Document:

EX-10.1

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

by and between

CONGRESS FINANCIAL CORPORATION (SOUTHWEST)

as Lender

and

TST IMPRESO, INC. and TST IMPRESO OF CALIFORNIA, INC.

as Borrower

Dated: October 28, 2002,

1

TABLE OF CONTENTS

AMENDED AND RESTATED

LOAN AND SECURITY AGREEMENT

THIS AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT dated as of October 28, 2002, 2002 is
entered into by and between CONGRESS FINANCIAL CORPORATION (SOUTHWEST) a Texas corporation
(“Lender”) and TST/IMPRESO, INC., a Delaware corporation which is the successor-in-interest
by merger to TST/Impreso, Inc., formerly a Texas corporation (“TST”), TST/IMPRESO OF
CALIFORNIA, INC., a California corporation (“TST California” and collectively with TST, the
“Borrower”);

W I T N E S S E T H:

WHEREAS, Borrower (including any predecessor-in-interest to any of them) and Lender entered
into that certain Accounts Financing Agreement [Security Agreement], dated May 17, 1993, as amended
by (i) that certain First Amendment to Accounts Financing Agreement [Security Agreement], dated
January 13, 1994, (ii) that certain Second Amendment to Accounts Financing Agreement [Security
Agreement], dated February 17, 1994, (iii) that certain Third Amendment to Accounts Financing
Agreement [Security Agreement], dated April 18, 1995, (iv) that certain Modification and Assumption
Agreement dated as of April 16, 1996, but effective as of October 3, 1995, (v) that certain Fourth
Amendment to Accounts Financing Agreement [Security Agreement], dated April 17, 1996, (vi) that
certain Fifth Amendment to Accounts Financing Agreement [Security Agreement], dated March 12, 1998,
(vii) that certain Sixth Amendment to Accounts Financing Agreement [Security Agreement], dated as
of February 1, 1999, (viii) that certain Seventh Amendment to Accounts Financing Agreement
[Security Agreement], dated as of March 24, 2000, (ix) that certain Eighth Amendment to Accounts
Financing [Security Agreement], dated as of April 24, 2001, and (x) that certain Ninth Amendment,
Limited Waiver and Consent to Accounts Financing Agreement [Security Agreement] dated as of March
18, 2002 (as amended, together with all riders, supplements, addenda, exhibits and other documents
relating thereto, the “Original Agreement”); and

WHEREAS, Borrower desires that Lender amend, restate and modify, but not extinguish the
Original Agreement in its entirety as hereinafter set forth to consolidate the terms of the
Original Agreement and to modify certain other terms and conditions of the Original Agreement;

NOW, THEREFORE, in consideration of the mutual conditions and agreements set forth herein, and
for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

SECTION 1

DEFINITIONS

For purposes of this Agreement, the following terms shall have the respective meanings given
to them below:

“Accounts” shall mean all present and future rights of Borrower to payment of a monetary
obligation, whether or not earned by performance, which is not evidenced by chattel paper or an
instrument, (a) for property that has been or is to be sold, leased, licensed, assigned, or
otherwise disposed of, (b) for services rendered or to be rendered, (c) for a secondary obligation
incurred or to be incurred, or (d) arising out of the use of a credit or charge card or information
contained on or for use with the card.

“Adjusted Eurodollar Rate” shall mean, with respect to each Interest Period for any Eurodollar
Rate Loan, the rate per annum (rounded upwards, if necessary, to the next one-sixteenth (1/16) of
one (1%) percent) determined by dividing (a) the Eurodollar Rate for such Interest Period by (b) a
percentage equal to: (i) one (1) minus (ii) the Reserve Percentage. For purposes hereof, “Reserve
Percentage” shall mean the reserve percentage, expressed as a decimal, prescribed by any United
States or foreign banking authority for determining the reserve requirement which is or would be
applicable to deposits of United States dollars in a non-United States or an international banking
office of Reference Bank used to fund a Eurodollar Rate Loan or any Eurodollar Rate Loan made with
the proceeds of such deposit, whether or not the Reference Bank actually holds or has made any such
deposits or loans. The Adjusted Eurodollar Rate shall be adjusted on and as of the effective day of
any change in the Reserve Percentage.

“Adjusted Tangible Net Worth” shall mean as to any Person, at any time, in accordance with
GAAP (except as otherwise specifically set forth below), on a consolidated basis for such Person
and its Subsidiaries (if any), the amount equal to the difference between: (a) the aggregate net
book value of all assets of such Person and its Subsidiaries (excluding the value of patents,
trademarks, tradenames, copyrights, licenses, goodwill, leasehold improvements, prepaid assets and
other intangible assets), calculating the book value of inventory for this purpose on a
first-in-first-out basis, after deducting from such book values all appropriate reserves in
accordance with GAAP (including all reserves for doubtful receivables, obsolescence, depreciation
and amortization) and (b) the aggregate amount of the Indebtedness and other liabilities of such
Person and its Subsidiaries (including tax and other proper accruals).

“Affiliate” shall mean, with respect to a specified Person, any other Person which directly or
indirectly through one or more intermediaries controls, or is controlled by, or is under common
control with, such Person, and without limiting the generality of the foregoing, includes (a) any
Person which beneficially owns or holds five (5%) percent or more of any class of the Voting Stock
of such Person or other equity interest in such Person; (b) any Person of which such Person
beneficially owns or holds five (5%) percent or more of any class of the Voting Stock or in which
such Person beneficially owns or holds five percent (5%) or more of any equity interests. For
purposes of this definition, “control” (including, with correlative meanings, the terms
“controlling,” “controlled by” and “under common control with”) when used with respect to any
Person shall mean the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, whether through the ownership of Voting
Stock, by agreement or otherwise. Anything to the contrary herein notwithstanding, for purposes of
this definition Advanced Business Graphics, Inc. shall not be deemed to be an “Affiliate” of
Borrower for so long as the Separate Property Agreement between Marshall Sorokwasz and Kristine
Hinkleman Sorokwasz is in full force and effect and is not subject to any challenge by any party
thereto.

“Blocked Accounts” shall have the meaning set forth in Section 6.3 hereof.

“Borrowing Base” shall mean, at any time, the amount equal to: (a) eighty-five percent (85%)
of the Net Amount of Eligible Accounts, plus (b) the lesser of: (i) the sum of (A)
fifty-five percent (55%) percent of the Value of Eligible Inventory, or (ii) $21,000,000,
less (c) any Reserves. The amounts of Eligible Inventory shall, at Lender’s option, be
determined based on the lesser of the amount of Inventory set forth in the general ledger of
Borrower or the perpetual inventory record maintained by Borrower.

“Business Day” shall mean any day other than a Saturday, Sunday, or other day on which
commercial banks are authorized or required to close under the laws of the State of New York or the
State of North Carolina, and a day on which the Reference Bank and Lender are open for the
transaction of business, except that if a determination of a Business Day shall relate to any
Eurodollar Rate Loans, the term Business Day shall also exclude any day on which banks are closed
for dealings in dollar deposits in the London interbank market or other applicable Eurodollar Rate
market.

“Capital Leases” shall mean, as applied to any Person, any lease of (or any agreement
conveying the right to use) any property (whether real, personal or mixed) by such Person as lessee
which in accordance with GAAP, is required to be reflected as a liability on the balance sheet of
such Person.

“Capital Stock” shall mean, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated) of such Person’s capital stock,
partnership interests or limited liability company interests at any time outstanding, and any and
all rights, warrants or options exchangeable for or convertible into such capital stock or other
interests (but excluding any debt security that is exchangeable for or convertible into such
capital stock).

“Cash Equivalents” shall mean, at any time, (a) any evidence of Indebtedness with a maturity
date of ninety (90) days or less issued or directly and fully guaranteed or insured by the United
States of America of any agency or instrumentality thereof; provided, that, the
full faith and credit of the United States of America is pledged in support thereof; (b)
certificates of deposit or bankers’ acceptances with a maturity of ninety (90) days or less of any
financial institution that is a member of the Federal Reserve System having combined capital and
surplus and undivided profits of not less than $250,000,000; (c) commercial paper (including
variable rate demand notes) with a maturity of ninety (90) days or less issued by a corporation
(except an Affiliate of Borrower) organized under the laws of any State of the United States of
America or the District of Columbia and rated at least A-1 by Standard & Poor’s Ratings Service, a
division of The McGraw-Hill Companies, Inc. or at least P-1 by Moody’s Investors Service, Inc.; (d)
repurchase obligations with a term of not more than thirty (30) days for underlying securities of
the types described in clause (a) above entered into with any financial institution having combined
capital and surplus and undivided profits of not less than $250,000,000; (e) repurchase agreements
and reverse repurchase agreements relating to marketable direct obligations issued or
unconditionally guaranteed by the United States of America or issued by any governmental agency
thereof and backed by the full faith and credit to the United States of America, in each case
maturing within ninety (90) days or less from the date of acquisition; provided,
that, the ,terms of such agreements comply with the guidelines set forth in the Federal
Financial Agreements of Depository Institutions with Securities Dealers and Others, as adopted by
the Comptroller of the Currency on October 31, 1985; and (f) investments in money market funds and
mutual funds which invest substantially all of their assets in securities of the types described in
clauses (a) through (e) above.

“Change of Control” shall mean (a) the transfer (in one transaction or a series of
transactions) of all or substantially all of the assets of Borrower to any Person or group (as such
term is used in Section 13(d)(3) of the Exchange Act); (b) the liquidation or dissolution of
Borrower or the adoption of a plan by the stockholders of Borrower relating to the dissolution or
liquidation of Borrower; (c) the acquisition by any Person or group (as such term is used in
Section 13(d)(3) of the Exchange Act), except for one or more Permitted Holder, of beneficial
ownership, directly or indirectly, of fifty (50%) percent or more of the voting power of the total
outstanding Voting Stock of Borrower or the Board of Directors of Borrower; (d) during any period
of two (2) consecutive years, individuals who at the beginning of such period constituted the Board
of Directors of Borrower (together with any new directors who have been appointed by any Permitted
Holder, or whose nomination for election by the stockholders of Borrower, as the case may be, was
approved by a vote of at least sixty-six and two-thirds (66 2/3%) percent of the directors then
still in office who were either directors at the beginning of such period or whose election or
nomination for election was previously so approved) cease for any reason to constitute a majority
of the Board of Directors of Borrower then still in office; or (e) the failure of the Permitted
Holder to own directly or indirectly one hundred (100%) percent of the voting power of the total
outstanding Voting Stock of Borrower.

“Code” shall mean the Internal Revenue Code of 1986, as the same now exists or may from time
to time hereafter be amended, modified, recodified or supplemented, together with all rules,
regulations and interpretations thereunder or related thereto.

“Collateral” shall have the meaning set forth in Section 5 hereof.

“Collateral Access Agreement” shall mean an agreement in writing, in form and substance
satisfactory to Lender, from any lessor of premises to Borrower, or any other person to whom any
Collateral (including Inventory, Equipment, bills of lading or other documents of title) is
consigned or who has custody, control or possession of any such Collateral or is otherwise the
owner or operator of any premises on which any of such Collateral is located, pursuant to which
such lessor, consignee or other person, inter alia, acknowledges the first priority
security interest of Lender in such Collateral, agrees to waive any and all claims such lessor,
consignee or other person may, at any time, have against such Collateral, whether for processing,
storage or otherwise, and agrees to permit Lender access to, and the right to remain on, the
premises of such lessor, consignee or other person so as to exercise Lender’s rights and remedies
and otherwise .deal with such Collateral and, in the case of any consignee or other person who at
any time has custody, control or possession of any Collateral, acknowledges that it holds and will
hold possession of the Collateral for the benefit of Lender and agrees to follow all instructions
of Lender with respect thereto.

“Default” shall mean an act, condition or event which with notice or passage of time or both
would constitute an Event of Default.

“Deposit Account Control Agreement” shall mean an agreement in writing, in form and substance
satisfactory to Lender, by and among Lender, Borrower and any bank at which any deposit account of
Borrower is at any time maintained which provides that such bank will comply with instructions
originated by Lender directing disposition of the funds in the deposit account without further
consent by Borrower and such other terms and conditions as Lender may require, including as to any
such agreement with respect to any Blocked Account, providing that all items received or deposited
in the Blocked Accounts are the property of Lender, that the bank has no lien upon, or right to
setoff against, the Blocked Accounts, the items received for deposit therein, or the funds from
time to time on deposit therein and that the bank will wire, or otherwise transfer, in immediately
available funds, on a daily basis to the Lender Payment Account all funds received or deposited
into the Blocked Accounts.

“Eligible Accounts” shall mean Accounts created by Borrower which are and continue to be
acceptable to Lender based on the criteria set forth below. In general, Accounts shall be Eligible
Accounts if:

(a) such Accounts arise from the actual and bona fide sale and delivery of
goods by Borrower or rendition of services by Borrower in the ordinary course of its business which
transactions are completed in accordance with the terms and provisions contained in any documents
related thereto;

(b) such Accounts are not unpaid more than ninety (90) days after the date of the original
invoice for them or more than sixty (60) days after the due date for them;

(c) such Accounts comply with the terms and conditions contained in Section 7.2(c) of this
Agreement;

(d) such Accounts do not arise from sales on consignment, guaranteed sale, sale and return,
sale on approval, or other terms under which payment by the account debtor may be conditional or
contingent;

(e) the chief executive office of the account debtor with respect to such Accounts is located
in the United States of America or Canada (provided, that, at any time promptly
upon Lender’s request, Borrower shall execute and deliver, or cause to be executed and delivered,
such other agreements, documents and instruments as may be required by Lender to perfect the
security interests of Lender in those Accounts of an account debtor with its chief executive office
or principal place of business in Canada in accordance with the applicable laws of the Province of
Canada in which such chief executive office or principal place of business is located and take or
cause to be taken such other and further actions as Lender may request to enable Lender as secured
party with respect thereto to collect such Accounts under the applicable Federal or Provincial laws
of Canada) or, at Lender’s option, if the chief executive office and principal place of business of
the account debtor with respect to such Accounts is located other than in the United States of
America or Canada, then if either: (i) the account debtor has delivered to Borrower an irrevocable
letter of credit issued or confirmed by a bank satisfactory to Lender and payable only in the
United States of America and in U.S. dollars, sufficient to cover such Account, in form arid
substance satisfactory to Lender and if required by Lender, the original of such letter of credit
has been delivered to Lender or Lender’s agent and Borrower has complied with the terms of Section
5.2(f) hereof with respect to the assignment of the proceeds of such letter of credit to Lender or
naming Lender as transferee beneficiary thereunder, as Lender may specify, or (ii) such Account is
subject to credit insurance payable to Lender issued by an insurer and on terms and in an amount
acceptable to Lender, or (iii) such Account is otherwise acceptable in all respects to Lender
(subject to such lending formula with respect thereto as Lender may determine);

(f) such Accounts do not consist of progress billings (such that the obligation of the account
debtors with respect to such Accounts is conditioned upon Borrower’s satisfactory completion of any
further performance under the agreement giving rise thereto), bill and hold invoices or retainage
invoices, except as to bill and hold invoices, if Lender shall have received an agreement in
writing from the account debtor, in form and substance satisfactory to Lender, confirming the
unconditional obligation of the account debtor to take the goods related thereto and pay such
invoice;

(g) the account debtor with respect to such Accounts has not asserted a counterclaim, defense
or dispute and does not have, and does not engage in transactions which may give rise to any right
of setoff or recoupment against such Accounts (but the portion of the Accounts of such account
debtor in excess of the amount at any time and from time to time owed by Borrower to such account
debtor or claimed owed by such account debtor may be deemed Eligible Accounts);

(h) there are no facts, events or occurrences which would impair the validity, enforceability
or collectibility of such Accounts or reduce the amount payable or delay payment thereunder;

(i) such Accounts are subject to the first priority, valid and perfected security interest of
Lender and any goods giving rise thereto are not, and were not at the time of the sale thereof,
subject to any liens except those permitted in this Agreement;

(j) neither the account debtor nor any officer or employee of the account debtor with respect
to such Accounts, is an officer, employee, agent or other Affiliate of Borrower;

(k) the account debtors with respect to such Accounts are not any foreign government, the
United States of America, any State, political subdivision, department, agency or instrumentality
thereof, unless, if the account debtor is the United States of America, any State, political
subdivision, department, agency or instrumentality thereof, upon Lender’s request, the Federal
Assignment of Claims Act of 1940, as amended or any similar State or local law, if applicable, has
been complied with in a manner satisfactory to Lender;

(l) there are no proceedings or actions which are threatened or pending against the account
debtors with respect to such Accounts which might result in any material adverse change in any such
account debtor’s financial condition (including, without limitation, any bankruptcy, dissolution,
liquidation, reorganization or similar proceeding);

(m) such Accounts are not evidenced by or arising under any instrument or chattel paper;

(n) such Accounts of a single account debtor or its affiliates do not constitute more than
thirty percent (30%)of all otherwise Eligible Accounts (but the portion of the Accounts not in
excess of such percentage may be deemed Eligible Accounts);

(o) such Accounts are not owed by an account debtor who has Accounts unpaid more ninety (90)
days after the original invoice date for them which constitute more than fifty percent (50%) of the
total Accounts of such account debtor;

(p) the account debtor is not located in a state requiring the filing of a “Notice of Business
Activities Report” or similar report in order to permit Borrower to seek judicial enforcement in
such State of payment of such Account, unless Borrower has qualified to do business in such state
or has filed a Notice of Business Activities Report or equivalent report for the then current year
or such failure to file and inability to seek judicial enforcement is capable of being remedied
without any material delay or material cost;

(q) such Accounts are owed by account debtors whose total indebtedness to Borrower does not
exceed the credit limit with respect to such account debtors as determined by Borrower from time to
time to the extent a credit limit as to any account debtor is established consistent with the
current practices of such Borrower as of the date hereof and such credit limit is acceptable to
Lender (but the portion of the Accounts not in excess of such credit limit may be deemed Eligible
Accounts); and

(r) such Accounts are owed by account debtors deemed creditworthy at all times by Lender in
good faith.

The criteria for Eligible Accounts set forth above may only be changed and any new criteria
for Eligible Accounts may only be established by Lender in good faith based on either: (i) an
event, condition or other circumstance arising after the date hereof, or (ii) an event, condition
or other circumstance existing on the date hereof to the extent Lender has no written notice
thereof from Borrower prior to the date hereof, in either case under clause (i) or (ii) which
adversely affects or could reasonably be expected to adversely affect the Accounts in the good
faith determination of Lender. Any Accounts which are not Eligible Accounts shall nevertheless be
part of the Collateral.

“Eligible Inventory” shall mean Inventory consisting of finished goods held for resale in the
ordinary course of the business of Borrower and raw materials for such finished goods, in each case
which are acceptable to Lender based on the criteria set forth below. In general, Eligible
Inventory shall not include (a) work-in-process; (b) components which are not part of finished
goods; (c) spare parts for equipment; (d) packaging and shipping materials; (e) supplies used or
consumed in Borrower’s business; (f) Inventory at premises other than those owned and controlled by
Borrower, except any Inventory which would otherwise be deemed Eligible Inventory that is
not located at premises owned and operated by Borrower may nevertheless be considered Eligible
Inventory: (i) as to locations which are leased by Borrower if Lender shall have received a
Collateral Access Agreement from the owner and lessor of such location, duly authorized, executed
and delivered by such owner and lessor or if Lender shall not have received such Collateral Access
Agreement (or Lender shall determine to accept a Collateral Access Agreement which does not include
all required provisions or provisions in the form otherwise required by Lender), Lender may, at is
option, nevertheless consider Inventory at such location to be Eligible Inventory to the extent
Lender shall have established such Reserves in respect of amounts at any time payable by Borrower
to the owner and lessor thereof as Lender shall determine, and (ii) as to locations owned and
operated by a third person, if Lender shall have received a Collateral Access Agreement from such
owner and operator with respect to such location, duly authorized, executed and delivered by such
owner and operator or if Lender shall not have received such Collateral Access Agreement (or Lender
shall determine to accept a Collateral Access Agreement which does not include all required
provisions or provisions in the form otherwise required by Lender), Lender may, at its option,
nevertheless consider Inventory at such location to be Eligible Inventory to the extent Lender
shall have established such Reserves in respect of amounts at any time payable by Borrower to the
owner and operator thereof as Lender shall determine, and, in addition, as to locations owned and
operated by a third person, Lender shall have received, if required by Lender: (A) UCC-1 financing
statements between the owner and operator, as consignee or bailee and Borrower, as consignor or
other bailee, in form and substance satisfactory to Lender, which are duly assigned to Lender and
(B) a written notice to any lender to the owner and operator of the first priority security
interest in such Inventory of Lender; (g) Inventory subject to a security interest or lien in favor
of any person other than Lender except those permitted in this Agreement (but without limiting the
right of Lender to establish any Reserves with respect to amounts secured by such security interest
or lien in favor of any Person even if permitted herein); (h) bill and hold goods; (i)
unserviceable, obsolete or slow moving Inventory; (j) Inventory which is not subject to the first
priority, valid and perfected security interest of Lender; (k) returned, damaged and/or defective
Inventory; (1) Inventory purchased or sold on consignment and (m) Inventory located outside the
United States of America. The criteria for Eligible Inventory set forth above may only be changed
and any new criteria for Eligible Inventory may only be established by Lender in good faith based
on either: (i) an event, condition or other circumstance arising after the date hereof, or (ii) an
event, condition or other circumstance existing on the date hereof to the extent Lender has no
written notice thereof from Borrower prior to the date hereof, in either case under clause (i) or
(ii) which adversely affects or could reasonably be expected to adversely affect the Inventory in
the good faith determination of Lender. Any Inventory which is not Eligible Inventory shall
nevertheless be part of the Collateral.

“Environmental Laws” shall mean all foreign, Federal, State and local laws (including common
law), legislation, rules, codes, licenses, permits (including any conditions imposed therein),
authorizations, judicial or administrative decisions, injunctions or agreements between Borrower
and any Governmental Authority, (a) relating to pollution and the protection, preservation or
restoration of the environment (including air, water vapor, surface water, ground water, drinking
water, drinking water supply, surface land, subsurface land, plant and animal life or any other
natural resource), or to human health or safety, (b) relating to the exposure to, or the use,
storage, recycling, treatment, generation, manufacture, processing, distribution, transportation,
handling, labeling, production, release or disposal, or threatened release, of Hazardous Materials,
or (c) relating to all laws with regard to record keeping, notification, disclosure and reporting
requirements respecting Hazardous Materials. The term “Environmental Laws” includes (i) the
Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Federal
Superfund Amendments and Reauthorization Act, the Federal Water Pollution Control Act of 1972, the
Federal Clean Water Act, the Federal Clean Air Act, the Federal Resource Conservation and Recovery
Act of 1976 (including the Hazardous and Solid Waste Amendments thereto), the Federal Solid Waste
Disposal and the Federal Toxic Substances Control Act, the Federal Insecticide, Fungicide and
Rodenticide Act, and the Federal Safe Drinking Water Act of 1974, (ii) applicable state
counterparts to such laws, and (iii) any common law or equitable doctrine that may impose liability
or obligations for injuries or damages due to, or threatened as a result of, the presence of or
exposure to any Hazardous Materials.

“Equipment” shall mean all of Borrower’s now owned and hereafter acquired equipment wherever
located, including machinery, data processing and computer equipment and computer hardware and
software, whether owned or licensed, and including embedded software, vehicles, tools, furniture,
fixtures, all attachments, accessions and property now or hereafter affixed thereto or used in
connection therewith, and substitutions and replacements thereof, wherever located.

“ERISA” shall mean the United States Employee Retirement Income Security Act of 1974, together
with all rules, regulations and interpretations thereunder or related thereto.

“ERISA Affiliate” shall mean any person required to be aggregated with Borrower or any of its
Subsidiaries under Sections 414(b), 414(c), 414(m) or 414(o) of the Code.

“ERISA Event” shall mean (a) any “reportable event,” as defined in Section 4043 of ERISA or
the regulations issued thereunder, with respect to a Plan; (b) the adoption of any amendment to a
Plan that would require the provision of security pursuant to Section 401(a)(29) of the Code or
Section 307 of ERISA; (c) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived;
(d) the filing pursuant to Section 412 of the Code or Section 303(d) of ERISA of an application for
a waiver of the minimum funding standard with respect to any Plan; (e) the occurrence of a
“prohibited transaction” with respect to which Borrower or any of its Subsidiaries is a
“disqualified person” (within the meaning of Section 4975 of the Code) or ,with respect to which
Borrower or any of its Subsidiaries could otherwise be liable; (f) a complete or partial withdrawal
by the Borrower or any ERISA Affiliate from a Multiemployer Plan or cessation of operations which
is treated as such a withdrawal or notification that a Multiemployer Plan is in reorganization; (g)
the filing of a notice of intent to terminate, the treatment of a Plan amendment as a termination
under Section 4041 or 4041A of ERISA, or the commencement of proceedings by the Pension Benefit
Guaranty Corporation to terminate a Plan; (h) an event or condition which might reasonably be
expected to constitute grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Plan; (i) the imposition of any liability under Title
IV of ERISA, other than the Pension Benefit Guaranty Corporation premiums due but not delinquent
under Section 4007 of ERISA, upon Borrower or any ERISA Affiliate; and (j) any other event or
condition with respect to a Plan including any Plan subject to Title IV of ERISA maintained, or
contributed to, by any ERISA Affiliate that could reasonably be expected to result in liability of
Borrower in excess of $250,000.

“Eurodollar Rate” shall mean with respect to the Interest Period for a Eurodollar Rate Loan,
the interest rate per annum equal to the arithmetic average of the rates of interest per annum
(rounded upwards, if necessary, to the next one-sixteenth (1/16) of one (1%) percent) at which
Reference Bank is offered deposits of United States dollars in the London interbank market (or
other Eurodollar Rate market selected by Borrower and approved by Lender) on or about 9:00 a.m.
(New York time) two (2) Business Days prior to the commencement of such Interest Period in amounts
substantially equal to the principal amount of the Eurodollar Rate Loans requested by and available
to Borrower in accordance with this Agreement, with a maturity of comparable duration to the
Interest Period selected by Borrower.

“Eurodollar Rate Loans” shall mean any Loans or portion thereof on which interest is payable
based on the Adjusted Eurodollar Rate in accordance with the terms hereof.

“Event of Default” shall mean the occurrence or existence of any event or condition described
in Section 10.1 hereof.

“Exchange Act” shall mean the Securities Exchange Act of 1934, together with all rules,
regulations and interpretations thereunder or related thereto.

“Financing Agreements” shall mean, collectively, this Agreement and all notes, guarantees,
security agreements deposit account control agreements, investment property, control agreements,
intercreditor agreements, and other agreements, documents and instruments now or at any time
hereafter executed and/or delivered by Borrower or any Obligor in connection with this Agreement.

“GAAP” shall mean generally accepted accounting principles in the United States of America as
in effect from time to time as set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and the statements and
pronouncements of the Financial Accounting Standards Board which are applicable to the
circumstances as of the date of determination consistently applied, except that, for purposes of
Sections 9.17 hereof, GAAP shall be determined on the basis of such principles in effect on the
date hereof and consistent with those used in the preparation of the most recent audited financial
statements delivered to Lender prior to the date hereof.

“Governmental Authority” shall mean any nation or government, any state, province, or other
political subdivision thereof, any central bank (or similar monetary or regulatory authority)
thereof, any entity exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government, and any corporation or other entity owned or controlled,
through stock or capital ownership or otherwise, by any of the foregoing.

“Hazardous Materials” shall mean any hazardous, toxic or dangerous substances, materials and
wastes, including hydrocarbons (including naturally occurring or man made petroleum and
hydrocarbons), flammable explosives, asbestos, urea formaldehyde insulation, radioactive materials,
biological substances, polychlorinated biphenyls, pesticides, herbicides and any other kind and/or
type of pollutants or contaminants (including materials which include hazardous constituents),
sewage, sludge, industrial slag, solvents and/or any other similar substances, materials, or wastes
and including any other substances, materials or wastes that are or become regulated under any
Environmental Law (including any that are or become classified as hazardous or toxic under any
Environmental Law).

“Indebtedness” shall mean, with respect to any Person, any liability, whether or not
contingent, (a) in respect of borrowed money (whether or not the recourse of the lender is to the
whole of the assets of such Person or only to a portion thereof) or evidenced by bonds, notes,
debentures or similar instruments; (b) representing the balance deferred and unpaid of the purchase
price of any property or services (except any such balance that constitutes an account payable to a
trade creditor (whether or not an Affiliate) created, incurred, assumed or guaranteed by such
Person in the ordinary course of business of such Person in connection with obtaining goods,
materials or services that is not overdue by more than ninety (90) days, unless the trade payable
is being contested in good faith); (c) all obligations as lessee under leases which have been, or
should be, in accordance with GAAP recorded as Capital Leases; (d) any contractual obligation,
contingent or otherwise, of such Person to pay or be liable for the payment of any indebtedness
described in this definition of another Person, including, without limitation, any such
indebtedness, directly or indirectly guaranteed, or any agreement to purchase, repurchase, or
otherwise acquire such indebtedness, obligation or liability or any security therefore, or to
provide funds for the payment or discharge thereof, or to maintain solvency, assets, level of
income, or other financial condition; (e) all obligations with respect to redeemable stock and
redemption or repurchase obligations under any Capital Stock or other equity securities issued by
such Person; (f) all reimbursement obligations and other liabilities of such Person with respect to
surety bonds (whether bid, performance or otherwise), letters of credit, banker’s acceptances or
similar documents or instruments issued for such Person’s account; (g) all indebtedness of such
Person in respect of indebtedness of another Person for borrowed money or indebtedness of another
Person otherwise described in this definition which is secured by any consensual lien, security
interest, collateral assignment, conditional sale, mortgage, deed of trust, or other encumbrance on
any asset of such Person, whether or not such obligations, liabilities or indebtedness are assumed
by or are a personal liability of such Person, all as of such time; (h) all obligations,
liabilities and indebtedness of such Person (marked to market) arising under swap agreements, cap
agreements and collar agreements and other agreements or arrangements designed to protect such
person against fluctuations in interest rates or currency or commodity values; and (i) all
obligations owed by such Person under License Agreements with respect to non-refundable, advance or
minimum guarantee royalty payments.

“Information Certificate” shall mean the Information Certificate of Borrower constituting
Exhibit A hereto containing material information with respect to Borrower, its businesses and
assets provided by or on behalf of Borrower to Lender in connection with the preparation of this
Agreement and the other Financing Agreements and the financing arrangements provided for herein.

“Intellectual Property” shall mean Borrower’s now owned and hereafter arising or acquired:
patents, patent rights, patent applications, copyrights, works which are the subject matter of
copyrights, copyright registrations, trademarks, trade names, trade styles, trademark and service
mark applications, and licenses and rights to use any of the foregoing; all extensions, renewals,
reissues, divisions, continuations, and continuations in part of any of the foregoing; all rights
to sue for past, present and future infringement of any of the foregoing; inventions, trade
secrets, formulae, processes, compounds, drawings, designs, blueprints, surveys, reports, manuals,
and operating standards; goodwill (including any goodwill associated with any trademark or the
license of any trademark); customer and other lists in whatever form maintained; and trade secret
rights, copyright rights, rights in works of authorship, domain names and domain name
registrations; software and contract rights relating to computer software programs, in whatever
form created or maintained.

“Interest Rate” shall mean, as to Prime Rate Loans, a rate equal to one-quarter of one percent
(0.25%) per annum in excess of the Prime Rate and, as to Eurodollar Rate Loans, a rate of two and
three quarters percent (2.75%) per annum in excess of the Adjusted Eurodollar Rate (based on the
Eurodollar Rate applicable for the Interest Period selected by Borrower as in effect three (3)
Business Days after the date of receipt by Lender of the request of Borrower for such Eurodollar
Rate Loans in accordance with the terms hereof, whether such rate is higher or lower than any rate
previously quoted to Borrower); provided, that, notwithstanding anything to the contrary contained
herein, the Interest Rate shall mean the rate of two and one-quarter percent (2.25 %) per annum in
excess of the Prime Rate as to Prime Rate Loans and the rate of four and three-quarters percent
(4.75%) per annum in excess of the Adjusted Eurodollar Rate as to Eurodollar Rate Loans, at
Lender’s option, without notice, (a) either (i) for the period on and after the date of termination
or non-renewal hereof until such time as all Obligations are indefeasibly paid and satisfied in
full in immediately available funds, or (ii) for the period from and after the date of the
occurrence of any Event of Default, and for so long as such Event of Default is continuing as
determined by Lender and (b) on the Loans at any time outstanding in excess of the amounts
available to Borrower under Section 2 (whether or not such excess(es) arise or are made with or
without Lender’s knowledge or consent and whether made before or after an Event of Default).

“Inventory” shall mean all of Borrower’s now owned and hereafter existing or acquired goods,
wherever located, which (a) are leased by Borrower as lessor; (b) are held by Borrower for sale or
lease or to be furnished under a contract of service; (c) are furnished by Borrower under a
contract of service; or (d) consist of raw materials, work in process, finished goods or materials
used or consumed in its business.

“Inventory Loan Limit” shall mean the amount equal to $21,000,000.

“Investment Property Control Agreement” shall mean an agreement in writing, in form and
substance satisfactory to Lender, by and among Lender, Borrower and any securities intermediary,
commodity intermediary or other person who has custody, control or possession of any investment
property of Borrower acknowledging that such securities intermediary, commodity intermediary or
other person has custody, control or possession of such investment property on behalf of Lender,
that it will comply with entitlement orders originated by Lender with respect to such investment
property, or other instructions of Lender, or (as the case may be) apply any value distributed on
account of any commodity contract as directed by Lender, in each case, without the further consent
of Borrower and including such other terms and conditions as Lender may require.

“Lender Payment Account” shall mean account no. 325-007-349 of Lender at Chase Manhattan Bank,
4 New York Plaza, New York, NY, ABA 021-000-021, or such other account of Lender as Lender may from
time to time designate to Borrower as the “Lender Payment Account” for purposes of this Agreement.

“License Agreements” shall have the meaning set forth in Section 8.11 hereof.

“Loans” shall mean the loans now or hereafter made by Lender to or for the benefit of Borrower
on a revolving basis (involving advances, repayments and readvances) as set forth in Section 2.1
hereof.

“Material Adverse Effect” shall mean a material adverse effect on (a) the financial condition,
business, performance or operations of Borrower, or (b) the legality, validity or enforceability of
this Agreement or any of the other Financing Agreements; (c) the legality, validity,
enforceability, perfection or priority of the security interests and liens of Lender upon the
Collateral; (d) the Collateral or its value; (e) the ability of Borrower to repay the Obligations
or of Borrower to perform its obligations under this Agreement or any of the other Financing
Agreements as and when to be performed; or (f) the ability of Lender to enforce the Obligations or
realize upon the Collateral or otherwise with respect to the rights and remedies of Lender under
this Agreement or any of the other Financing Agreements.

“Material Contract” shall mean (a) any contract or other agreement (other than the Financing
Agreements), written or oral, of Borrower involving monetary liability of or to any Person in an
amount in excess of $500,000 in any fiscal year and (b) any other contract or other agreement
(other than the Financing Agreements), whether written or oral, to which Borrower is a party as to
which the breach, nonperformance, cancellation or failure to renew by any party thereto would have
a material adverse effect on the business, assets, condition (financial or otherwise) or results of
operations or prospects of Borrower or the validity or enforceability of this Agreement, any of the
other Financing Agreements, or any of the rights and remedies of Lender hereunder or thereunder.

“Maximum Credit” shall mean the amount of $25,000,000.

“Multiemployer Plan” shall mean a “multi-employer plan” as defined in Section 4001(a)(3) of
ERISA which is or was at any time during the current year or the immediately preceding six (6)
years contributed to by Borrower or any ERISA Affiliate.

“Net Amount of Eligible Accounts” shall mean the gross amount of Eligible Accounts less (a)
sales, excise or similar taxes included in the amount thereof and (b) returns, discounts, claims,
credits and allowances of any nature at any time issued, owing, granted, outstanding, available or
claimed with respect thereto.

“Obligations” shall mean any and all Loans and all other obligations, liabilities and
indebtedness of every kind; nature and description owing by Borrower to Lender and/or its
affiliates, including principal, interest, charges, fees, costs and expenses, however evidenced,
whether as principal, surety, endorser, guarantor or otherwise, whether arising under this
Agreement or otherwise, whether now existing or hereafter arising, whether arising before, during
or after the initial or any renewal term of this Agreement or after the commencement of any case
with respect to Borrower under the United States Bankruptcy Code or any similar statute (including
the payment of interest and other amounts which would accrue and become due but for the
commencement of such case, whether or not such amounts are allowed or allowable in whole or in part
in such case), whether direct or indirect, absolute or contingent, joint or several, due or not
due, primary or secondary, liquidated or unliquidated, secured or unsecured, and however acquired
by Lender.

“Obligor” shall mean any guarantor, endorser, acceptor, surety or other person liable on or
with respect to the Obligations or who is the owner of any property which is security for the
Obligations, other than Borrower.

“Permitted Holder” shall mean Impreso, Inc. and its respective successors and assigns.

“Person” or “person” shall mean any individual, sole proprietorship, partnership, corporation
(including any corporation which elects subchapter S status under the Code), limited liability
company; limited liability partnership, business trust, unincorporated association, joint stock
corporation, trust, joint venture or other entity or any government or any agency or
instrumentality or political subdivision thereof.

“Plan” means an employee benefit plan (as defined in Section 3(3) of ERISA) which Borrower
sponsors, maintains, or to which it makes, is making, or is obligated to make contributions, or in
the case of a Multiemployer Plan has made contributions at any time during the immediately
preceding six (6) plan years.

“Prime Rate” shall mean the rate from time to time publicly announced by First Union National
Bank, or its successors, as its prime rate, whether or not such announced rate is the best rate
available at such bank.

“Prime Rate Loans” shall mean any Loans or portion thereof on which interest is payable based
on the Prime Rate in accordance with the terms thereof.

“Provision for Taxes” shall mean an amount equal to all taxes imposed on or measured by net
income, whether Federal, State, Provincial, county or local, and whether foreign or domestic, that
are paid or payable by any Person in respect of any period in accordance with GAAP.

“Real Property” shall mean all now owned and hereafter acquired real property of Borrower,
including leasehold interests, together with all buildings, structures, and other improvements
located thereon and all licenses, easements and appurtenances relating thereto, wherever located.

“Receivables” shall mean all of the following now owned or hereafter arising or acquired
property of Borrower: (a) all Accounts; (b) all amounts at any time payable to Borrower in respect
of the sale or other disposition by Borrower of any Account or other obligation for the payment of
money; (c) all interest, fees, late charges, penalties, collection fees and other amounts due or to
become due or otherwise payable in connection with any Account; (d) all payment intangibles of
Borrower; (e) letters of credit, indemnities, guarantees, security or other deposits and proceeds
thereof issued payable to Borrower or otherwise in favor of or delivered to Borrower in connection
with any Account; or (f) all and other accounts contract rights, chattel paper, instruments, notes,
general intangibles and other forms of obligations owing to Borrower, whether from the sale and
lease of goods or other property, licensing of any property (including Intellectual Property or
other general intangibles), rendition of services or from loans or advances by Borrower or to or
for the benefit of any third person (including loans or advances to any Affiliates or Subsidiaries
of Borrower) or otherwise associated with any Accounts, Inventory or general intangibles of
Borrower (including, without limitation, choses in action, causes of action, tax refunds, tax
refund claims, any funds which may become payable to Borrower in connection with the termination of
any Plan or other employee benefit plan and any other amounts payable to Borrower from any Plan or
other employee benefit plan, rights and claims against carriers and shippers, rights to
indemnification, business, interruption insurance and proceeds thereof, casualty or any similar
types of insurance and any proceeds thereof and proceeds of insurance covering the lives of
employees on which Borrower is beneficiary).

“Records” shall mean all of Borrower’s present and future books of account of every kind or
nature, purchase and sale agreements, invoices, ledger cards, bills of lading and other shipping
evidence, statements, correspondence, memoranda, credit files and other data relating to the
Collateral or any account debtor, together with the tapes, disks, diskettes and other data and
software storage media and devices, file cabinets or containers in or on which the foregoing are
stored (including any rights of Borrower with respect to the foregoing maintained with or by any
other person).

“Reference Bank” shall mean First Union National Bank, or such other bank as Lender may from
time to time designate.

“Renewal Date” shall the meaning set forth in Section 12.1 hereof.

