, any Grantor while
this Agreement is in effect; provided that in no event shall any equity interests of any
foreign Subsidiary be included in the definition of Pledged Equity.

     Pledged Notes means all promissory notes listed on Schedule 1, all
Intercompany Notes at any time issued to any Grantor and all other promissory notes issued to or
held by any Grantor (other than promissory notes issued in connection with extensions of trade
credit by any Grantor in the ordinary course of business).

     Pro Rata Share has the meaning ascribed to such term in sub-part (c) of the definition
of “Pro Rata Share” set forth in the Credit Agreement.

     Proceeds means all “proceeds” as such term is defined in Section 9-102(a)(64) of the
UCC and, in any event, shall include all dividends or other income from the Investment Property,
collections thereon or distributions or payments with respect thereto.

     Receivable means any right to payment for goods sold or leased or for services
rendered, whether or not such right is evidenced by an Instrument or Chattel Paper and whether or
not it has been earned by performance (including any Accounts).

     Secured Obligations means, individually, with respect to each Grantor, all Obligations
of such Grantor, and collectively, with respect to all Grantors, all Obligations of all Grantors.

     Securities Act means the Securities Act of 1933, as amended.

     Target Undertakings means, collectively, all representations, warranties, covenants
and agreements in favor of any Grantor, and all indemnifications for the benefit of any Grantor
relating thereto, pursuant to the Assigned Agreements.

     Trademarks means (a) all trademarks, trade names, corporate names, the company names,
business names, fictitious business names, trade styles, service marks, logos and other source or
business identifiers, and all goodwill associated therewith, now existing or hereafter adopted or
acquired, all registrations and recordings thereof, and all applications in connection therewith,
whether in the United States Patent and Trademark Office or in any similar office or agency of the
United States, any State thereof or any other country or any political subdivision thereof, or
otherwise, and all common-law rights related thereto, including any of the foregoing referred to in
Schedule 5, and (b) the right to obtain all renewals thereof.

-5-

 

     Trademark Licenses means, collectively, each agreement, whether written or oral,
providing for the grant by or to any Grantor of any right to use any Trademark, including any of
the foregoing referred to in Schedule 5.

     UCC means the Uniform Commercial Code as in effect on the date hereof and from time to
time in the State of Illinois, provided that if by reason of mandatory provisions of law,
the perfection or the effect of perfection or non-perfection of the security interests in any
Collateral or the availability of any remedy hereunder is governed by the Uniform Commercial Code
as in effect on or after the date hereof in any other jurisdiction, “UCC” means the Uniform
Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof
relating to such perfection or effect of perfection or non-perfection or availability of such
remedy.

SECTION 2 GRANT OF SECURITY INTEREST.

          2.1 Grant. Each Grantor hereby assigns and transfers to the Administrative Agent, and
hereby grants to the Administrative Agent, for the ratable benefit of the Lenders and (to the
extent provided herein) their Affiliates, a continuing security interest in all of its Collateral,
as collateral security for the prompt and complete payment and performance when due (whether at the
stated maturity, by acceleration or otherwise) of such Grantor’s Obligations.

          Notwithstanding anything to the contrary contained in this Section 2, the security interest
created by this Agreement shall not extend to any Excluded Property. The Grantors shall from time
to time at the request of the Administrative Agent give written notice to the Administrative Agent
identifying in reasonable detail the Excluded Property (and stating in such notice that such
property constitutes “Excluded Property”) and shall provide to the Administrative Agent such other
information regarding the Excluded Property as the Administrative Agent may reasonably request and
(ii) from and after the Closing Date, no Grantor shall permit to become effective in any document
creating, governing or providing for any permit, lease or license, a provision that would prohibit
the creation of a Lien on such permit, lease or license in favor of the Administrative Agent unless
such Grantor believes, in its reasonable judgment, that such prohibition is usual and customary in
transactions of such type and is otherwise permitted by the Credit Agreement.

          2.2 Collateral Assignment of Rights under the Assigned Agreements. Each Grantor
hereby irrevocably authorizes and empowers the Administrative Agent or its agents, in their sole
discretion, to assert, either directly or on behalf of any Grantor, at any time that an Event of
Default is in existence, any claims any Grantor may from time to time have against a party with
which such Grantor has a contractual relationship pursuant to an Assigned Agreement (a
“Contracting Party”) with respect to any and all of the Contract Rights or with respect to
any and all payments or other obligations due from such Contracting Party or any of its affiliates
to the Parent under or pursuant to the Assigned Agreement (“Payments”), and to receive and
collect any damages, awards and other monies resulting therefrom and to apply the same on account
of the Secured Obligations. After the occurrence of any Event of Default, the Administrative Agent
may provide notice to any Contracting Party that all Payments shall be made to or at the direction
of the Administrative Agent for so long as such Event of Default shall be continuing; provided,
however, that upon a termination or waiver of such Event of Default the

-6-

 

Administrative Agent shall promptly notify the Contracting Party that all Payments shall, from
that point forward, be made to the Grantor. Each Grantor hereby irrevocably makes, constitutes and
appoints the Administrative Agent (and all officers, employees, or agents designated by the
Administrative Agent) as such Grantor’s true and lawful attorney (and agent-in-fact) for the
purpose of enabling the Administrative Agent or its agents to assert and collect such claims and to
apply such monies in the manner set forth hereinabove.

SECTION 3 REPRESENTATIONS AND WARRANTIES.

          To induce the Administrative Agent and the Lenders to enter into the Credit Agreement and to
induce the Lenders to make their respective extensions of credit to the Co-Borrowers thereunder,
each Grantor jointly and severally hereby represents and warrants to the Administrative Agent and
each Lender that:

          3.1 Title; No Other Liens. Except for Permitted Liens, the Grantors own each item of
the Collateral free and clear of any and all Liens or claims of others. No financing statement or
other public notice with respect to all or any part of the Collateral is on file or of record in
any public office, except filings evidencing Permitted Liens and filings for which termination
statements have been delivered to the Administrative Agent.

          3.2 Perfected First Priority Liens. The security interests granted pursuant to this
Agreement (a) upon completion of the filings and other actions specified on Schedule 2
(which, in the case of all filings and other documents referred to on Schedule 2, have been
delivered to the Administrative Agent in completed and duly executed form) will constitute valid
perfected security interests in all of the Collateral in favor of the Administrative Agent, for the
ratable benefit of the Lenders, as collateral security for each Grantor’s Obligations, enforceable
in accordance with the terms hereof against all creditors of each Grantor and any Persons
purporting to purchase any Collateral from each Grantor and (b) are prior to all other Liens on the
Collateral in existence on the date hereof except for Permitted Liens for which priority is
accorded under applicable law. The filings and other actions specified on Schedule 2
constitute all of the filings and other actions necessary to perfect all security interests granted
hereunder.

          3.3 Grantor Information. On the date hereof, sets forth (a) each Grantor’s
jurisdiction of organization, (b) the location of each Grantor’s chief executive office, (c) each
Grantor’s exact legal name as it appears on its organizational documents and (d) each Grantor’s
organizational identification number (to the extent a Grantor is organized in a jurisdiction which
assigns such numbers) and federal employer identification number.

          3.4 Collateral Locations. On the date hereof, Schedule 4 sets forth (a) each
place of business of each Grantor (including its chief executive office), (b) all locations where
all Inventory and the Equipment owned by each Grantor is kept, except with respect to Inventory and
Equipment with a fair market value of less than $50,000 (in the aggregate for all Grantors) which
may be located at other locations and (c) whether each such Collateral location and place of
business (including each Grantor’s chief executive office) is owned or leased (and if leased,
specifies the complete name and notice address of each lessor). No Collateral is located outside
the United States or in the possession of any lessor, bailee, warehouseman or consignee, except as
indicated on Schedule 4.

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          3.5 Certain Property. None of the Collateral constitutes, or is the Proceeds of, (a)
Farm Products, (b) Health Care Insurance Receivables or (c) vessels, aircraft or any other property
subject to any certificate of title or other registration statute of the United States, any State
or other jurisdiction, except for personal vehicles owned by the Grantors and used by employees of
the Grantors in the ordinary course of business with an aggregate fair market value of less than
$50,000 (in the aggregate for all Grantors).

          3.6 Investment Property. (a) The Pledged Equity pledged by each Grantor hereunder
constitute all the issued and outstanding equity interests of each Issuer owned by such Grantor.

          (b) All of the Pledged Equity has been duly and validly issued and is fully paid and
nonassessable.

          (c) Each of the Pledged Notes constitutes the legal, valid and binding obligation of the
obligor with respect thereto, enforceable in accordance with its terms (subject to the effects of
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws
relating to or affecting creditors’ rights generally, general equitable principles (whether
considered in a proceeding in equity or at law) and an implied covenant of good faith and fair
dealing).

          (d) Schedule 1 lists all Investment Property owned by each Grantor. Each Grantor is
the record and beneficial owner of, and has good and marketable title to, the Investment Property
pledged by it hereunder, free of any and all Liens or options in favor of, or claims of, any other
Person, except Permitted Liens.

          3.7 Receivables. (a) No material amount payable to such Grantor under or in
connection with any Receivable is evidenced by any Instrument or Chattel Paper which has not been
delivered to the Administrative Agent.

          (b) No obligor on any Receivable is a governmental authority.

          (c) The amounts represented by such Grantor to the Lenders from time to time as owing to such
Grantor in respect of the Receivables (to the extent such representations are required by any of
the Loan Documents) will at all such times be accurate.

          3.8 Intellectual Property. (a) Schedule 5 lists all Intellectual Property
owned by such Grantor in its own name on the date hereof.

          (b) On the date hereof, all material Intellectual Property owned by any Grantor is valid,
subsisting, unexpired and enforceable and has not been abandoned.

          (c) Except as set forth in Schedule 5, none of the material Intellectual Property is
the subject of any licensing or franchise agreement pursuant to which such Grantor is the licensor
or franchisor.

