Document:

Exhibit 10.46

Exhibit 10.46

EXECUTION VERSION

Published CUSIP Number:                     

SECOND AMENDED AND RESTATED

CREDIT AGREEMENT

Dated as of August 8, 2011

among

KID BRANDS, INC.,

KIDS LINE, LLC,

SASSY, INC.,

I & J HOLDCO, INC.,

LAJOBI, INC.,

and

COCALO, INC.,

as the Borrowers,

THE SUBSIDIARIES OF THE BORROWER IDENTIFIED HEREIN,

as the Guarantors,

BANK OF AMERICA, N.A.,

as Administrative Agent, Swing Line Lender and L/C Issuer,

JPMORGAN CHASE BANK, N.A.

and

WELLS FARGO BANK, N.A,

as Co-Syndication Agents

and

THE OTHER LENDERS PARTY HERETO

Arranged By:

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

as Sole Lead Arranger and Book Manager

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	1.01 Defined Terms
	 	 	2	 
	1.02 Other Interpretive Provisions
	 	 	24	 
	1.03 Accounting Terms
	 	 	24	 
	1.04 Rounding
	 	 	25	 
	1.05 Times of Day
	 	 	25	 
	1.06 Letter of Credit Amounts
	 	 	25	 
	ARTICLE II THE COMMITMENTS AND CREDIT EXTENSIONS
	 	 	26	 
	2.01 Revolving Loans
	 	 	26	 
	2.02 Borrowings, Conversions and Continuations of Loans
	 	 	27	 
	2.03 Letters of Credit
	 	 	28	 
	2.04 Swing Line Loans
	 	 	36	 
	2.05 Prepayments
	 	 	38	 
	2.06 Termination or Reduction of Aggregate Revolving Commitments
	 	 	39	 
	2.07 Repayment of Loans
	 	 	40	 
	2.08 Interest
	 	 	40	 
	2.09 Fees
	 	 	41	 
	2.10 Computation of Interest and Fees; Retroactive Adjustments of Applicable Rate
	 	 	41	 
	2.11 Evidence of Debt
	 	 	42	 
	2.12 Payments Generally; Administrative Agent’s Clawback
	 	 	42	 
	2.13 Sharing of Payments by Lenders
	 	 	44	 
	2.14 Cash Collateral
	 	 	44	 
	2.15 Defaulting Lenders
	 	 	45	 
	2.16 Parent as Agent
	 	 	47	 
	ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY
	 	 	47	 
	3.01 Taxes
	 	 	47	 
	3.02 Illegality
	 	 	50	 
	3.03 Inability to Determine Rates
	 	 	51	 
	3.04 Increased Costs
	 	 	51	 
	3.05 Compensation for Losses
	 	 	52	 
	3.06 Mitigation Obligations; Replacement of Lenders
	 	 	53	 
	3.07 Survival
	 	 	53	 
	ARTICLE IV GUARANTY
	 	 	54	 
	4.01 The Guaranty
	 	 	54	 
	4.02 Obligations Unconditional
	 	 	54	 
	4.03 Reinstatement
	 	 	55	 
	4.04 Certain Additional Waivers
	 	 	55	 
	4.05 Remedies
	 	 	55	 
	4.06 Rights of Contribution
	 	 	55	 
	4.07 Guarantee of Payment; Continuing Guarantee; Release of Guaranty
	 	 	56	 
	ARTICLE V CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
	 	 	56	 
	5.01 Conditions of Effectiveness
	 	 	56	 
	5.02 Conditions to all Credit Extensions
	 	 	58	 
	ARTICLE VI REPRESENTATIONS AND WARRANTIES
	 	 	59	 
	6.01 Organization
	 	 	59	 
	6.02 Authorization; No Conflict
	 	 	59	 
	6.03 Validity and Binding Nature
	 	 	59	 
	6.04 Financial Condition
	 	 	59	 

 

i

 

	 	 	 	 	 
	6.05 No Material Adverse Change
	 	 	60	 
	6.06 Litigation and Contingent Liabilities
	 	 	60	 
	6.07 Ownership of Properties; Liens
	 	 	60	 
	6.08 Equity Ownership; Subsidiaries
	 	 	60	 
	6.09 Pension Plans
	 	 	61	 
	6.10 Investment Company Act
	 	 	61	 
	6.11 Regulation U
	 	 	61	 
	6.12 Taxes
	 	 	62	 
	6.13 Solvency
	 	 	62	 
	6.14 Environmental Matters
	 	 	62	 
	6.15 Insurance
	 	 	63	 
	6.16 Real Property
	 	 	63	 
	6.17 Information
	 	 	63	 
	6.18 IP Rights
	 	 	64	 
	6.19 Burdensome Obligations
	 	 	64	 
	6.20 Labor Matters
	 	 	64	 
	6.21 No Default
	 	 	64	 
	6.22 Subordinated Debt
	 	 	64	 
	6.23 Deposit Accounts
	 	 	64	 
	6.24 Patriot Act
	 	 	65	 
	ARTICLE VII AFFIRMATIVE COVENANTS
	 	 	65	 
	7.01 Financial Statements
	 	 	65	 
	7.02 Certificates; Other Information
	 	 	66	 
	7.03 Notice of Default, Litigation and Other Matters
	 	 	68	 
	7.04 Books, Records and Inspections
	 	 	69	 
	7.05 Maintenance of Property; Insurance
	 	 	70	 
	7.06 Compliance with Laws; Payment of Taxes and Liabilities
	 	 	70	 
	7.07 Maintenance of Existence, Etc
	 	 	71	 
	7.08 Use of Proceeds
	 	 	71	 
	7.09 Employee Benefit Plans
	 	 	71	 
	7.10 Environmental Matters
	 	 	72	 
	7.11 Additional Guarantors
	 	 	72	 
	7.12 Preparation of Environmental Reports
	 	 	72	 
	7.13 Pledged Assets
	 	 	73	 
	7.14 Further Assurances
	 	 	73	 
	7.15 Material Contracts
	 	 	74	 
	7.16 Designation as Senior Debt
	 	 	74	 
	7.17 Deposit Accounts
	 	 	74	 
	7.18 Post-Closing Items
	 	 	74	 
	ARTICLE VIII NEGATIVE COVENANTS
	 	 	74	 
	8.01 Indebtedness
	 	 	74	 
	8.02 Liens
	 	 	76	 
	8.03 Restricted Payments
	 	 	77	 
	8.04 Mergers, Consolidations, Sales and Other Transactions Outside the Ordinary Course of Business
	 	 	78	 
	8.05 Modifications of Organization Documents
	 	 	80	 
	8.06 Transactions with Affiliates
	 	 	80	 
	8.07 Unconditional Purchase Obligations
	 	 	80	 
	8.08 Inconsistent Agreements
	 	 	80	 
	8.09 Business Activities
	 	 	81	 
	8.10 Investments
	 	 	81	 

 

ii

 

	 	 	 	 	 
	8.11 Restrictions of Amendments to Certain Documents
	 	 	82	 
	8.12 Accounting Changes; Fiscal Year
	 	 	82	 
	8.13 Financial Covenants
	 	 	82	 
	8.14 Accrual or Payment of Duty Amounts
	 	 	83	 
	8.15 Cancellation of Indebtedness
	 	 	83	 
	8.16 Activities of IP Sub
	 	 	83	 
	8.17 Inactive Subsidiaries
	 	 	83	 
	8.18 Use of Proceeds
	 	 	83	 
	ARTICLE IX EVENTS OF DEFAULT AND REMEDIES
	 	 	84	 
	9.01 Events of Default
	 	 	84	 
	9.02 Remedies Upon Event of Default
	 	 	86	 
	9.03 Application of Funds
	 	 	87	 
	ARTICLE X ADMINISTRATIVE AGENT
	 	 	88	 
	10.01 Appointment and Authority
	 	 	88	 
	10.02 Rights as a Lender
	 	 	88	 
	10.03 Exculpatory Provisions
	 	 	89	 
	10.04 Reliance by Administrative Agent
	 	 	90	 
	10.05 Delegation of Duties
	 	 	90	 
	10.06 Resignation of Administrative Agent
	 	 	90	 
	10.07 Non-Reliance on Administrative Agent and Other Lenders
	 	 	91	 
	10.08 No Other Duties; Etc
	 	 	91	 
	10.09 Administrative Agent May File Proofs of Claim
	 	 	91	 
	10.10 Collateral and Guaranty Matters
	 	 	92	 
	10.11 Swap Contracts and Treasury Management Agreements
	 	 	92	 
	ARTICLE XI MISCELLANEOUS
	 	 	93	 
	11.01 Amendments, Etc
	 	 	93	 
	11.02 Notices; Effectiveness; Electronic Communications
	 	 	94	 
	11.03 No Waiver; Cumulative Remedies; Enforcement
	 	 	96	 
	11.04 Expenses; Indemnity; and Damage Waiver
	 	 	97	 
	11.05 Payments Set Aside
	 	 	98	 
	11.06 Successors and Assigns
	 	 	99	 
	11.07 Treatment of Certain Information; Confidentiality
	 	 	102	 
	11.08 Set-off
	 	 	103	 
	11.09 Interest Rate Limitation
	 	 	104	 
	11.10 Counterparts; Integration; Effectiveness; Amendment and Restatement
	 	 	104	 
	11.11 Survival of Representations and Warranties
	 	 	104	 
	11.12 Severability
	 	 	105	 
	11.13 Replacement of Lenders
	 	 	105	 
	11.14 Governing Law; Jurisdiction; Etc
	 	 	106	 
	11.15 Waiver of Right to Trial by Jury
	 	 	106	 
	11.16 No Advisory or Fiduciary Responsibility
	 	 	107	 
	11.17 Electronic Execution of Assignments and Certain Other Documents
	 	 	107	 
	11.18 USA PATRIOT Act Notice
	 	 	107	 
	11.19 Concerning Joint and Several Liability of the Borrowers
	 	 	108	 
	11.20 Termination of Borrowers
	 	 	109	 
	11.21 Commitment Letter
	 	 	109	 

 

iii

 

SCHEDULES

	 	 	 
	1.01
	 	Existing Letters of Credit
	2.01
	 	Commitments and Applicable Percentages
	6.06
	 	Contingent Liabilities
	6.08
	 	Subsidiaries
	6.09
	 	Pension Plans
	6.12
	 	Taxes
	6.14
	 	Environmental Matters
	6.15
	 	Insurance
	6.16
	 	Locations of Real Property
	6.18
	 	IP Rights
	6.20
	 	Labor Matters
	6.23
	 	Deposit Accounts
	8.01
	 	Indebtedness Existing on the Closing Date
	8.02
	 	Liens Existing on the Closing Date
	8.10
	 	Investments Existing on the Closing Date
	11.02
	 	Certain Addresses for Notices

EXHIBITS

	 	 	 
	2.02
	 	Form of Loan Notice
	2.04
	 	Form of Swing Line Loan Notice
	2.11(a)
	 	Form of Note
	7.02
	 	Form of Compliance Certificate
	7.11
	 	Form of Joinder Agreement
	11.06(b)
	 	Form of Assignment and Assumption
	11.06(b)(iv)
	 	Form of Administrative Questionnaire

 

iv

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

This SECOND AMENDED AND RESTATED CREDIT AGREEMENT is entered into as of August 8, 2011, among
Kid Brands, Inc., a New Jersey corporation (the “Parent”), Kids Line, LLC, a Delaware
limited liability company (“Kids Line”), Sassy, Inc., an Illinois corporation
(“Sassy”), I & J Holdco, Inc., a Delaware corporation (“I & J”), LaJobi, Inc., a
Delaware corporation (“LaJobi”) and CoCaLo, Inc., a California corporation
(“CoCaLo” and collectively with the Parent, Kids Line, Sassy, I & J, LaJobi, CoCaLo and
such other designated subsidiary borrowers from time to time, the “Borrowers” and each a
“Borrower”), the Guarantors (defined herein), the Lenders (defined herein) and BANK OF
AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

(A) Kids Line, Sassy, LaJobi, I & J and CoCaLo (the “Existing Borrowers”) and certain
other parties are party to an Amended and Restated Credit Agreement dated as of April 2, 2008 (as
amended, supplemented or otherwise modified by that certain First Amendment to Credit Agreement
dated as of August 13, 2008, that certain Second Amendment to Credit Agreement dated as of March
20, 2009 and that certain Third Amendment to Credit Agreement dated as of March 30, 2011, the
“Existing Credit Agreement”) with the lenders party thereto and Bank of America, N.A., as
successor by merger to LaSalle Bank National Association, as administrative agent.

(B) Bank of America, N.A. (successor by merger to LaSalle Bank National Association),
Sovereign Bank, Wells Fargo Bank, National Association (successor by merger to Wachovia Bank,
N.A.), J.P. Morgan Chase Bank, N.A., TD Banknorth, N.A., HSBC Bank USA, N.A., Citizens Bank of
Pennsylvania and Bank of the West are the only lenders party to the Existing Credit Agreement.

(C) The parties to this Agreement desire to amend the Existing Credit Agreement (and the
existing Master Letter of Credit Agreement (as defined therein)) as set forth herein and to restate
the Existing Credit Agreement and said Master Letter of Credit Agreement in their entireties to
read as follows. This Agreement is not a novation of the Existing Credit Agreement or said Master
Letter of Credit Agreement.

(D) Simultaneously with the Closing Date (defined herein), the parties to this Agreement
hereby agree that the Commitments of each of the Lenders shall be as set forth in Schedule
2.01, and the outstanding amount of the Loans under and as defined in the Existing Credit
Agreement (without giving effect to any further Borrowings under this Agreement on the Closing
Date) shall be reallocated in accordance with such Commitments, and the requisite assignments shall
be deemed to be made in such amounts among the Lenders and from each Lender to each other Lender,
with the same force and effect as if each such assignment was evidenced by an Assignment and
Assumption (as defined in the Existing Credit Agreement) under the Existing Credit Agreement, but
without the payment of any related assignment fee.

 

 

 

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

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

1.01 Defined Terms.

As used in this Agreement, the following terms shall have the meanings set forth below:

“Account Control Agreement” means a bank agency or other similar agreement with the
Administrative Agent, the applicable Loan Party and any financial institution at which such Loan
Party maintains a depositary or other account (other than Excluded Accounts) in form and substance
reasonably satisfactory to the Administrative Agent, in order to give the Administrative Agent
“control” (as defined in the UCC) of such account.

“Acquired Debt” means mortgage Indebtedness or Indebtedness with respect to Capital
Leases of a Person existing at the time such Person became a Subsidiary or assumed by any Loan
Party or a Domestic Wholly-Owned Subsidiary of a Loan Party pursuant to a Permitted Acquisition
(and not created or incurred in connection with or in anticipation of such Permitted Acquisition).

“Acquisition” means any transaction or series of related transactions for the purpose
of or resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the
assets of a Person, or of all or substantially all of any business or division of a Person, (b) the
acquisition of all of the outstanding Equity Interests (including the acquisition or termination of
any rights, warrants or options to acquire the Equity Interests) of any Person, or otherwise
causing any Person to become a Wholly-Owned Subsidiary, or (c) a merger or consolidation or any
other combination with another Person (other than a Person that is already a Wholly-Owned
Subsidiary).

“Acquisition Agreement” means that certain Asset Purchase Agreement dated as of April
1, 2008 among LaJobi, as buyer, LaJobi Industries, as seller, and Lawrence and Joseph Bivona, as
shareholders, pursuant to which LaJobi purchased substantially all of the assets of the LaJobi
Industries upon the terms and conditions set forth therein (as such agreement is in effect on the
Closing Date and without giving effect to any amendment or other modification thereof after such
date, except to the extent permitted by Section 8.11 hereof).

“Acquisition Documents” means the Acquisition Agreement and all other agreements or
instruments executed in connection with the LaJobi Acquisition (in each case, as in effect on the
Closing Date and without giving effect to any amendment or other modification thereof after such
date, except to the extent permitted by Section 8.11 hereof).

“Administrative Agent” means Bank of America in its capacity as administrative agent
under any of the Loan Documents, or any successor administrative agent.

“Administrative Agent’s Office” means the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 11.02 or such other address or account as the
Administrative Agent may from time to time notify to the Parent and the Lenders.

“Administrative Questionnaire” means an Administrative Questionnaire in substantially
the form of Exhibit 11.06(b)(iv) or any other form approved by the Administrative Agent.

“Affiliate” means, with respect to any Person, another Person that directly, or
indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

“Aggregate Revolving Commitments” means the Revolving Commitments of all the Lenders.
The initial amount of the Aggregate Revolving Commitments in effect on the Closing Date is
$175,000,000.

“Agreement” means this Second Amended and Restated Credit Agreement.

 

2

 

“Applicable Percentage” means with respect to any Lender at any time, the percentage
(carried out to the ninth decimal place) of the Aggregate Revolving Commitments represented by such
Lender’s Revolving Commitment at such time; provided that if the commitment of each Lender
to make Revolving Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have
been terminated pursuant to Section 9.02 or if the Aggregate Revolving Commitments have
expired, then the Applicable Percentage of each Lender shall be determined based on the Applicable
Percentage of such Lender most recently in effect, giving effect to any subsequent assignments.
The initial Applicable Percentage of each Lender is set forth opposite the name of such Lender on
Schedule 2.01 or in the Assignment and Assumption or other agreement pursuant to which such
Lender becomes a party hereto, as applicable. The Applicable Percentages shall be subject to
adjustment as provided in Section 2.15.

“Applicable Rate” means the following percentages per annum, based upon the
Consolidated Leverage Ratio as set forth in the most recent Compliance Certificate received by the
Administrative Agent pursuant to Section 7.02(a):

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Consolidated	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pricing 	 	Leverage	 	 	 	 	 	 	Letters of	 	 	 	 	 	 	 
	Tier	 	Ratio	 	 	Commitment Fee	 	 	Credit	 	 	Eurodollar Rate Loans	 	 	Base Rate Loans	 
	I
	 	 	> 2.75	 	 	 	0.45	%	 	 	2.75	%	 	 	2.75	%	 	 	1.75	%
	II
	 	> 2.25 but < 2.75	 	 	 	0.40	%	 	 	2.25	%	 	 	2.25	%	 	 	1.25	%
	III
	 	> 1.50 but < 2.25	 	 	 	0.35	%	 	 	2.00	%	 	 	2.00	%	 	 	1.00	%
	IV
	 	 	< 1.50	 	 	 	0.30	%	 	 	1.75	%	 	 	1.75	%	 	 	0.75	%

Any increase or decrease in the Applicable Rate resulting from a change in the Consolidated
Leverage Ratio shall become effective as of the first Business Day immediately following the date a
Compliance Certificate is delivered pursuant to Section 7.02(a); provided,
however, that if a Compliance Certificate is not delivered when due in accordance with such
Section, then, upon the request of the Required Lenders, the Applicable Rate shall be one Pricing
Tier higher then the Pricing Tier then currently in effect (i.e., a higher Pricing Tier reflects a
higher Applicable Rate) shall apply as of the first Business Day after the date on which such
Compliance Certificate was required to have been delivered and shall remain in effect until the
date on which such Compliance Certificate is delivered in accordance with Section 7.02(a),
whereupon the Applicable Rate shall be adjusted based upon the calculation of the Consolidated
Leverage Ratio contained in such Compliance Certificate. The Applicable Rate in effect from the
Closing Date through the first Business Day immediately following the date a Compliance Certificate
is required to be delivered pursuant to Section 7.02(a) for the fiscal quarter ending
September 30, 2011 shall be determined based upon Pricing Tier I.

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

“Arranger” means Merrill Lynch, Pierce, Fenner & Smith Incorporated, in its capacity
as sole lead arranger and book manager.

“Assignee Group” means two or more Eligible Assignees that are Affiliates of one
another or two or more Approved Funds managed by the same investment advisor.

“Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section
11.06(b)), and accepted by the Administrative Agent, in substantially the form of Exhibit
11.06(b) or any other form approved by the Administrative Agent.

 

3

 

“Availability Period” means, with respect to the Revolving Commitments, the period
from and including the Closing Date to the earliest of (a) the Maturity Date, (b) the date of
termination of the Aggregate Revolving Commitments pursuant to Section 2.06, and (c) the
date of termination of the commitment of each Lender to make Loans and of the obligation of the L/C
Issuer to make L/C Credit Extensions pursuant to Section 9.02.

“Bank of America” means Bank of America, N.A. and its successors.

“Base Rate” means for any day a fluctuating rate per annum equal to the highest of (a)
the Federal Funds Rate plus 0.50%, (b) the rate of interest in effect for such day as
publicly announced from time to time by Bank of America as its “prime rate” and (c) the Eurodollar
Base Rate plus 1.0%. The “prime rate” is a rate set by Bank of America based upon various
factors including Bank of America’s costs and desired return, general economic conditions and other
factors, and is used as a reference point for pricing some loans, which may be priced at, above, or
below such announced rate. Any change in such “prime rate” announced by Bank of America shall take
effect at the opening of business on the day specified in the public announcement of such change.

“Base Rate Loan” means a Loan that bears interest based on the Base Rate.

“Board of Directors” means, with respect to the Parent, the board of directors of the
Parent or any committee thereof duly authorized to act on behalf of the board of directors.

“Borrower” and “Borrowers” have the meanings specified in the introductory
paragraph hereto.

“Borrower Materials” has the meaning specified in Section 7.02.

“Borrowing” means a borrowing by one or more Borrowers consisting of simultaneous
Loans of the same Type and, in the case of Eurodollar Rate Loans, having the same Interest Period
made by each of the Lenders pursuant to Section 2.01.

“Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact closed in, the state
where the Administrative Agent’s Office is located and, if such day relates to any Eurodollar Rate
Loan or any Base Rate Loan bearing interest at a rate based on the Eurodollar Base Rate, means any
such day that is also a London Banking Day.

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

“Cash Collateralize” means to pledge and deposit with or deliver to the Administrative
Agent, for the benefit of the Administrative Agent, the L/C Issuer or the Swing Line Lender (as
applicable) and the Lenders, as collateral for L/C Obligations, Obligations in respect of Swing
Line Loans, or obligations of Lenders to fund participations in respect of either thereof (as the
context may require), cash or deposit account balances or, if the L/C Issuer or the Swing Line
Lender benefitting from such collateral shall agree in its sole discretion, other credit support,
in each case pursuant to documentation in form and substance reasonably satisfactory to (a) the
Administrative Agent and (b) the L/C Issuer or the Swing Line Lender (as applicable). “Cash
Collateral” shall have a meaning correlative to the foregoing and shall include the proceeds of
such cash collateral and other credit support.

 

4

 

“Cash Equivalents” means, at any time, (a) any evidence of Indebtedness, maturing not
more than one year after such time, issued or guaranteed by the United States Government or any
agency thereof, (b) commercial paper, maturing not more than one year from the date of issue, or
corporate demand notes, in each case (unless issued by a Lender, its Affiliate or its holding
company) rated at least A-2 by S&P or P-2 by Moody’s, (c) any certificate of deposit, time deposit
or banker’s acceptance, maturing not more than one year after such time, or any overnight Federal
Funds transaction that is issued or sold by any Lender or its holding company (or by a commercial
banking institution that is a member of the Federal Reserve System and has a combined capital and
surplus and undivided profits of not less than $250,000,000), (d) any repurchase agreement entered
into with any Lender (or commercial banking institution of the nature referred to in clause
(c)) which (i) is secured by a fully perfected security interest in any obligation of the type
described in any of clauses (a) through (c) above and (ii) has a market value at
the time such repurchase agreement is entered into of not less than 100% of the repurchase
obligation of such Lender (or other commercial banking institution) thereunder and (e) money market
accounts or mutual funds in which 90% or more of the assets invested satisfy the foregoing
requirements, (f) with respect to any Foreign Subsidiary, (i) investments of the type and maturity
described in the foregoing subdivisions (a) through (e) of foreign obligors, which Investments or
obligors (or the parents of such obligors) have ratings described in such clauses or equivalent
ratings from comparable foreign rating agencies or (ii) shares of money market funds or similar
funds which invest in assets otherwise satisfying the requirements of this definition and (g) other
short term liquid investments approved in writing by the Administrative Agent.

“Change in Law” means the occurrence, after the Closing Date, of any of the following:
(a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any
law, rule, regulation or treaty or in the administration, interpretation, implementation or
application thereof by any Governmental Authority or (c) the making or issuance of any request,
rule, guideline or directive (whether or not having the force of law) by any Governmental
Authority; provided that notwithstanding anything herein to the contrary, (x) the
Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or
directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or
directives promulgated by the Bank for International Settlements, the Basel Committee on Banking
Supervision (or any successor or similar authority) or the United States regulatory authorities, in
each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless
of the date enacted, adopted or issued.

“Change of Control” means each occurrence of any of the following:

(a) any “person” or “group” (within the meaning of Sections 13(d) and 14(d) of the
Exchange Act), other than Permitted Holders, becomes the beneficial owner (as defined in
Rule 13d-3 of the Exchange Act), directly or indirectly, of a majority of the Voting Stock,

(b) a majority of the members of the Board of Directors do not constitute Continuing
Directors,

(c) the common stock of the Parent ceases to be listed and traded on a national stock
exchange,

(d) the Parent ceases to own and control, directly or indirectly, 100% of the Equity
Interests of the other Loan Parties, unless otherwise permitted hereunder,

(e) any Borrower ceases to own and control, directly or indirectly, 100% of the Equity
Interests of any Loan Party which is its Subsidiary, unless otherwise permitted hereunder,
or

 

5

 

(f) the Parent (i) consolidates with or merges with or into another entity (other than
a Loan Party that is a Domestic Wholly-Owned Subsidiary) and is not the surviving entity or
(ii) conveys, transfers or leases all or substantially all of its property and assets to any
Person (other than a Loan Party that is a Domestic Wholly-Owned Subsidiary).

“Closing Date” means August 8, 2011.

“CoCaLo” has the meaning specified in the introductory paragraph hereto.

“Collateral” means a collective reference to all real and personal property with
respect to which Liens in favor of the Administrative Agent, for the benefit of itself and the
Lenders, are purported to be granted pursuant to and in accordance with the terms of the Collateral
Documents.

“Collateral Documents” means a collective reference to the Security Agreement, the
Mortgages, the Account Control Agreements and other security documents as may be executed and
delivered by the Loan Parties pursuant to the terms of Section 7.14 or any of the Loan
Documents.

“Commitment” means, as to each Lender, the Revolving Commitment of such Lender.

“Compliance Certificate” means a certificate substantially in the form of Exhibit
7.02.

“Consolidated Capital Expenditures” means, with respect to the Parent and its
Subsidiaries on a consolidated basis, all expenditures which, in accordance with GAAP, would be
required to be capitalized and shown on the consolidated balance sheet of the Parent, including
expenditures in respect of Capital Leases but excluding such expenditures to the extent
constituting the reinvestment of sale or insurance proceeds arising from a sale (permitted
hereunder) or casualty loss of a capital asset in replacement capital assets having the same or
substantially similar use as the affected capital asset.

“Consolidated EBITDA” means, with respect to the Parent and its consolidated
Subsidiaries, for any period (or portion thereof), the following amount as calculated on a
consolidated basis for the Parent and its consolidated Subsidiaries for such period (or such
portion thereof): (A) Consolidated Net Income for such period (as adjusted as set forth below where
applicable), plus (minus) (B) to the extent deducted (added) in determining such
Consolidated Net Income, (i) Consolidated Interest Expense, (ii) income tax expense, (iii)
depreciation, (iv) amortization, (v) other non-cash charges (gains), (vi) if expensed, reasonable
costs, expenses and fees incurred in connection with the negotiation, execution and delivery of the
Loan Documents and the financings contemplated thereby, (vii) non-cash transaction losses (gains)
due solely to fluctuations in currency values, in each case, during such period, and (viii) if
accrued or expensed during or after the Fiscal Quarter ending December 31, 2010 (or in any prior
period to the extent a restatement is required), (a) the amount of all Duty Amounts so accrued or
expensed, (b) the amount of Earnout Consideration, if any, paid by LaJobi under or in respect of
the Acquisition Agreement, to the extent that such Earnout Consideration is paid in accordance with
the terms of this Agreement and (c) fees and expenses incurred by the Loan Parties in connection
with the Loan Parties’ and any Governmental Authority’s investigation of the Duty Amounts and Duty
Events, in an aggregate amount under clauses (a), (b) and (c) not to exceed the sum, for all
periods, of (x) $14,855,000 less (y) the amount of Earnout Consideration, if any, paid by LaJobi
under the Acquisition Agreement, to the extent that such Earnout Consideration was not paid in
accordance with the terms of this Agreement and/or to the extent not deducted in determining
Consolidated Net Income.

 

6

 

“Consolidated Fixed Charge Coverage Ratio” means, as of any date of determination, the
ratio of (a) Consolidated EBITDA for the most recently completed four Fiscal Quarters minus
the sum of (i) all unfinanced Consolidated Capital Expenditures incurred during such period, (ii)
all cash taxes paid by the
Parent on behalf of itself and its consolidated Subsidiaries during such period, and (iii) all
cash dividends paid by the Parent during such period, to (b) the sum for such period for the Parent
and its consolidated Subsidiaries on a consolidated basis of all scheduled interest and principal
payments of Indebtedness, including the principal component of any Capital Lease (in each case,
whether or not in fact paid during such period), paid (or which should have been paid) in cash.

“Consolidated Indebtedness” means the outstanding principal amount of all Indebtedness
(including Indebtedness of Capital Leases plus undrawn face amount of all Letters of Credit) of the
Parent and its Subsidiaries on a consolidated basis.

“Consolidated Interest Expense” means for any period the consolidated interest expense
of the Parent and its consolidated Subsidiaries, on a consolidated basis, for such period
(including all imputed interest on Capital Leases).

“Consolidated Leverage Ratio” means, as of any date of determination, the ratio of (a)
Consolidated Indebtedness as of such date to (b) Consolidated EBITDA for the most recently
completed four Fiscal Quarters; provided that for purposes of this calculation, if Consolidated
EBITDA for any such period is equal to or less than zero, Consolidated EBITDA shall be deemed to be
$0.001.

“Consolidated Net Income” means, with respect to the Parent and its consolidated
Subsidiaries, on a consolidated basis, for any period, the net income (or loss) of the Parent and
its consolidated Subsidiaries for such period, in each case, determined in accordance with GAAP,
but excluding (a) any extraordinary after tax gains and losses, (b) any non-recurring gains or
losses, (c) any non-cash gains or losses from Dispositions (other than the write-down of current
assets), (d) any non-cash restructuring charges, (e) any tax refunds, and (f) net operating losses
or other net tax benefits and any after tax gains and losses from discontinued operations.

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

 

7

 

“Continuing Director” means (a) any member of the Board of Directors who was a
director of the Parent on the Closing Date, and (b) any individual who becomes a member of the
Board of Directors after the Closing Date if such individual was appointed or nominated for
election to the Board of Directors by a majority of the Continuing Directors.

“Contractual Obligation” means, as to any Person, any provision of any security issued
by such Person or of any agreement, instrument or other undertaking to which such Person is a party
or by which it or any of its property is bound.

“Contractual Redemption” means a redemption or repurchase required pursuant to a
contractual requirement to make such redemption or repurchase which is either in effect as of the
Closing Date or which is entered into thereafter in accordance with the ordinary course of the
Parent’s business.

“Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto. Without limiting the generality of the foregoing, a Person
shall be deemed to be Controlled by another Person if such other Person possesses, directly or
indirectly, power to vote 10% or more of the Voting Stock issued by such Person.

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

“Credit Extension” means each of the following: (a) a Borrowing and (b) an L/C Credit
Extension.

“Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium,
rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the
United States or other applicable jurisdictions from time to time in effect and affecting the
rights of creditors generally.

“Default” means any event or condition that constitutes an Event of Default or that,
with the giving of any notice, the passage of time, or both, would be an Event of Default.

“Default Rate” means (a) when used with respect to Obligations other than Letter of
Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate, if
any, applicable to Base Rate Loans plus (iii) 2% per annum; provided,
however, that with respect to a Eurodollar Rate Loan, the Default Rate shall be an interest
rate equal to the interest rate (including any Applicable Rate) otherwise applicable to such Loan
plus 2% per annum, in each case to the fullest extent permitted by applicable Laws and (b) when
used with respect to Letter of Credit Fees, a rate equal to the Applicable Rate plus 2% per
annum.

 

8

 

“Defaulting Lender” means, subject to Section 2.15(b), any Lender that, as
determined by the Administrative Agent, (a) has failed to perform any of its funding obligations
hereunder, including in respect of its Loans or participations in respect of Letters of Credit or
Swing Line Loans, within three Business Days of the date required to be funded by it hereunder, (b)
has notified the Parent or the Administrative Agent that it does not intend to comply with its
funding obligations or has made a public statement to that effect with respect to its funding
obligations hereunder or under other agreements in
which it commits to extend credit, (c) has failed, within three Business Days after request by
the Administrative Agent, to confirm in a manner satisfactory to the Administrative Agent that it
will comply with its funding obligations, or (d) has, or has a direct or indirect parent company
that has, (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had a receiver,
conservator, trustee, administrator, assignee for the benefit of creditors or similar Person
charged with reorganization or liquidation of its business or a custodian appointed for it, or
(iii) taken any action in furtherance of, or indicated its consent to, approval of or acquiescence
in any such proceeding or appointment; provided that a Lender shall not be a Defaulting
Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or
any direct or indirect parent company thereof by a Governmental Authority.

“Disposition” or “Dispose” by any Person means the sale, lease, assignment or
other transfer for value by such Person of any asset or right of such Person (excluding, the loss,
destruction or damage of any thereof or any actual condemnation, confiscation, requisition, seizure
or taking thereof).

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

“Domestic Subsidiary” means any Subsidiary that is organized under the laws of the
United States, any state of the United States or the District of Columbia.

“Domestic Wholly-Owned Subsidiary” means any Wholly-Owned Subsidiary that is a
Domestic Subsidiary. Unless the context otherwise requires, each reference to a Domestic
Wholly-Owned Subsidiary herein shall be a reference to a Domestic Wholly-Owned Subsidiary of the
Parent.

“Duty Amounts” means all customs duties, interest, penalties and any other amounts
payable or owed to U.S. Customs and Border Protection by LaJobi, to the extent that such customs
duties, interest, penalties and other amounts relate to the Duty Events.

“Duty Conclusion Date” means the date on which Administrative Agent receives, in a
form and substance reasonably satisfactory to it, a written certificate of the Parent certifying
that (a) all Duty Amounts owing to U.S. Customs and Border Protection by LaJobi with respect to the
Duty Events have been paid in full and (b) no Default then exists, with the following attachments
thereto: (1) evidence of payment of the Duty Amounts and (2) evidence reasonably satisfactory to
the Administrative Agent that either (x) U.S. Customs and Border Protection has issued a final
audit report with respect to the Duty Events, or (y) U.S. Customs and Border Protection has
completed a “focused assessment” with respect to the Duty Events.

“Duty Events” means (i) the nonpayment or incorrect payment by LaJobi of import duties
to U.S. Customs and Border Protection on certain wooden furniture imported by LaJobi from vendors
in China, resulting in a violation prior to March 30, 2011 of anti-dumping regulations, and the
related misconduct on the part of certain LaJobi employees, including the misidentification of the
manufacturer and shipper of such products and (ii) LaJobi’s business and staffing practices in Asia
prior to March 30, 2011 relating thereto.

“Earnout Consideration” means the “Earnout Consideration” as defined in the
Acquisition Agreement.

 

9

 

“Earnout Consideration Conditions Precedent” means, with respect to any proposed
payment of any Earnout Consideration (including, without limitation, under or pursuant to any
guaranty thereof), that both before and immediately after giving effect to any such payment, (i) no
Default then exists or would result therefrom, (ii) no violation of the covenants set forth in
Sections 8.13 or 8.14 would then exist or would, on a Pro Forma Basis result
therefrom, as such are certified in writing by the chief financial officer
of the Parent delivered to the Administrative Agent setting forth the calculations of such
financial covenants (after giving effect to such payments) in detail reasonably acceptable to the
Administrative Agent and which calculations are confirmed and approved by the Administrative Agent
and (iii) if the Duty Conclusion Date has not yet occurred, the Consolidated Leverage Ratio (as so
calculated on a Pro Forma Basis) is at least 0.25 to 1.0 less than the maximum then permitted by
Section 8.13 for the applicable period.

“Earnout Default” has the meaning specified in Section 9.01(m).

“Earnout Payment Date” has the meaning specified in Section 9.01(m).

“Eligible Assignee” means any Person that meets the requirements to be an assignee
under Sections 11.06(b)(iii) and (v) (subject to such consents, if any, as may be
required under Section 11.06(b)(iii)).

“Environmental Claims” means all claims, however asserted, by any Governmental
Authority or other Person alleging potential liability or responsibility for violation of any
Environmental Law, or for release or injury to the environment.

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

“Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of any
Loan Party or any Subsidiary directly or indirectly resulting from or based upon (a) violation of
any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or
threatened release of any Hazardous Materials into the environment or (e) any contract, agreement
or other consensual arrangement pursuant to which liability is assumed or imposed with respect to
any of the foregoing.

“Equity Interests” means, with respect to any Person, all of the shares of capital
stock of (or other ownership or profit interests in) such Person, all of the warrants, options or
other rights for the purchase or acquisition from such Person of shares of capital stock of (or
other ownership or profit interests in) such Person, all of the securities convertible into or
exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person
or warrants, rights or options for the purchase or acquisition from such Person of such shares (or
such other interests), and all of the other ownership or profit interests in such Person (including
partnership, member or trust interests therein), whether voting or nonvoting, and whether or not
such shares, warrants, options, rights or other interests are outstanding on any date of
determination.

 

10

 

“ERISA” means the Employee Retirement Income Security Act of 1974.

“Eurodollar Base Rate” means:

(a) for any Interest Period with respect to a Eurodollar Rate Loan, the rate per annum
equal to (i) the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published
by Reuters (or such other commercially available source providing quotations of BBA LIBOR as
may be designated by the Administrative Agent from time to time) at approximately 11:00
a.m., London time, two London Banking Days prior to the commencement of such Interest
Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a
term equivalent to such Interest Period or (ii) if such published rate is not available at
such time for any reason, the rate determined by the Administrative Agent to be the rate at
which deposits in Dollars for delivery on the first day of such Interest Period in same day
funds in the approximate amount of the Eurodollar Rate Loan being made, continued or
converted and with a term equivalent to such Interest Period would be offered by Bank of
America’s London Branch to major banks in the London interbank eurodollar market at their
request at approximately 11:00 a.m. (London time) two London Banking Days prior to the
commencement of such Interest Period; and

(b) for any interest calculation with respect to a Base Rate Loan on any date, the rate
per annum equal to (i) BBA LIBOR, at approximately 11:00 a.m., London time determined two
London Banking Days prior to such date for Dollar deposits being delivered in the London
interbank market for a term of one month commencing that day or (ii) if such published rate
is not available at such time for any reason, the rate per annum determined by the
Administrative Agent to be the rate at which deposits in Dollars for delivery on the date of
determination in same day funds in the approximate amount of the Base Rate Loan being made
or maintained and with a term equal to one month would be offered by Bank of America’s
London Branch to major banks in the London interbank Eurodollar market at their request at
the date and time of determination.

“Eurodollar Rate” means for any Interest Period with respect to any Eurodollar Rate
Loan, a rate per annum determined by the Administrative Agent to be equal to the quotient obtained
by dividing (a) the Eurodollar Base Rate for such Eurodollar Rate Loan for such Interest Period by
(b) one minus the Eurodollar Reserve Percentage for such Eurodollar Rate Loan for such
Interest Period.

“Eurodollar Rate Loan” means a Loan that bears interest at a rate based on clause (a)
of the definition of “Eurodollar Base Rate.”

“Eurodollar Reserve Percentage” means, for any day, the reserve percentage (expressed
as a decimal, carried out to five decimal places) in effect on such day, whether or not applicable
to any Lender, under regulations issued from time to time by the FRB for determining the maximum
reserve requirement (including any emergency, supplemental or other marginal reserve requirement)
with respect to Eurocurrency funding (currently referred to as “Eurocurrency liabilities”). The
Eurodollar Rate for each outstanding Eurodollar Rate Loan shall be adjusted automatically as of the
effective date of any change in the Eurodollar Reserve Percentage.

“Event of Default” has the meaning specified in Section 9.01.

“Excess Revolving Loan Availability” means at any time the difference between the
Aggregate Revolving Commitments and the Total Revolving Outstandings at such time.

“Exchange Act” means the Securities Exchange Act of 1934.

 

11

 

“Excluded Accounts” has the meaning specified in Section 7.17.

“Excluded Property” means, with respect to any Loan Party, (a) any real property which
is located outside of the United States or which has an appraised value of less than $2,000,000,
(b) unless
requested by the Administrative Agent or the Required Lenders, any leased real property, (c)
unless requested by the Administrative Agent or the Required Lenders, any IP Rights for which a
perfected Lien thereon is not effected either by filing of a UCC financing statement or by
appropriate evidence of such Lien being filed in either the United States Copyright Office or the
United States Patent and Trademark Office, (d) unless requested by the Administrative Agent or the
Required Lenders, any personal property (other than personal property described in clause (c)
above) for which the attachment or perfection of a Lien thereon is not governed by the UCC, (e) the
Equity Interests of any direct Foreign Subsidiary of any Loan Party to the extent not required to
be pledged to secure the Obligations pursuant to Section 7.13(a) and (f) any property
which, subject to the terms of Section 8.08, is subject to a Lien of the type described in
Section 8.02(d) pursuant to documents which prohibit such Loan Party from granting any
other Liens in such property.

“Excluded Taxes” means, with respect to the Administrative Agent, any Lender or the
L/C Issuer (or a branch thereof), or any other recipient of any payment to be made by or on account
of any obligation of a Borrower hereunder, (a) taxes imposed on or measured by its overall net
income (however denominated), and franchise taxes imposed on it (in lieu of net income taxes), (i)
by a taxing authority in the United States or a jurisdiction (or any political subdivision
thereof) under the Laws of which such recipient is organized or in which its principal office is
located or, in the case of any Lender, in which its applicable Lending Office is located or (ii) as
a result of a present or former connection between such recipient and the jurisdiction imposing
such tax (other than connections arising from such recipient having executed, delivered, become a
party to, performed its obligations under, received payments under, received or perfected a
security interest under, engaged in any other transaction pursuant to or enforced any Loan
Document, or sold or assigned an interest in any Loan or Loan Document), (b) any branch profits
taxes imposed by the United States or any similar tax imposed by any other jurisdiction in which
such Borrower is located (c) any backup withholding tax that is required by the Internal Revenue
Code to be withheld from amounts payable to a Lender that is not a Foreign Lender, (d) any taxes
imposed on any “withholdable payment” payable to such recipient as a result of the failure of such
recipient to satisfy the applicable requirements as set forth in FATCA to establish that such
payment is exempt from withholding under FATCA and (e) in the case of a Foreign Lender (other than
an assignee pursuant to a request by the Parent under Section 11.13), any withholding tax
that (i) is imposed on amounts payable to such Foreign Lender pursuant to the Laws in force at the
time such Foreign Lender becomes a party hereto (or designates a new Lending Office) or (ii) is
attributable to such Foreign Lender’s failure or inability (other than as a result of a Change in
Law) to comply with clause (B) of Section 3.01(e)(ii), except to the extent that such
Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new Lending
Office (or assignment), to receive additional amounts from such Borrower with respect to such
withholding tax pursuant to Section 3.01(a)(ii) or (c).

“Existing Credit Agreement” has the meaning specified in the recitals hereto.

“Existing Letters of Credit” means those letters of credit identified on Schedule
1.01.

“FASB ASC” means the Accounting Standards Codification of the Financial Accounting
Standards Board.

“FATCA” means Sections 1471 through 1474 of the Internal Revenue Code and any
regulations promulgated thereunder or official interpretations thereof.

 

12

 

“Federal Funds Rate” means, for any day, the rate per annum equal to the weighted
average of the rates on overnight federal funds transactions with members of the Federal Reserve
System arranged by federal funds brokers on such day, as published by the Federal Reserve Bank of
New York on the Business Day next succeeding such day; provided that (a) if such day is not
a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the
next preceding Business Day as so
published on the next succeeding Business Day, and (b) if no such rate is so published on such
next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate
(rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Bank of America on
such day on such transactions as determined by the Administrative Agent.

“Fee Letter” means the letter agreement, dated June 21, 2011 among the Parent, the
Administrative Agent and the Arranger.

“First-Tier Foreign Subsidiary” means, any direct Foreign Subsidiary of a Loan Party
or Subsidiary organized under the laws of the United States.

“Fiscal Quarter” means a fiscal quarter of a Fiscal Year.

“Fiscal Year” means the fiscal year of the Parent and its consolidated Subsidiaries,
which period shall be the 12-month period ending on December 31st of each calendar year.
References to a Fiscal Year with a number corresponding to any calendar year (e.g., “Fiscal
Year 2011”) refer to the Fiscal Year ending on December 31st of such calendar year.

“Foreign Lender” means any Lender that is not a “United States person” within the
meaning of Section 7701(a)(30) of the Internal Revenue Code.

“Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.

“FRB” means the Board of Governors of the Federal Reserve System of the United States.

“Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect
to the L/C Issuer, such Defaulting Lender’s Applicable Percentage of the outstanding L/C
Obligations other than L/C Obligations as to which such Defaulting Lender’s participation
obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the
terms hereof, and (b) with respect to the Swing Line Lender, such Defaulting Lender’s Applicable
Percentage of Swing Line Loans other than Swing Line Loans as to which such Defaulting Lender’s
participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance
with the terms hereof.

“Fully Satisfied” means, with respect to the Obligations, as of any date, that, as of
such date, (a) all principal and interest accrued to such date which constitute Obligations arising
under the Loan Documents shall have been paid in full in cash, (b) all fees, expenses and other
amounts then due and payable which constitute Obligations arising under the Loan Documents shall
have been paid in full in cash (other than contingent indemnification obligations for which no
claim has been asserted), (c) all outstanding Letters of Credit shall have been (i) terminated or
shall have expired, (ii) Cash Collateralized or (iii) made subject to other arrangements reasonably
satisfactory to the Administrative Agent and the L/C Issuer, (d) if a holder of Obligations under
Swap Contracts has provided prior written notice to the Administrative Agent thereof, all amounts
then due and payable (or which will be due and payable following notice or expiration of any grace
period) shall have been paid in full in cash or made subject to other arrangements reasonably
satisfactory to such holder, (e) if a holder of Obligations under Treasury Management Agreements
has provided prior written notice to the Administrative Agent thereof, all amounts then due and
payable (or which will be due and payable following notice or expiration of any grace period) shall
have been paid in full in cash or made subject to other arrangements reasonably satisfactory to
such holder and (f) the Commitments shall have expired or been terminated in full.

 

13

 

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

“GAAP” means generally accepted accounting principles in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board, consistently applied and as in effect from time to time.

“Governmental Authority” means the government of the United States or any other
nation, or of any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government (including any supra-national bodies such as the European Union or the European Central
Bank).

“Guarantors” means (a) each Domestic Subsidiary of the Parent identified as a
“Guarantor” on the signature pages hereto, (b) each other Person that joins as a Guarantor pursuant
to Section 7.11 or otherwise, (c) with respect to obligations under any Swap Contract
between any Subsidiary and any Lender or Affiliate of a Lender that is permitted to be incurred
pursuant to Section 8.01(e) and obligations under any Treasury Management Agreement between
any Subsidiary and any Lender or Affiliate of a Lender, any Borrower, and (d) the successors and
permitted assigns of the foregoing.

“Guaranty” means the Guaranty made by the Guarantors in favor of the Administrative
Agent and the Lenders pursuant to Article IV.

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

“Honor Date” has the meaning specified in Section 2.03(c).

“I & J” has the meaning specified in the introductory paragraph hereto.

“Immaterial Foreign Subsidiary” means, at any time of determination, any Foreign
Subsidiary that has total assets (on a subconsolidated basis with its Subsidiaries) not exceeding
$2,000,000 and has total annual revenues (on a subconsolidated basis with its Subsidiaries) not
exceeding $2,000,000.

“Inactive Subsidiary” means, at any time of determination, any Subsidiary that (a)
does not own or lease assets having an aggregate fair market value in excess of $50,000, (b) is not
obligated in respect of liabilities exceeding $50,000 in the aggregate (other than liabilities owed
to a Loan Party) and (c) does not engage in any business. As of the Closing Date, the Inactive
Subsidiaries are Russ Berrie & Co. West, BOA Done, Inc., P/F Done, Inc., Fluf N’ Stuf, Inc.,
RBTACQ, Inc., RBCACQ, Inc., Russ Berrie (Holdings) Limited, Russ Berrie (Deutschland) GmBH, Russ
Berrie (Osterreich) GmBH and Russ Berrie (Benelux) B.V.

 

14

 

“Indebtedness” of any Person means, without duplication, (a) all indebtedness of such
Person for borrowed money, whether or not evidenced by bonds, debentures, notes or similar
instruments, (b) all obligations of such Person as lessee under Capital Leases which have been or
should be recorded as liabilities on a balance sheet of such Person in accordance with GAAP, (c)
all obligations of such Person to pay the deferred purchase price of property or services, (d) all
indebtedness secured by a Lien on the property of such Person, whether or not such indebtedness
shall have been assumed by such Person; provided that if such Person has not assumed or
otherwise become liable for such indebtedness, such indebtedness shall be measured at the fair
market value of such property securing such indebtedness at the time of determination, (e) all
obligations, contingent or otherwise, with respect to the face amount of all letters of credit
(whether or not drawn), bankers’ acceptances and similar obligations issued for the account of such
Person (including the Letters of Credit), (f) the Swap Termination Value under Swap Contracts of
such Person, (g) all Contingent Liabilities of such Person, (h) all Indebtedness of any partnership
of which such Person is a general partner, (i) all monetary obligations of such Person under (i) so
called synthetic, off-balance sheet or tax retention leases (solely for purposes of calculating
compliance with the financial covenants set forth in Section 8.13, discounted to present
value at a reasonable capitalization rate fixed reasonably acceptable to the Administrative Agent),
or (ii) an agreement for the use or possession of property creating obligations that do not appear
on the balance sheet of such Person but which, upon the insolvency or bankruptcy of such Person,
would be characterized as the indebtedness of such Person (without regard to accounting treatment),
(j) any Equity Interests or other equity instrument, whether or not mandatorily redeemable, that
under GAAP is characterized as debt, whether pursuant to Financial Accounting Standards Board
Issuance No. 150 or otherwise and (k) the Subordinated Debt, if any; it being acknowledged and
agreed that the Earnout Consideration and trade payables and accrued expenses, in each case arising
in the ordinary course of business, shall not be deemed to constitute “Indebtedness” for purposes
of this Agreement.

“Indemnified Taxes” means Taxes other than Excluded Taxes.

“Indemnitees” has the meaning specified in Section 11.04(b).

“Information” has the meaning specified in Section 11.07.

“Interest Payment Date” means (a) as to any Eurodollar Rate Loan, the last day of each
Interest Period applicable to such Loan and the Maturity Date; provided, however,
that if any Interest Period for a Eurodollar Rate Loan exceeds three months, the respective dates
that fall every three months after the beginning of such Interest Period shall also be Interest
Payment Dates; and (b) as to any Base Rate Loan (including a Swing Line Loan), the last Business
Day of each March, June, September and December and the Maturity Date.

“Interest Period” means, as to each Eurodollar Rate Loan, the period commencing on the
date such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan
and ending on the date one, two, three or six months thereafter, as selected by the applicable
Borrower in its Loan Notice; provided that:

(i) any Interest Period that would otherwise end on a day that is not a
Business Day shall be extended to the next succeeding Business Day unless such
Business Day falls in another calendar month, in which case such Interest Period
shall end on the next preceding Business Day;

 

15

 

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

(iii) no Interest Period shall extend beyond the Maturity Date.

“Internal Revenue Code” means the U.S. Internal Revenue Code of 1986.

“Investment” means, with respect to any Person, any investment in another Person,
whether by acquisition of any debt or Equity Interest, by making any loan or advance, by assuming,
becoming obligated with respect to a liability, Indebtedness or Contingent Liability in respect of
obligations of such other Person (other than travel, relocation and similar advances to employees
in the ordinary course of business). For purposes of covenant compliance, the amount of any
Investment shall be the amount actually invested, without adjustment for subsequent increases or
decreases in the value of such Investment.

“Involuntary Disposition” means any loss of, damage to or destruction of, or any
condemnation or other taking for public use of, any property of any Loan Party or any Subsidiary.

“IP Rights” has the meaning specified in Section 6.18.

“IP Sub” means RB Trademark Holdco, LLC, a Delaware limited liability company.

“IP Sub IP” means the IP Rights owned by IP Sub.

“IP Sub License Agreement” means the License Agreement dated as of December 23, 2008
between IP Sub and The Russ Companies, Inc., as amended, restated or otherwise modified from time
to time, pursuant to which IP Sub licenses the IP Sub IP to The Russ Companies, Inc.

“ISP” means, with respect to any Letter of Credit, the “International Standby
Practices 1998” published by the Institute of International Banking Law & Practice, Inc. (or such
later version thereof as may be in effect at the time of issuance).

“Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit
Application, and any other document, agreement and instrument entered into by the L/C Issuer and
the applicable Borrower (or any Subsidiary) or in favor of the L/C Issuer and relating to such
Letter of Credit.

“Joinder Agreement” means a joinder agreement substantially in the form of Exhibit
7.11 executed and delivered by a Domestic Subsidiary in accordance with the provisions of
Section 7.11.

“Kids Line” has the meaning specified in the introductory paragraph hereto.

“LaJobi” has the meaning specified in the introductory paragraph hereto.

“LaJobi Acquisition” means the purchase by LaJobi of substantially all of the assets
of LaJobi Industries pursuant to and in accordance with the Acquisition Documents.

“LaJobi Industries” means LaJobi Industries, Inc., a New Jersey corporation.

 

16

 

“Laws” means, collectively, all international, foreign, federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or
judicial precedents or authorities, including the interpretation or administration thereof by any
Governmental Authority charged with the
enforcement, interpretation or administration thereof, and all applicable administrative
orders, directed duties, requests, licenses, authorizations and permits of, and agreements with,
any Governmental Authority, in each case whether or not having the force of law.

“L/C Advance” means, with respect to each Lender, such Lender’s funding of its
participation in any L/C Borrowing in accordance with its Applicable Percentage.

“L/C Borrowing” means an extension of credit resulting from a drawing under any Letter
of Credit which has not been reimbursed on the date when made or refinanced as a Borrowing of
Revolving Loans.

“L/C Credit Extension” means, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof, or the increase of the amount thereof.

“L/C Issuer” means Bank of America in its capacity as issuer of Letters of Credit
hereunder, or any successor issuer of Letters of Credit hereunder.

“L/C Obligations” means, as at any date of determination, the aggregate amount
available to be drawn under all outstanding Letters of Credit plus the aggregate of all
Unreimbursed Amounts, including all L/C Borrowings. For purposes of computing the amount available
to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in
accordance with Section 1.06. For all purposes of this Agreement, if on any date of
determination a Letter of Credit has expired by its terms but any amount may still be drawn
thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be
deemed to be “outstanding” in the amount so remaining available to be drawn.

“Lenders” means each of the Persons identified as a “Lender” on the signature pages
hereto, each other Person that becomes a “Lender” in accordance with this Agreement and their
successors and assigns and, as the context requires, includes the Swing Line Lender.

“Lending Office” means, as to any Lender, the office or offices of such Lender
described as such in such Lender’s Administrative Questionnaire, or such other office or offices as
a Lender may from time to time notify the Parent and the Administrative Agent.