“Reserves” shall mean as of any date of determination, such amounts as Lender may from time to
time establish and revise in good faith reducing the amount of Loans that would otherwise be
available to Borrower under the lending formulas) provided for herein: (a) to reflect events,
conditions, contingencies or risks which, as determined by Lender in good faith, adversely affect,
or would have a reasonable likelihood of adversely affecting, either (i) the Collateral or any
other property which is security for the Obligations or its value, (ii) the assets, business or
prospects of Borrower or any Obligor or (iii) the security interests and other rights of Lender in
the Collateral (including the enforceability, perfection and priority thereof), or (b) to reflect
Lender’s good faith belief that any collateral report or financial information furnished by or on
behalf of Borrower or any Obligor to Lender is or may have been incomplete, inaccurate or
misleading in any material respect, or (c) in respect of any state of facts which Lender determines
in good faith constitutes a Default or an Event of Default. To the extent Lender may revise the
lending formulas used to determine the Borrowing Base or establish new criteria or revise existing
criteria for Eligible Accounts or Eligible Inventory so as to address any circumstances, condition,
event or contingency in a manner satisfactory to Lender, Lender shall not establish a Reserve for
the same purpose. The amount of any Reserve established by Lender shall have a reasonable
relationship to the event, condition or other matter which is the basis for such reserve as
determined by Lender in good faith.

“Solvent” shall mean, at any time with respect to any Person, that at such time such Person
(a) is able to pay its debts as they mature and has (and has a reasonable basis to believe it will
continue to have) sufficient capital (and not unreasonably small capital) to carry on its business
consistent with its practices as of the date hereof, and (b) the assets and properties of such
Person at a fair valuation (and including as assets for this purpose at a fair valuation all rights
of subrogation, contribution or indemnification arising pursuant to any guarantees given by such
Person) are greater than the Indebtedness of such Person, and including subordinated and contingent
liabilities computed at the amount which, such person has a reasonable basis to believe, represents
an amount which can reasonably be expected to become an actual or matured liability (and including
as to contingent liabilities arising pursuant to any guarantee the face amount of such liability as
reduced to reflect the probability of it becoming a matured liability).

“Subsidiary” or “subsidiary” shall mean, with respect to any Person, any corporation, limited
liability company, limited liability partnership or other limited or general partnership, trust,
association or other business entity of which an aggregate of at least a majority of the
outstanding Capital Stock or other interests entitled to vote in the election of the board of
directors of such corporation (irrespective of whether, at the time, Capital Stock of any other
class or classes of such corporation shall have or might have voting power by reason of the
happening of any contingency), managers, trustees or other controlling persons, or an equivalent
controlling interest therein, of such Person is, at the time, directly or indirectly, owned by such
Person and/or one or more subsidiaries of such Person.

“UCC” shall mean the Uniform Commercial Code as in effect in the State of Texas, and any
successor statute, as in effect from time to time (except that terms used herein which are defined
in the Uniform Commercial Code as in effect in the State of on the date hereof shall continue to
have the same meaning notwithstanding any replacement or amendment of such statute except as Lender
may otherwise determine.

“Value” shall mean, as determined by Lender in good faith, with respect to Inventory, the
lower of (a) cost computed on a first-in first-out basis in accordance with GAAP or (b) market
value provided, that, for purposes of the calculation of the Borrowing Base, (i)
the Value of the Inventory shall not include: (A) the portion of the value of Inventory equal to
the profit earned by any Affiliate on the sale thereof to Borrower or (B) write-ups or write-downs
in value with respect to currency exchange rates and (ii) notwithstanding anything to the contrary
contained herein, the Cost of the Inventory shall be computed in the same manner and consistent
with the most recent appraisal of the Inventory received and accepted by Lender prior to the date
hereof, if any.

“Voting Stock” shall mean with respect to any Person, (a) one (1) or more classes of Capital
Stock of such Person having general voting powers to elect at least a majority of the board of
directors, managers or trustees of such Person, irrespective of whether at the time Capital Stock
of any other class or classes have or might have voting power by reason of the happening of any
contingency, and (b) any Capital Stock of such Person convertible or exchangeable without
restriction at the option of the holder thereof into Capital Stock of such Person described in
clause (a) of this definition.

“Working Capital” shall mean as to any Person, at any time, in accordance with GAAP, on a
consolidated basis for such Person and its subsidiaries (if any), the amount equal to the
difference between: (a) the aggregate net book value of all current assets of such Person and its
subsidiaries (as determined in accordance with GAAP), calculating the book value of inventory for
this purpose on a first-in-first-out basis, and (b) all current liabilities of such Person and its
subsidiaries (as determined in accordance with GAAP), provided, that, as to
Borrower, for purposes of Section 9.19, the liabilities of Borrower and its Subsidiaries to Lender
under this Agreement shall not be considered current liabilities (whether or not classified as
current liabilities in accordance with GAAP).

SECTION 2

CREDIT FACILITIES

2.1. Loans.

(a) Subject to and upon the terms and conditions contained herein, Lender agrees to make Loans
to Borrower from time to time in amounts requested by Borrower up to the amount equal to the lesser
of: (i) the Borrowing Base or (ii) the Maximum Credit.

(b) Lender may, in its discretion, from time to time, upon not less than five (5) days prior
notice to Borrower, (i) reduce the lending formula with respect to Eligible Accounts to the extent
that Lender determines in good faith that: (A) the dilution with respect to the Accounts for any
period (based on the ratio of (1) the aggregate amount of reductions in Accounts other than as a
result of payments in cash to (2) the aggregate amount of total sales) has increased or may be
reasonably anticipated to increase above historical levels, or (B) the general creditworthiness of
account debtors has declined, or (ii) reduce the lending formula(s) with respect to Eligible
Inventory to the extent that Lender determines that: (A) the number of days of the turnover of the
Inventory for any period has adversely changed or (B) the liquidation value of the Eligible
Inventory, or any category thereof, has decreased, including any such decrease attributable to any
change in the nature, quality or mix of the Inventory. The amount of any decrease in the lending
formulas shall have a reasonable relationship to the event, condition or circumstance which is the
basis for such decrease as determined by Lender in good faith. In determining whether to reduce
the lending formula(s), Lender may consider events, conditions, contingencies or risks which are
also considered in determining Eligible Accounts, Eligible Inventory or in establishing Reserves.

(c) Except in Lender’s discretion, the aggregate amount of the Loans outstanding at any time
shall not exceed the Maximum Credit. In the event that the outstanding amount of any component of
the Loans, or the aggregate amount of the outstanding Loans, exceed the amounts available pursuant
to the Borrowing Base or the Maximum Credit, as applicable, such event shall not limit, waive or
otherwise affect any rights of Lender in that circumstance or on any future occasions and Borrower
shall, upon demand by Lender, which may be made at any time or from time to time, immediately repay
to Lender the entire amount of any such excess(es) for which payment is demanded.

SECTION 3

INTEREST AND FEES

3.1. Interest.

(a) Borrower shall pay to Lender interest on the outstanding principal amount of the Loans at
the Interest Rate. All interest accruing hereunder on and after the date of any Event of Default
or termination or non-renewal hereof shall be payable on demand.

(b) Borrower may from time to time request Eurodollar Rate Loans or may request that Prime
Rate Loans be converted to Eurodollar Rate Loans or that any existing Eurodollar Rate Loans
continue for an additional Interest Period. Such request from Borrower shall specify the amount of
the Eurodollar Rate Loans or the amount of the Prime Rate Loans to be converted to Eurodollar Rate
Loans or the amount of the Eurodollar Rate Loans to be continued (subject to the limits set forth
below) and the Interest Period to be applicable to such Eurodollar Rate Loans. Subject to the terms
and conditions contained herein, three (3) Business Days after receipt by Lender of such a request
from Borrower, such Prime Rate Loans shall be converted to Eurodollar Rate Loans or such Eurodollar
Rate Loans shall continue, as the case may be, provided, that, (i) no Default or Event of Default
shall exist or have occurred and be continuing, (ii) no party hereto shall have sent any notice of
termination or non-renewal of this Agreement, (iii) Borrower shall have complied with such
customary procedures as are established by Lender and specified by Lender to Borrower from time to
time for requests by Borrower for Eurodollar Rate Loans, (iv) no more than four (4) Interest
Periods may be in effect at any one time, (v) the aggregate amount of the Eurodollar Rate Loans
must be in an amount not less than $5,000,000 or an integral multiple of $1,000,000 in excess
thereof, (vi) the maximum amount of the Eurodollar Rate Loans at any time requested by Borrower
shall not exceed the amount equal to eighty (80%) percent of the lowest principal amount of the
Loans which it is anticipated will be outstanding during the applicable Interest Period, in each
case as determined by Lender (but with no obligation of Lender to make such Loans), and (vii)
Lender shall have determined that the Interest Period or Adjusted Eurodollar Rate is available to
Lender through the Reference Bank and can be readily determined as of the date of the request for
such Eurodollar Rate Loan by Borrower. Any request by Borrower for Eurodollar Rate Loans or to
convert Prime Rate Loans to Eurodollar Rate Loans or to continue any existing Eurodollar Rate Loans
shall be irrevocable. Anything to the contrary contained herein notwithstanding, Lender and
Reference Bank shall not be required to purchase United States Dollar deposits in the London
interbank market or other applicable Eurodollar Rate market to fund any Eurodollar Rate Loans, but
the provisions hereof shall be deemed to apply as if Lender and Reference Bank had purchased such
deposits to fund the Eurodollar Rate Loans.

(c) Any Eurodollar Rate Loans shall automatically convert to Prime Rate Loans upon the last
day of the applicable Interest Period, unless Lender has received and approved a request to
continue such Eurodollar Rate Loan at least three (3) Business Days prior to such last day in
accordance with the terms hereof Any Eurodollar Rate Loans shall, at Lender’s option, upon notice
by Lender to Borrower, convert to Prime Rate Loans in the event that this Agreement shall terminate
or not be renewed. Borrower shall pay to Lender, upon demand by Lender (or Lender may, at its
option, charge any loan account of Borrower) any amounts required to compensate Lender, the
Reference Bank or any participant with Lender for any loss (including loss of anticipated profits),
cost or expense incurred by such person, as a result of the conversion of Eurodollar Rate Loans to
Prime Rate Loans pursuant to any of the foregoing.

(d) Interest shall be payable by Borrower to Lender monthly in arrears not later than the
first clay of each calendar month and shall be calculated on the basis of a three hundred sixty
(360) day year and actual days elapsed. The interest rate on non-contingent Obligations (other
than Eurodollar Rate Loans) shall increase or decrease by an amount equal to each increase or
decrease in the Prime Rate effective on the first day of the month after any change in such Prime
Rate is announced based on the Prime Rate in effect on the last day of the month in which any such
change occurs. In no event shall charges constituting interest payable by Borrower to Lender
exceed the maximum amount or the rate permitted under any applicable law or regulation, and if any
such part or provision of this Agreement is in contravention of any such law or regulation, such
part or provision shall be deemed amended to conform thereto.

3.2. Facility Fee. Borrower shall pay to Lender annually a facility fee in an amount
equal to $1,500 while this Agreement is in effect and for so long thereafter as any of the
Obligations are outstanding, which fee shall be fully earned as of and payable in advance on each
anniversary of the date hereof.

3.3. Unused Line Fee. Borrower shall pay to Lender monthly an unused line fee at a
rate equal to one-quarter of one percent (0.25%) per annum calculated upon the amount by which the
Maximum Credit exceeds the average daily principal balance of the outstanding Loans during the
immediately preceding month (or part thereof) while this Agreement is in effect and for so long
thereafter as any of the Obligations are outstanding, which fee shall be payable on the first day
of each month in arrears.

3.4. Changes in Laws and Increased Costs of Loans.

(a) Anything to the contrary contained herein notwithstanding, all Eurodollar Rate Loans
shall, upon notice by Lender to Borrower, convert to Prime Rate Loans in the event that (i) any
change in applicable law or regulation (or the interpretation or administration thereof) shall
either (A) make it unlawful for Lender, Reference Bank or any participant with Lender to make or
maintain Eurodollar Rate Loans or to comply with the terms hereof in connection with the Eurodollar
Rate Loans, or (B) shall result in the increase in the costs to Lender, Reference Bank or any
participant of making or maintaining any Eurodollar Rate Loans by an amount deemed by Lender to be
material, or (C) reduce the amounts received or receivable by Lender in respect thereof, by an
amount deemed by Lender to be material or (ii) the cost to Lender, Reference Bank or any
participant of making or maintaining any Eurodollar Rate Loans shall otherwise increase by an
amount deemed by Lender to be material. Borrower shall pay to Lender, upon demand by Lender (or
Lender may, at its option, charge any loan account of Borrower) any amounts required to compensate
Lender, the Reference Bank or any participant with Lender for any loss-(including loss of
anticipated profits), cost or expense incurred by such person as a result of the foregoing,
including, without limitation, any such loss, cost or expense incurred by reason of the liquidation
or reemployment of deposits or other funds acquired by such person to make or maintain the
Eurodollar Rate Loans or any portion thereof. A certificate of Lender setting forth the basis for
the determination of such amount necessary to compensate Lender as aforesaid shall be delivered to
Borrower and shall be conclusive, absent manifest error.

(b) If any payments or prepayments in respect of the Eurodollar Rate Loans are received by
Lender other than on the last day of the applicable Interest Period (whether pursuant to
acceleration, upon maturity or otherwise), including any payments pursuant to the application of
collections under Section 6.3 or any other payments made with the proceeds of Collateral, Borrower
shall pay to Lender upon demand by Lender (or Lender may, at its option, charge any loan account of
Borrower) any amounts required to compensate Lender, the Reference Bank or any participant with
Lender for any additional loss (including loss of anticipated profits), cost or expense incurred by
such person as a result of such prepayment or payment, including, without limitation, any loss,
cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds
acquired by such person to make or maintain such Eurodollar Rate Loans or-any portion thereof.

SECTION 4

CONDITIONS PRECEDENT

4.1. Conditions Precedent to Initial Loans. Each of the following is a condition
precedent to Lender making the initial Loans hereunder:

(a) all requisite corporate action and proceedings in connection with this Agreement and the
other Financing Agreements shall be satisfactory in form and substance to Lender, and Lender shall
have received all information and copies of all documents, including records of requisite corporate
action and proceedings which Lender may have requested in connection therewith, such documents
where requested by Lender or its counsel to be certified by appropriate corporate officers or
Governmental Authority (and including a copy of the certificate of incorporation of Borrower
certified by the Secretary of State (or equivalent Governmental Authority) which shall set forth
the same complete corporate name of Borrower as is set forth herein and such document as shall set
forth the organizational identification number of Borrower, if one is issued in its jurisdiction of
incorporation);

(b) No material adverse change shall have occurred in the assets, business or prospects of
Borrower since the date of Lender’s latest field examination (not including for this purpose the
field review referred to in clause (d) below) and no change or event shall have occurred which
would impair the ability of Borrower or any Obligor to perform its obligations hereunder or under
any of the other Financing Agreements to which it is a party or of Lender to enforce the
Obligations or realize upon the Collateral;

(c) Lender shall have received, in form and substance satisfactory to Lender, all consents,
waivers, acknowledgments and other agreements from third persons which Lender may deem necessary or
desirable in order to permit, protect and perfect its security interests in and liens upon the
Collateral or to effectuate the provisions or purposes of this Agreement and the other Financing
Agreements, including, without limitation, Collateral Access Agreements by owners and lessors of
leased premises of Borrower and by warehouses at which Collateral is located;

(d) Lender shall have received evidence, in form and substance satisfactory to Lender, that
Lender has a valid perfected first priority security interest in all of the Collateral;

(e) Lender shall have received evidence of insurance and loss payee endorsements required
hereunder and under the other Financing Agreements, in form and substance satisfactory to Lender,
and certificates of insurance policies and/or endorsements naming Lender as loss payee;

(f) Lender shall have received, in form and substance satisfactory to Lender, such opinion
letters of counsel to Borrower with respect to the Financing Agreements and such other matters as
Lender may request; and

(g) The other Financing Agreements and all instruments and documents hereunder and thereunder
shall have been duly executed and delivered to Lender, in form and substance satisfactory to
Lender.

4.2. Conditions Precedent to All Loans. Each of the following is an additional
condition precedent to Lender making Loans, including the initial Loans and any future Loans:

(a) All representations and warranties contained herein and in the other Financing Agreements
shall be true and correct in all material respects with the same effect as though such
representations and warranties had been made on and as of the date of the making of each such Loan
and after giving effect thereto, except to the extent that such representations and warranties
expressly relate solely to an earlier date (in which case such representations and warranties shall
have been true and accurate on and as of such earlier date);

(b) No law, regulation, order, judgment or decree of any Governmental Authority shall exit,
and no action, suit, investigation, litigation or proceeding shall be pending or threatened in any
court or before any arbitrator or Governmental Authority, which (i) purports to enjoin, prohibit,
restrain or otherwise affect (A) the making of the Loans, or (B) the consummation of the
transactions contemplated pursuant to the terms hereof or the other Financing Agreements or (ii)
has or could reasonably be expected to have a material adverse effect on the assets, business or
prospects of Borrower or would impair the ability of Borrower to perform its obligations hereunder
or under any of the other Financing Agreements or of Lender to enforce any Obligations or realize
upon any of the Collateral; and

(c) No Default or Event of Default shall exist or have occurred and be continuing on and as of
the date of the making of such Loan and after giving effect thereto.

SECTION 5

GRANT AND PERFECTION OF SECURITY INTEREST

5.1. Grant of Security Interest. To secure payment and performance of all
Obligations, Borrower hereby grants to Lender a continuing security interest in, a lien upon, and a
right of set off against, and hereby assigns to Lender as security, all personal and real property
and fixtures and interests in property and fixtures of Borrower, whether now owned or hereafter
acquired or existing, and wherever located (together with all other collateral security for the
Obligations at any time granted to or held or acquired by Lender, collectively, the
“Collateral”), including:

(a) all Accounts;

(b) all general intangibles, including, without limitation, all Intellectual Property;

(c) all goods, including, without limitation, Inventory and Equipment;

(d) all Real Property and fixtures;

(e) all chattel paper (including, without limitation, all tangible and electronic chattel
paper);

(f) all instruments (including, without limitation, all promissory notes);

(g) all documents;

(h) all deposit accounts;

(i) all letters of credit, banker’s acceptances and similar instruments and including all
letter-of-credit rights;

(j) all supporting obligations and all present and future liens, security interests, rights,
remedies, title and interest in, to and in respect of Receivables and other Collateral, including
(i) rights and remedies under or relating to guaranties, contracts of suretyship, letters of credit
and credit and other insurance related to the Collateral, (ii) rights of stoppage in transit,
replevin, repossession, reclamation and other rights and remedies of an unpaid vendor, lien or
secured party, (iii) goods described in invoices, documents, contracts or instruments with respect
to, or otherwise representing or evidencing, Receivables or other Collateral, including returned,
repossessed and reclaimed goods, and (iv) deposits by and property of account debtors or other
persons securing the obligations of account debtors;

(k) all investment property (including securities, whether certificated or uncertificated,
securities accounts, security entitlements, commodity contracts or commodity accounts) and all
monies, credit balances, deposits and other property of Borrower now or hereafter held or received
by or in transit to Lender or its Affiliates or at any other depository or other institution from
or for the account of Borrower, whether for safekeeping, pledge, custody, transmission, collection
or otherwise;

(l) all commercial tort claims, including, without limitation, those identified in the
Information Certificate;

(m) to the extent not otherwise described above, all Receivables;

(n) all Records; and

(o) all products and proceeds of the foregoing, in any form, including insurance proceeds and
all claims against third parties for loss or damage to or destruction of or other involuntary
conversion of any kind or nature of any or all of the other Collateral.

5.2. Perfection of Security Interests.

(a) Borrower irrevocably and unconditionally authorizes Lender (or its agent) to file at any
time and from time to time such financing statements with respect to the Collateral naming Lender
or its designee as the secured party and Borrower as debtor, as Lender may require, and including
any other information with respect to Borrower or otherwise required by part 5 of Article 9 of the
Uniform Commercial Code of such jurisdiction as Lender may determine, together with any amendment
and continuations with respect thereto, which authorization shall apply to all financing statements
filed on, prior to or after the date hereof. Borrower hereby ratifies and approves all financing
statements naming Lender or its designee as secured party and Borrower as debtor with respect to
the Collateral (and any amendments with respect to such financing statements) filed by or on behalf
of Lender prior to the date hereof and ratifies and confirms the authorization of Lender to file
such financing statements (and amendments, if any). Borrower hereby authorizes Lender to adopt on
behalf of Borrower any symbol required for authenticating any electronic filing. In the event that
the description of the collateral in any financing statement naming Agent or its designee as the
secured party and Borrower as debtor includes assets and properties of Borrower that do not at any
time constitute Collateral, whether hereunder, under any of the other Financing Agreements or
otherwise, the filing of such financing statement shall nonetheless be deemed authorized by such
Borrower to the extent of the Collateral included in such description and it shall not render the
financing statement ineffective as to any of the Collateral or otherwise affect the financing
statement as it applies to any of the Collateral. In no event shall Borrower at any time file, or
permit or cause to be filed, any correction statement or termination statement with respect to any
financing statement (or amendment or continuation with respect thereto) naming Lender or its
designee as secured party and Borrower as debtor.

(b) Borrower does not have any chattel paper (whether tangible or electronic) or instruments
as of the date hereof, except as set forth in the Information Certificate. In the event that
Borrower shall be entitled to or shall receive any chattel paper or instrument, Borrower shall
promptly notify Lender thereof in writing. Promptly upon the receipt thereof by or on behalf of
Borrower (including by any agent or representative), Borrower shall deliver, or cause to be
delivered to Lender, all tangible chattel paper and instruments that Borrower or may at any time
acquire, accompanied by such instruments of transfer or assignment duly executed in blank as Lender
may from time to time specify, in each case except as Lender may otherwise agree. At Lender’s
option, Borrower shall, or Lender may at any time on behalf of Borrower, cause the original of any
such instrument or chattel paper to be conspicuously marked in a form and manner acceptable to
Lender with the following legend referring to chattel paper or instruments as applicable: “This
[chattel paper] [instrument] is subject to the security interest of Congress Financial Corporation
(Southwest) (and any sale, transfer, assignment or encumbrance of this [chattel paper] [instrument]
violates the rights of such secured party.”

(c) In the event that Borrower shall at any time hold or acquire an interest in any electronic
chattel paper or any “transferable record” (as such term is defined in Section 201 of the Federal
Electronic Signatures in Global and National Commerce Act or in Section 16 of the Uniform
Electronic Transactions Act as in effect in any relevant jurisdiction), Borrower shall promptly
notify Lender thereof in writing. Promptly upon Lender’s request, Borrower shall take, or cause to
be taken, such actions as Lender may reasonably request to give Lender control of such electronic
chattel paper under Section 9-105 of the UCC and control of such transferable record under Section
201 of the Federal Electronic Signatures in Global and National Commerce Act or, as the case may
be, Section 16 of the Uniform Electronic Transactions Act, as in effect in such jurisdiction.

(d) Borrower does not have any deposit accounts as of the date hereof, except as set forth in
the Information Certificate. Borrower shall not, directly or indirectly, after the date hereof
open, establish or maintain any deposit account unless each of the following conditions is
satisfied: (i) Lender shall have received prior written notice of the intention of Borrower to open
or establish such account which notice shall specify in reasonable detail and specificity
acceptable to Lender the name of the account, the owner of the account, the name and address of the
bank or other financial institution at which such account is to be opened or established, the
individual at such bank or other financial institution with whom Borrower is dealing and the
purpose of the account, (ii) the bank or other financial institution where such account is opened
or maintained shall be acceptable to Lender, and (iii) upon the occurrence or during the
continuance of an event of Default, and upon the request of Lender on or before the opening of any
deposit account, Borrower shall, as Lender may specify, either (A) deliver to Lender a Deposit
Account Control Agreement with respect to such deposit account duly authorized, executed and
delivered by Borrower and the bank at which such deposit account is opened and maintained or (B)
arrange for Lender to become the customer of the bank with respect to the deposit account on terms
and conditions acceptable to Lender. The terms of this subsection (d) shall not apply to deposit
accounts specifically and exclusively used for payroll, payroll taxes and other employee wage and
benefit payments to or for the benefit of Borrower’s salaried employees.

(e) Borrower does not own or hold, directly or indirectly, beneficially or as record owner or
both, any investment property, as of the date hereof, or have any investment account, securities
account, commodity account or other similar account with any bank or other financial institution or
other securities intermediary or commodity intermediary as of the date hereof, in each case except
as set forth in the Information Certificate.

(i) In the event that Borrower shall be entitled to or shall at any time after the date
hereof hold or acquire any certificated securities, Borrower shall promptly endorse, assign
and deliver the same to Lender, accompanied by such instruments of transfer or assignment
duly executed in blank as Lender may from time to time specify. If any securities, now or
hereafter acquired by Borrower are uncertificated and are issued to Borrower or its nominee
directly by the issuer thereof, Borrower shall immediately notify Lender thereof and shall
as Lender may specify, either (A) cause the issuer to agree to comply with instructions from
Lender as to such securities without further consent of Borrower or such nominee, or (B)
arrange for Lender to become the registered owner of the securities.

(ii) Borrower shall not, directly or indirectly, after the date hereof open, establish
or maintain any investment account, securities account, commodity account or any other
similar account (other than a deposit account) with any securities intermediary or commodity
intermediary unless each of the following conditions is satisfied: (A) Lender shall have
received prior written notice of the intention of Borrower to open or establish such account
which notice shall specify in reasonable detail and specificity acceptable to Lender the
name of the account, the owner of the account, the name and address of the securities
intermediary or commodity intermediary at which such account is to be opened or established,
the individual at such intermediary with whom Borrower is dealing and the purpose of the
account, (B) the securities intermediary or commodity intermediary (as the case may be)
where such account is opened or maintained shall be acceptable to Lender, and (C) upon the
occurrence and during the continuance of an Event of Default on or before the opening of an
investment account, securities account or other similar account with a securities
intermediary or commodity intermediary, Borrower shall as Lender may specify either (1)
execute and deliver, and cause to be executed and delivered to Lender, an Investment
Property Control Agreement with respect thereto duly authorized, executed and delivered by
Borrower and such securities intermediary or commodity intermediary or (2) arrange for
Lender to become the entitlement holder with respect to such investment property on terms
and conditions acceptable to Lender.

(f) Borrower is not the beneficiary or otherwise entitled to any right to payment under any
letter of credit, banker’s acceptance or similar instrument as of the date hereof, except as set
forth in Schedule 5.2(f) hereof. In the event that Borrower shall be entitled to or shall
receive any right to payment under any letter of credit, banker’s acceptance or any similar
instrument, whether as beneficiary thereof or otherwise after the date hereof, Borrower shall
promptly-notify Lender thereof in writing. Borrower shall immediately, as Lender may specify,
either (i) deliver, or cause to be delivered to Lender, with respect to any such letter of credit,
banker’s acceptance or similar instrument, the written agreement of the issuer and any other
nominated person obligated to make any payment in respect thereof (including any confirming or
negotiating bank), in form and substance satisfactory to Lender, consenting to the assignment of
the proceeds of the letter of credit to Lender by Borrower and agreeing to make all payments
thereon directly to Lender or as Lender may otherwise direct or (ii) cause Lender to become, at
Borrower’s expense, the transferee beneficiary of the letter of credit, banker’s acceptance or
similar instrument (as the case may be).

(g) Borrower has no commercial tort claims as of the date hereof, except as set forth in the
Information Certificate. In the event that Borrower shall at any time after the date hereof have
any commercial tort claims, Borrower shall promptly notify Lender thereof in writing, which notice
shall (i) set forth in reasonable detail the basis for and nature of such commercial tort claim and
(ii) include the express grant by Borrower to Lender of a security interest in such commercial tort
claim (and the proceeds thereof). In the event that such notice does not include such grant of a
security interest, the sending thereof by Borrower to Lender shall be deemed to constitute such
grant to Lender. Upon the sending of such notice, any commercial tort claim described therein
shall constitute part of the Collateral and shall be deemed included therein. Without limiting the
authorization of Lender provided in Section 5.2(a) hereof or otherwise arising by the execution by
Borrower of this Agreement or any of the other Financing Agreements, Lender is hereby irrevocably
authorized from time to time and at any time to file such financing statements naming Lender or its
designee as secured party and Borrower as debtor, or any amendments to any financing statements,
covering any such commercial tort claim as Collateral. In addition, Borrower shall promptly upon
Lender’s request, execute and deliver, or cause to be executed and delivered, to Lender such other
agreements, documents and instruments as Lender may require in connection with such commercial tort
claim.

(h) Borrower does not have any goods, documents of title or other Collateral in the custody,
control or possession of a third party as of the date hereof, except as set forth in the
Information Certificate and except for goods located in the United States in transit to a location
of Borrower permitted herein in the ordinary course of business of Borrower in the possession of
the carrier transporting such goods. In the event that any goods, documents of the title or other
Collateral are at any time after the date hereof in the custody, control or possession of any other
person not referred to in the Information Certificate or such carriers, Borrower shall promptly
notify Lender thereof in writing. Promptly upon Lender’s request after the occurrence and during
the continuance of an Event of Default, Borrower shall deliver to Lender a Collateral Access
Agreement duly authorized, executed and delivered by such person and Borrower.

(i) Borrower shall take any other actions reasonably requested by Lender from time to time to
cause the attachment, perfection and first priority of, and the ability of Lender to enforce, the
security interest of Lender in any and all of the Collateral, including, without limitation, (i)
executing, delivering and, where appropriate, filing financing statements and amendments relating
thereto under the UCC or other applicable law, to the extent, if any, that Borrower’s signature
thereon is required therefore, (ii) causing Lender’s name to be noted as secured party on any
certificate of title for a titled good if such notation is a condition to attachment, perfection or
priority of, or ability of Lender to enforce, the security interest of Lender in such Collateral,
(iii) complying with any provision of any statute, regulation or treaty of the United States as to
any Collateral if compliance with such provision is a condition to attachment, perfection or
priority of, or ability of Lender to enforce, the security interest of Lender in such Collateral,
(iv) obtaining the consents and approvals of any Governmental Authority or third party, including,
without limitation, any consent of any licensor, lessor or other person obligated on Collateral,
and taking all actions required by any earlier versions of the UCC or by other law, as applicable
in any relevant jurisdiction.

SECTION 6

COLLECTION AND ADMINISTRATION

6.1. Borrower’s Loan Account. Lender shall maintain one or more loan account(s) on
its books in which shall be recorded (a) all Loans and other Obligations and the Collateral, (b)
all payments made by or on behalf of Borrower and (c) all other appropriate debits and credits as
provided in this Agreement, including fees, charges, costs, expenses and interest. All entries in
the loan account(s) shall be made in accordance with Lender’s customary practices as in effect from
time to time.

6.2. Statements. Lender shall render to Borrower each month a statement setting forth
the balance in the Borrower’s loan account(s) maintained by Lender for Borrower pursuant to the
provisions of this Agreement, including principal, interest, fees, costs and expenses. Each such
statement shall be subject to subsequent adjustment by Lender but shall, absent manifest errors or
omissions, be considered correct and deemed accepted by Borrower and conclusively binding upon
Borrower as an account stated except to the extent that Lender receives a written notice from
Borrower of any specific exceptions of Borrower thereto within thirty (30) days after the date such
statement has been mailed by Lender. Until such time as Lender shall have rendered to Borrower a
written statement as provided above, the balance in Borrower’s loan account(s) shall be presumptive
evidence of the amounts due and owing to Lender by Borrower.

6.3. Collection of Accounts.

(a) Upon the occurrence and during the continuance of an Event of Default, upon notice from
Lender, Borrower shall establish and maintain, at its expense, blocked accounts or lockboxes and
related blocked accounts (in either case, “Blocked Accounts”), as Lender may specify, with
such banks as are acceptable to Lender into which Borrower shall promptly deposit and direct its
account debtors to directly remit all payments on Receivables and all payments constituting
proceeds of Inventory or other Collateral in the identical form in which such payments are made,
whether by cash, check or other manner. Borrower shall deliver, or cause to be delivered to
Lender, a Deposit Account Control Agreement duly authorized, executed and delivered by each bank
where a Blocked Account is maintained as provided in Section 5.2 hereof or at any time and from
time to time Lender may become Lender’s customer with respect to the Blocked Accounts and promptly
upon Lender’s request, Borrower shall execute and deliver such agreements or documents as Lender
may require in connection therewith. Borrower agrees that all payments made to such Blocked
Accounts or other funds received and collected by Lender, whether in respect of the Receivables, as
proceeds of Inventory or other Collateral or otherwise shall be treated as payments to Lender in
respect of the Obligations and therefore shall constitute the property of Lender to the extent of
the then outstanding Obligations.

(b) For purposes of calculating the amount of the Loans available to Borrower, such payments
will be applied (conditional upon final collection) to the Obligations on the Business Day of
receipt by Lender of immediately available funds in the Lender Payment Account provided such
payments and notice thereof are received in accordance with Lender’s usual and customary practices
as in effect from time to time and within sufficient time to credit Borrower’s loan account on such
day, and if not, then on the next Business Day. For the purposes of calculating interest on the
Obligations, such payments or other funds received will be applied (conditional upon final
collection) to the Obligations (i) two (2) Business Day following the date of receipt of
immediately available funds by Lender in the Lender Payment Account, and (ii) five (5) Business
Days following the date of receipt of all other amounts; provided such payments or other
funds and notice thereof are received in accordance with Lender’s usual and customary practices as
in effect from time to time and within sufficient time to credit Borrower’s loan account on such
day, and if not, then on the next Business Day. In the event that at any time or from time to time
there are no Loans outstanding, Lender shall be entitled to an administrative charge in an amount
equivalent to the interest Lender would have received for such Business Day had there been Loans
outstanding on such day as calculated by Lender in accordance with its customary practice.

(c) Borrower and its shareholders, directors, employees, agents, Subsidiaries or other
Affiliates shall, acting as trustee for Lender, receive, as the property of Lender, any monies,
checks, notes, drafts or any other payment relating to and/or proceeds of Accounts or other
Collateral which come into their possession or under their control, upon notice from Lender upon
the occurrence and during the continuance of an Event of Default, Borrower shall deposit or cause
the same to be deposited in the Blocked Accounts, or remit the same or cause the same to be
remitted, in kind, to Lender. After the establishment of a Blocked Account pursuant to the terms
of Section 6.3(a), in no event shall any monies, checks, notes, drafts or any other payment
relating to and/or proceeds of Accounts or other Collateral which come into their possession or
under their control, be commingled with Borrower’s own funds. Borrower agrees to reimburse Lender
on demand for any amounts owed or paid to any bank at which a Blocked Account or any other deposit
account is established or any other bank or person involved in the transfer of funds to or from the
Blocked Accounts arising out of Lender’s payments to or indemnification of such bank or person.
The obligation of Borrower to reimburse Lender for such amounts pursuant to this section shall
survive the termination or non-renewal of this Agreement.

6.4. Payments.

(a) All Obligations shall be payable to the Lender Payment Account as provided in Section 6.3
or such other place as Lender may designate from time to time. Lender shall apply payments
received or collected from Borrower or for the account of Borrower (including the monetary proceeds
of collections or of realization upon any Collateral) as follows: first, to pay any fees,
indemnities or expense reimbursements then due to Lender from Borrower; second, to pay interest due
in respect of any Loans; third, to pay principal due in respect of the Loans; fourth, to pay or
prepay any other Obligations whether or not then due, in such order and manner as Lender
determines. Anything to the contrary contained in this Agreement notwithstanding, (i) unless so
directed by Borrower, or unless an Event of Default shall exist or have occurred and be continuing,
Lender shall not apply any payments which it receives to any Eurodollar Rate Loans, except (A) on
the expiration date of the Interest Period applicable to any such Eurodollar Rate Loans, or (B) in
the event that there are no outstanding Prime Rate Loans and (ii) to the extent Borrower uses any
proceeds of the Loans to acquire rights in or the use of any Collateral or to repay any
Indebtedness used to acquire rights in or the use of any Collateral, payments in respect of the
obligations shall be deemed applied first to the Obligations arising from Loans that were not used
for such purposes and second to the Obligations arising from Loans the proceeds of which were used
to acquire rights in or the use of any Collateral in the chronological order in which Borrower
acquired such rights or use.

(b) At Lender’s option, all principal, interest, fees, costs, expenses and other charges
provided for in this Agreement or the other Financing Agreements may be charged directly to the
loan account(s) of Borrower. Borrower shall make all payments to Lender on the Obligations free
and clear of, and without deduction or withholding for or on account of, any setoff, counterclaim,
defense, duties, taxes, levies, imposts, fees, deductions, withholding, restrictions or conditions
of any kind. If after receipt of any payment of, or proceeds of Collateral applied to the payment
of, any of the Obligations, Lender is required to surrender or return such payment or proceeds to
any Person for any reason, then the Obligations intended to be satisfied by such payment or
proceeds shall be reinstated and continue and this Agreement shall continue in full force and
effect as if such payment or proceeds had not been received by Lender. Borrower shall be liable to
pay to Lender, and does hereby indemnify and hold Lender harmless for the amount of any payments or
proceeds surrendered or returned. This section shall remain effective notwithstanding any contrary
action which may be taken by Lender in reliance upon such payment or proceeds. This section shall
survive the payment of the Obligations and the termination or non-renewal of this Agreement.

6.5. Authorization to Make Loans. Lender is authorized to make the Loans based upon
telephonic or other instructions received from such authorized persons as Borrower shall designate
or, at the discretion of Lender, if such Loans are necessary to satisfy any Obligations. All
requests for Loans hereunder shall specify the date on which the requested advance is to be made
(which day shall be a Business Day) and the amount of the requested Loan. Requests received after
11:00 a.m. Dallas, Texas time on any day shall be deemed to have been made as of the opening of
business on the immediately following Business Day. All Loans under this Agreement shall be
conclusively presumed to have been made to, and at the request of and for the benefit of, Borrower
when deposited to the credit of Borrower or otherwise disbursed or established in accordance with
the instructions of Borrower or in accordance with the terms and conditions of this Agreement.

6.6. Use of Proceeds. Borrower shall use the proceeds of the Loans only for general
operating, working capital and other proper corporate purposes of Borrower not otherwise prohibited
by the terms hereof. None of the proceeds will be used, directly or indirectly, for the purpose of
purchasing or carrying any margin security or for the purposes of reducing or retiring any
indebtedness which was originally incurred to purchase or carry any margin security or for any
other purpose which might cause any of the Loans to be considered a “purpose credit” within the
meaning of Regulation U of the Board of Governors of the Federal Reserve System, as amended.

SECTION 7

COLLATERAL REPORTING AND COLLATERAL COVENANTS

7.1. Collateral Reporting.

(a) Borrower shall provide Lender with the following documents in a form satisfactory to
Lender:

(i) on a regular basis as required by Lender, a schedule of sales made, credits issued
and cash received;

(ii) as soon as possible after the end of each month (but in any event within thirty
(30) days after the end thereof), on a monthly basis or more frequently as Lender may
request, (A) perpetual inventory reports, (B) inventory reports by location and category
(and including the amount of Inventory and the value thereof at any leased locations and at
premises of warehouses, processors or other third parties “from time to time in possession
of any Collateral”), (C) agings of accounts payable (and including information indicating
the status of payments to owners and lessors of the leased premises of Borrower (and
including the amount of Inventory and the value thereof at any leased locations and at
premises of warehouses, processors or other third parties “from time to time in possession
of any Collateral”) and (D) agings of accounts receivable (together with a reconciliation to
the previous month’s aging and general ledger);

(iii) upon Lender’s request, (A) copies of customer statements and credit memos,
remittance advices and reports, and copies of deposit slips and bank statements, (B) copies
of shipping and delivery documents, and (C) copies of purchase orders, invoices and delivery
documents for Inventory and Equipment acquired by Borrower;

(iv) such other reports as to the Collateral as Lender shall request from time to time;
and

(b) If any of Borrower’s records or reports of the Collateral are prepared or maintained by an
accounting service, contractor, shipper or other agent, Borrower hereby irrevocably authorizes such
service, contractor, shipper or agent to deliver such records, reports, and related documents to
Lender and to follow Lender’s instructions with respect to further services at any time that an
Event of Default exists or has occurred and is continuing.

7.2. Accounts Covenants.

(a) Borrower shall notify Lender promptly of: (i) any material delay in Borrower’s performance
of any of its obligations to any account debtor or the assertion of any claims, offsets, defenses
or counterclaims by any account debtor, or any disputes with account debtors, or any settlement,
adjustment or compromise thereof, (ii) all material adverse information relating to the financial
condition of any account debtor and (iii) any event or circumstance which, to Borrower’s knowledge
would cause Lender to consider any then existing Accounts as no longer constituting Eligible
Accounts. No credit, discount, allowance or extension or agreement for any of the foregoing shall
be granted to any account debtor without Lender’s consent, except in the ordinary course of
Borrower’s business in accordance with practices and policies previously disclosed in writing to
Lender and except as set forth in the schedules delivered to Lender pursuant to Section 7.1(a)
above. So long as no Event of Default exists or has occurred and is continuing, Borrower shall
settle, adjust or compromise any claim, offset, counterclaim or dispute with any account debtor.
At any time that an Event of Default exists or has occurred and is continuing, Lender shall, at its
option, have the exclusive right to settle, adjust or compromise any claim, offset, counterclaim or
dispute with account debtors or grant any credits, discounts or allowances.