          (d) Each Grantor owns and possesses or has a license or other right to use all Intellectual
Property as is necessary for the conduct of the businesses of such Grantor, without

-8-

 

any infringement upon rights of others which could reasonably be expected to have a Material
Adverse Effect.

          3.9 Depositary and Other Accounts. All depositary and other accounts maintained by
each Grantor are described on Schedule 6 hereto, which description includes for each such
account the name of the Grantor maintaining such account, the name, address, telephone and fax
numbers of the financial institution at which such account is maintained, the account number and
the account officer, if any, of such account.

SECTION 4 COVENANTS.

          Each Grantor covenants and agrees with the Administrative Agent and the Lenders that, from and
after the date of this Agreement until the Secured Obligations shall have been Paid in Full:

          4.1 Delivery of Instruments, Certificated Securities and Chattel Paper. If any amount
payable under or in connection with any of the Collateral shall be or become evidenced by any
Instrument, Certificated Security or Chattel Paper, such Instrument, Certificated Security or
Chattel Paper shall be immediately delivered to the Administrative Agent, duly indorsed in a manner
reasonably satisfactory to the Administrative Agent, to be held as Collateral pursuant to this
Agreement. In the event that an Unmatured Event of Default or Event of Default shall have occurred
and be continuing, upon the request of the Administrative Agent, any Instrument, Certificated
Security or Chattel Paper not theretofore delivered to the Administrative Agent and at such time
being held by any Grantor shall be immediately delivered to the Administrative Agent, duly indorsed
in a manner reasonably satisfactory to the Administrative Agent, to be held as Collateral pursuant
to this Agreement.

          4.2 Maintenance of Perfected Security Interest; Further Documentation. (a) Such
Grantor shall maintain the security interest created by this Agreement as a perfected security
interest having at least the priority described in Section 3.2 and shall defend such
security interest against the claims and demands of all Persons whomsoever.

          (b) Such Grantor will furnish to the Administrative Agent and the Lenders from time to time
statements and schedules further identifying and describing the assets and property of such Grantor
and such other reports in connection therewith as the Administrative Agent may reasonably request,
all in reasonable detail.

          (c) At any time and from time to time, upon the written request of the Administrative Agent,
and at the sole expense of such Grantor, such Grantor will promptly and duly execute and deliver,
and have recorded, such further instruments and documents and take such further actions as the
Administrative Agent may reasonably request for the purpose of obtaining or preserving the full
benefits of this Agreement and of the rights and powers herein granted, including (i) filing any
financing or continuation statements under the UCC (or other similar laws) in effect in any
jurisdiction with respect to the security interests created hereby and (ii) in the case of
Investment Property and any other relevant Collateral, taking any actions necessary to enable the
Administrative Agent to obtain “control” (within the meaning of the applicable UCC) with respect
thereto and (iii) if requested by the Administrative Agent,

-9-

 

delivering, to the extent permitted by law, any original motor vehicle certificates of title
received by such Grantor from the applicable secretary of state or other governmental authority
after information reflecting the Administrative Agent’s security interest has been recorded
therein.

          4.3 Changes in Locations, Name, etc. Such Grantor shall not, except upon 30 days’
prior written notice to the Administrative Agent and delivery to the Administrative Agent of (a)
all additional financing statements and other documents reasonably requested by the Administrative
Agent as to the validity, perfection and priority of the security interests provided for herein and
(b) if applicable, a written supplement to Schedule 4 showing any additional location at
which Inventory or Equipment shall be kept:

     (i) permit any of the Inventory or Equipment to be kept at a location other than those
listed on Schedule 4; provided, that up to $50,000 (in the aggregate for all
Grantors) in fair market value of any such Inventory and Equipment may be kept at other
locations;

     (ii) change its jurisdiction of organization or the location of its chief executive
office from that specified on Schedule 3 or in any subsequent notice delivered
pursuant to this Section 4.3; or

     (iii) change its name, identity or corporate structure.

          4.4 Notices. Such Grantor will advise the Administrative Agent and the Lenders
promptly, in reasonable detail, of:

          (a) any Lien (other than Permitted Liens) on any of the Collateral which would adversely
affect the ability of the Administrative Agent to exercise any of its remedies hereunder; and

          (b) the occurrence of any other event which could reasonably be expected to have a material
adverse effect on the aggregate value of the Collateral or on the Liens created hereby.

          4.5 Investment Property. (a) If such Grantor shall become entitled to receive or
shall receive any certificate, option or rights in respect of the equity interests of any Issuer,
whether in addition to, in substitution of, as a conversion of, or in exchange for, any of the
Pledged Equity, or otherwise in respect thereof, such Grantor shall accept the same as the agent of
the Administrative Agent and the Lenders, hold the same in trust for the Administrative Agent and
the Lenders and deliver the same forthwith to the Administrative Agent in the exact form received,
duly indorsed by such Grantor to the Administrative Agent, if required, together with an undated
instrument of transfer covering such certificate duly executed in blank by such Grantor and with,
if the Administrative Agent reasonably requests, signature guarantied, to be held by the
Administrative Agent, subject to the terms hereof, as additional Collateral for the Secured
Obligations. Upon the occurrence and during the continuance of an Event of Default, (i) any sums
paid upon or in respect of the Investment Property upon the liquidation or dissolution of any
Issuer shall be paid over to the Administrative Agent to be held by it hereunder as additional
Collateral for the Secured Obligations, and (ii) in case any distribution of capital shall be made
on or in respect of the Investment Property or any property shall be distributed upon or

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with respect to the Investment Property pursuant to the recapitalization or reclassification
of the capital of any Issuer or pursuant to the reorganization thereof, the property so distributed
shall, unless otherwise subject to a perfected Lien in favor of the Administrative Agent, be
delivered to the Administrative Agent to be held by it hereunder as additional Collateral for the
Secured Obligations. Upon the occurrence and during the continuance of an Event of Default, if any
sums of money or property so paid or distributed in respect of the Investment Property shall be
received by such Grantor, such Grantor shall, until such money or property is paid or delivered to
the Administrative Agent, hold such money or property in trust for the Lenders, segregated from
other funds of such Grantor, as additional Collateral for the Secured Obligations.

          (b) Without the prior written consent of the Administrative Agent, such Grantor will not (i)
vote to enable, or take any other action to permit, any Issuer to issue any equity interests of any
nature or to issue any other securities or interests convertible into or granting the right to
purchase or exchange for any equity interests of any nature of any Issuer, except, in each case, as
permitted by the Credit Agreement, (ii) sell, assign, transfer, exchange, or otherwise dispose of,
or grant any option with respect to, the Investment Property or Proceeds thereof (except pursuant
to a transaction expressly permitted by the Credit Agreement) other than, with respect to
Investment Property not constituting Pledged Equity or Pledged Notes, any such action which is not
prohibited by the Credit Agreement, (iii) create, incur or permit to exist any Lien or option in
favor of, or any claim of any Person with respect to, any of the Investment Property or Proceeds
thereof, or any interest therein, except for Permitted Liens, or (iv) enter into any agreement or
undertaking restricting the right or ability of such Grantor or the Administrative Agent to sell,
assign or transfer any of the Investment Property or Proceeds thereof, except, with respect to such
Investment Property, shareholders’ agreements entered into by such Grantor with respect to Persons
in which such Grantor maintains an ownership interest of 50% or less.

          (c) In the case of each Grantor which is an Issuer, such Issuer agrees that (i) it will be
bound by the terms of this Agreement relating to the Investment Property issued by it and will
comply with such terms insofar as such terms are applicable to it, (ii) it will notify the
Administrative Agent promptly in writing of the occurrence of any of the events described in
Section 4.5(a) with respect to the Investment Property issued by it and (iii) the terms of
Sections 5.3(c) and 5.7 shall apply to such Grantor with respect to all actions
that may be required of it pursuant to Section 5.3(c) or 5.7 regarding the
Investment Property issued by it.

          4.6 Receivables. (a) Other than in the ordinary course of business consistent with
its past practice and in amounts which are not material to such Grantor, in addition to its
requirements under the Credit Agreement, such Grantor will not (i) grant any extension of the time
of payment of any Receivable, (ii) compromise or settle any Receivable for less than the full
amount thereof, (iii) release, wholly or partially, any Person liable for the payment of any
Receivable, (iv) allow any credit or discount whatsoever on any Receivable or (v) amend, supplement
or modify any Receivable in any manner that could adversely affect the value thereof.

          (b) Such Grantor will deliver to the Administrative Agent a copy of each material demand,
notice or document received by it that questions or calls into doubt the validity

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or enforceability of more than 5% of the aggregate amount of the then outstanding Receivables
for all Grantors.

          4.7 Intellectual Property. (a) Such Grantor (either itself or through licensees) will
(i) continue to use each Trademark material to its business in order to maintain such Trademark in
full force free from any claim of abandonment for non-use, (ii) maintain as in the past or improve
the quality of products and services offered under such Trademark, (iii) use such Trademark with
the appropriate notice of registration and all other notices and legends required by applicable
law, (iv) not adopt or use any mark which is confusingly similar or a colorable imitation of such
Trademark unless the Administrative Agent, for the ratable benefit of the Lenders, shall obtain a
perfected security interest in such mark pursuant to this Agreement, and (v) not (and not permit
any licensee or sublicensee thereof to) do any act or knowingly omit to do any act whereby such
Trademark may become invalidated or unenforceable in any way.

          (b) Such Grantor (either itself or through licensees) will not do any act, or omit to do any
act, whereby any Patent material to its business may become forfeited, abandoned or dedicated to
the public.

          (c) Such Grantor (either itself or through licensees) will not (and will not permit any
licensee or sublicensee thereof to) do any act or knowingly omit to do any act whereby any material
portion of such Copyrights may become invalidated or otherwise unenforceable. Such Grantor will
not (either itself or through licensees) do any act whereby any material portion of such Copyrights
may fall into the public domain.