“Letter of Credit” means any letter of credit issued hereunder and shall include the
Existing Letters of Credit. A Letter of Credit may be a commercial letter of credit or a standby
letter of credit; provided, however, that any commercial letter of credit issued
hereunder shall provide solely for cash payment upon presentation of a sight draft.

“Letter of Credit Application” means an application and agreement for the issuance or
amendment of a letter of credit in the form from time to time in use by the L/C Issuer.

“Letter of Credit Expiration Date” means the day that is seven days prior to the
Maturity Date then in effect (or, if such day is not a Business Day, the next preceding Business
Day).

“Letter of Credit Fee” has the meaning specified in Section 2.03(h).

 

17

 

“Letter of Credit Sublimit” means an amount equal to the lesser of (a) the Aggregate
Revolving Commitments and (b) $25,000,000. The Letter of Credit Sublimit is part of, and not in
addition to, the Aggregate Revolving Commitments.

“Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement
having the practical effect of any of the foregoing, encumbrance, lien (statutory or otherwise),
charge, or preference, priority or other security interest or preferential arrangement in the
nature of a security interest of any kind or nature whatsoever (including any conditional sale or
other title retention agreement, any easement, right of way or other encumbrance on title to real
property, and any financing lease having substantially the same economic effect as any of the
foregoing).

“Loan” means an extension of credit by a Lender to a Borrower under Article II
in the form of a Revolving Loan or Swing Line Loan.

“Loan Documents” means this Agreement, each Note, each Issuer Document, each Joinder
Agreement, the Collateral Documents and the Fee Letter.

“Loan Notice” means a notice of (a) a Borrowing of Revolving Loans, (b) a conversion
of Loans from one Type to the other, or (c) a continuation of Eurodollar Rate Loans, in each case
pursuant to Section 2.02(a), which, if in writing, shall be substantially in the form of
Exhibit 2.02.

“Loan Parties” means, collectively, each Borrower and each Guarantor.

“London Banking Day” means any day on which dealings in Dollar deposits are conducted
by and between banks in the London interbank eurodollar market.

“Material Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the operations, business, assets, properties, liabilities (actual or
contingent) or condition (financial or otherwise) of the Parent and its Subsidiaries taken as a
whole, (b) a material impairment of rights and remedies, taken as a whole, of any of the
Administrative Agent, the L/C Issuer or any Lender under any Loan Document, (c) a material
impairment of the ability of any Loan Party to perform, in any material respect, its obligations
under any Loan Document to which it is a party and (d) a material adverse effect upon the legality,
validity, binding effect or enforceability against any Loan Party of any Loan Document to which it
is a party.

“Maturity Date” means August 8, 2016; provided, however, that if such
date is not a Business Day, the Maturity Date shall be the next succeeding Business Day.

“Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.

“Mortgaged Property” means any real property that is owned by any Loan Party and is
subject to a Mortgage.

“Mortgages” means the mortgages, deeds of trust or deeds to secure debt that purport
to grant to the Administrative Agent a security interest in the fee interests of any Loan Party in
any real property.

“Multiemployer Pension Plan” means a multiemployer plan, as defined in Section
3(37)(A) of ERISA, to which any Loan Party or any other member of the Controlled Group maintains,
contributes to, or has an obligation to contribute to (or, within the immediately preceding six (6)
years, maintained, contributed to or had an obligation to contribute to) on behalf of participants
who were employed by any of them.

 

18

 

“Note” has the meaning specified in Section 2.11(a).

“Obligations” means all advances to, and debts, liabilities, obligations, covenants
and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan
or Letter of Credit, whether direct or indirect (including those acquired by assumption), absolute
or contingent, due or to become due, now existing or hereafter arising and including interest and
fees that accrue after the commencement by or against any Loan Party or any Affiliate thereof of
any proceeding under any Debtor Relief Laws naming a Loan Party as the debtor in such proceeding,
regardless of whether such interest and fees are allowed claims in such proceeding. The foregoing
shall also include (a) all obligations under any Swap Contract between any Loan Party or any
Subsidiary and any Lender or Affiliate of a Lender that is permitted to be incurred pursuant to
Section 8.01(e) and (b) all obligations under any Treasury Management Agreement between any
Loan Party or any Subsidiary and any Lender or Affiliate of a Lender.

“OFAC” has the meaning specified in Section 7.06.

“Organization Documents” means, (a) with respect to any corporation, the certificate
or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents
with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the
certificate or articles of formation or organization and operating agreement; and (c) with respect
to any partnership, joint venture, trust or other form of business entity, the partnership, joint
venture or other applicable agreement of formation or organization and any agreement, instrument,
filing or notice with respect thereto filed in connection with its formation or organization with
the applicable Governmental Authority in the jurisdiction of its formation or organization and, if
applicable, any certificate or articles of formation or organization of such entity.

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

“Outstanding Amount” means (a) with respect to any Loans on any date, the aggregate
outstanding principal amount thereof after giving effect to any borrowings and prepayments or
repayments of any Loans occurring on such date; and (b) with respect to any L/C Obligations on any
date, the amount of such L/C Obligations on such date after giving effect to any L/C Credit
Extension occurring on such date and any other changes in the aggregate amount of the L/C
Obligations as of such date, including as a result of any reimbursements by the Borrowers of
Unreimbursed Amounts.

“Parent” has the meaning specified in the introductory paragraph hereto.

“Participant” has the meaning specified in Section 11.06(d).

“PBGC” means the Pension Benefit Guaranty Corporation or any successor thereto.

“Pension Act” means the Pension Protection Act of 2006.

“Pension Plan” means a “pension plan”, as such term is defined in Section 3(2) of
ERISA, which is subject to Title IV of ERISA or the minimum funding standards of ERISA (other than
a Multiemployer Pension Plan), which any Loan Party or any member of the Controlled Group
maintains, contributes to, or has an obligation to contribute to (or, within the immediately
preceding six (6) years, maintained, contributed to or had an obligation to contribute to) on
behalf of participants who were employed by any of them. The term Pension Plan shall also
include any other plan providing retirement income that is not governed by the Laws of the United
States.

 

19

 

“Permitted Acquisition” has the meaning specified in Section 8.04(d).

“Permitted Holder” means (i) Prentice Capital Management or its affiliates or any
investment fund managed or advised by Prentice Capital Management or its affiliates or (ii) (1) any
institutional Person or entity described in Rule 13d-1(b)(1)(ii) under the Exchange Act, (2) any
“qualified institutional buyer” as defined in Rule 144A(a)(1) promulgated under the Securities Act
of 1933, as amended (the “Act”), (3) any institutional Person or entity described in
clauses (1), (2), (3), (7) or, to the extent comprised of institutional Persons or entities
described in clauses (1), (2), (3) and/or (7), clause (8) of the definition of “accredited
investor” as defined in Rule 501(a) promulgated under the Act, or (4) any similar institutional
equity investor.

“Permitted Liens” means, at any time, Liens in respect of property of any Loan Party
or any Subsidiary permitted to exist at such time pursuant to the terms of Section 8.02.

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

“Platform” has the meaning specified in Section 7.02(f).

“Pro Forma Basis” means, with respect to any transaction, that for purposes of
calculating the financial covenants set forth in Section 8.13, such transaction shall be
deemed to have occurred as of the first day of the most recent four fiscal quarter period preceding
the date of such transaction for which financial statements were required to be delivered pursuant
to Section 7.01(a) or (b). In connection with the foregoing, (a) with respect to
any Disposition or Involuntary Disposition, (i) income statement and cash flow statement items
(whether positive or negative) attributable to the property disposed of shall be excluded to the
extent relating to any period occurring prior to the date of such transaction and (ii) Indebtedness
which is retired shall be excluded and deemed to have been retired as of the first day of the
applicable period and (b) with respect to any Permitted Acquisition, (i) income statement and cash
flow statement items attributable to the Person or property acquired shall be included to the
extent relating to any period applicable in such calculations to the extent (A) such items are not
otherwise included in such income statement and cash flow statement items for the Parent and its
Subsidiaries in accordance with GAAP or in accordance with any defined terms set forth in
Section 1.01 and (B) such items are supported by financial statements or other information
reasonably satisfactory to the Administrative Agent and (ii) any Indebtedness incurred or assumed
by any Loan Party or any Subsidiary (including the Person or property acquired) in connection with
such transaction and any Indebtedness of the Person or property acquired which is not retired in
connection with such transaction (A) shall be deemed to have been incurred as of the first day of
the applicable period and (B) if such Indebtedness has a floating or formula rate, shall have an
implied rate of interest for the applicable period for purposes of this definition determined by
utilizing the rate which is or would be in effect with respect to such Indebtedness as at the
relevant date of determination.

“Public Lender” has the meaning specified in Section 7.02.

“Register” has the meaning specified in Section 11.06(c).

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

 

20

 

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

“Request for Credit Extension” means (a) with respect to a Borrowing, conversion or
continuation of Loans, a Loan Notice, (b) with respect to an L/C Credit Extension, a Letter of
Credit Application, and (c) with respect to a Swing Line Loan, a Swing Line Loan Notice.

“Required Lenders” means, at any time, Lenders holding in the aggregate more than 50%
of (a) the unfunded Commitments and the outstanding Loans, L/C Obligations and participations
therein or (b) if the Commitments have been terminated, the outstanding Loans, L/C Obligations and
participations therein. The unfunded Commitments of, and the outstanding Loans, L/C Obligations
and participations therein held or deemed held by, any Defaulting Lender shall be excluded for
purposes of making a determination of Required Lenders.

“Responsible Officer” means the chief executive officer, president, chief financial
officer, treasurer, assistant treasurer or controller of a Loan Party, solely for purposes of the
delivery of incumbency certificates pursuant to Section 5.01, the secretary or any
assistant secretary of a Loan Party and, solely for purposes of notices given pursuant to
Article II, any other officer of the applicable Loan Party so designated by any of the
foregoing officers in a notice to the Administrative Agent. Any document delivered hereunder that
is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been
authorized by all necessary corporate, partnership and/or other action on the part of such Loan
Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such
Loan Party.

“Restricted Payment” has the meaning specified in Section 8.03.

“Revolving Commitment” means, as to each Lender, its obligation to (a) make Revolving
Loans to the Borrowers pursuant to Section 2.01, (b) purchase participations in L/C
Obligations, and (c) purchase participations in Swing Line Loans, in an aggregate principal amount
at any one time outstanding not to exceed the amount set forth opposite such Lender’s name on
Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a
party hereto or in any documentation executed by such Lender pursuant to Section 2.01(b),
as applicable as such amount may be adjusted from time to time in accordance with this Agreement.

“Revolving Loan” has the meaning specified in Section 2.01(a).

“S&P” means Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill
Companies, Inc. and any successor thereto.

“Sale and Leaseback Transaction” means, with respect to any Loan Party or any
Subsidiary, any arrangement, directly or indirectly, with any Person whereby such Loan Party or
such Subsidiary shall sell or transfer any property used or useful in its business, whether now
owned or hereafter acquired, and thereafter rent or lease such property or other property that it
intends to use for substantially the same purpose or purposes as the property being sold or
transferred.

“Sassy” has the meaning specified in the introductory paragraph hereto.

 

21

 

“SEC” means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

“Security Agreement” means the security and pledge agreement, dated as of the Closing
Date, executed in favor of the Administrative Agent by each of the Loan Parties.

“Senior Officer” means, with respect to any Loan Party, any of the chief executive
officer, the chief financial officer, the chief operating officer or the treasurer or controller or
vice president of finance, of such Loan Party.

“Subordinated Debt” means any Indebtedness of any Loan Party or any Subsidiary that is
unsecured and is expressly subordinated to the prior payment in full, in cash, of the Obligations
pursuant to an agreement in form and substance reasonably satisfactory to the Administrative Agent.

“Subsidiary” of a Person means a corporation, partnership, joint venture, limited
liability company or other business entity of which a majority of the shares of Voting Stock is at
the time beneficially owned, or the management of which is otherwise controlled, directly, or
indirectly through one or more intermediaries, or both, by such Person. Unless otherwise
specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall (i) refer to a
Subsidiary or Subsidiaries of the Parent and (ii) exclude Inactive Subsidiaries.

“Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond price or bond index
swaps or options or forward bond or forward bond price or forward bond index transactions, interest
rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions, currency options,
spot contracts, or any other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions of any kind, and
the related confirmations, which are subject to the terms and conditions of, or governed by, any
form of master agreement published by the International Swaps and Derivatives Association, Inc.,
any International Foreign Exchange Master Agreement, or any other master agreement (any such master
agreement, together with any related schedules, a “Master Agreement”), including any such
obligations or liabilities under any Master Agreement.

“Swap Termination Value” means, in respect of any one or more Swap Contracts, after
taking into account the effect of any legally enforceable netting agreement relating to such Swap
Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and
termination value(s) determined in accordance therewith, such termination value(s) and (b) for any
date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market
value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily
available quotations provided by any recognized dealer in such Swap Contracts (which may include a
Lender or any Affiliate of a Lender).

“Swing Line Lender” means Bank of America in its capacity as provider of Swing Line
Loans, or any successor swing line lender hereunder.

“Swing Line Loan” has the meaning specified in Section 2.04(a).

“Swing Line Loan Notice” means a notice of a Borrowing of Swing Line Loans pursuant to
Section 2.04(b), which, if in writing, shall be substantially in the form of Exhibit
2.04.

 

22

 

“Swing Line Sublimit” means an amount equal to the lesser of (a) $5,000,000 and (b)
the Aggregate Revolving Commitments. The Swing Line Sublimit is part of, and not in addition to,
the Aggregate Revolving Commitments.

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

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

“Total Revolving Outstandings” means the aggregate Outstanding Amount of all Revolving
Loans, all Swing Line Loans and all L/C Obligations.

“Treasury Management Agreement” means any agreement governing the provision of
treasury or cash management services, including deposit accounts, overnight draft, credit or debit
cards, funds transfer, automated clearinghouse, zero balance accounts, returned check
concentration, controlled disbursement, lockbox, account reconciliation and reporting and trade
finance services and other cash management services.

“Type” means, with respect to any Loan, its character as a Base Rate Loan or a
Eurodollar Rate Loan.

“UCC” is defined in the Security Agreement.

“Unfunded Liability” means the amount (if any) by which the present value of all
vested and unvested accrued benefits under all Pension Plans of the Loan Parties and each other
member of the Controlled Group exceeds the fair market value of all assets allocable to those
benefits, all determined as of the then most recent valuation date for each Pension Plan, using the
actuarial assumptions used by the Pension Plans for purposes of determining the minimum funding
contributions under Section 412 of the Internal Revenue Code to the extent applicable.

“United States” and “U.S.” mean the United States of America.

“Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i).

“Voting Stock” means, with respect to any Person, Equity Interests issued by such
Person the holders of which are ordinarily, in the absence of contingencies, entitled to vote for
the election of directors (or persons performing similar functions) of such Person, even though the
right so to vote has been suspended by the happening of such a contingency.

“Wholly-Owned Subsidiary” means, as to any Person, a Subsidiary all of the Equity
Interests of which (except directors’ qualifying Equity Interests) are at the time directly or
indirectly owned by such Person and/or another Wholly-Owned Subsidiary of such Person. Unless the
context otherwise requires, each
reference to a Wholly-Owned Subsidiary herein shall be a reference to a Wholly-Owned
Subsidiary of the Parent.

 

23

 

1.02 Other Interpretive Provisions.

With reference to this Agreement and each other Loan Document, unless otherwise specified
herein or in such other Loan Document:

(a) The definitions of terms herein shall apply equally to the singular and plural
forms of the terms defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words “include,”
“includes” and “including” shall be deemed to be followed by the phrase
“without limitation.” The word “will” shall be construed to have the same meaning
and effect as the word “shall.” Unless the context requires otherwise, (i) any
definition of or reference to any agreement, instrument or other document (including any
Organization Document) shall be construed as referring to such agreement, instrument or
other document as from time to time amended, supplemented or otherwise modified (subject to
any restrictions on such amendments, supplements or modifications set forth herein or in any
other Loan Document), (ii) any reference herein to any Person shall be construed to include
such Person’s successors and assigns, (iii) the words “hereto,” “herein,”
“hereof” and “hereunder,” and words of similar import when used in any Loan
Document, shall be construed to refer to such Loan Document in its entirety and not to any
particular provision thereof, (iv) all references in a Loan Document to Articles, Sections,
Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits
and Schedules to, the Loan Document in which such references appear, (v) any reference to
any law shall include all statutory and regulatory provisions consolidating, amending,
replacing or interpreting such law and any reference to any law or regulation shall, unless
otherwise specified, refer to such law or regulation as amended, modified or supplemented
from time to time, and (vi) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, securities, accounts and contract rights.

(b) 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.”

(c) Section headings herein and in the other Loan Documents are included for
convenience of reference only and shall not affect the interpretation of this Agreement or
any other Loan Document.

1.03 Accounting Terms.

(a) Generally. Except as otherwise specifically prescribed herein, all
accounting terms not specifically or completely defined herein shall be construed in
conformity with, and all financial data (including financial ratios and other financial
calculations) required to be submitted pursuant to this Agreement shall be prepared in
conformity with, GAAP applied on a consistent basis, as in effect from time to time.
Notwithstanding the foregoing, for purposes of determining compliance with any covenant
(including the computation of any financial covenant) contained herein, Indebtedness of the
Loan Parties and their Subsidiaries shall be deemed to be carried at 100% of the outstanding
principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470-20 on financial
liabilities shall be disregarded.

 

24

 

(b) Changes in GAAP. If at any time any change in GAAP would affect the
computation of any financial ratio or requirement set forth in any Loan Document, and either
the Parent or the Required Lenders shall so request, the Administrative Agent, the Lenders
and the Parent shall negotiate in good faith to amend such ratio or requirement to preserve
the original intent thereof in light of such change in GAAP (subject to the approval of the
Required Lenders and the Loan Parties and any such amendment shall not include any amendment
fees payable by a Loan Party); provided that, until so amended, (i) such
ratio or requirement shall continue to be computed in accordance with GAAP prior to such
change therein and (ii) the Parent shall provide to the Administrative Agent and the Lenders
financial statements and other documents required under this Agreement or as reasonably
requested hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP. For purposes of
calculations made pursuant to the terms of this Agreement, GAAP will be deemed to treat
operating leases in a manner consistent with their current treatment under generally
accepted accounting principles as in effect on the Closing Date, notwithstanding any
modifications or interpretive changes thereto that may occur thereafter.

(c) Calculations. Notwithstanding the above, the parties hereto acknowledge
and agree that all calculations of the financial covenants in Section 8.13
(including for purposes of determining the Applicable Rate) shall be made on a Pro Forma
Basis with respect to (i) any Disposition of all of the Equity Interests of, or all or
substantially all of the assets of, a Subsidiary, (ii) any Disposition of a line of business
or division of any Loan Party or Subsidiary, or (iii) any Permitted Acquisition, in each
case, occurring during the applicable period.

1.04 Rounding.

Any financial ratios required to be maintained by the Loan Parties pursuant to this Agreement
shall be calculated by dividing the appropriate component by the other component, carrying the
result to one place more than the number of places by which such ratio is expressed herein and
rounding the result up or down to the nearest number (with a rounding-up if there is no nearest
number).

1.05 Times of Day.

Unless otherwise specified, all references herein to times of day shall be references to
Central time (daylight or standard, as applicable).

1.06 Letter of Credit Amounts.

Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be
deemed to be the stated amount of such Letter of Credit in effect at such time; provided,
however, that with respect to any Letter of Credit that, by its terms or the terms of any
Issuer Document related thereto, provides for one or more automatic increases in the stated amount
thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of
such Letter of Credit after giving effect to all such increases, whether or not such maximum stated
amount is in effect at such time.

 

25

 

ARTICLE II

THE COMMITMENTS AND CREDIT EXTENSIONS

2.01 Revolving Loans.

(a) Revolving Loans. Subject to the terms and conditions set forth herein, each
Lender severally agrees to make loans (each such loan, a “Revolving Loan”) to the Borrowers
in Dollars from time to time on any Business Day during the Availability Period in an aggregate
amount not to exceed at any time outstanding the amount of such Lender’s Revolving Commitment;
provided, however, that after giving effect to any Borrowing of Revolving Loans,
(i) the Total Revolving Outstandings shall not exceed the Aggregate Revolving Commitments, and (ii)
the aggregate Outstanding Amount of the Revolving Loans of any Lender, plus such Lender’s
Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s
Applicable Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed such
Lender’s Revolving Commitment. Within the limits of each Lender’s Revolving Commitment, and
subject to the other terms and conditions hereof, the Borrowers may borrow under this Section
2.01, prepay under Section 2.05, and reborrow under this Section 2.01.
Revolving Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein.

(b) Increases of the Aggregate Revolving Commitments. The Parent shall have the right
(without the consent of the Administrative Agent or any Lender), upon at least five Business Days’
prior written notice to the Administrative Agent, to increase the Aggregate Revolving Commitments
by up to $35,000,000 in the aggregate in one or more increases, at any time prior to the date that
is six months prior to the Maturity Date, subject, however, in any such case, to
satisfaction of the following conditions precedent:

(i) the Aggregate Revolving Commitments shall not exceed $210,000,000 without the
consent of the Required Lenders;

(ii) no Default shall have occurred and be continuing on the date on which such
increase is to become effective;

(iii) the representations and warranties set forth in Article VI shall be true
and correct in all material respects on and as of the date on which such increase is to
become effective, except to the extent that such representations and warranties specifically
refer to an earlier date, in which case they shall be true and correct in all material
respects as of such earlier date;

(iv) such increase shall be in a minimum amount of $10,000,000 and in integral
multiples of $5,000,000 in excess thereof;

(v) such requested increase shall only be effective upon receipt by the Administrative
Agent of (A) additional Revolving Commitments in a corresponding amount of such requested
increase from either existing Lenders and/or one or more other institutions that qualify as
Eligible Assignees (it being understood and agreed that no existing Lender shall be required
to provide an additional Revolving Commitment) and (B) documentation from each institution
providing an additional Revolving Commitment evidencing its additional Revolving Commitment
and its obligations under this Agreement in form and substance reasonably acceptable to the
Administrative Agent;

 

26

 

(vi) the Administrative Agent shall have received all documents (including resolutions
of the board of directors of the Loan Parties) it may reasonably request relating to the
corporate or other necessary authority for such increase and the validity of such
increase in the Aggregate Revolving Commitments, and any other matters relevant thereto, all
in form and substance reasonably satisfactory to the Administrative Agent; and

(vii) if any Revolving Loans are outstanding at the time of the increase in the
Aggregate Revolving Commitments, the Borrowers shall, if applicable, prepay one or more
existing Revolving Loans (such prepayment to be subject to Section 3.05) in an
amount necessary such that after giving effect to the increase in the Aggregate Revolving
Commitments, each Lender will hold its pro rata share (based on its Applicable Percentage of
the increased Aggregate Revolving Commitments) of outstanding Revolving Loans.

This Section 2.01 shall supersede any provisions contained in Sections 2.13
and 11.01 to the contrary. No Lender shall be obligated to increase its Revolving
Commitment pursuant to this Section 2.01(b).

2.02 Borrowings, Conversions and Continuations of Loans.

(a) Each Borrowing, each conversion of Loans from one Type to the other, and each continuation
of Eurodollar Rate Loans shall be made upon the applicable Borrower’s irrevocable notice to the
Administrative Agent, which may be given by telephone. Each such notice must be received by the
Administrative Agent not later than 12:00 noon (i) three Business Days prior to the requested date
of any Borrowing of, conversion to or continuation of, Eurodollar Rate Loans or of any conversion
of Eurodollar Rate Loans to Base Rate Loans, and (ii) on the requested date of any Borrowing of
Base Rate Loans. Each telephonic notice by a Borrower pursuant to this Section 2.02(a)
must be confirmed promptly by delivery to the Administrative Agent of a written Loan Notice,
appropriately completed and signed by a Responsible Officer of such Borrower. Each Borrowing of,
conversion to or continuation of Eurodollar Rate Loans shall be in a principal amount of $500,000
or a whole multiple of $100,000 in excess thereof. Except as provided in Sections 2.03(c)
and 2.04(c), each Borrowing of or conversion to Base Rate Loans shall be in a principal
amount of $100,000 or a whole multiple of $100,000 in excess thereof. Each Loan Notice (whether
telephonic or written) shall specify (i) whether the applicable Borrower is requesting a Borrowing,
a conversion of Loans from one Type to the other, or a continuation of Eurodollar Rate Loans, (ii)
the requested date of the Borrowing, conversion or continuation, as the case may be (which shall be
a Business Day), (iii) the principal amount of Loans to be borrowed, converted or continued, (iv)
the Type of Loans to be borrowed or to which existing Loans are to be converted, and (v) if
applicable, the duration of the Interest Period with respect thereto. If a Borrower fails to
specify a Type of a Loan in a Loan Notice or if a Borrower fails to give a timely notice requesting
a conversion or continuation, then the applicable Loans shall be made as, or converted to, Base
Rate Loans. Any such automatic conversion to Base Rate Loans shall be effective as of the first day
immediately following the last day of the Interest Period last in effect with respect to the
applicable Eurodollar Rate Loans. If a Borrower requests a Borrowing of, conversion to, or
continuation of Eurodollar Rate Loans in any Loan Notice, but fails to specify an Interest Period,
it will be deemed to have specified an Interest Period of one month. Notwithstanding anything to
the contrary herein, a Swing Line Loan may not be converted to a Eurodollar Rate Loan.

(b) Following receipt of a Loan Notice, the Administrative Agent shall promptly notify each
Lender of the amount of its Applicable Percentage of the applicable Loans, and if no timely notice
of a conversion or continuation is provided by the applicable Borrower, the Administrative Agent
shall notify each Lender of the details of any automatic conversion to Base Rate Loans as described
in the preceding subsection. In the case of a Borrowing, each Lender shall make the amount of its
Loan available to the Administrative Agent in immediately available funds at the Administrative
Agent’s Office not later than 1:00 p.m. on the Business Day specified in the applicable Loan
Notice. Upon satisfaction of the
applicable conditions set forth in Section 5.02 (and, if such Borrowing is the initial
Credit Extension, Section 5.01), the Administrative Agent shall make all funds so received
available to the applicable Borrower in like funds as received by the Administrative Agent either
by (i) crediting the account of such Borrower on the books of Bank of America with the amount of
such funds or (ii) wire transfer of such funds, in each case in accordance with instructions
provided to (and reasonably acceptable to) the Administrative Agent by such Borrower;
provided, however, that if, on the date of a Borrowing of Revolving Loans, there
are L/C Borrowings outstanding, then the proceeds of such Borrowing, first, shall be applied to the
payment in full of any such L/C Borrowings and second, shall be made available to such
Borrower as provided above.

 

27

 

(c) Except as otherwise provided herein, a Eurodollar Rate Loan may be continued or converted
only on the last day of the Interest Period for such Eurodollar Rate Loan. During the existence of
a Default, no Loans may be requested as, converted to or continued as Eurodollar Rate Loans without
the consent of the Required Lenders, and the Required Lenders may demand that any or all of the
then outstanding Eurodollar Rate Loans be converted immediately to Base Rate Loans.

(d) The Administrative Agent shall promptly notify the Parent and the Lenders of the interest
rate applicable to any Interest Period for Eurodollar Rate Loans upon determination of such
interest rate. At any time that Base Rate Loans are outstanding, the Administrative Agent shall
notify the Parent and the Lenders of any change in Bank of America’s prime rate used in determining
the Base Rate promptly following the public announcement of such change.

(e) After giving effect to all Borrowings, all conversions of Loans from one Type to the
other, and all continuations of Loans as the same Type, there shall not be more than ten Interest
Periods in effect.

2.03 Letters of Credit.

(a) The Letter of Credit Commitment.

(i) Subject to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in
reliance upon the agreements of the Lenders set forth in this Section 2.03, (1) from
time to time on any Business Day during the period from the Closing Date until the Letter of
Credit Expiration Date, to issue Letters of Credit in Dollars for the account of any
Borrower or any of its Subsidiaries, and to amend or extend Letters of Credit previously
issued by it, in accordance with subsection (b) below, and (2) to honor drawings under the
Letters of Credit; and (B) the Lenders severally agree to participate in Letters of Credit
issued for the account of such Borrower or its Subsidiaries and any drawings thereunder;
provided that after giving effect to any L/C Credit Extension with respect to any
Letter of Credit, (x) the Total Revolving Outstandings shall not exceed the Aggregate
Revolving Commitments, (y) the aggregate Outstanding Amount of the Revolving Loans of any
Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of all
L/C Obligations, plus such Lender’s Applicable Percentage of the Outstanding Amount
of all Swing Line Loans shall not exceed such Lender’s Revolving Commitment and (z) the
Outstanding Amount of the L/C Obligations shall not exceed the Letter of Credit Sublimit.
Each request by a Borrower for the issuance or amendment of a Letter of Credit shall be
deemed to be a representation by such Borrower that the L/C Credit Extension so requested
complies with the conditions set forth in the proviso to the preceding sentence. Within the
foregoing limits, and subject to the terms and conditions hereof, the Borrowers’ ability to
obtain Letters of Credit shall be fully revolving, and accordingly each Borrower may, during
the foregoing period, obtain Letters of Credit to replace Letters of Credit that have
expired or that have been drawn upon and reimbursed. All Existing Letters of Credit shall
be deemed to have been issued pursuant hereto,
and from and after the Closing Date shall be subject to and governed by the terms and
conditions hereof.

 

28

 

(ii) The L/C Issuer shall not issue any Letter of Credit if:

(A) subject to Section 2.03(b)(iii), the expiry date of such requested
Letter of Credit would occur more than twelve months after the date of issuance or
last extension, unless the Lenders (other than Defaulting Lenders) holding a
majority of the Revolving Commitments have approved such expiry date; or

(B) the expiry date of such requested Letter of Credit would occur more than
one year after the Letter of Credit Expiration Date, unless all the Lenders that
have Revolving Commitments have approved such expiry date.

(iii) The L/C Issuer shall not be under any obligation to issue any Letter of Credit
if:

(A) any order, judgment or decree of any Governmental Authority or arbitrator
shall by its terms purport to enjoin or restrain the L/C Issuer from issuing such
Letter of Credit, or any Law applicable to the L/C Issuer or any request or
directive (whether or not having the force of law) from any Governmental Authority
with jurisdiction over the L/C Issuer shall prohibit, or request that the L/C Issuer
refrain from, the issuance of letters of credit generally or such Letter of Credit
in particular or shall impose upon the L/C Issuer with respect to such Letter of
Credit any restriction, reserve or capital requirement (for which the L/C Issuer is
not otherwise compensated hereunder) not in effect on the Closing Date, or shall
impose upon the L/C Issuer any unreimbursed loss, cost or expense which was not
applicable on the Closing Date and which the L/C Issuer in good faith deems material
to it;

(B) the issuance of such Letter of Credit would violate one or more policies of
the L/C Issuer applicable to borrowers generally;

(C) except as otherwise agreed by the Administrative Agent and the L/C Issuer,
such Letter of Credit is in an initial stated amount less than $25,000;

(D) such Letter of Credit is to be denominated in a currency other than
Dollars;

(E) such Letter of Credit contains any provisions for automatic reinstatement
of the stated amount after any drawing thereunder; or

(F) any Lender is at that time a Defaulting Lender, unless the L/C Issuer has
entered into arrangements, including the delivery of Cash Collateral, satisfactory
to the L/C Issuer (in its sole discretion) with the Borrowers or such Lender to
eliminate the L/C Issuer’s actual or potential Fronting Exposure (after giving
effect to Section 2.15(a)(iv)) with respect to the Defaulting Lender arising
from either the Letter of Credit then proposed to be issued or that Letter of Credit
and all other L/C Obligations as to which the L/C Issuer has actual or potential
Fronting Exposure, as it may elect in its sole discretion.

(iv) The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would not be
permitted at such time to issue the Letter of Credit in its amended form under the terms
hereof.

 

29

 

(v) The L/C Issuer shall be under no obligation to amend any Letter of Credit if (A)
the L/C Issuer would have no obligation at such time to issue the Letter of Credit in its
amended form under the terms hereof, or (B) the beneficiary of the Letter of Credit does not
accept the proposed amendment to the Letter of Credit.

(vi) The L/C Issuer shall act on behalf of the Lenders with respect to any Letters of
Credit issued by it and the documents associated therewith, and the L/C Issuer solely shall
have all of the benefits and immunities (A) provided to the Administrative Agent in
Article X with respect to any acts taken or omissions suffered by the L/C Issuer in
connection with Letters of Credit issued by it or proposed to be issued by it and Issuer
Documents pertaining to such Letters of Credit as fully as if the term “Administrative
Agent” as used in Article X included the L/C Issuer solely with respect to such acts
or omissions, and (B) as additionally provided herein with respect to the L/C Issuer.

(b) Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of
Credit.

(i) Each Letter of Credit shall be issued or amended, as the case may be, upon the
request of the applicable Borrower delivered to the L/C Issuer (with a copy to the
Administrative Agent) in the form of a Letter of Credit Application, appropriately completed
and signed by a Responsible Officer of such Borrower. Such Letter of Credit Application
must be received by the L/C Issuer and the Administrative Agent on a Business Day at least
three Business Days (or such later date and time as the Administrative Agent and the L/C
Issuer may agree in a particular instance in their sole discretion) prior to the proposed
issuance date or date of amendment, as the case may be. In the case of a request for an
initial issuance of a Letter of Credit, such Letter of Credit Application shall specify in
form and detail reasonably satisfactory to the L/C Issuer: (A) the proposed issuance date of
the requested Letter of Credit (which shall be a Business Day); (B) the amount thereof; (C)
the expiry date thereof; (D) the name and address of the beneficiary thereof; (E) the
documents to be presented by such beneficiary in case of any drawing thereunder; (F) the
full text of any certificate to be presented by such beneficiary in case of any drawing
thereunder; (G) the purpose and nature of the requested Letter of Credit; and (H) such other
matters as the L/C Issuer may reasonably require. In the case of a request for an amendment
of any outstanding Letter of Credit, such Letter of Credit Application shall specify in form
and detail reasonably satisfactory to the L/C Issuer (A) the Letter of Credit to be amended;
(B) the proposed date of amendment thereof (which shall be a Business Day); (C) the nature
of the proposed amendment; and (D) such other matters as the L/C Issuer may reasonably
require. Additionally, the applicable Borrower shall furnish to the L/C Issuer and the
Administrative Agent such other documents and information pertaining to such requested
Letter of Credit issuance or amendment, including any Issuer Documents, as the L/C Issuer or
the Administrative Agent may reasonably require.

(ii) Promptly after receipt of any Letter of Credit Application, the L/C Issuer will
confirm with the Administrative Agent (by telephone or in writing) that the Administrative
Agent has received a copy of such Letter of Credit Application from the applicable Borrower
and, if not, the L/C Issuer will provide the Administrative Agent with a copy thereof.
Unless the L/C Issuer has received written notice from any Lender, the Administrative Agent
or any Loan Party, at least one Business Day prior to the requested date of issuance or
amendment of the applicable Letter of Credit, that one or more applicable conditions
contained in Article V shall not be satisfied or waived, then, subject to the terms
and conditions hereof, the L/C Issuer shall, on the requested date, issue a Letter of Credit
for the account of the applicable Borrower or the applicable
Subsidiary or enter into the applicable amendment, as the case may be, in each case in
accordance with the L/C Issuer’s usual and customary business practices. Immediately upon
the issuance of each Letter of Credit, each Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the L/C Issuer a risk participation
in such Letter of Credit in an amount equal to the product of such Lender’s Applicable
Percentage times the amount of such Letter of Credit.

 

30

 

(iii) If a Borrower so requests in any applicable Letter of Credit Application, the L/C
Issuer may, in its sole discretion, agree to issue a Letter of Credit that has automatic
extension provisions (each, an “Auto-Extension Letter of Credit”); provided
that any such Auto-Extension Letter of Credit must permit the L/C Issuer to prevent any such
extension at least once in each twelve-month period (commencing with the date of issuance of
such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a
day (the “Non-Extension Notice Date”) in each such twelve-month period to be agreed
upon at the time such Letter of Credit is issued. Unless otherwise directed by the L/C
Issuer, a Borrower shall not be required to make a specific request to the L/C Issuer for
any such extension. Once an Auto-Extension Letter of Credit has been issued, the Lenders
shall be deemed to have authorized (but may not require) the L/C Issuer to permit the
extension of such Letter of Credit at any time to an expiry date not later than one year
after the Letter of Credit Expiration Date; provided, however, that the L/C
Issuer shall not permit any such extension if (A) the L/C Issuer has determined that it
would not be permitted, or would have no obligation, at such time to issue such Letter of
Credit in its revised form (as extended) under the terms hereof (by reason of the provisions
of clause (ii) or (iii) of Section 2.03(a) or otherwise), or (B) it has received
notice (which may be by telephone or in writing) on or before the day that is seven Business
Days before the Non-Extension Notice Date (1) from the Administrative Agent that the
Required Lenders have elected not to permit such extension or (2) from the Administrative
Agent, any Lender or a Borrower that one or more of the applicable conditions specified in
Section 5.02 is not then satisfied, and in each case directing the L/C Issuer not to
permit such extension.

(iv) Promptly after its delivery of any Letter of Credit or any amendment to a Letter
of Credit to an advising bank with respect thereto or to the beneficiary thereof, the L/C
Issuer will also deliver to the applicable Borrower and the Administrative Agent a true and
complete copy of such Letter of Credit or amendment.

(c) Drawings and Reimbursements; Funding of Participations.

(i) Upon receipt from the beneficiary of any Letter of Credit of any notice of drawing
under such Letter of Credit, the L/C Issuer shall notify the applicable Borrower and the
Administrative Agent thereof. Not later than 11:00 a.m. on the date of any payment by the
L/C Issuer under a Letter of Credit (each such date, an “Honor Date”), such Borrower
shall reimburse the L/C Issuer through the Administrative Agent in an amount equal to the
amount of such drawing. If the applicable Borrower fails to so reimburse the L/C Issuer by
such time, the Administrative Agent shall promptly notify each Lender of the Honor Date, the
amount of the unreimbursed drawing (the “Unreimbursed Amount”), and the amount of
such Lender’s Applicable Percentage thereof. In such event, the applicable Borrower shall
be deemed to have requested a Borrowing of Base Rate Loans to be disbursed on the Honor Date
in an amount equal to the Unreimbursed Amount, without regard to the minimum and multiples
specified in Section 2.02 for the principal amount of Base Rate Loans, but subject
to the conditions set forth in Section 5.02 (other than the delivery of a Loan
Notice) and provided that, after giving effect to such Borrowing, the Total Revolving
Outstandings shall not exceed the Aggregate Revolving Commitments. Any notice given by the
L/C Issuer or the Administrative Agent pursuant to this
Section 2.03(c)(i) may be given by telephone if immediately confirmed in
writing; provided that the lack of such an immediate confirmation shall not affect
the conclusiveness or binding effect of such notice.

 

31

 

(ii) Each Lender shall upon any notice pursuant to Section 2.03(c)(i) make
funds available (and the Administrative Agent may apply Cash Collateral provided for this
purpose) for the account of the L/C Issuer at the Administrative Agent’s Office in an amount
equal to its Applicable Percentage of the Unreimbursed Amount not later than 1:00 p.m. on
the Business Day specified in such notice by the Administrative Agent, whereupon, subject to
the provisions of Section 2.03(c)(iii), each Lender that so makes funds available
shall be deemed to have made a Base Rate Loan to the applicable Borrower in such amount.
The Administrative Agent shall remit the funds so received to the L/C Issuer.

(iii) With respect to any Unreimbursed Amount that is not fully refinanced by a
Borrowing of Base Rate Loans because the conditions set forth in Section 5.02 cannot
be satisfied or for any other reason, the applicable Borrower shall be deemed to have
incurred from the L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that
is not so refinanced, which L/C Borrowing shall be due and payable on demand (together with
interest) and shall bear interest at the Default Rate. In such event, each Lender’s payment
to the Administrative Agent for the account of the L/C Issuer pursuant to Section
2.03(c)(ii) shall be deemed payment in respect of its participation in such L/C
Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its
participation obligation under this Section 2.03.

(iv) Until each Lender funds its Revolving Loan or L/C Advance pursuant to this
Section 2.03(c) to reimburse the L/C Issuer for any amount drawn under any Letter of
Credit, interest in respect of such Lender’s Applicable Percentage of such amount shall be
solely for the account of the L/C Issuer.

(v) Each Lender’s obligation to make Revolving Loans or L/C Advances to reimburse the
L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section
2.03(c), shall be absolute and unconditional and shall not be affected by any
circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right
which such Lender may have against the L/C Issuer, any Borrower or any other Person for any
reason whatsoever; (B) the occurrence or continuance of a Default, or (C) any other
occurrence, event or condition, whether or not similar to any of the foregoing;
provided, however, that each Lender’s obligation to make Revolving Loans
pursuant to this Section 2.03(c) is subject to the conditions set forth in
Section 5.02 (other than delivery by a Borrower of a Loan Notice). No such making
of an L/C Advance shall relieve or otherwise impair the obligation of a Borrower to
reimburse the L/C Issuer for the amount of any payment made by the L/C Issuer under any
Letter of Credit, together with interest as provided herein.

(vi) If any Lender fails to make available to the Administrative Agent for the account
of the L/C Issuer any amount required to be paid by such Lender pursuant to the foregoing
provisions of this Section 2.03(c) by the time specified in Section
2.03(c)(ii), then, without limiting the other provisions of this Agreement, the L/C
Issuer shall be entitled to recover from such Lender (acting through the Administrative
Agent), on demand, such amount with interest thereon for the period from the date such
payment is required to the date on which such payment is immediately available to the L/C
Issuer at a rate per annum equal to the greater of the Federal Funds Rate and a rate
determined by the L/C Issuer in accordance with banking industry rules on interbank
compensation, plus any administrative, processing or similar fees customarily charged by the
L/C Issuer in connection with the foregoing. If such Lender pays such amount (with
interest and fees as aforesaid), the amount so paid shall constitute such Lender’s
Revolving Loan included in the relevant Borrowing or L/C Advance in respect of the relevant
L/C Borrowing, as the case may be. A certificate of the L/C Issuer submitted to any Lender
(through the Administrative Agent) with respect to any amounts owing under this clause (vi)
shall be conclusive absent manifest error.

 

32

 

(d) Repayment of Participations.

(i) At any time after the L/C Issuer has made a payment under any Letter of Credit and
has received from any Lender such Lender’s L/C Advance in respect of such payment in
accordance with Section 2.03(c), if the Administrative Agent receives for the
account of the L/C Issuer any payment in respect of the related Unreimbursed Amount or
interest thereon (whether directly from a Borrower or otherwise, including proceeds of cash
collateral applied thereto by the Administrative Agent), the Administrative Agent will
distribute to such Lender its Applicable Percentage thereof in the same funds as those
received by the Administrative Agent.

(ii) If any payment received by the Administrative Agent for the account of the L/C
Issuer pursuant to Section 2.03(c)(i) is required to be returned under any of the
circumstances described in Section 11.05 (including pursuant to any settlement
entered into by the L/C Issuer in its discretion), each Lender shall pay to the
Administrative Agent for the account of the L/C Issuer its Applicable Percentage thereof on
demand of the Administrative Agent, plus interest thereon from the date of such demand to
the date such amount is returned by such Lender, at a rate per annum equal to the Federal
Funds Rate from time to time in effect. The obligations of the Lenders under this clause
shall survive the payment in full of the Obligations and the termination of this Agreement.

(e) Obligations Absolute. The obligation of the Borrowers to reimburse the L/C Issuer
for each drawing under each Letter of Credit and to repay each L/C Borrowing shall be absolute,
unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this
Agreement under all circumstances, including the following:

(i) any lack of validity or enforceability of such Letter of Credit, this Agreement or
any other Loan Document;

(ii) the existence of any claim, counterclaim, setoff, defense or other right that any
Loan Party or any Subsidiary may have at any time against any beneficiary or any transferee
of such Letter of Credit (or any Person for whom any such beneficiary or any such transferee
may be acting), the L/C Issuer or any other Person, whether in connection with this
Agreement, the transactions contemplated hereby or by such Letter of Credit or any agreement
or instrument relating thereto, or any unrelated transaction;

(iii) any draft, demand, certificate or other document presented under such Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any
statement therein being untrue or inaccurate in any respect; or any loss or delay in the
transmission or otherwise of any document required in order to make a drawing under such
Letter of Credit;

(iv) any payment by the L/C Issuer under such Letter of Credit against presentation of
a draft or certificate that does not strictly comply with the terms of such Letter of
Credit; or any payment made by the L/C Issuer under such Letter of Credit to any Person
purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of
creditors, liquidator, receiver or other representative of or successor to any beneficiary
or any transferee of such Letter
of Credit, including any arising in connection with any proceeding under any Debtor
Relief Law; or

 

33

 

(v) any other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, including any other circumstance that might otherwise constitute a defense
available to, or a discharge of, any Loan Party or any Subsidiary;

provided, that nothing in this Section 2.03(e) shall be deemed a waiver of the
third and fourth sentences of Section 2.03(f).

The applicable Borrower shall promptly examine a copy of each Letter of Credit and each amendment
thereto that is delivered to it and, in the event of any claim of noncompliance with such
Borrower’s instructions or other irregularity, such Borrower will immediately notify the L/C
Issuer. The Borrowers shall be conclusively deemed to have waived any such claim against the L/C
Issuer and its correspondents unless such notice is given as aforesaid.

(f) Role of L/C Issuer. Each Lender and each Borrower agree that, in paying any
drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any
document (other than any sight draft, certificates and documents expressly required by such Letter
of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the
authority of the Person executing or delivering any such document. None of the L/C Issuer, the
Administrative Agent, any of their respective Related Parties nor any correspondent, participant or
assignee of the L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in
connection herewith at the request or with the approval of the Lenders or the Required Lenders, as
applicable; (ii) any action taken or omitted in the absence of gross negligence or willful
misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document
or instrument related to any Letter of Credit or Issuer Document. The Borrowers hereby assume all
risks of the acts or omissions of any beneficiary or transferee with respect to its use of any
Letter of Credit; provided, however, that this assumption is not intended to, and
shall not, preclude a Borrower’s pursuing such rights and remedies as it may have against the
beneficiary or transferee at law or under any other agreement. None of the L/C Issuer, the
Administrative Agent, any of their respective Related Parties nor any correspondent, participant or
assignee of the L/C Issuer shall be liable or responsible for any of the matters described in
clauses (i) through (v) of Section 2.03(e); provided, however, that
anything in such clauses to the contrary notwithstanding, a Borrower may have a claim against the
L/C Issuer, and the L/C Issuer may be liable to such Borrower, to the extent, but only to the
extent, of any direct, as opposed to consequential or exemplary, damages suffered by such Borrower
which were caused by the L/C Issuer’s willful misconduct or gross negligence or the L/C Issuer’s
willful failure to pay under any Letter of Credit after the presentation to it by the beneficiary
of a sight draft and certificate(s) strictly complying with the terms and conditions of a Letter of
Credit. In furtherance and not in limitation of the foregoing, the L/C Issuer may accept documents
that appear on their face to be in order, without responsibility for further investigation,
regardless of any notice or information to the contrary, and the L/C Issuer shall not be
responsible for the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or
proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason.

(g) Applicability of ISP and UCP. Unless otherwise expressly agreed by the L/C Issuer
and the Borrower when a Letter of Credit is issued (including any such agreement applicable to an
Existing Letter of Credit), (i) the rules of the ISP shall apply to each standby Letter of Credit,
and (ii) the rules of the Uniform Customs and Practice for Documentary Credits, as most recently
published by the International Chamber of Commerce at the time of issuance shall apply to each
commercial Letter of Credit.

 

34

 

(h) Letter of Credit Fees. The Borrowers shall pay to the Administrative Agent for
the account of each Lender in accordance with its Applicable Percentage a Letter of Credit fee (the
“Letter of Credit Fee”) for each Letter of Credit equal to the Applicable Rate
times the daily amount available to be drawn under such Letter of Credit; provided,
however, any Letter of Credit Fees otherwise payable for the account of a Defaulting Lender
with respect to any Letter of Credit as to which such Defaulting Lender has not provided Cash
Collateral satisfactory to the L/C Issuer pursuant to this Section 2.03 shall be payable,
to the maximum extent permitted by applicable Law, to the other Lenders in accordance with the
upward adjustments in their respective Applicable Percentages allocable to such Letter of Credit
pursuant to Section 2.15(a)(iv), with the balance of such fee, if any, payable to the L/C
Issuer for its own account. For purposes of computing the daily amount available to be drawn under
any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with
Section 1.06. Letter of Credit Fees shall be (i) due and payable on the first Business Day
after the end of each March, June, September and December, commencing with the first such date to
occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and
thereafter on demand and (ii) computed on a quarterly basis in arrears. If there is any change in
the Applicable Rate during any quarter, the daily amount available to be drawn under each Letter of
Credit shall be computed and multiplied by the Applicable Rate separately for each period during
such quarter that such Applicable Rate was in effect. Notwithstanding anything to the contrary
contained herein, upon the request of the Required Lenders and prior notice to the Parent, while
any Event of Default exists, all Letter of Credit Fees shall accrue at the Default Rate.

(i) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer. The
Borrowers shall pay directly to the L/C Issuer for its own account a fronting fee (i) with respect
to each commercial Letter of Credit, at the rate specified in the Fee Letter, computed on the
amount of such Letter of Credit, and payable upon the issuance thereof, (ii) with respect to any
amendment of a commercial Letter of Credit increasing the amount of such Letter of Credit, at a
rate separately agreed between the Borrower and the L/C Issuer, computed on the amount of such
increase, and payable upon the effectiveness of such amendment, and (iii) with respect to each
standby Letter of Credit, at the rate per annum specified in the Fee Letter, computed on the daily
amount available to be drawn under such Letter of Credit and on a quarterly basis in arrears. Such
fronting fee shall be due and payable on the tenth Business Day after the end of each March, June,
September and December in respect of the most recently-ended quarterly period (or portion thereof,
in the case of the first payment), commencing with the first such date to occur after the issuance
of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand. For
purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount
of such Letter of Credit shall be determined in accordance with Section 1.06. In addition,
the Borrowers shall pay directly to the L/C Issuer for its own account the customary issuance,
presentation, amendment and other processing fees, and other standard costs and charges, of the L/C
Issuer relating to letters of credit as from time to time in effect. Such customary fees and
standard costs and charges are due and payable on demand and are nonrefundable.

(j) Conflict with Issuer Documents. In the event of any conflict between the terms
hereof and the terms of any Issuer Document, the terms hereof shall control.

(k) Letters of Credit Issued for Subsidiaries. Notwithstanding that a Letter of
Credit issued or outstanding hereunder is in support of any obligations of, or is for the account
of, a Subsidiary, the Borrowers shall be obligated to reimburse the L/C Issuer hereunder for any
and all drawings under such Letter of Credit. The Borrowers hereby acknowledge that the issuance
of Letters of Credit for the account of Subsidiaries inures to the benefit of the Borrowers, and
that the Borrowers’ business derives substantial benefits from the businesses of such Subsidiaries.

 

35

 

2.04 Swing Line Loans.

(a) Swing Line Facility. Subject to the terms and conditions set forth herein, the
Swing Line Lender, in reliance upon the agreements of the other Lenders set forth in this
Section 2.04, shall (or, if there is a Defaulting Lender, may in its sole discretion) at
the Parent’s or a Borrower’s request in accordance with this Section 2.04 make loans (each
such loan, a “Swing Line Loan”) to the Borrowers in Dollars from time to time on any
Business Day during the Availability Period in an aggregate amount not to exceed at any time
outstanding the amount of the Swing Line Sublimit, notwithstanding the fact that such Swing Line
Loans, when aggregated with the Applicable Percentage of the Outstanding Amount of Revolving Loans
and L/C Obligations of the Lender acting as Swing Line Lender, may exceed the amount of such
Lender’s Revolving Commitment; provided, however, that after giving effect to any
Swing Line Loan, (i) the Total Revolving Outstandings shall not exceed the Aggregate Revolving
Commitments, and (ii) the aggregate Outstanding Amount of the Revolving Loans of any Lender,
plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations,
plus such Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans
shall not exceed such Lender’s Revolving Commitment, and provided, further, that
the Borrowers shall not use the proceeds of any Swing Line Loan to refinance any outstanding Swing
Line Loan. Within the foregoing limits, and subject to the other terms and conditions hereof, the
Borrowers may borrow under this Section 2.04, prepay under Section 2.05, and
reborrow under this Section 2.04. Each Swing Line Loan shall bear interest only at a rate
based on the Base Rate. Immediately upon the making of a Swing Line Loan, each Lender shall be
deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Swing Line
Lender a risk participation in such Swing Line Loan in an amount equal to the product of such
Lender’s Applicable Percentage times the amount of such Swing Line Loan.

(b) Borrowing Procedures. Each Borrowing of Swing Line Loans shall be made upon a
Borrower’s irrevocable notice to the Swing Line Lender and the Administrative Agent, which may be
given by telephone. Each such notice must be received by the Swing Line Lender and the
Administrative Agent not later than 1:00 p.m. on the requested borrowing date, and shall specify
(i) the amount to be borrowed, which shall be a minimum principal amount of $100,000 and integral
multiples of $100,000 in excess thereof, and (ii) the requested borrowing date, which shall be a
Business Day. Each such telephonic notice must be confirmed promptly by delivery to the Swing Line
Lender and the Administrative Agent of a written Swing Line Loan Notice, appropriately completed
and signed by a Responsible Officer of the applicable Borrower. Promptly after receipt by the
Swing Line Lender of any telephonic Swing Line Loan Notice, the Swing Line Lender will confirm with
the Administrative Agent (by telephone or in writing) that the Administrative Agent has also
received such Swing Line Loan Notice and, if not, the Swing Line Lender will notify the
Administrative Agent (by telephone or in writing) of the contents thereof. Unless the Swing Line
Lender has received notice (by telephone or in writing) from the Administrative Agent (including at
the request of any Lender) prior to 2:00 p.m. on the date of the proposed Borrowing of Swing Line
Loans (A) directing the Swing Line Lender not to make such Swing Line Loan as a result of the
limitations set forth in the first proviso to the first sentence of Section 2.04(a), or (B)
that one or more of the applicable conditions specified in Article V is not then satisfied
or waived, then, subject to the terms and conditions hereof, the Swing Line Lender will, not later
than 3:00 p.m. on the borrowing date specified in such Swing Line Loan Notice, make the amount of
its Swing Line Loan available to the applicable Borrower.

 

36

 

(c) Refinancing of Swing Line Loans.

(i) The Swing Line Lender at any time in its sole and absolute discretion may request,
on behalf of a Borrower (which hereby irrevocably authorizes the Swing Line Lender to so
request on its behalf), that each Lender make a Base Rate Loan in an amount equal to such
Lender’s Applicable Percentage of the amount of Swing Line Loans then outstanding to
refinance the existing Swing Line Loans. Such request shall be made in writing (which
written request shall be deemed to be a Loan Notice for purposes hereof) and in accordance
with the requirements of Section 2.02, without regard to the minimum and multiples
specified therein for the principal amount of Base Rate Loans, but subject to the conditions
set forth in Section 5.02 (other than the delivery of a Loan Notice) and
provided that, after giving effect to such Borrowing, the Total Revolving
Outstandings shall not exceed the Aggregate Revolving Commitments. The Swing Line Lender
shall furnish the applicable Borrower with a copy of the applicable Loan Notice promptly
after delivering such notice to the Administrative Agent. Each Lender shall make an amount
equal to its Applicable Percentage of the amount specified in such Loan Notice available to
the Administrative Agent in immediately available funds (and the Administrative Agent may
apply Cash Collateral available with respect to the applicable Swing Line Loan) for the
account of the Swing Line Lender at the Administrative Agent’s Office not later than 1:00
p.m. on the day specified in such Loan Notice, whereupon, subject to Section
2.04(c)(ii), each Lender that so makes funds available shall be deemed to have made a
Base Rate Loan to the applicable Borrower in such amount. The Administrative Agent shall
remit the funds so received to the Swing Line Lender.