(b) With respect to each Account: (i) the amounts shown on any invoice delivered to Lender or
schedule thereof delivered to Lender shall be true and complete, (ii) no payments shall be made
thereof except payments immediately delivered to Lender pursuant to the terms of this Agreement,
(iii) no credit, discount, allowance or extension or agreement for any of the foregoing shall be
granted to any account debtor except as reported to Lender in accordance with this Agreement and
except for credits, discounts, allowances or extensions made or given in the ordinary course of
Borrower’s business in accordance with practices and policies previously disclosed to Lender, (iv)
there shall be no setoffs, deductions, contras, defenses, counterclaims or disputes existing or
asserted with respect thereto except as reported to Lender in accordance with the terms of this
Agreement, (v) none of the transactions giving rise thereto will violate any applicable foreign,
Federal, State or local laws or regulations, all documentation relating thereto will be legally
sufficient under such laws and regulations and all such documentation will be legally enforceable
in accordance with its terms.

(c) Lender shall have the right at any time or times, in Lender’s name or in the name of a
nominee of Lender, to verify the validity, amount or any other matter relating to any Account or
other Collateral, by mail, telephone, facsimile transmission or otherwise.

7.3. Inventory Covenants. With respect to the Inventory: (a) Borrower shall at all
times maintain inventory records reasonably satisfactory to Lender, keeping correct and accurate
records itemizing and describing the kind, type, quality and quantity of Inventory, Borrower’s cost
therefore and daily withdrawals therefrom and additions thereto; (b) Borrower shall conduct a
physical count of the Inventory at least once each year, but at any time or times as Lender may
request on or after an Event of Default, and promptly following such physical inventory shall
supply Lender with a report in the form and with such specificity as may be reasonably satisfactory
to Lender concerning such physical count; (c) Borrower shall not remove any Inventory from the
locations set forth or permitted herein, without the prior written consent of Lender, except for
sales of Inventory in the ordinary course of Borrower’s business and except to move Inventory
directly from one location set forth or permitted herein to another such location and except for
Inventory shipped from the manufacturer thereof to Borrower which is in transit to the locations
set forth or permitted herein; (d) upon Lender’s request, Borrower shall, at its expense, no more
than once in any twelve (12) month period, but at any time or times as Lender may request on or
after an Event of Default, deliver or cause to be delivered to Lender written appraisals as to the
Inventory in form, scope and methodology acceptable to Lender and by an appraiser acceptable to
Lender, addressed to Lender and upon which Lender is expressly permitted to rely; (e) Borrower
shall produce, use, store and maintain the Inventory with all reasonable care and caution and in
accordance with applicable standards of any insurance and in conformity with applicable laws
(including the requirements of the Federal Fair Labor Standards Act of 1938, as amended and all
rules, regulations and orders related thereto); (f) none of the Inventory or other Collateral
constitutes farm products or the proceeds thereof; (g) Borrower assumes all responsibility and
liability arising from or relating to the production, use, sale or other disposition of the
Inventory; (h) Borrower shall keep the Inventory in good and marketable condition; and (i) Borrower
shall not, without prior written notice to Lender or the specific identification of such Inventory
with respect thereto provided by Borrower to Lender pursuant to Section 7.1(a) hereof, acquire or
accept any Inventory on consignment or approval.

7.4. Equipment Covenants. With respect to the Equipment: (a) upon Lender’s request,
Borrower shall, at its expense, no more than once in any twelve (12) month period, but at any time
or times as Lender may request on or after an Event of Default, deliver or cause to be delivered to
Lender written appraisals as to the Equipment and/or the Real Property in form, scope and
methodology acceptable to Lender and by an appraiser acceptable to Lender, addressed to Lender and
upon which Lender is expressly permitted to rely; (b) Borrower shall keep the Equipment in good
order, repair, running and marketable condition ordinary wear and tear excepted); (c) Borrower
shall use the Equipment and Real Property with all reasonable care and caution and in accordance
with applicable standards of any insurance and in conformity with all applicable laws; (d) the
Equipment is and shall be used in Borrower’s business and not for personal, family, household or
farming use; (e) Borrower shall not remove any Equipment from the locations set forth or permitted
herein, except to the extent necessary to have any Equipment repaired or maintained in the ordinary
course of the business of Borrower or to move Equipment directly from one location set forth or
permitted herein to another such location and except for the movement of motor vehicles used by or
for the benefit of Borrower in the ordinary course of business; (f) the Equipment is now and shall
remain personal property and Borrower shall not permit any of the Equipment to be or become a part
of or affixed to real property; and (g) Borrower assumes all responsibility and liability arising
from the use of the Equipment and Real Property.

7.5. Power of Attorney. Borrower hereby irrevocably designates and appoints Lender
(and all persons designated by Lender) as Borrower’s true and lawful attorney-in-fact, and
authorizes Lender, in Borrower’s or Lender’s name, to: (a) at any time an Event of Default exists
or has occurred and is continuing: (a) to (i) demand payment on Receivables or other Collateral,
(ii) enforce payment of Receivables by legal proceedings or otherwise, (iii) exercise all of
Borrower’s rights and remedies to collect any Receivable or other Collateral, (iv) sell or assign
any Receivable upon such terms, for such amount and at such time or times as the Lender deems
advisable, (v) settle, adjust, compromise, extend or renew an Account, (vi) discharge and release
any Receivable, (vii) prepare, file and sign Borrower’s name on any proof of claim in bankruptcy or
other similar document against an account debtor or other obligor in respect of any Receivables or
other Collateral, (viii) notify the post office authorities to change the address for delivery of
remittances from account debtors or other obligors in respect of Receivables or other proceeds of
Collateral to an address designated by Lender, and open and dispose of all mail addressed to
Borrower and handle and store all mail relating to the Collateral; and (ix) do all acts and things
which are necessary, in Lender’s determination, to fulfill Borrower’s obligations under this
Agreement and the other Financing Agreements and (b) at any time to (i) take control in any manner
of any item of payment in respect of Receivables or constituting Collateral or otherwise received
in or for deposit in the Blocked Accounts or otherwise received by Lender, (ii) have access to any
lockbox or postal box into which remittances from account debtors or other obligors, in respect of
Receivables or other proceeds of Collateral are sent or received, (iii) endorse Borrower’s name
upon any items of payment in respect of Receivables or constituting Collateral or otherwise
received by Lender and deposit the same in Lender’s account for application to the Obligations,
(iv) endorse Borrower’s name upon any chattel paper, document, instrument, invoice, or ,similar
document or agreement relating to any Receivable or any goods pertaining thereto or any other
Collateral, including any warehouse or other receipts, or bills of lading and other negotiable or
non-negotiable documents, (v) clear Inventory the purchase of which was financed with letter of
credit accommodations through U.S. Customs or foreign export control authorities in Borrower’s
name, Lender’s name or the name of Lender’s designee, and to sign and deliver to customs officials
powers of attorney in Borrower’s name for such purpose, and to complete in Borrower’s or Lender’s
name, any order, sale or transaction, obtain the necessary documents in connection therewith and
collect the proceeds thereof, (vi) sign Borrower’s name on any verification of Receivables and
notices thereof to account debtors or any secondary obligors or other obligors in respect thereof.
Borrower hereby releases Lender and its officers, employees and designees from any liabilities
arising from any act or acts under this power of attorney and in furtherance thereof, whether of
omission or commission, except as a result of Lender’s own gross negligence or willful misconduct
as determined pursuant to a final non-appealable order of a court of competent jurisdiction.

7.6. Right to Cure. Lender may, at its option, (a) upon notice to Borrower, cure any
default by Borrower under any material agreement with a third party that affects the Collateral,
its value or the ability of Lender to collect, sell or otherwise dispose of the Collateral or the
rights and remedies of Lender therein or the ability of Borrower to perform its obligations
hereunder or under the other Financing Agreements, (b) discharge taxes, liens, security interests
or other encumbrances at any time levied on or existing with respect to the Collateral and (c) pay
any amount, incur any expense or perform any act which, in Lender’s judgment, is necessary or
appropriate to preserve, protect, insure or maintain the Collateral and the rights of Lender with
respect thereto. Lender may add any amounts so expended to the Obligations and charge Borrower’s
account therefore, such amounts to be repayable by Borrower on demand. Lender shall be under no
obligation to effect such cure, payment or bonding and shall not, by doing so, be deemed to have
assumed any obligation or liability of Borrower. Any payment made or other action taken by Lender
under this section shall be without prejudice to any right to assert an Event of Default hereunder
and to proceed accordingly.

7.7. Access to Premises. From time to time as requested by Lender, at the cost and
expense of Borrower, (a) Lender or its designee shall have complete access to all of Borrower’s
premises during normal business hours and after notice to Borrower, or at any time and without
notice to Borrower if an Event of Default exists or has occurred and is continuing, for the
purposes of inspecting, verifying and auditing the Collateral and all of Borrower’s books and
records, including the Records, and (b) Borrower shall promptly furnish to Lender such copies of
such books and records or extracts therefrom as Lender may request, and (c) Lender or its designee
may use during normal business hours such of Borrower’s personnel, equipment, supplies and premises
as may be reasonably necessary for the foregoing and if an Event of Default exists or has occurred
and is continuing for the collection of Accounts and realization of other Collateral.

SECTION 8

REPRESENTATIONS AND WARRANTIES

Borrower hereby represents and warrants to Lender the following (which shall survive the
execution and delivery of this Agreement), the truth and accuracy of which are a continuing
condition of the making of Loans by Lender to Borrower:

8.1. Corporate Existence; Power and Authority. Borrower is a corporation duly
organized and in good standing under the laws of its state of incorporation and is duly qualified
as a foreign corporation and in good standing in all states or other jurisdictions where the nature
and extent of the business transacted by it or the ownership of assets makes such qualification
necessary, except for those jurisdictions in which the failure to so qualify would not have a
material adverse effect on Borrower’s financial condition, results of operation or business or the
rights of Lender in or to any of the Collateral. The execution, delivery and performance of this
Agreement, the other Financing Agreements and the transactions contemplated hereunder and
thereunder (a) are all within Borrower’s corporate powers, (b) have been duly authorized, (c) are
not in contravention of law or the terms of Borrower’s certificate of incorporation, by-laws, or
other organizational documentation, or any indenture, agreement or undertaking to which Borrower is
a party or by which Borrower or its property are bound and (d) will not result in the creation or
imposition of, or require or give rise to any obligation to grant, any lien, security interest,
charge or other encumbrance upon any property of Borrower. This Agreement and the other Financing
Agreements constitute legal, valid and binding obligations of Borrower enforceable in accordance
with their respective terms.

8.2. Name State of Organization Chief Executive Office; Collateral Locations.

(a) The exact legal name of Borrower is as set forth on the signature page of this Agreement
and in the Information Certificate. Borrower has not, during the past five years, been known by or
used by any other corporate or fictitious name or been a party to any merger or consolidation, or
acquired all or substantially all of the assets of any Person, or acquired any of its property or
assets out of the ordinary course of business, except as set forth in the Information Certificate.

(b) Borrower is an organization of the type and organized in the jurisdiction set forth in the
Information Certificate. The Information Certificate accurately sets forth the organizational
identification number of Borrower or accurately states that Borrower has none and accurately sets
forth the federal employer identification number of Borrower.

(c) The chief executive office and mailing address of Borrower and Borrower’s
Records-concerning Accounts are located only at the address identified as such in the Information
Certificate and its only other places of business and the only other locations of Collateral, if
any, are the addresses set forth in the Information Certificate, subject to the right of Borrower
to establish new locations in accordance with Section 9.2 below. The Information Certificate
correctly identifies any of such locations which are not owned by Borrower and sets forth the
owners and/or operators thereof.

8.3. Financial Statements; No Material Adverse Change. All financial statements
relating to Borrower which have been or may hereafter be delivered by Borrower to Lender have been
prepared in accordance with GAAP (except as to any interim financial statements, to the extent such
statements are subject to normal year-end adjustments and do not include any notes) and fairly
present in all material respects the financial condition and the results of operation of Borrower
as at the dates and for the periods set forth therein. Except as disclosed in any interim
financial statements furnished by Borrower to Lender prior to the date of this Agreement, there has
been no act, condition or event which has had or is reasonably likely to have had a Material
Adverse Effect since the date of the most recent audited financial statements of Borrower furnished
by Borrower to Lender prior to the date of this Agreement.

8.4. Priority of Liens; Title to Properties. The security interests and liens granted
to Lender under this Agreement and the other Financing Agreements constitute valid and perfected
first priority liens and security interests in and upon the Collateral subject only to the liens
indicated on the Information Certificate and the other liens permitted under Section 9.8 hereof.
Borrower has good and marketable fee simple title to or valid leasehold interests in all of its
Real Property and good, valid and merchantable title to all of its other properties and assets
subject to no liens, mortgages, pledges, security interests, encumbrances or charges of arty kind,
except those granted to Lender and such others as are specifically listed on the Information
Certificate or permitted under Section 9.8 hereof.

8.5. Tax Returns. Borrower has filed, or caused to be filed, in a timely manner all
tax returns, reports and declarations which are required to be filed by it. All information in
such tax returns, reports and declarations is complete and accurate in all material respects.
Borrower has paid or caused to be paid all taxes due and payable or claimed due and payable in any
assessment received by it, except taxes the validity of which are being contested in good faith by
appropriate proceedings diligently pursued and available to Borrower and with respect to which
adequate reserves have been set aside on its books. Adequate provision has been made for the
payment of all accrued and unpaid Federal, State, county, local, foreign and other taxes whether or
not yet due and payable and whether or not disputed.

8.6. Litigation. Except as set forth in the Information Certificate, there is no
investigation by any Governmental Authority pending, or to the best of Borrower’s knowledge
threatened, against or affecting Borrower, its assets or business and there is no action, suit;
proceeding or claim by any Person pending, or to the best of Borrower’s knowledge threatened,
against Borrower or its assets or goodwill, or against or affecting any transactions contemplated
by this Agreement, which if adversely determined against Borrower has or could reasonably be
expected to have a Material Adverse Effect.

8.7. Compliance with Other Agreements and Applicable Laws.

(a) Borrower is not in default in any respect under, or in violation in any respect of the
terms of, any material agreement, contract, instrument, lease or other commitment to which it is a
party or by which it or any of its assets are bound. Borrower is in material compliance with the
requirements of all applicable laws, rules, regulations and orders of any Governmental Authority
relating to their respective businesses, including, without limitation, those set forth in or
promulgated pursuant to the Occupational Safety and Health Act of 1970, as amended, the Fair Labor
Standards Act of 1938, as amended, ERISA, the Code, as amended, and the rules and regulations
thereunder, and all Environmental Laws.

(b) Borrower has obtained all material permits, licenses, approvals, consents, certificates,
orders or authorizations of any Governmental Authority required for the lawful conduct of its
business (the “Permits”). All of the Permits are valid and subsisting and in full force
and effect. There are no actions, claims or proceedings pending or to the best of Borrower’s
knowledge, threatened that seek the revocation, cancellation, suspension or modification of any of
the Permits.

8.8. Environmental Compliance.

(a) Except as set forth on the Information Certificate, Borrower and any Subsidiary of
Borrower have not generated, used, stored, treated, transported, manufactured, handled, produced or
disposed of any Hazardous Materials, on or off its premises (whether or not owned by it) in any
manner which at any time violates in any material respect any applicable Environmental Law or
Permit and the operations of Borrower and any Subsidiary of Borrower complies in all material
respects with all Environmental Laws and all Permits.

(b) Except as set forth on the Information Certificate, there has been no investigation by any
Governmental Authority or any proceeding, complaint, order, directive, claim, citation or notice by
any Governmental Authority or any other person nor is any pending or to the best of Borrower’s
knowledge threatened, with respect to any non-compliance with or violation of the requirements of
any Environmental Law by Borrower and any Subsidiary of Borrower or the release, spill or
discharge, threatened or actual, of any Hazardous Material or the generation, use, storage,
treatment, transportation, manufacture, handling, production or disposal of any Hazardous Materials
or any other environmental, health or safety matter, which adversely affects Borrower or could
reasonably be expected to adversely affect in any material respect Borrower or its business,
operations or assets or any properties at which Borrower has transported, stored or disposed of any
Hazardous Materials.

(c) Borrower and its Subsidiaries have no material liability (contingent or otherwise) in
connection with a release, spill or discharge, threatened or actual, of any Hazardous Materials or
the generation, use, storage, treatment, transportation, manufacture, handling, production or
disposal of any Hazardous Materials.

(d) Borrower and its Subsidiaries have all Permits required to be obtained or filed in
connection with the operations of Borrower under any Environmental Law and all of such licenses,
permits, certificates, approvals or similar authorizations and other Permits are valid and in full
force and effect.

8.9. Employee Benefits.

(a) Each Plan is in compliance in all material respects with the applicable provisions of
ERISA, the Code and other Federal or State law. Each Plan which is intended to qualify under
Section 401(a) of the Code has received a favorable determination letter from the Internal Revenue
Service and to the best of Borrower’s knowledge, nothing has occurred which would cause the loss of
such qualification. Borrower and its ERISA Affiliates have made all required contributions to any
Plan subject to Section 412 of the Code, and no application for a funding waiver or an extension of
any amortization period pursuant to Section 412 of the Code has been made with respect to any Plan.

(b) There are no pending or to the best of Borrower’s knowledge, threatened claims, actions or
lawsuits, or action by any Governmental Authority, with respect to any Plan. There has been no
prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan.

(c) (i) No ERISA Event has occurred or is reasonably expected to occur; (ii) the current value
of each Plan’s assets (determined in accordance with the assumptions used for funding such Plan
pursuant to Section 412 of the Code) are not less than such Plan’s liabilities under Section
4001(a)(16) of ERISA; (iii) Borrower and its ERISA Affiliates have not incurred and do not
reasonably expect to incur, any liability under Title IV of ERISA with respect to any Plan (other
than premiums due and not delinquent under Section 4007 of ERISA); (iv) Borrower and its ERISA
Affiliates have not incurred and do not reasonably expect to incur, any liability (and no event has
occurred which, with the giving of notice under Section 4219 of ERISA, would result in such
liability) under Section 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v)
Borrower and its ERISA Affiliates have not engaged in a transaction that would be subject to
Section 4069 or 4212(c) of ERISA.

8.10. Bank Accounts. All of the deposit accounts, investment accounts or other
accounts in the name of or used by Borrower maintained at any bank or other financial institution
are set forth in the Information Certificate, subject to the right of Borrower to establish new
accounts in accordance with Section 5.2 hereof.

8.11. Intellectual Property. Borrower owns or licenses or otherwise has the right to
use all Intellectual Property necessary for the operation of its business as presently conducted or
proposed to be conducted. As of the date hereof, Borrower does not have any Intellectual Property
registered, or subject to pending applications, in the United States Patent and Trademark Office or
any similar office or agency in the United States, any State thereof, any political subdivision
thereof or in any other country, other than those described in the Information Certificate hereto
and has not granted any licenses with respect thereto other than as set forth in the Information
Certificate. No event has occurred which permits or would permit after notice or passage of time
or both, the revocation, suspension or termination of such rights. To the best of Borrower’s
knowledge, no slogan or other advertising device, product, process, method, substance or other
Intellectual Property or goods bearing or using any Intellectual Property presently contemplated to
be sold by or employed by Borrower infringes any patent, trademark, servicemark, tradename,
copyright, license or other Intellectual Property owned by any other Person presently and no claim
or litigation is pending or threatened against or affecting Borrower contesting its right to sell
or use any such Intellectual Property. The Information Certificate sets forth all of the
agreements or other arrangements of Borrower pursuant to which Borrower has a license or other
right to use any trademarks, logos, designs, representations or other Intellectual Property owned
by another person as in effect on the date hereof and the dates of the expiration of such
agreements or other arrangements of Borrower as in effect on the date hereof (collectively,
together with such agreements or other arrangements as may be entered into by Borrower after the
date hereof, collectively, the “License Agreements” and individually, a “License
Agreement”). No trademark, servicemark, copyright or other Intellectual Property at any time
used by Borrower which is owned by another person, or owned by Borrower subject to any security
interest, lien, collateral assignment, pledge or other encumbrance in favor of any person other
than Lender, is affixed to any Eligible Inventory, except (a) to the extent permitted under the
term of the License Agreements listed on the Information Certificate, and (g) to the extent the
sale of Inventory to which such Intellectual Property is affixed is permitted to be sold by
Borrower under applicable law (including the United States Copyright Act of 1976).

8.12. Subsidiaries Affiliates Capitalization; Solvency.

(a) Borrower does not have any direct or indirect Subsidiaries or Affiliates and is not
engaged in any joint venture or partnership except as set forth in the Information Certificate,
subject to the right of Borrower to form or acquire Subsidiaries in accordance with Section 9.10
hereof.

(b) Borrower is the record and beneficial owner of all of the issued and outstanding shares of
Capital Stock of the each of the Subsidiaries listed on the Information Certificate as being owned
by Borrower and there are no proxies, irrevocable or otherwise, with respect to such shares and no
equity securities of any of the Subsidiaries are or may become required to be issued by reason of
any options, warrants, rights to subscribe to, calls or commitments of any kind or nature and there
are no contracts, commitments, understandings or arrangements by which any Subsidiary is or may
become bound to issue additional shares of it Capital Stock or securities convertible into or
exchangeable for such shares.

(c) The issued and outstanding shares of Capital Stock of Borrower are directly and
beneficially owned and held by the persons indicated in the Information Certificate, and in each
case all of such shares have been duly authorized and are fully paid and non-assessable, free and
clear of all claims, liens, pledges and encumbrances of any kind, except as disclosed in writing to
Lender prior to the date hereof.

(d) Borrower is Solvent and will continue to be Solvent after the creation of the Obligations,
the security interests of Lender and the other transaction contemplated hereunder.

8.13. Labor Disputes.

(a) Set forth on the Information Certificate is a list (including dates of termination) of all
collective bargaining or similar agreements between or applicable to Borrower and any union, labor
organization or other bargaining agent in respect of the employees of Borrower on the date hereof.

(b) There is (i) no significant unfair labor practice complaint pending against Borrower or,
to the best of Borrower’s knowledge, threatened against it, before the National Labor Relations
Board, and no significant grievance or significant arbitration proceeding arising out of or under
any collective bargaining agreement is pending on the date hereof against Borrower or, to best of
Borrower’s knowledge, threatened against it, and (ii) no significant strike, labor dispute,
slowdown or stoppage is pending against Borrower or, to the best of Borrower’s knowledge,
threatened against Borrower.

8.14. Restrictions on Subsidiaries. Except for restrictions contained in this
Agreement or any other agreement with respect to Indebtedness of Borrower permitted hereunder as in
effect on the date hereof, there are no contractual or consensual restrictions on Borrower or any
of its Subsidiaries which prohibit or otherwise restrict (a) the transfer of cash or other assets
(i) between Borrower and any of its Subsidiaries or (ii) between any Subsidiaries of Borrower or
(b) the ability of Borrower or any of its Subsidiaries to incur Indebtedness or grant security
interests to Lender in the Collateral.

8.15. Material Contracts. The Information Certificate sets forth all Material
Contracts to which Borrower is a party or is bound as of the date hereof. Borrower has delivered
true, correct and complete copies of such Material Contracts to Lender on or before the date
hereof. Borrower is not in breach of or in default under any Material Contract and has not
received any notice of the intention of any other party thereto to terminate any Material Contract.

8.16. Payable Practices. Borrower has not made any material change in the historical
accounts payable practices from those in effect immediately prior to the date hereof.

8.17. Accuracy and Completeness of Information. All information furnished by or on
behalf of Borrower in writing to Lender in connection with this Agreement or any of the other
Financing Agreements or any transaction contemplated hereby or thereby, including all information
on the Information Certificate is true and correct in all material respects on the date as of which
such information is dated or certified and does not omit any material fact necessary in order to
make such information not misleading. No event or circumstance has occurred which has had or could
reasonably be expected to have a Material Adverse Affect, which has not been fully and accurately
disclosed to Lender in writing prior to the date hereof.

8.18. Survival of Warranties; Cumulative. All representations and warranties
contained in this Agreement or any of the other Financing Agreements shall survive the execution
and delivery of this Agreement and shall be deemed to have been made again to Lender on the date of
each additional borrowing or other credit accommodation hereunder and shall be conclusively
        ,presumed to have been relied on by Lender regardless of any investigation made or information
possessed by Lender. The representations and warranties set forth herein shall be cumulative and
in addition to any other representations or warranties which Borrower shall now or hereafter give,
or cause to be given, to Lender.

SECTION 9

AFFIRMATIVE AND NEGATIVE COVENANTS

9.1. Maintenance of Existence.

(a) Borrower shall at all times preserve, renew and keep in full, force and effect its
corporate existence and rights and franchises with respect thereto and maintain in full force and
effect all permits, licenses, trademarks, tradenames, approvals, authorizations, leases and
contracts necessary to carry on the business as presently or proposed to be conducted.

(b) Borrower shall not change its name unless each of the following conditions is satisfied:
(i) Lender shall have received not less than thirty (30) days prior written notice from Borrower of
such proposed change in its corporate name, which notice shall accurately set forth the new name;
and (ii) Lender shall have received a copy of the amendment to the Certificate of Incorporation of
Borrower providing for the name change certified by the Secretary of State of the jurisdiction of
incorporation or organization of Borrower as soon as it is available.

(c) Borrower shall not change its chief executive office or its mailing address or
organizational identification number (or if it does not have one, shall not acquire one) unless
Lender shall have received not less than thirty (30) days’ prior written notice from Borrower of
such proposed change, which notice shall set forth such information with respect thereto as Lender
may require and Lender shall have received such agreements as Lender may reasonably require in
connection therewith. Borrower shall not change its type of organization, jurisdiction of
organization or other legal structure.

9.2. New Collateral Locations. Borrower may only open any new location within the
continental United States provided Borrower (a) gives Lender prior written notice from Borrower of
the intended opening of any such new location and (b) executes and delivers, or causes to be
executed and delivered, to Lender such agreements, documents, and instruments as Lender may deem
reasonably necessary or desirable to protect its interests in the Collateral at such location.

9.3. Compliance with Laws, Regulations, Etc.

(a) Borrower shall, and shall cause any Subsidiary to, at all times, comply in all material
respects with all laws, rules, regulations, licenses, approvals, orders and other Permits
applicable to it and duly observe all requirements of any foreign, Federal, State or local
Governmental Authority, including ERISA, the Code, the Occupational Safety and Health Act of 1970,
as amended, the Fair Labor Standards Act of 1938, as amended, and all statutes, rules, regulations,
orders, permits and stipulations relating to environmental pollution and employee health and
safety, including all of the Environmental Laws.

(b) Borrower shall give written notice to Lender immediately upon Borrower’s receipt of any
notice of, or Borrower’s otherwise obtaining knowledge of, (i) the occurrence of any event
involving the release, spill or discharge, threatened or actual, of any Hazardous Material or (ii)
any investigation, proceeding, complaint, order, directive, claims, citation or notice with respect
to: (A) any non-compliance with or violation of any applicable Environmental Law by Borrower or (B)
the release, spill or discharge, threatened or actual, of any Hazardous Material other than in the
ordinary course of business and other than as permitted under any applicable Environmental Law.
Copies of all environmental surveys, audits, assessments, feasibility studies and results of
remedial investigations shall be promptly furnished, or caused to be furnished, by Borrower to
Lender. Borrower shall take prompt and appropriate action to respond to any material
non-compliance with any of the Environmental Laws and shall regularly report to Lender on such
response.

(c) Without limiting the generality of the foregoing, whenever Lender reasonably determines
that there is non-compliance, or any condition which requires any action by or on behalf of
Borrower in order to avoid any material non-compliance, with any Environmental Law, Borrower shall,
at Lender’s request and Borrower’s expense: (i) cause an independent environmental engineer
reasonably acceptable to Lender to conduct such tests of the site where Borrower’s non-compliance
or alleged non-compliance with such Environmental Laws has occurred as to such non-compliance and
prepare and deliver to Lender a report as to such non-compliance setting forth the results of such
tests, a proposed plan for responding to any environmental problems described therein, and an
estimate of the costs thereof and (ii) provide to Lender a supplemental report of such engineer
whenever the scope of such non-compliance, or Borrower’s response thereto or the estimated costs
thereof, shall change in any material respect.

(d) Borrower shall indemnify and hold harmless Lender, its directors, officers, employees,
agents, invitees, representatives, successors and assigns, from and against any and all losses,
claims, damages, liabilities, costs, and expenses (including reasonable attorneys’ fees and legal
expenses) directly or indirectly arising out of or attributable to the use, generation,
manufacture, reproduction, storage, release, threatened release, spill, discharge, disposal or
presence of a Hazardous Material, including the costs of any required or necessary repair, cleanup
or other remedial work with respect to any property of Borrower and the preparation and
implementation of any closure, remedial or other required plans. All representations, warranties,
covenants and indemnifications in this section shall survive the payment of the Obligations and the
termination or non-renewal of this Agreement.

9.4. Payment of Taxes and Claims. Borrower shall, and shall cause any Subsidiary to,
duly pay and discharge all taxes, assessments, contributions and governmental charges upon or
against it or its properties or assets, except for taxes the validity of which are being contested
in good faith by appropriate proceedings diligently pursued and available to Borrower or such
Subsidiary, as the case may be, and with respect to which adequate reserves have been set aside on
its books. Borrower shall be liable for any tax or penalties imposed on Lender as a result of the
financing arrangements provided for herein and Borrower agrees to indemnify and hold Lender
harmless with respect to the foregoing, and to repay to Lender on demand the amount thereof, and
until paid by Borrower such amount shall be added and deemed part of the Loans, provided,
that, nothing contained herein shall be construed to require Borrower to pay any income or
franchise taxes attributable to the income of Lender from any amounts charged or paid hereunder to
Lender. The foregoing indemnity shall survive the payment of the Obligations and the termination
or non-renewal of this Agreement.

9.5. Insurance. Borrower shall, and shall cause any Subsidiary to, at all times,
maintain with financially sound and reputable insurers insurance with respect to the Collateral
against loss or damage and all other insurance of the kinds and in the amounts customarily insured
against or carried by corporations of established reputation engaged in the same or similar
businesses and similarly situated. Said policies of insurance shall be reasonably satisfactory to
Lender as to form, amount and insurer. Borrower shall furnish certificates, policies or
endorsements to Lender as Lender shall reasonably require as proof of such insurance, and, if
Borrower fails to do so, Lender is authorized, but not required, to obtain such insurance at the
expense of Borrower. All policies shall provide for at least thirty (30) days prior written notice
to Lender of any cancellation or reduction of coverage and that Lender may act as attorney for
Borrower in obtaining, and at any time an Event of Default exists or has occurred and is
continuing, adjusting, settling, amending and canceling such insurance. Borrower shall cause
Lender to be named as a loss payee and an additional insured (but without any liability for any
premiums) under such insurance policies and shall deliver to Lender endorsements to such effect as
are reasonably satisfactory to Lender in form and substance satisfactory to Lender. Such lender’s
loss payable endorsements shall specify that the proceeds of such insurance shall be payable to
Lender as its interests may appear and further specify that Lender shall be paid regardless of any
act or omission by Borrower or any of its Affiliates. At its option, Lender may apply any
insurance proceeds received by Lender at any time to the cost of repairs or replacement of
Collateral and/or to payment of the Obligations, whether or not then due, in any order and in such
manner as Lender may determine or hold such proceeds as cash collateral for the Obligations.

9.6. Financial Statements and Other Information.

(a) Borrower shall, and shall cause any Subsidiary to, keep proper books and records in which
true and complete entries shall be made of all dealings or transactions of or in relation to the
Collateral and the business of Borrower and its Subsidiaries in accordance with GAAP. Borrower
shall promptly furnish to Lender all such financial and other information as Lender shall
reasonably request relating to the Collateral and the assets, business and operations of Borrower,
and to notify the auditors and accountants of Borrower that Lender is authorized to obtain such
information directly from them. Without limiting the foregoing, Borrower shall furnish or cause to
be furnished to Lender, the following: (i) within forty-five (45) days after the end of each fiscal
month, monthly unaudited consolidated financial statements, and unaudited consolidating financial
statements (including in each case balance sheets, statements of income and loss, statements of
cash flow, and statements of shareholders’ equity), all in reasonable detail, fairly presenting the
financial position and the results of the operations of Borrower and its Subsidiaries as of the end
of and through such fiscal month, certified to be correct by the chief financial officer of
Borrower, subject to normal year-end adjustments and no footnotes and accompanied by a compliance
certificate substantially in the form of Exhibit B hereto, along with a schedule in form reasonably
satisfactory to Lender of the calculations used in determining, as of the end of such month,
whether Borrower was in compliance with the covenants set forth in Section 9.19 of this Agreement
for such month and (ii) within ninety (90) days after the end of each fiscal year, audited
consolidated financial statements and audited consolidating financial statements of Borrower and
its Subsidiaries (including in each case balance sheets, statements of income and loss, statements
of cash flow and statements of shareholders’ equity), and the accompanying notes thereto, all in
reasonable detail, fairly presenting the financial position and the results of the operations of
Borrower and its Subsidiaries as of the end of and for such fiscal year, together with the
unqualified opinion of independent certified public accountants, which accountants shall be an
independent accounting firm selected by Borrower and reasonably acceptable to Lender, that such
financial statements have been prepared in accordance with GAAP, and present fairly the results of
operations and financial condition of Borrower and its Subsidiaries as of the end of and for the
fiscal year then ended.

(b) Borrower shall promptly notify Lender in writing of the details of (i) any loss, damage,
investigation, action, suit, proceeding or claim relating to the Collateral having a value of more
than $500,000, or any other property which is security for the Obligations or which if adversely
determined, would result in any material adverse change in Borrower’s business, properties, assets,
goodwill or condition, financial or otherwise, (ii) any Material Contract of Borrower being
terminated or amended or any new Material Contract entered into (in which event Borrower shall
provide Lender with a copy of such Material Contract), (iii) any order, judgment or decree in
excess of $800,000 shall have been entered against Borrower or any of its properties or assets,
(iv) any notification of a material violation of laws or regulations received by Borrower, (v) any
ERISA Event, and (vi) the occurrence of any Default or Event of Default.

(c) Borrower shall promptly after the sending or filing thereof furnish or cause to be
furnished to Lender copies of all reports which Borrower sends to its stockholders generally and
copies of all reports and registration statements which Borrower files with the Securities and
Exchange Commission, any national securities exchange or the National Association of Securities
Dealers, Inc.

(d) Borrower shall furnish or cause to be furnished to Lender such budgets, forecasts,
projections and other information respecting the Collateral and the business of Borrower, as Lender
may, from time to time, reasonably request. Lender is hereby authorized to deliver a copy of any
financial statement or any other information relating to the business of Borrower to any court or
other Governmental Authority or to any participant or assignee or prospective participant or
assignee. Borrower hereby irrevocably authorizes and directs all accountants or auditors to
deliver to Lender, at Borrower’s expense, copies of the financial statements of Borrower and any
reports or management letters prepared by such accountants or auditors on behalf of Borrower and to
disclose to Lender such information as they may have regarding the business of Borrower. Any
documents, schedules, invoices or other papers delivered-.to Lender may be destroyed or otherwise
disposed of by Lender one (1) year after the same are delivered to Lender, except as otherwise
designated by Borrower to Lender in writing.

9.7. Sale of Assets, Consolidation, Merger, Dissolution, Etc. Without prior written
approval from Lender, Borrower shall not, and shall not permit any Subsidiary to (and Lender does
not authorize Borrower to), directly or indirectly,

(a) merge into or with or consolidate with any other Person or permit any other Person to
merge into or with or consolidate with it; or

(b) sell, assign, lease, transfer, abandon or otherwise dispose of any Capital Stock or
Indebtedness to any other Person or any of its assets to any other Person, except for (i) sales of
Inventory in the ordinary course of business, (ii) the disposition of worn out or obsolete
Equipment so long as (A) any proceeds are paid to Lender and (B) such sales do not involve
Equipment having an aggregate fair market value in excess of $500,000 for all such Equipment
disposed of in any fiscal year of Borrower and (iii) the issuance and sale by Borrower of Capital
Stock of Borrower after the date hereof; provided, that, (A) Lender shall have received not less
than ten (10) Business Days prior written notice of such issuance and sale by Borrower, which
notice shall specify the parties to whom such shares are to be sold, the terms of such sale, the
total amount which it is anticipated will be realized from the issuance and sale of such stock and
the net cash proceeds which it is anticipated will be received by Borrower from such sale, (B)
Borrower shall not be required to pay any cash dividends or repurchase or redeem such Capital Stock
or make any other payments in respect thereof, (C) the terms of such Capital Stock, and the terms
and conditions of the purchase and sale thereof, shall not include any terms that include any
limitation-on the right of Borrower to request or receive Loans or the right of Borrower to amend
or modify any of the terms and conditions of this Agreement or any of the other Financing
Agreements or otherwise in any way relate to or affect the arrangements of Borrower with Lender or
are more restrictive or burdensome to Borrower than the terms of any Capital Stock in effect on the
date hereof, and (D) as of the date of such issuance and sale and after giving effect thereto, no
Default or Event of Default shall exist or have occurred;

(c) wind up, liquidate or dissolve; or

(d) agree to do any of the foregoing.

9.8. Encumbrances. Without prior written approval from Lender, Borrower shall not,
and shall not permit any Subsidiary to, create, incur, assume or suffer to exist any security
interest, mortgage, pledge, lien, charge or other encumbrance of any nature whatsoever on any of
its assets or properties, including the Collateral, except:

(a) the security interests and liens of Lender;

(b) liens securing the payment of taxes, assessments or other governmental charges or levies
either not yet overdue or the validity of which are being contested in good faith by appropriate
proceedings diligently pursued and available to Borrower or Subsidiary, as the case may be and with
respect to which adequate reserves have been set aside on its books;

(c) non-consensual statutory liens (other than liens securing the payment of taxes) arising in
the ordinary course of Borrower ‘s or such Subsidiary’s business to the extent: (i) such liens
secure Indebtedness which is not overdue or (ii) such liens secure Indebtedness relating to claims
or liabilities which are fully insured and being defended at the sole cost and expense and at the
sole risk of the insurer or being contested in good faith by appropriate proceedings diligently
pursued and available to Borrower or such Subsidiary, in each case prior to the commencement of
foreclosure or other similar proceedings and with respect to which adequate reserves have been set
aside on its books;

(d) zoning restrictions, easements, licenses, covenants and other restrictions affecting the
use of Real Property which do not interfere in any material respect with the use of such Real
Property or ordinary conduct of the business of Borrower or such Subsidiary as presently conducted
thereon or materially impair the value of the Real Property which may be subject thereto;

(e) purchase money security interests in Equipment (including Capital Leases) and purchase
money mortgages on Real Property to secure Indebtedness permitted under Section 9.9(b) hereof;

(f) pledges and deposits of cash by Borrower after the date hereof in the ordinary course of
business in connection with workers’ compensation, unemployment insurance and other types of social
security benefits consistent with the current practices of Borrower as of the date hereof;

(g) pledges and deposits of cash by Borrower after the date hereof to secure the performance
of tenders, bids, leases, trade contracts (other than for the repayment of Indebtedness), statutory
obligations and other similar obligations in each case in the ordinary course of business
consistent with the current practices of Borrower as of the date hereof; provided,
that, in connection with any performance bonds issued by a surety or other person, the
issuer of such bond shall have waived in writing any rights in or to, or other interest in, any of
the Collateral in an agreement, in form and substance satisfactory to Lender;

(h) liens arising from (i) operating leases and the precautionary UCC financing statement
filings in respect thereof and (ii) equipment or other materials which are not owned by Borrower
located on the premises of Borrower (but not in connection with, or as part of, the financing
thereof) from time to time in the ordinary course of business and consistent with current practices
of Borrower and the precautionary UCC financing statement filings in respect thereof;

(i) judgments and other similar liens arising in connection with court proceedings that do not
constitute an Event of Default, provided, that, (i) such liens are being contested
in good faith and by appropriate proceedings diligently pursued, (ii) adequate reserves or other
appropriate provision, if any, as are required by GAAP have been made therefor, (iii) a stay of
enforcement of any such liens is in effect and (iv) Lender may establish a Reserve with respect
thereto; and

(j) the security interests and liens set forth on Schedule 9.8(g) hereto.