          (d) Such Grantor (either itself or through licensees) will not do any act that knowingly uses
any Intellectual Property material to its business to infringe the intellectual property rights of
any other Person.

          (e) Such Grantor will notify the Administrative Agent and the Lenders immediately if it knows,
or has reason to know, that any application or registration relating to any material Intellectual
Property may become forfeited, abandoned or dedicated to the public, or of any adverse
determination or development (including the institution of, or any such determination or
development in, any proceeding before the United States Patent and Trademark Office, the United
States Copyright Office or any court or tribunal in any country) regarding, such Grantor’s
ownership of, or the validity of, any material Intellectual Property or such Grantor’s right to
register the same or to own and maintain the same.

          (f) Whenever such Grantor, either by itself or through any agent, employee, licensee or
designee, shall file an application for a Patent or an application for the registration of a
Trademark with the United States Patent and Trademark Office, or file an application for the
registration of a Copyright with the United States Copyright Office or any similar office or agency
in any other country or any political subdivision thereof, such Grantor shall report such filing to
the Administrative Agent concurrently with the next delivery of financial statements of the Parent
pursuant to Section 10.1 of the Credit Agreement. Upon the request of the Administrative
Agent, such Grantor shall execute and deliver, and have recorded, any and all agreements,
instruments, documents, and papers as the Administrative Agent may request to evidence the
Administrative Agent’s and the Lenders’ security interest in any Copyright, Patent

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or Trademark and the goodwill and general intangibles of such Grantor relating thereto or
represented thereby.

          (g) Such Grantor will take all reasonable and necessary steps to maintain and pursue each
application (and to obtain the relevant registration) and to maintain each registration of all
material Intellectual Property owned by it, as commercially reasonable.

          (h) In the event that any material Intellectual Property is infringed upon or misappropriated
or diluted by a third party, such Grantor shall (i) take such actions as such Grantor shall
reasonably deem appropriate under the circumstances to protect such Intellectual Property and (ii)
if such Intellectual Property is of material economic value, promptly notify the Administrative
Agent after it learns thereof and, to the extent, in its reasonable judgment, such Grantor
determines it appropriate under the circumstances, sue for infringement, misappropriation or
dilution, to seek injunctive relief where appropriate and to recover any and all damages for such
infringement, misappropriation or dilution.

          (i) Upon the occurrence and during the continuance of an Event of Default, Administrative
Agent is hereby granted a license to use, without charge, any Intellectual Property, as it pertains
to any Collateral, in completing, advertising for sale, and selling any Collateral and Grantor’s
rights under all licenses and all franchise agreements shall insure to the Administrative Agent’s
benefit.

          4.8 Target Undertakings.

          (a) Each Grantor shall keep the Administrative Agent informed of all circumstances bearing
upon any potential claim under or with respect to the Assigned Agreements and the Target
Undertakings and such Grantor shall not, without the prior written consent of the Administrative
Agent, (i) waive any of its rights or remedies under any Assigned Agreement with respect to any of
the Target Undertakings in excess of $50,000, (ii) settle, compromise or offset any amount payable
by the Target to such Grantor under any Assigned Agreement in excess of $50,000 or (iii) amend or
otherwise modify any Assigned Agreement in any manner which is adverse to the interests of the
Administrative Agent or any Lender.

          (b) Each Grantor shall perform and observe all the terms and conditions of each Assigned
Agreement to be performed by it, maintain each Assigned Agreement in full force and effect, enforce
each Assigned Agreement in accordance with its terms and take all such action to such end as may
from time to time be reasonably requested by the Administrative Agent.

          (c) Anything herein to the contrary notwithstanding, (i) each applicable Grantor shall remain
liable under each Assigned Agreement to the extent set forth therein to perform all of its duties
and obligations thereunder to the same extent as if this Agreement had not been executed, (ii) the
exercise by the Administrative Agent of any of its rights hereunder shall not release any Grantor
from any of its duties or obligations under any Assigned Agreement and (iii) neither the
Administrative Agent nor any other Lender shall have any obligation or liability under any Assigned
Agreement by reason of this Agreement, nor shall the Administrative Agent or any other Lender be
obligated to perform any of the obligations or

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duties of any Grantor thereunder or to take any action to collect or enforce any claim for
payment assigned hereunder.

          4.9 Depositary and Other Deposit Accounts.

          (a) No Grantor maintains any depositary or other deposit accounts (the “Deposit
Accounts”) with any bank (the “Deposit Account Banks”) other than those listed in
Schedule 6. Each Grantor hereby authorizes each Deposit Account Bank to provide the
Administrative Agent with such information with respect to the Deposit Accounts as the
Administrative Agent may from time to time reasonably request, and each Grantor hereby consents to
such information being provided to the Administrative Agent. Each Grantor will cause each Deposit
Account Bank to enter into a bank agency or other similar agreement with the Administrative Agent
and such Grantor, in the form attached hereto as Annex I (a “Deposit Account Control
Agreement”) and otherwise in substance satisfactory to the Administrative Agent, in order to
give the Administrative Agent “control” (as defined in the UCC) of such account. Each Grantor
shall direct all Account Debtors to make all payments on the Accounts directly to a the applicable
Deposit Account maintained with the applicable Deposit Account Bank.

          (b) No Grantor shall open any depositary or other deposit accounts unless (i) such Grantor
shall have given the Administrative Agent 10 days’ prior written notice of its intention to open
any such new deposit accounts; (ii) such Grantor shall deliver to the Administrative Agent a
revised version of Schedule 6, showing any changes thereto within 5 days of any such
change; and (iii) shall cause such Grantor to enter into a Deposit Account Control Agreement in the
form attached hereto as Annex I and otherwise satisfactory to the Administrative Agent. No
Grantor shall close any Deposit Account maintained with a Deposit Account Bank without the prior
written consent of the Administrative Agent.

          (c) If any Grantor or any director, officer, employee, agent of such Grantor, or any other
Person acting for or in concert with such Grantor shall receive any monies, checks, notes, drafts
or other payments relating to or as proceeds of Accounts or other Collateral, such Grantor and each
such Person shall receive all such items in trust for, and as the sole and exclusive property of,
the Administrative Agent and the Lenders and, promptly upon receipt thereof, shall remit the same
(or cause the same to be remitted) in kind to a Deposit Account.

          (d) So long as no Event of Default shall have occurred and be continuing, the Grantors may
draw checks on, and otherwise withdraw amounts from a Deposit Account maintained with a Deposit
Account Bank in such amounts as may be required in the ordinary course of business or as permitted
under the Credit Agreement, including, without limitation, to pay or prepay Debt (as defined in the
Credit Agreement) outstanding under the Loan Documents (as defined in the Credit Agreement). If an
Event of Default shall have occurred and be continuing, the Administrative Agent may, at any time
and without notice to, or consent from, any Grantor, order any Deposit Account Bank, pursuant to a
Deposit Account Control Agreement, to transfer, or direct the transfer of, funds from any Deposit
Account maintained at such Deposit Account Bank to satisfy the Grantors’ obligations under the Loan
Documents (as defined in the Credit Agreement).

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          (e) For the purpose of this section, each Grantor irrevocably hereby makes, constitutes and
appoints the Administrative Agent (and all Persons designated by the Administrative Agent for that
purpose) as such Grantor’s true and lawful attorney and agent-in-fact (i) to endorse such Grantor’s
name upon said items of payment and/or proceeds of Collateral and upon any Chattel Paper, document,
Instrument, invoice or similar document or agreement relating to any Account of the such Grantor or
goods pertaining thereto; (ii) to take control in any manner of any item of payment or proceeds
thereof; and (iii) to have access to any lock box or postal box into which any of such Grantor’s
mail is deposited, and open and process all mail addressed to the such Grantor and deposited
therein.

          4.10 Other Matters.

          (a) If any Grantor shall cause to be delivered Inventory or other property in excess of
$50,000 in fair market value to any bailee after the Closing Date, such Grantor shall use
reasonable efforts to cause such bailee to sign a Collateral Access Agreement. Such requirement
may be waived at the option of the Administrative Agent. If any Grantor shall lease any real
property or facilities and the value of property of such Grantor located at such leased real
property is in excess of $50,000 in fair market value after the Closing Date, such Grantor shall
use reasonable efforts to cause the landlord in respect of such leased property or facilities to
sign a Collateral Access Agreement. Such requirement may be waived at the option of the
Administrative Agent.

          (b) Each Grantor authorizes the Administrative Agent to, at any time and from time to time,
file financing statements, continuation statements, and amendments thereto that describe the
Collateral as “all assets” of each Grantor, or words of similar effect, and which contain any other
information required pursuant to the UCC for the sufficiency of filing office acceptance of any
financing statement, continuation statement, or amendment, and each Grantor agrees to furnish any
such information to the Administrative Agent promptly upon request. Any such financing statement,
continuation statement, or amendment may be signed by the Administrative Agent on behalf of any
Grantor and may be filed at any time in any jurisdiction.

          (c) Each Grantor shall, at any time and from time and to time, take such steps as the
Administrative Agent may reasonably request for the Administrative Agent (i) to obtain an
acknowledgement, in form and substance reasonably satisfactory to the Administrative Agent, of any
bailee having possession of any of the Collateral, stating that the bailee holds such Collateral
for the Administrative Agent, (ii) to obtain “control” of any letter-of-credit rights, or
electronic chattel paper (as such terms are defined by the UCC with corresponding provisions
thereof defining what constitutes “control” for such items of Collateral), with any agreements
establishing control to be in form and substance reasonably satisfactory to the Administrative
Agent, and (iii) otherwise to insure the continued perfection and priority of the Administrative
Agent’s security interest in any of the Collateral and of the preservation of its rights therein.
If any Grantor shall at any time, acquire a “commercial tort claim” (as such term is defined in the
UCC) in excess of $50,000, such Grantor shall promptly notify the Administrative Agent thereof in
writing and supplement Schedule 7, therein providing a reasonable description and summary

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thereof, and upon delivery thereof to the Administrative Agent, such Grantor shall be deemed
to thereby grant to the Administrative Agent (and such Grantor hereby grants to the Administrative
Agent) a security interest and lien in and to such commercial tort claim and all proceeds thereof,
all upon the terms of and governed by this Agreement.