(ii) If for any reason any Swing Line Loan cannot be refinanced by such a Borrowing of
Revolving Loans in accordance with Section 2.04(c)(i), the request for Base Rate
Loans submitted by the Swing Line Lender as set forth herein shall be deemed to be a request
by the Swing Line Lender that each of the Lenders fund its risk participation in the
relevant Swing Line Loan and each Lender’s payment to the Administrative Agent for the
account of the Swing Line Lender pursuant to Section 2.04(c)(i) shall be deemed
payment in respect of such participation.

(iii) If any Lender fails to make available to the Administrative Agent for the account
of the Swing Line Lender any amount required to be paid by such Lender pursuant to the
foregoing provisions of this Section 2.04(c) by the time specified in Section
2.04(c)(i), the Swing Line Lender shall be entitled to recover from such Lender (acting
through the Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment is required to the date on which such payment is
immediately available to the Swing Line Lender at a rate per annum equal to the greater of
the Federal Funds Rate and a rate determined by the Swing Line Lender in accordance with
banking industry rules on interbank compensation, plus any administrative, processing or
similar fees customarily charged by the Swing Line Lender in connection with the foregoing.
If such Lender pays such amount (with interest and fees as aforesaid), the amount (excluding
interest and fees as aforesaid) so paid shall constitute such Lender’s Revolving Loan
included in the relevant Borrowing or funded participation in the relevant Swing Line Loan,
as the case may be. A certificate of the Swing Line Lender submitted to any Lender (through
the Administrative Agent) with respect to any amounts owing under this clause (iii) shall be
conclusive absent manifest error.

(iv) Each Lender’s obligation to make Revolving Loans or to purchase and fund risk
participations in Swing Line Loans pursuant to this Section 2.04(c) shall be
absolute and unconditional and shall not be affected by any circumstance, including (A) any
setoff, counterclaim, recoupment, defense or other right that such Lender may have against
the Swing Line Lender, any Borrower or any other Person for any reason whatsoever, (B) the
occurrence or continuance of a Default, or (C) any other occurrence, event or condition,
whether or not similar to any of the foregoing; provided, however, that each
Lender’s obligation to make Revolving Loans pursuant to this Section 2.04(c) is
subject to the conditions set forth in Section 5.02. No such funding of risk
participations shall relieve or otherwise impair the obligation of the Borrowers to repay
Swing Line Loans, together with interest as provided herein.

 

37

 

(d) Repayment of Participations.

(i) At any time after any Lender has purchased and funded a risk participation in a
Swing Line Loan, if the Swing Line Lender receives any payment on account of such Swing Line
Loan, the Swing Line Lender will distribute to such Lender its Applicable Percentage thereof
in the same funds as those received by the Swing Line Lender.

(ii) If any payment received by the Swing Line Lender in respect of principal or
interest on any Swing Line Loan is required to be returned by the Swing Line Lender under
any of the circumstances described in Section 11.05 (including pursuant to any
settlement entered into by the Swing Line Lender in its discretion), each Lender shall pay
to the Swing Line Lender its Applicable Percentage thereof on demand of the Administrative
Agent, plus interest thereon from the date of such demand to the date such amount is
returned, at a rate per annum equal to the Federal Funds Rate. The Administrative Agent
will make such demand upon the request of the Swing Line Lender. The obligations of the
Lenders under this clause shall survive the payment in full of the Obligations and the
termination of this Agreement.

(e) Interest for Account of Swing Line Lender. The Swing Line Lender shall be
responsible for invoicing the Borrowers for interest on the Swing Line Loans. Until each Lender
funds its Revolving Loans that are Base Rate Loans or risk participation pursuant to this
Section 2.04 to refinance such Lender’s Applicable Percentage of any Swing Line Loan,
interest in respect of such Applicable Percentage shall be solely for the account of the Swing Line
Lender.

(f) Payments Directly to Swing Line Lender. The Borrowers shall make all payments of
principal and interest in respect of the Swing Line Loans directly to the Swing Line Lender.

2.05 Prepayments.

(a) Voluntary Prepayments of Loans.

(i) Revolving Loans. A Borrower may, upon notice from such Borrower to the
Administrative Agent, at any time or from time to time voluntarily prepay Revolving Loans
(without a corresponding commitment reduction) in whole or in part without premium or
penalty; provided that (A) such notice must be received by the Administrative Agent
not later than 12:00 noon on the date of such prepayment and (B) any such prepayment shall
(1) in the case of Eurodollar Rate Loans, be in a principal amount of $500,000 or a whole
multiple of $100,000 in excess thereof or (2) in the case of Base Rate Loans, be in a
principal amount of $100,000 or a whole multiple of $100,000 in excess thereof (or, in each
case, if less, the entire principal amount thereof then outstanding). Each such notice
shall specify the date and amount of such prepayment and the Type(s) of Loans to be prepaid
and, if Eurodollar Rate Loans are to be prepaid, the Interest Period(s) of such Loans. The
Administrative Agent will promptly notify each Lender of its receipt of each such notice,
and of the amount of such Lender’s Applicable Percentage of such prepayment. If such notice
is given by a Borrower, such Borrower shall make such prepayment and the payment amount
specified in such notice shall be due and payable on the date specified therein. Any
prepayment of a Eurodollar Rate Loan shall be accompanied by all accrued interest on the
amount prepaid, together with any additional amounts required pursuant to Section
3.05. Subject to Section 2.15, each such prepayment shall be applied to the
Loans of the Lenders in accordance with their respective Applicable Percentages.

 

38

 

(ii) Swing Line Loans. A Borrower may, upon notice to the Swing Line Lender
(with a copy to the Administrative Agent), at any time or from time to time, voluntarily
prepay Swing Line Loans in whole or in part without premium or penalty; provided
that (i) such notice must be received by the Swing Line Lender and the Administrative Agent
not later than 1:00 p.m. on the date of the prepayment, and (ii) any such prepayment shall
be in a minimum principal amount of $100,000 or a whole multiple of $100,000 in excess
thereof (or, if less, the entire principal thereof then outstanding). Each such notice
shall specify the date and amount of such prepayment. If such notice is given by a
Borrower, such Borrower shall make such prepayment and the payment amount specified in such
notice shall be due and payable on the date specified therein.

(b) Mandatory Prepayments of Loans.

(i) Revolving Commitments. If for any reason the Total Revolving Outstandings
at any time exceed the Aggregate Revolving Commitments then in effect, the Borrowers shall
immediately prepay Revolving Loans and/or Swing Line Loans and/or Cash Collateralize the L/C
Obligations in an aggregate amount equal to such excess; provided, however,
that the Borrowers shall not be required to Cash Collateralize the L/C Obligations pursuant
to this Section 2.05(b)(i) unless after the prepayment in full of the Revolving
Loans and Swing Line Loans the Total Revolving Outstandings exceed the Aggregate Revolving
Commitments then in effect.

(ii) Dispositions related to IP Sub and Sassy Real Estate. The Borrower shall
prepay the Revolving Loans and/or Swing Line Loans and/or Cash Collateralize the L/C
Obligations as hereafter provided in an aggregate amount equal to 100% of the net cash
proceeds received by any Loan Party or any Subsidiary from all Dispositions of any or all of
(1) the assets of the IP Sub, (2) the Equity Interests in IP Sub and (3) the real property
owned by Sassy as of the Closing Date within three (3) Business Days of such Borrower’s
receipt of any such net cash proceeds.

(iii) Application of Mandatory Prepayments. All amounts required to be paid
pursuant to this Section 2.05(b) shall be applied first, ratably to the L/C
Borrowings and the Swing Line Loans, second, to the outstanding Revolving Loans,
and, third, to Cash Collateralize the remaining L/C Obligations.

Within the parameters of the applications set forth above, prepayments shall be applied
first to Base Rate Loans and then to Eurodollar Rate Loans in direct order of Interest
Period maturities. All prepayments under this Section 2.05(b) shall be subject to
Section 3.05, but otherwise without premium or penalty, and shall be accompanied by
interest on the principal amount prepaid through the date of prepayment. For the avoidance
of doubt, no mandatory prepayment shall result in a reduction of the Commitments.

2.06 Termination or Reduction of Aggregate Revolving Commitments.

The Parent may, upon notice to the Administrative Agent, terminate the Aggregate Revolving
Commitments, or from time to time permanently reduce the Aggregate Revolving Commitments to an
amount not less than the Total Revolving Outstandings; provided that (i) any such notice
shall be received by the Administrative Agent not later than three Business Days prior to the date
of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of
$1,000,000 or any whole multiple of $1,000,000 in excess thereof and (iii) if, after giving effect
to any reduction of the Aggregate Revolving Commitments, the Letter of Credit Sublimit or the Swing
Line Sublimit exceeds the amount of the Aggregate Revolving Commitments, such sublimit shall be
automatically reduced by the amount of such excess. The Administrative Agent will promptly notify
the Lenders of any such notice of
termination or reduction of the Aggregate Revolving Commitments. Any reduction of the
Aggregate Revolving Commitments shall be applied to the Revolving Commitment of each Lender
according to its Applicable Percentage. All fees accrued with respect thereto until the effective
date of any termination of the Aggregate Revolving Commitments shall be paid on the effective date
of such termination.

 

39

 

2.07 Repayment of Loans.

(a) Revolving Loans. The Borrowers shall repay to the Lenders on the Maturity Date
the aggregate principal amount of all Revolving Loans outstanding on such date.

(b) Swing Line Loans. The Borrowers shall repay each Swing Line Loan on the Maturity
Date.

2.08 Interest.

(a) Subject to the provisions of subsection (b) below, (i) each Eurodollar Rate Loan shall
bear interest on the outstanding principal amount thereof for each Interest Period at a rate per
annum equal to the sum of the Eurodollar Rate for such Interest Period plus the Applicable
Rate; (ii) each Base Rate Loan shall bear interest on the outstanding principal amount thereof from
the applicable borrowing date at a rate per annum equal to the sum of the Base Rate plus
the Applicable Rate; and (iii) each Swing Line Loan shall bear interest on the outstanding
principal amount thereof from the applicable borrowing date at a rate per annum equal to the sum of
the Base Rate plus the Applicable Rate.

(b) (i) If any amount of principal of any Loan is not paid when due (without regard to any
applicable grace periods), whether at stated maturity, by acceleration or otherwise, such amount
until paid shall thereafter bear interest at a fluctuating interest rate per annum at all times
equal to the Default Rate to the fullest extent permitted by applicable Laws.

(ii) If any amount (other than principal of any Loan) payable by the Borrowers under
any Loan Document is not paid when due (after giving effect to any applicable grace
periods), whether at stated maturity, by acceleration or otherwise, then upon the request of
the Required Lenders and prior written notice to the Parent, such amount until paid shall
thereafter bear interest at a fluctuating interest rate per annum at all times equal to the
Default Rate to the fullest extent permitted by applicable Laws.

(iii) Upon the request of the Required Lenders and prior written notice to the Parent,
while any Event of Default exists, the Borrowers shall pay interest on the principal amount
of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all
times equal to the Default Rate to the fullest extent permitted by applicable Laws.

(iv) Accrued and unpaid interest on past due amounts (including interest on past due
interest) shall be due and payable upon demand.

(c) Interest on each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein. Interest hereunder shall be
due and payable in accordance with the terms hereof before and after judgment, and before and after
the commencement of any proceeding under any Debtor Relief Law.

 

40

 

2.09 Fees.

In addition to certain fees described in subsections (h) and (i) of Section 2.03:

(a) Commitment Fee. The Borrowers shall pay to the Administrative Agent, for the
account of each Lender in accordance with its Applicable Percentage, a commitment fee equal to the
product of (i) the Applicable Rate times (ii) the actual daily amount by which the
Aggregate Revolving Commitments exceed the sum of (y) the Outstanding Amount of Revolving Loans and
(z) the Outstanding Amount of L/C Obligations, subject to adjustment as provided in Section
2.15. The commitment fee shall accrue at all times during the Availability Period, including at
any time during which one or more of the conditions in Article V is not met, and shall be
due and payable quarterly in arrears on the last Business Day of each March, June, September and
December, commencing with the first such date to occur after the Closing Date, and on the last day
of the Availability Period. The commitment fee shall be calculated quarterly in arrears, and if
there is any change in the Applicable Rate during any quarter, the actual daily amount shall be
computed and multiplied by the Applicable Rate separately (but without duplication) for each period
during such quarter that such Applicable Rate was in effect. For purposes of clarification, Swing
Line Loans shall not be considered outstanding for purposes of determining the unused portion of
the Aggregate Revolving Commitments.

(b) Fee Letter. The Borrowers shall pay to the Arranger and the Administrative Agent
for their own respective accounts fees in the amounts and at the times specified in the Fee Letter.
Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

2.10 Computation of Interest and Fees; Retroactive Adjustments of Applicable Rate.

(a) All computations of interest for Base Rate Loans (including Base Rate Loans determined by
reference to the Eurodollar Base Rate) shall be made on the basis of a year of 365 or 366 days, as
the case may be, and actual days elapsed. All other computations of fees and interest shall be
made on the basis of a 360-day year and actual days elapsed (which results in more fees or
interest, as applicable, being paid than if computed on the basis of a 365-day year). Interest
shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or
any portion thereof, for the day on which the Loan or such portion is paid, provided that
any Loan that is repaid on the same day on which it is made shall, subject to Section
2.12(a), bear interest for one day. Each determination by the Administrative Agent of an
interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest
error.

(b) If, as a result of any restatement of or other adjustment to the financial statements of
the Parent or for any other reason, the Parent or the Lenders (after consultation with the Parent
and with calculations supporting such determination) determine that (i) the Consolidated Leverage
Ratio as calculated by the Parent as of any applicable date was inaccurate and (ii) a proper
calculation of the Consolidated Leverage Ratio would have resulted in higher pricing for such
period, the Borrowers shall immediately and retroactively be obligated to pay to the Administrative
Agent for the account of the applicable Lenders or the L/C Issuer, as the case may be, promptly on
demand by the Administrative Agent (or, after the occurrence of an actual or deemed entry of an
order for relief with respect to a Borrower under the Bankruptcy Code of the United States,
automatically and without further action by the Administrative Agent, any Lender or the L/C
Issuer), an amount equal to the excess of the amount of interest and fees that should have been
paid for such period over the amount of interest and fees actually paid for such period. This
paragraph shall not limit the rights of the Administrative Agent, any Lender or the L/C Issuer, as
the case may be, under Section 2.03(c)(iii), 2.03(h) or 2.08(b) or under
Article IX. The Borrowers’ obligations under this paragraph shall survive the termination
of the Aggregate Revolving Commitments and the repayment of all other Obligations hereunder.

 

41

 

2.11 Evidence of Debt.

(a) The Credit Extensions made by each Lender shall be evidenced by one or more accounts or
records maintained by such Lender and by the Administrative Agent in the ordinary course of
business. The accounts or records maintained by the Administrative Agent and each Lender shall be
conclusive absent manifest error of the amount of the Credit Extensions made by the Lenders to the
Borrowers and the interest and payments thereon. Any failure to so record or any error in doing so
shall not, however, limit or otherwise affect the obligation of the Borrowers hereunder to pay any
amount owing with respect to the Obligations. In the event of any conflict between the accounts
and records maintained by any Lender and the accounts and records of the Administrative Agent in
respect of such matters, the accounts and records of the Administrative Agent shall control in the
absence of manifest error. Upon the request of any Lender made through the Administrative Agent,
the Borrowers shall execute and deliver to such Lender (through the Administrative Agent) a
promissory note, which shall evidence such Lender’s Loans in addition to such accounts or records.
Each such promissory note shall be in the form of Exhibit 2.11(a) (a “Note”). Each
Lender may attach schedules to its Note and endorse thereon the date, Type (if applicable), amount
and maturity of its Loans and payments with respect thereto.

(b) In addition to the accounts and records referred to in subsection (a), each Lender and the
Administrative Agent shall maintain in accordance with its usual practice accounts or records
evidencing the purchases and sales by such Lender of participations in Letters of Credit and Swing
Line Loans. In the event of any conflict between the accounts and records maintained by the
Administrative Agent and the accounts and records of any Lender in respect of such matters, the
accounts and records of the Administrative Agent shall control in the absence of manifest error.

2.12 Payments Generally; Administrative Agent’s Clawback.

(a) General. All payments to be made by the Borrowers shall be made without condition
or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly
provided herein, all payments by the Borrowers hereunder shall be made to the Administrative Agent,
for the account of the respective Lenders to which such payment is owed, at the Administrative
Agent’s Office in Dollars and in immediately available funds not later than 2:00 p.m. on the date
specified herein. The Administrative Agent will promptly distribute to each Lender its Applicable
Percentage (or other applicable share as provided herein) of such payment in like funds as received
by wire transfer to such Lender’s Lending Office. All payments received by the Administrative
Agent after 2:00 p.m. shall be deemed received on the next succeeding Business Day and any
applicable interest or fee shall continue to accrue. If any payment to be made by a Borrower shall
come due on a day other than a Business Day, payment shall be made on the next following Business
Day, and such extension of time shall be reflected in computing interest or fees, as the case may
be.

(b) (i) Funding by Lenders; Presumption by Administrative Agent. Unless the
Administrative Agent shall have received notice from a Lender prior to the proposed date of
any Borrowing of Eurodollar Rate Loans (or, in the case of any Borrowing of Base Rate Loans,
prior to 12:00 noon on the date of such Borrowing) that such Lender will not make available
to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent
may assume that such Lender has made such share available on such date in accordance with
Section 2.02 (or, in the case of a Borrowing of Base Rate Loans, that such Lender
has made such share available in accordance with and at the time required by Section
2.02) and may, in reliance upon such assumption, make available to the applicable
Borrower a corresponding amount. In such event, if a Lender has not in fact made its share
of the applicable Borrowing available to the Administrative Agent, then the applicable
Lender and the Borrowers

 

42

 

severally agree to pay to the Administrative Agent forthwith on
demand such corresponding amount in immediately available
funds with interest thereon, for each day from and including the date such amount is made
available to the applicable Borrower to but excluding the date of payment to the
Administrative Agent, at (A) in the case of a payment to be made by such Lender, the greater
of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance
with banking industry rules on interbank compensation, plus any administrative, processing
or similar fees customarily charged by the Administrative Agent in connection with the
foregoing, and (B) in the case of a payment to be made by the Borrowers, the interest rate
otherwise applicable to such Borrowing. If the Borrowers and such Lender shall pay such
interest to the Administrative Agent for the same or an overlapping period, the
Administrative Agent shall promptly remit to the Borrowers the amount of such interest paid
by the Borrowers for such period. If such Lender pays its share of the applicable Borrowing
to the Administrative Agent, then the amount so paid shall constitute such Lender’s Loan
included in such Borrowing. Any payment by the Borrowers shall be without prejudice to any
claim the Borrowers may have against a Lender that shall have failed to make such payment to
the Administrative Agent.

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

A notice of the Administrative Agent to any Lender or any Borrower with respect to any amount
owing under this subsection (b) shall be conclusive, absent manifest error.

(c) Failure to Satisfy Conditions Precedent. If any Lender makes available to the
Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing
provisions of this Article II, and such funds are not made available to the applicable
Borrower by the Administrative Agent because the conditions to the applicable Credit Extension set
forth in Article V are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from such Lender) to such
Lender, without interest.

(d) Obligations of Lenders Several. The obligations of the Lenders hereunder to make
Loans, to fund participations in Letters of Credit and Swing Line Loans and to make payments
pursuant to Section 11.04(c) are several and not joint. The failure of any Lender to make
any Loan, to fund any such participation or to make any payment under Section 11.04(c) on
any date required hereunder shall not relieve any other Lender of its corresponding obligation to
do so on such date, and no Lender shall be responsible for the failure of any other Lender to so
make its Loan, to purchase its participation or to make its payment under Section 11.04(c).

(e) Funding Source. Nothing herein shall be deemed to obligate any Lender to obtain
the funds for any Loan in any particular place or manner or to constitute a representation by any
Lender that it has obtained or will obtain the funds for any Loan in any particular place or
manner.

 

43

 

(f) Insufficient Funds. If at any time insufficient funds are received by and
available to the Administrative Agent to pay fully all amounts of principal, L/C Borrowings,
interest and fees then due hereunder, such funds shall be applied (i) first, toward payment
of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance
with the amounts of interest and fees then due to such parties, and (ii) second, toward
payment of principal and L/C Borrowings then due hereunder, ratably among the parties entitled
thereto in accordance with the amounts of principal and L/C Borrowings then due to such parties.

2.13 Sharing of Payments by Lenders.

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

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

(ii) the provisions of this Section shall not be construed to apply to (A) any payment
made by or on behalf of any Borrower pursuant to and in accordance with the express terms of
this Agreement (including the application of funds arising from the existence of a
Defaulting Lender), (B) the application of Cash Collateral provided for in Section
2.14, or (C) any payment obtained by a Lender as consideration for the assignment of or
sale of a participation in any of its Loans or subparticipations in L/C Obligations or Swing
Line Loans to any assignee or participant, other than an assignment to any Loan Party or any
Subsidiary thereof (as to which the provisions of this Section shall apply).

Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so
under applicable Law, that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against such Loan Party rights of setoff and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of such Loan Party in the
amount of such participation.

2.14 Cash Collateral.

(a) Certain Credit Support Events. Upon the request of the Administrative Agent or
the L/C Issuer (i) if the L/C Issuer has honored any full or partial drawing request under any
Letter of Credit and such drawing has resulted in an L/C Borrowing, or (ii) if, as of the Letter of
Credit Expiration Date, any L/C Obligation for any reason remains outstanding, the Borrowers shall,
in each case, immediately Cash Collateralize the then Outstanding Amount of all L/C Obligations.
At any time that there shall exist a Defaulting Lender, immediately upon the request of the
Administrative Agent, the L/C Issuer or the Swing Line Lender, the Borrowers shall deliver to the
Administrative Agent Cash Collateral in an amount sufficient to cover all Fronting Exposure (after
giving effect to Section 2.15(a)(iv) and any Cash Collateral provided by the Defaulting
Lender).

 

44

 

(b) Grant of Security Interest. All Cash Collateral (other than credit support not
constituting funds subject to deposit) shall be maintained in blocked, non-interest bearing deposit
accounts at Bank of America. Each Borrower, and to the extent provided by any Lender, such Lender,
hereby grants to (and subjects to the control of) the Administrative Agent, for the benefit of the
Administrative Agent, the L/C Issuer and the Lenders (including the Swing Line Lender), and agrees
to maintain, a first priority security interest in all such cash, deposit accounts and all balances
therein, and all other property so provided as collateral pursuant hereto, and in all proceeds of
the foregoing, all as security for the obligations to which such Cash Collateral may be applied
pursuant to Section 2.14(c). If at any time the Administrative Agent determines that Cash
Collateral is subject to any right or claim of any Person other than the Administrative Agent as
herein provided, or that the total amount of such Cash Collateral is less than the applicable
Fronting Exposure and other obligations secured thereby, the Borrowers or the relevant Defaulting
Lender will, promptly upon demand by the Administrative Agent, pay or provide to the Administrative
Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency.

(c) Application. Notwithstanding anything to the contrary contained in this
Agreement, Cash Collateral provided under any of this Section 2.14 or Sections
2.03, 2.04, 2.05, 2.15 or 9.02 in respect of Letters of Credit
or Swing Line Loans shall be held and applied to the satisfaction of the specific L/C Obligations,
Swing Line Loans, obligations to fund participations therein (including, as to Cash Collateral
provided by a Defaulting Lender, any interest accrued on such obligation) and other obligations for
which the Cash Collateral was so provided, prior to any other application of such property as may
be provided for herein.

(d) Release. Cash Collateral (or the appropriate portion thereof) provided to reduce
Fronting Exposure or other obligations shall be released promptly following (i) the elimination of
the applicable Fronting Exposure or other obligations giving rise thereto (including by the
termination of Defaulting Lender status of the applicable Lender (or, as appropriate, its assignee
following compliance with Section 11.06(b)(vi))) or (ii) the Administrative Agent’s good
faith determination that there exists excess Cash Collateral; provided, however,
(x) that Cash Collateral furnished by or on behalf of a Loan Party shall not be released during the
continuance of a Default or Event of Default (and following application as provided in this
Section 2.14 may be otherwise applied in accordance with Section 9.03), and (y) the
Person providing Cash Collateral and the L/C Issuer or Swing Line Lender, as applicable, may agree
that Cash Collateral shall not be released but instead held to support future anticipated Fronting
Exposure or other obligations.

2.15 Defaulting Lenders.

(a) Adjustments. Notwithstanding anything to the contrary contained in this
Agreement, if any Lender becomes a Defaulting Lender, then, until such time as that Lender is no
longer a Defaulting Lender, to the extent permitted by applicable Law:

(i) Waivers and Amendments. That Defaulting Lender’s right to approve or
disapprove any amendment, waiver or consent with respect to this Agreement shall be
restricted as set forth in Section 11.01.

 

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(ii) Reallocation of Payments. Any payment of principal, interest, fees or
other amounts received by the Administrative Agent for the account of that Defaulting Lender
(whether voluntary or mandatory, at maturity, pursuant to Article IX or otherwise,
and including any amounts made available to the Administrative Agent by that Defaulting
Lender pursuant to Section 11.08), shall be applied at such time or times as may be
determined by the Administrative Agent as follows: first, to the payment of any
amounts owing by that Defaulting Lender to the
Administrative Agent hereunder; second, to the payment on a pro rata basis of any
amounts owing by that Defaulting Lender to the L/C Issuer or Swing Line Lender hereunder;
third, if so determined by the Administrative Agent or requested by the L/C Issuer
or Swing Line Lender, to be held as Cash Collateral for future funding obligations of that
Defaulting Lender of any participation in any Swing Line Loan or Letter of Credit;
fourth, as any Borrower may request (so long as no Default exists), to the funding
of any Loan in respect of which that Defaulting Lender has failed to fund its portion
thereof as required by this Agreement, as determined by the Administrative Agent;
fifth, if so determined by the Administrative Agent and the Parent, to be held in a
non-interest bearing deposit account and released in order to satisfy obligations of that
Defaulting Lender to fund Loans under this Agreement; sixth, to the payment of any
amounts owing to the Lenders, the L/C Issuer or Swing Line Lender as a result of any
judgment of a court of competent jurisdiction obtained by any Lender, the L/C Issuer or
Swing Line Lender against that Defaulting Lender as a result of that Defaulting Lender’s
breach of its obligations under this Agreement; seventh, so long as no Default
exists, to the payment of any amounts owing to the Borrowers as a result of any judgment of
a court of competent jurisdiction obtained by the Borrowers against that Defaulting Lender
as a result of that Defaulting Lender’s breach of its obligations under this Agreement; and
eighth, to that Defaulting Lender or as otherwise directed by a court of competent
jurisdiction; provided that if (x) such payment is a payment of the principal amount
of any Loans or L/C Borrowings in respect of which that Defaulting Lender has not fully
funded its appropriate share and (y) such Loans or L/C Borrowings were made at a time when
the conditions set forth in Section 5.02 were satisfied or waived, such payment
shall be applied solely to pay the Loans of, and L/C Borrowings owed to, all non-Defaulting
Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or L/C
Borrowings owed to, that Defaulting Lender. Any payments, prepayments or other amounts paid
or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a
Defaulting Lender or to post Cash Collateral pursuant to this Section 2.15(a)(ii)
shall be deemed paid to and redirected by that Defaulting Lender, and each Lender
irrevocably consents hereto.

(iii) Certain Fees. That Defaulting Lender (x) shall not be entitled to
receive any commitment fee pursuant to Section 2.09(a) for any period during which
that Lender is a Defaulting Lender (and the Borrowers shall not be required to pay any such
fee that otherwise would have been required to have been paid to that Defaulting Lender) and
(y) shall be limited in its right to receive Letter of Credit Fees as provided in
Section 2.03(h).

(iv) Reallocation of Applicable Percentages to Reduce Fronting Exposure.
During any period in which there is a Defaulting Lender, for purposes of computing the
amount of the obligation of each non-Defaulting Lender to acquire, refinance or fund
participations in Letters of Credit or Swing Line Loans pursuant to Sections 2.03
and 2.04, the “Applicable Percentage” of each non-Defaulting Lender shall be
computed without giving effect to the Revolving Commitment of that Defaulting Lender;
provided, that, the aggregate obligation of each non-Defaulting Lender to acquire,
refinance or fund participations in Letters of Credit and Swing Line Loans shall not exceed
the positive difference, if any, of (1) the Revolving Commitment of that non-Defaulting
Lender minus (2) the aggregate Outstanding Amount of the Revolving Loans of that
Lender.

(b) Defaulting Lender Cure. If the Parent, the Administrative Agent, the Swing Line
Lender and the L/C Issuer agree in writing in their sole discretion that a Defaulting Lender should
no longer be deemed to be a Defaulting Lender, the Administrative Agent will so notify the parties
hereto, whereupon as of the effective date specified in such notice and subject to any conditions
set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender
will, to the extent applicable, purchase that portion of outstanding Loans of the other Lenders or
take such other actions as the
Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded
participations in Letters of Credit and Swing Line Loans to be held on a pro rata basis by the
Lenders in accordance with their Applicable Percentages (without giving effect to Section
2.15(a)(iv)), whereupon that Lender will cease to be a Defaulting Lender; provided that
no adjustments will be made retroactively with respect to fees accrued or payments made by or on
behalf of any Borrower while that Lender was a Defaulting Lender; and provided,
further, that except to the extent otherwise expressly agreed by the affected parties, no
change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim
of any party hereunder arising from that Lender’s having been a Defaulting Lender.

 

46

 

2.16 Parent as Agent.

Each Subsidiary of the Parent that is or becomes a “Borrower” pursuant to this Agreement
hereby irrevocably appoints the Parent as its agent for all purposes relevant to this Agreement and
each of the other Loan Documents, including (i) the giving and receipt of notices, (ii) the
execution and delivery of all documents, instruments and certificates contemplated herein and all
modifications hereto, and (iii) the receipt of the proceeds of any Loans made by the Lenders, to
any such Borrower hereunder. Any acknowledgment, consent, direction, certification or other action
which might otherwise be valid or effective only if given or taken by all Borrowers, or by each
Borrower acting singly, shall be valid and effective if given or taken only by the Parent, whether
or not any such other Borrower joins therein. Any notice, demand, consent, acknowledgement,
direction, certification or other communication delivered to the Parent in accordance with the
terms of this Agreement shall be deemed to have been delivered to each Borrower; provided
that if such communication is directed to a specific Borrower, it shall indicate to which Borrower
it is directed.

ARTICLE III

TAXES, YIELD PROTECTION AND ILLEGALITY

3.01 Taxes.

(a) Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes. (i)
Any and all payments by or on account of any obligation of the Loan Parties hereunder or under any
other Loan Document shall to the extent permitted by applicable Laws be made free and clear of and
without reduction or withholding for any Taxes. If, however, applicable Laws require any Loan
Party or the Administrative Agent to withhold or deduct any Tax, such Tax shall be withheld or
deducted in accordance with such Laws as determined by such Loan Party or the Administrative Agent,
as the case may be, upon the basis of the information and documentation to be delivered pursuant to
subsection (e) below.

(ii) If the Loan Parties or the Administrative Agent shall be required by the Internal
Revenue Code to withhold or deduct any Taxes from any payment, then (A) the Administrative
Agent shall withhold or make such deductions as are determined by the Administrative Agent
to be required based upon the information and documentation it has received pursuant to
subsection (e) below, (B) the Administrative Agent shall timely pay the full amount withheld
or deducted to the relevant Governmental Authority in accordance with the Internal Revenue
Code, and (C) to the extent that the withholding or deduction is made on account of
Indemnified Taxes or Other Taxes, the sum payable by the Loan Parties shall be increased as
necessary so that after any required withholding or the making of all required deductions
(including deductions applicable to additional sums payable under this Section) the
Administrative Agent, any Lender or the L/C
Issuer, as the case may be, receives an amount equal to the sum it would have received
had no such withholding or deduction been made.

 

47

 

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

(c) Tax Indemnification. (i) Without limiting the provisions of subsection (a) or (b)
above, the Loan Parties shall, and do hereby, indemnify the Administrative Agent, each Lender and
the L/C Issuer, and shall make payment in respect thereof within ten days after demand therefor,
for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other
Taxes imposed or asserted on or attributable to amounts payable under this Section) withheld or
deducted by the Loan Parties or the Administrative Agent or paid by the Administrative Agent, such
Lender or the L/C Issuer, as the case may be, and any penalties, interest and reasonable expenses
arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes
were correctly or legally imposed or asserted by the relevant Governmental Authority. The Loan
Parties shall also, and do hereby, indemnify the Administrative Agent, and shall make payment in
respect thereof within ten days after demand therefor, for any amount which a Lender or the L/C
Issuer for any reason fails to pay indefeasibly to the Administrative Agent as required by clause
(ii) of this subsection. A certificate as to the amount of any such payment or liability delivered
to the Parent by a Lender or the L/C Issuer (with a copy to the Administrative Agent), or by the
Administrative Agent on its own behalf or on behalf of a Lender or the L/C Issuer, shall be
conclusive absent manifest error.

(ii) Without limiting the provisions of subsection (a) or (b) above, each Lender and
the L/C Issuer shall, and does hereby, indemnify the Loan Parties and the Administrative
Agent, and shall make payment in respect thereof within ten days after demand therefor,
against any and all Taxes and any and all related losses, claims, liabilities, penalties,
interest and expenses (including the fees, charges and disbursements of any counsel for the
Borrowers or the Administrative Agent) incurred by or asserted against any Borrower or the
Administrative Agent by any Governmental Authority as a result of the failure by such Lender
or the L/C Issuer, as the case may be, to deliver, or as a result of the inaccuracy,
inadequacy or deficiency of, any documentation required to be delivered by such Lender or
the L/C Issuer, as the case may be, to the Parent or the Administrative Agent pursuant to
subsection (e). Each Lender and the L/C Issuer hereby authorizes the Administrative Agent
to set off and apply any and all amounts at any time owing to such Lender or the L/C Issuer,
as the case may be, under this Agreement or any other Loan Document against any amount due
to the Administrative Agent under this clause (ii). The agreements in this clause (ii)
shall survive the resignation and/or replacement of the Administrative Agent, any assignment
of rights by, or the replacement of, a Lender or the L/C Issuer, the termination of the
Commitments and the repayment, satisfaction or discharge of all other Obligations.

(d) Evidence of Payments. Upon request by any Loan Party or the Administrative Agent,
as the case may be, after any payment of Taxes by such Loan Party or by the Administrative Agent to
a Governmental Authority as provided in this Section 3.01, such Loan Party shall deliver to
the Administrative Agent or the Administrative Agent shall deliver to such Loan Party, as the case
may be, the original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of any return required by Law to report such payment or other
evidence of such payment reasonably satisfactory to such Loan Party or the Administrative Agent, as
the case may be.

 

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(e) Status of Lenders; Tax Documentation. (i) Each Lender shall deliver to the Parent
and to the Administrative Agent, at the time or times prescribed by applicable Laws or when
reasonably
requested by the Parent or the Administrative Agent, such properly completed and executed
documentation prescribed by applicable Laws or by the taxing authorities of any jurisdiction and
such other reasonably requested information as will permit the Parent or the Administrative Agent,
as the case may be, to determine (A) whether or not payments made hereunder or under any other Loan
Document are subject to Taxes, (B) if applicable, the required rate of withholding or deduction,
and (C) such Lender’s entitlement to any available exemption from, or reduction of, applicable
Taxes in respect of all payments to be made to such Lender by the Borrowers pursuant to this
Agreement or otherwise to establish such Lender’s status for withholding tax purposes in the
applicable jurisdiction.

(ii) Without limiting the generality of the foregoing, if a Borrower is resident for
tax purposes in the United States,

(A) any Lender that is a “United States person” within the meaning of Section
7701(a)(30) of the Internal Revenue Code shall deliver to the Parent and the
Administrative Agent executed originals of Internal Revenue Service Form W-9 or such
other documentation or information prescribed by applicable Laws or reasonably
requested by the Parent or the Administrative Agent as will enable the Parent or the
Administrative Agent, as the case may be, to determine whether or not such Lender is
subject to backup withholding or information reporting requirements; and

(B) each Foreign Lender that is entitled under the Internal Revenue Code or any
applicable treaty to an exemption from or reduction of withholding tax with respect
to payments hereunder or under any other Loan Document shall deliver to the Parent
and the Administrative Agent (in such number of copies as shall be requested by the
recipient) on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the request of the
Parent or the Administrative Agent, but only if such Foreign Lender is legally
entitled to do so), whichever of the following is applicable:

(I) executed originals of Internal Revenue Service Form W-8BEN claiming
eligibility for benefits of an income tax treaty to which the United States
is a party,

(II) executed originals of Internal Revenue Service Form W-8ECI,

(III) executed originals of Internal Revenue Service Form W-8IMY and
all required supporting documentation,

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

(V) executed originals of any other form prescribed by applicable Laws
as a basis for claiming exemption from or a reduction in United States
Federal withholding tax together with such supplementary documentation as
may
be prescribed by applicable Laws to permit the Parent or the
Administrative Agent to determine the withholding or deduction required to
be made.

 

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(iii) Each Lender shall promptly (A) notify the Parent and the Administrative Agent of
any change in circumstances which would modify or render invalid any claimed exemption or
reduction, and (B) take such steps as shall not be materially disadvantageous to it, in the
reasonable judgment of such Lender, and as may be reasonably necessary (including the
re-designation of its Lending Office) to avoid any requirement of applicable Laws of any
jurisdiction that any Borrower or the Administrative Agent make any withholding or deduction
for taxes from amounts payable to such Lender.

(f) Treatment of Certain Refunds. Unless required by applicable Laws, at no time
shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of a
Lender or the L/C Issuer, or have any obligation to pay to any Lender or the L/C Issuer, any refund
of Taxes withheld or deducted from funds paid for the account of such Lender or the L/C Issuer, as
the case may be. If the Administrative Agent, any Lender or the L/C Issuer determines, in its sole
discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been
indemnified by any Loan Party or with respect to which any Loan Party has paid additional amounts
pursuant to this Section, it shall pay to such Loan Party an amount equal to such refund (but only
to the extent of indemnity payments made, or additional amounts paid, by such Loan Party under this
Section with respect to the Taxes or Other Taxes giving rise to such refund), net of all
out-of-pocket expenses incurred by the Administrative Agent, such Lender or the L/C Issuer, as the
case may be, and without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund), provided that each Loan Party, upon the request of
the Administrative Agent, such Lender or the L/C Issuer, agrees to repay the amount paid over to
such Loan Party (plus any penalties, interest or other charges imposed by the relevant Governmental
Authority) to the Administrative Agent, such Lender or the L/C Issuer in the event the
Administrative Agent, such Lender or the L/C Issuer is required to repay such refund to such
Governmental Authority. This subsection shall not be construed to require the Administrative
Agent, any Lender or the L/C Issuer to make available its tax returns (or any other information
relating to its taxes that it deems confidential) to any Borrower or any other Person.

3.02 Illegality.

If any Lender determines that any Law has made it unlawful, or that any Governmental Authority
has asserted that it is unlawful, for any Lender or its applicable Lending Office to make, maintain
or fund Loans whose interest is determined by reference to the Eurodollar Base Rate, or to
determine or charge interest rates based upon the Eurodollar Base Rate, or any Governmental
Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or
to take deposits of, Dollars in the London interbank market, then, on notice thereof by such Lender
to the Parent through the Administrative Agent, (i) any obligation of such Lender to make or
continue Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate Loans shall be
suspended and (ii) if such notice asserts the illegality of such Lender making or maintaining Base
Rate Loans the interest rate on which is determined by reference to the Eurodollar Base Rate
component of the Base Rate, the interest rate on which Base Rate Loans of such Lender, shall, if
necessary to avoid such illegality, be determined by the Administrative Agent without reference to
the Eurodollar Base Rate component of the Base Rate, in each case until such Lender notifies the
Administrative Agent and the Parent that the circumstances giving rise to such determination no
longer exist. Upon receipt of such notice, (x) the Borrowers shall, upon demand from such Lender
(with a copy to the Administrative Agent), prepay or, if applicable, convert all of such Lender’s
Eurodollar Rate Loans to Base Rate Loans (the interest rate on which Base Rate Loans of such Lender
shall, if necessary to avoid such illegality, be determined by the Administrative Agent without
reference to the Eurodollar Base Rate component of the Base Rate), either on the last day of the
Interest Period
therefor, if such Lender may lawfully continue to maintain such Eurodollar Rate Loans to such
day, or immediately, if such Lender may not lawfully continue to maintain such Eurodollar Rate
Loans and (y) if such notice asserts the illegality of such Lender determining or charging interest
rates based upon the Eurodollar Base Rate, the Administrative Agent shall during the period of such
suspension compute the Base Rate applicable to such Lender without reference to the Eurodollar Base
Rate component thereof until the Administrative Agent is advised in writing by such Lender that it
is no longer illegal for such Lender to determine or charge interest rates based upon the
Eurodollar Base Rate. Upon any such prepayment or conversion, the Borrowers shall also pay accrued
interest on the amount so prepaid or converted.

 

50

 

3.03 Inability to Determine Rates.

If the Required Lenders determine that for any reason in connection with any request for a
Eurodollar Rate Loan or a conversion to or continuation thereof that (a) Dollar deposits are not
being offered to banks in the London interbank eurodollar market for the applicable amount and
Interest Period of such Eurodollar Rate Loan, (b) adequate and reasonable means do not exist for
determining the Eurodollar Base Rate for any requested Interest Period with respect to a proposed
Eurodollar Rate Loan or in connection with an existing or proposed Base Rate Loan, or (c) the
Eurodollar Base Rate for any requested Interest Period with respect to a proposed Eurodollar Rate
Loan or in connection with a Eurodollar Rate Loan does not adequately and fairly reflect the cost
to such Lenders of funding such Loan, the Administrative Agent will promptly notify the Parent and
each Lender. Thereafter, (x) the obligation of the Lenders to make or maintain Eurodollar Rate
Loans shall be suspended and (y) in the event of a determination described in the preceding
sentence with respect to the Eurodollar Base Rate component of the Base Rate, the utilization of
the Eurodollar Base Rate component in determining the Base Rate shall be suspended, in each case
until the Administrative Agent (upon the instruction of the Required Lenders) revokes such notice.
Upon receipt of such notice, the Borrowers may revoke any pending request for a Borrowing of,
conversion to or continuation of Eurodollar Rate Loans or, failing that, will be deemed to have
converted such request into a request for a Borrowing of Base Rate Loans in the amount specified
therein.

3.04 Increased Costs.

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

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

(ii) subject any Lender or the L/C Issuer to any tax of any kind whatsoever with
respect to this Agreement, any Letter of Credit, any participation in a Letter of Credit or
any Eurodollar Rate Loan made by it, or change the basis of taxation of payments to such
Lender or the L/C Issuer in respect thereof (except for Indemnified Taxes or Other Taxes
covered by Section 3.01 and the imposition of, or any change in the rate of, any
Excluded Tax payable by such Lender or the L/C Issuer); or

(iii) impose on any Lender or the L/C Issuer or the London interbank market any other
condition, cost or expense affecting this Agreement or Eurodollar Rate Loans made by such
Lender or any Letter of Credit or participation therein;

 

51

 

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Loan the interest on which is determined by reference to the Eurodollar Base Rate
(or of maintaining its obligation to make any such Loan), or to increase the cost to such Lender or
the L/C Issuer of participating in, issuing or maintaining any Letter of Credit (or of maintaining
its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any
sum received or receivable by such Lender or the L/C Issuer hereunder (whether of principal,
interest or any other amount) then, upon request of such Lender or the L/C Issuer, the Borrowers
will pay to such Lender or the L/C Issuer, as the case may be, such additional amount or amounts as
will compensate such Lender or the L/C Issuer, as the case may be, for such additional costs
incurred or reduction suffered.

(b) Capital Requirements. If any Lender or the L/C Issuer determines that any Change
in Law affecting such Lender or the L/C Issuer or any Lending Office of such Lender or such
Lender’s or the L/C Issuer’s holding company, if any, regarding capital requirements has or would
have the effect of reducing the rate of return on such Lender’s or the L/C Issuer’s capital or on
the capital of such Lender’s or the L/C Issuer’s holding company, if any, as a consequence of this
Agreement, the Commitments of such Lender or the Loans made by, or participations in Letters of
Credit held by, such Lender, or the Letters of Credit issued by the L/C Issuer, to a level below
that which such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company could
have achieved but for such Change in Law (taking into consideration such Lender’s or the L/C
Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s holding company with
respect to capital adequacy), then from time to time the Borrowers will pay to such Lender or the
L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or
the L/C Issuer or such Lender’s or the L/C Issuer’s holding company for any such reduction
suffered.

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

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

3.05 Compensation for Losses.

Upon demand (which shall be accompanied by a statement setting forth in reasonable detail the
basis for the amount being claimed) of any Lender (with a copy to the Administrative Agent) from
time to time, the Borrowers shall promptly compensate such Lender for and hold such Lender harmless
from any loss, cost or expense incurred by it as a result of:

(a) any continuation, conversion, payment or prepayment of any Eurodollar Rate Loan on
a day other than the last day of the Interest Period for such Loan (whether voluntary,
mandatory, automatic, by reason of acceleration, or otherwise);

 

52

 

(b) any failure by a Borrower (for a reason other than the failure of such Lender to
make a Loan) to prepay, borrow, continue or convert any Eurodollar Rate Loan on the date or
in the amount notified by such Borrower; or

(c) any assignment of a Eurodollar Rate Loan on a day other than the last day of the
Interest Period therefor as a result of a request by the Parent pursuant to Section
11.13;

including any loss of anticipated profits and any loss or expense arising from the liquidation or
reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the
deposits from which such funds were obtained. The Borrowers shall also pay any customary
administrative fees charged by such Lender in connection with the foregoing.

For purposes of calculating amounts payable by the Borrowers to the Lenders under this
Section 3.05, each Lender shall be deemed to have funded each Eurodollar Rate Loan made by
it at the Eurodollar Base Rate used in determining the Eurodollar Rate for such Loan by a matching
deposit or other borrowing in the London interbank eurodollar market for a comparable amount and
for a comparable period, whether or not such Eurodollar Rate Loan was in fact so funded.

3.06 Mitigation Obligations; Replacement of Lenders.

(a) Designation of a Different Lending Office. If any Lender requests compensation
under Section 3.04, or a Borrower is required to pay any additional amount to any Lender,
the L/C Issuer, or any Governmental Authority for the account of any Lender or the L/C Issuer
pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02,
then such Lender or the L/C Issuer shall, as applicable, use reasonable efforts to designate a
different Lending Office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of
such Lender or the L/C Issuer, such designation or assignment (i) would eliminate or reduce amounts
payable pursuant to Section 3.01 or 3.04, as the case may be, in the future, or
eliminate the need for the notice pursuant to Section 3.02, as applicable, and (ii) in each
case, would not subject such Lender or the L/C Issuer, as the case may be, to any unreimbursed cost
or expense and would not otherwise be disadvantageous to such Lender or the L/C Issuer, as the case
may be. The Borrowers hereby agree to pay all reasonable costs and expenses incurred by any Lender
or the L/C Issuer in connection with any such designation or assignment.

(b) Replacement of Lenders. If (i) any Lender requests compensation under Section
3.04, (ii) if a Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 3.01 or (iii) any
Lender delivers notice pursuant to Section 3.02, the Parent may replace such Lender in
accordance with Section 11.13.

3.07 Survival.

All of the Loan Parties’ obligations under this Article III shall survive termination
of the Aggregate Revolving Commitments, repayment of all other Obligations hereunder, and
resignation of the Administrative Agent.

 

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ARTICLE IV

GUARANTY

4.01 The Guaranty.

Each of the Guarantors hereby jointly and severally guarantees to each Lender, the L/C Issuer,
each Affiliate of a Lender that enters into a Swap Contract or a Treasury Management Agreement with
any Loan Party or any Subsidiary, and each other holder of the Obligations as hereinafter provided,
as primary obligor and not as surety, the prompt payment of the Obligations in full when due
(whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise) strictly in accordance with the terms thereof. The Guarantors
hereby further agree that if any of the Obligations are not paid in full when due (whether at
stated maturity, as a mandatory prepayment, by acceleration, as a mandatory cash collateralization
or otherwise), the Guarantors will, jointly and severally, promptly pay the same, without any
demand or notice whatsoever, and that in the case of any extension of time of payment or renewal of
any of the Obligations, the same will be promptly paid in full when due (whether at extended
maturity, as a mandatory prepayment, by acceleration, as a mandatory cash collateralization or
otherwise) in accordance with the terms of such extension or renewal.

Notwithstanding any provision to the contrary contained herein or in any other of the Loan
Documents or the other documents relating to the Obligations, the obligations of each Guarantor
under this Agreement and the other Loan Documents shall not exceed an aggregate amount equal to the
largest amount that would not render such obligations subject to avoidance under applicable Debtor
Relief Laws.

4.02 Obligations Unconditional.

The obligations of the Guarantors under Section 4.01 are joint and several, absolute
and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability
of any of the Loan Documents or other documents relating to the Obligations, or any substitution,
release, impairment or exchange of any other guarantee of or security for any of the Obligations,
and, to the fullest extent permitted by applicable law, irrespective of any other circumstance
whatsoever which might otherwise constitute a legal or equitable discharge or defense of a surety
or guarantor, it being the intent of this Section 4.02 that the obligations of the
Guarantors hereunder shall be absolute and unconditional under any and all circumstances. Each
Guarantor agrees that such Guarantor shall have no right of subrogation, indemnity, reimbursement
or contribution against any Borrower or any other Guarantor for amounts paid under this Article
IV until such time as the Obligations have been Fully Satisfied and the Commitments have
expired or terminated. Without limiting the generality of the foregoing, it is agreed that, to the
fullest extent permitted by Law, the occurrence of any one or more of the following shall not alter
or impair the liability of any Guarantor hereunder, which shall remain absolute and unconditional
as described above:

(a) at any time or from time to time, without notice to any Guarantor, the time for any
performance of or compliance with any of the Obligations shall be extended, or such
performance or compliance shall be waived;

(b) any of the acts mentioned in any of the provisions of any of the Loan Documents or
other documents relating to the Obligations shall be done or omitted;

(c) the maturity of any of the Obligations shall be accelerated, or any of the
Obligations shall be modified, supplemented or amended in any respect, or any right under
any of the Loan Documents or other documents relating to the Obligations shall be waived or
any other guarantee of any of the Obligations or any security therefor shall be released,
impaired or exchanged in whole or in part or otherwise dealt with;

(d) any Lien granted to, or in favor of, the Administrative Agent or any other holder
of the Obligations as security for any of the Obligations shall fail to attach or be
perfected; or

(e) any of the Obligations shall be determined to be void or voidable (including,
without limitation, for the benefit of any creditor of any Guarantor) or shall be
subordinated to the claims of any Person (including, without limitation, any creditor of any
Guarantor).

 

54

 

With respect to its obligations hereunder, each Guarantor hereby expressly waives diligence,
presentment, demand of payment, protest and all notices whatsoever, and any requirement that the
Administrative Agent or any other holder of the Obligations exhaust any right, power or remedy or
proceed against any Person under any of the Loan Documents or any other document relating to the
Obligations, or against any other Person under any other guarantee of, or security for, any of the
Obligations.

4.03 Reinstatement.

The obligations of the Guarantors under this Article IV shall be automatically
reinstated if and to the extent that for any reason any payment by or on behalf of any Person in
respect of the Obligations is rescinded or must be otherwise restored by any holder of any of the
Obligations, whether as a result of any Debtor Relief Law or otherwise, and each Guarantor agrees
that it will indemnify the Administrative Agent and each other holder of the Obligations on demand
for all reasonable costs and expenses (including, without limitation, the reasonable fees, charges
and disbursements of counsel) incurred by the Administrative Agent or such holder of the
Obligations in connection with such rescission or restoration, including any such costs and
expenses incurred in defending against any claim alleging that such payment constituted a
preference, fraudulent transfer or similar payment under any Debtor Relief Law.

4.04 Certain Additional Waivers.

Each Guarantor agrees that such Guarantor shall have no right of recourse to security for the
Obligations, except through the exercise of rights of subrogation pursuant to Section 4.02
and through the exercise of rights of contribution pursuant to Section 4.06.

4.05 Remedies.

The Guarantors agree that, to the fullest extent permitted by law, as between the Guarantors,
on the one hand, and the Administrative Agent and the other holders of the Obligations, on the
other hand, the Obligations may be declared to be forthwith due and payable as specified in
Section 9.02 (and shall be deemed to have become automatically due and payable in the
circumstances specified in said Section 9.02) for purposes of Section 4.01
notwithstanding any stay, injunction or other prohibition preventing such declaration (or
preventing the Obligations from becoming automatically due and payable) as against any other Person
and that, in the event of such declaration (or the Obligations being deemed to have become
automatically due and payable), the Obligations (whether or not due and payable by any other
Person) shall forthwith become due and payable by the Guarantors for purposes of Section
4.01. The Guarantors acknowledge and agree that their obligations hereunder are secured in
accordance with the terms of the Collateral Documents and that the holders of the Obligations may
exercise their remedies thereunder in accordance with the terms thereof.

4.06 Rights of Contribution.

The Guarantors agree among themselves that, in connection with payments made hereunder, each
Guarantor shall have contribution rights against the other Guarantors and the Borrowers as
permitted under applicable law. Such contribution rights shall be subordinate and subject in right
of payment to the obligations of such Guarantors under the Loan Documents and no Guarantor shall
exercise such rights of contribution until all Obligations have been Fully Satisfied and the
Commitments have terminated.

 

55

 

4.07 Guarantee of Payment; Continuing Guarantee; Release of Guaranty.

(a) The guarantee in this Article IV is a guaranty of payment and not of collection,
is a continuing guarantee, and shall apply to all Obligations whenever arising.

(b) A Guarantor shall be automatically released from its obligations under the Guaranty if
such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder and any
Collateral granted by such Guarantor under the Collateral Documents shall be promptly released.

ARTICLE V

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

5.01 Conditions of Effectiveness.

This Agreement shall be effective upon satisfaction of the following conditions precedent:

(a) Loan Documents. Receipt by the Administrative Agent of executed counterparts of
this Agreement and the other Loan Documents, each properly executed by a Responsible Officer of the
signing Loan Party and, in the case of this Agreement, by each Lender.

(b) Opinions of Counsel. Receipt by the Administrative Agent of favorable opinions of
legal counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, dated as
of the Closing Date, and in form and substance reasonably satisfactory to the Administrative Agent.

(c) No Material Adverse Change. There shall not have occurred a material adverse
change since December 31, 2010, in the operations, business, assets, properties, liabilities
(actual or contingent), or condition (financial or otherwise) of the Parent and its Subsidiaries,
taken as a whole.