9.9. Indebtedness. Without prior written approval from Lender, Borrower shall not,
and shall not permit any Subsidiary to, incur, create, assume, become or be liable in any manner
with respect to, or permit to exist, any Indebtedness, or guarantee, assume, endorse, or otherwise
become responsible for (directly or indirectly), the Indebtedness, performance, obligations or
dividends of any other Person, except:

(a) the Obligations;

(b) trade obligations and normal accruals in the ordinary course of business not yet due and
payable, or with respect to which Borrower is contesting in good faith the amount or validity
thereof by appropriate proceedings diligently pursued and available to Borrower, and with respect
to which adequate reserves have been set aside on its books in accordance with GAAO;

(c) purchase money Indebtedness (including Capital Leases) arising after the date hereof to
the extent secured by purchase money security interests in Equipment (including Capital Leases) and
purchase money mortgages on Real Property not to exceed $750,000 in the aggregate at any time
outstanding so long as such security interests and mortgages do not apply to any property of
Borrower or any Subsidiary other than the Equipment or Real Property so acquired, and the
Indebtedness secured thereby does not exceed the cost of the Equipment or Real Property so
acquired, as the case may be;

(d) guarantees by Borrower of the Obligations of the other Borrower s in favor of Lender;

(e) the Indebtedness of Borrower to any other Borrower arising after the date hereof pursuant
to loans by Borrower permitted under Section 9.10(g) hereof;

(f) unsecured Indebtedness of Borrower arising after the date hereof to any third person (but
not to any other Borrower ), provided, that, each of the following conditions is
satisfied as determined by Lender: (i) such Indebtedness shall be on terms and conditions
acceptable to Lender and shall be subject and subordinate in right of payment to the right of
Lender to receive the prior indefeasible payment and satisfaction in full payment of all of the
Obligations pursuant to the terms of an intercreditor agreement between Lender and such third
party, in form and substance satisfactory to Lender, (ii) Lender shall have received not less than
ten (10) days prior written notice of the intention of Borrower to incur such Indebtedness, which
notice shall set forth in reasonable detail satisfactory to Lender the amount of such Indebtedness,
the person or persons to whom such Indebtedness will be owed, the interest rate, the schedule of
repayments and maturity date with respect thereto and such other information as Lender may request
with respect thereto, (iii) Lender shall have received true, correct and complete copies of all
agreements, documents and instruments evidencing or otherwise related to such Indebtedness, (iv)
except as Lender may otherwise agree in writing, all of the proceeds of the loans or other
accommodations giving rise to such Indebtedness shall be paid to Lender for application to the
Obligations in such order and manner as Lender may determine or at Lender’s option, to be held as
cash collateral for the Obligations, (v) as of the date of incurring such Indebtedness and after
giving effect thereto, no Default or Event of Default shall exist or have occurred, (vi) Borrower
shall not, directly or indirectly, (A) amend, modify, alter or change the terms of such
Indebtedness or any agreement, document or instrument related thereto, except,
that, Borrower may, after prior written notice to Lender, amend, modify, alter or change
the terms thereof so as to extend the maturity thereof, or defer the timing of any payments in
respect thereof, or to forgive or cancel any portion of such Indebtedness (other than pursuant to
payments thereof), or to reduce the interest rate or any fees in connection therewith, or (B)
redeem, retire, defease, purchase or otherwise acquire such Indebtedness (except pursuant to
regularly scheduled payments permitted herein), or set aside or otherwise deposit or invest any
sums for such purpose, and (vii) Borrower shall furnish to Lender all notices or demands in
connection with such Indebtedness either received by Borrower or on its behalf promptly after the
receipt thereof, or sent by Borrower or on its behalf concurrently with the sending thereof, as the
case may be;

(g) the Indebtedness set forth in Schedule 9.9(f) hereof; provided,
that, (i) Borrower may only make regularly scheduled payments of principal and interest in
respect of such Indebtedness in accordance with the terms of the agreement or instrument evidencing
or giving rise to such Indebtedness as in effect on the date hereof, (ii) Borrower shall not,
directly or indirectly, (A) amend, modify, alter or change the terms of such Indebtedness or any
agreement, document or instrument related thereto as in effect on the date hereof except,
that, Borrower may, after prior written notice to Lender, amend, modify, alter or change
the terms thereof so as to extend the maturity thereof, or defer the timing of any payments in
respect thereof, or to forgive or cancel any portion of such Indebtedness (other than pursuant to
payments thereof), or to reduce the interest rate or any fees in connection therewith, or (B)
redeem, retire, defease, purchase or otherwise acquire such Indebtedness, or set aside or otherwise
deposit or invest any sums for such purpose, and (iii) Borrower shall furnish to Lender all notices
or demands in connection with such Indebtedness either received by Borrower or on its behalf,
promptly after the receipt thereof, or sent by Borrower or on its behalf, concurrently with the
sending thereof, as the case may be.

9.10. Loans, Investments, Etc.. Without prior written approval from Lender, Borrower
shall not, and shall not permit any Subsidiary to, directly or indirectly, make any loans or
advance money or property to any person, or invest in (by capital contribution, dividend or
otherwise) or purchase or repurchase the Capital Stock or Indebtedness or all or a substantial part
of the assets or property of any person, or form or acquire any Subsidiaries, or agree to do any of
the foregoing, except:

(a) the endorsement of instruments for collection or deposit in the ordinary course of
business;

(b) investments in cash or Cash Equivalents, provided, that, (i) no Loans are
then outstanding and (ii) the terms and conditions of Section 5.2 hereof shall have been satisfied
with respect to the deposit account, investment account or other account in which such cash or Cash
Equivalents are held;

(c) the existing equity investments of Borrower as of the date hereof in its Subsidiaries,
provided, that, no Borrower shall have any further obligations or liabilities to
make any capital contributions or other additional investments or other payments to or in or for
the benefit of any of such Subsidiaries;

(d) loans and advances by Borrower to employees of Borrower not to exceed the principal amount
of $250,000 in the aggregate at any time outstanding for: (i) reasonably and necessary
work-related travel or other ordinary business expenses to be incurred by such employee in
connection with their work for Borrower and (ii) reasonable and necessary relocation expenses of
such employees (including home mortgage financing for relocated employees);

(e) stock or obligations issued to Borrower by any Person (or the representative of such
Person) in respect of Indebtedness of such Person owing to Borrower in connection with the
insolvency, bankruptcy, receivership or reorganization of such Person or a composition or
readjustment of the debts of such Person; provided, that, the original of any such
stock or instrument evidencing such obligations shall be promptly delivered to Lender, upon
Lender’s request, together with such stock power, assignment or endorsement by Borrower as Lender
may request;

(f) obligations of account debtors to Borrower arising from Accounts which are past due
evidenced by a promissory note made by such account debtor payable to Borrower; provided,
that, promptly upon the receipt of the original of any such promissory note by Borrower,
such promissory note shall be endorsed to the order of Lender by Borrower and promptly delivered to
Lender as so endorsed;

(g) the loans and advances set forth on Schedule 9.10(g) hereto; provided,
that, as to such loans and advances, (i) Borrower shall not, directly or indirectly, amend,
modify, alter or change the terms of such loans and advances or any agreement, document or
instrument related thereto and (ii) Borrower shall furnish to Lender all notices or demands in
connection with such loans and advances either received by Borrower or on its behalf, promptly
after the receipt thereof, or sent by Borrower or on its behalf, concurrently with the sending
thereof, as the case may be.

9.11. Dividends and Redemptions. Borrower shall not, directly or indirectly, declare
or pay any dividends on account of any shares of class of any Capital Stock of Borrower now or
hereafter outstanding, or set aside or otherwise deposit or invest any sums for such purpose, or
redeem, retire, defease, purchase or otherwise acquire any shares of any class of Capital Stock (or
set aside or otherwise deposit or invest any sums for such purpose) for any consideration or apply
or set apart any sum, or make any other distribution (by reduction of capital or otherwise) in
respect of any such shares or agree to do any of the foregoing without prior written approval from
Lender,, except that:

(a) Borrower may declare and pay such dividends or redeem, retire, defease, purchase or
otherwise acquire any shares of any class of Capital Stock for consideration in the form of shares
of common stock (so long as after giving effect thereto no Change of Control or other Default or
Event of Default shall exist or occur);

(b) Borrower may pay dividends to the extent permitted in Section 9.12 below;

(c) Borrower may repurchase Capital Stock consisting of common stock held by employees
pursuant to any employee stock ownership plan thereof upon the termination, retirement or death of
any such employee in accordance with the provisions of such plan, provided, that,
as to any such repurchase, each of the following conditions is satisfied: (i) as of the date of the
payment for such repurchase and after giving effect thereto, no Default or Event of Default shall
exist or have occurred and be continuing, (ii) such repurchase shall be paid with funds legally
available therefor, (iii) such repurchase shall not violate any law or regulation or the terms of
any indenture, agreement or undertaking to which Borrower is a party or by which Borrower or its or
their property are bound, and (iv) the aggregate amount of all payments for such repurchases in any
calendar year shall not exceed $250,000.

9.12. Transactions with Affiliates. Without prior written approval from Lender,
Borrower shall not, directly or indirectly:

(a) purchase, acquire or lease any property from, or sell, transfer or lease any property to,
any officer, director or other Affiliate of Borrower, except in the ordinary course of and pursuant
to the reasonable requirements of Borrower’s business (as the case may be) and upon fair and
reasonable terms no less favorable to Borrower than Borrower would obtain in a comparable arm’s
length transaction with an unaffiliated person; or

(b) make any payments (whether by dividend, loan or otherwise) of management, consulting or
other fees for management or similar services, or of any Indebtedness owing to any officer,
employee, shareholder, director or any other Affiliate of Borrower, except reasonable
compensation to officers, employees and directors for services rendered to Borrower in the ordinary
course of business.

9.13. Compliance with ERISA. Borrower shall and shall cause each of its ERISA
Affiliates to: (a) maintain each Plan (other than a Multiemployer Plan) in compliance in all
material respects with the applicable provisions of ERISA, the Code and other Federal and State
law; (b) cause each Plan which is qualified under Section 401 (a) of the Code to maintain such
qualification; (c) not terminate any of such Plans so as to incur any liability to the Pension
Benefit Guaranty Corporation; (d) not allow or suffer to exist any prohibited transaction ,Benefit
of such Plans or any trust created thereunder which would subject Borrower or such ERISA Affiliate
to a tax or penalty or other liability on prohibited transactions imposed under Section 4975 of the
Code or ERISA; (e) make all required contributions to any Plan which it is obligated to pay under
Section 302 of ERISA, Section 412 of the Code or the terms of such Plan; (f)-not allow-prefer to
exist any accumulated funding deficiency, whether or not waived, with respect to any such Plan; or
(g) not allow or suffer to exist any occurrence of a reportable event or any other event or
condition which presents a material risk of termination by the Pension Benefit Guaranty Corporation
of any such Plan that is a single employer plan, which termination could result in any liability to
the Pension Benefit Guaranty Corporation.

9.14. End of Fiscal Years; Fiscal Quarters. Borrower shall, for financial reporting
purposes, cause its, and each of its Subsidiaries’ (a) fiscal years to end on August 31 of each
year and (b) fiscal quarters to end on November 30, February 28, May 30 and August 31 of each year.

9.15. Change in Business. Without prior written approval from Lender, Borrower shall
not engage in any business other than the business of Borrower on the date hereof and any business
reasonably related, ancillary or complimentary to the business in which Borrower is engaged on the
date hereof.

9.16. Limitation of Restrictions Affecting Subsidiaries. Without prior written
approval from Lender, Borrower shall not, directly, or indirectly, create or otherwise cause or
suffer to exist any encumbrance or restriction which prohibits or limits the ability of any
Subsidiary of Borrower to (a) pay dividends or make other distributions or pay any Indebtedness
owed to Borrower or any Subsidiary of Borrower; (b) make loans or advances to Borrower or any
Subsidiary of Borrower, (c) transfer any of its properties or assets to Borrower or any Subsidiary
of Borrower; or (d) create, incur, assume or suffer to exist any lien upon any of its property,
assets or revenues, whether now owned or hereafter acquired, other than encumbrances and
restrictions arising under (i) applicable law, (ii) this Agreement, (iii) customary provisions
restricting subletting or assignment of any lease governing a leasehold interest of Borrower or any
of its Subsidiaries, (iv) customary restrictions on dispositions of real property interests found
in reciprocal easement agreements of Borrower or its Subsidiary, (v) any agreement relating to
permitted Indebtedness incurred by a Subsidiary of Borrower prior to the date on which such
Subsidiary was acquired by Borrower and outstanding on such acquisition date, and (vi) the
extension or continuation of contractual obligations in existence on the date hereof; provided,
that, any such encumbrances or restrictions contained in such extension or continuation are no less
favorable to Lender than those encumbrances and restrictions under or pursuant to the contractual
obligations so extended or continued.

9.17. Adjusted Tangible Net Worth. Borrower shall, at all times, maintain Adjusted
Tangible Net Worth of not less than the amount indicated below:

(a) $12,000,000 for the fiscal quarter ending November 30, 2002;

(b) $12,500,000 for the fiscal quarter ending February 28, 2003;

(c) $13,000,000 for the fiscal quarter ending May 31, 2003;

(d) $13,300,000 for the fiscal quarter ending August 31, 2003;

(e) $13,300,000 for the fiscal quarter ending November 30,2003; and

(f) $13,500,000 for the fiscal quarter ending February 29, 2004 and for each fiscal quarter
through the remainder of the term of this Agreement.

9.18. License Agreements.

(a) Borrower shall (i) promptly and faithfully observe and perform all of the material terms,
covenants, conditions and provisions of the material License Agreements to be observed and
performed by it, at the times set forth therein, if any, (ii) not do, permit, suffer or refrain
from doing thing could reasonably be expected to result in a default under or breach of any of the
terms of any material License Agreement, (iii) not cancel, surrender, modify, amend, waive or
release any material License Agreement in any material respect or any term, provision or right of
the licensee thereunder in any material respect, or consent to or permit to occur any of the
foregoing; except, that, subject to Section 9.18(b) below, Borrower may cancel, surrender or
release any material License Agreement in the ordinary course of the business of Borrower;
provided, that, Borrower shall give Lender not less than thirty (30) days prior written notice of
its intention to so cancel, surrender and release any such material License Agreement, (iv) give
Lender prompt written notice of any material License Agreement entered into by Borrower after the
date hereof, together with a true, correct and complete copy thereof and such other information
with respect thereto as Lender may request, (v) give Lender prompt written notice of any material
breach of any obligation, or any default, by any party under any material License Agreement, and
deliver to Lender (promptly upon the receipt thereof by Borrower in the case of a notice to
Borrower, and concurrently with the sending thereof in the case of a notice from Borrower) a copy
of each notice of default and every other notice and other communication received or delivered by
Borrower in connection with any material License Agreement which relates to the right of Borrower
to continue to use the property subject to such License Agreement, and (vi) furnish to Lender,
promptly upon the request of Lender, such information and evidence as Lender may require from time
to time concerning the observance, performance and compliance by Borrower or the other party or
parties thereto with the terms, covenants or provisions of any material License Agreement.

(b) Borrower will either exercise any option to renew or extend the term of each material
License Agreement in such manner as will cause the term of such material License Agreement to be
effectively renewed or extended for the period provided by such option and give prompt written
notice thereof to Lender or give Lender prior written notice that Borrower does not intend to renew
or extend the term of any such material License Agreement or that the term thereof shall otherwise
be expiring, not less than sixty (60) days prior to the date of any such non-renewal or expiration.
At any time as Lender shall determine that an Event of Default shall exist or have occurred and be
continuing and Borrower fails to extend or renew any material License Agreement, Lender shall have,
and is hereby granted, the irrevocable right and authority, at its option, to renew or extend the
term of such material License Agreement, whether in its own name and behalf, or in the name and
behalf of a designee or nominee of Lender or in the name and behalf of Borrower. Lender may, but
shall not be required to, perform any or all of such obligations of any Borrower under any of the
License Agreements, including, but not limited to, the payment of any or all sums due from Borrower
thereunder. Any sums so paid by Lender shall constitute part of the Obligations.

9.19. After Acquired Real Property. If Borrower hereafter acquires any Real Property
or fixtures or other property and such Real Property or fixtures or other property at any one
location has a fair market value in an amount equal to or greater than $100,000 (or if a Default or
Event of Default exists, then regardless of the fair market value of such assets), without limiting
any other rights of Lender, or duties or obligations of Borrower, upon Lender’s request, Borrower
shall execute and deliver to Lender a mortgage, deed of trust or deed to secure debt, as Lender may
determine, in form and substance satisfactory to Lender and in form appropriate for recording in
the real estate records of the jurisdiction in which such Real Property or other property is
located granting to Lender a first and only lien and mortgage on and security interest in such Real
Property, fixtures or other property (except as Borrower would otherwise be permitted to incur
hereunder or as otherwise consented to in writing by Lender) and such other agreements, documents
and instruments as Lender may require in connection therewith.

9.20. Costs and Expenses. Borrower shall pay to Lender on demand all costs, expenses,
filing fees and taxes paid or payable in connection with the preparation, negotiation, execution,
delivery, recording, administration, collection, liquidation, enforcement and defense of the
Obligations, Lender’s rights in the Collateral, this Agreement, the other Financing Agreements and
all other documents related hereto or thereto, including any amendments, supplements or consents
which may hereafter be contemplated (whether or not executed) or entered into in respect hereof and
thereof, including: (a) all costs and expenses of filing or recording (including Uniform Commercial
Code financing statement filing taxes and fees, documentary taxes, intangibles taxes and mortgage
recording taxes and fees, if applicable); (b) costs and expenses and fees for insurance premiums,
environmental audits, surveys, assessments, engineering reports and inspections, appraisal fees and
search fees, costs and expenses of remitting loan proceeds, collecting checks and other items of
payment, and establishing and maintaining the Blocked Accounts, together with Lender’s customary
charges and fees with respect thereto; (c) costs and expenses of preserving and protecting the
Collateral; (d) costs and expenses paid or incurred in connection with obtaining payment of the
Obligations, enforcing the security interests and liens of Lender, selling or otherwise realizing
upon the Collateral, and otherwise enforcing the provisions of this Agreement and the other
Financing Agreements or defending any claims made or threatened against Lender arising out of the
transactions contemplated hereby and thereby (including preparations for and consultations
concerning any such matters); (e) all out-of-pocket expenses and costs heretofore and from time to
time hereafter incurred by Lender during the course of periodic field examinations of the
Collateral and Borrower’s operations, plus a per diem charge at the rate of $750 per person per day
for Lender’s examiners in the field and office; and (f) the fees and disbursements of counsel
(including legal assistants) to Lender in connection with any of the foregoing.

9.21. Further Assurances. At the request of Lender at any time and from time to time,
Borrower shall, at its expense, duly execute and deliver, or cause to be duly executed and
delivered, such further agreements, documents and instruments, and do or cause to be done such
further acts as may be necessary or proper to evidence, perfect, maintain and enforce the security
interests and the priority thereof in the Collateral and to otherwise effectuate the provisions or
purposes of this Agreement or any of the other Financing Agreements. Lender may at any time and
from time to time request a certificate from an officer of Borrower representing that all
conditions precedent to the making of Loans contained herein are satisfied. In the event of such
request by Lender, Lender may, at its option, cease to make any Loans until Lender has received
such certificate and, in addition, Lender has determined that such conditions are satisfied.

SECTION 10

EVENTS OF DEFAULT AND REMEDIES

10.1. Events of Default. The occurrence or existence of any one or more of the
following events are referred to herein individually as an “Event of Default,” and collectively as
“Events of Default”:

(a) (i) Borrower fails to pay any of the Obligations when due or (ii) Borrower fails to
perform any of the covenants contained in Sections 9.3, 9.4, 9.13, 9.14, 9.15, and 9.16 of this
Agreement and such failure shall continue for ten (10) days; provided, that, such
ten (10) day period shall not apply in the case of: (A) any failure to observe any such covenant
which is not capable of being cured at all or within such ten (10) day period or which has been the
subject of a prior failure within a six (6) month period or (B) an intentional breach by Borrower
of any such covenant or (iii) Borrower fails to perform any of the terms, covenants, conditions or
provisions contained in this Agreement or any of the other Financing Agreements other than those
described in Sections 10.1(a)(i) and 10.1(a)(ii) above;

(b) any representation, warranty or statement of fact made by Borrower to Lender in this
Agreement, the other Financing Agreements or any other written agreement, schedule, confirmatory
assignment or otherwise shall when made or deemed made be false or misleading in any material
respect;

(c) any Obligor revokes, terminates or purports to revoke or terminate or fails to perform any
of the terms, covenants, conditions or provisions of any guarantee, endorsement or other agreement
of such party in favor of Lender;

(d) any judgment for the payment of money is rendered against Borrower in excess of $250,000
in any one case or in excess of $500,000 in the aggregate (to the extent not covered by insurance
where the insurer has assumed responsibility in writing for such judgment) and shall remain
undischarged or unvacated for a period in excess of thirty (30) days or execution shall at any time
not be effectively stayed, or any judgment other than for the payment of money, or injunction,
attachment, garnishment or execution reasonably expected to have a Material Adverse Effect;

(e) any Obligor (being a natural person or a general partner of an Obligor which is a
partnership) dies or Borrower or any Obligor, which is a partnership, limited liability company,
limited liability partnership or a corporation, dissolves or suspends or discontinues doing
business;

(f) Borrower or any Obligor makes an assignment for the benefit of creditors, makes or sends
notice of a bulk transfer or calls a meeting of its creditors or principal creditors in connection
with a moratorium or adjustment of the Indebtedness due to them;

(g) a case or proceeding under the bankruptcy laws of the United States of American or
hereafter in effect or under any insolvency, reorganization, receivership, readjustment of debt,
dissolution or liquidation law or statute of any jurisdiction now or hereafter in effect (whether
at law or in equity) is filed against Borrower or any Obligor or all or any part of its properties
and such petition or application is not dismissed within thirty (30) days after the date of its
filing or Borrower or any Obligor shall file any answer admitting or not contesting such petition
or application or indicates its consent to, acquiescence in or approval of, any such action or
proceeding or the relief requested is granted sooner;

(h) a case or proceeding under the bankruptcy laws of the United States of America now or
hereafter in effect or under any insolvency, reorganization, receivership, readjustment of debt,
dissolution or liquidation law or statute of any jurisdiction now or hereafter in effect (whether
at a law or equity) is filed by Borrower or any Obligor or for all or any part of its property; or

(i) any default in respect of any Indebtedness of Borrower (other than Indebtedness owing to
Lender hereunder), in any case in an amount in excess of $500,000, which default continues for more
than the applicable cure period, if any, with respect thereto and/or is not waived in writing by
the other parties thereto, or any material default by Borrower under any Material Contract, which
default continues for more than the applicable cure period, if any, with respect thereto and/or is
not waived in writing by the other parties thereto

(j) any material provision hereof or of any of the other Financing Agreements shall for any
reason cease to be valid, binding and enforceable with respect to any party hereto or thereto
(other than Lender) in accordance with its terms, or any such party shall challenge the
enforceability hereof or thereof, or shall assert in writing, or take any action or fail to take
any action based on the assertion that any provision hereof or of any of the other Financing
Agreements has ceased to be or is otherwise not valid, binding or enforceable in accordance with
its terms, or any security interest provided for herein or in any of the other Financing Agreements
shall cease to be a valid and perfected first priority security interest in any of the Collateral
purported to be subject thereto (except as otherwise permitted herein or therein);

(k) an ERISA Event shall occur which results in or could reasonably be expected to result in
liability of Borrower in an aggregate amount in excess of $250,000;

(l) any Change of Control;

(m) the indictment of Borrower under any criminal statute, or commencement of criminal or
civil proceedings against Borrower relating to the operation or conduct of the business of a
Borrower and pursuant to which statute or proceedings the penalties or remedies sought or available
include forfeiture of any of the property of Borrower which may have a Material Adverse Effect;

(n) there shall be a material adverse change in the business, assets or prospects of Borrower
or Parent after the date hereof; or

(o) there shall be an event of default under any of the other Financing Agreements.

10.2. Remedies.

(a) At any time an Event of Default exists or has occurred and is continuing, Lender shall
have all rights and remedies provided in this Agreement, the other Financing Agreements, the UCC
and other applicable law, all of which rights and remedies may be exercised without notice to or
consent by Borrower or any Obligor, except as such notice or consent is expressly provided for
hereunder or required by applicable law. All rights, remedies and powers granted to Lender
hereunder, under any of the other Financing Agreements, the UCC or other applicable law, are
cumulative, not exclusive and enforceable, in Lender’s discretion, alternatively, successively, or
concurrently on any one or more occasions, and shall include, without limitation, the right to
apply to a court of equity for an injunction to restrain a breach or threatened breach by Borrower
of this Agreement or any of the other Financing Agreements. Lender may, at any time or times,
proceed directly against Borrower or any Obligor to collect the Obligations without prior recourse
to the Collateral.

(b) Without limiting the foregoing, at any time an Event of Default exists or has occurred and
is continuing, Lender may, in its discretion and without limitation, (i) accelerate the payment of
all Obligations and demand immediate payment thereof to Lender (provided, that, upon the occurrence
of any Event of Default described in Sections 10.1 (g) and 10.1(h), all Obligations shall
automatically become immediately due and payable), (ii) with or without judicial process or the aid
or assistance of others, enter upon any premises on or in which any of the Collateral may be
located and take possession of the Collateral or complete processing, manufacturing and repair of
all or any portion of the Collateral, (iii) require Borrower, at Borrower’s expense, to assemble
and make available to Lender any part or all of the Collateral at any place and time designated by
Lender, (iv) collect, foreclose, receive, appropriate, setoff and realize upon any and all
Collateral, (v) remove any or all of the Collateral from any premises on or in which the same may
be located for the purpose of effecting the sale, foreclosure or other disposition thereof or for
any other purpose, (vi) sell, lease, transfer, assign, deliver or otherwise dispose .of any and all
Collateral (including entering into contracts with respect thereto, public or private sales at any
exchange, broker’s board, at any office of Lender or elsewhere) at such prices or terms as Lender
may deem reasonable, for cash, upon credit or for future delivery, with the Lender having the right
to purchase the whole or any part of the Collateral at any such public sale, all of the foregoing
being free from any right or equity of redemption of Borrower, which right or equity of redemption
is hereby expressly waived and released by Borrower and/or (vii) terminate this Agreement. If any
of the Collateral is sold or leased by Lender upon credit terms or for future delivery, the
Obligations shall not be reduced as a result thereof until payment therefor is finally collected by
Lender. If notice of disposition of Collateral is required by law, ten (10) days prior notice by
Lender to Borrower designating the time and place of any public sale or the time after which any
private sale or other intended disposition of Collateral is to be made, shall be deemed to be
reasonable notice thereof and Borrower waives any other notice. In the event Lender institutes an
action to recover any Collateral or seeks recovery of any Collateral by way of prejudgment remedy,
Borrower waives the posting of any bond which might otherwise be required.

(c) Lender may, at any time or times that an Event of Default exists or has occurred and is
continuing, enforce Borrower’s rights against any account debtor, secondary obligor or other
obligor in respect of any of the Accounts or other Receivables. Without limiting the generality of
the foregoing, Lender may at such time or times (i) notify any or all account debtors; secondary
obligors or other obligors in respect thereof that the Receivables have been assigned to Lender and
that Lender has a security interest therein and Lender may direct any or all accounts debtors,
secondary obligors and other obligors to make payment of Receivables directly to Lender, (ii)
extend the time of payment of, compromise, settle or adjust for cash, credit, return of merchandise
or otherwise, and upon any terms or conditions, any and all Receivables or other obligations
included in the Collateral and thereby discharge or release the account debtor or any secondary
obligors or other obligors in respect thereof without affecting any of the Obligations, (iii)
demand, collect or enforce payment of any Receivables or such other obligations, but without any
duty to do so, and Lender shall not be liable for its failure to collect or enforce the payment
thereof nor for the negligence of its agents or attorneys with respect thereto and (iv) take
whatever other action Lender may deem necessary or desirable for the protection of its interests.
At any time that an Event of Default exists or has occurred and is continuing, at Lender’s request,
all invoices and statements sent to any account debtor shall state that the Accounts and such other
obligations have been assigned to Lender and are payable directly and only to Lender and Borrower
shall deliver to Lender such originals of documents evidencing the sale and delivery of goods or
the performance of services giving rise to any Accounts as Lender may require. In the event any
account debtor returns Inventory when an Event of Default exists or has occurred and is continuing,
Borrower shall, upon Lender’s request, hold the returned Inventory in trust for Lender, segregate
all returned Inventory from all of its other property, dispose of the returned Inventory solely
according to Lender’s instructions, and not issue any credits, discounts or allowances with respect
thereto without Lender’s prior written consent.

(d) To the extent that applicable law imposes duties on Lender to exercise remedies in a
commercially reasonable manner (which duties cannot be waived under such law), Borrower
acknowledges and agrees that it is not commercially unreasonable for Lender (i) to fail to incur
expenses reasonably deemed significant by Lender to prepare Collateral for disposition or otherwise
to complete raw material or work in process into finished goods or other finished products- for
disposition, (ii) to fail to obtain third party consents for access to Collateral to be disposed
of, or to obtain or, if not required by other law, to fail to obtain consents of any Governmental
Authority or other third party for the collection or disposition of Collateral to be collected or
disposed of, (iii) to fail to exercise collection remedies against account debtors, secondary
obligors, or other persons obligated on Collateral or to remove liens or encumbrances on or any
adverse claims against Collateral, (iv) to exercise collection remedies against account debtors and
other persons obligated on Collateral directly or through the use of collection agencies and other
collection specialists, (v) to advertise dispositions of Collateral through publications or media
of general circulation, whether or not the Collateral is of a specialized nature, (vi) to contact
other persons, whether or not in the same business as Borrower, for expressions of interest in
acquiring all or any portion of the Collateral, (vii) to hire one or more professional auctioneers
to assist in the disposition of Collateral, whether or not the collateral is of a specialized
nature, (viii) to dispose of Collateral by utilizing Internet sites that provide for the auction of
assets of the types included in the Collateral or that have the reasonable capability of doing so,
or that match buyers and sellers of assets, (ix) to dispose of assets in wholesale rather than
retail markets, (x) to disclaim disposition warranties, (xi) to purchase insurance or credit
enhancements to insure Lender against risks of loss, collection or disposition of Collateral or to
provide to the Lender a guaranteed return from the collection or disposition of Collateral, or
(xii) to the extent deemed appropriate by the Lender, to obtain the services of other brokers,
investment bankers, consultants and other professionals to assist the Lender in the collection or
disposition of any of the Collateral. Borrower acknowledges that the purpose of this section is to
provide non-exhaustive indications of what actions or omissions by Borrower would not be
commercially unreasonable in Lender’s exercise of remedies against the Collateral and that other
actions or omissions by Lender shall not be deemed commercially unreasonable solely on account of
not being indicated in this section. Without limitation of the foregoing, nothing contained in
this section shall be construed to grant any rights to Borrower or to impose any duties on Lender
that would not have been granted or imposed by this Agreement or by applicable law in the absence
of this section.

(e) For the purpose of enabling Lender to exercise the rights and remedies hereunder, Borrower
hereby grants to Lender, to the extent assignable, an irrevocable, non-exclusive license
(exercisable at any time an Event of Default shall exist or have occurred and for so long as the
same is continuing without payment of royalty or other compensation to Borrower) to use, assign,
license or sublicense any of the trademarks, service-marks, trade names, business ,names, trade
styles, designs, logos and other source of business identifiers and other Intellectual Property and
general intangibles now owned or hereafter acquired by Borrower, wherever the same maybe located,
including in such license reasonable access to all media in which any of the licensed items may be
recorded or stored and to all computer programs used for the compilation or printout thereof.

(f) Lender may apply the cash proceeds of Collateral actually received by Lender from any
sale, lease, foreclosure or other disposition of the Collateral to payment of the Obligations, in
whole or in part and in such order as Lender may elect, whether or not then due. Borrower shall
remain liable to Lender for the payment of any deficiency with interest at the highest rate
provided for herein and all costs and expenses of collection or enforcement, including attorneys’
fees and legal expenses.

(g) Without limiting the foregoing, upon the occurrence of a Default or Event of Default,
Lender may, at its option, without notice, (i) either (A) cease making Loans or reduce the lending
formulas or amounts of Loans available to Borrower and/or (B) terminate any provision of this
Agreement providing for any future Loans to be made by Lender to Borrower; and (ii) establish such
Reserves as Lender determines without limitation or restriction, anything to the contrary herein
notwithstanding.

SECTION 11

JURY TRIAL WAIVER; OTHER WAIVERS AND CONSENTS; GOVERNING LAW

11.1. Governing Law, Choice of Forum; Service of Process; Jury Trial Waiver.

(a) The validity, interpretation and enforcement of this Agreement and the other Financing
Agreements and any dispute arising out of the relationship between the parties hereto, whether in
contract, tort, equity or otherwise, shall be governed by the internal laws of the State of Texas
(without giving effect to principles of conflicts of law).

(b) Borrower and Lender irrevocably consent and submit to the non-exclusive jurisdiction of
the State of Texas and the United States District Court for the Northern District of Texas,
whichever Lender may elect, and waive any objection based on venue or forum non conveniens with
respect to any action instituted therein arising under this Agreement or any of the other Financing
Agreements or in any way connected with or related or incidental to the dealings of the parties
hereto in respect of this Agreement or any of the other Financing Agreements or the transactions
related hereto or thereto, in each case whether now existing or hereafter arising, and whether in
contract, tort, equity or otherwise, and agree that any dispute with respect to any such matters
shall be heard only in the courts described above (except that Lender shall have the right to bring
any action or proceeding against Borrower or its property in the courts of any other jurisdiction
which Lender deems necessary or appropriate in order to realize on the Collateral or to otherwise
enforce its rights against Borrower or its property).

(c) Borrower hereby waives personal service of any and all process upon it and consents that
all such service of process may be made by certified mail (return receipt requested) directed to
its address set forth herein and service so made shall be deemed to be completed five (5) days
after the same shall have been so deposited in the U.S. mails, or, at Lender’s option, by service
upon Borrower in any other manner provided under the rules of any such courts. Within thirty (30)
days after such service, Borrower shall appear in answer to such process, failing which Borrower
shall be deemed in default and judgment may be entered by Lender against Borrower for the amount of
the claim and other relief requested.

(d) BORROWER AND LENDER EACH HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND,
ACTION OR CAUSE OF ACTION (i) ARISING UNDER THIS AGREEMENT OR ANY OF THE OTHER FINANCING AGREEMENTS
OR (ii) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN
RESPECT OF THIS AGREEMENT OR ANY OF THE OTHER FINANCING AGREEMENTS OR THE TRANSACTIONS RELATED
HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT,
TORT, EQUITY OR OTHERWISE. BORROWER AND LENDER EACH HEREBY AGREES AND CONSENTS THAT ANY SUCH
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT
BORROWER OR LENDER MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS
WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY
JURY.

(e) Lender shall not have any liability to Borrower (whether in tort, contract, equity or
otherwise),for losses suffered by Borrower in connection with, arising out of, or in any way
related to the transactions or relationships contemplated by this Agreement, or any act, omission
or event occurring in connection herewith, unless it is determined by a final and non-appealable
judgment or court order binding on Lender, that the losses were the result of acts or omissions
constituting gross negligence or willful misconduct of Lender. Except as prohibited by law,
Borrower waives any right which it may have to claim or recover in any litigation with Lender any
special, exemplary, punitive or consequential damages or any damages other than, or in addition to,
actual damages. Borrower: (i) certifies that neither Lender nor any representative, agent or
attorney acting for or on behalf of Lender has represented, expressly or otherwise, that Lender
would not, in the event of litigation, seek to enforce any of the waivers provided for in this
Agreement or any of the other Financing Agreements and (ii) acknowledges that in entering into this
Agreement and the other Financing Agreements, Lender is relying upon, among other things, the
waivers and certifications set forth in this section and elsewhere herein and therein.

11.2. Waiver of Notices. Borrower hereby expressly waives demand, presentment,
protest and notice of protest and notice of dishonor with respect to any and all instruments and
chattel paper, included in or evidencing any of the Obligations or the Collateral, and any and all
other demands and notices of any kind or nature whatsoever with respect to the Obligations, the
Collateral and this Agreement, except such as are expressly provided for herein. No notice to or
demand on Borrower which Lender may elect to give shall entitle Borrower to any other or further
notice or demand in the same, similar or other circumstances.

11.3. Amendments and Waivers. Neither this Agreement nor any provision hereof shall
be amended, modified, waived or discharged orally or by course of conduct, but only by a written
agreement signed by an authorized officer of Lender, and as to amendments, as also signed by an
authorized officer of Borrower. Lender shall not, by any act, delay, omission or otherwise be
deemed to have expressly or impliedly waived any of its rights, powers and/or remedies unless such
waiver shall be in writing and signed by an authorized officer of Lender. Any such waiver shall be
enforceable only to the extent specifically set forth therein. A waiver by Lender of any right,
power and/or remedy on any one occasion shall not be construed as a bar to or waiver of any such
right, power and/or remedy which Lender would otherwise have on any future occasion, whether
similar in kind or otherwise.

11.4. Waiver of Counterclaims. Borrower waives all rights to interpose any claims,
deductions, setoffs or counterclaims of any nature (other then compulsory counterclaims) in any
action or proceeding with respect to this Agreement, the Obligations, the Collateral or any matter
arising therefrom or relating hereto or thereto.

11.5. Indemnification. Borrower shall indemnify and hold Lender, and its directors,
agents, employees and counsel, harmless from and against any and all losses, claims, damages,
liabilities, costs or expenses (including attorneys’ fees and expenses) imposed on, incurred by or
asserted against any of them in connection with any litigation, investigation, claim or proceeding
commenced or threatened related to the negotiation, preparation, execution, delivery, enforcement,
performance or administration of this Agreement, any other Financing Agreements, or any undertaking
or proceeding related to any of the transactions contemplated hereby or any act, omission, event or
transaction related or attendant thereto, including amounts paid in settlement, court costs, and
the fees and expenses of counsel except that Borrower shall not have any obligation under this
section to indemnify an Indemnitee with respect to a matter covered hereby resulting from the gross
negligence or willful misconduct of such Indemnitee as determined pursuant to a final,
non-appealable order of a court of competent jurisdiction (but without limiting the obligations of
Borrower as to any other Indemnitee). To the extent that the undertaking to indemnify, pay and
hold harmless set forth in this section may be unenforceable because it violates any law or public
policy, Borrower shall pay the maximum portion which it is permitted to pay under applicable law to
Lender in satisfaction of indemnified matters under this section. To the extent permitted by
applicable law, Borrower shall not assert, and Borrower hereby waives any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages
(as opposed to direct or actual damages) arising out of, in connection with, or as a result of,
this Agreement, any of the other Financing Agreements or any undertaking or transaction
contemplated hereby. All amounts due under this section shall be payable upon demand. The
foregoing indemnity shall survive the payment of the Obligations and the termination or non-renewal
of this Agreement.

SECTION 12

TERM OF AGREEMENT; MISCELLANEOUS

12.1. Term.

(a) This Agreement and the other Financing Agreements shall become effective as of the date
set forth on the first page hereof and shall continue in full force and effect for a term ending on
May 17, 2004 (the “Renewal Date”), and from year to year thereafter, unless sooner
terminated pursuant to the terms hereof. Lender or Borrower may terminate this Agreement and the
other Financing Agreements effective on the Renewal Date or on the anniversary of the Renewal Date
in any year by giving to the other party at least sixty (60) days prior written notice; provided,
that, this Agreement and all other Financing Agreements must be terminated simultaneously. In
addition, Borrower may terminate this Agreement at any time upon ten (10) days prior written notice
to Lender (which notice shall be irrevocable) and Lender may terminate this Agreement at any time
on or after an Event of Default. Upon the effective date of termination or non-renewal of this
Agreement, Borrower shall pay to Lender, in full, all outstanding and unpaid Obligations and shall
furnish cash collateral to Lender (or at Lender’s option, a letter of credit issued for the account
of Borrower and at Borrower’s expense, in form and substance satisfactory to Lender, by an issuer
acceptable to Lender and payable to Lender as beneficiary) in such amounts as Lender determines are
reasonably necessary to secure (or reimburse) Lender from loss, cost, damage or expense, including
attorneys’ fees and legal expenses, in connection with any contingent Obligations and checks or
other payments provisionally credited to the Obligations and/or as to which Lender has not yet
received final and indefeasible payment. Such payments in respect of the Obligations and cash
collateral shall be remitted by wire transfer in Federal funds to such bank account of Lender, as
Lender may, in its discretion, designate in writing to Borrower for such purpose. Interest shall
be due until and including the next business day, if the amounts so paid by Borrower to the bank
account designated by Lender are received in such bank account later than 12:00 noon, time.

(b) No termination of this Agreement or the other Financing Agreements shall relieve on
discharge Borrower of its respective duties, obligations and covenants under this Agreement or the
other Financing Agreements until all Obligations have been fully and finally discharged and paid,
and Lender’s continuing security interest in the Collateral and the rights and remedies of Lender
hereunder, under the other Financing Agreements and applicable law, shall remain in effect until
all such Obligations have been fully and finally discharged and paid. Accordingly, Borrower waives
any rights which it may have under the UCC to demand the filing of termination statements with
respect to the Collateral, and Lender shall not be required to send such termination statements to
Borrower, or to file them with any filing office, unless and until this Agreement is terminated in
accordance with its terms and all of the Obligations are paid and satisfied in full in immediately
available funds.

(c) If for any reason this Agreement is terminated prior to the end of the then current term
or renewal term of this Agreement, in view of the impracticality and extreme difficulty of
ascertaining actual damages and by mutual agreement of the parties as to a reasonable calculation
of Lender’s lost profits as a result thereof, Borrower agrees to pay to Lender, upon the effective
date of such termination, an early termination fee in an amount equal to one-half of one percent
(.05%) of the Maximum Credit.