          (d) Without limiting the generality of the foregoing, if any Grantor at any time holds or
acquires an interest in any electronic chattel paper or any “transferable record”, as that term is
defined in Section 201 of the federal Electronic Signatures in Global and National Commerce Act, or
in §16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction, such
Grantor shall promptly notify the Administrative Agent thereof and, at the request of the
Administrative Agent, shall take such action as the Administrative Agent may reasonably request to
vest in the Administrative Agent “control” under Section 9-105 of the UCC of such electronic
chattel paper or control under Section 201 of the federal Electronic Signatures in Global and
National Commerce Act or, as the case may be, §16 of the Uniform Electronic Transactions Act, as so
in effect in such jurisdiction, of such transferable record. The Administrative Agent agrees with
the Grantors that the Administrative Agent will arrange, pursuant to procedures satisfactory to the
Administrative Agent and so long as such procedures will not result in the Administrative Agent’s
loss of control, for the Grantors to make alterations to the electronic chattel paper or
transferable record permitted under Section 9-105 of the UCC or, as the case may be, Section 201 of
the federal Electronic Signatures in Global and National Commerce Act or §16 of the Uniform
Electronic Transactions Act for a party in control to make without loss of control, unless an Event
of Default has occurred and is continuing or would occur after taking into account any action by
any Grantor with respect to such electronic chattel paper or transferable record.

SECTION 5 REMEDIAL PROVISIONS.

          5.1 Certain Matters Relating to Receivables. (a) At any time and from time to time
after the occurrence and during the continuance of an Event of Default, the Administrative Agent
shall have the right to make test verifications of the Receivables in any manner and through any
medium that it reasonably considers advisable, and each Grantor shall furnish all such assistance
and information as the Administrative Agent may require in connection with such test verifications.
At any time and from time to time after the occurrence and during the continuance of an Event of
Default, upon the Administrative Agent’s request and at the expense of the relevant Grantor, such
Grantor shall cause independent public accountants or others satisfactory to the Administrative
Agent to furnish to the Administrative Agent reports showing reconciliations, agings and test
verifications of, and trial balances for, the Receivables.

          (b) The Administrative Agent hereby authorizes each Grantor to collect such Grantor’s
Receivables, and the Administrative Agent may curtail or terminate such authority at any time after
the occurrence and during the continuance of an Event of Default. If required by the
Administrative Agent at any time after the occurrence and during the continuance of an Event of
Default, any payments of Receivables, when collected by any Grantor, (i) shall be forthwith (and,
in any event, within 2 Business Days) deposited by such Grantor in the exact form received, duly
indorsed by such Grantor to the Administrative Agent if required, in a collateral account
maintained under the sole dominion and control of the Administrative Agent, subject to withdrawal
by the Administrative Agent for the account of the Lenders only as

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provided in Section 5.5, and (ii) until so turned over, shall be held by such Grantor
in trust for the Administrative Agent and the Lenders, segregated from other funds of such Grantor.
Each such deposit of Proceeds of Receivables shall be accompanied by a report identifying in
reasonable detail the nature and source of the payments included in the deposit.

          (c) At any time and from time to time after the occurrence and during the continuance of an
Event of Default, at the Administrative Agent’s request, each Grantor shall deliver to the
Administrative Agent all original and other documents evidencing, and relating to, the agreements
and transactions which gave rise to the Receivables, including all original orders, invoices and
shipping receipts.

          (d) Each Grantor hereby irrevocably authorizes and empowers the Administrative Agent, in the
Administrative Agent’s sole discretion, at any time after the occurrence and during the continuance
of an Event of Default, to assert, either directly or on behalf of such Grantor, any claim such
Grantor may from time to time have against the sellers under or with respect to the Assigned
Agreements and to receive and collect any and all damages, awards and other monies resulting
therefrom and to apply the same to the Obligations. Each Grantor hereby irrevocably makes,
constitutes and appoints the Administrative Agent as its true and lawful attorney in fact for the
purpose of enabling the Administrative Agent to assert and collect such claims and to apply such
monies in the manner set forth above, which appointment, being coupled with an interest, is
irrevocable.

          5.2 Communications with Obligors; Grantors Remain Liable. (a) The Administrative
Agent in its own name or in the name of others may at any time after the occurrence and during the
continuance of an Event of Default communicate with obligors under the Receivables to verify with
them to the Administrative Agent’s satisfaction the existence, amount and terms of any Receivables.

          (b) Upon the request of the Administrative Agent at any time after the occurrence and during
the continuance of an Event of Default, each Grantor shall notify obligors on the Receivables that
the Receivables have been assigned to the Administrative Agent for the ratable benefit of the
Lenders and that payments in respect thereof shall be made directly to the Administrative Agent.

          (c) Anything herein to the contrary notwithstanding, each Grantor shall remain liable in
respect of each of the Receivables to observe and perform all the conditions and obligations to be
observed and performed by it thereunder, all in accordance with the terms of any agreement giving
rise thereto. Neither the Administrative Agent nor any Lender shall have any obligation or
liability under any Receivable (or any agreement giving rise thereto) by reason of or arising out
of this Agreement or the receipt by the Administrative Agent or any Lender of any payment relating
thereto, nor shall the Administrative Agent or any Lender be obligated in any manner to perform any
of the obligations of any Grantor under or pursuant to any Receivable (or any agreement giving rise
thereto), to make any payment, to make any inquiry as to the nature or the sufficiency of any
payment received by it or as to the sufficiency of any performance by any party thereunder, to
present or file any claim, to take any action to enforce any performance or to collect the payment
of any amounts which may have been assigned to it or to which it may be entitled at any time or
times.

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          (d) For the purpose of enabling the Administrative Agent to exercise rights and remedies under
this Agreement, each Grantor hereby grants to the Administrative Agent, for the benefit of the
Administrative Agent and the Lenders, an irrevocable, nonexclusive license (exercisable without
payment of royalty or other compensation to such Grantor) to use, license or sublicense any
Intellectual Property now owned or hereafter acquired by such Grantor, and wherever the same may be
located, and including in such license access to all media in which any of the licensed items may
be recorded or stored and to all computer software and programs used for the compilation or
printout thereof.

          5.3 Investment Property. (a) Unless an Event of Default shall have occurred and be
continuing and the Administrative Agent shall have given notice to the relevant Grantor of the
Administrative Agent’s intent to exercise its corresponding rights pursuant to Section
5.3(b), each Grantor shall be permitted to receive all cash dividends and distributions paid in
respect of the Pledged Equity and all payments made in respect of the Pledged Notes, to the extent
permitted in the Credit Agreement, and to exercise all voting and other rights with respect to the
Investment Property; provided, that no vote shall be cast or other right exercised or
action taken which could impair the Collateral or which would be inconsistent with or result in any
violation of any provision of the Credit Agreement, this Agreement or any other Loan Document.

          (b) If an Event of Default shall occur and be continuing and the Administrative Agent shall
give notice of its intent to exercise such rights to the relevant Grantor or Grantors, (i) the
Administrative Agent shall have the right to receive any and all cash dividends and distributions,
payments or other Proceeds paid in respect of the Investment Property and make application thereof
to the Obligations in such order as the Administrative Agent may determine, and (ii) any or all of
the Investment Property shall be registered in the name of the Administrative Agent or its nominee,
and the Administrative Agent or its nominee may thereafter exercise (x) all voting and other rights
pertaining to such Investment Property at any meeting of holders of the equity interests of the
relevant Issuer or Issuers or otherwise and (y) any and all rights of conversion, exchange and
subscription and any other rights, privileges or options pertaining to such Investment Property as
if it were the absolute owner thereof (including the right to exchange at its discretion any and
all of the Investment Property upon the merger, consolidation, reorganization, recapitalization or
other fundamental change in the corporate or other structure of any Issuer, or upon the exercise by
any Grantor or the Administrative Agent of any right, privilege or option pertaining to such
Investment Property, and in connection therewith, the right to deposit and deliver any and all of
the Investment Property with any committee, depositary, transfer agent, registrar or other
designated agency upon such terms and conditions as the Administrative Agent may determine), all
without liability except to account for property actually received by it, but the Administrative
Agent shall have no duty to any Grantor to exercise any such right, privilege or option and shall
not be responsible for any failure to do so or delay in so doing.

          (c) Each Grantor hereby authorizes and instructs each Issuer of any Investment Property
pledged by such Grantor hereunder to (i) comply with any instruction received by it from the
Administrative Agent in writing that (x) states that an Event of Default has occurred and is
continuing and (y) is otherwise in accordance with the terms of this Agreement, without any other
or further instructions from such Grantor, and each Grantor agrees

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that each Issuer shall be fully protected in so complying and (ii) unless otherwise expressly
permitted hereby, pay any dividends, distributions or other payments with respect to the Investment
Property directly to the Administrative Agent.

          5.4 Proceeds to be Turned Over to Administrative Agent. In addition to the rights of
the Administrative Agent and the Lenders specified in Section 5.1 with respect to payments
of Receivables, if an Event of Default shall occur and be continuing, all Proceeds received by any
Grantor consisting of cash, checks and other cash equivalent items shall be held by such Grantor in
trust for the Administrative Agent and the Lenders, segregated from other funds of such Grantor,
and shall, forthwith upon receipt by such Grantor, be turned over to the Administrative Agent in
the exact form received by such Grantor (duly indorsed by such Grantor to the Administrative Agent,
if required). All Proceeds received by the Administrative Agent hereunder shall be held by the
Administrative Agent in a collateral account maintained under its sole dominion and control. All
Proceeds, while held by the Administrative Agent in any collateral account (or by such Grantor in
trust for the Administrative Agent and the Lenders) established pursuant hereto, shall continue to
be held as collateral security for the Secured Obligations and shall not constitute payment thereof
until applied as provided in Section 5.5.