(d) Organization Documents, Resolutions, Etc. Receipt by the Administrative Agent of
the following, in form and substance reasonably satisfactory to the Administrative Agent:

(i) copies of the Organization Documents of each Loan Party certified to be true and
complete as of a recent date by the appropriate Governmental Authority of the state or other
jurisdiction of its incorporation or organization, where applicable, and certified by a
secretary or assistant secretary of such Loan Party to be true and correct as of the Closing
Date;

(ii) such certificates of resolutions or other action, incumbency certificates and/or
other certificates of Responsible Officers of each Loan Party as the Administrative Agent
may reasonably require evidencing the identity, authority and capacity of each Responsible
Officer thereof authorized to act as a Responsible Officer in connection with this Agreement
and the other Loan Documents to which such Loan Party is a party; and

(iii) such documents and certifications as the Administrative Agent may reasonably
require to evidence that each Loan Party is duly organized or formed, and is validly
existing, in good standing and qualified to engage in business in its state of organization
or formation.

 

56

 

(e) Personal Property Collateral. Receipt by the Administrative Agent of the
following:

(i) UCC financing statements for each appropriate jurisdiction as is necessary, in the
Administrative Agent’s sole discretion, to perfect the Administrative Agent’s security
interest in the Collateral;

(ii) all certificates evidencing any certificated Equity Interests pledged to the
Administrative Agent pursuant to the Security Agreement, together with duly executed in
blank, undated stock powers attached thereto (unless, with respect to the pledged Equity
Interests of any Foreign Subsidiary, such stock powers are deemed unnecessary by the
Administrative Agent in its reasonable discretion under the law of the jurisdiction of
organization of such Person);

(iii) duly executed notices of grant of security interest in the form required by the
Security Agreement as are necessary, in the Administrative Agent’s sole discretion, to
perfect the Administrative Agent’s security interest in the United States registered
intellectual property of the Loan Parties;

(iv) Account Control Agreements with respect to deposit accounts to the extent required
pursuant to Section 7.17; and

(v) in the case of any material personal property Collateral located at a premises
leased by a Loan Party, such estoppel letters, consents and waivers from the landlords on
such real property as may be reasonably required by the Administrative Agent.

(f) Real Property Collateral. Receipt by the Administrative Agent of the following:

(i) fully executed and notarized Mortgages or amendments to existing Mortgages
encumbering the fee interest of any Loan Party in each of the real properties designated as
a Mortgaged Property on Schedule 6.16;

(ii) Subject to Section 7.18, maps or plats of an as-built survey of the sites
of the real property covered by the Mortgages certified to the Administrative Agent and the
title insurance company issuing the policies referred to in Section 5.01(f)(iii) in
a manner reasonably satisfactory to each of the Administrative Agent and such title
insurance company, dated a date reasonably satisfactory to each of the Administrative Agent
and such title insurance company by an independent professional licensed land surveyor,
which maps or plats and the surveys on which they are based shall be sufficient to delete
any standard printed survey exception contained in the applicable title policy;

(iii) Subject to Section 7.18, ALTA mortgagee title insurance policies and
endorsements thereto (if required) issued by a title insurance company reasonably acceptable
to the Administrative Agent with respect to each Mortgaged Property, assuring the
Administrative Agent that each of the Mortgages creates a valid and enforceable first
priority mortgage lien on the applicable Mortgaged Property, free and clear of all defects
and encumbrances except Permitted Liens, which title insurance policies shall otherwise be
in form and substance reasonably satisfactory to the Administrative Agent and shall include
such endorsements as are reasonably requested by the Administrative Agent; and

(iv) evidence as to (A) whether any Mortgaged Property is in an area designated by the
Federal Emergency Management Agency as having special flood or mud slide hazards (a “Flood
Hazard Property”) and (B) if any Mortgaged Property is a Flood Hazard Property, (1) whether
the community in which such Mortgaged Property is located is participating in the National
Flood Insurance Program, (2) the applicable Loan Party’s written acknowledgment of
receipt of written notification from the Administrative Agent (a) as to the fact that
such Mortgaged Property is a Flood Hazard Property and (b) as to whether the community in
which each such Flood Hazard Property is located is participating in the National Flood
Insurance Program and (3) copies of insurance policies or certificates of insurance of the
Borrower and its Subsidiaries evidencing flood insurance satisfactory to the Administrative
Agent and naming the Administrative Agent as sole loss payee on behalf of the Lenders.

 

57

 

(g) Evidence of Insurance. Receipt by the Administrative Agent of copies of insurance
policies or certificates of insurance of the Loan Parties evidencing liability and casualty
insurance meeting the requirements set forth in the Loan Documents, including, but not limited to,
naming the Administrative Agent as additional insured (in the case of liability insurance) or loss
payee (in the case of hazard insurance) on behalf of the Lenders.

(h) Closing Certificate. Receipt by the Administrative Agent of a certificate signed
by a Responsible Officer of the Parent certifying that the conditions specified in Section
5.01(c) and Sections 5.02(a) and (b) have been satisfied.

(i) Fees. Receipt by the Administrative Agent, the Arranger and the Lenders of any
fees required to be paid on or before the Closing Date.

(j) Attorney Costs. The Parent shall have paid all fees, charges and disbursements of
counsel to the Administrative Agent (directly to such counsel if requested by the Administrative
Agent) to the extent invoiced prior to or on the Closing Date, plus such additional amounts of such
fees, charges and disbursements as shall constitute its reasonable estimate of such fees, charges
and disbursements incurred or to be incurred by it through the closing proceedings (provided that
such estimate shall not thereafter preclude a final settling of accounts between the Parent and the
Administrative Agent).

Without limiting the generality of the provisions of the last paragraph of Section
10.03, for purposes of determining compliance with the conditions specified in this Section
5.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved
or accepted or to be satisfied with, each document or other matter required thereunder to be
consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative
Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its
objection thereto.

5.02 Conditions to all Credit Extensions.

The obligation of each Lender to honor any Request for Credit Extension is subject to the
following conditions precedent:

(a) The representations and warranties of each Loan Party contained in Article VI or
any other Loan Document, or which are contained in any document furnished at any time under or in
connection herewith or therewith, shall be true and correct on in all material respects and as of
the date of such Credit Extension, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and correct in all material
respects as of such earlier date.

(b) No Default shall exist, or would result from such proposed Credit Extension or from the
application of the proceeds thereof.

(c) The Administrative Agent and, if applicable, the L/C Issuer or the Swing Line Lender shall
have received a Request for Credit Extension in accordance with the requirements hereof.

Each Request for Credit Extension submitted by a Borrower shall be deemed to be a
representation and warranty that the conditions specified in Sections 5.02(a) and
(b) have been satisfied on and as of the date of the applicable Credit Extension.

 

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ARTICLE VI

REPRESENTATIONS AND WARRANTIES

The Loan Parties represent and warrant to the Administrative Agent and the Lenders that:

6.01 Organization.

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

6.02 Authorization; No Conflict.

Each Loan Party is duly authorized to execute and deliver each Loan Document to which it is a
party, each Borrower is duly authorized to borrow monies and accept other Credit Extensions
hereunder and each Loan Party is duly authorized to perform its obligations under each Loan
Document to which it is a party. The execution, delivery and performance by each Loan Party of
each Loan Document to which it is a party, and the Credit Extensions to each Borrower hereunder, do
not and will not (a) require any consent or approval of any Governmental Authority (other than any
consent or approval which has been obtained and is in full force and effect, except such as would
not have and reasonably could not be expected to have a Material Adverse Effect), (b) conflict with
(i) any provision of Law, (ii) the Organizational Documents of any Loan Party or (iii) any material
Contractual Obligation or other material document, or any judgment, order or decree, which is
binding upon any Loan Party or any of its properties or (c) require, or result in, the creation or
imposition of any Lien on any asset of any Loan Party (other than Permitted Liens).

6.03 Validity and Binding Nature.

Each of this Agreement and each other Loan Document to which any Loan Party is a party is the
legal, valid and binding obligation of such Person, enforceable against such Person in accordance
with its terms, subject to applicable Debtor Relief Laws and to general principles of equity
regardless of whether considered in a proceeding in equity or law.

6.04 Financial Condition.

The (x) reports of independent registered public accounting firm of the Parent and its
Subsidiaries for Fiscal Years 2009 and 2010, including audited consolidated balance sheets,
statements of operations and statements of cash flows of the Parent and its Subsidiaries for such
periods (together with the unqualified certification of such accountants relating thereto),
together with the unaudited consolidating balance sheets and statements of operations of the Parent
and its Subsidiaries, as certified by the chief financial officer, in each case, for such Fiscal
Years and (y) with respect to the Fiscal Quarters ended after Fiscal Year 2010 through March 31,
2011, unaudited consolidated and consolidating balance sheets and statements of earnings and cash
flows of the Parent and its Subsidiaries, as certified by the chief financial officer, copies of
each of which have been delivered to the Administrative Agent, were prepared in
accordance with GAAP (subject to the absence of footnotes and to normal year-end adjustments,
solely with respect to unaudited financial statements) and present fairly in all material respects
the consolidated financial condition of the Parent and its Subsidiaries as at such dates and the
results of their operations for the periods then ended.

 

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6.05 No Material Adverse Change.

Since December 31, 2010, no event or circumstance exists and/or has occurred that has had or
could reasonably be expected to have, either alone or in conjunction with any other circumstances,
events or occurrences, a Material Adverse Effect.

6.06 Litigation and Contingent Liabilities.

No litigation (including derivative actions), arbitration proceeding or governmental
investigation or proceeding is pending or, to such Loan Party’s knowledge, threatened against, any
Loan Party or any of the Subsidiaries which has had, or could reasonably be expected to have, a
Material Adverse Effect. Other than any liability incident to such litigation or proceedings, no
Loan Party has any material Contingent Liabilities not listed on Schedule 6.06 or permitted
by Section 8.01.

6.07 Ownership of Properties; Liens.

Each Loan Party owns good and, in the case of real property, marketable title to all of its
properties and assets, real and personal, tangible and intangible, of any nature whatsoever
(including IP Rights) material to its business free and clear of all Liens, charges and claims
(including infringement claims with respect to IP Rights which would have or could reasonably be
expected to have a Material Adverse Effect) other than Permitted Liens. (i) The Parent owns good
title to the Equity Interests of Kids Line, Sassy, I & J and IP Sub, and (ii) I & J owns good title
to the Equity Interests of LaJobi and CoCaLo, in each case, free and clear of all Liens (other than
Liens permitted pursuant to Section 8.02(h) and Liens in favor of the Administrative Agent
pursuant to the Collateral Documents).

6.08 Equity Ownership; Subsidiaries.

All issued and outstanding Equity Interests of each Subsidiary are duly authorized and validly
issued, fully paid, non-assessable, and free and clear of all Liens other than Permitted Liens, and
such Equity Interests were issued in compliance with all applicable state and federal Laws
concerning the issuance of securities. Schedule 6.08 sets forth the authorized Equity
Interests of each Subsidiary as of the Closing Date. All of the issued and outstanding Equity
Interests of each Subsidiary are owned as set forth on Schedule 6.08 as of the Closing
Date, and all of the issued and outstanding Equity Interests of each Wholly-Owned Subsidiary are,
directly or indirectly, owned by such Loan Party. As of the Closing Date, except as set forth on
Schedule 6.08, there are no pre-emptive or other outstanding rights, options, warrants,
conversion rights or other similar agreements or understandings for the purchase or acquisition of
any Equity Interests of any Subsidiary.

 

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6.09 Pension Plans.

(a) There is no Unfunded Liability which would have or could reasonably be expected to have a
Material Adverse Effect. Each Pension Plan complies in all material respects with its terms and
all applicable requirements of Law. No contribution failure under Section 412 of the Internal
Revenue Code, Section 302 of ERISA, any other applicable Law or the terms of any Pension Plan has
occurred with respect to any Pension Plan, sufficient to give rise to a Lien under Section 302(f)
of ERISA, or otherwise would have or could reasonably be expected to have a Material Adverse
Effect. There are no pending or,
to the knowledge of any Loan Party, threatened, claims, actions, investigations or lawsuits
against any Pension Plan, any fiduciary of any Pension Plan, or Loan Party or any other member of
the Controlled Group with respect to a Pension Plan or a Multiemployer Pension Plan which would
have or could reasonably be expected to have a Material Adverse Effect. No Loan Party nor any
other member of the Controlled Group has engaged in any prohibited transaction (as defined in
Section 4975 of the Internal Revenue Code or Section 406 of ERISA) in connection with any Pension
Plan or any Multiemployer Pension Plan which would subject any Loan Party or any other member of
the Controlled Group to any material liability. Within the past five years, no Loan Party nor any
other member of the Controlled Group has engaged in a transaction which resulted in a Pension Plan
with an Unfunded Liability being transferred out of the Controlled Group which would have or could
reasonably be expected to have a Material Adverse Effect. No Termination Event has occurred or is
reasonably expected to occur with respect to any Pension Plan which would have or could reasonably
be expected to have a Material Adverse Effect.

(b) All contributions (if any) have been made to any Multiemployer Pension Plan that are
required to be made by the Loan Parties or any other member of the Controlled Group under the terms
of the plan or of any collective bargaining agreement or by applicable Law; no Loan Party nor any
other member of the Controlled Group has withdrawn or partially withdrawn from any Multiemployer
Pension Plan, incurred any material withdrawal liability with respect to any such plan or received
notice of any claim or demand for withdrawal liability or partial withdrawal liability from any
such plan, and no condition has occurred which, if continued, could result in a withdrawal or
partial withdrawal from any such plan; and no Loan Party nor any other member of the Controlled
Group has received any notice that any Multiemployer Pension Plan is in reorganization, that
increased contributions may be required to avoid a reduction in plan benefits or the imposition of
any excise tax, that any such plan is or has been funded at a rate less than that required under
Section 412 of the Internal Revenue Code, that any such plan is or may be terminated, or that any
such plan is or may become insolvent.

(c) All Other Plans. All other “pension plans,” as such term is defined in Section
3(2) of ERISA, maintained by any Loan Party or any member of the Controlled Group that are not
Pension Plans and all other non-qualified deferred compensation plans comply in all respects with
their terms and with all applicable Laws, except to the extent that any failure to comply could not
be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect.

(d) Disclosure. Except as set forth on Schedule 6.09 (as the same may be
updated from time to time to reflect changes occurring after the Closing Date), no Loan Party
maintains or contributes to a Pension Plan that is a defined benefit plan or Multiemployer Pension
Plan that is governed by United States Law.

6.10 Investment Company Act.

No Loan Party, Subsidiary of a Loan Party or, to the best knowledge of such Loan Party, the
Parent, is an “investment company” or a company “controlled” by an “investment company” or a
“subsidiary” of an “investment company,” within the meaning of the Investment Company Act of 1940.

6.11 Regulation U.

No Loan Party is engaged or will engage, principally or as one of its important activities, in
the business of purchasing or carrying margin stock (within the meaning of Regulation U issued by
the FRB), or extending credit for the purpose of purchasing or carrying margin stock. Following
the application of the proceeds of each Borrowing or drawing under each Letter of Credit, not more
than 25% of the value of the assets (either of the Borrowers only or of the Parent and its
Subsidiaries on a consolidated basis)
subject to the provisions of Section 8.02 or Section 8.04 or subject to any
restriction contained in any agreement or instrument between any Borrower and any Lender or any
Affiliate of any Lender relating to Indebtedness and within the scope of Section 9.01(e)
will be margin stock.

 

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6.12 Taxes.

Each Loan Party and each Subsidiary has timely filed all federal and state income and all
other material tax returns and reports required by Law to have been filed by it and has paid all
taxes and governmental charges due and payable with respect to such return, except (i) as set forth
on Schedule 6.12, and (ii) any such taxes or charges which are being diligently contested
in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP
shall have been set aside on its books and in respect of which no Lien has been filed against the
assets of any Loan Party or any Subsidiary. The Parent and each Subsidiary have, in each case,
made adequate reserves on their books and records in accordance with GAAP for all federal and state
income and all other material taxes that have accrued but which are not yet due and payable. No
Loan Party or any Subsidiary has participated in any transaction that relates to a year of the
taxpayer (which is still open under the applicable statute of limitations) which is a “reportable
transaction” within the meaning of Treasury Regulation Section 1.6011-4(b)(2) (irrespective of the
date when the transaction was entered into).

6.13 Solvency.

On the Closing Date and thereafter immediately prior to and after giving effect to the
issuance of each Letter of Credit and each Borrowing hereunder and the use of the proceeds thereof,
the fair value of the assets of the Loan Parties and their Subsidiaries on a consolidated basis, at
a fair valuation on a going concern basis, will exceed the debts and liabilities, as determined in
accordance with GAAP, of the Loan Parties and their Subsidiaries on a consolidated basis; the
present fair saleable value of the assets of the Loan Parties and their Subsidiaries on a
consolidated basis, determined on a going concern basis, will be greater than the amount that will
be required to pay the probable liability of the Loan Parties and their Subsidiaries on a
consolidated basis on their debts and other liabilities, as determined in accordance with GAAP, as
such debts and other liabilities become absolute and matured; the Loan Parties and their
Subsidiaries on a consolidated basis will be able to pay their debts and liabilities, as determined
in accordance with GAAP, as such debts and liabilities become absolute and matured; and the Loan
Parties and their Subsidiaries on a consolidated basis will not have unreasonably small capital
with which to conduct the businesses in which they are engaged as such businesses are now conducted
and are proposed to be conducted after the Closing Date.

6.14 Environmental Matters.

The on-going operations of each Loan Party and each Subsidiary comply in all respects with all
Environmental Laws, except such non-compliance which has not had, and could not (if enforced in
accordance with applicable Law) reasonably be expected to result in, either individually or in the
aggregate, a Material Adverse Effect. Each Loan Party and each Subsidiary has obtained, and
maintained in good standing, all licenses, permits, authorizations, registrations and other
approvals required under any Environmental Law for their respective ordinary course operations, and
for their reasonably anticipated future operations, and each Loan Party and each Subsidiary is in
compliance with all terms and conditions thereof, except where the failure to do so has not had and
could not reasonably be expected to result in material liability to any Loan Party or Subsidiary
and has not had, and could not reasonably be expected to result in, either individually or in the
aggregate, a Material Adverse Effect. Except as set forth on Schedule 6.14, no Loan Party
or any Subsidiary or any of their properties or operations is subject to, or reasonably anticipates
the issuance of, any written

 

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order from or agreement with any Governmental Authority, nor subject
to any judicial or docketed administrative or other
proceeding, respecting any Environmental Law, Environmental Claim or Hazardous Materials any
of which has had, or could reasonably be expected to result in, individually or in the aggregate, a
Material Adverse Effect. There are no Hazardous Materials or other conditions or circumstances
existing with respect to any property, arising from operations prior to the Closing Date, or
relating to any waste disposal, of any Loan Party or any Subsidiary that has had, or could
reasonably be expected to result in, either, individually or in the aggregate, a Material Adverse
Effect. No Loan Party or Subsidiary has any underground storage tanks that are not properly
registered or permitted under applicable Environmental Laws or that at any time have released,
leaked, disposed of or otherwise discharged Hazardous Materials any of which has had, or could
reasonably be expected to result in, individually or in the aggregate, a Material Adverse Effect.

6.15 Insurance.

Set forth on Schedule 6.15 is a complete and accurate summary of the property and
casualty insurance program of the Loan Parties as of the Closing Date (including the names of all
insurers, policy numbers, expiration dates, amounts and types of coverage, annual premiums,
exclusions, deductibles, self-insured retention, and a description in reasonable detail of any
self-insurance program, retrospective rating plan, fronting arrangement or other risk assumption
arrangement involving any Loan Party or Subsidiary). Each Loan Party and each Subsidiary and their
respective properties are insured with financially sound and reputable insurance companies which
are not Affiliates of the Loan Parties, in such amounts, with such deductibles and covering such
risks as are customarily carried by companies engaged in similar businesses and owning similar
properties in localities where any such Loan Party and/or Subsidiary operates.

6.16 Real Property.

Set forth on Schedule 6.16 is a complete and accurate list, as of the Closing Date, of
the address of all real property owned or leased by any Loan Party, together with, in the case of
leased property, the name and mailing address of the lessor of such property.

6.17 Information.

None of the representations or warranties made by any Loan Party in the Loan Documents as of
the date such representations and warranties are made or deemed made, and none of the statements or
information contained in each exhibit, report, statement or certificate furnished by or on behalf
of any Loan Party in connection with the Loan Documents (including the offering and disclosure
materials, if any, delivered by such Loan Party to the Administrative Agent or the Arranger prior
to the Closing Date), contains any untrue statement of a material fact or omits any material fact
required to be stated therein or necessary to make the statements made therein, in light of the
circumstances under which they are made, not misleading as of the time when made or delivered. It
being recognized by the Administrative Agent and the Lenders that any projections and forecasts
provided by any Loan Party (relating to the Loan Parties) are subject to uncertainties and
contingencies, are based on good faith estimates and assumptions believed by the Loan Parties to be
reasonable as of the date of the applicable projections or forecasts and upon the best information
then reasonably available to the Loan Parties and that actual results during the period or periods
covered by any such projections and forecasts may differ materially from projected or forecasted
results; provided however that if, during the period or periods covered by any such
projections and forecasts, management of any Loan Party determines that the projections and
forecasts no longer accurately reflect in any material respect the projected financial results for
such period or periods, as the case may be the chief financial officer of the Parent shall, as soon
as is reasonably practicable, provide to the Administrative Agent revised projections and forecasts
for such period or periods).

 

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6.18 IP Rights.

Each Loan Party and each Subsidiary owns and possesses or has a license or other right to use
all patents, patent rights, trademarks, trademark rights, trade names, trade name rights, service
marks, service mark rights and copyrights (collectively, “IP Rights”) as are necessary for
the conduct of the businesses of such Loan Party or Subsidiary as currently conducted except for
the failure to so own or license which would not have or could not reasonably be expected to have a
Material Adverse Effect, as applicable, without any infringement upon rights of others which would
have or could reasonably be expected to have a Material Adverse Effect. Set forth on Schedule
6.18 is a list of all material IP Rights registered or pending registration with the United
States Copyright Office or the United States Patent and Trademark Office and owned by each Loan
Party as of the Closing Date. Except as set forth on Schedule 6.18, or with respect to any
such licensing or distribution agreements entered into after the Closing Date, as otherwise
disclosed to the Administrative Agent promptly after its written request (including by way of
updating and replacing such Schedule), no Loan Party is party to any licensing agreement or
distribution agreement relating to any inventory which contains any restrictions or prohibitions on
the Administrative Agent (or its agents) from selling or disposing such inventory on substantially
the same terms as the Loan Party to such license agreement or distribution agreement.

6.19 Burdensome Obligations.

No Loan Party or Subsidiary is a party to or bound by any agreement or contract or subject to
any restriction contained in its Organization Documents which could reasonably be expected to have
a Material Adverse Effect.

6.20 Labor Matters.

Except as set forth on Schedule 6.20, no Loan Party or Subsidiary is subject to any
labor or collective bargaining agreement. Except as set forth on Schedule 6.20, there are
no existing or, to the knowledge of any Loan Party, threatened strikes, lockouts or other labor
disputes involving any Loan Party or Subsidiary. Hours worked by and payment made to employees of
the Loan Parties or the Subsidiaries are not in violation in any material respect of the Fair Labor
Standards Act or any other applicable Law dealing with such matters, except such violations which
would not have, and which could not reasonably be expected to have, a Material Adverse Effect.

6.21 No Default.

No Default has occurred and is continuing or would result from the execution, delivery or
performance hereof or of any other Loan Documents, including as a result of the incurrence by the
Parent, any Loan Party or any Subsidiary of any Obligations hereunder or under any other Loan
Document.

6.22 Subordinated Debt.

All Obligations shall constitute senior Indebtedness entitled to the priority and benefits of
the subordination provisions contained in any subordination agreement relating to any Subordinated
Debt.

6.23 Deposit Accounts.

As of the Closing Date, Schedule 6.23 sets forth all domestic deposit accounts of the Loan
Parties (together with an indication of whether such deposit account is an Excluded Account).

 

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6.24 Patriot Act.

Each Loan Party is in compliance, in all material respects, with (a) the Trading with the
Enemy Act, as amended, and each of the foreign assets control regulations of the United States
Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation
or executive order relating thereto and (b) the USA Patriot Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)) (the “Act”). No part of the proceeds of the Credit
Extensions will be used, directly or indirectly, for any payments to any governmental official or
employee, political party, official of a political party, candidate for political office, or anyone
else acting in an official capacity, in order to obtain, retain or direct business or obtain any
improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as
amended.

ARTICLE VII

AFFIRMATIVE COVENANTS

Until the Obligations are Fully Satisfied, each Loan Party shall and shall cause each
Subsidiary (excluding IP Sub prior to such time as IP Sub first becomes a Loan Party) to:

7.01 Financial Statements.

Deliver to the Administrative Agent for distribution to each Lender:

(a) Annual Report. Promptly when available, and in any event within 90 days after the
close of each Fiscal Year (or such earlier or later date as Form 10-K of the Parent is required to
be filed by with the SEC taking into account any extension granted by the SEC, provided the Parent
gives the Administrative Agent prompt written notice of such extension), (i) a copy of the Report
of Independent Registered Public Accounting Firm on the annual audit of the consolidated financial
statements of the Parent and its Subsidiaries for such Fiscal Year, including therein consolidated
balance sheets and statements of operations and cash flows of the Parent and its Subsidiaries as at
the end of such Fiscal Year, certified without adverse reference to going concern value and without
qualification by independent auditors of recognized standing selected by the Parent and reasonably
acceptable to the Administrative Agent, together with a comparison with the previous Fiscal Year;
and (ii) consolidating balance sheets of the Parent and its Subsidiaries as of the end of such
Fiscal Year and consolidating statements of operations and cash flows for the Parent and its
Subsidiaries for such Fiscal Year, in each case, prepared in accordance with GAAP (other than with
respect to the absence of footnotes); provided, that the Parent’s obligation with respect
to consolidating statements of cash flows will be restricted to using its best efforts to provide
such information (it being agreed however that if such consolidating statements of cash flows
cannot be provided, the Borrowers shall deliver a consolidated statement of cash flows for the
Borrowers for such period certified as set forth in clause (A) below), (A) certified by the chief
financial officer of the Parent as fairly and accurately presenting in all material respects the
financial condition and results of operations of such entities as of the date and for the period
covered and (B) accompanied by (y) a comparison to the budget for such Fiscal Year and (z) a
comparison with the previous Fiscal Year. With respect to the foregoing, to the extent the
Parent’s annual report on Form 10-K shall satisfy the requirements of clause (i) of this
Section 7.01(a), the Administrative Agent and the Lenders will accept such Form 10-K in
lieu of such item; and

 

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(b) Interim Reports. (i) Promptly when available and in any event within 45 days
after the end of each of the first three Fiscal Quarters of each Fiscal Year (or such earlier or
later date as Form 10-Qs of the Parent are required to be filed by the SEC taking into account any
extension granted by the SEC, provided the Parent gives the Administrative Agent prompt written
notice of such extension),
unaudited consolidated financial statements of the Parent and its Subsidiaries for such Fiscal
Quarter, including therein consolidated balance sheets and statements of operations and cash flows
as of the end of such Fiscal Quarter and for the period beginning with the first day of such Fiscal
Year and ending on the last day of such Fiscal Quarter, in each case, prepared in accordance with
GAAP, consistently applied and certified by the chief financial officer of the Parent as fairly
presenting in all material respects the financial condition of the Parent and its Subsidiaries as
at the date thereof together with (A) a comparison with the corresponding period of the previous
Fiscal Year and a comparison with the budget for such period of the current Fiscal Year and (B) a
consolidating balance sheet of the Parent and its Subsidiaries as of the end of such Fiscal Quarter
and consolidating statement of earnings and cash flows for the Parent and its Subsidiaries for such
Fiscal Quarter, in each case, prepared in accordance with GAAP (other than with respect to the
absence of footnotes and normal year end audit adjustments) certified by the chief financial
officer of the Parent as fairly presenting in all material respects the financial condition of such
entities as at the date and for the period covered; and (ii) promptly when available and in any
event within 45 days after the end of the first two fiscal months of each Fiscal Year, and 30 days
after the end of each other fiscal month of the Parent (other than the end of a fiscal month which
is also a Fiscal Quarter or Fiscal Year end), unaudited consolidated financial statements of the
Parent and its Subsidiaries for such fiscal month, including therein consolidated balance sheets
and statements of earnings and cash flows as of the end of such fiscal month and for the period
beginning with the first day of such Fiscal Year and ending on the last day of such fiscal month,
in each case, prepared in accordance with GAAP, consistently applied and certified by the chief
financial officer of the Parent as fairly presenting in all material respects the financial
condition of the Parent and its Subsidiaries as at the date thereof together with (A) a comparison
with the corresponding period of the previous Fiscal Year and a comparison with the budget for such
period of the current Fiscal Year and (B) a consolidating balance sheet of the Parent and its
Subsidiaries as of the end of such month and consolidating statement of earnings and cash flows for
the Parent and its Subsidiaries for such month, in each case, prepared in accordance with GAAP
(other than with respect to the absence of footnotes and normal year-end audit adjustments)
certified by the chief financial officer of the Parent as fairly presenting in all material
respects the financial condition of such entities as at the date and for the period covered;
provided that with respect to the foregoing relating to any Fiscal Quarter, to the extent the
Parent’s quarterly report on Form 10-Q for such quarter shall satisfy the requirements of clause
(i) of this Section 7.01(b), the Administrative Agent and the Lenders will accept such Form
10-Q in lieu of such item.

7.02 Certificates; Other Information.

Deliver to the Administrative Agent for distribution to each Lender, in form and detail
reasonably satisfactory to the Administrative Agent and the Required Lenders:

(a) Compliance Certificates. Contemporaneously with the furnishing of a copy of each
annual audit report pursuant to Section 7.01(a), each set of quarterly statements pursuant
to Section 7.01(b), and at least five (5) days prior to any accrual in an incremental
amount in excess of $1,000,000 for, or payment of, any Duty Amounts, a duly completed Compliance
Certificate, dated the date of such annual report, quarterly statement, or proposed accrual or
payment, as applicable, and signed by a Senior Officer of the Parent, containing (i) if required
pursuant to the terms hereof, a computation of each of the financial ratios and restrictions set
forth in Section 8.13 (or Section 8.14 in the case of any accrual or payment of any
Duty Amounts) and certifying that such officer has not become aware of any Default that has
occurred and is continuing or, if there is any such event, describing it and the steps, if any,
taken or being taken to cure it and (ii) with respect to the annual audit report and quarterly
statements only, a written statement of the Parent’s management setting forth a discussion of the
financial condition of the Parent and its Subsidiaries and any material changes in their financial
condition and/or results of operations.

 

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(b) Reports to the SEC and to Shareholders. Promptly upon the filing or sending
thereof, without duplication, copies of all regular, periodic or special reports, if any, of the
Parent or any Loan Party filed with the SEC; copies of all registration statements of the Parent or
any Subsidiary filed with the SEC (other than on Form S-8), if any; and copies of all proxy
statements or other communications made to security holders generally.

(c) Management Reports. Promptly upon receipt thereof copies of all detailed
financial and management reports submitted to any Loan Party by its independent auditors in
connection with each annual or interim audit made by such auditors of the books of the Parent and
its Subsidiaries.

(d) Projections. As soon as practicable, and in any event not later than 45 days
after the commencement of each Fiscal Year (commencing with Fiscal Year 2012), financial
projections for the Parent and its Subsidiaries for such Fiscal Year (including monthly operating
and cash flow budgets) prepared in a manner consistent with the projections delivered by the Parent
to the Administrative Agent prior to the Closing Date or otherwise in a manner reasonably
satisfactory to the Administrative Agent, accompanied by a certificate of the chief financial
officer of the Parent to the effect that (i) such projections were prepared in good faith, (ii) the
Parent and its Subsidiaries had a reasonable basis for the assumptions contained in such
projections and (iii) such projections have been prepared in accordance with such assumptions (it
being recognized that any projections provided hereunder by any Loan Party are subject to
uncertainties and contingencies, are based on good faith estimates and assumptions believed by such
Loan Party to be reasonable as of the date of the applicable projections and upon the best
information then reasonably available to the Loan Parties and that actual results during the period
or periods covered by any such projections may differ materially from projected results;
provided however that if, during the period or periods covered by any such
projections, management of any Loan Party determines that the projections no longer accurately
reflect in any material respect the projected financial results for such period or periods, as the
case may be, the chief financial officer of the Parent shall, as soon as practicable, provide to
the Administrative Agent revised projections for such period or periods).

(e) Material Notices. Promptly following receipt, copies of any notices of default,
termination or acceleration or any other material notices received from any holder or trustee of,
under or with respect to any Subordinated Debt, the Earnout Consideration, the Acquisition
Documents or any other material agreement.

(f) Other Information. Promptly from time to time, such other information concerning
the Parent and its Subsidiaries as any Lender or the Administrative Agent may reasonably request.

Documents required to be delivered pursuant to Section 7.01(a) or (b) or
Section 7.02(b) (to the extent any such documents are included in materials otherwise filed
with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been
delivered on the date (i) on which the Parent posts such documents, or provides a link thereto on
the Parent’s website on the Internet at the website address listed on Schedule 11.02; or
(ii) on which such documents are posted on the Parent’s behalf on an Internet or intranet website,
if any, to which each Lender and the Administrative Agent have access (whether a commercial,
third-party website or whether sponsored by the Administrative Agent); provided that: (i)
the Parent shall deliver paper copies of such documents to the Administrative Agent or any Lender
upon its request to the Parent to deliver such paper copies until a written request to cease
delivering paper copies is given by the Administrative Agent or such Lender and (ii) the Parent
shall notify the Administrative Agent and each Lender (by telecopier or electronic mail) of the
posting of any such documents and provide to the Administrative Agent by electronic mail electronic
versions (i.e., soft copies) of such documents. The Administrative Agent shall have no
obligation to request the delivery of or to maintain paper copies of the documents referred to
above, and in any event shall have no responsibility to monitor compliance by the Parent with any
such request by a Lender for delivery, and
each Lender shall be solely responsible for requesting delivery to it or maintaining its
copies of such documents.

 

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The Borrowers hereby acknowledge that (a) the Administrative Agent and/or the Arranger will
make available to the Lenders and the L/C Issuer materials and/or information provided by or on
behalf of the Borrowers hereunder (collectively, “Borrower Materials”) by posting the
Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and
(b) certain of the Lenders (each a “Public Lender”) may have personnel who do not wish to
receive material non-public information with respect to the Parent or its Affiliates, or the
respective securities of any of the foregoing, and who may be engaged in investment and other
market-related activities with respect to such Persons’ securities. The Borrowers hereby agree
that (w) all Borrower Materials that are to be made available to Public Lenders shall be clearly
and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall
appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,” the
Borrowers shall be deemed to have authorized the Administrative Agent, the Arranger, the L/C Issuer
and the Lenders to treat such Borrower Materials as not containing any material non-public
information with respect to the Parent or its securities for purposes of United States federal and
state securities laws (provided, however, that to the extent such Borrower
Materials constitute Information, they shall be treated as set forth in Section 11.07); (y)
all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the
Platform designated as “Public Side Information;” and (z) the Administrative Agent and the Arranger
shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable
only for posting on a portion of the Platform that is not marked as “Public Side Information.”
Notwithstanding the foregoing, the Borrowers shall be under no obligation to mark any Borrower
Materials “PUBLIC.”

7.03 Notice of Default, Litigation and Other Matters.

Promptly upon becoming aware of any of the following, written notice describing the same and
the steps being taken by the Loan Party or Subsidiary affected thereby with respect thereto:

(a) the occurrence of a Default;

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

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

 

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

(e) any cancellation, any material change or any increase (which increase is as a result of
deterioration in the risk profile of any Loan Party or Subsidiary) in the deductible in any
insurance policy or coverage maintained by any Loan Party; or

(f) any notices of default, termination or acceleration or any other material notices received
from any holder or trustee of under or with respect to any Subordinated Debt or the Acquisition
Documents.

7.04 Books, Records and Inspections.

Keep its books and records in accordance with sound business practices sufficient to allow the
preparation of financial statements in accordance with GAAP; permit the Administrative Agent, any
Lender or any representative thereof to inspect the properties and operations of the Loan Parties
and the Subsidiaries during regular business hours and with reasonable prior notice (or any time
without notice if an Event of Default exists); provided that any Lender’s inspection must
be coordinated with an inspection by the Administrative Agent or one of its representatives; and
permit, during regular business hours and with reasonable prior notice (or at any time without
notice if an Event of Default exists), the Administrative Agent or any representative thereof to
visit any or all of its offices, to discuss its financial matters with its officers and its
independent auditors (and the Loan Parties each hereby authorizes such independent auditors to
discuss such financial matters with any Lender or the Administrative Agent or any representative
thereof), and to examine (and, at the expense of the Loan Parties) photocopy extracts from any of
its books or other records; and permit, during regular business hours and with reasonable prior
notice (or at any time without notice if an Event of Default exists), the Administrative Agent and
its representatives to inspect the Collateral and other tangible assets of the Loan Parties, to
perform appraisals of the Collateral and real property of the Loan Parties, and to inspect, audit,
check and make copies of and extracts from the books, records, computer data, computer programs,
journals, orders, receipts, correspondence and other data relating to inventory, accounts
receivable and any other Collateral. The Loan Parties shall be jointly and severally liable for
all reasonable expenses of the Administrative Agent incurred in connection with such inspections or
audits, including the reasonable fees and expenses of its representatives and/or agents (it being
agreed that any Lender may accompany the Administrative Agent at its own expense);
provided, however, the Loan Parties shall not be required to reimburse the
Administrative Agent for more than two inspections and/or audits and more than two appraisals in
any Fiscal Year (unless an Event of Default exists, in which case there shall be no limits on
audits, inspections and appraisals); it being acknowledged that a single inspection, audit and/or
appraisal may entail visits to the multiple locations of books, records and assets of the Loan
Parties; and it being further agreed that the costs for each inspection/audit shall not exceed
$35,000, in aggregate, and the costs for each appraisal shall not exceed $20,000, in aggregate, in
each case, plus reasonable out of pocket expenses and disbursements.

 

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7.05 Maintenance of Property; Insurance.

(a) Obligation to Maintain Properties. Keep all Collateral and all other property
useful and necessary in the business of the Loan Parties and Subsidiaries in good working order and
condition,
ordinary wear and tear excepted, and make all necessary replacements of and repairs to the
equipment so that the operating efficiency and the value thereof shall at all times be preserved
and maintained.

(b) Obligation to Maintain Insurance. Maintain with responsible insurance companies,
such insurance coverage as may be required by any Law applicable to it and such other insurance, to
such extent and against such hazards and liabilities, as is customarily maintained by companies
similarly situated, but which shall insure against all risks and liabilities of the type identified
on Schedule 6.15; and, upon request of the Administrative Agent or any Lender, furnish to
the Administrative Agent a certificate setting forth in reasonable detail the nature and extent of
all insurance maintained by the Loan Parties and Subsidiaries. The Loan Parties shall cause each
issuer of an insurance policy to provide the Administrative Agent with an endorsement (i) showing
the Administrative Agent as loss payee with respect to each policy of property or casualty
insurance and naming the Administrative Agent as an additional insured with respect to each policy
of liability insurance, (ii) providing that 30 days’ notice will be given to the Administrative
Agent prior to any cancellation of (or 10 days’ notice in the event of non-payment of premiums),
material reduction or change in coverage provided by or other material modification to such policy
and (iii) reasonably acceptable in all other respects to the Administrative Agent. The Loan
Parties shall execute and deliver to the Administrative Agent a collateral assignment, in form and
substance reasonably satisfactory to the Administrative Agent, of the proceeds of each business
interruption insurance policy maintained by the Loan Parties.

(c) Forced Place Coverage. UNLESS THE LOAN PARTIES PROVIDE THE ADMINISTRATIVE AGENT
WITH EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY THIS AGREEMENT AND AFTER THE ADMINISTRATIVE
AGENT’S WRITTEN DEMAND THEREFOR, THE ADMINISTRATIVE AGENT MAY (BUT SHALL HAVE NO OBLIGATION TO)
PURCHASE SUCH INSURANCE AT THE LOAN PARTIES’ EXPENSE TO PROTECT THE ADMINISTRATIVE AGENT’S AND THE
LENDERS’ INTERESTS UNDER THE LOAN DOCUMENTS. THIS INSURANCE MAY, BUT NEED NOT, PROTECT ANY LOAN
PARTY’S INTERESTS. THE COVERAGE THAT THE ADMINISTRATIVE AGENT PURCHASES MAY NOT PAY ANY CLAIM THAT
IS MADE AGAINST ANY LOAN PARTY IN CONNECTION WITH THE COLLATERAL. THE LOAN PARTIES MAY LATER
CANCEL ANY INSURANCE PURCHASED BY THE ADMINISTRATIVE AGENT, BUT ONLY AFTER PROVIDING THE
ADMINISTRATIVE AGENT WITH EVIDENCE THAT THE LOAN PARTIES HAVE OBTAINED INSURANCE AS REQUIRED BY
THIS AGREEMENT. IF THE ADMINISTRATIVE AGENT PURCHASES ANY SUCH INSURANCE, THE LOAN PARTIES WILL BE
JOINTLY AND SEVERALLY RESPONSIBLE FOR THE COSTS OF THAT INSURANCE, INCLUDING INTEREST AND ANY OTHER
CHARGES THAT MAY BE IMPOSED WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF THE
CANCELLATION OR EXPIRATION OF THE INSURANCE. THE COSTS OF THE INSURANCE MAY BE ADDED TO THE
PRINCIPAL AMOUNT OF THE LOANS OWING HEREUNDER THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST
OF THE INSURANCE THE LOAN PARTIES MAY BE ABLE TO OBTAIN ON THEIR OWN.

7.06 Compliance with Laws; Payment of Taxes and Liabilities.

(a) Comply in all material respects with all applicable Laws, except where failure to comply
would not have or could not reasonably be expected to have a Material Adverse Effect;

(b) without limiting clause (a) above, ensure that no person who owns a controlling
interest in or otherwise controls the any Loan Party or Subsidiary is or shall be (i) listed on the
Specially Designated Nationals and Blocked Person List maintained by the Office of Foreign Assets
Control (“OFAC”), Department of the Treasury, and/or any other similar lists maintained by
OFAC pursuant to any authorizing statute, Executive Order or regulation or (ii) a person designated
under Section 1(b), (c)
or (d) of Executive Order No. 13224 (September 23, 2001), any related enabling legislation or
any other similar Executive Orders;

 

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(c) without limiting clause (a) above, comply in all material respects, with the Bank Secrecy
Act and all applicable anti-money laundering Laws; and

(d) pay, prior to delinquency, all federal and state income taxes and all other material taxes
and other governmental charges against it or any Collateral, as well as claims of any kind which,
if unpaid, could become a Lien (other than a Permitted Lien) on any of its property;
provided that the foregoing clause (d) shall not require any Loan Party or any Subsidiary
to pay any such tax or charge so long as it shall contest the validity thereof in good faith by
appropriate proceedings and shall set aside on its books adequate reserves with respect thereto in
accordance with GAAP and, in the case of a claim which could become a Lien on any Collateral, such
contest proceedings shall stay the foreclosure of such Lien or the sale of any portion of the
Collateral to satisfy such claim.

7.07 Maintenance of Existence, Etc.

Subject to Section 8.04, maintain and preserve, (a) its existence and good standing in
the jurisdiction of its organization and (b) its qualification to do business and good standing in
each jurisdiction where the nature of its business makes such qualification necessary (other than
such jurisdictions in which the failure to be qualified or in good standing would not have or could
not reasonably be expected to have a Material Adverse Effect).

7.08 Use of Proceeds.

Use the proceeds of the Credit Extensions to refinance or repay existing Indebtedness on the
Closing Date, if any, for working capital purposes, for capital expenditures, for payment of the
Earnout Consideration due and owing and permitted to be paid by the applicable Loan Parties
pursuant to Section 8.03, for payment of any Duty Amounts due and owing and permitted to be
paid by the applicable Loan Parties pursuant to Section 8.14 and for other general business
purposes.

7.09 Employee Benefit Plans.

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

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

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

 

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7.10 Environmental Matters.

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

(b) Promptly notify the Administrative Agent in writing upon learning there is or are, in each
case, which are reasonably likely to result in material liability to a Loan Party or any Subsidiary
under any applicable Environmental Law (i) any Hazardous Materials (other than those used by the
Loan Parties, their Subsidiaries or tenants under leases at any real property of any Loan Party or
Subsidiary in the ordinary course of their businesses and in compliance with all Environmental
Laws) present on such real property; (ii) any release of Hazardous Materials in, on, under, from or
migrating towards such real property; (iii) any material non-compliance with Environmental Laws
related in any way to such real property; (iv) any actual or reasonably likely Liens and other
encumbrances imposed pursuant to any Environmental Law; (v) any investigation or action or claim,
whether threatened or pending, by any Governmental Authority or third party pertaining to the
release of Hazardous Materials in, on, under, from, or migrating towards such real property; and
(vi) any installation of wells, piping, or other equipment at such real property to investigate,
remediate or otherwise address any release of Hazardous Materials at, on, in or in the vicinity of
such real property.

7.11 Additional Guarantors.

If, after the Closing Date, any Loan Party creates or acquires, either directly or indirectly,
any Domestic Subsidiary, within thirty (30) days following the creation or acquisition thereof (a)
cause such Subsidiary to become either a Borrower or a Guarantor; provided, that such
Subsidiary may become a Borrower hereunder only if such Subsidiary is a Domestic Wholly-Owned
Subsidiary and (b) cause such Subsidiary to execute and deliver to the Administrative Agent (i) a
Joinder Agreement and (ii) any further documents, instruments or agreements as the Administrative
Agent may reasonably require in order to grant the Administrative Agent a perfected first priority
security interest (subject only to Permitted Liens) in substantially all of the assets of such
Subsidiary. Notwithstanding the foregoing, IP Sub shall not be or be required to become a Loan
Party until such time as it is not restricted from doing so by its Organization Documents (as in
effect on the Closing Date). At such time as IP Sub is not restricted by its Organization
Documents from becoming a Loan Party, the Loan Parties shall cause IP Sub to become a Loan Party in
the manner contemplated by this Section 7.11.

7.12 Preparation of Environmental Reports.

If at any time during the term of this Agreement the Lenders have a reasonable basis for
believing that a discharge of Hazardous Materials has occurred or a material violation of
Environmental Laws exists at any real property owned or leased by any of the Loan Parties, at the
request of the Required Lenders, subject to any reasonable limitations imposed by the owner of any
such leased real property, provide to the Lenders within 90 days after such request, at the expense
of the Loan Parties, an environmental site assessment report for such real property, prepared by an
environmental consulting firm reasonably acceptable to the Administrative Agent, indicating the
presence or absence of Hazardous Materials and the estimated cost of any compliance, removal or
remedial action in connection with any Hazardous Materials on such properties; without limiting the
generality of the foregoing, if the Administrative Agent determines at any time that a material
risk exists that any such report will not be
provided within the time referred to above, the Administrative Agent may retain an
environmental consulting firm to prepare such report at the expense of the Loan Parties, and the
Loan Parties each hereby grants and agrees to cause any Subsidiary that owns any property described
in such request to grant at the time of such request to the Administrative Agent, the Lenders, such
firm and any agents or representatives thereof an irrevocable non-exclusive license, subject to the
rights of tenants, to enter onto their respective properties to undertake such an assessment.

 

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7.13 Pledged Assets.

(a) Equity Interests. Cause (i) 100% of the issued and outstanding Equity Interests
of each Domestic Subsidiary and (ii) 65% (or such greater percentage that, due to a change in an
applicable Law after the date hereof, (A) could not reasonably be expected to cause the
undistributed earnings of such Foreign Subsidiary as determined for United States federal income
tax purposes to be treated as a deemed dividend to such Foreign Subsidiary’s United States parent
and (B) could not reasonably be expected to cause any material adverse tax consequences) of the
issued and outstanding Equity Interests entitled to vote (within the meaning of Treas. Reg. Section
1.956-2(c)(2)) and 100% of the issued and outstanding Equity Interests not entitled to vote (within
the meaning of Treas. Reg. Section 1.956-2(c)(2)) in each Foreign Subsidiary directly owned by any
Loan Party to be subject at all times to a first priority, perfected Lien in favor of the
Administrative Agent pursuant to the terms and conditions of the Collateral Documents, together
with opinions of counsel and any filings and deliveries reasonably necessary in connection
therewith to perfect the security interests therein, all in form and substance reasonably
satisfactory to the Administrative Agent.

(b) Other Property. (i) Cause all owned and leased real and personal property (other
than Excluded Property) of each Loan Party to be subject at all times to first priority, perfected
and, in the case of real property (whether leased or owned), title insured Liens in favor of the
Administrative Agent to secure the Obligations pursuant to the terms and conditions of the
Collateral Documents, subject in any case to Permitted Liens and (ii) deliver (or in the case of
landlord’s waivers, use commercially reasonable efforts to deliver) such other documentation as the
Administrative Agent may reasonably request in connection with the foregoing, including, without
limitation, appropriate UCC-1 financing statements, real estate title insurance policies, surveys,
environmental reports, landlord’s waivers (for locations with Inventory valued in excess of
$5,000,000), certified resolutions and other organizational and authorizing documents of such
Person, and favorable opinions of counsel to such Person (which shall cover, among other things,
the legality, validity, binding effect and enforceability of the documentation referred to above
and the perfection of the Administrative Agent’s Liens thereunder), all in form, content and scope
reasonably satisfactory to the Administrative Agent.

7.14 Further Assurances.

Promptly upon the reasonable request of the Administrative Agent, or any Lender through the
Administrative Agent, (a) correct any material defect or error that may be discovered in any Loan
Document or in the execution, acknowledgment, filing or recordation thereof, and (b) do, execute,
acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such
further acts, deeds, certificates, assurances and other instruments as the Administrative Agent, or
any Lender through the Administrative Agent, may reasonably request from time to time in order to
(i) carry out the purposes of the Loan Documents, (ii) to the fullest extent permitted by
applicable Law and in accordance with the terms of the Collateral Documents, subject any Loan
Party’s properties, assets, rights or interests to the Liens now or hereafter intended to be
covered by any of the Collateral Documents and (iii) maintain the validity and effectiveness of the
Collateral Documents and perfect and maintain the validity, effectiveness and priority of the Liens
intended to be created thereunder.

 

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7.15 Material Contracts.

Perform and observe all the terms and provisions of each instrument, document or agreement
material to the business of the Loan Parties and the Subsidiaries, taken as a whole (a
“Material Contract”), required to be performed or observed by it, maintain each such
Material Contract in full force and effect, enforce each such Material Contract in accordance with
its terms and make to each other party to each such Material Contract such demands and requests for
information and reports or for action as any Loan Party or any of its Subsidiaries is entitled to
make under such Material Contract, except where the failure to do so, either individually or in the
aggregate, would not reasonably be expected to result in a Material Adverse Effect.

7.16 Designation as Senior Debt.

Designate all Obligations as constituting senior indebtedness under and for purposes of any
Subordinated Debt.

7.17 Deposit Accounts.

Except for Excluded Accounts, cause the Loan Parties to maintain their primary domestic
operating deposit accounts with one or more financial institutions that have entered into an
Account Control Agreement with the Administrative Agent and the applicable Loan Party. For the
purposes of hereof, “Excluded Accounts” means (a) deposit accounts used exclusively for payroll,
payroll taxes or employee benefits, (b) deposit accounts used in the ordinary course of business
for daily accounts payable and that have an ending daily balance of zero and (c) deposit accounts
containing not more than $2,000,000 at the end of any day.

7.18 Post-Closing Items.

To the extent not delivered on the Closing Date, within 45 days following the Closing Date (or
such later date as agreed by the Administrative Agent in its sole discretion), deliver items of the
type described in Sections 5.01(f)(ii) and 5.01(f)(iii) with respect to the owned
real property located at 2305 Breton Industrial Park Drive S.E., Kentwood, Michigan.

ARTICLE VIII

NEGATIVE COVENANTS

Until the Obligations are Fully Satisfied, no Loan Party shall, nor shall it permit any
Subsidiary (excluding IP Sub prior to such time as IP Sub first becomes a Loan Party) to, directly
or indirectly:

8.01 Indebtedness.

Create, incur, assume or suffer to exist any Indebtedness, except:

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

(b) Indebtedness secured by Liens permitted by Section 8.02(d); provided that
the aggregate amount of all such Indebtedness at any time outstanding shall not exceed $3,000,000;

 

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(c) (i) unsecured Indebtedness among Loan Parties, (ii) unsecured Indebtedness owing among
Subsidiaries that are not Loan Parties, (iii) unsecured Indebtedness owing by Loan Parties to
Foreign Subsidiaries of Loan Parties, provided that any such Indebtedness shall be
subordinated to the Obligations in a manner reasonably satisfactory to the Administrative Agent,
and (iv) unsecured Indebtedness owing by Foreign Subsidiaries of Loan Parties to Loan Parties to
the extent permitted by Section 8.10(k);

(d) unsecured Subordinated Debt (other than Indebtedness described in Section 8.01(c)
above) in an amount at any time outstanding not to exceed $7,500,000; provided that such
Indebtedness remains subject to subordination agreements reasonably acceptable to the
Administrative Agent;

(e) obligations (contingent or otherwise) existing or arising under any Swap Contract,
provided that such obligations are (or were) entered into by such Person in the ordinary
course of business for the purpose of directly mitigating risks associated with liabilities,
commitments, investments, assets, or property held or reasonably anticipated by such Person, or
changes in the value of securities issued by such Person, and not for purposes of speculation or
taking a “market view;”;

(f) Indebtedness existing on the Closing Date and described on Schedule 8.01 and any
extension, renewal or refinancing thereof so long as neither the principal amount thereof is
increased, the weighted average life to maturity decreased nor any additional collateral is granted
as security therefor;

(g) Indebtedness (other than Indebtedness described in Section 8.01(c) above) of
Foreign Subsidiaries in an aggregate principal amount not to exceed $5,000,000 at any time
outstanding;

(h) unsecured Contingent Liabilities arising with respect to customary indemnification
obligations in favor of sellers in connection with Permitted Acquisitions and purchasers in
connection with dispositions permitted under Section 8.04;

(i) up to $5,000,000 at any time outstanding of Acquired Debt assumed in Permitted
Acquisitions which, if secured, the Liens thereunder would be of a type permitted pursuant to
Section 8.02(d);

(j) unsecured Indebtedness in respect of bid, performance or surety, appeal or similar bonds
issued for the account of and completion guarantees in the ordinary course of business;

(k) Indebtedness arising from the honoring by a bank or other financial institution of a
check, draft or similar instrument inadvertently drawn against insufficient funds in the ordinary
course of business; provided, however, that such Indebtedness is extinguished
within five Business Days of incurrence;

(l) Indebtedness arising in connection with endorsement of instruments for deposit in the
ordinary course of business; and

(m) guaranty obligations with respect to Indebtedness permitted by this Section 8.01;
provided that any guaranty by a Loan Party of obligations of a Subsidiary that is not a
Loan Party must be permitted by Section 8.10 (excluding Section 8.10(c)).

 

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8.02 Liens.