Such early termination fee shall be presumed to be the amount of damages sustained by Lender
as a result of such early termination and Borrower agrees that it is reasonable under the
circumstances currently existing. In addition, Lender shall be entitled to such early termination
fee upon the occurrence of any Event of Default described in Sections 10.1 (g) and 10.1 (h) hereof,
even if Lender does not exercise its right to terminate this Agreement, but elects, at its option,
to provide financing to Borrower or permit the use of cash collateral under the United States
Bankruptcy Code. The early termination fee provided for in this section shall be deemed included
in the Obligations.

12.2. Interpretative Provisions.

(a) All terms used herein which are defined in Article 1 or Article 9 of the UCC shall have
the meanings given therein unless otherwise defined in this Agreement.

(b) All references to the plural herein shall also mean the singular and to the singular shall
also mean the plural unless the context otherwise requires.

(c) All references to Borrower and Lender pursuant to the definitions set forth in the
recitals hereto, or to any other person herein, shall include their respective successors and
assigns.

(d) The words “hereof’, “herein,” “hereunder,” “this Agreement” and words of similar import
when used in this Agreement shall refer to this Agreement as a whole and not any particular
provision of this Agreement and as this Agreement now exists or may hereafter be amended, modified,
supplemented, extended, renewed, restated or replaced.

(e) The word “including” when used in this Agreement shall mean “including, without
limitation”.

(f) All references to the term “good faith” used herein when applicable to Lender shall mean;
notwithstanding anything to the contrary contained herein or in the UCC, honesty in fact in the
conduct or transaction concerned. Borrower shall have the burden of proving any lack of good faith
on the part of Lender alleged by Borrower at any time.

(g) An Event of Default shall exist or continue or be continuing until such Event of Default
is waived in accordance with Section 11.3 or is cured in a manner satisfactory to Lender, if such
Event of Default is capable of being cured as determined by Lender.

(h) Any accounting term used in this Agreement shall have, unless otherwise specifically
provided herein, the meaning customarily given in accordance with GAAP, and all financial
computations hereunder shall be computed unless otherwise specifically provided herein, in
accordance with GAAP as consistently applied and using the same method for inventory valuation as
used in the preparation of the financial statements of Borrower most recently received by Lender
prior to the date hereof.

(i) 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”.

(j) Unless otherwise expressly provided herein, (i) references herein to any agreement,
document or instrument shall be deemed to include all subsequent amendments, modifications,
supplements, extensions, renewals, restatements or replacements with respect thereto, but only to
the extent the same are not prohibited by the terms hereof or of any other Financing Agreement, and
(ii) references to any statute or regulation are to be construed as including all statutory and
regulatory provisions consolidating, amending, replacing, recodifying, supplementing or
interpreting the statute or regulation.

(k) The captions and headings of this Agreement are for convenience of reference only and
shall not affect the interpretation of this Agreement.

(l) This Agreement and other Financing Agreements may use several different limitations, tests
or measurements to regulate the same or similar matters. All such limitations, tests and
measurements are cumulative and shall each be performed in accordance with their terms.

(m) This Agreement and the other Financing Agreements are the result of negotiations among and
have been reviewed by counsel to Lender and the other parties, and are the products of all parties.
Accordingly, this Agreement and the other Financing Agreements shall not be construed against
Lender merely because of Lender’s involvement in their preparation.

12.3. Notices. All notices, requests and demands hereunder shall be in writing and
deemed ,to have been given or made: if delivered in person, immediately upon delivery; if by telex,
telegram or facsimile transmission, immediately upon sending and upon confirmation of receipt; if
by nationally recognized overnight courier service with instructions to deliver the next Business
Day, one (1) Business Day after sending; and if by certified mail, return receipt requested, five
(5) days after mailing. All notices, requests and demands upon the parties are to be given to the
following addresses (or to such other address as any party may designate by notice in accordance
with this section):

	 	 	 	 	 
	If to Borrower:
	 	TST Impreso, Inc.

	 
	 	652 Southwestern Boulevard
	 
	 	Coppell, TX  75019

	 
	 	Attention:  Marshall Sorokasz

	 
	 	Telephone No.:  (972) 462-0100

	 
	 	Telecopy No.:  (972) 462-7764

	with a copy to:
	 	Tammy Yahiel
	 
	 	TST Impreso, Inc.

	 
	 	652 Southwestern Boulevard
	 
	 	Coppell, TX  75019

	 
	 	Telephone No.:  (972) 462-0100

	 
	 	Telecopy No.:  (972) 393-5692

	If to Lender:
	 	Congress Financial Corporation (Southwest)

	 
	 	1201 Main Street
	 
	 	Dallas, TX  75202

	 
	 	Attention:  Joe Curdy

	 
	 	Telephone No.:  (214) 761-9044

	 
	 	Telecopy No.:  (214) 748-9118

12.4. Partial Invalidity. If any provision of this Agreement is held to be invalid or
unenforceable, such invalidity or unenforceability shall not invalidate this Agreement as a whole,
but this Agreement shall be construed as though it did not contain the particular provision held to
be invalid or unenforceable and the rights and obligations of the parties shall be construed and
enforced only to such extent as shall be permitted by applicable law.

12.5. Confidentiality.

(a) Lender shall use all reasonable efforts to keep confidential, in accordance with its
customary procedures for handling confidential information and safe and sound lending practices,
any non-public information supplied to it by Borrower pursuant to this Agreement, provided,
that, nothing contained herein shall limit the disclosure of any such information: (i) to
the extent required by statute, rule, regulation, subpoena or court order, (ii) to bank examiners
and other regulators, auditors and/or accountants, (iii) in connection with any litigation to which
Lender is a party relating to this Agreement, (iv) to Lender or any Affiliate of Lender or to any
Participant (or prospective Participant) so long as such Participant (or prospective Participant)
shall have been instructed to treat such information as confidential in accordance with this
section, or (v) to counsel for any Participant or Lender (or prospective Participant so long as
clause (iv) of this section is satisfied as to such person).

(b) In the event that Lender receives a request or demand to disclose any confidential
information pursuant to any subpoena or court order, Lender agrees (i) to the extent permitted by
applicable law or if permitted by applicable law, statute, rule or regulation to the extent Lender
determines in good faith that it will not create any risk of liability to Lender, that Lender will
promptly notify Borrower of such request so that Borrower may seek a protective order or other
appropriate relief or remedy and (ii) if disclosure of such information is required, disclose such
information and, subject to reimbursement by Borrower of Lender’s reasonable expenses, cooperate
with Borrower in reasonable efforts to obtain an order or other reliable assurance that
confidential treatment will be accorded to such portion of the disclosed information which Borrower
so designates, to the extent permitted by applicable law or if permitted by applicable law, to the
extent Lender determines in good faith that it will not create any risk of liability to Lender.

(c) In no event shall this section or any other provision of this Agreement or applicable law
be deemed: (i) to apply to or restrict disclosure of information that has been or is made public by
Borrower or any third party, (ii) to apply to or restrict disclosure of information that was or
becomes available to Lender from a person other than Borrower, (iii) require Lender to return any
materials furnished by Borrower to Lender or (iv) prevent Lender from responding to routine
informational requests in accordance with the Code of Ethics for the Exchange of Credit
Information promulgated by The Robert Morris Associates or other applicable industry standards
relating to the exchange of credit information. The obligations of Lender under this section shall
supersede and replace the obligations of Lender under any confidentiality letter signed prior to
the date hereof.

12.6. Successors. This Agreement, the other Financing Agreements and any other
document referred to herein or therein shall be binding upon and inure to the benefit of and be
enforceable by Lender, Borrower and their respective successors and assigns, except that Borrower
may not assign its rights under this Agreement, the other Financing Agreements and any other
document referred to herein or therein without the prior written consent of Lender. Any such
purported assignment without such express prior written consent shall be void. Lender may, after
notice to Borrower, assign its rights and delegate its obligations under this Agreement and the
other Financing Agreements and further may assign, or sell participations in, all or any part of
the Loans or any other interest herein to ^another financial institution or other person, in which
event, the assignee or participant shall have, to the extent of such assignment or participation,
the same rights and benefits as it would have if it were the Lender hereunder, except as otherwise
provided by the terms of such assignment or participation. The terms and provisions of this
Agreement and the other Financing Agreements are for the purpose of defining the relative rights
and obligations of Borrower and Lender with respect to the transactions contemplated hereby and
there shall be no third party beneficiaries of any of the terms and provisions of this Agreement or
any of the other Financing Agreements.

12.7. Entire Agreement. This Agreement, the other Financing Agreements, any
supplements hereto or thereto, and any instruments or documents delivered or to be delivered in
connection herewith or therewith represents the entire agreement and understanding concerning the
subject matter hereof and thereof between the parties hereto, and supersede all other prior
agreements, understandings, negotiations and discussions, representations, warranties, commitments,
proposals, offers and contracts concerning the subject matter hereof, whether oral or written. In
the event of any inconsistency between the terms of this Agreement and any schedule or exhibit
hereto, the terms of this Agreement shall govern.

12.8. Counterparts, Etc. This Agreement or any of the other Financing Agreements may
be executed in any number of counterparts, each of which shall be an original, but all of which
taken together shall constitute one and the same agreement. Delivery of an executed counterpart of
this Agreement or any of the other Financing Agreements by fax shall have the same force and effect
as the delivery of an original executed counterpart of this Agreement or any of such other
Financing Agreements. Any party delivering an executed counterpart of any such agreement by fax
shall also deliver an original executed counterpart, but the failure to do so shall not affect the
validity, enforceability or binding effect of such agreement.

12.9. Amendment and Restatement. This Agreement and the financing commitments set
forth herein constitute an amendment, modification and restatement, but not an extinguishment or
novation, of the Original Agreement and the financing commitments set forth therein. This
Agreement and the Financing Agreements are not intended as, and shall not be construed as, a
release, impairment or novation of the indebtedness, liabilities and obligations of the Borrower
under the Original Agreement and the other documents contemplated thereby or the liens and security
interests granted therein, all of which liens and security interests are hereby modified and
affirmed. With respect to matters relating to the period of this Agreement prior to the date
hereof, all of the provisions of the Original Agreement are hereby ratified and confirmed, and
shall remain in full force and effect. Any indemnification or other provisions of the Original
Agreement or the Financing Agreements which were expressly intended to survive the termination of
the Original Agreement, shall not be terminated or otherwise affected by the provisions hereof.
The Original Agreement, as modified by the provisions of this Agreement, shall be construed as one
agreement.

[The Remainder of this Page Intentionally Left Blank]

2

IN WITNESS WHEREOF, Lender and Borrower have caused these presents to be duly executed
as of the day and year first above written.

	 	 	 
	LENDER	 	BORROWER
	CONGRESS FINANCIAL CORPORATION

	 	TST/IMPRESO, INC., a Delaware

corporation
	 
	 	 
	(SOUTHWEST)

	 	

	 
	 	 
	
 
	 	By: /s/ Marshall D. Sorokwasz
	
 
	 	 
	 
	 	 
	By: /s/ Joe. T Curdy   

	 	Marshall D. Sorokwasz
	 

	 	

	 
	 	 
	Name: Joe. T Curdy

	 	Title: President
	 
	 	 
	Title: Vice President

	 	

	 
	 	 
	
 
	 	TST/IMPRESO OF CALIFORNIA, INC.,

a California corporation
	 
	 	 
	
 
	 	By: /s/ Marshall D. Sorokwasz
	
 
	 	 
	 
	 	 
	
 
	 	Marshall D. Sorokwasz
	 
	 	 
	
 
	 	President

3

FIRST AMENDMENT TO AMENDED AND RESTATED

LOAN AND SECURITY AGREEMENT

THIS FIRST AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this
“Amendment”) is made and entered into as of the 6th day of May, 2004 by and
among CONGRESS FINANCIAL CORPORATION (SOUTHWEST), a Texas corporation (“Lender”), and
TST/IMPRESO, INC., a Delaware corporation, which is the successor-in-interest by merger to
TST/Impreso, Inc., a Texas corporation (“TST”), TST/IMPRESO OF CALIFORNIA, INC., a
California corporation (“TST California” and collectively with TST, the
“Borrower”).

WHEREAS, Borrower and Lender are parties to that certain Amended and Restated Loan and
Security Agreement dated as of October 28, 2002 (as amended from time to time, the “Loan
Agreement”);

WHEREAS, Borrower and Lender desire to amend the Loan Agreement in the manner provided below;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

SECTION 13

definitions

13.1. Definitions. Capitalized terms used in this Amendment, to the extent not
otherwise defined herein, shall have the same meaning as in the Loan Agreement, as amended hereby.

SECTION 14

amendments

14.1. Amendment to Section 1 of the Loan Agreement. Effective as of the date hereof:

(a) Section 1 of the Loan Agreement is hereby amended by amending and restating the
definitions of “Borrowing Base”, “Interest Rate”, and “Maximum Credit” contained therein in their
entirety to read as follows:

“‘Borrowing Base’ shall mean, at any time, the amount equal to: (a)
eighty-five percent (85%) of the Net Amount of Eligible Accounts, plus (b)
the lesser of: (i) the sum of fifty-five percent (55%) percent of the Value of
Eligible Inventory, or (ii) $10,000,000, less (c) any Reserves. The amounts
of Eligible Inventory shall, at Lender’s option, be determined based on the lesser
of the amount of Inventory set forth in the general ledger of Borrower or the
perpetual inventory record maintained by Borrower.

‘Interest Rate’ shall mean,

(a) Subject to clause (b) of this definition below:

(i) as to Prime Rate Loans, a rate per annum equal to the sum of the
“Applicable Prime Rate Margin” if the Excess Availability for the Borrower
is at or within the amounts indicated for such percentage (set forth below),
plus the Prime Rate,

(ii) as to Eurodollar Rate Loans, a rate per annum equal to the sum of
the corresponding “Applicable Eurodollar Rate Margin” if the Excess
Availability is at or within the amounts indicated from such percentage (set
forth below), plus the Adjusted Eurodollar Rate (in each case, based on the
Eurodollar Rate applicable for the Interest Period selected by Borrower, as
in effect three (3) Business Days after the date of receipt by Lender of the
request of Borrower for such Eurodollar Rate Loans in accordance with the
terms hereof, whether such rate is higher or lower than any rate previously
quoted to Borrower).

	 	 	 	 	 	 	 	 	 
	 
	 	Applicable Prime                
	 	Applicable Eurodollar

	Excess Availability
	 	Rate Margin                     
	 	Rate Margin
	 
	 	 	 	 	 	 	 	 
	$10,000,001 or more
	 		0	%	 		2.25	%
	 
	 	 	 	 	 	 	 	 
	$5,000,000 to $10,000,000
	 		0	%	 		2.50	%
	 
	 	 	 	 	 	 	 	 
	less than $5,000,000
	 		.25	%	 		2.75	%
	 
	 	 	 	 	 	 	 	 

(b) Notwithstanding anything to the contrary contained in clause
(a) of this definition, the Interest Rate shall mean the rate of two and
one-quarter percent (2.25%) per annum in excess of the Prime Rate as to Prime Rate
Loans and the rate of four and three-quarters percent (4.75%) per annum in excess of
the Adjusted Eurodollar Rate as to Eurodollar Rate Loans, at Lender’s option,
without notice, (i) either (A) for the period on and after the date of termination
or non-renewal hereof until such time as all Obligations are indefeasibly paid and
satisfied in full in immediately available funds, or (B) for the period from and
after the date of the occurrence of any Event of Default, and for so long as such
Event of Default is continuing as determined by Lender and (ii) on the Loans to at
any time outstanding in excess of the amounts available to Borrower under
Section 2 (whether or not such excess(es) arise or are made with or without
Lender’s knowledge or consent and whether made before or after an Event of Default).

‘Maximum Credit’ shall mean the amount of $10,000,000.”

(b) Section 1 of the Loan Agreement is hereby further amended by adding the
definitions of “First Amendment” and “First Amendment Effective Date” thereto, which shall read as
follows, respectively:

“‘First Amendment’ shall mean that certain First Amendment to Amended and
Restated Loan and Security Agreement by and between Lender and Borrower and entered
into as of the First Amendment Effective Date.

‘First Amendment Effective Date’ shall mean May 6, 2004.”

(c) Section 1 of the Loan Agreement is hereby further amended by deleting the
definition of “Working Capital” contained therein in its entirety.

14.2. Amendment to Section 3.2 of the Loan Agreement. Effective as of the date
hereof, Section 3.2 of the Loan Agreement is hereby amended by deleting the amount “$1,500”
contained therein and replacing such amount with “$1,000”.

14.3. Amendment to Section 3.3 of the Loan Agreement. Effective as of the date
hereof, Section 3.3 of the Loan Agreement is hereby amended and restated in its entirety as
follows:

“3.3. (a) Unused Line Fee. Borrower shall pay to Lender monthly an unused
line fee at a rate equal to one-quarter of one percent (0.25%) per annum calculated
upon (i) the amount by which $5,000,000 exceeds the average daily principal balance
of the outstanding Loans during such time as the average daily principal balance of
the outstanding Loans is less than or equal to $5,000,000, and (ii) the amount by
which $10,000,000 exceeds the average daily principal balance of the outstanding
Loans during such time as the average daily principal balance of the outstanding
Loans is greater than $5,000,000; during the immediately preceding month (or part
thereof) while this Agreement is in effect and for so long thereafter as any of the
Obligations are outstanding, which fee shall be payable on the first day of each
month in arrears.

(b) Amendment Fee. Borrower shall pay to Lender an amendment fee in the
aggregate amount of $15,000, $1,000 of which shall be payable on the First Amendment
Effective Date and which shall be deemed fully earned and nonrefundable on such
date, and the balance of which shall be payable in an amount equal to $1,000 per
month on the first day of each month for the first fourteen consecutive months
following the First Amendment Effective Date. The amendment fee shall be deemed
fully earned and nonrefundable on the date when the same is due and payable
hereunder.”

14.4. Amendment to Section 6.3(b) of the Loan Agreement. Effective as of the date
hereof, Section 6.3(b) of the Loan Agreement is hereby amended and restated in its entirety
as follows:

“(b) For purposes of calculating the amount of the Loans available to Borrower,
such payments will be applied (conditional upon final collection) to the Obligations
on the Business Day of receipt by Lender of immediately available funds in the
Lender Payment Account provided such payments and notice thereof are received in
accordance with Lender’s usual and customary practices as in effect from time to
time and within sufficient time to credit Borrower’s loan account on such day, and
if not, then on the next Business Day. For the purposes of calculating interest on
the Obligations, such payments or other funds received will be applied (conditional
upon final collection) to the Obligations two (2) Business Day following the date of
receipt of immediately available funds by Lender in the Lender Payment Account;
provided such payments or other funds and notice thereof are received in
accordance with Lender’s usual and customary practices as in effect from time to
time and within sufficient time to credit Borrower’s loan account on such day, and
if not, then on the next Business Day. In the event that at any time or from time
to time there are no Loans outstanding, Lender shall be entitled to an
administrative charge in an amount equivalent to the interest Lender would have
received for such Business Day had there been Loans outstanding on such day as
calculated by Lender in accordance with its customary practice.”

14.5. Amendment to Section 12.1(a) of the Loan Agreement. Effective as of the date
hereof, Section 12.1(a) of the Loan Agreement is hereby amended by deleting the date “May
17, 2004” contained therein and substituting “November 17, 2005” in lieu thereof.

14.6. Amendment to Section 12.1(c) of the Loan Agreement. Effective as of the date
hereof, Section 12.1(c) of the Loan Agreement is hereby amended and restated in its
entirety as follows:

“(c) If for any reason this Agreement is terminated prior to the end of the
then current term or renewal term of this Agreement, in view of the impracticality
and extreme difficulty of ascertaining actual damages and by mutual agreement of the
parties as to a reasonable calculation of Lender’s lost profits as a result thereof,
Borrower agrees to pay to Lender, upon the effective date of such termination, an
early termination fee in an amount equal to one-quarter of one percent (0.25%) of
the Maximum Credit.

Such early termination fee shall be presumed to be the amount of damages
sustained by Lender as a result of such early termination and Borrower agrees that
it is reasonable under the circumstances currently existing. In addition, Lender
shall be entitled to such early termination fee upon the occurrence of any Event of
Default described in Sections 10.1(g) and 10.1(h) hereof, even if
Lender does not exercise its right to terminate this Agreement, but elects, at its
option, to provide financing to Borrower or permit the use of cash collateral under
the United States Bankruptcy Code. The early termination fee provided for in this
Section 12.1 shall be deemed included in the Obligations. Notwithstanding
anything contained herein to the contrary, the early termination fee shall not apply
to any early termination as the result of a complete refinancing of the Loans by
First Union National Bank.”

SECTION 15

NO Waiver

15.1. No Waiver. Nothing contained in this Amendment shall be construed as a waiver
by Lender of any covenant or provision of the Loan Agreement, the other documents and agreements
relating hereto or thereto (hereinafter individually referred to as a “Loan Document” and
collectively referred to as the “Loan Documents”), this Amendment, or of any other contract
or instrument between Borrower and Lender, and the failure of Lender at any time or times hereafter
to require strict performance by Borrower of any provision thereof shall not waive, affect or
diminish any right of Lender to thereafter demand strict compliance therewith. Lender hereby
reserves all rights granted under the Loan Agreement, the other Loan Documents, this Amendment and
any other contract or instrument between Borrower and Lender.

SECTION 16

Conditions Precedent

16.1. Conditions. The effectiveness of this Amendment is subject to the satisfaction
of the following conditions precedent, unless specifically waived by Lender:

(a) Lender shall have received, in form and substance satisfactory to Lender in its sole
discretion, (i) this Amendment, duly executed by Borrower, and (ii) such additional documents,
instruments and information as Lender or its legal counsel may request;

(b) Borrower shall have paid to Lender the portion of the amendment fee payable on the date
hereof in accordance with Section 3.3(b) of the Loan Agreement, as amended hereby;

(c) The representations and warranties contained herein, in the Loan Agreement, as amended
hereby, and/or in the other Loan Documents shall be true and correct as of the date hereof as if
made on the date hereof;

(d) No default shall have occurred under the Loan Agreement and be continuing and no default
shall exist under the Loan Agreement unless such default has been specifically waived in writing by
Lender; and

(e) All corporate proceedings taken in connection with the transactions contemplated by this
Amendment and all documents, instruments and other legal matters incident thereto shall be
satisfactory to Lender and its legal counsel, Patton Boggs LLP.

SECTION 17

Ratifications, Representations and Warranties

17.1. Ratifications. The terms and provisions set forth in this Amendment shall
modify and supersede all inconsistent terms and provisions set forth in the Loan Agreement and
except as expressly modified and superseded by this Amendment, the terms and provisions of the Loan
Agreement are ratified and confirmed and shall continue in full force and effect.

17.2. Representations and Warranties. Borrower hereby represents and warrants to
Lender that (i) the execution, delivery and performance of this Amendment and any and all other
Loan Documents executed and/or delivered in connection herewith have been authorized by all
requisite corporate action on the part of Borrower and will not violate the Articles of
Incorporation or Bylaws of Borrower, (ii) the representations and warranties contained in the Loan
Agreement, as amended hereby, and any other Loan Document are true and correct on and as of the
date hereof as though made on and as of the date hereof, (iii) Borrower is in full compliance with
all covenants and agreements contained in the Loan Agreement, as amended hereby, and (iv) Borrower
has not amended its Articles of Incorporation or Bylaws since October 28, 2002.

SECTION 18

Miscellaneous

18.1. Survival of Representations and Warranties. All representations and warranties
made in the Loan Agreement or any other document or documents relating thereto, including, without
limitation, any Loan Document furnished in connection with this Amendment, shall survive the
execution and delivery of this Amendment and the other Loan Documents, and no investigation by
Lender or any closing shall affect the representations and warranties or the right of Lender to
rely upon them.

18.2. Reference to Loan Agreement. Each of the Loan Documents, including the Loan
Agreement and any and all other agreements, documents or instruments now or hereafter executed and
delivered pursuant to the terms hereof or pursuant to the terms of the Loan Agreement as amended
hereby, are hereby amended so that any reference in such Loan Documents to the Loan Agreement shall
mean a reference to the Loan Agreement as amended hereby.

18.3. Expenses of Lender. As provided in the Loan Agreement, Borrower agrees to pay
all reasonable costs and expenses incurred by Lender in connection with the preparation,
negotiation and execution of this Amendment and the other Loan Documents executed pursuant hereto
and any and all amendments, modifications, and supplements thereto, including without limitation
the reasonable costs and fees of Lender’s legal counsel, and all reasonable costs and expenses
incurred by Lender in connection with the enforcement or preservation of any rights under the Loan
Agreement, as amended hereby, or any other Loan Document, including without limitation the
reasonable costs and fees of Lender’s legal counsel.

18.4. Severability. Any provision of this Amendment held by a court of competent
jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this
Amendment and the effect thereof shall be confined to the provision so held to be invalid or
unenforceable. Furthermore, in lieu of each such invalid or unenforceable provision there shall be
added automatically as a part of this Amendment a valid and enforceable provision that comes
closest to expressing the intention of such invalid or unenforceable provision.

18.5. APPLICABLE LAW. THIS AMENDMENT AND ALL OTHER LOAN DOCUMENTS EXECUTED PURSUANT
HERETO SHALL BE DEEMED TO HAVE BEEN MADE AND TO BE PERFORMABLE IN DALLAS, TEXAS AND SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

18.6. Successors and Assigns. This Amendment is binding upon and shall inure to the
benefit of Lender and Borrower and their respective successors and assigns, except Borrower may not
assign or transfer any of its rights or obligations hereunder without the prior written consent of
Lender.

18.7. Counterparts. This Amendment may be executed in one or more counterparts, each
of which when so executed shall be deemed to be an original, but all of which when taken together
shall constitute one and the same instrument.

18.8. Effect of Waiver. No consent or waiver, express or implied, by Lender to or for
any breach of or deviation from any covenant or condition of the Loan Agreement shall be deemed a
consent or waiver to or of any other breach of the same or any other covenant, condition or duty.

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

18.10. NO ORAL AGREEMENTS. THE LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT
THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

18.11. RELEASE. BORROWER HEREBY ACKNOWLEDGES THAT IT HAS NO DEFENSE, COUNTERCLAIM,
OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO
REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY THE “OBLIGATIONS” OR TO SEEK
AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM LENDER. BORROWER HEREBY VOLUNTARILY AND
KNOWINGLY RELEASES AND FOREVER DISCHARGES LENDER, ITS PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS
AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS,
EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR
UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN
PART ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED, WHICH THE BORROWER MAY NOW OR HEREAFTER HAVE
AGAINST LENDER, ITS PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, IF ANY, AND
IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR
REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY “LOANS”, INCLUDING, WITHOUT LIMITATION, ANY
CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE
HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE LOAN AGREEMENT OR
OTHER AGREEMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT.

[Remainder of Page Intentionally Left Blank; Signature Page Follows]

4

IN WITNESS WHEREOF, this Amendment has been duly executed by Borrower and Lender to be
effective as of the date first above written.

	 	 	 
	LENDER:

	 	BORROWER:
	 

	 	 
	 
	 	 
	CONGRESS FINANCIAL CORPORATION

(SOUTHWEST)

	 	TST/IMPRESO, INC.

	 
	 	 
	By:/s/ Joe T. Curdy

	 	By: /s/Marshall D. Sorokwasz
	 

	 	 
	Name: Joe T. Curdy   

	 	Name: Marshall D. Sorokwasz
	 

	 	

	Title: Vice President

	 	Title: President
	 
	 	 
	Address:

	 	Chief Executive Office:
	 

	 	 
	 
	 	 
	5001 LBJ Freeway, Suite 1050

Dallas, Texas 75244

	 	652 Southwestern Boulevard

Coppell, Texas 75019
	 
	 	 
	
 
	 	TST/IMPRESO OF CALIFORNIA, INC.

	 	 	 	By: /s/Marshall D. Sorokwasz Name: Marshall D. Sorokwasz Title:President

Chief Executive Office:

652 Southwestern Boulevard

Coppell, Texas 75019

5

CONSENT, RATIFICATION AND RELEASE

The undersigned hereby consents to the terms of the within and foregoing Amendment, confirms
and ratifies the terms of that certain Guaranty, effective as of April 24, 2001, as amended from
time to time and as executed by the undersigned for the benefit of Lender (the “Guaranty
Documents”), and acknowledges that the Guaranty Documents are in full force and effect and
ratifies the same, that the undersigned has no defense, counterclaim, set-off or any other claim to
diminish the undersigned’s liability under such documents, that the undersigned’s consent is not
required to the effectiveness of the within and foregoing Amendment, and that no consent by the
undersigned is required for the effectiveness of any future amendment, modification, forbearance or
other action with respect to the Obligations, the Collateral, or any of the other Loan Documents.
THE UNDERSIGNED HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES LENDER, ITS
PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS,
ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN,
ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW
OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED,
WHICH THE UNDERSIGNED MAY NOW OR HEREAFTER HAVE AGAINST LENDER, ITS PREDECESSORS, AGENTS,
EMPLOYEES, SUCCESSORS AND ASSIGNS, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF
CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY “LOANS”,
INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR
RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND
REMEDIES UNDER THE LOAN AGREEMENT OR OTHER AGREEMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS
AMENDMENT.

IMPRESO, INC.

By: /s/ Marshall D. Sorokwasz

	 	 	 	Name: Marshall D. Sorokwasz

Title: President

SECOND AMENDMENT TO AMENDED AND RESTATED

LOAN AND SECURITY AGREEMENT

THIS SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this
“Amendment”) is made and entered into as of the 23rd day of July, 2004 by and
among CONGRESS FINANCIAL CORPORATION (SOUTHWEST), a Texas corporation (“Lender”), and
TST/IMPRESO, INC., a Delaware corporation, which is the successor-in-interest by merger to
TST/Impreso, Inc., a Texas corporation (“TST”), TST/IMPRESO OF CALIFORNIA, INC., a
California corporation (“TST California” and collectively with TST, the
“Borrower”).

WHEREAS, Borrower and Lender are parties to that certain Amended and Restated Loan and
Security Agreement dated as of October 28, 2002 (as amended from time to time, the “Loan
Agreement”);

WHEREAS, Borrower and Lender desire to amend the Loan Agreement in the manner provided below;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

SECTION 19

definitions

19.1. Definitions. Capitalized terms used in this Amendment, to the extent not
otherwise defined herein, shall have the same meaning as in the Loan Agreement, as amended hereby.

SECTION 20

amendments

20.1. Amendment to Section 1 of the Loan Agreement. Effective as of the date hereof:

(a) Section 1 of the Loan Agreement is hereby amended by amending and restating the
following definitions contained therein in their entirety to read as follows:

“‘Obligations’ shall mean any and all Loans, Letter of Credit
Accommodations and all other obligations, liabilities and indebtedness of every
kind, nature and description owing by Borrower to Lender and/or any of its
Affiliates, including principal, interest, charges, fees, costs and expenses,
however evidenced, whether as principal, surety, endorser, guarantor or otherwise,
whether arising under this Agreement or otherwise, whether now existing or
hereafter arising, whether arising before, during or after the initial or any
renewal term of this Agreement or after the commencement of any case with respect
to Borrower under the United States Bankruptcy Code or any similar statute
(including the payment of interest and other amounts which would accrue and become
due but for the commencement of such case, whether or not such amounts are allowed
or allowable in whole or in part in such case), whether direct or indirect,
absolute or contingent, joint or several, due or not due, primary or secondary,
liquidated or unliquidated, secured or unsecured, and however acquired by Lender.

‘Reserves’ shall mean as of any date of determination, such amounts
as Lender may from time to time establish and revise in good faith reducing the
amount of Loans and Letter of Credit Accommodations that would otherwise be
available to Borrower under the lending formula(s) provided for herein: (a) to
reflect events, conditions, contingencies or risks which, as determined by Lender
in good faith, adversely affect, or would have a reasonable likelihood of
adversely affecting, either (i) the Collateral or any other property which is
security for the Obligations or its value or (ii) the assets, business or
prospects of Borrower or any Obligor or (iii) the security interests and other
rights of Lender in the Collateral (including the enforceability, perfection and
priority thereof) or (b) to reflect Lender’s good faith belief that any collateral
report or financial information furnished by or on behalf of Borrower or any
Obligor to Lender is or may have been incomplete, inaccurate or misleading in any
material respect or (c) to reflect outstanding Letter of Credit Accommodations as
provided in Section 2.2 hereof or (d) in respect of any state of facts
which Lender determines in good faith constitutes a Default or an Event of
Default. To the extent Lender may revise the lending formulas used to determine
the Borrowing Base or establish new criteria or revise existing criteria for
Eligible Accounts or Eligible Inventory so as to address any circumstances,
condition, event or contingency in a manner satisfactory to Lender, Lender shall
not establish a Reserve for the same purpose. The amount of any Reserve
established by Lender shall have a reasonable relationship to the event, condition
or other matter which is the basis for such reserve as determined by Lender in
good faith.”

(b) Section 1 of the Loan Agreement is hereby further amended by adding the following
definitions thereto, which shall read as follows, respectively:

‘“Excess Availability’ shall mean, the amount, as determined by
Lender, calculated at any date, equal to: (a) the lesser of: (i) the Borrowing
Base (without regard to any Reserves) and (ii) the Maximum Credit minus (b)
the sum of: (i) the amount of all then outstanding and unpaid Obligations of
Borrower, plus (ii) the amount of all Reserves, plus (iii) the aggregate amount of
all then outstanding and unpaid trade payables and other obligations of Borrower
which are outstanding more than ninety (90) days past due as of such time (other
than trade payables or other obligations being contested or disputed by Borrower in
good faith), plus (iv) without duplication, the amount of checks issued by Borrower
to pay trade payables and other obligations which are more than ninety (90) days
past due as of such time (other than trade payables or other obligations being
contested or disputed by Borrower in good faith), but not yet sent.

‘Existing Letters of Credit’ shall mean, collectively, the letters of
credit issued for the account of Borrower or Obligor or for which such Borrower is
otherwise liable listed on Schedule 1 hereto, as the same now exist or may
hereafter be amended, modified, supplemented, extended, renewed, restated or
replaced.

‘Letter of Credit Accommodations’ shall mean, collectively, the
letters of credit, merchandise purchase or other guaranties which are from time to
time either (a) issued or opened by Lender for the account of Borrower or any
Obligor or (b) with respect to which Lender has agreed to indemnify the issuer or
guaranteed to the issuer the performance by Borrower or any Obligor of its
obligations to such issuer; sometimes being referred to herein individually as
‘Letter of Credit Accommodation’.”

20.2. Amendment to Section 2.1(c) of the Loan Agreement. Effective as of the date
hereof, Section 2.1(c) of the Loan Agreement is hereby amended and restated in its entirety
to read to read as follows:

“(c) Except in Lender’s discretion, the aggregate amount of the Loans and
Letter of Credit Accommodations outstanding at any time shall not exceed the
Maximum Credit. In the event that the outstanding amount of any component of the
Loans or the Letter of Credit Accommodations, or the aggregate amount of the
outstanding Loans and Letter of Credit Accomodations, exceed the amounts available
pursuant to the Borrowing Base or the Maximum Credit, as applicable, such event
shall not limit, waive or otherwise affect any rights of Lender in that
circumstance or on any future occasions and Borrower shall, upon demand by Lender,
which may be made at any time or from time to time, immediately repay to Lender
the entire amount of any such excess(es) for which payment is demanded.”

20.3. Amendment to Section 2 of the Loan Agreement. Effective as of the date hereof,
Section 2 of the Loan Agreement is hereby amended by adding a new Section 2.2
thereto to read as follows:

“2.2 Letter of Credit Accommodations.

(a) Subject to and upon the terms and conditions contained herein, at the request of
Borrower, Lender agrees to provide or arrange for Letter of Credit Accommodations for the
account of Borrower containing terms and conditions acceptable to Lender and the issuer
thereof. Any payments made by or on behalf of Lender to any issuer thereof and/or related
parties in connection with the Letter of Credit Accommodations provided to or for the
benefit of Borrower shall constitute additional Revolving Loans to Borrower pursuant to
this Section 2.

(b) In addition to any charges, fees or expenses charged by any bank or issuer in
connection with the Letter of Credit Accommodations, Borrower shall pay to Lender, a
letter of credit fee at a rate equal to one and three-quarters of one percent (1.75%)
percent per annum, on the daily outstanding balance of the Letter of Credit Accommodations
for the immediately preceding month (or part thereof), payable in arrears as of the first
day of each succeeding month, except that Lender may require Borrower to pay to Lender
such letter of credit fee, at a rate equal to three and three-quarters of one percent
(3.75%) per annum on such daily outstanding balance for: (i) the period from and after
the date of termination hereof until Lender has received full and final payment of all
Obligations (notwithstanding entry of a judgment against Borrower) and (ii) the period
from and after the date of the occurrence of an Event of Default for so long as such Event
of Default is continuing as determined by Lender. Such letter of credit fee shall be
calculated on the basis of a three hundred sixty (360) day year and actual days elapsed
and the obligation of Borrower to pay such fee shall survive the termination of this
Agreement.

(c) Borrower shall give Lender two (2) Business Days’ prior written notice of
Borrower’s request for the issuance of a Letter of Credit Accommodation. Such notice
shall be irrevocable and shall specify the original face amount of the Letter of Credit
Accommodation requested, the effective date (which date shall be a Business Day) of
issuance of such requested Letter of Credit Accommodation, whether such Letter of Credit
Accommodations may be drawn in a single or in partial draws, the date on which such
requested Letter of Credit Accommodation is to expire (which date shall be a Business
Day), the purpose for which such Letter of Credit Accommodation is to be issued, and the
beneficiary of the requested Letter of Credit Accommodation. Borrower shall attach to
such notice the proposed form of the Letter of Credit Accommodation.

(d) In addition to being subject to the satisfaction of the applicable conditions
precedent contained in Section 4 hereof and the other terms and conditions
contained herein, no Letter of Credit Accommodations shall be available unless each of the
following conditions precedent have been satisfied in a manner satisfactory to Lender:
(i) Borrower shall have delivered to the proposed issuer of such Letter of Credit
Accommodation at such times and in such manner as such proposed issuer may require, an
application, in form and substance satisfactory to such proposed issuer and Lender, for
the issuance of the Letter of Credit Accommodation and such other documents as may be
required pursuant to the terms thereof, and the form and terms of the proposed Letter of
Credit Accommodation shall be satisfactory to Lender and such proposed issuer, (ii) as of
the date of issuance, no order of any court, arbitrator or other Governmental Authority
shall purport by its terms to enjoin or restrain money center banks generally from issuing
letters of credit of the type and in the amount of the proposed Letter of Credit
Accommodation, and no law, rule or regulation applicable to money center banks generally
and no request or directive (whether or not having the force of law) from any Governmental
Authority with jurisdiction over money center banks generally shall prohibit, or request
that the proposed issuer of such Letter of Credit Accommodation refrain from, the issuance
of letters of credit generally or the issuance of such Letters of Credit Accommodation;
and (iii) the Excess Availability, prior to giving effect to any Reserves with respect to
such Letter of Credit Accommodations, on the date of the proposed issuance of any Letter
of Credit Accommodations, shall be equal to or greater than: (A) if the proposed Letter
of Credit Accommodation is for the purpose of purchasing Eligible Inventory and the
documents of title with respect thereto are consigned to the issuer, the sum of (1) the
percentage equal to one hundred (100%) percent minus the then applicable percentage with
respect to Eligible Inventory set forth in the definition of the term Borrowing Base
multiplied by the Value of such Eligible Inventory, plus (2) freight, taxes, duty and
other amounts which Lender estimates must be paid in connection with such Inventory upon
arrival and for delivery to one of Borrower’s locations for Eligible Inventory within the
United States of America and (B) if the proposed Letter of Credit Accommodation is for any
other purpose or the documents of title are not consigned to the issuer in connection with
a Letter of Credit Accommodation for the purpose of purchasing Inventory, an amount equal
to one hundred (100%) percent of the face amount thereof and all other commitments and
obligations made or incurred by Lender with respect thereto. Effective on the issuance of
each Letter of Credit Accommodation, a Reserve shall be established in the applicable
amount set forth in Section 2.2(d)(iii)(A) or Section 2.2(d)(iii)(B).

(e) Except in Lender’s discretion the amount of all outstanding Letter of Credit
Accommodations and all other commitments and obligations made or incurred by Lender in
connection therewith shall not at any time exceed $1,000,000.