          5.5 Application of Proceeds. At such intervals as may be agreed upon by the Parent
and the Administrative Agent, or, if an Event of Default shall have occurred and be continuing, at
any time at the Administrative Agent’s election, the Administrative Agent may apply all or any part
of Proceeds from the sale of, or other realization upon, all or any part of the Collateral in
payment of the Secured Obligations in such order as the Administrative Agent shall determine in its
discretion. Any part of such funds which the Administrative Agent elects not so to apply and deems
not required as collateral security for the Secured Obligations shall be paid over from time to
time by the Administrative Agent to the applicable Grantor or to whomsoever may be lawfully
entitled to receive the same. Any balance of such Proceeds remaining after the Secured Obligations
shall have been Paid in Full shall be paid over to the applicable Grantor or to whomsoever may be
lawfully entitled to receive the same. In the absence of a specific determination by the
Administrative Agent, the Proceeds from the sale of, or other realization upon, all or any part of
the Collateral in payment of the Secured Obligations shall be applied in the following order:

     FIRST, to the payment of all fees, costs, expenses and indemnities of the
Administrative Agent (in its capacity as such), including Attorney Costs, and any other
Secured Obligations owing to the Administrative Agent in respect of sums advanced by the
Administrative Agent to preserve the Collateral or to preserve its security interest in the
Collateral, until paid in full;

     SECOND, to the payment of all fees, costs, expenses and indemnities of the Lenders, in
its Pro-Rata Share, until paid in full;

     THIRD, to the payment of all of the Secured Obligations in respect of the Swing Line
Loans to the Swing Line Lender, until paid in full;

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     FOURTH, to the payment of all of the Secured Obligations (other than Bank Product
Obligations and Hedging Obligations) consisting of accrued and unpaid interest owing to any
Lender, in its Pro-Rata Share, until paid in full;

     FIFTH, to the payment of all Secured Obligations (other than Bank Product Obligations
and Hedging Obligations) consisting of principal owing to any Lender, in its Pro-Rata Share,
until paid in full;

     SIXTH, to the payment of the Administrative Agent an amount equal to all Secured
Obligations in respect of outstanding Letters of Credit to be held as cash collateral in
respect of such obligations;

     SEVENTH, to the payment of all Bank Products Obligations and Hedging Obligations owing
to any Lender or its Affiliates, in its Pro-Rata Share, until paid in full;

     EIGHTH, to the payment of all other Secured Obligations owing to each Lender, in its
Pro-Rata Share, until paid in full; and

     NINTH, to the payment of any remaining Proceeds, if any, to whomever may be lawfully
entitled to receive such amounts.

          5.6 UCC and Other Remedies. If an Event of Default shall occur and be continuing, the
Administrative Agent, on behalf of the Lenders, may exercise, in addition to all other rights and
remedies granted to them in this Agreement and in any other instrument or agreement securing,
evidencing or relating to the Secured Obligations, all rights and remedies of a secured party under
the UCC or any other applicable law. Without limiting the generality of the foregoing, the
Administrative Agent, without demand of performance or other demand, presentment, protest,
advertisement or notice of any kind (except any notice required by law referred to below) to or
upon any Grantor or any other Person (all and each of which demands, defenses, advertisements and
notices are hereby waived), may in such circumstances forthwith collect, receive, appropriate and
realize upon the Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give
options to purchase, or otherwise dispose of and deliver the Collateral or any part thereof (or
contract to do any of the foregoing), in one or more parcels at public or private sale or sales, at
any exchange, broker’s board or office of the Administrative Agent or any Lender or elsewhere upon
such terms and conditions as it may deem advisable and at such prices as it may deem best, for cash
or on credit or for future delivery with assumption of any credit risk. The Administrative Agent
or any Lender shall have the right upon any such public sale or sales, and, to the extent permitted
by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so
sold, free of any right or equity of redemption in any Grantor, which right or equity is hereby
waived and released. Each Grantor further agrees, at the Administrative Agent’s request, to
assemble the Collateral and make it available to the Administrative Agent at places which the
Administrative Agent shall reasonably select, whether at such Grantor’s premises or elsewhere. The
Administrative Agent shall apply the net proceeds of any action taken by it pursuant to this
Section 5.6, after deducting all reasonable costs and expenses of every kind incurred in
connection therewith or incidental to the care or safekeeping of any of the Collateral or in any
way relating to the Collateral or the rights of the Administrative Agent and the Lenders hereunder,
including Attorney Costs to the payment in

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whole or in part of the Secured Obligations, in such order as the Administrative Agent may
elect, and only after such application and after the payment by the Administrative Agent of any
other amount required by any provision of law, need the Administrative Agent account for the
surplus, if any, to any Grantor. To the extent permitted by applicable law, each Grantor waives
all claims, damages and demands it may acquire against the Administrative Agent or any Lender
arising out of the exercise by them of any rights hereunder. If any notice of a proposed sale or
other disposition of Collateral shall be required by law, such notice shall be deemed reasonable
and proper if given at least 10 days before such sale or other disposition.

          5.7 Registration Rights. (a) If the Administrative Agent shall determine to exercise
its right to sell any or all of the Pledged Equity pursuant to Section 5.6, and if in the
opinion of the Administrative Agent it is necessary or advisable to have the Pledged Equity, or
that portion thereof to be sold, registered under the provisions of the Securities Act, the
relevant Grantor will cause the Issuer thereof to (i) execute and deliver, and cause the directors
and officers of such Issuer to execute and deliver, all such instruments and documents, and do or
cause to be done all such other acts as may be, in the opinion of the Administrative Agent,
necessary or advisable to register the Pledged Equity, or that portion thereof to be sold, under
the provisions of the Securities Act, (ii) use its best efforts to cause the registration statement
relating thereto to become effective and to remain effective for a period of one year from the date
of the first public offering of the Pledged Equity, or that portion thereof to be sold, and (iii)
make all amendments thereto and/or to the related prospectus which, in the opinion of the
Administrative Agent, are necessary or advisable, all in conformity with the requirements of the
Securities Act and the rules and regulations of the Securities and Exchange Commission applicable
thereto. Each Grantor agrees to cause such Issuer to comply with the provisions of the securities
or “Blue Sky” laws of any and all jurisdictions which the Administrative Agent shall designate and
to make available to its security holders, as soon as practicable, an earnings statement (which
need not be audited) which will satisfy the provisions of Section 11(a) of the Securities Act.

          (b) Each Grantor recognizes that the Administrative Agent may be unable to effect a public
sale of any or all the Pledged Equity, by reason of certain prohibitions contained in the
Securities Act and applicable state securities laws or otherwise, and may be compelled to resort to
one or more private sales thereof to a restricted group of purchasers which will be obliged to
agree, among other things, to acquire such securities for their own account for investment and not
with a view to the distribution or resale thereof. Each Grantor acknowledges and agrees that any
such private sale may result in prices and other terms less favorable than if such sale were a
public sale and, notwithstanding such circumstances, agrees that any such private sale shall be
deemed to have been made in a commercially reasonable manner. The Administrative Agent shall be
under no obligation to delay a sale of any of the Pledged Equity for the period of time necessary
to permit the Issuer thereof to register such securities or other interests for public sale under
the Securities Act, or under applicable state securities laws, even if such Issuer would agree to
do so.

          (c) Each Grantor agrees to use its best efforts to do or cause to be done all such other acts
as may be necessary to make such sale or sales of all or any portion of the Pledged Equity pursuant
to this Section 5.7 valid and binding and in compliance with applicable law. Each Grantor
further agrees that a breach of any of the covenants contained in this Section 5.7 will
cause irreparable injury to the Administrative Agent and the Lenders, that the

-21-

 

Administrative Agent and the Lenders have no adequate remedy at law in respect of such breach
and, as a consequence, that each and every covenant contained in this Section 5.7 shall be
specifically enforceable against such Grantor, and such Grantor hereby waives and agrees not to
assert any defenses against an action for specific performance of such covenants except for a
defense that no Event of Default has occurred under the Credit Agreement.

          5.8 Waiver; Deficiency. Each Grantor waives and agrees not to assert any rights or
privileges which it may acquire under Section 9-626 of the UCC. Each Grantor shall remain liable
for any deficiency if the proceeds of any sale or other disposition of the Collateral are
insufficient to pay the Secured Obligations in full and the fees and disbursements of any attorneys
employed by the Administrative Agent or any Lender to collect such deficiency.

SECTION 6 THE ADMINISTRATIVE AGENT.