Create or permit to exist any Lien on any of its real or personal properties, assets or rights
of whatsoever nature (whether now owned or hereafter acquired), except:

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

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

(c) Liens described on Schedule 8.02 existing as of the Closing Date;

(d) subject to the dollar limitation set forth in Section 8.01(b) and Section
8.01(i), (i) Liens (including Liens having priority over the Liens pursuant to the Loan
Documents) arising in connection with Capital Leases (and attaching only to the property being
leased), (ii) Liens (including Liens having priority over the Liens pursuant to the Loan Documents)
of the type described in subclauses (i) and (iii) of this Section 8.02(d) existing on
property at the time of the acquisition thereof by any Loan Party (and not created in contemplation
of such acquisition) pursuant to any Permitted Acquisition and (iii) Liens (including Liens having
priority over the Liens pursuant to the Loan Documents) that constitute purchase money security
interests on any capital asset securing debt incurred for the purpose of financing all or any part
of the cost of acquiring such capital asset, provided that any such Lien attaches solely to
the capital asset so acquired and secures no more than the purchase price (or portion) thereof
financed thereby;

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

(f) Liens in favor of the Administrative Agent under the Loan Documents;

(g) Liens on deposit accounts granted or arising in the ordinary course of business in favor
of depositary banks maintaining such deposit accounts solely to secure customary account fees and
charges payable in respect of such deposit accounts and overdrafts;

(h) Liens in favor of custom brokers for taxes, assessments and governmental charges the
payment of which is not required under Section 7.06 payable in connection with the
importation of inventory in the ordinary course of business;

(i) leases or subleases granted to other Persons (as lessee thereof) not materially
interfering with the conduct of the business;

(j) precautionary UCC financing statement filings regarding operating leases;

(k) Liens arising out of the existence of judgment or awards not giving rise to an Event of
Default; provided that the applicable Loan Parties or Subsidiaries shall promptly seek the
stay of, or otherwise satisfy any such Lien not being contested in good faith;

(l) inchoate statutory and common law landlords’ liens under leases;

 

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(m) the replacement, extension or renewal of any Lien permitted by Section 8.02(c) or
Section 8.02(d) above upon or in the same property subject thereto arising out of the
extension, renewal or replacement of the Indebtedness secured thereby (without increase in the
amount or priority thereof or the security or collateral therefor or decrease in the weighted
average life to maturity thereof);

(n) Liens on assets of Foreign Subsidiaries securing Indebtedness of such Foreign
Subsidiaries; and

(o) any other Liens securing obligations in an aggregate amount not exceeding $500,000 at any
time.

8.03 Restricted Payments.

Except as permitted pursuant to the following sentence, (a) make any distribution to any
holders of its Equity Interests, (b) purchase or redeem any of its Equity Interests, (c) pay any
management fees or similar fees to any of its direct or indirect equityholders or any Affiliate
thereof (d) pay, redeem, prepay, defense, purchase, repurchase or make any other payment on or in
respect of any Subordinated Debt, including under any guaranty thereof, (e) make any payment which
would result in an Earnout Default or (f) set aside funds for any of the foregoing (each a
“Restricted Payment”). Notwithstanding the foregoing:

(i) each Subsidiary may make cash or non-cash distributions to Persons that own Equity
Interests in such Subsidiary, ratably according to their respective holdings of the type of Equity
Interest in respect of which such distribution is being made;

(ii) (1) so long as no Default exists or would result therefrom, the Loan Parties and their
Subsidiaries may make regularly scheduled payments of interest in respect of Subordinated Debt
(other than Subordinated Debt owing to any Affiliate) to the extent permitted under the
subordination provisions thereof and (2) the Loan Parties and the Subsidiaries shall be permitted
to accrue all non-cash interest (i.e., PIK interest) on its Subordinated Debt and non-cash
dividends on its Equity Interests consisting of preferred Equity Interests;

(iii) [reserved];

(iv) any Loan Party or Subsidiary thereof may pay dividends or make other distributions of its
common Equity Interests in non-redeemable, non preferential and non-convertible common Equity
Interests payable ratably to all of the holders of its common Equity Interests;

(v) so long as all of the Earnout Consideration Conditions Precedent have been fully satisfied
and no Earnout Default has occurred and is continuing or would result therefrom, the Loan Parties
may pay the Earnout Consideration (or any portion thereof that may be paid at such time in
accordance with this clause (v)), if any, as and when due and payable in accordance with the terms
of the Acquisition Documents;

(vi) so long as both before and immediately after giving effect to the payments described in
this clause (vi), (1) no Default exists or would result therefrom and (2) no violation of the
financial covenants set forth in Section 8.13 would then exist or would, on a Pro Forma
Basis result therefrom, upon no less than 10 days’ prior written notice to the Administrative
Agent, accompanied by a certificate of the chief financial officer of the Parent delivered to the
Administrative Agent setting forth the calculations of such financial covenants (after giving
effect to such payments) in detail reasonably acceptable to the Administrative Agent, the Parent
may pay a regular quarterly dividend payment payable
out of legally available funds on the outstanding common stock of the Parent;
provided, that notwithstanding the forgoing, prior to the Duty Conclusion Date, the
aggregate amount of all Restricted Payments made pursuant to this clause (vi) and the following
clause (vii) shall not exceed $5,000,000; and

 

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(vii) so long as both before and immediately after giving effect to the payments described in
this clause (vii), (1) no Default exists or would result therefrom, (2) no violation of the
financial covenants set forth in Section 8.13 would then exist or would, on a Pro Forma
Basis result therefrom and (3) the Consolidated Leverage Ratio (as so calculated on a Pro Forma
Basis) is at least 0.25 to 1.0 less than the maximum then permitted by Section 8.13 for the
applicable period, upon no less than 3 Business Days’ prior written notice to the Administrative
Agent, accompanied by a certificate of the chief financial officer of the Parent delivered to the
Administrative Agent setting forth the calculations of such financial covenants (after giving
effect to such payments) in detail reasonably acceptable to the Administrative Agent, the Parent
may repurchase or redeem Equity Interests of the Parent; provided, that notwithstanding the
forgoing, prior to the Duty Conclusion Date, the aggregate amount of all Restricted Payments made
pursuant to this clause (vii) and the preceding clause (vi) shall not exceed $5,000,000.

8.04 Mergers, Consolidations, Sales and Other Transactions Outside the Ordinary Course of
Business.

(a) Dispose of any of its assets or Equity Interests except for (i) sales of inventory in the
ordinary course of business, (ii) sales of obsolete and unusable equipment in the ordinary course
of business, (iii) other Dispositions of assets (other than Equity Interests of Subsidiaries and
accounts receivable) for at least fair market value (as determined by the Board of Directors) so
long, as the fair market value of all assets Disposed of in any Fiscal Year does not exceed
$2,000,000, (iv) in the case of its Equity Interests, as permitted pursuant to Section
8.04(d),(v) Dispositions of the assets of or the Equity Interests in IP Sub for at least fair
market value (as determined by the Board of Directors), (vi) Dispositions of property to a Borrower
or any Subsidiary; provided, that if the transferor of such property is a Loan Party then
the transferee thereof must be a Loan Party, (vii) Dispositions of accounts receivable in
connection with the collection or compromise thereof, (viii) licenses, sublicenses, leases or
subleases granted to others not interfering in any material respect with the business of any
Borrower or any Subsidiary, (ix) the dissolution or liquidation of any Inactive Subsidiary if the
Parent determines in good faith that any such dissolution or liquidation is in the best interest of
the Loan Parties and (x) the sale of real property owned by Sassy as of the Closing Date;

(b) Enter into any Sale and Leaseback Transaction;

(c) Prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled maturity
thereof in any manner, or make any payment in violation of any subordination terms of, any
Indebtedness (other than the Obligations), except (i) in connection with any permitted refinancing
thereof and (ii) so long as no Event of Default exists, prepayments, redemptions, defeasances and
other satisfactions of other Indebtedness (other than Subordinated Debt) in an aggregate amount not
to exceed $1,000,000 during the term of this Agreement;

 

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(d) Be a party to any merger or consolidation or, except as otherwise permitted pursuant to
this Section 8.04, Section 8.10(a), Section 8.10(f) or Section
8.10(i), purchase or otherwise acquire the assets or the Equity Interests of any class of any
other Person except for: (1) (A) the merger or consolidation of any Loan Party into any other Loan
Party, provided that (x) if a Borrower is a party to such transaction, the surviving Person
shall be a Borrower and (y) if a Wholly-Owned Subsidiary is a party to such transaction, the
surviving Person shall be a Wholly-Owned Subsidiary, (B) the Disposition of any, all or
substantially all of the assets of one Loan Party to another Borrower, (C) the Disposition of any,
all or substantially all of the assets of one Guarantor to another Guarantor, (D) the merger or
consolidation of any Subsidiary into the
Parent or another Subsidiary of the Parent provided that (x) if a Loan Party is a
party to such transaction, the surviving Person shall be a Loan Party and (y) if a Wholly-Owned
Subsidiary is a party to such transaction, the surviving Person shall be a Wholly-Owned Subsidiary
or (E) the Disposition of any, all or substantially all of the assets of any Subsidiary (other than
a Loan Party) to any Loan Party or another Subsidiary (that is not a Loan Party) or (2) any
Acquisition by a Loan Party (other than a Loan Party which is not a Wholly-Owned Subsidiary) where:

(i) the business, divisions or operating units acquired are for use in the businesses
engaged in by the Loan Parties on the Closing Date, or business reasonably related or
complementary to such businesses;

(ii) immediately before and after giving effect to such Acquisition, no Default shall
exist;

(iii) immediately after giving effect to such Acquisition, (A) the Loan Parties are in
compliance on a Pro Forma Basis with all the financial covenants set forth in Section
8.13 (which, in the case of the pro forma Consolidated Leverage Ratio, shall be at least
0.25:1.0 less than the maximum Consolidated Leverage Ratio then permitted by Section
8.13); and (B) Excess Revolving Loan Availability shall not be less than $15,000,000;

(iv) in the case of the Acquisition of any Person, the governing body of such Person
has approved such Acquisition;

(v) [reserved];

(vi) reasonably prior to such Acquisition, the Administrative Agent shall have received
evidence that the Consolidated EBITDA of such Person and/or business or division for the
most recent 12 month period for which financial statements are available, as adjusted by
such add-backs with respect to cash expenses not related to operations and identifiable cost
savings, in each case, which are reasonably acceptable to the Administrative Agent or which
are permitted under Article 11 of Regulation S-X promulgated under the Securities Act of
1933, as amended, is not less than zero;

(vii) the Administrative Agent shall have received a certificate of Senior Officer of
the Parent containing calculations of the matters set forth in clause (iii) above;

(viii) if such Acquisition is structured as an acquisition of Equity Interests, such
Acquisition is of more than 50% of the Equity Interests of such Person or is made through a
Domestic Wholly-Owned Subsidiary;

(ix) if such Acquisition is structured as an asset acquisition, such Loan Party shall
not assume any obligations or liabilities of the seller other than Acquired Debt to the
extent permitted pursuant to Section 8.01(i); and

(x) if the Acquisition is structured as a merger, a Loan Party is the surviving Person;
provided that no Borrower may enter into a merger unless such Borrower shall be the
surviving Person,

(any such Acquisition described in this clause (2), being a “Permitted
Acquisition”).

 

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8.05 Modifications of Organization Documents.

(a) Permit the Organization Documents of any Loan Party or Subsidiary to be amended or
modified in any way which could reasonably be expected to materially adversely affect the interests
of the Lenders.

(b) In the case of any Loan Party, change its state of formation or its organizational form
unless it gives the Administrative Agent at least 30 days (or such lesser amount of time as
consented to by the Administrative Agent) prior written notice thereof and takes all actions
reasonably requested by the Administrative Agent to maintain the perfection or priority of any Lien
or security interest granted hereunder.

8.06 Transactions with Affiliates.

Enter into, or cause, suffer or permit to exist any transaction, arrangement or contract with
any of its other Affiliates (including any Subsidiary or joint venture) which is on terms, which
are less favorable than are obtainable from any Person which is not one of its Affiliates, other
than (i) customary and reasonable employment arrangements with employees (including without
limitation, incentive compensation arrangements) and benefit programs and entered into in the
ordinary course of business and pursuant to the reasonable requirements of such Person’s business
and, in the case of any senior officers or directors of any Loan Party, approved by the Board of
Directors and permissible under Law, (ii) customary indemnification agreements and insurance
arrangements entered into for the benefit of directors or officers entered into in the ordinary
course of business consistent with past practices and pursuant to the reasonable requirements of
such Person’s business, (iii) as permitted pursuant to Sections 8.10(a), (g) and
(j), (iv) transactions with its officers or directors providing for the payment of
customary and reasonable fees, and indemnification and reimbursement of expenses, upon customary
and reasonable terms, (v) entering into perpetual, royalty-free (unless such royalty is payable to
a Loan Party), irrevocable licenses of IP Rights with other Loan Parties and Subsidiaries and (vi)
to the extent otherwise expressly permitted hereunder, intercompany transactions between and among
Loan Parties and their Subsidiaries.

8.07 Unconditional Purchase Obligations.

Enter into, guaranty or be a party to any material contract for the purchase of materials,
supplies or other property or services if such contract requires that payment be made by it
regardless of whether delivery is ever made of such materials, supplies or other property or
services.

8.08 Inconsistent Agreements.

Enter into any agreement containing any provision which would (a) be violated or breached by
any Credit Extension to the Borrowers hereunder or by the performance by any Loan Party of any of
its Obligations hereunder or under any other Loan Document, (b) prohibit any Loan Party from
granting to the Administrative Agent and the Lenders, a Lien on any of its assets (other than
distribution agreements or license agreements, provided that with respect to any such
distribution agreements or license agreement that prohibit any Loan Party from granting to the
Administrative Agent Liens on the right to receive payments and other proceeds from the sale of
products licensed or distributed under such agreements, the Loan Parties shall use their
commercially reasonable efforts (it being agreed that this shall not include the payment of any
monies) to obtain the consent of the counterparties thereto to permit the Liens of the
Administrative Agent under the Collateral Documents) or (c) create or permit to exist or become
effective any encumbrance or restriction on the ability of any Subsidiary to (i) pay dividends or
make other distributions to any Loan Party or any Subsidiary, or pay any Indebtedness owed to any
Loan Party or any Subsidiary, (ii) make loans or advances to any Loan Party or (iii) transfer any
of its assets or properties to any Loan Party, other than (A) in the case of clauses (b) and (c),
customary restrictions

 

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and conditions contained in agreements relating to the sale of all or a substantial part of the
assets of any Subsidiary pending such sale, provided that such restrictions and conditions
apply only to the Subsidiary to be sold and such sale is permitted hereunder, (B) in the case of
clauses (b) and (c)(iii), restrictions or conditions imposed by any agreement relating to purchase
money Indebtedness, Capital Leases and other secured Indebtedness permitted by this Agreement if
such restrictions or conditions apply only to the property or assets securing such Indebtedness,
(C) in the case of clauses (b) and (c), customary provisions in leases and other contracts
restricting the assignment or other transfer thereof, (D) in the case of clause (c), customary
provisions in Organization Documents of any Foreign Subsidiary that restrict the transfer of Equity
Interests of such Subsidiaries, or (E) in the case of clauses (b) and (c) any applicable Law
(including, without limitation, applicable currency control Laws and applicable state corporate
statutes restricting the payment of dividends in certain circumstances).

8.09 Business Activities.

Engage in any line of business other than the businesses of the Parent and its Subsidiaries
engaged in on the date hereof and businesses reasonably related, incidental or complementary
thereto.

8.10 Investments.

Make any Investment in any other Person, except the following:

(a) contributions by the Loan Parties to the capital of any other Loan Party; provided
that the aggregate amount of all contributions by the Parent and Loan Parties that are Wholly-Owned
Subsidiaries to Loan Parties that are not Wholly-Owned Subsidiaries shall not exceed $10,000,000 at
any time outstanding;

(b) loans and advances evidencing Indebtedness permitted by Section 8.01(c);

(c) Contingent Liabilities constituting Indebtedness permitted by Section 8.01 or
Liens permitted by Section 8.02;

(d) Cash Equivalents;

(e) bank deposits in the ordinary course of business, provided that the Loan Parties
shall at no time have deposits or investments of more than $2,000,000, in aggregate, on deposit in
accounts which are not subject to Account Control Agreements;

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

(g) loans or advances to employees, officers or directors incurred in the ordinary course of
business (including for travel, entertainment and relocation expenses), in an aggregate amount not
to exceed $200,000 at any one time outstanding;

(h) Permitted Acquisitions;

(i) Investments listed on Schedule 8.10 existing (or, as expressly noted therein,
contemplated) as of the Closing Date;

(j) Investments by any Subsidiary that is not a Loan Party in any other Subsidiary that is not
a Loan Party;

 

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(k) loans by the Loan Parties to Foreign Subsidiaries in an aggregate amount not to exceed
$7,500,000 at any time outstanding;

(l) subject to the limitations in Section 8.06, customary security deposits paid to
landlords of real property leased in the ordinary course of business and in accordance with the
applicable lease; and

(m) other Investments in an aggregate amount not to exceed $500,000 at any time;

provided that (x) any Investment which when made complies with the requirements of the
definition of the term “Cash Equivalents” may continue to be held for its term (without
giving effect to any renewals or extensions) notwithstanding that such Investment ceases to meet
such requirements and; (y) no Investment otherwise permitted by clause (b) or (c)
shall be permitted to be made if, immediately before or after giving effect thereto, any Default
exists or would result therefrom.

8.11 Restrictions of Amendments to Certain Documents.

Amend or otherwise modify, or waive any rights or obligations under the Acquisition Documents
and any other agreement, document or instrument evidencing any Subordinated Debt, except where such
amendment, modification or waiver would not be and could not reasonably be expected to be adverse
to the Administrative Agent or the Lenders in any material respect.

8.12 Accounting Changes; Fiscal Year.

Make any change in (a) accounting policies or reporting practices, except as required by GAAP,
or (b) its current fiscal year.

8.13 Financial Covenants.

(a) Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio as of the end
of each Fiscal Quarter set forth below to be greater than the ratio corresponding to such Fiscal
Quarter:

	 	 	 	 	 	 	 	 	 
	Calendar Year	 	March 31	 	June 30	 	September 30	 	December 31
	2011
	 	N/A	 	3.25:1.0	 	3.25:1.0	 	3.25:1.0
	2012
	 	3.25:1.0	 	3.25:1.0	 	3.25:1.0	 	3.25:1.0
	2013
	 	3.25:1.0	 	3.0:1.0	 	3.0:1.0	 	3.0:1.0
	thereafter
	 	3.0:1.0	 	3.0:1.0	 	3.0:1.0	 	3.0:1.0

; provided, however, in the event a Permitted Acquisition occurs prior to
August 8, 2013, the maximum permitted Consolidated Leverage Ratio shall be 3.25:1.0 until such
later date, if any, that is 18 calendar months after the date of such Permitted Acquisition.
Thereafter, the maximum permitted Consolidated Leverage Ratio shall be 3.0:1.0.

(b) Consolidated Fixed Charge Coverage Ratio. Permit the Consolidated Fixed Charge
Coverage Ratio as of the end of each Fiscal Quarter set forth below to be less than 1.50:1.0.

 

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8.14 Accrual or Payment of Duty Amounts.

At the time of any accrual in an incremental amount in excess of $1,000,000 for, or proposed
payment of, any Duty Amounts or amounts in respect of matters described on Schedule 6.12,
permit (as
demonstrated and calculated pursuant to a Compliance Certificate to be delivered to the
Administrative Agent pursuant to Section 7.02(a)):

(a) the Consolidated Fixed Charge Coverage Ratio, calculated on a Pro Forma Basis as of the
last day of the most recently ended Fiscal Quarter with respect to the four most recently ended
Fiscal Quarters ending on such date, as if such accrual or payment occurred during such Fiscal
Quarter, to be less than 1.50:1.0 or

(b) the Consolidated Leverage Ratio, calculated on a Pro Forma Basis as of the last day of the
most recently ended Fiscal Quarter with respect to the four most recently ended Fiscal Quarters
ending on such date, as if such accrual or payment occurred during such Fiscal Quarter, to be
greater than 3.25:1.0.

8.15 Cancellation of Indebtedness.

Cancel any claim or Indebtedness owing to it, other than (i) in connection with trade
discounts or allowances granted in the ordinary course of its business consistent with past
practices, and (ii) so long as no Default is then outstanding the cancellation of Indebtedness or
claims not to exceed $1,000,000 in any Fiscal Year, in the aggregate, in connection with the
resolution of good faith disputes relating thereto.

8.16 Activities of IP Sub.

Until such time as IP Sub becomes a Loan Party, permit IP Sub to (a) own any material
properties or assets other than the IP Sub IP and its rights under the License Agreement, (b) have
any Subsidiaries, Investments, Indebtedness or other material liabilities, (c) grant any Liens on
or dispose of its assets other than in accordance with the terms of IP Sub License Agreement or
Section 8.04(a) or (d) conduct any operations or business other than, activities related to
its corporate existence, activities relating to the maintenance and licensing of the IP Sub IP,
including the payment of registration fees for the IP Sub IP, maintenance and renewal of
registrations of the IP Sub IP, defending or initiating claims relating to the IP Sub IP, receiving
royalties under IP Sub License Agreement, conducting other activities permitted by the License
Agreement, defending, asserting or enforcing its rights under IP Sub License Agreement and making
settlements with respect thereto and any other activities relating to the foregoing in this clause
(d).

8.17 Inactive Subsidiaries.

Permit any Inactive Subsidiary to (a) own any material properties or assets, (b) have any
Subsidiaries, Investments, Indebtedness or other material liabilities, (c) grant any Liens on or
dispose of its assets other than as permitted by Section 8.04 or (d) conduct any operations
or business other than, activities related to its corporate existence and any other activities
relating to the foregoing in this clause (d).

8.18 Use of Proceeds.

Use the proceeds of any Credit Extension, whether directly or indirectly, and whether
immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of
Regulation U of the FRB) or to extend credit to others for the purpose of purchasing or carrying
margin stock or to refund indebtedness originally incurred for such purpose.

 

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ARTICLE IX

EVENTS OF DEFAULT AND REMEDIES

9.01 Events of Default.

Any of the following shall constitute an Event of Default:

(a) Non-Payment. Any Loan Party fails to pay (i) when and as required to be paid
herein, any amount of principal of any Loan or any L/C Obligation, or (ii) within five days after
the same becomes due, any interest on any Loan or on any L/C Obligation, or any fee due hereunder
or any other amount payable hereunder or under any other Loan Document; or

(b) Specific Covenants.

(i) Any Loan Party fails to perform or observe any term, covenant or agreement
contained in any of Section 7.03(a), 7.03(d), 7.07 or Article
VIII (for purposes of this Section 9.01(b)(i), the accrual or payment of any
Duty Amount shall not be deemed to be a breach of the covenants in Section 7.03); or

(ii) Any Loan Party fails to perform or observe any term, covenant or agreement
contained in any of Section 7.01 or 7.02 and such failure continues for five
Business Days (for purposes of this Section 9.01(b)(ii), the accrual or payment of
any Duty Amount shall not be deemed to be a breach of the covenants in Sections
7.01, 7.02(a) or 7.02(d)); or

(c) Other Defaults. Any Loan Party fails to perform or observe any other covenant or
agreement (not specified in subsection (a) or (b) above) contained in any Loan Document on its part
to be performed or observed and such failure continues for thirty days (for purposes of this
Section 9.01(c), the accrual or payment of any Duty Amount shall not be deemed to be a
breach of the covenants in Sections 7.04 or 7.06); or

(d) Representations and Warranties. Any representation or warranty made by any Loan
Party herein or any other Loan Document is breached or is false or misleading in any material
respect when made or deemed to have been made, or any schedule, certificate, financial statement,
report, notice or other writing furnished by any Loan Party to the Administrative Agent or any
Lender in connection herewith or in any other Loan Document is false or misleading in any material
respect on the date as of which the facts therein set forth are stated or certified (for purposes
of this Section 9.01(d), the accrual or payment of any Duty Amount shall not be deemed to
be a breach of the representations in Sections 6.04, 6.06 (solely to the extent
such representations relate to governmental investigations), 6.12, 6.17,
6.20 or 6.21); or

(e) Cross-Default. (i) Any Loan Party or any Subsidiary (A) fails to make any payment
when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise)
in respect of any Indebtedness or Contingent Liability (other than Indebtedness hereunder and
Indebtedness under Swap Contracts) having an aggregate principal amount (including undrawn
committed or available amounts and including amounts owing to all creditors under any combined or
syndicated credit arrangement) of more than $3,000,000, or (B) fails to observe or perform any
other agreement or condition relating to any such Indebtedness or Contingent Liability or contained
in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs,
the effect of which default or other event is to cause, or to permit the holder or holders of such
Indebtedness or the beneficiary or

 

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beneficiaries of such Contingent Liability (or a trustee or
agent on behalf of such holder or holders or
beneficiary or beneficiaries) to cause, with the giving of notice if required, such
Indebtedness to be demanded or to become due or to be repurchased, prepaid, defeased or redeemed
(automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such
Indebtedness to be made, prior to its stated maturity, or such Contingent Liability to become
payable or cash collateral in respect thereof to be demanded; or (ii) there occurs under any Swap
Contract an Early Termination Date (as defined in such Swap Contract) resulting from (A) any event
of default under such Swap Contract as to which any Loan Party or any Subsidiary is the Defaulting
Party (as defined in such Swap Contract) or (B) any Termination Event (as so defined) under such
Swap Contract as to which any Loan Party or any Subsidiary is an Affected Party (as so defined)
and, in either event, the Swap Termination Value owed by such Loan Party or such Subsidiary as a
result thereof is greater than $3,000,000; or

(f) Insolvency Proceedings, Etc. Any Loan Party or any Subsidiary (other than (i)
except as could reasonably be expected to have a Material Adverse Effect, a Foreign Subsidiary the
portion of Consolidated EBITDA attributable to which is negative for the most recently ended twelve
month period and (ii) an Immaterial Foreign Subsidiary) institutes or consents to the institution
of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors;
or applies for or consents to the appointment of any receiver, trustee, custodian, conservator,
liquidator, rehabilitator or similar officer for it or for all or any material part of its
property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar
officer is appointed without the application or consent of such Person and the appointment
continues undischarged or unstayed for sixty calendar days; or any proceeding under any Debtor
Relief Law relating to any such Person or to all or any material part of its property is instituted
without the consent of such Person and continues undismissed or unstayed for sixty calendar days,
or an order for relief is entered in any such proceeding; or

(g) Inability to Pay Debts; Attachment. (i) Any Loan Party or any Subsidiary (other
than an Immaterial Foreign Subsidiary) becomes unable or admits in writing its inability or fails
generally to pay its debts as they become due, or (ii) any writ or warrant of attachment or
execution or similar process is issued or levied against all or any material part of the property
of any such Person and is not released, vacated or fully bonded, stayed or discharged within sixty
days after its issue or levy; or

(h) Judgments. There is entered against any Loan Party or any Subsidiary (other than
(i) except as could reasonably be expected to have a Material Adverse Effect, a Foreign Subsidiary
the portion of Consolidated EBITDA attributable to which is negative for the most recently ended
twelve month period and (ii) an Immaterial Foreign Subsidiary) (i) one or more final judgments or
orders for the payment of money in an aggregate amount (as to all such judgments or orders)
exceeding $5,000,000 (to the extent not covered by independent third-party insurance as to which
the insurer has been notified of the claim and does not dispute coverage), or (ii) any one or more
non-monetary final judgments that have, or could reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect and, in either case, (A) enforcement proceedings are
commenced by any creditor upon such judgment or order or (B) any such judgments have not been
vacated, discharged, stayed or bonded pending appeal within thirty days from the entry thereof; or

(i) Pension Plans. (a) A Termination Event occurs which has or could reasonably be
expected to result in liability to any of the Loan Parties or any other member of the Controlled
Group in excess of $3,000,000 in the aggregate; (b) there arises or exists an Unfunded Liability
which would or could reasonably be expected to have a Material Adverse Effect or (c) there shall
occur any withdrawal or partial withdrawal from a Multiemployer Pension Plan which would or could
reasonably be expected to result in a liability to any Loan Party or other member of the Controlled
Group in excess of $3,000,000 in the aggregate; or

 

85

 

(j) Invalidity of Loan Documents. Any Loan Document shall cease to be in full force
and effect (other than in accordance with its terms) or any Loan Party (or any Person by, through
or on behalf of the Parent or any Loan Party) shall contest in any manner the validity, binding
nature or enforceability of any Loan Document or the Liens purported to be granted therein or any
court or any Governmental Authority shall issue a judgment, order, decree or ruling to the effect
that any of the obligations of any party to any Loan Document are illegal, invalid or
unenforceable;

(k) Change of Control. There occurs any Change of Control;

(l) Invalidity of Subordination Provisions. Any subordination provision in any
document or instrument governing any Subordinated Debt, or any subordination provision in any
guaranty by any Loan Party of any Subordinated Debt shall, in any such case, cease to be in full
force and effect; or any Loan Party or Subsidiary, any subordinating party or any Governmental
Authority having jurisdiction over any of them or over the Administrative Agent and/or the Lenders
shall contest in any judicial or administrative proceeding the validity, binding nature or
enforceability of any such provision or agreement; or

(m) Earnout Default. (i) The Loan Parties fail to deliver to the Administrative Agent
the certifications and information required pursuant to the Earnout Consideration Conditions
Precedent within three (3) Business Days prior (but no earlier than ten (10) Business Days prior)
to the date that any Earnout Consideration is to be paid, including pursuant to any guaranty
thereof (the “Earnout Payment Date”), (ii) the Administrative Agent reasonably determines
after consultation with the Parent that, any of the Earnout Consideration Conditions Precedent will
not be satisfied as of the Earnout Payment Date, (iii) any of the material information set forth in
the certificates and information described in clause (i) above shall be incorrect in any material
respect when made (and such inaccuracies are not remedied prior to the payment of any Earnout
Consideration which is the basis of such certificate) or (iv) any Earnout Consideration is paid at
any time that the Earnout Consideration Conditions Precedent are not satisfied (any of the
foregoing being an “Earnout Default”).

9.02 Remedies Upon Event of Default.

If any Event of Default occurs and is continuing, the Administrative Agent shall, at the
request of, or may, with the consent of, the Required Lenders, take any or all of the following
actions:

(a) declare the commitment of each Lender to make Loans and any obligation of the L/C Issuer
to make L/C Credit Extensions to be terminated, whereupon such commitments and obligation shall be
terminated;

(b) declare the unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document
to be immediately due and payable, without presentment, demand, protest or other notice of any
kind, all of which are hereby expressly waived by the Borrowers;

(c) require that the Borrowers Cash Collateralize the L/C Obligations (in an amount equal to
the then Outstanding Amount thereof); and

(d) exercise on behalf of itself, the Lenders and the L/C Issuer all rights and remedies
available to it, the Lenders and the L/C Issuer under the Loan Documents or applicable Law or
equity;

provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to a Borrower under the Bankruptcy Code of the United States, the
obligation of each Lender to
make Loans and any obligation of the L/C Issuer to make L/C Credit Extensions shall automatically
terminate, the unpaid principal amount of all outstanding Loans and all interest and other amounts
as aforesaid shall automatically become due and payable, and the obligation of the Borrowers to
Cash Collateralize the L/C Obligations as aforesaid shall automatically become effective, in each
case without further act of the Administrative Agent or any Lender.

 

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9.03 Application of Funds.

After the exercise of remedies provided for in Section 9.02 (or after the Loans have
automatically become immediately due and payable and the L/C Obligations have automatically been
required to be Cash Collateralized as set forth in the proviso to Section 9.02), any
amounts received on account of the Obligations shall be applied by the Administrative Agent in the
following order:

First, to payment of that portion of the Obligations constituting fees,
indemnities, expenses and other amounts (including fees, charges and disbursements of
counsel to the Administrative Agent and amounts payable under Article III) payable
to the Administrative Agent in its capacity as such;

Second, to payment of that portion of the Obligations constituting fees,
indemnities and other amounts (other than principal, interest and Letter of Credit Fees)
payable to the Lenders and the L/C Issuer (including fees, charges and disbursements of
counsel to the respective Lenders and the L/C Issuer subject to Section 11.04 and
amounts payable under Article III), ratably among them in proportion to the
respective amounts described in this clause Second payable to them;

Third, to payment of that portion of the Obligations constituting accrued and
unpaid Letter of Credit Fees and interest on the Loans and L/C Borrowings and fees, premiums
and scheduled periodic payments, and any interest accrued thereon, due under any Swap
Contract between any Loan Party or any Subsidiary and any Lender, or any Affiliate of a
Lender, to the extent such Swap Contract is permitted by Section 8.01(e), ratably
among the Lenders (and, in the case of such Swap Contracts, Affiliates of Lenders) and the
L/C Issuer in proportion to the respective amounts described in this clause Third
held by them;

Fourth, to (a) payment of that portion of the Obligations constituting unpaid
principal of the Loans and L/C Borrowings, (b) payment of breakage, termination or other
payments, and any interest accrued thereon, due under any Swap Contract between any Loan
Party or any Subsidiary and any Lender, or any Affiliate of a Lender, to the extent such
Swap Contract is permitted by Section 8.01(e), (c) payments of amounts due under any
Treasury Management Agreement between any Loan Party or any Subsidiary and any Lender, or
any Affiliate of a Lender and (d) Cash Collateralize that portion of L/C Obligations
comprised of the aggregate undrawn amount of Letters of Credit, ratably among the Lenders
(and, in the case of such Swap Contracts and Treasury Management Agreements, Affiliates of
Lenders) and the L/C Issuer in proportion to the respective amounts described in this clause
Fourth held by them; and

Last, the balance, if any, after all of the Obligations have been Fully
Satisfied, to the Parent or as otherwise required by Law.

Subject to Section 2.03(c), amounts used to Cash Collateralize the aggregate undrawn
amount of Letters of Credit pursuant to clause Fourth above shall be applied to satisfy
drawings under such Letters of Credit as they occur. If any amount remains on deposit as Cash
Collateral after all Letters of Credit
have either been fully drawn or expired, such remaining amount shall be applied to the other
Obligations, if any, in the order set forth above.

 

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Notwithstanding the foregoing, Obligations arising under Treasury Management Agreements and
Swap Contracts shall be excluded from the application described above if the Administrative Agent
has not received written notice thereof, together with such supporting documentation as the
Administrative Agent may request, from the Lender or Affiliate of a Lender party to such Treasury
Management Agreement or such Swap Contract, as the case may be. Each holder of any such
Obligations arising under Swap Contracts or Treasury Management Agreements that is not a party to
the Credit Agreement that has given the notice contemplated by the preceding sentence shall, by
such notice, be deemed to have acknowledged and accepted the appointment of the Administrative
Agent pursuant to the terms of Article X hereof for itself and its Affiliates as if a
“Lender” party hereto.

ARTICLE X

ADMINISTRATIVE AGENT

10.01 Appointment and Authority.

Each of the Lenders and the L/C Issuer hereby irrevocably appoints Bank of America to act on
its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes
the Administrative Agent to take such actions on its behalf and to exercise such powers as are
delegated to the Administrative Agent by the terms hereof or thereof, together with such actions
and powers as are reasonably incidental thereto. The provisions of this Article are solely for the
benefit of the Administrative Agent, the Lenders and the L/C Issuer, and no Loan Party shall have
rights as a third party beneficiary of any of such provisions.

The Administrative Agent shall also act as the “collateral agent” under the Loan
Documents, and each of the Lenders (in its capacities as a Lender, Swing Line Lender (if
applicable), potential Swap Contract providers and potential Treasury Management Agreement
providers) and the L/C Issuer hereby irrevocably appoints and authorizes the Administrative Agent
to act as the agent of such Lender and the L/C Issuer for purposes of acquiring, holding and
enforcing any and all Liens on Collateral granted by any of the Loan Parties to secure any of the
Obligations, together with such powers and discretion as are reasonably incidental thereto. In
this connection, the Administrative Agent, as “collateral agent” and any co-agents, sub-agents and
attorneys-in-fact appointed by the Administrative Agent pursuant to Section 10.05 for
purposes of holding or enforcing any Lien on the Collateral (or any portion thereof) granted under
the Collateral Documents, or for exercising any rights and remedies thereunder at the direction of
the Administrative Agent), shall be entitled to the benefits of all provisions of this Article
X and Article XI (including Section 11.04(c), as though such co-agents,
sub-agents and attorneys-in-fact were the “collateral agent” under the Loan Documents) as if set
forth in full herein with respect thereto.

10.02 Rights as a Lender.

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

 

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10.03 Exculpatory Provisions.

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

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

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

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

The Administrative Agent shall not be liable to any Lender for any action taken or not taken
by it (i) with the consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in
good faith shall be necessary, under the circumstances as provided in Sections 11.01 and
9.02) or (ii) in the absence of its own gross negligence or willful misconduct. The
Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice
describing such Default is given to the Administrative Agent by the Parent, a Lender or the L/C
Issuer.

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

 

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10.04 Reliance by Administrative Agent.

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

10.05 Delegation of Duties.

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

10.06 Resignation of Administrative Agent.

The Administrative Agent may at any time give notice of its resignation to the Lenders, the
L/C Issuer and the Borrower. Upon receipt of any such notice of resignation, the Required Lenders
shall have the right (subject to the consent of the Parent (such consent not to be unreasonably
withheld or delayed) provided that no Event of Default has occurred and is continuing), to appoint
a successor, which shall be a bank with an office in the United States, or an Affiliate of any such
bank with an office in the United States. If no such successor shall have been so appointed by the
Required Lenders and shall have accepted such appointment within 30 days after the retiring
Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may on
behalf of the Lenders and the L/C Issuer, appoint a successor Administrative Agent meeting the
qualifications set forth above; provided that if the Administrative Agent shall notify the
Parent and the Lenders that no qualifying Person has accepted such appointment, then such
resignation shall nonetheless become effective in accordance with such notice and (a) the retiring
Administrative Agent shall be discharged from its duties and obligations hereunder and under the
other Loan Documents (except that in the case of any collateral security held by the Administrative
Agent on behalf of the Lenders or the L/C Issuer under any of the Loan Documents, the retiring
Administrative Agent shall continue to hold such collateral security until such time as a successor
Administrative Agent is appointed) and (b) all payments, communications and determinations provided
to be made by, to or through the Administrative Agent shall instead be made by or to each Lender
and the L/C Issuer directly, until such time as the Required Lenders appoint a successor
Administrative Agent as provided for above in this Section. Upon the acceptance of a successor’s
appointment as Administrative Agent hereunder, such successor shall succeed to and become vested
with all of the rights, powers, privileges and duties of the retiring (or retired) Administrative
Agent, and the retiring Administrative Agent shall be discharged from all of its duties and
obligations hereunder or under the other Loan Documents (if not already discharged therefrom as
provided above in this Section). The fees payable by the Borrowers to a successor Administrative
Agent shall be the same as those payable to its predecessor unless otherwise agreed between the
Parent and such successor. After the retiring Administrative Agent’s resignation hereunder and
under the other Loan Documents, the provisions of this Article and Section 11.04 shall
continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and
their respective Related Parties in respect of any actions taken or omitted to be taken by any
of them while the retiring Administrative Agent was acting as Administrative Agent.

 

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Any resignation by Bank of America as Administrative Agent pursuant to this Section shall also
constitute its resignation as L/C Issuer and Swing Line Lender. Upon the acceptance of a
successor’s appointment as Administrative Agent hereunder, (i) such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer and
Swing Line Lender, (ii) the retiring L/C Issuer and Swing Line Lender shall be discharged from all
of their respective duties and obligations hereunder or under the other Loan Documents, and (iii)
the successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit,
if any, outstanding at the time of such succession or make other arrangements satisfactory to the
retiring L/C Issuer to effectively assume the obligations of the retiring L/C Issuer with respect
to such Letters of Credit.

10.07 Non-Reliance on Administrative Agent and Other Lenders.

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

10.08 No Other Duties; Etc.

Anything herein to the contrary notwithstanding, none of the bookrunners, arrangers,
syndication agents, documentation agents or co-agents shall have any powers, duties or
responsibilities under this Agreement or any of the other Loan Documents, except in its capacity,
as applicable, as the Administrative Agent, a Lender or the L/C Issuer hereunder.

10.09 Administrative Agent May File Proofs of Claim.

In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial
proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether the
principal of any Loan or L/C Obligation shall then be due and payable as herein expressed or by
declaration or otherwise and irrespective of whether the Administrative Agent shall have made any
demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or
otherwise:

(a) to file and prove a claim for the whole amount of the principal and interest owing
and unpaid in respect of the Loans, L/C Obligations and all other Obligations arising under
the Loan Documents that are owing and unpaid and to file such other documents as may be
necessary or advisable in order to have the claims of the Lenders, the L/C Issuer and the
Administrative Agent (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Lenders, the L/C Issuer and the Administrative Agent and
their respective agents and counsel and all other amounts due the Lenders, the L/C Issuer
and the Administrative Agent under Sections 2.03(h) and (i), 2.09
and 11.04) allowed in such judicial proceeding; and

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

 

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and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender and the L/C Issuer to make such
payments to the Administrative Agent and, if the Administrative Agent shall consent to the making
of such payments directly to the Lenders and the L/C Issuer, to pay to the Administrative Agent any
amount due for the reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent
under Sections 2.09 and 11.04.

Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender or the L/C Issuer any plan of reorganization,
arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or the
L/C Issuer to authorize the Administrative Agent to vote in respect of the claim of any Lender or
the L/C Issuer in any such proceeding.

10.10 Collateral and Guaranty Matters.

The Lenders and the L/C Issuer irrevocably authorize the Administrative Agent, at its option
and in its discretion,

(a) to release any Lien on any property granted to or held by the Administrative Agent
under any Loan Document (i) at such time as the Obligations have been Fully Satisfied, (ii)
that is transferred or to be transferred as part of or in connection with any Disposition
permitted hereunder or under any other Loan Document or any Involuntary Disposition, or
(iii) as approved in accordance with Section 11.01;

(b) to subordinate any Lien on any property granted to or held by the Administrative
Agent under any Loan Document to the holder of any Lien on such property that is permitted
by Section 8.01(i) or any other Permitted Lien of a similar nature; and

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

Upon request by the Administrative Agent at any time, the Required Lenders will confirm in
writing the Administrative Agent’s authority to release or subordinate its interest in
particular types or items of property, or to release any Guarantor from its obligations
under the Guaranty, pursuant to this Section 10.10.

10.11 Swap Contracts and Treasury Management Agreements.

No Lender or any Affiliate of a Lender that is party to any Swap Contract or any Treasury
Management Agreement permitted hereunder that obtains the benefits of Section 9.03 or any
Collateral by virtue of the provisions hereof or of any Collateral Document shall have any right to
notice of any action or to consent to, direct or object to any action hereunder or under any other
Loan Document or otherwise in respect of the Collateral (including the release or impairment of any
Collateral) other than in its capacity as a Lender and, in such case, only to the extent expressly
provided in the Loan Documents. Notwithstanding any other provision of this Article X to
the contrary, the Administrative Agent shall not be required to verify the payment of, or that
other satisfactory arrangements have been made with respect to, Obligations arising under Swap
Contracts and Treasury Management Agreements unless the Administrative Agent has received written
notice of such Obligations, together with such supporting documentation as the Administrative Agent
may request, from the applicable Lender or Affiliate of a Lender that is party to such Swap
Contract or such Treasury Management Agreement, as the case may be.

 

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ARTICLE XI

MISCELLANEOUS

11.01 Amendments, Etc.

No amendment or waiver of any provision of this Agreement or any other Loan Document, and no
consent to any departure by any Loan Party therefrom, shall be effective unless in writing signed
by the Required Lenders and the Parent or the applicable Loan Party, as the case may be, and
acknowledged by the Administrative Agent, and each such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given; provided,
further, that

(a) no such amendment, waiver or consent shall:

(i) extend or increase the Commitment of a Lender (or reinstate any Commitment
terminated pursuant to Section 9.02) without the written consent of such Lender
whose Commitment is being extended or increased (it being understood and agreed that a
waiver of any condition precedent set forth in Section 5.02 or of any Default or a
mandatory reduction in Commitments is not considered an extension or increase in Commitments
of any Lender);

(ii) postpone any date fixed by this Agreement or any other Loan Document for any
payment (excluding mandatory prepayments) of principal, interest, fees or other amounts due
to the Lenders (or any of them) or any scheduled reduction of the Commitments hereunder or
under any other Loan Document without the written consent of each Lender entitled to receive
such payment or whose Commitments are to be reduced;

(iii) reduce the principal of, or the rate of interest specified herein on, any Loan or
L/C Borrowing, or (subject to clause (i) of the final proviso to this Section 11.01)
any fees or other amounts payable hereunder or under any other Loan Document without the
written consent of each Lender entitled to receive such amount; provided,
however, that only the consent of the Required Lenders shall be necessary to (A)
amend the definition of “Default Rate” or waive any obligation of the Borrowers to pay
interest or Letter of Credit Fees at the Default Rate or (B) to amend any financial covenant
hereunder (or any defined term used therein) even if the effect of such amendment would be
to reduce the rate of interest on any Loan or L/C Borrowing or to reduce any fee payable
hereunder;

(iv) change Section 9.03 in a manner that would alter the pro rata sharing of
payments required thereby without the written consent of each Lender directly affected
thereby;

(v) change any provision of this Section 11.01(a) or the definition of
“Required Lenders” without the written consent of each Lender directly affected thereby;

(vi) release all or substantially all of the Collateral without the written consent of
each Lender whose Obligations are secured by such Collateral;

(vii) release any Borrower without the consent of each Lender, or, except in connection
with a transaction permitted under Section 8.04 or Section 8.05, all or
substantially all of the value of the Guaranty without the written consent of each Lender
whose Obligations are guaranteed thereby, except to the extent such release is permitted
pursuant to Section 10.10 (in which case such release may be made by the
Administrative Agent acting alone); or

 

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(b) unless also signed by the L/C Issuer, no amendment, waiver or consent shall affect the
rights or duties of the L/C Issuer under this Agreement or any Issuer Document relating to any
Letter of Credit issued or to be issued by it;

(c) unless also signed by the Swing Line Lender, no amendment, waiver or consent shall affect
the rights or duties of the Swing Line Lender under this Agreement; and

(d) unless also signed by the Administrative Agent, no amendment, waiver or consent shall
affect the rights or duties of the Administrative Agent under this Agreement or any other Loan
Document;

provided, however, that notwithstanding anything to the contrary herein, (i) the
Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by
the parties thereto, (ii) each Lender is entitled to vote as such Lender sees fit on any bankruptcy
reorganization plan that affects the Loans, and each Lender acknowledges that the provisions of
Section 1126(c) of the Bankruptcy Code of the United States supersedes the unanimous consent
provisions set forth herein and (iii) the Required Lenders shall determine whether or not to allow
a Loan Party to use cash collateral in the context of a bankruptcy or insolvency proceeding and
such determination shall be binding on all of the Lenders.

Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to
approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or
consent which by its terms requires the consent of all Lenders or each affected Lender may be
effected with the consent of the applicable Lenders other than Defaulting Lenders), except that (x)
the Commitment of any Defaulting Lender may not be increased or extended without the consent of
such Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or
each affected Lender that by its terms affects any Defaulting Lender more adversely than other
affected Lenders shall require the consent of such Defaulting Lender.

11.02 Notices; Effectiveness; Electronic Communications.

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

(i) if to any Loan Party, the Administrative Agent, the L/C Issuer or the Swing Line
Lender, to the address, telecopier number, electronic mail address or telephone number
specified for such Person on Schedule 11.02; and

(ii) if to any other Lender, to the address, telecopier number, electronic mail address
or telephone number specified in its Administrative Questionnaire (including, as
appropriate, notices delivered solely to the Person designated by a Lender on its
Administrative Questionnaire then in effect for the delivery of notices that may contain
material non-public information relating to the Parent).

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

 

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

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

(c) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR
THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE
BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE
BORROWER MATERIALS OR THE PLATFORM. In no event shall the Administrative Agent or any of its
Related Parties (collectively, the “Agent Parties”) have any liability to any Borrower, any
Lender, the L/C Issuer or any other Person for losses, claims, damages, liabilities or expenses of
any kind (whether in tort, contract or otherwise) arising out of any Borrower’s or the
Administrative Agent’s transmission of Borrower Materials through the Internet, except to the
extent that such losses, claims, damages, liabilities or expenses are determined by a court of
competent jurisdiction by a final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Agent Party; provided, however, that in no
event shall any Agent Party have any liability to any Borrower, any Lender, the L/C Issuer or any
other Person for indirect, special, incidental, consequential or punitive damages (as opposed to
direct or actual damages).

(d) Change of Address, Etc. Each of the Loan Parties, the Administrative Agent, the
L/C Issuer and the Swing Line Lender may change its address, telecopier or telephone number for
notices and other communications hereunder by notice to the other parties hereto. Each other
Lender may change its address, telecopier or telephone number for notices and other communications
hereunder by notice to the Parent, the Administrative Agent, the L/C Issuer and the Swing Line
Lender. In addition, each Lender agrees to notify the Administrative Agent from time to time to
ensure that the Administrative Agent has on record (i) an effective address, contact name,
telephone number, telecopier number and electronic mail address to which notices and other
communications may be sent and (ii) accurate wire instructions for such Lender. Furthermore, each
Public Lender agrees to cause at least one individual at or on behalf of
such Public Lender to at all times have selected the “Private Side Information” or similar
designation on the content declaration screen of the Platform in order to enable such Public Lender
or its delegate, in accordance with such Public Lender’s compliance procedures and applicable Law,
including United States Federal and state securities Laws, to make reference to Borrower Materials
that are not made available through the “Public Side Information” portion of the Platform and that
may contain material non-public information with respect to any Borrower or its securities for
purposes of United States Federal or state securities laws.

 

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(e) Reliance by Administrative Agent, L/C Issuer and Lenders. The Administrative
Agent, the L/C Issuer and the Lenders shall be entitled to rely and act upon any notices (including
telephonic Loan Notices and Swing Line Loan Notices) purportedly given by or on behalf of any Loan
Party even if (i) such notices were not made in a manner specified herein, were incomplete or were
not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof,
as understood by the recipient, varied from any confirmation thereof. The Loan Parties shall
indemnify the Administrative Agent, the L/C Issuer, each Lender and the Related Parties of each of
them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on
each notice purportedly given by or on behalf of a Loan Party; provided that such indemnification
shall not be available to the extent such losses, costs, expenses and liabilities are determined by
a court of competent jurisdiction by final and nonappealable judgment to have resulted from such
Person’s gross negligence or willful misconduct. All telephonic notices to and other telephonic
communications with the Administrative Agent may be recorded by the Administrative Agent, and each
of the parties hereto hereby consents to such recording.

11.03 No Waiver; Cumulative Remedies; Enforcement.

No failure by any Lender, the L/C Issuer or the Administrative Agent to exercise, and no delay
by any such Person in exercising, any right, remedy, power or privilege hereunder shall operate as
a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege
hereunder or under any other Loan Document (including the imposition of the Default Rate) preclude
any other or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges herein provided, and provided under each
other Loan Document are cumulative and not exclusive of any rights, remedies, powers and privileges
provided by law.

Notwithstanding anything to the contrary contained herein or in any other Loan Document, the
authority to enforce rights and remedies hereunder and under the other Loan Documents against the
Loan Parties or any of them shall be vested exclusively in, and all actions and proceedings at law
in connection with such enforcement shall be instituted and maintained exclusively by, the
Administrative Agent in accordance with Section 9.02 for the benefit of all the Lenders and
the L/C Issuer; provided, however, that the foregoing shall not prohibit (a) the
Administrative Agent from exercising on its own behalf the rights and remedies that inure to its
benefit (solely in its capacity as Administrative Agent) hereunder and under the other Loan
Documents, (b) the L/C Issuer or the Swing Line Lender from exercising the rights and remedies that
inure to its benefit (solely in its capacity as L/C Issuer or Swing Line Lender, as the case may
be) hereunder and under the other Loan Documents, (c) any Lender from exercising setoff rights in
accordance with Section 11.08 (subject to the terms of Section 2.13), or (d) any
Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the
pendency of a proceeding relative to any Loan Party under any Debtor Relief Law; and
provided, further, that if at any time there is no Person acting as Administrative
Agent hereunder and under the other Loan Documents, then (i) the Required Lenders shall have the
rights otherwise ascribed to the Administrative Agent pursuant to Section 9.02 and (ii) in
addition to the matters set forth in clauses (b), (c) and (d) of the preceding proviso and subject
to Section 2.13, any Lender may, with the consent of the Required Lenders, enforce any
rights and remedies available to it and as authorized by the Required Lenders.

 

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11.04 Expenses; Indemnity; and Damage Waiver.

(a) Costs and Expenses. The Loan Parties shall pay (i) all reasonable and documented
out-of-pocket expenses incurred by the Administrative Agent and its Affiliates (including the
reasonable fees, charges and disbursements of one counsel for the Administrative Agent and Lenders,
taken as a whole, and, if necessary, of special counsel and local counsel for the Administrative
Agent and the Lenders, taken as a whole, in each case, in any relevant jurisdiction and solely in
the case of a conflict of interest, one additional counsel in each relevant jurisdiction to the
affected Lenders, taken as a whole), in connection with the syndication of the credit facilities
provided for herein, the preparation, negotiation, execution, delivery and administration of this
Agreement and the other Loan Documents or any amendments, modifications or waivers of the
provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall
be consummated), (ii) all reasonable and documented out-of-pocket expenses incurred by the L/C
Issuer in connection with the issuance, amendment, renewal or extension of any Letter of Credit or
any demand for payment thereunder and (iii) all reasonable and documented out-of-pocket expenses
incurred by the Administrative Agent, any Lender or the L/C Issuer (including the fees, charges and
disbursements of any counsel for the Administrative Agent, any Lender or the L/C Issuer), and shall
pay all reasonable and documented fees and time charges for attorneys who may be employees of the
Administrative Agent, any Lender or the L/C Issuer, in connection with the enforcement or
protection of its rights (A) in connection with this Agreement and the other Loan Documents,
including its rights under this Section, or (B) in connection with the Loans made or Letters of
Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout,
restructuring or negotiations in respect of such Loans or Letters of Credit.

(b) Indemnification by the Loan Parties. The Loan Parties shall indemnify the
Administrative Agent (and any sub-agent thereof), each Lender and the L/C Issuer, and each Related
Party of any of the foregoing Persons (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all actual losses, claims, damages,
liabilities and reasonable and documented out-of-pocket related expenses (including the reasonable
and documented fees, charges and disbursements of any counsel for any Indemnitee), and shall
indemnify and hold harmless each Indemnitee from all reasonable and documented fees and time
charges and disbursements for attorneys who may be employees of any Indemnitee, incurred by any
Indemnitee or asserted against any Indemnitee by any third party or by any Loan Party arising out
of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any
other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance
by the parties hereto of their respective obligations hereunder or thereunder or the consummation
of the transactions contemplated hereby or thereby, or, in the case of the Administrative Agent
(and any sub-agent thereof) and its Related Parties only, the administration of this Agreement and
the other Loan Documents (including in respect of any matters addressed in Section 3.01),
(ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including
any refusal by the L/C Issuer to honor a demand for payment under a Letter of Credit if the
documents presented in connection with such demand do not strictly comply with the terms of such
Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or
from any property owned or operated by a Loan Party or any of its Subsidiaries, or any
Environmental Liability related in any way to a Loan Party or any of its Subsidiaries, or (iv) any
actual or prospective claim, litigation, investigation or proceeding relating to any of the
foregoing, whether based on contract, tort or any other theory, whether brought by a third party or
by any Loan Party, and regardless of whether any Indemnitee is a party thereto; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses,
claims, damages, liabilities or related expenses (x) are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or
willful misconduct of such Indemnitee or (y) result from a claim brought by any Loan Party against
an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other
Loan
Document, if such Loan Party has obtained a final and nonappealable judgment in its favor on
such claim as determined by a court of competent jurisdiction.