(f) Borrower shall indemnify and hold Lender harmless from and against any and all
losses, claims, damages, liabilities, costs and expenses which Lender may suffer or incur
in connection with any Letter of Credit Accommodations and any documents, drafts or
acceptances relating thereto, including any losses, claims, damages, liabilities, costs
and expenses due to any action taken by any issuer or correspondent with respect to any
Letter of Credit Accommodation, except for such losses, claims, damages, liabilities,
costs or expenses that are a direct result of the gross negligence or willful misconduct
of Lender as determined pursuant to a final non-appealable order of a court of competent
jurisdiction. Borrower assumes all risks with respect to the acts or omissions of the
drawer under or beneficiary of any Letter of Credit Accommodation and for such purposes
the drawer or beneficiary shall be deemed such Borrower’s agent. Borrower assumes all
risks for, and agrees to pay, all foreign, Federal, State and local taxes, duties and
levies relating to any goods subject to any Letter of Credit Accommodations or any
documents, drafts or acceptances thereunder. Borrower hereby releases and holds Lender
harmless from and against any acts, waivers, errors, delays or omissions, whether caused
by Borrower, by any issuer or correspondent or otherwise with respect to or relating to
any Letter of Credit Accommodation, except for the gross negligence or willful misconduct
of Lender as determined pursuant to a final, non-appealable order of a court of competent
jurisdiction. The provisions of this Section 2.2(f) shall survive the payment of
Obligations and the termination of this Agreement.

(g) In connection with Inventory purchased pursuant to Letter of Credit
Accommodations, Borrower shall, at Lender’s request, instruct all suppliers, carriers,
forwarders, customs brokers, warehouses or others receiving or holding cash, checks,
Inventory, documents or instruments in which Lender holds a security interest to deliver
them to Lender and/or subject to Lender’s order, and if they shall come into Borrower’s
possession, to deliver them, upon Lender’s request, to Lender in their original form.
Borrower shall also, at Lender’s request, designate Lender as the consignee on all bills
of lading and other negotiable and non-negotiable documents.

(h) Borrower hereby irrevocably authorizes and directs any issuer of a Letter of
Credit Accommodation to name Borrower as the account party therein and to deliver to
Lender all instruments, documents and other writings and property received by issuer
pursuant to the Letter of Credit Accommodations and to accept and rely upon Lender’s
instructions and agreements with respect to all matters arising in connection with the
Letter of Credit Accommodations or the applications therefor. Nothing contained herein
shall be deemed or construed to grant Borrower any right or authority to pledge the credit
of Lender in any manner. Lender shall have no liability of any kind with respect to any
Letter of Credit Accommodation provided by an issuer other than Lender unless Lender has
duly executed and delivered to such issuer the application or a guarantee or
indemnification in writing with respect to such Letter of Credit Accommodation. Borrower
shall be bound by any reasonable interpretation made in good faith by Lender, or any other
issuer or correspondent under or in connection with any Letter of Credit Accommodation or
any documents, drafts or acceptances thereunder, notwithstanding that such interpretation
may be inconsistent with any instructions Borrower. Lender shall have the sole and
exclusive right and authority to, and Borrower shall not: (i) at any time an Event of
Default exists or has occurred and is continuing, (A) approve or resolve any questions of
non-compliance of documents, (B) give any instructions as to acceptance or rejection of
any documents or goods or (C) execute any and all applications for steamship or airway
guaranties, indemnities or delivery orders, and (ii) at all times (provided that if no
Event of Default has occurred, Lender shall not exercise any of the following unless
agreed to by or on behalf of Borrower), (A) grant any extensions of the maturity of, time
of payment for, or time of presentation of, any drafts, acceptances, or documents, and (B)
agree to any amendments, renewals, extensions, modifications, changes or cancellations of
any of the terms or conditions of any of the applications, Letter of Credit
Accommodations, or documents, drafts or acceptances thereunder or any letters of credit
included in the Collateral. Lender may take such actions either in its own name or in
Borrower’s name.

(i) Any rights, remedies, duties or obligations granted or undertaken by Borrower to
any issuer or correspondent in any application for any Letter of Credit Accommodation, or
any other agreement in favor of any issuer or correspondent relating to any Letter of
Credit Accommodation, shall be deemed to have been granted or undertaken Borrower to
Lender. Any duties or obligations undertaken by Lender to any issuer or correspondent in
any application for any Letter of Credit Accommodation, or any other agreement by Lender
in favor of any issuer or correspondent to the extent relating to any Letter of Credit
Accommodation, shall be deemed to have been undertaken by Borrower to Lender and to apply
in all respects to Borrower.

(j) Intentionally Omitted.

(k) Borrower is irrevocably and unconditionally obligated, without
presentment, demand or protest, to pay to Lender any amounts paid by an issuer of
a Letter of Credit Accommodation with respect to such Letter of Credit
Accommodation (whether through the borrowing of Loans in accordance with
Section 2.2(a) or otherwise).”

20.4. Amendment to Section 3.3(a) of the Loan Agreement. Effective as of the date
hereof, Section 3.3(a) of the Loan Agreement is hereby amended and restated in its entirety
to read as follows:

“(a) Unused Line Fee. Borrower shall pay to Lender monthly an unused
line fee at a rate equal to one-quarter of one percent (0.25%) per annum
calculated upon (i) the amount by which $5,000,000 exceeds the average daily
principal balance of the outstanding Loans and Letter of Credit Accommodations
during such time as the average daily principal balance of the outstanding Loans
and Letter of Credit Accommodations is less than or equal to $5,000,000, and (ii)
the amount by which $10,000,000 exceeds the average daily principal balance of the
outstanding Loans and Letter of Credit Accommodations during such time as the
average daily principal balance of the outstanding Loans and Letter of Credit
Accommodations is greater than $5,000,000; during the immediately preceding month
(or part thereof) while this Agreement is in effect and for so long thereafter as
any of the Obligations are outstanding, which fee shall be payable on the first
day of each month in arrears.”

20.5. Amendment to Section 4.2 of the Loan Agreement. Effective as of the date
hereof, Section 4.2 of the Loan Agreement is hereby amended and restated in its entirety to
read as follows:

“4.2 Conditions Precedent to All Loans and Letter of Credit
Accommodations. Each of the following is an additional condition precedent to
Lender making the Loans and/or providing Letter of Credit Accommodations to
Borrower, including the initial Loans and Letter of Credit Accommodations and any
future Loans and Letter of Credit Accommodations:

(a) all representations and warranties contained herein and in the other Financing
Agreements shall be true and correct in all material respects with the same effect as
though such representations and warranties had been made on and as of the date of the
making of each such Loan or providing each such Letter of Credit Accommodation and after
giving effect thereto, except to the extent that such representations and warranties
expressly relate solely to an earlier date (in which case such representations and
warranties shall have been true and accurate on and as of such earlier date);

(b) no law, regulation, order, judgment or decree of any Governmental Authority shall
exist, and no action, suit, investigation, litigation or proceeding shall be pending or
threatened in any court or before any arbitrator or Governmental Authority, which (i)
purports to enjoin, prohibit, restrain or otherwise affect (A) the making of the Loans or
providing the Letter of Credit Accommodations, or (B) the consummation of the transactions
contemplated pursuant to the terms hereof or the other Financing Agreements or (ii) has or
could reasonably be expected to have a material adverse effect on the assets, business or
prospects of Borrower or would impair the ability of Borrower to perform its obligations
hereunder or under any of the other Financing Agreements or of Lender to enforce any
Obligations or realize upon any of the Collateral; and

(c) no Default or Event of Default shall exist or have occurred and be
continuing on and as of the date of the making of such Loan or providing each such
Letter of Credit Accommodation and after giving effect thereto.”

20.6. Amendment to Section 6.1(a) of the Loan Agreement. Effective as of the date
hereof, Section 6.1(a) of the Loan Agreement is hereby amended and restated in its entirety
to read as follows:

“(a) all Loans, Letter of Credit Accommodations and other Obligations and the
Collateral,”

20.7. Amendment to Section 6.4(a)(ii) of the Loan Agreement. Effective as of the date
hereof, Section 6.4(a)(ii) of the Loan Agreement is hereby amended and restated in its
entirety to read as follows:

“(ii) to the extent Borrower uses any proceeds of the Loans or Letter of
Credit Accommodations to acquire rights in or the use of any Collateral or to
repay any Indebtedness used to acquire rights in or the use of any Collateral,
payments in respect of the Obligations shall be deemed applied first to the
Obligations arising from Loans and Letter of Credit Accommodations that were not
used for such purposes and second to the Obligations arising from Loans and Letter
of Credit Accommodations the proceeds of which were used to acquire rights in or
the use of any Collateral in the chronological order in which Borrower acquired
such rights in or the use of such Collateral.”

20.8. Amendment to Section 6.5 of the Loan Agreement. Effective as of the date
hereof, Section 6.5 of the Loan Agreement is hereby amended and restated in its entirety to
read as follows:

“6.5 Authorization to Make Loans. Lender is authorized to provide
Letter of Credit Accommodations from written instructions and make the Loans based
upon telephonic or other instructions received from such authorized persons as
Borrower shall designate in writing or, at the discretion of Lender, if such Loans
are necessary to satisfy any Obligations. All requests for Loans or Letter of
Credit Accommodations hereunder shall specify the date on which the requested
advance is to be made or Letter of Credit Accommodations established (which day
shall be a Business Day) and the amount of the requested Loan. Requests received
after 11:00 a.m. Dallas, Texas time on any day shall be deemed to have been made
as of the opening of business on the immediately following Business Day. All
Loans and Letter of Credit Accommodations under this Agreement shall be
conclusively presumed to have been made to, and at the request of and for the
benefit of, Borrower or when deposited to the credit of Borrower or otherwise
disbursed or established in accordance with the instructions of Borrower or in
accordance with the terms and conditions of this Agreement.”

20.9. Amendment to Section 6.6 of the Loan Agreement. Effective as of the date
hereof, Section 6.6 of the Loan Agreement is hereby amended and restated in its entirety to
read as follows:

“6.6 Use of Proceeds. Borrower shall use the proceeds of the Loans and
Letter of Credit Accommodations only for general operating, working capital and
other proper corporate purposes of Borrower not otherwise prohibited by the terms
hereof. None of the proceeds will be used, directly or indirectly, for the
purpose of purchasing or carrying any margin security or for the purposes of
reducing or retiring any indebtedness which was originally incurred to purchase or
carry any margin security or for any other purpose which might cause any of the
Loans to be considered a “purpose credit” within the meaning of Regulation U of
the Board of Governors of the Federal Reserve System, as amended.”

20.10. Amendment to Section 7.5(v) of the Loan Agreement. Effective as of the date
hereof, Section 7.5(v) of the Loan Agreement is hereby amended and restated in its entirety
to read as follows:

“(v) clear Inventory the purchase of which was financed with Letter of Credit
Accommodations through U.S. Customs or foreign export control authorities in
Borrower’s name, Lender’s name or the name of Lender’s designee, and to sign and
deliver to customs officials powers of attorney in Borrower’s or Lender’s name for
such purpose, and to complete in Borrower’s or Lender’s name, any order, sale or
transaction, obtain the necessary documents in connection therewith and collect
the proceeds thereof, and”

20.11. Amendment to the introductory paragraph of Section 8 of the Loan Agreement.
Effective as of the date hereof, the introductory paragraph of Section 8 of the Loan
Agreement is hereby amended and restated in its entirety to read as follows:

“Borrower hereby represents and warrants to Lender the following (which shall survive
the execution and delivery of this Agreement), the truth and accuracy of which are a
continuing condition of the making of Loans and providing Letter of Credit Accommodations
to Borrower:”

20.12. Amendment to Section 9.7(b)(iii)(C) of the Loan Agreement. Effective as of the
date hereof, Section 9.7(b)(iii)(C) of the Loan Agreement is hereby amended and restated in
its entirety to read as follows:

“(C) the terms of such Capital Stock, and the terms and conditions of the purchase and
sale thereof, shall not include any terms that include any limitation on the right of
Borrower to request or receive Loans or Letter of Credit Accommodations or the right of
Borrower to amend or modify any of the terms and conditions of this Agreement or any of the
other Financing Agreements or otherwise in any way relate to or affect the arrangements of
Borrower with Lender or are more restrictive or burdensome to Borrower than the terms of
any Capital Stock in effect on the date hereof,”

20.13. Amendment to Section 9.20 of the Loan Agreement. Effective as of the date
hereof, Section 9.20 of the Loan Agreement is hereby amended and restated in its entirety
to read as follows:

“9.20 Costs and Expenses(a) . Borrower shall pay to Lender on demand all
costs, expenses, filing fees and taxes paid or payable in connection with the preparation,
negotiation, execution, delivery, recording, administration, collection, liquidation,
enforcement and defense of the Obligations, Lender’s rights in the Collateral, this
Agreement, the other Financing Agreements and all other documents related hereto or
thereto, including any amendments, supplements or consents which may hereafter be
contemplated (whether or not executed) or entered into in respect hereof and thereof,
including: (a) all costs and expenses of filing or recording (including Uniform
Commercial Code financing statement filing taxes and fees, documentary taxes, intangibles
taxes and mortgage recording taxes and fees, if applicable); (b) costs and expenses and
fees for insurance premiums, environmental audits, surveys, assessments, engineering
reports and inspections, appraisal fees and search fees, costs and expenses of remitting
loan proceeds, collecting checks and other items of payment, and establishing and
maintaining the Blocked Accounts, together with Lender’s customary charges and fees with
respect thereto; (c) charges, fees or expenses charged by any bank or issuer in connection
with the Letter of Credit Accommodations; (d) costs and expenses of preserving and
protecting the Collateral; (e) costs and expenses paid or incurred in connection with
obtaining payment of the Obligations, enforcing the security interests and liens of
Lender, selling or otherwise realizing upon the Collateral, and otherwise enforcing the
provisions of this Agreement and the other Financing Agreements or defending any claims
made or threatened against Lender arising out of the transactions contemplated hereby and
thereby (including preparations for and consultations concerning any such matters); (f)
all out-of-pocket expenses and costs heretofore and from time to time hereafter incurred
by Lender during the course of periodic field examinations of the Collateral and
Borrower’s operations, plus a per diem charge at the rate of $750 per person per day for
Lender’s examiners in the field and office; and (g) the fees and disbursements of counsel
(including legal assistants) to Lender in connection with any of the foregoing.”

20.14. Amendment to Section 9.21 of the Loan Agreement. Effective as of the date
hereof, Section 9.21 of the Loan Agreement is hereby amended and restated in its entirety
to read as follows:

“9.21 Further Assurances. At the request of Lender at any time and from
time to time, Borrower shall, at its expense, duly execute and deliver, or cause
to be duly executed and delivered, such further agreements, documents and
instruments, and do or cause to be done such further acts as may be necessary or
proper to evidence, perfect, maintain and enforce the security interests and the
priority thereof in the Collateral and to otherwise effectuate the provisions or
purposes of this Agreement or any of the other Financing Agreements. Lender may
at any time and from time to time request a certificate from an officer of
Borrower representing that all conditions precedent to the making of Loans and
providing Letter of Credit Accommodations contained herein are satisfied. In the
event of such request by Lender, Lender may, at its option, cease to make any
further Loans or provide any further Letter of Credit Accommodations until Lender
has received such certificate and, in addition, Lender has determined that such
conditions are satisfied.”

20.15. Amendment to Section 10.2(b) of the Loan Agreement. Effective as of the date
hereof, Section 10.2(b) of the Loan Agreement is hereby amended by adding the following
sentence thereto at the end thereof:

“(b) At any time an Event of Default exists or has occurred and is
continuing, upon Lender’s request, Borrower will either, as Lender shall specify,
furnish cash collateral to the issuer to be used to secure and fund Lender’s
reimbursement obligations to the issuer in connection with any Letter of Credit
Accommodations or furnish cash collateral to Lender for the Letter of Credit
Accommodations. Such cash collateral shall be in the amount equal to one hundred
ten (110%) percent of the amount of the Letter of Credit Accommodations plus the
amount of any fees and expenses payable in connection therewith through the end of
the latest expiration date of such Letter of Credit Accommodations.”

20.16. Amendment to Section 10.2(g) of the Loan Agreement. Effective as of the date
hereof, Section 10.2(g) of the Loan Agreement is hereby amended and restated in its
entirety to read as follows:

“(g) Without limiting the foregoing, upon the occurrence of a Default or an
Event of Default, Lender may, at its option, without notice, (i) either (A) cease
making Loans or arranging for Letter of Credit Accommodations or reduce the
lending formulas or amounts of Loans and Letter of Credit Accommodations available
to Borrower and/or (B) terminate any provision of this Agreement providing for any
future Loans or Letter of Credit Accommodations to be made by Lender to Borrower,
and (ii) establish such Reserves as Lender determines without limitation or
restriction, notwithstanding anything to the contrary provided herein.”

20.17. Amendment to Section 12.1(a) of the Loan Agreement. Effective as of the date
hereof, Section 12.1(a) of the Loan Agreement is hereby amended and restated in its
entirety to read as follows:

“(a) This Agreement and the other Financing Agreements shall become effective
as of the date set forth on the first page hereof and shall continue in full force
and effect for a term ending November 17, 2005 (the “Renewal Date”), and
from year to year thereafter, unless sooner terminated pursuant to the terms
hereof. Lender or Borrower may terminate this Agreement and the other Financing
Agreements effective on the Renewal Date or on the anniversary of the Renewal Date
in any year by giving to the other party at least sixty (60) days prior written
notice; provided, that, this Agreement and all other Financing
Agreements must be terminated simultaneously. In addition, Borrower may terminate
this Agreement at any time upon ten (10) days prior written notice to Lender
(which notice shall be irrevocable) and Lender may terminate this Agreement at any
time on or after an Event of Default; provided, that, in each
case, this Agreement and all other Financing Agreements must be terminated
simultaneously. Upon the effective date of termination or non-renewal of this
Agreement, Borrower shall pay to Lender, in full, all outstanding and unpaid
Obligations and shall furnish cash collateral to Lender (or at Lender’s option, a
letter of credit issued for the account of Borrower and at Borrower’s expense, in
form and substance satisfactory to Lender, by an issuer acceptable to Lender and
payable to Lender as beneficiary) in such amounts as Lender determines are
reasonably necessary to secure or reimburse Lender from loss, cost, damage or
expense, including attorneys’ fees and expenses, in connection with any contingent
Obligations, including issued and outstanding Letter of Credit Accommodations and
checks or other payments provisionally credited to the Obligations and/or as to
which Lender has not yet received final and indefeasible payment. The amount of
such cash collateral (or letter of credit, as Lender may determine) as to any
Letter of Credit Accommodations shall be in the amount equal to one hundred ten
(110%) percent of the amount of the Letter of Credit Accommodations plus the
amount of any fees and expenses payable in connection therewith through the end of
the latest expiration date of such Letter of Credit Accommodations. Such payments
in respect of the Obligations and cash collateral shall be remitted by wire
transfer in Federal funds to such bank account of Lender, as Lender may, in its
discretion, designate in writing to Borrower for such purpose. Interest shall be
due until and including the next business day, if the amounts so paid by Borrower
to the bank account designated by Lender are received in such bank account later
than 12:00 noon time.”

SECTION 21

NO Waiver

21.1. No Waiver. Nothing contained in this Amendment shall be construed as a waiver
by Lender of any covenant or provision of the Loan Agreement, the other documents and agreements
relating hereto or thereto (hereinafter individually referred to as a “Loan Document” and
collectively referred to as the “Loan Documents”), this Amendment, or of any other contract
or instrument between Borrower and Lender, and the failure of Lender at any time or times hereafter
to require strict performance by Borrower of any provision thereof shall not waive, affect or
diminish any right of Lender to thereafter demand strict compliance therewith. Lender hereby
reserves all rights granted under the Loan Agreement, the other Loan Documents, this Amendment and
any other contract or instrument between Borrower and Lender.

SECTION 22

Conditions Precedent

22.1. Conditions. The effectiveness of this Amendment is subject to the satisfaction
of the following conditions precedent, unless specifically waived by Lender:

(a) Lender shall have received, in form and substance satisfactory to Lender in its sole
discretion, (i) this Amendment, duly executed by Borrower, and (ii) such additional documents,
instruments and information as Lender or its legal counsel may request;

(b) The representations and warranties contained herein, in the Loan Agreement, as amended
hereby, and/or in the other Loan Documents shall be true and correct as of the date hereof as if
made on the date hereof;

(c) No default shall have occurred under the Loan Agreement and be continuing and no default
shall exist under the Loan Agreement unless such default has been specifically waived in writing by
Lender; and

(d) All corporate proceedings taken in connection with the transactions contemplated by this
Amendment and all documents, instruments and other legal matters incident thereto shall be
satisfactory to Lender and its legal counsel, Patton Boggs LLP.

SECTION 23

Ratifications, Representations and Warranties

23.1. Ratifications. The terms and provisions set forth in this Amendment shall
modify and supersede all inconsistent terms and provisions set forth in the Loan Agreement and
except as expressly modified and superseded by this Amendment, the terms and provisions of the Loan
Agreement are ratified and confirmed and shall continue in full force and effect.

23.2. Representations and Warranties. Borrower hereby represents and warrants to
Lender that (i) the execution, delivery and performance of this Amendment and any and all other
Loan Documents executed and/or delivered in connection herewith have been authorized by all
requisite corporate action on the part of Borrower and will not violate the Articles of
Incorporation or Bylaws of Borrower, (ii) the representations and warranties contained in the Loan
Agreement, as amended hereby, and any other Loan Document are true and correct on and as of the
date hereof as though made on and as of the date hereof, (iii) Borrower is in full compliance with
all covenants and agreements contained in the Loan Agreement, as amended hereby, and (iv) Borrower
has not amended its Articles of Incorporation or Bylaws since October 28, 2002.

SECTION 24

Miscellaneous

24.1. Survival of Representations and Warranties. All representations and warranties
made in the Loan Agreement or any other document or documents relating thereto, including, without
limitation, any Loan Document furnished in connection with this Amendment, shall survive the
execution and delivery of this Amendment and the other Loan Documents, and no investigation by
Lender or any closing shall affect the representations and warranties or the right of Lender to
rely upon them.

24.2. Reference to Loan Agreement. Each of the Loan Documents, including the Loan
Agreement and any and all other agreements, documents or instruments now or hereafter executed and
delivered pursuant to the terms hereof or pursuant to the terms of the Loan Agreement as amended
hereby, are hereby amended so that any reference in such Loan Documents to the Loan Agreement shall
mean a reference to the Loan Agreement as amended hereby.

24.3. Expenses of Lender. As provided in the Loan Agreement, Borrower agrees to pay
all reasonable costs and expenses incurred by Lender in connection with the preparation,
negotiation and execution of this Amendment and the other Loan Documents executed pursuant hereto
and any and all amendments, modifications, and supplements thereto, including without limitation
the reasonable costs and fees of Lender’s legal counsel, and all reasonable costs and expenses
incurred by Lender in connection with the enforcement or preservation of any rights under the Loan
Agreement, as amended hereby, or any other Loan Document, including without limitation the
reasonable costs and fees of Lender’s legal counsel.

24.4. Severability. Any provision of this Amendment held by a court of competent
jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this
Amendment and the effect thereof shall be confined to the provision so held to be invalid or
unenforceable. Furthermore, in lieu of each such invalid or unenforceable provision there shall be
added automatically as a part of this Amendment a valid and enforceable provision that comes
closest to expressing the intention of such invalid or unenforceable provision.

24.5. APPLICABLE LAW. THIS AMENDMENT AND ALL OTHER LOAN DOCUMENTS EXECUTED PURSUANT
HERETO SHALL BE DEEMED TO HAVE BEEN MADE AND TO BE PERFORMABLE IN DALLAS, TEXAS AND SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

24.6. Successors and Assigns. This Amendment is binding upon and shall inure to the
benefit of Lender and Borrower and their respective successors and assigns, except Borrower may not
assign or transfer any of its rights or obligations hereunder without the prior written consent of
Lender.

24.7. Counterparts. This Amendment may be executed in one or more counterparts, each
of which when so executed shall be deemed to be an original, but all of which when taken together
shall constitute one and the same instrument.

24.8. Effect of Waiver. No consent or waiver, express or implied, by Lender to or for
any breach of or deviation from any covenant or condition of the Loan Agreement shall be deemed a
consent or waiver to or of any other breach of the same or any other covenant, condition or duty.

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

24.10. NO ORAL AGREEMENTS. THE LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT
THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

24.11. RELEASE. BORROWER HEREBY ACKNOWLEDGES THAT IT HAS NO DEFENSE, COUNTERCLAIM,
OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO
REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY THE “OBLIGATIONS” OR TO SEEK
AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM LENDER. BORROWER HEREBY VOLUNTARILY AND
KNOWINGLY RELEASES AND FOREVER DISCHARGES LENDER, ITS PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS
AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS,
EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR
UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN
PART ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED, WHICH THE BORROWER MAY NOW OR HEREAFTER HAVE
AGAINST LENDER, ITS PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, IF ANY, AND
IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR
REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY “LOANS”, INCLUDING, WITHOUT LIMITATION, ANY
CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE
HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE LOAN AGREEMENT OR
OTHER AGREEMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT.

[Remainder of Page Intentionally Left Blank; Signature Page Follows]

6

IN WITNESS WHEREOF, this Amendment has been duly executed by Borrower and Lender to be
effective as of the date first above written.

	 	 	 	 	 
	LENDER:

	 	BORROWER:
	 	

	 
	 	 	 	 
	 	 	 

	 
	 	 	 	 
	CONGRESS FINANCIAL CORPORATION

(SOUTHWEST)

	 	TST/IMPRESO, INC.

	 	

	 
	 	 	 	 
	By: /s/ Joe T. Curdy	 	By: /s/ Marshall D. Sorokwasz

	 
	 	 	 	 
	 	 	 

	 
	 	 	 	 
	Name:Joe T. Curdy

	 	Name: Marshall D. Sorokwasz
	 	

	 
	 	 	 	 
	 	 	 

	 
	 	 	 	 
	Title: Vice President

	 	Title: President
	 	

	 

	 	

	 	

	 
	 	 	 	 
	Address:

	 	Chief Executive Office:
	 	

	 
	 	 	 	 
	 	 	 

	 
	 	 	 	 
	5001 LBJ Freeway, Suite 1050

Dallas, Texas 75244

	 	652 Southwestern Boulevard

Coppell, Texas 75019
	 	

	 
	 	 	 	 
	 	 	TST/IMPRESO OF CALIFORNIA, INC.

	 
	 	 	 	 
	 	 	By: /s/ Marshall D. Sorokwasz

	 
	 	 	 	 
	 	 	 

	 
	 	 	 	 
	
 
	 	Name:
	 	Marshall D. Sorokwasz
	
 
	 	 	 	 
	
 
	 	Title:
	 	President

	 	 	 	Chief Executive Office:

652 Southwestern Boulevard

Coppell, Texas 75019

7

CONSENT, RATIFICATION AND RELEASE

The undersigned hereby consents to the terms of the within and foregoing Amendment, confirms
and ratifies the terms of that certain Guaranty, effective as of April 24, 2001, as amended from
time to time and as executed by the undersigned for the benefit of Lender (the “Guaranty
Documents”), and acknowledges that the Guaranty Documents are in full force and effect and
ratifies the same, that the undersigned has no defense, counterclaim, set-off or any other claim to
diminish the undersigned’s liability under such documents, that the undersigned’s consent is not
required to the effectiveness of the within and foregoing Amendment, and that no consent by the
undersigned is required for the effectiveness of any future amendment, modification, forbearance or
other action with respect to the Obligations, the Collateral, or any of the other Loan Documents.
THE UNDERSIGNED HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES LENDER, ITS
PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS,
ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN,
ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW
OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED,
WHICH THE UNDERSIGNED MAY NOW OR HEREAFTER HAVE AGAINST LENDER, ITS PREDECESSORS, AGENTS,
EMPLOYEES, SUCCESSORS AND ASSIGNS, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF
CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY “LOANS”,
INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR
RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND
REMEDIES UNDER THE LOAN AGREEMENT OR OTHER AGREEMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS
AMENDMENT.

IMPRESO, INC.

By: /s/ Marshall D. Sorokwasz

	 	 	 	Name: Marshall D. Sorokwasz

Title: President

THIRD AMENDMENT TO AMENDED AND RESTATED

LOAN AND SECURITY AGREEMENT

THIS THIRD AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this
“Amendment”) is made and entered into as of the    day of December, 2004 by and among
CONGRESS FINANCIAL CORPORATION (SOUTHWEST), a Texas corporation (“Lender”), and
TST/IMPRESO, INC., a Delaware corporation, which is the successor-in-interest by merger to
TST/Impreso, Inc., a Texas corporation (“TST”), TST/IMPRESO OF CALIFORNIA, INC., a
California corporation (“TST California” and collectively with TST, the
“Borrower”).

WHEREAS, Borrower and Lender are parties to that certain Amended and Restated Loan and
Security Agreement dated as of October 28, 2002 as amended by that certain First Amendment to
Amended and Restated Loan and Security Agreement dated as of May 6, 2004 and by that certain Second
Amendment to Amended and Restated Loan and Security Agreement dated as of July 23, 2004 (as amended
from time to time, the “Loan Agreement”);

WHEREAS, Borrower and Lender desire to amend the Loan Agreement in the manner provided below;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

SECTION 25

definitions

25.1. Definitions. Capitalized terms used in this Amendment, to the extent not
otherwise defined herein, shall have the same meaning as in the Loan Agreement, as amended hereby.

SECTION 26

amendments

26.1. Amendment to Section 1 of the Loan Agreement. Effective as of the date hereof
Section 1 of the Loan Agreement is hereby amended by amending and restating the following
definitions contained therein in their entirety to read as follows:

“‘Borrowing Base’ shall mean, at any time, the amount equal to: (a)
eighty-five percent (85%) of the Net Amount of Eligible Accounts, plus (b)
the lesser of: (i) the sum of fifty-five percent (55%) percent of the Value of
Eligible Inventory, or (ii) $12,000,000, less (c) any Reserves. The
amounts of Eligible Inventory shall, at Lender’s option, be determined based on
the lesser of the amount of Inventory set forth in the general ledger of Borrower
or the perpetual inventory record maintained by Borrower.

‘Maximum Credit’ shall mean the amount of $15,000,000.”

26.2. Amendment to Section 3.3 of the Loan Agreement. Effective as of the date
hereof:

(a) Section 3.3(a) of the Loan Agreement is hereby amended and restated in its
entirety to read as follows:

“(a) Unused Line Fee. Borrower shall pay to Lender monthly an unused
line fee at a rate equal to one-quarter of one percent (0.25%) per annum
calculated upon (i) the amount by which $10,000,000 exceeds the average daily
principal balance of the outstanding Loans and Letter of Credit Accommodations
during such time as the average daily principal balance of the outstanding Loans
and Letter of Credit Accommodations is less than or equal to $10,000,000, and (ii)
the amount by which $15,000,000 exceeds the average daily principal balance of the
outstanding Loans and Letter of Credit Accommodations during such time as the
average daily principal balance of the outstanding Loans and Letter of Credit
Accommodations is greater than $10,000,000; during the immediately preceding month
(or part thereof) while this Agreement is in effect and for so long thereafter as
any of the Obligations are outstanding, which fee shall be payable on the first
day of each month in arrears.”

(b) Section 3.3 of the Loan Agreement is hereby amended by adding the following
subsection (c) thereto, which shall read as follows:

“(c) Third Amendment Fee. Borrower shall pay to Lender an amendment
fee in connection with that certain Third Amendment to Amended and Restated Loan
and Security Agreement in the aggregate amount of $7,500, $625 of which shall be
payable on December 31, 2004 and which shall be deemed fully earned and
nonrefundable on such date, and the balance of which shall be payable in an amount
equal to $625 per month on the first day of each month for the first twelve
consecutive months following such initial payment date. The amendment fee in
connection with that certain Third Amendment to Amended and Restated Loan and
Security Agreement shall be deemed fully earned and nonrefundable on the date when
the same is due and payable hereunder.”

SECTION 27

NO Waiver

27.1. No Waiver. Nothing contained in this Amendment shall be construed as a waiver
by Lender of any covenant or provision of the Loan Agreement, the other documents and agreements
relating hereto or thereto (hereinafter individually referred to as a “Loan Document” and
collectively referred to as the “Loan Documents”), this Amendment, or of any other contract
or instrument between Borrower and Lender, and the failure of Lender at any time or times hereafter
to require strict performance by Borrower of any provision thereof shall not waive, affect or
diminish any right of Lender to thereafter demand strict compliance therewith. Lender hereby
reserves all rights granted under the Loan Agreement, the other Loan Documents, this Amendment and
any other contract or instrument between Borrower and Lender.

SECTION 28

Conditions Precedent

28.1. Conditions. The effectiveness of this Amendment is subject to the satisfaction
of the following conditions precedent, unless specifically waived by Lender:

(a) Lender shall have received, in form and substance satisfactory to Lender in its sole
discretion, (i) this Amendment, duly executed by Borrower, (ii) [an Amended and Restated Note, duly
executed by Borrower] and (iii) such additional documents, instruments and information as Lender
or its legal counsel may request;

(b) The representations and warranties contained herein, in the Loan Agreement, as amended
hereby, and/or in the other Loan Documents shall be true and correct as of the date hereof as if
made on the date hereof;

(c) No default shall have occurred under the Loan Agreement and be continuing and no default
shall exist under the Loan Agreement unless such default has been specifically waived in writing by
Lender; and

(d) All corporate proceedings taken in connection with the transactions contemplated by this
Amendment and all documents, instruments and other legal matters incident thereto shall be
satisfactory to Lender and its legal counsel, Patton Boggs LLP.

SECTION 29

Ratifications, Representations and Warranties

29.1. Ratifications. The terms and provisions set forth in this Amendment shall
modify and supersede all inconsistent terms and provisions set forth in the Loan Agreement and
except as expressly modified and superseded by this Amendment, the terms and provisions of the Loan
Agreement are ratified and confirmed and shall continue in full force and effect.

29.2. Representations and Warranties. Borrower hereby represents and warrants to
Lender that (i) the execution, delivery and performance of this Amendment and any and all other
Loan Documents executed and/or delivered in connection herewith have been authorized by all
requisite corporate action on the part of Borrower and will not violate the Articles of
Incorporation or Bylaws of Borrower, (ii) the representations and warranties contained in the Loan
Agreement, as amended hereby, and any other Loan Document are true and correct on and as of the
date hereof as though made on and as of the date hereof, (iii) Borrower is in full compliance with
all covenants and agreements contained in the Loan Agreement, as amended hereby, and (iv) Borrower
has not amended its Articles of Incorporation or Bylaws since October 28, 2002.

SECTION 30

Miscellaneous

30.1. Survival of Representations and Warranties. All representations and warranties
made in the Loan Agreement or any other document or documents relating thereto, including, without
limitation, any Loan Document furnished in connection with this Amendment, shall survive the
execution and delivery of this Amendment and the other Loan Documents, and no investigation by
Lender or any closing shall affect the representations and warranties or the right of Lender to
rely upon them.

30.2. Reference to Loan Agreement. Each of the Loan Documents, including the Loan
Agreement and any and all other agreements, documents or instruments now or hereafter executed and
delivered pursuant to the terms hereof or pursuant to the terms of the Loan Agreement as amended
hereby, are hereby amended so that any reference in such Loan Documents to the Loan Agreement shall
mean a reference to the Loan Agreement as amended hereby.

30.3. Expenses of Lender. As provided in the Loan Agreement, Borrower agrees to pay
all reasonable costs and expenses incurred by Lender in connection with the preparation,
negotiation and execution of this Amendment and the other Loan Documents executed pursuant hereto
and any and all amendments, modifications, and supplements thereto, including without limitation
the reasonable costs and fees of Lender’s legal counsel, and all reasonable costs and expenses
incurred by Lender in connection with the enforcement or preservation of any rights under the Loan
Agreement, as amended hereby, or any other Loan Document, including without limitation the
reasonable costs and fees of Lender’s legal counsel.

30.4. Severability. Any provision of this Amendment held by a court of competent
jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this
Amendment and the effect thereof shall be confined to the provision so held to be invalid or
unenforceable. Furthermore, in lieu of each such invalid or unenforceable provision there shall be
added automatically as a part of this Amendment a valid and enforceable provision that comes
closest to expressing the intention of such invalid or unenforceable provision.

30.5. APPLICABLE LAW. THIS AMENDMENT AND ALL OTHER LOAN DOCUMENTS EXECUTED PURSUANT
HERETO SHALL BE DEEMED TO HAVE BEEN MADE AND TO BE PERFORMABLE IN DALLAS, TEXAS AND SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

30.6. Successors and Assigns. This Amendment is binding upon and shall inure to the
benefit of Lender and Borrower and their respective successors and assigns, except Borrower may not
assign or transfer any of its rights or obligations hereunder without the prior written consent of
Lender.

30.7. Counterparts. This Amendment may be executed in one or more counterparts, each
of which when so executed shall be deemed to be an original, but all of which when taken together
shall constitute one and the same instrument.

30.8. Effect of Waiver. No consent or waiver, express or implied, by Lender to or for
any breach of or deviation from any covenant or condition of the Loan Agreement shall be deemed a
consent or waiver to or of any other breach of the same or any other covenant, condition or duty.

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

30.10. NO ORAL AGREEMENTS. THE LOAN AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT
THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

30.11. RELEASE. BORROWER HEREBY ACKNOWLEDGES THAT IT HAS NO DEFENSE, COUNTERCLAIM,
OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO
REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY THE “OBLIGATIONS” OR TO SEEK
AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM LENDER. BORROWER HEREBY VOLUNTARILY AND
KNOWINGLY RELEASES AND FOREVER DISCHARGES LENDER, ITS PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS
AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS,
EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR
UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN
PART ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED, WHICH THE BORROWER MAY NOW OR HEREAFTER HAVE
AGAINST LENDER, ITS PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, IF ANY, AND
IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR
REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY “LOANS”, INCLUDING, WITHOUT LIMITATION, ANY
CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE
HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE LOAN AGREEMENT OR
OTHER AGREEMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT.

[Remainder of Page Intentionally Left Blank; Signature Page Follows]

8

IN WITNESS WHEREOF, this Amendment has been duly executed by Borrower and Lender to be
effective as of the date first above written.

	 	 	 	 	 
	LENDER:

	 	BORROWER:
	 	

	 
	 	 	 	 
	 	 	 

	 
	 	 	 	 
	CONGRESS FINANCIAL CORPORATION

(SOUTHWEST)

	 	TST/IMPRESO, INC.

	 	

	 
	 	 	 	 
	By: /s/ Joe T. Curdy

	 	By:
	 	/s/ Marshall D. Sorokwasz
	 

	 	 	 	 
	Name: Joe T. Curdy

	 	Name:
	 	Marshall D. Sorokwasz
	 

	 	 	 	 
	Title: Vice President

	 	Title: President
	 	

	 

	 	

	 	

	 
	 	 	 	 
	Address:

	 	Chief Executive Office:
	 	

	 
	 	 	 	 
	 	 	 

	 
	 	 	 	 
	5001 LBJ Freeway, Suite 1050

Dallas, Texas 75244

	 	652 Southwestern Boulevard

Coppell, Texas 75019
	 	

	 
	 	 	 	 
	 	 	TST/IMPRESO OF CALIFORNIA, INC.

	 
	 	 	 	 
	
 
	 	By:
	 	/s/ Marshall D. Sorokwasz
	
 
	 	 	 	 
	
 
	 	Name:
	 	Marshall D. Sorokwasz
	
 
	 	 	 	 
	
 
	 	Title:
	 	President

	 	 	 	Chief Executive Office:

652 Southwestern Boulevard

Coppell, Texas 75019

9

CONSENT, RATIFICATION AND RELEASE

The undersigned hereby consents to the terms of the within and foregoing Amendment, confirms
and ratifies the terms of that certain Guaranty, effective as of April 24, 2001, as amended from
time to time and as executed by the undersigned for the benefit of Lender (the “Guaranty
Documents”), and acknowledges that the Guaranty Documents are in full force and effect and
ratifies the same, that the undersigned has no defense, counterclaim, set-off or any other claim to
diminish the undersigned’s liability under such documents, that the undersigned’s consent is not
required to the effectiveness of the within and foregoing Amendment, and that no consent by the
undersigned is required for the effectiveness of any future amendment, modification, forbearance or
other action with respect to the Obligations, the Collateral, or any of the other Loan Documents.
THE UNDERSIGNED HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES LENDER, ITS
PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS,
ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN,
ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW
OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED,
WHICH THE UNDERSIGNED MAY NOW OR HEREAFTER HAVE AGAINST LENDER, ITS PREDECESSORS, AGENTS,
EMPLOYEES, SUCCESSORS AND ASSIGNS, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF
CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY “LOANS”,
INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR
RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND
REMEDIES UNDER THE LOAN AGREEMENT OR OTHER AGREEMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS
AMENDMENT.

IMPRESO, INC.

By: /s/ Marshall D. Sorokwasz

	 	 	 	Name:  Marshall D. Sorokwasz

Title: President

10EX-10.1

7,500,000 Shares

WELLCARE HEALTH PLANS, INC.