          6.1 Administrative Agent’s Appointment as Attorney-in-Fact, etc. (a) Each Grantor
hereby irrevocably constitutes and appoints the Administrative Agent and any officer or agent
thereof, with full power of substitution, as its true and lawful attorney-in-fact with full
irrevocable power and authority in the place and stead of such Grantor and in the name of such
Grantor or in its own name, for the purpose of carrying out the terms of this Agreement, to take
any and all appropriate action and to execute any and all documents and instruments which may be
necessary or desirable to accomplish the purposes of this Agreement, and, without limiting the
generality of the foregoing, each Grantor hereby gives the Administrative Agent the power and
right, on behalf of and at the expense of such Grantor, without notice to or assent by such
Grantor, to do any or all of the following:

     (i) in the name of such Grantor or its own name, or otherwise, take possession of and
indorse and collect any checks, drafts, notes, acceptances or other instruments for the
payment of moneys due under any Receivable or with respect to any other Collateral and file
any claim or take any other action or proceeding in any court of law or equity or otherwise
deemed appropriate by the Administrative Agent for the purpose of collecting any and all
such moneys due under any Receivable or with respect to any other Collateral whenever
payable;

     (ii) in the case of any Intellectual Property, execute and deliver, and have recorded,
any and all agreements, instruments, documents and papers as the Administrative Agent may
request to evidence the Administrative Agent’s security interest in such Intellectual
Property and the goodwill and general intangibles of such Grantor relating thereto or
represented thereby;

     (iii) discharge Liens levied or placed on or threatened against the Collateral, and
effect any repairs or insurance called for by the terms of this Agreement and pay all or any
part of the premiums therefor and the costs thereof;

     (iv) execute, in connection with any sale provided for in Section 5.6 or 5.7,
any indorsements, assignments or other instruments of conveyance or transfer with respect to
the Collateral; and

-22-

 

     (v) (1) direct any party liable for any payment under any of the Collateral to
make payment of any and all moneys due or to become due thereunder directly to the
Administrative Agent or as the Administrative Agent shall direct; (2) ask or demand for,
collect, and receive payment of and receipt for, any and all moneys, claims and other
amounts due or to become due at any time in respect of or arising out of any Collateral; (3)
sign and indorse any invoices, freight or express bills, bills of lading, storage or
warehouse receipts, drafts against debtors, assignments, verifications, notices and other
documents in connection with any of the Collateral; (4) commence and prosecute any suits,
actions or proceedings at law or in equity in any court of competent jurisdiction to collect
the Collateral or any portion thereof and to enforce any other right in respect of any
Collateral; (5) defend any suit, action or proceeding brought against such Grantor with
respect to any Collateral; (6) settle, compromise or adjust any such suit, action or
proceeding and, in connection therewith, give such discharges or releases as the
Administrative Agent may deem appropriate; (7) assign any Copyright, Patent or Trademark,
throughout the world for such term or terms, on such conditions, and in such manner, as the
Administrative Agent shall in its sole discretion determine; (8) vote any right or interest
with respect to any Investment Property; (9) order good standing certificates and conduct
lien searches in respect of such jurisdictions or offices as the Administrative Agent may
deem appropriate; and (10) generally sell, transfer, pledge and make any agreement with
respect to or otherwise deal with any of the Collateral as fully and completely as though
the Administrative Agent were the absolute owner thereof for all purposes, and do, at the
Administrative Agent’s option and such Grantor’s expense, at any time, or from time to time,
all acts and things which the Administrative Agent deems necessary to protect, preserve or
realize upon the Collateral and the Administrative Agent’s security interests therein and to
effect the intent of this Agreement, all as fully and effectively as such Grantor might do.

     Anything in this Section 6.1(a) to the contrary notwithstanding, the Administrative
Agent agrees that it will not exercise any rights under the power of attorney provided for in this
Section 6.1(a) unless an Event of Default shall have occurred and be continuing.

          (b) If any Grantor fails to perform or comply with any of its agreements contained herein, the
Administrative Agent, at its option, but without any obligation so to do, may perform or comply, or
otherwise cause performance or compliance, with such agreement.

          (c) Each Grantor hereby ratifies all that such attorneys shall lawfully do or cause to be done
by virtue hereof. All powers, authorizations and agencies contained in this Agreement are coupled
with an interest and are irrevocable until this Agreement is terminated and the security interests
created hereby are released.

          6.2 Duty of Administrative Agent. The Administrative Agent’s sole duty with respect
to the custody, safekeeping and physical preservation of the Collateral in its possession shall be
to deal with it in the same manner as the Administrative Agent deals with similar property for its
own account. Neither the Administrative Agent or any Lender nor any of their respective officers,
directors, employees or agents shall be liable for any failure to demand, collect or realize upon
any of the Collateral or for any delay in doing so or shall be under any obligation to sell or
otherwise dispose of any Collateral upon the request of any Grantor or any
 

-23-

 

other Person or to take
any other action whatsoever with regard to the Collateral or any part thereof. The powers
conferred on the Administrative Agent and the Lenders hereunder are solely to protect the
Administrative Agent’s and the Lenders’ interests in the Collateral and shall not impose any duty
upon the Administrative Agent or any Lender to exercise any such powers. The Administrative Agent
and the Lenders shall be accountable only for amounts that they actually receive as a result of the
exercise of such powers, and neither they nor any of their officers, directors, employees or agents
shall be responsible to any Grantor for any act or failure to act hereunder.

          6.3 Authority of Administrative Agent. Each Grantor acknowledges that the rights and
responsibilities of the Administrative Agent under this Agreement with respect to any action taken
by the Administrative Agent or the exercise or non-exercise by the Administrative Agent of any
option, voting right, request, judgment or other right or remedy provided for herein or resulting
or arising out of this Agreement shall, as between the Administrative Agent and the Lenders, be
governed by the Credit Agreement and by such other agreements with respect thereto as may exist
from time to time among them, but, as between the Administrative Agent and the Grantors, the
Administrative Agent shall be conclusively presumed to be acting as agent for the Lenders with full
and valid authority so to act or refrain from acting, and no Grantor shall be under any obligation,
or entitlement, to make any inquiry respecting such authority.

SECTION 7 MISCELLANEOUS.

          7.1 Amendments in Writing. None of the terms or provisions of this Agreement may be
waived, amended, supplemented or otherwise modified except in accordance with Section 15.1
of the Credit Agreement.

          7.2 Notices. All notices, requests and demands to or upon the Administrative Agent or
any Grantor hereunder shall be addressed to the Parent and effected in the manner provided for in
Section 15.3 of the Credit Agreement and each Grantor hereby appoints the Parent as its
agent to receive notices hereunder.

          7.3 Indemnification by Grantors. THE GRANTORS, JOINTLY AND SEVERALLY, HEREBY AGREE TO
INDEMNIFY, EXONERATE AND HOLD EACH LENDER PARTY FREE AND HARMLESS FROM AND AGAINST ANY AND ALL
INDEMNIFIED LIABILITIES, INCURRED BY THE LENDER PARTIES OR ANY OF THEM AS A RESULT OF, OR ARISING
OUT OF, OR RELATING TO (A) ANY TENDER OFFER, MERGER, PURCHASE OF EQUITY INTERESTS, PURCHASE OF
ASSETS OR OTHER SIMILAR TRANSACTION FINANCED OR PROPOSED TO BE FINANCED IN WHOLE OR IN PART,
DIRECTLY OR INDIRECTLY, WITH THE PROCEEDS OF ANY OF THE LOANS, (B) THE USE, HANDLING, RELEASE,
EMISSION, DISCHARGE, TRANSPORTATION, STORAGE, TREATMENT OR DISPOSAL OF ANY HAZARDOUS SUBSTANCE AT
ANY PROPERTY OWNED OR LEASED BY ANY GRANTOR, (C) ANY VIOLATION OF ANY ENVIRONMENTAL LAWS WITH
RESPECT TO CONDITIONS AT ANY PROPERTY OWNED OR LEASED BY ANY GRANTOR OR THE OPERATIONS CONDUCTED
THEREON, (D) THE INVESTIGATION, CLEANUP OR REMEDIATION OF OFFSITE LOCATIONS AT WHICH ANY LOAN PARTY
OR THEIR RESPECTIVE PREDECESSORS ARE
 

-24-

 

ALLEGED TO HAVE DIRECTLY OR INDIRECTLY DISPOSED OF HAZARDOUS
SUBSTANCES OR (E) THE EXECUTION, DELIVERY, PERFORMANCE OR ENFORCEMENT OF THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT BY ANY OF THE LENDER PARTIES, EXCEPT FOR ANY SUCH INDEMNIFIED LIABILITIES
ARISING ON ACCOUNT OF THE APPLICABLE LENDER PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS
DETERMINED BY A FINAL, NONAPPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION. IF AND TO THE
EXTENT THAT THE FOREGOING UNDERTAKING MAY BE UNENFORCEABLE FOR ANY REASON, EACH GRANTOR HEREBY
AGREES TO MAKE THE MAXIMUM CONTRIBUTION TO THE PAYMENT AND SATISFACTION OF EACH OF THE INDEMNIFIED
LIABILITIES WHICH IS PERMISSIBLE UNDER APPLICABLE LAW. ALL OBLIGATIONS PROVIDED FOR IN THIS
SECTION 7.3 SHALL SURVIVE REPAYMENT OF ALL (AND SHALL BE) SECURED OBLIGATIONS (AND
TERMINATION OF ALL COMMITMENTS UNDER THE CREDIT AGREEMENT), ANY FORECLOSURE UNDER, OR ANY
MODIFICATION, RELEASE OR DISCHARGE OF, ANY OR ALL OF THE COLLATERAL DOCUMENTS AND TERMINATION OF
THIS AGREEMENT.

          7.4 Enforcement Expenses. (a) Each Grantor agrees, on a joint and several basis, to
pay or reimburse on demand the Administrative Agent for all reasonable out-of-pocket costs and
expenses (including Attorney Costs) incurred in enforcing or preserving any rights under this
Agreement and the other Loan Documents.

          (b) Each Grantor agrees to pay, and to save the Administrative Agent and the Lenders harmless
from, any and all liabilities with respect to, or resulting from any delay in paying, any and all
stamp, excise, sales or other taxes which may be payable or determined to be payable with respect
to any of the Collateral or in connection with any of the transactions contemplated by this
Agreement.

          (c) The agreements in this Section 7.4 shall survive repayment of all (and shall be)
Secured Obligations (and termination of all commitments under the Credit Agreement), any
foreclosure under, or any modification, release or discharge of, any or all of the Collateral
Documents and termination of this Agreement.

          7.5 Captions. Section captions used in this Agreement are for convenience only and
shall not affect the construction of this Agreement.