 

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(c) Reimbursement by Lenders. To the extent that the Loan Parties for any reason fail
to indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by
them to the Administrative Agent (or any sub-agent thereof), the L/C Issuer or any Related Party of
any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such
sub-agent), the L/C Issuer or such Related Party, as the case may be, such Lender’s Applicable
Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment
is sought) of such unpaid amount, provided that the unreimbursed expense or indemnified
loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted
against the Administrative Agent (or any such sub-agent) or the L/C Issuer in its capacity as such,
or against any Related Party of any of the foregoing acting for the Administrative Agent (or any
such sub-agent) or L/C Issuer in connection with such capacity. The obligations of the Lenders
under this subsection (c) are subject to the provisions of Section 2.12(d).

(d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable law, no Loan Party shall assert, and each Loan Party hereby waives, any claim against
any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive
damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result
of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the
proceeds thereof. No Indemnitee referred to in subsection (b) above shall be liable for any
damages arising from the use by unintended recipients of any information or other materials
distributed to such unintended recipients by such Indemnitee through telecommunications, electronic
or other information transmission systems in connection with this Agreement or the other Loan
Documents or the transactions contemplated hereby or thereby other than for direct or actual
damages resulting from the gross negligence or willful misconduct of such Indemnitee as determined
by a final and nonappealable judgment of a court of competent jurisdiction.

(e) Payments. All amounts due under this Section shall be payable not later than ten
Business Days after demand therefor.

(f) Survival. The agreements in this Section shall survive the resignation of the
Administrative Agent, the L/C Issuer and the Swing Line Lender, the replacement of any Lender, the
termination of the Commitments and the repayment, satisfaction or discharge of all the other
Obligations.

11.05 Payments Set Aside.

To the extent that any payment by or on behalf of any Loan Party is made to the Administrative
Agent, the L/C Issuer or any Lender, or the Administrative Agent, the L/C Issuer or any Lender
exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof
is subsequently invalidated, declared to be fraudulent or preferential, set aside or required
(including pursuant to any settlement entered into by the Administrative Agent, the L/C Issuer or
such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in
connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of
such recovery, the obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or such setoff had not
occurred, and (b) each Lender and the L/C Issuer severally agrees to pay to the Administrative
Agent upon demand its applicable share (without duplication) of any amount so recovered from or
repaid by the Administrative Agent, plus interest thereon from the date of such demand to the date
such payment is made at a rate per annum equal to the Federal Funds Rate from time to time in
effect. The obligations of the Lenders and the L/C Issuer under clause (b) of the preceding
sentence shall survive the payment in full of the Obligations and the termination of this
Agreement.

 

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11.06 Successors and Assigns.

(a) Successors and Assigns Generally. The provisions of this Agreement and the other
Loan Documents shall be binding upon and inure to the benefit of the parties hereto and thereto and
their respective successors and assigns permitted hereby, except that a Borrower may not assign or
otherwise transfer any of its rights or obligations hereunder or thereunder without the prior
written consent of the Administrative Agent and each Lender and no Lender may assign or otherwise
transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with
the provisions of subsection (b) of this Section, (ii) by way of participation in accordance with
the provisions of subsection (d) of this Section or (iii) by way of pledge or assignment of a
security interest subject to the restrictions of subsection (f) of this Section (and any other
attempted assignment or transfer by any party hereto shall be null and void). Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person (other than the
parties hereto, their respective successors and assigns permitted hereby, Participants to the
extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby,
the Related Parties of each of the Administrative Agent, the L/C Issuer and the Lenders) any legal
or equitable right, remedy or claim under or by reason of this Agreement.

(b) Assignments by Lenders. Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Agreement and the other Loan
Documents (including all or a portion of its Commitment and the Loans (including for purposes of
this subsection (b), participations in L/C Obligations and in Swing Line Loans) at the time owing
to it); provided that any such assignment shall be subject to the following conditions:

(i) Minimum Amounts.

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

(B) in any case not described in subsection (b)(i)(A) of this Section, the
aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) or, if the Commitment is not then in effect, the principal
outstanding balance of the Loans of the assigning Lender subject to each such
assignment, determined as of the date the Assignment and Assumption with respect to
such assignment is delivered to the Administrative Agent or, if “Trade Date” is
specified in the Assignment and Assumption, as of the Trade Date, shall not be less
than $5,000,000 unless each of the Administrative Agent and, so long as no Event of
Default has occurred and is continuing, the Parent otherwise consents (each such
consent not to be unreasonably withheld or delayed); provided,
however, that concurrent assignments to members of an Assignee Group and
concurrent assignments from members of an Assignee Group to a single assignee (or to
an assignee and members of its Assignee Group) will be treated as a single
assignment for purposes of determining whether such minimum amount has been met.

(ii) Proportionate Amounts. Each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s Loans and Commitments, and
rights and obligations with respect thereto, assigned, except that this clause (ii) shall
not apply to the Swing Line Lender’s rights and obligations in respect of Swing Line Loans;

 

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

(A) the consent of the Parent (such consent not to be unreasonably withheld)
shall be required unless (1) an Event of Default has occurred and is continuing at
the time of such assignment or (2) such assignment is to a Lender, an Affiliate of a
Lender or an Approved Fund;

(B) the consent of the Administrative Agent (such consent not to be
unreasonably withheld or delayed) shall be required for assignments if such
assignment is to a Person that is not a Lender, an Affiliate of such Lender or an
Approved Fund with respect to such Lender; and

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

(D) the consent of the Swing Line Lender (such consent not to be unreasonably
withheld or delayed) shall be required for any assignment.

(iv) Assignment and Assumption. The parties to each assignment shall execute
and deliver to the Administrative Agent an Assignment and Assumption, together with a
processing and recordation fee payable by the assignor or assignee in the amount of $3,500;
provided, however, that the Administrative Agent may, in its sole
discretion, elect to waive such processing and recordation fee in the case of any
assignment. The assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire.

(v) No Assignment to Certain Persons. No such assignment shall be made to (A)
the Parent or any of the Parent’s Affiliates or Subsidiaries, (B) any Defaulting Lender or
any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would
constitute any of the foregoing Persons described in this clause (B), or (C) a natural
person.

(vi) Certain Additional Payments. In connection with any assignment of rights
and obligations of any Defaulting Lender hereunder, no such assignment shall be effective
unless and until, in addition to the other conditions thereto set forth herein, the parties
to the assignment shall make such additional payments to the Administrative Agent in an
aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright
payment, purchases by the assignee of participations or subparticipations, or other
compensating actions, including funding, with the consent of the Parent and the
Administrative Agent, the applicable pro rata share of Loans previously requested but not
funded by the Defaulting Lender, to each of which the applicable assignee and assignor
hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then
owed by such Defaulting Lender to the Administrative Agent or any Lender hereunder (and
interest accrued thereon) and (y) acquire (and fund as appropriate) its full pro rata share
of all Loans and participations in Letters of Credit and Swing Line Loans in accordance with
its Applicable Percentage. Notwithstanding the foregoing, in the event that any assignment
of rights and obligations of any Defaulting Lender hereunder shall become effective under
applicable Law without compliance with the provisions of this paragraph, then the assignee
of such interest shall be deemed to be a Defaulting Lender for all purposes of this
Agreement until such compliance occurs.

 

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Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c)
of this Section, from and after the effective date specified in each Assignment and Assumption, the
assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto but shall continue to be
entitled to the benefits of Sections 3.01, 3.04, 3.05 and 11.04
with respect to facts and circumstances occurring prior to the effective date of such assignment).
Upon request, the Borrowers (at their expense) shall execute and deliver a Note to the assignee
Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that
does not comply with this subsection shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance with subsection (d) of
this Section.

(c) Register. The Administrative Agent, acting solely for this purpose as an agent of
the Borrowers (and such agency being solely for tax purposes), shall maintain at the Administrative
Agent’s Office a copy of each Assignment and Assumption delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitments of, and principal
amounts of the Loans and L/C Obligations owing to, each Lender pursuant to the terms hereof from
time to time (the “Register”). The entries in the Register shall be conclusive, and the
Borrowers, the Administrative Agent and the Lenders may treat each Person whose name is recorded in
the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. In addition, the Administrative Agent shall maintain on
the Register information regarding the designation, and revocation of designation, of any Lender as
a Defaulting Lender. The Register shall be available for inspection by the Borrowers and any
Lender at any reasonable time and from time to time upon reasonable prior notice.

(d) Participations. Any Lender may at any time, without the consent of, or notice to,
the Borrowers or the Administrative Agent, sell participations to any Person (other than a natural
person or the Parent or any of the Parent’s Affiliates or Subsidiaries) (each, a
“Participant”) in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans (including such Lender’s
participations in L/C Obligations and/or Swing Line Loans) owing to it); provided that (i)
such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of such obligations and
(iii) the Borrowers, the Administrative Agent, the other Lenders and the L/C Issuer shall continue
to deal solely and directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells
such a participation shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision of this Agreement;
provided that such agreement or instrument may provide that such Lender will not, without
the consent of the Participant, agree to any amendment, waiver or other modification described in
Section 11.01(a) that affects such Participant. Subject to subsection (e) of this Section,
each Borrower agrees that each Participant shall be entitled to the benefits of Sections
3.01, 3.04 and 3.05 (subject to the requirements and limitations of such
Sections) to the same extent as if it were a Lender and had acquired its interest by assignment
pursuant to subsection (b) of this Section. To the extent permitted by Law, each Participant also
shall be entitled to the benefits of Section 11.08 as though it were a Lender,
provided such Participant agrees to be subject to Section 2.13 as though it were a
Lender.

 

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(e) Limitation on Participant Rights. A Participant shall not be entitled to receive
any greater payment under Section 3.01 or 3.04 than the applicable Lender would
have been entitled to receive with
respect to the participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Parent’s prior written consent. A Participant that would be a
Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 3.01
unless the Parent is notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrowers, to comply with Section 3.01(e) as though it were
a Lender.

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

(g) Resignation as L/C Issuer or Swing Line Lender after Assignment. Notwithstanding
anything to the contrary contained herein, if at any time Bank of America assigns all of its
Revolving Commitment and Revolving Loans pursuant to subsection (b) above, Bank of America may, (i)
upon thirty days’ notice to the Parent and the Lenders, resign as L/C Issuer and/or (ii) upon
thirty days’ notice to the Parent, resign as Swing Line Lender. In the event of any such
resignation as L/C Issuer or Swing Line Lender, the Parent shall be entitled to appoint from among
the Lenders a successor L/C Issuer or Swing Line Lender hereunder; provided,
however, that no failure by the Parent to appoint any such successor shall affect the
resignation of Bank of America as L/C Issuer or Swing Line Lender, as the case may be. If Bank of
America resigns as L/C Issuer, it shall retain all the rights, powers, privileges and duties of the
L/C Issuer hereunder with respect to all Letters of Credit outstanding as of the effective date of
its resignation as L/C Issuer and all L/C Obligations with respect thereto (including the right to
require the Lenders to make Base Rate Loans or fund risk participations in Unreimbursed Amounts
pursuant to Section 2.03(c)). If Bank of America resigns as Swing Line Lender, it shall
retain all the rights of the Swing Line Lender provided for hereunder with respect to Swing Line
Loans made by it and outstanding as of the effective date of such resignation, including the right
to require the Lenders to make Base Rate Loans or fund risk participations in outstanding Swing
Line Loans pursuant to Section 2.04(c). Upon the appointment of a successor L/C Issuer
and/or Swing Line Lender, (1) such successor shall succeed to and become vested with all of the
rights, powers, privileges and duties of the retiring L/C Issuer or Swing Line Lender, as the case
may be, and (2) the successor L/C Issuer shall issue letters of credit in substitution for the
Letters of Credit, if any, outstanding at the time of such succession or make other arrangements
satisfactory to Bank of America to effectively assume the obligations of Bank of America with
respect to such Letters of Credit.

11.07 Treatment of Certain Information; Confidentiality.

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

 

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For purposes of this Section, “Information” means all information received from a Loan
Party or any Subsidiary relating to the Loan Parties or any Subsidiary or any of their respective
businesses, other than any such information that is available to the Administrative Agent, any
Lender or the L/C Issuer on a nonconfidential basis prior to disclosure by such Loan Party or any
Subsidiary, provided that, in the case of information received from a Loan Party or any
Subsidiary after the date hereof, such information is clearly identified at the time of delivery as
confidential (it being agreed that any projections and unpublished results of operations shall be
deemed confidential regardless of whether marked as such). Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own confidential
information.

Each of the Administrative Agent, the Lenders and the L/C Issuer acknowledges that (a) the
Information may include material non-public information concerning a Loan Party or a Subsidiary, as
the case may be, (b) it has developed compliance procedures regarding the use of material
non-public information and (c) it will handle such material non-public information in accordance
with applicable Law, including United States Federal and state securities Laws.

11.08 Set-off.

If an Event of Default shall have occurred and be continuing, each Lender, the L/C Issuer and
each of their respective Affiliates is hereby authorized at any time and from time to time, after
obtaining the prior written consent of the Administrative Agent, to the fullest extent permitted by
applicable law, to set off and apply any and all deposits (general or special, time or demand,
provisional or final, in whatever currency) at any time held and other obligations (in whatever
currency) at any time owing by such Lender, the L/C Issuer or any such Affiliate to or for the
credit or the account of any Loan Party against any and all of the obligations of such Loan Party
now or hereafter existing under this Agreement or any other Loan Document to such Lender or the L/C
Issuer, irrespective of whether or not such Lender or the L/C Issuer shall have made any demand
under this Agreement or any other Loan Document and although such obligations of such Loan Party
may be contingent or unmatured or are owed to a branch or office of such Lender or the L/C Issuer
different from the branch or office holding such deposit or obligated on such indebtedness;
provided, that in the event that any Defaulting Lender shall exercise any such right of
setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for
further application in accordance with the provisions of Section 2.15 and, pending such
payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in
trust for the benefit of the Administrative Agent and the Lenders, and (y) the Defaulting Lender
shall provide promptly to the Administrative Agent a statement describing in reasonable detail the
Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. The
rights of each Lender, the L/C Issuer and their respective Affiliates under this Section are in
addition to other rights and remedies (including other rights of setoff) that such Lender, the L/C
Issuer or their respective Affiliates may have. Each Lender and the L/C Issuer agrees to notify
the Parent and the Administrative Agent promptly after any such setoff and application,
provided that the failure to give such notice shall not affect the validity of such setoff
and application.

 

103

 

11.09 Interest Rate Limitation.

Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or
agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious
interest permitted by applicable Law (the “Maximum Rate”). If the Administrative Agent or
any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest
shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to
the applicable Borrower. In determining whether the interest contracted for, charged, or received
by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent
permitted by applicable Law, (a) characterize any payment that is not principal as an expense, fee,
or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c)
amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest
throughout the contemplated term of the Obligations hereunder.

11.10 Counterparts; Integration; Effectiveness; Amendment and Restatement.

(a) This Agreement may be executed in counterparts (and by different parties hereto in
different counterparts), each of which shall constitute an original, but all of which when taken
together shall constitute a single contract. This Agreement and the other Loan Documents
constitute the entire contract among the parties relating to the subject matter hereof and
supersede any and all previous agreements and understandings, oral or written, relating to the
subject matter hereof. Except as provided in Section 5.01, this Agreement shall become
effective when it shall have been executed by the Administrative Agent and when the Administrative
Agent shall have received counterparts hereof that, when taken together, bear the signatures of
each of the other parties hereto. Delivery of an executed counterpart of a signature page of this
Agreement by telecopy or other electronic imaging means shall be effective as delivery of a
manually executed counterpart of this Agreement.

(b) The parties to the Existing Credit Agreement each hereby agree that, at such time as this
Agreement shall have become effective pursuant to the terms of Section 5.01, (a) the
Existing Credit Agreement automatically shall be deemed amended and restated in its entirety by
this Agreement, and (b) the Commitments under the Existing Credit Agreement and as defined therein
automatically shall be replaced with the Commitments hereunder. This Agreement is not a novation
of the Existing Credit Agreement.

11.11 Survival of Representations and Warranties.

All representations and warranties made hereunder and in any other Loan Document or other
document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive
the execution and delivery hereof and thereof. Such representations and warranties have been or
will be relied upon by the Administrative Agent and each Lender, regardless of any investigation
made by the Administrative Agent or any Lender or on their behalf and notwithstanding that the
Administrative Agent or any Lender may have had notice or knowledge of any Default at the time of
any Credit Extension, and shall continue in full force and effect as long as any Loan or any other
Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit shall remain
outstanding.

 

104

 

11.12 Severability.

If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid
or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this
Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the
parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable
provisions with valid provisions
the economic effect of which comes as close as possible to that of the illegal, invalid or
unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. Without limiting the
foregoing provisions of this Section 11.12, if and to the extent that the enforceability of
any provisions in this Agreement relating to Defaulting Lenders shall be limited by Debtor Relief
Laws, as determined in good faith by the Administrative Agent, the L/C Issuer or the Swing Line
Lender, as applicable, then such provisions shall be deemed to be in effect only to the extent not
so limited.

11.13 Replacement of Lenders.

If (i) any Lender requests compensation under Section 3.04, (ii) any Borrower is
required to pay any additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 3.01, (iii) a Lender (a “Non-Consenting Lender”)
does not consent to a proposed change, waiver, discharge or termination with respect to any Loan
Document that has been approved by the Required Lenders as provided in Section 11.01 but
requires unanimous consent of all Lenders or all Lenders directly affected thereby (as applicable),
(iv) any Lender is a Defaulting Lender or (v) a Lender delivers a notice pursuant to Section
3.02, then the Parent may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance
with and subject to the restrictions contained in, and consents required by, Section
11.06), all of its interests, rights and obligations under this Agreement and the related Loan
Documents to an assignee that shall assume such obligations (which assignee may be another Lender,
if a Lender accepts such assignment), provided that:

(a) the Parent shall have paid to the Administrative Agent the assignment fee specified
in Section 11.06(b);

(b) such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and L/C Advances, accrued interest thereon, accrued fees and all
other amounts payable to it hereunder and under the other Loan Documents (including any
amounts under Section 3.05) from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or the Borrowers (in the case of all other
amounts);

(c) in the case of any such assignment resulting from (i) a claim for compensation
under Section 3.04, (ii) payments required to be made pursuant to Section
3.01 or (iii) delivery of a notice pursuant to Section 3.02, such assignment
will result in a reduction in such compensation or payments thereafter or, in the case of
Section 3.02, eliminate the applicable circumstances;

(d) such assignment does not conflict with applicable Laws; and

(e) in the case of any such assignment resulting from a Non-Consenting Lender’s failure
to consent to a proposed change, waiver, discharge or termination with respect to any Loan
Document, the applicable replacement bank, financial institution or Fund consents to the
proposed change, waiver, discharge or termination;

provided, further, that the failure by such Lender to execute and deliver an
Assignment and Assumption shall not impair the validity of the removal of such Lender and the
mandatory assignment of such Lender’s Commitments and outstanding Loans and participations in L/C
Obligations and Swing Line Loans pursuant to this Section 11.13 shall nevertheless be
effective without the execution by such Lender of an Assignment and Assumption.

 

105

 

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

11.14 Governing Law; Jurisdiction; Etc.

(a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK.

(b) SUBMISSION TO JURISDICTION. EACH LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE
OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN
DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT
OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL
CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK
STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF
THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER
MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY
RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY LOAN PARTY
OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

(c) WAIVER OF VENUE. EACH LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION. EACH OF THE PARTIES
HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF
AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

(d) SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS
IN THE MANNER PROVIDED FOR NOTICES IN SECTION 11.02. NOTHING IN THIS AGREEMENT WILL AFFECT
THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

11.15 Waiver of Right to Trial by Jury.

EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

106

 

11.16 No Advisory or Fiduciary Responsibility.

In connection with all aspects of each transaction contemplated hereby (including in
connection with any amendment, waiver or other modification hereof or of any other Loan Document),
each of the Loan Parties acknowledges and agrees, and acknowledges its Affiliates’ understanding,
that: (i) (A) the arranging and other services regarding this Agreement provided by the
Administrative Agent and the Arranger are arm’s-length commercial transactions between the Loan
Parties and their respective Affiliates, on the one hand, and the Administrative Agent and the
Arranger, on the other hand, (B) each of the Loan Parties has consulted its own legal, accounting,
regulatory and tax advisors to the extent it has deemed appropriate, and (C) each of the Loan
Parties is capable of evaluating, and understands and accepts, the terms, risks and conditions of
the transactions contemplated hereby and by the other Loan Documents; (ii) (A) the Administrative
Agent and the Arranger each is and has been acting solely as a principal and, except as expressly
agreed in writing by the relevant parties, has not been, is not, and will not be acting as an
advisor, agent or fiduciary for the Loan Parties or any of their respective Affiliates, or any
other Person and (B) neither the Administrative Agent nor the Arranger has any obligation to the
Loan Parties or any of their respective Affiliates with respect to the transactions contemplated
hereby except those obligations expressly set forth herein and in the other Loan Documents; and
(iii) the Administrative Agent and the Arranger and their respective Affiliates may be engaged in a
broad range of transactions that involve interests that differ from those of the Loan Parties and
their respective Affiliates, and neither the Administrative Agent nor the Arranger has any
obligation to disclose any of such interests to the Loan Parties and their respective Affiliates.
To the fullest extent permitted by Law, each of the Loan Parties hereby waives and releases any
claims that it may have against the Administrative Agent and the Arranger with respect to any
breach or alleged breach of agency or fiduciary duty in connection with any aspect of any
transaction contemplated hereby.

11.17 Electronic Execution of Assignments and Certain Other Documents.

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

11.18 USA PATRIOT Act Notice.

Each Lender that is subject to the Act (as hereinafter defined) and the Administrative Agent
(for itself and not on behalf of any Lender) hereby notifies the Borrowers that pursuant to the
requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”), it is required to obtain, verify and record information that identifies the
Borrowers, which information
includes the name and address of the Borrowers and other information that will allow such
Lender or the Administrative Agent, as applicable, to identify the Borrowers in accordance with the
Act. Each Borrower shall, promptly following a request by the Administrative Agent or any Lender,
provide all documentation and other information that the Administrative Agent or such Lender
requests in order to comply with its ongoing obligations under applicable “know your customer” and
anti-money laundering rules and regulations, including the Act.

 

107

 

11.19 Concerning Joint and Several Liability of the Borrowers.

(a) Each of the Borrowers is accepting joint and several liability hereunder in consideration
of the financial accommodation to be provided by the Lenders under this Agreement, for the mutual
benefit, directly and indirectly, of each of the Borrowers and in consideration of the undertakings
of each of the Borrowers to accept joint and several liability for the obligations of each of them.

(b) Each of the Borrowers jointly and severally hereby irrevocably and unconditionally
accepts, not merely as a surety but also as a co-debtor, joint and several liability with the other
Borrower with respect to the payment and performance of all of the Obligations arising under this
Agreement and the other Loan Documents, it being the intention of the parties hereto that all the
Obligations shall be the joint and several obligations of each of the Borrowers without preferences
or distinction among them.

(c) If and to the extent that a Borrower shall fail to make any payment with respect to any of
the obligations hereunder as and when due or to perform any of such obligations in accordance with
the terms thereof, then in each such event, the other Borrower will make such payment with respect
to, or perform, such obligation.

(d) The obligations of each Borrower under the provisions of this Section 11.19
constitute full recourse obligations of such Borrower, enforceable against it to the full extent of
its properties and assets, irrespective of the validity, regularity or enforceability of this
Agreement or any other circumstances whatsoever.

(e) Except as otherwise expressly provided herein and to the extent permitted by applicable
Law, each Borrower hereby waives notice of acceptance of its joint and several liability, notice of
occurrence of any Default or Event of Default (except to the extent notice is expressly required to
be given pursuant to the terms of this Agreement), or of any demand for any payment under this
Agreement, notice of any action at any time taken or omitted by the Agent or the Lenders under or
in respect of any of the Obligations hereunder, any requirement of diligence and, generally, all
demands, notices and other formalities of every kind in connection with this Agreement. Each
Borrower hereby assents to, and waives notice of, any extension or postponement of the time for the
payment of any of the Obligations hereunder, the acceptance of any partial payment thereon, any
waiver, consent or other action or acquiescence by the Lenders at any time or times in respect of
any default by any Borrower in the performance or satisfaction of any term, covenant, condition or
provision of this Agreement, any and all other indulgences whatsoever by the Lenders in respect of
any of the Obligations hereunder, and the taking, addition, substitution or release, in whole or in
part, at any time or times, of any security for any of such Obligations or the addition,
substitution or release, in whole or in part, of any Borrower. Without limiting the generality of
the foregoing, each Borrower assents to any other action or delay in acting or any failure to act
on the part of the Agent or the Lenders, including, without limitation, any failure strictly or
diligently to assert any right or to pursue any remedy or to comply fully with applicable laws or
regulations thereunder which might, but for the provisions of this Section 11.19, afford
grounds for terminating, discharging or relieving such Borrower, in whole or in part, from any of
its obligations under this Section 11.19, it being the intention of each Borrower that, so
long as any of the Obligations hereunder remain unsatisfied, the obligations of such Borrower under
this Section 11.19 shall not be
discharged except by performance and then only to the extent of such performance. The
obligations of each Borrower under this Section 11.19 shall not be diminished or rendered
unenforceable by any winding up, reorganization, arrangement, liquidation, reconstruction or
similar proceeding with respect to any reconstruction or similar proceeding with respect to any
Borrower or the Lenders. The joint and several liability of the Borrowers hereunder shall continue
in full force and effect notwithstanding any absorption, merger, amalgamation or any other change
whatsoever in the name, membership, constitution or place of formation of any Borrower or the
Lenders.

 

108

 

(f) The provisions of this Section 11.19 are made for the benefit of the Agent and the
Lenders and their respective successors and assigns, and may be enforced by any such Person from
time to time against any of the Borrowers as often as occasion therefore may arise and without
requirement on the part of any Lender first to marshal any of its claims or to exercise any of its
rights against any other Borrower or to exhaust any remedies available to it against any other
Borrower or to resort to any other source or means of obtaining payment of any of the Obligations
or to elect any other remedy. The provisions of this Section 11.19 shall remain in effect
until all the Obligations hereunder shall have been Fully Satisfied. If at any time, any payment,
or any part thereof, made in respect of any of the Obligations, is rescinded or must otherwise be
restored or returned by the Lenders upon the insolvency, bankruptcy or reorganization of any of the
Borrowers, or otherwise, the provisions of this Section 11.19 will forthwith be reinstated
and in effect as though such payment had not been made.

(g) Notwithstanding any provision to the contrary contained herein or in any other of the Loan
Documents or Swap Contracts or Treasury Management Agreements, the obligations of each Borrower
hereunder shall be limited to an aggregate amount equal to the largest amount that would not render
its obligations hereunder subject to avoidance under Section 548 of the Bankruptcy Code of the
United States or any comparable provisions of any applicable Debtor Relief Law.

11.20 Termination of Borrowers.

The Parent may from time to time, upon not less than 10 Business Days’ notice from the Parent
to the Administrative Agent (or such shorter period as may be agreed by the Administrative Agent in
its sole discretion), terminate any Subsidiary’s status as a Borrower, provided that there
are no outstanding Loans or L/C Obligations payable by such Borrower or other amounts payable by
such Borrower on account of any Credit Extensions made to it, as of the effective date of such
termination (unless such Loans and other Obligations have been assumed by another Borrower). The
Administrative Agent will promptly notify the Lenders of any such termination of a Borrower’s
status. In connection therewith, such Subsidiary shall become a Guarantor in the manner
contemplated by Section 7.11.

11.21 Commitment Letter.

With the exception of those provisions in that certain Commitment Letter dated June 21, 2011
among the Parent and the Administrative Agent (the “Commitment Letter”), which by the
express terms of the Commitment Letter remain in full force and effect after the entry of Loan
Documents, the Commitment Letter (including without limitation, any representations and warranties
made therein by any Loan Party) is replaced and superceded in its entirety by the terms of this
Agreement and the other Loan Documents.

[SIGNATURE PAGES FOLLOW]

 

109

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written.

	 	 	 	 	 
	BORROWER:  	KID BRANDS, INC.,

a New Jersey corporation

 	 
	 	By:  	/s/
Bruce G. Crain	 
	 	 	Name: Bruce G. Crain	 
	 	 	Title:   President and CEO	 
	 
	 	KIDS LINE, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/
Bruce G. Crain	 
	 	 	Name: Bruce G. Crain	 
	 	 	Title:   Vice
President	 
	 
	 	SASSY, INC.,

an Illinois corporation

 	 
	 	By:  	/s/
Bruce G. Crain	 
	 	 	Name: Bruce G. Crain	 
	 	 	Title:   Vice
President	 
	 
	 	I & J HOLDCO, INC.,

a Delaware corporation

 	 
	 	By:  	/s/
Bruce G. Crain	 
	 	 	Name: Bruce G. Crain	 
	 	 	Title:   Vice
President	 
	 
	 	LAJOBI, INC.,

a Delaware corporation

 	 
	 	By:  	/s/
Bruce G. Crain	 
	 	 	Name: Bruce G. Crain	 
	 	 	Title:   Vice
President	 
	 
	 	COCALO, INC.,

a California corporation

 	 
	 	By:  	/s/
Bruce G. Crain	 
	 	 	Name: Bruce G. Crain	 
	 	 	Title:   Vice
President	 
	 

KID BRANDS, INC.

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

 

 

	 	 	 	 	 
	ADMINISTRATIVE AGENT: 	 BANK OF AMERICA, N.A.,

as Administrative Agent

 	 
	 	By:  	/s/ Erin M. Frey
 	 
	 	 	Name:  	Erin M. Frey 	 
	 	 	Title:  	Vice President 	 
	 

KID BRANDS, INC.

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

 

 

	 	 	 	 	 
	LENDERS: 	BANK OF AMERICA, N.A.,

as a Lender, Swing Line Lender and L/C Issuer

 	 
	 	By:  	/s/ Erin M. Frey
 	 
	 	 	Name:  	Erin M. Frey 	 
	 	 	Title:  	Vice President 	 
	 

KID BRANDS, INC.

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,

as a Lender

 	 
	 	By:  	/s/ Susan M. Graham
 	 
	 	 	Name:  	Susan M. Graham 	 
	 	 	Title:  	Vice President 	 
	 

KID BRANDS, INC.

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A.,

as a Lender

 	 
	 	By:  	/s/ Kathryn T. Murphy
 	 
	 	 	Name:  	Kathryn T. Murphy 	 
	 	 	Title:  	Senior Vice President 	 
	 

KID BRANDS, INC.

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

 

 

	 	 	 	 	 
	 	CITIZENS BANK OF PENNSYLVANIA,

as a Lender

 	 
	 	By:  	/s/ Francis J. Kelly
 	 
	 	 	Name:  	Francis J. Kelly 	 
	 	 	Title:  	Senior Vice President 	 
	 

KID BRANDS, INC.

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

 

 

	 	 	 	 	 
	 	HSBC BANK USA, N.A.,

as a Lender

 	 
	 	By:  	/s/ John Yoler
 	 
	 	 	Name:  	John Yoler 	 
	 	 	Title:  	Vice President 	 
	 

KID BRANDS, INC.

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

 

 

	 	 	 	 	 
	 	SOVEREIGN BANK,

as a Lender

 	 
	 	By:  	/s/ Christine Gerula
 	 
	 	 	Name:  	Christine Gerula 	 
	 	 	Title:  	Senior Vice President 	 
	 

KID BRANDS, INC.

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

 

 

Schedule 1.01

Existing Letters of Credit

	 	 	 	 	 	 	 	 	 	 	 
	Loan Party	 	Type	 	Beneficiary	 	Amount	 	Maturity Date	 	Bank
	 
	 	 	 	 	 	 	 	 	 	 
	LaJobi, Inc.

	 	Standby
	 	Bond Safeguard
Insurance Company
and/or Lexon
Insurance Company
	 	up to $50,000
	 	12/09/111
	 	Bank of America,
N.A.
	 
	 	 	 	 	 	 	 	 	 	 
	LaJobi, Inc.

	 	Standby
	 	International Bond
and Marine
Brokerage Ltd.
	 	up to $50,000
	 	12/09/112
	 	Bank of America,
N.A.

 

	 	 	 
	1	 	Automatically renews each year.

	 
	2	 	Automatically renews each year.

 

 

 

Schedule 2.01

Commitments and Applicable Percentages

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Revolving	 
	 	 	Revolving	 	 	Commitment	 
	Lender	 	Commitment	 	 	Percentage	 
	Bank of America, N.A.
	 	$	40,000,000	 	 	 	22.857142857	%
	JPMorgan Chase Bank, N.A.
	 	$	30,000,000	 	 	 	17.142857143	%
	Wells Fargo Bank, N.A.
	 	$	30,000,000	 	 	 	17.142857143	%
	Citizens Bank of Pennsylvania
	 	$	25,000,000	 	 	 	14.285714286	%
	HSBC Bank USA, National Association
	 	$	25,000,000	 	 	 	14.285714286	%
	Sovereign Bank
	 	$	25,000,000	 	 	 	14.285714286	%
	Total
	 	$	175,000,000	 	 	 	100.000000000	%

 

 

 

Schedule 6.06

Contingent Liabilities

None.

 

 

 

Schedule 6.08

Subsidiaries

See below capitalization chart regarding each Loan Party and each Subsidiary.

Capitalization Information

	 	 	 	 	 
	 	 	Jurisdiction of	 	 
	Entity	 	Organization	 	Authorized and Issued Capital
	 
	 	 	 	 
	Sassy, Inc.

	 	Illinois
	 	The Parent owns 100 common
shares, which represents
100% ownership of all the
issued and outstanding
shares. 1,000 common shares
are authorized for issuance.
	 
	 	 	 	 
	Kids Line, LLC

	 	Delaware
	 	The Parent owns a 100%
membership percentage
interest.
	 
	 	 	 	 
	Kids Line Australia
Pty Ltd.

	 	Victoria, Australia
	 	Kids Line, LLC owns 75,000
ordinary shares, which
represents 100% ownership of
all the issued and
outstanding shares. There
is no limit to the number of
ordinary shares that may be
issued.
	 
	 	 	 	 
	Kids Line UK Limited

	 	United Kingdom
	 	Kids Line, LLC owns 1,000
ordinary shares, which
represents 100% ownership of
all the issued and
outstanding shares. 1,000
ordinary shares are
authorized for issuance.
	 
	 	 	 	 
	I & J HoldCo, Inc.

	 	Delaware
	 	The Parent owns 100 common
shares, which represents
100% ownership of all the
issued and outstanding
shares. 1,000 common shares
are authorized for issuance.
	 
	 	 	 	 
	LaJobi, Inc.

	 	Delaware
	 	I & J HoldCo, Inc. owns 100
common shares, which
represents 100% ownership of
all the issued and
outstanding shares. 1,000
common shares are authorized
for issuance.
	 
	 	 	 	 
	CoCaLo, Inc.

	 	California
	 	I & J HoldCo, Inc. owns 100
common shares which
represents 100% ownership of
all the issued and
outstanding shares. 1,000
common shares are authorized
for issuance.
	 
	 	 	 	 
	RB Trademark
Holdco, LLC

	 	Delaware
	 	Parent owns a 100%
membership percentage
interest.

 

 

 

Schedule 6.09

Pension Plans

None.

 

 

 

Schedule 6.12

Taxes

The Parent is currently in the process of conducting a U.S. Customs compliance assessment of
each of its business units. The assessment, which is preliminary and ongoing, has identified areas
of potential non-compliance that require further investigation. Such concerns include, among other
things, potential misclassification of goods and misvaluation of goods, which may have resulted in
an underpayment of import duties. The Parent is currently unable to estimate the amount of any
such potential underpayments, but due to the fact that underpayments would be required to be
calculated for a trailing five year period (together with interest thereon), the Parent believes
that any such potential underpayment could be material, although the Parent does not, as of the
Closing Date and as of any date thereafter that the Borrowers are required to make the
representation set forth in Section 6.12 of the Credit Agreement, believe that any such potential
underpayment would have a Material Adverse Effect. The Parent has filed a prior disclosure with
U.S. Customs and Border Protection with respect to these potential matters.

 

 

 

Schedule 6.14

Environmental Matters

None.

 

 

 

Schedule 6.15

Insurance

(see attachment)

 

 

 

Kid Brands, Inc.

Insurance Summary

THIS SUMMARY IS AN OUTLINE OF THE COVERAGE. ACTUAL POLICIES SHOULD BE REVIEWED FOR ACCURACY AS TO
THE FULL TERMS, CONDITIONS, EXCLUSIONS AND LIMITATIONS.

Kid Brands, Inc.

 

 

 

Table of Contents

	 	 	 	 	 
	Expiration/Premium Summary
	 	 	3	 
	PROPERTY COVERAGE — USA
	 	 	4	 
	EARTHQUAKE — KIDS LINE X CA EQ - 20 X 5
	 	 	7	 
	COMMERCIAL GENERAL LIABILITY — WORLDWIDE
	 	 	9	 
	COMMERCIAL UMBRELLA — PRIMARY $25,000,000
	 	 	12	 

Kid Brands, Inc.

 

 

 

Expiration/Premium Summary

	 	 	 	 	 	 	 	 	 	 	 
	Policy Number	 	Type of Insurance	 	Policy Title	 	Expiration	 	Annual Premium	 
	 
	 	 	 	 	 	 	 	 	 	 
	KTJ CMB-6505M18-5-10

	 	PROPERTY COVERAGE
	 	USA
	 	10/01/2011
	 	$	142,205	 
	 
	 	 	 	 	 	 	 	 	 	 
	312427 AF-1

	 	EARTHQUAKE
	 	KIDS LINE X CA EQ — 20
X 5
	 	10/01/2011
	 	$	79,355	 
	 
	 	 	 	 	 	 	 	 	 	 
	4015807886

	 	COMMERCIAL GENERAL
LIABILITY
	 	WORLDWIDE
	 	10/01/2011
	 	$	418,071	 
	 
	 	 	 	 	 	 	 	 	 	 
	71G6000253-101

	 	COMMERCIAL

UMBRELLA
	 	PRIMARY $25,000,000
	 	10/01/2011
	 	$	398,267	 
	 

	 	 	 	Grand Total:
	 	 	 	$	1,037,898	 

			
	 	 	 
	Kid Brands, Inc.
	 	Policy Number: 72WEDD0355
	WORKERS’ COMPENSATION
	 	Date: 07/20/2011 Page 3

 

 

 

PROPERTY COVERAGE -— USA

	 	 	 	 	 	 	 
	Client:
	 	Kid Brands, Inc.	 	 	 	 
	Broker:
	 	Wells Fargo Ins. Services	 	 	 	 
	Carrier:
	 	Travelers	 	Last Updated:	 	07/20/2011
	Policy Number:
	 	KTJ CMB-6505M18-5-10	 	A.M.Best Rating:	 	A+ XV
	Inception:
	 	10/01/2010	 	Expiration:	 	10/01/2011
	Annual Premium:
	 	$142,205	 	Auditable:	 	No

In addition to the first Named Insured shown in the Declarations (Kid Brands, Inc.) , the following
are added as Named Insured, as their interest may appear with respect to insurance provided under
this policy for the first Named Insured: Any subsidiary company affiliated company over which the
first Named Insured has active management or maintains more than fifty percent (50%) ownership
interest provided the first Named Insured notifies the Company within ninety (90) days from the
date any such subsidiary or affiliate is acquired or formed by the first Named Insured.

Named Insureds:

	 	 	 
	Ent #	 	Name
	86

	 	KID BRANDS, INC.

Locations:

	 	 	 	 	 	 	 
	Loc #	 	Address	 	City	 	State
	366

	 	1116 S. WALTON BLVD.
	 	BENTONVILLE
	 	AK
	374

	 	2839 El Presidio St.
	 	Carson
	 	CA
	377

	 	1801 Standard St.
	 	Santa Ana
	 	CA
	391

	 	2121 Alton Parkway
	 	Irvine
	 	CA
	395

	 	8400 MILLIKEN AVE.
	 	RANCHO CUCAMONGA
	 	CA
	396

	 	2525 PULLMAN
	 	SANTA ANA
	 	CA
	401

	 	400 South Hope St.
	 	Los Angeles
	 	CA
	349

	 	2601-2603 SEQUOIA DR.
	 	SOUTH GATE
	 	CA
	403

	 	600 West 7th St.
	 	Los Angeles
	 	CA
	322

	 	2101 WAUKEGAN ROAD
	 	BANNOCKBURN
	 	IL
	323

	 	2305 BRETON INDUSTRIAL PARK
	 	KENWOOD
	 	MI
	375

	 	257 Prospect Plains Road
	 	Cranbury
	 	NJ
	399

	 	1240 Cranbury South River Rd.
	 	Cranbury
	 	NJ
	400

	 	83 Stultz Rd.
	 	Dayton
	 	NJ
	402

	 	One Meadowlands Plaza
	 	E. Rutherford
	 	NJ

			
	 	 	 
	Kid Brands, Inc.
	 	Policy Number: KTJ CMB-6505M18-5-10
	PROPERTY COVERAGE
	 	Date: 07/20/2011 Page 4

 

 

 

	 	 	 
	PERILS COVERED:
	 	Y/N
	Special Perils
	 	Yes
	Named Perils
	 	No
	EDP Special Endorsement
	 	Yes      Included in Personal Property
	Flood (Standard Definition)
	 	Yes                  $25,000,000/aggr. - see Comments for exceptions
	Bd. Form Flood (Sewer Backup)
	 	Yes                  $100,000 - unless backup of sewer caused in whole or part by flood, then full flood limits apply
	Earthquake — Broad Form
	 	Yes                  $25,000,000/aggr. - see Comments for exceptions
	Earthquake — California
	 	Yes                  $5,000,000/aggr.
	 
	 	 
	EXTENSIONS OF COVERAGE:
	 	Y/N
	Increased Cost of Construction
	 	Yes-                 Included in Building Laws
	Demolition
	 	Yes - Included in Building Laws
	Building Laws
	 	Yes -                $5,000,000
	Loss Draft Payable Clause
	 	Yes - On file with carrier
	BI -Extended Period of Indemnity
	 	Yes - 365 Days
	Ordinary Payroll
	 	Yes - 90 Days
	Off Premises Services-Direct
	 	Yes -                $5,000,000
	Off Premises Services-Indirect
	 	Yes - Combined with Direct
	Vacancy Amendment
	 	No
	Joint Loss Adjustment Clause
	 	N/A
	Control of Damaged Goods
	 	Yes
	Newly Acquired Locations
	 	Yes -                $2,500,000
	Lawn, Trees & Shrubs
	 	Yes -                $100,000
	Earth Movement Sprinkler Leakage
	 	Yes
	60 Day Notice of Cancellation
	 	Yes
	Civil Authority
	 	Yes - 365 Days
	Leasehold Interest
	 	Yes -                $500,000
	Terrorism
	 	Yes
	Lenders Loss Payable
	 	Yes
	Brands & Labels
	 	Yes
	 
	 	 
	PROPERTY COVERED & LIMITS:
	 	Y/N
	Real Property
	 	Yes                  $50,000,000 Loss Limit any one occurrence, subject to Statement of Values and 130% waiver
	Improvements & Betterments
	 	Yes                  Included in Limit as per reported values
	Stock (Inventory)
	 	Yes                  Included in Limit as per reported values
	Personal Property
	 	Yes                  Included in Limit as per reported values
	Property of Others — Assumed
	 	Yes                  $100,000
	EDP Hardware
	 	Yes                  $909,994
	EDP Data, Software & Programs
	 	Yes                  Included in Hardware
	EDP — BI/EE
	 	Yes                  Included in Loss Limit
	Business Interruption (Loss of Income)
	 	Yes                  $30,159,675
	Time Element Ordinance or Law
	 	Yes                  250,000
	Contingent Business Interruption
	 	Yes                  $500,000
	Extra Expense
	 	Yes                  $5,000,000
	Valuable Papers
	 	Yes                  $2,000,000
	Boiler & Machinery
	 	Yes                  $25,000,000 (direct & indirect)
	Transit
	 	Yes                  $250,000
	Debris Removal
	 	Yes                  Greater of 25% of Recoverable Amount or $5,000,000
	Accounts Receivable
	 	Yes                  $5,000,000
	Exhibitions
	 	Yes                  $100,000
	Pollutant Cleanup
	 	Yes                  $100,000
	Unscheduled Loc.
	 	Yes                  $250,000
	Consequential Damage & Reduction in Value
	 	No                   Pair & Set - Requested
	 
	 	 
	VALUATION CLAUSES:
	 	 
	Real Property
	 	Replacement Cost
	Personal Property
	 	Replacement Cost
	Personal Property in Transit
	 	Finished Goods - Selling Price Less Discounts

			
	 	 	 
	Kid Brands, Inc.
	 	Policy Number: KTJ CMB-6505M18-5-10
	PROPERTY COVERAGE
	 	Date: 07/20/2011 Page 5

 

 

 

	 	 	 
	Inventory (Finished Goods Manufactured by
Insured)
	 	Selling Price Less Discounts
	Coinsurance Clause?
	 	No
	Agreed Amount?
	 	Yes
	Mobile Equipment, Contractors Equipment
	 	Actual Cash Value
	Loss of Income
	 	Actual Loss Sustained
	EDP
	 	Replacement Cost
	Valuable Papers
	 	Cost to Replace & Reconstruct
	Stock in Process
	 	Value of raw materials, labor and overhead
	Raw Materials
	 	Replacement Cost

	 	 	 
	MISCELLANEOUS COVERAGES:
	 	 
	Expediting Expense
	 	$100,000
	Ammonia Contamination
	 	$100,000

	 	 	 
	DEDUCTIBLES:
	 	 
	Property — Business Interruption
	 	$25,000 - All Locations
	Flood
	 	$100,000 - PD/TE - See Comments for deductibles in flood zones
	Quake
	 	$100,000 - except CA
	Windstorm
	 	$100,000 (250,000 High Hazard Zones)

(California: 5% of full 100% values (property and time element) if covered at the location
where physical loss; occurred but not less than $250,000).

COMMENTS:

FLOOD EXCEPTIONS TO GENERAL LIMIT:

$1,000,000 for all premises within 100 year Flood Plain- 250,000 Ded.

$25,000,000 for all premises situated outside 500 yr flood plain — 100,000 Ded.

As of inception broker/Travelers has confirmed no locs in flood zone.

EARTHQUAKE EXCEPTS TO GEN’L LIMIT:

$5,000,000 for all premises in Zone 1 — CA

$2,500,000 for all premises in High/Moderate Zone as per policy endt.

NAMED STORM WIND EXCEPT TO GEN’L LIMIT:

As of inception Kid Brands does not have locs in Wind Zones as defined by Travelers

	 	 	 
	MAJOR EXCLUSIONS/ LIMITATIONS:
	 	 
	Fungus, Wet Rot & Dry Rot

	 	Yes

			
	 	 	 
	Kid Brands, Inc.
	 	Policy Number: KTJ CMB-6505M18-5-10
	PROPERTY COVERAGE
	 	Date: 07/20/2011      Page 6

 

 

 

EARTHQUAKE — KIDS LINE X CA EQ — 20 X 5

	 	 	 	 	 	 	 
	Client:
	 	Kid Brands, Inc.	 	 	 	 
	Broker:
	 	Wells Fargo Ins. Services	 	 	 	 
	Carrier:
	 	Empire Indemnity Ins. Co.	 	Last Updated:	 	07/20/2011
	Policy Number:
	 	312427 AF-1	 	A.M.Best Rating:	 	A+ XV
	Inception:
	 	10/01/2010	 	Expiration:	 	10/01/2011
	Annual Premium:
	 	$79,355	 	Auditable:	 	No

Coverage follows primary.

Above mentioned premium includes $2,430 tax and fees.

Named Insureds:

	 	 	 
	Ent #	 	Name
	84	 	CoCaLo, Inc.

	83	 	I & J HOLDCO, INC.

	86	 	KID BRANDS, INC.

	67	 	KIDS LINE, LLC

	81	 	LAJOBI, INC.

Locations:

	 	 	 	 	 	 	 
	Loc #	 	Address	 	City	 	State
	349	 	2601-2603 SEQUOIA DR.
	 	SOUTH GATE	 	CA
	374	 	2839 El Presidio St.
	 	Carson	 	CA
	377	 	1801 Standard St.
	 	Santa Ana	 	CA
	391	 	2121 Alton Parkway
	 	Irvine	 	CA
	395	 	8400 MILLIKEN AVE.
	 	RANCHO CUCAMONGA	 	CA
	396	 	2525 PULLMAN
	 	SANTA ANA	 	CA
	401	 	400 South Hope St.
	 	Los Angeles	 	CA
	403	 	600 West 7th St.
	 	Los Angeles	 	CA

	 	 	 
	COVERAGE:
	 	Y/N
	Earthquake — Pers Prop, BI & EE
	 	Yes
	Earthquake Sprinkler Leakage
	 	Yes
	 
	 	 
	LIMIT:
	 	 
	$20,000,000 excess $5,000,000
	 	 
	 
	 	 
	VALUATION:
	 	 
	Real & Personal Property
	 	Replacement Cost
	Finished Stock (Sold & Unsold)
	 	Selling Price
	Business Interruption
	 	Actual Loss Sustained
	 
	 	 
	COVERAGE EXTENSIONS:
	 	Y/N
	Drop Down
	 	Yes

			
	 	 	 
	Kid Brands, Inc.
	 	Policy Number: 312427 AF-1
	EARTHQUAKE
	 	Date: 07/20/2011      Page 7

 

 

 

	 	 	 
	MAJOR EXCLUSIONS/LIMITATIONS:
	 	 
	Minimum Earned Premium
	 	$17,500
	Mold & Mildew
	 	Yes
	Terrorism
	 	Yes

			
	 	 	 
	Kid Brands, Inc.
	 	Policy Number: 312427 AF-1
	EARTHQUAKE
	 	Date: 07/20/2011      Page 8

 

 

 

COMMERCIAL GENERAL LIABILITY -— WORLDWIDE

	 	 	 	 	 	 	 
	Client:
	 	Kid Brands, Inc.	 	 	 	 
	Broker:
	 	Schwartz Brothers	 	 	 	 
	Carrier:
	 	Columbia Casualty	 	Last Updated:	 	07/20/2011
	Policy Number:
	 	4015807886	 	A.M.Best Rating:	 	A XV
	Inception:
	 	10/01/2010	 	Expiration:	 	10/01/2011
	Annual Premium:
	 	$418,071	 	Auditable:	 	Yes

Above mentioned premium includes tax of $19,908.

POLICY SUBJECT TO 90% MINIMUM AND DEPOSIT

Named Insureds:

	 	 	 
	Ent #	 	Name
	36	 	AMRAM’S DISTRIBUTING LIMITED

	66	 	BOA Done, Inc.

	84	 	CoCaLo, Inc.

	6	 	FLUF N’STUF, INC.

	88	 	I & J Quality Co., Ltd.

	83	 	I & J HOLDCO, INC.

	87	 	I & J International (Hong Kong) Limited

	89	 	I & J Quality Consulting (Shenzhen) Co., Ltd.

	86	 	KID BRANDS, INC.

	76	 	KIDS LINE AUSTRALIA PTY LTD.

	80	 	KIDS LINE UK, LTD

	67	 	KIDS LINE, LLC

	82	 	LAJOBI INDUSTRIES, INC.

	81	 	LAJOBI, INC.

	46	 	P/F DONE, INC.

	85	 	RB Trademark Holdco, LLC

	39	 	RBCACQ, INC.

	10	 	RBT-ACQ., INC.

	71	 	RUSS CONSULTING SERVICES (SHENZHEN) CO. LTD.

	40	 	RUSS AUSTRALIA PTY LIMITED

	41	 	RUSS BERRIE (BENELUX) B.V.

	42	 	RUSS BERRIE (DEUTSCHLAND) GMBH

	43	 	RUSS BERRIE (IRELAND) LTD.

	52	 	RUSS BERRIE (OSTERREICH) GMBH

	13	 	RUSS BERRIE AND COMPANY INVESTMENTS, INC.

	16	 	RUSS BERRIE AND COMPANY PROPERTIES, INC.

	19	 	RUSS BERRIE AND COMPANY WEST, INC.

	20	 	RUSS BERRIE AND COMPANY, INC.

	44	 	RUSS BERRIE ESPANA, S.L.

	53	 	RUSS BERRIE FRANCE SARL

	79	 	RUSS BERRIE U.S. GIFT, INC.

	26	 	RUSS BERRIE UK, LTD.

	27	 	RUSS PLUS, INC.

	63	 	SASSY, INC.

	33	 	TRI-RUSS INTERNATIONAL HONG KONG LTD.

			
	 	 	 
	Kid Brands, Inc.
	 	Policy Number: GB09100552
	COMMERCIAL GENERAL LIABILITY
	 	Date: 07/20/2011      Page 9

 

 

 

	 	 	 
	POLICY LIMITS:
	 	 
	Gen’l Aggregate
	 	$2,000,000
	Prod.-Completed Oper. Aggreg.
	 	$2,000,000
	Personal & Adver. Inj. Limit
	 	$1,000,000
	Each Occurrence Limit/BI & PD
	 	$1,000,000
	Fire Damage Legal Liability
	 	$200,000
	Medical Payments
	 	EXCLUDED
	 
	 	 
	LOCATION LIMIT:
	 	 
	Amended To Per Location Agg.
	 	No
	 
	 	 
	COVERAGE:
	 	Y/N
	Premises/ Operations
	 	Yes
	Independent Contractors
	 	Yes
	Products/ Completed Operations
	 	Yes
	Broad Form Vendors Cov.
	 	Yes Written Contract or agreement
	 
	 	 
	EXTENSIONS OF COVERAGE:
	 	Y/N
	Broad Form Named Insured
	 	Yes CNA wording
	Blanket Addl Insureds
	 	Yes As required by written contract
	Cross Liability
	 	Yes
	Knowledge Of Occurrence
	 	Yes CNA wording
	Notice Of Occurrence
	 	Yes CNA wording
	Unintentional E & O
	 	Yes
	Pollution By Hostile Fire/Heat Equip.
	 	Yes
	Blanket Add’L Insureds-Permits
	 	Yes
	Employees As Insureds
	 	Yes Incl exec. officer
	Punitive Damages — (Where Allowable
By State
Law)
	 	Silent
	Cancellation - 60 Days
	 	Yes 10 days non pay
	Fellow Employee Exc. Deleted
	 	No
	BI Includes Mental Anguish
	 	Yes
	Waiver of Subrogation
	 	Yes As required by contract
	Worldwide Territory
	 	Yes
	Primary Non-Contributory
	 	Yes As required by contract
	Certified Terrorism
	 	Yes
	 
	 	 
	EMPLOYEE BENEFITS LIABILITY:
	 	Y/N
	Limit Of Coverage
	 	Yes $1,000,000 each employee / $1,000,000 agg.
	 