COMMON STOCK, PAR VALUE $.01

UNDERWRITING AGREEMENT

December 16, 2004

	 	 	 	 	 
	
 
	 	 	 	December 16, 2004
	 
	 	 	 	 
	Morgan Stanley & Co. Incorporated
	 	 
	 
	 	 	 	 
	SG Cowen & Co., LLC

UBS Securities LLC

	 	

	 	

	 
	 	 	 	 
	Wachovia Capital Markets, LLC
	 	 
	 
	 	 	 	 
	c/o

	 	Morgan Stanley

1585 Broadway

New York, New York 10036
	 	

Dear Sirs and Mesdames:

WellCare Health Plans, Inc., a Delaware corporation (the “Company”), proposes to issue and
sell to the several Underwriters named in Schedule II hereto (the “Underwriters”), and the
shareholder of the Company named in Schedule I-A hereto (“SPEI”), the shareholders of the Company
named in Schedule I-B hereto (the “Non-Management Selling Shareholders”) and the Shareholders of
the Company named in Schedule I-C hereto (the “Management Selling Shareholders” and together with
SPEI and the Non-Management Selling Shareholders, the “Selling Shareholders”) severally propose to
sell to the several Underwriters, an aggregate of 7,500,000 shares (the “Firm Shares”) of the
common stock, par value $.01, of the Company (the “Common Stock”), of which 1,500,000 shares are to
be issued and sold by the Company and 6,000,000 shares are to be sold by the Selling Shareholders,
each Selling Shareholder selling the amount set forth opposite such Selling Shareholder’s name in
Schedules I-A, I-B and I-C hereto, as applicable.

SPEI proposes to sell to the several Underwriters not more than an additional 1,125,000 shares
of Common Stock (the “Additional Shares”), if and to the extent that you, as Managers of the
offering, shall have determined to exercise, on behalf of the Underwriters, the right to purchase
such shares of common stock granted to the Underwriters in Section 3 hereof. The Firm Shares and
the Additional Shares are hereinafter collectively referred to as the “Shares.” The Company and
the Selling Shareholders are hereinafter sometimes collectively referred to as the “Sellers.”

The Company has filed with the Securities and Exchange Commission (the “Commission”) a
registration statement, including a prospectus, relating to the Shares. The registration statement
as amended at the time it becomes effective, including the information (if any) deemed to be part
of the registration statement at the time of effectiveness pursuant to Rule 430A under the
Securities Act of 1933, as amended (the “Securities Act”), is hereinafter referred to as the
“Registration Statement”; the prospectus in the form first used to confirm sales of Shares is
hereinafter referred to as the “Prospectus.” If the Company has filed an abbreviated registration
statement to register additional shares of Common Stock pursuant to Rule 462(b) under the
Securities Act (the “Rule 462 Registration Statement”), then any reference herein to the term
“Registration Statement” shall be deemed to include such Rule 462 Registration Statement.

1. Representations and Warranties of the Company. The Company represents and warrants to and
agrees with each of the Underwriters that:

(a) Based on advice from the Commission, the Registration Statement has become
effective; no stop order suspending the effectiveness of the Registration Statement is in
effect, and no proceedings for such purpose are pending before or, to the knowledge of the
Company, threatened by the Commission.

(b) (i) The Registration Statement, when it became effective, did not contain and, as
amended or supplemented, if applicable, will not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein not misleading; (ii) the Registration Statement and the
Prospectus comply and, as amended or supplemented, if applicable, will comply in all
material respects with the Securities Act and the applicable rules and regulations of the
Commission thereunder; and (iii) the Prospectus does not contain and, as amended or
supplemented, if applicable, will not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading, except that the
representations and warranties set forth in this paragraph do not apply to statements or
omissions in the Registration Statement or the Prospectus based upon information relating
to any Underwriter furnished to the Company in writing by such Underwriter through you
expressly for use therein.

(c) The Company has been duly incorporated, is validly existing as a corporation in
good standing under the laws of the jurisdiction of its incorporation, has the corporate
power and authority to own its property and to conduct its business as described in the
Prospectus and is duly qualified to transact business and is in good standing in each
jurisdiction in which the conduct of its business or its ownership or leasing of property
requires such qualification, except to the extent that the failure to be so qualified or
be in good standing would not have a material adverse effect on the Company and its
subsidiaries, taken as a whole (collectively, the “WellCare Group”).

(d) Each subsidiary of the Company has been duly incorporated or organized, as the
case may be, is validly existing as a corporation or limited liability company in good
standing under the laws of the jurisdiction of its incorporation or organization, as the
case may be, has the power (corporate or limited liability company, as the case may be)
and authority to own its property and to conduct its business as described in the
Prospectus and is duly qualified to transact business and is in good standing in each
jurisdiction in which the conduct of its business or its ownership or leasing of property
requires such qualification, except to the extent that the failure to be so qualified or
be in good standing would not have a material adverse effect on the WellCare Group; all of
the issued shares of capital stock or membership interests, as the case may be, of each of
the Company’s subsidiaries have been duly and validly authorized and issued or created, as
the case may be, and, in the case of shares of capital stock, are fully paid and
non-assessable; and in each case such capital stock or membership interest, as the case
may be, is owned directly or indirectly by the Company, free and clear of all liens,
encumbrances, equities or claims, except as described in the Prospectus.

(e) This Agreement has been duly authorized, executed and delivered by the Company.

(f) The authorized capital stock of the Company conforms as to legal matters to the
description thereof contained in the Prospectus; and except as disclosed in the
Prospectus, there are no outstanding securities convertible into or exchangeable for, or
warrants, rights or options to subscribe to or purchase from the Company, or obligation of
the Company to issue, shares of Common Stock.

(g) The shares of Common Stock (including the Shares to be sold by the Selling
Shareholders) outstanding prior to the issuance of the Shares to be sold by the Company
have been duly authorized and are validly issued, fully paid and non-assessable; and there
are no restrictions on transfer of or encumbrances on the Shares to be sold by the Selling
Shareholders pursuant to this Agreement under the laws of the State of Delaware or the
certificate of incorporation of the Company.

(h) The Shares to be sold by the Company have been duly authorized and, when issued
and delivered in accordance with the terms of this Agreement, will be validly issued,
fully paid and non-assessable; and the issuance of such Shares will not be subject to any
preemptive or similar rights.

(i) The execution and delivery by the Company of, and the performance by the Company
of its obligations under, this Agreement will not contravene any provision of applicable
law or the certificate of incorporation or by-laws of the Company, or any agreement or
other instrument binding upon the Company or any of its subsidiaries that is material to
the WellCare Group, or any judgment, order or decree of any governmental body, agency or
court having jurisdiction over the Company or any of its subsidiaries; and no consent,
approval, authorization or order of, or qualification with, any governmental body or
agency is required for the performance by the Company of its obligations under this
Agreement, except such as may be required by the Securities Act, the Securities and
Exchange Act of 1934, as amended (the “Exchange Act”), the rules and regulations of the
New York Stock Exchange (the “NYSE”) or the securities or Blue Sky laws of the various
states in connection with the offer and sale of the Shares.

(j) There has not occurred any material adverse change, or any development involving
a prospective material adverse change, in the condition, financial or otherwise, or in the
earnings, business or operations of the WellCare Group, from that set forth in the
Prospectus (exclusive of any amendments or supplements thereto subsequent to the date of
this Agreement).

(k) There are no legal or governmental proceedings pending or, to the knowledge of
the Company, threatened to which the Company or any of its subsidiaries is a party or to
which any of the properties of the Company or any of its subsidiaries is subject that are
required to be described in the Registration Statement or the Prospectus and are not so
described or any statutes, regulations, contracts or other documents that are required to
be described in the Registration Statement or the Prospectus or to be filed as exhibits to
the Registration Statement that are not described or filed as required.

(l) Each preliminary prospectus filed as part of the registration statement as
originally filed or as part of any amendment thereto, or filed pursuant to Rule 424 under
the Securities Act, complied when so filed in all material respects with the Securities
Act and the applicable rules and regulations of the Commission thereunder.

(m) The Company is not, and after giving effect to the offering and sale of the
Shares and the application of the proceeds thereof as described in the Prospectus, will
not be, required to register as an “investment company” as such term is defined in the
Investment Company Act of 1940, as amended.

(n) The Company and each of its subsidiaries (i) are in compliance with any and all
applicable federal, state and local laws and regulations relating to the protection of
human health and safety, the environment or hazardous or toxic substances or wastes,
pollutants or contaminants (“Environmental Laws”); (ii) have received all permits,
licenses or other approvals required of them under applicable Environmental Laws to
conduct their respective businesses; and (iii) are in compliance with all terms and
conditions of any such permit, license or approval, except where such noncompliance with
Environmental Laws, failure to receive required permits, licenses or other approvals or
failure to comply with the terms and conditions of such permits, licenses or approvals
would not, singly or in the aggregate, have a material adverse effect on the WellCare
Group.

(o) There are no costs or liabilities associated with Environmental Laws (including,
without limitation, any capital or operating expenditures required for clean-up, closure
of properties or compliance with Environmental Laws or any permit, license or approval,
any related constraints on operating activities and any potential liabilities to third
parties) which would, singly or in the aggregate, have a material adverse effect on the
WellCare Group.

(p) There are no contracts, agreements or understandings between the Company and any
person granting such person the right to require the Company to file a registration
statement under the Securities Act with respect to any securities of the Company or to
require the Company to include such securities with the Shares registered pursuant to the
Registration Statement, in each case except as described in the Prospectus.

(q) Subsequent to the respective dates as of which information is given in the
Registration Statement and the Prospectus, (i) none of the Company or any of its
subsidiaries has incurred any material liability or obligation, direct or contingent, or
entered into any material transaction not in the ordinary course of business; (ii) none of
the Company or any of its subsidiaries has purchased any of its outstanding capital stock
or membership units, or declared, paid or otherwise made any dividend or distribution of
any kind on its capital stock or membership units; and (iii) there has not been any
material change in the capital stock, membership units, short-term debt or long-term debt
of any of the Company or its subsidiaries, except in each case as described in the
Prospectus.

(r) The Company and each of its subsidiaries have good and marketable title in fee
simple to all real property and good and marketable title to all personal property owned
by them which is material to the WellCare Group, in each case free and clear of all liens,
encumbrances and defects except such as are described in the Prospectus or such as do not
materially affect the value of such property and do not interfere with the use made and
proposed to be made of such property by the WellCare Group; and any real property and
buildings held under lease by each of the Company and its subsidiaries are held by them
under valid, subsisting and enforceable leases with such exceptions as are not material
and do not interfere with the use made and proposed to be made of such property and
buildings by the Company and each of its subsidiaries, in each case except as described in
the Prospectus.

(s) Except as set forth in the Prospectus, (i) the Company and each of its
subsidiaries own, possess, license or have other rights to use on reasonable terms, all
material patents, patent rights, licenses, inventions, copyrights, know-how (including
trade secrets and other unpatented and/or unpatentable proprietary or confidential
information, systems, or procedures), trademarks, service marks and trade names, and
domain names (in each case including all registrations and applications to register same),
and other intellectual property, (collectively, the “Intellectual Property”) necessary for
the operation of the business of the Company and each of its subsidiaries as now
conducted; (ii) none of the Company or any of its subsidiaries has received any notice of
infringement of or conflict with asserted rights of other parties with respect to such
Intellectual Property, and the Company is unaware of any facts which would form a
reasonable basis for a party to send such a notice; (iii) to the knowledge of the Company,
there is no material infringement by third parties of any such Intellectual Property that
is owned by or exclusively licensed to the Company or any of its subsidiaries; and (iv)
there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding or
claim by any third party that the conduct of the business of the Company or any of its
subsidiaries infringes or otherwise violates any Intellectual Property Rights of any third
party, and the Company is unaware of any other fact which would form a reasonable basis
for any such claim.

(t) No material labor dispute with the employees of the Company or any of its
subsidiaries exists or, to the knowledge of the Company, is imminent; and none of the
Company or any of its subsidiaries is aware of any existing, threatened or imminent labor
disturbance by the employees of any of its principal suppliers, manufacturers or
contractors that could have a material adverse effect on the WellCare Group.

(u) None of the following events has occurred or exists: (i) a failure to fulfill the
obligations, if any, under the minimum funding standards of Section 302 of the United
States Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and the
regulations and published interpretations thereunder with respect to a Plan, determined
without regard to any waiver of such obligations or extension of any amortization period;
(ii) an audit or investigation by the Internal Revenue Service, the U.S. Department of
Labor, the Pension Benefit Guaranty Corporation or any other federal or state governmental
agency or any foreign regulatory agency with respect to the employment or compensation of
employees by any member of the WellCare Group that could have a material adverse effect on
the WellCare Group; or (iii) any breach by any member of the WellCare Group of any
contractual obligation to employees that could have a material adverse effect on the
WellCare Group. None of the following events has or is reasonably likely to occur: (A) a
material increase in the aggregate amount of contributions required to be made to all
Plans in the current fiscal year of the WellCare Group compared to the amount of such
contributions made in the WellCare Group’s most recently completed fiscal year; (B) a
material increase in the WellCare Group’s “accumulated post-retirement benefit
obligations” (within the meaning of Statement of Financial Accounting Standards 106)
compared to the amount of such obligations in the WellCare Group’s most recently completed
fiscal year; (C) the termination of any Plan the assets of which are not sufficient to pay
benefit liabilities; or (D) the filing of a claim by one or more employees or former
employees of the WellCare Group related to their employment that could have a material
adverse effect on the WellCare Group. For purposes of this paragraph, the term “Plan”
means a plan (within the meaning of Section 3(3) of ERISA) subject to Title IV of ERISA
with respect to which any member of the WellCare Group may have any liability.

(v) The Company and each of its subsidiaries are insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts as are prudent
and customary in the businesses in which they are engaged; and none of the Company or any
of its subsidiaries has any reason to believe that it will not be able to renew its
existing insurance coverage as and when such coverage expires or to obtain similar
coverage from similar insurers as may be necessary to continue its business at a cost that
would not have a material adverse effect on the WellCare Group.

(w) None of the Company or any of its subsidiaries is (i) in violation of its
certificate of incorporation or bylaws or other organizational document, as the case may
be, or (ii) in default in any material respect, and no event has occurred which, with
notice or lapse of time or both, would constitute such a default, in the due performance
or observance of any term, covenant or condition contained in any indenture, mortgage,
deed of trust, credit agreement or other agreement or instrument to which it is a party or
by which it is bound or to which any of its property or assets is subject.

(x) The Company and each of its subsidiaries (i) are in compliance with, and conduct
their respective businesses in conformity with, all applicable federal, state and local
laws and regulations, except where the failure to so comply or conform would not have a
material adverse effect on the WellCare Group; (ii) have received all permits, licenses
and other approvals issued by the appropriate federal, state or local regulatory
authorities necessary to conduct their respective businesses, except where the failure to
receive such permits, licenses or other approvals would not have a material adverse effect
on the WellCare Group; (iii) are in compliance with all terms and conditions of any such
permit, license or other approval, except where such noncompliance would not have a
material adverse effect on the WellCare Group; and (iv) none of the Company or any of its
subsidiaries has received any notice of proceedings relating to the revocation or
modification of any such permit, license or other approval which, singly or in the
aggregate, if the subject of an unfavorable decision, ruling or finding, would have a
material adverse effect on the WellCare Group, except in each case as described in the
Prospectus.

(y) The Company and each of its subsidiaries have filed all federal, state and local
tax returns required to be filed through the date of this Agreement or have requested
extensions thereof (except for cases in which the failure to file would not have a
material adverse effect on the WellCare Group) and have paid all taxes due thereon, and,
except as currently being contested in good faith and for which reserves required by
generally accepted accounting principles have been created on the financial statements of
the Company, no tax deficiency has been determined adversely to the Company or any of its
subsidiaries which has had (nor does the Company or any of its subsidiaries have any
knowledge of any tax deficiency which, if determined adversely to the Company or any of
its subsidiaries, could reasonably be expected to have) a material adverse effect on the
WellCare Group.

(z) The Company and each of its subsidiaries maintain a system of internal accounting
controls sufficient to provide reasonable assurance that (i) transactions are executed in
accordance with management’s general or specific authorizations; (ii) transactions are
recorded as necessary to permit preparation of financial statements in conformity with
generally accepted accounting principles and to maintain asset accountability; (iii)
access to assets is permitted only in accordance with management’s general or specific
authorization; and (iv) the recorded accountability for assets is compared with the
existing assets at reasonable intervals and appropriate action is taken with respect to
any differences.

(aa) Based on its evaluation of its internal control over financial reporting, the
Company is not aware that there has been, since the end of the Company’s most recent
audited fiscal year, any material weakness or reportable condition in the Company’s
internal control over financial reporting (whether or not remediated).

(bb) The Company has established and maintains disclosure controls and procedures (as
such term is defined in Rule 13a-14 and 15d-14 under the Exchange Act; such disclosure
controls and procedures are designed to ensure that material information relating to the
Company, including its consolidated subsidiaries, is made known to the Company’s Chief
Executive Officer and Chief Financial Officer by others within the Company, and such
disclosure controls and procedures are effective to perform the functions for which they
were established; the Company’s auditor and the Audit Committee of its Board of Directors
have been advised of: (i) any significant deficiencies in the design or operation of
internal controls which could adversely affect the Company’s ability to record, process,
summarize, and report financial data; and (ii) any fraud, whether or not material, that
involves management or other employees who have a role in the Company’s internal controls;
any material weaknesses in internal controls have been identified for the Company’s
auditors; and since the date of the most recent evaluation of such disclosure controls and
procedures, there have been no significant changes in internal controls or in other
factors that could significantly affect internal controls, including any corrective
actions with regard to significant deficiencies and material weaknesses.

(cc) The Company has provided Morgan Stanley & Co. Incorporated (“Morgan Stanley”)
true, correct, and complete copies of all documentation pertaining to any extension of
credit in the form of a personal loan made, directly or indirectly, by the Company to any
director or executive officer of the Company, or to any family member or affiliate of any
director or executive officer of the Company; and since July 30, 2002, the Company has
not, directly or indirectly, including through any subsidiary: (i) extended credit,
arranged to extend credit, or renewed any extension of credit, in the form of a personal
loan, to or for any director or executive officer of the Company, or to or for any family
member or affiliate of any director or executive officer of the Company; or (ii) made any
material modification, including any renewal thereof, to any term of any personal loan to
any director or executive officer of the Company, or any family member or affiliate of any
director or executive officer, which loan was outstanding on July 30, 2002.

(dd) The Company has not taken and will not take, directly or indirectly, any action
which is designed to or which has constituted or which might reasonably be expected to
cause or result in stabilization or manipulation of the price of any security of the
Company to facilitate the sale or resale of the Shares.

(ee) Deloitte & Touche LLP, who have certified certain financial statements of the
Company and its subsidiaries, are independent public accountants as required by the
Securities Act and the rules and regulations of the Commission thereunder.

(ff) It is not necessary in connection with the contribution of Common Stock to any
deferred compensation or other benefit plan to register any such Common Stock under the
Securities Act, or to qualify any indenture under the Trust Indenture Act of 1939, as
amended.

2. Representations and Warranties of the Selling Shareholders.

(a) SPEI represents and warrants to and agrees with each of the Underwriters that:

(i) This Agreement has been duly authorized, executed and delivered by or on
behalf of SPEI.

(ii) The execution and delivery by SPEI of, and the performance by SPEI of
its obligations under, this Agreement will not contravene any provision of
applicable law or the partnership agreement of SPEI or any agreement or other
instrument binding upon SPEI or any judgment, order or decree of any governmental
body, agency or court having jurisdiction over SPEI, except to the extent a
consent or waiver has been obtained and remains in full force and effect; and no
consent, approval, authorization or order of, or qualification with, any
governmental body or agency is required for the performance by SPEI of its
obligations under this Agreement, except such as may be required by the
securities or Blue Sky laws of the various states in connection with the offer
and sale of the Shares.

(iii) SPEI is, and on the Closing Date (as defined below) or any Option
Closing Date (as defined below), as the case may be, will be, the record owner of
the Shares to be sold by SPEI, free and clear of all security interests, claims,
liens, equities or other encumbrances, and has duly endorsed such Shares in
blank; and SPEI has the legal right and power, and all authorization and approval
required by law, to enter into this Agreement and to sell, transfer and deliver
the Shares to be sold by SPEI.

(iv) Upon payment for the Shares to be sold by SPEI pursuant to this
Agreement, delivery of such Shares, as directed by the Underwriters, to Cede &
Co. (“Cede”) or such other nominee as may be designated by The Depository Trust
Company (“DTC”), registration of such Shares in the name of Cede or such other
nominee and the crediting of such Shares on the books of DTC to securities
accounts of the Underwriters (assuming that neither DTC nor any such Underwriter
has notice of any adverse claim (within the meaning of Section 8-105 of the New
York Uniform Commercial Code (the “UCC”)) to such Shares), (A) DTC shall be a
“protected purchaser” of such Shares within the meaning of Section 8-303 of the
UCC, (B) under Section 8-501 of the UCC, the Underwriters will acquire a valid
security entitlement in respect of such Shares and (C) no action based on any
“adverse claim”, within the meaning of Section 8-102 of the UCC, to such Shares
may be asserted against the Underwriters with respect to such Shares; for
purposes of this representation, such Selling Shareholder may assume that when
such payment, delivery and crediting occur, (x) such Shares will have been
registered in the name of Cede or another nominee designated by DTC, in each case
on the Company’s share registry in accordance with its certificate of
incorporation, bylaws and applicable law, (y) DTC will be registered as a
“clearing corporation” within the meaning of Section 8-102 of the UCC and (z)
appropriate entries to the accounts of the several Underwriters on the records of
DTC will have been made pursuant to the UCC.

(v) SPEI is not prompted by any information concerning the Company or its
subsidiaries which is not set forth in the Prospectus to sell its Shares pursuant
to this Agreement.

(vi) (A) The Registration Statement, when it became effective, did not
contain and, as amended or supplemented, if applicable, will not contain any
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading; and
(B) the Prospectus does not contain and, as amended or supplemented, if
applicable, will not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading; provided that the
representations and warranties set forth in this paragraph 2(a)(vi) are limited
to statements or omissions made in reliance upon information relating to SPEI
furnished to the Company in writing by SPEI expressly for use in the Registration
Statement, the Prospectus or any amendments or supplements thereto.

(vii) SPEI has not taken and will not take, directly or indirectly, any
action which is designed to or which has constituted or which might reasonably be
expected to cause or result in stabilization or manipulation of the price of any
security of the Company to facilitate the sale or resale of its Shares.

(viii) Except as disclosed by SPEI in writing to Morgan Stanley, neither
SPEI nor any of its affiliates directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with,
or has any other association with (within the meaning of Article 1(q) of the
Bylaws of the National Association of Securities Dealers, Inc. (the “NASD”)), any
member firm of the NASD.

(b) Each Non-Management Selling Shareholder and each Management Selling Shareholder
represents and warrants to and agrees with each of the Underwriters that, with respect to
such Selling Shareholders only:

(i) This Agreement has been duly authorized, executed and delivered by or on
behalf of such Selling Shareholder.

(ii) The execution and delivery by such Selling Shareholder of, and the
performance by such Selling Shareholder of its obligations under, this Agreement,
the Stock Custody Agreement signed by such Selling Shareholder and EquiServe
Trust Company, N.A., as Custodian, relating to the deposit of the Shares to be
sold by such Selling Shareholder (the “Custody Agreement”) and the Power of
Attorney appointing certain individuals as such Selling Shareholder’s
attorneys-in-fact to the extent set forth therein, relating to the transactions
contemplated hereby and by the Registration Statement (the “Power of Attorney”)
will not contravene (A) any provision of applicable law, (B) the partnership
agreement or membership agreement of such Selling Shareholder (if such Selling
Shareholder is a partnership or limited liability company), (C) any agreement or
other instrument binding upon such Selling Shareholder, except to the extent a
consent or waiver has been obtained and remains in full force and effect or (D)
any judgment, order or decree of any governmental body, agency or court having
jurisdiction over such Selling Shareholder, except, in the case of clauses (A),
(C) and (D), where such contravention would not impact in any material respect
the consummation of such Selling Shareholder’s obligations under this Agreement,
the Custody Agreement or such Selling Shareholder’s Power of Attorney; and no
consent, approval, authorization or order of, or qualification with, any
governmental body or agency is required for the performance by such Selling
Shareholder of its obligations under this Agreement or the Custody Agreement or
Power of Attorney of such Selling Shareholder, except such as may be required by
the Securities Act, the Exchange Act, the securities or Blue Sky laws of any
jurisdiction, or the rules and regulations of the NASD in connection with the
offer and sale of the Shares.

(iii) Such Selling Shareholder is, and on the Closing Date will be, the
record owner of the Shares to be sold by such Selling Shareholder (in the case of
an individual, either individually or jointly with such individual’s spouse),
free and clear of all security interests, claims, liens, equities or other
encumbrances, and has duly endorsed such Shares in blank; and such Selling
Shareholder has the legal right and power, and all authorization and approval
required by law, to enter into this Agreement, the Custody Agreement and the
Power of Attorney of such Selling Shareholder and to sell, transfer and deliver
the Shares to be sold by such Selling Shareholder.

(iv) The Custody Agreement and the Power of Attorney of such Selling
Shareholder have been duly authorized, executed and delivered by such Selling
Shareholder and are valid and binding agreements of such Selling Shareholder.

(v) Upon payment for the Shares to be sold by such Selling Shareholder
pursuant to this Agreement, delivery of such Shares, as directed by the
Underwriters, to Cede or such other nominee as may be designated by DTC,
registration of such Shares in the name of Cede or such other nominee and the
crediting of such Shares on the books of DTC to securities accounts of the
Underwriters (assuming that neither DTC nor any such Underwriter has notice of
any adverse claim (within the meaning of Section 8-105 of the UCC) to such
Shares), (A) DTC shall be a “protected purchaser” of such Shares within the
meaning of Section 8-303 of the UCC, (B) under Section 8-501 of the UCC, the
Underwriters will acquire a valid security entitlement in respect of such Shares
and (C) no action based on any “adverse claim”, within the meaning of Section
8-102 of the UCC, to such Shares may be asserted against the Underwriters with
respect to such Shares; for purposes of this representation, such Selling
Shareholder may assume that when such payment, delivery and crediting occur, (x)
such Shares will have been registered in the name of Cede or another nominee
designated by DTC, in each case on the Company’s share registry in accordance
with its certificate of incorporation, bylaws and applicable law, (y) DTC will be
registered as a “clearing corporation” within the meaning of Section 8-102 of the
UCC and (z) appropriate entries to the accounts of the several Underwriters on
the records of DTC will have been made pursuant to the UCC.

(vi) (A) In the case of the Management Selling Shareholders only, such
Selling Shareholder has no reason to believe that the representations and
warranties of the Company contained in Section 1 are not true and correct, is
familiar with the Registration Statement and Prospectus and has no knowledge of
any material fact, condition or information not disclosed in the Prospectus that
has had, or may have, a material adverse effect on the WellCare Group; and (B)
such Selling Shareholder is not prompted by any information concerning the
Company or its subsidiaries which is not set forth in the Prospectus or the
Registration Statement to sell its Shares pursuant to this Agreement.

(vii) (A) The Registration Statement, when it became effective, did not
contain and, as amended or supplemented, if applicable, will not contain any
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading; and
(B) the Prospectus does not contain and, as amended or supplemented, if
applicable, will not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading; provided that the
representations and warranties set forth in this paragraph 2(b)(vii) do not apply
to statements or omissions in the Registration Statement or the Prospectus based
upon information relating to any Underwriter furnished to the Company in writing
by such Underwriter through you expressly for use therein; and provided, further,
that, in the case of the Non-Management Selling Shareholders only, the
representations and warranties set forth in this paragraph 2(b)(vii) are limited
to statements or omissions made in reliance upon information relating to such
Selling Shareholder furnished to the Company in writing by such Selling
Shareholder expressly for use in the Registration Statement, the Prospectus or
any amendments or supplements thereto.

(viii) Such Selling Shareholder has not taken and will not take, directly or
indirectly, any action which is designed to or which has constituted or which
might reasonably be expected to cause or result in stabilization or manipulation
of the price of any security of the Company to facilitate the sale or resale of
its Shares.

(ix) Except as disclosed by such Selling Shareholder in writing to Morgan
Stanley, neither the Selling Shareholder nor any of his, her or its affiliates
directly, or indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with, or has any other association with
(within the meaning of Article 1(q) of the Bylaws of the NASD), any member firm
of the NASD.

3. Agreements to Sell and Purchase. Each Seller, severally and not jointly, hereby agrees to
sell to the several Underwriters, and each Underwriter, upon the basis of the representations and
warranties herein contained, but subject to the conditions hereinafter stated, agrees, severally
and not jointly, to purchase from such Seller at $30.40 a share (the “Purchase Price”) the number
of Firm Shares (subject to such adjustments to eliminate fractional shares as you may determine)
that bears the same proportion to the number of Firm Shares to be sold by such Seller as the number
of Firm Shares set forth in Schedule II hereto opposite the name of such Underwriter bears to the
total number of Firm Shares.

On the basis of the representations and warranties contained in this Agreement, and subject to
its terms and conditions, SPEI agrees to sell to the Underwriters the Additional Shares, and the
Underwriters shall have the right to purchase, severally and not jointly, up to 1,125,000
Additional Shares at the Purchase Price. You may exercise this right on behalf of the Underwriters
in whole or from time to time in part by giving written notice of each election to exercise the
option not later than 30 days after the date of this Agreement. Any exercise notice shall specify
the number of Additional Shares to be purchased by the Underwriters and the date on which such
shares are to be purchased. Each purchase date must be at least one business day after the written
notice is given and may not be earlier than the Closing Date nor later than ten business days after
the date of such notice. Additional Shares may be purchased as provided in Section 5 hereof solely
for the purpose of covering over-allotments made in connection with the offering of the Firm
Shares. On each day, if any, that Additional Shares are to be purchased (an “Option Closing
Date”), each Underwriter agrees, severally and not jointly, to purchase the number of Additional
Shares (subject to such adjustments to eliminate fractional shares as you may determine) that bears
the same proportion to the total number of Additional Shares to be purchased on such Option Closing
Date as the number of Firm Shares set forth in Schedule II hereto opposite the name of such
Underwriter bears to the total number of Firm Shares.

Each Seller (other than Sorrento Investment Group LLC) hereby agrees that, without the prior
written consent of Morgan Stanley on behalf of the Underwriters, it will not, during the period
ending 90 days after the date of the Prospectus, (a) offer, pledge, sell, contract to sell, sell
any option or contract to purchase, purchase any option or contract to sell, grant any option,
right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly,
any shares of Common Stock or any securities convertible into or exercisable or exchangeable for
Common Stock, (b) file any registration statement with the Commission relating to the offering of
any shares of Common Stock or any securities convertible into or exercisable or exchangeable for
Common Stock or (c) enter into any swap or other arrangement that transfers to another, in whole or
in part, any of the economic consequences of ownership of the Common Stock, whether any such
transaction described in clause (a), (b) or (c) above is to be settled by delivery of Common Stock
or such other securities, in cash or otherwise.

Notwithstanding the foregoing, if (i) during the last 17 days of the 90-day restricted period
the Company issues an earnings release or material news or a material event relating to the Company
occurs; or (ii) prior to the expiration of the 90-day restricted period, the Company announces that
it will release earnings results during the 16-day period beginning on the last day of the 90-day
period, the restrictions imposed by this letter shall continue to apply until the expiration of the
18-day period beginning on the issuance of the earnings release or the occurrence of the material
news or material event.

The restrictions contained in the second preceding paragraph shall not apply to (A) the Shares
to be sold hereunder; (B) the issuance by the Company of shares of Common Stock upon the exercise
of an option or warrant or the conversion of a security outstanding on the date hereof of which the
Underwriters have been advised in writing; (C) transactions by any person other than the Company
relating to shares of Common Stock or other securities acquired in open market transactions after
the completion of the offering of the Shares; (D) the grant of options or the issuance of shares of
Common Stock by the Company to employees, officers, directors, advisors or consultants pursuant to
an employee benefit plan described in the Prospectus; (E) the filing of any registration statement
on Form S-8 in respect of any employee benefit plan described in the Prospectus; or (F) transfers
of shares of Common Stock or any security convertible into Common Stock as a bona fide gift or
gifts or transfers to controlled affiliates, provided that each transferee also agrees to the
restrictions described above; or (G) the establishment of a trading plan pursuant to Rule 10b5-1
under the Exchange Act, provided that no sales or other transfers occur under such plan during the
restricted period referred to in the second preceding paragraph. In addition, each Selling
Shareholder agrees that, without the prior written consent of Morgan Stanley on behalf of the
Underwriters, it will not, during the period ending 90 days after the date of the Prospectus, make
any demand for, or exercise any right with respect to, the registration of any shares of Common
Stock or any security convertible into or exercisable or exchangeable for Common Stock.

4. Terms of Public Offering. The Sellers are advised by you that the Underwriters propose to
make a public offering of their respective portions of the Shares as soon after the Registration
Statement and this Agreement have become effective as in your judgment is advisable. The Sellers
are further advised by you that the Shares are to be offered to the public initially at $32.00 a
share (the “Public Offering Price”) and to certain dealers selected by you at a price that
represents a concession not in excess of $1.04 a share under the Public Offering Price.

5. Payment and Delivery. Payment for the Firm Shares to be sold by the Sellers shall be made
to such Sellers in federal or other funds immediately available in New York City against delivery
of such Firm Shares for the respective accounts of the several Underwriters at 10:00 a.m., New York
City time, on December 22, 2004, or at such other time on the same or such other date, not later
than December 29, 2004 as shall be designated in writing by you. The time and date of such payment
are hereinafter referred to as the “Closing Date.”

Payment for any Additional Shares shall be made to SPEI in federal or other funds immediately
available in New York City against delivery of such Additional Shares for the respective accounts
of the several Underwriters at 10:00 a.m., New York City time, on the date specified in the
corresponding notice described in Section 3 or at such other time on the same or on such other
date, in any event not later than January 31, 2005, as shall be designated in writing by
you.

The Firm Shares and Additional Shares shall be registered in such names and in such
denominations as you shall request in writing not later than one full business day prior to the
Closing Date or the applicable Option Closing Date, as the case may be. The Firm Shares and
Additional Shares shall be delivered to you on the Closing Date or an Option Closing Date, as the
case may be, for the respective accounts of the several Underwriters, with any transfer taxes
payable in connection with the transfer of the Shares to the Underwriters duly paid, against
payment of the Purchase Price therefor.

6. Conditions to the Underwriters’ Obligations. The obligations of the Sellers to sell the
Shares to the Underwriters and the several obligations of the Underwriters to purchase and pay for
the Shares on the Closing Date are subject to the condition that the Registration Statement shall
have become effective not later than 5:30 pm (New York City time) on the date hereof.

The several obligations of the Underwriters are subject to the following further conditions:

(a) Subsequent to the execution and delivery of this Agreement and prior to the
Closing Date:

(i) there shall not have occurred any downgrading, nor shall any notice have
been given of any intended or potential downgrading or of any review for a
possible change that does not indicate the direction of the possible change, in
the rating accorded any of the Company’s securities by any “nationally recognized
statistical rating organization,” as such term is defined for purposes of Rule
436(g)(2) under the Securities Act; and

(ii) there shall not have occurred any change, or any development involving
a prospective change, in the condition, financial or otherwise, or in the
earnings, business or operations of the WellCare Group, from that set forth in
the Prospectus (exclusive of any amendments or supplements thereto subsequent to
the date of this Agreement) that, in your judgment, is material and adverse and
that makes it, in your judgment, impracticable to market the Shares on the terms
and in the manner contemplated in the Prospectus.

(b) The Underwriters shall have received on the Closing Date a certificate, dated the
Closing Date and signed by an executive officer of the Company, to the effect set forth in
Section 6(a)(i) above and to the effect that the representations and warranties of the
Company contained in this Agreement are true and correct as of the Closing Date, the
Company has complied in all material respects with all of the agreements and satisfied all
of the conditions on its part to be performed or satisfied hereunder on or before the
Closing Date, no stop order suspending the effectiveness of the Registration Statement has
been issued and no proceedings for that purpose have been instituted or, to the Company’s
knowledge, threatened.

The officer signing and delivering such certificate may rely upon the best of his or
her knowledge as to proceedings threatened.

(c) The Underwriters shall have received on the Closing Date an opinion of Greenberg
Traurig, LLP, outside counsel for the Company, dated the Closing Date, to the effect that:

(i) each of the Company and its subsidiaries has been duly incorporated or
organized, as the case may be, is validly existing as a corporation or limited
liability company in good standing under the laws of the jurisdiction of its
incorporation or organization, as the case may be, has the power (corporate or
limited liability company, as the case may be) and authority to own its property
and to conduct its business as described in the Prospectus and (based solely on
an examination of certificates of government officials and agencies) is duly
qualified to transact business and is in good standing in each jurisdiction in
which the conduct of its business or its ownership or leasing of property
requires such qualification, except to the extent that the failure to be so
qualified or be in good standing would not have a material adverse effect on the
WellCare Group;

(ii) the authorized capital stock of the Company conforms as to legal
matters to the description thereof contained in the Prospectus;

(iii) the shares of Common Stock (including the Shares to be sold by the
Selling Shareholders) outstanding prior to the issuance of the Shares to be sold
by the Company have been duly authorized and are validly issued, fully paid and
non-assessable; and there are no restrictions on transfer of or encumbrances on
such Common Stock under the laws of the State of Delaware or the certificate of
incorporation of the Company;

(iv) all of the issued shares of capital stock or membership interest, as
the case may be, of each of the Company’s subsidiaries have been duly and validly
authorized and issued or created, as the case may be, and, in the case of shares
of capital stock, are fully paid and non-assessable; and in each case such
capital stock is owned directly or indirectly by the Company, free and clear of
all liens, encumbrances, equities or claims, except as described in the
Prospectus;

(v) the Shares to be sold by the Company have been duly authorized and, when
issued and delivered in accordance with the terms of this Agreement, will be
validly issued, fully paid and non-assessable, and the issuance of such Shares
will not be subject to any preemptive or similar rights;

(vi) this Agreement has been duly authorized, executed and delivered by the
Company;

(vii) the execution and delivery by the Company of, and the performance by
the Company of its obligations under, this Agreement will not contravene any
provision of the certificate of incorporation or by-laws of the Company or, to
the best of such counsel’s knowledge, any agreement or other instrument binding
upon the Company and filed or required to be filed as an exhibit to the
Registration Statement, or to the best of such counsel’s knowledge, any judgment,
order or decree of any governmental body, agency or court having jurisdiction
over the Company or any of its subsidiaries or any applicable U.S. federal, New
York, Florida, or Connecticut state law, and no consent, approval, authorization
or order of, or qualification with, any governmental body or agency is required
for the performance by the Company of its obligations under this Agreement,
except such as may be required by the securities or Blue Sky laws of the various
states in connection with the offer and sale of the Shares as to which no opinion
is expressed or (B) have been obtained or made;

(viii) it is not necessary in connection with the grant, offer or sale of
any options for Common Stock, to register any such Common Stock or options for
Common Stock under the Securities Act;

(ix) the statements relating to legal matters, documents or proceedings
included in (A) the Prospectus under the captions “Risk Factors,” “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations3⁄4Overview,” “Our Business,” “Management,” “Certain Transactions,”
“Description of Capital Stock,” and “Underwriters” and (B) the Registration
Statement in Items 14 and 15, in each case fairly summarize in all material
respects such matters, documents or proceedings;

(x) after due inquiry, such counsel does not know of any legal or
governmental proceedings pending or threatened to which the Company or any of its
subsidiaries is a party or to which any of the properties of the Company or any
of its subsidiaries is subject that are required to be described in the
Registration Statement or the Prospectus and are not so described or of any
statutes, regulations, contracts or other documents that are required to be
described in the Registration Statement or the Prospectus or to be filed as
exhibits to the Registration Statement that are not described or filed as
required;

(xi) the Company is not, and, after giving effect to the offering and sale
of the Shares and the application of the proceeds thereof as described in the
Prospectus, will not be, required to register as an “investment company” as such
term is defined in the Investment Company Act of 1940, as amended;

(xii) the WellCare Group (A) has received all permits, licenses and other
approvals issued by the appropriate federal and New York, Florida, and
Connecticut state or local regulatory authorities necessary to conduct its
businesses, except where the failure to receive such permits, licenses or other
approvals would not have a material adverse effect on the WellCare Group and (B)
is in compliance with all terms and conditions of any such permit, license or
other approval, except where such noncompliance would not have a material adverse
effect on the WellCare Group; and (C) none of the Company or any of its
subsidiaries has received any notice of proceedings relating to the revocation or
modification of any such permit, license or other approval, except where such
revocation or modification would not have a material adverse effect on the
WellCare Group, except as described in the Prospectus;

(xiii) (A) such counsel is of the opinion that the Registration Statement
and the Prospectus (except for the financial statements and financial schedules
and other financial and statistical data included therein, as to which such
counsel need not express any opinion) comply as to form in all material respects
with the Securities Act and the applicable rules and regulations of the
Commission thereunder; and (B) nothing has come to the attention of such counsel
to lead such counsel to believe that (i) the Registration Statement and the
prospectus included therein at the time the Registration Statement became
effective (except for the financial statements and financial schedules and other
financial and statistical data included therein, as to which such counsel need
not express any belief) contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary to
make the statements therein not misleading or (ii) the Prospectus (except for the
financial statements and financial schedules and other financial and statistical
data included therein, as to which such counsel need not express any belief) as
of its date or as of the Closing Date contained or contains any untrue statement
of a material fact or omitted or omits to state a material fact necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading.