          7.6 Nature of Remedies. All Secured Obligations of each Grantor and rights of the
Administrative Agent and the Lenders expressed herein or in any other Loan Document shall be in
addition to and not in limitation of those provided by applicable law. No failure to exercise and
no delay in exercising, on the part of the Administrative Agent or any Lender, any right, remedy,
power or privilege hereunder, shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege.

-25-

 

          7.7 Counterparts. This Agreement may be executed in any number of counterparts and by
the different parties hereto on separate counterparts and each such counterpart shall be deemed to
be an original, but all such counterparts shall together constitute but one and the same Agreement.
Receipt by telecopy of any executed signature page to this Agreement or any other Loan Document
shall constitute effective delivery of such signature page.

          7.8 Severability. The illegality or unenforceability of any provision of this
Agreement or any instrument or agreement required hereunder shall not in any way affect or impair
the legality or enforceability of the remaining provisions of this Agreement or any instrument or
agreement required hereunder.

          7.9 Entire Agreement. This Agreement, together with the other Loan Documents,
embodies the entire agreement and understanding among the parties hereto and supersedes all prior
or contemporaneous agreements and understandings of such Persons, verbal or written, relating to
the subject matter hereof and thereof and any prior arrangements made with respect to the payment
by any Grantor of (or any indemnification for) any fees, costs or expenses payable to or incurred
(or to be incurred) by or on behalf of the Administrative Agent or the Lenders.

          7.10 Successors; Assigns. This Agreement shall be binding upon Grantors, the Lenders
and the Administrative Agent and their respective successors and assigns, and shall inure to the
benefit of Grantors, Lenders and the Administrative Agent and the successors and assigns of the
Lenders and the Administrative Agent. No other Person shall be a direct or indirect legal
beneficiary of, or have any direct or indirect cause of action or claim in connection with, this
Agreement or any of the other Loan Documents. No Grantor may assign or transfer any of its rights
or Obligations under this Agreement without the prior written consent of the Administrative Agent.

          7.11 Governing Law. THIS AGREEMENT SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY THE
INTERNAL LAWS OF THE STATE OF ILLINOIS APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY
WITHIN SUCH STATE, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

          7.12 Forum Selection; Consent to Jurisdiction. ANY LITIGATION BASED HEREON, OR
ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT SHALL BE BROUGHT AND MAINTAINED
EXCLUSIVELY IN THE COURTS OF THE STATE OF ILLINOIS OR IN THE UNITED STATES DISTRICT COURT FOR THE
NORTHERN DISTRICT OF ILLINOIS; PROVIDED THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR
OPERATE TO PRECLUDE THE ADMINISTRATIVE AGENT FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY
OTHER JURISDICTION. EACH GRANTOR HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF
THE COURTS OF THE STATE OF ILLINOIS AND OF THE UNITED STATES DISTRICT COURT FOR THE NORTHERN
DISTRICT OF ILLINOIS FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE. EACH GRANTOR
FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, RETURN RECEIPT
CONFIRMING
 

-26-

 

DELIVERY REQUIRED, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE
OF ILLINOIS. EACH GRANTOR HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH
LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS
BEEN BROUGHT IN AN INCONVENIENT FORUM.

          7.13 Waiver of Jury Trial. EACH GRANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER
HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY
RIGHTS UNDER THIS AGREEMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH
MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH AND AGREES THAT ANY SUCH ACTION OR PROCEEDING
SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

          7.14 Set-off. Each Grantor agrees that the Administrative Agent and each Lender have
all rights of set-off and bankers’ lien provided by applicable law, and in addition thereto, each
Grantor agrees that at any time any Event of Default exists, the Administrative Agent and each
Lender may apply to the payment of any Secured Obligations, whether or not then due, any and all
balances, credits, deposits, accounts or moneys of such Grantor then or thereafter with the
Administrative Agent or such Lender.

          7.15 Acknowledgements. Each Grantor hereby acknowledges that:

     (a) it has been advised by counsel in the negotiation, execution and delivery of this
Agreement and the other Loan Documents to which it is a party;

     (b) neither the Administrative Agent nor any Lender has any fiduciary relationship with
or duty to any Grantor arising out of or in connection with this Agreement or any of the
other Loan Documents, and the relationship between the Grantors, on the one hand, and the
Administrative Agent and the Lenders, on the other hand, in connection herewith or therewith
is solely that of debtor and creditor; and

     (c) no joint venture is created hereby or by the other Loan Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Lenders or among the
Grantors and the Lenders.

          7.16 Additional Grantors. Each Loan Party that is required to become a party to this
Agreement pursuant to Section 10.9 of the Credit Agreement shall become a Grantor for all
purposes of this Agreement upon execution and delivery by such Loan Party of a joinder agreement in
the form of Annex II hereto.

          7.17 Releases. (a) At such time as the Secured Obligations have been Paid in Full,
the Collateral shall be released from the Liens created hereby, and this Agreement and all
obligations (other than those expressly stated to survive such termination) of the Administrative
Agent and each Grantor hereunder shall terminate, all without delivery of any instrument or
performance of any act by any party, and all rights to the Collateral shall revert to the Grantors.

-27-

 

At the request and sole expense of any Grantor following any such termination, the Administrative
Agent shall deliver to the Grantors any Collateral held by the Administrative Agent hereunder, and
execute and deliver to the Grantors such documents as the Grantors shall reasonably request to
evidence such termination and release.

          (b) If any of the Collateral shall be sold, transferred or otherwise disposed of by any
Grantor in a transaction permitted by the Credit Agreement, then the Administrative Agent, at the
request and sole expense of such Grantor, shall execute and deliver to such Grantor all releases or
other documents reasonably necessary or desirable for the release of the Liens created hereby on
such Collateral. At the request and sole expense of the Parent, a Grantor (other than the Parent)
shall be released from its obligations hereunder in the event that all the equity interests of such
Grantor shall be sold, transferred or otherwise disposed of in a transaction permitted by the
Credit Agreement; provided that the Parent shall have delivered to the Administrative
Agent, with reasonable notice prior to the date of the proposed release, a written request for
release identifying the relevant Grantor and the terms of the sale or other disposition in
reasonable detail, including the price thereof and any expenses in connection therewith, together
with a certification by the Parent stating that such transaction is in compliance with the Credit
Agreement and the other Loan Documents.

          7.18 Obligations and Liens Absolute and Unconditional. Each Grantor understands and
agrees that the obligations of each Grantor under this Agreement shall be construed as a
continuing, absolute and unconditional without regard to (a) the validity or enforceability of any
Loan Document, any of the Secured Obligations or any other collateral security therefor or guaranty
or right of offset with respect thereto at any time or from time to time held by the Administrative
Agent or any Lender, (b) any defense, set-off or counterclaim (other than a defense of payment or
performance) which may at any time be available to or be asserted by any Grantor or any other
Person against the Administrative Agent or any Lender, or (c) any other circumstance whatsoever
(with or without notice to or knowledge of any Grantor) which constitutes, or might be construed to
constitute, an equitable or legal discharge of any Grantor for the Secured Obligations, in
bankruptcy or in any other instance. When making any demand hereunder or otherwise pursuing its
rights and remedies hereunder against any Grantor, the Administrative Agent or any Lender may, but
shall be under no obligation to, make a similar demand on or otherwise pursue such rights and
remedies as it may have against any other Grantor or any other Person or against any collateral
security or guaranty for the Secured Obligations or any right of offset with respect thereto, and
any failure by the Administrative Agent or any Lender to make any such demand, to pursue such other
rights or remedies or to collect any payments from any other Grantor or any other Person or to
realize upon any such collateral security or guaranty or to exercise any such right of offset, or
any release of any other Grantor or any other Person or any such collateral security, guaranty or
right of offset, shall not relieve any Grantor of any obligation or liability hereunder, and shall
not impair or affect the rights and remedies, whether express, implied or available as a matter of
law, of the Administrative Agent or any Lender against any Grantor. For the purposes hereof
“demand” shall include the commencement and continuance of any legal proceedings.

          7.19 Reinstatement. This Agreement shall remain in full force and effect and continue
to be effective should any petition be filed by or against Grantor or any Issuer for liquidation or
reorganization, should Grantor or any Issuer become insolvent or make an

-28-

 

assignment for the benefit
of creditors or should a receiver or trustee be appointed for all or any significant part of
Grantor’s or and Issuer’s assets, and shall continue to be effective or be reinstated, as the case
may be, if at any time payment and performance of the Secured Obligations, or any part thereof, is,
pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or
returned by any obligee of the Secured Obligations, whether as a “voidable preference”, “fraudulent
conveyance”, or otherwise, all as though such payment or performance had not been made. In the
event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the
Secured Obligations shall be reinstated and deemed reduced only by such amount paid and not so
rescinded, reduced, restored or returned.

          7.20 Effect of Amendment and Restatement. This Agreement is intended to and does
completely amend and restate, without novation, the Original Agreement. Each Grantor hereby
reaffirms and ratifies all security interests granted to the Administrative Agent for the ratable
benefit of the Lenders under the Original Agreement and the parties hereto acknowledge and agree
that such security interests shall continue to secure all Secured Obligations, and nothing herein
shall release or otherwise adversely affect any rights of the Administrative Agent with respect to
the Original Agreement.

[Signature Pages Follow]

-29-

 

          Each of the undersigned has caused this Amended and Restated Security Agreement to be
duly executed and delivered as of the date first above written.

	 	 	 	 	 	 	 
	 	 	LASALLE BANK
NATIONAL ASSOCIATION, 

as Administrative
Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 	 	 	 	 	 	 

 

 

	 	 	 
	 

	 	Ennis, Inc.
	 

	 	Ennis Business Forms of Kansas, Inc.
	 

	 	Connolly Tool and Machine Co.
	 

	 	Admore, Inc.
	 

	 	PFC Products, Inc.
	 

	 	Ennis Acquisitions, Inc.
	 