	 	 
	DEDUCTIBLES:
	 	 
	Employee Benefits Lia. Ded.
	 	$1,000
	Infant Furniture Products
	 	$50,000 Per Occurrence
	Non infant furniture products
	 	10,000 Per Occurrence
	 
	 	 
	MAJOR EXCLUSIONS/LIMITATIONS
	 	Y/N
	Pollution Liability
	 	Yes
	Asbestos Liability
	 	Yes
	Nuclear Energy — Broad Form
	 	Yes
	Employment Related Practices
	 	Yes
	Recall
	 	Yes
	Minimum premium
	 	Yes 90% Min & Dep. - 25% for mid-term cancellation
	Silica
	 	Yes

			
	 	 	 
	Kid Brands, Inc.
	 	Policy Number: GB09100552
	COMMERCIAL GENERAL LIABILITY
	 	Date: 07/20/2011      Page 10

 

 

 

	 	 	 
	Lead
	 	No
	Medical Payments
	 	Yes
	Infringement
of copyright,patent, trademark or trade secret
	 	Yes
	Fungi/Mold/Mildew/Yeast & Microbe
	 	Yes
	Respirable Dust
	 	Yes

			
	 	 	 
	Kid Brands, Inc.
	 	Policy Number: GB09100552
	COMMERCIAL GENERAL LIABILITY
	 	Date: 07/20/2011      Page 11

 

 

 

COMMERCIAL UMBRELLA -— PRIMARY $25,000,000

	 	 	 	 	 	 	 
	Client:
	 	Kid Brands, Inc.	 	 	 	 
	Broker:
	 	Schwartz Brothers	 	 	 	 
	Carrier:
	 	Everest National Ins Co	 	Last Updated:	 	07/20/2011
	Policy Number:
	 	71G6000253-101	 	A.M.Best Rating:	 	A+ XV
	Inception:
	 	10/01/2010	 	Expiration:	 	10/01/2011
	Annual Premium:
	 	$398,267	 	Auditable:	 	No

Above mentioned premium includes Tax of $8,606.

Coverage follows primary.

	 	 	 
	COVERAGE:
	 	Limit
	Limit of Liability Per Occurr.
	 	25,000,000
	Self-Insured Retention
	 	10,000
	Products/Comp. Ops Aggregate
	 	25,000,000
	General Aggregate Limit
	 	25,000,000
	 
	 	 
	FORM:
	 	Y/N
	Occurrence
	 	Yes
	 
	 	 
	EXTENSIONS:
	 	Y/N
	“Pay on Behalf”
	 	Yes
	Defense Cost Included in Limit
	 	No
	Omnibus Named Insured Wording
	 	Yes
	Punitive Damages (where allowable by State)
	 	Silent
	Cross Liability
	 	Yes
	Excess of Fire Legal Liability
	 	No
	Excess of Employee Benefits Liability
	 	Yes Follow Form
	Notice/Knowledge of Occurrence
	 	No/No
	Unintentional E & O
	 	Yes
	60 Day Notice of Cancellation
	 	Yes 10 Day Non-Pay
	Drop down in aggregate
	 	 
	Hostile Fire Exception to Pollution
	 	Yes
	Worldwide
	 	Yes
	Mental Anguish
	 	Yes
	Terrorism
	 	Yes “certified”
	 
	 	 
	MAJOR EXCLUSIONS/LIMITATIONS:
	 	Y/N
	Care, Custody & Control
	 	Yes Real & Personal Property
	ERISA
	 	Yes
	Pollution
	 	Yes
	Asbestos
	 	Yes
	Cross Liability
	 	No
	Nuclear Energy
	 	Yes
	Employment-Related Practices
	 	Yes
	Professional Liability
	 	Yes

			
	 	 	 
	Kid Brands, Inc.
	 	Policy Number: 9909H8246
	SURETY BOND
	 	Date: 07/20/2011      Page 12

 

 

 

	 	 	 
	Fungus
	 	Yes
	Lead
	 	No
	No Fault, Un/Underinsured Motorist
	 	Yes
	Aircraft
	 	Yes
	Watercraft
	 	Yes
	Product Recall
	 	Yes
	OFAC
	 	Yes
	Silica
	 	Yes
	Cyber Liability
	 	Yes

	 	 	 	 	 
	SCHEDULE OF UNDERLYING:	 	Y/N	 	LIMIT
	Automobile Liability
	 	Yes	 	$1,000,000
	Employers Liability — Hartford
	 	Yes	 	$1Mil/1 Mil/1 Mil
	Employers Liability — CA-Kids Line
	 	Yes	 	$1 Mil/$1 Mil/$1 Mil
	General Liab. — Commercial
	 	Yes	 	$1 Mil/2 Mil
	Employee Benefits Liability
	 	Yes	 	$1 Mil/1Mil
	Foreign Liability
	 	Yes	 	$1,000,000
	Foreign Auto — DIC
	 	Yes	 	$1,000,000
	Foreign Employer’s Liability
	 	Yes	 	$1 Mil/1Mil/1 Mil
	Foreign Employee Benefits Liability
	 	Yes	 	$1 Mil/1 Mil

	 	 	 	 	 	 	 	 	 	 	 	 	 
	PARTICIPATING	 	 	 	 	 	 	 	 	 
	CARRIERS:	 	PREMIUM	 	 	Tax & Fee	 	 	TOTAL	 
	EVEREST NATIONAL PRIMARY $10Mil
	 	 	264,161	 	 	 	2,331	 	 	 	266,492	 
	AXIS SURPLUS 15Mil x 10Mil
	 	 	125,500	 	 	 	6,275	 	 	 	131,775	 
	#EAU747903/01/2010
	 	 	 	 	 	 	 	 	 	 	 	 

			
	 	 	 
	Kid Brands, Inc.
	 	Policy Number: 9909H8246
	SURETY BOND
	 	Date: 07/20/2011 Page 13

 

 

 

Schedule 6.16

Real Property

Kid Brands, Inc.:

Office

One Meadowlands Plaza, 8th Floor

East Rutherford, NJ 07073

	 	 	 
	Current Landlord Name:

	 	SPUSV5 ONE MEADOWLANDS, LP
	Current Landlord Address:

	 	CB Richard Ellis, Inc.

One Meadowlands Plaza

Suite 100

East Rutherford, New Jersey 07073
	 
	 	 
	With a copy to:

	 	SPUSV5 ONE MEADOWLANDS, LP,

c/o CB Richard Ellis Investors, LLC

515 South Flower Street, Suite 3100

Los Angeles, CA 90071

Attn: Director of Asset Management

Sassy, Inc.:

	1.	 	Office and Distribution Center*

2305 Breton Industrial Park Drive S.E.

Kentwood, MI 49508

	 
	2.	 	Chief Executive Office

2101 Waukegan Road

Bannockburn, IL 60015

	 	 	 
	Current Landlord Name:

	 	Bannockburn Professional Center
	Current Landlord Address:

	 	c/o L.J. Sheridan & Co., Agent

940 West Adams, Suite 400

Chicago, IL 60607

	3.	 	Office

1116 S. Walton Blvd., Suite 118

Bentonville, AR 72712

	 	 	 
	Current Landlord Name:

	 	Executive Center II, LLC
	Current Landlord Address:

	 	1116 S. Walton Blvd., Suite 100

Bentonville, AR 72712

 

	 	 	 
	*	 	Mortgaged Property

 

 

 

Kids Line, LLC:

	1.	 	Office and Distribution Center

2601 Sequoia Drive

South Gate, CA 90280

	 	 	 
	Current Landlord Name:

	 	Southgate Business and Industrial Park Developers, a

California general partnership
	Current Landlord Address:

	 	c/o Goldrich & Kest

5150 Overland Avenue

Culver City, CA 90230

Attn: Kenneth R. Loesch

	2.	 	Office

400 South Hope St., 6th Fl.

Los Angeles, CA 90017

	 	 	 
	Current Landlord Name:

	 	The Capital Group Companies, Inc.
	Current Landlord Address:

	 	6455 Irvine Center Drive

Irvine, CA 92618

I & J HoldCo, Inc.:

Office

2601 Sequoia Drive

South Gate, CA 90280

	 	 	 
	Current Landlord Name:

	 	Southgate Business and Industrial Park Developers, a

California general partnership
	Current Landlord Address:

	 	c/o Goldrich & Kest

5150 Overland Avenue

Culver City, CA 90230

Attn: Kenneth R. Loesch

 

 

 

LaJobi, Inc.:

Office and Distribution Center

257 Prospect Plains Rd.

Cranbury, NJ 08512

	 	 	 
	Current Landlord Name:

	 	IndCor Properties, LLC
	Current Landlord Address:

	 	c/o Jones Lang LaSalle

400 Interspace Pkwy, Bldg D 1st Floor

Parsippany, NJ 07054

CoCaLo, Inc.:

Chief Executive Office:

2121 Alton Parkway, Suite 150

Irvine, CA 92606

	 	 	 
	Current Landlord Name:

	 	Arden Realty, Inc.
	Current Landlord Address:

	 	1907 Main Street, 7th Fl.

Irvine, CA 92614

 

 

 

Schedule 6.18

IP Rights

Patent and Patent Applications

	 	 	 	 	 
	Grantor	 	Patent Number	 	Title
	 	 	 	 	 
	Sassy, Inc.
	 	App. No. 29380542
	 	Playmat and Accessories
	 	 	 	 	 
	Sassy, Inc.
	 	Patent No. 6905507
	 	Teething Pacifier
	 	 	 	 	 
	Sassy, Inc.
	 	Patent No. 6209133
	 	Integrated Bib/Teether Apparatus
	 	 	 	 	 
	Kids Line, LLC
	 	Patent No. D388973*
	 	Bassinet Carriage and Rocker
	 	 	 	 	 
	Kids Line, LLC
	 	Patent No. 7387285
	 	Method and Apparatus for Attaching an Item to a Railing
	 	 	 	 	 
	LaJobi, Inc.
	 	App. No. 61/438971
	 	Chair and Ottoman System
	 	 	 	 	 
	LaJobi, Inc.
	 	Patent No. 6845530*
	 	Convertible Crib and Bed Arrangement

 

	 	 	 
	*	 	Subject to further inquiry by Loan Parties.

 

 

 

Trademark and Trademark Applications

	 	 	 	 	 
	 	 	 	 	Trademark Registration
	Grantor	 	Trademark	 	Number
	 	 	 	 	 
	Sassy, Inc.
	 	GROW UP CUP
	 	App. No. 85/015751
	 	 	 	 	 
	Sassy, Inc.
	 	SASSY AND LADYBUG DESIGN
	 	App. No. 77/808544
	 	 	 	 	 
	Sassy, Inc.
	 	LADYBUG DESIGN
	 	App. No. 77/808566
	 	 	 	 	 
	Sassy, Inc.
	 	CIRCUS
	 	Reg. No. 2183971
	 	 	 	 	 
	Sassy, Inc.
	 	INFA-TRAINER
	 	Reg. No. 1187712
	 	 	 	 	 
	Sassy, Inc.
	 	POGO
	 	Reg. No. 2159097
	 	 	 	 	 
	Sassy, Inc.
	 	SASSY SEAT
	 	Reg. No. 3787472
	 	 	 	 	 
	Sassy, Inc.
	 	SASSY
	 	Reg. No. 2296588
	 	 	 	 	 
	Sassy, Inc.
	 	SASSY
	 	Reg. No. 2752658
	 	 	 	 	 
	Sassy, Inc.
	 	SASSY
	 	Reg. No. 3006201
	 	 	 	 	 
	Sassy, Inc.
	 	BARNA3
	 	Reg. No. 1652060
	 	 	 	 	 
	Kids Line, LLC
	 	TIDDLIWINKS*
	 	App. No. 85/066095
	 	 	 	 	 
	Kids Line, LLC
	 	KIDS LINE*
	 	App. No. 85/070183
	 	 	 	 	 
	Kids Line, LLC
	 	KIDSLINE and design
	 	App. No. 85/137735
	 	 	 	 	 
	Kids Line, LLC
	 	BABY CHEF and design
	 	App. No. 85/137647
	 	 	 	 	 
	Kids Line, LLC
	 	LITTLE BOUTIQUE*
	 	Reg. No. 3983774
	 	 	 	 	 
	Kids Line, LLC
	 	KATIE LITTLE
	 	Reg. No. 3096317
	 	 	 	 	 
	Kids Line, LLC
	 	KIDS LINE*
	 	Reg. No. 3362374

 

	 	 	 
	3	 	Sassy, Inc. licensed this U.S. Trademark from
Kirgro, Inc. f/k/a Barna Limited, pursuant to a royalty agreement dated July
14, 2000, which agreement expired July 13, 2005. Upon expiration of the
royalty agreement, the agreements between the parties provided that the rights
in the mark were to be transferred to Sassy, Inc. without further payment.
Such transfer has not been reflected in the records of the United States Patent
and Trademark Office.
	 
	*	 	Subject to further inquiry by Loan Parties.

 

 

 

	 	 	 	 	 
	 	 	 	 	Trademark Registration
	Grantor	 	Trademark	 	Number
	 	 	 	 	 
	LaJobi, Inc.
	 	INSPIRED NURSERY and design
	 	App. No. 85/360070
	 	 	 	 	 
	LaJobi, Inc.
	 	N/A (design only)
	 	App. No. 85/360068
	 	 	 	 	 
	LaJobi, Inc.
	 	INSPIRED NURSERY
	 	App. No. 85/360064
	 	 	 	 	 
	LaJobi, Inc.
	 	BABI ITALIA
	 	Reg. No. 3727179
	 	 	 	 	 
	LaJobi, Inc.
	 	B BABA ITALIA and design
	 	Reg. No. 2682277
	 	 	 	 	 
	LaJobi, Inc.
	 	BONAVITA
	 	Reg. No. 2168023
	 	 	 	 	 
	LaJobi, Inc.
	 	BONAVITA FINE CHILDREN’S

FURNISHINGS and design
	 	Reg. No. 3660168
	 	 	 	 	 
	LaJobi, Inc.
	 	ISSI
	 	Reg. No. 2636068
	 	 	 	 	 
	LaJobi, Inc.
	 	ISSI and design
	 	Reg. No. 3675261
	 	 	 	 	 
	LaJobi, Inc.
	 	LIFESTYLE CRIB
	 	Reg. No. 3660166
	 	 	 	 	 
	LaJobi, Inc.
	 	LAJOBI TREASURED BEGINNINGS and

design*
	 	Reg. No. 3654055
	 	 	 	 	 
	LaJobi, Inc.
	 	TREASURED BEGINNINGS
	 	Reg. No. 3790083
	 	 	 	 	 
	LaJobi, Inc.
	 	TREASURED BEGINNINGS
	 	Reg. No. 3738619
	 	 	 	 	 
	LaJobi, Inc.
	 	LAJOBI*
	 	Reg. No. 3663081
	 	 	 	 	 
	LaJobi, Inc.
	 	NURSERY 101
	 	Reg. No. 3723256
	 	 	 	 	 
	LaJobi, Inc.
	 	NURSERY 101 and design
	 	Reg. No. 3710220
	 	 	 	 	 
	LaJobi, Inc.
	 	THE CLASSIC CRIB
	 	Reg. No. 3684662
	 	 	 	 	 
	CoCaLo, Inc.
	 	PERFECT BUM
	 	App. No. 85/279944
	 	 	 	 	 
	CoCaLo, Inc.
	 	COCOLATE
	 	App. No. 85/325472
	 	 	 	 	 
	CoCaLo, Inc.
	 	TUCK & SNUG
	 	App. No. 85/094233
	 	 	 	 	 
	CoCaLo, Inc.
	 	GROW WITH BABY
	 	App. No. 85/044083

 

	 	 	 
	*	 	Subject to further inquiry by Loan Parties.

 

 

 

	 	 	 	 	 
	 	 	 	 	Trademark Registration
	Grantor	 	Trademark	 	Number
	 	 	 	 	 
	CoCaLo, Inc.
	 	DREAM WITH ME
	 	App. No. 85/010793
	 	 	 	 	 
	CoCaLo, Inc.
	 	COCALO (Design)
	 	Reg. No. 3143047
	 	 	 	 	 
	CoCaLo, Inc.
	 	COCALO BABY (Word)
	 	Reg. No. 3103046
	 	 	 	 	 
	CoCaLo, Inc.
	 	COCALO (Word)
	 	Reg. No. 3143048
	 	 	 	 	 
	CoCaLo, Inc.
	 	CO CO & COMPANY
	 	Reg. No. 3808510
	 	 	 	 	 
	CoCaLo, Inc.
	 	COCALO COUTURE
	 	Reg. No. 3793558
	 	 	 	 	 
	CoCaLo, Inc.
	 	COCALO COUTURE
	 	Reg. No. 3726652

 

 

 

Copyrights

	 	 	 	 	 	 	 
	 	 	 	 	Copyright	 	Copyright
	 	 	 	 	Registration	 	Registration
	Grantor	 	Copyright Title	 	Number	 	Date
	 	 	 	 	 	 	 
	Sassy, Inc.
	 	Go Go Charm Collection
	 	VAu001063982
	 	05/04/11
	 	 	 	 	 	 	 
	Sassy, Inc.
	 	Thoroughly Modern Mom
	 	PA0000038768
	 	1978
	 	 	 	 	 	 	 
	Sassy, Inc.
	 	Thoroughly Modern Mom
	 	TX0000087778
	 	19794
	 	 	 	 	 	 	 
	Kids Line, LLC
	 	Treasures

[print on crib bedding fabric]
	 	VA0000992638
	 	03/16/00
	 	 	 	 	 	 	 
	CoCaLo, Inc.
	 	Printed Mushroom Blossom
	 	VA0001343561
	 	02/06/06

 

	 	 	 
	4	 	Copyright originally filed with the US
Copyright Office on 7/21/79, assigned to Sassy, Inc. in 1986 and recorded in
1988.

 

 

 

Licenses

	1.	 	Consumer Products License Agreement, dated June 17, 2010, by and between Disney Consumer
Products, Inc. and Kids Line, LLC, as amended.

	2.	 	License Agreement by and between The William Carter Company and Kids Line, LLC, as amended.

	3.	 	Trademark License Agreement, dated February 2, 2004, between Serta Inc. and LaJobi
Industries, Inc. and extended by the letter dated March 27, 2008.

	4.	 	Trademark License Agreement, dated May 8, 2006, as amended, between Graco Children’s Products
Inc. and LaJobi Industries, Inc.

	5.	 	Trademark License Agreement, dated April 1, 2011, between Graco Children’s Products Inc. and
Kids Line, LLC.

	6.	 	License Agreement by and between The William Carter Company and Sassy, Inc., dated as of
January 1, 2011.

	7.	 	Vendor Agreement by and between Carter’s Retail, Inc., The William Carter Company and OshKosh
B’Gosh, Inc. and Sassy, Inc.

	8.	 	License Agreement, dated as of April 30, 2010, by and between Miss Matched, Inc. and Kid
Brands, Inc. (together with those of its wholly-owned subsidiaries through which it operates).

	9.	 	Merchandising License Agreement, dated as of June 12, 2010, between Reveille Independent, LLC
and Kids Line, LLC.

	10.	 	License Agreement, dated as of June 14, 2010, by and between notNeutral and Kids Line, LLC.

	11.	 	License Agreement, dated as of April 1, 2010, by and between Zutano, Inc. and Kids Line, LLC.

	12.	 	License Agreement, dated as of April 29, 2010, between Kathy Ireland Worldwide and LaJobi,
Inc.

	13.	 	License Agreement, dated March 30, 2011, between Disney Consumer Products, Inc. and Sassy,
Inc.

	14.	 	Patent and Know-How License Agreement, dated as of July 19, 2010, between OZ10 Limited and
Sassy, Inc.

	15.	 	Patent and Trademark License Agreement, dated as of November 16, 2010, by and between Play
This Way Everyday, LLC and Sassy, Inc.

	16.	 	License Agreement, dated as of January 4, 2010, between Garan Services Corp. and Sassy, Inc.

	17.	 	Trademark License Agreement, dated as of June 11, 2011, between Serta, Inc. and Sassy, Inc.

	18.	 	License Agreement, dated as of September 20, 2001, by and between Amscan, Inc. and Kids Line,
Inc. (Amscan’s consent to the March 15, 2002 assignment of the license from Kids Line,
Inc. (now known as California KL Holdings, Inc.) to Kids Line, LLC was required but not
obtained).

	19.	 	License Agreement, dated November 27, 2007, between Hanny Girl Productions, Inc. and Kids
Line, LLC.

	20.	 	Settlement and License Agreement, effective as January 1, 2007, by and between Donald P.
Berry, Sr., Designs 2-U, Inc. and Sassy, Inc.

 

 

 

Schedule 6.20

Labor Matters

Agreement, dated February 10, 2010, by and between Sassy, Inc. and General Teamsters Union, Local
No. 406.

 

 

 

Schedule 6.23

Deposit Accounts

	 	 	 	 	 	 	 
	Grantor	 	Financial Institution	 	Account Number	 	Contact Information
	Sassy, Inc.

	 	Cole Taylor Bank
	 	 0690-16941 and 92614
	 	359 East Dundee Rd.
Wheeling, IL 60090
	 
	 	 	 	 	 	 
	Kids Line, LLC

	 	Union Bank of California
	 	 0020021802
	 	2001 Wilshire Blvd.

Santa Monica, CA 90403
	 
	 	 	 	 	 	 
	Kids Line, LLC

	 	Union Bank of California
	 	 0020021810
	 	2001 Wilshire Blvd.

Santa Monica, CA 90403
	 
	 	 	 	 	 	 
	Kids Line, LLC

	 	Union Bank of California
	 	 00200302165
	 	2001 Wilshire Blvd.

Santa Monica, CA 90403
	 
	 	 	 	 	 	 
	LaJobi, Inc.

	 	Sovereign
	 	 159104909
	 	1130 Bershire Blvd.
Wyomissing, PA 19310
	 
	 	 	 	 	 	 
	CoCaLo, Inc.

	 	Union Bank of California
	 	 3520004253
	 	17951 MacArthur Blvd.
Irvine, CA 92614
	 
	 	 	 	 	 	 
	Kid Brands, Inc.

	 	JP Morgan Chase
	 	 610-04512456
	 	Rte 46 West, 1st Floor

Fairfield, NJ 07004
	 
	 	 	 	 	 	 
	Kid Brands, Inc.

	 	JP Morgan Chase
	 	 225-504327
	 	Rte 46 West, 1st Floor

Fairfield, NJ 07004
	 
	 	 	 	 	 	 
	Kid Brands, Inc.

	 	JP Morgan Chase
	 	 610-04496668
	 	Rte 46 West, 1st Floor

Fairfield, NJ 07004
	 
	 	 	 	 	 	 
	Kid Brands, Inc.

	 	JP Morgan Chase
	 	 790-3462339
	 	Rte 46 West, 1st Floor

Fairfield, NJ 07004
	 
	 	 	 	 	 	 
	I & J HoldCo, Inc.

	 	JP Morgan Chase
	 	 838-18837310
	 	Rte 46 West, 1st Floor

Fairfield, NJ 07004

 

	 	 	 
	5	 	Excluded Account
	 
	6	 	Excluded Account
	 
	7	 	Excluded Account
	 
	8	 	Excluded Account
	 
	9	 	Excluded Account
	 
	10	 	Excluded Account

 

 

 

Schedule 8.01

Indebtedness Existing on the Closing Date

Guaranty of Sublease by Kid Brands, Inc. in favor of The Capital Group Companies, Inc. (as
sublessor) with respect to that certain Sublease between The Capital Group Companies, Inc., as
sublessor, and Kids Line, LLC, as sublessee, dated on or about September 2010.

Guaranty and Indemnification, dated March 30, 2011, by Kid Brands, Inc. in favor of Disney Consumer
Products, Inc., with respect to that certain License Agreement, dated March 30, 2011, between
Disney Consumer Products, Inc. and Sassy, Inc.

Guaranty and Indemnification, dated June 17, 2011, by Kid Brands, Inc. in favor of Disney Consumer
Products, Inc., with respect to that certain License Agreement, dated June 17, 2010, between Disney
Consumer Products, Inc. and Kids Line, LLC.

Guaranty and Indemnification, dated March 26, 2008, by Kid Brands, Inc. (f/k/a Russ Berrie and
Company, Inc.) in favor of Graco Children’s Products, Inc. with respect to that certain Trademark
License Agreement between Graco Children’s Products, Inc. and LaJobi, Inc.

 

 

 

Schedule 8.02

Liens Existing on the Closing Date

Kid Brands, Inc. (f/k/a Russ Berrie and Company, Inc.):

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Description of	 	 	 	 	 	 	 	 	 	 
	Secured Party	 	Collateral	 	 	Jurisdiction	 	 	Filing No.	 	 	Filing Date	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CIT
Communications Finance Corporation
	 	Leased Equipment	 	 	New Jersey	 	 	24295567	 	 	 	08/07/07	 

Note: the information set forth above does not take into account any Liens in favor of the
Agent under the Existing Credit Agreement.

 

 

 

Schedule 8.10

Investments Existing on the Closing Date

Any equity investment by Sassy (or any Affiliate of Sassy including Kid Brands, Inc.) in Diaperoos,
LLC, a North Carolina limited liability company (“Diaperoos”) or any exercise by Sassy (or any
Affiliate of Sassy including Kid Brands, Inc.) of its options to purchase membership interests in
Diaperoos, in each case pursuant to the terms of that certain Exclusive Option Agreement, dated on
or about February 2011 between Sassy and Diaperoos and in an aggregate amount not to exceed
$6,250,000.

 

 

 

Schedule 11.02

Certain Addresses for Notices

For any Loan Party:

c/o Kid Brands, Inc.

One Meadowlands Plaza, 8th Floor

East Rutherford, NJ 07073

Administrative Agent:

For Borrowing/Payment Notices:

Bank of America, N.A.

NC1-001-04-39

101 N. Tryon

Charlotte, NC 28255

Attn: Rose Bollard

Email: Rose.bollard@baml.com

For financial document submissions and other purposes:

Bank of America, N.A.

901 Main St.

TX1-492-14-11

Dallas, TX 75202

Attn: Denise Wolfenberger

Email: Denise.m.wolfenberger@baml.com

Bank of America, N.A., as L/C Issuer:

Bank of America, N.A.

1 Fleet Way

Scranton, PA 18507

PA6-580-02-30

Attn: Kathryn A. Moceyunas

 

 

 

Exhibit 2.02

FORM OF LOAN NOTICE

Date: ___________, _____

	To:	 	 Bank of America, N.A., as Administrative Agent

Ladies and Gentlemen:

Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of August
8, 2011 (as amended, restated, extended, supplemented or otherwise modified from time to time, the
“Credit Agreement;” the terms defined therein being used herein as therein defined), among
Kid Brands, Inc., a New Jersey corporation (the “Parent”), Kids Line, LLC, a Delaware
limited liability company (“Kids Line”), Sassy, Inc., an Illinois corporation
(“Sassy”), I & J Holdco, Inc., a Delaware corporation (“I & J”), LaJobi, Inc., a
Delaware corporation (“LaJobi”) and CoCaLo, Inc., a California corporation
(“CoCaLo” and collectively with the Parent, Kids Line, Sassy, I & J, LaJobi and such other
designated subsidiary borrowers from time to time, the “Borrowers” and each a
“Borrower”), the Guarantors from time to time party thereto, the Lenders from time to time
party thereto, and Bank of America, N.A., as Administrative Agent.

The undersigned hereby requests (select one):

	 	o	 	A _____ Borrowing of Revolving Loans

	 	o	 	A conversion or continuation of Revolving Loans

	 	1.	 	On                      (a Business Day).

	 
	 	2.	 	In the amount of $                    .

	 
	 	3.	 	Comprised of                                         .

[Type of Loan requested]

	 
	 	4.	 	For Eurodollar Rate Loans:
with an Interest Period of _____ months.

With respect to such Borrowing, each Borrower hereby represents and warrants that (i) such request
complies with the requirements of Section 2.01(a)(i) of the Credit Agreement and (ii) each
of the conditions set forth in Section 5.02(a) and (b) of the Credit Agreement have
been satisfied on and as of the date of such Borrowing.

	 	 	 	 	 
	 	KID BRANDS, INC.,

a New Jersey corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	KIDS LINE, LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SASSY, INC.,

an Illinois corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	I & J HOLDCO, INC.,

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	LAJOBI, INC.,

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	COCALO, INC.,

a California corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

 

Exhibit 2.04

FORM OF SWING LINE LOAN NOTICE

Date: _____, 20_____

	To:	 	 Bank of America, N.A., as Swing Line Lender

	 
	Cc:	 	 Bank of America, N.A., as Administrative Agent

	 
	Re:	 	 Second Amended and Restated Credit Agreement, dated
as of August 8, 2011 (as amended, restated,
extended, supplemented or otherwise modified from
time to time, the “Credit Agreement) Kid Brands,
Inc., a New Jersey corporation (the “Parent”), Kids
Line, LLC, a Delaware limited liability company
(“Kids Line”), Sassy, Inc., an Illinois corporation
(“Sassy”), I & J Holdco, Inc., a Delaware
corporation (“I & J”), LaJobi, Inc., a Delaware
corporation (“LaJobi”) and CoCaLo, Inc., a
California corporation (“CoCaLo” and collectively
with the Parent, Kids Line, Sassy, I & J, LaJobi and
such other designated subsidiary borrowers from time
to time, the “Borrowers” and each a “Borrower”), the
Guarantors from time to time party thereto, the
Lenders identified therein, and Bank of America,
N.A., as Administrative Agent. Capitalized terms
used but not otherwise defined herein have the
meanings provided in the Credit Agreement.

Ladies and Gentlemen:

The undersigned hereby requests a Swing Line Loan:

	1.	 	On
                    , 20_____ (a Business Day).

	 
	2.	 	In the amount of $                    .

With respect to such Borrowing of Swing Line Loans, each Borrower hereby represents and warrants
that (i) such request complies with the requirements of clause (i) of the first proviso to the
first sentence of Section 2.04(a) of the Credit Agreement and (ii) each of the conditions
set forth in Section 5.02(a) and (b) of the Credit Agreement have been satisfied on
and as of the date of such Borrowing of Swing Line Loans.

	 	 	 	 	 
	 	KID BRANDS, INC.,

a New Jersey corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	KIDS LINE, LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	SASSY, INC.,

an Illinois corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	I & J HOLDCO, INC.,

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	LAJOBI, INC.,

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	COCALO, INC.,

a California corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

 

Exhibit 2.11(a)

FORM OF NOTE

____________, 20__

FOR VALUE RECEIVED, the undersigned (the “Borrowers”), hereby promise to pay to
_____ or its registered assigns (the “Lender”), in accordance with the
provisions of the Agreement (as hereinafter defined), the principal amount of each Loan from time
to time made by the Lender to the Borrowers under that certain Second Amended and Restated Credit
Agreement, dated as of August 8, 2011 (as amended, restated, extended, supplemented or otherwise
modified from time to time, the “Agreement;” the terms defined therein being used herein as
therein defined), among the Borrowers, the Guarantors from time to time party thereto, the Lenders
from time to time party thereto, and Bank of America, N.A., as Administrative Agent.

The Borrowers promise to pay interest on the unpaid principal amount of each Loan from the
date of such Loan until such principal amount is paid in full, at such interest rates and at such
times as provided in the Agreement. All payments of principal and interest shall be made to the
Administrative Agent for the account of the Lender in Dollars in immediately available funds at the
Administrative Agent’s Office. If any amount is not paid in full when due hereunder, such unpaid
amount shall bear interest, to be paid upon demand, from the due date thereof until the date of
actual payment (and before as well as after judgment) computed at the per annum rate set forth in
the Agreement.

This Note is one of the Notes referred to in the Agreement, is entitled to the benefits
thereof and may be prepaid in whole or in part subject to the terms and conditions provided
therein. Upon the occurrence and continuation of one or more of the Events of Default specified in
the Agreement, all amounts then remaining unpaid on this Note shall become, or may be declared to
be, immediately due and payable as provided in the Agreement. Loans made by the Lender shall be
evidenced by one or more loan accounts or records maintained by the Lender in the ordinary course
of business. The Lender may also attach schedules to this Note and endorse thereon the date, amount
and maturity of its Loans and payments with respect thereto.

The obligations of the Borrowers under this Note are joint and several.

Each Borrower, for itself, its successors and assigns, hereby waives diligence, presentment,
protest and demand and notice of protest, demand, dishonor and non-payment of this Note.

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK.

	 	 	 	 	 
	 	KID BRANDS, INC.,

a New Jersey corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	KIDS LINE, LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	SASSY, INC.,

an Illinois corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	I & J HOLDCO, INC.,

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	LAJOBI, INC.,

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	COCALO, INC.,

a California corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

 

Exhibit 7.02

FORM OF COMPLIANCE CERTIFICATE

For the fiscal [quarter] [year] ended _____, 20_____.

I, _____, solely in my capacity as [Title] of Kid Brands, Inc. (the
“Parent”) and not in my individual capacity, hereby certify that, to the best of my
knowledge and belief, with respect to that certain Second Amended and Restated Credit Agreement
dated as of _____ (as amended, modified, restated or supplemented from time to time, the
“Credit Agreement”; all of the defined terms in the Credit Agreement are incorporated
herein by reference) among the Borrowers, the Guarantors from time to time party thereto, the
Lenders and Bank of America, N.A., as Administrative Agent:

	 	(a)	 	(select one):

	 
	 	o	 	The company-prepared financial statements which accompany this
certificate fairly and accurately present in all material respects the
financial condition and results of operations of the Parent and its
Subsidiaries as of the date and for the period covered by such
financial statements.

	 
	 	o	 	Pursuant to Section 7.01(a) of the Credit Agreement, the financial
statements which accompany this certificate have been filed with the
SEC in connection with the Parent’s annual report on Form 10-K.

	 
	 	o	 	Pursuant to Section 7.01(b) of the Credit Agreement, the financial
statements which accompany this certificate have been filed with the
SEC in connection with the Parent’s quarterly report on Form 10-Q.

	 
	 	(b)	 	Since _____ (the date of the last similar certification, or, if none, the
Closing Date) [no Default or Event of Default has occurred or is continuing under the
Credit Agreement] or [[describe default] has occurred and is continuing under the
Credit Agreement and the following steps have been taken to cure such Default].

	 
	 	(c)	 	(select one):

	 
	 	o	 	Attached hereto are such supplements to Schedules 6.08 (Subsidiaries),
6.16 (Real Property), 6.18 (IP Rights) and 6.23 (Deposit Accounts) of
the Credit Agreement, such that, as supplemented, such Schedules are
accurate and complete as of the date hereof.

	 
	 	o	 	No such supplements are required at this time.

[(d) Delivered herewith are detailed calculations demonstrating compliance by the Loan Parties
with the financial covenants contained in Section 8.13 of the Credit Agreement as of the
end of the fiscal period referred to above.]1

[(e) Delivered herewith is a written statement of the Parent’s management setting forth a
discussion of the financial condition of the Parent and its Subsidiaries and any material changes
in their financial condition and/or results of operations.]2

 

	 	 	 
	1	 	Only applicable for annual and quarterly
financial deliveries.

	 
	2	 	Only applicable for annual and quarterly
financial deliveries and only to the extent not filed with the SEC in
connection with the Parent’s annual report on Form 10-K or quarterly report of
Form 10-Q.

 

 

 

This _____day of _____, 20_.

	 	 	 	 	 
	 	KID BRANDS, INC.,

a New Jersey corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

 

Attachment to Officer’s Certificate

Computation of Financial Covenants

 

 

 

Attachment to Officer’s Certificate

Management Discussion and Analysis

 

 

 

Exhibit 7.11

FORM OF JOINDER AGREEMENT

THIS JOINDER AGREEMENT (the “Agreement”), dated as of _____, 20_____, is by and
between _____, a _____(the “Subsidiary”), and BANK OF
AMERICA, N.A., in its capacity as Administrative Agent under that certain Second Amended and
Restated Credit Agreement (as it may be amended, modified, restated or supplemented from time to
time, the “Credit Agreement”), dated as of August 8, 2011, by and among Kid Brands, Inc., a
New Jersey corporation (the “Parent”), Kids Line, LLC, a Delaware limited liability company
(“Kids Line”), Sassy, Inc., an Illinois corporation (“Sassy”), I & J Holdco, Inc.,
a Delaware corporation (“I & J”), LaJobi, Inc., a Delaware corporation (“LaJobi”)
and CoCaLo, Inc., a California corporation (“CoCaLo” and collectively with the Parent, Kids
Line, Sassy, I & J, LaJobi and such other designated subsidiary borrowers from time to time, the
“Borrowers” and each a “Borrower”), the Guarantors from time to time party thereto,
the Lenders and Bank of America, N.A., as Administrative Agent. All of the defined terms in the
Credit Agreement are incorporated herein by reference.

The Loan Parties are required by Section 7.11 of the Credit Agreement to cause the
Subsidiary to become a [“Borrower”]
[“Guarantor”].

Accordingly, the Subsidiary hereby agrees as follows with the Administrative Agent, for the
benefit of the Lenders:

1. The Subsidiary hereby acknowledges, agrees and confirms that, by its execution of this
Agreement, the Subsidiary will be deemed to be a party to the Credit
Agreement and a [“Borrower”]
[“Guarantor”] for all purposes of the Credit Agreement, and shall have all of the obligations of a
Guarantor thereunder as if it had executed the Credit Agreement. The Subsidiary hereby ratifies,
as of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions
applicable to the [Borrowers] [Guarantors] contained in the Credit Agreement. [Without limiting
the generality of the foregoing terms of this paragraph 1, the Subsidiary hereby jointly and
severally together with the other Guarantors, guarantees to each Lender and the Administrative
Agent, as provided in Article IV of the Credit Agreement, the prompt payment of the
Obligations in full when due (whether at stated maturity, as a mandatory prepayment, by
acceleration, a mandatory cash collateralization or otherwise) strictly in accordance with the
terms thereof.]

2. The Subsidiary hereby acknowledges, agrees and confirms that, by its execution of this
Agreement, the Subsidiary will be deemed to be a party to the Security Agreement, and shall have
all the obligations of an “Obligor” (as such term is defined in the Security Agreement) thereunder
as if it had executed the Security Agreement. The Subsidiary hereby ratifies, as of the date
hereof, and agrees to be bound by, all of the terms, provisions and conditions contained in the
Security Agreement. Without limiting generality of the foregoing terms of this paragraph 2, the
Subsidiary hereby grants to the Administrative Agent, for the benefit of the holders of the Secured
Obligations (as such term is defined in Section 1 of the Security Agreement), a continuing security
interest in, and a right of set off against any and all right, title and interest of the Subsidiary
in and to the Collateral (as such term is defined in Section 2 of the Security Agreement) of the
Subsidiary. The Subsidiary hereby represents and warrants to the Administrative Agent, for the
benefit of the holders of the Secured Obligations (as such term is defined in Section 1 of the
Security Agreement), that:

(i) The Subsidiary’s chief executive office, tax payer identification number,
organization identification number, and chief place of business are (and for the prior four
months have been) located at the locations set forth on Schedule 1 attached hereto and the
Subsidiary keeps its books and records at such locations.

 

 

 

(ii) The location of all owned and leased real property (subject to any thresholds set
forth in the Credit Agreement) of the Subsidiary is as shown on Schedule 2 attached hereto.

(iii) The Subsidiary’s legal name and jurisdiction of organization is as shown in this
Agreement and the Subsidiary has not in the past four months changed its name, been party to
a merger, consolidation or other change in structure or used any tradename except as set
forth in Schedule 3 attached hereto.

(iv) The patents, copyrights, and trademarks listed on Schedule 4 attached hereto
constitute all of the registrations and applications for the patents, copyrights and
trademarks owned by the Subsidiary.

(v) The deposit accounts and investment accounts listed on Schedule 5 attached hereto
constitute all of the deposit accounts and investment accounts owned by the Subsidiary
(other than Excluded Accounts).

3. The address of the Subsidiary for purposes of all notices and other communications is
_____, _____, Attention of _____(Facsimile No.
_____).

4. The Subsidiary hereby waives acceptance by the Administrative Agent and the Lenders of the
guaranty by the Subsidiary under Article IV of the Credit Agreement upon the execution of this
Agreement by the Subsidiary.

5. This Agreement may be executed in two or more counterparts, each of which shall constitute
an original but all of which when taken together shall constitute one contract.

6. This Agreement shall be governed by and construed and interpreted in accordance with the
laws of the State of New York.

IN WITNESS WHEREOF, the Subsidiary has caused this Joinder Agreement to be duly executed by
its authorized officers, and the Administrative Agent, for the benefit of the Lenders, has caused
the same to be accepted by its authorized officer, as of the day and year first above written.

	 	 	 	 	 
	 	[SUBSIDIARY]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Acknowledged and accepted:

BANK OF AMERICA, N.A.,

as Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

 

Schedule 1

TO FORM OF JOINDER AGREEMENT

[Chief Executive Office, Tax Identification Number, Organization Identification Number

and Chief Place of Business of Subsidiary]

 

 

 

Schedule 2

TO FORM OF JOINDER AGREEMENT

[Owned and Leased Real Property]

 

 

 

Schedule 3

TO FORM OF JOINDER AGREEMENT

[Tradenames]

 

 

 

Schedule 4

TO FORM OF JOINDER AGREEMENT

[Patents, Copyrights, and Trademarks]

 

 

 

Schedule 5

TO FORM OF JOINDER AGREEMENT

[Deposit and Investment Accounts]

 

 

 

Exhibit 11.06(b)

FORM OF ASSIGNMENT AND ASSUMPTION

This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the
“Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used
but not defined herein shall have the meanings given to them in the Credit Agreement identified
below (the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the
Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed
to and incorporated herein by reference and made a part of this Assignment and Assumption as if set
forth herein in full.

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s
rights and obligations as a Lender under the Credit Agreement and any other documents or
instruments delivered pursuant thereto to the extent related to the amount and percentage interest
identified below of all of such outstanding rights and obligations of the Assignor under the
respective facilities identified below (including, without limitation, Letters of Credit,
Guarantees and Swing Line Loans included in such facilities) and (ii) to the extent permitted to be
assigned under applicable law, all claims, suits, causes of action and any other right of the
Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under
or in connection with the Credit Agreement, any other documents or instruments delivered pursuant
thereto or the loan transactions governed thereby or in any way based on or related to any of the
foregoing, including, but not limited to, contract claims, tort claims, malpractice claims,
statutory claims and all other claims at law or in equity related to the rights and obligations
sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned
pursuant to clauses (i) and (ii) above being referred to herein collectively as, the “Assigned
Interest”). Such sale and assignment is without recourse to the Assignor and, except as
expressly provided in this Assignment and Assumption, without representation or warranty by the
Assignor.

	1.	 	Assignor:                                         

	 
	2.	 	Assignee:                                         

[and is an Affiliate/Approved Fund of [identify Lender]3]

	 
	3.	 	Borrowers:
Kid Brands, Inc.,
Kids Line, LLC, Sassy, Inc., I & J Holdco, Inc., LaJobi, Inc., CoCaLo, Inc. and such other
designated subsidiary borrowers from time to time

	 
	4.	 	Agent: Bank of America, N.A., as the administrative agent under the Credit Agreement

	 
	5.	 	Credit Agreement: Second Amended and Restated Credit Agreement dated as of August 8, 2011 among the Borrowers, the
Guarantors from time to time party thereto, the Lenders parties thereto and Bank of America, N.A.,
as Administrative Agent

	 
	6.	 	Assigned Interest:

 

	 	 	 
	3	 	Select as applicable.

 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate Amount of	 	 	Amount of	 	 	 	 
	 	 	Commitment/Loans for	 	 	Commitment/Loans	 	 	Percentage Assigned of	 
	Facility Assigned	 	all Lenders*	 	 	Assigned*	 	 	Commitment/Loans4	 
	 
	 	$	 	 	 	$	 	 	 	 	%	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	$	 	 	 	 	%	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	$	 	 	 	 	%	 
	 
	 	 	 	 	 	 	 	 	 

	 	 	 
	[7.	 	Trade Date: _____]5

Effective Date: _____, 20_____[TO BE INSERTED BY AGENT AND WHICH SHALL BE THE
EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 
	 	ASSIGNOR

[NAME OF ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 	ASSIGNEE

[NAME OF ASSIGNEE]

 	 
	 	By:  	 	 
	 	 	Title: 	 

	 	 	 	 	 

	[Consented to and]6 Accepted:	 	 
	 
	 	 	 	 
	BANK OF AMERICA, N.A. as Agent

 	 	 
	By
	 	 	 	 
	 

	 	 

Title:
	 	 
	 
	 	 	 	 
	[Consented to:]7	 	 
	 
	 	 	 	 
	[BANK OF AMERICA, N.A., as L/C Issuer][and Swing Line Lender]
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 	 
	 

	 	Title:	 	 

 

	 	 	 
	*	 	Amount to be adjusted by the counterparties to
take into account any payments or prepayments made between the Trade Date and
the Effective Date.

	 
	4	 	Set forth, to at least 9 decimals, as a
percentage of the Commitment/Loans of all Lenders thereunder.

	 
	5	 	To be completed if the Assignor and the
Assignee intend that the minimum assignment amount is to be determined as of
the Trade Date.

	 
	6	 	To be added only if the consent of the
Administrative Agent is required by the terms of the Credit Agreement.

	 
	7	 	To be added only if the consent of the
Borrower and/or other parties (e.g. L/C Issuer) is required by the terms of the
Credit Agreement.

 

 

 

[KID BRANDS, INC.,

a New Jersey corporation

	 	 	 	 	 

	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:]	 	 

 

 

 

ANNEX 1

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1. Representations and Warranties.

1.1. Assignor. The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the Credit Agreement or any
other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial
condition of any Borrower, any of its respective Subsidiaries or Affiliates or any other Person
obligated in respect of any Loan Document or (iv) the performance or observance by any Borrower,
any of its respective Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document.

1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power
and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) it meets the requirements to be an assignee under Section 11.06(b)(iii) and
(v) of the Credit Agreement (subject to such consents, if any, as may be required under Section
11.06(b)(iii) of the Credit Agreement), (iii) from and after the Effective Date, it shall be bound
by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned
Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect
to decisions to acquire assets of the type represented by the Assigned Interest and either it, or
the Person exercising discretion in making its decision to acquire the Assigned Interest, is
experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement,
and has received or has been accorded the opportunity to receive copies of the most recent
financial statements delivered pursuant to Section 7.01 thereof, as applicable, and such other
documents and information as it deems appropriate to make its own credit analysis and decision to
enter into this Assignment and Assumption and to purchase the Assigned Interest, (vi) it has,
independently and without reliance upon the Administrative Agent or any other Lender and based on
such documents and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Assignment and Assumption and to purchase the Assigned Interest, and
(vii) if it is a Foreign Lender, attached hereto is any documentation required to be delivered by
it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and
(b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the
Assignor or any other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action
under the Loan Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Loan Documents are required to be performed by it as a
Lender.

2. Payments. From and after the Effective Date, the Administrative Agent shall make
all payments in respect of the Assigned Interest (including payments of principal, interest, fees
and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective
Date and to the Assignee for amounts which have accrued from and after the Effective Date.

3. General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This
Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this Assignment and
Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this
Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in
accordance with, the law of the State of New York.

 

 

 

Exhibit 11.06(b)(iv)

FORM OF ADMINISTRATIVE QUESTIONNAIRE

____________ On file with Administrative Agent.Exhibit 10.47

Exhibit 10.47

SECOND AMENDED AND RESTATED

SECURITY AND PLEDGE AGREEMENT

THIS SECOND AMENDED AND RESTATED SECURITY AND PLEDGE AGREEMENT (this “Agreement”) is
entered into as of August 8, 2011 among Kid Brands, Inc., a New Jersey corporation (the
“Parent”), Kids Line, LLC, a Delaware limited liability company (“Kids Line”),
Sassy, Inc., an Illinois corporation (“Sassy”), I & J Holdco, Inc., a Delaware corporation
(“I & J”), LaJobi, Inc., a Delaware corporation (“LaJobi”) and CoCaLo, Inc., a
California corporation (“CoCaLo” and collectively with the Parent, Kids Line, Sassy, I & J,
LaJobi and such other designated subsidiary borrowers from time to time, the “Borrowers”
and each a “Borrower”) and such other parties that may become Obligors hereunder after the
date hereof (together with the Borrowers, individually an “Obligor”, and collectively the
“Obligors”) and BANK OF AMERICA, N.A., in its capacity as administrative agent (in such
capacity, the “Administrative Agent”) for the holders of the Secured Obligations (defined
below).

RECITALS

WHEREAS, pursuant to that certain Amended and Restated Credit Agreement, dated as of April 2,
2008, as amended (the “Existing Credit Agreement”) among Kids Line, Sassy, I & J, LaJobi
(collectively, the “Existing Borrowers”), certain subsidiaries of the Existing Borrowers,
the lenders party thereto (the “Existing Lenders”), and Bank of America, N.A. (successor by
merger to LaSalle Bank National Association), as administrative agent, the Existing Lenders
required, as a condition precedent to their entering into the Existing Credit Agreement and making
extensions of credit to or for the account of the Existing Borrowers, that the Existing Borrowers
execute that certain Amended and Restated Guaranty and Collateral Agreement dated as of April 1,
2008 (the “Existing Security Agreement”),

WHEREAS, the Lenders have agreed to amend the Existing Credit Agreement pursuant to the Second
Amended and Restated Credit Agreement dated as of the date hereof (as amended, modified,
supplemented, increased, extended, restated, renewed, refinanced or replaced from time to time, the
“Credit Agreement”) among the Borrowers, the Guarantors from time to time party thereto,
the Lenders identified therein and the Administrative Agent,

WHEREAS, it is a condition precedent to the effectiveness of the Credit Agreement and the
obligations of the Lenders to make their respective Loans and to participate in Letters of Credit
under the Credit Agreement that the Obligors agree to amend and restate the Existing Security
Agreement in accordance with the terms of this Agreement.

NOW, THEREFORE, in consideration of these premises and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree to amend and
restate the Existing Security Agreement in its entirety as follows:

1. Definitions.

(a) Capitalized terms used and not otherwise defined herein shall have the meanings
ascribed to such terms in the Credit Agreement, and the following terms shall have the
meanings set forth in the UCC (defined below): Accession, Account, Adverse Claim,
As-Extracted Collateral, Chattel Paper, Commercial Tort Claim, Consumer Goods, Deposit
Account, Document, Electronic Chattel Paper, Equipment, Farm Products, Financial Asset,
Fixtures, General Intangible, Goods, Instrument, Inventory, Investment Company Security,
Investment Property, Letter-of-Credit Right, Manufactured Home, Money, Proceeds, Securities
Account, Security Entitlement, Security, Software, Supporting Obligation and Tangible
Chattel Paper.

 

 

 

(b) In addition, the following terms shall have the meanings set forth below:

“Collateral” has the meaning provided in Section 2 hereof.

“Copyright License” means any written agreement, naming any Obligor as
licensor, granting any right under any Copyright.

“Copyrights” means (a) all registered United States copyrights in all Works,
now existing or hereafter created or acquired, all registrations and recordings thereof, and
all applications in connection therewith, including, without limitation, registrations,
recordings and applications in the United States Copyright Office, and (b) all renewals
thereof.

“Patent License” means any written agreement providing for the grant by or to
an Obligor of any right to manufacture, use or sell any invention covered by a Patent.

“Patents” means (a) all letters patent of the United States or any other
country and all reissues and extensions thereof, and (b) all applications for letters patent
of the United States or any other country and all divisions, continuations and
continuations-in-part thereof.

“Pledged Equity” means, with respect to each Obligor, (i) 100% of the issued
and outstanding Equity Interests of each Domestic Subsidiary of the Parent that is directly
owned by such Obligor and (ii) 65% (or such greater percentage that, due to a change in any
applicable Law after the date hereof, (A) could not reasonably be expected to cause the
undistributed earnings of such First-Tier Foreign Subsidiary as determined for United States
federal income tax purposes to be treated as a deemed dividend to such First-Tier Foreign
Subsidiary’s United States parent and (B) could not reasonably be expected to cause any
material adverse tax consequences to any Loan Party) of the issued and outstanding Equity
Interests entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) and
100% of the issued and outstanding Equity Interests not entitled to vote (within the meaning
of Treas. Reg. Section 1.956-2(c)(2)) in each First-Tier Foreign Subsidiary that is directly
owned by such Obligor, including the Equity Interests of the Subsidiaries owned by such
Obligor as set forth on Schedule 1(b) hereto, in each case together with the
certificates (or other agreements or instruments), if any, representing such shares, and all
options and other rights, contractual or otherwise, with respect thereto, including, but not
limited to, the following:

(1) all Equity Interests representing a dividend thereon, or representing a
distribution or return of capital upon or in respect thereof, or resulting from a
stock split, revision, reclassification or other exchange therefor, and any
subscriptions, warrants, rights or options issued to the holder thereof, or
otherwise in respect thereof; and

(2) in the event of any consolidation or merger involving the issuer thereof
and in which such issuer is not the surviving Person, all shares of each class of
the Equity Interests of the successor Person formed by or resulting from such
consolidation or merger, to the extent that such successor Person is a direct
Subsidiary of an Obligor.

“Secured Obligations” means, without duplication, (a) all Obligations and (b)
all costs and expenses incurred in connection with enforcement and collection of the
Obligations, including the reasonable fees, charges and disbursements of counsel (subject to
Section 11.04 of the Credit Agreement).

 

2

 

“Trademark License” means any written agreement providing for the grant by or
to an Obligor of any right to use any Trademark.

“Trademarks” means (a) all trademarks, trade names, corporate names, company
names, business names, fictitious business names, trade styles, service marks, logos and
other source or business identifiers, and the goodwill associated therewith, now existing or
hereafter adopted or acquired, all registrations and recordings thereof, and all
applications in connection therewith, whether in the United States Patent and Trademark
Office or in any similar office or agency of the United States, any state thereof or any
other country or any political subdivision thereof, or otherwise and (b) all renewals
thereof.

“UCC” means the Uniform Commercial Code as in effect from time to time in the
state of New York except as such term may be used in connection with the perfection of the
Collateral and then the applicable jurisdiction with respect to such affected Collateral
shall apply.

“Work” means any work that is subject to copyright protection pursuant to Title
17 of the United States Code.

2. Grant of Security Interest in the Collateral. To secure the prompt payment and
performance in full when due, whether by lapse of time, acceleration, mandatory prepayment or
otherwise, of the Secured Obligations, each Obligor hereby grants to the Administrative Agent, for
the benefit of the holders of the Secured Obligations, a continuing security interest in, any and
all right, title and interest of such Obligor in and to all of the following, whether now owned or
existing or owned, acquired, or arising hereafter (collectively, the “Collateral”): (a)
all Accounts; (b) all Chattel Paper; (c) those certain Commercial Tort Claims set forth on
Schedule 2(c) hereto; (d) all Copyrights; (e) all Copyright Licenses; (f) all Deposit
Accounts; (g) all Documents; (h) all Equipment; (i) all Fixtures; (j) all General Intangibles; (k)
all Instruments; (l) all Inventory; (m) all Investment Property; (n) all Letter-of-Credit Rights;
(o) all Money; (p) all Patents; (q) all Patent Licenses; (r) all Pledged Equity; (s) all Software;
(t) all Supporting Obligations; (u) all Trademarks; (v) all Trademark Licenses; and (w) all
Accessions and all Proceeds of any and all of the foregoing.

Notwithstanding anything to the contrary contained herein, the security interests granted
under this Agreement shall not extend to (i) any property which, subject to the terms of
Section 8.08 of the Credit Agreement, is subject to a Lien of the type described in
Sections 8.02(c), 8.02(d) and 8.02(m) of the Credit Agreement pursuant to
documents which prohibit such Obligor from granting any other Liens in such property and (ii) any
General Intangible, permit, lease, license, contract, Instrument or other agreement of an Obligor
to the extent the grant of a security interest in such General Intangible, permit, lease, license,
contract, Instrument or other agreement in the manner contemplated by this Agreement, under the
terms thereof or under applicable Law, is prohibited or would give the other parties thereto the
right to terminate, accelerate or otherwise alter such Obligor’s rights, titles and interests
thereunder (including upon the giving of notice or the lapse of time or both); provided
that (a) any such limitation described in the foregoing clause (ii) on the security interests
granted hereunder shall only apply to the extent that any such prohibition could not be rendered
ineffective pursuant to the UCC or any other applicable Law (including Debtor Relief Laws) or
principles of equity and (b) in the event of the termination or elimination of any such prohibition
or the requirement for any consent contained in any applicable Law, General Intangible, permit,
lease, license, contract or other Instrument, to the extent sufficient to permit any such item to
become Collateral hereunder, or upon the granting of any such consent, or waiving or terminating
any requirement for such consent, a security interest in such General Intangible, permit, lease,
license, contract or other Instrument shall be automatically and simultaneously granted hereunder
and shall be included as Collateral hereunder.