(d) The Underwriters shall have received on the Closing Date an opinion of General
Counsel for the Company, dated the Closing Date, to the effect that:

(i) the execution and delivery by the Company of, and the performance by the
Company of its obligations under, this Agreement will not contravene any
applicable Illinois or Indiana state law; and

(ii) the WellCare Group (A) has received all permits, licenses and other
approvals issued by the appropriate Illinois and Indiana state or local
regulatory authorities necessary to conduct its businesses, except where the
failure to receive such permits, licenses or other approvals would not have a
material adverse effect on the WellCare Group and (B) is in compliance with all
terms and conditions of any such permit, license or other approval, except where
such noncompliance would not have a material adverse effect on the WellCare
Group; and (C) none of the Company or any of its subsidiaries has received any
notice of proceedings relating to the revocation or modification of any such
permit, license or other approval, except where such revocation or modification
would not have a material adverse effect on the WellCare Group, except as
described in the Prospectus.

(e) The Underwriters shall have received on the Closing Date an opinion of Kirkland &
Ellis LLP, counsel for SPEI, dated the Closing Date, to the effect that:

(i) SPEI has duly authorized, executed and delivered this Agreement;

(ii) the execution and delivery of this Agreement by SPEI, the sale of the
Shares to be sold by SPEI in accordance with the provisions of this Agreement and
the consummation by SPEI of the transactions herein contemplated will not (A)
violate the organizational documents or by-laws of SPEI, (B) constitute a
violation by SPEI of any applicable provision of any law, statute or regulation
of any governmental agency or body having jurisdiction over SPEI or the property
of SPEI (except with respect to compliance with any disclosure requirement or any
prohibition against fraud or misrepresentation or as to whether performance of
the indemnification or contribution provisions in this Agreement would be
permitted, as to which such counsel need not express an opinion) or (C) breach,
or result in a default under, any existing obligation of SPEI under any of the
agreements or forms of agreements set forth on an exhibit attached to such
opinion, which representatives of SPEI have advised such counsel include all
material debt agreements and instruments of or binding on SPEI, in each case
except to the extent a consent or waiver has been obtained and remains in full
force and effect and/or other than such violations, breaches or defaults which,
individually or in the aggregate, would not materially adversely affect the
SPEI’s ability to perform its obligations under this Agreement;

(iii) to the knowledge of such counsel, no consent, approval, authorization
or order of or filing with any court or governmental agency or body is required
for the transfer and sale of the Shares by SPEI or the consummation by SPEI of
the transactions contemplated by this Agreement, other than such consents,
approvals, authorizations, orders or filings (A) as may be required under foreign
securities or state “blue sky” laws in connection with the purchase and
distribution of Shares by the Underwriters (as to which laws we have not been
requested to express and therefore do not express an opinion) or (B) as have been
obtained and remain in full force and effect; and

(iv) SPEI will be, immediately prior to the Closing Date, the sole
registered owner of the Shares to be sold by SPEI; upon payment for the Shares to
be sold by SPEI to each of the several Underwriters as provided in this
Agreement, the delivery of such Shares to Cede or such other nominee as may be
designated by DTC, the registration of such Shares in the name of Cede or such
other nominee and the crediting of such Shares on the records of DTC to security
accounts in the name of such Underwriter (assuming neither DTC nor such
Underwriter has notice of any adverse claim (as such term is defined in Section
8-102(a)(1) of the UCC) to any “security entitlement” (within the meaning of
Section 8-102(a)(17) of the UCC) in respect of such Shares), (A) under Section
8-501 of the UCC, such Underwriter will acquire a “security entitlement” (within
the meaning of Section 8-102(a)(17) of the UCC) in respect of such Shares and (B)
no action based on any “adverse claim” (as defined in Section 8-102(a)(1) of the
UCC) to such security entitlement may be asserted against such Underwriter, it
being understood that for purposes of such opinion, such counsel may assume that
when such payment, delivery, registration and crediting occur, (x) the Shares
will have been registered in the name of Cede or such other nominee as may be
designated by DTC, in each case on the Company’s share registry in accordance
with its certificate of incorporation, by-laws and applicable law, (y) DTC will
be a “securities intermediary” within the meaning of Section 8-102 of the UCC and
(z) appropriate entries to the securities account or accounts in the name of such
Underwriter on the records of DTC will have been made pursuant to the UCC.

(f) The Underwriters shall have received on the Closing Date an opinion of one or
more counsel for the Non-Management Selling Shareholders and the Management Selling
Shareholders, dated the Closing Date, to the effect that, with respect to the Selling
Shareholder about which such counsel is opining:

(i) this Agreement, the Custody Agreement and the Power of Attorney have
been duly authorized, executed and delivered by or on behalf of such Selling
Shareholders;

(ii) the execution and delivery by such Selling Shareholder of, and the
performance by such Selling Shareholder of its obligations under this Agreement
and the Custody Agreement and Power of Attorney of such Selling Shareholder, and
the sale of the Shares to be sold by such Selling Shareholder in accordance with
the provisions of this Agreement and the consummation by such Selling Shareholder
of the transactions herein and therein contemplated, will not contravene any
provision of applicable law (except (A) in the case of the Non-Management Selling
Shareholders only, with respect to compliance with any disclosure requirement or
any prohibition against fraud or misrepresentation or (B) as to whether
performance of the indemnification or contribution provisions in this Agreement
would be permitted, as to which such counsel need not express an opinion), or the
organizational documents or partnership or membership agreement of such Selling
Shareholder (if such Selling Shareholder is a partnership or limited liability
company) or, to the best of such counsel’s knowledge, any agreement or other
instrument binding upon such Selling Shareholder or, to the best of such
counsel’s knowledge, any judgment, order or decree of any governmental body,
agency or court having jurisdiction over such Selling Shareholder, and no
consent, approval, authorization or order of, or qualification with, any
governmental body or agency is required for the performance by such Selling
Shareholder of its obligations under this Agreement or the Custody Agreement or
Power of Attorney of such Selling Shareholder, except such as may be required by
the securities or Blue Sky laws of the various states in connection with offer
and sale of the Shares, as to which no opinion is expressed;

(iii) such Selling Shareholder is the record owner of the Shares to be sold
by such Selling Shareholder (in the case of an individual, either individually or
jointly with such individual’s spouse), and such Selling Shareholder has the
legal right and power, and all authorization and approval required by law, to
enter into this Agreement and the Custody Agreement and Power of Attorney of such
Selling Shareholder and to sell, transfer and deliver the Shares to be sold by
such Selling Shareholder;

(iv) the Custody Agreement and Power of Attorney of such Selling Shareholder
have been duly authorized, executed and delivered by such Selling Shareholder and
are valid and binding agreements of such Selling Shareholder;

(v) upon payment for the Shares to be sold by such Selling Shareholder to
each of the several Underwriters as provided in this Agreement, the delivery of
such Shares to Cede or such other nominee as may be designated by DTC, the
registration of such Shares in the name of Cede or such other nominee and the
crediting of such Shares on the records of DTC to security accounts in the name
of such Underwriter (assuming neither DTC nor such Underwriter has notice of any
adverse claim (as such term is defined in Section 8-102(a)(1) of the UCC) to any
“security entitlement” (within the meaning of Section 8-102(a)(17) of the UCC) in
respect of such Shares), (A) under Section 8-501 of the UCC, such Underwriter
will acquire a “security entitlement” (within the meaning of Section 8-102(a)(17)
of the UCC) in respect of such Shares and (B) no action based on any “adverse
claim” (as defined in Section 8-102(a)(1) of the UCC) to such Shares may be
asserted against such Underwriter, it being understood that for purposes of such
opinion, such counsel may assume that when such payment, delivery, registration
and crediting occur, (x) such Shares will have been registered in the name of
Cede or such other nominee as may be designated by DTC, in each case on the
Company’s share registry in accordance with its certificate of incorporation,
by-laws and applicable law, (y) DTC will be a “securities intermediary” within
the meaning of Section 8-102 of the UCC and (z) appropriate entries to the
securities account or accounts in the name of such Underwriter on the records of
DTC will have been made pursuant to the UCC; and

(vi) (A) in the case of the Management Selling Shareholders only, such
counsel is of the opinion that the Registration Statement and the Prospectus
(except for the financial statements and financial schedules and other financial
and statistical data included therein, as to which such counsel need not express
any opinion) comply as to form in all material respects with the Securities Act
and the applicable rules and regulations of the Commission thereunder; and (B)
nothing has come to the attention of such counsel that causes such counsel to
believe that (i) the Registration Statement or the prospectus included therein
(except for the financial statements and financial schedules and other financial
and statistical data included therein, as to which such counsel need not express
any belief) at the time the Registration Statement became effective contained an
untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary to make the statements therein not misleading
or (ii) the Prospectus (except for the financial statements and financial
schedules and other financial and statistical data included therein, as to which
such counsel need not express any belief) as of its date or as of the Closing
Date contained or contains an untrue statement of a material fact or omitted or
omits to state a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading;
provided that in the case of the Non-Management Selling Shareholders only, such
counsel need express such belief only as to statements or omissions in the
Registration Statement or the Prospectus based upon information relating to such
Selling Shareholder furnished in writing by or on behalf of such Selling
Shareholder expressly for use in the Registration Statement, the Prospectus or
any amendments or supplements thereto.

(g) The Underwriters shall have received on the Closing Date an opinion of Cleary,
Gottlieb, Steen & Hamilton, counsel for the Underwriters, dated the Closing Date, covering
the matters referred to in Sections 6(c)(v), 6(c)(vi), 6(c)(ix) (but only as to the
statements in the Prospectus under “Description of Capital Stock” and “Underwriters”) and
a letter covering the matters referred to in 6(c)(xiii)(B) above.

(h) The Underwriters shall have received on the Closing Date an opinion of Hogan &
Hartson L.L.P., federal, Florida and New York health regulatory counsel for the
Underwriters, dated the Closing Date, covering the matters referred to in Section
6(c)(ix)(A) (solely with respect to the accuracy of the statements summarizing federal,
Florida and New York health statutes and regulations, described in specified sections
under “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” and “Our Business” in the Prospectus) and a letter covering the
matters referred to in 6(c)(xiii)(B) (solely with respect to the information relating to
federal, Florida and New York health statues and regulations contained in specified
sections under “Risk Factors,” “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and “Our Business” in the Prospectus) in the forms
previously agreed to.

With respect to Section 6(c)(xiii) above, Greenberg Traurig, LLP, Cleary,
Gottlieb, Steen & Hamilton and Hogan and Hartson L.L.P., and with respect to
Section 6(f)(vi) above, counsel for any Selling Shareholders, may state that their
beliefs are based upon their participation in the preparation of the Registration
Statement and Prospectus and any amendments or supplements thereto and review and
discussion of the contents thereof, but are without independent check or
verification, except as specified. With respect to Sections 6(e) and 6(f) above,
Kirkland & Ellis LLP and counsel for any Selling Shareholders may rely upon an
opinion or opinions of other counsel for any Selling Shareholder and, with respect
to factual matters and to the extent such counsel deems appropriate, upon the
representations of each Selling Shareholder contained herein and in the Custody
Agreement and Power of Attorney of such Selling Shareholder, as applicable, and in
other documents and instruments; provided that (A) each such counsel for the
Selling Shareholders is satisfactory to your counsel, (B) a copy of each opinion
so relied upon is delivered to you and is in form and substance satisfactory to
your counsel, (C) copies of such Custody Agreements and Powers of Attorney and of
any such other documents and instruments shall be delivered to you and shall be in
form and substance satisfactory to your counsel and (D) such counsel for the
Selling Shareholders shall state in their opinion that they are justified in
relying on each such other opinion. With respect to Section 6(c) above, Greenberg
Traurig, LLP may rely, with respect to factual matters and to the extent such
counsel deems appropriate, upon the representations of the Company contained
herein and in other documents and instruments; provided that copies of such other
documents and instruments shall be delivered to you and shall be in form and
substance satisfactory to your counsel.

The opinions of Greenberg Traurig, LLP, General Counsel for the Company,
Kirkland & Ellis LLP and counsel for any Selling Shareholder described in Sections
6(c), 6(d), 6(e) and 6(f) above shall be rendered to the Underwriters at the
request of the Company or one or more of the Selling Shareholders, as the case may
be, and shall so state therein.

(i) The Underwriters shall have received, on each of the date hereof and the Closing
Date, a letter dated the date hereof or the Closing Date, as the case may be, in form and
substance satisfactory to the Underwriters, from Deloitte & Touche LLP, independent public
accountants, containing statements and information of the type ordinarily included in
accountants’ “comfort letters” to underwriters with respect to the financial statements
and certain financial information contained in the Registration Statement and the
Prospectus; provided that the letter delivered on the Closing Date shall use a “cut-off
date” not earlier than the date hereof.

(j) The “lock-up” agreements, each substantially in the form of Exhibit A hereto
except as you may otherwise agree, between you and certain shareholders, officers and
directors of the Company relating to sales and certain other dispositions of shares of
Common Stock or certain other securities, delivered to you on or before the date hereof,
shall be in full force and effect on the Closing Date.

(k) The Shares shall have been approved for listing on the NYSE, subject only to
official notice of issuance.

The several obligations of the Underwriters to purchase Additional Shares hereunder are
subject to the delivery to you on the applicable Option Closing Date of such documents as you may
reasonably request with respect to the good standing of the Company, the due authorization and
issuance of the Additional Shares to be sold on such Option Closing Date and other matters related
to the issuance of such Additional Shares.

7. Covenants of the Company. In further consideration of the agreements of the Underwriters
herein contained, the Company covenants with each Underwriter as follows:

(a) To furnish to you, without charge, five signed copies of the Registration
Statement (including exhibits thereto) and for delivery to each other Underwriter a
conformed copy of the Registration Statement (without exhibits thereto) and to furnish to
you in New York City, without charge, prior to 10:00 a.m. New York City time on the
business day next succeeding the date of this Agreement and during the period mentioned in
Section 7(c) below, as many copies of the Prospectus and any supplements and amendments
thereto or to the Registration Statement as you may reasonably request.

(b) Before amending or supplementing the Registration Statement or the Prospectus, to
furnish to you a copy of each such proposed amendment or supplement and not to file any
such proposed amendment or supplement to which you reasonably object, and to file with the
Commission within the applicable period specified in Rule 424(b) under the Securities Act
any prospectus required to be filed pursuant to such Rule.

(c) If, during such period after the first date of the public offering of the Shares
as in the opinion of counsel for the Underwriters the Prospectus is required by law to be
delivered in connection with sales by an Underwriter or dealer, any event shall occur or
condition exist as a result of which it is necessary to amend or supplement the Prospectus
in order to make the statements therein, in the light of the circumstances when the
Prospectus is delivered to a purchaser, not misleading, or if, in the opinion of counsel
for the Underwriters, it is necessary to amend or supplement the Prospectus to comply with
applicable law, forthwith to prepare, file with the Commission and furnish, at its own
expense, to the Underwriters and to the dealers (whose names and addresses you will
furnish to the Company) to which Shares may have been sold by you on behalf of the
Underwriters and to any other dealers upon request, either amendments or supplements to
the Prospectus so that the statements in the Prospectus as so amended or supplemented will
not, in the light of the circumstances when the Prospectus is delivered to a purchaser, be
misleading or so that the Prospectus, as amended or supplemented, will comply with law.

(d) To endeavor to qualify the Shares for offer and sale under the securities or Blue
Sky laws of such jurisdictions as you shall reasonably request.

(e) To make generally available to the Company’s security holders and to you as soon
as practicable an earning statement covering the twelve-month period ending December 31,
2005 that satisfies the provisions of Section 11(a) of the Securities Act and the rules
and regulations of the Commission thereunder.

8. Expenses. Whether or not the transactions contemplated in this Agreement are consummated
or this Agreement is terminated, the Company agrees to pay or cause to be paid all expenses
incident to the performance of their obligations under this Agreement, including: (i) the fees,
disbursements and expenses of the Company’s counsel, the Company’s accountants and counsel for the
Selling Shareholders in connection with the registration and delivery of the Shares under the
Securities Act and all other fees or expenses in connection with the preparation and filing of the
Registration Statement, any preliminary prospectus, the Prospectus and amendments and supplements
to any of the foregoing, including all printing costs associated therewith, and the mailing and
delivering of copies thereof to the Underwriters and dealers, in the quantities hereinabove
specified; (ii) all costs and expenses related to the transfer and delivery of the Shares to the
Underwriters, including any transfer or other taxes payable thereon; (iii) the cost of printing or
producing any Blue Sky or Legal Investment memorandum in connection with the offer and sale of the
Shares under state securities laws and all expenses in connection with the qualification of the
Shares for offer and sale under state securities laws as provided in Section 7(d) hereof, including
filing fees and the reasonable fees and disbursements of counsel for the Underwriters in connection
with such qualification and in connection with the Blue Sky or Legal Investment memorandum; (iv)
all filing fees and the reasonable fees and disbursements of counsel to the Underwriters incurred
in connection with the review and qualification of the offering of the Shares by the NASD; (v) all
fees and expenses in connection with the preparation and filing of the registration statement on
Form 8-A relating to the Common Stock and all costs and expenses incident to listing the Shares on
the NYSE; (vi) the cost of printing certificates representing the Shares; (vii) the costs and
charges of any transfer agent, registrar or depositary; (viii) the costs and expenses of the
Company relating to investor presentations on any “road show” undertaken in connection with the
marketing of the offering of the Shares, including, without limitation, expenses associated with
the production of road show slides and graphics, fees and expenses of any consultants engaged in
connection with the road show presentations with the prior approval of the Company, travel and
lodging expenses of the representatives and officers of the Company and any such consultants, and
the cost of any aircraft chartered in connection with the road show (it being understood that the
Underwriters shall be responsible for paying travel and lodging expenses of the representatives of
the Underwriters, one-half of the cost of any aircraft chartered in connection with the road show,
and for any ground transportation used by representatives of the Company or the Underwriters in
connection with the road show); (ix) the document production charges and expenses associated with
printing this Agreement; and (x) all other costs and expenses incident to the performance of the
obligations of the Company hereunder for which provision is not otherwise made in this Section. It
is understood, however, that except as provided in this Section, Section 9 entitled “Indemnity and
Contribution”, and the last paragraph of Section 11 below, the Underwriters will pay all of their
costs and expenses, including fees and disbursements of their counsel, stock transfer taxes payable
on resale of any of the Shares by them and any advertising expenses connected with any offers they
may make.

The provisions of this Section shall not supersede or otherwise affect any agreement that the
Sellers may otherwise have for the allocation of such expenses among themselves.

9. Indemnity and Contribution. (a) Each of the Company and the Management Selling
Shareholders, severally and not jointly, agrees to indemnify and hold harmless each Underwriter,
each person, if any, who controls any Underwriter within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act and each affiliate of any Underwriter within the
meaning of Rule 405 under the Securities Act, from and against any and all losses, claims, damages
and liabilities (including, without limitation, any legal or other expenses reasonably incurred in
connection with defending or investigating any such action or claim) caused by any untrue statement
or alleged untrue statement of a material fact contained in the Registration Statement or any
amendment thereof, any preliminary prospectus, the Prospectus (as amended or supplemented if the
Company shall have furnished any amendments or supplements thereto) or the Form 8-K filed by the
Company with the Commission on November 4, 2004 (including the exhibit furnished therewith), or
caused by any omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, except insofar as such losses,
claims, damages or liabilities are caused by any such untrue statement or omission or alleged
untrue statement or omission based upon information relating to any Underwriter furnished to the
Company in writing by such Underwriter through you expressly for use therein; provided, however,
that the foregoing indemnity agreement with respect to any preliminary prospectus shall not inure
to the benefit of any Underwriter from whom the person asserting such losses, claims, damages or
liabilities purchased Shares, or any person controlling such Underwriter, if it is established that
a copy of the Prospectus (as then amended or supplemented if the Company shall have furnished any
amendments or supplements thereto) was not sent or given by or on behalf of such Underwriter to
such person, if required by law so to have been delivered, at or prior to the written confirmation
of the sale of the Shares to such person, and if the Prospectus (as so amended or supplemented)
would have cured the defect giving rise to such losses, claims, damages or liabilities; and
provided, further, that the liability of each Management Selling Shareholder under such Management
Selling Shareholder’s representations and warranties contained in Sections 2(b)(vi)(A) and
2(b)(vii) hereof and under this paragraph (a) shall be limited to an amount equal to the net
proceeds received by such Management Selling Shareholder from the sale of such Management Selling
Shareholder’s Shares.

(b) Each of SPEI and the Non-Management Selling Shareholders, severally and not jointly,
agrees to indemnify and hold harmless each Underwriter and each person, if any, who controls any
Underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the
Exchange Act, from and against any and all losses, claims, damages and liabilities (including,
without limitation, any legal or other expenses reasonably incurred in connection with defending or
investigating any such action or claim) caused by any untrue statement or alleged untrue statement
of a material fact contained in the Registration Statement or any amendment thereof, any
preliminary prospectus or the Prospectus (as amended or supplemented if the Company shall have
furnished any amendments or supplements thereto), or caused by any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make the statements
therein not misleading, but only with reference to information relating specifically to such
Selling Shareholder, as set forth under the caption “Principal and Selling Stockholders” (including
the notes thereto); provided, however, that the foregoing indemnity agreement with respect to any
preliminary prospectus shall not inure to the benefit of any Underwriter from whom the person
asserting such losses, claims, damages or liabilities purchased Shares, or any person controlling
such Underwriter, if it is established that a copy of the Prospectus (as then amended or
supplemented if the Company shall have furnished any amendments or supplements thereto) was not
sent or given by or on behalf of such Underwriter to such person, if required by law so to have
been delivered, at or prior to the written confirmation of the sale of the Shares to such person,
and if the Prospectus (as so amended or supplemented) would have cured the defect giving rise to
such losses, claims, damages or liabilities; and provided, further, that with respect to any amount
due an indemnified person under this paragraph (b), each Selling Shareholder shall be liable only
to the extent of the net proceeds received by the Selling Shareholder from the sale of such Selling
Shareholder’s Shares.

(c) Each Underwriter agrees, severally and not jointly, to indemnify and hold harmless the
Company, the Selling Shareholders, the directors of the Company, the officers of the Company who
sign the Registration Statement and each person, if any, who controls the Company or any Selling
Shareholder within the meaning of either Section 15 of the Securities Act or Section 20 of the
Exchange Act from and against any and all losses, claims, damages and liabilities (including,
without limitation, any legal or other expenses reasonably incurred in connection with defending or
investigating any such action or claim) caused by any untrue statement or alleged untrue statement
of a material fact contained in the Registration Statement or any amendment thereof, any
preliminary prospectus or the Prospectus (as amended or supplemented if the Company shall have
furnished any amendments or supplements thereto), or caused by any omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make the statements
therein not misleading, but only with reference to information relating to such Underwriter
furnished to the Company in writing by such Underwriter through you expressly for use in the
Registration Statement, any preliminary prospectus, the Prospectus or any amendments or supplements
thereto.

(d) In case any proceeding (including any governmental investigation) shall be instituted
involving any person in respect of which indemnity may be sought pursuant to Section 9(a), 9(b) or
9(c), such person (the “indemnified party”) shall promptly notify the person against whom such
indemnity may be sought (the “indemnifying party”) in writing and the indemnifying party, upon
request of the indemnified party, shall retain counsel reasonably satisfactory to the indemnified
party to represent the indemnified party and any others the indemnifying party may designate in
such proceeding and shall pay the fees and disbursements of such counsel related to such
proceeding. In any such proceeding, any indemnified party shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of such indemnified
party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the
retention of such counsel or (ii) the named parties to any such proceeding (including any impleaded
parties) include both the indemnifying party and the indemnified party and representation of both
parties by the same counsel would be inappropriate due to actual or potential differing interests
between them. It is understood that the indemnifying party shall not, in respect of the legal
expenses of any indemnified party in connection with any proceeding or related proceedings in the
same jurisdiction, be liable for (A) the fees and expenses of more than one separate firm (in
addition to any local counsel) for all Underwriters and all persons, if any, who control any
Underwriter within the meaning of either Section 15 of the Securities Act or Section 20 of the
Exchange Act or who are affiliates of any Underwriter within the meaning of Rule 405 under the
Securities Act, (B) the fees and expenses of more than one separate firm (in addition to any local
counsel) for the Company, its directors, its officers who sign the Registration Statement and each
person, if any, who controls the Company within the meaning of either such Section; (C) the fees
and expenses of more than one separate firm (in addition to any local counsel) for the Selling
Shareholders (other than SPEI) and all persons, if any, who control any such Selling Shareholder
within the meaning of either such Section, and that all such fees and expenses shall be reimbursed
as they are incurred; and (D) the fees and expenses of more than one separate firm (in addition to
any local counsel) for SPEI and all persons who control SPEI within the meaning of either such
Section, and that all such fees and expenses shall be reimbursed as they are incurred. In the case
of any such separate firm for the Underwriters and such control persons and affiliates of any
Underwriters, such firm shall be designated in writing by Morgan Stanley. In the case of any such
separate firm for the Company, and such directors, officers and control persons of the Company,
such firm shall be designated in writing by the Company. In the case of any such separate firm for
the Selling Shareholders (other than SPEI) and such control persons of such Selling Shareholders,
such firm shall be designated in writing by the persons named as attorneys in fact for such Selling
Shareholders under the Powers of Attorney. In the case of any such separate firm for SPEI and such
control persons of SPEI, such firm shall be designated in writing by SPEI. The indemnifying party
shall not be liable for any settlement of any proceeding effected without its written consent, but
if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying
party agrees to indemnify the indemnified party from and against any loss or liability by reason of
such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified
party shall have requested an indemnifying party to reimburse the indemnified party for fees and
expenses of counsel as contemplated by the second and third sentences of this paragraph, the
indemnifying party agrees that it shall be liable for any settlement of any proceeding effected
without its written consent if (1) such settlement is entered into more than 30 days after receipt
by such indemnifying party of the aforesaid request and (2) such indemnifying party shall not have
reimbursed the indemnified party in accordance with such request prior to the date of such
settlement. No indemnifying party shall, without the prior written consent of the indemnified
party, effect any settlement of any pending or threatened proceeding in respect of which any
indemnified party is or could have been a party and indemnity could have been sought hereunder by
such indemnified party, unless such settlement includes an unconditional release of such
indemnified party from all liability on claims that are the subject matter of such proceeding.

(e) To the extent the indemnification provided for in Section 9(a), 9(b) or 9(c) is
unavailable to an indemnified party or insufficient in respect of any losses, claims, damages or
liabilities referred to therein, then each indemnifying party under such paragraph, in lieu of
indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by
such indemnified party as a result of such losses, claims, damages or liabilities (i) in such
proportion as is appropriate to reflect the relative benefits received by the indemnifying party or
parties on the one hand and the indemnified party or parties on the other hand from the offering of
the Shares or (ii) if the allocation provided by clause 9(e)(i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause 9(e)(i) above but also the relative fault of the indemnifying party or
parties on the one hand and of the indemnified party or parties on the other hand in connection
with the statements or omissions that resulted in such losses, claims, damages or liabilities, as
well as any other relevant equitable considerations. The relative benefits received by the Sellers
on the one hand and the Underwriters on the other hand in connection with the offering of the
Shares shall be deemed to be in the same respective proportions as the net proceeds from the
offering of the Shares (before deducting expenses) received by each Seller and the total
underwriting discounts and commissions received by the Underwriters, in each case as set forth in
the table on the cover of the Prospectus, bear to the aggregate Public Offering Price of the
Shares. The relative fault of the Sellers on the one hand and the Underwriters on the other hand
shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact relates
to information supplied by the Sellers or by the Underwriters and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission.
The Underwriters’ respective obligations to contribute pursuant to this Section 9 are several in
proportion to the respective number of Shares they have purchased hereunder, and not joint. In no
event shall the liability of any Selling Shareholder under this Section 9(e) exceed the amount that
such Selling Shareholder would have been required to pay under Section 9(b) had such
indemnification been held to be available thereunder.

(f) The Sellers and the Underwriters agree that it would not be just or equitable if
contribution pursuant to this Section 9 were determined by pro rata allocation (even if the
Underwriters were treated as one entity for such purpose) or by any other method of allocation that
does not take account of the equitable considerations referred to in Section 9(e). The amount paid
or payable by an indemnified party as a result of the losses, claims, damages and liabilities
referred to in the immediately preceding paragraph shall be deemed to include, subject to the
limitations set forth above, any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 9, no Underwriter shall be required to contribute any amount in excess
of the amount by which the total price at which the Shares underwritten by it and distributed to
the public were offered to the public exceeds the amount of any damages that such Underwriter has
otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty
of such fraudulent misrepresentation. The remedies provided for in this Section 9 are not
exclusive and shall not limit any rights or remedies which may otherwise be available to any
indemnified party at law or in equity. The provisions of this Section 9 shall not supersede or
otherwise affect any agreement that the Sellers may otherwise have with respect to indemnification
between them.

(g) The indemnity and contribution provisions contained in this Section 9 and the
representations, warranties and other statements of the Company and the Selling Shareholders
contained in this Agreement shall remain operative and in full force and effect regardless of (i)
any termination of this Agreement, (ii) any investigation made by or on behalf of any Underwriter,
any person controlling any Underwriter or any affiliate of any Underwriter, any Selling Shareholder
or any person controlling any Selling Shareholder, or the Company, its officers or directors or any
person controlling the Company and (iii) acceptance of and payment for any of the Shares.

10. Termination. The Underwriters may terminate this Agreement by notice given by you to the
Company, if after the execution and delivery of this Agreement and prior to the Closing Date (i)
trading generally shall have been suspended or materially limited on, or by, as the case may be,
any of the NYSE, the American Stock Exchange or the Nasdaq National Market; (ii) trading of any
securities of the Company shall have been suspended on any exchange or in any over-the-counter
market; (iii) a material disruption in securities settlement, payment or clearance services in the
United States shall have occurred; (iv) any moratorium on commercial banking activities shall have
been declared by Federal or New York State authorities; or (v) there shall have occurred any
outbreak or escalation of hostilities, or any change in financial markets or any calamity or crisis
that, in your judgment, is material and adverse and which, singly or together with any other event
specified in this clause (v), makes it, in your judgment, impracticable or inadvisable to proceed
with the offer, sale or delivery of the Shares on the terms and in the manner contemplated in the
Prospectus.

11. Effectiveness; Defaulting Underwriters. This Agreement shall become effective upon the
execution and delivery hereof by the parties hereto.

If, on the Closing Date or an Option Closing Date, as the case may be, any one or more of the
Underwriters shall fail or refuse to purchase Shares that it has or they have agreed to purchase
hereunder on such date, and the aggregate number of Shares which such defaulting Underwriter or
Underwriters agreed but failed or refused to purchase is not more than one-tenth of the aggregate
number of the Shares to be purchased on such date, the other Underwriters shall be obligated
severally in the proportions that the number of Firm Shares set forth opposite their respective
names in Schedule II bears to the aggregate number of Firm Shares set forth opposite the names of
all such non-defaulting Underwriters, or in such other proportions as you may specify, to purchase
the Shares which such defaulting Underwriter or Underwriters agreed but failed or refused to
purchase on such date; provided that in no event shall the number of Shares that any Underwriter
has agreed to purchase pursuant to this Agreement be increased pursuant to this Section 11 by an
amount in excess of one-ninth of such number of Shares without the written consent of such
Underwriter. If, on the Closing Date, any Underwriter or Underwriters shall fail or refuse to
purchase Firm Shares and the aggregate number of Firm Shares with respect to which such default
occurs is more than one-tenth of the aggregate number of Firm Shares to be purchased, and
arrangements satisfactory to you, the Company and the Selling Shareholders for the purchase of such
Firm Shares are not made within 36 hours after such default, this Agreement shall terminate without
liability on the part of any non-defaulting Underwriter, the Company or the Selling Shareholders.
In any such case either you or the relevant Sellers shall have the right to postpone the Closing
Date, but in no event for longer than seven days, in order that the required changes, if any, in
the Registration Statement and in the Prospectus or in any other documents or arrangements may be
effected. If, on an Option Closing Date, any Underwriter or Underwriters shall fail or refuse to
purchase Additional Shares and the aggregate number of Additional Shares with respect to which such
default occurs is more than one-tenth of the aggregate number of Additional Shares to be purchased
on such Option Closing Date, the non-defaulting Underwriters shall have the option to (i) terminate
their obligation hereunder to purchase the Additional Shares to be sold on such Option Closing Date
or (ii) purchase not less than the number of Additional Shares that such non-defaulting
Underwriters would have been obligated to purchase in the absence of such default. Any action
taken under this paragraph shall not relieve any defaulting Underwriter from liability in respect
of any default of such Underwriter under this Agreement.

If this Agreement shall be terminated by the Underwriters, or any of them, because of any
failure or refusal on the part of any Seller to comply with the terms or to fulfill any of the
conditions of this Agreement, or if for any reason any Seller shall be unable to perform its
obligations under this Agreement, the Sellers will reimburse the Underwriters or such Underwriters
as have so terminated this Agreement with respect to themselves, severally, for all out-of-pocket
expenses (including the reasonable fees and disbursements of their counsel) reasonably incurred by
such Underwriters in connection with this Agreement or the offering contemplated hereunder.

12. Counterparts. This Agreement may be signed in two or more counterparts, each of which
shall be an original, with the same effect as if the signatures thereto and hereto were upon the
same instrument.

13. Applicable Law. This Agreement shall be governed by and construed in accordance with the
internal laws of the State of New York.

14. Headings. The headings of the sections of this Agreement have been inserted for
convenience of reference only and shall not be deemed a part of this Agreement.

	 	 	 
	Very truly yours,

	 	

	 
	 	 
	WELLCARE HEALTH PLANS, INC.

	 
	 	 
	By:

	 	/s/ THADDEUA BEREDAY
	
 
	 	 

	 	 	 	Name:Thaddeus Berday

Title: Senior vice President & General Counsel

	 	 	 	SOROS
PRIVATE EQUITY INVESTORS LP

	 	 	 	By:
/s/ JOHN F. Brown

	 	 	 	Name: John F. Brown

Title: Attorney-in-Fact

	 	 	 	The
Selling Shareholders named in Schedules I-B and
I-C hereto, acting severally

	 	 	 
	By:

	 	/s/ THADDEUS BEREDAY
	
 
	 	 
	
 
	 	Name:Thaddeus Bereday

Attorney-in-Fact

Accepted as of the date hereof

Morgan Stanley & Co. Incorporated

SG Cowen & Co., LLC

UBS Securities LLC

Wachovia Capital Markets, LLC

	 	 	 
	Acting severally on behalf of themselves and the

	 
	 	 
	several Underwriters named in Schedule II hereto.

	 
	 	 
	By: Morgan Stanley & Co. Incorporated

	 
	 	 
	By:

	 	/s/ WILLIAM BLAIS
	
 
	 	 

	 	 	 	Name: William Blais	 

Title: Managing Director

1

SCHEDULE I-A

	 	 	 	 	 	 	 	 	 
	Selling Shareholder
	 	Number of Shares            	 	Number of
	 
	 	To Be Sold	 	Additional Shares
	 
	 	 	 	 	 	to be Sold
	Soros Private Equity Investors LP
	 	 	5,575,055	 	 	 	1,125,000	 
	Total
	 	 	5,575,055	 	 	 	1,125,000	 

2

SCHEDULE I-B

	 	 	 	 	 
	Selling Shareholder
	 	Number of Shares
	 
	 	To Be Sold
	Randolph Street Partners V – Fourth Venture
	 	 	50,928	 
	Sorrento Investment Group LLC
	 	 	37,517	 
	Total
	 	 	88,445	 

3

SCHEDULE I-C

	 	 	 	 	 
	Selling Shareholder
	 	Number of Shares
	 
	 	To Be Sold
	Todd S. Farha
	 	 	165,000	 
	Regina Herzlinger
	 	 	10,000	 
	Kevin Hickey
	 	 	10,000	 
	Alif Hourani
	 	 	10,000	 
	Glen R. Johnson, M.D.
	 	 	4,000	 
	Ruben Jose King-Shaw, Jr.
	 	 	10,000	 
	Paul Behrens
	 	 	25,000	 
	Thaddeus Bereday
	 	 	20,000	 
	Heath Schiesser
	 	 	25,000	 
	Rupesh Shah
	 	 	50,000	 
	Randall Zomermaand
	 	 	7,500	 
	Total
	 	 	336,500	 

4

SCHEDULE II

	 	 	 	 	 
	Underwriter
	 	Number of Firm Shares To Be
	 
	 	Purchased
	Morgan Stanley & Co.

Incorporated...............
	 	 	3,750,000	 
	SG Cowen & Co., LLC
	 	 	1,250,000	 
	UBS Securities LLC
	 	 	1,250,000	 
	Wachovia Capital Markets, LLC
	 	 	1,250,000	 
	Total:
	 	 	7,500,000	 
	 
	 	 	 	 

5

EXHIBIT A

FORM OF LOCK-UP LETTER

December    , 2004

Morgan Stanley & Co. Incorporated

SG Cowen & Co., LLC

UBS Securities LLC

Wachovia Capital Markets, LLC

c/o Morgan Stanley

1585 Broadway

New York, NY 10036

Dear Sirs and Mesdames:

The undersigned understands that Morgan Stanley (“Morgan Stanley”) proposes to enter into an
Underwriting Agreement (the “Underwriting Agreement”) with WellCare Health Plans, Inc., a Delaware
corporation (the “Company”), providing for the public offering (the “Public Offering”) by the
several Underwriters, including Morgan Stanley (the “Underwriters”), of 7,500,000 shares (the
“Shares”) of the common stock, par value $.01 per share, of the Company (the “Common Stock”).

To induce the Underwriters that may participate in the Public Offering to continue their
efforts in connection with the Public Offering, the undersigned hereby agrees that, without the
prior written consent of Morgan Stanley on behalf of the Underwriters, it will not, during the
period commencing on the date hereof and ending 90 days after the date of the final prospectus
relating to the Public Offering (the “Prospectus”), (1) offer, pledge, sell, contract to sell, sell
any option or contract to purchase, purchase any option or contract to sell, grant any option,
right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly,
any shares of Common Stock or any securities convertible into or exercisable or exchangeable for
Common Stock, or (2) enter into any swap or other arrangement that transfers to another, in whole
or in part, any of the economic consequences of ownership of the Common Stock, whether any such
transaction described in clause (1) or (2) above is to be settled by delivery of Common Stock or
such other securities, in cash or otherwise. The foregoing sentence shall not apply to (a)
transactions relating to shares of Common Stock or other securities acquired in open market
transactions after the completion of the Public Offering, (b) transfers of shares of Common Stock
or any security convertible into Common Stock as a bona fide gift or gifts or in connection with
estate planning (c) distributions or transfers of shares of Common Stock or any security
convertible into Common Stock to limited partners, stockholders or controlled affiliates of the
undersigned or (d) the establishment of a trading plan pursuant to Rule 10b5-1 under the Securities
Exchange Act of 1934, as amended, provided that no sales or other transfers occur under such plan
during the restricted period referred to above in this paragraph; provided that in the case of any
transfer or distribution pursuant to clause (b) or (c) each donee, distributee or transferee shall
sign and deliver a lock-up letter substantially in the form of this letter. In addition, the
undersigned agrees that, without the prior written consent of Morgan Stanley on behalf of the
Underwriters, it will not, during the period commencing on the date hereof and ending 90 days after
the date of the Prospectus, make any demand for or exercise any right with respect to, the
registration of any shares of Common Stock or any security convertible into or exercisable or
exchangeable for Common Stock. The undersigned also agrees and consents to the entry of stop
transfer instructions with the Company’s transfer agent and registrar against the transfer of the
undersigned’s share of Common Stock except in compliance with the foregoing restrictions.

If:

(1) during the last 17 days of the 90-day restricted period the Company issues an earnings
release or material news or a material event relating to the Company occurs; or

(2) prior to the expiration of the 90-day restricted period, the Company announces that it
will release earnings results during the 16-day period beginning on the last day of the
90-day period,

the restrictions imposed by this letter shall continue to apply until the expiration of the 18-day
period beginning on the issuance of the earnings release or the occurrence of the material news or
material event.

The undersigned understands that the Company and the Underwriters are relying upon this
agreement in proceeding toward consummation of the Public Offering. The undersigned further
understands that this agreement is irrevocable and shall be binding upon the undersigned’s heirs,
legal representatives, successors and assigns.

Whether or not the Public Offering actually occurs depends on a number of factors, including
market conditions. Any Public Offering will only be made pursuant to an Underwriting Agreement,
the terms of which are subject to negotiation between the Company and the Underwriters. This
agreement shall automatically terminate if the purchase of the Firm Shares (as defined in the
Underwriting Agreement) pursuant to the Underwriting Agreement is not completed within 10 business
days of the date of the Prospectus.

6

Very truly yours,

(Name)

(Address)

7

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