	 	Northstar Computer Forms, Inc.
	 

	 	General Financial Supply, Inc.
	 

	 	Calibrated Forms Co. Inc.
	 

	 	Crabar/GBF, Inc.
	 

	 	Royal Business Forms, Inc.
	 

	 	Alstyle Apparel LLC
	 

	 	A and G, Inc.
	 

	 	Alstyle Ensenada LLC
	 

	 	Alstyle Hermosilla LLC
	 

	 	Diaco USA, LLC
	 

	 	Tennessee Business Forms Company d/b/a

    Avant-Garde
	 

	 	TBF Realty, LLC

	 	 	 	 	 	 	 
	 

	 	By: 	 	 	 	 
	 

	 	 	 	 	 
	 	 	                    Keith S. Walters, President of each	 	 
	 
	 	 	 	 	 	 
	 	 	American Forms I, L.P.	 	 
	 	 	Adams McClure I, L.P.	 	 
	 	 	Texas EBF, L.P.	 	 
	 	 	Ennis Sales, L.P.	 	 
	 	 	Ennis Management, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Ennis, Inc., the sole general partner of
each	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 	 	 	 	 
	 

	 	 	 	 	 
	 	 	                    Keith S. Walters, President	 	 

 

 

SCHEDULE 1

INVESTMENT PROPERTY

A. PLEDGED EQUITY

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Grantor (owner of

Record of such

Pledged Equity)

	 	 	Issuer
	 	 	Pledged

Equity

Description

	 	 	Percentage

of Issuer

	 	 	Certificate

(Indicate

No.)
	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

B. PLEDGED NOTES

	 	 	 	 	 	 	 	 	 
	 	Grantor (owner of Record

of such Pledged Notes)

	 	 	Issuer
	 	 	Pledged Notes

Description	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 

C. OTHER INVESTMENT PROPERTY

	 	 	 	 	 	 
	 	Grantor

	 	 	Investment Property Description	 
	 	 
	 	 	 	 
	 	 
	 	 	 	 
	 	 
	 	 	 	 
	 

 

 

SCHEDULE 2

FILINGS AND PERFECTION

	 	 	 	 	 	 	 	 	 
	 	GRANTOR

	 	 	FILING REQUIREMENT

OR OTHER ACTION
	 	 	FILING OFFICE	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 

 

 

SCHEDULE 3

GRANTOR INFORMATION

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	GRANTOR

(exact legal name)

	 	 	STATE OF

ORGANIZATION

	 	 	FEIN
	 	 	CHIEF

EXECUTIVE

OFFICE

	 	 	Organizational

ID
	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

 

 

SCHEDULE 4

A. COLLATERAL LOCATIONS

	 	 	 	 	 	 	 	 	 	 	 	 
	 	GRANTOR

	 	 	COLLATERAL
	 	 	COLLATERAL

LOCATION

OR PLACE OF BUSINESS (INCLUDING

CHIEF EXECUTIVE OFFICE)

	 	 	OWNER/LESSOR

(IF LEASED)	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 
	 

B. COLLATERAL IN POSSESSION OF LESSOR,

    BAILEE, CONSIGNEE OR WAREHOUSEMAN

	 	 	 	 	 	 	 	 	 
	 	GRANTOR

	 	 	COLLATERAL
	 	 	LESSOR/BAILEE/CONSIGNEE/WAREHOU
SEMAN	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 

 

 

SCHEDULE 5

INTELLECTUAL PROPERTY

Patents and Patent Licenses

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Grantor

	 	 	Patent
Number
	 	 	Patent Application

Number
	 	 	Date Patent Issued
	 	 	Date Patent Applied	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

Trademarks and Trademark Licenses

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Grantor

	 	 	Trademark

Number
	 	 	Trademark

Application

Number
	 	 	Trademark

Registration

Number
	 	 	Date of

Application
	 	 	Date of

Registration	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

Copyrights

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Grantor

	 	 	Copyright Title
	 	 	Copyright

Application
	 	 	Copyright

Registration Number
	 	 	Copyright

Application Number	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

 

 

SCHEDULE 6

DEPOSITARY AND OTHER DEPOSIT ACCOUNTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	GRANTOR

	 	 	FINANCIAL

INSTITUTION
	 	 	ACCOUNT
 NAME
	 	 	ACCOUNT
NUMBER
	 	 	 CONTACT
INFORMATION	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

 

 

SCHEDULE 7

COMMERCIAL TORT CLAIMS

 

 

ANNEX I

FORM OF DEPOSIT ACCOUNT CONTROL AGREEMENT

______________, 2006

	 	 	 
	[Bank]
	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 
	 
	 	 
	 	 	 

Ladies and Gentlemen:

          1.                                          (“Bank”) is advised that LaSalle Bank National Association, as
agent (“Agent”) for itself and various other Lenders (“Lenders”) is making, or may in the future
make, loans to [Borrower], a                      [corporation /limited liability company/limited partnership]
(“Borrower”), with a place of business at                                         , which loans are secured by
substantially all of the assets of Borrower including, without limitation, the deposit accounts
listed on Exhibit A hereto.

          2. Borrower and Bank hereby confirm to Agent that the deposit accounts listed on Exhibit A
constitute all of the deposit accounts of Borrower at Bank (the “Bank Accounts”). By its signature
below Bank hereby acknowledges the security interest of Lenders in such Bank Accounts and agrees
that it will comply with all instructions from Agent directing disposition of the funds in the Bank
Accounts without further direction from Borrower. Prior to written notice from Agent directing the
disposition of such funds, which notice shall not be given by Agent unless an Event of Default
exists under the documents evidencing the loans to Borrower by Lenders, Borrower may direct and
Bank shall follow the direction of Borrower with respect to the Bank Accounts. Bank further
represents, warrants and covenants that it has not agreed and will not agree to comply with the
instructions of any other party directing disposition of the funds in the Bank Accounts. All fees,
costs, charges and expenses related to the Bank Accounts shall be payable by Borrower and in no
event shall Agent or any Lender be charged therefor. Bank hereby agrees, with knowledge that
Lenders’ financing of Borrower will be in reliance hereon, that it will not exercise or claim any
right of setoff, deduction, banker’s lien or any other claim against any deposits made in the Bank
Accounts; provided, that Bank may exercise such setoff, deduction, banker’s lien and other claims
solely with respect to fees, service charges and expenses related to the administration of such
Bank Accounts.

          3. Bank shall be fully protected in acting only on any order or direction by Agent respecting
the Bank Accounts without making any inquiry whatsoever as to Agent’s right or authority to give
such order or direction or as to the application of any payment made pursuant thereto.

          4. This Agreement may not be terminated nor may the Bank Account be closed until sixty (60)
days following actual receipt by Agent of written notice of the proposed termination or closing.
Any additional deposit accounts opened by Borrower at Bank shall also constitute Bank Accounts
subject to the terms hereof.

[Add signature page.]

 

 

ANNEX II

FORM OF JOINDER TO SECURITY AGREEMENT

     This JOINDER AGREEMENT (this “Agreement”) dated as of [                    ] is executed by the
undersigned for the benefit of LaSalle Bank National Association, as the Administrative Agent (the
“Administrative Agent”) in connection with that certain Security Agreement dated as of
[                    ] among the Grantors party thereto and the Administrative Agent (as amended, restated,
supplemented or modified from time to time, the “Security Agreement”). Capitalized terms
not otherwise defined herein are being used herein as defined in the Security Agreement.

     Each Person signatory hereto is required to execute this Agreement pursuant to Section
7.16 of the Security Agreement.

     In consideration of the premises and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, each signatory hereby agrees as follows:

     1. Each such Person assumes all the obligations of a Grantor under the Security Agreement and
a Co-Borrower under the terms of the Credit Agreement and agrees that such person or entity is a
Grantor and bound as a Grantor under the terms of the Security Agreement and as a Co-Borrower
under the terms of the Credit Agreement, as if it had been an original signatory to such
agreements. In furtherance of the foregoing, such Person hereby assigns, pledges and grants to the
Administrative Agent a security interest in all of its right, title and interest in and to the
Collateral owned thereby to secure the Secured Obligations.

     2. Schedules 1, 2, 3, 4, 5, 6 and 7 of the Security Agreement are hereby amended to add the
information relating to each such Person set out on Schedules 1, 2, 3, 4, 5, 6 and 7 respectively,
hereof. Each such Person hereby makes to the Administrative Agent the representations and
warranties set forth in the Security Agreement applicable to such Person and the applicable
Collateral and confirms that such representations and warranties are true and correct after giving
effect to such amendment to such Schedules.

     3. In furtherance of its obligations under Section 4.2 of the Security Agreement, each
such Person agrees to deliver to the Administrative Agent appropriately complete UCC financing
statements naming such person or entity as debtor and the Administrative Agent as secured party,
and describing its Collateral and such other documentation as the Administrative Agent (or its
successors or assigns) may require to evidence, protect and perfect the Liens created by the
Security Agreement, as modified hereby. Each such Person acknowledges the authorizations given to
the Administrative Agent under the Section 4.10(b) of the Security Agreement and otherwise.

     4. Each such Person’s address for notices under the Security Agreement shall be the address of
the Parent set forth in the Credit Agreement and each such Person hereby appoints the Parent as its
agent to receive notices hereunder.

     5. This Agreement shall be deemed to be part of, and a modification to, the Security Agreement
and shall be governed by all the terms and provisions of the Security Agreement,

 

 

with respect to
the modifications intended to be made to such agreement, which terms are incorporated herein by
reference, are ratified and confirmed and shall continue in full force and effect as valid and
binding agreements of each such person or entity enforceable against such person or entity. Each
such Person hereby waives notice of the Administrative Agent’s acceptance of this Agreement. Each
such Person will deliver an executed original of this Agreement to the Administrative Agent.

[add signature block for each new Grantor]

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