 

3

 

The Obligors and the Administrative Agent, on behalf of the holders of the Secured
Obligations, hereby acknowledge and agree that the security interest created hereby in the
Collateral (i) constitutes continuing collateral security for all of the Secured Obligations,
whether now existing or hereafter arising and (ii) is not to be construed as an assignment of any
Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks or Trademark Licenses.

3. Representations and Warranties. Each Obligor hereby represents and warrants to the
Administrative Agent, for the benefit of the holders of the Secured Obligations, that:

(a) Ownership. Each Obligor is the legal and beneficial owner of its
Collateral and has the right to pledge, sell, assign or transfer the same. Such Obligor is
not aware of any Adverse Claim with respect to the Pledged Equity of such Obligor.

(b) Security Interest/Priority. This Agreement creates a valid security
interest in favor of the Administrative Agent, for the benefit of the holders of the Secured
Obligations, in the Collateral of such Obligor and, when properly perfected by filing, to
the extent such security interest can be perfected by filing under the UCC, shall constitute
a valid and perfected, first priority security interest in such Collateral (including all
uncertificated Pledged Equity consisting of partnership or limited liability company
interests that do not constitute Securities), free and clear of all Liens except for
Permitted Liens. The taking possession by the Administrative Agent of the certificated
securities (if any) evidencing the Pledged Equity and all other Instruments constituting
Collateral will perfect and establish the first priority of the Administrative Agent’s
security interest in the Pledged Equity evidenced by such certificated securities and such
Instruments. With respect to any Collateral consisting of a Deposit Account, Securities
Entitlement or held in a Securities Account, upon execution and delivery by the applicable
Obligor, the applicable Securities Intermediary and the Administrative Agent of an agreement
granting control to the Administrative Agent over such Collateral in accordance with the
terms of the UCC, the Administrative Agent shall have a valid and perfected, first priority
security interest in such Collateral.

(c) Types of Collateral. None of the Collateral consists of, or is the
Proceeds of, As-Extracted Collateral, Farm Products, Manufactured Homes or standing timber.

(d) Equipment and Inventory. Each Obligor has exclusive possession and control
of its Equipment and Inventory except (i) for Equipment leased by such Obligor as a lessee,
(ii) for Equipment or Inventory in transit with common carriers, (iii) as set forth on
Schedule 3(d) hereto (as the same may be updated from time to time by the Obligors
upon written notice to the Administrative Agent), or (iv) other Inventory and Equipment with
a fair market value not to exceed $10,000 in any single location or $200,000 in the
aggregate for all locations.

(e) Authorization of Pledged Equity. All Pledged Equity is duly authorized and
validly issued, is fully paid and, to the extent applicable, nonassessable and is not
subject to the preemptive rights of any Person.

(f) No Other Equity Interests, Instruments, Etc. As of the Closing Date, (i)
no Obligor owns any certificated Equity Interests in any Subsidiary that are required to be
pledged and delivered to the Administrative Agent hereunder except as set forth on
Schedule 1(b) hereof, and (ii) no Obligor holds any Instruments, Documents or
Tangible Chattel Paper required to be pledged and requested by the Administrative Agent to
be delivered to the Administrative Agent pursuant to Section 4(a)(i) of this
Agreement, having a fair market value in excess of $250,000 each or $500,000 in the
aggregate, other than as set forth on Schedule 3(f) hereto. All such
certificated securities, Instruments, Documents and Tangible Chattel Paper have been
delivered to the Administrative Agent.

 

4

 

(g) Partnership and Limited Liability Company Interests. Except as previously
disclosed to the Administrative Agent, none of the Collateral consisting of an interest in a
partnership or a limited liability company (i) is dealt in or traded on a securities
exchange or in a securities market, (ii) by its terms expressly provides that it is a
Security governed by Article 8 of the UCC, (iii) is an Investment Company Security, (iv) is
held in a Securities Account or (v) constitutes a Security or a Financial Asset.

(h) Mergers, Etc. As of the Closing Date, other than as set forth on
Schedule 3(h) hereto, no Obligor has been party to a merger, consolidation or other
change in structure or used any tradename in the prior five years.

(i) Consents; Etc. There are no restrictions in any Organization Document
governing any Pledged Equity or any other document related thereto which would limit or
restrict (i) the grant of a Lien pursuant to this Agreement on such Pledged Equity, (ii) the
perfection of a Lien on such Pledged Equity or (iii) the exercise of remedies in respect of
such Pledged Equity as contemplated by this Agreement. Except for (i) the filing or
recording of UCC financing statements, (ii) the filing of appropriate notices with the
United States Patent and Trademark Office and the United States Copyright Office, (iii)
obtaining control to perfect the Liens created by this Agreement (to the extent required
under Section 4(a) hereof), (iv) such actions as may be required by Laws affecting
the offering and sale of securities, (v) such actions as may be required by applicable
foreign Laws affecting the pledge of the Pledged Equity of Foreign Subsidiaries and (vi)
consents, authorizations, filings or other actions which have been obtained or made, no
consent or authorization of, filing with, or other act by or in respect of, any arbitrator
or Governmental Authority and no consent of any other Person (including, without limitation,
any stockholder, member or creditor of such Obligor), is required for (A) the grant by such
Obligor of the security interest in the Collateral granted hereby or for the execution,
delivery or performance of this Agreement by such Obligor or (B) the perfection of such
security interest (to the extent such security interest can be perfected by filing under the
UCC, the granting of control (to the extent required under Section 4(a) hereof) or
by filing an appropriate notice with the United States Patent and Trademark Office or the
United States Copyright Office).

(j) Commercial Tort Claims. As of the Closing Date, no Obligor has any
Commercial Tort Claims seeking damages in excess of $250,000 other than as set forth on
Schedule 2(c) hereto.

(k) Copyrights, Patents and Trademarks.

(i) To the best of each Obligor’s knowledge, on the date hereof, each material
Copyright, Patent and Trademark of such Obligor is valid, subsisting, unexpired,
enforceable and has not been abandoned.

(ii) As of the Closing Date, to the best of each Obligor’s knowledge, no
holding, decision or judgment has been rendered by any Governmental Authority that
would limit, cancel or question the validity of any material Copyright, Patent or
Trademark of any Obligor.

(iii) As of the Closing Date, except as set forth on Schedule
3(k)(iii), no action or proceeding is pending seeking to limit, cancel or
question the validity of any material Copyright, Patent or Trademark of any Obligor,
that, if adversely determined, could
reasonably be expected to have a material adverse effect on the value of any such
material Copyright, Patent or Trademark.

(iv) No Obligor has entered into any assignment or license agreement which
grants a security interest in the Copyrights, Patents or Trademarks of any Obligor
hereunder in violation of this Agreement.

 

5

 

4. Covenants. Each Obligor covenants that until such time as the Secured Obligations
have been Fully Satisfied, such Obligor shall:

(a) Instruments/Chattel Paper/Pledged Equity/Control.

(i) If any amount in excess of $250,000 payable under or in connection with
any of the Collateral shall be or become evidenced by any Instrument or Tangible
Chattel Paper, or if any property constituting Collateral shall be stored or shipped
subject to a Document, ensure that such Instrument, Tangible Chattel Paper or
Document is either in the possession of such Obligor or its Affiliates or agents at
all times or, if requested by the Administrative Agent to perfect its security
interest in such Collateral, is delivered to the Administrative Agent duly endorsed
in a manner satisfactory to the Administrative Agent. If requested by the
Administrative Agent, such Obligor shall ensure that any Collateral consisting of
Tangible Chattel Paper in excess of $250,000 is marked with a legend reasonably
acceptable to the Administrative Agent indicating the Administrative Agent’s
security interest in such Tangible Chattel Paper.

(ii) Deliver to the Administrative Agent promptly upon the receipt thereof by
or on behalf of an Obligor, all certificates and instruments constituting Pledged
Equity. Prior to delivery to the Administrative Agent, all such certificates
constituting Pledged Equity shall be held in trust by such Obligor for the benefit
of the Administrative Agent pursuant hereto. All such certificates representing
Pledged Equity shall be delivered in suitable form for transfer by delivery or shall
be accompanied by duly executed instruments of transfer or assignment in blank,
substantially in the form provided in Exhibit 4(a)(ii) hereto.

(iii) Execute and deliver all agreements, assignments, instruments or other
documents as reasonably requested by the Administrative Agent for the purpose of
obtaining and maintaining control with respect to any Collateral consisting of (i)
Deposit Accounts (other than Excluded Accounts and subject to Section 7.17
of the Credit Agreement), (ii) Investment Property in excess of $250,000, (iii)
Letter-of-Credit Rights in excess of $250,000 and (iv) Electronic Chattel Paper in
excess of $250,000.

(b) Filing of Financing Statements, Notices, etc. Each Obligor shall execute
and deliver to the Administrative Agent such agreements, assignments or instruments
(including affidavits, notices, reaffirmations and amendments and restatements of existing
documents, as the Administrative Agent may reasonably request) and do all such other things
as the Administrative Agent may reasonably deem necessary or appropriate (i) to assure to
the Administrative Agent its security interests hereunder, including (A) such instruments as
the Administrative Agent may from time to time reasonably request in order to perfect and
maintain the security interests granted hereunder in accordance with the UCC, (B) with
regard to Copyrights, a Notice of Grant of Security Interest in Copyrights in the form of
Exhibit 4(b)(i), (C) with regard to Patents, a Notice of Grant of Security Interest
in Patents for filing with the United States Patent and Trademark Office in the form of
Exhibit 4(b)(ii) hereto and (D) with regard

 

6

 

to Trademarks, a Notice of Grant of
Security Interest in
Trademarks for filing with the United States Patent and Trademark Office in the form of
Exhibit 4(b)(iii) hereto, (ii) to consummate the transactions contemplated hereby
and (iii) to otherwise protect and assure the Administrative Agent of its rights and
interests hereunder. Furthermore, each Obligor also hereby irrevocably makes, constitutes
and appoints the Administrative Agent, its nominee or any other person whom the
Administrative Agent may designate, as such Obligor’s attorney in fact with full power and
for the limited purpose to sign in the name of such Obligor any financing statements, or
amendments and supplements to financing statements, renewal financing statements, notices or
any similar documents which in the Administrative Agent’s reasonable discretion would be
necessary or appropriate in order to perfect and maintain perfection of the security
interests granted hereunder, such power, being coupled with an interest, being and remaining
irrevocable until such time as the Secured Obligations have been Fully Satisfied. Each
Obligor hereby agrees that a carbon, photographic or other reproduction of this Agreement or
any such financing statement is sufficient for filing as a financing statement by the
Administrative Agent without notice thereof to such Obligor wherever the Administrative
Agent may in its sole discretion desire to file the same.

(c) Collateral Held by Warehouseman, Bailee, etc. If any Collateral with a
fair market value in excess of $250,000 is at any time in the possession or control of a
warehouseman, bailee or any agent or processor of such Obligor and the Administrative Agent
so requests (i) notify such Person in writing of the Administrative Agent’s security
interest therein, (ii) instruct such Person to hold all such Collateral for the
Administrative Agent’s account and subject to the Administrative Agent’s instructions and
(iii) use commercially reasonable efforts to obtain a written acknowledgment from such
Person that it is holding such Collateral for the benefit of the Administrative Agent.

(d) Commercial Tort Claims. (i) Promptly forward to the Administrative Agent
an updated Schedule 2(c) listing any and all Commercial Tort Claims by or in favor
of such Obligor seeking damages in excess of $250,000 and (ii) execute and deliver such
statements, documents and notices and do and cause to be done all such things as may be
reasonably required by the Administrative Agent, or required by Law to create, preserve,
perfect and maintain the Administrative Agent’s security interest in any Commercial Tort
Claims initiated by or in favor of any Obligor.

(e) Books and Records. Mark its books and records (and shall cause the issuer
of the Pledged Equity of such Obligor to mark its books and records) to reflect the security
interest granted pursuant to this Agreement.

(f) Nature of Collateral. At all times maintain the Collateral as personal
property and not affix any of the Collateral to any real property in a manner which would
change its nature from personal property to real property or a Fixture to real property
except in the ordinary course of business, unless the Administrative Agent shall have a
perfected Lien on such Fixture or real property.

(g) Issuance or Acquisition of Equity Interests in Partnerships or Limited
Liability Companies. Not without executing and delivering, or causing to be executed
and delivered, to the Administrative Agent such agreements, documents and instruments as the
Administrative Agent may reasonably require, issue or acquire any Pledged Equity consisting
of an interest in a partnership or a limited liability company that (i) is dealt in or
traded on a securities exchange or in a securities market, (ii) by its terms expressly
provides that it is a Security governed by Article 8 of the UCC, (iii) is an investment
company security, (iv) is held in a Securities Account or (v) constitutes a Security or a
Financial Asset.

 

7

 

(h) Intellectual Property.

(i) Not do any act or omit to do any act whereby any material Copyright may
become invalidated and (A) not do any act, or omit to do any act, whereby any
material Copyright may become injected into the public domain; (B) notify the
Administrative Agent promptly if it knows that any material Copyright may become
injected into the public domain or of any materially adverse determination or
development (including, without limitation, the institution of, or any such
determination or development in, any court or tribunal in the United States or any
other country) regarding an Obligor’s ownership of any such Copyright or its
validity; (C) take all necessary steps as it shall deem reasonably appropriate under
the circumstances, to maintain and pursue each application (and to obtain the
relevant registration) of each material Copyright owned by an Obligor and to
maintain each registration of each material Copyright owned by an Obligor including,
without limitation, filing of applications for renewal where necessary; and (D)
promptly notify the Administrative Agent of any material infringement of any
material Copyright of an Obligor of which it becomes aware and take such actions as
it shall reasonably deem appropriate under the circumstances to protect such
Copyright, including, where appropriate, the bringing of suit for infringement,
seeking injunctive relief and seeking to recover any and all damages for such
infringement.

(ii) Not make any assignment or agreement in conflict with the security
interest in the Copyrights of each Obligor hereunder (except to the extent not
prohibited by the Credit Agreement or this Agreement).

(iii) (A) Continue to use each material Trademark on each and every trademark
class of goods applicable to its then current line of business as reflected in its
then current catalogs, brochures and price lists in order to maintain such Trademark
in full force free from any claim of abandonment for non-use, (B) maintain in
accordance with past practices the quality of products and services offered under
such Trademark, (C) employ such Trademark with the appropriate notice of
registration, if applicable, (D) not adopt or use any mark that is confusingly
similar or a colorable imitation of such Trademark unless the Administrative Agent,
for the ratable benefit of the holders of the Secured Obligations, shall obtain a
perfected security interest in such mark pursuant to this Agreement, and (E) not
(and use commercially reasonable efforts to not permit any licensee or sublicensee
thereof to) do any act or omit to do any act whereby any such Trademark may become
invalidated.

(iv) Not do any act, or omit to do any act, whereby any material Patent may
become abandoned or dedicated.

(v) Notify the Administrative Agent and the holders of the Secured Obligations
promptly if it knows that any application or registration relating to any material
Patent or Trademark may become abandoned or dedicated, or of any materially adverse
determination or development (including, without limitation, the institution of, or
any such determination or development in, any proceeding in the United States Patent
and Trademark Office or any court or tribunal in any country) regarding such
Obligor’s ownership of any material Patent or Trademark or its right to register the
same or to keep and maintain the same.

(vi) Take all reasonable and necessary steps, including, without limitation, in
any proceeding before the United States Patent and Trademark Office, or any similar
office or agency in any other country or any political subdivision thereof, to
maintain and pursue
each application (and to obtain the relevant registration) and to maintain each
registration of each material Patent and Trademark, including, without limitation,
filing of applications for renewal, affidavits of use and affidavits of
incontestability.

 

8

 

(vii) Promptly notify the Administrative Agent and the holders of the Secured
Obligations after it learns that any material Patent or Trademark included in the
Collateral is infringed, misappropriated or diluted by a third party and promptly
sue for infringement, misappropriation or dilution, to seek injunctive relief where
appropriate and to recover any and all damages for such infringement,
misappropriation or dilution, or to take such other actions as it shall reasonably
deem appropriate under the circumstances to protect such Patent or Trademark.

(viii) Not make any assignment or agreement in conflict with the security
interest in the Patents or Trademarks of each Obligor hereunder (except to the
extent not prohibited by the Credit Agreement or this Agreement).

Notwithstanding the foregoing, the Obligors may, in their reasonable business judgment,
fail to register, maintain, pursue, preserve or protect any Copyright, Patent or Trademark
which is not material to their businesses.

5. Authorization to File Financing Statements. Each Obligor hereby authorizes the
Administrative Agent to prepare and file such financing statements (including continuation
statements) or amendments thereof or supplements thereto or other instruments as the Administrative
Agent may from time to time deem reasonably necessary or appropriate in order to perfect and
maintain the security interests granted hereunder in accordance with the UCC (including
authorization to describe the Collateral as “all personal property”, “all assets” or words of
similar meaning).

6. Advances. On failure of any Obligor to perform any of the covenants and
agreements contained herein and upon prior written notice to the Obligors (unless the
Administrative Agent reasonably determines that the taking of a particular action is required prior
to giving such notice in order to prevent an impairment of its rights in and to any Collateral),
the Administrative Agent may, at its sole option and in its sole discretion, perform the same and
in so doing may expend such sums as the Administrative Agent may reasonably deem advisable in the
performance thereof, including, without limitation, the payment of any insurance premiums, the
payment of any taxes, a payment to obtain a release of a Lien or potential Lien, expenditures made
in defending against any adverse claim and all other expenditures which the Administrative Agent
may make for the protection of the security hereof or which may be compelled to make by operation
of Law. All such sums and amounts so expended shall be repayable by the Obligors on a joint and
several basis promptly upon timely notice thereof and demand therefor, shall constitute additional
Secured Obligations and shall bear interest from the date said amounts are expended at the Default
Rate. No such performance of any covenant or agreement by the Administrative Agent on behalf of
any Obligor, and no such advance or expenditure therefor, shall relieve the Obligors of any Default
or Event of Default. The Administrative Agent may make any payment authorized by the first
sentence of this Section in accordance with any bill, statement or estimate procured from the
appropriate public office or holder of the claim to be discharged without inquiry into the accuracy
of such bill, statement or estimate or into the validity of any tax assessment, sale, forfeiture,
tax lien, title or claim except to the extent such payment is being contested in good faith by an
Obligor in appropriate proceedings and against which adequate reserves are being maintained in
accordance with GAAP.

 

9

 

7. Remedies.

(a) General Remedies. During the continuance of an Event of Default, the
Administrative Agent shall have, in addition to the rights and remedies provided herein, in
the Loan Documents, in any other documents relating to the Secured Obligations, or by Law
(including, but not limited to, levy of attachment, garnishment and the rights and remedies
set forth in the UCC of the jurisdiction applicable to the affected Collateral), the rights
and remedies of a secured party under the UCC (regardless of whether the UCC is the law of
the jurisdiction where the rights and remedies are asserted and regardless of whether the
UCC applies to the affected Collateral), and further, the Administrative Agent may, with or
without judicial process or the aid and assistance of others (but subject to legally
required written notices to the extent the same cannot be waived or otherwise modified by
this Agreement), (i) enter on any premises on which any of the Collateral may be located
and, without resistance or interference by the Obligors, take possession of the Collateral,
(ii) dispose of any Collateral on any such premises, (iii) require the Obligors to assemble
and make available to the Administrative Agent at the expense of the Obligors any Collateral
at any place and time designated by the Administrative Agent which is reasonably convenient
to both parties, (iv) remove any Collateral from any such premises for the purpose of
effecting sale or other disposition thereof, and/or (v) without demand and without
advertisement, notice, hearing or process of law, all of which each of the Obligors hereby
waives to the fullest extent permitted by Law, at any place and time or times, sell and
deliver any or all Collateral held by or for it at public or private sale (which in the case
of a private sale of Pledged Equity, shall be to a restricted group of purchasers who will
be obligated to agree, among other things, to acquire such securities for their own account,
for investment and not with a view to the distribution or resale thereof), at any exchange
or broker’s board or elsewhere, by one or more contracts, in one or more parcels, for Money,
upon credit or otherwise, at such prices and upon such terms as the Administrative Agent
deems advisable, in its sole discretion (subject to any and all mandatory legal
requirements). Each Obligor acknowledges that any such private sale may be at prices and on
terms less favorable to the seller than the prices and other terms which might have been
obtained at a public sale and, notwithstanding the foregoing, agrees that such private sale
shall be deemed to have been made in a commercially reasonable manner and, in the case of a
sale of Pledged Equity, that the Administrative Agent shall have no obligation to delay sale
of any such securities for the period of time necessary to permit the issuer of such
securities to register such securities for public sale under the Securities Act of 1933.
Neither the Administrative Agent’s compliance with applicable Law nor its disclaimer of
warranties relating to the Collateral shall be considered to adversely affect the commercial
reasonableness of any sale. To the extent the rights of notice cannot be legally waived
hereunder, each Obligor agrees that any requirement of reasonable notice shall be met if
such notice, specifying the place of any public sale or the time after which any private
sale is to be made, is personally served on or mailed, postage prepaid, to the Borrowers in
accordance with the notice provisions of Section 11.02 of the Credit Agreement at
least 10 days before the time of sale or other event giving rise to the requirement of such
notice. The Administrative Agent may adjourn any public or private sale from time to time
by announcement at the time and place fixed therefor, and such sale may, without further
notice, be made at the time and place to which it was so adjourned. Each Obligor further
acknowledges and agrees that any offer to sell any Pledged Equity which has been (i)
publicly advertised on a bona fide basis in a newspaper or other publication of general
circulation in the financial community of New York, New York (to the extent that such offer
may be advertised without prior registration under the Securities Act of 1933), or (ii) made
privately in the manner described above shall be deemed to involve a “public sale” under the
UCC, notwithstanding that such sale may not constitute a “public offering” under the
Securities Act of 1933, and the Administrative Agent may, in such event, bid for the
purchase of such securities. The Administrative Agent shall not be obligated to make any
sale or other disposition of the Collateral regardless of notice having been given. To the
extent permitted by applicable Law, any holder of Secured Obligations may be a purchaser at
any such sale. To the extent permitted by applicable Law, each of the Obligors hereby
waives all of its rights of redemption with respect to any
such sale. Subject to the provisions of applicable Law, the Administrative Agent may
postpone or cause the postponement of the sale of all or any portion of the Collateral by
announcement at the time and place of such sale, and such sale may, without further notice,
to the extent permitted by Law, be made at the time and place to which the sale was
postponed, or the Administrative Agent may further postpone such sale by announcement made
at such time and place.

 

10

 

(b) Remedies relating to Accounts. During the continuation of an Event of
Default, whether or not the Administrative Agent has exercised any or all of its rights and
remedies hereunder, (i) each Obligor will promptly upon request of the Administrative Agent
instruct all account debtors to remit all payments in respect of Accounts to a mailing
location selected by the Administrative Agent and (ii) the Administrative Agent shall have
the right to enforce any Obligor’s rights against its customers and account debtors, and the
Administrative Agent or its designee may notify any Obligor’s customers and account debtors
that the Accounts of such Obligor have been assigned to the Administrative Agent or of the
Administrative Agent’s security interest therein, and may (either in its own name or in the
name of an Obligor or both) demand, collect (including without limitation by way of a
lockbox arrangement), receive, take receipt for, sell, sue for, compound, settle, compromise
and give acquittance for any and all amounts due or to become due on any Account, and, in
the Administrative Agent’s reasonable discretion, file any claim or take any other action or
proceeding to protect and realize upon the security interest of the holders of the Secured
Obligations in the Accounts. Each Obligor acknowledges and agrees that the Proceeds of its
Accounts remitted to or on behalf of the Administrative Agent in accordance with the
provisions hereof shall be solely for the Administrative Agent’s own convenience and that
such Obligor shall not have any right, title or interest in such Accounts or in any such
other amounts except as expressly provided herein. Neither the Administrative Agent nor the
holders of the Secured Obligations shall have any liability or responsibility to any Obligor
for acceptance of a check, draft or other order for payment of money bearing the legend
“payment in full” or words of similar import or any other restrictive legend or endorsement
or be responsible for determining the correctness of any remittance. Furthermore, during
the continuation of an Event of Default, (i) the Administrative Agent shall have the right,
but not the obligation, to make test verifications of the Accounts in any manner and through
any medium that it reasonably considers advisable, and the Obligors shall furnish all such
assistance and information as the Administrative Agent may require in connection with such
test verifications, (ii) upon the Administrative Agent’s request and at the expense of the
Obligors, the Obligors shall cause independent public accountants or others reasonably
satisfactory to the Administrative Agent to furnish to the Administrative Agent reports
showing reconciliations, aging and test verifications of, and trial balances for, the
Accounts and (iii) the Administrative Agent in its own name or in the name of others may
communicate with account debtors on the Accounts to verify with them to the Administrative
Agent’s satisfaction the existence, amount and terms of any Accounts.

(c) Deposit Accounts. During the continuation of an Event of Default, the
Administrative Agent may prevent withdrawals or other dispositions of funds in Deposit
Accounts maintained with the Administrative Agent.

(d) Access. In addition to the rights and remedies hereunder, during the
continuation of an Event of Default, the Administrative Agent shall have the right to enter
and remain upon the various premises of the Obligors without cost or charge to the
Administrative Agent, and use the same, together with materials, supplies, books and records
of the Obligors for the purpose of collecting and liquidating the Collateral, or for
preparing for sale and conducting the sale of the Collateral, whether by foreclosure,
auction or otherwise. In addition, the Administrative Agent may remove Collateral, or any
part thereof, from such premises and/or any records with respect thereto, in order to
effectively collect or liquidate such Collateral.

 

11

 

(e) Nonexclusive Nature of Remedies. Failure by the Administrative Agent or
the holders of the Secured Obligations to exercise any right, remedy or option under this
Agreement, any other Loan Document, any other document relating to the Secured Obligations,
or as provided by Law, or any delay by the Administrative Agent or the holders of the
Secured Obligations in exercising the same, shall not operate as a waiver of any such right,
remedy or option. No waiver hereunder shall be effective unless it is in writing, signed by
the party against whom such waiver is sought to be enforced and then only to the extent
specifically stated, which in the case of the Administrative Agent or the holders of the
Secured Obligations shall only be granted as provided herein. To the extent permitted by
Law, neither the Administrative Agent, the holders of the Secured Obligations, nor any party
acting as attorney for the Administrative Agent or the holders of the Secured Obligations,
shall be liable hereunder for any acts or omissions or for any error of judgment or mistake
of fact or law other than their gross negligence or willful misconduct hereunder. The
rights and remedies of the Administrative Agent and the holders of the Secured Obligations
under this Agreement shall be cumulative and not exclusive of any other right or remedy
which the Administrative Agent or the holders of the Secured Obligations may have.

(f) Retention of Collateral. In addition to the rights and remedies hereunder,
the Administrative Agent may, in compliance with Sections 9-620 and 9-621 of the UCC or
otherwise complying with the requirements of applicable Law of the relevant jurisdiction,
accept or retain the Collateral in satisfaction of the Secured Obligations. Unless and
until the Administrative Agent shall have provided such notices, however, the Administrative
Agent shall not be deemed to have retained any Collateral in satisfaction of any Secured
Obligations for any reason.

(g) Deficiency. In the event that the proceeds of any sale, collection or
realization are insufficient to pay all amounts to which the Administrative Agent or the
holders of the Secured Obligations are legally entitled, the Obligors shall be jointly and
severally liable for the deficiency, together with interest thereon at the Default Rate,
together with the costs of collection and the reasonable fees, charges and disbursements of
counsel to the Administrative Agent (subject to Section 11.04 of the Credit
Agreement). Any surplus remaining after the Secured Obligations have been Fully Satisfied
shall be returned to the Obligors or to whomsoever a court of competent jurisdiction shall
determine to be entitled thereto.

(h) Intellectual Property. For the purpose of enabling the Administrative Agent
to exercise rights and remedies under this Agreement, each Obligor hereby grants to
Administrative Agent, for the benefit of the Administrative Agent and the Lenders, an
irrevocable, nonexclusive license (exercisable without payment of royalty or other
compensation to such Obligor) to use, license or sublicense for such purpose, during the
continuance of an Event of Default, any IP Rights now owned or hereafter acquired by such
Obligor to the extent not prohibited by the underlying agreements, if any, related to such
IP Rights, and wherever the same may be located, and including in such license access to all
media in which any of the licensed items may be recorded or stored and, to the extent
permitted by terms of the applicable underlying agreement, all computer software and
programs used for the compilation or printout thereof.

8. Rights of the Administrative Agent.

(a) Power of Attorney. In addition to other powers of attorney contained
herein, each Obligor hereby designates and appoints the Administrative Agent, on behalf of
the holders of the Secured Obligations, and each of its designees or agents, as
attorney-in-fact of such Obligor, irrevocably and with power of substitution, with authority
to take any or all of the following actions during the continuance of an Event of Default:

(i) to demand, collect, settle, compromise, adjust, give discharges and
releases, all as the Administrative Agent may reasonably determine;

 

12

 

(ii) to commence and prosecute any actions at any court for the purposes of
collecting any Collateral and enforcing any other right in respect thereof;

(iii) to defend, settle or compromise any action brought and, in connection
therewith, give such discharge or release as the Administrative Agent may deem
reasonably appropriate;

(iv) receive, open and dispose of mail addressed to an Obligor and endorse
checks, notes, drafts, acceptances, money orders, bills of lading, warehouse
receipts or other instruments or documents evidencing payment, shipment or storage
of the goods giving rise to the Collateral of such Obligor on behalf of and in the
name of such Obligor, or securing, or relating to such Collateral;

(v) sell, assign, transfer, make any agreement in respect of, or otherwise deal
with or exercise rights in respect of, any Collateral or the goods or services which
have given rise thereto, as fully and completely as though the Administrative Agent
were the absolute owner thereof for all purposes;

(vi) adjust and settle claims under any insurance policy relating thereto;

(vii) execute and deliver all assignments, conveyances, statements, financing
statements, renewal financing statements, security agreements, affidavits, notices
and other agreements, instruments and documents that the Administrative Agent may
reasonably determine necessary in order to perfect and maintain the security
interests and liens granted in this Agreement and in order to fully consummate all
of the transactions contemplated therein;

(viii) institute any foreclosure proceedings that the Administrative Agent may
reasonably deem appropriate;

(ix) to sign and endorse any drafts, assignments, proxies, stock powers,
verifications, notices and other documents relating to the Collateral;

(x) to exchange any of the Pledged Equity or other property upon any merger,
consolidation, reorganization, recapitalization or other readjustment of the issuer
thereof and, in connection therewith, deposit any of the Pledged Equity with any
committee, depository, transfer agent, registrar or other designated agency upon
such terms as the Administrative Agent may reasonably deem appropriate;

(xi) to vote for a shareholder resolution, or to sign an instrument in writing,
sanctioning the transfer of any or all of the Pledged Equity into the name of the
Administrative Agent or one or more of the holders of the Secured Obligations or
into the name of any transferee to whom the Pledged Equity or any part thereof may
be sold pursuant to Section 7 hereof;

(xii) to pay or discharge taxes, liens, security interests or other
encumbrances levied or placed on or threatened against the Collateral;

 

13

 

(xiii) to direct any parties liable for any payment in connection with any of
the Collateral to make payment of any and all monies due and to become due
thereunder directly to the Administrative Agent or as the Administrative Agent shall
direct;

(xiv) to receive payment of and receipt for any and all monies, claims, and
other amounts due and to become due at any time in respect of or arising out of any
Collateral; and

(xv) do and perform all such other acts and things as the Administrative Agent
may reasonably deem to be necessary, proper or convenient in connection with the
Collateral.

This power of attorney is a power coupled with an interest and shall be irrevocable until
such time as the Secured Obligations have been Fully Satisfied. The Administrative Agent
shall be under no duty to exercise or withhold the exercise of any of the rights, powers,
privileges and options expressly or implicitly granted to the Administrative Agent in this
Agreement, and shall not be liable for any failure to do so or any delay in doing so. The
Administrative Agent shall not be liable for any act or omission or for any error of
judgment or any mistake of fact or law in its individual capacity or its capacity as
attorney-in-fact except acts or omissions resulting from its gross negligence or willful
misconduct. This power of attorney is conferred on the Administrative Agent solely to
protect, preserve and realize upon its security interest in the Collateral.

(b) Assignment by the Administrative Agent. The Administrative Agent may from
time to time assign the Secured Obligations to a successor Administrative Agent appointed in
accordance with the Credit Agreement, and such successor shall be entitled to all of the
rights and remedies of the Administrative Agent under this Agreement in relation thereto.

(c) The Administrative Agent’s Duty of Care. Other than the exercise of
reasonable care to assure the safe custody of the Collateral while being held by the
Administrative Agent hereunder, the Administrative Agent shall have no duty or liability to
preserve rights pertaining thereto, it being understood and agreed that the Obligors shall
be responsible for preservation of all rights in the Collateral, and the Administrative
Agent shall be relieved of all responsibility for the Collateral upon surrendering it or
tendering the surrender of it to the Obligors. The Administrative Agent shall be deemed to
have exercised reasonable care in the custody and preservation of the Collateral in its
possession if the Collateral is accorded treatment substantially equal to that which the
Administrative Agent accords its own property, which shall be no less than the treatment
employed by a reasonable and prudent agent in the industry, it being understood that the
Administrative Agent shall not have responsibility for taking any necessary steps to
preserve rights against any parties with respect to any of the Collateral. In the event of
a public or private sale of Collateral pursuant to Section 7 hereof, the
Administrative Agent shall have no responsibility for (i) ascertaining or taking action with
respect to calls, conversions, exchanges, maturities, tenders or other matters relating to
any Collateral, whether or not the Administrative Agent has or is deemed to have knowledge
of such matters, or (ii) taking any steps to clean, repair or otherwise prepare the
Collateral for sale.

 

14

 

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

(e) Voting and Payment Rights in Respect of the Pledged Equity.

(i) So long as no Event of Default shall exist, each Obligor may (A) exercise
any and all voting and other consensual rights pertaining to the Pledged Equity of
such Obligor or any part thereof for any purpose not inconsistent with the terms of
this Agreement or the Credit Agreement and (B) receive and retain any and all
dividends (other than stock dividends and other dividends constituting Collateral
which are addressed hereinabove), principal or interest paid in respect of the
Pledged Equity to the extent they are not prohibited under the Credit Agreement; and

(ii) During the continuance of an Event of Default, (A) all rights of an
Obligor to exercise the voting and other consensual rights which it would otherwise
be entitled to exercise pursuant to clause (i)(A) above shall cease and all such
rights shall thereupon become vested in the Administrative Agent which shall then
have the sole right to exercise such voting and other consensual rights, (B) all
rights of an Obligor to receive the dividends, principal and interest payments which
it would otherwise be authorized to receive and retain pursuant to clause (i)(B)
above shall cease and all such rights shall thereupon be vested in the
Administrative Agent which shall then have the sole right to receive and hold as
Collateral such dividends, principal and interest payments, and (C) all dividends,
principal and interest payments which are received by an Obligor contrary to the
provisions of clause (ii)(B) above shall be received in trust for the benefit of the
Administrative Agent, shall be segregated from other property or funds of such
Obligor, and shall be forthwith paid over to the Administrative Agent as Collateral
in the exact form received, to be held by the Administrative Agent as Collateral and
as further collateral security for the Secured Obligations.

(f) Releases of Collateral. If any Collateral shall be sold, transferred or
otherwise disposed of by any Obligor in a transaction not prohibited by the Credit
Agreement, then the Administrative Agent, at the request and sole expense of such Obligor,
shall promptly execute and deliver to such Obligor all releases and other documents, and
take such other action, reasonably necessary for the release of the Liens created hereby or
by any other Collateral Document on such Collateral. The Administrative Agent may release
any of the Pledged Equity from this Agreement or may substitute any of the Pledged Equity
for other Pledged Equity without altering, varying or diminishing in any way the force,
effect, lien, pledge or security interest of this Agreement as to any Pledged Equity not
expressly released or substituted, and this Agreement shall continue as a first priority
lien on all Pledged Equity not expressly released or substituted.

9. Application of Proceeds. Upon the acceleration of the Obligations pursuant to
Section 9.02 of the Credit Agreement, any payments in respect of the Secured Obligations
and any proceeds of the Collateral, when received by the Administrative Agent or any holder of the
Secured Obligations in Money, will be applied in reduction of the Secured Obligations in the order
set forth in Section 9.03 of the Credit Agreement.

 

15

 

10. Continuing Agreement.

(a) This Agreement shall remain in full force and effect until such time as the Secured
Obligations have been Fully Satisfied, at which time this Agreement and the security
interest and Liens granted hereunder shall automatically terminate and be released, and the
Administrative Agent shall, upon the request and at the expense of the Obligors, execute and
deliver all UCC termination statements and other documents reasonably requested by the
Obligors evidencing such termination and release.

(b) This Agreement shall continue to be effective or be automatically reinstated, as
the case may be, if at any time payment, in whole or in part, of any of the Secured
Obligations is rescinded or must otherwise be restored or returned by the Administrative
Agent or any holder of the Secured Obligations as a preference, fraudulent conveyance or
otherwise under any Debtor Relief Law, all as though such payment had not been made;
provided that in the event payment of all or any part of the Secured Obligations is
rescinded or must be restored or returned, all reasonable costs and expenses (including
without limitation any reasonable legal fees and disbursements) incurred by the
Administrative Agent or any holder of the Secured Obligations in defending and enforcing
such reinstatement shall be deemed to be included as a part of the Secured Obligations.

11. Amendments; Waivers; Modifications, etc. This Agreement and the provisions hereof
may not be amended, waived, modified, changed, discharged or terminated except as set forth in
Section 11.01 of the Credit Agreement; provided that any update or revision to Schedule
2(c) hereof delivered by any Obligor shall not constitute an amendment for purposes of this
Section 11 or Section 11.01 of the Credit Agreement.

12. Successors in Interest. This Agreement shall be binding upon each Obligor, its
successors and assigns and shall inure, together with the rights and remedies of the Administrative
Agent and the holders of the Secured Obligations hereunder, to the benefit of the Administrative
Agent and the holders of the Secured Obligations and their successors and permitted assigns.

13. Notices. All notices required or permitted to be given under this Agreement shall
be in conformance with Section 11.02 of the Credit Agreement.

14. Counterparts. This Agreement may be executed in any number of counterparts, each
of which where so executed and delivered shall be an original, but all of which shall constitute
one and the same instrument. It shall not be necessary in making proof of this Agreement to
produce or account for more than one such counterpart. Delivery of executed counterparts of this
Agreement by facsimile or other electronic means shall be effective as an original.

15. Headings. The headings of the sections hereof are provided for convenience only
and shall not in any way affect the meaning or construction of any provision of this Agreement.

16. Governing Law; Submission to Jurisdiction; Venue; WAIVER OF JURY TRIAL. The terms
of Sections 11.14 and 11.15 of the Credit Agreement with respect to governing law,
submission to jurisdiction, venue and waiver of jury trial are incorporated herein by reference,
mutatis mutandis, and the parties hereto agree to such terms.

 

16

 

17. Severability. If any provision of this Agreement is determined to be illegal,
invalid or unenforceable, such provision shall be fully severable and the remaining provisions
shall remain in full force and effect and shall be construed without giving effect to the illegal,
invalid or unenforceable provisions.

18. Entirety. This Agreement, the other Loan Documents and the other documents
relating to the Secured Obligations represent the entire agreement of the parties hereto and
thereto, and supersede all prior agreements and understandings, oral or written, if any, including
any commitment letters or correspondence relating to the Loan Documents, any other documents
relating to the Secured Obligations, or the transactions contemplated herein and therein.

19. Other Security. To the extent that any of the Secured Obligations are now or
hereafter secured by property other than the Collateral (including, without limitation, real
property and securities owned by an Obligor), or by a guarantee, endorsement or property of any
other Person, then the Administrative Agent shall have the right to proceed against such other
property, guarantee or endorsement during the continuation of any Event of Default, and the
Administrative Agent shall have the right, in its sole discretion, to determine which rights,
security, liens, security interests or remedies the Administrative Agent shall at any time pursue,
relinquish, subordinate, modify or take with respect thereto, without in any way modifying or
affecting any of them or the Secured Obligations or any of the rights of the Administrative Agent
or the holders of the Secured Obligations under this Agreement, under any other of the Loan
Documents or under any other document relating to the Secured Obligations.

20. Joinder. At any time after the date of this Agreement, one or more additional
Persons may become party hereto by executing and delivering to the Administrative Agent a Joinder
Agreement. Immediately upon such execution and delivery of such Joinder Agreement (and without any
further action), each such additional Person will become a party to this Agreement as an “Obligor”
and have all of the rights and obligations of an Obligor hereunder and this Agreement and the
schedules hereto shall be deemed amended by such Joinder Agreement.

21. Rights of Required Lenders. All rights of the Administrative Agent hereunder, if
not exercised by the Administrative Agent, may be exercised by the Required Lenders.

22. Consent of Issuers of Pledged Equity. Each issuer of Pledged Equity party to this
Agreement hereby acknowledges, consents and agrees to the grant of the security interests in such
Pledged Equity by the applicable Obligors pursuant to this Agreement, together with all rights
accompanying such security interest as provided by this Agreement and applicable law,
notwithstanding any anti-assignment provisions in any operating agreement, limited partnership
agreement or similar organizational or governance documents of such issuer.

[remainder of page intentionally left blank]

 

17

 

Each of the parties hereto has caused a counterpart of this Agreement to be duly executed and
delivered as of the date first above written.

	 	 	 	 	 
	OBLIGORS:  	KID BRANDS, INC.,

a New Jersey corporation

 	 
	 	By:  	/s/
Bruce G. Crain	 
	 	 	Name: Bruce G. Crain	 
	 	 	Title:   President and CEO	 
	 
	 	KIDS LINE, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/
Bruce G. Crain	 
	 	 	Name: Bruce G. Crain	 
	 	 	Title:   Vice
President	 
	 
	 	SASSY, INC.,

an Illinois corporation

 	 
	 	By:  	/s/
Bruce G. Crain	 
	 	 	Name: Bruce G. Crain	 
	 	 	Title:   Vice
President	 
	 
	 	I & J HOLDCO, INC.,

a Delaware corporation

 	 
	 	By:  	/s/
Bruce G. Crain	 
	 	 	Name: Bruce G. Crain	 
	 	 	Title:   Vice
President	 
	 
	 	LAJOBI, INC.,

a Delaware corporation

 	 
	 	By:  	/s/
Bruce G. Crain	 
	 	 	Name: Bruce G. Crain	 
	 	 	Title:   Vice
President	 
	 
	 	COCALO, INC.,

a California corporation

 	 
	 	By:  	/s/
Bruce G. Crain	 
	 	 	Name: Bruce G. Crain	 
	 	 	Title:   Vice
President	 
	 

 

18

 

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

	 	 	 	 	 	 	 
	BANK OF AMERICA, N.A., as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	By:	 	/s/ Erin M. Frey	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Erin M. Frey	 	 
	 

	 	Title:
	 	Vice President	 	 

 

19

 

SCHEDULE 1(b)

PLEDGED EQUITY

OBLIGOR: Kid Brands, Inc.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Certificate	 	 
	Name of Subsidiary	 	Number of Shares	 	Number	 	Percentage Ownership	 
	Kids Line, LLC

	 	100 Membership Units
	 	NOT CERTIFICATED
	 	 	100	%
	Sassy, Inc.

	 	100 Shares
	 	 	1	 	 	 	100	%
	I & J HoldCo, Inc.

	 	100 Shares
	 	 	1	 	 	 	100	%
	RB Trademark Holdco, LLC

	 	100 Membership Units
	 	NOT CERTIFICATED
	 	 	100	%

OBLIGOR: Kids Line, LLC

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Certificate	 	 
	Name of Subsidiary	 	Number of Shares	 	Number	 	Percentage Ownership	 
	Kids Line Australia Pty Ltd.

	 	48,750 Shares
	 	 	5	 	 	 	100	%
	Kids Line UK Limited

	 	650 Shares
	 	 	2	 	 	 	100	%

OBLIGOR: I &J HoldCo, Inc.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Certificate	 	 
	Name of Subsidiary	 	Number of Shares	 	Number	 	Percentage Ownership	 
	LaJobi, Inc.

	 	100 Shares
	 	 	2	 	 	 	100	%
	CoCaLo, Inc.

	 	100 Shares
	 	 	8	 	 	 	100	%

 

20

 

SCHEDULE 2(c)

COMMERCIAL TORT CLAIMS

None.

 

21

 

SCHEDULE 3(d)

INVENTORY

	 	 	 	 	 
	Grantor	 	Collateral	 	Lessor/Bailee/Consignee/Warehouseman
	Kids Line, LLC

	 	Various
	 	Southgate Business and Industrial Park Developers

c/o Goldrich & Kest

5150 Overland Avenue

Culver City, CA 90230
	 
	 	 	 	 
	LaJobi, Inc.

	 	Various
	 	IndCor Properties, LLC

c/o Jones Lang LaSalle

400 Interspace Pkwy, Bldg D, 1st Floor

Parsippany, NJ 07054

	 
	 	 	 	 
	LaJobi, Inc.

	 	Various
	 	LaJobi c/o JMKC

2839 E. El Presidio St.

Carson, CA 90810
	 
	 	 	 	 
	LaJobi, Inc.

	 	Various
	 	NJ 3PL — Sanyo

1240 Cranbury South River Road

Cranbury, NJ 08512

	 
	 	 	 	 
	LaJobi, Inc.

	 	Various
	 	NJ 3PL — Hermans1

83 Stultz Road

Cranbury, NJ 08512
	 
	 	 	 	 
	LaJobi, Inc.

	 	Various
	 	LaJobi c/o Sanyo Logistics

8400 Milliken Avenue

Rancho Cucamonga, CA 91730
	 
	 	 	 	 
	CoCaLo, Inc.

	 	Various
	 	Goods are in custody of DOT Fulfillment, a
provider of logistics services to CoCaLo, Inc.
The location is 1801 Standard Ave., Santa Ana,
CA 92707.
	 
	 	 	 	 
	CoCaLo, Inc.

	 	Various
	 	Goods are in custody of DOT Fulfillment, a
provider of logistics services to CoCaLo, Inc.
The location is 2525 Pullman, Santa Ana, CA
92705

 

	 	 	 
	1	 	Inventory with a value of less than $250,000 at this location.

 

22

 

SCHEDULE 3(f)

INSTRUMENTS; DOCUMENTS; TANGIBLE CHATTEL PAPER 

None.

 

23

 

SCHEDULE 3(h)

MERGERS, CONSOLIDATIONS, CHANGE IN STRUCTURE OR USE OF TRADENAMES

	1.	 	Kid Brands, Inc. sold its gift business to The Russ Companies, Inc., a Delaware corporation,
as of December 23, 2008; such sale included the sale of all outstanding capital stock of the
following entities:

	 	•	 	Russ Berrie U.S. Gift, Inc., a Delaware corporation;

	 
	 	•	 	Russ Berrie and Company Investments, Inc., a New Jersey corporation;

	 
	 	•	 	Russ Berrie and Company Properties, Inc., a New Jersey corporation;

	 
	 	•	 	Russplus, Inc., a New Jersey corporation;

	 
	 	•	 	Russ Australia Pty Limited ACN 088 221 881, a registered company under the
Corporations Act 2001 of Australia;

	 
	 	•	 	Russ Berrie (Ireland) Limited, a company limited by shares organized in
Ireland;

	 
	 	•	 	Russ Berrie (U.K.) Limited, a company limited by shares organized in the United
Kingdom; and

	 
	 	•	 	Tri Russ International (Hong Kong) Limited, a company limited by shares
organized in Hong Kong.

	2.	 	RB Trademark Holdco, LLC (“IP Sub”), originally wholly-owned by Russ Berrie U.S. Gift, Inc.,
became wholly-owned by Russ Berrie and Company, Inc. (now known as Kid Brands, Inc.) as of
December 23, 2008. In connection therewith, various items of intellectual property were
transferred to IP Sub.

	 
	3.	 	As of December 23, 2008, Russ Berrie and Company Investments, Inc. assigned all of the
outstanding capital stock in BOA Done, Inc., a West Virginia corporation, to Russ Berrie and
Company, Inc. (now known as Kid Brands, Inc.).

	 
	4.	 	As of December 23, 2008, Russ Berrie (U.K.) Limited assigned all of the outstanding capital
stock of each of the following entities to Russ Berrie and Company, Inc. (now known as Kid
Brands, Inc.):

	 	•	 	Russ Berrie (Holdings) Limited; and

	 
	 	•	 	Russ Berrie (Deutschland) GmbH.

	5.	 	LaJobi, Inc. and CoCaLo, Inc. both became subsidiaries of I&J HoldCo, Inc. in April 2008.

	 
	6.	 	I & J HoldCo., Inc. is in the process of forming two wholly-owned subsidiaries: (i) I&J
Quality Co., Ltd, a Thailand company, and (ii) I&J International (Hong Kong) Limited, a Hong
Kong company (“KBHK”); and KBHK is in the process of forming I&J Quality Consulting (Shenzhen)
Co., Ltd., to be a wholly-owned PRC (Shenzhen) company.

 

24

 

SCHEDULE 3(k)(iii)

INTELLECTUAL PROPERTY PROCEEDINGS

Two pending applications of Sassy, Inc., trademark app. no. 77/808566 (Ladybug Design) and
trademark app. no. 77/808544 (SASSY and Ladybug Design), are the subject of oppositions that were
filed in 2010 by Littlewoods in the USPTO.

 

25

 

EXHIBIT 4(a)(ii)

IRREVOCABLE STOCK POWER

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to

the following Equity Interests of                                         , a                      corporation:

	 	 	 
	No. of Shares
	 	Certificate No.

and irrevocably appoints                                          its agent and attorney-in-fact to transfer all or
any part of such Equity Interests and to take all necessary and appropriate action to effect any
such transfer. The agent and attorney-in-fact may substitute and appoint one or more persons to
act for him.

	 	 	 	 	 
	 	 	 
	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

26

 

EXHIBIT 4(b)(i)

NOTICE

OF

GRANT OF SECURITY INTEREST

IN

PATENTS

United States Patent and Trademark Office

Ladies and Gentlemen:

Please be advised that pursuant to the Second Amended and Restated Security and Pledge
Agreement dated as of August 8, 2011 (as the same may be amended, modified, extended or restated
from time to time, the “Agreement”) by and among the Obligors party thereto (each an
“Obligor” and collectively, the “Obligors”) and Bank of America, N.A., as
administrative agent (the “Administrative Agent”) for the holders of the Secured
Obligations referenced therein, the undersigned Obligor has granted a continuing security interest
in and continuing lien upon the patents and patent applications shown below to the Administrative
Agent for the ratable benefit of the holders of the Secured Obligations:

PATENTS

	 	 	 	 	 
	 	 	Description of	 	 
	Patent No.	 	Patent Item	 	Date of Patent
	 	 	 	 	 
	 
	 	See Schedule 1 attached hereto
	 	 

PATENT APPLICATIONS

	 	 	 	 	 
	 	 	Description of	 	Date of
	Patent Applications No.	 	Patent Applied for	 	Patent Applications
	 	 	 	 	 
	 
	 	See Schedule 1 attached hereto
	 	 

 

27

 

The undersigned Obligor and the Administrative Agent, on behalf of the holders of the Secured
Obligations, hereby acknowledge and agree that the security interest in the foregoing patents and
patent applications (i) may only be terminated upon the termination of the Agreement or otherwise
in accordance with the terms of the Agreement and (ii) is not to be construed as an assignment of
any patent or patent application.

	 	 	 	 	 
	 	Very truly yours,
 	 
	 	
[Obligor]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Acknowledged and Accepted:

BANK OF AMERICA, N.A., as Administrative Agent

	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

28

 

EXHIBIT 4(b)(ii)

NOTICE

OF

GRANT OF SECURITY INTEREST

IN

TRADEMARKS

United States Patent and Trademark Office

Ladies and Gentlemen:

Please be advised that pursuant to the Second Amended and Restated Security and Pledge
Agreement dated as of August 8, 2011 (as the same may be amended, modified, extended or restated
from time to time, the “Agreement”) by and among the Obligors party thereto (each an
“Obligor” and collectively, the “Obligors”) and Bank of America, N.A., as
Administrative Agent (the “Administrative Agent”) for the holders of the Secured
Obligations referenced therein, the undersigned Obligor has granted a continuing security interest
in and continuing lien upon the trademarks and trademark applications shown below to the
Administrative Agent for the ratable benefit of the holders of the Secured Obligations:

TRADEMARKS

	 	 	 	 	 
	 	 	Description of	 	 
	Trademark No.	 	Trademark Item	 	Date of Trademark
	 	 	 	 	 
	 	 	 	 	 
	 
	 	See Schedule 1 attached hereto
	 	 

TRADEMARK APPLICATIONS

	 	 	 	 	 
	 	 	Description of	 	Date of
	Trademark Applications No.	 	Trademark Applied for	 	Trademark Applications
	 	 	 	 	 
	 
	 	See Schedule 1 attached hereto
	 	 

 

29

 

The undersigned Obligor and the Administrative Agent, on behalf of the holders of the Secured
Obligations, hereby acknowledge and agree that the security interest in the foregoing trademarks
and trademark applications (i) may only be terminated upon the termination of the Agreement or
otherwise in accordance with the terms of the Agreement and (ii) is not to be construed as an
assignment of any trademark or trademark application.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	
[Obligor]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Acknowledged and Accepted:

BANK OF AMERICA, N.A., as Administrative Agent

	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

30

 

EXHIBIT 4(b)(iii)

NOTICE

OF

GRANT OF SECURITY INTEREST

IN

COPYRIGHTS

United States Copyright Office

Ladies and Gentlemen:

Please be advised that pursuant to the Second Amended and Restated Security and Pledge
Agreement dated as of August 8, 2011 (as the same may be amended, modified, extended or restated
from time to time, the “Agreement”) by and among the Obligors party thereto (each an
“Obligor” and collectively, the “Obligors”) and Bank of America, N.A., as
administrative agent (the “Administrative Agent”) for the holders of the Secured
Obligations referenced therein, the undersigned Obligor has granted a continuing security interest
in and continuing lien upon the copyrights and copyright applications shown below to the
Administrative Agent for the ratable benefit of the holders of the Secured Obligations:

COPYRIGHTS

	 	 	 	 	 
	 	 	Description of	 	 
	Copyright No.	 	Copyright Item	 	Date of Copyright
	 	 	 	 	 
	 
	 	See Schedule 1 attached hereto
	 	 

COPYRIGHT APPLICATIONS

	 	 	 	 	 
	 	 	Description of	 	Date of
	Copyright Applications No.	 	Copyright Applied for	 	Copyright Applications
	 	 	 	 	 
	 
	 	See Schedule 1 attached hereto
	 	 

 

31

 

The undersigned Obligor and the Administrative Agent, on behalf of the holders of the Secured
Obligations, hereby acknowledge and agree that the security interest in the foregoing copyrights
and copyright applications (i) may only be terminated upon the termination of the Agreement or
otherwise in accordance with the terms of the Agreement and (ii) is not to be construed as an
assignment of any copyright or copyright application.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	
[Obligor]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Acknowledged and Accepted:

BANK OF AMERICA, N.A., as Administrative Agent

	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

 

32

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